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PA Shop Owners File RICO Suit Against Seven Major Insurance Companies Citing Short Pays, Conspiracy The owners of Crawford’s Auto Center Inc. in Downington, PA, have filed what they expect to be a class-action lawsuit against seven major insurance carriers and their affiliates, accusing them of short pays and conspiring to establish and enforce “an artificial market value for collision repairs,” according to the complaint. The lawsuit was filed April 30 in the U.S. District Court for the Northern District of Illinois, Eastern Division, naming State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Nationwide and de-
fendant insurers alleging they illegally conspire to control the collision repair process and the cost of repairs. The suit, Crawford’s Auto Center v. State Farm et al, also names USAA, Travelers and American Family as conspirator insurers, though not as defendants. The plaintiff’s complaint seeks to have the suit granted class action status representing any repair facility that has done business with the defendant insurance companies since January 1, 2006.
Dorian Parsley, 44, a civilian police dispatcher, is accused of giving confidential police information—such as locations of auto accidents, to the owner of K & B Auto Body, a Philadelphia shop, William Cheeseman and two other tow-truck operators, Stepfon Flowers and Chad Harris, who at times worked for K&B. Parsley allegedly did it in exchange for bribes, collecting thousands of dollars in cash, from February 2011 to December 2013, authorities say, according to reports in the Philadelphia Daily News. The U.S. Attorney’s Office announced the unsealing of an indictment against Parsley, of Philadelphia;
Cheeseman, 42, of Delran, NJ; Flowers, 24, and Harris, 22, both of the city. All four are charged with conspiracy and bribery. Parsley and Flowers are also charged with honest-services fraud. Three of the four defendants in the alleged bribery scam pleaded not guilty at their arraignments in federal court May 15. The fourth, Flowers, had previously plead not guilty. All have been released on $25,000 bond. According to the indictment, the four entered into a scheme in which Parsley texted confidential police information—such as locations of auto accidents—to the tow-truck operators
See PA Shop’s RICO, Page 9
PA Body Shop Embroiled in Alleged Towing Scheme with Philadelphia Police Department Dispatcher
See Philly Towing Case, Page 9
VOL. 4 ISSUE 3 JUNE 2014
GEICO Fined by Massachusetts For Inconsistent Accident Reporting, $275K Levied, $275K Suspended Massachusetts Commissioner of Insurance Joseph G. Murphy announced an agreement with Government Employees Insurance Company and GEICO General Insurance Company resolving inconsistencies in its reporting of accident information to state agencies and policyholders. Under the terms of the agreement, GEICO has agreed to modify portions of its current business procedures, implement new procedures and pay a $275,000 fine. An additional $275,000 fine has been suspended pending a future re-examination by the Division of Insurance. “Today’s announcement is the result of our ongoing monitoring of the insurance marketplace to ensure that consumers are receiving the benefits to which they are entitled and compa-
nies are competing on a level playing field,” said Commissioner Murphy. “The company’s actions created disruptive issues within the auto insurance marketplace in Massachusetts.” The Division negotiated this agreement with GEICO following a market conduct examination of GEICO’s practices since the company began offering private passenger automobile insurance to Massachusetts drivers in May 2009. The examination specifically identified GEICO’s inconsistency in reporting claim information and providing operators proper notice of at-fault accident determinations and their rights to appeal those determinations to the Division’s Board of Appeal as areas requiring a change in business practices. The company will notify in-
Collision repairers from six states are pursuing legal action against insurers for alleged antitrust violations, collusion by making deals with preferred body shops to reduce labor costs, and interfering with body shops’ business by dictating how they do repairs. There are also allegations that shops are being forced to use substandard repair parts. The body shops are seeking damages from the suits that could amount to damages in the billions. See Autobody News May edition for more details. In the federal lawsuit, 14 Indiana shops and others have accused State Farm Insurance and competitors of extracting “unreasonable and onerous” concessions on vehicle repair costs. When a shop doesn’t comply with price ceilings, the insurers dissuade policyholders from choosing that shop for repairs by telling them it has quality issues or gets lots of complaints, the shops allege in the suit filed April 2. The 34-page suit alleges insurers have violated the federal Sherman Act,
both in price-fixing and through boycotting tactics. Insurance company dictates are “placing the driving public at harm,” says the lawsuit. (Other defendants include Allstate, American Family, Auto-Owners, Erie Insurance, Indiana Farmers Mutual, Liberty Mutual, Nationwide, Shelter General and Zurich American.) Pat Johnson, a Martinsville, IN, shop owner of Brothers Body & Paint next to IN 39, was cut from State Farm’s Select Service Program last November, unable to live with the its requirement that he buy vehicle parts through the online PartsTrader site instead of using his own longtime suppliers. Now Johnson says he is feeling the pain of losing business from State Farm. Revenue at Brothers Body & Paint has fallen by $100,000 so far this year from his former $2 million annual gross on repairing about 60 vehicles a month. Johnson has said he may need to cut his 12-person staff, but he’s
See GEICO Fined, Page 17
Update on Shops’ Accusations of Insurers’ Collusion
See Shops’ Accusations, Page 14
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2 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Contents
COLUMNISTS Attanasio - Five Common Marketing Mistakes Body Shops Make . . . . . . . . . . . . . . . . . . . . 32 Basteri - Getting Powered Up at the 2014 WIN Annual Educational Conference . . . . . . . . . . 24 Frankin - What’s In A Name? Possibly The Success Of Your Shop! . . . . . . . . . . . . . . . . 34 Yoswick - June Retrospective: ASA Position, CAPA, CIC. . . . . . . . . . . . . . . . . . . . . . . . . . 40 NATIONAL ‘Thriving in a Consolidating Marketplace’ Events: IN & IL . . . . . . . . . . . . . . . . . . . . . . . 4 35 Years Dedicated to Teaching Tomorrow’s Techs in California . . . . . . . . . . . . . . . . . . . . 10 ABRA Acquires 24 Collision Centers of America Locations . . . . . . . . . . . . . . . . . . . 53 Advance Auto Profit Up 21%, Acquisition Boosts Sales . . . . . . . . . . . . . . . . . . . . . . . . 53 AMI Taking Applications for $1,000 High-Octane Award . . . . . . . . . . . . . . . . . . . 53 AudaExplore Launches Cloud-Based Fully Scalable Enterprise Body Shop Management Solution . 37 Auto Body Parts Receive Consumer Discount at Auto Pros USA Parts Retail Website . . . . . 38 Auto Damage Experts Will Perform Inspection and
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www.facebook.com/autobodynews Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Acura of Westchester . . . . . . . . . . . 9 Amato Agency. . . . . . . . . . . . . . . . 18 Audi Wholesale Parts Dealers. . . . 52 Axalta Coating Systems . . . . . . . . . 5 B & R Associates. . . . . . . . . . . . . . 32 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . 21 BMW Wholesale Parts Dealers . . . 49 CCC Information Services. . . . . . . 11 Central Avenue Chrysler-JeepDodge-Ram . . . . . . . . . . . . . . . . 12 Certified Automotive Parts Association (CAPA) . . . . . . . . . . 23 Chief Automotive. . . . . . . . . . . 24, 25 Classifieds . . . . . . . . . . . . . . . . . . . 54 Clay Auto Group . . . . . . . . . . . . . . 43 Colours, Inc . . . . . . . . . . . . . . . . . . 20 Ditschman/Flemington Auto Group. 31 Empire Auto Parts . . . . . . . . . . . . . 24 Equalizer Industries, Inc . . . . . . . . . 4 Fairfield Chrysler-Jeep-Dodge-Ram . 27 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . 41 Ford Wholesale Parts Dealers. . . . 53 Fred Beans Parts. . . . . . . . . . . . . . 56 Future Cure . . . . . . . . . . . . . . . . . . 36 Glanzmann Subaru . . . . . . . . . . . . 37 GM Wholesale Parts Dealers . . . . 34 Hackettstown Honda. . . . . . . . . . . 22 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers. 44 Jaguar Wholesale Parts Dealers. . 50
Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Connecticut, Rhode Island, Massachusetts and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Northeast
Verification for Assured Performance Network’s Certified Repair Shops . . . . . . . . 37 Automotive Aftermarket is Expected to Grow 3.4% PY. . . . . . . . . . . . . . . . . . . . . . . 38 BASF Recognizes 5 Shops as Shops of the Year. 38 Bloomberg Reports Esurance to Take on Advertising Giants . . . . . . . . . . . . . . . . . . . . 53 BMW Joint Venture to Triple Carbon Fiber Plant Capacity . . . . . . . . . . . . . . . . . . . . . . . 44 CAPA Reaches 15 Year Milestone for Vehicle Test Fits. . . . . . . . . . . . . . . . . . . . . . 44 Car-O-Liner Offers Free Value-Added Design Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 ETI to Hold Meeting with NACE CARS in Detroit . 42 Farmers Insurance’s Class Action on Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 First Mass-Produced Fuel Cell Vehicles Arrive on US Soil, Free Fuel-Cell ‘Refills’ from Hyundai, Range Compares to Gas Vehicles . . 21 Ford Dealerships Exceed Enrollment Goals for Collision Repair Training on F-150 . . . . . 54 Four CARSTAR Shops Were Recognized by Mitchell . . . . . . . . . . . . . . . . . . . . . . . . . 45 Gunder Suit Against State Farm Not Filed As Reported . . . . . . . . . . . . . . . . . . . . . . . . 18 I-CAR Enhances Website, Other Improvements Coming . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Judge Dismisses Suit Against GM’s Aftermarket Part Price Matching Program . . . . . . . . . . . . 20 Letter to the Editor: Certified Aftermarket Parts Tracking is Superior . . . . . . . . . . . . . . 17 MCR Safety Donates 26,000+ Pairs of Safety Eyeware . . . . . . . . . . . . . . . . . . . . . . 42 NABC Appoints Dan Young to Board of Directors . 42 NACE | CARS 2014 Agenda Announced and Online Attendee Registration Opens . . . . . . . 50 NACE Announces CRES/MSO Symposium Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 NSF Certifies 500 Sheet Metal Parts Made by Gordon . . . . . . . . . . . . . . . . . . . . . . . . . . 52 OSHA Cracking Down on Isocyanate Exposure . 44 SCRS Examines Repairer Ability to Control Data . 42 SCRS Member’s E-Catalog . . . . . . . . . . . . . . . 53 SEMA Show Registration Now Open . . . . . . . . 49 Sisk - Automotive Aftermarket Association Southeast Finalizes Conference Plans for ‘14. . 46 Sisk - Mike Anderson Visits WMABA to Discuss Estimating Practices, Parts Procurement and More! . . . . . . . . . . . . . . . . 48 Sisk - NABC’s Recent Meetings Focus on Building Positive Image for Collision Industry . . . . . . 36 Sisk - Southern Automotive Repair Conference Held by Six State Associations. . . . . . . . . . . 22 Solera Buys Pittsburgh Glass Works’ Insurance Business . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 South Carolina Shop Files Suit Against State Farm Citing Breaches of Contract and Defamation . 45 State Farm to Raise Rates in Illinois . . . . . . . . . 33 Study Reveals 2/3 of Drivers Are Distracted on the Road. . . . . . . . . . . . . . . . . . . . . . . . . 33 Toyota’s Relocation of US Headquarters to Plano, TX . . . . . . . . . . . . . . . . . . . . . . . . 20 Update on Shops’ Accusations of Insurers’ Collusion. . . . . . . . . . . . . . . . . . . . . 1 US Government Says It Lost $11.2 billion on GM bailout . . . . . . . . . . . . . . . . . . . . . . . 44 Valspar Joins National Auto Body Council . . . . 50
Indexof Advertisers
REGIONAL Albert ‘Bert’ Riley Moss II of Albany, NY, Passes at 64 . . . . . . . . . . . . . . . . . . . . . . . . . 4 Anthony E. Ciaburri Jr. of Great Kills, NY, Passes at 47 . . . . . . . . . . . . . . . . . . . . . . . . . 4 Argument at Maryland Auto Body Shop Leads to Arrest . . . . . . . . . . . . . . . . . . . . . . . 6 Car Fire Spreads to Body Shop in McKees Rocks, PA . . . . . . . . . . . . . . . . . . . . 6 Carubba Collision is Long Time Sponsor of New York State Golden Gloves Boxing . . . . . . 6 CollisionMax Renews ‘Metal of Honor’ Project for 2nd Year, Giving No-Cost Auto Body Repairs to 11 Military Veterans . . . . . . . . . . . 6 GEICO Fined by Massachusetts For Inconsistent Accident Reporting, $275K Levied, $275K Suspended . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Hamden, CT, Body Shop Fire . . . . . . . . . . . . . . . 4 Job Corps Offers Free Auto Body Career Training in Utica, NY . . . . . . . . . . . . . . . . . . . 8 LIABRA Monthly Meeting and Repair Seminar . . 8 Martin Scorcese’s Nephew at Heroin Bust in Staten Island . . . . . . . . . . . . . . . . . . . . . . . 4 Mid-Island Collision Seizes Opportunity, Plans to Open Training Center . . . . . . . . . . . 12 Newborn Kittens Soften Up Rochelle Park, NJ, Body Shop Mechanics. . . . . . . . . . . . . . . . . . 8 Nick Orso’s Body Shop in Syracuse NY Takes a High-End View . . . . . . . . . . . . . . . . 26 PA Auto Body Students Restore an Armored Personnel Carrier. . . . . . . . . . . . . . . . . . . . . . 8 PA Body Shop Embroiled in Alleged Towing Scheme with Philadelphia Police Department Dispatcher . . . . . . . . . . . . . . . . . 1 PA Shop Owners File RICO Suit Against Seven Major Insurance Companies Citing Short Pays, Conspiracy . . . . . . . . . . . . . . . . . 1 PA SkillsUSA High School Sr. Wins Collision Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Sisk - ABAC Legal Counselor Objects to Use of Camera Phone Photos for Estimates . . . . . . 13
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Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 47 Koeppel VW-Mazda. . . . . . . . . . . . 45 Lexus Wholesale Parts Dealers. . . 46 Malco. . . . . . . . . . . . . . . . . . . . . . . . 9 Maxon Hyundai . . . . . . . . . . . . . . . 40 Maxon Mazda . . . . . . . . . . . . . . . . 26 Mazda Wholesale Parts Dealers . . 30 Mercedes-Benz . . . . . . . . . . . . . . . 19 MINI Wholesale Parts Dealers. . . . 48 MOPAR Wholesale Parts Dealers . 35 NACE/CARS Expo & Conference . 39 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 38 Porsche Wholesale Parts Dealers . 42 Providence Lacquer & Supply Centre. 6 Reliable Automotive Equipment, Inc . 8 SATA Spray Equipment . . . . . . . . 13 Security Dodge-Chrysler-Jeep-Ram . 7 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . 16, 17 Subaru Wholesale Parts Dealers . 51 Sussman Auto Group . . . . . . . . . . 33 TechZone Airbag Service . . . . . . . 14 Thompson Organization . . . . . . . . 15 Toyota Wholesale Parts Dealers . . 48 Valspar Automotive . . . . . . . . . . . . . 2 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 52 Volvo Wholesale Parts Dealers . . . 38 Wagner Auto Group . . . . . . . . . . . 55 Yonkers Kia . . . . . . . . . . . . . . . . . . 10 York Kia of Medford. . . . . . . . . . . . 16
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 3
Martin Scorcese’s Nephew at Heroin Bust in Staten Island
Martin Scorcese’s nephew was arrested, accused of dealing heroin at the auto body shop where he works in Staten Island, NY. Police said Frank Scorcese, 39, of Staten Island, was busted after selling heroin to undercover detectives at Mr. Fix It on April 30, 2014. Scorcese was charged with drug possession and possession with intent to sell. One of the sales was in the presence of his boss, John Santillo, 55, of Staten Island. Authorities said they found eight weapons including two hand guns, five shot guns, and a rifle at Santillo’s home. Santillo and his 57year-old wife Lori were charged with weapons possession. Scorcese has prior arrests for aggravated unlicensed operation of a vehicle, resisting arrest, criminal possession of a knife, and criminal possession of a controlled substance.
Albert ‘Bert’ Riley Moss II of Albany, NY, Passes at 64
Albert “Bert” Moss II, 64, of Albany passed away May 6, 2014, at the Samaritan Evergreen Hospice House.
Albert ‘Bert’ Riley Moss II
Bert was born in Boise, ID, to Albert “Bert” Riley Moss and Constance “Connie” Lee (Chandler) Moss. They moved to Albany, NY, when Bert was six months old. The family owned and operated Bert’s Auto Wrecking for many years. Bert graduated from Albany Union High School in 1968. He served two years in Vietnam and, on his return home, he married Anne Barrand. They later divorced. He received his Auto Body Technician Degree from Long Beach City College (LBCC) and continued in the auto body business. A celebration of life will be held at 2:00 pm on Saturday, May 31, 2014, at the VFW post, 1469 Timber Street, Albany, NY.
PA SkillsUSA High School Sr Wins Collision Division
Quaker Valley High School senior Joe Popowich, 18, of Leet, PA, placed first in the collision repair division in the SkillsUSA Pennsylvania Championships in April 2014, at the Hershey Lodge and Conference Center in Hershey, PA. Popowich was graded by several judges as he worked on a car, including fixing a dent. Popowich will travel to Kansas City to compete in the SkillsUSA Joe Popowich Championships June 23–27, 2014. Joe attends Parkway West Career & Technology Center and said, “I enjoy (the body work). I don’t feel like I’m ever working when I’m doing it. I like working with my hands.”
Anthony E. Ciaburri Jr. of Great Kills, NY, Passes at 47
Auto body technician Anthony E. Ciaburri Jr., 47, of Great Kills, NY, died at home on April 28, 2014. Mr. Ciaburri was born in Brooklyn, NY, and raised in Bay Terrace, NY. He relocated to Great Kills in 2013. He attended Tottenville High School and earned his GED certificate. During his 25 years in the auto body field, he was employed by Richmond County Collision, which was owned by his Anthony E. father, Anthony Ciaburri Jr. Ciaburri Sr. The funeral was held on May 2, 2014.
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Hamden, CT, Body Shop Fire
Firefighter Crews in Hamden, CT, spent several hours battling a twoalarm blaze at an auto body shop on April 25, 2014. The fire chief said that when they arrived the roof of the building had already collapsed. “We never know what’s in this type
Crews battle fire in Hamden auto body shop. Courtesy of Hamden Fire Department via Twitter
of building, could be propane tanks, could be fuel tanks,” said chief David Berardesca of the Hamden Fire Dept. “That’s one of the reasons we decided to fight from the exterior. We had no issues with surrounding buildings. We had run off, we did call DEEP because we had some run off because of the heavy water use.” Several cars were inside the building at the time and also caught fire, according to the chief.
