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VOL. 6 ISSUE 3 JUNE 2015

Takata Admits to Fault in Airbag Design, 34 Million Vehicles, Largest Recall in History Ensues

NYSACTA and LIABRA Review Aftermarket Parts Bill During 2015 Lobby Day

U.S. Transportation Secretary Anthony Foxx announced on May 19 that the air bag manufacturer Takata has acknowledged that a defect exists in its air bag inflators, leading to a national recall of nearly 34 million vehicles. The action, which was initially limited to states with high humidity, has increased the recall to more than 16 million defective passenger-side inflators and more than 17 million driverside inflators. “Vehicles are increasingly bought and sold across state lines and may

On April 2015, representatives from the New York State Auto Collision Technicians Association (NYSACTA) and the Long Island Auto Body Repairmen’s Association (LIABRA) traveled to Albany to lobby their state’s assemblymen and senators. These representatives included Ed Kizenberger, Executive Director of both as- Collision repair representatives from NYSACTA review sociations, Ed Kizenberger lobbying materials Jr., Director Paul O’Connell, Directhe collision repair industry met with lobbyist Pam Madeiros and the staff tor Joe Stelmokas and Hank Hancock. At 8AM, they were joined at the from Greenberg Taurig LLC, NYSLegislative Office Building by over 40 ACTA’s Lobby Law Firm. The event began with Madeiros NYSACTA members from all over the state, coming from Syracuse, Utica, distributing the schedule containing See NYSACTA and LIABRA, Page 24 Albany, Westchester, Putnam, Rock-

by Victoria Antonelli, Online Editor

move long distances across the country … it is in the best interest of consumers to expand this recall to all states,” AAA President Marshall Doney said in a company press release. According to a National Highway Traffic Safety Administration (NHTSA) press release, over time, moisture causes changes in the structure of the chemical propellant that ignites when the Takata air bag deploys. The degraded propellant, based on ammonia nitrate — commonly used in fertilizer — ignites too quickly, producing excess pressure that causes See Largest Recall, Page 30

CA’s Midnight Body Shops Come Out Into the Light

land, Rochester, Buffalo, Binghamton, Newburgh, New York City and the five boroughs. These representatives from

Seneca, MO, Body Shop Flattened by EF-1 Tornado, Sustains Most Damage Recorded in MO County The National Weather Service has confirmed an EF-1 tornado touched down in Newton County, MO, the night of May 17 just east of Seneca,

See Midnight Body Shops, Page 50

P.O. BOX 1516, CARLSBAD, CA 92018

Just the other day, I was in a grocery store parking lot in San Francisco one afternoon when a kid approached me. “Hello sir,” he said. “That’s a bad dent on your bumper there. I can fix it for you.” I laughed, but Patrick Dorais, California BAR Chief he didn’t smile in asks body shops return. I realized he and consumers to was serious. “Rereport any shop that is operating illegally, ally, how old are under the table and/ you?” “10,” he or under the radar replied. I was about

to ask him if he was I-CAR trained, but I resisted. I know this industry is having problems finding good, qualified people, but this is ridiculous, I thought. Then, all of a sudden a car drove up and a gentleman (probably 35-40) looked at me and then nodded at the child. I figured out what was going on rather quickly. It was sneaky, but impressive in a way. He’s using his child to get repair work, just like Tatum O’Neal in the classic film Paper Moon. O’Neal won the Oscar for her performance in 1973 and this kid was a pretty good actor himself. At least he was keeping busy,

Change Service Requested

by Ed Attanasio

by Chasidy Rae Sisk

MO, according to Felicia Lawrence reporting for fourstateshomepage .com. The tornado touched down at Highway 43, four miles south of Seneca at 12:51 AM. It tracked northeast until it lifted four miles west of Neosho at 1:01 AM. The tornado uprooted several trees, destroyed multiple outbuilding structures and blew off roofs on a few barns. Peak winds

were estimated to be around 90 mph. Peak width was about 200 yards and total path of the tornado was 10.4 miles. Newton County officials say J & S Auto Services, located at the intersection of Highway CC and Norway Road, sustained some of the most severe damage in the county. It was completely leveled by the tornado. Community members say it stood at this corner for years and they’re shocked to see it completely destroyed. The news team ran into a man who was looking for his friend that owns the auto body shop to try and help him. The owner is believed to be Johnny Reffett of Neosho, MO, and the business location is 7060 Norway Rd in Neosho. “To see Johnny’s business, like I said, to see anybody when you’re good See EF-1 Tornado, Page 50

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

2 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio - Are You Prepared for Google’s Mobilegeddon? . . . . . . . . . . . . . . . . . . . . . . 52 Attanasio - ASCCA/CAA Joint Legislative Day Focuses on Minimum Wage/Taxes on Labor. . 48 Attanasio - resqme™ Vehicle Escape Tool and Related Products Have the Potential to Save Lives . . . . . . . . . . . . . . . . . . . . . . . . . 40 Franklin - Limited Growth? What to do about it!. . 46 Luehr - Mastering Implementation . . . . . . . . . . 26 Yoswick - CIC Panel Discussion on Electronic Parts Procurement Takes Unexpected Turns . . . . . . . 60 Yoswick - Multiple Parts Suppliers, Body Tech Shortage, M2 Closes, Allstate Challenges No. 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 NATIONAL 1919 Pierce-Arrow Wins Best in Show at NC Concours. . . . . . . . . . . . . . . . . . . . . . . . 56 Allstate Joins GEICO in Rate Increase as Margins Fall. . . . . . . . . . . . . . . . . . . . . . . . . 65 ARA Attends 2015 ISRI Annual Convention . . . 70 ASA Board of Directors Installed During Annual Business Meeting. . . . . . . . . . . . . . . 54 ASA-MW Springfield Chapter’s Roundtable Helps Students Prepare for Industry Jobs . . 18 Automotive Art Refinish System Comes to the U.S.. . . . . . . . . . . . . . . . . . . . . . . . . . 38 Axalta Introduces Cromax Mosaic™ Basecoat . . 50 Axalta Launches Online Learning Training Campus . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Barn Finds in TX Estimated at $700,000 to be Auctioned at Indianapolis Motor Speedway June 12 . . . . . . . . . . . . . . . . . . . 64 CA, TX, FL, MI, and OH are the Top Five States for Vehicle Thefts with Keys Left Inside . . . . 64 CA’s Midnight Body Shops Come Out Into the Light . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Car-O-Liner® Names New Technical Director . . . 9 CREF Receives Charity Navigator’s Highest Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Element Fleet Management Automotive Collision Expert Joins Elite Technicians . . . . . . . . . . . 10 EPA Considers Banning or Restricting Degreaser Use . . . . . . . . . . . . . . . . . . . . . . 68 First Responders Emergency Extrication Program in Ellington, CT Lead by Kar Kare CARSTAR. . 6 Ford Issues Safety Recall for Upper I-Shaft Rivet Issue . . . . . . . . . . . . . . . . . . . . . . . . . 68 Ford’s Aluminum F-150 Gets 5-Star Crash Test Rating . . . . . . . . . . . . . . . . . . . . . . . . . 21 GM Reaffirms Commitment to Launching MyPriceLink . . . . . . . . . . . . . . . . . . . . . . . . 43 GM to Invest $1B to Expand and Renovate National Historic Landmark, the Michigan Tech Center . . . . . . . . . . . . . . . . . . . . . . . . . 46 Google’s Self-Driving Cars Have been Involved in 11 Minor Not-at-Fault Accidents in Past Six Years . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 I-CAR® Announces Round of Website Improvements, Including Class Registration Process and New Shopping Cart . . . . . . . . . 42 Judge Orders Body Shop to Pay Owner of Special Needs Van $96K, Other Shops Step Up to the Job. . . . . . . . . . . . . . . . . . . . 70 Lawsuit Filed Against G&C Auto Body Cites Unfair Business Practices, G&C Responds ‘No Merit’ . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Lead Lawyer for MDL Plaintiffs in FL Discusses New Developments, ‘Bellwether’ Proposal (pick up from SE p. 1) . . . . . . . . . . . . . . . . . 22 Longtime I-CAR Executive Jeff Peevy to Lead Automotive Management Institute . . . . . . . . 58 Mike Anderson Says “Choose Your Destiny” at WIN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Mitchell’s Q2 ITR Addresses Increase in Average Collision Repair Severity. . . . . . . . . 56 Nationwide Advocates Automated Mobile Hail Estimating for Faster Hail and Dent Repair . . 49 Nevada Employment Bill SB224 Pending Vote by State Assembly. . . . . . . . . . . . . . . . 31 New Chief Fume Extractor Protects Body Shop Technicians from Weld Fume Particulates . . 58 Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership “Salesman” Exemption; Section 7(i) Exemption Is Still Available . . . . 62 PartsTrader 3.0 Released with Efficiency Features . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 PPG Show Truck Gets a Bold New Look . . . . . 31 Quik Video Technology Looks to Target Body Shops . . . . . . . . . . . . . . . . . . . . . . . . 20 Record Revenue for CARSTAR in First Quarter of 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Seneca, MO, Body Shop Flattened by EF-1 Tornado, Sustains Most Damage Recorded in MO County. . . . . . . . . . . . . . . . . 1 Service King Launches Military Veterans Hiring Initiative. . . . . . . . . . . . . . . . . . . . . . . 58 Sherwin-Williams Partners with Toyota for Estimator Training . . . . . . . . . . . . . . . . . 56 Sherwin-Williams Recognizes 2015 Nascar® ‘Fastest Lap’ Contingency Award Winners . . 55 Subaru Maker Reports Profit; More US Capacity . 44 Takata Acknowleges 34M Defects, Struggles to Meet Air Bag Repair Demands . . . . . . . . . 61 Takata Admits to Fault in Airbag Design, 34 Million Vehicles, Largest Recall in History Ensues . . . . . . . . . . . . . . . . . . . . . . . 1 Turbo Charge Your Dealer Body Shop ROI— Dashboard the KPIs. . . . . . . . . . . . . . . . . . . 44 Wheelmaker Superior Moves HQ from Van Nuys to Detroit . . . . . . . . . . . . . . . . . . . 65 WIN Congratulates 2015 MIW Honorees, Scholarship Recipients at Educational Conference . . . . . . . . . . . . . . . . . . . . . . . . . 69 WIN 2015 Educational Conference Addresses Wide-Ranging Industry Issues . . . . . . . . . . . 66

Allstate Insurance Company is launching a recruiting campaign to expand in Pennsylvania. Allstate plans to appoint more than 260 new insurance agents and personal financial representatives in the Keystone State over the next year. “Pennsylvania’s strong economy is fueling this expansion plan. We target cities and areas that are growing and have an increased need to protect what matters most to the people in those communities as a part of Allstate’s broader strategy to expand in Pennsylvania,” said Ed Norcia, Allstate’s Northeast Region Strategic Deployment Leader. Allstate is seeking agency owners who are mid-career, mid-level managers who want to own and operate their own business. “We are aggressively targeting qualified professionals,” Norcia added. “A property and casualty insurance background is not required. Allstate will provide them with comprehensive education and the resources to help them get off to a solid start. They do need a strong entrepreneurial drive and passion to help others in their community.” Allstate Agent Tonia Pittman opened her agency in the Somerset area in October of 2013 and has already seen tremendous profit and growth. Pittman

said she was drawn to Allstate because of the support provided to business owners from the very beginning. Of those 260 positions, 63 appointments will be agency owners and 25 will be exclusive financial professionals. The addition of the new agencies will have a compounding effect on the Pennsylvania job market since each new agent normally opens with a minimum of two employees to help ensure customers are well served with courtesy and efficiency. The balance of 172 positions will fill these roles To help with the deployment efforts, Allstate is offering a $5,000 award to the person who refers a qualified agency owner or exclusive financial professional candidate to Allstate. The referral award is payable upon of the appointment of the candidate as an Allstate agency owner. Candidates interested in becoming an Allstate agency owner need a minimum of $50,000 of liquid capital to invest in their agency. This money does not go to Allstate; it helps ensure the agency can successfully fund the normal day-today costs. Licensed sales producers need no liquid capital to apply. Interested candidates can visit allstate.com or call 1877-470-8150, option 1.

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

Acura of Westchester . . . . . . . . . . . . . 32 Amato Agency . . . . . . . . . . . . . . . . . . . 38 Atlantic Hyundai. . . . . . . . . . . . . . . . . . 43 Audi Wholesale Parts Dealers . . . . . . . 59 Axalta Coating Systems. . . . . . . . . . . . . 2 Bald Hill Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . . . 10 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . . . 20 BMW Wholesale Parts Dealers . . . . . . 53 Car-Part.com . . . . . . . . . . . . . . . . . . . . 18 CarcoonAmerica Airflow Systems . . . . 34 Central Avenue Chrysler-JeepDodge-Ram . . . . . . . . . . . . . . . . . . . 30 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . 45 Cherry Hill Audi . . . . . . . . . . . . . . . . . . 35 Cherry Hill Porsche . . . . . . . . . . . . . . . 35 Cherry Hill Volkswagen . . . . . . . . . . . . 35 Chief Automotive . . . . . . . . . . . . . . . . . 11 Classifieds . . . . . . . . . . . . . . . . . . . . . . 70 Clay Auto Group . . . . . . . . . . . . . . . . . 51 Coleman Autobody . . . . . . . . . . . . . . . . 4 Ditschman/Flemington Auto Group . . . . 39 Dover Chrysler-Dodge-Jeep . . . . . . . . 17 Eco Repair Systems of North America, LLC . . . . . . . . . . . . . . 8 Empire Auto Parts . . . . . . . . . . . . . . . . 40 Equalizer Industries, Inc . . . . . . . . . . . 16 Fairfield Chrysler-Jeep-Dodge-Ram . . . . 26 Fitzgerald’s Lakeforest HyundaiSubaru . . . . . . . . . . . . . . . . . . . . . . . 54 Ford Wholesale Parts Dealers . . . . . . . 46 Fred Beans Parts . . . . . . . . . . . . . . . . . 72 Fuccillo Kia of Schenectady . . . . . . . . 25 Gary Rome Hyundai-Kia . . . . . . . . . . . 44 GlobalJig North America . . . . . . . . . . . 29 GM Wholesale Parts Dealers. . . . . . . . 65 H & S Autoshot Mfg. Co. . . . . . . . . . . . . 9 Herkules. . . . . . . . . . . . . . . . . . . . . . . . 15 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 36-37 Hyundai Wholesale Parts Dealers . . . . 61

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL ABRA Enters Northeast U.S. . . . . . . . . . . . . . . . 4 Allstate Seeking to Grow Agents by 17 Percent in PA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Bronxville Auto Collision Earns Top Certification . 10 Butler, PA Veteran Benefits from ‘Recycled Rides’ . 28 Caliber Collision Adds Seven Locations on the East Coast . . . . . . . . . . . . . . . . . . . . . . . . 4 Crews Battle Flames at Tiverton, RI, Body Shop . 12 Firefighters Rescue Worker Pinned by Van at NJ Shop . . . . . . . . . . . . . . . . . . . . . . 10 Garden City, NY Man to Pay Restitution in Tax Fraud Case . . . . . . . . . . . . . . . . . . . . . . 12 Hollander Training Summit to be Held in PA on June 27 . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Hunterdon County, NJ Polytech 2015 SkillsUSA State Competition Held May 2 . . . . . . . . . . . . 4 NABC Members Showcase Recycled Rides™ at Spring Industry Events. . . . . . . . . . . . . . . 16 New Hampshire Employment Bill Awaits Vote by State Senate . . . . . . . . . . . . . . . . . . . 4 Newly Appointed MA Insurance Commissioner Daniel Judson Addresses Labor Rates & Affordable Auto Insurance . . . . . . . . . . . . . . 8 NJ Man Admits to Defrauding Employer, Insurers and Credit Union Out of More Than $600,000 While Working Under-the-table at Body Shop . 12 NJ Man Charged in Craigslist Scam That Helped Residents Lower Car Insurance Rates . . . . . . 6 NYSACTA and LIABRA Review Aftermarket Parts Bill During 2015 Lobby Day . . . . . . . . . . . . . . 1 Pro Spot’s Virtual Welding Contest at Northeast™ . 65 Stolen ALI Inspection Labels . . . . . . . . . . . . . . 12 TCHS Brandywine Hosts ‘Auto Collision Experience’ . . . . . . . . . . . . . . . . . . . . . . . . . 10

Allstate Seeking to Grow Agents by 17 Percent in PA

Indexof Advertisers

Contents

Imperial Ford-Chrysler. . . . . . . . . . . . . 24 Infiniti of Norwood . . . . . . . . . . . . . . . . 31 Jaguar Wholesale Parts Dealers . . . . . 68 Kia Motors Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 63 Koeppel VW-Mazda . . . . . . . . . . . . . . . 48 Lexus Wholesale Parts Dealers . . . . . . 60 Maaco Franchising LLC. . . . . . . . . . . . 28 Martech Service Company . . . . . . . . . . 9 Maxon Hyundai . . . . . . . . . . . . . . . . . . 14 Maxon Mazda . . . . . . . . . . . . . . . . . . . 42 Mazda Wholesale Parts Dealers . . . . . 69 Mercedes-Benz . . . . . . . . . . . . . . . . . . . 5 Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . . . . . 49 Mercedes-Benz of West Chester. . . . . 49 Mercedes-Benz of Wilmington . . . . . . 21 Mercedes-Benz Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 58 MINI Wholesale Parts Dealers . . . . . . . 52 MOPAR Wholesale Parts Dealers . . . . 41 NACE/CARS Trade Show . . . . . . . . . . 23 Nissan/Infiniti Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 56 Porsche Wholesale Parts Dealers . . . . 55 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . . . . . 6 SATA Spray Equipment . . . . . . . . . . . . 19 Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Subaru Wholesale Parts Dealers. . . . . 67 Tasca Automotive Group . . . . . . . . . . . 33 Thompson Organization . . . . . . . . . . . 47 Toyota Wholesale Parts Dealers . . . . . 64 Urethane Supply Company. . . . . . . . . 27 Valspar Automotive . . . . . . . . . . . . . . . 13 VIP Honda . . . . . . . . . . . . . . . . . . . . . . 22 Volkswagen Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 57 Volvo Wholesale Parts Dealers . . . . . . 62 Wagner Auto Group. . . . . . . . . . . . . . . 71 Wheel Collision Center . . . . . . . . . . . . 12

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 3

Hunterdon County, NJ Polytech 2015 SkillsUSA State Competition Held May 2

On May 2, the NJ SkillsUSA Competitions final award event took place at the Garden State Exhibit Center.

Repair to the Cosmetology Knowledge Bowl. The result was a total of 27 Medal Winners; 9 Gold, 10 Silver and 8 Bronze, reported the Hunterdon County Democrat. Six of the nine gold medal winners will be chosen to compete in Louisville, KY at the end of June. The collision repair students that are eligible for the nationals include

The NJ SkillsUSA Competitions final award event was held on May 2 at the Garden State Exhibit Center. Photo Credit: Hunterdon County Democrat

The theme for this year’s New Jersey SkillsUSA was ‘50 Years of Champions at Work.’ This year, 64 Hunterdon County Polytech students competed in a variety of competitions from Collision

Caliber Collision Adds Seven Locations on the East Coast

Caliber Collision Centers announced their expansion in Virginia, Maryland, and the District of Columbia with the acquisition of Cherner Collision Centers on April 29. Cherner Collision Centers has been an industry leader for more than 70 years in the Washington Metropolitan area with seven locations in Virginia, Maryland and the Washington, D.C. area. Steve Grimshaw, Caliber Collision CEO announced, “The Cherner Collision Centers facilities and management team perfectly complement Caliber’s purpose, vision and mission within the Mid-Atlantic market. Cherner has consistently delivered quality workmanship, unparalleled customer satisfaction, and industry-leading operational consistency on the East Coast for decades. We are very excited to add these new teammates to the growing Caliber family.” “Our family has built a solid reputation across the Washington Metropolitan area delivering high-quality workmanship and professional service for more than 70 years. Caliber Collision will offer our associates a bright future, as we continue to set the industry standards in customer satisfaction across the communities we serve,” stated Jonathan and Andrew Cherner, Principals of Cherner Collision Centers.

Joseph Bianco in Automotive Refinishing Tech and Nicholas Bianco in Collision Repair Tech.

www.autobodynews.com

New Hampshire Employment Bill Awaits Vote by State Senate by Stacey Phillips, Assistant Editor

In New Hampshire, an employment bill that clarifies the definition of an employee and an independent contractor is awaiting a vote by the state Senate Commerce Committee by June 4. HB 450 was first introduced to the House of Representatives Labor, Industrial and Rehabilitative Services Committee on January 8, 2015. After a public hearing later that month, the bill was amended and adopted by the House on March 12. It was referred to the Senate Commerce Committee on March 19. The bill would create a uniform definition of the word employee with a list of criteria to determine employment status for worker’s compensation and unemployment compensation. The bill defines an independent contractor as an individual who: ● has the right to control the detailed means and manner of the work except as to final results; ● has the opportunity for profit and loss as a result of the services being performed; ● performs services that the individual is customarily engaged in as an independently established trade, occupation, profession or business;

● hires and pays the individual’s assistants; and ● receives payment based on factors directly related to the agreed scope of work performed. In addition, the bill states that at least three of the following criteria must be met: ● The individual has a substantive investment in the facilities, tools, instruments, materials and knowledge used to complete the work; ● The individual is responsible for satisfactory completion of the work and may be held contractually responsible for failure to complete the work; ● The parties have a written contract that defines the relationship and gives each party contractual rights in the event the contract is terminated by the other party prior to completion of the work; ● The work is outside the usual course of business of the hiring unit; or ● The individual has been determined to be an independent contractor by the federal Internal Revenue Service (an SS-8 determination) Autobody News will report on the outcome of the Senate vote. A copy of Bill HB450 is available online: https://legiscan.com/NH/text/ HB450

ABRA Enters Northeast U.S.

ABRA Auto Body & Glass announced on May 1 that the company expanded in the Philadelphia, PA and Delaware markets. The growth is the result of the acquisition of 12 Keenan Auto Body locations. Details were not disclosed. ABRA’s President and CEO Duane Rouse said the outstanding leadership and operational strength that Keenan Auto Body developed over the years is key for ABRA as it enters uncharted territory in the Northeast. “We are carefully considering our approach as we enter new markets, especially ones as sizable as Philadelphia. The purchase of a brand with such well-established history and strength as Keenan, creates exciting opportunities for us as we seek to establish and further develop ABRA’s presence in the region.” Keenan’s President and COO Mike LeVasseur said, “This is a tremendous opportunity and I am excited to continue to grow the deep relationships we’ve developed in the community.” ABRA is seeking opportunities to acquire repair centers. Interested parties in major markets should contact Scott Gerling, sgerling@abraauto.com or 763.585.6210. For small and midsize markets, contact Mark Wahlin, mwahlin@abra auto.com or 763.585.6210.

4 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

Autobody Estimator Needed Looking to fill a soon to be vacant experienced estimator position. Our facility has grown 12% in the past year, for 3 years in a row. The job requires but is not limited to: » Opening and closing repair orders » Knowledge of DRP insurance relations » Heavy phone and customer contact » CCC One experience » IMPECCABLE customer service » Must be a hard worker and not afraid to RUN!!!

