July 2012 Northeast Edition by Autobody News

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VOL. 2 ISSUE 4 JULY 2012

Birmingham, AL, Shop Owners Drop State Farm’s Select Service Due to PartsTrader

State Farm PartsTrader Issue Resuscitates Mississippi Collision Repair Association

Several Birmingham, AL auto body shops have dropped State Farm rather than be forced to use its new PartsTrader procurement software within its Select Service Program. Auto body shops in Birmingham are located in one of four test markets where the pilot PartsTrader program, an online parts ordering/bidding software system developed by a New Zealand firm, is being tested. Usage of the PartsTrader software has been required by State Farm in four test markets nationwide: Tucson, AZ, Birmingham, AL, Grand Rapids, Mich. and Charlotte, NC. Approximately 10 percent of State Farm Select Service shops are participating in the pilot.

Anger over the proposed State Farm PartsTrader program revived a sleeping giant in Mississippi, revitalizing the previously dormant Mississippi Collision Repair Association, which met on May 23 for the first time in many years. “Due to many factors, our association as been inactive for almost eight years,” said Chad Smith, treasurer of the Mississippi Collision Repair Association and co- The Mississippi Collision Repair Association met on May owner of Smith Bros. Colli- 23 for the first time in 8 years, with special guest Attorsion Center with two ney General Jim Hood in attendance. locations in Brookhaven and Mc- controversy and negativity surroundSee Mississippi Reacts, Page 46 Comb. “But the new State Farm pro-

by Melanie Anderson

According to a report released by the Automotive Services Association (ASA), 17 Select Service shops in Birmingham, AL, removed themselves from the program prior to any registration or use of the application. “We are in a pilot—a pilot is still a process where you are learning,” said George Avery, a Property & Casualty Claims Auto Consultant who has been with State Farm for 33 years. “We had an unfortunate incident in Birmingham because some repair facilities decided to leave the Select Service program before we even got there. They made that decision before the pilot was even over or without even trying the tool, but that was a decision they felt they needed to make, See Birmingham Reacts, Page 12

gram has re-ignited our association’s fire!” The years may have gone by in comfort and complacency, but the

by Melanie Anderson

Rhode Island’s Auto Body Legislation Called “Great Consumer Bill” but Decried by Insurers Insurance companies are pushing for Rhode Island Gov. Lincoln Chafee to veto a bill passed by the General Assembly which is currently on the governor’s desk. The bill would allow auto body shops to directly sue insurers for reasonable reimbursement. Insurers are urging a veto to prevent a flood of law-

suits. The legislation was originally sponsored by the Auto Body Association of Rhode Island (ABARI) and sought by body shop owners, including the father and sister of state Rep. Peter Petrarca. It cleared its final legislative hurdle at 3:00 am on the final day of

Columnist David M. Brown starts a new series of articles on Nationwide Technician Training for Collision Repair Students. Special to Autobody News. see p. 52

the legislative session. Representatives from auto body shops say the bill is about equity. They claim they don’t have a chance to set their own rates because insurance companies refuse to negotiate. “It shouldn’t cost the consumer anything that’s not what it’s about. The

issue is more about getting the insurance companies to actually negotiate as opposed to taking a take it or leave it stance, which some of them currently do,” said Randy Bottella, president of the Auto Body Association of Rhode Island. See Great Consumer Bill, Page 32

We asked BMW North America: What Does it Take to Become a BMW Certified Collision Repair Center? Why there are only 69 in the US... see p. 48

CCC’s Director, Industry Analyst, Susanna E. Gotsch addresses Disruption as the New Normal —Macro Trends in the Industry Special to Autobody News

see p. 38

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2 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

Custom built by Bill Steele of Steele Kustoms, Oakdale, PA.

REGIONAL

$200k EPA Grant Helps Clean-up for

Parking Lot. . . . . . . . . . . . . . . . . . . . . . . . 16

Intern Program . . . . . . . . . . . . . . . . . . . . . . 7 COLUMNISTS

Advocates Want Tougher Laws for Staged

Evans - Building a Junior Motor Sport Vehicle

Allstate Recruits 200 Owners . . . . . . . . . . . . . 4

Franklin - Maximizing Referrals to Your Shop. 54

Accidents. . . . . . . . . . . . . . . . . . . . . . . . . 16

Auto Body Repairman Derek Schafer Dies

at Age 23 . . . . . . . . . . . . . . . . . . . . . . . . . 20

Body Shop Does Paint Job on Paint Blob . . . . 4

for 11-Year-Old Driver . . . . . . . . . . . . . . . . 50

Hey Toby! - Matrix Wand is a Game Changer . 41

Nigro - Are You Getting Paid for Your

Refinishing Work? . . . . . . . . . . . . . . . . . . 45

Canadian Shop Comments on RI Body Shop

Sisk - Al Brodeur’s Auto Body Offers Honesty,

Collision Tech Students Restore Sheriff's

Weaver - Take it to the Dealer! . . . . . . . . . . . 31

Legislation . . . . . . . . . . . . . . . . . . . . . . . . 22

Humvee . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Dead Bear Found Near NJ Shop . . . . . . . . . . . 7

Drug Ring Involving Body Shops Busted . . . . . 9

Inspires Loyalty . . . . . . . . . . . . . . . . . . . . 24

Yoswick - SCRS Meeting Discusses Insurance

Regulation, State Farm . . . . . . . . . . . . . . . 42

Epidemic of Scrap Metal Thefts Prompts

NATIONAL

Grand Sport Auto Body Opens 8 New Locations. 7

Arizona and California Schools Preparing

New Restrictive Bill. . . . . . . . . . . . . . . . . . 21

Insurers Take out Radio Ads Slamming

Auto Body Bill . . . . . . . . . . . . . . . . . . . . . 20

Jury Indicts Former NJ Shop Owners for

Trafficking . . . . . . . . . . . . . . . . . . . . . . . . 16

‘Back 2 Back’ Joins Calif. Jobber . . . . . . . . . . 4 for Collision Repair’s Future . . . . . . . . . . . 52

Birmingham, AL, Shop Owners Drop

State Farm’s Select Service Due to

PartsTrader . . . . . . . . . . . . . . . . . . . . . . . . 1

Leaders Auto Body Founder Duke Lanzilotti

Chef’s Stolen Lamborghini Found a Year Later . 4

Maaco Donates $110,000 to Children’s Miracle

DuPont Unveils New No. 24 Chevrolet Paint

Mahwah Council Suspends NJ Shop’s

Ford Ships New Escapes, Some Have Hail

Marshmallows for Solar-Powered Devices? . 20

Geico Settles Lawsuit with Gunder’s. . . . . . . . 3

Network at Annual Golf Tournament . . . . . 22

Tow Truck Driver . . . . . . . . . . . . . . . . . . . 26

Disruption Became the New Normal in 2011. 38

Scheme for 20th . . . . . . . . . . . . . . . . . . . 34

Damage . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Matters of the Heart—Body Shop Owner

Honda to Add Acura MDX to Alabama Plant

Michael Vick Visit Causes Backlash

Information Shops Can Use Presented at

NC State NAACP Wants Body Shop

Iowa Dealership Refuses to Participate

Nissan EVs Tested in New York Amid

Louisiana State Penitentiary Lifer Makes

Officials Arrest 32 Suspects in Meth Ring Sting . 8

Massachusetts New Car Dealers and R2R

Piscataway Vo-Tech Students Prepared

Mississippi Nissan Plant Starts New

Rich Weber, Shop Owner, Dies Waiting

PARTS Patent Bill Gets Three Additional

Saves Adjuster’s Life . . . . . . . . . . . . . . . . 18

at Dealership . . . . . . . . . . . . . . . . . . . . . . . 4

Vandalism Probe . . . . . . . . . . . . . . . . . . . . 6

Standard Debate. . . . . . . . . . . . . . . . . . . . . 6

Orso Settles Esurance Claim. . . . . . . . . . . . . . 7

Crushed Car. . . . . . . . . . . . . . . . . . . . . . . . 9

for Transplant . . . . . . . . . . . . . . . . . . . . . . . 4

Storm Chaser Chases Hail-Damaged Cars

for Shops . . . . . . . . . . . . . . . . . . . . . . . . . 17

Student Restores Comet for Senior Project . . 17

Students Flex Artistic Muscle Working

on Crush Car . . . . . . . . . . . . . . . . . . . . . . 10

Tow Truck Driver’s Murder Gets Buffalo

to Review 1974 Rules . . . . . . . . . . . . . . . 26

for Sales . . . . . . . . . . . . . . . . . . . . . . . . . 10

East Bay CAA Meeting . . . . . . . . . . . . . . . 36

in PartsTrader. . . . . . . . . . . . . . . . . . . . . . 22

ASE Triple Master Rank . . . . . . . . . . . . . . 35

Coalition Agree on Compromise Bill . . . . . 43

Altima Model . . . . . . . . . . . . . . . . . . . . . . 10

Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . 53

PartsTrader Issues Open Letter . . . . . . . . . . . 22

PCI Claims ABARI Legislation Has Increased

Repair Costs Twice National Avg. . . . . . . . 32

Rhode Island’s Auto Body Legislation Called “Great Consumer Bill” but

Decried by Insurers . . . . . . . . . . . . . . . . . . 1

Service, Diagnostic and Mechanical News . . 30

Trio in Philly Body Shop Robbery Ring

State Farm PartsTrader Issue Resuscitates

Unique Lego Car Sold for $1,626 for Charity. . 8

What it Takes for a BMW Dealership to

Convicted. . . . . . . . . . . . . . . . . . . . . . . . . 16

Used Tires Make a Fashion Statement. . . . . . 10

Women Auto Know Partners With Queens

Mississippi Collision Repair Association . . . 1

Become a BMW CCRC . . . . . . . . . . . . . . . 48

against his customer, who he says understood the issues and did not dispute any portion of their billing. Gunder also claims that the customer was not aware of the bonding of his vehicle, claiming he would testify that he had not even been aware of GEICO taking possession of his vehicle until it had been removed. In the process of arranging the depositions of GEICO’s claims manager and the field claims rep who bonded the vehicle, GEICO elected to avoid the depositions by paying Gunder’s their full billing as well as all legal fees and costs of $2,621.09 for a total amount of $3,593.09. “I surely hope this sets precedence that handling returned parts, with all the administrative efforts, costs and assumed liabilities involved, is not merely a ‘cost of doing business,’” said Ray Gunder. “As I have learned from my good friend and business consultant Barrett Smith of Auto Damage Experts, performing such activities for free could very well be ‘the cost of going out of business.’ After setting this legal precedence, I hope to resume a respectful relationship with GEICO for the benefit of our mutual customers and our respective companies.”

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

Indexof Advertisers

Dies at 93 . . . . . . . . . . . . . . . . . . . . . . . . . 6

Gunder’s Auto Center announced that GEICO has elected to settle a lawsuit Gunder’s filed on behalf of their customer rather than concede to deposition of their claims representatives. Upon deeming the customer’s vehicle a total loss and disputing Gunder’s billing for incurred charges (including a parts return fee), GEICO elected to post what is referred to as a “bond” through the county courts in the amount of Gunder’s billing ($972), which allowed GEICO to then take possession of the customer’s vehicle. As required, GEICO provided full payment of the disputed amount to the Clerk of Courts and was issued a “bond,” which legally required Gunder’s Auto Center to relinquish the vehicle along with their possessory lien on that vehicle. Gunder’s, according to stipulations in the bond statutes, was then confronted with having to file a lawsuit against the vehicle owner as the only means to exercise their right of recovery. If Gunder’s failed to file a lawsuit within 60 days, they would have then forfeited their right of collection, and the monies would have been refunded to GEICO, with Gunder’s receiving nothing. Ray Gunder, owner of Gunder’s, proceeded to file the lawsuit

Amato Agency. . . . . . . . . . . . . . . . 41 Audi Wholesale Parts Dealers. . . . 46 BMW Audi of Turnersville . . . . . . . . 6 BMW Wholesale Parts Dealers . . . 45 CCC Information Services. . . . . . . . 5 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . 21 Champion Pneumatic . . . . . . . . . . . 9 Classifieds . . . . . . . . . . . . . . . . . . . 55 DCH Family of BMW Stores . . . . . 13 Empire Auto Parts . . . . . . . . . . . . . 18 Equalizer Industries. . . . . . . . . . . . 10 Filtersforbooths.com . . . . . . . . . . . . 7 Ford Wholesale Parts Dealers. . . . 47 Fred Beans Parts. . . . . . . . . . . . . . 56 Garmat. . . . . . . . . . . . . . . . . . . . . . 22 Glanzmann Subaru . . . . . . . . . . . . 39 GM Wholesale Parts Dealers . . . . 54 Haydell . . . . . . . . . . . . . . . . . . . . . 35 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers. 40 Jaguar Wholesale Parts Dealers. . 36 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 34 Koeppel VW-Mazda. . . . . . . . . . . . 20 Lazare Kia . . . . . . . . . . . . . . . . . . . 37 Lexus of Massapequa . . . . . . . . . . 16

Serving New York, New Jersey, Pennsylvania, Delaware and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

Contents

Geico Settles Lawsuit with Gunder’s

Lexus Wholesale Parts Dealers. . . 52 Maxon Hyundai . . . . . . . . . . . . . . . 11 Maxon Mazda . . . . . . . . . . . . . . . . 27 Mazda Wholesale Parts Dealers . . 43 Metric Subaru . . . . . . . . . . . . . . . . 24 Millennium Hyundai . . . . . . . . . . . 17 MOPAR Wholesale Parts Dealers . 25 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 51 Nucar Mazda . . . . . . . . . . . . . . . . . 23 Plaza Auto Mall . . . . . . . . . . . . . . . 19 Porsche Wholesale Parts Dealers. 44 PPG . . . . . . . . . . . . . . . . . . . . . . . . . 2 Safety Regulations Strategies. . . . . 4 SCA Appraisal Company . . . . . . . 31 Scion Wholesale Parts Dealers. . . 53 Security Dodge-Chrysler-Jeep . . . . 8 Solution Finish. . . . . . . . . . . . . . . . 50 Subaru Wholesale Parts Dealers DE, South NJ, PA . . . . . . . . . 14-15 Subaru Wholesale Parts Dealers North NJ, NY . . . . . . . . . . . . . . . 38 Thompson Organization . . . . . . . . 33 Toyota Wholesale Parts Dealers . . 48 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 42 Volvo Wholesale Parts Dealers . . . 49

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 3

Body Shop Does Paint Job on Paint Blob

On Broad Street in Philadelphia, next to the Pennsylvania Academy of the Fine Arts, a giant orange paint glob sits on the sidewalk underneath the paint torch. The dollop is positioned to appear as if it was dropped from the top of the brush of Claes Oldenburg’s “Paint Torch,” which towers several stories above. Few have probably noticed, though, that the blob is now backwards. When the sculpture was originally installed, the paintdrop’s peak was on the brush side. Pennsylvania Now it rises toacademy of ward Broad Street. the fine arts Skateboarders have made a habit of detouring from the sidewalk to skip off the glob, scratching and marking its surface, said Harry Philbrick, museum director at the Pennsylvania Academy of the Fine Arts. So the damaged drop got shipped via tow truck to an Edgemont autobody shop, Keenan Auto Body West. “The whole thing was covered with marks,” shop manager Max Sorensen said of the glob. “We polished the whole entire piece with a

buffer and rubbing compound.” Gouges in the fiberglass had to be filled with clear resin, because the tip glows at night, thanks to a light inside. The brush atop “The Paint Torch” also shines nocturnally. After sanding, the piece was sprayed with a clear sealer, then orange base coat, followed by a new, stronger ceramic clear coat. “It’s basically like the paint that’s on a Mercedez-Benz,” Sorensen said. As for cost, he’d only say, imagine a car getting a first-class paint job. On May 30, the piece was reinstalled on Broad Street, surrounded by a moat of uneven paving stones, a kind of rumble strip for skateboards. It was also turned 180 degrees. On purpose. Matching, it turns out, the sculptor’s original design. The hope was that, with the most upright side toward the sidewalk, skateboarders would be less tempted. A few days later, though, the dollop already had a few new scuff marks. The piece is tougher to scratch, so chances are good the marks can be harmlessly removed with rubbing compound, Sorensen said. Under a new City Council proposal, those skateboarding, bicycling or roller-blading on public art or monuments could be jailed for 90 days and fined $2,000.

A Lamborghini stolen from celebrity chef Guy Fieri was found a year after it went missing. The Lambo was taken

by a thief who literally rappelled off the roof of a building in order to get access to Fieri’s prize possession. It seems the perpetrator had a thing for stealthy operations—the ve-

hicle turned up during an investigation that began after a motorcyclist wearing all black fired a gun into a parked car. The gunman was a 17-yearold boy. Fieri’s car was located in a storage container in Point Richmond, CA, along with the boy’s motorcycle and apparent evidence linking him to the shooting. Fieri, for his part, is happy to have his Lamborghini back: “I would like to thank the Marin County Sheriff’s Office and the Mill Valley Police Department for their hard work and effort in the recovery of my car. I’m glad we can put this behind us, and feel better knowing that justice is being served.”

Allstate Recruits 200 Owners

‘Back 2 Back’ Joins Calif. Jobber

Chef’s Stolen Lamborghini Found a Year Later

In May, Allstate announced a major push to recruit nearly 200 new agency owners in the Mid-Atlantic and Northeastern regions. Nationally, Allstate had about 10,000 Allstateexclusive agencies last year, down from about 11,500 in 2010.

St. Louis-based Back 2 Basics Marketing LLC has partnered with California Color Source Inc., a supplier for the collision repair industry in the San Francisco Bay area, to be the official marketing agency for that California company’s clients.

4 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

Rich Weber, Shop Owner, Dies Waiting for Transplant

Rich Weber, the former owner of Weber Auto Body died June 15 while awaiting a potentially life-saving transplant in University Hospital in Newark, NJ. He was 60. Rich owned and operated Weber Auto Body in Kearny and North Arlington and Weber Marine in Bricktown. Weber was a former board member of the Alliance of Automotive Service Providers of New Jersey. He was Past President of The Lyons Club and was an elected member of the Kearny Board of Education for 12 years and also sat on the Board of The Auto Body Association and The Arlington Players club. He is survived by his wife Debbie (nee Fiduccia), his children and their spouses Amy and Noel Heberling and Matthew and Amy Weber. Brother of David and the late Leonard Weber, he is also survived by his mother-in-law Henrietta Mawhinney and his grandchildren Maeve and Jake. Rich was a candidate for a lifesaving transplant that sadly didn’t happen. His family believes strongly in the gift of life. In lieu of other offers, please consider making a donation to The Sharing Network/Donate Life (DONATE).

Michael Vick Visit Causes Backlash at Dealership

A seemingly innocuous visit from Philadelphia Eagles quarterback Michael Vick caused such a backlash for a Toyota dealership in Henderson, NV, that it was forced to shut down the promotional page on its website. Vick, who was convicted of dogfighting charges in 2007, was in town for a youth football camp and stopped by the dealership to sign autographs and meet with fans, the Las Vegas Sun reported. But after the dealership posted pictures of Vick’s appearance on its website, angry comments started flying in. One commenter described Vick as a “dog killer,” while another threatened to beat him up. Others said they would boycott the dealership for sponsoring Vick for promotional and charity events. The dealership was initially just deleting comments but eventually had to shut down the page. “We’re just trying to do something right for the kids and people just forget about that,” said Stephanie Bernas, marketing manager and social media director for the dealership.

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 5

Leaders Auto Body Founder Duke Lanzilotti Dies at 93

Angelo “Duke” Lanzilotti, 93, of New Milford, died May 24. Born in Hoboken, he was a resident of New Milford for the last 50 years. While serving his country in the Army from 1944–1946 in World War II, he was the recipient of a Purple Heart. Mr. Lanzilotti went on to become co-owner of Leaders Auto Body in Union City. Then, in 1963, he founded Garden State Auto Body in Bergenfield, a business currently operated by his son, Anthony. He was an active member of the Church of the Ascension, New Milford as an alter server, and a member of the Disabled American Veterans in Bergenfield. He is survived by Frances (nee Sicardi), his wife of 62 years; sons, Anthony and his wife Nancy, Gary and his wife Eve, and Dennis and his wife Susan; and a brother, Anthony and his wife Maureen. He was preceded in death by a sister, Connie Lanzilotti. He was also the grandfather of David and his wife Marian, Jason and his wife Tracy, Christopher, Peter, Christina, Tracy and Marcus; and great-grandfather of Anthony, Giana, Michael and Marco.

NC State NAACP Wants Body Shop Vandalism Probe

State NAACP leaders are asking local, state and federal law enforcement agencies to conduct a full investigation into vandalism of a black-owned business in Caswell County near Reidsville, NC. Caswell investigators hesitate to call it a hate crime because there are no suspects, but NAACP officials who visited the business owner say otherwise. Ernie Pinnix awoke early to find the exterior of his auto body shop spray-painted with the words “Monument is coming back.” All six of the tires on his tow truck were slashed, and the message “F--- Obama” was painted on the garage and scratched into the body of his truck. Pinnix is an outspoken opponent of returning a Confederate soldier monument to downtown Reidsville. The statue was knocked off its base last year by a Greensboro driver. Pinnix and his wife also recently hosted a campaign fundraiser for President Barack Obama. Al McSurely of the North Carolina State Conference of the NAACP said it was clear the Pinnexes were targeted for their activism and it was a hate crime.

Nissan EVs Tested in New York Amid Standard Debate Nissan is supplying New York City with fuel-efficient cabs, including six electric cars for testing, but acknowledged uncertainties about an ongoing “debate” over charging standards for electric vehicles. The battle in fast-charging stations, the equivalent of gasoline stands for electric vehicles, is threatening to turn into a futuristic replay of other major platform wars like VHS of Panasonic vs. Sony’s Beta in video. Nissan Executive Vice President Andy Palmer said the debate was still going on, and it was unknown whether nations will adopt the CHAdeMo used by Nissan, or the competing one called Combo backed by General Motors Co. and European automakers. The standards use different plugs and aren’t compatible. Palmer said Nissan as a leader in electric vehicles must persuade others that its standard is the best. “The disadvantage is that we are setting the standard,” he said, adding that Nissan was “engaged in that debate” over charging standards. CHAdeMo, which comes from the words “charge” and “move,” and sounds like Japanese for “Care for some tea?” is also backed by Mitsubishi Motors. Nissan said its gas-engine NV200

vehicle, painted yellow, is set to start running as New York taxis in October 2013, and six Leaf electric vehicles will be part of a pilot program this year. But it is still unclear whether New York will opt for CHAdeMo. Electric vehicles’ limited cruise range means they can be used only for short trips, or towns must invest in building charging stations. “If we can get the combination right, the EV is very viable,” said Palmer. At least one electric-car competitor has proposed using replacement batteries for electric vehicles so they can keep running, rather than using charging stations, Palmer said. Although charging stations would not be needed, service stations would have to pick up the used batteries. Electric vehicles can also be recharged from regular home sockets, but that takes longer. Growing concerns over global warming and pollution are major boosts for the zero-emission electric car.