‘Thriving in a Consolidating Marketplace’ Events: IN & IL
Collision Systems and 1Collision Network announced two “Thriving in a Consolidating Marketplace” workshops, will take place at the Wingate by Wyndham in Indianapolis, IN, on June 10th, 2014 and Chicago, IL, on June 12th, 2014 at the Holiday InnRolling Meadows. The program is designed for dealer, single and multiple location collision shop owners, managers, and marketing staff who are interested in discovering new ways to thrive in a consolidated, DRP, web, social, and mobile world. Attendees will be introduced to strategies, tactics, and technology that will help them be more successful in gaining market share, and competing with the regional and national chains. Attendees will also learn how they can use the latest sales, marketing, customer retention and referral technologies and techniques to capture, service and retain more customers, revenue and profit in a consolidating marketplace. Attendees will receive 14 credits from the Automotive Management Institute (AMI) toward their Accredited Automotive Manger Designation (AAM). Registration is $179.00 until registration closes June 5th.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 5
Carubba Collision is Long Time Sponsor of New York State Golden Gloves Boxing
Carubba Collision sponsored the New York State Golden Gloves finals, which were held on April 26, 2014, at the Tralf Music Hall in downtown Buffalo, NY. Over 160 boxers throughout the state in the sub-novice, open class (male and female), and masters division bouts all participated at the
championships in Buffalo. When the final bell rang, 25 new Golden Glove Champions were crowned. Making the formal ceremonial presentations of the awards to the winners and stepping into the ring to do the honors was Carubba Collision president Joe Carubba.
“Joe Carubba has been a tremendous supporter of amateur boxing and the Golden Gloves for a long time,” said Don Patterson, NYS Golden Gloves president. “Without the support of Carubba Collision, it would be impossible to put on this tournament, which benefits thousands of kids in Western New York,” added Patterson.
“I believe in what the Golden Gloves stands for, and I’m proud to support this longstanding American boxing tradition,” said Joe Carubba. “These tournaments help teach kids so much about discipline, respect, dedication, and sportsmanship,” Carubba said.
Argument at Maryland Auto Body Shop Leads to Arrest
On April 28, 2014, Corporal Moritz of the St. Mary’s County Sheriff’s Office responded to Mas Auto Body in Mechanicsville, MD, for a civil dispute, which turned into a disturbance. Per the owner of the business, David Lee Gates Jr., 54, of Mechanicsville, was served with a notice not to trespass on the David Lee Gates Jr. property. Corporal Moritz then advised Gates to leave the property and he refused. Gates was placed under arrest and transported to the St. Mary’s County Detention Center. He was charged with trespassing on private property and failing to obey a lawful order.
Car Fire Spreads to Body Shop in McKees Rocks, PA
A fire that broke out around 4:30 pm on May 1, 2014, sent emergency crews to Isenberg’s Auto Bodymore in McKees Rocks, PA. A worker using a blowtorch in the back lot reportedly caught a car on fire. The flames then spread to the building.
(Photo Credit: NewsChopper 2/KDKA
Five cars were destroyed, but firefighters were able to prevent the fire from spreading to a dry cleaner next door. No injuries were reported. Firefighters brought the situation under control shortly after 5:00 pm.
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CollisionMax Renews ‘Metal of Honor’ Project for 2nd Year, Giving No-Cost Auto Body Repairs to 11 Military Veterans On May 7, 2014, CollisionMax, an auto body and glass repair company with 11 shops in Pennsylvania and New Jersey, announced that it will continue its Metal of Honor Project for a second year. Through the program, CollisionMax gives one free auto body repair per month to a veteran of the United States Armed Forces for each of its repair centers in the Delaware Valley.
Jerry McMullin of Bensalem, PA, left, a 2013 winner of a Metal of Honor free auto body repair, with Rich Tornetta of CollisionMax
“This is our way of honoring and saying thank you to the men and women who have put their lives on the line to defend our country,” said Jim Tornetta, president of CollisionMax. “Every man or woman who served in any branch of the military is
C
eligible. Our only regret is that there are so many more worthy veterans out there than we can reach.” CollisionMax selects honorees from nominations submitted by the public at MetalofHonorProject.com. The site is now accepting nominations for all 11 CollisionMax shops, and will accept nominations throughout the next 11 months for all shops yet to give an award. The nomination deadline for each shop is:
Glassboro, NJ: May 30, 2014 Oxford Valley, PA: June 27, 2014 Warminster, PAL July 25, 2014 Blackwood, NJ: August 29, 2014 Sicklerville, NJ: September 26, 2014 Westmont, NJ: October 31, 2014 NE Philadelphia, PA (Retail): November 28, 2014 Pennsauken, NJ: December 26, 2014 Cinnaminson, NJ: January 30, 2015 Marlton, NJ: February 27, 2015 NE Philadelphia, PA (Fleet): March 27, 2015
Each date is a Friday; nominations will be accepted until midnight.
6 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 7
Newborn Kittens Soften Up Rochelle Park, NJ, Body Shop Mechanics When a tow truck brought a beat-up, windowless black Volkswagen to Prestige Auto Spa in Rochelle Park, NJ, the mechanics didn’t think anything of it.
has a cat at home, soon became a leading caregiver to the shop’s new residents, giving them once-a-day baths in the sink and feeding them every few hours. Until the kittens are more independent, the employees take turns feeding them every two hours. Orfali stops in on the weekends, too. More than anything, the kittens have proven to be a joy for the shop employees and customers, who play with the kittens while waiting for their cars. Orfali said he knows several people interested in taking the kittens once they are older, but he Bashar Orfali, owner of Prestige Auto Spa, bottle does not want to see the two feeds one of the kittens. Amy Newman / staff brothers and sister separated. photographer “If we can keep them here, But when mechanic Moe Tanta we’ll do that,” Orfali said. went to check out the car on May 2, 2014, he heard infant-like wails coming from the vehicle. Three kittens—still toothless, their eyes barely open—were curled up in the back seat, crying. Bashar Orfali, the shop’s owner and a mechanic, brought the weekson Facebook old kittens into the office. Orfali, who
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Job Corps Offers Free Auto Body Career Training in Utica, NY
PA Auto Body Students Restore an Armored Personnel Carrier
Job Corps is offering free technical training to 16- to 24-year-olds in auto body repair careers. The program includes up to two years of education and training, campus housing, meals, and other services. There is no cost for eligible students. A student may also get a New York State High School Equivalency at the same time they train for a career at Job Corps. Call 315-478-5529 for eligibility requirements and to register.
19 students from the Wilkes-Barre Career and Technical Center Auto Body class are restoring an Armored Personnel Carrier (APC), a vehicle that carried troops into battle. The students hope to have the APC ready and in place at Moffat and River Streets in Plains, PA, by Memorial Day on May 26, 2014.
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LIABRA Monthly Meeting and Repair Seminar In May 2014, the Long Island Auto Body Repairmen’s Association (LIABRA) hosted their monthly member meeting as well as a special repair seminar. Their monthly meeting was held at 8PM on Tuesday, May 13th at Touch of Class Collision, located at 120 E. Hawthorne Ave, Valley Stream, NY, 11580. Members resumed their conversation about sales tax audits on auto body shops. They also covered an I-CAR awareness event and held a presentation on Understanding Auto Body Industry Lawsuit Issues. On Saturday, May 10th, LIABRA’s special repair seminar was also held at Touch of Class Collision, beginning at
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8:30AM. The six-hour Advanced Damage Analysis and Estimating Seminar featured presenter Larry Montanez of P&L Consultants. Seminar topics included an Overview of Substrates, Design and Usage; New Joining Methods; Mainstream Aluminum Vehicles; an Overview of P-Page Logic; Advanced P-Page Topics; and Negotiations, Options, the Law and Dispelling Myths. Additionally, Montanez used three case studies to review class pre-work estimates, provided an overview of damage analysis and taught about writing damage reports from a hands-on approach. Contact them at www.liabra.com or 631-941-9647.
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Philly Towing Case
in exchange for bribes. She allegedly collected thousands of dollars in cash from February 2011 to December 2013. For extra cash, Parsley allegedly also gave the tow-truck operators the names and addresses of vehicle owners. A few years ago, “in response to a series of highly publicized, violent encounters between tow truck operators,” the city instituted a rotational towing program “to stop wreck chasing and to prevent accident victims from being taken advantage [of] by tow truck operators who engaged in price gouging,” the indictment says. The rotational system was instituted in 2011 after the series of highly publicized, violent encounters among tow-truck operators competing for business. In one case in September 2010, a Philadelphia tow-truck driver killed a rival operator. K&B, on Kinsey Street near Worth, was on the rotation list. Flowers gave Parsley $100 to $150 a week in exchange for the locations of auto accidents from February 2011 to December 2013. Cheeseman allegedly made weekly payments of
$100 to $200 to Parsley from September 2012 to December 2013, according to the indictment. Harris allegedly paid Parsley about $200 about once a week from April to October 2013. Police said Parsley, a civilian employee, is being suspended for 30 days with the intent to dismiss. Under the Police Department’s rotational-towing program, a dispatcher is first supposed to alert the next towtruck operator on a call list about the location where a tow is needed. Parsley’s lawyer, Jonathan J. Sobel, said that he and his client “haven’t gone through the indictment yet” and will be “looking to resolve the charges with the best results possible for Ms. Parsley.” Fortunato “Fred” Perri Jr., Cheeseman’s lawyer, said, “We’re still reviewing the facts and circumstances of the indictment and any other allegations made by the government.” He added that “Mr. Cheeseman has been a wellrespected member of the business community for the past couple of decades.” Both lawyers reiterated the not guilty pleas. Harris’ lawyer, Anna Durbin, declined to comment. Gregory Pagano, Flowers’ lawyer, did not return a call from the paper.
Continued from Cover
PA Shop’s RICO
According to the complaint, “Defendant Insurers and Conspirator Insurers, through various means but, in particular, their DRP relationships, have created an artificial market rate for repairs (the prevailing rate) that has been imposed upon repair facilities throughout the country (DRP and nonDRP), and has enabled Defendant Insurers and Conspirator Insurers to artificially suppress compensation to repair facilities for insured collision repairs.” Attorney Steven L. Bloch of Berger & Montague PC, representing Crawford’s Auto Center, said that the suit was filed in Illinois for strategic purposes, as “several of the defendants are based in Illinois and conduct a great deal of their business either in Illinois or emanating from Illinois.” “I think it speaks for itself,” Bloch said to a media source by phone. It stems from “the artificial establishment and perpetuation of a so-called prevailing rate, which is used to suppress compensation to collision repair facilities.”
Filing under the Racketeer Influenced and Corrupt Organizations Act (RICO), the suit accuses the defendant insurers of “long-running unlawful conduct to suppress compensation” to shops. The complaint states that, “Defendant Insurers conducted the respective enterprises through a pattern of racketeering activity by fraudulently establishing and misrepresenting the prevailing rate for collision repairs to vehicles covered by insurance, including: (1) hourly labor rates; (2) reimbursement for “paint and materials”; (3) the scope and extent of compensable repairs; and (4) parts prices.” The injury to plaintiffs is “undercompensation for collision repair work and services on vehicles covered by insurance, including the suppression of hourly labor rates, suppression of compensation for “paint and materials”, suppression of compensation for parts, and suppression of compensation for the scope and extent of the repair procedures performed. The complaint also alleges that “Defendant Insurers have made false and misleading representations of See PA Shop’s RICO, Page 16
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35 Years Dedicated to Teaching Tomorrow’s Techs in California by Ed Attanasio
Peter Lock has been a collision repair professor at Contra Costa College (CCC) in San Pablo, CA since 1979, long before most of his current students were ever born. It’s been a great ride and a highly satisfying journey for this 58 year-old devotee to the collision industry and his students. A hands-on professor who connects to his students by caring about them and showing it, Lock is starting to think Peter Lock as a about retirement as senior in high school, he looks back at 35 before attending years in the role. Contra Costa College The auto servto become a body ices department at and paint tech and eventually becoming CCC trains people a lifelong instructor how to be auto at the school service technicians, customizers, body repair specialists, mechanics, painters, damage appraisers, collision repair technicians, parts technicians and smog technicians. The school offers a two-year, four-semester program in either auto repair collision repair technology or auto mechanics, Lock said. Each semester consists of a combination of classroom teaching and hands-on laboratory studies. It seems like a long time ago, Lock said, but he still remembers his early years as a rookie teacher vividly, “I started teaching here when I was 23 and things weren’t as high-tech back then. For one, there weren’t very many auto tech schools around like there are now. Almost everyone had to start at the bottom and learn the business that way, by doing it themselves. I tell my students that learning never ends just because you graduate or get a job. I’ve learned at least 10 times more than I knew when I first started this job and that’s been one of the great things about it.” Lock came to CCC initially as a student himself to learn how to be a body and paint tech in 1973. Upon graduation, he was immediately hired by a series of body shops where he did both body and paint for five years, before he started teaching at CCC. The automotive repair department was limping along at that point, Lock said. “I started out teaching just one night class, but I could see right away
that the program was struggling to keep open and I was hired to keep it going, for one. Back then there weren’t many qualified teachers. Some people had the industry experience, but I had a degree and that’s why I got the job. The opportunity was there and the way it all came together was pure luck. I tell my students that when you get a shot, take advantage of it and seize that moment, because you may not ever get another one.” Before Lock could be a teacher at CCC, he had to take a 60-hour teacher training class, held at UC Berkeley as part of its continuing education program. It was one day he will never forget, he said. “I was running late that day and rushing home to get ready for my first training class. When I walked in the front door, the phone rang and it was someone telling me that my father had just died from a massive heart attack. So, I had to decide—do I go to this class or stay home so that everyone can come over and grieve? I asked myself, what would my dad want me to do? And I know he would have wanted me to attend that class. So, here I was sitting in this class getting ready for an occupation for which I knew absolutely nothing and my father had just died one hour before. It was a challenging time.”
The auto repair classrooms and laboratories at Contra Costa College consist of two separate facilities under one roof, Lock said. The collision repair department covers 10,000 square feet and has 75 students enrolled in its program, he said, and the 6,000-square-foot mechanical repair department has an enrollment of 65 students. CCC offers the I-CAR Industrial Training Alliance program, one of only two post-secondary schools in California to do so, Lock said. The school recently won a $50,000 grant for its excellence and used the money to buy a paint simulator and other much-needed things, like new desks. The steady growth of the auto repair industry in Northern California and the advent of new technology have kept the department at CCC healthy and flourishing, according to Lock. Approximately 2,600 students have come through his department in 3.5 decades and one of the best parts of the job is when his graduates reach out to share their success stories.”Sometimes they call excited to tell me they just got a job at a body shop,” he said. “They call to
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say thank you and that really means a lot. We teach them how to fix cars, but we also instill in them a work ethic and also stress the satisfaction of doing a job right.” Many of Lock’s former students are now body shop owners and they often contact Lock periodically to inquire about hiring some of his current students upon graduation, he added. “I now also have second-generation students entering our program and if I stick around long enough, I imagine I’ll start seeing some third-generation future techs coming through here.” Although he doesn’t have firm plans yet for stepping down, retirement is surely in Lock’s rear view mirror, he explained. “I want to make sure that the program is strong before I retire. Until last year, I was also the Chairman of the Automotive Technology Department at CCC, a job we handed off to Lucille Beatty, so that I can focus on teaching, which I really love the most. I know I can be replaced and that’s okay, but I want to be certain that the department is still thriving when I hand off the reins.”
The right part makes the difference.
Peter Lock today is a lot wiser, a little grayer and truly grateful for an amazing 35-year teaching career
During those 60 hours of training, Lock decided that he was going to make his classes fun and interactive, without spoon feeding his students information they couldn’t use, he said. “I could see that teaching was going to be fun, mainly because I was going to make it fun. I knew if I just stood up there and said a bunch of stuff, I could lose the students rather quickly. So I came up with ways to engage them without talking down to them or making them feel like it was a one-way thing.”
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Mid-Island Collision Seizes Opportunity, Plans to Open Training Center by Chasidy Rae Sisk
Established in 1955, Mid-Island Collision in Rockville Centre on Long Island, NY, received a makeover earlier this year when owner Robert Jesberger expanded his state-of-the-art facility to include the building across the street, making his shop one of the largest inde-
Robert Jesberger at his desk job
pendent shops in the country at 85,000 square feet. Renovations are still in progress to turn the second floor of the new building into an on-site training center for technicians and insurance personnel. Jesberger strives to ensure his facility is amongst the best in the nation because this industry is so important to him—“I bleed this business!”