Coleman Autobody offers: - Brand new work office - Stable company, with - Great income room to expand your - 401K career and the facility - Full benefits - No appraisers license - Paid vacation and sick time required in NJ - Pleasant work environment - TOP NOTCH quality work so customer complaints are rarely heard - Always a constant flow of work (incoming/outgoing) - Convenient location for easy commuting (central NJ or Eastern PA, relocation possible)

Tom Gillespie Coleman Autobody Manager tom.gillespie@colemanautos.com

Ph: 609-895-3369 Fax: 609-895-9646 www.colemanbuickgmc.com/BodyCenter_2 www.facebook.com/pages/Coleman-Autobody/ 138850769626785

Please send a resume or stop by and fill out an application. This position is immediately available to the right candidate! If you’re tired of your dirty, old facility and you want to increase your income you need to talk to us. We have one of the largest, nicest facilities in the area and some of the most talented crew working with us.

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 5

Hollander Training Summit to be Held in PA on June 27

Hollander announced it will be holding the second Regional Training Summit of 2015, coming to Philadelphia, PA June 27th at the Ace Conference Center. The Northeast Regional Training Summit offers users at every level classroom and hands-on learning opportunities with experts in PowerLink®, eLink™ and EDEN®. The Summit is comprised of two separate learning tracks: “Inventory” and “Management” taught by Hollander experts. Participants have the opportunity to visit the Technology Test Drive Center to ask Hollander Support associates specific technology questions. Additionally, the Hollander Northeast Region sales team will be on hand to assist with any account questions, and an eBay representative will be present to answer online sales inquiries. For more information and to register, visit https://www.regonline .com/builder/site/?eventid= 1700059.

www.autobodynews.com CHECK IT OUT!

First Responders Emergency Extrication Program in Ellington, CT Lead by Kar Kare CARSTAR On April 18 Kar Kare CARSTAR in Ellington, CT took the lead in sponsoring an onsite training class to

lessen the amount of time it takes to extract an occupant from their vehicle in an accident. Called the First

The First Responders Emergency Extrication (FREE) program is a community awareness project whereby members of the NABC repair and donate total loss vehicles for first responder organizations in need throughout the United States. Photo Courtesy of Ellington Volunteer Fire Dept.

Responders Emergency Extrication (FREE) program, the National Auto Body Council’s four-hour course in-

NJ Man Charged with Craigslist Scam That Helped Residents Lower Car Insurance Rates

An Essex County man has been arrested for allegedly running a scheme through Craigslist that offered services that would aid New Jersey residents in illegally registering their cars in other states to avoid paying market insurance premiums. Shareem Taylor, 30, who had last known addresses in East Orange and Englewood, was arrested on May 13 Shareem Taylor in Englewood by allegedly ran a scheme through OIFP detectives Craigslist aiding and charged with New Jersey second-degree residents in illegally insurance fraud registering their and second-decars in other states gree conspiracy. in order to pay He is currently lower insurance being housed at rates Bergen County Jail on $50,000 bail. Taylor, who allegedly posted the advertisement under the pseudonym “Brandon,” offered assistance, for a fee, with “Out of State Vehicle Registration.” Additionally, “Brandon” al-

legedly offered his clients assistance with insurance policies for their newly registered vehicles. The posting also read: “I can lower your instate [sic] insurance by up to 50 percent” and “I’ve been doing this for six years I have over 600 customers.” An undercover OIFP detective responded to Taylor’s advertisement and later received from the defendant titling documents and license plates from South Dakota for her fictitious car. Taylor’s services would allegedly allow his customers to perpetrate reverse rate evasion. Legislation signed into law in mid-May by Governor Chris Christie made reverse rate evasion a form of insurance fraud. The measure targets residents who fraudulently obtain auto insurance in another state with lower rates, even though New Jersey is their principal residence or they principally keep the insured vehicle in New Jersey.

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corporated classroom and hands-on instruction, while demonstrating vehicle cutting and techniques. “As auto body specialists, our technicians are very aware of newer vehicle designs and the newer materials used in making today’s cars,” stated Ron Midford, Kar Kare General Manager. “For first responders, this knowledge is even more important in helping them save lives and in

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not endangering their own lives at an accident, which is why we were excited to offer the FREE training.” “First responders such as firefighters require the most current ve-

hicle information to be effective and save lives at the scene of an accident,” stated Ellington Fire Chief Gary Feldman. “This was a tremendous program that will help us save lives.” Firefighters who attended the training were from Ellington, Bolton, Vernon, Somers and Broad Brook. “It is nice to work with the other towns in a mutual training like this. And receiving the support of local businesses who made this possible is good for all of us,” said Ellington Deputy Chief of Training Karl Neubecker. Event sponsors including Kar Kare were Bolles Motors of Stafford Springs and Ellington, Bill’s Auto Parts of Tolland, Autozone in Vernon, The Hidden Still in Ellington, Progressive Insurance and Enterprise Rental Car. Trainers were from Shipman’s Fire Equipment Company in Waterford. “At Kar Kare CARSTAR we are committed to helping our community become a safer, better place to live,” added Midford. “The feedback we received was extremely positive. We would be glad to host another one of these events as a way to further serve our locality.”

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Newly Appointed MA Insurance Commissioner Daniel Judson Addresses Labor Rates & Affordable Auto Insurance by Stacey Phillips, Assistant Editor

Daniel R. Judson was recently appointed as the Commissioner of Insurance in Massachusetts by Governor Charlie Baker. The Division of Insurance is a regulatory agency housed in the state’s Office of Consumer Affairs and Business Regulations (OCABR). Autobody News asked Commissioner Judson to share information about his background and some of his plans in this new role. “Insurance is an increasingly complex industry, as companies merge or are acquired and ownership interests reflect issues at the state, the national and even the international level,” said Judson. “My job is to keep our team focused on monitoring the solvency of all insurers and producDaniel Judson was recently ers licensed to do appointed business in MassaCommissioner chusetts, in order of Insurance in to provide the inMassachusetts dustry and insur-

ance-buying public with a financially healthy insurance market.” An attorney with more than 25 years of experience in the private and public sectors, Judson worked at the Division of Insurance for 15 years as general counsel and deputy commissioner. He then spent 12 years in the private sector, working as a partner in the insurance practice of Morrison Mahoney LLP, as compliance manager for a Massachusetts-based insurer; and as the president of the high-risk pool for auto insurance in the state. “As the Commissioner of Insurance, Daniel Judson brings a wealth of insurance experience from the public and private sector, and is a great addition to the team at Consumer Affairs and Business Regulations,” said Jay Ash, Secretary of Housing and Economic Development for the Commonwealth of Massachusetts. “We are very pleased to bring someone with Dan’s background and experience to the Division of Insurance,” said OCABR Undersecretary John Chapman. “His experience will be an asset as we represent consumers in this crucial aspect of the lives of

Massachusetts residents.” Judson said the Division of Insurance serves as the financial regulator of the insurance industry in the state. “The insurance industry touches many other parts of our economy, and as regulators, we consider all factors that influence the auto insurance market,” he said. When asked about the Department of Insurance’s involvement in the Multi-District Litigation in Florida filed by more than 500 body shops across the country against the nation’s top insurers alleging “steering” and “suppression of labor rates,” Judson said that through the National Association of Insurance Commissioners, Massachusetts can monitor developments in other states that influence best practices in their work. “Court proceedings in other states will not necessarily have a direct impact in Massachusetts, but we are always eager to learn from the challenges our regulatory counterparts face.” In regards to labor rates in the collision repair industry, Judson said that a year ago the Massachusetts legislature looked at requiring the Commissioner of Insurance to set minimum

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hourly labor rates for auto body repair shops based on average rates in neighboring states. “That bill (H.883) was ordered to further study and has been re-filed in this session (H.969),” said Judson. “We will continue to monitor the pending bill as it proceeds through the legislative process.” Another priority Judson mentioned is keeping auto insurance affordable and available for all Massachusetts drivers. “Since the introduction of managed competition in the state’s auto insurance market in 2008, 15 new insurers have begun writing premiums for Massachusetts’s drivers, allowing them greater choice, innovative productions and often, lower premiums.” As he begins his term, Judson said, “The shared focus on company solvency and consumer protection are key to the continued health of the insurance market in Massachusetts.”

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Car-O-Liner® Names New Technical Director

Record Revenue for CARSTAR in First Quarter of 2015

Car-O-Liner® hired David Scribner as its Technical Director. Scribner brings over 25 years of experience in product line management, product development, design patents and worldwide OEM homologations of automotive and heavy-duty truck service equipment. His extensive background comes from prior executive positions held within Snap-On Equipment, Bosch Diagnostics and Hunter Engineering Company. “His responsibilities as Technical Director will encompass broad areas related to leadership in our business growth and applied technologies to the automotive and commercial divisions within our subsidiary of the Car-O-Liner Company,” said Jeff Kern, President of Car-O-Liner, The Americas. “We are thrilled to have David join the team, helping to ensure our company’s expansion as we continue to serve our valued customers with technically correct, OEM-approved, total solutions,” Kern added. For more information about Car-O-Liner, visit www.car-o-liner .com.

CARSTAR has announced that it finished the first quarter of 2015 with revenue of $195.6 million, which puts it on track to outpace its performance in 2014. Last year, CARSTAR delivered North American revenue of $712 million, up nearly 10 percent from $649 million in 2013, a record for the company. It also ended the year with same store sales in North America that were up 11.3 percent over the previous year. CARSTAR saw a significant increase in insurance work during the first quarter of the year. In 2014, its insurance carrier volumes increased 11 percent over 2013, and it added 179 direct repair programs (DRPs) to its network, a trend continuing in 2015. “There are several factors driving our growth this quarter,” said David Byers, CARSTAR’s CEO. “We’ve seen increases in repair volumes from the top 25 insurance carriers, driven by CARSTAR’s EDGE Performance platform and continued KPI performance. We are seeing higher repair values as consumers continue to purchase new cars. And, weather has played a role, with heavy winter storms throughout the country.”

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Bronxville Auto Collision Earns Top Certification

Bronxville Auto Collision in Bronxville, New York has been officially certified by Assured Performance, a nonprofit consumer advocacy organization, for maintaining the tools, equipment, training and facility necessary to repair the participating automaker brand vehicles back to the manufacturer's specifications. This is essential to motorists and their families to ensure the safety of their vehicles after an accident or body damage occurs. In achieving their certification, Bronxville Auto Collision is now officially recognized by Assured Performance, FCA, GM, Enterprise, Ford, Nissan and Infiniti. Bronxville Auto Collision is also now part of the exclusive group of Certified Collision Care Providers that includes only bestin-class collision repair businesses who have passed a rigorous certification process essential to help ensure a proper and safe repair of the new generation of advanced vehicles. Collision Care service, now available in the Bronxville area, is an advanced collision repair and service performed exclusively by certified repair providers. Fewer than five percent of body shops across the nation are able to meet these stringent requirements.

Firefighters Rescue Worker Pinned by Van at NJ Shop

A man was left pinned between a vehicle and a steel barrier when the van he was working on at a Paterson, NJ, shop rolled off a lift on April 25. It took firefighters a half hour to free him, according to Noah Cohen at nj.com. The man was conscious and alert during the ordeal, which took place at a shop on Straight Street, near Van Houten Street, Deputy Fire Chief William Henderson told nj.com. Henderson added that around 9:30 a.m., fire crews used a hydraulic spreader to help remove the man. When the van rolled off the groundlevel lift, the man was standing in front of it. Authorities told nj.com that the man was taken to the hospital.

TCHS Brandywine Hosts ‘Auto Collision Experience’

Nineteen automotive collision industry experts, businesses and advocates hosted the 2015 Auto Collision Experience at Technical College High School Brandywine Campus in PA on May 9. The Auto Collision Experience showcased the variety of career paths available in the fastgrowing automotive industry.

10 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

Element Fleet Management Automotive Collision Expert Joins Elite Technicians

Rich Forstner, an automotive collision expert with Element Fleet Management, a North American fleet provider, received recognition within the automotive industry as a World Class Technician. Forstner, the newest member of the elite World Class Technician Rich Forstner group at Element was named World Fleet, joins reClass Technician cently certified technicians Freddie Castillo, Jeremy Richardson, and Lamont Burck, who serve as automotive technical leads for Element Fleet’s award-winning Customer Care Center. “Recipients of the World Class Technician Award are truly the best of the best, and the Auto Care Association is proud to recognize these professionals with National Institute for Automotive Service Excellence (ASE),” said Kathleen Schmatz, President and CEO, Auto Care Association. “Passing 22 ASE tests is a monumental achievement requiring

exceptional knowledge and skills.” “Each member of this elite team has accomplished an amazing feat achieving World Class Certification,” said Jim Halliday, President and CEO, Element Fleet Management. “These technicians—and our entire Customer Care team—deliver on-the-spot expertise and proactive service to our customers, resulting in significant cost savings and maximum up-time for fleet vehicles.” According to the Auto Care Association and ASE, of the more than 800,000 automotive technicians working in the United States, only two percent earn the rare distinction of World Class.

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 11

NJ Man Admits to Defrauding Employer, Insurers and Credit Union Out of More Than $600,000 While Working Under-the-table at Body Shop Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) announced that a Perth Amboy, NJ man pleaded guilty May 13 to multiple charges related to two separate insurance fraud schemes for which two state grand juries indicted him in November. Vinny Curbelo, 31, pleaded guilty to seven charges before Middlesex County Superior Court Judge Michael Toto. Curbelo pleaded to the following counts: second-degree health care claims fraud, second-degree theft by deception, second-degree insurance fraud, two counts of third-degree theft by deception, thirddegree theft by unlawful taking and third-degree theft by deception. OIFP recommended that Curbelo receive a state prison term of eight years. His sentencing is scheduled for June 22. On Nov. 13, Curbelo was indicted for faking an accident at his job site to get his insurance to cover the half-million dollar cost of medical treatment for injuries he had suffered prior to his employment. In addition, he accepted approximately $55,803 in temporary disability payments for two

Garden City, NY, Man to Pay Restitution for Tax Fraud

A Garden City, New York man was spared jail time but ordered to pay more than $27,000 in restitution on charges of tax fraud because he failed to remit sales tax receipts earned at his New Hyde Park auto body shop, according to officials. Gerald Losquadro, 62, the former operator of New Hyde Park Auto Body Works, located at 801 Second Ave., was sentenced in April to a conditional discharge and ordered to pay $27,588 in restitution to the state, according to a news release from the state Department of Taxation and Finance. Losquadro was charged last year with third-degree grand larceny, first-degree offering a false instrument for filing, and third and fourth-degree criminal tax fraud on allegations that from September 2009 to December 2010 he collected $27,588 in sales tax from his customers, but did not remit it to the state, the release said.

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years following the faked accident, though he was working under-thetable at a Dawn’s Auto Body in Keyport. While employed there, he stole approximately $16,700 from the bank accounts of that auto body shop. Nine days later, Curbelo was indicted for executing a complex Vinny Curbelo of scheme to steal Perth Amboy, NJ approximately pleaded guilty to $23,000 from a seven charges on credit union and May 13 to defraud a car insurance company of more than $32,000 by forging documents related to a stolen SUV. “Curbelo sought illegitimate financial windfalls from any source he could target, whether they were insurer, employer or lender,” said Acting Attorney General Hoffman. “His crimes were carefully calculated and involved multiple layers of deceit.” “The defendant scammed multiple sectors of the insurance industry, stealing from companies that provide

Crews Battle Flames at Tiverton, RI, Body Shop

Firefighters responded to reports of a fire and heavy smoke to a body shop on May 5. The fire broke out just before 9:45 a.m. in Tiverton, RI at Tiverton Auto Parts on 541

Bulgarmarsh Road. Neighboring fire crews from Portsmouth, Fall River, and Westport were all called to the scene to help, reported Colin Spence, WPRI.com. The cause of fire is under investigation.

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disability, medical and auto insurance,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “Aggressive prosecutions and appropriate prison terms, such as those pursued in this case, serve as deterrent to anyone contemplating the type of crimes Curbelo perpetrated.” Deputy Attorneys General Colin Keiffer and Michael Clore represented the state at the plea hearing. Deputy Attorney General T.J. Harker, Detectives Wendy Berg and Grace Rocca and Detective Sergeant Jarek Pyrzanowski coordinated the investigation. Acting Insurance Fraud Prosecutor Chillemi noted that some important cases have started with anonymous tips.

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Stolen ALI Inspection Labels

The Automotive Lift Institute, Inc. (ALI) an ANSI accredited product certification body, announced that 200 of its Annual Inspection Labels were stolen when the vehicle of an ALI Certified Lift Inspector was broken into and vandalized near Buffalo, NY on April 20. The labels are individually serialized and are applied to automotive lifts that pass annual lift inspection safety requirements as an indication of compliance with recognized American National Standards. Vehicle lifts inspected since April 20 and bearing an annual inspection label exhibiting one of the serial numbers listed on the website below, may not have been performed by an ALI Certified Lift Inspector. The label should be removed and reported to ALI. Contact ALI with the name of the inspection provider, the manufacturer’s model and serial number of the lift and the serial number shown on the inspection label. Send this information along with your company name and contact information to: Automotive Lift Institute, Inc. PO Box 85, Cortland, NY 13045 Or by fax to: (607) 756-0888 Or by email to: info@autolift.org A list of the stolen labels is online: http://www.autolift.org/old_press_releases/ALI_Press_Release052.pdf

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 13

—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.

Historical Snapshot

Multiple Parts Suppliers, Body Tech Shortage, M2 Closes, Allstate Challenges No. 1 with John Yoswick

20 years ago in the collision repair industry (June 1995) Shop owners at the Collision Industry Conference (CIC) in Hawaii expressed concerns regarding the number of part vendors that are being listed on a single, insurer-generated estimate. “It’s creating a tremendous burden on the repairer to follow up on the parts specified that are coming from different suppliers that have been searched by the computer system,” Kansas shop owner Bill Eveland said. “We have to make multiple calls to check the availability, we have them shipped only to find out that they’re COD, and then we find out in some cases that they’re the wrong parts and have to be returned. It’s happening more and more, and we’d like to have it addressed.” Eveland said he has received estimates with as many as nine different part suppliers designated – some from hundreds of miles away from his shop.

“We’re left either trying to find the parts locally at the same price or making multiple calls, buying them all over the country, and it’s getting out of hand,” he said. – As reported in The Golden Eagle. It’s an issue that, 20 years later, hasn’t gone away, and now it’s sometimes shops, struggling to meet insurer

15 years ago in the collision repair industry (June 2000) The next time you are trying to hire a technician to fill an opening at your shop, think about the 12,251 applicants - all with recent hands-on work experience in shops - who are no longer working as collision repair technicians. According to a recent study, every year more than 12,000 techs - almost 6 percent of the technician workforce - pack up their tool boxes and head off for other careers. That doesn’t include the 2,100 who retire, or the 5,250 who take other jobs (as estimators, for example) within the industry. That’s just the technicians who deIn 1995, Kansas shop owner Bill Eveland was among those cide for some reason that the expressing concerns about the growing number of parts collision repair industry isn’t suppliers being listed by insurers on a single estimate for them. demands, that may list a high number Those numbers, from an I-CAR of parts suppliers on a single estimate. Education Foundation study released

last year, go a long way in explaining why a lot of people are talking about a ‘technician shortage.’ The problem, it seems, is not just one of attracting more young people into the trade, but of keeping more technicians working in the trade throughout their productive years. There’s a common misperception in the industry that the technician workforce is aging. So few new techs are entering the industry, one posted message online claimed, that the average age of technicians is 53. In fact, the I-CAR Education Foundation study found the average age is under 36 – lower even than the national workforce average age. But there is a sharp decline in the number of technicians over 40 years old – much worse than the rate of decline of males in this age group in the general workforce. Reducing that decline – by keeping experienced techs working longer – could greatly reduce

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the “technician shortage,” and at the same time make the industry much more appealing to the young people it also needs to attract. – As reported in Autobody News. The numbers have improved somewhat since then. In a similar study in 2013, the I-CAR Education Foundation reported that 6,928 technicians (4 percent of the total) left the preceding year for jobs outside the industry. The average technician age in 2013 had risen to just shy of 39 years old.

10 years ago in the collision repair industry (June 2005) Stuart Burns said there was occasional discussion around the M2 water cooler about how the company was doing, but it wasn’t until April 1 of this year that he really put much stock in it. “Some of the folks who’d talked to the paint and parts guys said they’d heard we were behind in paying the bills, but I didn’t think it was to a point where I needed to worry about it,” said Burns, a former technician (who didn’t want his real name used) with the California M2 chain of shops in California. “I looked at the stream of work

we had coming through this place, and I had a hard time believing they could be losing money.” Burns’ view of the situation changed dramatically in April when, a day after hearing M2 would be bought out by another consolidator, he found out his paycheck had bounced. The purported sale fell through, the doors at the 27 M2 shops were locked with as many as 2,000 in-process vehicles inside, and hundreds of employees found themselves with bounced paychecks for two or even three weeks of work. Estimates on the amount that suppliers and vendors were out end in the word, “millions.” There’s plenty of finger-pointing when it comes to placing blame for M2’s demise. What seems clear is this: Caliber Collision Centers in late March announced that it intended to acquire the M2 chain of shops. As those negotiations broke down in mid-April (Caliber’s Den Pettigrew said it just didn’t have enough time to complete its due diligence), M2’s major creditor, GE Capital, froze the company’s accounts and locked the shop doors in an effort to secure its investment (reportedly close to $5 million).

How good or bad a thing the M2 collapse is depends on who you talk to. At a sealed bid auction of M2 assets in late April, some of the former owners were able to get back in the collision repair business for a fraction of what they sold their businesses for to M2 just a few years ago. Given that M2 wasn’t the first consolidator to implode, it serves as a good reminder to shop owners to get as much cash, and retain as many real assets (i.e., real estate), when selling a business as one can. Accepting stock in the future success of the larger company as full or partial payment seems particularly risky in this industry. – As reported in Collision Repair Industry INSIGHT, June 2005.

5 years ago in the collision repair industry (June 2010) Allstate will have to replace several years of losses in market share with annual growth rates of 7 percent if it is to meet its goal – outlined in an internal memo obtained by Crain’s Chicago Business – to replace State Farm as the nation’s largest home and auto insurer within 10 years. Analysts say the goal could lead to Allstate acquisitions or a price war

similar to one in the industry a decade ago. No. 2 Allstate’s total annual premiums dipped 2.5 percent last year, compared to a 1.4 percent gain by State Farm. But Allstate, which controls 10.7 percent market share (compared to State Farm’s 18.1 percent) has some room to cut premiums; its loss ratio (amount paid out in claims compared to premiums received) last year was 58.7 percent, one of the best among the Top 10 insurers, while State Farm’s 72.9 percent was the highest. – As reported in CRASH Network (www.CrashNetwork.com), June 21, 2010. Rather than moving up to rival State Farm in terms of market share, Allstate has lost yet more ground since 2010. Geico blew past Allstate in 2013 to become the second-largest auto insurer; last year Geico had 10.7 percent market share, exactly what Allstate had in 2010. No. 3 Allstate had 9.9 percent market share last year. No. 1 State Farm continues to hold its own, with 18.7 percent market share last year, even more than it had in 2010.