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Orso Settles Esurance Claim

Mike Orso of Nick Orso’s Body Shop in Syracuse, N.Y., said last week he has settled assignment of proceeds cases with Esurance over “short-pay claims” totaling more than $6,000. Orso, who said he filed more than $1 million in new assignment of proceeds cases in April alone, said the amount owed by Esurance involved charges for OEM versus non-OEM parts, omissions of P-page procedures, labor rate differences and “caps” on paint materials. “Many companies, at least the smarter ones, now negotiate and settle those claims,” Orso said.

Dead Bear Found Near NJ Shop

Workers at a Patterson auto body shop were surprised to find a dead bear cub last month. The employees of Stan’s Auto Body on Route 22 first noticed the cub, which appeared to weigh about 100 lbs., near where a car struck a utility pole in front of the business at 3130 Route 22, said parts manager Kyle Mishk, 23. They suspect the cub may have been hit by a passing vehicle. Workers initially saw the cub carcass on the side of the road, but after the long Memorial Day weekend, the carcass had been dragged about 10 feet into the business parking lot.

Grand Sport Auto Body Opens 8 New Locations

Grand Sport Auto Body & Glass has expanded with 8 new locations starting in West Chester, PA, and now covering a wide area throughout Chester and Montgomery Counties. Grand Sport Auto has been providing auto collision repair services for over 25 years as the first body shop to open in West Chester, PA. in 1982. This is where the business got started with the philosophy of taking it one customer at a time. Fred Gunther, the founder and president of Grand Sport Auto, takes great pride in servicing his customers with the highest quality workmanship and exceptional experience. The primary goal is to handle customers’ requirements and meet their individual needs. If repairs are paid out of pocket, the staff at Grand Sport will work to develop a plan that meets not only the budget but the expectations of the clients as well. If an insurance company pays for the repairs, Grand Sport will assist in handling any claims directly, making the entire process hassle-free for our clients. By upgrading to the latest advancements in automotive technologies, they can provide customers with the latest techniques.

Women Auto Know Partners With Queens Intern Program

Women Auto Know has formally launched its internship program in cooperation with Queens College in NY. Involved with the program are the Business and Liberal Arts program as well as the Career Development & Internship office, which have provided Women Auto Know with ambitious and bright young students anxious to gain experience in the auto industry, as well as business as a whole. Audra Fordin, fourth generation owner and president of Great Bear Auto Repair and Body Shop, is the founder of Women Auto Know. Women Auto Know has a long standing relationship with Queens College and naturally turned to them when starting the internship program. The Women Auto Know internship program consists of assistants in administration, accounting, communications, workshop support and graphics. Depending on the students’ schedule, interns will be working between 6–18 hours a week with a maximum of 150 hours. The interns will be earning credit and or a stipend, plus travel expenses.

Collision Tech Students Restore Sheriff’s Humvee

The Monroe County, NY, Sheriff’s Office recently unveiled its newest vehicle and it didn’t cost the taxpayers anything. A surplus humvee was donated by the United States military to the Sheriff’s office free of charge. Students in the auto body collision and repair tech class at BOCES 2 in Spencerport did the necessary body work and repainted the vehicle for the Sheriff’s Office Fleet. “It was a good experience and it was hard to work on because of the paint that was on there. It seemed like forever getting it off, but when it was done, it looked good and it paid off. We help them out and they help us out,” said Kevin Christie, Greece Arcadia student. “I appreciate what they do for us and how they put their lives at risk for us every day. I just feel this is something that we can pay back to them for all they hard work that they’ve done for us,” said Halle Griffin, Brockport High School student. The vehicle will be used by deputies for operational issues within the Sheriff’s Office Tactical Unit and in emergency situations.

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Unique Lego Car Sold for $1,626 for Charity

Paul Boratko of Johnstown, PA raised more than he expected with the online auction of a special Lego car – the Vampire GT – he designed and built. The 38-year-old Johnstown man works in auto body repair during the day, but at night he builds Lego cars. Boratko’s creations are not exactly “toys,” however. His cars are highly technical – built with the help of a friend in California who is an aeronautical engineer. The auto body repairman completed the sale on eBay for $1,626 – $626 more than his goal – and has donated the money to the Make-AWish Foundation. “Paypal took $65.98 in fees, but I am going to add that amount out of my own personal account to stay true to my word that every cent of the final bid will go to Make-A-Wish,” Boratko said. The talented Lego builder decided to hold the fundraiser after meeting a young fan who had serious physical difficulties. The eBay auction was won by Derek Ward of the United Kingdom. Boratko, whose work has been featured in AutoTrends Magazine, entered the car’s design on a Lego website. The public is invited to vote on

the entries at no cost. Those receiving 10,000 votes are considered by the company to be made into kits and sold to the public. Boratko would love to see that happen with the Vampire GT. “It would be cool to walk through Toys R Us and you see your name on the (box),” Boratko said. “It could become a reality.” In the world of Lego enthusiasts, Boratko is a celebrity of sorts. A website dedicated to his creations has followers around the world. It was an encounter at a Lego trade show that convinced Boratko to do something for charity when he met a young boy with his father. Boratko found out the boy was celebrating his 21st birthday. “I thought he was about 12. It was very, very humbling.” Boratko returned home and told his wife that he wanted to do something for charity. Amanda Boratko, who often accompanies her husband to trade shows, said she is extremely proud of his talents. “I love watching him create something from nothing,” she said. “The way he figures out how to put so many functions in the car, like a working engine and transmission, still blows my mind.”

8 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

Officials Arrest 32 Suspects in Meth Ring Sting

Montgomery and Philadelphia County authorities have reported the arrest of 32 suspects for their roles in a methamphetamine trafficking organization in those counties. In 2011, detectives from the Montgomery County District Attorney’s Narcotics Enforcement Team (NET) began receiving information about the drug trafficking activities of Hatfield residents: Francesco Messina, Jeffrey Penna, and David Penna. Further investigation led detectives to the drug trafficking activity of Troy Dudas of Limerick Township. The Montgomery County District Attorney applied to the Superior Court of Pennsylvania for the use of wiretaps and electronic surveillance on cell phones utilized by Francesco Messina and Troy Dudas. District Attorney Risa Vetri Ferman received permission from the Pennsylvania Superior Court to intercept the cell phones of both Messina and Dudas. The wiretap interceptions began on Feb. 8, 2012 and concluded on Feb. 29, 2012 when 14 search warrants were executed throughout Montgomery and Philadelphia counties. One of those locations was Cosmo Motors, a large auto-body shop at 101 E. Blaine St. in Lansdale. At these locations quantities of

methamphetamine, drug paraphernalia, and firearms were recovered and seized. Detectives discovered the structure of the organization consisting of meth distributers, users, and pushers. This methamphetamine trafficking organization was exposed as a “family affair.” The main targets were the Pena brothers who allegedly used and distributed methamphetamine from Jeffrey Penna’s Hatfield Township residence. The Penna brothers were allegedly joined by Messina in this distribution network. Messina allegedly used and distributed methamphetamine to several people including his sisterin-law, Lisa Messina. Conversations between Frank and Lisa Messina were intercepted by law enforcement detailing their method of operation in the distribution and use of this powerful drug. This investigation also revealed links to a Philadelphia methamphetamine distribution ring headed by brothers Juan and Antonio Encarnacion. These networks continued to operate until they were shut down by Montgomery County law enforcement.

Drug Ring Involving Body Shops Busted

The Philadelphia District Attorney has announced that a major interstate cocaine trafficking ring, with connections to the Sinaloa Cartel in Mexico, has been broken up. The DAs office began the investigation in February following a tip from an informant that several garages and auto body shops throughout the city were equipping vehicles with compartments to hide and transport drugs. The vehicles would go to New York, pick up shipments of cocaine, and return to Philadelphia. The three month investigation, which included the use of wiretaps, culminated in the arrest of 17 people, including a husband and wife team from Puerto Rico. Investigators say they also seized 28 kilos of cocaine with a street value close to $3 million, $300,000 in cash, 16 vehicles, 11 properties and five guns. Authorities are crediting the Dangerous Drug Offenders Unit, DEA members in Philadelphia and New York, and members of the Philadelphia, Bensalem, Cheltenham, Bristol, Middletown and Abington police

departments with helping to shut down the operation. This bust is a direct result of the September, 2011 arrests of members of the Sinaloa Cartel. The Sinaloa Cartel operates from Sinaloa and Juarez, Mexico. It’s known as one of the largest and most powerful drug cartels in the world. Officials say one of the suspects arrested in that operation became an informant in the latest case and initially led investigators to one of the garages equipping the transport vehicles. The information from that garage resulted in the identification of other garages and body shops involved in the drug ring. “Back in September, we announced that we had effectively cut off the head of a dangerous and deadly monster before it ever had a chance of poisoning our streets,” says District Attorney Seth Williams. “Now thanks to those arrests not only did we stop the Sinaloa Cartel from becoming a viable operation in Philadelphia, we have also shut down another drug ring that was trying to destroy our city.”

Getting cars back on the road usually is the goal of students of auto collision repair technology at the Piscataway campus of the Middlesex County Vocational and Technical Schools in New Jersey. They had never before prepared a car for destruction. But that is exactly what the students did to a Dodge Stratus of indeterminate age as they got the vehicle ready to be crushed during the Advance Auto Parts Monster Jam “Path of Destruction” event, which was held June 16 at MetLife Stadium in East Rutherford. About two dozen MCVTS students participated in the project under the direction of collision repair technology teacher Henry Meklune. As part of their preparation for careers in collision repair, the students often work on police cars for area law enforcement agencies. As some students were working on the crush car recently, other classmates were in the spray booth putting the finishing touches on the paint job of an undercover car for the Edison Police Department. It was hot as students applied filler on some serious dents and others sanded the body smooth on the crush car. “They’re working under actual shop conditions,” Meklune said. “It is hot and getting hotter.” The producers of Monster Jam supplied the car, which was “in bad

shape,” according to Dr. Todd Bonsall, MCVTS director of career and technical education. “They had to chain the engine up just so they could move it,” Bonsall said.

Piscataway Vo-Tech Students Prepared Crushed Car

“We took the door panels off and pulled some dents out,” said sophomore Frank Rapetti of Hopelawn, who said he would be sad to see the car crushed after having worked on it. Senior Jahshaun Freeman of Carteret, on the other hand, said he was “anxious to see it get crushed.” Meklune said the car would be painted pink in honor of female Monster Jam driver Madusa. The students also will apply the Monster Jam logo and their school’s name. Piscataway Vo-Tech also received a visit from three Monster Jam drivers, George Balhan, who drives “Mohawk Warrior,” Bari Musawwir, driver of “Spider-Man,” and Lupe Soza, driver of “Advance Auto Parts Grinder.” www.autobodynews.com | JULY 2012 AUTOBODY NEWS 9

Used Tires Make a Fashion Statement Women Auto Know, a not for profit that promotes education, environmental responsibility and employment opportunities for veterans and those with disabilities, announced its alignment with Maryhaven Center of Hope in Yaphank, Long Island and the Northport Veterans Association. The two organizations will be responsible for the manufacturing and fulfillment of products made by Women Auto Know from recycled tires. Audra Fordin, Founder and Executive Director of Women Auto Know, developed the program as a conscious statement to address the problems the environment faces with discarded tires. According to the Environmental Protection Agency’s most recent data, an estimated 27 million scrap tires are put in landfills annually. Prompted to make a change, Fordin realized she could take the discarded tires and turn them into practical accessories while simultaneously helping the environment and helping those not easily employed. Fordin, a recognized Girl Scout Great, first took the idea to the Girl Scouts as part of her mission to introduce girls to the auto industry. Women make up 1.2% of the auto industry and it is Fordin’s goal to bring more women into the field.

Honda to Add Acura MDX to Alabama Plant for Sales

Honda is adding the Acura MDX sport utility to the production lineup in Alabama next year, and the move will open up a new export market for the Lincoln plant’s products. Some of the MDX vehicles made at the plant will be shipped to China, said Tom Shoupe, head of Honda’s Alabama operations. A small percentage of the plant’s vehicles, now Odyssey minivans, Pilot SUVs and Ridgeline pickups, are exported each year to markets including the Middle East, South America and Central America. Pilots are also shipped to Russia. The MDX, now produced at a Honda plant in Canada, has been exported to China for several years in small numbers, so that will continue after the production switch. Last year, 485 MDX vehicles were shipped to China, Honda spokesman Ed Miller said. The SUV is sold in the United States. The MDX move will give Honda more room in Canada to build the popular CR-V SUV. Acura is Honda’s luxury vehicle division, and the MDX will be the first Acura product built in Alabama.

As a fourth generation owner/operator of one of America’s most successful auto franchises, Great Bear, Fordin used her Flushing location to not only become a leader in the industry but a mentor for all women. By teaching the girl scouts to make fashionable belts as well as pet leashes out of tires, Fordin was able to expose the girls to tires in a user friendly way. “If you can wear a tire, you can fix or change a tire” explained Fordin. The environmental impact alone is well worth the commitment to this project. Tire piles in landfills are breeding grounds for mosquitoes and disease carrying rodents as well as a high risk for fires. Tire fires can burn for extended periods of time and emit a thick black smoke and an oily residue which pollutes the air, the soil and ground water. Fordin hopes that making a fashion statement will also male an environmental one. Fordin believes that “If we can stop putting tires in landfills we can truly make a difference.”

Autobody News is pleased to announce our

Great Lakes Edition will publish in September!

Mississippi Nissan Plant Starts New Altima Model

The Canton Nissan plant in Mississipi began making the Altima back in 2004, and now its employees will work on the new, fifth-generation model, as the 2013 model year car has begun rolling off the line. The Canton plant, which also builds body-on-frame trucks, has put full priority on the 2013 Altima, building it in three shifts. The new 2013 model year midsize sedan is actually based on the old model’s platform, but it has been heavily restyled and modified. The base 2013 Altima comes with a 2.5-liter 182hp inline-four, starting at $21,500 and the top-of-the line model gets a 3.5-liter V6, in SL trim, it will grab just over $30,000. “Today’s successful start of production of the Nissan Altima, our top-selling vehicle, only can happen because of the support of our dedicated workforce in Canton,” said Bill Krueger, vice chairman, Nissan Americas. “The Canton team builds among the highest-quality vehicles in the industry, and we are looking forward to bringing their production expertise to the next generation of this award-winning car.”

10 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

Students Flex Artistic Muscle Working on Crush Car

Students in the auto body class at Morris County School of Technology (MCST) in Denville, NJ diligently worked to transform a car into a work of art, just for it to be destroyed. This may sound like madness, but it was actually an opportunity for the students to flex their artistic muscle. The crush car was on display at a pit party before being crushed on June 16 during Monster Jam Path of Destruction at MetLife Stadium. MCST wa one of only three vocational schools in New Jersey to participate. The people behind Monster Jam, Feld Motor Sports, Inc., provided another treat for the students, a chance to meet drivers from Mohawk Warrior, Spider-Man, and the People’s Truck, Advance Auto Parts Grinder: George Balhan, Bari Musawwir, and Lupe Soza. Cassandra Lorenzo of Mine Hill was one of the dozen MCST students who adorned the car with artwork that celebrated both the event and the school. Cassandra noted that MCST’s devil mascot had to be represented as cute and funny, not violent. This was just one of the challenges she and her partner faced. They, like the other students, had to submit their designs to their teacher, members of the Board of Education, and representatives of Feld.

The students were literally sent back to the drawing board many times. Cassandra, who is in her junior year, said this was a departure from her usual art style which is to draw whatever comes to mind. For this project, she had to be more mindful about it and keep to “what was needed and be part of a team.” Most of the students involved are boys, but for Cassandra, being a girl interested in cars is nothing out of the ordinary. In fact, one could say it is in her blood. Her uncle owns an auto body shop and she has often worked on cars with her father. Cassandra’s area of interest is not tinkering in the engine, but quite apt for this project, fixing up cars’ exteriors. She likes “painting them and making things better.” For Anthony Xochipa, the project opened his eyes to another career possibility. The sophomore learned that it is not enough to be satisfied with the drawing on the paper, but with it on the car, as well. At that moment, his feelings were mixed. He was pleased with his devil, but was experiencing some issues with the paint. Cassandra and Anthony’s teacher, Louis Rosso said, “It is a great opportunity for the kids to showcase their artistry, drawing capability and how to transfer artwork on to a car.

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Continued from Cover

Birmingham Reacts

so we certainly have to respect that. We were disappointed they left the program, they were obviously high performers. We continue doing the test, we had more than (those 17 shops) in the market area,” Avery said. Tim Crawford, who has owned and operated Hwy 280 Paint and Body at 19360 Hwy 280 in Birmingham, for 40 years, was one of those shops. He recently dropped State Farm after a long and beneficial relationship, opting to remove his shop from State Farm’s Select Service program than be forced to use the PartsTrader software. “I have been on the State Farm Select Service program since the very beginning, a long time. We’ve had a very good relationship with State Farm,” said Crawford. “But through the years, we have realized that they have started controlling different parts of my business, from labor rates and labor times ... to this new PartsTrader program, which has really taken the last aspect of my business out of my control. At that point, State Farm has total control over my business, and that’s not what I went into business for. When they start dictating things to the point that it takes all of my profit away, I’m gonna have to take a stand and take my business back.” Crawford’s three main objections to the PartsTrader program are 1) being forced to use only the vendors who sign up with PartsTrader, 2) losing parts profits and 3) waiting on parts through the bidding process which could delay jobs getting starting and causing a “clerical nightmare.” According to the ASA fact-finding report released in early June, the time frame for “parts pricing” is set at two hours as a default and can be adjusted to one hour by the repairer, or the repairer can set a custom close time greater than one hour. Pricing remains open for the allotted time, and during this process, shops are unable to execute on the estimate. In addition, “the PartsTrader program would take me from the vendors I normally use, which was going to take my business out of the Birmingham area, and make me use vendors I have no relationship with,” Crawford said, adding that none of the Birmingham vendors he uses opted to sign up with PartsTrader. The ASA report notes that partic-

ipation in the Select Service program is a collision shop decision, but that participation in the PartsTrader program is a supplier decision. “Their agreement with us has a provision that they (repair shops) are required to use the tool, and that has been in our agreement for a long time,” said Avery. “We have a tool that we believe meets the need of the customer. Our goal is to have a win-win for everybody, but there could be a repairer who doesn’t feels that way and chooses to leave the Select Service program because they don’t feel it is in their best interest and that is something they need to decide. But our goal is to get information from all the stakeholders, which would include the repairers and the suppliers, to have a win for everybody. The goal is to improve across the board for our shared customer.” Three weeks after dropping State Farm, Crawford says business is booming. “I am encouraged by the amount of work I have not having State Farm. They were probably 50% of my business, but I have not found any reduction in my business by leaving them,” Crawford said. “Of course, my customers came to me for what we do for them, not because I was a State Farm shop. They come because of the type of work we do, our customer service, and the quality of our work. I am not really worried about State Farm sending me work or not.” He added, “I feel that State Farm does not have enough good shops left in Birmingham to handle their business. In the Birmingham area, they lost close to approximately 40% of their quality shops that did close to 70% of their work.” Don Meadows has been the body shop manager for 23 years with Jim Burke Automotive, a new car dealership that sells seven lines and has been in business since 1945. They are located at 517 14th St. North in Birmingham. The high volume dealership does $450,000 a month in business. They aren’t sure yet how much business they’ve lost after being dropped by Select Service due to their refusal to try PartsTrader. According to Meadows, the dealership didn’t want to try the PartsTrader software because they didn’t like the idea of having all parts purchases going through a third-party vendor. “We were told if we did not use PartsTrader, we would be taken off Select Service, and we were the day the PartsTrader program started,” Mead-

12 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

ows said, adding that their customers are being affected by having to wait one to three days for State Farm to inspect their vehicles for estimates and supplements. “I have called several shops that are using PartsTrader and none have had anything good to say about the program,” Meadows said. He feels State Farm is implementing PartsTrader because “they want complete control of the repair process.” John Fagan, owner of Fagan Collision Repair in Moody, AL., has been in business for 15 years and also opted out of Select Service rather than get on board with PartsTrader. He doesn’t like the idea of having to use the lowest price bid on parts or the fact that State Farm “threw the LKQ (like and kind quality) parts and aftermarket parts into the same mix. It if was just a parts locater for used parts, it might have been OK.” But, mainly, he said, he is concerned about “the uncertainty of the LKQ parts they want you to buy.” He reported he hadn’t lost any business in the first few weeks after dropping State Farm. Donnie Burgett, owner of Donnie’s Paint & Body, which has been in business for 22 years in Trussville, AL., also opted to drop out of State Farm’s Select Service rather than use PartsTrader. He feels that if he had gone on the PartsTrader program, he’d be working more than the 10-11 hours a day he was already working handling State Farm clients and claims. The PartsTrader program would bring additional administrative work, less money and a reduction in profits, he said. “I decided to bail out of the program after several years because I didn’t see any benefit for my company or myself in any way whatsoever,” Burgett said. “PartsTrader was going to create discounts and maybe even ill feelings with my vendors because they were going to have to bid on parts and I felt like parts would be coming in from every direction on one job, instead of from one direction. It’s all about discounts for State Farm, and I don’t have a problem with discounts, except when it is going to cost me money. Being on the program would cause me extra work, an extra two hours per claim on my part, to save State Farm money and cost me money and reduce my profits.” He said ‘no thanks.’ Additionally, he said he doesn’t know of any suppliers participating in the program. According to the ASA fact-finding study, the report stated, “Currently in the pilot, shops are experiencing ini-

tial increased administrative costs at an estimate of 30 minutes daily. This is being evaluated within the pilot. PartsTrader states that this is true with any new system, but that over time, it will be more efficient and save time. PartsTrader intends to contract an independent study to validate this.” Burgett feels some satisfaction about dropping State Farm’s Select Service. Today, he works a normal eight-hour day instead of 10 or 11 hours a day. Three weeks off Select Service, he sees no effect on his business. “If there is going to be any effect, it has not hit yet,” he said. “It is like it was 15 years ago. They send an appraiser out and we negotiate repairs on a claim and they do all the administrative work and we just do the body work again like it used to be.” Like other body show owners in his area, Burgett reports that he doesn’t know anyone who is happy with the PartsTrader program. “Most of my competitors who are doing the program are doing it in desperation, for fear they might lose State Farm business ... they are afraid... but they aren’t happy.” Now that he is no longer tied to State Farm, Burgett feels he did the right thing. “I felt like this was something I needed to do a couple years ago, but like my competitors, I felt like I needed them (State Farm) ... until it came to this and it made my final decision to bail out of the program. It’s all about their profits. They will realize more savings, which will make them realize more profits, at the expense of the body shops and parts vendors. I am surprised this program hasn’t gone away yet.” According to ASA’s findings to date, the majority of repairers making comments are not in favor of the new State Farm application. “While the majority of sentiments are coming from non-participating shops (which make up approximately 75 percent of the facility market), the actions of some of the Select Service shops (removing themselves from the program) also demonstrate lack of support for the application,” the report said. In response to the controversy surrounding the PartsTrader issue, State Farm in early June sent an open letter to all of its 10,300 Select Service shops and repair facilities throughout the United States and Canada. Avery noted that the letter explained State Farm’s general intent, the status of the program, the overall process, as well as acknowledging the negative comments See Birmingham Reacts, Page 51

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 15

Trio in Philly Body Shop Robbery Ring Convicted

A federal jury convicted Emmanuel Duran, 28, Raheem Brown, 24, and John Bowie, 23, of the armed robberies of pharmacies in Philadelphia and convicted Duran and Brown of robbing the A&G Auto Body in Philadelphia. All of the defendants were convicted of conspiracy to commit robbery, distribute the narcotics they sold, and related weapons offenses. Duran and Brown were also convicted in the gunpoint robbery of an auto body shop. Prosecutors said Duran shot a customer in the leg with a .40-caliber, semiautomatic handgun when he didn’t hand over $1,000 fast enough. While Brown pointed a handgun at the customer, prosecutors said Duran took $250 from the shop’s owner. Bowie and Duran were previously convicted of home invasion robberies and other offenses. As a result, Bowie and Duran face a mandatory prison term of 207 years just for the weapon offenses, which would run consecutive to any prison term for the robbery counts. Brown faces a mandatory 107-year prison term for the weapon counts, which would run consecutive to any prison term for the robbery counts.

