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Aftermarket Parts Sellers Hear from Congressional Candidate With Ties To The Industry by John Yoswick

PartsTrader proposed state limits on use of non-OEM parts, and challenging the automakers’ patent designs on crash parts were all being discussed when non-OEM parts manufacturers and distributors met recently in Austin, Texas. The Automotive Body Parts Association (ABPA) allowed only members in the room during discussion at its convention of the association’s pending lawsuit challenging the validity of six of Ford’s design patents on collision repair parts. But proposed

federal legislation that would reduce how long automakers can use design patents to prevent other companies from producing replacement crash parts was among the topics discussed at the event by Louisiana tax Cassie Felder lawyer Cassie Felder, who is running for Congress. Felder, a Republican who believes in tax reform and repealing the Affordable Care Act, told attenSee Aftermarket Parts Sellers, Page 12

Philadelphia Shop Accused of Staging Car Accidents as ‘Fictitious Deer Crashes’, Vandalizing Own Repairs

jury. Also charged were his wife, Vicki, 59, and their son Ron Jr., 37, who since 2000 has been the legal owner of his father’s American Collision & Auto Center at 1930 S. 20th St. According to District Attorney Seth Williams, Galati encouraged customers to file insurance claims saying they struck a deer instead of a car so insurance companies would consider them “no fault” accidents and pay the claims without raising the customers’ premiums. Galati favored creating single-vehicle accidents because insurance companies would consider them “noSee Staged Deer Crashes, Page 9

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Ronald Galati Sr. is one of 41 people in Philadelphia indicted by a grand jury in an elaborate insurance fraud scheme that used deer carcasses to stage auto accidents, according to reports at Philly.com. Galati is accused of running the $5 million scam out of his auto body shop in Philadelphia where he stored deer carcasses, blood, and fur in the back of his shop to use as props to stage the accidents. Galati was in the business, according to a grand jury, of “fictitious deer accidents.” Galati, 63, was one of 41 people charged in the fraud after a 16-month investigation by a Philadelphia grand

VOL. 4 ISSUE 4 JULY 2014

Massachusetts ADALB Issues Positive Advisory Ruling on Use of Digital Images in Appraisals Autobody News previously reported on the controversial use of digital images in appraisals in Connecticut (ABAC Legal Counselor Objects to Use of Camera Phone Photos for Estimates in June 2014 issue.) The concerns have also caught the attention of Massachusetts’ Commonwealth’s Auto Damage Appraiser Licensing Board (ADALB) which made an advisory ruling on May 20th stating that using “quality video or digital images” to prepare an appraisal satisfies its regulations. The Massachusetts ADALB approved Advisory Ruling 2014-01 by majority vote at a board meeting. It seeks to clarify the use video or digital imaging technology to settle claims. The adopted ruling states: The Auto Damage Appraiser Licensing

Board has passed a motion agreeing that an appraisal conducted by a licensed appraiser via review of quality video or digital images with documentation meets the requirements of 212 CMR 2.04(1)(d) “The appraiser shall personally inspect the damaged motor vehicle and shall rely primarily on that personal inspection in making that appraisal....” “This Advisory Ruling shall be effective upon posting on the Auto Damage Appraiser Licensing Boardpublic website. Failure to comply with this ruling could result in fines and penalties as provided for by law. The practice comes about when insurance companies allow their customers to file claims via a smart phone application. In March, for ex-

By Rhode Island standards, this year’s entry in the automobile insurers versus repair shops category is a minimalist one. Nonetheless, a series of bills in ongoing tug-of-war between the auto body and insurance industries in Rhode Island are ongoing and were heard by the Rhode Island Senate Committee on Judiciary June 5. The bills are co-sponsored by North Providence Sen. Dominick Ruggerio, majority leader from District 4. Corresponding bills from North Providence Rep. Arthur Corvese have also been referred to committee in the House. The following are some of the bills up for consideration: ● S2833 prohibits insurance companies from mandating use of used or remanufactured airbags or suspension parts. It would prohibit insurance companies from requiring the use of used or remanufactured airbags and/or suspension parts when vehicle repairs

are made by an auto body shop. ● S2834 establishes a two-tiered licensing system for body shops. It creates two distinct license classifications and labor rate surveys for auto body repair shop facilities, basically meaning different pay for different shops. ● S2835 extends regulations on aftermarket auto body replacement parts to any automobile replacement part. It amends the definition of the term “aftermarket part” to refer to all motor vehicle replacement parts. ● Another would eliminate the process that allows filings by casualty insurers seeking rate increases or decreases of not more than 5 percent to become effective when filed, essentially taking away the ability of insurers to increase rates without a hearing, according to Jina Petrarca-Karampetsos, spokeswoman for the Auto Body Association of Rhode Island (ABARI) and daughter of Providence

See Photos in Appraisals, Page 14

Rhode Island Bills Under Consideration Affect Airbags, Two-tiered Body Shops, Aftermarket Parts

See RI Body Shop Bills, Page 18

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

2 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

Contents Albany-based H&V Collision to Add

Fifth Location . . . . . . . . . . . . . . . . . . . . . . . 18

Bronx Body Shop Catches ATV Thefts on Camera . 6

Deer Park, NY, Shop Owner Accused of Tax Fraud . 6

Crashes Cost Almost $1T in Costs,

Loss of Life, Pain . . . . . . . . . . . . . . . . . . . . 53

Fix Auto Acquires Alaska Shops. . . . . . . . . . . . 47 I-CAR Gold Class and ASE-Certified Shops

Rewarded at NACE | CARS . . . . . . . . . . . . . 46

Fire Above Body Shop on Route 31 in

I-CAR® Adds New OEM Segment Development

Massachusetts ADALB Issues Positive Advisory

I-CAR® And National Auto Body Council

Ruling on Use of Digital Images in Appraisals . 1

Philadelphia Shop Accused of Staging Car Accidents as ‘Fictitious Deer Crashes’,

Vandalizing Own Repairs . . . . . . . . . . . . . . . 1

Director, John Bosin . . . . . . . . . . . . . . . . . . 49 Partner on Membership Discount, 30% Off

Until End of 2014 . . . . . . . . . . . . . . . . . . . . 50

I-Car® Conference on Future of Collision Repair

and Automotive Industry, July 30 In Detroit . 54

Prospect, CT, Body Shop Owner Arrested After

Interactive Advanced Steering and Suspension

Rhode Island Bills Under Consideration Affect

Job Corps Orientation Set For Oswego, NY,

Accident Takes Down Route 68 Power Lines. . 22 Airbags, Two-tiered Body Shops, Aftermarket

Parts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Sisk - AASP-MA's May Statewide Meeting

Features Industry Attorney Erica Eversman . . 4

Sisk - AASP-NJ’s 10th Annual Lou Scoras

Memorial Golf Outing. . . . . . . . . . . . . . . . . . . 8

Sisk - ABAC Holds Annual Officer Elections, Welcomes Larry Montanez Back to

Continue Training. . . . . . . . . . . . . . . . . . . . . 22

Systems Damage Analysis Course . . . . . . . 49 on June 20 . . . . . . . . . . . . . . . . . . . . . . . . . 25

John Borek Takes Aggressive Action,

Files Trespassing Complaints Against

Argumentative Appraisers . . . . . . . . . . . . . . 17

Letter to the Editor - Why Should Insurers Get Free Estimates When They’re Not

Using Adjusters. . . . . . . . . . . . . . . . . . . . . . . 3

MERA Joins the Excitement at

NACE | CARS 2014 . . . . . . . . . . . . . . . . . . 46

Sisk - LIABRA and Auto Body Craftsmen’s

MO Shop Porter Steals Car, Joyrides Off-Road,

Stamford, CT, Body Shop Buys South End Shop

NACE 2014: In its 32nd Year, It’s Still a

Wolcott, CT, Shop Operated Without License,

New Study Says More Than 75% of All Pickup

Guild Holds First Joint Meeting. . . . . . . . . . . 10 Location for $1.6M to Expand Business. . . . 10 Obtains One, But Still Rankles Local

Competitors . . . . . . . . . . . . . . . . . . . . . . . . 14

Posts His Fun . . . . . . . . . . . . . . . . . . . . . . . 45 World Collision Repair Event . . . . . . . . . . . . 40 Trucks will be Aluminum-Bodied by 2025 . . 54

Niebling Auto Body: 120 Years and Still

Going Strong in Missouri . . . . . . . . . . . . . . . 44

COLUMNISTS

Nissan and Assured Performance Partner for

Franklin - Ding Day–A Marketing Tactic . . . . . . 30

NSF International’s Bob Frayer Earns Prestigious

Attanasio - How to Market to Millennials . . . . . 24 Luehr - Using an Outside Expert to Improve

your Competitive Position . . . . . . . . . . . . . . 20

Yoswick - Highway to Hell, Blueprinting, Rekeying

Estimates, State Farm and OEConnection. . . 34

NATIONAL

Certification and Consumer Referrals. . . . . . 32

ASQ Quality Leader Award. . . . . . . . . . . . . . 52

OH’s Three-C Body Shops Has Filed Over 100 Lawsuits Against State Farm

Alleging Systematic Shortpays . . . . . . . . . . 36

PartsTrader Integrates Hollander

Interchange Codes . . . . . . . . . . . . . . . . . . . 52

Aftermarket Parts Sellers Hear from Congressional

SCRS Open Board Meeting on July 28th

AMI to Honor New Managers. . . . . . . . . . . . . . 47

Service King Collision Repair Centers Finalizes

Candidate With Ties To The Industry . . . . . . . 1

ASA-CO to Host Pinnacol Safety Meeting

in Detroit . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Sterling Collision Centers Acquisition . . . . . . 26

July 9 in Denver . . . . . . . . . . . . . . . . . . . . . 50

Sisk - ASA-Midwest—Take Me Out to

is Minnesota’s Shop Champion . . . . . . . . . . 38

Sisk - ASA-NW’s Automotive Training Expo 2014 . 32

Attorney and AASP-MN Lobbyist Kevin Walli

the Ballgame! . . . . . . . . . . . . . . . . . . . . . . . 51

AudaExplore Pledges $150K to SkillsUSA

Sisk - LaCIA Hosted Louisiana Attorney General

Caliber Acquires MSOs in Los Angeles and

Sisk - New Auto Body Association of Texas

in Tool Grants . . . . . . . . . . . . . . . . . . . . . . 53

North Carolina. . . . . . . . . . . . . . . . . . . . . . . 46

Calif. Advocates Say Job Training, Including

Collision Repair, Provides Path from Prison . . 26

CARS This Year Is All New, ASA Promises

It Will Be The Best Show Ever . . . . . . . . . . . 50

CARSTAR Sees Record Revenue in 2013, Plans

Expansion of HQ in Leawood, KS. . . . . . . . . 31

CCAR and ShipMate Launch Improved

HazmatU website . . . . . . . . . . . . . . . . . . . . 31

Chrysler Airbag Recall Being Probed by

Regulators. . . . . . . . . . . . . . . . . . . . . . . . . . 52

at May 22 Meeting. . . . . . . . . . . . . . . . . . . . 48

Launches June 18, PartsTrader Provides

Impetus, Statewide Members Invited to Join. . 42

VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to

Pre-Loss Condition . . . . . . . . . . . . . . . . . . . 16

Women’s Industry Network Celebrates Excellence In Leadership and the Formal Transition of the

‘Most Influential Women’ Program to WIN . . 47

Young Technician’s Program to Debut at CARS . 53

Wanted Fugitive Shot and Killed After SWAT

Standoff at West Haven, Utah, Shop . . . . . . 18

they want us to write the estimate and send up pictures for free! Why do they think my time is worth nothing? My partner and I share the office work and are out in the shop working all day. Our time is valuable. When we are in the office our production time suffers. The insurance companies tell me “Well, you write free estimates don’t you?” My answer is ‘yes, to a prospective customer that I don’t know, or my regular customers,’ but when I have a customer that drops his car off I know I have that job already. The person has picked my shop. Why is it the insurance company feels that I should prepare the estimate for them on my dime? They are saving money by not paying an adjuster, but I feel they should at least pay me some fee for my time and not take advantage of me. Small shops cannot take that kind of abuse and I think it’s taking an extreme advantage of shops and the proprietors. I would like your [readers’] thoughts on how we can combat this abuse. Thanks, Pete Gutierrez, Pete <1redcatz@comcast.net>

Letters to the Editor can be sent to editor@autobodynews.com. They may be edited for length and clarity. See Facebook/autobodynews to respond via comment. Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Indexof Advertisers

Washington Twp.. . . . . . . . . . . . . . . . . . . . . 45

I would like your opinion on something I’m seeing becoming a trend. I am seeing more and more insurance companies making the body shop do the original estimate and send up pictures. We will have one of our customers bring a car to our shop and they want US to do the work. They call their insurance company up and let them know the car is at our shop. Normally, they would send out a insurance adjuster to do the estimate because for years now if we did one it was not good enough for them. They would not want it. They would do their own and in turn we would go over it and make adjustments or add to it from there. They may argue and haggle if repair times were unacceptable. Now, Nugent online uploading of pictures and estimates is available. I’m finding more and more insurance companies telling us to go ahead and use Nugent, upload and send pictures. All of a sudden now our estimates are good enough for them ! Of course they are saving money by not sending out an adjuster! This is what I’m upset about. Before we weren’t good enough to write a estimates now

Acura of Westchester . . . . . . . . . . 36 Amato Agency. . . . . . . . . . . . . . . . 32 Audi Wholesale Parts Dealers. . . . 49 Automotive ID . . . . . . . . . . . . . . . . 16 Axalta Coating Systems . . . . . . . . . 5 B & R Associates. . . . . . . . . . . . . . 35 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . 21 BMW Wholesale Parts Dealers . . . 47 Central Avenue Chrysler-JeepDodge-Ram . . . . . . . . . . . . . . . . . 8 Certified Automotive Parts Association (CAPA) . . . . . . . . . . 15 Chief Automotive. . . . . . . . . . . 24, 25 Classifieds . . . . . . . . . . . . . . . . . . . 54 Clay Auto Group . . . . . . . . . . . . . . 11 Colours, Inc . . . . . . . . . . . . . . . . . . 30 Ditschman/Flemington Auto Group. 55 Empire Auto Parts . . . . . . . . . . . . . 24 Fairfield Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . 12 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . 39 Ford Wholesale Parts Dealers. . . . 51 Fred Beans Parts. . . . . . . . . . . . . . 56 Future Cure . . . . . . . . . . . . . . . . . . 38 Glanzmann Subaru . . . . . . . . . . . . 43 GM Wholesale Parts Dealers . . . . 48 Hackettstown Honda. . . . . . . . . . . 14 Herkules Equipment Corporation . . 9 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers. 45 Jaguar Wholesale Parts Dealers. . 53