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 15

NABC Members Showcase Recycled Rides™ at Spring Industry Events National Auto Body Council (NABC) members showcased the organization’s signature Recycled Rides™ program at collision industry events across the country in April, highlighting the impact that reliable transportation provides for individuals struggling to rebuild their lives.

Rick Tuuri, Chair of NABC Recycled Rides, Leo Wasilewski of Gerber Collision-Douglasville and recipient Theresa Riggins

The April Recycled Rides events are among the 104 vehicles currently in progress or completed to date in 2015. “We have already hit the 50% mark of last year’s total Recycled Rides and thanks to our members, are well on the way to surpass the number of vehicles donated last year,” said Rick Tuuri of AudaExplore, a Solera Company and the Chair of NABC’s Recycled Rides program. The NABC’s Recycled Rides program brings together collision industry members to repair and donate vehicles to

individuals and service organizations in need. Insurance carriers, rental car companies, and salvage yards donate vehicles, which are then repaired as a volunteer effort by collision repair shops. Manufacturers and suppliers contribute to the effort by donating parts and materials. Highlights of the NABC’s Recycled Rides events in April include: ● Collision Industry Conference in Atlanta where Gerber Collision and GEICO teamed up to donate a 2009 Honda Accord to a single grandmother, raising two young granddaughters. She had lost her job, her home and up until recently, was living in a Family Promise shelter. LKQ Corporation also donated parts and materials. ● Automechanika in Chicago where two Recycled Rides vehicles were donated to help give women a second chance to

Recipient Caress Pouncy is all smiles in her new Recycled Rides vehicle donated by CARSTAR of Mundelein, Illinois and Allstate Insurance

16 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

jumpstart their lives. A young woman who fell into trouble with school and the law as a teenager after the death of her parents, was selected as recipient for a 2010 Nissan Altima donated and repaired by CARSTAR of Mundelein, Illinois and Allstate Insurance. With the support of the Women With Drive Foundation, which nominated her for the Recycled Rides program, she recently completed training to be a welder, joined a union and has a new job with a local construction company. A second vehicle was donated at Automechanika to the nonprofit group Another Chance Outreach Center, based in Gary, Indiana, which provides support services and programs to veteran, battered, and ex-offender women. The refurbished 2006 Toyota Prius, donated and repaired by 1-Collision Schererville in Indiana and State Farm Insurance, will help the organization provide transportation to participants in the residency program as they transition back into independent living. ● The PPG Automotive Refinish Spring MVP Conference in Palm Desert, CA was the setting for a fourth NABC Recycled Rides presentation in April. Allstate Insurance and Ben Clymer’s The Body Shop teamed up to donate a 2009 Toyota Camry to a Coachella Valley single mother and her young children. PPG

Automotive Refinish donated paint and materials. Vehicle titling and registration services were also donated by 1-800 Charity Cars for these events as well as many other Recycled Rides nationwide.

Participants in the Recycled Rides presentation – Ben Clymer, Jr., recipient Rosa Magana, Palm Desert Mayor Susan Weber, Bobbie Neff of Community Connect, Domenic Brusco of PPG Industries, and Rick Tuuri of AudaExplore, a Solera Company

“Recycled Rides is a life-changing experience not just for the recipient but for everyone who participated and contributed to these vehicle donations,” said Chuck Sulkala, Executive Director of the NABC. “We are very proud that through our Recycled Rides program, members of the National Auto Body Council demonstrate the professionalism and integrity of the collision industry by providing many struggling families with the keys they need to help improve their quality of life.”

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 17

Midwest Associations

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.

ASA-MW Springfield Chapter’s Roundtable Helps Students Prepare for Industry Jobs with Chasidy Rae Sisk

shape the future of our industry,” explains Sheri Hamilton, Executive Director of ASA-Midwest. “This event was a great success! ASA-Midwest welcomed over 40 participants including area industry professionals, educators and local automotive technical students.” The event was divided into two parts: networking and a panel discussion on industry issues. For students interested in pursuing a career in the collision repair industry, the networking portion of the evening provided an opportunity to meet with industry professionA panel of industry professionals answered students’ als. The professionals looked questions forward to meeting prospective the following states: Kansas, Mis- future employees in order to discuss the souri, Iowa, Arkansas, Nebraska, and skills needed to make these students attractive to future employers after graduOklahoma. ation. Because these students represent The event was held at Ozark Technical College in Springfield, MO, and the next generation of automotive servOn Tuesday, April 15, the Springfield Chapter of ASA-Midwest held their annual Industry Professional and Student Roundtable to discuss “Shaping the Future of Our Industry.” ASAMidwest is made up of chapters from

NE KS

OK AR

sionals was also featured during the event. Perrie Stone, owner of Hammer’s Autoworks; Brian Patton, service advisor for Premiere Automotive; Tom Perkins, drivability technician for Rick’s Automotive; Mikey Dailey, drivability technician for Aasby Automotive; Amy Gilbert, co-owner of Go Automotive; and Paula Dillner, owner of Schillby’s

ASA-Midwest looks to the future by providing an opportunity for collision repair industry students to network with future potential employers

Region Covered by ASA-MW with Shop Number Estimates Arkansas — 550 Iowa — 622 Kansas — 597 Missouri — 835 Nebraska — 355 Oklahoma — 575

was designed “to facilitate conversation between the current industry professionals and the future professionals, as well as to discuss the ways current professionals, educators and students can work together to strengthen and

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ice professionals, ASA-Midwest feels it’s important for current industry professionals to mentor and guide them to strengthen and secure the industry’s future. A panel of local industry profes-

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Auto Service shared some of their experiences and answered students’ questions about entering and working in the field. Some of the topics discussed included the future of the industry, what employers look for in future employees, the current direction of the industry, and technological changes. Hamilton states, “These events are important to continue the conversation between industry professionals, to build a community within the organization, brainstorm ways to improve business, support each other, and evolve with technology. This event was again a huge success, and we look forward to continuing the annual event in the future.”

ASA-Midwest 816-781-5801 ext. 101 www.asa-midwest.org

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Quik Video Technology Looks to Target Body Shops by Stacey Phillips, Assistant Editor

A video technology currently being used at dealership service centers could potentially benefit independent body shops and insurance companies, according to the company’s COO Jack Gardner. Quik Video, based in Quincy, Massachusetts, enables technicians to Jack Gardner, COO make and send perof QuikVideo, based sonalized videos to in Quincy, MA their customers via text and email that provide them with a visual on the repairs being recommended. After launching Quik Video in October 2014, Gardner said service managers have found that it has saved them time and money and increased their Customer Satisfaction Index (CSI) scores. “Just as it has increased revenue in the service department it will do the same in the body shop,” said Gardner. “Customers have the same lack of understanding when you explain recom-

mended repairs just like the service department. The customer simply has no frame of reference, but when provided with video proof and an expert analysis from a technician or body shop professional, they understand it.” Although the product is primarily being used at dealerships, Gardner said they are looking at other applications, such as independent body shops and insurance companies. “We feel that insurance companies will embrace the

product as the video means they can approve the repairs in a timelier manner,” he said. “By having video reports, the need to have adjusters visit the body shop several times or at all on a claim is no longer necessary.” He predicts that insurance companies in the United States will rely on video from the body shop, as they have done in the UK, to speed up the ap-

20 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

proval process and increase their CSI. Gardner has worked at all levels of the automobile industry including service, sales and OEMs. He said that over the years he has seen changes from the advent of the internet to the speed at which customers now demand information. While working in Europe, he came across a system at a trade show originally adopted by BBC and the European Commission. It was used by BBC reporters to video news stories when cameramen weren’t available. The European Commission found it was helpful to record video conferences and speeches for viewers who couldn’t attend. “I immediately recognized the opportunity this application would have in the automobile industry, given the lack of trust between the consumer and the dealer,” said Gardener. “Having been part of the industry during this period where the lack of trust was generated I saw this product being key to repairing and enhancing industry relations with the consumer.” He developed a partnership with the manufacturer and worked with

seven full-time programmers to design the system for use in the automobile industry. “We had to devise a manner in which the system was easy

Kevin C., a master technician at Colonial VW in Westborough, MA, is making a Quik Video on a customer’s car after completing a complimentary safety check

to use. It had to be simple and require little or no additional work for dealer staff, and it had to be quick, thus the name Quik Video,” said Gardener. When a customer drops off a car and meets with the service advisor, a video request is created with the repair order number, customer name, email and cell phone number. That information is automatically populated into an Apple iPod located in the service bay. Once the technician is working on the

car, he records his recommendations. It takes a minute and 10 seconds to make and send a one-minute video. A full reporting suite was built into the system so the dealer can monitor and track both increased sales and staff performance. Some of the other features include: automated follow up on declined work, automated appointment reminders, daily, weekly and monthly reports, up sell reports, video proof of

is completed at what Gardner calls the “second opinion location.” “We have proven with our system we can get that approval number of 34 percent up to just north of 70 percent,” said Gardener. He said this is measured by comparing the conversion rates from the prior month and the same month of the previous year. He uses the acronym SUBB – the customer sees it, understands it, they believe it and they buy it.

completed work and video damage assessment on vehicles at check-in. Gardener said they maintain all videos on their servers so a dealer can retrieve prior videos at any time. Gardner said when a multi point inspection is conducted on a customer’s car while in the shop studies have shown that nationally about 34 percent of the recommended repair is converted. The remaining 66 percent

Nigel De Silva, Service Manager at Infiniti of Norwood in MA, began using QuikVideo in October 2014. “We now have a process that has full incorporated video production in our service department and I am happy to report that we are number one in the region across the board, said De Silva. “In an age where technology is constantly evolving, having video in my service department without a doubt

“Just as [Quik Video] has increased revenue in the service department it will do the same in the body shop” —Jack Gardner, COO of Quik Video.

gives me an unfair advantage.” In January 2015, Peter Slota also introduced QuikVideo to his service department. The service manager of Colonial Honda in Dartmouth, MA said he has found that, “It’s making us more money, providing transparency and building trust with our customers and based on the customer response I feel sure we will see an increase in our CSI scores.” QuickVideo has mainly been used in the northeast part of the United States. With a head office in Boston, MA the company recently opened an office in San Francisco, CA and another in Toronto, Ontario, Canada. The company offers a 90-day trial with a money-back guarantee. The monthly subscription rate varies between $795 and $1,295 per month and is based on the number of repair orders. Gardner said that discussions are at an advanced stage with two OEMs in North America to introduce the product to their dealer network. Further plans include opening two new offices in Florida and Texas within the next six months. More information is available online: http://qkvideo.com/

Ford’s Aluminum F-150 Gets 5-Star Crash Test Rating

by Jenna Reed, glassBYTES.com

The first of Ford’s aluminum-bodied F-150 pickups crash test results are out. The National Highway Traffic Safety Administration (NHTSA) handed the 2015 F-150 Supercrew edition a five-star safety rating, the highest possible level. For the frontal barrier crash rating, NHTSA gave the vehicle five stars for both men and women. In the test, the man was the driver and the female was the passenger. NHSTA also gave the vehicle five stars for the side barrier rating based on the results from a frontseat male and backseat female passenger. For the rollover rating, the F-150 received four out of five possible stars. NHTSA gives the model a 19.1 percent chance of rollover. The remaining 2015 F-150 models have not yet been rated by NHTSA. To view NHTSA’s results, visit http://www.safercar.gov/Vehicle+Shoppers/5-Star+Safety+Ratings/2011-Newer+Vehicles/VehicleDetail?vehicleId=9541 Thank you to glassBYTES.com for permission to reprint this article.

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Lead Lawyer for MDL Plaintiffs in FL Discusses New Developments, ‘Bellwether’ Proposal by Stacey Phillips, Assistant Editor

Autobody News recently spoke to John Eaves Jr. of Eaves Law Firm about the recent developments with the antitrust multidistrict litigation taking place in Florida, in which body shops across the country are alleging “steering” and other retaliatory practices by the nation’s top insurers. Eaves is the lead attorney for the plaintiffs on the case: A&E Auto Body, Inc., et al vs. 21st Century Centennial Insurance Company, et al. He said that during their regularly scheduled monthly hearing in May, Florida Magistrate Judge Thomas Smith suggested preparing a “bellwether” case to move the lawsuit along faster. Typically, in a bellwether trial the judge and parties select a representative sample from the parties involved to move the overall litigation toward a resolution. The Jackson, Mississippi-based firm is currently preparing a motion to implement this type of trial. Eaves explained that this often happens in a mass torte case and will speed things up tremendously. After this is imple-

mented, Eaves will continue to file cases brought on by body shops in additional states and a court date will be set. In the meantime, the firm has been collecting affidavits and specific information from body shops and former adjusters across the country to include as part of the injunction they are filing. “We’ve been getting additional details from the shops; those kinds of details that show the collaboration within the insurance industry in order to oppress the shops collectively,” said Eaves. “We are 90 percent prepared to file an injunction to stop the steering and retaliatory practices of those body shops that we represent.” He said that any shop owner or employee that has proof or evidence he or she would like to share can be added to this injunction, whether or not Eaves Law Firm is representing them. “We still want all we can get to make this a clear case to truly show the judge at the next phase what the shops are enduring,” said Eaves. Originally filed in February 2014, the antitrust suits were consolidated in August and

now more than 500 auto body shops in 36 states are part of the multi-district litigation. Earlier this year, Judge Gregory Presnell had dismissed a large portion of the federal lawsuits without prejudice, meaning they can be re-filed. This was followed by a dismissal of cases in Louisiana, Tennessee and Utah in April. Eaves is currently rewriting the lawsuits to include more specific information from the shops. Another recent development occurred in April when defendant Old Republic Insurance Company moved for entry of sanctions, including an award of attorneys’ fees and expenses against the plaintiffs for “…asserting frivolous claims unsupported by existing law and lacking in evidentiary support and for engaging in vexatious litigation for the improper purpose of harassing Old Republic and needlessly increasing the cost of litigation,” according to court documents. In response, the plaintiffs stated that the “Defendants Motion for Sanctions is without legal or factual merit. It is effectively a regurgitation of arguments previously made and already

ruled upon by the Court. The Motion fails to put forward any facts or authority to establish the allegations against Defendant are frivolous. Denied by Defendant? Yes. Frivolous? No.” The plaintiffs went on to request that the Motion for Sanctions be denied. Regarding Old Republic’s Motion for Sanctions, Eaves said “We don’t believe there is any merit. We have a good cause, and a good case and that is a standard defense attorney tactic that’s used. I think you’ll see pretty soon that the judge will not honor that request.” Old Republic is represented by Fox Rothschild LLP and lawyers for the insurance company did not respond for comment. No decision had been made by Judge Presnell as of press time. The next regularly scheduled hearing for the multi-district lawsuit is Friday, June 5. Anyone with information that would like to share with Eaves Law Firm, should contact steve@eaves law.com

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designed to aid the collision repair repin their discussions with NYSACTA and LIABRA resentatives legislators. Before attending their scheduled apmembers’ appointed meetings with pointments, Kizenberger reviewed local representatives and reviewing A2880, an aftermarket parts bill which each group’s lobbying schedule. She would require insurers to disclose the also provided members with lobbying type of parts they pay for to consumers. It would also prohibit the use of anything except OEM parts on vehicles that are two years old or newer. He also discussed A6684, a parts procurement bill intended to prevent insurers from mandating a particular vendor from whom shops can purchase parts and materials. As he discussed each bill, Kizenberger answered members’ questions about the proposed legislation and lobbying. Ed Kizenberger reviews the CNN special with participants Beginning at 9AM, participackets for both themselves and the pants met with local legislators and legislators with whom they met; contheir staffs to teach them about the coltained within each packet were copies lision repair industry and how their of all the bills of concern with supsupport of the bills would positively porting documents and talking points. affect the daily lives of consumers and In addition to briefly discussing each shops. bill, Madeiros offered lobbying advice to aid attendees in their endeavors. The legislators’ lobbying packets contained OEM bulleting, letters from consumers and pertinent news articles, as well as a CD featuring informative videos, including Anderson Cooper’s report on “Auto Insurers Accused of Pushing Cheap and Sometimes Dangerous Re- Pam Madeiros and Ed Kizenberger discuss the pairs.” These packets were associations’ proposed legislation with the group Continued from Cover

Google’s Self-Driving Cars Have been Involved in 11 Minor Not-at-Fault Accidents in Past Six Years

Google’s self-driving cars have been involved in 11 minor accidents over the past six years, the company acknowledged. The cars were being tested on roads and highways in California. According to the Associated Press, Google released the number on May 11, after AP reported the tech giant had notified the state of three collisions involving its selfdriving cars had occurred since September—at which point the permits for testing on public roads required all accidents to be reported. “Not once was the self-driving car the cause of the accident,” Director of Google’s self-driving car Program, Chris Urmson, said in the report. Urmson wrote in a web post

that all 11 accidents involved light damage and did not result in any injury, adding that the incidents occurred over 1.7 million miles of testing, almost 1 million of which were covered in self-driving mode. AP could not verify Google’s comments about the fault and nature of the accidents. According to the report, Google did not release documentation, and the California Department of Motor Vehicles cited confidentiality when approached for details. The agency has licensed 48 of the test cars, AP reports. Nevada, Michigan and Florida have also passed laws permitting the testing of self-driving cars on their roads, according to the report. AP says regulators in these states are unaware of any accidents.

24 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

Responses were favorable with many legislators and their staff due to their own experiences with claims, while others confessed to being completely dissatisfied and disillusioned

members were encouraged to join other members’ meetings if their schedule permitted, Kizenberger, Madeiros, Kizenberger Jr. and Mike Orso, President of NYSACTA, met with the Leaders of the Senate and Assembly, the Attorney General’s office and the NCOIL President. In the morning, Hancock, O’Connell and Stelmokas had an appointment with Assemblyman Murray and Senator Flanagan which resulted in both legislators agreeing to sponsor Attendees meet with Assemblyman Murray who agreed bills A2880 and A6684. Hanto sponsor both bills cock, O’Connell, Stelmokas, with insurers’ tactics that forced them Kizenberger and Madeiros also had a to use aftermarket parts or pay the dif- very productive meeting with Robert ference for OEM parts. Farley, Senior Counsel for Senate MaOne NYSACTA member re- jority Leader Dean Skelos. counts, “As soon as we opened up As the day concluded, participants with a comment regarding a partic- gathered at the Legislative Office ular insurance company’s tactics, Building’s cafeteria where Kizenberger staff members themselves would noted, “Our lobbying campaign was a break into a story of how they were huge success. Support for our bills on given a deceptive referral by their aftermarket parts disclosure and parts insurance company and though they procurement were met with great un‘had to’ go to the insurer’s recom- derstanding and acceptance. In addimended shop.” tion, our meetings with members of the The 2015 Lobby Day was very Attorney General’s office were very productive and successful. While encouraging.”

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Lean Operations

Mastering Implementation with David Luehr

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

Has this ever happened to you? You a well-timed verbal volley that is surely have just returned from an amazing to convince the crew to your way of workshop that gave you a great idea thinking. You offer up all the benefits with Jennifer Driscoll-Chippendale on some new lean concept. Let’s say, of meticulous disassembly, you explain how to meticulously disassemble a ve- that it will make them more money, hicle so that you can capture 100% of and make their lives easier, and then fithe damage at the beginning of the nally they say, “Okay boss, we’ll do it.” process. You are excited because your You have won! You secretly pump shop has been having too many prob- your fist, and then congratulate yourwith Erica lems on Friday afternoons withEversman parts self on your massive persuasion skills! A couple days later you are walkthat were missed on the estimate and this new process of fully disassem- ing around the shop and you notice that bling the vehicle will surely solve one of the cars in the lot still has all the that! All that’s left to do is go back to trim on the blend panel. “Hmmm” you your shop and announce to your staff wonder? Then you see a technician perthat this is how we will be performing forming a plastic repair on a bumper, with Ed Attanasiobut all the grills and fog lights are still in “teardowns” from now on. However, as you explain the new it? “What happened” you think to yourself, “I just got through telling these process to your crew that morning, instead of excitement you are instead met guys to do a meticulous disassembly with resistance. “I don’t know boss, I and only two days later they seemed to don’t think we have the time!” or “If have completely forgotten my eloquent we take the car apart like Ed that,Attanasio we won’t speech!” What happened? with The answer to this question is remember how to put it back together!” So without hesitation, you counter with significant indeed! Learning how to

The Legal View

motivate and enable people to change their actions is likely the most important skill one can acquire. I am not talking about cheesy persuasion tech-

The Legal View

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niques, I am talking about understanding the forces that have been used for both good and evil that have both shaped our world or simply allowed leaders to overcome resistance in collision shop change initiatives or implementations. Truth be known, most of us are

only familiar with one method of influence, our mouth. Verbal persuasion is the most popular form of influence because it’s convenient and it actually works a great deal of the time. At least with easy stuff. For resistant problems and resistance to change, verbal persuasion rarely works! Whenever someone is asked to do something, there are only two basic drivers used to decide whether it gets done or not. 1. Can I do it? (Do I have the ability?) 2. Will it be worth it? (Am I motivated?) To address these drivers there are six sources of influence that are either working for you or against you. The book “Influencer” by authors Grenny, Patterson, Maxfield, McMillan, and Switzler gives the reader an amazing look at how these six sources of influence have been used by influence masters to overcome some of the world’s most pervasive problems. Here are the six sources, but as you can imagine there is not room in this article

to discuss all of them. I recommend you pick up a copy of this book, but to give you a small taste of its content, we will take a brief visit to Source One – Personal Motivation. How do we make the undesirable desirable? Your “yes” means nothing if you can’t say “no.” There can be no commitment if there is no choice.” - Peter Block When you force someone to say yes to your attempts to sway them by using techniques such as nagging, begging or using your authority, you may indeed get a yes, but not the kind of yes that will get you lasting change. For someone to fully buy in, they must have the opportunity to decide for themselves. So how do you do that and in turn make what seems undesirable more desirable? When it comes right down to it, we often want the same things. We may have opposing views of how to achieve it, but when it comes to the final result of the change initiative we usually all want it. The problem when it comes to ordinary verbal persuasion methods, is that the whole time we are talking and forming your arguments, the resistant audience is not really listening to you,

because they are busy unconsciously forming their own counter-arguments. When you say “Hey guys I figured out

a bunch of extra free stuff in another weak attempt to make the owner rich!” A technique that works quite well

a way we can streamline our processes and make more money doing it!” They instead hear, “Hey indentured servant, I have figured out how to make you do

is what therapists have been using for years called Motivational Interviewing. Assuming you have a level of trust established, you can sit down

with your resistant body man and explain to him that our goal is to eliminate the missed parts problems that we are plagued with. I am pretty sure he won’t argue with that! You now have a common goal. You then ask him how the problem affects him. Ask, “What do you think are the benefits of changing?” By engaging your people in discussion where they feel they can contribute to solving the problem, they are much more likely to not only agree to the change, but to help design how it will take place. I hope that this article gives you the comfort in knowing that you are not alone in your challenges to create lasting change and successfully implement better processes in your shops. Methods such as lean have been around for quite a while, but unfortunately only a few lucky ones have figured out how to have real success with it. By learning modern leadership skills such as communication and influence strategies you too can become an Implementation Master. If you would like help implementing, learning the six sources of influence or any other leadership skills, please contact me at david.luehr@elite bodyshopsolutions.com for a free no obligation consultation.