Jury Indicts Former NJ Shop Owners for Trafficking

A state grand jury indicted two former owners of two city auto body and repair shops on charges of trafficking in stolen automobile parts. Fermin Ortiz, a 52-year-old last known to be living in Puerto Rico, and his ex-wife, Judy Perez, a 52-year-old Trenton woman, knowingly received or purchased stolen vehicles and parts when they were owners of Capital City Collision and Arena Auto Sales on Reservoir Street in Trenton, NJ according to the indictment. The two each face charges of operating a facility for the sale of stolen automobiles or parts, a second-degree charge, and receiving stolen property, a third-degree charge. They each also face a charge of knowingly initiating, organizing the financing of or supervising the trafficking in stolen property with a value over $500. Ortiz and Perez are charged with using the two facilities between July 29, 2007, and Oct. 2, 2008, for the remodeling, repainting or separating of automobile parts for the resale of stolen automobiles.

Advocates Want Tougher Laws for Staged Accidents

Elected officials, AAA and insurance industry advocates recently urged the State Assembly to pass a law that would toughen penalties against those who stage car accidents. The bill stipulates that anyone who causes a collision to commit insurance fraud would be charged with a class D felony and face up to seven years in prison. Alice’s Law is named for Alice Ross, a 71-year-old Queens grandmother who was killed when others tried to stage a fake accident. “We’re paying hundreds and hundreds of extra dollars in insurance premiums on our car insurance because of these type of frauds,” said Assemblyman David Werpin of Queens. “Legislation like this is long overdue because we slowly have seen a crime turn into an epidemic,” said David Schwartz of NYers Stand Against Insurance Fraud. “That’s what we’ve seen with the amount of no-fault cases filed every year that have an element of fraud in them.” The bill passed the Senate in March by a vote of 58-1.

$200k EPA Grant Helps Clean-up for Parking Lot

The Environmental Protection Agency has awarded Middletown a $200,000 hazardous substances grant to clean up the former Midstate Autobody property at 1 Kings Avenue. The auto repair and auto body shop operated from 1924-2009. The auto body shop left behind solvents, motor and hydraulic oils on the grounds and chemical testing has revealed inorganic contaminants and metals in the building. The city will build a parking lot once the brownfield has been remediated. “While new buildings and businesses are critical, equally critical is parking and a clean environment,” according to a statement by Mayor Dan Drew. “Parking is essential and we have to carefully plan for it in the back of buildings to that lots don’t take up Main Street frontage. We need to enclose the street with beautiful buildings not parking lots.” The EPA Brownfield Program allows communities to assess, safely clean up and sustainably reuse brownfields, property where the redevelopment or reuse may be complicated by the presence of hazardous substances, pollutants or contamination.”

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Storm Chaser Chases Hail-Damaged Cars for Shops

Steve Shapiro is the kind of storm chaser who goes after the damages, not the spectacle. For 21 years he’s traveled the world offering his services as a specialist in auto body damage caused by hail. “This is a severe storm,” Shapiro said as he worked on a damaged Honda at Bodies By Jay in Moreau, NY. Shapiro is in good company locally, as local body repair shops rely on tradesmen with skills like Shapiro’s to help motorists recover from severe weather. Shapiro works for North American Paintless Dent Repair. While he lives near Boston, he figures he’ll be in the Glens Falls, NY, area until the flood of hail-damaged vehicles subsides. The paintless dent repair techniques allow him to remove medium and small hail dents without the need for conventional body work and painting. “I just came in to deal with the major part of it,” Shapiro said, adding there are a lot of cars in the area that sustained damage requiring more drastic repairs. Jay Cardinale, who owns Bodies by Jay, said he’s seen his business double since the recent storm, which dropped golf-ball-sized hail in parts of Lake George and Bolton. The recent

storm resulted in the first widespread automobile hail damage Cardinale’s seen in four years, though the 2008 storm wasn’t as bad as this one, he said. Cardinale said damage bills for vehicles he’s fixed have been as high as $10,000. Rich Tanchyk, vice president of H&V Collision Center on Quaker Road in Queensbury, NY, has turned his business into a storm recovery center of sorts. He said his business, which also has locations in Saratoga Springs, Troy and Colonie, has about a dozen paintless dent repair specialists helping out with repairs. “We also have our own teams that move where the damage is,” said Tanchyk. He estimated his business had handled claims on hundreds of cars so far. He has also gathered insurance claims representatives at his Quaker Road location to help motorists file the paperwork needed to claim the damage on their vehicles.

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Student Restores Comet for Senior Project

The day before he was to show it off to his classmates, Tyler Post of North Stonington, CT put the finishing touches on his senior project. He washed the windows and meticulously worked on the body of the 1962 Mercury Comet he had restored over the last five months. The next day, Post, 18, would tell his classmates during a 15-minute presentation about the hundreds of hours he put into the car, from engine work to cutting, grinding and welding the body before sanding and painting the car satin black with a stripe of carnival red pearl. “All these months for 15 minutes,” Post said. What Post didn’t have time to tell his classmates was how he had to plan this project for more than two years so he could save up for, find and buy the perfect car. Or how he spent the next summer saving more money working at Cross Sound Ferry in New London so he could buy parts, materials and supplies. Or how he felt an overwhelming sense of relief once he finished a project that he said excited him more than graduation itself. “My senior year wasn’t a lot of fun, it was a commitment to this car,” Post told his peers as they examined the 50-year-old Comet outside the school

following his presentation. “It’s probably the greatest thing I accomplished in my high school career.” It’s the latest accomplishment for Post, a unique student who has decided to forgo college and has plans to go work for Electric Boat instead. At Wheeler High School, Post played lacrosse and basketball all four years and soccer his freshman and sophomore years. He’s also an accomplished artist, having had an art piece, a pencil sketch titled “Bird Flew” entered in the Slater Memorial Museum’s Connecticut Artists Juried Exhibition. Post shares a knack for art with his brother, John, 20, who attends graphic design school in New York City. His art skills also come into play in car restoration. Post and his father, Todd, refer to the car as a “canvas.” “You’ve got to get your canvas perfectly primed and sanded, otherwise the imperfections will show through when you paint it,” Post said. The car was a labor of love, Post said, one passed on for generations. Todd Post said his great-grandfather owned an auto business in New Jersey during the turn of the 20th century, and Todd Post’s white 1960 Chevrolet Bel Air is a testament to the family’s car obsession.

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Matters of the Heart—Body Shop Owner Saves Adjuster’s Life by Ed Attanasio

Fixing cars is rarely a life-and-death situation. But, on a hot summer day last year, a body shop owner had to act quickly to save the life of an insurance adjuster who was experiencing a serious heart attack at his facility. If Bob McSherry, owner of North Haven Auto Body in North Haven, Connecticut had not acted quickly and definitively when Mike Vitale, an adjuster for GEICO, experienced a serious heart attack in his rear parking lot, there is a very good chance he would no longer be alive. It started out as a typical hot, humid summer morning, but quickly became a life-changing experience for at least two people. “It was one of those days in Connecticut where you’re sweating heavily by 11 a.m.,” McSherry explained. “Mike had a long day ahead of him, and he used to be kind of high-strung back then anyway. Now, since the heart attack, he has slowed down quite a bit. But, he was a little wound up that morning because he was behind schedule.” Vitale’s itinerary then changed radically, McSherry continued. “So, Mike was out there in our back parking lot writing up a vehicle when suddenly he collapsed between two cars. A couple of my techs saw him go down, which was lucky. One of them ran into the office and said, ‘The guy from GEICO is down and we don’t know what happened to him!’” Vitale was fortunate to be at North Haven Auto Body because McSherry is an EMT and a volunteer fireman. “I got out there pretty quick and Mike was not breathing at all,” McSherry said. “After establishing that he had no pulse, I started doing CPR on him, and, luckily, the fire department was here within three or four minutes. The firehouse is about a mile from here and they were Johnny-on-the-spot. They gave him a shock here and then another one on the way to the hospital, and by the time he got there he had a heartbeat and was breathing.” Unfortunately, Vitale wasn’t quite out of the woods yet, McSherry said. “They put him in a medically-induced coma for next three days because they were obviously concerned about brain damage. The people at the hospital told Mike’s family that they were lucky because we acted quickly,

but they weren’t sure what his condition was. When they took him out of the coma three days later, he was 100%, talking and being Mike again.”

A series of fortunate events led to Vitale’s life being saved, he explained. “Thank God there was a guy working on the asphalt in the parking lot. I collapsed between two cars, so if that guy hadn’t been there, I doubt that anyone would have found me until it was way too late. He notified a tech and he ran into the office to tell everyone I was down.Another lucky thing was the Body shop owner Bob McSherry (left) acted quickly to save a life fact that I had the when Mike Vitale, a GEICO adjuster, had a heart attack in the auto attack at Bob Mcbody shop parking lot last summer Sherry’s shop and As a volunteer fireman for almost the fire station was so close by. It was 30 years, McSherry was well-pre- a combination of things and without pared and trained to act without hesi- them, I would probably not be here to tation. “Most people hear about CPR, talk to you right now.” but they rarely see it done in person. Vitale, 61, is now seeing life from It’s a mind-blower and not for the a different perspective after the nearfaint-of-heart, that’s for sure. After death experience, he said. “I have so Mike went down in the parking lot, much more to accomplish and now I more than a few of my employees can. I have a granddaughter and I quit came to me and asked about learning smoking, so life is good now. Some of CPR. We agreed Mike was very lucky the things that I used to be so conthat day, but I asked my guys, ‘If someone had a heart attack at your house, for example, wouldn’t you want to help them?’ My employees said we should do some training and I agreed.” McSherry set up a CPR training day for his staff and paid for the expense. “This way, the entire shop will be ready if anything like that happens again. We hired a local fireman who does CPR training and it took about eight hours to do it, but after you complete it, you’re pretty much an expert on how to administer it. We did the training right here at the shop, and we’re also in the process of installing a defibrillator, which some people call ‘the paddles.’ It costs roughly $2,700, but in the end it’s worth every penny. I hope one day they don’t have to use it on me,” he laughed. “They’re easy to use, and with all of the illustrations on the device, anyone can do it.” Vitale is happy to be lucky, in the right place and most importantly, alive and well. “I went to the shop to look at a car, and the next thing, I was waking up at the hospital. There were no warnings. My diet is usually pretty good and my weight is ideal, so it came as quite a surprise.”

18 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

cerned with aren’t as important anymore. Now when I become 65, I will seriously be thinking about retirement.” Vitale thanked everyone who helped save his life, including the guy fixing the asphalt, Bob McSherry and the local fire department. “Gratitude is the word I can use. The first chance I had, I went around to let everyone involved know that I am truly appreciative and indebted forever. Bob McSherry and I have always had a good relationship, but now I can say without hesitation that he is my very best friend.” Another valuable piece of advice from Vitale is visit the doctor regularly, whether you need to or not. “I talked to the doctor after the incident and they told me that they probably would have seen some precursors of the heart attack, especially the high blood pressure I wasn’t aware of. I used to be one of those people that would never go to the doctor, even when I was sick. But, now for obvious reasons, I have changed my mind about going to the doctor.”

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Insurers Take out Radio Ads Slamming Auto Body Bill

The Providence Journal reported on June 19 that the insurance industry has taken its campaign against the recently passed auto body bill in Rhode Island to the shops to the radio airwaves. According to the Journal, the ad says: “House Bill 7782 A will force your car to be repaired even when it should be a total loss and will allow body shops to use the threat of a lawsuit to drive up repair costs. Stop the auto body repair rip-off before it's too late.” Insurance industry trade associations are actively seeking support and trying to encourage Governor Chafee to veto the bill which achieved final passage in the legislature on June 13 and transmitted to the Governor on June 19, according to the Rhode Island General Assembly website. See cover story this issue. Rep. Stephen Ucci, who introduced the bill, doesn't believe the bill will affect insurance premiums. He said in an interview with Online Auto Insurance News that insurers "will say that any change to the way they currently run business leads to higher rates." Gov. Chafee, who has not announced a position on the measure, has 10 days to veto the measure, sign it, or allow it to pass with no action.

Marshmallows for Solar-Powered Devices?

The students from Madison-Oneida BOCES of Verona, NY are heating up marshmallows. But this is not for a future camping trip or afternoon snack. They designed and created a number of solar-powered devices. “It’s called a frenel lens solar cooker. This lens came out of a project TV,” said student Ryan Thorna. The students in Engineering Science, Carpentry and Auto Body Repair programs spent most of the school year coming up with designs for solar-powered generators and cookers. They partnered with the organization E4P, which helps needy African villages. They developed ways to help the people in one Ugandan village who have very little to perform daily tasks like cook and have clean water. They used some recycled materials like wood,tin and aluminum. Kaliegh Larmer said, “Basically, the sun hits the smooth surface and underneath is grooved and it focuses the heat into one focal point and it very quickly, if it’s sunny, can heat the water or whatever else is in front of it.” This solar generator can provide electricity to schools that rely on nat-

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Derek J. Schafer, 23, of James Street, died June 10, at his home. Born Feb. 25, 1989, in Watertown, a son of John N. “Jack” Schafer Jr. and Laura J. Paro Schafer, he attended Thousand Islands Central schools. A marriage to Heather Denner ended in separation. He had been a route driver for Gold Cup Farms and was an auto body repairman for Phinn’s Fender & Body Shop, both in Clayton. He was a member of River Community Church. Derek enjoyed hunting, fishing, boating, four-wheeling, and was an avid outdoorsman. He was always willing to lend a hand to those in need. Besides his parents, both of Clayton, he is survived by his paternal grandmother, Jean E. Schafer, Clayton; his son, John N. Schafer, Plessis; a brother, Jacob R. Burns; a sister, Alicia M. Schafer, both of Clayton; and several aunts, uncles, and cousins. His paternal grandfather, John N. “Jack” Schafer, Sr., died June 9, 2002, his maternal grandmother, Janice M. Card, died in 1984, and his cousin, Jeffery P. Schafer, died May 9, 2004.

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ural light. “In their school, they need light bulbs. So, they can study and this can run a 60-watt incandescent light bulb for nine hours and that would translate to more like three or four fluorescent lights,” said Tracy O’Hern. Now that their senior projects are complete, E4P will take some of the prototypes with them to Uganda this month show the people there how they work so they can replicate them. E4P Executive Director and Founder Pamela Mandsager said, “Something like this, they’re using resources that they have easily available that they can purchase very cheaply and they can use their own manpower to create and mass produce for the community, which means it’ll be used.” They figured out how to design something and make it work, but their instructor says it’s a lesson not just in engineering, but in humanity. Professional engineer and Madison-Oneida BOCES Engineering instructor David Hale, said, “Students from our community come together from different backgrounds, work together for not just for helping each other, for helping people they never met halfway around the globe.”

Auto Body Repairman Derek Schafer Dies at Age 23

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Epidemic of Scrap Metal Thefts Prompts New Restrictive Bill Every day when he enters his Bristol Township auto body shop, Craig Bowen doesn’t know what he’ll find missing. Eight times in the last five years, scrap metal thieves have hit his repair shop and a nearby small strip shopping center he owns. One day he arrived at work to find 14 cars stripped of their catalytic converters, which control gas emissions and contain valuable metals. Then, two weeks after Bowen installed surveillance cameras at the shop, he reviewed footage and saw thieves steal the copper out of his newly replaced rooftop air-conditioning unit. “It takes the wind right out of you,” he said. Bowen is hardly alone. Since January, at least 60 scrap metal thefts have been reported to police throughout Lower Bucks County. The epidemic of such thefts has prompted Bucks County lawmaker Rep. Tina Davis, D-141, to introduce a bill that would place new restrictions on scrap metal sales, require better record-keeping practices involving

transactions and provide police with another tool to track down thieves. “My bill would require that every scrap metal transaction be recorded and that the seller provides a photo ID,” Davis said at a news conference announcing the bill in Bristol Township. The township was a fitting place for Davis to announce the bill since 28 scrap metal thefts reported in the lower end of the county this year took place there. In March, nine Bristol Township businesses along Veterans Highway had rooftop air-conditioner units stolen during a three-hour spree; the estimated loss was $27,000. An FBI report indicates the price of copper has risen 500 percent in the last 10 years as a result of a greater demand in developing nations such as China and India. The International Trade Commission said the United States exported 6 million tons of scrap metal to developing nations in 2000, and more than 18 million tons in 2007. The federal law enforcement agency has called scrap metal theft a risk to U.S. infrastructure since typi-

cal targets include electrical substations, cell towers, telephone lines, railroads and wells. Davis’ bill would amend the current Scrap Material Theft Prevention Act and require scrap metal dealers and recycling processors to record all transactions of any value including requiring sellers to provide photo identification and a license plate number. Current law requires only that transactions of $100 or more be recorded. But what often happens, Davis said, is that prolific thieves will break up pieces and sell them at numerous scrap metal dealers, avoiding the $100 reporting threshold. Davis’ bill would also put an end to the practice of cash payments to sellers, requiring check-only payments, which again would help police track sellers. Two local Republicans have signed on as co-sponsors of HB 2358, local Rep. Bernie O’Neill, R-29, and Robert Godshall, R-53. The bill, which was introduced last month, was referred to the House committee on consumer affairs. Bensalem and Bristol Township

police who attended the press conference said tighter record-keeping requirements and ending cash payments would help curb sales of stolen metal, as well as help police better track thieves. A favorite target among illegal scrappers are large air-conditioning and heating units that businesses typically use, which can cost $5,000 or more, and yield about $400 worth of copper, according to police. At the Middletown office complex where his ophthalmology practice is located, Dr. David Pao said he had to replace his ground-level airconditioner units at least six times in recent years after copper thieves damaged them. At least 25 units throughout the complex have succumbed to thievery, he added. After one theft, Pao paid for 24hour security details. Other businesses in the complex have installed cages around the units to discourage thieves. Pao had an alarm system installed on his units so it sounds if someone tampers with them. “It’s just frustrating. It disrupts everything,” he said.

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 21

Maaco Donates $110,000 to Children's Miracle Network at Annual Golf Tournament At Maaco’s third annual golf outing and charity auction held at the Spring Ford Country Club in Royersford, PA

tal of Philadelphia and its auxiliary cenport of everyone involved, shot well past ters, which treat and support one milour goal. We asked for a great deal of suplion patients a year.” CMN raises port from our venmoney for 117 children’s hosdor partners, and pitals nationally. they really stepped The children who will benup to the plate,” efit from the donation were Maaco President represented by Mia Garito, David Lapps said. who survived a diagnosis of “Thank you to our acute myeloid leukemia, and vendors, our franher family. At the event, her chisees and our cormother, Sarah, shared her exporate sponsors for Mia Garito periences with the doctors at not only your supCHOPs cancer center who port, but your vision to see how far we saved Mia’s life. could take this. We’re going to set the bar Maaco President David Lapps (center) and Driven Brands Throughout the year, Maaco even higher next year.” Chairman Ken Walker present a check to CMN at Children’s Maaco’s donation of $110,000 this Hospital of Philadelphia Director Robin Valentino and young employees raised money year is the largest amount raised by eiMia Garito, who has fought a rare form of childhood cancer through car washes, bake sales and other events. Corporate ther franchise to date. with the help of CHOP doctors sponsors include on June 13 at 6 p.m., Maaco President DuPont, PPG and SherwinDavid Lapps presented a symbolic Williams. Combined with the check for $110,000 to the Children’s generosity of franchisees, corMiracle Network (CMN) to support the porate executives, employees Children’s Hospital of Philadelphia and supplies, the donated (CHOP). amount exceeded the expected The donation will assist CHOP in $100,000 milestone. Maaco providing the necessary care to chilhoped to raise $100,000 in dren whose insurance may not cover order to double last year’s the procedures required to beat their illcontribution which was twice nesses. the amount raised at their first According to Robin Valentino, annual golf tournament. (l to r) Henry Chedraoui of Maaco National Accounts; Perth director of CMN at CHOP, “Maaco’s “We set out to double last Amboy, NJ, Maaco franchisee Mohammad Ehtesham; generosity helps the Children’s Miracle year’s record donation and, John Wolford of the CEI Group; and Bob Sheppard of Network support the Children’s Hospithrough the generosity and sup- PPG Industries

Iowa Dealership Refuses to Participate in PartsTrader

Diana Gauthier, Parts Manager for Stew Hansen Dodge Ram Chrysler Jeep in Urbandale, Iowa, wrote an open letter intended for all collision repairers in the state of Iowa.