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Connecticut, Rhode Island, Massachusetts and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL

Letter to the Editor: Why Should Insurers Get Free Estimates When They’re Not Using Adjusters

Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 37 Koeppel VW-Mazda. . . . . . . . . . . . 31 Lexus Wholesale Parts Dealers. . . 53 Malco. . . . . . . . . . . . . . . . . . . . . . . 13 Martech Services Company . . . . . 22 Maxon Hyundai . . . . . . . . . . . . . . . 20 Maxon Mazda . . . . . . . . . . . . . . . . 34 Mazda Wholesale Parts Dealers . . 44 MINI Wholesale Parts Dealers. . . . 46 Minute Man Wheel Lifts. . . . . . . . . 18 MOPAR Wholesale Parts Dealers . 33 NACE/CARS Expo & Conference . 27 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 50 PDR Nation . . . . . . . . . . . . . . . . . . . 6 Porsche Wholesale Parts Dealers . 51 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . 10 Rare Parts, Inc. . . . . . . . . . . . . . . . . 4 Safety Regulation Strategies. . . . . 13 SATA Spray Equipment . . . . . . . . 17 Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 7 Subaru Wholesale Parts Dealers . 41 Sussman Auto Group . . . . . . . . . . 42 Thompson Organization . . . . . . . . 23 Toyota Wholesale Parts Dealers . . 52 Valspar Automotive . . . . . . . . . . . . . 2 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 49 Volvo Wholesale Parts Dealers . . . 40 Wagner Auto Group . . . . . . . . . . . 19 Yonkers Kia . . . . . . . . . . . . . . . . . . 26

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Northeast Associations

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

AASP-MA’s May Statewide Meeting Featured Industry Attorney Erica Eversman with Chasidy Rae Sisk

AASP-MA held their Statewide Meeting at the Doubletree Hotel in Westborough, MA, on May 13. The event featured noted industry attorney Erica Eversman, Chief Counsel for Vehicle Information Services, Inc. and founder of the Automotive Education and Policy Institute, a non-profit organization geared toward educating consumers. Jillian Zywien, Executive Director of AASP-MA, says “this was one of our most well attended meetings with over 80 participants. I am thrilled we were able to secure Ms. Eversman to speak in Massachusetts. This is the first time she has spoken to AASP-MA specifically, and it was an invaluable opportunity for our shops to learn from a nationally renowned expert in the field. Our members learned a great deal from Ms. Eversman, so much so that we are planning to bring her back to MA for a more concentrated program.” In consideration of feedback from members, AASP-MA’s fall meeting

will feature an aluminum repair program with a panel of experts on the subject. The association encourages members to submit such ideas for their meeting because, according to Zywien, “we are here to serve you.” AASP-MA held their Annual Golf Outing, sponsored by Enterprise Rent-A-Car, on June 12 at the Charter Oak Country Club in Hudson, MA, praised as one of the finest courses in the state. This year’s event was sold out for the first time in the association’s history; however, openings Erica Eversman, are still available file photo for the luncheon, and Zywien encourages even nongolfers to “please consider joining us at this beautiful venue.” For the 2014 Golf Outing, AASPMA added a number of additional gifts

Great Neck, NY, Shop Owner Makes Full Restitution for his Tax Liability, Repays Over $320,000 to State A Great Neck shop owner who in January pleaded guilty to not paying state taxes for three years has made payment in full for what he owed, according to Nassau County District Attorney Kathleen Rice. Joseph Caraccia and two companies he owned—Auto Bodyworks of 275 East Shore Road and Auto Body Works II of 300 East Shore Road—paid $167,500 to the state Department of Taxation and Finance after receiving a conditional discharge by Nassau County Supreme Court Judge Martin Massell. Caraccia, a 65-year-old a resident of Queens, had paid another $167,500 in January after he pleaded guilty to petit larceny and his two companies pleaded guilty to second-degree grand larceny. “By failing to pay his fair share of taxes, this defendant withheld money that could have been used to pay our first responders, to repair roadways, and to maintain our parks,” Rice said. “With this sentence, the money he owes taxpayers will finally be going to fund the vital services that all of us depend upon.” Marvin Hirsch, Caraccia’s attorney, said the failure to pay taxes by Caraccia and his two companies arose

from “some bookkeeping problems.” “Mr. Caraccia has been a longstanding businessman in Nassau County and Queens,” Hirsch said. “He’s made full restitution.” The district attorney’s office learned about Caraccia’s tax evasion from a tip to their office. The Nassau Criminal Investigations Division of the state Department of Taxation and Finance investigated the tip and found differences between taxes that were paid by insurance carriers to the automobile repair shops and the amount of taxes the two shops paid the state, Rice said. Investigators searched Caraccia’s offices and obtained financial information regarding the businesses that led to Caraccia’s arrest on Oct. 24, 2012. Investigators determined Caraccia failed to pay $335,000 between the years of 2009 and 2012. Caraccia’s autoshops were charged with seconddegree grand larceny on Dec. 18, 2013. Thomas Mattox, commissioner of the state Department of Taxation and finance, praised Rice. “I commend District Attorney Rice and her team for prosecuting the defendants,” Mattox said.

4 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

for golfers and vendors. Zywien noted, “in addition to golf, green fees, cart fees, a catered breakfast, and lunch, each player received a golf shirt, golf balls and tees. Thanks to Al Brodeur’s Auto Body, golfers also received a $10 voucher to redeem on Hole 9 for a complimentary cigar, cigar cutter and lighter. All new items will be a complement to our raffle prizes, competition hole prizes and hole-in-one prizes.” AASP-MA members are also excited for the association’s upcoming Casino Night, scheduled to be held on November 15 at the Putnam Club at Gillette Stadium. The association has secured a room block at the Renaissance Boston/Patriots Place Hotel and Spa for members wishing to spend the night after the event, but Zywien urges interested parties to register as soon as possible as there are limited spots available for the stadium tour and event.

Zywien believes that the association’s educational and social events are important because “they act as a forum for members to share ideas and concerns. By hosting a variety of events, the association can create a strong networking community that facilitates relationships that are beneficial to our member shops. The association works hard with our leadership to develop these educational programs, and we are always looking for new programs that are of benefit to your business.”

AASP-MA www.aaspma.org

@autobodynews Accept no Substitutes!

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Bronx Body Shop Catches ATV Thefts on Camera

An auto body shop owner is asking for the public’s help in tracking down two suspects who stole three-wheel ATVs from his shop. The owner says this is the first time in decades he’s been robbed. A surveillance video shows two men breaking into Personal Touch Auto Body on Boston Road on Memorial Day and pushing two of the ATVs that were up for sale onto the street, and then coming back to return for the third one. “These two proceeded into the building and tried for 5-10 minutes to start these trikes that I have for sale,” said Mike Trinagel. The two thieves desperately tried to start the ATV’s. When that effort failed, they wheeled the two vehicles up Boston Road. However they got greedier. They actually came back after 3:00 in the morning and stole a third trike. They couldn’t get to a fourth one because it was blocked in between cars and a sign. The three ATV’s are worth about $6,000. Trinagel is offering a $2,000 reward for the return of the Trikes, and a $1,000 reward for information that leads to the arrest and conviction of the two men. See video at http://7online.com/ news/exclusive-atvs-stolenfrom-auto-body-shop/86032/

Deer Park, NY, Shop Owner Accused of Tax Fraud

The New York State Department of Taxation and Finance announced June 5 that the owner of an auto body shop in Deer Park, NY, has been charged with grand larceny for failing to pay the proper amount of sales tax. The defendant is Dean Marchese, 52, of 136 Barnman St., West Babylon. Marchese is the principal owner of Deer Park Auto Body Corporation (formerly Deer Park Collision, Inc.) at 93 West 1st Street. He was arrested on June 3 and charged with one count of Grand Larceny in the Fourth Degree. Marchese allegedly underreported $2,120,443 of the auto shop’s sales for the tax years 2009 through 2012. The Department charged that he owes the State $182,888 in sales tax on those sales. The defendant is scheduled for arraignment in Suffolk County First District Court on June 17. This case was investigated by the Tax Department’s Criminal Investigations Division and will be prosecuted by the Office of the Suffolk County District Attorney’s Office. As always, a criminal complaint is merely an accusation and the defendant is presumed innocent until proven guilty.

NY's ‘Faithless Servant’ Doctrine Is Alive And Well

Under New York law, the faithless servant doctrine permits an employer to recover compensation already paid to an employee where: ● the employee’s material and substantial misconduct violates the contract of service; or ● the employee has engaged in misconduct that constitutes a breach of the duty of loyalty or good faith. Two recent decisions—one from the US District Court for the Southern District of New York and one from New York’s trial court—highlight the application of the faithless servant doctrine, which can be a powerful weapon in the arsenal of an employer that discovers wrongdoing by a current or former employee.

Breach of duties causes forfeiture of vested options The plaintiff in Trimarco v Data Treasury Corp(3) sought to enforce a series of agreements granting him equity in the defendant, which he had served first as a consultant and later as an employee and its chief operating officer. The plaintiff sought a declaratory judgment enforcing an option to purchase 1.5 million shares of the stock of the defendant, an interest that his expert valued at $60 million. The

defendant asserted affirmative defences based on the plaintiff’s alleged breach of the covenant of good faith and fair dealing and breach of his fiduciary duties. The option was fully vested and the plaintiff was not required to remain employed by the defendant to retain that interest—indeed, the termination of his employment would have had no impact on the option. Given that the option was, by its terms, not subject to forfeiture, the plaintiff argued that any breach by him of the covenant of good faith and fair dealing or his fiduciary duties should not adversely affect his rights. The court rejected this argument, finding that “infidelity is a bar to a claim for enforcement of a contract”. The faithless servant doctrine is a powerful tool that may be used by employers that are the victims of wrongdoing by employees to recover compensation already paid and avoid payment of additional compensation that may otherwise be due. In addition to claims for damages arising out of misconduct by current or former employees, employers are advised to consider claims that they may have under the faithless servant doctrine.

6 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

Midland Park Auto Body Proposes Bldg Conversion

The Zoning Board of Adjustment heard testimony at the May 14 meeting on an application to convert the former Stafford Glass building at 168 Godwin Ave. into office space and a motor vehicle repair shop. The applicant, Warren Struz, has owned the adjoining Midland Park Auto Body at 172 Godwin Ave. for 34 years. He also owns a third property at 154 Godwin Ave containing a house that would create a horseshoe-shaped compound. Strutz is seeking site plan approval, a use variance and bulk variances for the 21,682-square-foot Stafford Glass property west of Vreeland Avenue in the B-1 zone. The zone permits motor vehicle service stations and offices but does not allow auto repair businesses. Struz said the application was not an expansion but a way to accommodate his current business. He said the 7,378-squarefoot Stafford Glass building would be used as a reception area and office space with the rear portion of the building used for automobile diagnostics. He said no painting or auto body work would be performed at the 168 Godwin Ave. site. “That work will continue in the [auto body] building,” he said.

Rhode Island Sen. and Rep. Disclose Shops’ Support

State Sen. Dominick Ruggerio and Rep. Arthur Corvese have been a frequent supporters of bills to support Rhode Island's auto body shops over the past decade, and their campaign finance reports show the industry is supporting them back. According to online campaign finance reports going back 12 years, Ruggerio has received a combined $12,600 from employees of Providence Auto Body and Petrarca & Petrarca Law, which are both owned by the Petrarca family. John Petrarca owns Providence Auto Body and his daughter, Jina PetrarcaKarampetsos, heads up Petrarca Law and is the spokeswoman for the Auto Body Association of Rhode Island. Corvese has received $3,500 from Providence Auto Body employees during that time, and another $1,500 from those associated with Petrarca Law. See cover story this issue for more on legislation sponsored by Ruggerio and Corvese at the assembly.

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Northeast Associations

AASP-NJ’s 10th Annual Lou Scoras Memorial Golf Outing with Chasidy Rae Sisk

On Monday, May 19, AASP-NJ held their 10th Annual Lou Scoras Memorial Golf Outing at the Colonia Country Club in Colonia, NJ. Charles Bryant, Executive Director for AASP-NJ, notes “the golf outing went even better than we expected. This is

AASP-NJ President Jeff McDowell joins association members for a fun day of socializing

especially true because in the days leading up to the outing, we had been getting intermittent rain storms and just gloomy weather. The golf outing started at 1PM and traditionally runs until about 5:30PM. From 1-5:30PM

on the dot, the weather was absolutely beautiful. At precisely 5:30PM, we heard a loud thunder and saw a blast of lightning, and immediately after, the golf carts began flying in like a wagon train. It almost seemed like the thunder and lightning was somehow held up until all of the players finished their 18 rounds of golf… the response to the outing seems to get better and better each year. This year was no exception. We had just under 100 players, and the sponsorship response was overwhelming.” Sponsorships for the event ranged from hole sponsors to bronze, silver, gold and platinum sponsors, and AASP-NJ received everything from golf balls to flat screen televisions in prize donations. Special lunch and dinner sponsors provided participants with meals and even a special cigar basket which contained a bottle of aged scotch. Nearly 40 companies sponsored holes for the event with an

8 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

additional 15 sponsors contributing prizes. Platinum sponsors included the Amato Agency, All American Auto Salvage, Hertz Rent-A-Car, Enterprise Rent-A-Car, and PPG. Prizes were awarded for lowest team score, longest drive, closest to the pin and hole-inone.