When the Mercedes-Benz dealership directly across the street from Mid-Island Collision closed down in 2013, Jesberger saw an opportunity to expand his 35,000 square foot facility with the added benefit of ensuring the abandoned building was put to good use instead of allowing it to fall into dilapidation. Though the economy and collision repair business has seen a significant downturn over the past several years, Jesberger purchased the four-acre property with its 50,000 square foot shop and turned the former dealership into a collision repair center which he feels complements his original business quite well. When questioned about what makes Mid-Island Collision so unique compared to other shops, Jesberger refers to the appearance of his shop itself: “not too many shops look like this. We’re not a MSO, yet we’re one of the highest dollar shops in the country. Even dealerships are putting their cars in our front room to promote their products!” With around 70 employees, MidIsland Collision repairs hundreds of vehicles each month, totaling well over 200,000 vehicles repaired since the shop
12 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
opened in 1955. The facility also offers towing and storage services, and they have received factory certifications from “every manufacturer that offers a certification,” Jesberger states. Jesberger takes pride in the fact that his employees have all been trained on factory requirements and equipment, and he believes “no one else in the U.S. has more training than we do.” Yet, he plans to add more. Now that the shop’s construction has been completed and the facility is fully operational, Jesberger has directed his attention to the second floor of his newly acquired building. Previously used as a call center, the 50,000
Mid-Island Collision recently expanded to include the building across the street from their original location
square foot upstairs portion of the facility is already set up with office space, so Jesberger is currently work-
Several local high-end dealerships display their wares in Mid-Island’s reception area
ing out the details of his involvement with Axalta Coating Systems in order to offer on-site training monthly. He also plans to hold some manufacturers’ training in the facility. Mid-Island Collision utilizes Axalta’s waterborne systems and have made other efforts to run a green facility. Jesberger proudly states, “we are green all the way. We were among the first in the country to transition to waterborne paints, and we take great care in our solid waste disposal and other recycling efforts. See Mid-Island Collision, Page 16
Northeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ABAC Legal Counselor Objects to Use of Camera Phone Photos for Estimates An alarmingly more prevalent concern in the collision repair industry is insurers’ use of camera phone photos for writing estimates. Rather than having licensed physical property damage appraisers physically inspect a vehicle after a collision, many insurance companies, including AllState, State Farm and MetLife, are asking their customers to submit camera phone pictures of the damage, and they are using these photos to write their estimates. Attorney John Parese, who acts as legal counsel for the Auto Body Association of Connecticut (ABAC), believes “the growing trend of using camera phone pictures prior to getting a repair professional involved is illegal, unethical, and most importantly, harmful to consumers.” Furthermore, Parese notes that this practice violates the CT Unfair Insurance Practices Act (CUIPA) and potentially other consumer protection laws. As such, Parese has written to the CT Insurance Department outlining his
concerns on behalf of the ABAC, in addition to writing an article for ABAC’s member newsletter which emphasizes the possible dangers of this new habit and why he believes it should be declared unlawful. In his letter to the Insurance Department, Parese highlights portions of CUIPA that define unfair insurer practices as misrepresentations of facts and compelling insureds to settle a claim for less than the value of the repair. Though the benefits for insurers to write estimates based on camera phone photos are obvious, it creates the hazard of such estimates only capturing a fraction of the actual damage and thus encompassing only a portion of the cost to restore the vehicle to its preloss condition, and this is especially dangerous when claimants pocket the check instead of paying for the repairs, a common practice that is certain to increase when consumers believe the damage is purely cosmetic. Parese’s
concern is that “many of these vehicles are not safe to be put back on the road, and the safety of a vehicle often cannot be assessed from a camera phone picture.” Because claims are being paid based on claimant-taken photos which cannot possibly depict the full extent of damages, Parese sees this practice as “a fundamental misrepresentation of policy or third-party rights and benefits... Insurers have a legal and often fiduciary responsibility to make fair and complete payments for covered losses. This system is plainly designed to save insurers money on its own labor costs (ie. less paid appraisers) and on the amount it ultimately pays on claims (ie. calculated underpayment of claims). These savings come at the expense of consumer safety and complete reimbursement.” In his article for ABAC’s newsletter, Parese argues that using camera phone pictures to write an estimate be-
fore involving a repair professional in the process appears unethical and illegal based on CT’s unfair insurance practices law. In addition to safety and legal concerns, Parese also acknowledges that collision repair facilities suffer from this practice because they are losing work on these needed repairs that insurers are arbitrarily dismissing through the practice of writing estimates based on photos which can only capture cosmetic damages. Parese hopes that the issues he has raised will convince the CT Insurance Department to prohibit insurers from engaging in this unethical practice in his state. Unfortunately, his battle only encompasses the state of CT, and though he is unfamiliar with the laws in other states, he encourages trade associations across the country to investigate how this trend violates their state laws and to join the battle to protect consumers and the integrity of the collision repair industry.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 13
Continued from Cover
Shops’ Accusations
adamant about not letting State Farm dictate his parts-buying. “They’re a force to be reckoned with. You don’t want to argue with them. But sometimes you have to stand your ground,” he said. “They trusted me for 20 years, and now I’m nothing,” Johnson said of State Farm. Johnson has repaired cars in Martinsville since 1982, said insurers are continually expanding their lists of work they won’t fully pay for. That included no longer paying full cost for installing corrosion protection inside a bumper and doing fine sanding on body panel paint jobs, he said. “They don’t tell you not to (perform certain routine repair tasks),” Johnson said. “They just don’t pay for it. If they went to Wal-Mart, they’d pick up 10 things and they’d pay for six. That’s the way they operate,” said Johnson, who has joined the Indiana lawsuit against the insurance companies. When insurers don’t cover the full cost of repairs, “it’s such a difficult thing to pass on to a customer,” said Kevin Wells, who operates Quality Collision Inc. in Bloomington and is a plaintiff in the suit. Wells said he often just eats the cost the insurance company won’t pay. “I’m taking it in the shorts by about $6 an hour for every job I do,” Wells said. Johnson said he’d be happy if insurance companies dropped their approved-shop lists and repair mandates and paid for claims without dictating through reimbursements how body shops like his should do their job. “I don’t tell them how to sell insurance,” he said. “All I want to do is fix cars.”
Surveys Also Point of Contention Body shops say State Farm conducts surveys of the going labor rate shops charge in a given area. The data and methodology are not disclosed, shops complain. “Shops are simply required to blindly accept State Farm’s pronouncements regarding these matters.” The insurer attempts to prohibit shops from discussing the labor rates they provide as part of the surveys, “asserting any discussion may constitute illegal price fixing.” Shops that complain the labor rate is inadequate are often told they are the only body shop in the area to say so
and that they don’t conform to the “market rate.” In fact, “State Farm knew multiple shops had attempted to raise their labor rates and advised State Farm of such,” the suit alleges. The shops allege insurers have failed to abide by industry standards for auto repairs and repair-estimating databases. At the same time, many insurers pressure shops to reduce costs by using recycled parts. But used parts like doors can require hours of additional labor to be made to fit properly and to be reconditioned. Ultimately, shops are required to either make “less than quality” repairs or suffer a financial loss. Taking shortcuts raises the specter of safety issues, but once a vehicle is repaired, it’s not easy to spot problems such as improper welds that might be hidden by seam sealer. “The guys can’t make it. It’s not that they are bad businesspeople,” said Scott Blake, of Blake’s Carstar Collision Center in LaPorte and president of the IABA.
Insurers Respond The insurance companies have responded in kind in the media, defending their DRP programs as a key way to keep premiums on auto policies under control. “These lawsuits are another attempt to undermine programs insurers have put together” to hold down vehicle repair costs, said Bob Passmore, a spokesman for the Property Casualty Insurers Association of America, which represents insurance companies. “The programs have been around 20-plus years, and they are time-tested. People like them. They achieve desired results” to get vehicles repaired quickly by repair shops vetted by the insurer and at reasonable cost, he said. “This suit has no merit and in no way accurately describes the business relationship State Farm has with thousands of body shops across the country,” said Missy Dundov, a spokeswoman for State Farm. Dundov said State Farm built its Select Service network by listing body shops that provide warranties on their work and meet performance standards set by State Farm. But a State Farm customer is “free to choose the repair shop of his or her choice,” even if it’s not on the Select Service list, she said. When it comes to parts, Dundov said, State Farm’s “current business practice” is to pay for non-factory-made
14 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
parts only in uses that don’t play a role in crash protection—unless a customer requests otherwise. If a body shop is told to install a used part, “we rely on the repairer to inspect the part and ensure that it is of sufficient quality to repair the vehicle properly,” she said. Dundov said PartsTrader “creates a consistent approach to parts ordering,” she said, and does so “at a competitive price, as quickly as possible.” Body shops overall have had a “quite positive” reaction to the online ordering system, Dundov said. As for allegations in the lawsuit that State Farm steers customers to body shops in its Select Service network, Dundov said it’s up to customers to decide what body shop to use. A spokesman for Progressive, Jeff Sibel, said, “We are aware of the new litigation against us and believe that we can demonstrate the fairness in our claims practices at the appropriate time.” A GEICO spokeswoman, Christine Tasher, said the company won’t comment on pending litigation.
IABA Comments “There’s going to be a battle,” says Tony Passwater, executive director of
the Indiana Auto Body Association, the lead plaintiff. Passwater says that on average, insurers won’t reimburse for $550 to $750 worth of work on a typical repair job of $3,500, leaving it up to the body shop to pick up the unpaid costs. That $550 to $750 estimate of unreimbursed costs will likely be used by the body shops’ attorneys in figuring their damage claims against the insurers. Passwater said the state once had about 2,000 shops; there are now 800 to 1,000. Passwater has been promoting the lawsuit among auto body shops around the state and expects that the 24 current plaintiffs will swell by 15 to 20 in the next several months. But some shop owners, he said, are reluctant to join because “they’re concerned about any retribution the insurance companies might do.” Plaintiff’s Attorney Eaves said he thinks the numerous lawsuits he and co-counsel are filing could eventually be consolidated in one court. He said he expects to present testimony from “whistle-blowers” who worked for insurance companies See Shops’ Accusations, Page 16
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Continued from Page 12
Mid-Island Collision
Mid-Island Collision was founded in 1955 by Vincent Brett, but Jesberger took the business over in 1987 and has worked tirelessly to transform the collision repair facility into a cornerstone of the community through his support of various worthy causes, including the Wounded Warrior Project, the Interfaith Nutrition Network, Island Cares, Island Harvest, and other food pantries. Although Mid-Island Collision is lauded as a cornerstone of the community for their charitable contributions, Jesberger insists, “we don’t do enough – we need to do a lot more! I built this Continued from Page 9
PA Shop’s RICO
fact, and concealed and omitted facts regarding the prevailing rates for insured collision repair services and compensable repair procedures.” Dick Luedke, spokesman for State Farm, told a media source that his company believes the suit has no
business on Godly service and need to do my duty.” He explains that there is a stark contrast between the haves and the have-nots on Long Island and lack of food is a huge problem. As such, MidIsland Collision tries to ease this burden by participating in food drives yearround, not just during the holiday season. The shop also supports charities focused on aiding the underemployed and underpaid citizens in their community. All of this sounds like plenty to occupy the average Joe, but Jesberger is anything but average… he has several more irons in his fire yet! As a pro-consumer facility, Mid-Island Collision does not participate in any DRPs, and “we never will,” Jesberger emphasizes. “When you’re paid like a prostitute, that’s how you work—just
merit, like in other suits filed by collision repairers in recent months. “This suit has no merit and in no way accurately describes the business relationship State Farm has with thousands of body shops across the country,” stated Luedke.
www.autobodynews.com CHECK IT OUT!
a quick in and out. How do you do a quality job when you’re restricted by insurer mandates?” Jesberger has no qualms about battling insurance companies that don’t want to properly compensate him to repair vehicles to his high standards either. “When you have a bully, you can try to run away and hide, but eventually, you have to hit them first. The worst part of any fight isn’t the fight itself – it’s the fear and anticipation leading up to it, so just hit ‘em straight on! Insurers don’t have an agenda for restoring a car to its pre-loss condition. How can an insurer with no factory training tell us what needs to be done? That’s insane in the membrane! We’ve received short pays on anything and everything you can imagine. My motto is ‘if you don’t Continued from Page 14
Shops’ Accusations
and will give evidence of collusion among companies in their business tactics. But the litigation could be fierce, Eaves said.”We’re anticipating extensive pushback. They’re making billions of dollars by these practices and
negotiate, we WILL litigate,’ and we’ve been very successful with only a few cases lost and hundreds won.” Jesberger has been involved in the collision repair industry since he was 13 years old, so he has seen many changes during that time. He notes that the advancements in technology and standards is making the future of the industry increasingly difficult “for 99% of shops, but 1% will stand out if they are factory trained and equipped. You have to be at the top of your game. Many are called, but few are chosen!” Mid-Island Collision 20 Lakeview Avenue Rockville Centre, NY 11570 516-766-0101 www.midislandcollision.com
they’re not willing to give it up easily.” Eaves said several insurance companies have approached him to ask about settling the claims to avoid lengthy litigation and a possible high-stakes jury trial. “We are already in discussion with three insurance companies that are willing to discuss resolving it. I was kind of shocked. I never had a case where somebody came so quickly and wanted out.”
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GEICO Fined
dividuals affected by these actions, including consumers who are no longer insured by GEICO, within 60 days. The settlement requires GEICO to amend claim information reporting, implement new business practices to ensure operators determined at-fault receive notice of that determination and their rights to appeal, and warrant that data reported to the Merit Rating Board is effective and timely. GEICO will be subject to ongoing monitoring and a re-examination in the next two years, after which the commissioner will levy or rescind the second fine. Under the terms of the agree-
ment, GEICO must also: ● Properly report past claim information to the Merit Rating Board and other insurance carriers for claims that occurred between May 18, 2009, and June 1, 2013. p notice of at-fault accident ● Provide determinations and the right to appeal those determinations to operators not previously notified of GEICO’s at-fault accident determinations between May 18, 2009, and June 1, 2013. Operators affected by this inconsistency in GEICO’s prior business practices will be allowed to appeal those determinations to the Division’s Board of Appeal. Consumers who elect to appeal will have their $50 filing fee reimbursed by GEICO. ● Implement new business practices to ensure that operators deter-
mined to be at-fault for accidents receive timely notice of the determination as well as an explanation of their rights to appeal the determination. ● Routinely audit the effectiveness of new business practices designed to prevent errors and report the results to the division over the next two years.
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Letter to the Editor: Certified Aftermarket Parts Tracking is Superior
As I read your story entitled “East Coast Resolution Forum and Leadership Meeting at Northeast 2014” written by Chasidy Rae Sisk and published in the April 2014 Mid-month newsletter, the following caught my eye: ‘Another conversation ensued about the fact that recalls on aftermarket parts aren’t as closely monitored as OEM recalls, creating a safety issue when shops are unable to locate vehicles that have been fitted with recalled aftermarket parts. Ferraiolo circled back to the importance of educating consumers so they can fight their own battles, mentioning the current ABAC campaign to educate consumers.’ While I am sure Ms. Sisk captured the conversation correctly, I would like to comment on the issue raised during the conversation, an issue which is of particular interest in view of the recent GM ignition switch problem. I wanted to call your attention to an article which came to my attention recently. I’m sending it as an FYI, background, if you wish, since the issue of an aftermarket part recall has come up in Autobody News’s coverage of the East Coast Resolution Forum. The March 26, 2014 Reuters by Ben Klaymen, Marilyn Thompson and Julia Edwards article (link below) clearly outlines the impossibility of, in this case, GM to track a part. The OEMs have no mechanism to identify the channel of distribution of their parts sold into the aftermarket. In fact, it appears as if they are not even sure which new vehicles were built with the faulty part. http://www.reuters.com/article/2014/03/26/us-gm-recall-aftermarket-idUSBREA2P21620140326 While the article refers to the current recall involving a GM mechanical part and not a cosmetic external body part, the fact is that, unlike GM or other OEMs, the collision repair aftermarket has a mechanism for addressing recalls. Every certified aftermarket part, whether certified by CAPA or NSF, is clearly designated so that it can be tracked by the manufacturer to the distributor. NSF certified distributors can track the parts to the exact collision repair shop. I believe that some distributors can also track to the vehicle, if the shop has provided the R.O. or claim number, but I don’t know how common that ability is. In any event, the distributor can definitely track the part to the shop, if not to the exact job. Ironically, while shops often erroneously allege that aftermarket parts cannot be recalled, as is reported to have happened at the Forum, the fact is the breakdown in the certified aftermarket part recall process, is between the shop and the vehicle owner. As you can see, based on the information in the Reuters article, the recall process for certified aftermarket parts is far superior to that of the OEMs—Karen Fierst kfierst@kerenorconsultants.com
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 17
Deadly Tornados Caused by Massive Storm Hitting 20 States, At Least 40 Deaths, $1 Billion in Damages The series of storms that wreaked havoc across much of the United States in April rank as the first billion-dollar economic loss event of 2014 that can be attributed to thunderstorms, according to Aon Benfield, the world’s leading reinsurance intermediary’s monthly Global Catastrophe Recap report. At
least 40 people were killed by flash flooding and severe weather during the storms, which included nearly 70 confirmed tornadoes across more than 20 states in the Plains, Mississippi Valley, Southeast, Midwest and Mid-Atlantic regions. Insured losses due to the multiday outbreak will likely end up in the hundreds of millions of dollars, Aon Benfield said. Employees of Auto Glass Now in Jackson, MS, escaped serious injury or death just minutes before a tornado leveled the automotive glass company on April 28, according to regional manager John Ketchum. The shop was pretty much a total loss, but the company has already leased a new building and is back in business already, he says. “[Employees at the shop] called me as I was on my way,” Ketchum explains. “They were concerned because the weather was getting bad and tornado alerts were being issued. They were listening to the radio but none of us realized the severity of the storm. When the alarms [warning sirens] went off, I told them to leave. About 20 minutes later the building was gone. All we could salvage was a chair.” The employees are safe and their homes were not damaged, Ketchum added, but one manager lost both family vehicles. “Basically, I got there and saw all the damage. I gathered everybody together and assured them they still have
a job with us and they aren’t going anywhere. I was lucky to find the building. I called the owner [Tony Hakimian] and told him the extent of the damage. He said to tell everybody we were taking care of their pay for the week. We did not want them worrying. I took the employees out to dinner and Tony bought these guys new tools,” he explains. Ketchum and the owner were able to find a new building and sign a new lease quickly. “We are so fortunate that we found these people a new home for the business. In about an hour we had a new lease signed,” he says. “The next day the employees were back to work. We’re waiting for the phones to be hooked up and we are almost ready to do mobile repair and replacements. We have vehicles being delivered today,” Ketchum says. The tornado that leveled the facility was part of a larger storm system that caused widespread destruction in the state. At least three tornados smashed homes and businesses, flipped trucks over on highways and injured a still unknown number of people in Mississippi and Alabama as the massive storm system passed over several states in the South, also threatening to unleash severe thunderstorms, damaging hail and flash floods. FEMA reported that 15 of the 30 tornadoes on April 27 struck Arkansas, with 5 in Iowa, 4 in Kansas, 3 in Nebraska and one each in Louisiana, Missouri and Oklahoma. People in the path of the system were on edge as the National Weather Service posted tornado watches and warnings around Mississippi, Tennessee, Alabama and Georgia. Forecasters said the system was the latest onslaught of severe weather that triggered deadly tornadoes in Arkansas, Oklahoma and Iowa on Sunday, killing at least 40 people. Arkansas was the hardest-hit state on the first day of the tornado outbreak, and an EF4 tornado roared through
stranded residents. A 10-mile stretch of I-10 was closed due to flooding, leaving people stranded for hours. Gov. Rick Scott declared a state of emergency for the panhandle due to the impacts. Aon Benfield also attributed economic losses of $950 million to a large hailstorm that hit the Denton, Texas metro area in April, an event that generated insured losses of about $650 million. That storm also caused widespread damage in parts of the Plains, Midwest and Mississippi Valley. Michael Harrell, left, of J&J Towing holds up a tow cable According to remarks made before attaching it to a flooded car that was swept off in February by Insurance InFairfield Avenue by torrential rains and deposited in a ditch as fellow employee Charles Thomas assists from formation Institute president an inflatable boat in Pensacola, FL, on April 30, 2014. Robert Hartwig, 80% of (Photo: G.M. Andrews) U.S. natural disaster related insurance claims’ payouts in 2013 was South. The Florida Panhandle was hit attributable to tornadoes and severe with up to two feet of rain in a 24 hour thunderstorms, accounting for $10.27 period causing widespread flooding, billion. Oklahoma incurred the most damages due to tornadoes last year, washing away roads, and requiring helicopter and boat rescues. Florida Gov. Hartwig said, with nearly $2 billion in Rick Scott said that officials received payouts, many of which were from a around 300 calls for rescue from series of tornadoes in May 2013.
An injunction by Florida shop owner Ray Gunder that aimed to block State Farm Insurance’s rollout of the PartsTrader parts procurement system in Florida was never filed in Polk County, FL, Court as was previously reported by Autobody News and other news outlets. Attorney John
Eaves Jr. announced in November at an industry meeting in Florida that an injunction was being filed on behalf of Gunder. The Alliance of Automotive Service Providers of Illinois later issued a release stating that the injunction was filed on Nov. 20. Stay tuned for more information.