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 27

Butler, PA Veteran Benefits from ‘Recycled Rides’ by Rick Wills, Pittsburgh Tribune Review

Jessica Watkins walks a mile to work each day and relies on rides for trips to the supermarket or doctor’s office. Unless she wants to, she won’t have to walk or be dependent on others for much longer.

On May 16, the Air Force veteran and Butler resident was to receive a free, refurbished 2013 Ford Explorer. Renovated by Randy & Bob’s CARSTAR, a Chicora, PA body shop, the car is a gift made through the National Auto Body Council’s “Recycled Rides” program. “It’s kind of surreal. It’s the last thing I expected. It’s really a great help,” said Watkins, 37, a Harmony native who moved back to the area in February after serving 18 years in the

Air Force as a dental assistant. The Recycled Rides program enlists insurers, body shops, paint suppliers, parts vendors and others to repair and donate vehicles to people and service organizations. Since its inception in 2007, about 1,000 people such as Watkins have received autos. MetLife Auto & Home of New Hampshire donated Watkins’ SUV. The Auto Body Council, Center for Community Services in Butler and Randy & Bob’s picked Watkins as the recipient.

Watkins ran into some bad financial luck after leaving the Air Force last year. She headed to New Mexico, where she’d been offered a job, but it didn’t work out.

The refurbished 2013 Ford Explorer that Air Force veteran Jessica Watkins of Butler will receive for free through the NABC’s “Recycled Rides” program

Jessica Watkins walks a mile to work each day and relies on rides to go to the supermarket or doctors office

“We were looking for a veteran. She fit the bill, and we are happy to help her,” said Natalie Butcherin, marketing manager for Randy & Bob’s.

“It wasn’t what it was supposed to be,” said Watkins, who now works in Butler helping give hearing tests to people. She returned to Butler County in February, just before her car was repossessed. Public transportation is scant in the area. “Everyday simple things like groceries are so much harder to deal with when you have no car,” she said.

Watkins, who graduated from Seneca Valley High School in 1996, is a mother of four. Her youngest son, Darryl Ray, is 2 and has asthma. He will be seeing an asthma specialist in Monroeville. “That trip would also be impossible without a car,” Watkins said. Having no vehicle makes it harder for Watkins’ husband, James Watkins, to find work and would make it almost out of the question to have her three older children, who live in Virginia, stay with her this summer, as she’s planning. Jean Bowen, director of the Center for Community Services in Butler, called Watkins an ideal beneficiary of the program. “As a young mother, she values having a reliable means of transportation for her to maintain her employment, but also to support the needs of her family,” she said. Thank you to the Pittsburgh Tribune Review for permission to reprint this article.

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Continued from Cover

Largest Recall

the inflator to rupture and sends metal shards into the passenger cabin that can lead to serious injury or death. There have been over 100 injuries linked to faulty Takata airbags. Secretary Foxx announced that the NHTSA issued a Consent Order to Takata. The Japanese manufacturer stated in a May 19 press release, “Under the Consent Order, Takata also has agreed to continue to cooperate with all future regulatory actions and proceedings that are part of NHTSA’s ongoing investigation and oversight of the Takata airbag inflators and accompanying remedial actions, continue to respond to all NHTSA information requests in a complete and timely fashion, and continue to provide NHTSA with all test results and data related to Takata inflators, among other provisions. While the Consent Order does not release Takata from potential civil penalties, NHTSA will not seek any civil penalties demanded under its letter dated February 20, 2015, beyond those that may be applicable before

May 18, 2015. Under the Consent Order, NHTSA will take into account Takata’s cooperation in seeking any civil penalties against Takata in the future. Takata will work with its automotive customers to develop plans for reaching out to vehicle owners in order to maximize recall completion rates.” In addition, NHTSA announced its intent to begin a formal legal process to prioritize the replacement of defective Takata inflators under the agency’s legal authority. “Today is a major step forward for public safety,” Secretary Foxx said. “The Department of Transportation is taking the proactive steps necessary to ensure that defective inflators are replaced with safe ones as quickly as possible, and that the highest risks are addressed first. We will not stop our work until every air bag is replaced.” According to a May 19 New York Times article, prior to recent investigations, the NHTSA had been criticized by lawmakers and safety advocates as being “too lax” on the industry. Back in 2009, the agency opened an investigation on Takata airbags that lasted for only six months due to “insufficient evidence.”

30 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

The New York Times article credited the NHTSA’s new found vigilance with the appointment of administrator Mark R. Rosekind. “The steps we’re taking today represent significant progress toward that goal. We all know that there is more work to do, for NHTSA, for the auto makers, for parts suppliers, and for consumers,” said Rosekind. “But we are determined to get to our goal as rapidly as possible.” It is expected that the service order of the vehicles will be based on which airbags hold the greatest risk of unsafe deployment, based on age and geographic location. In the New York Times article, Rosekind stated that consumers could still drive their cars in the meantime, considering it could take several years until all repairs are completed. “Although Takata has devoted tremendous resources to these efforts with some of the leading researchers in this field worldwide, including Fraunhofer ICT, it is clear that this is a complex issue which takes time to fully evaluate,” Takata stated in a May 19 press release. “The analysis to date suggests that the potential for this long-term phenomenon to occur was

not within the scope of the testing specifications prescribed by the vehicle manufacturers for the validation and production of the subject inflators as original equipment.” The Department has established a new website, www.SaferCar.gov /RecallsSpotlight, to provide regular updates on the status of this and other recalls and of NHTSA’s investigation. “With the summer season approaching, we are reminded that 33 million Americans will be hitting the roads in their vehicles for Memorial Day travel and as time passes more motorists remain at risk from the faulty air bags that have been linked to at least 6 deaths [worldwide],” stated Doney in a May 19 press release. “Motorists’ safety is a national issue that is not confined by regional boundaries and should take precedence over profits.”

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PPG Show Truck Gets a Bold New Look

PPG Automotive Refinish has repainted its popular show truck. The truck, a 75-foot 2016 Freightliner Cascadia tractor-trailer rig, now features a red, white and blue paint scheme reminiscent of the stars and stripes of the American flag. “The PPG show truck represents our company wherever it travels,” said Cristina Fronzaglia-Murray, Manager of Marketing Communications, PPG Automotive Refinish. “We

PPG’s 75-foot 2016 Freightliner Cascadia tractor-trailer show truck was recently repainted

wanted it to be an absolute showstopper, one that clearly displays what our products can do. We also wanted the paint scheme to recognize and celebrate the freedom we have in this country—from the ability to pick the cars we drive to the color and paint we choose for them.” Steve Breakfield and the team at Motorhead Racing and Design Co., Charlotte, N.C., came up with the design. Gerber Collision & Glass in

Grand Rapids, MI, was awarded the refinish project. Led by fleet operations manager Fred Honoré II and Chris Hansen, General Manager of the company’s Grand Rapids truck location, the crew stripped and sandblasted old paint off the trailer before using several premium PPG DELFLEET® Evolution products including F3995 Epoxy Primer, the FBC Basecoat System and F3921 2.1 VOC Clearcoat to achieve the bright, colorful finish. “We were privileged to be a part of this,” said Honoré. “To be chosen by PPG to paint its show truck, that’s a real honor. This is the kind of thing you tell your grandkids—that your work was respected enough by your paint supplier that they trusted us with a job as important as this. We loved painting this truck.” Veteran PPG driver Chad Hook will drive the truck, which has a brandnew cab tailored to his requirements, to major custom car and truck shows sponsored by the Goodguys Rod & Custom Association, the National Street Rod Association (NSRA) and other automotive enthusiast groups. For a schedule and more information about PPG Automotive Refinish products, call (800) 647-6050 or visit www.ppgrefinish.com.

Nevada Employment Bill SB224 Pending Vote by State Assembly by Stacey Phillips, Assistant Editor

In Nevada, an employment bill is pending a vote by the State Assembly after being amended and passed out of the Commerce and Labor Committee on May 13. First introduced March 6, Senate Bill 224 addresses certain factors to determine whether an individual is considered an independent contractor or an employee. Originally heard on March 9 by the Senate Commerce, Labor and Energy Committee, the bill was voted on April 3 and passed out of the committee to the Assembly Commerce and Labor Committee where it was first heard on March 6. The Nevada Constitution defines how an employee is classified and requires employers to pay a minimum wage to each employee. Bill SB224 states that a person is considered an independent contractor if certain conditions are met. Some of these include:

● the person possesses or has applied for an employer identification number or social security number or has filed an income tax return for a business or

earnings from self-employment with the Internal Revenue Service in the previous year; ● the person is required to hold a business license; and ● the person satisfies three or more of the following criteria: the person has control and discretion over the means and manner of the performance of any work and the result of the work; the person has control over the time the work is performed; the person is not required to work exclusively for one principal; the person is free to hire employees to assist with the work; and the person contributes a substantial investment of capital such as ordinary tools, material and equipment. A copy of Bill SB224 is available online: http://www.leg.state.nv .us/Session/78th2015/Bills/SB/SB22 4_R1.pdf The legislative session ends on June 1. Autobody News will continue to follow this story and report on the result of the vote by the Nevada Assembly.

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Lawsuit Filed Against G&C Auto Body Cites Unfair Business Practices, G&C Responds ‘No Merit’ by Stacey Phillips, Assistant Editor

Seven California auto body repair technicians have filed a lawsuit against G & C Autobody, a medium-sized MSO based in Santa Rosa, CA. The plaintiffs claim they were misclassified as independent contractors by the company and allege a violation of the CA wage and hour laws, unfair competition and unfair business practices. Joseph Lippard and Vaughn Medeiros filed the original complaint in the Superior Court of California County of Sonoma on March 17. They both worked at G & C as automotive technicians at the company’s Santa Rosa location. Since then, an additional five former G & C workers have joined the case, all alleging they were misclassified as independent contractors: Phil Bill, Jeff Edwards, Luis Mata, Jose Sanchez and Scott Steiner. According to the complaint, “Unlawful and unfair business practices included the failure to pay earned wages including overtime wages; the imposition of paycheck deductions and paybacks to Defendant from its workers for routine and ordinary business expenses for its automotive technicians’ shop space, equipment and other overhead costs.” “The case is essentially challenging G&C’s long-standing practice of misclassifying all of their autotechs, the guys who do the body repair work and painting, as independent contractors under the law,” said Jeffrey Beeson of Beeson Terhorst in Santa Rosa, CA, who is the lead attorney for the plaintiffs. “Our position is that they should be classified as employees.” When they were hired, Beeson said his plaintiffs were told they could set up their own businesses; however, their lawyer said there was nothing closely resembling an independent business. “All of the economic realties of the plaintiff’s working relationship with G & C and their continued, ongoing dependence on G & C Auto Body as their sole source of income, demonstrated an employment relationship,” said Beeson. According to the complaint, the plaintiffs only provided automotive repairs for G&C customers, had virtually no contact with them and had no customers of their own. “This is completely contrary to G&C Auto Body’s fiction that plaintiffs ‘ran their own business.’ They had no

customers other than those of G&C Auto Body and when they brought in a customer, G&C Auto Body made the assignment of the work, set the labor rate and amount to be charged and collected the payment from that customer. In short all customers were G&C Auto Body customers,” the lawsuit states.” In addition, Beeson said the shop purchased and supplied all of the parts, materials and supplies used in their work, determined which part would be installed on a customer’s car and controlled the details on how the work was performed and when it was completed. “Even though G&C required the plaintiffs pay weekly ‘rent’ for their work stall, G & C prohibited the plaintiffs from performing work for customers other than G & C customers at their workspace at the G & C shop,” said Beeson. The plaintiffs allege that “G&C Auto Body created an elaborate fiction in order to convince the employees they were independent contractors.” Although Lippard and Medeiros acknowledge signing documents saying they were independent contractors, they say they were in fact standardized forms used by the defendant when hiring auto body repair technicians. “…these statements were belied by actual practice,” the complaint states. “In fact, these statements were but thin veneers designed to gain advantage over the worker and gain a significant competitive advantage over other auto body repair shops.” Beeson said that as far as they have determined, G & C is the only repair facility in the area that classifies their technicians and painters as independent contractors. Founded by Gene Crozat in 1972, the family-owned and operated business has nine auto repair facilities in Northern California; Fairfield, Novato, Petaluma, Rohnert Park, San Rafael, Santa Rosa, Ukiah, Vacaville and Windsor. “No one else does it like G & C and its practices are contrary to industry practice,” he said. The plaintiffs claim that the “Defendant intentionally and unlawfully misclassified its automotive repair technicians performing auto body repairs as independent contractors to evade its obligations under California’s employment laws.” According to California Labor Code, any person rendering services for another is an employee. Labor Code 3351 states that an employee is “every

32 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

person in the service of an employer under any appointment or contract of hire or apprenticeship, expressed or implied, oral or written, whether lawfully or unlawfully employed.” Beeson said that by classifying them as independent contractors, the company did not have to take out paycheck deductions, pay business expenses, social security, payroll taxes, Medicare or cover them under workers compensation for any job injuries. They also did not have to pay for overtime, breaks or anything else California law requires of an employer. The plaintiffs said they were required to pay for all of their own mandatory I-CAR training, their own tools and any helpers G & C required they hire, supervise and train. “G & C frequently then hired away these socalled ‘helpers’ after they were trained by the plaintiffs and made them G & C employees or contractors, thereby saving all the hiring and training costs,” said Beeson. He said that by not having to pay overtime, there were enormous costsavings for G & C, in the millions of dollars. Scott Steiner, the largest pro-

ducer at the Santa Rosa shop, worked between 3,393-3,575 hours per year – all for G & C. He and the other plaintiffs averaged 65-70 hours per week, Monday-Saturday, including holidays, 52 weeks a year. “Many worked after suffering onthe-job injuries for which there was no workers’ compensation coverage,” said Beeson. For example, Lippard injured his leg at work and continued working while in a wheelchair. “One G & C manager then told him if he got injured again he would be fired,” said Beeson. “If they had been paid overtime pay as the law required, they would have earned substantially more income.” Beeson said, “the pay appeared great on the surface because lump sums were paid with no tax withheld. Yet once plaintiffs stepped back and looked at their excessive work hours and did some calculations they realized if they had been treated as employees, their compensation and employment conditions would have been significantly enhanced.” Beeson also said they were never paid for all of their hours worked and

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“G & C regularly dumped work assignments on the techs for which they got no pay at all.” He said many were left with large tax liabilities they did not anticipate or understand. He said Lippard never had take home pay of $350,000 (see accompanying sidebar p. 10) “This gives them a huge competitive advantage over other auto body shops and we allege in our case we think it’s an unfair business practice in California to engage in these kinds of tactics,” said Beeson, who has covered labor law for 33 years. “We’re seeking to have our clients be given all of the wages and overtime pay, premiums for meal breaks, rest breaks that they weren’t given for four years, which is the statute of limitations,” he said. “We’re seeking to have them classified as employees and then G&C to pay them the money they would have been paid if they had been classified as employees.” According to the complaint, G&C employed approximately 50 workers in 2012 that it classified as independent contractors. There were between 15-20 automotive technicians at its Santa Rosa location, some See G&C Responds, Page 35

G&C Attorney Daniel Beck Responds to Charges by Ed Attanasio

them time and time again. Their company names were

Daniel Beck is the attorney defending G & C Auto

etc.—and they had the ability to hire people to assist

Santa Rosa, CA. When Ed Attanasio spoke to Beck re-

had individual business licenses that were issued

Lippard Enterprises, Vaughn Mederios Auto Body,

Body and is the managing partner of Beck Law, P.C. in garding the charges against G&C Auto Body, Beck

said he is confident that the shop can successfully de-

them in the repair jobs, and several of them did. They through cities in which they were operating; and they

used all of their own tools, materials and equipment in

fend this action, as the plaintiffs have not suffered any

repairing vehicles at G&C Auto Body. They were small

plaint.

rest of the company.

financial damages as they are alleging in their com-

“This is a case of unbridled greed. Five former in-

businesses operating completely separate from the

The plaintiffs are now trying to take advantage of

dependent contractors claim that they were employees

the new trend in litigation; labor cases alleging mis-

independent contractors operating their own busi-

overtime. In the case here, the Plaintiffs and claimants

of G&C, although they knew very well that they were nesses. Each one of the plaintiffs/ claimants signed

contract agreements each year they were contracting

with G&C, stating and confirming that they were independent contractors and not employees. There were

no gray areas there, and their roles were spelled out to

classification and then damages for unpaid breaks and should not be allowed to reap the rewards of having

their own businesses, and then later claim they are entitled to any unpaid wages, and compensation for

missed lunches and breaks. In fact, when they were

contracting for G&C Auto Body they were making way

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more than they would have as an employee of G&C.

(ABRN) titled “Outspoken Entrepreneur Succeeds by

during several of the years for which he worked with G

written about G & C Auto Body and its owner Gene

Joseph Lippard made more than $350,000 annually

& C, and the other plaintiffs all made much more than

they would have made as employees.

The plaintiffs in this case want to get paid twice.

They were already paid handsomely for their work and

now they want to “double-dip” for money they have al-

ready received. Based on the evidence that we have, we’re fairly confident that any judge and jury will be

able to see that their case has no merit, there are no damages, and the plaintiffs/claimants are greedy by

trying to take advantage of a successful business.

Joseph Lippard worked with G&C Auto Body for

seven years, and he often bragged to people that being an independent contractor allowed him to make more

money, while controlling his hours and income without

the restrictions of being an employee, according to Beck. In September 2011, Joseph Lippard provided

comments for an article in Auto Body Repair News

Continued from Cover

G&C Responds

Stressing Excellence and Value” by James E. Guyette,

as independent contractors and others as employees. Beeson said that over the years the company has arbitrarily changed its classification of automotive technicians from employees to independent contractors and independent contractors to employee status with no changes in their job duties, work location or working conditions. “For example, Medeiros was at one time categorized as an employee and then was re-categorized as an independent contractor with no change in his essential work duties,” said the complaint. “Bigger shops like G&C are taking over the mom and pop smaller shops. This is all part of it. They save millions of dollars by not having to pay all of the compliance requirements for employment law that all of their competitors do,” said Beeson. “They should be treated as employees and given all of the protections of employees under California law.” The case is set for trial September 15, 2015. Autobody News will continue to report on its developments.

Crozat. In that article, Joseph Lippard confirms he is

an independent contractor and that he is the owner of Lippard Enterprises. Lippard has had as many as six people working for him within the facility, where he

rents two stalls. Some crews work day and night on

big jobs. According to Lippard, he was very happy as an independent contractor, and he claimed “I never want to work hourly again,” acknowledging that he

grosses $4,000 to $6,000 a week in the ABRN article. On April 14, 2012 Joseph Lippard posted on

Facebook: “…Another Saturday at the shop!!! I love having free reign to work as much as I can!!!”

Actual damages are paid for actual losses, but

these plaintiffs lost nothing. In fact, they made many

times more than what they could have possibly made as

employees of G&C, and they enjoyed the lifestyle that

came with owning and operating their own businesses.”

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Automotive Art Refinish System Comes to the U.S. by Chasidy Rae Sisk

Some collision repair facilities in America may be noticing a new option in the selection of refinishing systems—Automotive Art has begun distributing their European paint line in U.S. markets over the past couple years. Glenn Camacho, President of Logicar, Inc., the company that distributes Automotive Art, states, “For the past ten years, we have been operating on the doorstep of one of the largest refinish markets, North America, and exporting to over 30 countries from our Miami distribution center. During this period, we have been restricted from selling our product in the U.S. due to licensing agreements with our primary factory, but a couple years ago, we acquired a stake in a European factory which opened up the ability to supply to the North American market.”

of products using world class technologies to target the industry’s value segment, while delivering high quality refinish results. Automotive Art’s website boasts that they are “one of Caribbean’s best recognized brands with a reputation for high-quality products at exceptional prices;” however, “our brand and product line is new to the U.S. market, as we introduced the current Automotive Art product line to the U.S. market two years ago,” Camacho notes. The Automotive Art Refinish System was developed to offer body shops a complete line, from fillers to topcoats, of high-quality products under one brand, and factory testing ensures they achieve their mission of ensuring that all of their products work well together to achieve perfect results. Their world-class color documentation includes tools for accurate color matching, while their color for-

vestment in equipment or training,” Camacho explains. “In summary, we offer a compliant basecoat system that

Automotive Art booth at NORTHEAST 2015

shops will not need to change when legislation changes in their market, which enables large and small shops to save significant money AND get a superb refinish results. Our state-ofthe-art chromatic colour tool offers a best-in-class colour matching solution, while saving valuable time for our customers. Finally, our customers enjoy being vested in a truly comprehensive product range that boasts a line-up that starts from Body-Fillers through to Top Coats, which results in

better overall performance.” Furthermore, Camacho believes Automotive Art’s customer philosophy is different because, “We do not buy shops and lock them into contracts with high prices. We want our brand to deliver value to our customer’s operations, allowing them to save money while delivering world class refinish results. In so doing our experience has been that we make our customers more profitable and competitive, and create true ambassadors for our brand, because their shops will save multiple times any upfront money given by the big brands over the course of the contract that they are locked into. We want our customers to use our products because they believe in the value and performance Automotive Art delivers; we don’t want to buy their loyalty, we want to earn it.” Camacho encourages anyone interested in learning about or switching to Automotive Art to contact them at See Automotive Art, Page 43

• We are the authorized insurance vendors for the AASP/Alliance of Automotive Service Providers of NJ. • Call us for competitive quotes. • Member only dividend & discount programs. Camacho answers questions about Automotive Arts at NORTHEAST 2015

Automotive Art is expanding throughout the U.S. and Canada, and their current focus is on the California market. They are achieving this expansion “by opening jobbers and giving them protected areas of distribution,” Camacho explains. They have also appeared at industry events to promote their refinishing line; in March, Automotive Art exhibited at AASP-NJ’s 2015 NORTHEAST Automotive Services Show. Their booth allowed Camacho and others to demonstrate the product’s usability and superior color matching technology. Automotive Art was founded in 1990 in Barbados, supplying the Caribbean market with the latest in European automotive paint. The company began as a distributor of Glasurit Refinish systems, but their founders saw a need to develop a complete line

mula retrieval software provides a listing of all vehicle manufacturers’ colors, and contains scale interfaces to ensure perfect color mixing in both their low-VOC and standard basecoat systems, along with a full line of ancillaries. The company also boasts minimal start-up costs, full technical support and in-depth product training. Camacho believes that Automotive Art distinguishes itself from the competition because, “We provide a European high-quality, low-VOC solvent basecoat refinish solution that is superior to what our competitors offer, that is positioned to deliver significant value compared to the established Abrands, while being competitive with value brands in the market. Since it is low-VOC solvent-based, it is very productive over water-base products, and shops do not need additional in-