Numerous sponsors contributed to make AASP-NJ's golf outing a success

The AASP-NJ Golf Outing serves as a fundraiser with a portion of the proceeds going towards a special educational scholarship fund, but Bryant explains, “most importantly, it

is held in honor of one of our own, Mr. Lou Scoras, formerly of Holmdel Auto Body. It has been ten years since Lou passed away, yet it seems like yesterday because of the wonderful person that Lou was and because of the impact he had on the collision industry here in NJ. Lou Scoras was one of the great people in our industry who did not just sit back and wait for things to happen. Lou loved the industry and donated a large amount of his own personal time to making things happen to better the collision industry every day. I have no doubt that it is because of Lou that we continue to get the great response to the outing every year.” Bryant sees these types of events as a fun way to bring industry members together for an enjoyable day where they don’t have to worry about the daily stress associated with running a business. “Most of the people that come out and play golf at our out-

ing are just there to have some fun and relaxation, and few are anywhere near pros… Everyone can relax and get a laugh when someone like me misses the ball altogether!” Overall, AASP-NJ was very pleased with the outcome of their event. Bryant adds “we could not have asked for a better response or turnout. Everyone that I spoke to had a blast and can’t wait for the 2015 outing. I would like to say thank you to everyone that played and a special thank you to all that sponsored on any level. I would also encourage everyone to support those that support the AASP-NJ when it comes time to choose where to spend money on parts, materials, paint, equipment or anything related to our wonderful industry.” AASP-NJ www.aaspnj.com

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Continued from Cover

Staged Deer Crashes

fault” and pay the claims without raising the vehicle owners’ premiums, Williams contended. Galati would copy keys to cars brought into his shop for repair, and an accomplice would later find them parked on the street, steal them, and crash them into the other vehicles owned by Galati customers, a grand jury witness said. The purported point of their vandalism? To create more work and potential insurance paydays for American Collision. According to grand jury witnesses, Galati would say: “I live my life to cheat insurance companies.” Williams said Galati’s shop would pour deer blood over cars and simulate accidents, then take photos to send to insurance companies. Deer weren’t the only props used, the prosecutor said: geese, dogs, chunks of metal and concrete, and hurtled cartons of fruit were also used in the fraudulent photos. Galati’s wife, son and daughter, several insurance adjusters, tow truck drivers, a city official, and a police of-

ficer are also among those charged, says Philly.com. Among others charged in the insurance scheme were a former Philadelphia police officer, Douglas DiEmidio, 50, and Robert Otterson, 48, an employee and mechanic with the city’s Office of Fleet Management. According to the grand jury presentment, DiEmidio created false accident reports to help Galati “legitimize” bogus accidents. DiEmidio was fired last year after being charged in an unrelated case with stealing $10,000 worth of electricity by tampering with the meter on his South Philadelphia home. He pleaded guilty in December in Common Pleas Court and was sentenced to three years’ probation. Otterson, a $49,000-a-year city employee, allegedly enabled American Collision to obtain a $1.8 million city contract by falsely certifying that the body shop had a specialized welder needed to work on city police cars. The defendants were charged with counts alleging operating a corrupt organization, conspiracy, insurance fraud, bid-rigging, and theft.

Assistant District Attorney Dawn Holtz, the prosecutor in the case, said 14 people have surrendered and agreed to cooperate in the prosecution. Williams said the investigation of Galati began when two insurance companies, Erie and Progressive, contacted his office about suspicious behavior by insurance adjusters. Cheryl Stanton, 58, of South Philadelphia, an appraiser for Erie Insurance, was accused of accepting cash and gifts from Galati to inflate estimates of crash damage. Arthur Juliano, 37, of South Philadelphia, an appraiser for Allstate, was also charged with accepting cash from Galati.

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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 9

Northeast Associations with Chasidy Rae Sisk

LIABRA and Auto Body Craftsmen’s Guild Holds First Joint Meeting On Thursday, May 29 at 7:30PM, the Long Island Auto Body Repairmen’s Association (LIABRA) held its first meeting since merging with the Auto Body Craftsmen’s Guild (ABCG). The meeting, which took place at Spray City Collision located at 1316 Castleton Avenue in Staten Island NY, focused on the joint organization’s legislative goals, labor department updates and sales tax audits on auto body shops. Enterprise Rent-A-Car provided pizza and soda for attendees. The meeting began with a presentation by Ed Kizenberger Jr, Director of ABCG and Executive Assistant for LIABRA, who discussed the importance of unity between the two merging groups as well as the need for the collision repair industry to be repMark Stone, resented in their Professor of Sales state. He continued Tax Defense spoke at LIABRA’s to speak about the meeting on association’s goals May 29 and how they will use LIABRA’s experience garnered over the past three decades to improve the Guild as they prepare to become an organization focused on education. Next, Ed Kizenberger Sr, Executive Director of LIABRA, emphasized the need to educate all shops in order to assist those shop owners with the least knowledge to reach their full

potential because “the least educated of shop owners will be the ones who tarnish our industry and hold us back from making progress.” Kizenberger Sr also spoke about the association’s legislative agenda for 2014, specifically their proposed parts procurement bill which would prevent insurers from interfering with the parts ordering process and restoring control over this aspect of the repair to the collision repair professionals and the consumers. Further discussion followed on the association’s plans to conduct a labor rate survey as well as their focus on providing educational opportunities not only to collision repair facilities on Long Island but also the five boroughs which they plan to expand into. The group also covered what they hope to achieve through this expansion with the ABCG.

It’s a pretty big deal that we educate everyone we can reach.” LIABRA and ABCG’s next meeting will be held in the Fall in Brooklyn. The last ABCG meeting that was

Auto Body Craftsman Guild Joining with LIABRA

held in Brooklyn five years ago attracted 125 attendees, so Kizenberger Jr predicts their next meeting will be heavily attended by members and non-members alike. LIABRA www.liabra.com

LIABRA’s May 29 Meeting was held at Spray City Collision on Staten Island

Last but not least, Mark Stone from Sales Tax Defense LLC provided a comprehensive presentation

Stamford, CT, Body Shop Buys South End Shop Location for $1.6M to Expand Business

Darien-based Signature Group, a commercial real estate firm, announced it has negotiated the sale of 315 Greenwich Ave. and 39 Selleck St. in Stamford’s South End for a total $1.6 million. The buyer is Extreme Auto Body & Auto Repair, which will move from its current nearby Stamford location, expanding its business into the one-story industrial buildings. The buildings measure 5,739 square feet (Greenwich Avenue) and 4,000 square feet (Selleck Street). They adjoin and occupy a single, half-acre tax lot. Signature Group’s Bobby Gillon and Andrew

on the importance of properly keeping records and other ways to prevent a sales tax audit. He also explained the audit process and discussed what rights a shop has during the investigation. This was the ABCG’s first meeting since the group deteriorated around three years ago, and Kizenberger Jr notes “it was an eye opener for many participants with a lot of good information that a lot of them hadn’t heard before. We’ve received some really positive feedback from members since the meeting. Kizenberger Jr feels that association meetings and events are vital “because knowledge is power. Unless shop owners know how to run their businesses properly, they will run this industry into the ground. We need to improve the performance of the lowest performing shops to keep them abreast of changes in the industry because the outliers drag the rest down.

Carney, each a vice president, represented the seller, BonCap Realty LLC.Don Corbo of Stamford-based New England Properties represented the buyer. “There has been a great deal of development in Stamford, specifically in the South End,” Gillon said. “The demand for residential, retail and office properties has made these smaller commercial properties increasingly scarce. We’re pleased that this sale will keep quality auto repair services in a neighborhood with a growing residential and business population.”

10 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

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Continued from Cover

Aftermarket Parts Sellers

dees at the ABPA event that having grown up in her parent’s Baton Rouge business, Felder’s Collision Parts, she has a good understanding of the issues facing the non-OEM parts industry. “This industry hasn’t had a real friend in Congress,” Felder said. “For many of you who have been to the legislature, who’ve been up there trying to get some of these bills passed, fighting against some of the things that affect you, there aren’t a lot of real friends to the industry there, not a lot of people there who really understand this industry. And so it’s really important for you to pay attention to this race, and I’m asking for your support in this race.” One of the issues Felder mentioned she would go to Congress understanding is the “PARTS Act,” an ABPA-supported bill that would slash automaker design patent protection from 14 years to just 30 months. Felder also discussed the “devastating” impact that automaker parts price-matching programs have had on her parent’s business and others in the

non-OEM parts industry. She said she drafted the lawsuit that Felder’s Collision Parts filed in 2012 against General Motors, alleging that General Motor’s “Bump the Competition” price-matching program was an illegal predatory pricing scheme designed to drive nonOEM parts distributors out of business. (A U.S. District Court judge dismissed the case in April, but Felder’s Collision Parts has filed an appeal of that decision. See Autobody News June 2014 issue.) Felder asked ABPA members to support her campaign to represent Louisiana’s 6th Congressional District. She is seeking financial contributions (www.cassiefelder.com) both from individuals and through business political action committees. “Obviously there are a lot of issues that are going to be affecting my district,” Felder said. “But this industry has been so important to me and my family, that this was absolutely one of the industries I wanted to target.”

State Legislation Discussed State legislation related to non-OEM parts was also the focus of another presentation at the ABPA convention in Austin. Ray Colas, director of gov-

12 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

ernment affairs for LKQ Corporation, told the non-OEM parts suppliers that the body shop industry seems reinvigorated. “PartsTrader is something that has motivated them, not only through legislation but also litigation,” Colas said. “With that momentum, they’re throwing us under the bus as well.” In the past, Colas said, most of the legislative challenges to aftermarket parts came from automakers. “But the body shops have really taken it over,” he said. “Now the automakers are supporting the body shop association initiatives.” Colas talked about a number of bills his company successfully lobbied against, including one introduced in Maryland last year that would have prohibited the manufacture, sale or installation of a counterfeit or substandard airbag. “Some of you may wonder: Why are we concerned about airbags? There are no aftermarket airbags,” Colas said. “Well, that’s true today. That doesn’t mean that in the future they may not exist. So we want to protect that market today in case in the future there is an opportunity for that. We don’t want to be restricted from

selling any alternative part.” Colas said after a “long, drawnout fight” and “a very, very close call,” aftermarket parts supporters were able to convince Maryland lawmakers this year not to pass a bill that would require insurers to pay for new OEM parts for repairs to vehicles manufactured within the previous three years. “Jordan Hendler (executive director of the Washington Metropolitan Auto Body Association, which backed the Maryland legislation) has done a great job educating these legislators, meeting with them year after year,” Colas said. “It’s something we really want to keep an eye on.” A lawmaker in Iowa also needed to be “re-educated” about the aftermarket parts industry, Colas said, after he introduced at the behest of body shops a bill that included a provision similar to the one in Maryland. Colas said that lawmaker’s district includes an LKQ facility. “We got there and told him, ‘Hey, you’re really going to affect our business,’ ” Colas said. “This is how many jobs we have in your district.” Colas said the Iowa bill also included provisions prohibiting an insurer from recommending a shop without

also telling the customer they aren’t required to use a recommended shop, and from requiring a shop “to use a specific vendor or process for the procurement of parts or other materials.” Colas said those provisions will likely be included in a future piece of legislation. “There will be a bill that’s reintroduced, but it will not include the aftermarket parts restriction,” Colas said.

PartsTrader addresses questions Ken Weiss, director of business development for PartsTrader, also spoke at the ABPA convention, just days after his company completed national roll-out of its system, now reportedly used by more than 7,500 body shops and 8.500 parts suppliers. Weiss said that by the end of this past April, parts lists from more than 700,000 estimates had been put out for quote through PartsTrader, and more than 1.25 million orders totaling more than $450 million had been placed through the system. Weiss said although State Farm “is a little bit restrictive with regard to aftermarket parts,” he expects nonOEM parts orders through the system to increase as shops use PartsTrader for non-State Farm jobs.

He cited a number of benefits that PartsTrader offers suppliers, including “increased sales opportunities and fewer parts returns.” However not everyone at the ABPA convention agreed with Weiss on this last point. “We have not noticed a lower return rate on (parts ordered through) Ken Weiss PartsTrader versus phone calls versus faxes versus anything,” Bob Petty of Collins Collision Products in Loveland, CO, told Weiss. “Our return rate is higher than it’s ever been in the history of the company.” Petty also asked if returned parts are taken into account in the fees PartsTrader charges to suppliers, which are based on average monthly sales. Weiss said they are, provided that parts purchased through the PartsTrader system are also returned though the system.

“We all know the games today where repairers will buy multiple parts, sometimes just to get a receipt that they can show somebody else, and then return the part,” Weiss said. “With the PartsTrader system, you can only buy a part once unless you return it. Then you can buy the part again from another supplier. So we think that will avoid some of the games and will help bring down the returns.” Weiss was asked if there’s a way for a shop to bypass the system to return a part. “Only if you let them,” Weiss told the parts distributors. “If they want to return a part, you need to tell them, ‘You bought this through PartsTrader; you need to return it through the system,’ so you get credit for the return.’ If they don’t want to return it through the system, then, I hate to say it, but they are probably up to no good.”

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IL Shop Owner Posts 20-min Video of FPB for Panel Fixes

Russ Hoernis of Hoernis Auto Body in Belleville, IL, has created a 20-minute video and posted it on YouTube to demonstrate all of the steps in the feather, prime and block procedure that must be performed to bring a repair panel back to a new, undamaged one. “Feather, prime and block is a refinish operation that for years has been snubbed by the insurance industry as either an included operation in repair times, or they have just been unwilling to compensate shops for the work and materials utilized. I have researched the CCC, Audatex and Mitchell manuals, and each estimating system has independently stated that feather, prime and block is a necessary operation that must be performed to bring a repaired part back to a new, undamaged panel. Each manual also clearly states that published refinish times are for new, undamaged panels.” After documenting the entire operation, Hoernis goes over the labor and materials used and ultimately calculates that not getting paid for this results in roughly $50,000 per year in lost revenue to his shop. Hoernis concludes the video by saying, “I hope for whoever is watching that this clarifies some of the issues we are up against.”