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Judge Dismisses Suit Against GM’s Aftermarket Part Price Matching Program A federal judge in Louisiana granted the defendants’ motion to dismiss a lawsuit brought by a distributor of non-OEM parts that alleged General Motor’s price matching program was anti-competitive. The suit, Felder’s Collision Parts v. General Motors Company et. al. was originally filed against GM and the Allstar Automotive Group, an OEM dealer. The initial complaint, filed in October 2012, said the program, which requires dealerships to ‘sell OEM parts below dealer cost,’ is a violation of the Sherman Act, the Robinson-Patman Act (which prohibits anticompetitive pricing) as well as the Louisiana unfair trade practices and anti-trust laws. Court documents describe antitrust, monopoly, and predatory pricing concerns. Felder’s Collision alleged that GM and original-equipment parts distributors such as All Star Automotive Group engaged in illegal “predatory pricing” practices to undercut aftermarket prices and drive aftermarket competitors out of business. The suit alleges violations of federal and state antitrust and state
consumer protection regulations. As Autobody News reported last June, U.S. District Judge James Brady granted Felder’s motion to file an amended complaint. We incorrectly reported that the full complaint had been dismissed. Rather the judge denied the Defendants’ Motion to Dismiss and allowed the suit to proceed. However, in the current order Judge Brady ruled that Felder’s amended complaint failed to adequately plead its case that the defendants violated federal antitrust laws or engaged in predatory pricing. On the antitrust claim, the judge ruled that complaint did not properly define the geographic market. “Felder’s would like this Court to believe that at the heart of this case ‘is a fundamental legal question—whether the All Star Defendants’ practice of selling parts to collision centers and body shops at a price below the cost paid to GM for a particular part constitutes predatory pricing.’ However, what is fundamental to any antitrust analysis is a proper definition of the
relevant market and a defendant’s power to detrimentally effect competition therein. Indeed, this inquiry into both market definition and market power is fundamental to properly evaluating the plausibility of a predatory pricing scheme. The amended complaint only listed portions of Louisiana and Mississippi as the geographic market. Beyond concerns about the geographic market defined in the complaint, the judge also ruled that the amended complaint failed to properly plead a predatory pricing scheme. The ruling states, “After reviewing the Amended Complaint, the Court finds that Felder’s has failed to amend to allege below-cost pricing pursuant to the Fifth Circuit standard as instructed by the Court in its previous ruling. Therefore, even if Felder’s had sufficiently pled the relevant geographic market, it would still have failed to properly plead a predatory pricing scheme.” Representing the Plaintiff is the law firm Sher, Garner, Cahill, Richter, Klein and Herbert LLC of New Orleans.
Hit a Home Run
Toyota Motor Corp.’s relocation of its U.S. headquarters to Plano, Texas, may bring $7.2 billion of economic activity to the area over 10 years, according to an analysis for the city. The figure includes $4.2 billion from payroll, along with direct and indirect spending, and sales and property tax revenue, according to the analysis by Grant Thornton LLP, a Chicago-based audit, tax and advisory company. The report was released May 12, when the city, a Dallas suburb, approved incentives for the company. The world’s largest carmaker said last month that it would consolidate U.S. sales, engineering and finance operations to Texas, moving jobs from California, New York and Kentucky. By 2018, the company could have 3,650 full-time workers in Plano at an average salary of $104,000, according to the report. Plano approved $6.75 million of grants for the company, along with discounts on property taxes. The state is offering $40 million of incentives. Carly Schaffner, a Toyota spokeswoman, said in an e-mail that the company appreciates support from Plano and its residents. The company is “committed to being a model corporate citizen,” Schaffner said. Toyota North America CEO Jim Lentz said “It became clear to me that, although the four-affiliate structure worked in the past, it was going to get into our way in the future.”
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First Mass-Produced Fuel Cell Vehicles Arrive on US Soil, Free FuelCell ‘Refills’ from Hyundai, Range Compares to Gas Vehicles At Port Hueneme, near Los Angeles, Hyundai’s Tucson Fuel Cell CUVs began rolling onto U.S. soil May 20, marking the first delivery of a massproduced fuel cell vehicle for the U.S. market. The first retail sale of the Tucson Fuel Cell is expected within the next several weeks in Southern California. Under the Hyundai leasing program, approved lessees can drive Hyundai’s next-generation Tucson Fuel Cell for just $499 per month, including unlimited free hydrogen refueling and “At Your Service” valet maintenance at no extra cost. For the first time, retail consumers can now put a mass-produced, federally-certified hydrogen fuel cell vehicle in their driveways, with availability at three select southern California Hyundai dealers: Tustin Hyundai, Win Hyundai in Carson, and Hardin Hyundai in Anaheim. “Hydrogen-powered fuel cell vehicles represent the next generation of zero-emission electric vehicle technology, and we’re proud of our leadership role in this important segment of the alternative fuel vehicle market,”
said Mike O’Brien, vice president, corporate and product planning, Hyundai Motor America.
Hyundai’s Tucson Fuel Cell CUVs began rolling onto U.S. soil, marking the first delivery of a mass-produced fuel cell vehicle for the U.S. market. (image credit: Hyundai Motor America)
“The range and refueling time of our Tucson Fuel Cell compare favorably with gasoline vehicles, making them a seamless transition from traditional gasoline-powered vehicles. We’re excited to provide customers in Southern California a way to transition to a zero-emission vehicle with minimal compromises. The Hyundai Tucson Fuel Cell will initially be offered to customers in the Los Angeles/Orange County region
for a 36-month term at $499 per month, with $2,999 down. This includes the addition of a remarkable new addition to the Hyundai Assurance program – unlimited free hydrogen refueling. Consumers have shown strong interest in the Tucson Fuel Cell leasing opportunity, with over 200,000 unique visitors to the Tucson Fuel Cell microsite at hyundaiusa.com/tucsonfuelcell. Tucson Fuel Cell owners will enjoy all the same services of the Hyundai Equus “At Your Service” valet program. As Equus owners have enjoyed since its introduction in 2010, should a Tucson Fuel Cell require any service, a Hyundai dealer will pick up the vehicle and provide a loan vehicle, then return the car after service to their home or business, at no charge.
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Farmers Insurance’s Class Action on Climate Change
Farmers filed nine class actions in April against nearly 200 communities in the Chicago area. It is arguing that local governments should have known rising global temperatures would lead to heavier rains and did not do enough to fortify their sewers and stormwater drains. The legal debate may center on whether an uptick in natural disasters is foreseeable or an “act of God.” The cases raise the question of how city governments should manage their budgets before costly emergencies occur. “We will see more and more cases,” said Michael Gerrard, director of the Center for Climate Change Law at Columbia Law School in New York. “No one is expected to plan for the 500-year storm, but if horrible events are happening with increasing frequency, that may shift the duties.” Gerrard and other environmental law experts say the suits are the first of their kind. Lawyers for the localities will argue government immunity protects them from prosecution, said Daniel Jasica of the State's Attorney's Office in Lake County, which is named in the Illinois state court suit. “If these types of suits are successful - where is the money going to come from to pay the lawsuits? The taxpayers,” he said.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 21
Southeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Southern Automotive Repair Conference Held by Six State Associations The Southern Automotive Repair Conference (SARC) took place at the Beau Rivage Resort and Casino in Biloxi, MS, April 11 and 12, 2014. With six state associations collaborating to host the event, expectations had set the bar high, and no one was disappointed! Steve Plier, executive director of the Alabama Automotive Repair Society of Excellence (ALARISE) who hosted the first SARC in 2012, was “pleased with the conference. This was the first year that we had six state associations working together, and we also had visitors from eastern Texas who are considering forming an association in their area. I think that we all realize that the only way to effect the change needed in this industry is by providing collision repair industry professionals with the opportuSteve Plier nity and means to educate themselves on business principles and to remain abreast of the training and equipment necessary to repair vehicles in light of ever-changing technology.” The first SARC was held in 2012 with most attendees coming from AL, but when ALARISE worked with the Mississippi Collision Repair Association (MSCRA) in 2013, attendance spiked to around 250 industry professionals, including some attendees from FL and GA. By including four additional associations in 2014, SARC more than doubled attendance with nearly 600 individuals present to partake of the networking and educational opportunities provided by the conference. The new associations who participated in the 2014 SARC were the Florida Auto Body Association (FACA), the Georgia Collision Industry Association (GCIA), the Louisiana Collision Industry Association (LaCIA), and the Tennessee Collision Repairers Association (TCRA). The group decided to hire an Administrative Coordinator, Georgia Thorson, to handle the day-to-day questions and details, and Plier praises Thorson for doing such an ex-
cellent job in coordinating the event. Of course, the six associations who hosted the conference also deserve credit for its success. Aaron Schulenburg, Executive Director of SCRS, praises the collaborators. “I’ve had the fortune to be involved in each iteration of this event since it was established, and it is amazing to watch the growth of involvement and drive in the marketplace. There is a lot to be said for the organizational efforts extended by the state associations who are all involved in orchestrating the event, and it certainly makes us proud that all of those organizations are SCRS Affiliate Associations… I always expect a lot out of this event, and it never fails to deliver.” The 2014 SARC focused on education, business principles, consumer protection, and shops’ right to receive fair compensation for work performed. These efforts received approbation from SCRS; as Schulenburg explains, “marketplaces benefit from the ability to have a strong and focused group create opportunities for them to learn from some of the industry’s leading subject matter experts in the convenience of their own back yard. Just as important, the association events promote camaraderie and networking. It’s through these types of events that competitors can view each other as colleagues and that there can be healthy discussion about ways that the industry can better serve the consumer.” The conference began on Friday afternoon and continued on Saturday with a full agenda of featured speakers, breakout sessions, and sponsor demonstrations, in addition to exhibitions on the tradeshow floor which was open for the duration of the conference. Topics ranged from marketing to the new aluminum F-150 and beyond; Plier boasts “you name it and we covered it!” Registration began at 4PM on Friday with the Welcoming Reception and exhibition floor opening at 6PM. The presentations on both Friday and Saturday were moderated by the Master of Ceremonies, Patrick Porter, radio personality and owner of Porter’s Body Shop in
22 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Brookhaven, MS. At 5:30 PM , the first breakout session of the conference was “Businesses Marketing Strategies,” presented by Ron Perretta and sponsored by PPG. On Saturday, the tradeshow floor was open from 8AM until 5PM, allowing attendees to visit exhibitors’ booths in between educational seminars. Ron Perretta began Saturday’s conference at 8AM with a two-hour “Social Media Workshop,” sponsored by PPG which ran at the same time as four additional breakout sessions. Bill Byrnes of America’s Auto Body and Mitchell International both presented at 8AM, and Byrnes repeated his seminar at noon. Next, at 9AM, Tony Nethery, Executive Director of TCRA, discussed “Future Equipment, Training and Cost,” while in another room, the Coalition for Collision Repair Excellence (CCRE) explained who they are and what they strive to do.
The Featured Speakers segment of the conference began at 10AM with an Industry Update as presented by Schulenburg on behalf of SCRS. Schulenburg was followed by Richard Valenzuela of NABR who discussed “Variable Rate Systems.” In addition to Byrne’s second breakout session at noon, two more sessions were held at the same time: a two-hour session on the new aluminum F-150 model, led by Chief’s Ford F-150 Project Manager, Richard Perry, and a one-hour segment by Dave Bortz of Car-OLiner. While Valenzuela repeated his seminar at 1PM, Ron Perretta of Professionals Auto Body held a breakout session entitled “Business Basics,” thus concluding the event’s breakout sessions. From 2-6PM, the final four Featured Speakers gave one-hour presentations, beginning with Congressional Medal of Honor Recipient, Mike See SARC Delivers, Page 30
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Getting Powered Up at the 2014 WIN Annual Educational Conference by Alicia Basteri, Online Editor
As a newbie to the collision repair industry, I was one of the 65 new Women’s Industry Network (WIN) members attending their first WIN Annual Education Conference, which was held May 5–8, 2014, at the Paradise Point Resort & Spa in San Diego, CA.
WIN and registering for the conference, I received a personal email from a WIN member warmly welcoming me to WIN and offering assistance with any conference questions. This was to set the tone for my experience.
Day 1: Monday, May 5th The meeting kicked off on an unchar-
The scavenger hunt was designed to meet attendees from different generations
I wasn’t sure exactly what to expect—and was more than pleasantly surprised! Even before arriving, after joining
acteristically blustery day (for San Diego, anyway). I received another warm welcome at the registration desk, and was super stoked to unwrap a styl-
24 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
ish black pashmina from my welcome packet—it certainly came in handy! As I walked into the conference room and looked around for a seat, I paused and smiled as I realized that it was a room full of women (well, there were a few men). I settled in next to friendly faces as the emcee, Michelle Sullivan, welcomed a record number of 178 conference attendees. “When I think about why I get so excited about WIN, for me it is all about camaraderie—camaraderie is the spirit of WIN.” Sullivan then introduced the theme of the conference by inviting attendees to “Power Up!” Next, 2013-2014 WIN Board of Directors chairwoman Margaret Knell recognized WIN achievements over the past year, the 2014 WIN Conference sponsors, as well as committee chairs, co-chairs, and other members. In addition, she presented Denise Caspersen and Ruth Weniger with the 2014 WIN Cornerstone Award, which is awarded to individuals on the WIN Board of Directors who exemplify the values and vision of WIN. Laurie Cusic, senior facilitator for Brody Professional Development, then
presented “Bridging the Generational Gap,” which addressed the need to understand generational differences in a workplace with four distinct generations—traditionalists, baby boomers, generation Xers, and millennials (or
Recipients of the 2014 WIN Cornerstone Award, Denise Caspersen and Ruth Weniger
generation Yers)—and attendees participated in a related networking event. My overall first impression was that there was great energy in the room, and, unlike a lot of other con-
ferences, everyone seemed genuinely excited—and “powered up”—to be there, friendly, supportive, and proud. This feeling was solidified during the welcome dinner at Paradise Cove, where attendees mingled with old friends and new over a luau-themed menu, followed by roasting marshmallows in a bonfire to make s’mores.
ple: adders, subtractors, multipliers, and dividers. Next up, the engaging Colette Carlson, founder of “Speak Your Truth”, talked about “The Hard, Cold Truth—Working Hard Isn’t Working,” including how to communicate successes, cultivate connections, and develop strategic relationships. After lunch, attendees went to one of three workshops about technology (“Mastering the Muck of Your Technology” by Kathi Burns), negotiation skills (“Truth About Negotiation: A$k and You Shall Succeed” by Colette Carlson), or
Day 2: Tuesday, May 6th Attendees started day two with the annual WIN Scholarship Walk to raise funds for the WIN Scholarships. Following a continental breakfast, charismatic keynote speaker Dr. Verna Cornelia Price, CEO of The Power of People Consulting Group and author of “The Power of People: Four Kinds of People Who Can Change Your Life,” tapped into the WIN “Power Up!” theme with her message of “The Power of You!” Dr. Price explained that you are born with power; no one has more power than you; no one can Keynote speaker Dr. Verna Cornelia Price talking about take your power (but you can “The Power of You!” sustainability (“The Green Revolugive it away); and your power multiplies when you use it. She also talked tion” by Mike LeVasseur). The day ended with the WIN Anabout the four types of powerful peo-
nual Membership meeting, which proAuto Auctions (IAA), presented “The vided the “2014 Report to the Industry” Increasingly Interconnected APD Sysincluding reports from the Communitem,” covering the operational and cations, Membership, Finance, Scholtechnological forecast for IAA and arship, Nominating, and Governance key information about the direction of committees. In addition, the WIN Board of Directors, new WIN Executive Committee, and WIN Scholarship winners in attendance were recognized. The evening festivities started with a cocktail reception, followed by the annual WIN Gala and Most Influential Women Ceremony. After dinner, WIN colleagues and friends recognized and introduced the honorees: Frederica Carter, president of F. Carter Events, LLC (former communications manager at New WIN board members: (left to right) Marie Peevy, Trish Gould, Jaclyn Byers, Jessica Rob, and Nina AkzoNobel); Jordan Hendler, Pedrazza-Zinna executive director of the Washington Metropolitan Autobody the industry. Following the break, Jane Hylen, Association; and Leanne Jefferies, director of Collision Programs for senior vice president of North Central AIA Canada. And last but not least, Operations Enterprise Holdings, presented “Keys to Success” within the dessert was served! automotive industry. Tracy Holberry from SherwinDay 3: Wednesday, May 7th After a continental breakfast, John Williams presented the 2014 ScholarKett, president and CEO of Insurance See Getting Powered Up, Page 30
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 25
Nick Orso’s Body Shop in Syracuse NY Takes a High-End View by Chasidy Rae Sisk
Since Nick Orso’s Body Shop was founded in 1954, their goal has been to provide “the finest in collision repair and painting services.” While this may seem to be a daunting task in itself, it’s not the only aspiration of Mike Orso, President of Nick Orso’s Body Shop in Syracuse, NY. Mike also strives to stay involved with his local comFounder Nick Orso munity and to do his part for the environment through his shop’s many green efforts. Originally opened as a three-bay repair shop, Nick Orso’s Body Shop is now one of the largest independent, family-owned collision repair facilities in their area. The shop specializes in high-end vehicles, a feat requiring extensive skill and attention to detail, and their excellent craftsmanship has been displayed by the cars they’ve restored which appear at car shows all along the East Coast.
Mike credits Nick Orso, his father and the shop’s founder, for promoting the proper values and work ethic which has led to the shop’s success. Mike proudly notes, “customers came from all over the country for collision and specialty custom paintwork that only Nick could do. Customers would say, ‘nobody but Nick touches my car.’ Nick was self-taught and became an exceptional craftsman. He loved to fix something no one else could fix, to make something work that others gave up on, and it thrilled him to no end. Working with his hands was his passion.” A member of SCRS and CCRE, Nick Orso’s 28,000 square foot facility employs 22 individuals repairing an average of 150 vehicles monthly and doing approximately $3 million in business annually. As part of their efforts to provide customers with a quality repair, the shop follows manufacturers’ guidelines and recommendations whenever possible. They also aid customers by providing towing services and substitute transportation, ensuring that their customers are well taken care of from the very be-
ginning of the process. A rental fleet Vortex waterborne basecoat system of 35 new Honda, Accords, Civics, and clear urethane topcoat, chosen CRVs and Odessey Van are ready to partially because of the association roll. with Sherwin-Williams and the Emphasis on customer service NAPA distribution system. Accordplays an integral role in Nick Orso’s ing to Orso, “our NAPA distributor Body Shop’s success. “At Nick and the Martin Senour team were key Orso’s, satisfying our customers is to our success in implementing the the most important goal we have!” Mike Orso explains, “our whole organization is dedicated to quality control and customer service - it makes our shop successful. Whether the car is a VW, Bentley or GMC, the repair has to fit the customer’s expectation and be as close as humanly possible to preloss condition.” The shop is a NAPA Approved Collision Center with repairs covered by Nick Orso’s limited warranty and backed by NAPA nationwide. Another way that Nick Orso’s Body Shop ensures the vehicle is repaired to the proper standards is through Mike Orso follows in his father's footsteps the use of Martin Senour’s
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Vortex line, and they continually train and update our staff on product improvements.” In regards to the importance of the paint system in the repair, Mike also notes, “most parts are purchased in factory primer, and we create the surface structure of primer layers to closely duplicate the factory layers on a particular make and type of vehicle.”