38 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

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

resqme™ Vehicle Escape Tool and Related Products Have the Potential to Save Lives with Ed Attanasio

Body shops and the collision industry in general have taken on the role of imparting useful safety information to its customers. If you’ve ever read a body shop blog, you will often find short posts like Leaving Kids Alone in Cars-Know the Risks and Consequences; I Put the Wrong Fuel in My Vehicle! What Should I Do?; Tire Safety Tips and 3 Misconceptions about Passing on the Road, for example. But isn’t there a conflict of interest there, because body shops make money when people get into accidents, right? Bruce Miles, a blogger for the collision industry disagrees. “Not really, because we know that people are going to get into accidents every 9–10 years like clockwork and that’s something we can’t control, like the weather,” Miles explained. “But, we don’t want drivers to get into bad accidents, because then obviously the cars will likely be totaled out by the insurance companies. And if the accident is fatal, well we want to help people to avoid that at all cost. So offering its customers simple common sense safety tips to avoid those big crashes is something the industry can do and should do, in my opinion.” So, knowing that automotive safety is an important thing that body shops want to convey in their blogs and part of their overall message to consumers, I was intrigued when I encountered a company called resqme™ at the NADA Exposition in San Francisco, CA. a few months back. Located in Santa Barbara, CA, resqme invented and produces the resqme tool, a device that saves drivers’ and passengers’ lives worldwide. This device was recently featured on 20/20 and the Today Show, as well in publications such as Autoweek, Consumer Reports and Popular Mechanics. More than 3 million drivers worldwide own one and now car dealerships, repair facilities and other automotive-related businesses are either giving them to their customers free or offering them for sale. What exactly is the resqme tool and how does it save lives? It’s a window-breaker and seat-belt-cutter—an emergency tool for the safety

of any driver. In the event of an emergency and possible vehicle entrapment, the resqme tool holds a sharp blade to cut a jammed seatbelt and a spring-loaded spike to shatter the car window. Designed in 2003, the resqme emergency escape tool has now saved more than 35 lives and probably more that have never been reported. After identifying a need for a portable and compact version, the resqme tool was developed and is now manufactured in the United States and distributed worldwide. Just last year alone, this amazing tool saved 16 lives, including three in submersion accidents: 10 in situations in which young children were trapped in a vehicle with the keys inside and three more rollover accidents where people were hanging upside in their vehicles. Autobody News recently sat down with Laurent Colasse, the inventor of the resqme tool and the president of this 12-year-old company. “We’re proud of the resqme tool, because obviously we’re making a change and people can see that it’s saving lives,” Colasse explained. “People have escaped fires, rollovers, children locked in a hot car and of course submersions. Prior to the invention of this tool, people were basically helpless, but now this device gives them a chance to make it out alive. They’re great for car dealerships and automotive repair businesses and for a nominal charge we can put their company name on the side of the device.” The resqme tool became a national story after Ashley Neufeld, 21, along with two other friends from Dickinson State University in North Dakota died in a tragic accident in 2009. Their SUV crashed into a farm pond in Stark County, ND, and submerged with the three young women still inside who were unable to escape. As a result, in honor of Ashley, a foundation was created to raise funds with a customized resqme tool with her name to benefit local sports and also to help promote safety against car entrapment. “Knowing Ashley, it was an opportunity to provide a tool to a bunch of people, so that possibly it

40 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

would never happen to another family,” said one of the foundation’s initiators. This fundraiser was an unexpected success and quickly became an overwhelming experience as a pure expression of amazing solidarity in the community of Brandon, ND where Ashley grew up. Several thousand resqme units with the name Ashley Neufeld have been sold raising more than $56,000 to date. In addition to the resqme tool, the company also manufactures several other lifesaving devices, Colasse said. “We want our products to become a lifestyle for people who are socially responsible and want to stress safety for themselves and the people around them. That’s why we’re always looking to inventing other tools like the resqme original keychain car escape tool.” Other products designed and sold by resqme include:

alertme™ Lifesaver Alert: About the size of a bluetooth earpiece and lightweight, less than an ounce, the alertme™ is the latest and safest lifesaver electronic device that helps prevent accidents caused by falling asleep behind the wheel. Its ergonomic design makes it very comfortable to wear and improves your vigilance on the road. protectme™ Pepper Spray: A handheld aerosol canister with maximum strength & UV marking dye that sprays an irritating formula in the eyes, nose and mouth of a person threatening your personal safety. In response to their customers’ demands, resqme, Inc. has opted to co-brand with Sabre Red by offering the best compact pepper spray in the market place. The protectme™ pepper spray is an effective means of nonlethal self defense for people concerned with safety and security. Used by police departments, security agenSee Vehicle Escape Tool, Page 42

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 41

I-CAR® Announces Launch of Next Round of Website Improvements, Including Class Registration Process and New Shopping Cart I-CAR®, the Inter-Industry Conference on Auto Collision Repair, announced the launch of a second phase of website upgrades designed to improve the user experience and the class registration process through its customer login portal, myI-CAR. Among these enhancements is the debut of a redesign to the company’s online shopping cart. The new, enhanced shopping cart was created to address industry feedback and customer requests for a simpler, more accessible way to register for classes and to self-sufficiently manage training at both the individual and organizational levels. With this feedback in mind, I-CAR redesigned its entire checkout process to empower users to make informed decisions regarding their training and manage the registration process from start to finish. Features and benefits of the new shopping cart include:

Easier class registrations ● I-CAR has cut the number of steps to register in half, creating a faster and simpler class registration process. A sleek new interface ● The shopping cart has been visually

upgraded with a new, design that is now compatible with mobile devices so customers can register on-the-go.

Smarter shopping ● A new save feature allows customers to save their shopping carts for later checkout, allowing customers to start, pause and resume transactions at their convenience. ● A redesigned legend and helpful tips help guide customers through the registration process, ensuring that everyone has the information needed to make informed decisions about their training.

Strengthened security ● I-CAR has put further measures in place to protect customers’ information in order to provide the most secure checkout possible. In addition to the improvements made to the shopping cart, I-CAR also

unveiled a redesigned login page and new user registration process as part of its ongoing commitment to serve the industry through advancements in digital technologies. This new wave of digital enhancements comes less than nine months after the I-CAR website, www.i-car.com, was redesigned to provide the industry with a comprehensive, easy-to-use online resource for collision repair education, knowledge and solutions. John Van Alstyne, I-CAR CEO and President, emphasizes that the latest enhancements to myI-CAR reflect the growing level of importance ICAR places on improving service to the industry and embracing technology as a means to this end. “Our industry faces endless challenges to keep up with the constant flow of new automotive technologies that are developing at a rapid pace. The best way to support the industry through these challenges is to provide access to timely and relevant information by ensuring that our website and portal tools are best in breed incorporating the latest user friendly features and technologies.” For information, visit www.icar.com.

Continued from Page 40

Vehicle Escape Tool

cies, and individuals concerned with security and self defense. prepareme™ Lifesaver Kits: All kits come with a combination of basic first aid and some safety tools including the award winning resqme tool available in all styles. The kits are designed for drivers, parents, hikers, etc. around the globe to be prepared for most any emergency situation. Each kit has a unique combination of tools to allow for a wide variety of protection and preparedness. defendme™ Personal Alarm: This self-defense tool allows the user to sound a 120db siren when threatened by anyone and can be carried easily on a keychain, backpack, etc. If you’re interested in purchasing resqme devices with your shop’s name on them, you can find out more about this amazing life-saving device, go to: www.resqme.com. If you can help to save just one person’s life with this device, why not?

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Automotive Art

their toll-free number. “We have several programs to assist shops in setting up Automotive Art in their shop and in training their staff, and we will identify a jobber in their region that can supply their needs. Since our system is a user-friendly, solvent basecoat system and we offer superb colour tools to get the right colour match, the conversion is quick. A shop can be up and running with our new system in only a couple days.” So why would you consider switching to Automotive Art’s line? According to Camacho, “Our brand delivers colour matching solutions that rivals those of the big A-brands, while delivering outstanding refinish results, saving our customers money, AND making them more competitive; surely this promise is one worth looking into?”

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Axalta Launches OnlineLearning Training Campus

GM Reaffirms Commitment to Launching MyPriceLink

To keep pace with changing customer demands and expectations and in anticipation of future trends, Axalta Refinish Training is launching the Axalta Learn-

GM announced on May 12 that the company is still committed to its collision parts initiative, MyPriceLink. MyPriceLink is a free automated “real time” pricing program devel-

ing Campus in North America, a new way to access training content and track progress. The Axalta Learning Campus will provide learners with the ability to register for traditional Learning and Development Center classes as well as provide links for eLearning, quick tiptype videos, webinars and more. It will also enable learners to select the content that is most important to them. The Axalta Learning Campus can be accessed at axalta.us website, under Products and Customers > Training or directly by logging onto http://www.axaltalearningcampus.com. Once on the Axalta Learning Campus, participants can create personal profiles and select the classes and eLearning modules for the products they use.

oped by GM that provides Genuine GM collision parts to the market that are priced up-front during the initial repair estimate. In November 2014, GM announced the implementation of MyPriceLink. A week later, the company delayed the launch based on industry feedback and said it was going to work on enhancing and streamlining the workflow for all collision industry partners. Since then, the company has gained feedback from industry players including the GM Dealer Network, information providers, dealer management systems, independent

body shops, collision associations and insurance providers. In addition, GM has been working with industry estimating suppliers such as AudaExplore, CCC Information Services and Mitchell International to integrate with MyPriceLink. In the interim, GM has continued to publish list prices for collision parts. The company said the next step prior to launching the product is a market test planned at various locations this summer. “We are taking this step to ensure MyPriceLink, when launched, will be an integrated technology solution that the collision industry will be able to use with minimal disruption to their existing workflow,” GM said in a press release. “GM appreciates the industry interest and support MyPriceLink has received and looks forward to announcing the official industry launch of MyPriceLink in the near future,” the company added. “GM is committed to improving and streamlining processes that allow us to provide our customers with original parts, ensuring proper fit, function, safety and appearance, and returning their vehicle to pre-accident condition.”

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 43

Turbo Charge Your Dealer Body Shop ROI—Dashboard the KPIs by Steven Feltovich, Manager of Business Consulting Services, Sherwin-Williams Automotive Finishes Corporation

Why are key performance indicators vital signs that clearly display whether your business is performing or failing? Key performance indicators (KPIs) are the gauges on the dashboard of your business. They provide the information necessary to identify changes or problems that can impact the business’s performance. Key performance indicators are quantifiable measurements which should reflect the critical success factors of your business. Many facets of your business are measurable; however, because an area can be measured does not define that specific area as a KPI. Areas can be delineated as KPIs if, and only if, they qualify as having the single most important attribute of a KPI— they can be directly linked to the success of the organization. It may be necessary to limit the number of KPIs in order to ensure that everyone within the organization remains focused on achieving the same goals and objectives. There are established industry-specific KPIs which are designed to provide leading information pertaining to operational performance and capacity utilization. Review of the data from our most recent “Body Shop Analysis” reports reveals that many collision repair facilities demonstrate near best-in-class operational performance, but they fail miserably in capacity and equipment utilization. When we analyze the most profitable collision repair shops individually, we find that they hit KPI targets in both operational performance and capacity utilization. This fact clearly indicates that KPIs are included in the determining factors of your business’s profitability. The winners in the future of the collision repair industry will be those shop managers and owners who optimize their organization’s operational performance and facility and equipment utilization. Through targeting KPIs in these critical areas of the business, collision repair centers can maximize profit and minimize costs and expenses simultaneously. Time is diminishing for those collision repair centers that are surviving on a daily basis by manipulating the business’s profit and loss statement. When the business is under increasing pressure to make concessions with insurance companies, to control rising operating costs, and to perform more vehicle collision repairs at lower overall profit margins, management must become focused on driving down the business’s costs and expenses. But few collision repair businesses are managing the whole financial picture, which includes resolving issues with customers and insurance companies, man-

aging receivables properly in order to limit exposure to a cash flow crisis, and securing daily working capital needs. Effective and efficient operation of any business demands keen decision-making skills, which stem directly from a properly informed management team. It requires more than just monitoring cash flow and management accounts to increase profitability and cash flow; it takes intense evaluation of the key “drivers” of your business. These “drivers” are the areas which have major influence on your business’s success; we refer to them as key performance indicators. Unfortunately, most of the businesses that we surveyed either are not tracking the right information or do not have accurate information necessary to make crucial business and financial decisions. Therefore, very costly mistakes are being made industry-wide during an uncertain economic time for our industry. Body shop and fixed operations managers are making significant business investments without accurate data to support their investment initiatives. Many expansion and consolidation plans are being built on a false sense of business security, when in fact the business is vulnerable to financial collapse with the current business model. Hence, in the future, the strongest organizations in terms of financial fitness and operational optimization will have the opportunity to thrive while their competitors suffer from shrinking profits and lack of sales. The collision repair industry still falls short of defining and measuring progress toward the most significant goals. Businesses tend to become overwhelmed with reaching the topmost speed and therefore neglect quality and accurate processes, which ultimately produce greater output performance. After you have established the right KPIs for your collision repair business, it will be easy to immediately determine what is not performing well and what needs acted upon. \ Some of the KPIs that we recommend for collision repair centers to monitor are as follows: ■ Average Repair Order (Dollar Amount) ■ Customer Closing Ratio ■ Sales per Estimator ■ Sales per Production Technician ■ Sales per Employee ■ Sales per Production Square Foot ■ Paint and Material Cost per Refinish Hour Sold ■ Gross Profit on Paint and Material Sold ■ Total Paint and Material Cost as a Percentage of Total Sales ■ Spray Booth Throughput ■ Metal Department Proficiency ■ Paint Department Proficiency ■ Gross Profit as a Percentage of

44 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

Sales ■ Net Profit as a Percent of Labor Sold

KPIs are not the silver bullets that will give you instant success, but they are the crucial components that are often overlooked in business management. You can also use the KPIs as a carrot to inspire your staff. People can be motivated to reach those KPI targets that you have implemented within your business structure. Post the KPIs so that your staff can see their progress in the critical areas of the business; discuss the KPIs with your staff; set up incentives that drive the organization toward achieving the business’s goals. From our research, many collision repair shops cannot recognize the real performance of their organization; they are driving the business at a high speed without any gauges on the dashboard to determine if they are capable of finishing the race. Extreme attention to the business’s financial performance, operational activities, and facility utilization will be necessary for those who plan to stay in the race. KPIs are just one necessary component of the equation; you must still have a clear and realistic strategy and the right management team and process in order to have the winning combination for sustaining business success.

Subaru Maker Reports Profit; More US Capacity

The maker of Subaru vehicles, Fuji Heavy Industries, reported a 21 percent surge in operating profit and surging sales delivered record earnings. The allwheel-drive specialist also said it would meet its North America sales target five years ahead of schedule and speed up plans to increase local production capacity here. The U.S. alone accounts for about 62% of Subaru’s global sales. In the latest quarter, U.S. sales rose 12 percent to 128,900 vehicles. In Japan, by contrast, sales slid 1.4 percent to 56,900, while China volume fell 14 percent to 13,100 units. Subaru plans to boost production capacity at its Indiana assembly plant and predicted Subaru would hit North America regional sales target of 600,000 vehicles five years ahead of schedule. It now targets 600,000 units in the current fiscal year ending March 31, 2016. North America sales rose 19 percent to 570,000 units in the just ended fiscal year.

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 45

On Creative Marketing

Limited Growth? What To Do About It! with Thomas Franklin

Almost every shop owner I speak to tells me he or she wants more business. But when we start talking about business growth, I begin to hear reluctance. Too much growth means hiring more people, which means more paper work, more reports to the government, more insurance, and on and on. It also means more capital investment to cover additional equipment and to cover accounts receivable during the interval between the time parts are purchased and checks arrive for completed jobs. Everyone wants to grow in profitability, but very few want to face the costs and pains of growth. In the end it all comes down to how much of a burning desire a shop owner or manager has to expand and grow his or her shop. When the shop owner began his or her shop many years ago, there must have been an intense drive to succeed. The growth must have been successful, perhaps doubling every few months, to bring the shop to the size it is today. So where did all of that enthusiasm go? It’s likely that some of our visions were unrealistic dreams that crashed when they met the reality of competition, government regulations, unreliable employees, unpredictable finances, faulty equipment, irrational customers and unrealistic insurance appraisers and adjusters. But if you’ve survived somehow you had enough enthusiasm, enough drive and determination to push on through those obstacles and continue to grow. So now here we are today. We’ve grown to a certain point, but

is there still enough drive and determination to grow more? Some of us have peaked and actually fallen back a bit. Others seem to have stagnated, staying more or less at the same point for years – maybe even enjoying the pause. And a few others continue to grow, but very slowly. But is that enough? Is the game still exciting? Can we still fire up the troops with a vision of greater growth, more jobs, better pay, more recognition? Or has everyone settled into a mental rocking chair of comfort and complacency, just doing enough to get along – with no more challenge or “fire in the belly?” “Stagnate” is defined as “Standing still; not flowing. Foul from long standing. To become dull or inert.” Not a pretty picture! I’ve found that the shop owners, who somehow overcame the “stagnation trap,” were motivated by a greater purpose. I recall John, a Hispanic man who put three children through college and provided a good living for his family and employees working out of a small 12,000 square foot shop. Then he expanded into a 30,000 square foot former industrial park. John’s son Danny finished his degree in business and came on board to work with John managing the business. I was there the day they opened the new shop. John’s eyes sparkled with the excitement of seeing a dream come true. No longer cramped in a tiny space, shuffling vehicles back and forth to get jobs out, John was thrilled with the opportunity to grow. His joy was in

GM to Invest $1B to Expand and Renovate National Historic Landmark, the Michigan Tech Center

General Motors, in a long expected boost for its research and development activities, will invest $1 billion to expand and renovate operations at its technical center in suburban Detroit. The plans for the 310-acre campus in Warren, MI, include new design studios and a multi-story IT building. The project also includes substantial renovations to existing r&d facilities, construction to accommodate additional testing areas and extensive office upgrades, GM said in a statement.

GM product chief Mark Reuss said work is “already underway” on the long anticipated project, which won municipal tax abatements in April. “The need to attract high quality employees is the real need,” Reuss said. “We're not here to be competitive, we're here to win. So when we do this in Warren, we’re not trying to compete, we’re trying to win.” Work is set to wrap up by 2018. The project is expected to generate about 2,600 new jobs once it is completed.

46 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

the realization of his dream to provide his family with more. Today the growth process has become more technical. Mastery of the new structural materials and computerized components of vehicles can determine a shop’s capacity for growth. But it is still the owner/manager leader who determines the vision of the shop. Getting technicians trained on the new processes will be a factor, but the real determinant may be the knowledge and skill of that leader. To get growing again, and possibly regain some of that early enthusiasm, a shop owner and/or manager may have to consider improving his or her own knowledge and skills. At a recent autobody association meeting, a key speaker was from Universal Technical Institute, an educational institution that offers training in collision, automotive and diesel repair. One attendee at the meeting said he had hired about a dozen graduates and all were

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able to do their jobs immediately. Training for techs is readily available, but for up-to-date management skills the best choice may be the Automotive Management Institute (www.amionline.org). It was founded in 1989 to answer the demand for management education specifically for automotive service and collision repair professionals. The fields of study focus on five areas of business management: marketing and sales, operations and service, management and administration, financial management, and personnel and human resource development. Its accredited curriculum consists of more than 700 courses taught by more than 150 faculty members. Classroom courses range from 90-minute to five-day sessions. A core of self-study and on-line courses is also available. Upgrading the skills of the leader may well be the key to real shop growth in this age of rapid-fire technical advances.

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Western Associations

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

ASCCA/CAA Joint Legislative Day Focuses on Minimum Wage/Taxes on Labor with Ed Attanasio

-With major concerns about bills that can greatly impact their businesses, collision and mechanical repair companies came from all over the state to attend ASCCA /CAA’s Joint Legislative Day on April 14 in Sacramento, to meet with their local legislators and discuss two “hot button” bills, one that would extend a sales tax to labor operations and another that would increase the minimum wage in the Golden State. Legislative Day speakers included Pat Dorais, chief of the Bureau of Automotive Repair (BAR), to discuss provide the two organizations with an overview of recent BAR activities while praising the ASCCA/CAA’s ongoing relationship with the BAR and State Assembly Member Brian Jones. Following a welcome from Steve Vanlandingham, ASCCA state president, everyone was briefed by Jack Molodanof, the lobbyist for both organizations, who taught the members about the correct protocol to be used

while meeting with their legislators or their representatives. Molodanof always opens with a joke or amusing anecdote, but then he’s all business. Coaching the members of ASCCA/CAA about how to approach their local representatives is always crucial and that’s why Molodanof always sets down the rules first. Molodanof was happy with the State Assembly turnout, he said. “It Member Brian was a very successJones spoke to ful legislative day the ASCCA/CAA where the automomembers during their Legislative tive repair industry Day in Sacramento, converged on the CA on April 14 State Capitol and raised awareness and educated legislators and staff about the issues that directly impact their businesses. It was wonderful to see so many new faces at this year’s legislative day!”

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members run their businesses and all of the factors that can affect them and their livelihoods.” In addition to meeting with their legislators, a copy of the ASCCA Telematics Guiding Principles was provided to every congress or assembly person they visited. “Our members did an outstanding job communicating our concerns to our elected representatives,” Vice Chair of ASCCA Government Affairs Committee James Justus said. “A special thank you goes out to ASCCA member Jeff Stitch, who attended Legislative Day even though he suffered a heart attack two weeks prior to the event. Now that’s a dedicated member! Jeff also made a passionate talk about the importance of legislative day and why every mechanical and collision shop owner or manager should participate in communicating with the politicians who can greatly impact our future in this industry.”

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With more than 90 scheduled appointments throughout the Capitol’s offices all day long, ASCCA/CAA members broke into smaller groups to cover as much territory as possible. As members searched the hallways looking for politicians’ offices, body shop and mechanical shop owners were intently focused on meeting with their representatives to discuss the two main bills on their radar. CAA Executive David McClune was pleased with the attendance and the fact that so many appointments were scheduled. “This is our big moment every year when we can meet with our political representatives,” CAA Executive David McClune said. “We can influence these bills before they become laws and provide valuable feedback for our key decision makers, so we tell our members to seize the moment and make the most of it. Most importantly, we can provide them with a look into how our

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SB 8 (Hertzberg): Tax Reform-Extending Sales Taxes to Services This bill intends to expand the state portion of the sales tax to all services, including automotive labor, but excluding health care services; education services and businesses with less than $100,000 in annual gross sales. The bill will have a disproportionate impact on low-income individuals, because they own older cars that require more frequent repairs. If passed, it will increase the cost of vehicle service and repairs making it less affordable for working families who require transportation. Specifically, the passing of SB 8 will increase the cost for auto body repairs and may cause some vehicles that

can be safely repaired to be unnecessarily “totaled”. When car repairs become more expensive due to more taxes, people will forego the repairs, leading to potential vehicle safety issues. In addition, this bill will encourage the underground economy and result in more “midnight body shops” that can charge less and thereby create an unfair advantage in the marketplace. The ASCCA and CAA are both very concerned about this bill, even though it’s still a work in progress. “There are some large gaps still in this bill and that’s why we’re taking a wait and see approach,” Molodanof said. “It’s more of an intent bill and it’s not even close to being finalized yet, but we want to be involved in the conver-

sation, because obviously this can affect our bottom line in a huge way.”