All who may be questioning our intent can rest at ease. Stew Hansen Dodge Ram Chrysler Jeep will not participate in PartsTrader. I’ve been involved in the collision industry since the mid-'70s, and what I’ve witnessed is the systematic takeover in the industry by insurance companies. We all know insurance companies are not insurance companies. They are, in fact, investment companies that use insurance as a tool to fund their investments, right? Chrysler’s answer to the insurance companies’ demands on the body industry was to step up with pricematching the aftermarket parts. But their response is limited to a few of the body items that are most consistently replaced, and not really a stand that can be taken with the insurance companies insisting on less quality, non-fitting aftermarket parts. We at this dealership have taken a stand. We will not participate in this blatantly biased program and reduce the collision centers’ profit

even further with parts bidding. To those collision centers that will be forced by State Farm to take part in the bid process for their parts, you have our support should you refuse—we will continue to conduct our parts business as we have done historically. If our refusal to participate in PartsTrader means you cannot buy parts from our store, we will surely miss talking with you and servicing your business—but we will not have a hand in the further demise of the independence of collision centers across the state of Iowa. I make a statement on most of our mailings and Mopar Magazine that the success of your business is our business. We can’t succeed without all of you; we have a vested interest in making your store as successful as possible. The insurance companies like State Farm are on their own—I refuse to help them take control of your businesses and the industry in general. For what it’s worth, that’s the line we’ve drawn in the sand to help support your stand against this program.”

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PartsTrader Issues Open Letter

PartsTrader’s letter, from CEO Rob Cooper can be read in full at autobodynews.com. Search “PartsTrader.” It reads in part: There has been a great deal of public commentary on this initiative, and much of it has been negative. Unfortunately, much of the commentary has been based on inaccurate information. We are working to rectify this through ongoing industry communications and product education to all constituent groups. This is one of the reasons we have recently launched our new web site at www.partstrader.us.com.website.

Canadian Shop Comments on RI Body Shop Legislation

John Keen of Downtown Auto Collision Centre in Toronto says that “We could definitely use similar legislation here in Canada. This is exactly what we need,” says Keen. “There is no practical remedy in this province to resolve a claim fairly and in a timely fashion. Some insurers have created an environment of fraudulent activity that has turned the body shop/claims industry into the ghetto of the car business.” Keen believes that insurance industry manipulation has led to a lot of unsafe vehicles on the road.

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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.

Al Brodeur’s Auto Body Offers Honesty, Inspires Loyalty with Chasidy Rae Sisk

Al Brodeur’s Auto Body, Inc. in Marlborough, MA, offers their customers peace of mind in knowing that every step of their repair is being handled in a professional manner. The shop facilitates the claim from start to finish as they strive to make the repair process as fluid as possible. According to Molly Brodeur, Chief Operating Officer and daughter of owner Al Brodeur, “Al has always operated an honest shop, and as a result, our customer base is large and very loyal.” Since Al Brodeur opened his shop in 1970 in a small rented space down the street from his current operation,

COO Molly Brodeur with Owner Al Brodeur

he has been very involved with the local auto body associations. He served as Treasurer and Director of the Central Massachusetts Auto Rebuilders Association, which has now merged with AASP-MA, for over 25 years. Molly is currently the Treasurer for AASP-MA as well as the President of the Midstate Chapter of AASP-MA. Molly notes, “Being so involved at the association level has put us in a unique position to always be at the front line and directly impact legislation and regulations that affect our industry every day. In late March 2012, AASP-MA was successful in killing a DRP bill and an anti-fraud bill that were positioned to move out of Committee. Both would have been extremely detrimental to our industry here in Massachusetts.” Beyond their involvement with the collision industry, Al Brodeur’s Auto Body is a member of both the Marlborough Chamber of Commerce and the Rotary Club of Marlborough for over 20 years. They have also sponsored multiple youth sports programs and participated in various community fundraising events. Re-

garding environmental concerns, the motto at Al Brodeur’s Auto Body is borrowed from a Native American proverb: “We do not inherit the Earth from our Ancestors, we borrow it from our Children.” Everyone at Al Brodeur’s Auto Body understands the impact that the collision industry has on the environment, so they strive to reduce that impact as much as possible. Al Brodeur’s Auto Body ensures that their painters are certified sprayers of DuPont advanced waterborne paint repair systems. They also use SATA high volume-low pressure spray gun technology, and their DeVilbiss spray booth is equipped with superior filtration systems rated at 99% efficiency, exceeding ASHRAE and EPA requirements. Additionally, they comply with all EPA regulations regarding how to properly handle hazardous waste by participating in hazardous waste recycling programs, and their recycling efforts extend to include the recycling of used parts, sheet metal and cardboard. The shop uses Spies Hecker paints, and while their customers own a mixture of older and newer model vehicles, they have recently noticed an increase in older model vehicles, 2007 model and older. Due to this, they have also seen more total losses in the past year due to the vehicles’ age and mileage. Luckily, Al Brodeur’s Auto Body rarely has issues with matching paint, even on older vehicles, due to their experience refinish technicians and the sophisticated paint matching systems that they use. Al Brodeur’s Auto Body is housed in a 6,800-square-foot shop with 14 employees. They complete repairs on approximately 90 to 100 cars monthly. In addition to standard lifts, welders, the shop utilizes Car-O-Liner frame equipment and a DeVilbiss Downdraft Spray Booth. In addition, they upgraded their management software in 2010, and it has completely changed the way they operate by enhancing every facet of their business. All of the technicians employed by Al Brodeur’s Auto Body are I-CAR certified platinum, and their refinish technicians are DuPont certified in

24 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

waterborne paint applications. Though direct repair programs are illegal in Massachusetts, Al Brodeur’s Auto Body negotiates repairs with all insur-

Al Brodeur’s Auto Body in Marlborough, MA

ers operating in the state in order to best serve their customers. They sublet towing, storage, paintless dent repair and rentals to other local vendors. In discussing current trends in the collision repair industry, Molly Brodeur notes that it is inspiring to see news about shops who have successfully filed lawsuits against insurers for

short pays by utilizing the Assignment of Rights form. “It’s encouraging to see shops taking advantage of the mechanisms available to be properly reimbursed for repairs.” She also notes that steering continues to be an issue in the Massachusetts market as does the labor rate compensation from insurers as Massachusetts has the lowest reimbursement rate in the country. In regards to the future of this industry, Molly says. “Our industry will continue to strive to meet whatever challenges lie ahead. We are a resilient bunch and will always work hard to rise above any roadblocks. Relationships with customers, insurers and employees will always remain our focus.” Al Brodeur’s Auto Body, Inc. 87 Mill Street Central Marlborough, MA 01752 508-485-1082 www.albrodeur.com

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 25

Tow Truck Driver’s Murder Gets Buffalo to Review 1974 Rules The Buffalo, NY, Police Department officials said the city is reviewing a nearly 40-year-old ordinance which regulates how tow truck drivers operate in the Queen City. The review comes after a tow truck driver was shot to death in the city’s East Side in early May. Corddaryl Henley, 25, of Buffalo, was gunned down shortly before 1:40 p.m. at Walden Avenue and Latour Street, after dropping off a vehicle at Latour Auto, police said. Henley worked for the Patriarch Towing Company. Henley was sitting inside his truck when a silver or gray vehicle pulled up and a gunman fired multiple shots at him. Henley was then able to pull away and drive southbound down Latour, where it is believed his vehicle struck a parked car, fire hydrant and another vehicle before crashing into the front porch of a home on Walden. He was pronounced dead at the scene. Henley was a father of six. Police did not quickly speculate on a motive, but other tow truck drivers believe heated competition between tow companies may have something to do with Henley’s death. They believe Henley was targeted following an altercation with another tow truck driver. Currently, tow truck drivers operate on a first-come, first-serve basis. Several drivers will respond to automobile accidents to compete for a tow. In Buffalo, those in the industry say altercations between tow truck drivers are common, because the first driver to the scene often gets the business. Occasionally, the response of multiple drivers can lead to heated arguments and even violence over business, said Buffalo Police Commissioner Daniel Derenda. But Derenda called the extent of the problem “debatable” when he expressed hesitancy in enacting a “zone system” for tow truck operators, as he has the authority to under city law. Henley’s death has sparked a renewed call from some tow truck drivers for the city to enhance rules governing their business, to bring about order and quell what some of them refer to as “turf wars” that sometimes turn bloody. In most other municipalities, police enforce zones or rotations to pick which driver responds to which wreck. That helps avoid the “turf war.” Derenda said the city will explore a 1974 ordinance which assigns private

tow truck companies to zones. Companies would rotate responses. The 40year-old city law gives the Police Department the power to “establish tow zones (where) only that tower assigned to that zone will be allowed to tow vehicles within that zone.” The code further states that “towers will be dispatched from a list designated for that zone on a rotational basis.” The tow zones would end disputes and improve towing coverage, dispatch efficiency, response time and driver convenience. However, Derenda said, “no police commissioner has opted to enforce” that law because of what he called its legal complexities, which could easily be challenged in court by companies claiming the zones deny them due process. While the code empowers the commissioner to set up such a system, it does not require him to, and Derenda noted that no other police commissioner in the nearly 40 years since the code was enacted has felt the need to do so either. “Well, I can tell you in the 40 years that it’s been on the books, I don’t believe one police commissioner has put a policy in place,” Derenda said, adding that it would be difficult to enforce the decades-old rule. “You have a lot of companies out there,” he said. “To divide the city up—it’s something that we’re going to look at.” Robert Heidenrich, operations manager for Chase Towing in Buffalo, wants the city to enforce more regulation. He says when there’s a wreck on the road, Buffalo can become like the “the wild west,” amid the scramble among competing tow trucks to get to the scene and claim the job on a firstcome basis. He says the battle to “claim the hook” has been known to get down and dirty. “We’ve had drivers that have been tazed, stabbed, hit with a baseball bat... fist fights have erupted, I personally been threatened at an accident by a driver from another company,” Heidenreich said. The competition is so intense, said Robert Corsi of Chase Towing, that Henley told him that he was threatened with a gun by another towtruck operator the night before the killing. Corsi said he has been threatened with a knife at a crash scene. “We just want a safe environment so my drivers can go out there and

26 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

make a living for their families like everyone else in every other profession around town,” Heidenrich said. Two of Heidenrich’s workers have turned in their keys, saying the shooting put them over the limit. Heidenrich said, over the past two years, he has contacted the mayor’s office and the council to push for more regulation and enforcement. “Six kids are gonna grow up without a father now because we don’t have regulated towing,” Heidenrich said. “I mean, it’s a shame.” Heidenreich explained that fees associated with a collision can extend well beyond the charge for towing, as insurance companies will also pay daily rates for cars stored on the lots of tow truck operators until a claims adjuster arrives. If the collision involves repair work and the towing company is associated with a body shop, such as his, then the potential for work amounting to thousands of dollars is also at stake. Heidenreich claims to have sent proposals for a zone system to both members of the Common Council and the Mayor’s office, to which he’s heard no response. “It really needs to seriously change. I always said somebody would get hurt,” Heidenreich said. “It’s something we will look at, and look at best practices nationwide,” promised Derenda, who won’t be the only one looking into the issue. North District Common Council Member Joseph Golombek Jr., who also chairs the Common Council’s Police Oversight Committee, said, “Once the budget process is over, I will meet with the tow truck operators and the police department, to bring the professionals together, sit down with them, and find out what’s really going on. I haven’t gotten a lot of calls on this issue, but there have been enough to raise one’s curiosity.” According Golombek, there is already a law on the books, from May 2001, that requires tow-truck operators to be licensed and, therefore, only licensed operators can be called to the scene. But the law hasn’t been applied, Golombek said, because towing from crash scenes in the city is not a lucrative business. A city spokesperson says the city does have contracts with a few designated tow truck operators, but that they are only called out in special circumstances, such as when a vehicle

needs to be impounded as part of a police investigation and only when a city-owned tow truck in unavailable. The owner of one of those firms, Jim Mazzariello of Jim Mazz Towing, cautioned against making a connection between Henley’s death and his occupation. “It would only be logical to assume this incident is a matter of some personal motivation, separate from his actual occupation, as towing itself in our city has never once been associated with violence of that magnitude. In almost three decades of experience we have never witnessed any reason that our industry could escalate to such a level without some underlying circumstance as an explanation,” Mazzariello said. “It would be misleading to the public to criminalize our industry based on a singular and isolated incident considering our impeccable legacy as not only recovery specialists; but first responders and community servants,” said Mazzariello. The competition between tow truck drivers in Buffalo was documented in a reality television show pilot called Tow Truck Cowboys, which is available on YouTube.

Mahwah Council Suspends NJ Shop’s Tow Truck Driver

The Mahwah, NJ, Township Council suspended a Ramsey Auto Body tow truck operator from working in the township for a period of 30 tower rotation days. While off duty, the employee had responded to the scene of a threecar motor vehicle accident. He reportedly knew one of the people involved in that accident. According to a subsequent complaint lodged in mid-April by police officers on duty at the time and occupants from two of the three vehicles involved, the employee allegedly insulted police officers by calling them names and confronted the other drivers. Mayor Bill Laforet and business administrator Brian Campion recommended that the driver be barred from operating in the township for that 30-day period as a result, but some council members said they felt the punishment was not harsh enough. Councilman Samuel Alderisio said that three other complaints had been lodged against the driver over the past two to three years. Ramsey Auto Body, however, is excluded from the towing ban.

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 27

WILL YOUR SHOP QUALIFY?

28 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 29

Service, Service, Diagnostic D Diiagnostic and an d Mechanical M eec ch aniccal al NEWS nd Mec Mech ech hanical ca

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Autobody News

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Malibu Ecos, More Acura TLs Face Recall

GM has said it is recalling 4,304 of the 2013 Chevrolet Malibu Ecos to reprogram a part that controls the deployment of air bags. Honda Motor Co. said it is recalling 52,615 of the 2007-08 Acura TL vehicles because of fire risks from leaking power steering hoses. GM said no crashes or injuries have been reported due to the problem with the Malibu Eco, but it authorized the recall after it found the problem during a development test in which the vehicle was performing “extreme maneuvers,” according to a GM statement. After hard braking, a module may reset. If that happens during aggressive turning and the vehicle senses a potential rollover, the roof rail air bag may unintentionally deploy, according to the National Highway Traffic Safety Administration. Also, the air bags or seat belt pretensioners may not deploy during a crash, increasing risk of injury. The Malibus were manufactured from Oct. 24, 2011, through March 31. The recall follows a customer satisfaction program GM launched about a month ago on about 10,000

Malibu Ecos that had the module issue, GM spokesman Alan Adler said. In that program, affected customers were sent letters advising them to have their module reprogrammed by a certain date to qualify for a free repair. Dealers also fixed the software issue on many cars before they were sold to the public, Adler said. The 4,304 Malibu Ecos under recall are the remaining vehicles that haven’t had the module reprogrammed, Adler said. Customers will receive letters after June 1 with instructions on how to contact their dealer to have the issue fixed for free. In the Acura TL recall, Honda said the power steering hose may fail, causing fluid to leak onto the hot catalytic converter, the Japanese automaker told NHTSA. In total, Honda has now recalled more than 370,000 vehicles to address the problem in three separate recalls. In November 2007, Honda recalled 43,200 2005-08 Acura RL vehicles to address the same problem. In February 2008, Honda recalled 273,000 2004-08 Acura TLs. The new recall adds the 2008 TL base model and 2007-08 Type-S.

Toyota, Honda and General Motors have confirmed they plan to integrate Siri, Apple Inc.’s voice control technology used on the iPhone, into connectivity systems of upcoming vehicles. Spokespersons from the three companies confirmed the plans to Automotive News after announcements made by Apple at its Worldwide Developers Conference in San Francisco. In essence, vehicles compatible with the Siri service will allow drivers to make calls, dictate text messages, look up directions and use

other Siri functions by plugging their iPhone into a USB cable in the car. Pressing a button on the steering wheel will activate Siri, and drivers can speak commands to their phone hands-free. A new Siri feature, called “Eyes Free,” will help drivers use their iPhones while keeping their eyes on the road by allowing iPhone owners to control more of the device’s functions with Siri with the screen off to mitigate distracted driving. The Eyes Free feature will be released as part of Apple’s latest version of its mobile operating software due out this fall.

The Lexus GX SUV, first introduced in 2003, has always been marketed as a luxury SUV but is based on the rugged body-on-frame platform un-

derpinning more serious off-roaders like the Toyota 4Runner and FJ Cruiser. Despite this, the vehicle has en-

Toyota, Honda and GM Will Use Siri Voice Technology

3rd Generation Lexus GX Could Lose its SUV Look

30 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

July 2012

2012 Chevy Cruze Added to NHTSA Probe The National Highway Traffic Safety Administration has widened its investigation of engine fires in the Chevrolet Cruze to include the 2012 model year. In April, the agency announced it was probing about 177,000 2011 Cruzes after reports of two fires that engulfed and destroyed two vehicles. In documents posted on its Web site this week, NHTSA said it’s now also investigating the 2012 model. GM spokesman Alan Adler said 370,000 vehicles are now included in the investigation. In an April 4 letter to GM, NHTSA requested data from the automaker by May 11. Adler said GM responded to 10 of NHTSA’s 12 questions, and got an extension on the other two. No documentation of GM’s response was available on NHTSA’s website. Though the Cruze hasn’t been recalled, these types of NHTSA investigations can lead to vehicle recalls. There have been no reported injuries or accidents resulting from the fires being investigated, and Adler said GM is also investigating several fires, but wouldn’t comment on the number being investigated. On April 29, according to a complaint to NHTSA, a driver reported

Malibu Eco recall Separately, GM said it is recalling 4,304 Chevrolet Malibu Eco cars sold in the United States to reprogram a module that controls airbag deployments. GM said in what it described as rare cases under extremely aggressive turning, the roof rail airbags in some 2013 model year Malibu Ecos might inflate. It also said in another scenario it described as rarer that the airbags and safety belt pretensioners might not deploy. GM said no crashes or injuries have been reported related to this issue. GM said it discovered the problem during a development test in which one of the cars was performing extreme maneuvers. It said letters will be mailed to car owners on June 1 with instructions to have the reprogramming done at no cost at a dealer.

Chrysler has expanded a recall regarding corrosion on Jeep Liberty SUVs to include the 2006 and 2007 model years after recalling the 2004 and 2005 model years in March, U.S. safety regulators and Chrysler said today. The action brings the total number of Jeep Liberty vehicles recalled in the four model years to about 410,000. Most of those vehicles, about 347,000, are in the United States. The two additional years add 137,176 U.S. vehicles to the recall. The recall affects vehicles in

cold-weather areas that can sustain a rear suspension lower control arm fracture due to excessive conditions because of salt on roads in winter, according to a filing with the U.S. National Highway Transportation Safety Administration. Such a break could lead to loss of vehicle control and a crash, NHTSA said. Chrysler said it was not aware of any injuries or accidents related to the issue. Chrysler will pay to replace rear lower control arms in the affected vehicles.

Chrysler Expands Recall

joyed a reasonable level of sales and in 2010 spawned a second-generation model. For the third-generation of its

that flames burst through the front of a 2012 Cruze while traveling at about 45 miles per hour. GM sold 18,205 Cruzes in April, down 28 percent from the same month last year. It sold 75,288 of the vehicles through the first four months of 2012, down slightly from sales of 75,365 during the same period last year.

GX, Lexus is considering adopting a car-like unibody platform, which would make the GX more a crossover than a true SUV.