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 13

Continued from Cover

Photos in Appraisals

ample, Esurance has announced it is offering real-time video appraisals for consumers using its mobile application. Allstate, State Farm and MetLife, are also asking their customers to submit camera phone pictures of the damage, and they are using these photos to write their estimates. In Connecticut, Attorney John Parese, who acts as legal counsel for the Auto Body Association of Connecticut (ABAC), said he believes “the growing trend of using camera phone pictures prior to getting a repair professional involved is illegal, unethical, and most importantly, harmful to consumers.” Because claims are being paid based on claimant-taken photos which cannot possibly depict the full extent of damages, Parese sees this practice as “a fundamental misrepresentation of policy or third-party rights and benefits... “Insurers have a legal and often fiduciary responsibility to make fair and complete payments for covered losses. This system is plainly designed to save insurers money on its own labor costs

(ie. less paid appraisers) and on the amount it ultimately pays on claims (ie. calculated underpayment of claims). These savings come at the expense of consumer safety and complete reimbursement,” writes Parese. In Massachusetts the appraisal process explicitly requires personal inspection and 212 CMR 2.04 details the procedures for conducting appraisals. In Section D, Requirement of Personal Inspection and Photographs the regulation states: “The appraiser shall personally inspect the damaged motor vehicle and shall rely primarily on that personal inspection in making the appraisal. As part of the inspection, the appraiser shall also photograph each of the damaged areas.” This requirement is now in doubt given the ADALB ruling. Carl Garcia, owner of Carl’s Collision Center in Fall River, MA, and a member of the ADALB, told a media source that understanding how new technologies could improve the claim process is a key driver for the new ruling. Garcia has a radio show on 1480 WSAR where he fields consumer questions on collision repair. “Last year, attorneys at the Massachusetts Division of Insurance

Wolcott, CT, Shop Operated Without License, Obtains One, But Still Rankles Local Competitors

A shop in Wolcott was doing business without a license and the owner stayed open for months. The Department of Motor Vehicles knew back in August that North East Customs did not have a license or when local Eyewitness News visited the shop two weeks ago. Despite being open illegally for months, they still got a license. Eyewitness News went back to North East Customs and within minutes, they shut their doors. When Eyewitness News visited North East Customs two weeks ago, the owner Bob Lebrun agreed to talk with the station and he said “I have a license.” The I-Team was told he didn’t have one. Last summer after getting some complaints, DMV officials ordered him to shut down and they even arrested him on 12 charges of operating without a license. One charge for every vehicle that was in the shop that day. Instead of doing what he was told, Lebrun kept right on doing business. Even after knowing North East Customs continued to operate illegally, DMV officials gave them a license. “Businesses fall through the cracks,” said DMV spokesman William Sey-

mour. Seymour said they don’t have enough staff to revisit every business, yet they were being told the owner was still operating. “You would have to be up there every day issuing a summons,” Seymour said. “We don’t have the manpower.” Lebrun will have to go to court and may be fined for operating without a license but only for those 12 counts. However, he will not for all those months he stayed open. “It’s not a level playing field,” said Ken Giles, who owns the auto shop Final Finish. Giles said he finds this insulting. He said he has paid the state thousands of dollars to make sure his license is in good standing and without a license you can’t get bonding or insurance. “When I started finding out he was doing work without a license, you wonder ‘we pay and just make ends meet,” Giles said. “How do you compete with that?” DMV officials said they feels it’s better to get these businesses a license because this way consumers are better protected. This way they can have recourse through the state if there’s a problem.

14 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

drafted a detailed, five-page opinion that basically said that a personal inspection was not a physical inspection so virtual technologies could be used under the existing regulation,” said Garcia. “In my view, the advisory ruling shows that we’re open to new technologies but we have to be sure they will benefit consumers and improve the claim process. This opinion moves us in the direction.” Garcia cautioned, however, that the requirement for documentation of how video or images were used to create the appraisal is an important part of the ruling. “Quality video and images along with documentation is important. The capabilities of smart phone can vary impacting the photos they take,” said Garcia. “Anyone using the technology should thoroughly document how any technology was used and how it supports the appraisal.” Rick Starbard, owner of Rick’s Auto Collision in Revere, MA, and a past-president of both the Alliance of Automotive Service Providers of Massachusetts (AASP-MA) as well as the National AASP organization, is concerned that the ruling might open the door to increased steering by in-

surance companies in the Commonwealth and create problems for consumers. “I take a ton of photos in my business and I still find that I often need to go back out and look at the vehicle,” said Starbard. “I’m also concerned that this could make it easier for an insurance company to steer work or just use the shop as their drive in facility. Now an insurer will just say ‘Take the car to this shop and they can shoot some photos and send them to us’ to get the car to the shop they want.” According to Starbard, AASPMA will focus on working with the Massachusetts Division of Insurance to revise the regulation to clearly define what is allowed. “Having this ruling when they are going to need to make a regulatory change does not make sense,” said Starbard. “I’m concerned that insurers will use this ruling to justify using a couple of smart phone pictures from consumers to settle the claim. The ruling leaves a lot open to interpretation that needs to be addressed in the regulation.”

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VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to Pre-Loss Condition unique vehicle, but while it’s easy to match these labels to a specific vehicle Whether you’ve struggled with the on the production line, manufacturers need to replace automotive VIN and are not equipped to replace a single safety labels or if you’ve never given custom label after the car leaves their them a second thought, the fact re- plant. That’s where AutomotiveID mains that federal law mandates these comes in! Automotive ID launched in 2007 labels be permanently affixed to every to fill this need within the collision repair industry. One-of-a-kind VIN and safety labels were not being replaced and, at best, were being cut out and stuffed in the glove box. The company’s sole business is the production of these unique VIN and Safety certification Installing a replacement Tire & Load label will ensure your customers know how to maintain their vehicles and conlabels, and AutomotiveID tribute to their overall safety supplies collision repair favehicle, yet they’re the part least cilities in every state in the U.S. as likely to be fixed during a repair! well as throughout Canada. As a provider of aftermarket auManufacturers rely on both the safety certification label and the tire-and- tomotive labels to the collision repair load label to convey important safety industry, AutomotiveID produces information to drivers. These labels high-quality labels for all makes and are customized with the VIN and models of cars and light trucks, almonth/year of manufacture for each lowing their replacement to go from by Chasidy Rae Sisk

16 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

nearly impossible to one of the easiest tom VIN and Safety certification laparts to replace. Beyond the simple bels. Besides the safety factors menneed to restore a vehicle to its pre-loss tioned, AutomotiveID’s labels also condition, replacing these labels is im- help consumers maintain the value of perative because they instruct drivers their vehicles as appraisers typically on how to handle and maintain their vehicles, including tire inflation recommendations and load limits, both of which are extremely important since ignoring these ratings can lead to dangerous wrecks; this is why the National Highway Transportation Safety Administration (NHTSA) insists the information contained on these labels AutomotiveID’s replacement BMW certification label conis critical to public safety. tains the same information as the manufacturer's original For collision repair facilities, the discount trade-ins with missing labels since the absence of these labels limit benefits of restoring a vehicle to its their knowledge of the vehicle. pre-loss condition by using AutomoAutomotiveID’s replacement lativeID’s labels is obvious, but because insurance companies also recognize bels fulfill many needs to the benefit of the benefit of maintaining the safety all vested parties. In addition to providof their customer’s vehicle and the ing federal regulation compliance of repaired vehicles, these labels preserve value of their own insurable interest, the value of the vehicles, provide necshops can finally get paid for doing essary tracking information, and supply the right thing and replacing these cus-

the repair facility with incremental revenue and compensation on work for which they haven’t traditionally received payment. Each party in the collision repair industry has different, yet valid, reasons for recognizing the importance of replacing vehicle labels, but the predominant concern relates to public safety, and AutomotiveID’s services undeniably contribute to this factor. AutomotiveID offers a complete line of automotive labels, including certification, service parts, tire and loading, emission control, paint and trim, anti-theft and all other aftermarket labels that are typically difficult to find. All of their replacement labels meet the standards set forth by the NHTSA, and AutomotiveID enters all information by hand to ensure accuracy as part of their thorough process of quality control and independent verification procedures. So how do you order replacement labels from AutomotiveID? Easily because it’s all done online! Simply visit their secure website, complete the order form, and upload a photograph of the original label. AutomotiveID will enter the necessary information and print a new label which you can receive as early as the

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John Borek Takes Aggressive Action, Files Trespassing Complaints Against Argumentative Appraisers by Alicia Basteri

John Borek, general manager of Autocraft Bodywerks Inc. in Austin, TX, has resorted to filing four criminal trespassing complaints against insurance appraisers. On average, about four insurance appraisers come into his shop every day. Occasionally, an appraiser will find fault with the logic behind certain repair estimates. Borek said that he usually John Borek points out the manufacturer’s specifications when this happens and prints them out for the appraiser on the spot, which tends to mollify their concerns. However, he sometimes gets an appraiser who still wants to argue. According to Borek, most of the appraisers who want to argue are young and have never worked on a car in their life. Having worked on cars for over 30 years himself, this can be frustrating, to say the least—not to

mention a waste of time. So, when he gets a particularly argumentative appraiser, he calls his manager after the third incidence. If it happens again, he files a criminal trespassing charge. Once the appraiser has been served papers, he’s not allowed on the property. If he violates the order, he could be arrested and fined. Borek hasn’t had to have an appraiser arrested, although he said they did serve papers to the wrong guy once—a father with the same name as the son who worked at the same insurance company. Now, it costs money to file a criminal trespassing charge, he has to hire a lawyer, etc. This isn’t something that he wants to do—it’s a last resort. And it’s a last resort that he’s only implemented four times in 30 years. This strategy has worked for them. Borek told Autobody News that he has received calls from body shop employees all over the country saying that they ‘wished they’d thought of that, way to go, etc.’ Maybe his self-proclaimed out-of-box thinking is setting precedents in the industry.

www.autobodynews.com | JULY 2014 AUTOBODY NEWS 17

Auto Body owner John Petrarca. ABARI is backing the license classification bill, the aftermarket parts bill, and the insurance notice bill as “good consumer” pieces of legislation, said Petrarca-Karampetsos. She told The Breeze that ABARI members are “as confident as we always are” that state lawmakers will wonce again “support the consumer” as they’ve done historically. The Property Casualty Insurers Association of America is opposing all four above pieces of legislation, calling them “bad bills” that will take more money from average Rhode Islanders. Ruggerio and Corvese have declined to discuss any of their bills with media. Frank O’Brien, vice president of state government relations with the Property Casualty Insurers Association of America, said the continued campaign by Ruggerio and and Corvese—lawmakers he says have supported a combined 17 bills supported by ABARI over the past

decade—is having a cumulative negative impact on consumers, helping to cause some of the highest insurance rates in the country to balloon further. The insurance notice bill on June 5’s docket is unique in that it doesn’t relate to auto body issues, said O’Brien, but is “more related to sour grapes.” Rhode Island is one of 14 states that has a “flex-rating” statute in place allowing an expedited rate filing process for insurers if the size of the increase is 5 percent or less. According to O’Brien, less than 10 percent of rate filings actually take advantage of the statute. Having the statute in place has actually resulted in lower rate increases, said O’Brien. Without it, insurers may be reluctant to change their rates in response to competition. The National Association of Mutual Insurance Companies issued the following news release: The National Association of Mutual Insurance Companies provided testimony to the Senate Judiciary Committee opposing S. 2834 that would create a dual licensing classification system for auto collision repair shops. “The legislation is totally unnecessary,” said John Murphy, NAMIC’s

A wanted fugitive who barricaded himself inside a West Haven auto body shop was shot and killed the afternoon of June 4th when he pointed a gun at SWAT officers after negotiations broke down, the Weber County Sheriff’s Office reported. Kristopher Chase Simmons, 35, was shot by two Ogden Metro SWAT officers after over four hours of negotiations broke down and died after being transported to Ogden Regional Medical Center, said sheriff’s Sgt. Lane Findlay. “They exhausted pretty much everything they can to try to get him to give himself up — negotiating with him, talking with him,” Findlay said.

“I believe there was some contact with family in this. They did everything they could possibly do to try to get him to put the gun down.” After the negotiations broke down, Simmons pointed a gun at “members of the SWAT team. Two of those members fired at the suspect. Ultimately he died from his injures.” Findlay said. Simmons was taken by ambulance to Ogden Regional Medical Center, Findlay said. Police have not released how many shots were fired or how many times Simmons was hit. But Findlay said the protocol for an officer-involved shooting had been initiated, and the two officers involved were put on administrative leave during the investigation. Weber County deputies and a SWAT team were dispatched to the Flying J near 1900 S. 1100 West around 11:40 a.m. after Kristopher Chase Simmons, 35, barricaded himself inside. Police officers were attempting to arrest him when ran into the auto body shop, Weber County Sheriff's Sgt. Lane Findlay said.

Continued from Cover

RI Body Shop Bills

state affairs director for the Northeast. “If the auto body repair industry wants to create a classification system, it can do so without involving the Legislature in its marketing strategies.” According to Murphy, the Legislature has appropriately identified the minimum standards that all auto collision repair shops should meet in order to protect consumers and shop workers. “Any bells and whistles beyond that should be left up to individual shops,” he said. Details of bills and amendments are available online: ● http://webserver.rilin.state.ri.us/ BillText/BillText14/SenateText14/ S2833.pdf. ● http://webserver.rilin.state.ri.us/ BillText/BillText14/SenateText14/ S2835.pdf. ● http://webserver.rilin.state.ri.us/ BillText/BillText14/SenateText14/ S2834.pdf. The NAMIC letter is available at: http://www.namic.org/pdf/14memberadvisory/140605_RIautoBodyRpr.pdf.

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Albany-based H&V Collision to Add Fifth Location

H&V Collision Center will be adding a fifth location in the next few weeks, continuing the growth of the Albanybased family-owned business. The new location will join current H&V Collision Center locations in Troy, Queensbury, Colonie and Saratoga. Founded 40 years ago, H&V has expanded from a two-man operation to the largest independently-owned collision repair business in the capital region. “H&V Collision Center has been proud to serve our customers over the past four decades, including working with many repeat customers for years,” said Vartan Jerian Jr., vice president. “We are excited to be expanding our service to our customers and the region. “The addition of a fifth location continues an exciting period of growth and expansion for H&V Collision Center. We have promised 2014 would be a big year for us, and expect other good news in the coming weeks.” The expansion takes place as H&V Collision Center is also updating image and branding. A new logo for H&V was unveiled this spring, along with a digital and outdoor billboard campaign and new company tagline, “Let’s Get You Back on the Road.”