Nick Orso working on a car in early days
The decision to use the Vortex waterborne line is also “due to its green benefits, part of our effort to continue undertaking environmentally friendly activities,” Orso explains. Orso began the transition to waterborne in 2008 when he converted two old downdraft spray booths to waterborne paint drying systems, followed by upgrading his compressor and dryer systems.
In 2013, they replaced both booths with new Sacio Zero Emission technology. Though the expense was significant, over $300,000 for the two new booths, the benefits outweigh the costs since it substantially reduces their VOC output. Orso says, “new technology affords us faster production time and faster drying time. Instead of painting five projects a day, we can do eight or ten projects a day in each booth.” Nick Orso’s Body Shop was also the first business in their area to convert to solar power when they installed 280 solar panels on their roof, allowing them to collect enough energy to supply 90% of the power needed for the shop. Although the investment cost $400,000, a quarter of that was funded by state and federal grant money, and the project has allowed Orso to reduce electricity costs by 60-70%. In recognition of their positive environmental efforts, Nick Orso’s Body Shop received a citation from the New York State Assembly. Explaining his decision, Orso states, “I wanted to have an alternative power system in my business, and we looked at everything from wind to solar power… We were the first business in our area to switch over to solar
power – our project is what they wrote the code to for solar power installations. Before our project, the largest solar power installation in town was
The present Nick Orso’s shop occupies 28,000 sq ft.
when someone put a couple panels in their front yard. No one got into a setup where the whole business was on solar power with a dual meter, where overrun could be sold back to the power company.” In addition to their commitment to the environment, Nick Orso’s Body Shop also takes their commitment to their community very seriously. The shop is very active in supporting charities and improving social awareness, such as local Stop DWI and Zero Tolerance, Distracted Driving and NY Move-Over Law efforts. They sponsor local youth sports activities, mentor at colleges,
and speak at high school career days in their area. Nick Orso’s also supports local churches and their neighboring AIDES Resource Center, in addition to numerous other charitable contributions and services. Nick Orso’s participates in NAPA-3M’s joint effort to “Hire Our Heros” and participated in the “Rides” program where a restored car was given to a deserving family. “At the end of the day my goal is to give back some of what the community has given me. It’s a good feeling to pay it forward” Mike said. Nick Orso’s Body Shop 638 West Genesee Street Syracuse, NY 315-471-8521 www.nickorso.com
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 27
H OND A C ONN ECT I CUT
Lia Honda of Enfield E nf ield
800-221-3131 860-741-3401
Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com
Schaller Honda New Britain
800-382-4525 860-826-2080
Dept. Hours: M-F 7:30-5; Sat 8-1 rshindera@schallerauto.com M ARY L AND
Criswell Honda Ger m an t ow n
866-738-2886
Dept. Hours: M-Thu 7-9; Fri 7-7:30; Sat 8-6 hondaparts@criswellauto.com
O’Donnell Honda E llicot t City
410-461-5000 410-461-9654
Dept. Hours: M-F 8-6; Sat 8-5 bshortt@odonnellhonda.com
Ourisman Honda of Laurel Lau rel
800-288-6985 301-498-6050
Dept. Hours: M-F 7:30-7; Sat 7-4 ron.malitz@ourismanautomotive.com M ASSA CHU SETT S
AutoFair Honda Ply mou th
508-927-5272
Dept. Hours: M-F 7:30-7; Sat 7:30-6 service@autofairhondaparts.com
AC URA M ARY L AND
Tischer Acura Lau rel
800-288-6983 301-498-3322 Dept. Hours: M-F 7-6; Sat 8-4 wholesaleparts@tischerauto.com M ASSA CHU SETT S
Acura of Boston Brig ht on
800-254-1169 617-254-5400 Dept. Hours: M-F 8-5:30; Sat 8-5 bruce.fisher@acuraofboston.com
28 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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The Honda and Acura Dealers Listed Here are MA S SAC H U S ET TS
NE W J ERSE Y
N EW YOR K
P EN N SY LVA NI A
Cambridge Honda
Hudson Honda
Brewster Honda
Apple Honda
866-258-6216 617-453-5450
866-483-6917 201-868-9500
845-278-4177
800-960-9041 717-848-2600
Ca m b r id g e
Wes t Ne w Yo r k
Dept. Hours: M-F 8-6; Sat 8-5 mattcambridgehonda@yahoo.com
Dept. Hours: M-F 7-7; Sat 7:30-5; Sun 8-3 anthony.perrone@hudsonhonda.com
LIA Honda Northampton
Madison Honda
800-369-7889 413-586-6043
800-648-0293 973-822-1710
N or th am p t on
Dept. Hours: M-F 7:30-5:30; Sat 8-4 dstanisewski@liacars.com NE W J E R S E Y
Clinton Honda An n a n d ale
908-735-0900
Dept. Hours: M,Tue, F 7-6; W, Thu 7-7; Sat 7-4 chrish@clintonhonda.com
Hackettstown Honda
M a d i so n
Bre ws te r
Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com
Dick Ide Honda Ro che s te r
800-462-0056 (N.Y.) 585-586-4919
Dept. Hours: M-Thu 7-8; Fri 7-6; Sat 8-6; mschumer@madisonhonda.com
Dept. Hours: M-Thur 8-8; Fri 8-5:30; Sat 8-5 parts@dickide.com
Planet Honda
Lamacchia Honda
800-964-7280 908-964-8411
Dept. Hours: M-F 7:30-5:30; Sat 9-1 parts@lamacchiahonda.com
U ni on
Dept. Hours: M-F 7-7; Sat 7-5 flopez@planethondanj.com
Rossi Honda V i ne l a nd
800-893-3030 856-692-4449
S yra c use
315-471-7278
Lia Honda of Albany A lba n y
800-272-6741 518-482-2598
Dept. Hours: M-F 6:30-5; Sat 7:30-3 dave@rossihonda.com
Dept. Hours: M, T, W, F 7:30-5:30; Thur 7:30-8; Sat 8-5 tmorris@liacars.com
Dept. Hours: M-F 7-7; Sat 8-4 Erin.Watson@hackettstownhonda.com
Route 22 Honda
Lia Honda of Williamsville
Honda of Princeton
973-705-9100
877-659-2672 716-632-3800
H a cke t t s town
888-450-8126 908-852-4172
H i l l si de
W il l ia msv il le / Buffa l o
P r in c e to n
Dept. Hours: M-F 7-7:30; Sat 8-5 rt22hondaparts@route22honda.com
Dept. Hours: M-F 8-4:30 kphillips2@princetoncars.com
VIP Honda
Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com
N o rt h P l a i n fi e ld
908-753-1680
Ray Laks Honda
Dept. Hours: M-F 7:30-6; Sat 8-3 kevinh@viphonda.com
716-824-7852
800-682-5941 609-683-5941
Honda of Turnersville Tu r n er sv ill e
800-883-0002 856-649-1584
Dept. Hours: M-F 8-6; Sat 8-4 sbaptist@penskeautomotive.com
NE W YO RK
Dept. Hours: M-F 7:30-8; Sat 7:30-5:30 ekuznicki@raylaks.com
Baierl Honda Wex f ord
724-940-2006
Dept. Hours: M-F 8-5; Sat 8-4 johnryan@baierl.com
J.L. Freed Honda Mont g omer yv ille
215-855-3587
Dept. Hours: M-Thur 8-6; Fri 8-5; Sat 8-4 joseph.sciacca@jlfreed.com
Shadyside Honda Pit ts b urgh
800-468-2090 412-390-2908
Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com
Sussman Honda Ros ly n
800-682-2914 215-657-3301
Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
For more collision info, go to: collision.honda.com airbagaware.honda.com crashrepairinfo.com
Babylon Honda Wes t B a by lo n
631-669-5800
NE W YO RK
Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com
We s t Se ne c a
Dept. Hours: M-F 7-7; Sat 7:30-3:30 babylonparts@aol.com
NE W J E R S E Y
York
PEN NS YLVANIA
PEN NSY LVAN IA
Acura of Turnersville
Curry Acura
Apple Acura
Tu r n e r svil l e
S c ar s da l e
Yo r k
E mm aus
888-883-2884 856-649-1884
800-725-2877 914-472-7406
877-5APPLE5 717-849-6639
877-860-3954 610-967-6500
Dept. Hours: M-F 8-5; Sat 8-4 egreger@penskeautomotive.com
Dept. Hours: M-F 8-6; Sat 8-5 parts@curryacura.com
Dept. Hours: M-F 7-5:30; Sat 7-3 parts@appleacura.com
Dept. Hours: M-F 7-5; Sat 8-5 mustafa@vinart.com
Elite Acura
Paragon Acura
Baierl Acura
Sussman Acura
Ma p le Sh ad e
Woo d s i d e
Wexfo rd
Jen kint own
856-722-9600
718-507-3990
Dept. Hours: M-F 8-5; Sat 8-4 bmartinsen@group1auto.com
Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com
800-246-7457 724-935-0800
800-826-4078 215-884-6285
Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com
Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
NE W Y O R K
Acura of Westchester We st ch est er
914-834-8887 Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com
Smithtown Acura St. James
888-832-8220 631-366-4114 Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com
Lehigh Valley Acura
Davis Acura L a ngho r ne
866-50-ACURA 215-943-7000 Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 29
Continued from Page 22
SARC Delivers
Thornton. The motivational speaker shared war stories with an emphasis on teamwork, and Plier notes that Thornton’s speech was “very moving… If that didn’t send chills up your spine, I don’t know what would!” Next, Dave Poston, Collision Marketing Manager for American Honda, discussed “Honda Repair Technologies,” followed by Assured Performance’s Aaron Clark who covered “OEM Certification”, providing an idea of what’s to come regarding this topic. The event concluded with a discussion and question-and-answer session on the details and status of lawsuits filed against insurers, led by John Mosley, President of MSCRA and owner of Clinton Body Shop, and Ray Gunder of Gunder’s Auto Center, along with Attorney John Eaves Jr. Alysia Hanks, Executive Director of LaCIA, was “most excited about getting to meet Mr. Gunder. He was just as nice as could be, and I could tell he really cares about this industry when he spoke. It was also nice to be around so many individuals in
our industry who also think it’s well past time for a change.” Hanks was also honored to have Randy Ishee, from the LA Attorney General’s office, attend SARC 2014 as a guest of the LaCIA. He was invited to speak at one of the meetings, and Hanks said, “when I spoke to him before the event ended, he told me it was his mission to right the wrongs in this industry for all these good people in it and, most importantly, for the consumer. He has friends in other states who are in this industry, and he couldn’t believe the things he was uncovering. We’re lucky to have him on our side.” Regarding the many educational seminars and breakout sessions, Schulenburg noted, “attendees were engaged in the conversation throughout the day and were clearly hungry for the motivation and tangible solutions they received from all the speakers. With more than 500 repairers in attendance, it was a success by every measure.” Concurring with Schulenburg’s analysis of attendees’ interest in the discussions at the conference, Plier says that “their enthusiasm tells me that repairers thirst for this kind of information and that they want to im-
prove for the consumer.” Hanks believes the event went very well, and she feels “so lucky to be part of an industry where we have so many people who just genuinely want to do the right thing and make an honest living without having the daily fights we have to battle… I think [the conference] was a great opportunity for us to network with other states and hear what they are doing. I’m already looking forward to next year!” The only negative feedback Plier has received referenced the plethora of information presented—“we received a few complains about the classes running together and attendees not having enough time to visit the exhibitors. We stubbed our toes on a few things, like the over packed agenda, and we could’ve done a better job organizing registration. We are looking at ways to avoid cramming so much in for next year to make it easier to pick and choose which segments each person
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Getting Powered Up
ship recipients in attendance, Stephanie Baker and Suzanna Hernandez, with a certificate for tuition and travel-related expenses paid in full for any automotive training course at a Sherwin Williams Training Center of their choice. Margaret Knell closed the conference with a summary of the events and officially passed the torch to Denise Caspersen, newly-elected chairwoman of the WIN Board of Directors.
2014 WIN Most Influential Women honorees Leanne Jefferies, Jordan Hendler, and Frederica Carter
If you’re a woman in the collision repair industry, I highly recommend that you join WIN (visit http://the-
wants to attend and to allow more time for networking and visiting exhibitors.” Despite these minor stumbling blocks, Plier believes the SARC 2014 went well overall, and the nice weather that weekend led him to state “it was like a little vacation but also an educational opportunity.” He also believes that Biloxi was the perfect location for people to come out and enjoy the conference as it is about as centralized as possible. The six collaborating associations met on Friday night, and deciding to keep the SARC in Biloxi for the next two years, they set dates. Next year’s conference will be held on April 17 and 18, 2015, while SARC 2016 will take place on April 8 and 9. The core group has already begun planning for next year’s event with the goal of addressing as many hot topics in the industry as possible. If this year’s SARC was any indication, next year’s event should be even more exciting!
What are the Best Parts of Driving? Mazda Parts.
WIN Scholarship winners with WIN Committee co-chairs: (left to right) Suzanna Hernandez, Teresa Bolton, Stephanie Baker, and Bev Rook-Twibell
womensindustrynetwork.ning.com/pa ge/join-win-1 or email Mary Kunz at MarySKunz@gmail.com) and attend the 2015 WIN Annual Education Conference. If you’re already a WIN member, WIN asks that you please consider joining a committee as WIN is entirely volunteer-based. Sign in to http://thewomensindustrynetwork.ni ng.com/page/join-a-committee and click on the Committee description to find full descriptions and contact information. If you missed the 2014 conference but will be attending the 2014 NACE/CARS Expo and Conference, stop by the WIN booth.
30 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Five Common Marketing Mistakes Body Shops Make with Ed Attanasio
1) Too Many Hats. Too Little Bandwidth You’re the owner, estimator, painter, front office person, receptionist, marketing director, technician and detailer. Oh, and I also forgot janitor, psychiatrist and a shoulder to cry on. As a marketing person, I wouldn’t know how to write an estimate or paint a fender, so why do you insist on trying to do it all when it comes to your marketing, public relations and advertising? Wearing too many hats means you’re doing too much and marketing should be the first hat to remove from your busy life as soon as you possibly can.
Solution: Empower and Delegate In some cases, you may already have someone in your crew that can help you in your marketing efforts. Maybe one of your estimators or front office people can play a role in your marketing scheme. One body shop took a newbie office assistant and turned her
into a confident and extremely efficient marketing professional and now she does all of their e-mail marketing, blogging, social media and online advertising. All it took was one day of training and she was up and running and ready to take on the world.
2) Too Late to the Party Without a strategized plan and an annual marketing budget, you’re shooting in the dark and the first casualty could be your business. Too many body shops get fat and happy when the cash flows in, but all of a sudden—wow, the competition comes to town or they lose a DRP and jump into panic mode. One body shop owner freaked out when three MSOs moved into his city, so he borrowed $50,000 and asked me where should he spend it? Use it for your retirement, I said, because marketing is something you do all the time—not just in emergency mode.
Solution: Make It a Priority Marketing moves quickly and if your competitor is working faster and harder than you are, they will obviously capture more market share. There are only so many car accidents in your area every year, so why is the shop down the street fixing 150 vehicles monthly while you’re doing half that? Maybe because they’ve made their marketing a priority while many of your marketing projects are sitting in a constant state of limbo. “We’ll get to that next week…next month…next year,” and then it never happens. Marketing is not a part-time thing reserved for evenings and weekends, it’s fastpaced and ever-changing and that’s why it needs to be full-time and on the front burner.
3) Too Many Unrealistic Expectations If a marketing company says that they’ll get you ranked #1 on Google within one month’s time, listen to
what your father used to tell you—“If it looks too good to be true, well…” Some so-called marketing agencies can get you involved in what they call “black hat tactics” while promising you the world, which can lead to Google sanctioning you and shutting down your web site. If any company promises you anything—get it in writing and don’t pay them until they deliver.
Solution: Devise a Plan and Stick to It Too many business owners (not just body shops) develop a “checked box” mentality when it comes to their marketing efforts. “We updated our web site, created a blog and did some SEO, so we’re good.” Well, maybe you’re good right now, but how about three months from now? Just by checking things off on your marketing to-do list doesn’t mean you can stop or slow down. New content should be added to your site all the time to enhance
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www.bandras b d ssociates.com i t 32 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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SEO. Your blog needs new articles, photos, etc. on an ongoing basis. I hate to see a collision blog that hasn’t been updated since 2012, for example. Marketing, advertising and public relations is not a start-and-stop thing.
4) Too Dependent on DRPs You have some nice cozy DRPs that bring you tons of business, but if they make up more than 80% of your total revenue, you’ve got too many eggs in one basket. What happens if you fumble a couple repairs and suddenly you’re no longer the insurance company’s flavor of the week? A healthy balance between DRPs and non-DRP business should be close to 50-50, but too many shops don’t get it, until they get the axe. By continually hammering away at the big three—marketing, public relations and advertising—one DRP won’t be able to make or break you.
Solution: Seek Your Independence If you’re DRP dependent, you might want to do more consumer marketing and advertising, such as radio and TV broadcast, outdoor advertising, direct mail, online advertising and social media. You can continue relying on your DRPs, but when times change
and the DRPs are harder to attain, you’ll be in a better place and more prepared for a life with fewer DRPs. Plus, it all works together to brand your business, so that when consumers do have a choice, you’re on their radar.
5) Too Much Micromanagement Perform your due diligence and talk to a lot of marketing experts before choosing which way to go. But once you find the right company or individual, let them do their job and step aside. Too many body shops owners listen to everyone about marketing—their wives, girlfriends, the postman and the guy at the deli down the street. Hire the right people and let them perform. Sit down with them every 3-6 months to check the results of their work and reassess things at that point, but don’t jump the gun when you don’t see instant results. Marketing takes time, like fine wine—but in the end you’ll start seeing positive results, because solid marketing is an investment and not an expense.
tions and then pass it on to the people who will actually be doing the heavy lifting. If you’re knowledgeable, you won’t have to take advice from people who read something somewhere and aren’t afraid to share it with you. You need to be the final arbiter when it comes to your marketing. You may not have the time to do it yourself, but at least you’ll know what’s going on. The paint companies, professional organizations and marketing firms offer classes, training sessions and seminars all the time and many of them are free, so be a sponge and suck up as much of this information as you can, because knowledge is power.
Solution: Become a Sponge Learn as much as you can about marketing, advertising and public rela-
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State Farm to Raise Rates
State Farm, Illinois’ biggest car insurer, plans to raise its auto rates in the state by an average of 2.3 percent starting May 26, according to a filing. “Auto insurance rates in Illinois were adjusted to better reflect changing claims costs,” namely a rise in car repair costs, said Missy Dundov, spokeswoman for the Bloomington-based home and auto insurer. The exact price change will depend on the coverages that policyholders have, she said.