Gonzo’s Toolbox

Take it to the Dealer! with Gonzo Weaver

Everyone has a reason why they use a dealer repair shop vs. an independent shop… These are a few of those reasons I’ve run into over my decades of independent service work. Customers come in a wide range of styles. There are my regular customers, occasional customers, price shoppers, referrals, and friends of the family. Some don’t bother to tell me how they happened to be at the shop; maybe they’ve read an advertisement, saw a billboard somewhere, or they’ve checked out one of those websites that evaluate businesses by way of customer responses. Perhaps they’ve heard of the shop through the grapevine, or they might have just driven by to check it out. But I’ve never heard of anyone refer to themselves as a “dealer customer.” It could be there are some differences between what people think of the various different types of repair shops, or what they are used to deal-

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

ing with. Whatever the case may be, once they are at your front counter you want to try and make them a customer of your own. Then again, do you really want to take on every job that comes in the door? I certainly don’t. There’s times someone will bring in something that I’m not qualified to work on, or it’s something that is so far gone it can’t be taken care of without an exorbitant amount of cash to repair it. Then there are those proverbial “basket cases,” oh yeah...actual “basket cases” dragged in to the service bays. (And YES, they do come in baskets, crates, and/or boxes. All the nuts, bolts, electrical parts, and components scattered in haphazard piles of the owner’s greatest intentions gone wrong.) Of course, there are the strange or unusual customer responses that keep you on your toes. I sometimes stand behind the counter wondering what in the world these people are

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thinking... how am I going to get through the usual monologue in the front office and still have enough sanity left to repair the car? Some of these requests and explanations are just too bizarre to be real. “Hi, I’m here because of my brother-in-law who sent me,” (I’m thinking to myself... alright! this is a good start), “He said you could fix my car,” the new arrival to the shop tells me. “What seems to be the problem?” I’ll ask. “He changed the “autovalve” and he said you would know what to do about it.” “I’m afraid I don’t know what an “autovalve” is. (So much for a good start...) Could you describe what’s wrong with the car, and then maybe I can sort out what part you’re actually talking about.” “Apparently you’re not as good as my brother-in-law said you were. You should know what one is. Obviously you don’t know how to fix my car then... I’m taking it to the dealer,” the now aggravated customer tells me, “Oh, and don’t worry I’ll tell my brother-in-law about this.” You know, there are times I don’t want to even ask another question, or want to take the time to get to the bottom of some of these wacky explanations. I’d rather see this kind of problem just vanish with the goofy owner and their explanations. If they think they need something done to their autovalve, I’m more than happy to let the dealer take care of it. Off you go to the dealer little lady... they’ll love to talk to you, and I’m sure they have plenty of autovalves over there. At times, I pity the poor service writers at the dealerships. Because as it seems to be in these cases, the dealership is primarily the last stop in this long line of relatives with wrenches, repair facilities, and parts store geniuses trying to help out the customer. The service writer really doesn’t have much choice but to deal with them. Let’s face it...... they are the “deal-ership.” The phone rings again, the caller tells me, “Well, I don’t know if you

can do this kind of work or not. I probably ought to just take it to the dealership.” “What seems to be the problem, sir?” “It’s my electric window, I think it’s the switch because my window is stuck halfway down. Probably bent a bracket, you know.” (Self-inflicteddiagnostics … I can tell...) “Sir, any decent independent shop can handle anything the dealerships can do. A window problem is no big deal. I take it you were referred here?” “Yes, a couple of my friends told me about you.” (Apparently, his friends neglected to tell him that we actually make the repairs too. I suppose he thinks his neighbors just come by the shop and chat about car repair.) I find it rather confusing when a customer calls and tells me their car is at the dealership. They’ll tell me that the problem has already been diagnosed, and then tell me that all their friends recommended that they take their car to my shop for repair... but, instead they are sitting in a service bay at the dealership. After the usual phone introductions, they’ll soon get to the real reason for their phone call: “They want $947.53 to fix my car... do you think that’s too high?” I guess at this point, I’m supposed to justify the cost or give them some outrageously lower price. I really don’t know how I can do that, when I haven’t even seen the car yet, or even what problems they’re having with it! “You’re there already ma’am. If they have done their job correctly, and diagnosed the car properly, then the price is their price.” “They want a diagnostic charge if I take it out of their shop right now.” “Ma’am, you’ll pay another diagnostic charge at the next shop, so I would advise you, since you’re there, let them take care of the problem as they see fit. Unless you feel uncomfortable with their results or diagnosis, I would suggest you let them take care of it.” “I didn’t know where else to take See Take it to the Dealer, Page 44

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 31

Continued from Cover

Great Consumer Bill

“This bill doesn’t benefit consumers, it benefits the auto body shops. It provides them with more money for the work that they’re doing,” said Francis O’Brien of the Insurers Association of America. In a letter to policy holders, Robert A. DiMuccio, chairman and CEO of Amica Mutual Insurance, said the legislation that just passed “allows shops to set inflated prices for labor and repairs and [use] the threat of lawsuits to charge these exorbitant repair costs.” Until now, if a shop felt that it had been unfairly reimbursed, it could take the insurer to court, but only using an assignment of proceeds case where the shop would legally seek reimbursement representing the consumer. “This is a great consumer bill,” said Jina Petrarca-Karampetsos, who testified in support of the measure prior to the Senate vote. “This is a great bill. It’s a fair bill. This doesn’t require insurers to set a rate for every shop. This just says to every shop, ‘Hey, if you feel you are not getting a fair rate, then go ahead and prove your position in court.’” PCI New England Vice President and Regional Manager Frank O’Brien was actively posting messages on Twitter as the Senate Judiciary Committee debated the bill on June 12. O’Brien said the bill was bad for consumers and called the measure “the worst auto body bill ever.” He said insurers described the bill as “unprecedented” and the “most one-sided they’ve ever seen.” “This bill doesn’t benefit con-

sumers, it benefits the auto body shops. It provides them with more money for the work that they’re doing,” said Francis O’Brien of the Insurers Association of America. AIA believes H.B. 7782A allows for nationally unprecedented private rights of action for auto body shops directly against insurers and is "poor public policy." “No other state in the nation allows auto body shops to set non-negotiable rates and attempt to force them on third-party payers under threat of litigation,” said Gary Henning, AIA Northeast region vice president. “This legislation represents poor public policy which could lead to an explosion of litigation. It should be vetoed when it reaches the governor’s desk.” AIA says that Rhode Island is one of the most expensive states in the nation for auto body repairs. Currently, drivers pay the sixth highest collision insurance premiums in the nation due in large part to higher-than-average claim costs, including labor costs which exceed the national average by 26.7 percent. The bill also includes specific language stating that an insured may still assign the rights of their claim to a body shop if they so wish. The bill passed the Senate 24-11 and is now on the Governor’s desk, provides access to small claims court for shops who feel they must sue to be fairly reimbursed. Current law would require a shop to take these types of issues before a Superior or District Court, with proper legal representation. “If this bill passes, a shop can represent themselves in small claims court for a filing fee of $80,” said PetrarcaKarampetsos, speaking on behalf of the Auto Body Association of Rhode Is-

land (ABARI). The measure, originally sponsored by ABARI, also includes specific language stating that an insured may still assign the rights of their claim to a body shop if they so wish. The insurers testifying against the bill argued that the bill forces them to accept whatever a shop demands under the threat of being sued, but that is not so, according to Petrarca-Karampetsos. “This isn’t a name your price bill, this is a bill that requires a shop to prove before a court that their price is a fair one, that their charges are reasonable.” “The bill doesn’t say that insurers have to reach an agreement. It just says that they have to negotiate in good faith, and if you can’t reach an agreement, the insurer may pay whatever it determines. If the shop doesn’t feel that’s fair, the burden is on them to prove it in court.” “This actually removes a lot of the hassle and delay for consumers,” Petrarca-Karampetsos said. “If the shop and insurer don’t agree, this bill says to the insurer, ‘Just pay the claim on your number, whatever number you think is fair, write the check, leave it with the shop, and let them worry about it.’ This eliminates all the delays of the past. But perhaps more importantly, the customer is not involved. It leaves them out of it.” “This law is a simple, fair solution. It doesn’t require regulation. It gives insurers a chance to challenge everything we say, and it does so without a sweeping mandate,” says Petrarca-Karampetsos. But that isn’t the only new law this bill would create. The measure also makes changes to how total losses are handled in Rhode Island. Unless Governor Lin-

paid $782 per car. If following years also saw a similar 26.5 percent increase in costs, drivers would have had to pay even higher average vehicle damage premiums of $989 and $1,252 per car in 2010 and 2011, respectively. “Residents in Rhode Island already pay among the highest auto repair bills in the nation and unless something is done, the rapid growth is likely to continue,” said Frank O’Brien, PCI vice president. “We are urging Gov. Chafee to take the first step in addressing these out of control costs by vetoing HB 7782 A. Without him taking action this cost trend could

become even worse.” House Bill 7782 A, which passed in the final hours of the 2012 legislative session, could make it more expensive for vehicles to be repaired following an accident by forcing more cars with severe damage to be repaired instead of totaled. In addition it would allow body shops to charge an inflated amount for repairs and force insurance companies to pay these prices or face the possibility of a lawsuit. “In the midst of a struggling economy and not satisfied with having some of the fastest increasing costs in the country, the Auto Body

coln Chafee vetoes the bill, insurers will no longer be permitted to declare a vehicle a total loss if the cost to restore the vehicle to pre-accident condition is below 75 percent of the fair market value of the car. “This part of the bill is a real win for consumers,” said Petrarca-Karampetsos. “Today, it doesn’t matter how much a customer might beg and plead with their insurer to fix their car, if they don’t want it totaled. If their insurer got a high bid on the salvage, and can save money even by totaling their car at 50 percent or less, they total the car, no matter what their customer wants.” In addition, the bill sets forth a new definition of fair market value in the case of total losses. According to the bill, “Fair market value” means the retail value of a motor vehicle as set forth in a current edition of a nationally recognized compilation of retail values commonly used by the automotive industry to establish values of motor vehicles. The new definition, according to Petrarca-Karampetsos, would preclude the use of products developed exclusively for the insurance industry, such as the Audatex, CCC, and Mitchell systems, and require the use of guides like the NADA book used by car dealers. The Property Casualty Insurers Association of America (PCI) and the American Insurance Association (AIA) are both opposed to the bill. AIA, in a press release on June 13, described the bill as “reckless” and called on Governor Chafee to veto the measure. The association said the law would unleash a flood of lawsuits against insurance companies. The bill would take effect upon passage. Download the text of the legislation at autobodynews.com.

PCI Claims ABARI Legislation Has Increased Repair Costs Twice National Avg.

According the Property Casualty Insurers Association of America (PCI), auto body repair costs in Rhode Island have skyrocketed since 2003 and if legislation (HB 7782A) passed by the state Legislature is signed into law by Governor Lincoln Chafee, consumers may face the prospects of even higher costs, Based on an analysis of the provisions in HB 7782A, had it passed in 2008 the result would have been a 26.5 percent increase in the vehicle damage insurance premium in 2009. Instead of Rhode Island drivers paying $618 per car for vehicle damage coverage in 2009, they would have

32 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

Association of Rhode Island (ABARI) continues to push a legislative agenda that drives up the costs of auto body repair,” said O’Brien. “Since 2003 ABARI sponsored legislation has caused the average repair cost to accelerate at a rate more than twice the national average.” In 2011, Rhode Island had the 4th highest overall labor costs in the nation with the average total labor cost in this state being 26.7 percent higher than the countrywide average. Additionally, the high cost of auto body repairs is one of the main reasons Rhode Islanders pay among the highest rates in the nation for auto insurance.

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DuPont Unveils New No. 24 Chevrolet Paint Scheme for 20th by Chasidy Sisk

Four-time NASCAR Cup Series champion Jeff Gordon helped DuPont unveil a new 20th Anniversary paint scheme on his No. 24 DuPont Chevrolet at the headquarters of DuPont Performance Coatings during the 2012 DuPont NASCAR Day

Jeff Gordon addresses the event

celebration. Gordon, a NASCAR legend, will drive the new Hot Hues™ Cosmic Dust Silver Metallic No. 24 DuPont Chevrolet in the season finale at the Homestead-Miami Speedway in Florida this November, marking his famous long-standing partnership with DuPont. Gordon’s historic NASCAR Cup

Series career started 20 years ago at Atlanta Motor Speedway as the young driver burst onto the raciang scene in the rainbow-colored Hendrick Motorsports No. 24 DuPont Chevrolet. The following season, Gordon started to take the motorsports world by storm. Now, 20 years later with four championships and 85 career victories under his belt, Gordon will race the commemorative No. 24 DuPont Chevrolet only one time at the last race of the 2012 season. Gordon, Hendrick Motorsports and DuPont are celebrating their 20th full season together - the longest current running driver/owner/sponsor partnership in NASCAR. “I’m very fortunate to have an incredible sponsor like DuPont that has invested so much in me and this No. 24 Hendrick Motorsports team. To stick with one driver and one team and to still be here with us today celebrating our 20th full season, is really incredible,” said Gordon. DuPont Performance Coatings products have been a constant during the storied career of Gordon and Hendrick Motorsports. The new paint

as DuPont™, Kevlar®, Nomex®, Teflon® and Tyvek®, took a chance on a young, unproven rookie driver to showcase its automotive finishes in brilliant fashion. Over 20 years of sponsorship, Gordon has been recognized by DuPont as a valuable corporate asset and spokesman. “Jeff Gordon has been the ideal ambassador for the DuPont brand for nearly two decades,” said Scott Coleman, chief marketing and sales officer for DuPont. “He is a consummate professional and a true champion both on and off the track.” Gordon has his sights set on one thing when racing the 20th Anniversary paint scheme on the No. 24 Chevrolet later this First Look at 20th Anniversary Car to Commemorate year – winning. NASCAR’s Longest Running Sponsor Partnership “I’m looking forward to said John McCool, president of hopefully taking this special DuPont DuPont Performance Coatings. 20 Years paint scheme to Victory Lane “Twenty years is a unique relationship in November to thank all of the amazin NASCAR and it shows that the busiing DuPont employees and customers ness of racing has been good business who I’ve come to know like family for DuPont and our customers.” and who have supported me loyally DuPont, a global Fortune 500 over the past two decades,” continued company best known for brands such Gordon.

scheme uses the popular DuPont™ ChromaPremier® Pro high performance paint finishes and was designed by NASCAR’s first officially licensed artist Sam Bass. “We are proud to have our DuPont™ ChromaPremier® Pro paint on the No. 24 DuPont Chevrolet with one of NASCAR’s all-time greats,”

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Louisiana State Penitentiary Lifer Makes ASE Triple Master Rank A Louisiana State Penitentiary inmate serving a life sentence for murder is making a name for himself for his self-taught achievement in the field of automotive mechanics. Shelby J. Arabie, 49, was one of 12 people this year to qualify through the Institute of Automotive Service Excellence as a Triple Master in auto, truck and collision repair, with advanced certifications in gasoline and diesel engines. About a dozen people each year qualify as Triple Masters, said Tony Molla, ASE vice president for communications. The institute sets certification standards for automotive service technicians. Arabie also is among 16 people worldwide who hold all 51 certifications the institute offers, Molla said. Molla said Arabie qualified for world class technician status this year, and he will be honored in 2013 by ASE and the Automotive Aftermarket Industry Association. As part of that honor, his name will be listed in a book housed at the Automotive Hall of Fame.

“Shelby is a member of a very small and elite group of technicians whose achievement is impressive, to say the least,” Molla said. “That man is worth a fortune to this prison,” Angola Warden Burl Cain said. “The dollars he’s saved us and will save us in the future will be in the millions.” In June 2010, Arabie assisted prison officials in designing Angola’s re-entry program, which offers prerelease training to short-term prisoners sentenced in Orleans Parish. The program aims to offer prisoners job skills in auto repair, auto paint and body work and welding. Carefully selected inmates serving longer sentences, including life terms, teach the courses. Arabie got a machine shop up and running at Angola with the help of 20th Judicial District Court Judge Hal Ware. Also, Arabie and two other ASE master technicians, Dana Parker and Freddie Wilbert, are scheduled to start a school for industrial generator repair. “He’s kind of like the school superintendent. He goes around to all

the schools checking on things,” Cain said. Arabie killed Bennie Posey, 29, of Meridian, Miss., in 1984, after Arabie and a friend agreed to sell Posey and another man 10 pounds of marijuana. Posey and his friends, however, pulled a fake holdup and took the marijuana, leaving Arabie and his friend tied up on the side of the road. Arabie and his partner got loose and chased Posey and his accomplices to Baton Rouge, where Arabie shot Posey when the victim’s van stalled and he jumped out of it. After a rocky start in the prison system, including an escape from the State Police Barracks, Arabie began using his skills to better himself. In the aftermath of Hurricane Katrina, he was transferred to New Orleans to help law enforcement officers maintain a local jail, and to repair generators, air conditioning and electrical systems and help Amtrak officials get a locomotive running. In 2008, he helped restore electrical power to Angola and Avoyelles

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Correctional Center after Hurricane Gustav. Last year, the state Pardon Board unanimously recommended commuting Arabie’s life sentence to 45 years, which would make him eligible for parole. The recommendation awaits action by Gov. Bobby Jindal. Posey’s daughter, Ashley Posey, appeared at the hearing to speak in favor of Arabie’s application for clemency. “That was pretty generous of her,” Arabie said. “I always felt bad about it. When I killed her father, I didn’t realize it back then, I was young myself, 21 years old, she was put in foster care and basically raised by the state of Mississippi. I don’t suspect she had a lot of real favorable experiences growing up, but she got through it anyway. “When you think about it, somebody doing something like that, coming to testify on my behalf, after I did that to her father…” Arabie said, his voice trailing off. Arabie said he now hopes the governor will consider his accomplishments when he acts on the Pardon Board’s recommendation.

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Information Shops Can Use Presented at East Bay CAA Meeting by Ed Attanasio

accidents in the U.S. and more people with insurance were filing more claims than in 2010,” Forness said. “People are driving less, but there are more people out there driving, so they

shops to locate these non-OEM parts.” The parts climate is also changing as new vehicles embrace technological changes while attempting to meet increasing CAFÉ standards. “Too many cars now are being designed like aircraft,” Forness explained. “As they try to design cars that weigh less while maintaining structural integrity, we’re seeing more complicated parts mixes, consisting of more parts made of plastic composLKQ Industry Relations Representatives Albert Rendon (left) ites, carbon fibers, magnesium, and Lacy Towner attended to East Bay CAA chapter’s May high-strength steel and more meeting in Walnut Creek, Calif. aluminum. Also, the drive totend to offset each other. These num- ward making parts using more ecobers have gone up for the first time friendly materials includes things such since 2008, so that means there’s more as coconut fibers, soy foam for seat work out there right now.” cushions, mushroom roots for use in Another obvious factor affecting bumper covers, kenaf (a tropical plant), the collision industry is bad weather, and Ford Motor Company is researchForness said. And although it isn’t as ing the use of cooked chicken feathers important in northern California for use in some of its cars. (where we get rainstorms and earthOne alarming statistic is that more quakes that are way too infrequent to drivers are uninsured, Forness said. “In count on), bad weather helped the rest 2007, 86% of the drivers out there were of the country’s body shops in 2011. insured, but now it’s down to 82%. It’s caused by the recession, which is still lingering, and high unemployment.

If we’re only as good as the information we possess, people like Richard Forness are an invaluable asset to any collision repairer anywhere. As a highly-respected industry expert, national account manager for Industry expert Audatex (a Solera Richard Forness company), Forness gave a highly is a popular speaker informative presentation at who talks to body the May East Bay shops throughout CAA meeting the country about the current state of the industry and where it’s headed. On May 22, this 25year veteran who ran a series of highly successful body shops in the Greater Minnesota-St. Paul area, shared his views and offered useful statistics with the 60-plus East Bay CAA members in attendance. By closely observing the collision repair industry while traveling throughout the Western U.S. for his job with Audatex, Forness has been able to keep body shop owners and collision-related vendors on the cutting-edge of new developments that can impact their businesses. It’s information that is available to any body shop owner who can Owen-Dunn, the CAA’s preferred insurance service provider, find it, but compiling and pre- was represented by (from left) CWCA Tim Dickson, Patricia senting it in a logical way pro- Romero-Kaleel and CSFS/CWCA Marty O’Hara vides a complete picture of the world “There were almost 3,000 severe of collision repair, Forness explained. weather events last year, with 1,894 “We need to know, because we’re tornadoes and a wide range of inciheld at a higher level by the public and dents involving hailstorms, hurricanes our customers,” he said. “Knowledge and high winds. As a result, there were is power and by having the facts, you more claims in 2011, and we can cite can be a better owner and operator. bad weather as one of the main reaWe need to understand these new ve- sons,” Forness said. hicles, so that we can educate our cusAnother interesting trend in the tomers in the right things. It’s vital collision repair industry involves the because we can’t risk peoples’ lives continuing spread of aftermarket and with partial knowledge, especially in recycled parts, Forness said. “The use this volatile marketplace .” of OEM parts in repairs is still dropFirst, auto accidents are on the deping, and in 2011, there was another cline, which is good for the human drop in their sales overall. America’s race, but not profitable for the collision cars and trucks have reached a record industry. Previously, the average driver age of 10.8 years, and despite all of the in the United States was in an accident price-matching programs offered by once every eight years. Now, it's about the carmakers, body shops and insurevery nine years, according to Forness. ance companies are incorporating more But, don’t fret about the number of acand more aftermarket and recycled cidents, Forness explained, because parts in their repairs. The proliferation the news is still positive overall. of computer alternative part search en“In 2011, there were 22 million gines is also making it easier for body

36 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

When the economy further rebounds, the insured rate will increase, but until it does, that’s a scary number.” One answer that all body shops want to know is: will I be in business next year? Forness provided statistics to East Bay CAA offer a glimpse into Chapter President the future of body Tiffany Cichon-Silva shops in this coun(Accurate Auto try. “There are apBody) brought the membership up to proximately 34,000 speed on current collision shops out issues and there in the United upcoming events at States, and 500their May meeting 1,000 of those are closing every year. But, for those who can survive, there is good news. As the overall number of shops decreases, the average revenues per shop will grow around 2% every year.” After the presentation by Forness, East Bay CAA Chapter President Tiffany Chichon-Silva announced that the chapter’s annual golf tournament, originally to be held on June 2, will be re-scheduled for sometime in August.

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Disruption Became the New Normal in 2011 by Susanna E. Gotsch, Director, Industry Analyst CCC Information Services Inc.

The breathtaking speed of advancement in consumer electronics has become the new baseline for companies in terms of speed to market, price, and desirability of product. The most recent recession still drags the global economy, and continues to make consumers acutely aware of their finances, and the danger of living with too much debt. Consumers have become increasingly sensitive not only to price, but also to each individual product or service’s share of wallet. Technology such as smart phones, tablets, and social media has given individuals the ability to have their voice heard loud and clear. The channels for reaching and interacting with consumers have changed. It becomes increasingly difficult for businesses to remain relevant, to get their message heard, and to get the consumer to pay them any attention. Companies must also embrace the new disruptive paradigm where com-

petition will emerge from outside their historic range of competitors. Take for example, Amazon’s emergence as one of the largest providers of cloud computing, and the disruption Apple’s iPhone created in the mobile phone market. Companies should be taking queue from recognized leaders in the consumer products and services area, but also be aware of where start-ups are focusing their efforts. Significant shifts in the demographic makeup of today’s consumer are also a factor driving the disruptive shift in consumer demands. The U.S., like most industrialized countries, has seen its population grow older. The oldest Baby Boomers turned 65 on January 1, 2011. An estimated ten thousand more per day will turn 65 over the next 19 years, taking the share of 65-year-old-plus individuals to 18% of the U.S. population, versus just 13% today. An aging population has historically led

to lower accident frequency as people have historically retired and reduced driving during peak traffic times. The recession however has led many to postpone retirement, so we may see the traditional reduction in frequency push out several years. Generation Y or “Millennials,” individuals born between 1997 and 1990, accounted for 77.4 million individuals in the U.S. according to the U.S. Census, just slightly above the 76.2 million Baby Boomers. This generation is more ethnically diverse than older adults, and a greater share of them had at least one immigrant parent—11%, versus 7% for Gen X and 5% for Baby Boomers. A 2010 Pew Research Center study looked at the values, attitudes and behaviors of Millennials versus older generations. Among the findings of this study was the Millennials’ greater use of technology. Millennials feel that this is a defining feature of their generation. Millenials were also the first generation to fully embrace the use of technology in their role of a consumer as well. Owning an automobile has his-

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torically represented a rite of passage into adulthood and freedom for Baby Boomers (born between 1946 and 1964), a category still accounting for approximately 45 percent of new-car purchases. But there is a growing sentiment that the automobile has been replaced by the Internet and smart phones for those in the Generation Y age group (born between 1978 and 1984); changing the world the same way the automobile did at the turn of the 20th century. One of the areas with perhaps the most potential to directly impact automotive claim severity and frequency is the shift in the population towards urban areas. Results from the 2010 U.S. Census report that 54 percent of the U.S. population resides in its 10 most populated states, with just over 83 percent living in one of the nation’s 366 metro areas (core urban area population of 50,000 or more). During the last decade, the metropolitan areas, however, saw the largest increase, significantly higher than micropolitan areas or areas outside a core based statistical area. Personal mobility

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will reach beyond individual vehicle ownership to an integrated mobility approach, incorporating car sharing, public transportation and greater use of technologies such as telematics, smart metering and navigation. These major demographic shifts may ultimately lead to a disruption in the historical trend of vehicle accident frequency and severity. A greater share of the population will fall into the youngest and oldest age groups, where driving patterns may result in diverging patterns of frequency and severity. As the population shifts further to urban areas, increased congestion could lead to higher frequency, although increases in use of public transportation would do the direct opposite. Accident severity tends to be lower in traffic accidents occurring in congested urban areas, and the advent of crash avoidance technologies like the Volvo City Safety system have been shown to reduce both the frequency and severity of low-speed accidents. Economic conditions and the technology in vehicles have been shown to lead to decreases in vehicle accident frequency and severity, and will continue to do so in the future.