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Lean Operations

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

Using an Outside Expert to Improve your Competitive Position with David Luehr

I received a call last month from a dear friend of mine on the West Coast. I’ll call him Paul here, but that’s not his real name. His voice was shaky and he was clearly upset. Paul told me that one of the big MSOs had recently acquired a shop just down the street from him and at first he wasn’t too concerned, but now he was extremely concerned. My friend has always ran a very good shop, so I asked him what he was so worried about to which he replied, “I hate to admit it, but these guys are better than I thought and I am losing business to them!” You see Paul’s biggest DRP provider put his new big MSO neighbor on the same program even though they are only a block apart! What’s more, Paul was told by his DRP coordinator that unless his shop improved its KPIs, his new neighbor was going to be receiving the lion’s share of the business. Paul’s story is not an isolated one. Knowing Paul, he will figure out

a way to compete and win, but he is going to need some help. Everyone in the collision repair industry knows how challenging it has become. DRPs are demanding more, Consolidators are growing faster than ever, and profits are shrinking. The shops that are serious about competing in this game need to quickly improve their position in the marketplace by performing at unprecedented levels. This document is intended to show the reader that many of the advantages provided to large MSOs can be afforded to any shop serious about transforming their business through using an outside firm to provide many of the services. Organizations like Service King, ABRA, Boyd Group, etc. have systems in place that give them a very strong presence in many major markets in this country. These systems allow for consistent and predictable results in quality and customer serv-

ice. These systems when combined with the footprint of the consolidators, gives them a very lucrative “seat at the table” with all major insurance carriers. While each MSO is slightly different in their approach to centralized resources, this is a generalized list of advantages that large MSOs have over the rest of us… ■ Assurance of DRP affiliation when opening new locations ■ Centralized Human Resource Departments ■ Centralized Accounting ■ Centralized Customer Call Center ■ Centralized Load Leveling ■ Centralized Management of I-CAR Gold Class ■ On-line training, Learning Management Systems, and testing ■ Self-managed DRP with centralized audit teams ■ Marketing Teams ■ Safety and Environmental Compli-

ance Teams ■ Proven workflow systems and accountability to make them work ■ Mass advertising and name recognition ■ Ability for employees to help other locations when needed ■ Stability and benefits are attractive to potential new-hires ■ Buying power Most small collision repair businesses must attempt to perform many of these functions, but are rarely able to perform all of them well, if at all. To remain profitable typical shop owner/managers must perform many of the functions that shop managers at large MSOs don’t have to deal with. The time that a typical shop manager would spend performing many of these functions is spared to the large MSO shop manager thereby providing them time to ensure that processes are being followed, quality and cycle time standards are being met and in

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many ways acts as an “auditor.” With these disciplines in place, it becomes very difficult to compete with these guys. In order to perform all these functions that are required, you would need to hire people that are experts in Insurance DRP Relations, HR, Accounting, Customer Relations, I-CAR Gold Class, Marketing and Advertising, Safety and Environmental Compliance, Admin Workflow Systems, Change Management, Lean, etc., etc., etc. I would bet in most collision repair businesses, at least one or more highly paid people would need to be hired to perform all of these functions which are currently not being performed well or at all. That could equate to $5,000 - $15,000 a month, plus benefits to hire who is needed to get all this stuff done! This of course would be considerably more if you have multiple locations needing these services. Solutions can be provided by an outside firm at a substantially lower price and be performed by experts that will ensure these functions are performed precisely. So in other words, you could get many of these functions at your shop performed both better

and cheaper than trying to do it yourself in-house.

A look at ROI Is it actually costing you money by not using an outside firm? In many cases, yes! Training & Coaching has been proven to increase a shop’s Key Performance Indicators substantially. Coaching and Training provided by qualified outside sources can have an immediate positive impact on both KPIs and return on financial investment. Even a modest 5% increase in productivity at a shop producing $100,000 in revenue can yield an additional $2,000 in gross revenue which in many cases is enough to pay for the outside services. There are many cases of shops experiencing significant gains in productivity and profitability that never would have been possible with the assistance of outside experts. Don’t expect quality outside services to be cheap, but look at it as an investment with a favorable ROI. Do your homework when hiring a business coach or any kind of outside service, these folks in many ways become a reflection of your business and will have an impact either positive or negative. You must be able to trust

them much as you would a new employee, so don’t feel you need to hire the first one that comes along. The old saying that the “Definition of Insanity is doing the same thing over and over and expecting a different result” is exactly what many shop leaders continually do. It doesn’t have to be this way. Quality of life for stakeholders at body shops doesn’t have to be so bad. We all need help, and there are resources available to provide support.

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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 21

Northeast Associations with Chasidy Rae Sisk

ABAC Holds Annual Officer Elections, Welcomes Larry Montanez Back to Continue Training On the evening of Tuesday, May 20, the Auto Body Association of Connecticut (ABAC) held its Annual Membership Meeting at the Chowder Pot Restaurant in Hartford, CT. A large group of shop owners and managers attended the meeting to participate in the election of new officers and to hear Larry Montanez of P&L Consultants resume his educational seminar from March. The meeting began with ABAC President Tony Ferraiolo welcoming attendees and expressing gratitude to the evening’s sponsors who included primary sponsor Bald Hill Motor Group as well as co-sponsors Kent Automotive, Enterprise Rent-A-Car, and Paul Francis & Co. After thankJohn Parese ing newsletter advertisers and ABAC’s corporate sponsors for continuing to support the association, Ferraiolo discussed the status of ABAC’s current initiatives before introducing John Parese, Legal Counsel for ABAC, who provided updates on current legal proceedings that the association has undertaken. Before dinner, ABAC held their election of officers, but the team nominated and elected to serve for the 2014–2015 term reflects no changes from the current team. A&R Body

Specialty’s Tony Ferraiolo will continue to serve as President, with Ed Lupinek of Eddie’s Auto Body filling the role of Vice President. Mark and Mike Wilkowski of Stanley’s Auto Body will serve as Secretary and Treasurer, respectively. Ferraiolo also acknowledged ABAC’s Executive Administrator, Heather Romaniello, for “the amazing job that she has done behind the scenes for the ABAC.” Finally proceeding to the featured speaker segment of the meeting, Ferraiolo reintroduced Larry Montanez, Education and Training Advisor for P&L Consultants, who continued the educational seminar he began at ABAC’s meeting on March 18, 2014. After answering questions posed about the first

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part of his presentation, Montanez continued to cover the following topics: metallurgy; estimate writing (damage as-

Prospect, CT, Body Shop Owner Arrested After Accident Takes Down Route 68 Power Lines The owner of Eagle Auto Body was arrested for driving without permission and driving with a suspended license after an accident that took down electrical wires on Route 68. Peter Scionti, 66, was released on $2,500 bond and is due in Waterbury Superior Court on June 13. A mechanic with Alderman-Dow Iron & Metal of New Haven said the truck was dropped off at Eagle Auto Body at 128 Union City Road for body work. “He did not have permission to take that truck off the property,” said Nuno Branco. A man who answered the phone

certain items now. We are also seeing more and more of these changes with aluminum, starting with the Ford F150’s aluminum frame. A few participants mentioned that some of the predictions I’ve made in past years have come to fruition… I felt very welcome and appreciated. I’ve always enjoyed a good relationship with ABAC as well as with other places I visit in the Northeast corridor.” The ABAC is grateful to Montanez for taking time to present such valuable information to their members which can be used to become more effective in their daily business operations. Ferraiolo and ABAC also extend an invitation for shops in CT to join them as they move towards the future of the collision repair industry, urging everyone to “be part of the solution!”

sessment); knowing the procedural pages; following SOPs; trial fitting parts; how to calculate feather, prime and block; non-included SRS preBill Romaniello cautions; frame set up (Mitchell/Audatex/ Motor); shop materials; wheel installation for mobility; labor time rules; welding; partial refinish, full clear; and refinishing times, among other subjects. Montanez believes that everyone in attendance was really receptive to what he had to say. “Everyone seemed to realize that they need to understand the procedural pages between the three estimating programs and about the non-charged items that need to be attended to in the estimate. We talked about the changes in the complexity of procedures and how manufacturers are requiring different methods to repair

at Eagle Auto Body confirmed the truck was there for repairs, but did not want to comment further. The accident was reported at 3:38 p.m. on Wednesday. The scrap metal truck pulled down electrical wires along the side of Route 68, also known as Union City Road, between School House Road and Colonial Drive. No one was injured. The accident closed the road while a crew from Connecticut Light & Power made repairs.

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Social Media for Shops How to Market to Millennials with Ed Attanasio

What exactly is a Millennial? Born between 1981 and 1996, Millennials are represented by 86 million people, which means they’ve trumped the Baby Boomer generation by seven percent. There are more 22-year-olds than 53-year-olds on the planet right now and by 2018 it is estimated that the Millennials will be outspending the Baby Boomers by a large margin. My stepdaughter is staying with us this summer, so I am getting a firsthand view of how these Millennials live. One thing I noticed is that they eat a lot and text a lot and ignore me with a passion. They’re also very in tune with all of the latest technology and social media and are extremely adept at rolling their eyes and saying things like “whatever” and “it is what it is.” Some find them to be entitled and downright rude, but no matter what your opinion of them is, Millennials are a very significant segment of the market, and that’s why any consumer

business should be at least remotely interested in what they’re up to. So, why should the collision industry care about this age group? Because they have money, they drive nice cars and just like everyone else—they get into accidents. After years of studying Millennials, marketers and ad agencies all over the world know full well that the Millennial generation isn’t just a bunch of entitled kids with smart phones snapping selfies and chasing down the latest Groupon deal. In fact, businesses that aren’t pursuing Millennials will soon be missing out on a major consumer opportunity from a generation with an expected $2.45 trillion annual spending power by 2015. Body shops should be marketing to Millennials right now, because they’re the consumers of the world’s, both today and tomorrow. The problem is that most owners of leading ad agencies and market-

24 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

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

ing/pr companies are in their 40s and 50s and they’re still trying to use techniques that worked back in the Madmen days. But, in order to cater to the Millennials, the powers-that-be have to re-invent themselves once again and devise ways to appeal to these 20somethings. I recently took a two-day seminar about social media and most of it was dedicated to advertising and marketing to Millennials. The class was taught by a Millennial, so the information was both pertinent and useful. More and more companies are recognizing the value of marketing to Millennials. By using these five tips to re-calibrate your marketing, public relations and advertising efforts, you’ll be able to tap into this increasingly powerful generation.

1. Don’t Talk Down to Them I was talking to a Millennial one day about a world without personal com-

puters or the Internet and he looked at me like I had just emerged from a cave. As the most educated and savvy consumer group in the world, Millennials know what they want and are very skilled at finding it all by themselves. Now, collision repair is obviously not an impulse buy and the Millennials will treat it as an unnecessary expense, like Obamacare or parking tickets. But, in the end they don’t like to be corralled into doing something, so branding and advertising to this group may be more important than ever. They’re not the type that is going to just blindly pick one body shop from the list their insurance company shows them. They will want to do their due diligence and ask around, as well as referring to the shop’s web site, Yelp page and other assorted social media.

2. Don’t Camouflage Your Message “Be real,” is something the Millenni-

als want to tell their parents and the new word I keep seeing everywhere is “transparency.” (Back in the old days, if you called somebody “transparent,” it meant they were not genuine, but now I guess it means exactly the opposite.) My stepdaughter has seen the media change and evolve and has been bombarded by literally millions of ads during her 20 years on the planet, so she can’t be fooled, cajoled or directed by advertising. The Millennials want the facts now and don’t want to sit through your long descriptions or veiled messages. Their time is limited and they’re juggling 1,500 things simultaneously and that’s why studies show that Millennials will value honesty and a straightforward approach when it comes to advertising.

3. Strengthen Your Presence Online Millennials are comfortable buying things online and that’s why brick and mortar businesses are moving toward the Internet more all the time. Unfortunately, you can’t get a fender bender repaired via the computer, but much of the groundwork can likely happen there. And that’s why it is important to have a good web site and

some presence on Facebook and Instagram, for example, because these Millennials care about it and may use one or more to make their buying decisions.

4. Millennials Communicate All the Time…with Each Other This generation is more connected than any group in history, because they have so many ways to do it. They also rarely live alone and have numerous roommates in many cases, so word-of-mouth (or text or video or photo bomb) is more valuable to advertisers who understand this. The old days of creating a “buzz” is always beneficial, but now it’s more concentrated and it all moves so much more quickly. Come up with a shorter, more concise message, so that the Millennials can grasp it fast and disseminate it to their friends and associates seamlessly. It’s called “going viral” and if you can get

achieve it, you’ll be a success—Millennially speaking.

5. Quality is Still King (or Queen) With today’s technology, bad service and poor quality can’t be swept under the carpet anymore. Anyone can find your competitors online within milliseconds and we all know that bad news travels faster than good news. Companies that take the time to provide convenient, Millennial-friendly services and quality products will be continually rewarded with positive recommendations, via the spoken word, smartphones or laptops. Either way, Millennials are demanding better service and higher quality while possessing the power to influence others, so listen to what they’re saying and start concentrating on this demographic more. Whether you’re enamored or not with their attitudes or behavior, they’re a huge market and you can’t deny it any longer.

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Job Corps Orientation Set For Oswego, NY, on June 20

Job Corps, administered by the U.S. Department of Labor, offers free career technical training for 16- to 24-year-olds in auto mechanics, auto body repair, medical & business office, C.N.A., L.P.N, construction, culinary arts, security guard and more. The program includes up to two years education and training, campus housing, meals and other services. There is no cost to eligible students. Both high school graduates and non-graduates may apply. If needed, a student can also get a NY State High School Equivalency (TASC) or high school diploma at the same time they train for a career at Job Corps. Orientation and Interviews will be held at Oswego Public Library, 120 E. Second St., on June 20 at 10 a.m. By reserved seating only. Call Admissions Counselor David Brown at (315) 478-5529 to reserve your seat and find out what documents to bring.