SB 3 (Leno): Minimum Wage: Annual Adjustment This bill would increase the minimum wage on and after January 1, 2016 to not less than $11 hourly; on and after July1, 2017 to not than less $13 hourly and thereafter commencing January 2019 based on the California Consumer Price Index. This bill would have additional burdens on automotive repair shops to pay employees double the minimum wage when employees are required to bring their own tools. “We are obviously opposed to this bill, because it could literally cripple small businesses, including automotive

repair companies,” Molodanof explained. “The bill would have significant ramifications on automotive repair shops because automotive repair employers are required to pay employees double the minimum wage when employees are required to bring their own tools. It means going from the current $18 an hour ($9/hr. is the current minimum wage) to $26.00 an hour ($13/hr. minimum wage under SB 3) and that is a huge cost increase for shops. With other costs increasing all the time for shops, including increased worker’s compensation rates, increased energy costs and increased costs associated with the Affordable Care Act, this is just another thing for business owners to deal with and that’s why we oppose it.”

Nationwide Advocates Automated Mobile Hail Estimating for Faster Hail and Dent Repair

In the aftermath of an auto hail claim, one of the most frustrating matters to deal with is the waiting and wondering. Nationwide says it has found a way to put customers’ minds at ease by introducing a quicker and more accurate way to estimate hail damage—Automated Mobile Hail Estimating. The program was piloted last year after a catastrophic event and will be rolled out across the country

as an optional service in the coming months. Nationwide is the first carrier to implement this program as part of its claims strategy. “This is a game-changing innovation that could significantly set the standard for how the industry identifies and estimates hail damage,” said Patrick Burnett, Nationwide associate vice president of material damage claims. “Our

goal is to make the vehicle repair process as painless as possible by providing our customers with quick, accurate vehicle repair information on their time.” The technology uses a number of state-of-the-art high-definition cameras and proprietary software to provide a number of advantages, including: mobile location, improved accuracy, documentation, system integration and expedited

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Continued from Cover

Midnight Body Shops

staying away from video games and learning some invaluable sales skills in the process; but did he know that his father was likely breaking the law? My curiosity piqued now, I entered into a conversation with the gentleman. He explained that he could fix my dents right there, quickly and affordably. The whole job would take less than an hour and I didn’t have to pay him until I was completely satisfied, he said. “If you take it to a shop, you’ll have to pay the deductible, plus it could take more than a week and of course your insurance company will raise your rates,” he said. “I can make it look brand new for say, $250?” He obviously didn’t realize that I’ve been writing about the collision industry for more than a decade now, but once I began peppering him with questions, he got nervous and starting getting back in his car. “Are you using waterborne paint and how can you possibly match the color? Is the work guaranteed? (I pretty much knew that answer). Are you trained to do this type of work or are you a do-it-yourselfer? And isn’t it illegal to do the repair here in the parking lot?” He looked down and said, “Are you a cop?” That made me laugh and I told him no. He seemed relieved. I informed him that no thanks, I don’t want you to fix my car, but can I ask you a couple questions? I told him that I don’t want to know his name, but Continued from Cover

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friends business—just one day it’s there, it’s working. The next day it’s just completely wiped out by mother nature, it’s pretty devastating. And I know he’s going to need a lot of help within the next couple of weeks just getting things cleaned up,” says Rich McCready, who is friends with the owner of J & S Auto Services.

that I’m curious about his business model and his interesting sales approach (we both laughed). In short, he is 42 and has three children, including the diminutive salesman. He has been a body tech for 20-plus years and worked for a few shops I had heard of, including a large MSO. In 2008, when the economy imploded, he was laid off and that’s when he started doing freelance collision repair under the table and off the radar. He was I-CAR Gold before his sudden retirement from the legitimate side of the industry, he said, so he’s not current on aluminum repair, but claims he can do just about anything that doesn’t require sophisticated equipment. If a repair is more extensive, he doesn’t need to do it in a parking lot, he explained, because he has a small shop at his home (location withheld). The next thing he told me was a shocker. “How much do you make,” I asked him? “A good week is $5,000 and the average is around $3,000,” he said. “One month I did $40,000 after a bad storm. It’s all mostly PDR and little dents. I’m good at plastic work and I can fix a bumper. The shop would just replace it, but I can save it almost every time.” I had heard for many years about the notorious “Midnight Body Shop,” but this was in broad daylight and no one seemed to be sneaking around. So, I wanted to see if I could find another one of these fly-by mobile body shops and I only had to look as far as the Internet. I searched through Craigslist in my area under body shop repairs in the “Services” section, and came up with

Axalta Introduces Cromax Mosaic™ Basecoat

Axalta Coating Systems has introduced a solvent-borne basecoat that enables shops to stay with a solvent-based system and be ready for applicable VOC regulations in most U.S. air districts and Canada. Available in a wide choice of solid, metallic, pearl and special-effect colors for spot, panel and overall repairs, the company said it provides outstanding coverage, color match and blendability. For more information, visit www.axalta.us/mosaic.

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several dozen collision repair listings. I responded to one that stated it had “very low, affordable rates—I can beat the body shop’s prices!” After sending an email, my phone rang within 10 minutes. I immediately explained to the caller that I was writing an article about under the radar, illegal, so-called midnight shops and did he fit into this category? Again, I told him I don’t want to know his name and after the call I will take his phone number off my cell. Initially, he said no, but after chatting for a few minutes, he agreed. This man’s story was very similar to the one I heard in the parking lot. “I can make more money fast and I don’t have to answer to anyone except myself. I control the quality and I don’t have to wrestle with an insurance adjuster. I’m like the Uber taxi service—an alternative for people who don’t care if I’m licensed or certified—they just want a good job at a fair price and that’s what I give them.” So, I asked Patrick Dorais, the BAR Chief of California, what we can do as consumers to prevent these types of businesses from flourishing, without licenses or the proper insurance. “This issue is something we continue to address, but we can’t do it

alone,” Dorais said. “We encourage any shop or any consumer that suspects unlicensed activity to contact their local BAR field office and report their concerns so we can investigate these issues. BAR utilizes two enforcement paths for unregistered shops, Dorais explained. “First, regulations for issuing citations took effect in October 2011, and BAR regularly issues citations to unlicensed facilities under this authority. Second, BAR continuously fosters relationships with district attorneys throughout the state in an effort to create support for criminal and civil filings against unlicensed facilities. In addition, BAR is exploring an industry suggestion to require regulations that providers of automotive repair services publish their registration numbering in all advertising. This will further enhance BAR’s ability to identify those who are engaged in unlicensed activity.”

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

Are You Prepared for Google’s Mobilegeddon? with Ed Attanasio

Technology doesn’t stand still and that’s why no one was surprised when on April 21, Google, the planet’s leading search engine, released changes to their algorithm giving mobile-friendly websites a boost on devices with smaller screens. It seems like an obvious move, but change is always painful and website operators don’t like surprises, so many of them are allegedly shocked and perplexed. But, the seasoned pros out there are prepared for what people are calling the “Mobilegeddon” and many have already adapted all or most of their clients’ web sites as they embrace this new regime. Algorithm changes are never pretty, because businesses rely heavily on Google to send traffic to their websites. Google owns two-thirds of the U.S. search market, so when Google changes its code, companies have to move quickly to decipher and adapt to the new way of doing things. In 2011, a key Google algorithm change calculated to promote high-quality content caused the eventual ruin of several companies nationwide due to a significant dip in traffic and revenue. Web developers and online marketers are understandably concerned about the change. The top spot on a search page characteristically attracts 20% to 30% of the page’s clicks while slots #2 and #3 generate 5% to 10% of the clicks. And if you’re not on the first page, you’re going to receive roughly less than 1% of users’ attention. In the Search Engine Optimization (SEO) world, Mobilegeddon is the Super Bowl, Masters and World Series all rolled into one. It’s a make it or break it moment for every business with a web site in search of a mobile presence. Luke Middendorf, president of WSI Connect in Concord, CA is telling body shop marketing people to Keep Calm and Carry On when it comes to Mobilegeddon. “Google’s search engine is putting a new focus on mobilefriendly sites when it comes to their ranking algorithm,” he explained. “This means that if your site is not mobile friendly it will rank lower, or perhaps not at all when it comes to customers using keywords to search for information. These changes will

allow customers to get the information they need from all of their mobile devices, but if your site is not mobile optimized (responsive) you may miss out on these customers’ business.”

Here’s everything you need to know about Google’s Mobilegeddon: Only smartphones will be impacted. Google’s search results on laptops and tablets will be unaffected by the new algorithm. But, it’s still a pretty significant deal when you consider the fact that mobile makes up almost half of all Google searches. Studies also show that 70% of all mobile searches are performed by users ages 18-30, a demographic almost every business is hungry for. Relax – time is on your side. Your website people received a two-month warning in preparation for Mobilegeddon, so if they look surprised, don’t fall for it. Normally, Google doesn’t preannounce algorithm changes, but Mobilegeddon could have such a dramatic impact on mobile search results that they decided to give businesses a little time to get ready. Four months ago, Google released a “mobile-friendly” test that enables websites to see if their sites are equipped for the algorithm tweak. Mobile websites with clunky videos, sluggish mobile pages and blocked image files will suffer the wrath of Mobilegeddon. Websites can adjust on the fly. Unlike previous algorithm tweaks, websites can upgrade their “mobilefriendliness” at any time to appear higher in Google’s search results, so it doesn’t have to be done immediately. Google also said that the algorithm tweaks will be rolled out over the course of a few weeks, so the changes might not be immediately noticeable anyway. Some mobile-unfriendly sites could still get favorable search placement. Google’s algorithm judges sites based on numerous criteria, of which mobile-friendlness is just one. The company’s aim is to provide the most relevant results, even if it’s to a site that isn’t optimized for mobile. Is this move to accommodate more mobility a timely re-adjustment by Google and how can it benefit body

52 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

shops? “With so many new collision-related apps out there and the fact that more and more consumers are using their smart phones for everyday tasks, body shops can definitely get business from their mobile sites,” Angel Iraola an awardwinning site developer explained. “If you have a site or Angel Iraola, the app that will appear president at Net easily on someBusiness Consultone’s cell phone ing & Solutions in Santa Rosa, CA and for some reasaid that small son your competicompanies are tor hasn’t adapted paying way too to this new algomuch to switch rithm, then obviover to Google’s new mobile-centric ously you’ll capture algorithm, called that business and “Mobilegeddon.” they won’t. Or at the very least, you’ll get a soild shot at getting that vehicle. It may not become

a huge part of your sales and marketing efforts, but if you get 10-12 new customers every year, why not be prepared for Mobilegeddon?” Iraola, the president at Net Business Consulting & Solutions in northern California was able to change all of his clients’ web sites to the new Google algorithm quickly and seamlessly, he said. “Some web developers are making mountains out of mole hills and overcharging small companies to changeover. I’ve heard crazy prices ranging from $1,500 to $2,000 and even more. That’s ridiculous and a complete rip-off. To convert your web site, it should not cost you more than $600-$700 and it shouldn’t take longer than 6-7 hours to complete the entire job.”

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 53

ASA Board of Directors Installed During Annual Business Meeting The Automotive Service Association (ASA) held its annual business meeting April 21 at the Westin Crystal City Hotel in Arlington, VA. The week kicked off April 20 with a welcome reception sponsored by Feder-

“I am very excited about where ASA is going. We’re in the midst of reorganizing our business model, and we are building up our industry relationships and want to get more members involved in the association,” said Seyfer, whose father, Don Seyfer, served as chairman of ASA from 1996-1997. Following the board and committee meetings, attendees enjoyed a private tour of George Washington’s home, Mount Vernon. At the conclusion of the tour, the group shared dinner and honored outgoing ASA Chairman Darrell AmberAttendees of ASA’s recent annual meeting in Washington, son, AAM, for his service to D.C., enjoyed a private tour of George Washington’s ASA. home, Mount Vernon Dan Risley, ASA Presiated Insurance. On April 21, there dent/Executive Director said, “With were association meetings in the more than 40 years of experience in morning, including a closed board of the collision industry, Darrell brought directors meeting and an affiliate di- valuable insight to the leadership of rectors meeting, followed by a lunch- ASA during his two years as chaireon. In the afternoon, ASA members man. We remain profoundly grateful attended an open board meeting, fol- for his contributions to ASA, as well lowed by the swearing in of a new as the automotive industry in its enchairman and other board members. tirety. We wish him all the best in his Donny Seyfer, AAM, Seyfer next endeavor.” Automotive, Wheat Ridge, CO, is The Automotive Service AssociASA’s new chairman. ation’s new board of directors began

ASA’s new board of directors, who were installed at ASA’s recent Annual Board Meeting in the Washington, D.C., area. Front row, from left to right: Bill Moss, AAM, secretary /treasurer; Donny Seyfer, AAM, chairman; Roy Schnepper, AAM, chairman-elect; Darrell Amberson, AAM, past chairman. Back row, from left to right: Ed Cushman, AAM, general director; Scott Benavidez, Collision Division director; and Bob Wills, AAM, Mechanical Division director

Amberson, AAM, LaMettry’s Collision Inc., Minneapolis, MN, as immediate past chairman; and Roy Schnepper, AAM, Butler’s Collision Inc., Roseville, MI, as chairman-elect. Bill Moss, AAM, EuroService Automotive, Warrenton, VA, a former general director, was nominated to serve a one-year term as secretary/treasurer.

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Ed Cushman, AAM, C&H Foreign Auto Repair, Spokane, WA, was elected to serve a two-year term as general director. Moss’s move into the secretary/treasurer role leaves a general director vacancy that will be filled at a later date. Bob Wills, AAM, Wills Auto Service, Battle Creek, MI, begins the second year of his two-year term as Mechanical Division director; and Scott Benavidez was elected to a two-year term as Collision Division director. Risley also serves on the ASA board of directors in an ex-officio capacity. ASA’s next national event is the NACE | CARS 2015 expo and educational conference in Detroit, MI July 23-25, held in conjunction with several other industry events throughout the week. For more information, visit www.CARSevent.org and www.NACE expo.com. To learn more about ASA, visit www.ASAshop.org or call (817) 5142900.

their term at the close of the annual business meeting. Serving two-year terms on the board are Seyfer; Darrell

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Sherwin-Williams Recognizes 2015 Nascar® ‘Fastest Lap’ Contingency Award Winners

Each year NASCAR Contingency sponsors award prize money to NASCAR teams via per-race and year-end postings.

The Sherwin-Williams FastestLap Contingency Award awards the eligible driver who turns the fastest lap of each NASCAR Sprint Cup Series race throughout the season. Each week the award winner receives $5,500 per race and then a check for $100,000 is presented to the overall winner at the end of the season. Sherwin-Williams is the ‘Official Paint of NASCAR,’ as well as the ‘Official Automotive Paint’ and ‘Official Transportation Finishes of NASCAR.’ Last year Matt Kenseth, driving the No. 20 Toyota Camry, won the Sherwin-Williams Fastest Lap annual award and the $100,000 in prize

money. He was honored at NASCAR’s Myers Brothers Awards Luncheon in Las Vegas, Nevada. With the 2015 racing season well underway, NASCAR and Sherwin-Williams announced the first 10 weekly winners of the ‘Fastest Lap Award’ which include: ● Daytona 500 (Daytona Int’l Speedway): Carl Edwards No. 19 car, Joe Gibbs Racing ● Folds of Honor Quiktrip 500 (Atlanta Motor Speedway): Denny Hamlin No. 11 car, Joe Gibbs Racing ● Kobalt 400 (Las Vegas Motor Speedway): Kyle Larson No. 42 car, Chip Ganassi Racing ● CampingWorld.com 500 (Phoenix International Raceway): Matt Kenseth, No. 20 car, Joe Gibbs Racing ● Auto Club 400 (Auto Club Speedway Fontana, Calif.): David Ragan No. 18 car, Joe Gibbs Racing ● STP 500 (Martinsville Speedway) Denny Hamlin, No. 11 car, Joe Gibbs Racing ● Duck Commander 500 (Texas Motor Speedway) Jamie McMurray, No. 1, Chip Ganassi Racing with Felix Sabates ● Food City 500 in Support of Steve Byrnes and Stand Up to Cancer (Bristol Motor Speedway) Matt Kenseth, No. 20 car, Joe Gibbs Racing ● Toyota Owners 400 (Richmond International Raceway) A.J. All-

mendinger, No. 47 car, JTG Daughtery Racing ● Geico 500 (Talladega Superspeedway) Carl Edwards, No. 19 car, Joe Gibbs Racing Sherwin-Williams is in its second year as a Contingency Sponsor in the NASCAR Sprint Cup Series and NASCAR Touring & Weekly Series.

The Sherwin-Williams Fastest-Lap Award goes to the eligible driver who turns the fastest lap of the race. The award winner will receive $5,500 per race and $100,000 at the end of the season

“Today, more than a dozen NASCAR teams currently use Sherwin-Williams Automotive Finishes,” said Bobby Moody, Director of Motorsports for Sherwin-Williams. “The 30-plus drivers who now use Sherwin-Williams have more than 200 NASCAR Sprint Cup Series vic-

tories between them and make up a virtual “who’s who” of motorsports’ finest finishers.” The roster of NASCAR motorsports teams using Sherwin-Williams products include: ● Joe Gibbs Racing ● Richard Childress Racing ● Roush Fenway Racing ● Chip Ganassi Racing with Felix Sabates ● Michael Waltrip Racing ● Furniture Row Racing ● Front Row Motorsports ● Germain Racing ● JTG Daugherty Racing ● HScott Motorsports ● BK Racing For more information about The Fastest Lap Award presented by Sherwin-Williams, visit NASCAR.com at http://www.nascar.com/content/nascar /en_us/sprint-cup-series/specialawards/sherwin-williams-fastestlap.html. For more information about the NASCAR Contingency Award program visit http://www.nascar.com/ en_us/sprint-cup-series/specialawards.html. For more information about Sherwin-Williams Automotive Finishes, or the brand’s motorsports program, visit www.sherwin-automotive.com or call 1-800-798-5872.

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 55

Mitchell’s Q2 ITR Addresses Increase in Average Collision Repair Severity lifecycle the more opportunity the aftermarket has to replicate the part and the more potential salvages out there.” Horn said what he found interesting was that the midcycle for the Camry was surprisingly still high, around 80 percent OEM utilization. “The takeaway for shops is that it

robust new car sales, that lowers the value of the cars in off road today.” He In the latest edition of Mitchell’s Q2 Insaid there is a downward trend of the dustry Trends Report released in May, actual cash value of vehicles being apGreg Horn addressed the driving facpraised and repaired. tors behind rising collision repair costs. “When you start to see falling acHorn, Mitchell’s VP of Industry Relatual cash values and rising repair costs, tions, looked at the increase in average that means that we’re going to see repair severity in terms more cars being totaled of an estimate, parts, out,” said Horn. “Ris“Rising costs and lower values labor, paint and materiing costs and lower valals. ues equal more total equal more total losses” Horn’s feature artilosses.” cle, “What’s Driving the This can be attrib—Greg Horn, Mitchell’s VP of Industry Relations. Costs to Repair Today’s uted to more complex Top Selling Car,” examvehicles being built and ined four top-selling mid-size sedans in changes so quickly,” said Horn. “There added technology, which both add to the United States to find out if the design may be more alternative parts available the overall cost of the repair. lifespan of the vehicles affects parts uti- than there were the last time you reThe complete report is available lization and overall repair costs. paired that vehicle on the salvage side at www.mitchell.com/industry-trendsThe 2012 mid-size vehicles in- and on the aftermarket side. He said report. Mitchell will also host a wecluded a new Volkswagen Passat, a that by conducting a good diligent binar on June 2: Industry Trends Live. midcycle Toyota Camry, as well as a search of alternative parts, it could po- Horn will provide a deeper look into Ford Fusion and Chevy Malibu that tentially help shops repair more cars the trends, information and studies were both in the last years of their de- due to an increase in the parts supply. highlighted in this quarter's industry sign cycle. “We found that the vehicles The second quarter industry trends report. In addition, Horn will discuss that were the oldest had absolutely the report also included information about other current events of interest such as lowest use of new OEM parts,” said average length of rental, current events Google’s self-driving cars. “I think Horn. The new 2012 Passat had the in the collision repair industry and this industry is changing at a faster highest use of OEM parts and the highlighted new vehicle sales data. rate than I’ve seen changes in the 27 Camry had substantially more OEM “When you look at the big picture, we years I’ve been involved in it,” said utilization than both the Fusion and the process almost seven million estimates Horn. To sign up for the webinar, visit Malibu. “When it gets to the end of the a year,” said Horn. “When you look at go.mitchell.com/register. by Stacey Phillips, Assistant Editor

1919 Pierce-Arrow Wins Best in Show at NC Concours

A 1919 purple Pierce-Arrow Model 66 A-4 Tourer bought last year by Savannah philanthropist and businessman Robert S. “Bob” Jepson Jr. won Best in Show at the third annual Pinehurst,

gine with its 825-cubic-inch displacement was the largest engine made for automobiles at the time. “I think it is the outlandish color that gets people’s attention—bright

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NC, Concours d’Elegance on May 2, reported the Savannah Business Journal. “We are so thrilled that we came up here, just a beautiful part of the country,” said Jepson. “And what a bunch of beautiful cars that were here today.” The 1919 Pierce-Arrow, which stands 7 feet tall at its highest point and weighs 7,000 pounds, was once customized for silent movie actor Roscoe “Fatty” Arbuckle. Its six-cylinder en-

purple with white tires,” Jepson said. “It’s what we call our ‘low profile car’… It gives you good exercise because it’s a beast. “To turn it in any kind of tight configuration I feel like Popeye with these great big arms. … The public loves the car because it’s so outlandish.” The vehicle enjoyed a total “nuts and bolts” restoration in 2007 by Lon Kruger of Scottsdale, AZ. It previously won best in class at Amelia and Pebble Beach Concours.

56 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

Toyota Motor Sales, U.S.A. and Sherwin-Williams Automotive Finishes announced the 2015 schedule for the annual Toyota Certified Collision Center estimating program, with SherwinWilliams continuing as one of the facilitators for the program’s training workshops. Conducted through the University of Toyota, the workshops will be held in Phoenix, AZ August 26 and Dallas, Texas September 22. “Our Gulf States Toyota shops that have participated in the Estimating Solutions for Profit classes have averaged better than a $150 increase in their repair order value,” according to Travis Rice, Manager of Collison Operation for Gulf States Toyota. The workshop, B005 Collision Repair Estimating, comprises realworld estimating scenarios and industry-specific issues pertaining to body shop operations and insurance company relations. Attendees who participate in this estimating program will get hands-on experience with the techniques, skills and information necessary to write and negotiate more accurate (and profitable) estimates. For information, contact Toyota or visit www.sherwin-automotive.com/ collision-repair/training-support.