Because each generation’s outlook is shaped by different cultural expectations and experiences, companies must understand these, and incorporate them into the way that they interact with potential and existing customers. The ability to customize communication and marketing into generational and demographic categories will help companies portray the appropriate image and message and better grow their business. Insurers and repairers that will be successful in this disruptive demographic environment are those that have plans in place to market and serve the different age groups, and have looked at whether their current geographies are positioned to shrink or grow, and have adjusted their growth plans accordingly. While factors such as atmospheric conditions may be difficult to project, understanding employment trends (i.e. time of day people are commuting to work), vehicles purchased in your market (vehicle body type, accident avoidance technology and airbag availability and deployment), and driver age patterns will be critical to assessing market growth opportunity in the future.

The Accident is The Ultimate Disruptor The average consumer today has an auto accident once every seven to 10 years, well behind the average vehicle trade-in cycle of every five years. Due to the nature of the product being sold, auto insurers and collision repairers subsequently have very limited interaction with consumers. Insurers certainly interact with their customer at policy issue, at bill time, and sometimes through other services such as banking or games in apps. However, the real moment of truth for the auto insurer and the repairer is at the time of an accident. For the automotive insurance and collision repair industries, the challenge is to take the infrequent and unexpected negative experience of an auto accident and turn it into an experience where the customer is delighted. No one wants to have their vehicle damaged, and few consumers know what to expect in the auto claim and vehicle repair process. However, they come to this experience the same way they come to any other experience—with expectations that you

know who they are, that you will fulfill your commitments to them, and that you will create a positive experience. For insurers, the claim is one of the most significant opportunities to retain or lose a customer. For repairers, a positive vehicle repair experience can create a customer that will share their experience with friends and family, and help your business grow. Effective use of technology not only enables companies to meet the minimum set of expectations of their customers, but can also facilitate the delivery of a personalized experience that delights your customer. By combining innovative technologies that improve business processes, with the ability to finetune the messages delivered to customers at the right time, on the right device, businesses can place themselves in a position to meet the expectations of today’s consumer in a way that can provides them value. Effective use of technology not only enables companies to meet the minimum set of expectations of their customers, but can also streamline the overall claim and repair processes. For example, companies that have

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the technology in place to let consumers report the claim via a mobile device can capture a wealth of information on the facts of the loss, including photos. Incorporating this data into predictive analytics tools can help the insurer assign the claim to the best resource equipped to return the customer to pre-accident condition as quickly as possible. The ability for a repair technician to send messages to the claims adjuster electronically, versus calling and trading voicemails, can ensure speedier resolution to questions or issues that might otherwise hold up the repair. With customer satisfaction closely tied to the overall time it takes to return their vehicle to pre-accident condition, mobility can play a key role in reducing inefficiencies in the overall process. The recession led to a drop-off in driving, reduction in claim and fatality frequency, and a larger number of consumers opting to cash-out versus actually repair their car. As consumers begin to ramp up new vehicle purchases, and see moderate upticks in employment, the industry will gradually return to an environment that more closely resembles the mar-

ket pre-recession. Over time, this will lead to moderate increases in customers opting to actually repair their vehicles versus living with the damage (i.e. moderate increases in volume of vehicles actually repaired), but the gradual infusion of crash avoidance technologies in new vehicles will likely flatten-out any inflections in accident/claim frequency. With the exception of storm or catastrophe-driven claims activity, it is unlikely the market will see any dramatic change in the current patterns of claim frequency over the next 18 to 24 months. Outside of the increases in comprehensive losses tied to erratic weather patterns and catastrophes, loss costs for liability and collision are returning to their pre-recession pattern of year-over-year increases between one and three percent. Inflation in replacement parts and labor have accelerated slightly as the U.S. emerges from the recession, but still point to overall increases in repair costs of one to three percent. As new vehicle sales grow and ultimately show up in claims, repair costs will see some inherent lift. The juxtaposition of

greater vehicle complexity in terms of electronics and materials with greater prevalence of crash avoidance systems may ultimately result in fewer but more expensive repairs in the future. The average consumer today has an auto accident once every seven to ten years. Auto insurers and collision repairers subsequently have very limited interaction with consumers and few opportunities to show the value of their products and services. The real moment of truth for the auto insurer and the repairer is at the time of an accident. To be successful in today’s environment, companies must tap into the notion of disruption – where companies develop innovative technologies that improve business processes, and fine-tune the messages to customers so they are delivered at the right time, on the right device, with the most customized content, and place themselves in a position to meet the expectations of today’s consumer in a way that delivers value.

Susanna E. Gotsch is Director, Industry Analyst, at CCC Informa-

tion Services Inc. She has been with CCC since July of 1992. Susanna brings twenty-plus years of experience within the automotive claims industry as Director, Industry Analyst. She has authored The Crash Course, CCC’s annual publication on trends impacting collision repair and total loss costs since 1995. This publication has become a key resource for the industry in understanding how broader trends within the economy, new and used vehicle market places, and collision industry are impacting auto claim frequency and costs. She is also responsible for the generation of all trend analyses of the insurance and automotive industries published by CCC since 1995. In 2011, Ms. Gotsch was selected as one of five Most Influential Women in the Collision Repair Industry through the annual industry honorarium established by AkzoNobel Automotive & Aerospace Coatings America (A&AC). Coypright 2012 CCC Information Services Inc. All Rights Reserved. Confidential & Proprietary

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40 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

Hey Toby! Matrix Wand is a Game Changer with Toby Chess

Question: How would you like to be able to measure body structure, vehicle sub-frame movement, damaged suspension components and used BOF frame for damage or damaged parts in 20 minutes with a printout and the time of tear down? OK, how about the added advantage of doing it anywhere in the shop? We’re not using any frame-measuring equipment, by the way. Let’s throw in another parameter and do all of these tasks and more with a camera. You say impossible? Up until recently you’d be right but it’s not only possible, it’s here. It’s called the Matrix Wand and it’s a game changer. I was invited to a presentation at the April CIC meeting in Oklahoma City by Jan Srack on the Matrix Wand. It was an interesting presentation, but being the skeptical person that I am, I really questioned this technology. Gary Wano, Jr., owner of GW & Son Collision in Oklahoma

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

City, arranged for a hands on demo. He had a 2009 BMW 3 Series BMW that took a high hit. Both grilles, headlamps, upper portion of the front bumper and hood were damaged. The vehicle nose-dived under a bumper at less than 10 miles per hour. We inspected the bumper absorber and reinforcement for damage and there wasn’t any. We all concluded that the damage was isolated to the upper structure and there was no lower structural damage. Rob Bailey (from Matrix) took a picture and imported it into his computer and 10 minutes later his results showed that the left lower rail had a sway out 5 mm and sag down of 6 mm. Yeah, that’s what the picture stated, but did the rail move? Gary placed the vehicle on a Celette Bench the next day, and sure enough the rail had moved. Pretty impressive, but I still was not convinced, so I asked if they were doing any other presentations and I was invited to their

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office in Kansas. I spent two days with Rob Bailey, Tom Srack and Ron Chiles (national sales manager) measuring a number of cars. One of the vehicles was a 2010 Ford Escape. We found that the core support was asymmetrical. In other words, the driver’s side of the upper tie bar is 10 mm forward of the passenger’s side. Mitchell data says that length of the upper tie bar is the same. Who was right? I check with Chief and their measurement data also had 10 mm difference on the upper tie bar. I think that Mitchell better re-measure the vehicle and change their date. I told Jan that I would write an article on the equipment, but I would have to use it by myself to validate their claims of ease and accuracy. She loaned me a unit and I took it to Hawaii last month (I conducted a welding workshop and spoke to the Hawaiian Autobody Association) to check it out. What follows is what happened. Monday, the first vehicle I measured was a 2011 Honda Accord with damage to the left rail and left upper reinforcement area. The vehicle was on Global Bench System with the jigs in place.

The left rail was 8 mm back (circle).

The left rail had a sway over 25 mm and sag of 6 mm.

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More damage noted by the measuring system. I took a picture with the matrix system and this is what I found (see next page). I am going to use points 5/6, 9/10, and 13/14 on the distance table. Point 6-13 is 1237 mm and point 5-14 is 1212 mm. Point 5-10 is 1076 mm and Point 6-9 is 1080 mm. You can go to Mitchell data and verify any point-toSee Matrix Wand, Page 44

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 41

Industry Insight

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.

SCRS Meeting Discusses Insurance Regulation, State Farm with John Yoswick

State Farm’s PartsTrader program, the in error, incorrectly linking collision use of shops’ estimating and other data, damage on one vehicle to the VIN of anand how one state regulator oversees other. CARFAX was able to correct the auto insurers, were among topics at error, Schulenburg reported. with EdtheAttanasio a recent board meeting of the Society He also said that SCRS held a of Collision Repair Specialists (SCRS). meeting in late April with I-CAR and A number of participants at the representatives of many of the top aumeeting held on April 24 in Oklahoma tomakers to discuss increasing the City, OK, wore large buttons oppos- amount and availability of published ing “data mining” by the “Big Three” OEM repair procedures. The meeting information providers, they was the result of another joint statement with indicating Ed Attanasio wanted the ability to “opt out” of hav- by SCRS and other trade associations ing their shop estimating data aggre- last November recognizing published gated and used or sold. The buttons automaker repair procedures as the “ofwere part of the follow-up to a joint ficial industry-recognized repair stanstatement that SCRS and two other dards for collision repair.” The trade associations sent in January to associations also asked I-CAR to create CCC Information Services, Mitchell an industry council “to identify gaps in and Audatex, voicing concern about existing OEM procedures and develop collection and use of shop data. processes to close (those) gaps.” SCRS Executive Director Aaron The need for training and stanSchulenburg said that as of late April, dards was illustrated in a presentation only CCC had provided a formal re- by SCRS board member Paul Val, sponse to the associations’ request. who brought to the Oklahoma City “The response addressed that they meeting a quarter panel his Arizona have a mutual concern in protection of shop had removed from a poorly-redata, but didn’t really address the paired vehicle brought into his shop questions that we’d asked relative to because of a water leak in the trunk. an opt-out policy or discontinuation of Val said the MIG welds used to “atcollecting the data,” Schulenburg said. tach” the quarter panel didn’t peneHe said it is his understanding trate, and no weld-through primer or Mitchell and Audatex are working on corrosion protection had been applied. their responses, which he said the as“You could literally just pull the sociations intend to share with the in- quarter off,” Val said. dustry. He said his shop had to do $3,000 One aspect of data privacy con- in re-repairs to the vehicle. He said the cerns that Schulenburg said the asso- shop that had done the original work ciation has looked into were reports of under an insurer direct repair program vehicle accident histories showing up paid his shop for the rework with a on CARFAX reports—instances in credit card – and remains on the direct which the vehicle owner presumed the repair program. information could only have been ob“Someone is going to get killed in tained through the collision repair one of these cars,” Val said. shop that prepared an estimate on (or Also at the meeting, a presentation repaired) the vehicle. by representatives of the Oklahoma In two of the three cases of this type Department of Insurance was probably of situation that SCRS looked into, both heartening and disheartening at Schulenburg said, the CARFAX data actimes for collision repairers. tually had been sourced though local poOn the upside, Michael Copeland lice accident reports. In a third instance, of the Department’s anti-fraud unit a woman seeking to trade-in a vehicle confirmed the regulator is now fowas upset that a CARFAX report indicused more on fraud against concated that her vehicle had had structural sumers by insurers, rather than damage repair, when she knew this wasconsumer insurance fraud, which had n’t the case. She contacted the shop been its priority under some previous shown on the CARFAX report as havInsurance Commissioners. Copeland ing done the repairs. SCRS worked with also said he’d like to partner more CARFAX and determined the report was with the Oklahoma Auto Body Asso-

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42 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

ciation to address issues of concern. On the other hand, Jason Johnston, a senior claims processor and reviewer for the Department, seemed to acknowledge the state’s anti-steering law is being interpreted loosely. The law prohibits insurers from making shop referrals unless requested by the vehicle owner. “But we’ve determined the insurance company can say, ‘Do you have a place in mind, or we can offer a repair place,’” Johnston said. “We give (insurers) that option.” He said he’s probably had only a half dozen complaints related to steering, and they are difficult to address because it’s usually a shop’s word against the insurer’s. He said an audio recording or affidavits - enough to show a pattern - could help. But he was also asked how a shop can combat some of the subtle but perceived as unfair “steering” techniques used, such as an insurer telling a customer the process could be slower at

the non-DRP shop and thus could result in the customer having to pay some of their own rental car costs (even if the customer has 30 days of rental coverage on their policy). Johnston’s only suggestion: Perhaps the non-DRP shop can offer something to better compete for that customer’s business, such as a free rental car. State Farm’s PartsTrader program had been the focus of a closed session of SCRS’ board meeting, but during the open session, Schulenburg asked State Farm’s George Avery if the insurer would move forward with PartsTrader if shops, dealers and other parts vendors are resistant to it. “At this point, we are moving forward,” Avery said. “We are moving through our test. We’re obviously gathering information, making adjustments along the way. But I can tell you that State Farm is moving forward with this. We think it is in the best interest of our customer. I know we don’t have agree-

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ment, and that is fine, and I carry that information back. (And) something could happen that I can’t predict. But I can tell you that, right now, that we are moving forward with the process with our Select Service providers.” Schulenburg said SCRS also had worked with State Farm on an issue related to shops in several markets being asked by the insurer to attempt repairs before replacing a part, but if replacement eventually proved necessary, local State Farm claims staff were telling the shop they could only pay for one or the other, but not both. Schulenburg said State Farm was able to communicate to their staff that “if it’s legitimate to have attempted repair and then it’s necessary to replace, that certainly there is no (company) policy prohibiting (paying for) that.” Avery said advance communication between the shop and the insurer is the key. “We had cases where it really boiled down to there being no agreement up front,” Avery said. “So that’s what we communicated. Please have communication with the repairer up front and say ‘Look, if we decide to pull this and it doesn’t work, what are we talking about?’”

Massachusetts New Car Dealers and R2R Coalition Agree on Compromise Bill

On June 20 the Massachusetts State Automobile Dealers Association (MSADA) and the Massachusetts Right to Repair Coalition announced an agreement on compromise “right to repair” legislation that, if passed, would avoid the November ballot question fight. “Our members not only are franchise vehicle dealers for the manufacturers but also act as independent repairers when working on vehicles outside their franchise line makes. Therefore, a consumer’s ability to have his or her car repaired by whomever he or she wants is important to us. As part of the legislative process we have been working with legislators, the Massachusetts Right to Repair Coalition, vehicle manufacturers, and all other interested parties to achieve a consensus on a bill that would ultimately avoid the November ballot question while fixing the problems in the petition that directly impact our member dealers, their almost 25,000 employees, and their sales and repair customers,” said Robert O’Koniewski, Executive Vice President of the Massachusetts State Automobile Dealers Association. “Should the ballot question pass, and all polls indicate that it would overwhelmingly, there is a great possibility that our dealers will not have vehicles to sell to our customers beginning in the spring of 2014 as the manufacRX-8 2012

turers cannot, or will not, comply with the law. That is a prospect with which we cannot gamble our dealers’ businesses and their customers’ satisfaction.” “We are especially pleased that the Massachusetts State Automobile Dealers Association has joined us in pushing for a legislative solution to the Right to Repair issue,” said Art Kinsman, spokesman for the Massachusetts Right to Repair Coalition. “At the heart of it, Right to Repair has always been about fairness in creating a level playing field between the car and truck manufacturers, franchise new car dealers and their independent counterparts in the aftermarket.” The Massachusetts Right to Repair Coalition, representing 40 consumer and aftermarket organizations, more than 2,000 independent repair shops and 32,000 jobs across Massachusetts, and the Massachusetts State Automobile Dealers Association, which represents the 410 franchise new car and trucks dealers in the Commonwealth employing almost 25,000 men and women, sent a joint letter to Massachusetts lawmakers asking them to act on the Right to Repair legislative proposal in advance of the final July 3 deadline for certified signatures on the Right to Repair ballot initiative to be submitted to the Massa-

chusetts Secretary of State. Both MSADA and the Massachusetts Right to Repair Coalition would prefer a legislative solution to the Right to Repair issue as long as it contains strong consumer protections and remedies as proposed in the ballot initiative. “Our fight has always been with big out-of-state car manufacturers on this issue. Now legislators can be assured that the Right to Repair legislation before them will be a great benefit for all their constituents who make a living in the local automotive repair business. Of course, the greatest beneficiary is the car owner, who will have a true, unfettered choice of where they get their cars fixed. Today’s accord proves that both www.autobodynews.com new car dealers and independent repairCHECK ITcustomers’ OUT! best ers together have their interests at heart,” said Kinsman.

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Continued from Page 41

Matrix Wand

point measurements and compare with the vehicle being photographed. When I went into the XYZ comparison, I found that the length was 8mm short, height was 5 mm down and width had moved 25mm and this was done with a picture. Dale Matsumoto, the owner of Autobody Hawaii, timed me and it took

me 20 minutes from the time I took the picture until I gave him a print out. The vehicle was pulled and here are the pictures: As you can see, the vehicle has been returned to its correct width, length and height. I proceeded to take another ‘after picture’ and measure. I am going to use points 13-14, 56 and 7-8. Points 13-8 is 1225 mm and points 14-7 is 1224 mm. Point 13-6 is 1077 and points 14-5 are 1076 mm. To verify that these measurements are accurate, I measured points 13-14 with

a tram gauge and found the distance to be 1026 mm. I went into Mitchell and their measurement was 1026 mm. Looking at the distance table in the picture, it read 1026 mm. All I can say is it’s pretty remarkable. The only way that you can appreciate this revolutionary piece of equipment is to see it in operation at your shop. Either call me at 310-995-7909 or email me at tcspeedster@yahoo.com and I will set up a demo for you, either personally or through the company. You will be amazed!

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Continued from Page 31

Take it to the Dealer

it, but when I talked to my neighbors, they told me about your shop,” the caller said. How about asking around first? You might even learn a little something about your neighbors; hey they’re probably quite friendly; maybe you’ll actually learn all of their kid’s names, too. So what’s the problem between the independent and dealer repair shops? It could be from previous dealings in the past, and the customer didn’t like the results. It could be size of the shop or the location. The real reasons are hard to pin down. I’m not knocking the quality

of work performed at a dealer repair shop, no, quite the opposite. I would say I’ve also seen an increase in the quality of the independent shops in my area as well. There’s fewer wrench-slinging grease monkeys out there than in years past. It really takes a different type of “mechanic” than it did even 10 or 20 years ago, and that’s not just for the independent shops... that goes for the dealer technicians as well. Locate a shop you like, find a technician who you feel comfortable with. If your search ends up with that individual at an independent shop, that’s fantastic! If you can’t find the service you’re happy with anywhere except at the dealership, well then, there’s only one thing to do… take it to the dealer.

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The Community-Focused Body Shop

Domenico Nigro is the president of Nigro’s Auto Body, a very progressive shop for their community in Philadelphia. In addition to many productivity innovations, Nigro’s installs equipment for disabled drivers, has developed several phone Applications, and represents products which directly support charities such as United Way and the National Breast Cancer Foundation. Contact him at: nigroautobody@comcast.net.