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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 25

Calif. Advocates Say Job Training, Including Collision Repair, Provides Path from Prison When Warden Jerome Price (pictured right) first worked at Deuel Vocational Institution in 1987, the state prison had vibrant vocational training programs for prisoners, according to Michael Ellis Langley writing for the Tracy Press. By the time Price was appointed warden at DVI, 23500 Kasson Rd., in December 2012, those programs were long gone and the prisoners were unprepared to get jobs after their sentences were served. “These inmates are coming back out in the community, and you want them to be viable citizens,” Price said in an interview Friday. “You want them to be able to work so that they’re not looking at you when you go to work and go in your house and take all your property.” Almost immediately after Price took over DVI, the California Department of Corrections and Rehabilitation asked wardens around the state if they were interested in job training programs at their prisons. Price said he volunteered DVI to become an incubator for heating, ventilation and air-conditioning, or

HVAC, certification courses and training in auto body maintenance, building maintenance and computer literacy.

“Auto body is another one. That will give them a trade that they can go out there, work and get a viable living.” Harriet Salarno, whose daughter was murdered at University of the

Service King Collision Repair Centers Finalizes Sterling Collision Centers Acquisition Service King Collision Repair Centers has announced that it has finalized the acquisition of Sterling Collision Centers. Service King now operates 175 locations across 20 states. The company says that the acquisition supports Service King’s robust growth strategy and further strengthens its position as the premier provider of high-quality collision repair backed with exceptional customer service. “Acquiring a company like Sterling Collision Centers is about more than expanding our network with bricks and mortar. The strength of our organization lies within our people and we are extremely excited to welcome the very talented Sterling team to the Service King family,” said Chris Abraham, CEO of Service King. “Service King has offered consumers a superior collision repair experience for more than 38 years and we are well positioned to grow that legacy with what I believe is the most capable and experienced team in the industry.” Sterling’s 62 locations will begin operating as Service King immediately

and the rebranding of Sterling stores across the country commences June 3, 2014. “Service King has built a strong reputation in the communities where we do business. We recognize that collision repair is not just about the car, but it’s about the care and the lives we touch every day. This acquisition allows us to expand our footprint and offer more consumers an unparalleled, personal repair experience,” said Jeff McFadden, President of Service King. Service King now employs more than 3,800 technicians and support team members and offers collision repair services in the following states: Arizona, Arkansas, California, Colorado, Georgia, Florida, Illinois, Maryland, Michigan, Mississippi, Nevada, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah and Virginia. For a full list of locations by city and state or any additional information on Service King, visit www.serviceking.com.

26 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

Pacific in Stockton on Sept. 3, 1979, is the chairwoman of Crime Victims United of California. In an interview, Salarno said all California prisons should have vocational training like the programs at DVI. “You can’t open the door and let them out and they can’t get a job,” Salarno said. “If they don’t have a job, they’re going to go back to their lifestyle.” That lifestyle, according to Price, regularly includes an average fourthgrade education level among prisoners, lack of motivation to work and exposure to other criminals. “We’re trying to provide them literacy, the ability to get jobs when they get out, education,” Price said. “We try to establish a work ethic that, regardless of where they are, when they leave they can go out and get a job and have some of those skills that we develop here in the institution.” Price and Salarno both said that rehabilitation must be part of the prison experience. “Our biggest challenge is the culture change. Trying to get them to un-

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derstand that if you apply yourself in education and learn to read and write, it opens up a world of opportunities for you,” the warden said. Price said everyone at DVI is committed to serving the community of Tracy and the state at large. The day of Price’s interview, DVI housed 2,677 prisoners. He hopes vocational training will change the outcomes for criminals paroled back into the community around the prison. “I’ve got 27 years in the department and I even used to be a counselor. In talking with (prisoners who came back), they said, ‘Man, we can’t get a job because we’re ex-felons,’” Price said. “In our rehabilitation program, we’re trying to establish that — have a good work ethic, respect your elders and your neighbors. Tolerate the different ethnic groups, because we have them all out there in the community.” Price added, “DVI used to have some serious vocational programs. It was important for me to get it back online,” Price said. “We’re doing a good job out here at DVI. And we’re passionate about it.”

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On Creative Marketing Ding Day–A Marketing Tactic with Thomas Franklin

Shop owners with a shop in a metropolitan area see many vehicles with minor dings, dents, scratches and more, all around the city. Many of these drivers have tolerated these imperfections on their vehicle for weeks, months and possibly even years. Why haven’t they done something about these eyesores? Maybe the discomfort of driving around with these flaws simply hasn’t been great enough to motivate them to fix them. Or maybe they imagine the cost, not only in terms of money, but also in considering the inconvenience of being without the vehicle while it’s being fixed, is too great to bother. If a shop mainly relies on insurance or dealerships for work, this may not be an interesting marketing move. But if a shop seeks to bring in new customers and add to a database of marketing targets, this could be a real opportunity to increase the shop’s volume and potential volume of business.

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

In general advertising a collision repair shop is mainly done to make a shop’s name, location and reputation broadly known. When viewers of the ad may not have an accident for three or more years in the future, getting an immediate response is only a peripheral intent of the ad. But the advertising campaign I’m proposing here, aimed at a great many drivers with minor body damage, could produce an immediate volume of responses if handled right. The proposed ad should offer a “Ding Day Special.” The two vital aspects of the ad must be that it will be low cost, and with very little time commitment. For the bold shop owner, the ad could also offer “No risk—your money back if not completely satisfied.” Some owners might hesitate on this one, but statistically the no risk offer increases responses significantly. An additional attraction to be offered by the tech-savvy shop would be an

on-line inquiry and approximate estimate for potential customers. The prospective customer simply uploads a photo of the damage and the shop gets back to him or her with an approximate repair time and cost. To make the “Ding Day” routine work well, a shop must commit significant resources to getting vehicles completed and out quickly at reasonable cost. The real profit should not be in the limited scope of the minor repair. Instead it should be viewed as a sales opportunity. This is a chance to collect many customer information forms filled in with vital marketing information. It has to collect information on all vehicles owned by the customer’s family and employer and any other vehicles in need of repair. It should have his or her insurance agent and possibly organizations the customer belongs to that could be marketing targets. Filling in of the form can’t be simply handing it to the vehi-

cle owner, leaving him or her to omit many important marketing bits of information. The estimator or a welltrained front desk person should make certain most of the requested information is captured. And this is just step one in capturing this vital sales opportunity. While it may be possible to talk the prospect into bringing in another vehicle that needs repair right then and there, this could be shortsighted. In order to keep the turn-around time short, it could be better to solicit work on other vehicles with followup calls. If the customer was pleased with a quick turn-around, the estimator should get a welcome response when making the follow-up call. This call would also be an appropriate time to ask for permission to call the customer’s business and social organization connections to make the shop known to them. This tactic has worked well with Amway

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and Avon solicitors and builds an ever-expanding network of related individuals for marketing purposes. When there is reluctance to pass along phone numbers, these days asking for an e-mail address or even Facebook connection could get an easier response. Perhaps the greatest difficulty getting this tactic to work is the problem of where to advertise and how to reach the greatest number of prospective customers. Today print ads have limited value as people turn away from printed newspapers and get their news on-line. TV ads are generally too expensive, but radio ads could be a real possibility in some areas. Online ads are essential.The ad has to be direct and simple. It should start with the key question: “Are you tired of living with that ugly dent, ding or scratch on your vehicle? For a limited time we are offering a very low-cost, fast turn-around repair to restore your vehicle to its original beauty. And we’re located close enough for you to drop your vehicle off in the morning and pick it up, possibly as early as noon. Call us or e-mail a quick photo of your damage and we’ll give you an approximate estimate immediately.”

CARSTAR Sees Record Revenue in 2013, Plans Expansion of HQ in Leawood, KS CARSTAR brought in a company record $641 million in revenue in 2013, an increase from its $603 million in revenue in 2012. CEO David Byers said the company's 2013 same-store sales were up by 17 percent from 2012 and Carstar added 45 more locations to its multishop operator network in the United States and Canada. Byers said the unusually poor winter weather, which lasted well into 2014, and the increasing complexity and cost of repairs to automobiles buoyed the company in 2013. He expects the company's strong same-store sales to drive the company to record revenue and store additions in 2014. “We expect to break the records from last year again in 2014,” Byers said. “Based on the fact that we're seeing that 17 percent same-store sales number, that's an indication that the business and the industry is performing extremely well and we have no reason to believe that that is going to subside in the second half of the year.” With increased revenue, Carstar is looking to add new senior staff. Byers said the company is recruiting a new chief information officer and a

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CCAR, the Coordinating Committee for Automotive Repair, and ShipMate, Inc. announced the launch of their new website, www.hazmatu.org. This intuitive new site is specifically designed to be easier to use and easier to access for all HazMatU training and resources. CCAR provides tailored information and resources for OEM dealers, collision repair centers, schools and mechanical service centers. The new website communicates updated news, events and services to HazmatU customers in an easier, faster and more userfriendly layout. ShipMate, Inc. works with clients to help resolve their most demanding dangerous goods transportation, environmental management and safety issues. ShipMate provides creative ideas and cost effective solutions to resolve and manage their many compliance challenges.

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new vice president of business development. It is also looking to add new technical resources at its new headquarters at the Pinnacle IV building in Leawood. It relocated from Overland Park in December 2013. Byers said Carstar chose to locate its call center in existing Canadian operation instead of building a new call center in the Kansas City area. Byers said the continuing consolidation of the collision repair industry positions his company well for long-term growth. Over the last decade, Byers said, the number of independently-owned collision repair centers dropped to 35,000 from 80,000. He said the flow of private equity money—Carstar is owned by San Francisco-based private equity management firm Champlain Capital Partners LP—encourages independent shops to sell or join a larger franchising company. “(Independent shops) have two choices: they can sell to one of the consolidators or ... they can join a franchise network like us. Those are really the only two choices they have,” Byers said. “We find we're in a very good growth position because, as the industry continues to contract and consolidate.”

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www.koeppelmazda.com www.autobodynews.com | JULY 2014 AUTOBODY NEWS 31

Northwest Associations with Chasidy Rae Sisk

ASA-NW’s Automotive Training Expo 2014 On March 21 through 23, ASA-Northwest held their 6th Annual Automotive Training Expo (ATE) at the Doubletree Hilton in Seattle, WA. With over 600 attendees and 83 exhibitors, the 2014 ATE marked the first year the event has been sold out. The goal of the event was to provide training for the automotive industry, including owners, managers and technicians, and ATE 2014 really delivered with 62 training sessions, six of which were I-CAR courses, taught by industry-leading professionals. Attendees raved about ATE 2014, and some of the feedback that ASANorthwest has received so far included the following: “2014 was the best ATE ever; my production team all brought back valuable information they could use the first day back to work, and my service advisors made subtle changes in how they function and brought up ARO and GP the first week back. If this improvement con-

tinues, we will pay the entire investment of sending six people to ATE back in three months just off of that, not including what the Techs learned!” “This was a premier event that allowed my team and I to increase our knowledge in all facets of our business as well as an amazing team building experience. It’s a no-brainer that we will be back next year, and I think every shop should attend.” “ATE teaches you to be better at your job.” “ATE is a great way for Automotive educators to get updated on current repair information. Attending is always a positive experience.” Jeff Lovell, President and Executive Director of ASA-Northwest, notes “this year, our sixth year, was sold out and exceeded our expectations. We have grown this event from the first year of 173 attendees to over 600 attendees going to training classes with 12,430 hours of training. We also had 83 exhibitors participate in our expo,

Nissan and Assured Performance Partner for Certification and Consumer Referrals

Assured Performance announced today they have entered into an agreement with Nissan to provide third-party body shop Certification services leveraging their joint effort Certification program. The program will establish a nationwide Certified body shop network and consumer referral program for Nissan. The measures are aimed at helping ensure consumer safety and buyer retention following a collision repair. Nissan will use the Assured Performance turnkey certification and business development program built through a joint-effort approach providing greater value for shops. The official Nissan Certification is based upon the bona fide repair requirements developed by Nissan and Assured Performance in a collaborative effort strictly focused on ensuring that the Certified shops have the proper training, tools, equipment, and facilities to repair Nissan vehicles to manufacturer specifications. The business requirements are essential to help ensure the fit, finish, durability, safety, and value of the vehicles being repaired. Shops must meet the certification requirements and pass an onsite inspection and audit by Assured Performance to earn the official “Nissan Certified Repair Provider” status

and leverage the exclusive access to cutting edge Nissan marketing tools and signage. Among the unique aspect of Nissan’s Body Shop Certification program is their aggressive consumer marketing program. Nissan vehicle buyers will be directly connected with their local Nissan Certified Repair Provider and the shops able to become Certified are marketed directly to the vehicle owners. Nissan Certified shops will be a part of an exclusive turnkey marketing campaign developed by Nissan. Nissan’s program also provides consumer referral elements such as a shop locator and other methods to help refer consumers to only the shops that are Certified to repair Nissan vehicles. The entire Nissan program is administer and managed by Assured Performance. Under the unique joint-effort approach, repair businesses that are Certified by Assured Performance may also officially be considered Recognized by multiple OEMs and consumer-facing organizations through one consistent process. This approach allows both the shops, Nissan, and other OEM’s to avoid duplication of effort, redundancy of equipment purchases, and extraneous inspection fees.