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Study Reveals 2/3 of Drivers Are Distracted on the Road
A new Plymouth Rock Assurance study reveals that nearly two-thirds of drivers engage in distracted driving behavior on a daily basis. The study, which consists of data surveys of 3,300 consumers, shows that texting and driving is one of the biggest distracted driving habit among drivers. More than 50 percent witnessed a driver texting with at least one adult passenger in the car, and nearly 40 percent witnessed a driver texting with at least one child in the car. The study’s findings further underscore Plymouth Rock’s push for distracted driving awareness through their campaign launched in August 2013. Encouraging drivers to join the fight against distracted driving, and in lieu of Distracted Driving Awareness Month, Plymouth Rock urges all drivers to sign the Pledge Against Distracted Driving. The Pledge is a commitment to refrain from cell phone usage and any other form of distracted driving, and always stay focus on the road. Drivers can access the pledge and learn more by visiting FightDistractedDriving.com.
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1601 Easton Rd., Willow Grove, PA 19090 www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 33
On Creative Marketing
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
What’s In A Name? Possibly The Success of Your Shop! with Thomas Franklin
Recently the president of the local Autobody Association Chapter renamed his shop. It had been J & L Body Shop for many years, but he chose to rename it Fix Auto, Sun Valley. Obviously he chose this name to reflect a relatively new relationship with the Fix Auto organization. But there may have been a deeper reason for the renaming. When all a prospective customer has to judge a shop is the name, a name like J & L really says nothing about the nature or quality of the shop. And this shop name is typical of many shop names that just reflect the owner’s name or names. But even those shops that intend to convey some degree of quality in their name -- like Elite Auto Body, Precision Auto Body, Superior Auto Body, Supreme Auto Body, Ace Auto Body, etc. -- are so commonplace they are no longer noticed. The effect can be the exact opposite of what was intended. Ideally you need to create a name with a trademark image that no one can ever mistake as someone else’s! And that image has to convey quality and uniqueness at a single glance -- not an easy task. First of all, recognize your own uniqueness. Every human is different. We have unique fingerprints and voiceprints. Your shop also has at least one unique characteristic. There is at least one thing that your shop does a little different (and hopefully a little better) than most shops around you. Find a way to emphasize that. You don’t necessarily need to change the name of your business, but you do need a sub-title, a slogan that strongly announces some specialty that is uniquely yours. Some shops specialize in a particular make of vehicle.
Identifying their specialty is easy. They can announce: “We are masters of Jaguar repair” or “Porshe repair” or “Volvo repair.” Others may focus on being “Paint Matching Specialists” or “Excelling in Perfect Restoration.” Shops that are already successful may not need much more, but those with no recognizable image need to be doubly creative. While actually changing the name of your body shop may be a more radical move than is necessary, it could also be a very powerful marketing action if a name with exceptional drawing power is selected. A few body shops in the Los Angeles area have names that suggest certain characteristics. One shop, for example, is named “Car-tique,” an obvious adaptation of “boutique” which suggests a small but elite type of shop. Another body shop was named “Picasso,” obviously a reference to the famous painter and an implication that this shop specializes in fine paint work. One shop in the Marina area was called the “Insurance Collision Center,” a direct reference to their primary source of work. “Country Club Auto Body” in Mission Hills would seem to be catering to affluent customers (or “wanna be” affluent customers). A shop that emphasizes service might want to choose a name like “Red Carpet Auto Body,” that says to a prospect, “Come to our shop and we’ll roll out the red carpet for you.” A name of this kind also provides some immediate ideas for decor. In his “The Guerrilla Marketing Handbook,” Jay Levinson has a number of good suggestions on name selection that might apply to body shops. For openers he discourages seeking advice from friends, family and other casual
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34 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
bystanders. He notes that names selected by committees are “usually losers.” He suggests instead making a list of the qualities your business emphasizes, with an eye to incorporating a key quality in the name of your shop. Some examples might include “Speedy,” “Reliable,” “Fearless,” “Flawless,” “Professional,” or “Jiffy.” Jay also cautions against the word “International,” a name is so frequently used, it gets lost in the shuffle. It takes up six full columns in one Business White Pages alone! Some marketing research done many years ago turned up the fact that people were unusually attracted to the word “Apple” in a business name. After that survey, there was a rash of new businesses with the word “Apple” in the name. These ranged from “Apple One Employment Agency” to “The Apple Farm” restaurant, “Apple School” and, most famous of all, “Apple Computers.” In New York I wouldn’t be sur-
prised to see a shop called “Big Apple Auto Body,” but elsewhere it may be wiser to come up with a different approach. After all is said and done, if a shop’s name is “Superior Auto Body” and the work isn’t “superior,” or even competent, no amount of namechanging is going to compensate for that liability. And if a shop’s name is “Mediocrity Plus” but the work is excellent, the name will be only a small liability. A good name or slogan is an essential part of a good “First impressions marketing strategy,” but once a prospective customer is in your shop and has experienced your fine quality of work, it will no longer matter what you call your shop. When you’ve chosen well and communicated it well, your “trademark image” will be indelibly branded on the minds of both customers and prospective customers and will quietly contribute to your continuing prosperity.
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National Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
NABC’s Recent Meetings Focus on Building Positive Image for Collision Industry On Wednesday, April 30 and Thursday, May 1, the National Auto Body Council (NABC) held several meetings at I-CAR’s Corporate Offices in Hoffman Estates, IL. Their Strategy Session was held at 8AM on Wednesday, and on Thursday, their 8AM Committee Meeting preceded their 10AM Board Meeting. This series of meetings was scheduled as part of the NABC’s ongoing efforts to build on their three-year strategic plan to continually enhance initiatives that present a positive image of the collision repair industry in local communities. Nick Notte, NABC Board President, explains “as an organization, we continually review and consider ways we can reach more collision repairers who could benefit from the community initiatives we have developed. One of our goals is to partner and develop a synergy with other industry groups which collectively benefits all of us in the collision industry.”
As such, key topics at these meetings included finding ways to increase collaboration with other industry organizations and to reach a broader audience of collision repair professionals through the use of targeted industry segmentation data. NABC’s efforts to collaborate with other industry organizations can be seen in the upcoming Collision Industry Breakfast which will be held at the Skills USA competition in Kansas City in June; the breakfast is being jointly sponsored by the NABC, the Collision Repair Education Foundation (CREF) and ICAR. In regards to their second effort discussed at the meetings, the NABC hopes to utilize industry segmentation data to ensure the organization is reaching the broadest possible audience of collision repairers with a focus on all classes of facilities, including everything from small independent shops to larger multi-shop operations.
sion industry.”
The NABC has also engaged in a concerted effort to develop ways by which to further define and enhance the value propositions provided to their members. Notte notes, “since January, we have had a record number of new members join the NABC as well as many who have renewed their commitment.” Recycled Rides also continues to be one of the NABC’s main initiatives, and they plan to hold presentations about this and other core efforts at upcoming industry events, including June’s Skills USA as well as in July when they attend NACE in Detroit. Notte says, “NABC’s signature initiative, Recycled Rides, has gained significant traction in communities nationwide, and we are enthusiastic about our goal to donate 300 vehicles this year. We are energized and want to capitalize on this positive, collaborative momentum in our mission to promote a positive image of our colli-
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AudaExplore Launches Cloud-Based Fully Scalable Enterprise Body Shop Management Solution AudaExplore(TM), a leading datadriven solution provider to insurance carriers, repairers, dealerships and fleet owners, today announced the launch of MSO Pro(TM), a cloudbased enterprise body shop management (BMS) solution that delivers unmatched capability to manage multiple repair locations and business functions through one experience. Featuring enterprise-level functionality with a dashboard-driven design, MSO Pro is based upon proven technology, which has already processed tens of thousands of repair orders, and millions of dollars in collision repair revenue. The solution is an open architecture design that integrates with estimating platforms from AudaExplore or other technology providers to deliver unique customer moments and increase repairer productivity through the following: ● Predictability: Repairers can make better, more informed decisions that impact customer satisfaction and profitability outcomes through customer satisfaction reporting, predictive production load scheduling and standardizing process across multiple repair locations.
● Scalability: No matter the size or number of locations, from a single shop looking to grow into an MSO to organizations opening their 100th location, the platform combines robust performance analytics and reporting with applications for all business functions including: HR, Sales, Customer Relationship Management and Operations. ● Efficiency: Reducing complex IT integration across business functions and locations with its stable cloud-based accessibility via single sign-on, self-service management of administrator permissions and thorough user adoption training and support. “We’re excited to bring to market a proven and comprehensive enterprise solution--the first of its kind designed for MSOs,” said Gordon Henderson, VP of Collision Repair Solutions, AudaExplore. “MSO Pro breaks new ground in collision repair operations, filling a void in which many MSOs have chosen to either build their own homegrown systems, or deal with the limitations of singleshop or low-volume solutions that require ongoing add-ons to support their multi-shop businesses.”
Auto Damage Experts Will Perform Inspection and Verification for Assured Performance Network’s Certified Repair Shops
Assured Performance and Auto Damage Experts (ADE) announced at the latest Collision Industry Conference (CIC) that ADE has been chosen to perform the inspection and verification of Assured Performance Certified repair facilities across the country. The Assured Performance certification program provides a thirdparty assessment of a shop’s ability to properly repair today’s complex vehicles back to the manufacturer’s specifications by having the proper tools, equipment, training, and facility. Assured Performance and ADE will work together to deliver an accurate and efficient process to assess the participating shops’ capabilities, providing the consumer with an accurate and credible national network of competent and reliable shops to choose from in the event of a collision. ADE has been long known for its superior vehicle appraisal and valuation services, but ADE also provides a suite of services including, but not limited to: ● Detailed Collision Forensics ● On-Site and Remote Pre-Repair Inspections, ensuring the accuracy of an estimate ● In-Process Repair Monitoring en-
suring the proper processes and materials ● Post-Repair Inspections and Verifications, providing confirmation of an accurate repair ● Training and Assistance in Damage Analysis, equipping shops and adjustors with the most up-to-date information on repair specifications and techniques. ● Assessment of Required Repairs and the manufacturer’s recommended processes and materials ● Coaching/Consulting for day-to-day business operations “Assured Performance has developed a first-class program, which offers significant value and opportunities to its qualified members,” said Barrett Smith, ADE’s Founder and President. “We’re excited and proud to work with Assured Performance in helping quality repairers take advantage of the many benefits of the Certification program, including recognitions from numerous OEMs.” For more information on Assured Performance visit www.assuredperformance.net. For more information on Auto Damage Experts, visit www.AutoDamageExperts.com or e-mail: info@AutoDamageExperts.com.
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BASF Recognizes 5 Shops as Shops of the Year
BASF Automotive Refinish recently recognized five collision repair shops as 2013 Performance Group Shops of the Year at its VisionPLUS Business Solutions Performance Group Conference in Clearwater, FL. Collision repair shops that utilize BASF’s VisionPLUS Business Solutions, and participate in the program’s Performance Group meetings, were eligible for the award. The 2013 winning shops are: ● Auto Body Specialties, Springfield, OR, Byron Davis, Owner. ● Crystal Lake Automotive, Lakeville, MN, Jim Siegfried and Karl Drotning, Owners. ● Frank’s Autobody Collision Solutions Network, Vernon, British Columbia, Canada, Matt Brunelle, Jesse Brunelle, Dave Brunelle and Rene Brunelle, Owners. ● LaMettry’s Collision, Richfield, MN, Joanne LaMettry, Owner. ● Center Square Motors, Blue Bell, PA, Chuck Dietch, Owner. The five winners were selected based on criteria including sales improvement; overall gross profit improvement; Vision PLUS Performance Group meeting attendance; and meeting participation and contributions.
Automotive Aftermarket is Expected to Grow 3.4% PY
The U.S. automotive aftermarket is expected to grow on a compound annual growth rate (CAGR) of 3.4 percent until 2017, according to the “2014 Joint Channel Forecast Model” produced by the Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association. The model predicts that the total aftermarket sales will grow from $238.4 billion in 2013 to $273.4 billion in 2017, an increase of $35 billion over four years. “The forecast model demonstrates that despite strong new vehicle sales, historic high gas prices and a flattening of miles driven, our industry is poised for steady growth,” said Kathleen Schmatz, Auto Care Association president and CEO. “Why? The average age of vehicles is 11.4 years, the oldest ever, and the age mix of vehicles continues to favor older vehicles, creating a robust sweet spot for service and repair.” Said Bill Long, AASA president and COO, “The forecast model anticipates that growth in population, employment and income will lead to an increase in miles driven and the number of vehicles on the road resulting in long-term aftermarket growth.”
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Auto Body Parts Receive Consumer Discount at Auto Pros USA Parts Retail Website Auto body parts are now under new terms of sale at the Auto Pros USA website. All import and domestic parts shippable are receiving new sticker prices for purchasers. Discounts for select types of auto parts can be hard for consumers to locate due to the increase of freight costs for automobile parts shipments. The Auto Pros USA company is now providing a discount for all used auto body parts available for sale at http://autoprosusa.com. The entire inventory of American and imported models of parts that are available for public sale this year has been lowered in retail price. New contracts with agencies offering better prices has helped to configure the current discounts that are found when shopping on the company homepage in 2014. “The vehicle body parts that are offered are in preowned and in aftermarket condition to provide easy selection options for parts purchasers,” an Auto Pros source said. The automobile replacement parts for sale that are marketed on the Auto Pros website to consumers now feature a new phase of warranty coverage. The extension of warranty periods now included for most parts
sales is already calculated in the quoted prices. “American and foreign automaker brands can be found using our search location tool on our homepage to discover all components discounts in place,” confirmed the source. The Auto Pros USA company website now provides consumers with the updated toll-free phone line used to support customers not shopping through the homepage this year. The number at 1-888-230-1731 is now in place for consumers to use for locating company supplied parts. The AutoProsUSA.com company provides discounts for vehicle parts and accessories that can be purchased through its Internet portal. This company has launched a database available to consumers with hundreds of suppliers currently quoting prices before purchase. The AutoProsUSA.com company has a staff of experts contributing to the customer support now available daily. The automotive partners that are found through the company website change periodically as different distributors are included in the North American network.
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 39
Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
June Retrospective: ASA Position, CAPA, CIC with John Yoswick
20 years ago in the collision repair industry (June 1994) The association representatives at the (Society of Collision Repair Specialists’ Leadership Conference) meeting were in unanimous agreement on one issue: insurer involvement in parts purchasing. A resolution, passed unanimously, recognized the right of insurers to pursue programs they view as cost-saving, but called for the insurance industry to consider repair industry concerts when developing any such program. The resolution listed some of the industry’s concerns regarding insurer involvement in the ordering or purchasing of parts, specifically: • that insurers will use such program to force or intimidate a shop to use parts suppliers with which the shop does not want to do business; • that the programs would substantially reduce shop profits; • that inefficiencies could result
from delays caused by such problems as inaccurate parts numbers used in the electronic process; • that return of parts might be more complicated (because of the distance of the participating supplier, for example); and, • that the quality of service provided by parts suppliers may suffer if the choice of suppliers is limited by such a program. —as reported in Collision Expert
15 years ago in the collision repair industry (June 1999) How much more money can the insurance industry squeeze from collision repairers? Try $2 billion to $4 billion. That’s the figure presented in an article called “Achieving World-Class Claims Performance Using Innovative Supply Chain Management” in McKinsey’s Property-Casualty Insurance Annual. How could the insurance industry realize this savings? By creating
super direct repair programs. “In general,” the report said, “channeling more repair volume to fewer network participants leads to better prices and other concessions.”
Solera’s Tony Aquila, speaking at an international collision repair conference in 2009, said businesses should focus on ‘value’ rather than price, “because cheap sucks.”
David Friedman, one of the authors of the report, amplified the point. “Let’s say State Farm says to their DRP providers, ‘We think you’re the best of the best and we’ve got a new higher-grade program where we’ll
channel even more work to you and we’ll have less inspection.” —As reported in The Golden Eagle. By mid-2000, State Farm was piloting a “Select Service” program with Sterling Collision shops (prior to that chain being owned by Allstate) in several markets; the program eventually replaced the insurer’s “Service First” program, significantly reducing the number of participating shops. 10 years ago in the collision repair industry (June 2004) Tom McGee would like everyone in the collision industry to ask themselves two questions: What led you to get into this industry, and did you ever expect when you started out to be doing what you’re doing now? McGee, the CEO of I-CAR, posed those questions to about 60 people attending an I-CAR “industry forum” in Chicago as a way to intro-
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duce his concept for some websites to help attract more young people into the industry. “Nobody ever explains the career opportunities,” said McGee, who said he’s now the head of an international training organization but started out in the autobody “hobby class” in his high school. “I use the example of touring the DuPoint lab and looking at people who used to be technicians now working in the chemistry area in product analysis. Guys who worked in the stall next to me at my first job out of college now work for GM and DaimlerChrysler. Did I expect them to go there or me to go here? No. But we don’t show parents what these opportunities are to allow them to understand that kids can make a good career and living in this industry.” McGee, drawing on his own experience as the father of three kids, ages 7 to 12, suggested that I-CAR develop age-based websites that would include such interactive activities as racing and other games, drag-and-drop customizing of vehicles, trivia and printable coloring books that would give kids reasons to visit the sites…The sites would let kids tinker with cars “virtually,” and also help
them see that collision repair skills can lead to rewarding careers not only within shops, but also with paint companies, information providers and insurers. —As reported in Autobody News. I-CAR launched two such websites in 2005. CollisionCareers.org is still live, though it is fairly static and offers little in the way of career path “stories” as it did in the early days. CollisionKids.org is no longer an active site. McGee left I-CAR in 2008 and is now with the Automotive Training Institute.
5 years ago in the collision repair industry (June 2009) Tony Aquila, CEO of Solera, Inc. (the parent company of AudaExplore) told the 250 IBIS attendees (shops, insurers and vendors from about two dozen countries) that businesses moving forward can take one of two roads. “I think you can just focus on ‘faster, better, cheaper,’ but to me, that’s a dead-end,” he said. “It really doesn’t take you anywhere, because eventually, you can’t make it that much cheaper, and you start to erode your profitability, then you start to lose your enthusiasm and vision, and everything kind of unravels. Or you can focus on what we be-
lieve, which is ‘faster, better, more valuable.’ Focus on high-value things that allow you the opportunity to innovate. Because then price is not the issue. It’s about the value you are delivering. We make no bones about it: When we do something, we want to get paid for it because we’re doing something highvalue.” Aquila was asked how his company’s shop customers can use that concept when they feel continually squeezed by insurers. “If the customer is saying they want cheaper, then I would argue to my people that we’re not doing a good enough job providing more value,” Aquila said. “When you focus on just price, the value curve is out of the equation. That means innovation is not happening. You’re not giving them more services. When customers say to me, ‘We need it cheaper,’ then I immediately think: What do I have to do to add more value so they stop talking about cheap. Because cheap sucks. It’s not good for any of us. What we need to concentrate on is how do we get the waste out of the process.” —as reported in CRASH Network (www.CrashNetwork.com), June 29, 2009.