Are You Getting Paid for Your Refinishing Work? with Domenico Nigro

For some reason, refinishing is one time and materials that are directly used facet of our business that we accept losin the refinishing process and should be ing partial revenue on, or are content billed properly. with our ignorance of how to properly with Janet Cheney P-Pages and other estimating sysbe compensated. Unless you’re adding tems have several loopholes that allow priming as a separate line item, you’re you to lose valuable revenue on your redonating the time and materials to the finishing work. The point and click nainsurance company. You need to make ture of these systems have allowed us some very basic but critical changes to to forget about or let the computers hanyour estimating and billing procedures dle the logic that goes into each estiwithpaid Frank Sherosky so you can start being properly for mate. We put too much faith in the all the pieces of the refinishing process. accuracy of this logic and it’s been hurtHave you heard the following from ing shop owners for decades. Even if adjusters? “I’ll make up for it someyou are aware of how to properly acwhere else in the estimate.” Or, “I’ll count for all the costs associated with make it up to you on the next job.” They repairing a wrecked vehicle, often times don’t want to be reprimanded by their the insurance adjusters can bully you bosses for paying out for procedures out of recouping these costs and prothat they’ve been getting for free for so hibiting us from charging what we are long. As an industry, we deserve to be truly owed. If this is happening to you, paid for our work, all of it, and the supand you’re aware of it, you may be costplies that go into it. This isn’t a cost like shifting to compensate, or you may paying rent or your electric bill, and consider these losses as insignificant. shouldn’t be considered overhead or a In a previous column, I wrote about cost of doing business today. This is “feather, sand and fill” and it’s recog-

Shop Showcase

Industry Business Beat

nized as a procedure that should now receive industry-wide acceptance and payment, but there are other primer issues not receiving that same regard and not being paid for by the adjusters. I’ll talk about some of the main ones and discuss how to change this behavior to start getting paid properly. Here’s a good example: We did a quarter panel and the adjuster manually cut the refinish time in half, citing a process he (and several other insurance adjusters) call “blend within the panel.” There was less than five inches of undamaged panel on the repair, so what exactly are we blending to? This “blend to panel” isn’t even listed in the databases. As far as we can tell, it’s just a name they made up to intimidate or confuse the shops. So remember, if primer ever touches the panel, a full refinish time should be covered. Did you know that 2.5 hours maximum on clears only covers labor and not materials? If you do the calculations

on the total clear hours needed, subtract the 2.5 hours and then multiply that number by your paint multiplier, you’ll have the extra clear needed for the job. (I have a separate line item that I call additional clearcoat materials needed above 2.5 max). Coating bare metal parts so they are restored to a “new panel equivalent” is another example of where you may be losing revenue. Another example is doing solvent and tape testing for the stability of primers on plastic parts. What about blending within a panel? Two of the major databases don’t account for color mixing. As far as tint is concerned, are you putting it in with paint labor or body labor? The adjuster will probably tell you it goes in the body column because you’re not using any new material, which again just is not the case. Your painter knows that upwards of a dozen variances are added to achieve a desired tint. These are more materials that See Getting Paid, Page 51

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www.autobodynews.com | JULY 2012 AUTOBODY NEWS 45

Continued from Cover

Mississippi Reacts

ing the State Farm Proposed Parts Procurement Program within its Select Service Program changed all that. More than 100 MCRA members, as well as Mississippi Attorney General Jim Hood and John Wells of the Mississippi Department of Insurance, came together in Pearl, Miss. to hear what body shop owners from Birmingham, AL had to say about the PartsTrader program. Birmingham is one of the four national test markets where the PartsTrader program is being tested. Usage of the PartsTrader software has been required by State Farm in four test markets: Tucson, AZ, Birmingham, AL, Grand Rapids, Mich. and Charlotte, NC. Approximately 10 percent of State Farm Select Service shops are participating in the pilot. The Mississippi Collision Repair Association invited auto body and repair shop owners from Birmingham to come to their meeting to discuss their experiences with PartsTrader. “We wanted to know what the program is and what it will do to our industry, and the Birmingham group had nothing positive to say about the PartsTrader program,” said John Mosley, who owns and operates Clinton Body Shop Inc. and Clinton Body Shop of Richland in Central Mississippi. Mosley is a past president and one of the founding members of the association. “No one from State Farm has called, visited or made any attempt to explain anything about the PartsTrader program to our shops or to our local industry,” Mosley said. “The only knowledge we have of this program is what we read in the trade publications and the short video produced by State Farm. My personal interpretation of the video leaves me knowing the program is real and they plan to roll it out nationwide. The shops will have no choice but to participate in PartsTrader if they remain on the DRP and our choice of parts suppliers will be limited and the profit on parts will definitely go down.” Even though he hasn’t tried it, Mosley declared he isn’t interested in the electronic parts ordering application program and his answer to State Farm will be a resounding “NO!” if PartsTrader is a requirement to con-

tinue with the Select Service program. Mosley wants to stay with the Select Service program because it helps shops by saving time waiting on appraisers and allows the shop to determine what type of part and which supplier would serve to properly repair the vehicle in the least amount of time. However, he is willing to give

manding that this program be imple- State Farm video released in May. mented—I believe insurance compa“The State Farm video states this nies view shop profits as money they program will increase efficiency in the left on the table. They won’t be satis- repair process. My belief is it will defied until they have it all,” Fowler crease efficiency while enabling State said. Farm to keep more money out of the Fowler said he won’t participate repair by taking a share of the parts in the program either. profits. This is a very deceitful act to “I think this PartsTrader debacle perform under the cloak of fairness has caused many a shop and efficiency. The only real informaowner to drag out the Select tion we have learned in our area came Service agreement they from shop owners, suppliers and a forsigned and revisit just exactly mer State Farm employee from the all the things they agreed to,” Birmingham area.” said Fowler. “They are comThe Birmingham shop owners ating to a collective realization tending the MCRA meeting who have that all the language, terms actually tried the program “withdrew and conditions contained in themselves from the Select Service that agreement aren’t just program,” said Mosley. “They stated words to fill space. Each and the program was a nightmare. They every one of those conditions said it held up the repair process by will eventually come to gathering bids on parts. According to fruition and many are reconthese shop owners, one by one, they John Mosley addressing the Mississippi Collision Repair sidering if it is worth it. As far told us we will have to hire more adAssociation as me giving the program a ministrative personnel to keep up with up Select Service if it becomes tied to try, I have been quoted as saying, ‘If the program demands. They echoed PartsTrader. you put a s#!t sandwich in front of me, what we firmly believe: this program Mosley is one of several Missis- I don’t have to take a bite to tell you I will slow down the repair process, insippi auto body shop owners who don’t like it.’ So, no, there is no chance convenience the consumer, and cost opposes the PartsTrader program be- I will participate in the program, either the shops money in an effort to give cause, he says, it forces shops to wait voluntarily or involuntarily.” State Farm more control of the parts for the software program to gather Mosley also takes issue with the and their costs.” bids on parts. Supplements or a big repair job could create an administrative nightmare, Mosley said, Audi adding that body shops would need Genuine Parts to hire an additional employee to sit at the computer all day monitoring Nothing else measures up. the bid process. Bill Fowler, who owns Bill Fowler’s Bodyworks in Southaven, Miss., couldn’t agree more. “The concept that adding additional steps and wait times will increase efficiency and cost effectiveness flies in the face of logic,” he said. “The fact that neither State Farm nor PartsTrader executives can offer any tangible evidence that it does expedite the process, but instead answer direct questions with halfOrder Audi Genuine Parts from these select Dealers truths, evasiveness and outright misrepresentations gives great cause for concern and raises the suspicion that there are underlying ulterior motives New Jersey Pennsylvania to reduce profitability for collision repair shops. It is insulting for State Audi Turnersville Audi Warrington Farm to suggest that shop owners/opTURNERSVILLE WARRINGTON erators don’t have the good sense to 877-826-2558 215-343-4810 procure parts in an expeditious man856-649-7185 Fax 215-343-5352 Fax ner and they have a better way that inHours: M-F 8am 5pm www.1800THOMPSON.com volves foisting considerably more www.auditurnersville.com administrative time onto parts suppliers and shop owners, with no cost or consequence to themselves. Regarding State Farm’s real motivation in de-

46 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

George Avery, a Property & Casualty Claims Auto Consultant who has been with State Farm for 33 years, said about the Birmingham shops: “They made a business decision. I think a lot of them left before they even used the tool, which we felt was unfortunate, but that was a business decision they needed to make. I just don’t like to see a situation where someone makes a decision based on inaccurate or incomplete information. Info gets passed and sometimes it’s inaccurate and assumptions are made.” In a letter to George Avery, Mosley writes: “This program is now serving as a catalyst to both ignite and unite this industry in a manner I have never experienced in my 58 years.... After lengthy discussions with shop owners and parts suppliers in Alabama, I see no way this program is a benefit to the repair shop or the consumer. The underlying purpose of this program is for State Farm to make a higher profit at the expense of the collision repair industry and the parts industry... You present this program as a tool of efficiency serving to expedite repairs... How can any program that adds to the administrative process by gathering bids, waiting for those bids

before we can begin repairs, only to be waiting again when we have a supplement, add to efficiency? There is no way.” Avery said State Farm responded directly to Mr. Mosley in a personal letter. Two of Mosley’s biggest worries with the PartsTrader program are losing his relationships with parts suppliers—he said he doesn’t want a relationship with a piece of software—and how the parts bidding process will affect repairs. “In order for a vendor to win a bid, they have to be the lowest price. Being the lowest price doesn’t mean it will be good. It means a lot more to me to do a proper repair than finding the cheapest part to do the repair,” Mosley said. “We have a duty to our customers to fix vehicles with parts that will do that and I know who to get parts from.” According to an Automotive Services Association (ASA) fact-finding study: “State Farm can currently see the discounted MSRP prices provided by dealerships. ASA’s research shows this to be one of the largest concerns from the repairer’s perspective. State Farm was made aware of this

during the pilot process and reports it is seeking ways to address this.” Suppliers cannot see “price quotes” made by other suppliers. The ASA report also said that pilot shops have reported experiencing increased cycle time delays as related to “Priced Perfect” recycled parts – based on inaccurate description. “This is not a new issue. PartsTrader believes that a combination of supplier education and the planned feedback and ratings system can help address this,” the report said. Another issue to consider, Fowler noted, is “how State Farm is reacting to the wholesale rejection of the program in the Birmingham market area. They are scrambling to find replacement shops for their Select Service program and are approaching the very shops that they removed form the program when they scrapped the Service First program, or shops that have always passed over because of poor quality repairs, excessive charges, or both. State Farm bragged that only the best of the best shops were selected to participate in the Select Service program, so what does it say about the integrity of their DRP program when they are enlisting the very shops they

have already rejected? Why is this part program so important to State Farm that they would allow this question to be raised?” While the State Farm PartsTrader issue has brought some auto body shops up in arms, in Mississippi, State Farm has inadvertently revived an association. “Our association was very strong for several years,” Mosley said. “We helped bring I-CAR and other training to the state of Mississippi. We lobbied for legislation to protect consumers rights in our state. But we became victims of our own complacency. Everything was going good, so the once-energetic association slowed down and became inactive. But this issue served as a spark to unite our association, and body shops nationwide. The one thing this PartsTrader program has succeeded in is waking up and helping to unify our industry. The Mississippi Collision Repair Association is back, is on track, and will stay focused on this industry.”

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What it Takes for a BMW Dealership to Become a BMW CCRC

Some recent controversy about who is a BMW certified training center and why, prompted us to look into exactly what the requirements are for dealerships to gain certification. There are no “authorized” repair centers and only dealerships can become BMW Certified Collision Repair Center (CCRC). At present there are only 69 CCRCs in the US, and only nine in California. The entity that owns the BMW Center must be the same entity and must have the same level of ownership in the applicable collision repair facility. Here you will find a condensed version of the key steps and requirements for a facility to become a BMW Certified Collision Repair Center. BMW requires each and every CCRC in the program to follow these stringent criteria and follow these guidelines. BMW CCRC’s are expected to repair BMW vehicles back to BMW specifications using only Original Parts and following the repair procedures stated by BMW. With general technician training, technicians are recognized for attending the training courses by BMW North America but they are not [necessarily] BMW Certified Technicians. They have a recognition plaque of all the training courses they have attained but it is not a Certification plaque. If the technician goes from a CCRC to another repair center it does not mean that shop will now have BMW Certified Technicians. The only time the word “Certified” is used is when the facility becomes part of the BMW Certified Collision Repair Center program. That means that the BMW CCRC has met all the requirements and goes through an annual Re-certification process. 2011 BMW Certified Collision Repair Center Program The BMW Certified Collision Repair Center Program is a voluntary, no fee program developed to ensure that BMW clients receive a first -class customer experience. The Certified Collision Repair Center (CCRC) Program is designed to enable BMW Centerowned collision repair centers to: ● Focus on achieving a high level of profitability; ● Operate more efficiently; ● Ensure vehicles are repaired to BMW specifications (as outlined in the Technical Information System, or

ISIS/ISTA); and ● Ensure vehicles are repaired using only BMW original parts, approved paint, materials, tools, and equipment.

CCRC Program Benefits During initial certification (and throughout the certification and re-certification process) BMW NA’s vendor, Summit Consulting, Inc. (“Summit”) provides several types of 100% BMWfunded support to help a CCRC enhance its collision repair business. The objectives of this support include: ● Identifying market opportunities to generate revenue; ● Establishing the CCRC’s current collision revenue performance; ● Closing the financial gap between the CCRC’s market revenue opportunity and its actual revenue performance trend on a per collision repair basis; and ● Identifying required tools / equipment needs, while assisting CCRCs to project the recommended capital investment levels.

Annual CCRC Managers’ Meeting The CCRC management should actively participate in the Annual BMW CCRC Managers’ Meeting. By attending this event, a CCRC manager benefits by: ● Receiving the latest BMW branded collision repair business tools; ● Reviewing the trend of CCRCs’ collision process and profitability performances; ● Learning and sharing key collision repair service strategies focused on improving profitability; ● On-going professional training; ● Management Roundtable Discussions—These facilitator-led group discussions are designed to allow CCRC participants to share proven techniques and best practices to grow the collision business both in parts sales and repair revenue; ● 4 Stage Market Network Development Financial Analysis Tool—This four stage tool provides enrolled CCRC managers access to: ▬ Identify market opportunities to generate revenue; ▬ Establish the CCRC’s current collision revenue performance; ▬ Close the financial gap between CCRC’s market revenue opportunity and its actual revenue performance trend on a per collision repair basis; ▬ Identify recommended capital in-

48 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

vestment levels and required tools and equipment needs.

Collision Repair Parts Incentive Program All BMW Centers have the opportunity to open a BMW CCRC. BMW NA offers all CCRCs the opportunity to participate in the monthly Collision Repair Parts Incentive Program. Eligible BMW CCRCs can earn a 2% rebate on the dealer cost of all original BMW parts purchased from BMW NA and used by the CCRC for non-warranty or non-maintenance collision repairs. The BMW CCRC is eligible for the rebate only if the CCRC remains compliant with the CCRC Program.

CCRC Promotional Material ● BMW NA CCRC plaque and annual re-certification endorsement slugs; ● CCRC Customer Creed plaque; ● BMW branded marketing materials; ● BMW NA approval to use official CCRC signage.

Additional CCRC Benefits In addition to the benefits outlined above, CCRC Program Benefits include:

● Accessing & using customized BMW CCRC marketing materials; ● Utilizing BMW approved collision repair tools and equipment; ● Making use of the latest BMW branded collision repair business tools; ● Participating in body & paint technical and non-technical training courses; ● Efficiency improvement by using BMW repair specifications (ISIS/ISTA), the flat rate manual (KSD), and electronic parts catalog (EPC) for repairs; ● Utilizing an approved refinishing system of the BMW Group; ● Participating in the 2011 Profiles In Achievement (PIA), which includes an incentive program for CCRC managers; and ● CCRC’s premium access to Roadside Assistance. Program Participants Successful results in the CCRC Program rely heavily upon the CCRC’s professionals and the culture in which they operate. These individuals are responsible for adopting the processes necessary to: order and install original

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CCRC Certification and Re-certification Process Initial Certification Visit The first visit by BMW’s vendor, Summit, will focus on ensuring basic compliance and review of the approved center’s collision repair facility’s core processes to profitably repair vehicles per BMW repair specifications (ISIS/ISTA.) A CCRC’s use of BMW NA approved paint, materials, tools, and equipment is also reviewed. Following the initial visit, the CCRC’s management team and Summit will develop specific on-site action plans for technical and ColorSystem training to ensure that these mutually agreed upon business goals are met by the CCRC.

Re-certification Visit If the CCRC continues to comply with the CCRC Program requirements, the CCRC receives an annual re-certification visit and follow-up by Summit. Following the re-certification

visit, the CCRC’s management team and Summit will review specific onsite training and action plans to ensure that these mutually agreed upon business goals are met by the CCRC.

Certification Program Elements Technical and Non-Technical Training Requirements To ensure premium quality collision repairs, body and paint technicians will meet the training requirements listed in Appendix A. Each CCRC must have a designated individual who is accountable for approving staff training and determining the training path for each individual of the CCRC’s staff. The amount of training required is based on the CCRC’s body and paint market penetration, the size of the collision center staff, and the CORA Job Classification of the associates at the collision center. Training requirements are reviewed and adjusted on an annual basis. As the collision repair facility’s staff and market penetration grow, so will their training requirements. Training is currently offered at the following five locations: ● Woodcliff Lake, New Jersey ● Spartanburg, South Carolina

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Collision Repair Facility Requirements The physical location of the CCRC must be within the BMW Center’s PMA.

Facility Criteria In support of the BMW brand, each CCRC may use BMW NA approved CCRC signage only if the facility consistently complies with the BMW NA recommended BMW facility guidelines. This applies whether the facility is on or off site in relation to approved certified center’s location.

Usage of Original BMW Parts Criteria The CCRC Program prohibits the installation of imitation, aftermarket, non-BMW remanufactured, and/or salvage (allegedly Like Kind and Quality) parts, including glass, on any year or model BMW passenger car or SAV. Failure to comply with this requirement qualifies for automatic decertification from the CCRC Program for at least the remainder of the calendar year in which these non-approved parts were installed. Tools and Equipment A CCRC is required to have an on-site location for all approved tools and equipment necessary to properly repair BMW vehicles. The BMW approved tools, equipment, and materials are listed in Appendix C. Required tools, equipment, and materials are subject to change based on technology, required new tools, and special tool changes relating to new models.

Submission of Monthly Reports BMW NA’s CCRC Program requires participants to ensure timely submission of a monthly Parts Rebate Report. This Report verifies the CCRC’s purchases and use of original BMW parts on repairs, potentially eligible for a 2% rebate for those parts. This information must be submitted on a monthly basis directly to Summit Consulting by the 15th of the following month. Failure to comply with this monthly requirement of submitting the parts rebate will result in the CCRC forfeiting that month’s rebate. Late reports

will not be accepted for the parts rebate.

Failure to Comply with CCRC Program Elements CCRCs that fail to comply with the CCRC guidelines will be in jeopardy of forfeiting their certification and the related BMW CCRC’s monthly parts rebate. This decision will be at the sole discretion of BMW NA. The CCRC will then have 90 days to correct the area(s) of non-compliance or risk de-certification. During this 90 day period or until such time as the CCRC has remedied the non-compliance issue(s); the BMW CCRC will forfeit all parts rebates. If the CCRC fails to resolve the action item(s) by their deadline, they will be de-certified and removed from the BMW CCRC Program. Summit conducts CCRC facility on-site inspections of BMW NA-approved paint, materials, tools, equipment, and review of the CCRC’s staff training requirements. Summit works with the CCRC’s management team to evaluate and assist the staff to manage and improve the key elements needed to repair vehicles to BMW repair specifications and help increase profitability per collision repair. Summit’s team of seasoned professionals has extensive experience in the collision industry with top automotive distributors. Each consultant has the industry knowledge and training skills required to effectively assess and educate the CCRC’s staff to develop and utilize the processes for: ● Ordering and installing original BMW parts; ● Training collision repair staff; ● Repairing BMW vehicles to the highest quality standards; ● Analyzing financial performance, and establishing action plans; ● Submitting the Parts Rebate reports

2011 BMW CCRC Training Determining the number of technicians and estimators that must complete training to meet CCRC Requirements: ● 100% of the collision center staff dedicated to BMW repairs based on the technician’s Dealer Enrollment Management System (DEMS) job classification will be required to meet the training standards established by BMW NA. The total number of dedicated and trained BMW technicians requiring training will be adjusted to take into account the CCRC’s BMW See BMW CCRC, Page 55

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 49

Custom Corner with Rich Evans

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

Building a Junior Motor Sport Vehicle for 11-Year-Old Driver I’ve been very busy the past three width and positioning. We got a Legmonths working on a new project for end vehicle and I stripped the body off Dan Weaver of the Bakersfield area it and I had Brandon’s dad, Dan, look and his 11-year-old son Brandon around and get some bodies. They Weaver, a junior race car driver who looked like miniatures of NASCAR, so we could make is number #1 in California and #3 in a plug. Making the the nation for his class, Bandalero plug means getBandit Division. with Thomas ting the shape and Dan and Brandon wanted me Franklin to design in place build them a junior motor sports vehiand modifying it cle and I’m excited to share this new to look like what project with you. I was pretty pumped Dan wants. Dan up. I’ve built body kits for the MusBrandon Weaver. fell in love with tang, I’ve worked with Mopar, and (From File) my Mustang and built the polyurethane body kits for the Challenger. Now, it’s going from he likes my style of the bodies. Using parts to a complete vehicle—I am all Fiberglass is obviously better than about that. This is a challenge for me. metal at this point because race cars It brings on my creativity and I will be get all banged up, they get wrecked able to learn more in depth what it and then they have to change out the with Dick Strom body. takes to build a complete vehicle. We cut the body in half because it I started with a basic foundation and that’s a great way to get a head was a little long, shortened it up, got it start. What I decided to do with this to fit the wheel base of the Legend, project is to build backwards. We spliced it together and cut off the front started with a Legend body because end because we’re not going to be Brandon is just a little guy, 70–80 using that front end. I took pre-existpounds max. This way I can gain the ing body parts that I’ve made and wheel base and get some ideas about pulled some parts out of molds so I

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can cut them up and modify them to fit this car, which I would call a ‘minime’ because it’s a smaller version. Next, we took the splash off a Mustang hood, cut it down, and spliced it in so we can get our hood looking right, and then we got the body secured to the frame. We definitely needed to make accessories, so I came up with the scoop, the rear wing accessory, the left and right quarter scoops and the front fender scoop, and that gives us nine pieces, which means I need to make 9 molds. With all that being said, the proper process of doing this is sculpturing it out and making sure all sides are symmetrical, such as the left rear wheel wells matching the right wheel wells. I am modifying the rear of the car to look more like the Mustang, and the sides I have to modify to make the lines look more like the Mustang, to

give them a Rich Evans designed vehicle. We are using some features to replicate the Mustang. The whole idea is to use the taillights and headlights from a Mustang. We don’t want to have to re-create the wheel and have to get into tooling expenses by mak-

ing our own headlights and taillights, so we need to utilize what’s out there. After getting it pretty close, I’m using 80-grit sandpaper. PCL #901 once again has stepped up to the plate. I cannot build any cars without that product. After shaping with 36-grit and then 80-grit, I’m ready for primer. For

to get to the molds. I am excited about this project. It’s another challenge. I have to thank my sponsors, PCL, 3M, SATA spray guns and Infratech heat lamps, and Brandon and his dad for allowing me and believing in me to do this project. Also, check out my new website, builditwithRichEvans.com. DIY (Doautobodynews.com it-yourself) car builders are the root the of American car culture and one that I grew ness with Promote your business with up in. If you guys are building cars out in your garage, I featuring an exclusive article featuring could show up at your services. your products or services. garage and give you three days of free help with your own do-it-yourself car building project. Fill out an online application off my or details! Call for details! new website. We’re teaming up with my sponsors for free 251 800-699-8251 molds and that’s the point where we products and parts. I want to know are at now. Three months of hard work your story. the first process of primer, I lay about three gallons of primer on the body. PCL is both a timesaver and money saver. I’ll use 80-grit to shape it, then guide coat it, and then come back with to 150-grit, this Southwest Edition? re-primer it with another gallon or gallon and a half of primer, sand it again with 150-grit and come back with 400 wet. Then, we’re ready for