32 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

both Friday and Saturday evening. The expo floor was sold out three months in advance!” On Thursday, the National Automotive Service Task Force (NASTF) joined ATE to host their Spring 2014 General Meeting, and over 100 participants attended to discuss the topic of J-2534 Reprogramming. At breakfast on Saturday, renowned trainer Gary Smith presented “Success or Struggle,” and during lunch, Bryan Dodge taught attendees “How to Have Your Best Year Ever.” Throughout the event, ATE offered an impressive trade expo with exhibitors displaying automotive parts, repair equipment, shop management services, and specialty products. ATE attendees also had the chance to win a variety of door prizes which were distributed throughout the weekend. Lovell believes these types of association-sponsored events are important for members and the industry because it “brings our membership to-

gether to discuss issues affecting our industry, such as getting new technicians into the industry, environmental issues, legislative issues and networking. It is so gratifying to have ATE grow each year and that it has established itself as the West Coast’s premier training event. Our staff and volunteers help make this an exceptional event that provides quality training to all levels of the service and repair industry. In addition to ASA-Northwest, sponsors for ATE included the Northwest Tire Dealers Association, Auto Shop Solutions (the official social media sponsor), and “Parts & People Northwest” who was the official media sponsor of the event. ATE 2015 will be held on March 20-22nd at the Doubletree Hilton in Seattle, WA. www.asanorthwest.com 253-473-6970

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Historical Snapshot with John Yoswick

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

Highway to Hell, Blueprinting, Rekeying Estimates, State Farm and OEConnection 20 years ago in the collision repair industry (July 1994) If the collision repair industry does not get clearly focused on what the mission is, it will be doomed to dance to whatever tune the insurance industry wants. Probably something like that old AC/DC hit, “Highway to Hell.” Bill Clinton was elected president of the United States because he kept the country focused on the economy. (His slogan, “It’s the economy, stupid,” became famous. To win in their ongoing economic struggle with the insurance industry, collision repairers have to concentrate on the car owner. “It’s the car owner, stupid.” Collision repairers are too busy tripping over their own swords to realize that pleasing the car owner every time is a key to survival. Instead, many are more worried about pleasing the insurance companies. They claim that since it’s the insurance companies who are writing the checks, it’s the in-

surance companies they should be satisfying. Ultimately, though, it’s the car owners who write the checks. They, after all, pay the insurance premiums. I predict that in another 10 year, the American public is going to wake up and realize how monstrous a financial institution the insurance industry has become. – excerpted from editorial by Sheila Loftus, editor of Hammer & Dolly published by the Washington (D.C.) Metropolitan Auto Body Association, July 1994

15 years ago in the collision repair industry (July 1999) CIC’s “Research and Development Committee” is continuing its exploration of a ”new body shop operating model” to improve customer service and “cycle time” – the length of time between the accident and the time repairs are completed and the insurance file is closed.

At the meeting in July, committee chairman Randy Stabler said the average repair claims process is 10 days – including four or five days before repairs begin. His committee, he said, is looking into ways to reduce the inefficiencies before repairs actually begin, including the current estimating process. “All of the things that are bottlenecks in the repair process are a derivative of an inaccurate estimating system,” Stabler said. “The back-end repair process is never going to be efficient and accurate if we don’t start out with an accurate blueprint.” Among his committee’s initial recommendations are: - Improve the estimating systems so that they create that “blueprint for repair” in plain language easily understood by technicians and vehicle owners. “If the estimate is more than just an accounting of what we’re going to

charge or pay to fix the car, I think we’re going to have faster cycle times, happier consumers and lower overall costs for everyone,” Stabler said. - Reduce inconsistency in parts names and labor terminology used by the estimating systems and vehicle manufacturers. - Eliminate confusion and inefficiencies by having insurers distribute their pricing guidelines. - Stop insurer “micro-management” of each individual repair charge. “Can you imagine someone going in for surgery, and the doctors finding something else that needed to be done but not doing it because they had to stop and call for authorization?” Stabler said. “That’s not an efficient model. ‘Pull it and we’ll come back and see the damage after it’s pulled’ is a flawed notion. That in the long run does not save the insurer or consumer money.” – As reported in The Golden Eagle. It was at least five years before

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the “blueprinting” aspect of “lean processing” was being widely discussed in the industry, and still 15 years later it is far from universally adopted by shops.

10 years ago in the collision repair industry (July 2004) The Collision Industry Conference (CIC) “Information Technology Com-

Cindy Schnier, co-chairman of the CIC Information Technology Committee in 1999, said her committee’s research indicated that rekeying of insurer estimates by shops was costing the industry more than $17 million a year in wasted labor

mittee” reported that rekeying estimates that shops could be receiving electronically from insurers is costing the industry an estimated $17 million or more each year.

Based on a survey of 44 shop owners at a previous CIC meeting, the committee believes that about 28 percent of the 9 million auto claims require rekeying of estimates, which takes an average of 21 to 33 minutes per estimate. Assuming a wage of $20 per hour for the shop employees rekeying the estimates, “that basically says there are 2.52 million estimates that are rekeyed each year by body shops, costing a minimum of $17.64 million,” Cindy Schnier, co-chairman of the committee, said. –As reported in Autobody News, July 2004. In 2013, CCC Information Services and Mitchell International launched services that enable a participating insurer to enable shops not on that insurer’s DRP to download the insurer’s prepared estimate, eliminating the need for the shop to rekey the initial estimate.

5 years ago in the collision repair industry (July 2009) Shop owner response was mixed last week to the announcement by State Farm that it was no longer requiring its Select Service shops in California and Indiana to use OEConnection for electronic parts ordering.

Debbie Moore of Diamond Collision Services in Avon, Ind., said that despite some glitches with the system over the past year, it has eventually worked well for the shop. “We’ve been using it on all our orders, not just State Farm jobs, and will continue to do so at least for now,” she said. But a Southern California shop owner who asked not to be identified said State Farm’s decision came at an ideal time; his shop’s server had just crashed and he now wouldn’t have to reload the OEConnection parts ordering software on the replacement computer. “It’s kind of been a pain, and some of my dealers really didn’t want to mess with it,” he said of the parts ordering system. “You almost always had to do follow-up phone calls (to the dealer) with it, so if I have to do that anyway, I can do without it.” State Farm’s George Avery said although the insurer was “suspending” the requirement to use electronic parts ordering and had no plans to roll such a program out nationally, State Farm saw the test as valuable because it demonstrated electronic parts ordering “has value.” He noted the Select Service agreement still gives the insurer

the right to require electronic parts ordering. “We encourage the repairers to use it if they would like,” he said. “It works. It has advantages. Now that the test is done, we know moving forward that we have already tested that functionality.” State Farm began the test of electronic parts ordering in two markets in 2007, with a half dozen automakers offering the insurer parts discounts through the program. The program was rolled-out in 2008 to all Select Service shops in the two states, but the number of automakers offering discounts continued to decline until State Farm halted the discount portion of the test earlier this year. – As reported in CRASH Network (www.CrashNetwork.com), July 20, 2009. State Farm subsequently said it seemed inappropriate to seek OEM parts discounts at a time when automakers were struggling economically and in some cases filing bankruptcy. But it saw enough potential benefits to electronic parts ordering that it sough proposals from companies to develop an electronic parts ordering system – which led to the launch of State Farm’s mandated use of PartsTrader in 2012.

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OH’s Three-C Body Shops Has Filed Over 100 Shortpay Lawsuits Against State Farm by Chasidy Rae Sisk

Three-C Body Shops, a four-facility, multi-shop operation in the Columbus OH, area, has filed multiple lawsuits against State Farm Insurance Company in an effort to recover alleged shortpay losses. Since November 2012, Three-C has filed 104 suits against the insurer, all of which ac-

Three-C Battles State Farm Over Estimate Discrepancies on Total Losses

cuse State Farm of engaging in “repeated underpayments for services generally rendered and charged to their customers when their vehicles have been deemed total losses.” Currently, owner Bob Juniper is seeking $405,000 in recovery, including legal fees and court costs, of which State Farm previously agreed to pay $31,565.03. Juniper notes that he rarely has problems with insurers refusing to pay the full cost of repairs because “we negotiate with them pretty well. We spend a little time with their adjusters and can generally get to where we need to be. We may not always get the

Three-C Body Shops has specific areas to interact with and educate customers

full amount of our estimate, but we get close by compromising until we come to terms we can both agree on.” In fact, Juniper hasn’t experienced difficulty from State Farm in paying for repairs either. Three-C’s shortpay lawsuits are associated with costs related to vehicles that are deemed total losses which the insurer objects to paying. Juniper provides the

following example: if the shop writes a $10,000 estimate on a car valued at $11,000 and the insurer’s adjuster estimates $4000 in damages, the shop has to perform many additional steps as part of the process of writing a thorough estimate. Moving the disabled vehicle, disassembly, taking inventory of parts, recycling hazardous waste, and performing a comprehensive safety check to test for damages are just a few of the many steps needed in order to document the car as a total loss; however, when the adjuster returns to discuss the estimate and declares the vehicles to be a total loss, State Farm only wants to pay the cost of storage and a few minimal charges, though all of these processes are required. Other processes which Juniper feels shops should be aware that they can charge for include suspension checks, rough access, preparing the pack-totaled vehicle, glass clean-up, and labor. Meanwhile, Three-C has time associated with the estimate for which they expect (and deserve) to be compensated since they’ve lost time being involved with a job they aren’t being paid for, yet State Farm wants to pay only the minimum charges. Juniper explains, “our charges are necessary to offset our lost opportunity. When we’re working on these total losses, that’s time we can’t work on jobs where we could make money, but the insurer does not want to understand that—that’s why we have to sue them. Other shops also have to perform these steps, and they should ask why they’re not getting paid for all of their time and hard work!” Over the past three decades, Juniper has been an active voice in the industry, speaking out against insurers and their attempts to exert control over the repair process. “Insurers have been beating on body shops for many years. They used to just pay the bill, but over the years, they’ve decided that they don’t want to pay the labor times and rates. Instead, they want to argue about which steps are necessary because they are trying to control the repair itself. This industry has been beat down so far that many shops are going out of business; insurers have found the bottom on pricing and can’t push anymore because there’s nothing left. We have to charge them for our time because we can’t afford to work for free!”

36 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

Though Juniper admits that his relationship with State Farm is currently less than perfect due to the pending lawsuits, he hopes that will change after matters are settled. He also believes that he is taking a necessary step towards preventing shortpays in the future. “Nationally, there are over 70 body shops with pending shortpay lawsuits right now, and we need to win these battles to change things. With enough victories, maybe the insurers will change their behavior.” Three-C Body Shops asks their customers to sign documents, such as the Authorization to Repair and Assignment of Proceeds, to enable them to pursue proper compensation when the need arises. Juniper explains that they “involve the vehicle owner instead of dealing with the insurance company directly because the insurer is bound by a contract with the insured, but the problem is that many consumers don’t know the laws. Some are savvy, but others don’t understand or want to be involved; that’s what the insurers take advantage of and the reason that lawsuits are necessary… It’s

not convenient, but this still has to happen. I don’t see any other alternative.” A family-owned business since opening in 1956, Three-C Body Shops works on around 250 vehicles monthly, yielding $700,000 to $800,000 in sales. They have never participated in DRPs because when the insurers introduced these programs in the early 1990s, Juniper foresaw the negative aspects associated with them, predicting that they would start off good and get worse over time. Though he spoke out against DRPs, the industry moved forward, and he believes “most DRP shops now wish they’d never gotten involved, but we weren’t loud enough with our objections. DRPs have caused many body shops to go out of business. Once you’re dependent on them, you can’t afford to lose them—you’re unable to walk away because you’ve become reliant on the insurance companies.” Now, Juniper fears that insurers are using parts procurement systems, such as PartsTrader, to exert even more control over repairs, and he worries that insurers will take over parts See Shortpay Lawsuits, Page 45

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Attorney and AASP-MN Lobbyist Kevin Walli is Minnesota’s Shop Champion by Ed Attanasio

Kevin Walli has been the lobbyist for the Alliance of Automotive Service Providers (AASP-MN) for the past 20 years. He is a shareholder in the law firm of Fryberger, Buchanan, Smith and Frederick in St. Paul, MN. We got in touch recently to discuss the recent history of legislation that has impacted the collision industry in Minnesota in the past five years.

Q: How did you become the lobbyist for the AASP-MN? KW: I’ve been representing the collision industry in Minnesota for 20 years now, after working in government affairs for many years prior to that. A friend of a friend knew someone at the AASP-MN and told me they were looking for some representation and more support at the Capitol. Over the years, we’ve been working hard to provide more balance between the interests of the collision industry and the insurance industry, because there’s an ongoing tug-of-war there obviously. I believe that there has been a constructive approach by the two industries to try and

communicate with one and other. So, what we’ve done for several years running is that we sit down usually a few times per year to air out our issues and sometimes there’s a response from the insurance companies that indicates Kevin Walli, Esq. that maybe we can has been the lobbyaddress some of ist for the Alliance these issues ourof Automotive Service Providers selves. But in other (AASP-MN) for the cases, we end up past 20 years, so saying let’s agree to he’s seen the ongodisagree and arm ing tug-of-war bewrestle it out at the tween shops and insurers from the Capitol. Capitol’s front row

Q: You’ve dealt with legislation regarding steering? KW: Yes, and we’ve had some success with legislation concerning steering. We’ve been able to find more clarity on the laws dealing with steering, so that we can understand what steering is and provide some direction in the law. The purpose of the language is obviously to protect con-

think there’s a sense with the body shop owners in Minnesota that there are more and more situations in which insurers are dictating what estimating systems and materials they should use. And we’re concerned that it’s a slippery slope where the insurance companies will take away the autonomy of the collision repair shop owner. We had some proposed legislation that would have restricted insurance companies from specifying or requiring that repair shops have to utilize specific vendors, manufacturers, suppliers, business platforms or internal processes and we got the bill introduced and some great authors for the bill both in the House and in the Senate. But ultimately, we couldn’t get movement for the bill on the Senate side. The Chairperson there (Senator Jim Metzen, who was also a co-author of the bill) was uncomfortable with the onslaught of input he received from the insurance industry. Some of what they had to say was legitimate, and some was not, but that’s not unusual. When we proposed the legislation and it was circulating at the Capitol, the insurance industry came

sumers from being steered and we’ve had some success with that. Steering has always been an issue and it still is in many ways, so we’ve developed legislation to address that. We sought language a few years ago to prevent an insured or claimant from being required to take their vehicle to a particular drive-in claims center and we were able to get that changed. We also added a section that restricts an insurer from specifying the use of particular vendors for the procurement of parts or other materials necessary to perform a satisfactory repair. Now this very issue is still being contested.