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I-CAR Enhances Website, Other Improvements Coming
I-CAR® reinforces their ongoing commitment to providing improved services to industry professionals by launching the first of many enhancements to the I-CAR website. These first enhancements are centered around the user registration and tracking portal, myI-CAR.com, with improvements that include more user-friendly, streamlined registration and login pages, along with redesigned, personalized landing pages for faster navigation and ease of class scheduling. Users will see an immediate difference during the login process and find navigation easier as soon as they enter the site. The new landing pages have graphically-focused visual navigation for easy identification of quick links to frequently utilized resources and information. Some of the new highlights include immediate visibility to Gold Class and Platinum recognition status, expiration dates and reports that provide specific details on training required by students and businesses in order to achieve or maintain their Platinum or Gold Class status. Visit www.i-car.com or contact Customer Care at 800-ICAR-USA.
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NABC Appoints Dan Young to Board of Directors
The National Auto Body Council (NABC) appointed Dan Young, CARSTAR senior vice president of insurance reltions, to its Board of Directors. Young will complete a twoyear term vacated by Mark Lovell of LKQ Corporation because of increased business commitments. As part of his responsibilities on the NABC Board of Directors, Young will also serve as chair of the NABC Distracted Driving Initiative, an intracollision industry effort to educate young drivers on the dangers of inattentive and distracted driving. “We are delighted to welcome Dan to our Dan Young Board of Directors,” said Chuck Sulkala, NABC executive director. “Dan’s considerable industry experience from both the collision repair as well as insurance perspectives will be invaluable in helping NABC enhance community service programs that our mem-
bership can use to make a positive impact in their local communities.” Sulkala also thanked Mark Lovell for his years of service to the NABC. “We appreciate the significant investment of personal time that Mark has dedicated to NABC as a member of the board and especially for his efforts to pioneer, develop, and chair the Distracted Driving Initiative,” said Sulkala. ”I have been a long-time supporter of NABC and its initiatives to give back and help those in need,” said Young. “I am honored to have an opportunity to work with my colleagues on the Board of Directors who are all committed to NABC’s mission to identify and implement programs that promote a positive image of our collision industry.”
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SCRS Examines Repairer Ability to Control Data
Many repairers are unaware of the breadth of data being extracted from their servers, where it is being extracted from, what settings they could employ to better control the flow of information, or even how that information may be used beyond its intended purpose. For years, the Society of Collision Repair Specialists (SCRS) has alerted its members about the potential risk and liability associated with inadequate control over estimate data and business information. For example, SCRS was notified of growing concerns relative to the collection of data through participation in the PartsTrader parts procurement program. As the program rolled out across the nation, more questions began to arise when end-users noticed key identifying information from nonState Farm estimate files populating their PartsTrader dashboard. The repairer concern surrounds the amount of non-voluntary information being provided through the data collection process, which could offer valuable information surrounding market volume and shop volume, raising further concerns over the potential of violating agreements with non-involved carriers by sharing information with an unrelated third-party. SCRS researched the issue with PartsTrader, and each of the estimating system providers to identify the means and extent in which the data is
being accessed and collected, and inquiring if repair facility end-users have options to restrict non-required data from being collected, accessed, or shared. As a result of that research, SCRS issued an article outlining the resulting responses from each of the technology organizations. The article concludes that: Technology has increased the ability to communicate information amongst businesses; however, the increase of applications that indiscriminately extract data in the background for unknown or unintended purposes is a concern for repairers who have obligations to protect data generated by their business. There are advancements being made, or already in place, from some estimating system providers that allow collision repair facilities to maintain better control over the data files being exported from the estimating systems to other data collection sources. The solutions and options for each estimating system vary, so it is important to compare capabilities of the software programs relative to features that allow greater control over unwanted data transfer, and to make any necessary profile changes in line with individual business practices. Read the full article at: http://scrs.com/data/uploads//2014april-scrs-examines-repairer-abilityto-control-data-flow.pdf.
42 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
MCR Safety Donates 26,000+ Pairs of Safety Eyeware
MCR Safety donated over 26,000 pairs of safety glasses and goggles worth nearly $50K to the Collision Repair Education Foundation (CREF). They will be distributed to collision school programs across the country for fall 2014. “We protect people and are proud to contribute our safety eyewear to help support CREF efforts...We hope our contributions will foster safety awareness throughout their careers,” stated Glen Herald, MCR Safety COO. CREF director of development Brandon Eckenrode noted, “On behalf of the thousands of collision students that this donation will assist and help keep them safe within their collision school programs, I would like to thank MCR Safety for their continued support. This in-kind donation will be one to remember, and it was awe-inspiring to have a semi-truck deliver 15 pallets of the donated glasses and goggles. As collision school instructors continue to face shrinking program budgets, this type of donation helps free up additional funds that can now be used elsewhere within their collision program.”
ETI to Hold Meeting with NACE CARS in Detroit
Another automotive industry organization will be joining Industry Week and the NACE/CARS 2014 Conference & Expo in Detroit MI. The Equipment & Tool Institute (ETI) will hold their board meeting Tuesday, July 29, 2014, at the Westin Book Cadillac in Detroit,. Dan Risley, Automotive Service Association (ASA) president and executive director, stated “We are thrilled to have ETI join us in Detroit this year. This is a very important and respected organization, and their support is significant to Industry Week. The overriding purpose of the event is to bring the industry together, and ETI’s involvement is another example of collaboration.” “ETI is pleased to be holding our summer Board of Directors Meeting in Detroit in conjunction with Industry Week,” said Jessie Korosec, ETI meeting and event manager. “The Westin is an excellent venue and we are looking forward to a successful meeting.” Visit www.etools.org and www.naceexpo.com to learn more.
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BMW Joint Venture to Triple Carbon Fiber Plant Capacity
BMW Group’s joint venture with SGL Group will spend $200 million to triple the capacity of its carbon fiber products plant in Moses Lake, WA. The factory will become the world’s largest producer of carbon fiber, with an annual output of 9,000 tons by 2015 when the expansion is completed. The plant provides carbon fiber reinforced plastics for BMW’s family of i electric and plugin hybrid cars—the i3 electric compact car and the i8 plug-in hybrid sports car. The i3 has just been released in the US and the i8 is to launch in August. The carbon fiber has been used to produce 5,000 i3 cars at BMW’s factory in Leipzig, Germany, which has a daily output of 100 vehicles. With the expansion, BMW said it will be able to use the carbon fiber for other models “at competitive costs and in large quantities.” The redesigned 7-series flagship sedan due in two years is expected to make extensive use of carbon fiber. The joint venture, SGL Automotive Carbon Fibers, is 49 percent owned by BMW. The partners have spent $100 million on the plant, which has 80 employees. The expansion will create 120 additional jobs.
US Government Says It Lost $11.2 billion on GM bailout
The U.S. government lost $11.2 billion on its bailout of General Motors, more than the $10.3 billion Treasury estimated when it sold its remaining GM shares in December. The $11.2 billion loss includes a write-off in March of the government’s remaining $826 million investment in "old" GM. The U.S. government spent about $50 billion to bail out GM. During the company’s 2009 bankruptcy, the government’s investment was converted to a 61% equity stake in the automaker, plus preferred shares and a loan. The US bailout of GM and Chrysler saved 1.5 million jobs in the United States, according to the Center for Automotive Research in Ann Arbor, MI. GM just posted its 17th consecutive profitable quarter. Earnings, however, were hurt by a $1.3 billion charge for the costs of various recalls, including for faulty ignition switches on 2.6 million cars. GM is under investigation by the Justice Department, U.S. auto safety regulators and Congress over its failure to detect the faulty ignition switch for over a decade. The U.S. Securities and Exchange Commission is also investigating GM.
OSHA Cracking Down on Isocyanate Exposure
A representative of GMG Envirosafe warned attendees of the Collision Industry Conference held April 9–10 that OSHA is cracking down on body shops to ensure workers are protected from isocyanate exposure. Brandon Thomas, chief operations officer of GMG, a company that offers OSHA, EPA and DOT compliance solutions, said a study done by OSHA’s counterpart in Britain found that painters in a body shop environment have 80 times the risk of occupational asthma from isocyanates than industrial workers. It’s precisely for that reason, Thomas said, that OSHA is targeting the collision industry more aggressively than others. According to Thomas, OSHA has fined body shops $1.6 million over the last three years. OSHA’s enforcement division has increased inspections 25 percent over the last four years because they have a bigger budget, and there is an average of 4.33 citations per inspection. OSHA’s goal, Thomas said, is to eliminate isocyanate exposure altogether in two ways: engineering controls (spraybooth, mixing rooms, ventilation, gun washers, etc.) and administrative controls (PPE training and processes).
CAPA Reaches 15 Year Milestone for Vehicle Test Fits
The Certified Automotive Parts Association (CAPA) incorporated its Vehicle Test Fit (VTF) program in 1999 and since then, CAPA has performed more than 10,000 VTFs to ensure that the gap, flush and fit of CAPA parts rival those of OE parts. Since then, there has been a dramatic increase in the quality of the aftermarket parts submitted for testing under CAPA’s rigorous certification standards. CAPA says its program was so successful that after it was initiated, the Collision Industry Conference (CIC) performed blind test fits to compare CAPA Certified parts to OE service parts. CIC participants selected the CAPA Certified part five out of eight times. “While today CAPA’s unique vehicle test fit process has become the industry-accepted standard for test fitting aftermarket parts, it was entirely innovative when we introduced it,” said Debbie Klouser, CAPA’s director of operations. “Considering all of CAPA’s extensive certification requirements, the VTF has played the single most critical role in today’s acceptance of CAPA Certified parts as the best way to contain repair costs without compromising quality.”
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South Carolina Shop Files Suit Against State Farm Citing Breaches of Contract and Defamation The owners of Coastal Collision Collision Works and other Charleston Works, David and Susan Monta- body shops to repair automobiles on naro, filed suit on March 6 against the basis of the State Farm estimate of State Farm in the SC Court of Com- damage instead of performing an inmon Pleas for defamation, unfair dependent evaluation of damage. trade practices, breach of contract ● Attempting to persuade Coastal with their insureds and breach of Collision Works and other Charleston agreement with Coastal Collision. body shops to not use new parts but to The shop is located at 2543 Savannah substitute parts of an inferior quality; Hwy, Charleston, SC, 29414. Becky to repair instead of replace parts reSnelgrove and Steve Fields are quiring replacement; and to ignore named in the suit as State Farm rep- damages that might not be recognizawww.autobodynews.com resentatives. ble by the customer. CHECK IT OUT! Coastal Collision Works accuses ● Arbitrarily refusing to pay reaState Farm of engaging in a course of sonable costs associated with needed action to artificially depress the price repairs. for the repair of damaged automobiles ● Refusing to pay the fair market in the Charleston, SC, area. In addi- price of parts, insisting that any body tion it accuses State Farm of: shop doing State Farm repairs order ● Attempting to persuade Coastal from aTo specific parts supplier and then advertise Collision Works and other Charleston call refusing to reimburse the at: body shops Advertising Sales body shops to agree to repair automo- for the extra time involved in ordering 800-699-8251 biles for an amount less than they orparts from the specified parts supplier. e-mail: dinarily charge in exchange for ● Refusing to pay for certain reprompt adjustment of losses; for re- advertising@autobodynews.com pairs and operations necessary in the ferral of business; and for being listed www.autobodynews.com repair of damaged vehicles. by State Farm as a “preferred” shop. In addition, the shop says State ● Attempting to persuade Coastal Farm falsely accused the owners of
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Southeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Automotive Aftermarket Association Southeast Finalizes Conference Plans for 2014
The Automotive Aftermarket AssociaFollowing Morgan, the first Willis Group. Bowling has been in- green fees, lunch, refreshments, and a tion Southeast Inc. (AAAS) Annual presentation of the morning will be volved in the sphere of employee ben- golf kit. Conference and Trade 2014 will Changes and Trends efits since 1981 and will have plenty The AAAS Annual Conference withShow Chasidy Rae“Aftermarket Sisk be held June 5–8, 2014, at the SandesImpacting You and Your Business,” of useful insights on the highly-antic- and Trade Show 2014 will conclude tin Village of Baytowne Wharf in Desgiven by keynote speaker John Wash- ipated topic of Obamacare. on Saturday night with a dinner tin, FL. In addition to providing useful bish, president and CEO of AfterThe 2014 Bell/Hines Memorial party and bay cruise aboard Suneducational information, the event market Auto Parts Alliance. Over the Scholarship Golf Tournament will Quest Cruises’ Solaris, included in ve us opinion matters the willyour offer an excellenton forum for net-affecting course of hisindustry. four-decade-long career Want the conference cost. With three start at PM at thetoBaytowne to12:30 Contribute this Southwest Edition? working opportunities and plenty of in the aftermarket industry, Washbish Raven Golf Course. Proceeds from decks of indoor and outdoor attracwith Chasidy Raehas Sisk adventure through a fishing expediserved on several councils and the tournament benefit the AAAS Ed- tions, attendees will enjoy a threetion, golf tournament, and dinner association boards in addition to re- ucational Foundation Scholarship Pro- hour dinner cruise with three full publisher@autobodynews.com cruise. publisher@autobodynews.com ceiving multiple awards that recog- gram (AAASEF). The four-person courses, a premium bar, and house The cost of the conference is $135 nize his leadership skills. Morgan scramble is an 18-hole tournament entertainment. per person with additional fees for the feels “very fortunate to have John with competitions for longest drive, golf tournament and deep sea fishing joining us for our annual conference. straightest drive, closest to the pin, Promote your business with Promote your business with withbelow. Chasidy RaeWe Sisk expedition as detailed To regislook forward to his visit, and him and hole-in-one prizes on par-3 holds an exclusive article featuring an aexclusive article ter, return the registration form (availsharing his views and insights on the with possible prize of upfeaturing to $10,000, your products or services. your products or services. able at www.aaas.us/events.aspx) and industry and the economy.” sponsored by Federated Insurance. To advertise The source for Annual timelyConference payment to AAAS AAAS has also scheduled three The golf tournament was established call Joe Momber at: and Trade Show, 11245 Chantilly additional gentlemen to follow Wash- in 2008 to honor Dick Bell and Al information that every 800-699-8251 Parkway Court,needs! Montgomery, AL bish, and they “are honored to wel- Hines for their tireless contributions to body shop with Chasidy Raecome Sisk an e-mail: 36117. impressive list of guest the aftermarket industry. Participants CALL: Joe Momber for details! Call for details! jmomber@autobodynews.com For questions or additional inforspeakers who will deliver very timely will be charged $125 per golfer with CALL 800-699-8251 mation, contact Jennifer Johnson at educational and informative presenta- $25 being a tax-deductible donation to www.autobodynews.com 800-699-8251 800-699-8251 Start YourorFREE 800-239-7779 jennifer@aaas.us. tions on some of the most important AAASEF. The entry fee also covers Mail Subscription. topics facing the aftermarket industry today,” Morgan states. Thursday, June 5 The conference will begin on ThursWashbish’s presentation will be with Attanasiofollowed day, June 5, 2014, withEd a Welcome by Scott Luckett, of the Register Your CEO Email for Our Register Your Email for O Reception from 6:00–7:30 PM. Automotive Aftermarket Industry Association (AAIA), who will discuss Free Twice Monthly Ne “The Connected Car: The Impact of Friday, June 6 All The Genuine Lexus Parts Telematics in the Auto Care comNetworking opportunities will resume Vehicle at www.autobodynews.com at www.autobodynews.co You Need For That Trouble at 5:15 AM Friday, June 6, 2014, with Industry.” Luckett’s efforts in the afFree Repair, And Lexus Finish! deep sea fishing aboard the Miss Hazel with Ed Attanasiotermarket industry have yielded These Dealers Below Are Genuine Charter Boat located behind the Fishrecognition in the form of the 2001 Lexus Parts Distributors: erman’s Wharf Restaurant on Highway Northwood University Automotive 98. With a huge 20-by-20-foot fishing Aftermarket Education Award and the deck, the boat can accommodate up to 2002 University of the Aftermarket 20 people, who will be provided with Founders Service Award. all necessary equipment and lunch, to Following a short break, “AfterPENNSYLVANIA Attanasio enjoy this anglingwith trip at Ed a cost of only market Access to OEM Vehicle Repair $100 per angler. At 2:00 PM, the Information” will be presented by Thompson Lexus AAAS Board of Directors meeting will Skip Potter, executive director of the be held at the Baytowne Conference National Automotive Service Task Doylestown Center, and the evening will conclude Force (NASTF). With over 45 years with the AAAS Chairman’s Reception of experience in the automotive inat the Baytowne Marina. dustry, Potter has worked for multiple (215) 230-3397 Fax with Thomas Franklin trade associations and been recogwww.1800THOMPSON.com nized with several awards, including Saturday, June 7 After a continental breakfast and being named an “Aftermarket Influtabletop show at 7:30 AM, the educa- ence” by Babcox Publications in tional portion of the conference will 1999. begin on Saturday, June 7, 2014, at The concluding seminar, “Oba8:30 AM with AAAS chairman Mike macare: Its Impact on You, Your Emwith Ed Attanasio Morgan welcoming attendees and ployees, and Your Business,” will be sharing the “State of the Association led by Wayne Bowling, senior vice Reports.” president of employee benefits for the
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 47
Southeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Mike Anderson Visits WMABA to Discuss Estimating Practices, Parts Procurement and More! On Thursday, May 1, the Washington cycle time, safety is an even more Metropolitan Auto Body Association pressing concern for collision repairbecause the consumer is trusting (WMABA) hosted industry speaker with Chasidy Raeers Sisk their repair facility to look out for their Mike Anderson for a full-day educational seminar on “The Encyclopedia best interests and ensure that their car of Estimating Practices” at the LKQ is restored to its pre-loss condition Training Center in Linthicum Heights, properly. “A lot of people aren’t aware MD. In addition to providing a State of of what it takes to fix a car properly. I don’t mean that disrespectfully; it’s the Industry update, Anderson’s semiwith Raejust Sisk that the industry is changing so nar also touched on parts Chasidy procurement, the future of DRPs, cycle time and fast that it takes a lot to keep up on many other topics. Jordan Hendler, things today. You really have to spend time on training,” Anderson emphaExecutive Director of WMABA, describes the seminar: “With his usual sizes. In discussing the impact that a boisterous and ‘take-me-as-I-come-orwithMike Chasidy Raeproper Sisk repair estimate has on cycle leave-me’ personality, gave attendees more than they bargained for. time, Anderson explained, “when you Safety is his number one priority, and pass on an estimate that’s really inhe wants every pair of ears to hear how complete and another technician finds more damage, you’re just creating invehicle technology is changing everything we know about collision repair efficiency in your process… Speed is with Chasidy Raethe Sisk name of the game. It’s not just processes.” Through his passionate approach, about writing an accurate blueprint to fix the car right...Even if you’re not a Anderson’s goal was to stress that, despite the importance of focusing on DRP, you have to get [better] at turn-
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ing cars quicker just because there is less profit on a job and you have to turn more cars just to get to the breakeven point quicker. We really tried to focus [in the class] on just how the estimate is really the basis for getting the right part the first time and the basis for communicating properly with a customer.” Anderson discussed everything from receiving proper reimbursement from insurers to lean processes, reducing stress in the shop environment and the demands that new technology places on repairers. “We really have to understand that with all this new technology with accident avoidance systems, lane departure systems and autonomous braking that you can’t just go through [the vehicle] like in the old days and say, ‘I’m just going to check out all the lights and door locks.’” You have to have a scan tool to actually take and check a lot of these things during an output test and
[make] sure they’re working properly.” Rather than suggesting quick fixes, Anderson provides tools and methods for learning, focusing on the long-term solution of studentinitiated learning and adaptation. As part of this initiative, Anderson provided attendees with a list of websites where they can acquire this type of necessary knowledge: www.DEGweb.org, www.CollisionAdvice.com, www.EstimateScrubber.com, www.PartsVoice.com, and www.Estify.com. Anderson was pleased with participants’ responses to his seminar: “Everybody was interactive and had lots of great questions. One of things I found really refreshing was there were a lot of young people in the class, particularly young females. It’s really nice to see more and more women represented in the industry. It’s always nice to see
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young people. With what we do with regards to computers and technology, young people are more open to [this industry].” As a recurring speaker at WMABA meetings, Anderson praises the association and explains why he is always willing to visit the East Coast to teach the association’s members. “I get the privilege of working with a lot of different trade associations across the country, and I don’t think a lot of people realize what they have in Jordan Hendler as executive director. She is truly one of the most passionate people you can ever meet in the industry.”