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Continued from Page 45

Getting Paid

you’re giving away for free. The same applies to setting up for a second color. For instance: a bumper on a sports car that has a different color than the rest of the vehicle. The paint providers assume that it’s all done as a single operation. They fail to account for clean up between colors, identifying, mixing and matching both colors. These are just a few easy examples of processes that you may not be getting paid for. The list goes on. What are you going to do about it? P-Pages obviously has its limitations and faults, but these issues aren’t insurmountable and altering P-Pages isn’t the only solution. Let the responsibility fall on you and your shop to start examining P-Pages more carefully to determine how much revenue you are losing every day. If you’re not concerned with filling these revenue leaks and correcting the oversights that negatively affect our bottom line, then why even bother showing up to work in the first place? We’ve given too much power to the insurers, and the average shop that Continued from Page 12

Birmingham Reacts

swirling around the program and State Farm’s attempt “to clear up perhaps some misinformation.” In the State Farm letter signed by Roger Mann, it stated: “Collision repairers must be profitable to provide the quality repairs on which our customers depend. At the same time, State Farm must act as an advocate for reasonable repair costs on behalf of all our customers. We believe repairer profitability and reasonably priced, quality repairs can both be achieved. “... We understand there are many factors associated with making part selection decisions. Pricing, availability, vehicle type, and supplier service levels are all important considerations. Our pilot acknowledges and respects existing relationships that repairers have with suppliers, including the confidentiality around margins and purchase prices. This new process keeps repairers in control of all part selection decisions. There are no requirements for repairers to use suppliers they don’t know or trust. Suppliers are invited to

isn’t a DRP needs to start correcting these mistakes if they have any chance in the industry today. Again, the solution is coming together as a community and creating a new standard. If we all familiarize ourselves with the P-page logic and determine what we are and aren’t getting paid for, then we can begin to make a change in how adjusters value our time and materials. Know your P-Pages: Your estimating database can be your best tool but you have to know it thoroughly to use it correctly. There are seminars and online classes if you need help, but you must familiarize yourself with what is and is not covered in each procedure. Join a professional association. Network with your competition. They may compete for your jobs, but we’re all in the same boat when it comes to getting paid what we’re worth. Don’t ever stop complaining or voicing concern through the proper channels. If you educate yourself on properly accounting for these procedures and you’re still having trouble getting compensated by the insurance adjusters, make your voice heard. Write your local and national representatives. Call the insurance company. It’s possiSee Getting Paid, Page 54

participate by their repairers and have an opportunity to compete on equal footing – putting their best price forward. Since it is widely accepted that open competition is at the heart of successful marketplaces, we aim to help by providing repairers with a more competitive and comprehensive parts marketplace,” the letter continued. Added Avery, “We thought it was imperative to reach out to all our Select Service shops, even though they aren’t in the test or pilot. They are obviously hearing a lot.” As the PartsTrader pilot continues in its four test markets, Avery reported that the four-week “feedback phase” phase started June 4 and comprises of State Farm representatives who will follow up with each repairer on the program to gather their feedback. The next phase will be the “evaluation phase” and the length of that stage will be determined by the amount and type of feedback State Farm receives from those shops testing the PartsTrader software application. Avery explained there will be “two portions” to the evaluation stage, how the process itself is working and recommendations on software changes.

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 51

Arizona and California Schools Preparing for Collision Repair’s Future by David M. Brown

Two schools in Arizona and California are prepping the future of the industry. In Mesa, AZ., the collision repair program at The East Valley Institute of Technology is the state’s only high school-level coursework certified by the National Automotive Technicians Education Foundation, the independent non-profit based in Leesburg, VA. Since 1983, secondary and post-secondary automotive-training programs in 50 states have been accredited through NATEF standards. And, in Sacramento, the Universal Technical Institute campus offers its Collision Repair & Refinish Technology (CRRT) program, preparing students as collision repair and refinish technicians. Arizona’s first joint technological education district, EVIT, offers occupation training for high school students at 10 school districts in the expanding Phoenix East Valley. The main 65-acre main EVIT campus is at 1601 W. Main Street, and the extended campus, 6625 S. Power Road. The school’s areas of certification include non-structural analysis/damage repair and painting and refinishing. Students in the two-year program develop auto body repair and refinishing skills, learning to perform jobs from detailing to assisting with painting in a contemporary paint booth. The main campus facility includes two frame racks, two downdraft bake spray booths and two downdraft prep stations. The two-year program, with six elective credits toward graduation, teaches students collision and customizing skills, using I-CAR guidelines. The course started in the early 1970s when it was offered at Mesa VoTech, and for more than 20 years EVIT has offered it to aspiring technicians. “The format of their curriculum is exactly like the curriculum used by ICAR to certify technicians already in the industry,” says Instructor Neil Carroll, custom paint instructor and an EVIT teacher for 10 years. “Students learn the basics with emphatic hands-on lab practice.” Formed by the collision industry in 1979, the not-forprofit Inter-Industry Conference on Auto Collision Repair focuses on helping the industry achieve a high level of technical training.

NATEF requires many items, such as a facility and equipment and that teachers must be ASE certified, he

manager, who notes the appreciation as well of Ed Baker, the dealership’s service director. “The industry is in

Collision Repair & Refinish Technology at UTI. Image courtesy UTI

says, noting his Master’s Technician certification through Automotive Service Excellence as well as Automotive Youth Education Systems certification (AYES). For the current school year, Carroll is guiding 71 high school students, divided between morning and afternoon sessions. In addition, an adult collision-repair program in the evenings, through the School of Adult Education, is administered by a different instructor. In Arizona, students compete in the SkillsUSA competition where EVIT wins the majority of the medals annually, Carroll says. Five EVIT students this year competed against 49 students statewide and won gold, silver, top estimator and other awards. Last year, a female student won bronze—the first female medal winner in state competition—and this year a female student won fourth, missing bronze by only 16 points. In 1995, a student won silver and, about four years ago, another student took bronze at National SkillsUSA. In addition, last year 11 students participated in internships, and there are currently 12 on internships this year, nearly double the national average, Carroll says. One of the oldest Ford dealerships in Arizona, Berge Ford in Mesa, employs a number of EVIT students and has been impressed. “They have found a great starting point here,” says Steve Roger, Collision Repair Center

52 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

great need of qualified entry-level personnel.” The Sacramento campus of Universal Technical Institute, founded in Phoenix in 1965, offers a Collision Repair & Refinish Technology Pro-

gram, accredited by NATEF, ACCSC (the Accrediting Commission of Career Schools and Colleges), the State of California Bureau of Private Postsecondary Education and the U.S. Department of Education. The Houston campus of UTI, which opened in 1983, also offers the program. Nationwide, nine UTI locations provide automotive-education courses, and two motorcycle and/or marine technology. “Our program is designed to serve industry need,” says Don Black, education director for the Sacramento campus. “We partner with industry and I-CAR regarding our curriculum, facility, education delivery, training aids and lab activities to ensure that we are providing the most relevant technical training that will allow our students the greatest opportunity for success in the collision-repair industry.” He adds,”It is this focus on industry and partnership with industry that makes Universal Technical Institute the best choice for technical training and how we distinguish ourselves from our competitors.”

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Guided by 11 instructors, the 51week CRRT program guides the students on how to repair and refinish structural and non-structural damage as well as how to prepare cost estimates on all phases of repair and refinishing. Students also learn to repair mechanical and electrical damage. As a result of completing the program, graduates can achieve certifications in DuPont refinishing, 3M plastics repair and Chief Automotive measuring and straightening systems, Black explains. Based on the industry standard, ICAR Live, the course includes five modules of collision repair and refinish training: Nonstructural Repair; Structural Repair; Refinishing; Mechanical & Electrical Repair; and Auto Customizing. Graduates will be Platinum I-CAR certified, preparing them for entry-level collision repair or refinish technician for a dealership, an independent body shop or a fleet repair facility. Success has been continuing since the program started at UTI Sacramento in 2005. One recent example has been with Cooks Collision, a large regional CRRT employer with 20 locations in California. The company had been struggling to find estimators

for the last two years, and UTI thought there might be an opportunity to partner with the business, Black says. “During follow-up meetings with Cooks, UTI learned more about their needs and we were able to connect those needs with the value UTI provided, resulting in a win/win partnership,” he explains. Cooks would create a one-month paid training program on estimating to build on the foundation of the UTI training.

candidates, they hired six, and all but one of them was able to advance through the training program.” That group comprises Justin Abner, William Bakke, Colton Dorman, Carlos Solórzano, and Dylan Burtis, who started working with Cooks Collision in February as junior estimators. They recently returned to UTI to share their experiences and challenge students, telling them to focus on all courses, including estimating, as they didn’t know they would become estimators when starting the UTI program, Black says. “Our estimating training from UTI was a great foundation to build on during our training with Cooks and we wished we would have focused on it more,’ they said,” he reports, adding that UTI Megan Peterson is a student at EVIT taking advantage of will soon be choosing the two new paint mixing systems along with a computer, software, label printer, paint books, tech manuals and a next set of UTI graduates to mixing scale from Leading Edge Auto Refinishes and be interviewed for an opporRiverview Collision in Mesa tunity with Cooks Collision. UTI first identified seven candiAnother recent UTI success is dates. “Our hope was to identify four Colton Hart, who graduated from the hires for the program,” Black says, school in September 2011, accepted a “but after interviewing our seven UTI job a month later working with Sunny tC 2011

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Ford Ships New Escapes, Some Have Hail Damage

Ford began shipping the new Escape to dealers several weeks ago even as hail damaged thousands of units near a Louisville assembly plant. The Louisville Courier-Journal reported that 3,500 Escapes were damaged by hail during an April 28 storm, while awaiting shipment last month at Ford Motor Co.'s Louisville, Ky., assembly plant, but the incident won't delay the launch of the all-new crossover. Ford spokesman Todd Nissen said the company is inspecting the plant's shipment lot to assess damage. He said affected SUVs will not be sold to new-car buyers. “We haven't determined what we will do with them yet, but they will not be shipped to dealers as new," Nissen said. “We'll be able to recover, over time, our production volume as we go through the launch of the vehicle and as the plant continues to ramp up," Nissen said. This year through May 26, Ford has built 11,000 new Escapes. The company spent $600 million to retool the Louisville plant, shifting production of the Escape from the company’s Kansas City, Mo., factory. The move created about 1,800 jobs.

Stotler in Kalispell, MT., doing custom auto body and refinish repair work. He started out at $15, received a raise in February and then switched to a flat-rate commission of 40 percent of the total job profit. Quickly, he was promoted to Refinish and Restoration Tech/Airbrush Artist for the two-man shop. “He now does all the paint and airbrush work and is continually taking on more of refinishing process,” Black reports. “Sunny reports that they have business lined up for the next two years and the community has become a fan of Colton’s airbrush work, with specific requests for his designs and skills.” Black said, “Colton is doing his dream job and is excited to keep learning and developing under the direction of a veteran in the industry, and UTI is very proud of Colton’s accomplishments and that he is pursuing his dreams.”

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PARTS Patent Bill Gets Three Additional Sponsors

Three more members of Congress have signed on as co-sponsors of federal legislation (HR 3889) that would reduce the time automakers can use design patents to prevent other companies from producing replacement crash parts. Reps. Bill Cassidy (RLA), Walter Jones (R-NC) and Dennis Ross (R-FL) are now supporting the bill, backed by insurers and nonOEM parts manufacturers and distributors, that would reduce patent protection for OEM parts from 14 years to just 2.5 years. Supporting the bill are numerous aftermarket organizations, including the Quality Parts Coalition who issued a statement saying, in part: “American drivers currently have access to alternative auto replacement parts that can save them between 26–50% when repairing their cars after an accident. But car companies are trying to force consumers to buy their parts only and eliminate the competition. Car companies have been acquiring U.S. design patents on exterior auto repair parts—such as hoods, bumper covers and mirrors—and enforcing them against independent suppliers who have been selling these more affordable and quality alternative parts for more than 60 years.”

www.autobodynews.com | JULY 2012 AUTOBODY NEWS 53

On Creative Marketing

Tom Franklin has been a shop 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

Maximizing Referrals to Your Shop with Thomas Franklin

During the past 15 years or so, I’ve source knows that referring a job to a noticed that many body shops spend shop that does a bad repair will reflect a great deal of time and money pro- badly on him or her and may lose that moting to referral sources that never customer or client. So great caution is send a single job. There is some exercised in making referrals. On the logic to continually dripping on other hand, I’ve spoken with agents prospects in the hope that at least a who said they had gotten a glowing few of them will send a job or two report from a customer who had been one day. And if the promotion going referred to a shop and found that rewith Dick Strom out isn’t too costly, it can’t hurt. ferral formed an even closer bond But what if more effort were ap- with the customer. In a case like this, plied to reinforcing those sources that referrals can be an excellent way to actually do refer jobs? In a busy marsolidify or build business. ket, I know of a shop that promotes to This should be a clear message 200 insurance agents a month. Less to a shop owner or manager seeking than 10% of those agents ever refer to build referral business. Getting the work to the shop, and even fewer ac- referral source to come to the shop to tually send work on a regular basis. see it in action, or better yet to bring This particular shop also has a DRP his or her own vehicle in for repairs with an insurance company that has will greatly improve the chances of regular agent meetings and has made getting referral business. Depending Lee Amaradio the conference with room and area avail- onJr. the financial capability of the able for agent and manager meetings shop, it could even be worthwhile to fairly frequently. This has resulted in offer to do a free repair to a potensignificantly more referrals by agents tially high volume referral source. who attend meetings at the shop. In Much depends on a shop carechecking with other shops that market fully identifying who has referred a to agents, I found this was a common job. When a real referral source has occurrence. Once an agent either came been identified, it’s time to reinforce to a shop, brought his or her vehicle to that willingness to refer in every way the shop for repairs, or had a customer possible. Many shops send thank you use that shop with a good result, the notes or offer a free car wash as a agent then did actually refer business thank you. Others offer small gifts with Sheila Loftuslike theater tickets, dinner for two at to the shop. A physician’s Hippocratic oath a nice restaurant, or a voucher for use says, “First do no harm.” Someone at a beauty parlor, local gym or barcontemplating a referral to a shop will bershop. Some agents aren’t allowed have a similar concern: “First, avoid to receive gifts, so a more subtle form any harm.” An agent or other referral of appreciation is in order. Like the

Opinions Count

Action Counts

shop, agents, car dealers and other referral sources are also looking to build their business. Posting their card or flyers at the shop would be a minimal thing to do, but hosting a promotional event at the shop could be appropriate for someone who frequently referred business. Some events can be a win-win for both the shop and an agent or dealership promotional person. A safe driving event for teenagers can bring in parents with insurable and repairable vehicles. In a previous article I wrote about a car care clinic for a woman’s professional network group. Promoting a good referral source as a sponsor and co-presenter for such an event would be an especially effective way to reinforce that source of referrals. Happy customer referrals can also be enhanced with recognition. One shop tracked the number of jobs per month and year and awarded a

prize to the 10,000th customer. A shop might also create a “Customer Appreciation Day” once a month, and invite all customers who had referred jobs to come in for a fancy lunch and also perhaps a car wash. Unique souvenirs could also be awarded, like a coffee mug or special hat or T-shirt with the shop’s logo. The key element with individuals who refer business is to create a sense of family and belonging. And when one of these referring customers comes back for repairs on his or her vehicle, the shop might award a surprise rebate. It all comes down to recognizing who actually sends work. Radio, TV and publication ads reach out to the general public. Flyers, mailers, emails and more, target potential (but not yet real) referral sources. But there’s nothing like reinforcing and rewarding those who send the real jobs and provide the funds for reaching out to grow even more.

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Getting Paid

newest evolution our industry undertakes must include improvement to the estimation process and improved unwww.autobodynews.com derstanding between the shops and the IT OUT! adjuster ofCHECK what refinishing procedures entail.

ble they’re unaware of what these procedures actually entail, and at the very least it’ll put youwith on theirJanet radar and get Chaney them thinking about it. Imagine if they hear it from body shops all over the country all the time? They wouldn’t be able to ignore it or play ignorant. Never To advertise again accept the alternatives of costcall Advertising Sales at: shifting, padding other repair times, or 800-699-8251 believing the promises of the adjusters to “make it up to you next time.” Like e-mail: advertising@autobodynews.com all industries, ours will keep evolving, losing the traits that harmed us and www.autobodynews.com adding traits that are beneficial. The

Shop Showcase

Industry Overview with Janet Chaney

54 JULY 2012 AUTOBODY NEWS | www.autobodynews.com

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certification requirements. then complete its training plan during ● Combination technicians will be the same calendar year (no later than treated as both body and paint techniDecember 31st). Adjustments to traincians. ing plans may occur during the calenrepair volume (in dollars) as a percent ● Training completed by non-producdar year due to newly introduced of its total repair volume. This same tive or support staff will not count totraining programs and/or changes to formula will also be taken into account wards certification requirements. the CCRC’s technician count. Newly for body shop estimators. Technician training course recertified centers will receive a training Exceptions: quirements are based on CORA job tiplan at the on-site certification visit ► SB011 GRAV Aluminum Repair: A tles, which will be used to determine that will be pro-rated based on their minimum of 2 technicians per CCRC training requirements. It is imperative, certification date. A center’s progress but at least 50% of body technicians then, that management lists the correct towards completing their training plan based on repair volume; CORA job titles for associates and that is monitored regularly. ► SB012 Level 3 Body Repair: A Interactive Career Pathways (ICP)/ minimum of 2 technicians per CCRC Dealer Enrollment Management Sys2011 BMW CCRC Program Tool, Equipbut at least 50% of body technicians tem (DEMS) is updated on a regular ment, and Materials Requirements based on repair volume; basis. Please consult with your ReInformation Technology Requirements ► SB018 Glass Repair and Replacegional Aftersales Development ManHigh speed internet service ment: A minimum of 1 technician per ager (RADM) for more guidance. CenterNet access CCRC regardless of repair volume. Improperly classifying techni- ICP administrative access cians can severely impact a CCRC’s ISIS/ISTA access on all terminals ● Only those courses completed by astraining requirements. It also affects Separate computer terminal(s) for sociates or technicians who are reguan associate’s ability to log into Cen- ISIS/ISTA access with printer located larly involved as part of their job terNet and DCSnet to research and in or convenient to technicians that description with physically performing obtain the most current repair inforwork in the metal shop body and paint repairs to BMW vehimation. It is in the CCRC’s best in- Computerized estimating system cles will count towards meeting the terest to regularly review and update Frame/Unibody Alignment and Diskill level requirements its ICP/RUA staff roster and make mensioning System ● Technical training courses comsure that associates have appropriate Any one of the following systems: your opinion affecting the industry. pleted by managers, production coor- Give accessus to the BMW website.on mattersCar Bench with dedicated or universal dinators, advisors, or other support The CCRC’s training plan will be fixtures staff members will not count towards developed each year. A CCRC must Car-O-Liner bench with Car-Owww.autobodynews.com Tronic/Vision electronic measuring publisher@autobodynews.com CHECK IT OUT! system with either EVO 1,2,3 or CarAUTOBODY MARKETPLACE O-Flex universal fixture system, B66 or B76-77 side supports Celette bench with dedicated fixtures or NAJA electronic measuring system along with positioning tool NA.1000 Welding and Riveting Equipment To advertise To advertise The source for timely Any one of the following Compression call Advertising Sales at: call Joe Momber at: Resistance Spot Welders: information that every 800-699-8251 800-699-8251 Car-O-Liner CR600 body shop needs! Celette MIDIspote-mail: QSVM 9000 e-mail: Search: advertising@autobodynews.com jmomber@autobodynews.com Elektron MI100 Control CALL 800-699-8251 MIDIspot QSVM 1200 T www.autobodynews.com www.autobodynews.com Continued from Page 49

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Paint Shop Requirements Refinish Materials New CCRCs agree to purchase and use ColorSystem products for all repairs and refinish work performed on BMW Group vehicles at its collision repair location. As a reminder, any CCRC enrolled in the CCRC Program before October 10, 2007 has the opportunity to utilize Glasurit, Spies Hecker, or Standox in lieu of ColorSystem until their pre-existing paint contracts dated before October 10, 2007 expire. Once qualifying pre-existing paint contracts have expired, conversion to ColorSystem must then occur to remain a part of the CCRC Program.

Spray Booth Down draft spray booth and ovento must Want to Contribute this have the following minimum specifications: ● 14,000 CFM (or higher) air flow capublisher@autobod pacity ● 750,000 BTU (or higher) heating source Interior lighting system: 1200 LUX Promote your business with output, color corrected, with a Color an Rendering exclusive article featurin Index of atyour least products 96 CRI or services. ● Three-stage air filtration system ● Air accelerators recommended for water-borne applications ●Refrigerant, desiccant, or membrane CALL: Joe unit Momber for details air filtration/drying The CCRC is responsible for en800-699-8251 suring that government regulations Wire Feed Welder: and restrictions are always followed in Approved MIG / GMAW welder regards to paint application, storage Other Welding Equipment: Oxy-acetyand disposal. Please refer to your local lene torch Register Your EmailEPA OSHA guidelines. for and Our Riveting and Bonding Equipment TKR Punch Riveting Tool Thanks to Kenny Tran, BMW of NorthFr Aluminum Repair Equipment America, LLC, Body & Paint Techniatwelder www.autobodynews.com Aluminum stud (Wielander & cal Business Assistant and to Kevin Schill Stud Welder BSP03) Miller, BMW Concord Collision CenPowerbird stud/punch rivet extractor ter Manager for information herein. (PN 81430301745) Pyrosil flame coating kit (PN 81430301740) Autobody News is Dedicated aluminum hand tools conpleased to announce our sisting of body files, body hammers, body dollies, abrasive tools, and basic hand tools which are to be stored in will publish in September! their own, separate tool storage box.

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Curtain walls to separate aluminum work stalls, either portable or fixed with a minimum height of 8’. Hand or special tools (such as files, hammers, dollies, cutters, grinders, spoons, etc.) in sufficient quantities to properly repair vehicles dedicated to aluminum repair only must be marked as such.

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