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Savannah philanthropist and businessman Robert S. “Bob” Jepson Jr.’s 1919 purple Pierce-Arrow Model 66 A-4 Tourer won Best in Show on Saturday at the third annual Pinehurst Concours d’Elegance in North Carolina. The car has previously won best in class at Amelia and Pebble Beach Concours

Sherwin-Williams Partners with Toyota for Estimator Training

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 57

Longtime I-CAR Executive Jeff Peevy to Lead Automotive Management Institute I-CAR announced on April 27 that Jeff Peevy, Senior Director Segment Development – Collision Repair & Field Operations, has been recruited to lead the Automotive Management Institute (AMI) as its next presiJeff Peevy dent. His last day with I-CAR was May 15. The opening created by Peevy’s departure is not expected to be immediately filled. Peevy has been associated with I-CAR for nearly 25 years. He joined the organization in 1990 as a committee member, served as an instructor and rose to become a top regional manager, leading the South Central Region for six years. In 2006, Peevy was promoted to National Field Operations Manager and then joined I-CAR’s leadership team in Hoffman Estates to head Field Operations in 2007, later becoming senior director, managing both Field Operations and the newly formed Collision Repair Segment

team since 2012. “The I-CAR ecosystem will miss Jeff, and at the same time, we also are thrilled that he is taking on a new challenge that will also serve the interests of our industry,” said ICAR CEO and President John Van Alstyne. “While Jeff has played a key role helping drive positive change at I-CAR over the past several years, this commitment transcends Jeff—customer focused continuous improvement is now part of our DNA at I-CAR. We wish Jeff well and look forward to exploring possible synergies with AMI that will benefit the collision repair industry, especially in new curriculums such as our new Production Management Role, which will be launching later this year.”

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Service King Launches Military Veterans Hiring Initiative Service King announced the launch of a long-term veterans hiring initiative Mission 2 Hire. The Mission 2 Hire initiative is a pledge by Service King officials to hire at least 500 U.S. Armed Forces Veterans, their spouses or active duty personnel within the next five years. The figure equates to about 10 percent of Service King’s current staff across its network of more than 235 collision repair facilities in 21 states. “By nature, military personnel posses some of the most valuable skillsets that we look for in our hiring process,” said Service King CEO Chris Abraham. “U.S. Armed Forces veterans and their family members have bravely served our country and fought for our freedom. Now, it’s our turn to serve them as they make the difficult transition to civilian life.” As part of the initiative, Service King is partnering with USAA and Hiring Our Heroes as well as other veteran assistance programs across the country to promote career opportunities for military veterans in the industry. Service King’s initiative launched as an extension of private equity investor Blackstone and its Veterans Initiative, which aims to hire a total of 50,000 veterans across

its portfolio. “Service King’s Mission 2 Hire initiative is a strong step forward in promoting valuable career opportunities for our military veterans and their spouses,” said Sandy Ogg, Operating Partner, Blackstone. “Service King offers a wealth of career paths in the automotive repair industry that coincide with the very skillsets that so many veterans already possess. This long-term commitment, in conjunction with Blackstone’s very own Veterans Initiative, is poised to make a difference in the lives of thousands of our military heroes.” Service King also launched a new website, www.Mission2Hire.careers, specifically tailored to military veterans and their families. Service King will also celebrate current military veterans and their families on the official company blog, The Service Advisor, and across its social media channels throughout the month of May. For information, visit: www.Mission2Hire.careers or www. ServiceKing.com.

New Chief Fume Extractor Protects Body Shop Technicians from Weld Fume Particulates

On April 24, Chief Automotive Technologies introduced a heavy-duty weld fume extractor. The new fume extractor collects weld fumes at their source. The fume extractor is part of Chief’s product line expansion into “fusion” products. The fusion group includes a new rivet gun as well as a full line of spot and MIG/MAG welders that had previously been marketed under the Elektron brand. “Welding and brazing produce toxic fumes that can be harmful to the technician operating the welder or those working nearby,” said Bob Holland, Director The Chief FE7 Fume of Collision in Extractor helps North and South protect body shop America for Chief technicians from parent company weld fume particle Vehicle Service Group (VSG). “Continued exposure can lead to illness, lost time and worker’s compensation claims. Some facilities utilize overhead vacuum systems to clean the air, but the new Chief fume extractor offers superior protection by capturing weld fumes before they reach the

technician’s breathing zone.” The Chief fume extractor uses an electric motor to draw weld fumes through a cylindrical arm that leads to a large ProTura® Nanofiber cartridge. The filter offers a MERV 15 efficiency rating. MERV (Minimum Efficiency Reporting Value) ratings vary from 1 to 16, with higher ratings indicating greater efficiency in trapping airborne particles. The filters in the Chief fume extractor provide the ultimate combination of high efficiency, low operating costs and longer filter life. A built-in pressure gauge on the fume extractor shows when the filter should be replaced, and the machine’s “Quick Seal” door release provides fast filter removal and maintenance with no tools required. While traditional fume extractor arms are made of plastic tubing, the Chief fume extractor’s arm is manufactured of powder-coated aluminum with cast aluminum joints. The sevenfoot arm holds a bell-shaped extraction hood with an integrated 360-degree handle, and an ember catcher prevents hot particles from reaching the filter. To learn more, visit www.chief automotive.com/OnOurLines/ or call (800) 445-9262.

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 59

Industry Insight

CIC Panel Discussion on Electronic Parts Procurement Takes Unexpected Turns with John Yoswick

It was a panel discussion quite unlike ticular program and State Farm’s impleany other in recent Collision Industry mentation of it. Conference (CIC) history, with panel Panelist Clint Rogers, a secondwith Ed Attanasio members and CIC attendees questiongeneration North Carolina shop owner ing one another’s motivations and even who said he had not used any other elecclashing over what the topic of discustronic parts procurement system prior to sion was supposed to be. PartsTrader, said he now uses it to order “Well, that didn’t quite turn out as parts for all his shop’s jobs, not just State I expected,” CIC Chairman Randy StaFarm jobs. bler said at the conclusion of the CIC “It’s more efficient. It’s a better “Parts and Materials Committee” panel mouse-trap. That’s the reason I haven’t with Ed Attanasio discussion in Atlanta. “We’re going to been resistant to it,” Rogers said. “In my circle around and try to ensure that we case, it’s been a good thing.” come up with content that’s more meanRogers acknowledged PartsTrader ingful and effective.” is not “100 percent perfect.” He pointed The panel was organized and modto problems with its export feature deerated by committee chairman John signed to update parts pricing but that Bosin of I-CAR and was billed as a dishas been found to make other unwanted with Ed within Attanasio cussion of the inefficiencies the changes to estimates. He said he also current parts procurement environment. would like to see the system better inte“Randy’s over-arching goal [as grated with OE Connection’s CollisionCIC chairman] is he absolutely wants to Link OEM parts program. drive inefficiencies out of the industry,” “This is more an endorsement for Bosin said as the discussion kicked off. the electronic process than it is the PartEd discussion AttanasiosTrader application, per se,” Rogers Indeed, therewith was some of that during the 90-minute session, said. “It’s just the old ways, the phone with panelist Jeanne Silver of calls, the faxes, not only are inefficient, CARSTAR Mundelein in Illinois noting but there’s no accountability. When you that in order to be most efficient, any do it electronically, no longer can your parts procurement system must be fully parts man tell you, ‘I ordered that four integrated with her shop’s computerized days ago,’ when he didn’t. I can pull it management system. up and see he ordered it yesterday.” “Every time you go outside of your Rogers said State Farm deserves business management system, you’re credit for pushing shops to order parts actually using seconds and minutes, and electronically. in my world, every minute counts,” Sil“As an industry we weren’t driving ver said. that change,” Rogers said. “Let’s be Silver also said because some of honest, guys, no one was pushing the the auto recyclers she has done business electronic thing until State Farm came with in the past do not participate in the along. They’ve introduced something electronic parts procurement system she that can help us. Are there problems? uses, the pool of quality used parts she Yes? And does anyone like the idea of has to choose from is diminished. And having anything shoved down their previously when she always ordered throat? No. But if you set that aside and from a particular representative at a regive an electronic system a chance, I cycler, she said, that person knew her think you’re going to find there’s some expectations for quality; now someone very good qualities that are better than else at that recycler may handle her electhe old system. Is it perfect? Absolutely tronic parts order, she said, and may ship not. Is it better than calling and faxing? a part her shop won’t accept. Of course.” But in part because few of the five But panelist Ron Reichen of Prepanelists – three of whom had not precision Body & Paint in Beaverton, Ore., viously participated on a CIC panel – disagreed sharply that shops hadn’t alhad much if any experience with elecready been moving to electronic parts tronic parts procurement systems other ordering before State Farm began manthan PartsTrader, the conversation dating use of PartsTrader. turned almost entirely into a discussion “We were using electronic parts orof the merits and weaknesses of that pardering eight or 10 years ago,” Reichen

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said. “So it wasn’t new to us. To say that I needed somebody else to come in because I wasn’t doing that? Maybe the rest of the industry needed that help, but we did not.” At that point, 35 minutes after the panel discussion began, CIC attendees took to the microphone, often criticizing the direction the discussion had taken. Andy Ingalls of Gerber Collision, for example, asked why the panel was not discussing any of the other — in his opinion, superior — electronic parts procurement systems available. Stabler also urged the panel to focus on how they measure the effectiveness of these programs, regardless of which program they use. Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), pointedly asked Rogers if PartsTrader had paid him to be at the meeting. Rogers at first said he didn’t appreciate Schulenburg’s “accusational tone.”

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60 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

“I think you’re trying to make a point that I’m getting paid to be an endorser, and I think you’re way off base,” Rogers said. “Frankly, I don’t appreciate it. I came down here to speak for the PartsTrader guys, but not from the aspect that I’m up here to give you a commercial. I’m giving you my honest experience with the product. Will I endorse a product for someone when the product is helping me? Absolutely. I don’t think there’s anything underhanded.” But Schulenburg pressed back. “My question is: If a product endorser paid you to be in the room, and you’re endorsing it, and the rest of the panel isn’t being paid to be in the room to endorse other [products], I think there’s something disingenuous to the audience about that,” Schulenburg said. Rogers then acknowledged that PartsTrader had paid for his flight to the meeting in Atlanta. See CIC Panel Discussion, Page 64

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Takata Acknowleges 34M Defects, Struggles to Meet Air Bag Repair Demands

Takata Corp. has acknowledged that its airbag inflators in nearly 34 million vehicles are defective—a decision that sharply expands the scope of the airbag crisis and could prompt one of the largest recalls for a safety defect in U.S. history. See cover story this issue. Tataka’s acknowledgement marks a reversal from its long refusal to declare that its inflators are defective. Nonetheless, Takata is having a hard time keeping up with demand for air bag replacement parts. Though the company has refused to expand previous recalls that focus only on hot and humid parts of the country, car manufacturers like Honda and Toyota have broadened their recalls to include other states, writes Eric T. Chaffin in the blog legalexaminer.com. That means millions of vehicles require new air bag inflators—those parts deemed defective by the National Highway Traffic Safety Association (NHTSA). According to a recent report in the Journal Sentinel, in Wisconsin, as in many cities throughout the country, car owners are being told that there are no parts available to complete repairs. Just a few weeks ago, the NHTSA reported that nearly 90 percent of vehi-

cles with defective Takata air bags had not yet been fixed. The administration considered taking additional, aggressive steps to speed up the process. The NHTSA has the authority to require more manufacturers to produce the air bag inflators, but has never used it. Honda—the automaker most affected by the recalls—assured the administration it had already made agreements with additional air bag suppliers like AutoLiv to bump up production. Still, it takes time to make the adjustments needed at the manufacturing level to produce the required volume of additional parts. In Wisconsin, Toyota is putting car owners’ names on a waiting list, to be notified when the parts become available. President of the Automotive Dealers Association of Mega Milwaukee noted that because Takata had such a majority of the air bag market, they haven’t been able to keep up with demand. Still, he recommended that people get their name on the list rather than wait, to expedite repairs once the inflators arrive. Takata and many auto manufacturers have focused on repairing vehicles in more hot and humid areas of the country. Takata’s tests on the malfunctioning air bags seemed to reveal that

hot weather and high absolute humidity, along with age, were factors increasing the risk that the air bags would explode upon deployment, sending shards of metal and plastic into the interior of the car and potentially seriously injuring and even killing occupants. That means people in Wisconsin and other cooler, dryer areas may be waiting six months to a year to get their vehicles fixed. This has left drivers confused as to the best course of action. Some have considered shutting off their air bags, but that hasn’t been advised as air bags typically do save lives, and the recalls do not mean that every air bag will explode. For now, drivers are advised to turn passenger air bags off if there are no other passengers in the vehicle.

Honda Moves to Increase Repairs Despite the slow process of repairing the air bags, Honda has recently launched an ad campaign encouraging car owners to get their vehicles in for repairs, though the campaign has so far been limited to hot and humid areas. Honda has announced that those customers who cannot get their vehicles fixed will be offered “transportation alternatives,” which may include loaner or rental cars.

CREF Receives Charity Navigator’s Highest Rating

For the second consecutive year, the Collision Repair Education Foundation (CREF) received Charity Navigator’s highest rating for sound fiscal management and commitment to accountability and transparency. Charity Navigator has awarded the CREF an “exceptional” ranking of four stars out of a possible four, demonstrating adherence to good governance and fiscal responsibility. The CREF awarded nearly $14 million in support to high school and college collision school programs in 2014, with 94 cents of every dollar donated being returned to this group. CREF Director of Development Brandon Eckenrode noted, “It is important for our donors to know that their support is being responsibly allocated to collision school programs in need. We are extremely pleased to receive the Four Star rating for the second consecutive year and this will display to both current and prospective donors that our organization is one of the best in the country.” For info on Charity Navigator, visit www.charitynavigator.org. For info on CREF, contact Director of Development Brandon Eckenrode at 847463-5244 or Brandon.Eckenrode@ ed-foundation.org.

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Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership “Salesman” Exemption; Section 7(i) Exemption Is Still Available by Colin Calvert and Todd Scherwin, Fisher and Phillips, LLP

The Ninth Circuit U.S. Court of Appeals (with jurisdiction over the states of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington) has ruled in Navarro v. Encino Motorcars, LLC that Service Advisors employed by automobile dealerships do not qualify for the Section 13(b)(10)(A) overtime exemption under the federal Fair Labor Standards Act (FLSA). It is the first court to have held this way.

USDOL said that it would no longer dispute the issue. In April 2011, USDOL deleted Section 779.372(c)(4). In accompanying commentary, it said that the change was made to reflect its view that the exemption is limited “to salesmen who sell vehicles and partsmen and mechanics who service vehicles,” and that Service Advisors did not fall within this description.

The Ninth Circuit’s Ruling In Navarro, Service Advisors challenged the overtime exemption’s application in light of USDOL’s revision and statements. The lower federal “Service Advisor” Status under court dismissed their claims, finding the FLSA Section 13(b)(10)(A) exempts from that they did fall within the Section the FLSA’s overtime requirements 13(b)(10)(A) exemption. “any salesman, partsman, or mechanic On appeal, the Ninth Circuit primarily engaged in selling or serv- first found Section 13(b)(10)(A) to icing automobiles, trucks, or farm im- be ambiguous on the issue. The court plements, if he is employed by a said, “It is not clear from the text of nonmanufacturing establishment pri- the statute whether Congress inmarily engaged in the business of sell- tended broadly to exempt any salesing such vehicles or implements to man who is involved in the servicing ultimate purchasers.” of cars or, more narrowly, only those Historically, this exemption has salesmen who are selling the cars been extended to Service Advisors. Bethemselves.” ginning in 1973, in the federal appellate The Ninth Circuit then evaludecision in Brennan v. Deel Motors, ated whether it felt that USDOL’s reInc., and continuing to as recently as vised administrative interpretations 2013 in the Montana Supreme Court’s represented a reasonable reading of decision in Thompson v. J.C. Billion, the exemption. Despite USDOL’s Inc., courts have uniformly held that shifting positions, the Ninth Circuit Service Advisors are covered by that found: exemption. Here, the Department of Labor has interpreted the statutory exempThe Department of Labor’s Revision to tion to exclude service advisors by choosing the narrower definition of its Administrative Regulations However, the U.S. Labor Depart- the term “salesman.” * * * [W]e ment’s (USDOL) track record in this conclude that the agency has made a area has been inconsistent. At some permissible choice. The interpretation times in the past, it has said that Serv- accords with the presumption that the ice Advisors could qualify; at other § 213 exemptions should be construed times, it has said that they could not. narrowly. At one point, USDOL issued an interOn this basis, the court concluded pretative provision at 29 C.F.R. § that the Service Advisors are not ex779.372(c)(4) in which it took the po- empt under Section 13(b)(10)(A). Register Your Email for Our sition that Service Advisors were not The Court specifically acknowlwithin the exemption. But after sev- edged that its holding conflicted with eral courts nevertheless applied the decisions of the Fourth and Fifth Cirexemption to them, for many years cuits, of several district courts, and of

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the Supreme Court of Montana.

Practical Impact of the Court’s Ruling Employers in states outside of the Ninth Circuit should note that its ruling applies only within its jurisdiction. And while in the Ninth Circuit the case undercuts the Section 13(b)(10)(A) overtime exemption where Service Advisors are concerned, even there it does not mean that Service Advisors can never be exempt from FLSA overtime. The FLSA’s Section 7(i) provides another overtime exception for certain employees paid under a bona fide commission pay plan. It applies to an employee:

● Of a “retail or service establishment” (meaning a location 75% of the annual dollar volume of sales of which (i) is not for resale and (ii) is recognized as retail sales in the particular industry); and ● More than half of whose compensation for a “representative period” (of not less than one month) represents

commissions on goods or services; and ● Whose regular hourly rate of pay for each overtime workweek is more than 1.5 times the FLSA’s minimum wage.

Of course, an employer must determine whether the applicable overtime laws of a state or another jurisdiction include any exception like Section 7(i), or whether any similar provision is different from Section 7(i) in important ways. Thus, although automobile dealerships in the Ninth Circuit cannot rely upon Section 13(b)(10)(A) for Service Advisors (unless Navarro is later reversed or overruled), it is possible that those employees can be exempt from FLSA overtime under Section 7(i). Those dealers should evaluate whether Section 7(i) provides a viable alternative. For more information, www.labor lawyers.com. Autobody News thanks Fisher & Phillips LLP for permission to reprint their article.

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Barn Finds in TX Estimated at $700,000 to be Auctioned at Indianapolis Motor Speedway June 12

A collection of rare cars stored inside a Texas barn is estimated to be worth nearly $700,000, reported the website inquisitr.com. A man identified only as ‘Jack’ originally purchased the vehicles in the

1960s. The cars remained untouched for 40 years despite the owner’s plans to eventually restore them. The vehicles include a 1908 REO Model G Boattail Roadster/Sedan Tonneau, a 1923 Milburn Electric Model

Motostalgia will be in charge of the June 12 rare car auction at the Indianapolis Motor Speedway

A collection of rare cars found inside a Texas barn is estimated to be worth nearly $700,000. Photo Credit: www.inquisitr.com

27L, a 1932 Cadillac 370B V-12 Victoria Convertible, a 1933 Cadillac Model 370C V-12 Town Coupe, 1937 Kozy Coach Travel Trailer, and a 1938 Cadillac Series 90 V-16 Fleetwood Limousine—which was originally owned by the Wrigley family. Examiner reports that the individual vehicles are worth between $45,000 and $350,000. The entire collection is estimated to be worth at least $700,000, according to Motostalgia auctions, which will manage the sale. NY Daily News reported that the most valuable of the cars is the 1932 Cadillac Victoria Convertible, which is actually a prototype. Jack’s prototype has a V-12, while the more recent prototype has a V-16. It is estimated to be worth $350,000.

Jack’s 1923 Milburn Electric is one of the last fully electric vehicles manufactured by the company. It is worth an estimated $125,000. The 1908 REO Model G, which is estimated to be worth $95,000, includes an interchangeable back seat and boattail. Jack’s 1933 Town Coupe is “one of only 952 built.” The vehicle, which still runs, is estimated to be worth $75,000. Jack was hesitant to part with his collection, but eventually admitted he doesn’t have the time or energy to restore the rare cars, and decided an auction would be the best decision. He will, however, keep two of the rare vehicles in the garage. The rest will be auctioned off at the Indianapolis Motor Speedway on June 12.

CA, TX, FL, MI, and OH are the Top Five States for Vehicle Thefts with Keys Left Inside

More and more drivers are making it easy for thieves by leaving keys inside their unlocked vehicles, according to a report in Insurance Journal. A new report by the National Insurance Crime Bureau (NICB) found an increasing number of thefts of vehicles with the keys left inside. For the years 2012 through 2014, at total of 126,603 vehicles were reported stolen with the keys left in the vehicle. While overall vehicle thefts are declining, vehicles stolen with keys left inside are trending in the opposite direction. As a percentage of overall thefts, 5.4 percent of vehicles stolen (39,345) in 2012 had their keys in them. That figure rose to 6 percent (42,430) in 2013, and in 2014, it increased again to 6.7 percent (44,828). To show the significance of these numbers, if the 44,828 thefts were removed from 2014’s reported estimated total of 659,717, the thefts would fall to 614,889. The last time national vehicle thefts were that low was 1966. The top five states that posted the most vehicle thefts with keys during Continued from Page 60

CIC panel discussion

“If what you’re saying that someone paying $200 for my flight here is me getting paid when I take a day off of work to come down here, I think that’s kind of silly, Aaron,” Rogers said. “Two hundred dollars and now I’m a paid endorser? Let’s be serious.” The panel discussion continued but only occasionally focused on inefficiencies in the current parts ordering environment. After the meeting, Stabler

this reporting period were California (19,597), Texas (8,796), Florida (7,868), Michigan (7,726) and Ohio (7,452). The top five core-based statistical areas were Las Vegas-Henderson-Paradise, NV. (6,185); Detroit-WarrenDearborn, MI. (4,882); Atlanta-Sandy Springs-Roswell, Ga. (3,234); Philadelphia-Camden-Wilmington, PA-NJ-DE-MD. (3,141) and New York-Newark-Jersey City (2,917). Looking at day-of-week data, Saturday saw the most thefts with keys (19,147) followed by Friday (18,719) and Monday (18,647). “Stealing a vehicle is very difficult with today’s anti-theft technology and leaving the keys in the vehicle is an open invitation for the opportunistic car thief,” said NICB President and CEO Joe Wehrle. Wehrle was not shocked by the numbers? “In fact, I’m sure the numbers are probably higher, because we are only able to determine the thefts where the car was recovered with the keys inside, or where someone admit-

and Bosin said they’d not known PartsTrader had picked up Rogers’ travel expenses, although Bosin said a PartsTrader representative on the CIC committee had suggested Rogers when Bosin was looking for shop owners to be on the panel. Stabler said steps would be taken to avoid any such issues in future CIC presentations. Bosin said he plans to present his own look at inefficiencies in electronic parts procurement at the next CIC meeting, being held July 21 and 22 in Detroit in conjunction with NACE.