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SEMA Show Registration Now Open As of May 12, 2014, you can now register to attend the 2014 SEMA Show at www.SEMAShow.com/register. The annual trade show for the automotive accessories market is set for Tuesday– Friday, November 4–7, 2014, in Las Vegas, NV.
You can register as an attendee, exhibitor, and media member: Attendees: Distributors, retailers, installers, and buyers who will be meeting with exhibitors at the SEMA Show should register as an attendee. Applicants may be required to submit proof of employment in the industry. During registration, attendees will be able to sign up for special events and
seminars, including those offered by the Society of Collision & Repair Specialists (SCRS), Tire Industry Association (TIA), and more. Approved attendees who register before the early deadline in October 2014 will receive their badges in the mail. Exhibitors: The exhibitor category is for company personnel working in the booths of exhibiting companies. To secure an exhibitor badge, individuals will need to have the unique password and user id that was provided, via email, to the primary contact at the exhibiting company. The primary contact may register the entire staff at one time quickly and easily. Exhibitor badges are not to be used for non-employees, including contest winners, contractors, and vendors. During registration, exhibitors will also be able to order complimentary tickets to the SEMA Industry Awards Banquet. Tickets to the banquet, which is attended by 3,000 attendees and considered by many to be the industry’s premier cel-
ebration, sell for $50 each. Media members: Editors and journalists covering the SEMA Show can register for complimentary media credentials. Applicants may need to supply proof of media affiliation, such as bylined articles or business cards. All approved media will be able to pick up their credentials onsite in the SEMA Show Media Center, which includes exclusive services and amenities to assist with reporting from the event. During registration, media are able to secure a ticket to the LTAA Media Preview—a brandnew event that will give media exclusive early access to new products on Monday, November 3, 2014, the day before the SEMA Show officially opens. “There are many advantages to registering early for the SEMA Show,” said Peter MacGillivray, SEMA vice president of events and communications. “Early application expedites the registration process, which is the first step to developing a personal plan for the show. Whether you’re an exhibitor, buyer, or media, having a plan in advance of the event is the best way to ensure success.” Complete details about the SEMA Show and registration are available at www.semashow.com.
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 49
NACE | CARS 2014 Agenda Announced and Online Attendee Registration Opens
As of May 6, 2014, both online attendee registration and housing reservations are open for the 32nd annual NACE | CARS 2014 Expo & Conference at http://www.naceexpo.com/Content/Reg ister/3/. Part of Industry Week, the collision and service repair industry’s premier networking event, the NACE | CARS 2014 Conference will be held July 30–August 2, 2014, and the Expo will be held July 31 and August 1, 2014, at the COBO Convention Center in Detroit, MI. Other Industry Week events include many board and association meetings on July 28, 2014; the Collision Industry Conference (CIC) summer meeting on July 29, 2014; and the I-CAR Conference and Gala 35th Anniversary Networking Event on July 30, 2014.
View the Conference Program and Schedule-At-A-Glance at: http://www.naceexpo.com/page.cfm/A ction=Seminar/libID=1/listID=1/t=m/ goSection=5. Expo passes to access the show floor only can be purchased for $35. Individual, 90-minute conference sessions are available for $75 per session or individual three- or four-hour conference sessions are available for $150 per session. A Day Pass is $250, and Saturday Mechanical Sessions are $150. A full-access Super Pass is $315 for members and $365 for non-members. All prices noted reflect early bird pricing, which is in effect through June 14, 2014. I-CAR Add-On Education, the Collision Repair Executive Symposium (CRES)/MSO Symposium,
and Technology and Telematics Forum (TTF) events are available at an additional charge. New for 2014, all registration options include the NACE | CARS Show Floor Receptions in the evening on July 31 and August 1; the Opening General Session the morning of July 31, 2014; and The Assembly - Industry Forum in the afternoon on July 30, 2014. Additional details on these events will be released in the near future. Special discount pricing is available for Automotive Service Association (ASA) members, and discounts are also provided for other industry organization members. All NACE | CARS exhibitors will be offering substantially discounted Expo Passes and 10 percent off any conference purchase (excluding I-CAR Add-
On Education). Attendees are encouraged to contact an exhibitor to redeem this discount. For a list of current exhibitors, visit http://fp37.a2zinc.net/clients/StonefortGroup/NC14/public/eventmap.aspx. In addition, special discounts are available to students and educators focused in the automobile repair industry. Additionally, NACE | CARS participants are encouraged to book hotel reservations early, as the rooms are filling fast. Attendees and exhibitors can review the hotels within the official housing block and reserve their rooms online.
NACE Announces CRES/MSO Symposium Agenda
NACE has announced the schedule is now available for the Collision Repair Executive Symposium (CRES), formerly the MSO Symposium. The MSO Symposium has been an extremely popular, sold-out event during NACE since it premiered in 2011, drawing attendance from the largest multi-shop operators in the collision repair industry. This all-new CRES business event now caters to a broader group of collision repair executives allowing it to be more inclusive of some of the best, as well as the largest, operators in the marketplace. This year’s event includes key changes in content including a focus on management, operations and participation from insurance company executives presenting leading information on industry trends. Designed for collision repair multi-shop operators, as well as operators looking for high-growth strategies, mergers and acquisitions, divesting, and operational excellence, CRES is scheduled for Friday, August 1. The NACE | CARS Expo will take place Thursday and Friday, July 31-Aug. 1, with education beginning Wednesday, July 29, at the Cobo Convention Center in Detroit.
Registration for CRES is $150 before June 14 and $250 following, and is available online at http://www.NACEexpo.com/Content/Register/3/ for qualified shop owners. This “next generation” CRES event provides information for high-growth shop owners and multiple-store operators that is unparalleled. This year’s CRES includes an Expo Pass, as well as a ticket to the Opening General Session and Welcome Party Thursday, July 31, allowing for multiple networking opportunities for shop owners and MSOs throughout the event. “A significant amount of time, effort and planning has been invested in developing the fresh content for this year’s all-new format for CRES as we strive to deliver relevant, high-level content for this important and rapidly growing segment of the collision repair industry,” said Russell Thrall, Collision Week publisher, symposium moderator and co-producer. Dan Risley, ASA president and executive director, and CRES co-producer stated, “Some businesses are preparing for expansion through growth or acqui-
Valspar Joins National Auto Body Council
Valspar Automotive is the 32nd National Auto Body Council (NABC) Diamond Member. “From the time we first visited with NABC representatives at the SEMA Show in 2013, we knew this was an important mission that we need and want to support,” said Peter Willman, Valspar Automotive North America general manager. “Community involvement matters to us, which is why it was an easy decision to join and help further the NABC mission and its programs.”
“We applaud and welcome Valspar’s leadership commitment to the NABC,” said Chuck Sulkala, NABC executive director. “Valspar’s membership at our highest Diamond level represents a strong endorsement of the value and important work by our entire membership as we continue to strengthen and build a positive image of our collision industry.” View all NABC Diamond Members at: nationalautobodycouncil.org/membership/diamond-members.
50 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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sition while others are preparing for merger or divestiture. This symposium will provide information essential in understanding market conditions and preparing for the future, regardless the size of the business.” Sponsorship opportunities for the CRES are selling quickly, with 12 sponsors confirmed to date: ASA, AudaExplore, AutoZone, Axalta Coating
Systems, BASF, Car-O-Liner, Chief Automotive Technologies, CollisionWeek, Enterprise Rent-a-Car, PPG, UniCure and Universal Technical Institute. It is co-produced by ASA, NACE To advertise and Russell Thrall. CRES will be moderated by a call Advertising Sales at: team of experts including Marcy Tieger, 800-699-8251 Roger Wright, Erick Bickett and Russell Thrall. e-mail:
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NSF Certifies 500 Sheet Metal Parts Made by Gordon NSF International has certified 500 different sheet metal hoods and fenders from Gordon Auto Body Parts Co., Ltd. via the NSF Automotive Collision Replacement Parts Certification Program. The NSF certification of 500 unique sheet metal parts includes more than 700 different models from all major auto companies. NSF certified parts now cover more than 20,000 vehicle applications and represent a significant increase in the number of sheet metal certified parts available in the market. This 500 parts certification complements Gordon’s already certified steel bumpers and bumper brackets. To earn certification, Gordon automotive parts were independently reviewed and tested against OE service parts and all hoods and fenders were fitted to vehicles to ensure proper fit. NSF International also regularly audits Gordon’s OE-ready manufacturing facilities and quality systems to ensure that they meet or exceed each of NSF’s stringent requirements. “Achieving this important certification from NSF International is essential as it underscores the quality and integrity of our automotive parts in terms of fit, form and function. We look forward to certifying more auto parts in the near future,” said Richard Wang, Gordon Auto Body Parts Co.
Executive Assistant to President. “This NSF certification occurs in conjunction with the increase in Gordon’s sheet metal parts inventory so we are prepared to offer these NSF certified parts to ensure inventory levels can meet the anticipated growth in demand.” “Earning NSF certification underscores Gordon’s commitment to ensuring that high-quality collision replacement parts are available so body repairers, insurers and distributors can make more quality repairs using NSF certified hoods, fenders, steel bumpers and bumper brackets,” said Bob Frayer, Director of NSF International’s Automotive Collision Certification Programs. In addition to sheet metal components, the NSF Automotive Collision Replacement Parts Certification Program tests and certifies lamps, bumper fascias, reinforcing beams (rebars), step bumpers, plastic components and absorbers. NSF also offers automotive collision parts distributor certification, which requires distributors to have quality management systems in place that address traceability, service and quality issues. This includes having an effective records system, inventory systems to track orders and parts through the supply chain, and an ISO 9001-certified quality management system.
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Car-O-Liner®, a leading global provider of collision repair equipment to the automotive aftermarket, offers WorkShop facility design planning for Car-O-Liner equipment placement as a free value-added service through local authorized Car-O-Liner Distributors. Through this service, shops address challenges posed by limited space or awkward building layouts by designing a concept for how Car-O-Liner equipment will best fit to optimize work flow, thereby providing confidence that their equipment investment will maximize both technician productivity and shop profitability.
After consulting on the objectives of the facility, the Car-O-Liner Distributor will work with shop operators and their architects to plan and visualize the most effective layout
from a top view in 2D. The unique footprint of the building is accurately represented to include structural attributes such as garage bay openings as well as doors, windows, lighting,
and more. Equipment can be rotated and moved, in real time, to determine optimal placement with consideration for vehicle flow restrictions, safety, and other requirements of the space. At any time, the design can be viewed in 3D from any angle with the ability to save and print high-resolution drawings and specifications. In addition to 3D renderings, a detailed report of the Car-O-Liner equipment specifications selected for the layout can be printed to quickly and easily make the design a reality. To learn more about how a WorkShop facility design plan can improve your efficiency, contact your local Car-O-Liner Distributor, visit www.car-o-liner.com, or call toll free (844) 833-9419.
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ABRA Acquires 24 Collision Centers of America Locations
ABRA Auto Body & Glass, a leading national damaged vehicle repair company, announced the purchase of all 24 Collision Centers of America repair centers in Chicago, Illinois, the surrounding communities, and Northwest Indiana. Terms of the deal were not disclosed. “They’re a great company. I know our employees and customers will be in good hands moving forward and will receive the same personalized service and top-quality workmanship they have enjoyed with us over the years.” ABRA is one of the largest and fastest growing multi shop repair operators in the country. Today’s transaction boosts its nationwide portfolio to 218 collision repair centers in 17 states. “ABRA is one of the most iconic brands in the collision repair industry,” said David Mulder Sr., founder and president of Collision Centers of America. “They’re a great company. I know our employees and customers will be in good hands moving forward and will receive the same personalized service and topquality workmanship they have enjoyed with us over the years.”
AMI Taking Applications for $1,000 High-Octane Award
The Automotive Management Institute (AMI) is accepting applications for the $1,000 Arrowhead Specialty Markets "High Octane" Scholarship. The scholarship, which is awarded to an Automotive Service Association (ASA) Mechanical Division member who strives to be, or is presently working in a management capacity. The scholarship will be applied toward the recipient’s expenses to attend the 2014 Congress of Automotive Repair and Service (CARS) in Detroit, July 31–Aug. 2. CARS is sponsored by ASA and offers an educational lineup of AMI seminars, technical training courses and industry sessions, an exposition and the opportunity to network with other automotive service professionals. To be eligible, applicants must work in the mechanical repair industry; must demonstrate an interest in self-improvement through education and training; must own or work for a business that is an ASA member in good standing; and, if the applicant is not the business owner, must be recommended by the owner. To request a scholarship application, call AMI at (800) 272-7467, ext. 101.
Bloomberg Reports Esurance to Take on Advertising Giants
Solera Buys Pittsburgh Glass Works’ Insurance Business
Advance Auto Profit Up 21%, Acquisition Boosts Sales
SCRS Member’s E-Catalog
Allstate Corp., the largest publicly traded home and auto insurer, hired Alan Gellman from Wells Fargo & Co. to oversee marketing at its Esurance unit. Gellman will be chief marketing officer, reporting to Esurance Chief Executive Officer Gary Tolman in San Francisco. He held marketing roles for the past 10 years at Wells Fargo, the auto insurer said. Allstate has ramped up advertising spending to win customers from big spending rivals such as GEICO and Progressive Corp.
Auto parts retailer Advance Auto Parts Inc reported a 21 percent rise in quarterly profit, helped by the acquisition of the biggest operator of the Carquest chain of auto repair shops and car parts stores. Advance Auto completed the acquisition of General Parts International Inc in January, making the company the largest auto parts retailer by sales in the United States. Advance Auto’s net income as reported rose to $147.7 million in the first quarter ended April 19 from $121.8 million a year earlier.
Solera Holdings Inc. says it is buying the insurance and services division of private equity-owned Pittsburgh Glass Works LLC for $280 million, expanding the Texas-based insurance software company’s business to include automobile repair and claims management services. Solera’s acquisition of the insurance division, which is expected to close by the end of June, will be paid for entirely with cash, the company said. Pittsburgh Glass Works is owned by NY-based private equity firm Kohlberg & Co. LLC. The Society of Collision Repair Specialists (SCRS) Member Services E-Catalog was created to help SCRS members do business with other members. If you are a repair facility, share it with your friends and colleagues; if you are with an association, pass it along to your membership. If you are a corporate or company member, share it with your customer base or post to your social media account. View the catalog at: http://scrs.com/index.php?id=ecatalog.
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Ford Dealerships Exceed Enrollment Goals for Collision Repair Training on F-150 According to Ford, 850 Ford dealerFord sold 763,402 F-series trucks ships have enrolled technicians in in 2013. It doesn’t report sales of the training courses to learn how to do F-150 separately from the rest of the F collision repairs on the 2015 alu- series, but Ford production statistics minum F-150 pickup. Ford said the show that 69 percent of all F-series number exceeds its goal of having 750 production was F-150 in 2013. dealerships enrolled in the courses by 2-part course the end of 2014. The I-CAR training course will The training courses will be be divided into two segments. The taught by instructors from I-CAR. first teaches general aluminum repair Jason Bartanen, I-CAR director of techniques, including aluminum weldindustry technical relations, calls it ing and the operation of rivet guns. one of the biggest technical training The second concentrates on particular programs of its kind ever. So far, I- design elements of the 2015 F-150 itCAR has scheduled about 700 classes self. in locations around the country. DealFord has offered to pay the cost ership training begins this month. of one technician per dealership for Training for independent collision the training course, which takes about shops and insurance estimators begins two days and costs about $1,000. in June. Dealerships that want to have more “Because of the magnitude and than one trained technician will pay volume of this vehicle, I think we’re the additional expense to send extra going to see a fantastic response to technicians. this course,” he said. To work on aluminum, Ford Ford’s shift from steel to alu- recommends that dealerships with minum on its biggest-selling vehicle body shops and independent repair is an enormous industrial undertaking shops buy new tools, including speand affects everyone from the factory cialized rivet guns, MIG (metal inert floor to the collision repair shop. Ford gas) welders and specialized vacuum wants to be sure collision repair spe- systems. Ford has estimated dealercialists know what they’re doing the ships can buy the equipment they first time a damaged aluminum www.autobodynews.com need to get started for $30,000 to pickup rolls into a shop. $50,000.
When aluminum is bent or broken, it behaves differently than steel. Aluminum does not have the “metal memory” to resume its original shape, as steel does. Ford strongly recommends collision shops set up separate areas for working on aluminum because of steel-aluminum contamination issues. Galvanic corrosion, similar to rust, can occur when the metals touch each other. Combustion can also occur when the two metals mix. Among the training requirements will be a weld test in which technicians will be asked to perform six welds from two positions. I-CAR welding experts will travel to dealerships and repair shops to be sure that they have acquired the proper aluminum-handling equipment and that it is installed properly, Bartanen said. Independent shops Roughly 20 percent of Ford’s
more than 3,000 dealerships have body shops; the rest outsource the work to other dealerships or to independent collision repair shops. Ford said it has enrolled about 420 independent shops and hopes to enroll 750 by year end. Technicians aren’t the only ones who need a better understanding of the aluminum repair process: Insurance adjusters do, too. Said Bartanen: “This training will be open to the insurance industry so insurance adjusters will know what to do and can write more accurate damage assessments.” I-CAR and Ford experts also will offer lectures and demonstrations on repairing the new F-150 at the International Autobody Congress & Exposition (NACE) July 30-Aug. 2 in Detroit. The 2015 F-150 is scheduled to arrive in dealerships in the fourth quarter.
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