64 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

ted they left the keys in the car or the ignition. Many times that is not admitted in the police report or the insurance claim,” he said. He said NICB also see cases where the owner gives up the car by leaving the keys in it to allow it to be stolen. “Anyone who does that is com-

mitting fraud,” he said. Leaving a vehicle running while running into a store or to warm it up before a chilly winter commute might make sense to an individual, but it creates a perfect moment for a car thief who looks for such an opportunity, NICB warns.

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PartsTrader 3.0 Released with Efficiency Features

PartsTrader® announced May 5 that it has started rolling out its PartsTrader 3.0 release. “The release of PartsTrader 3.0 is a major step in the evolution of the application. The features contained in this release continue to move both our repairer and supplier users to greater efficiencies in the parts procurement process and the new reports being added will provide managers with tools that help them better understand their business,” said Margaret Ho, Director of Product Management & Integration for PartsTrader. Major highlights of this release include a re-designed Quote Selection Tool, enhanced management reporting and inventory quoting capabilities. The Quote Selection Tool has fewer steps needed to select the quote. This release includes new management level reports. The first phase of the time saving inventory quoting system to be rolled out is the Hotlines Automatch integration for recycled parts suppliers, soon to be followed by the DMI data platform integration for OEM dealers. Suppliers will be able to quote far more efficiently than traditional phone or fax based methods.

Pro Spot’s Virtual Welding Contest at Northeast™

Pro Spot International hosted a virtual welding contest to educate attendees and bring attention to the importance of training at this year’s AASP Northeast™ Show held in Secaucus, NJ, in March. Ron Olsson, president of Pro Spot International, explained that teaching welding can be difficult, and as with all technical skills, practice is required. Pro Spot designed the simulator to cover a variety of weld techniques and applications to fully simulate today’s demanding collision repair environment and learn what their strengths and weaknesses are. The competition was judged by averaging each participant’s scores in the speed, work angle, arc length, straightness, travel length, stickout and defects. This year’s winner was Anthony Dworniczak, of Mario’s Complete Auto and Collision Repair in Philadelphia, PA. Dworniczak was awarded a new big screen TV. “We really want to work on education and training within the industry as well as introducing the technology to more schools,” said Ashley Olsson, Communications Director for Pro Spot. “Providing solutions that allow technicians to constantly improve their skill is extremely important to our company.”

Wheelmaker Superior Moves HQ from Van Nuys to Detroit

Superior Industries International Inc., a longtime aluminum wheel manufacturer led by former Visteon CEO Don Stebbins, is relocating its global headquarters from California to suburban Detroit. The move from Van Nuys, CA, to Southfield, MI, just north of Detroit, will result in the loss of about 50 managerial and clerical positions in California, the Los Angeles Business Journal reported.Superior is the largest manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America. The company operates five manufacturing facilities in the U.S. and Mexico that employ approximately 3,000 people. Superior plans to invest up to $2.5 million and create 75 jobs. As a result, the company has been awarded a $900,000 Michigan Business Development Program performancebased grant. Michigan was chosen over competing sites in Texas and Tennessee. The city of Southfield is providing support to the project in the form of expedited permitting through the city’s building department. California’s loss is Michigan’s gain with 75 new jobs along with the $75 million investment expected.

Allstate Joins GEICO in Rate Increase as Margins Fall

Allstate Corp., the largest publicly traded U.S. seller of car and home insurance, said it’s raising rates for drivers after profitability declined at its namesake auto unit. Allstate joins Berkshire Hathaway Inc.’s GEICO in lifting rates after margins worsened. First-quarter underwriting income for Allstate auto fell 48% to $144 million, the insurer said. “We didn’t make as much money in auto insurance this quarter, in part because of weather, in part because we have to adjust prices, reflecting economic activity,” Allstate Chief Executive Officer Tom Wilson said in a conference call. He said customers have been driving more miles as the economy improves, increasing the number of claims. Allstate recently extended its share price loss to 4.4% this year. The average premiums paid by customers have been “steadily increasing,” Matt Winter, Allstate’s president. In addition to the Allstate brand, Wilson’s company also sells coverage through the Esurance and Encompass units.

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WIN 2015 Educational Conference Addresses Wide-Ranging Industry Issues by Chasidy Rae Sisk, stories and photos

On May 4–6, the Women’s Industry Network (WIN) held their 2015 Educational Conference, “Connect to Cultivate,” in Washington, DC. The social unrest and riots led to a last-minute change of venue from Baltimore to

Susanna Gotsch (l) receiving the Cornerstone Award from WIN Chair Denise Casperson. Gotsch also presented a data-driven analysis of the economy, industry and insurance markets

Washington, but WIN’s Conference Committee was able to change the venue with just three days’ notice. It was clearly successfully executed as the 2015 WIN Conference boasted the highest attendance to date with 191 participants.

As a first time attendee I was impressed with the welcoming nature of this group and especially their positivity. They made me feel like a part of this amazing industry more thoroughly than ever before. The first day’s presentations “Change Makes Me Happy... Or Is It the Other Way Around?” by Paul Gange and Jeff Peevy’s “The Sustainable Competitive Advantage” were praised as extremely interesting and informative. On Tuesday morning, WIN members started early in support of WIN’s Scholarship Industry Walk with Renee Ricciotti as event emcee and BASF as sponsor. Professional headshots were taken during the breaks as a service to members. Mike Anderson of CollisionAdvice.com presented “Choosing Your Destiny,” sponsored by Enterprise. Susanna Gotsch of CCC Information Services Inc. then presented “Smart Connections: What the Future Holds for Our Industry.” Acknowleging the general recovery of the US economy bolstered by an average of 246,000 jobs added monthly in 2014. Even though miles driven dipped during the recession, 88.7% of employed individuals still commute to work in a privately owned vehicle. More driving results in more accidents. Gotsch touched on the likely pos-

Mike Anderson Says “Choose Your Destiny” at WIN

CollisionAdvice.com’s Mike Anderson was the keynote speaker at WIN 2015. Anderson energetically hopped onstage to begin a highly entertaining, interactive presentation filled with personal anecdotes ranging from uproariously comical to tearfully touching. Attendees shouted, danced and sang at various points during Choosing Your Destiny: The Three C’s of Life. Choices. Chances. Changes. Throughout his presentation, Anderson interwove anecdotes about his challenges having Tourette syndrome.

Anderson talked about how he joined his father’s collision repair shop after returning home from the military. After taking the shop over, he abided by the philosophy “you don’t steal fish

from someone else’s pond.” Instead of recruiting employees from other shops, Anderson found people from overseas through an AIPT program, and he also invested heavily in Skills USA and in women as he looked to the industry’s future. Anderson was well-known for his skill in estimatics and DuPont Performance Coatings (now Axalta) enlisted his aid to teach classes, launching his career in consulting. Anderson sold his shops and founded CollisionAdvice.com, an on-site consulting firm for shops. He also facilitates 20 groups in the US and Canada, so he spends much of his time traveling and speaking on industry issues. “I’m not married and I don’t have kids; I decided this industry would be my legacy.” This legacy includes providing opportunities for the next generation through Skills USA as well as by promoting opportunities for women. Anderson said, “A big problem in this industry is a lack of trust. We spend a lot of money on checks and balances, but in order to put this industry back in good standing, we need to regain trust.” Anderson praised WIN’s effort to encourage, develop and cultivate opportunities to attract women to the collision repair industry. On behalf of CollisionAdvice.com, he donated $1000 to

66 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

sibility of a shortage of qualified repair technicians and the introduction of autonomous vehicles. In terms of accident frequency trending, she predicts slow but steady shifts. Gotsch also pointed how insurance has changed in the last 10 years: how it’s written, marketed, sold and priced has all changed. Auto claim severity trending is up about 3% per year, while claim frequency has also risen by 3.5% annually. Gotsch credits this to the increased frequency of storms that leads to the necessity for repairs. Gotsch examined increases in auto sales and the impact of regulatory changes on the repair process. Over 90% of new vehicles sold in 2014 contained at least one part constructed with lightweight material, just one fact leading to increases in vehicle complexity. A lot more happens with these cars when they’re in the shops in terms of technological advances in safety features and programming. She noted, “The auto segment is dealing with the transition from a primarily mechanical-based industry to a software-based industry.” Gotsch predicted, “While collision avoidance is ultimately a good thing, it will force shops to adapt to the new market to stay afloat. The market will see fewer but more expensive repairs.”

New vehicle sales have returned to pre-recession levels, Gotsch stated, and the average age of repairable vehicles has increased and is now reaching a plateau; however, there is no foreseeable plateau in the average age of total loss vehicles. Average repair costs have risen over the past four quarters, and due to OEM price-matching programs, OEM parts are seeing increased utilization. Meanwhile, labor rates have increased moderately, as vehicle scrap rates have fallen. In closing, Gotsch noted that we are living in a “100-year-old ecosystem that’s screaming for change and technology. There’s potential for continued change, but we need to be able to adapt. There are a lot of changing features and changes in the marketplace, but the marketplace is healthy and growing.” The Annual Membership Meeting, led by WIN Chair Denise Caspersen reminded attendees that the organization’s mission is to provide education, offer networking opportunities and to recognize leaders. She introduced WIN’s 2015 Strategic Initiatives, which include growing the WIN network and building the organizational capacity necessary to better serve their growing network. Next, Caspersen introduced WIN’s Board members for 2015-16. WIN’s Executive Committee for 2015–16 will in-

WIN’s Scholarship Industry Walk. He employs four women full-time whereas his two part-time employees are both male. When he owned a shop, he did not participate in DRPs, but as a consultant, “I found that there are quality DRP shops and non-DRP shops that perform poor quality repairs; I’ve also met ethical insurance people who want to do the right thing. I realized that I was wrong because I was judgmental. The first step to Choosing Your Destiny is to own your stuff, be transparent and admit when you’re wrong. WIN encourages positive dialogue, but you have to choose to be positive every day.” Anderson believes that most people in life settle for less because they’re scared of change. “People often think they’re not worthy, but life is too short. You have a right to have your needs met. Too many people look at change in terms of cost instead of gain, but most people only use 10 percent of their potential, which means they’re leaving 90 percent on the table!” Anderson believes it’s time to gather statistics on women in various fields, and he challenges I-CAR to undertake the initiative. He insists that men and women have the same capabilities. “It may not be the easiest path, but you can accomplish anything with

determination; it’s not the strongest opponent who wins but the one with the strongest will.” Anderson encouraged attendees to get out of their comfort zones. “Don’t worry about what others think. Worry about your character, not your reputation. Your character is who you are, and your reputation is who others think you are. If you’re trying to pretend that something else is holding you back, stop it!” Recalling his fear to ask girls to dance at school events in his youth, Anderson admitted that fear was the only thing holding him back, and he urged the audience to let go of that fear because “the fear is worse than what really happens. You can’t innovate from within your comfort zone—the magic happens when you step outside of your comfort zone.” “Ignore critics. Most people take themselves out of the game before even trying because they listen to their negative internal dialogue, which prevents them from seeing the opportunities in front of them. The only thing standing between you and your goal is the story you keep telling yourself as to why you can’t achieve it,” Anderson admonished. “Quit telling yourself you’re not worthy because you ARE!”

See WIN, Page 68

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 67

Continued from Page 66

WIN

clude Denise Caspersen as Chair, Petra Schroeder as Vice Chair and Melissa Miller as Administrative Vice Chair. Beverly Rook-Twibell will serve as Treasurer with Jessica Rob acting as Secretary. Margaret Knell is WIN’s Immediate Past Chair. WIN’s Cornerstone Award is designed to recognize the efforts of a member whose actions and unique contributions demonstrate her commitment to the WIN mission and vision and who also sets an example for others. This year’s winner was Susanna Gotsch, a popular choice. Ruth Weniger of Powerful Business Strategies LLC then led an exercise on the Value of WIN. Weniger asked attendees to share the value they get from WIN. One attendee noted, “This is where I come to get my inspiration.” Caspersen asked WIN members to consider joining the association’s committees. 357 members have been added so far this year, compared to 371 at the end of 2014. Updates were provided by the Marketing and Communications, Scholarship, Sponsorship, Governance, Nominating, MIW and Industry Outreach Committees. Attendees then proceeded to two of

EPA Considers Banning or Restricting Degreaser Use

On March 30, the EPA announced it is seeking input from small businesses, non-profit organizations, and local governments to formulate a potential rule on the use of Trichloroethylene (TCE). According to the EPA, “TCE is used primarily as a solvent to remove grease from metal parts … closely associated with the metal and automotive industries.” Specifically, the EPA will examine the risks resulting from the manufacture, processing and distribution in commerce, and use of TCE, as well as its manner of disposal. Under the Regulatory Flexibility Act, all agencies are required to establish a Small Business Advocacy Review (SBAR) Panel for rules that may have a significant economic impact on a substantial number of small entities. The SBAR panel will include federal representatives from the Small Business Administration (SBA), the Office of Management and Budget (OMB), and EPA. The EPA is currently seeking Small Entity Representatives (SERs) to consult the SBAR on the impact of the potential rule on their industry or community. Visit epa.gov/rfa/tsca6a-tce.html for information.

three 30-minute sessions. The first option was “Feedback: Giving and Receiving” by Marianne Godwin and Mary Yama of Mitchell International. Noting that most people are terrified of feedback because it’s rarely good, Godwin stated, but, “Feedback is a gift. If it’s given in the right manner, something can happen.” Giving quality feedback includes behavior and its impact. Next, perspective, and then a suggestion or request. After demonstrating, Yama and Godwin asked attendees to practice in pairs.

connection. Building on the description of the ideal customer, headlines capture the essence of what you can do for your customer by featuring what makes your business remarkable. The third breakout session was “Bridging Silos: Using Marketing Concepts to Attract, Retain and Grow Talent” with Sandra Herron of MiddlEdge, Inc. A WIN member survey of the most pressing issues identified: 1) aging workforce and a lack of younger, trained employees; 2) finding skilled, trained technicians and

Chair Denise Capersen introducing WIN’s 2015-16 Board to Conference attendees

“Reality Marketing” with Cheryl Senko of PPG Industries reviewed the general small business environment and your customer’s perspectives, opinions, challenges and pains. Defining your ideal customer and considering solutions to the inconvenience, loss of vehicle value and use, and unexpected expenses. Reality Marketing develops compelling “headlines” to address the customer’s discomfort and your solutions to create an emotional

Ford Issues Safety Recall for Upper I-Shaft Rivet Issue

Ford Motor Company is issuing a safety recall for approximately 12,300 2015-model Ford F-150 vehicles in North America for an upper Ishaft that might have been riveted improperly, potentially causing it to separate. If that happens, it could result in the loss of steering control without warning, increasing the risk of a crash. Ford is not aware of any accidents or injuries, but is aware of one report of loss of steering believed to be related to this condition. Affected vehicles include certain 2015 F-150 vehicles built at the Kansas City Assembly Plant from March 19, 2015 to March 21, 2015 and certain 2015 F-150 vehicles built at Dearborn Truck Plant from March 21, 2015 to March 30, 2015. There are 12,328 vehicles that might be affected in North America, including 8,963 in the United States and federalized territories, 3,348 in Canada and 17 in Mexico. Of those, 6,722 vehicles are unsold, meaning 5,606 vehicles are in customer’s hands. Dealers will inspect the upper Ishaft assembly and replace it if necessary at no cost to the customer.

68 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

reinforcing a pride in their craft; 3) employee involvement; and 4) retaining quality employees. Herron believes applying marketing tools to HR challenges is logical because employee behavior mimics consumer behavior and customer satisfaction is closely correlated to employee satisfaction. Good marketing begins with good research. Listening to the workforce also allows for decision-making based on

facts, rather than intuition and feelings. Herron explained segmentation which is the art and science of grouping customers with similar needs and preferences, as well as targeting, the process of identifying niches with specific, actionable needs and preferences. Positioning is the process of branding the organization in the mind of the target market. Herron explained how marketing people use the “marketing mix” to build capabilities for delivering on the customer promise, and this consists of produce, price, placing and promotion. Because marketing people know that both markets and consumer expectations change, they stay on top of trends. Likewise, when it comes to collision repair industry businesses interested in attracting and retaining quality employees, it’s important to heed relevant trends, such as learning opportunities, salary data and competitor benefits. WIN held their Gala Dinner and Most Influential Women Award ceremony on the last evening. On Wednesday morning, Sean Carey of SGC Management Consultants Inc. presented Connected Cars/Connected Claims followed by Ruth Weniger’s Time Management ‘There’s No Such Thing.’ As the 2015 WIN Educational Conference concluded, all in attendance seemed in agreement that the event was successful, informative and inspirational.

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WIN Congratulates 2015 MIW Honorees, Scholarship Recipients at Educational Conference

On Tuesday, May 6, WIN ended their day of educational training with a Gala Dinner and Award Ceremony in recognition of their 2015 Most Influential Women (MIW) honorees and 2015 scholarship recipients. After dinner, where photos of past and present MIW honorees were prominently displayed, WIN members and guests gathered to toast WIN as association Chair Denise Caspersen emphasized the importance of recognizing women in the industry.

2015 scholarship recipients. (l to r) Shelby Woods, Faith Schoovaerts, Leni Casares, Claudia Felici, Corina Rutland

Beverly Rook-Twibell and Petra Schroeder, Scholarship Committee Co-Chairs, then recognized WIN’s 2015 scholarship recipients. Jasmine Herrera from Main East High School received the scholarship for a second-

ary school. Also absent from the event were post-secondary scholarship recipients Kayla Adams of TN College of Applied Technology and Maria Carmen Mendez from Universal Technical Institute. Post-secondary scholarship winners were: Shelby Woods from Southwestern IA Community College, Faith Schoovaerts of Washburn Tech, Lake Technical Center’s Leni Casares, Claudia Felici of TX State Technical College, and Corina Rutland from Moultrie Technical College. WIN Sponsorship Chair Susanna Gotsch and Marcy Tieger reminded everyone that MIW began in 1999 under Akzo-Nobel. Emphasizing the importance of networking, Gotsch admitted that women generally aren’t as effective at this as men, “but MIWs don’t have that problem. Effective leaders engage with each other in a way that inspires ideas.” The first 2015 MIW recognized was Cheryl Boswell of DCR Systems LLC. She recognized her father as her inspiration. Lauren Fix, the Car Coach, was honored next, and she urged attendees to “Remember: nothing can stop you but yourself.” Lisa Siembab of CARSTAR and Executive Director of ASA-CT said, “there are no shortcuts to anyplace worth

going.” Ruth Weniger said she wanted to be “someone who is leaving something good behind.” Caspersen again thanked attendees as the evening resumed with cocktails and socializing. WIN’s 2015 MIW awards were sponsored by ABRA Auto Body and Glass, AkzoNobel, AllState, AudaExplore, Enterprise, Nationwide, CCC Information Services, Mitchell,

MIW winners with event announcers. (l to r) Marcy Tieger, Cheryl Boswell, Lisa Siembab, Ruth Weniger, Lauren Fix, Susanna Gotsch, Denise Caspersen

OEM Collision Repair Roundtable, PPG, Safelite Solutions, SCA Appraisal Company, and Valspar Automotive. WIN also acknowleged its returning board members include: ● Amy Nuttall, USAA ● Beverly Rook-Twibell, Safelite So-

lutions ● Denise Caspersen, National Autobody Parts Warehouse ● Jaclyn Byers, Estimatics Team Manager, State Farm Insurance Co. ● Jessica Rob, Business Service Development Specialist, Akzo Nobel Coatings, Inc. ● Katie Henwood, Axalta Coatings Systems ● Margaret Knell, I-CAR ● Marie Peevy, Owner, Automotive Training Coordinators, LLC. ● Melissa Miller, CARSTAR Franchise Systems ● Michelle Sullivan, Akzo Nobel Coatings, Inc. ● Nina Pedraza-Zinna, Director of Field Operations, SCA Appraisal ● Petra Schroeder, Axalta Coatings Systems ● Shellie Andrews, Dana’s Collision ● Susanna Gotsch, CCC Information Services ● Terri Neely, Nagy’s Collision Centers ● Trish Gould, Controller/Human Resources, Keenan Auto Body New board members were introduced and officially welcomed: ● Cheryl Boswell, DCR Systems ● Yen Hoang, UYL Finishing

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 69

Judge Orders Body Shop to Pay Owner of Special Needs Van $96K, Other Shops Step Up to the Job

A Travis County judge ruled on May Gaskins finally got the van 1 that the owner of an Austin body back in October, nearly 10 months shop who kept a woman’s special after the accident, and it went to anneeds van for more than nine months other body shop for repairs. will have to pay more than $96,000 Austin Mobility Solutions, to the van’s owner. Eagle Transmission and Jose Flores According to lawyer Stephen with Jose Flores Collision & Sales Stewart, D-Town Body Shop owner finished the work on Gaskin’s van Darren Wydermyer must pay for free. Stewart said more than 50 $96,883.11 to Sarah Gaskins, a percent of the repair work on woman from Hutto whose special Gaskin’s van was unfinished when needs van stayed in Wydermyer’s they towed it from D-Town Body shop for more than eight months. Shop. She finally got it back for Gaskins’ special needs van was good in February, just in time for her damaged in a car accident in January son’s birthday. 2014 when she lost control on icy According to the Better Busiroads. Gaskins’ son, Jacob, was born ness Bureau, D-Town Body Shop with cerebral palsy, and they relied has an ‘F’ rating and five comon the van to take him anywhere he plaints against the owner. The comEmail for repair Our issues. Most needed to go, includingRegister doctors’ ap-Your plaints allege pointments. Gaskins paid D-Town state that the repairs were not done more than $15,000 in insurance as promised, finished properly or money to repair the van. completed.

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ARA Attends 2015 ISRI Annual Convention by Chasidy Rae Sisk

On April 21-25, the Institute of Scrap Recycling Industries (ISRI) held their 2015 Annual Convention in

Vancouver, Canada. The Automotive Recyclers Association (ARA) was represented by their CEO Michael Wilson and President Ricky Young. Wilson notes, “The event went very well and wasSeen well-attended recyclers of all Be by OurbyReaders! trades, including many automotive reCALL Advertising Sales at: cyclers and ARA members.” Lauded as the largest gathering of recycling professionals in the world, the ISRI convention provided advertising@autobodynews.com professional automotive recyclers with the opportunity to attend variwww.autobodynews.com ous educational seminars on critical

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issues impacting the scrap recycling and automotive recycling industries. In addition to general business topics like managing employees, ARA members took particular interest in sessions pertaining to the scrap metal market, problem of metals theft, exports and interactions with law enforcement. Wilson explains, “Participation in the ISRI Conference is important to ARA and ARA members for many reasons. Many professional automotive recyclers also operate scrap metal processing arms of their business and interact daily with ISRI member companies. Legislation often has an impact on both industries as well.” Young and Wilson also met with ISRI leaders to discuss ways that the associations can collaborate to benefit both industries. ARA’s exhibit on the trade show floor promoted their upcoming 72nd Annual Convention, scheduled for October 7-10 in Charlotte, NC as a means of encouraging scrap recyclers to attend this fall’s event, creating even greater cooperation between the two industries.

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