Q: There’s been a battle in Minnesota between the insurance companies and the body shops, because the insurers want the shops to use certain parts, products and management platforms, correct? KW: Yes, we had some legislation this year that we did not succeed with (House File 2690/Senate File 2542the Auto Repair Claims Processing Bill) that would have prevented insurance companies from dictating certain business practices at repair shops. I

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forward and said that they hadn’t heard of this bill. They said “Hey—we’ve had this practice for several years of discussing legislative proposals with the collision industry in advance of the Legislative Session.” They argued that they hadn’t had such a discussion on this proposal. In addition, this year’s Legislative Session was shorter with very tight deadlines for getting bills heard, so that also played a role in the death of the bill. But, we’re going to bring it back in a new form, after getting some valuable feedback from the insurance side. They said that we were trying to kill the DRP system, which was never our intention at all. So, we have to address that issue and re-work some of the language the next time around, so that it’s clear we’re not trying to change the fundamental relationship that exists between body shops and insurance companies. Q: I imagine you haven’t been supportive of programs like PartsTrader? KW: Exactly, because our concern has always been that if a body shop is required to use a particular parts vendor, the shop doesn’t have a relationship or

a history with that vendor. As a result, parts that aren’t appropriate for the vehicle can enter the picture, because the communication between the shop and the vendor is not present. Shops spend a lot of time and effort to developed business relationships with particular parts vendors and then all of this goes out the door when they are forced to work with someone else they don’t know anything about. In addition, we have had an ongoing dialog with the Department of Commerce regarding its enforcement and there is an investigation that’s open in this matter and the Department of Commerce is continually gathering information about how PartsTrader system is working or not. We were hoping that the statute would provide enough guidance for enforcement action. But now they’re gathering information and studying the marketplace and as an industry we’re trying to provide information for the Department of Commerce in this matter. Some time ago, we also added language to the same statute that “prohibits an insurer from unilaterally and arbitrarily disregarding a repair operation or cost identified by an estimating system…” This means, if you’re

using an estimating system that you and the insurance company have both agreed that it’s acceptable to use, then they can’t deny the repair operation and cost without some clear justification. This kind of shifts the burden to them and it’s now their responsibility to prove the repair practice should not be recognized.

Q: What other issues have you’ve tackled on behalf of the members of AASP-MN? KW: We had to deal with some tax provisions in recent years. There was a sales state tax on paint and supplies for shops when they were purchased at wholesale. But, we were able to shift the point of imposition on the tax from the wholesale to the retail level. That way, shops are able to pass that tax onto the consumer. The repair shops were eating that tax cost before. Most of the other states were already doing it this way and Minnesota was kind of an island in that regard, so the legislation was much-needed.

Q: You have an annual Legislative Day where shop owners can meet with their legislators, right? KW: We’ve been doing a Day at the

’

Capitol on occasion, where we meet with our members and give them an orientation of how things work at the State Capitol. Then, we ask them to talk with their Representatives and Senators and walk the halls to discuss the legislation we’re working on. The insurance industry is extremely wellrepresented and they have a lot very smart people working for them, both in-house people as well as consultants that they’ve retained. The sheer numbers can be rather daunting at times, to be honest. So having the shop owners converging at the Capitol and meeting with their Legislators puts a practical perspective on our issues--so it’s been a very positive thing. Plus, it helps me to do a better job for the AASP-MN, because after these Senators, for example, have met with one of their constituents, we can follow up to emphasize the point made by the shop owners.

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NACE 2014: In its 32nd Year, It’s Still a World Collision Repair Event Collision repair has changed, and so has NACE, says ASA. The International Autobody Congress and Exposition (NACE) has been fine-tuned to ensure collision repairers get the very latest and greatest information available. Much will be new this year at NACE, which for 32 years has been “the world’s premier event for collision professionals.” NACE 2014 will be held July 30Aug. 2 in Detroit.

What’s new includes: • 20,000 square feet dedicated to live demonstrations of welding, cutting, grinding, sanding and painting • Expanded and enhanced training classes weighted toward technical training • Manufacturer-specific classes • Expanded I-CAR class offering • Outstanding lineup of exclusive tours (see list below) • A bigger, better MSO Symposium – which has been renamed the Collision Repair Executive Symposium (CRES) “NACE is the only show in the United States solely dedicated to the collision repair industry. It’s a show for repairers about repairers. This year’s event is focused on ensuring that repairers have access to the information, tooling, training and equipment they need to repair today’s vehicle as well as those in the future,” said Dan Risley, Automotive Service Association (ASA) president and executive director. “As an example, Ford’s recent announcement of its aluminum-bodied F-150 is causing the entire industry to take notice and seek information and training. As a result, there will be several different classes at NACE offering aluminum repair information and training.” Risley added, “Another example is the Collision Repair Education Foundation (CREF). They reported recently that the Alcoa Foundation, the philanthropic arm of Alcoa (which makes aluminum), awarded a $60,000 grant that will provide aluminum repair-focused training and technical presentations to high school and college collision instructors, and industry professionals attending the 2014 NACE event.” Read more about CREF and the Alcoa Foundation grant at: http://collisioneducationfoundation.org/press-releases/. Other manufacturers will also offer presentations at NACE on aluminum repair – including, but not limited to, Ford Motor Co., Audi, Pro Spot, Car-O-Liner, Chief and 3M. Ford will have a class that

will provide 2015 F-150 aluminum repair information and details on its National Body Shop Program. There will be at least nine classes covering aluminum, including sessions on aluminum welding and repair and a class explaining the differences between aluminum and steel. For a complete list of classes to be offered at NACE, visit: www.NACEexpo.com. Risley said, “Alcoa’s commitment to educate instructors and the collision repair industry on aluminum repairs is unparalleled. In addition to the classes and material presented by I-CAR on aluminum, we will be assembling a showcase on the show floor highlighting current model vehicles that are aluminum-intensive. In addition, attendees can see live demonstrations on proper aluminum repair techniques to further supplement an already outstanding lineup of classes offering aluminum information.” The rebranded Collision Repair Executive Symposium (CRES), formerly the MSO Symposium, has been an extremely popular, sold-out event during NACE since it premiered in 2011. It traditionally has drawn attendance from the largest multi-shop operators in the collision repair industry. But the all-new CRES business event will cater to a broader group of collision repair executives, allowing it to be more inclusive of some of the best, as well as the largest, operators in the marketplace. This year’s event includes key changes in content, including a focus on management, operations and participation from insurance company executives presenting leading information on industry trends. CRES is designed for collision repair multi-shop operators, as well as operators looking for high-growth strategies, mergers and acquisitions. The symposium is scheduled for Friday, Aug. 1. Attendees will experience the history of the Motor City through a host of tour options, including: • The General Motors Co. Heritage Center • Chrysler Museum (which is closed to the public) • The Henry Ford Museum and Greenfield Village • Windsor, Canada • The Ford Motor Co. F-150 Plant • Chevy Volt Plant • BASF Color Trends

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• NSF Technical Tour • OnStar Facility In addition to the tours, there will be other events and recreational outings for spouses, guests and families. Among such events are Detroit Tigers baseball games, river and city tours, and casinos. “Since NACE will be held in the Motor City, original equipment manufacturers will have a bigger presence than ever,” said Risley. He also pointed out that NACE is part of a new Industry Week with an overriding purpose to bring the industry together. Among industry organizations that will host meetings, events, and/or exhibit during the week are I-CAR, CIC, ASE, CIECA, NABC, SCRS, AMI, CCIF, OEM Collision Roundtable, CREF, Alcoa Aluminum Transportation board, MERA, AASA and ETI. “This gathering of the industry – plus the fact several of the world’s major car manufacturers are headquartered in Detroit and will participate in Industry Week – creates tremendous opportunity for education, collaboration and networking,” said Risley. “Our focus is giving the repair industry an event – and a week – that

is dedicated to them. It will be good to see the entire industry come together.” Also part of Industry Week is CARS, which is for mechanical repair professionals. This repairer-focused week will start Monday, July 28, and run through Saturday, Aug. 2. The Collision Industry Conference will be held Tuesday and I-CAR on Wednesday. The Canadian Collision Industry Forum will be held Wednesday afternoon. ASA’s NACE | CARS Expo will be held Thursday and Friday, July 31-Aug. 1, with education beginning Wednesday, July 30, and ending Saturday, Aug. 2. Tuesday will feature a CIC quarterly meeting. Wednesday will highlight the I-CAR Conference and Gala 35th Anniversary Networking Reception. On Thursday and Friday, the NACE | CARS Expo will take place, along with numerous NACE and CARS business and technical sessions, the Collision Repair Executive Symposium (CRES), the Technology & Telematics Forum, the Automotive Management Institute (AMI) graduation ceremony and on-site I-CAR training. Technical presentations end at 3:30 p.m. Saturday, August 2.

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Southwest Associations with Chasidy Rae Sisk

New Auto Body Association of Texas Launches June 18, PartsTrader Provides Impetus, Statewide Members Invited to Join The newly formed Auto Body Association of Texas (ABAT) will be holding their Inaugural Meeting on June 18th at the Henderson Civic Center with guest speaker Barrett Smith, President and Founder of Auto Damage Experts Inc. Burl Richards, Acting President of ABAT, took some time to explain how the association is getting started and what they hope to achieve through its development. Several months ago, a local jobber, Chad Neal of Paint Works in Tyler TX, held an educational seminar on estimating which included a number of Eastern TX shop owners. Neal and Richards had previously discussed the need for a trade association in their area, but when Richards tried to organize an association meeting a year earlier, he garnered little interest and participation. Thus, when Neal held the estimating seminar earlier this year, they saw it as

the perfect opportunity to present their idea for a new association. Richards believes that a contributing factor to the positive reception they received this time around was “the fact that PartsTrader had begun to be implemented, and these local shops were truly Barrett Smith of beginning to see ADE will be the that we had better featured guest join together or the speaker at ABAT’s Inaugural Meeting insurance compaon June 18 nies were going to continue to control more and more of our businesses… [Neal and I] basically capitalized on the opportunity that presented itself with shops from all over East Texas being present.” For the past three months, Richards has been working with his local attorney to set up the Corporate

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in ABAT. According to Richards, “their presence, being from an outside area, really motivated others to get involved.” Though ABAT was originally going to be called the East Texas Auto Body Association, they were unable to obtain the name, opting instead for ABAT which Richards feels “was just meant to be… [it has been] fitting as we have received interest from shops and vendors throughout the state. We welcome members from all over Texas.” While ABAT is still in development, Richards notes that their main goal thus far is to “take back our shops. We repair vehicles, and insurance companies sell insurance; it’s that simple! Who knows better and is more qualified to make these repairs than us? We work for the customer, so it is our responsibility to properly repair and restore their vehicle to pre-accident condition.”

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ABAT will also strive to provide more education, both from a technical standpoint and as it pertains to shops’ rights without solely relying on what insurers mandate. Along with that, ABAT plans to investigate legislation that will promote beneficial change for the consumer, rather than the insurance companies whose focus is on saving money. Richards add, “we will address more concerns legislatively as we progress as an association and begin identifying specific issues. For example, profit margins have decreased over the years, and we must become more profitable in order to provide the training and equipment necessary to perform repairs to the ever-changing technological advancements on today’s vehicles – and that can honestly be accomplished by being compensated for all repairs and processes that must be performed (not just the hand-picked operations that insurers want to pay for).” Since their initial meeting early this year, Richards has been very pleased with the number of repair professionals who have expressed interest in ABAT. “The response that we have received has been more than I could have imagined. Going back to

just six months ago, I felt like I was on an island by myself, and now I have more faith and excitement about the future of our industry than ever. We will put the customer first, and everything else will take care of itself; good things are about to happen!” Smith also took time to speak about the upcoming meeting, and he is excited to speak at ABAT’s meeting with the “intent to generate excitement and to enlighten and edify Texas repairers in several areas.” Smith plans to discuss three main topics, including Federal Antitrust Laws, Procedures and Labor Rate Surveys. To begin with, he explains that o Federal Antitrust Laws “are fairly simple, yet often misunderstood, and have been used in the past to stifle conversation between repairers out of fear of punishment. I will be giving a layman’s overview of the true nature of the laws, why they exist and how to avoid breaching them regarding what can and cannot be discussed. Federal antitrust laws exist to promote and protect competition. They are to govern the activities of businesses in our country and are designed to be safeguards against activities that may be harmful to the consumer, business

competition and the economy.” “Procedures are also an important topic because many required repair processes and necessary materials go unpaid, and these overlooked and often omitted processes and create significant liability issues for the repairer that need not occur.” Smith plans to highlight these important aspects of the business operation and how to avoid these unnecessary liabilities. He will also be introducing the Variable Rate Survey (VRS) program offered by the National AutoBody Research, Inc. which “provides a viable and labor rate survey to show repairers, consumers and insurers the range of labor rates based upon the individual rates and allowances of participating repairers in a given area. Ranges of labor rates from an area comprised of repairers within mere miles to participating repairers across the country. The VRS not only provides participants the labor rates of repairers within various markets, the program shows them in real-time and can change based upon a repairer’s change in rates, training, certifications, equipment and such. This defeats those socalled surveys which lump all repairers together and provides the

same labor rates for the best of the worst to the worst of the best!” As the President and Founder of Auto Damage Experts, Inc., Smith believes that one of the most valuable services his company offers is Repairer Consulting and Coaching for those who offer high quality workmanship and services. He states, “regardless of their size, all ADE consulting/coaching clients have the same fundamental characteristics in common: integrity and the courage and conviction to do the right thing for the right reasons. What we do is to help them to step outside the box that is often built around them by ‘interested third-parties’ and to see things in a more common sensical and pragmatic manner. This enables them to modify their business acumen and methods of conducting business which is found to be much more profitable and enjoyable.” Smith hopes to share his experience in this area at ABAT’s meeting in order to aid this developing association and its members.

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Niebling Auto Body: 120 Years and Still Going Strong in Missouri

company. Soon, Louis Niebling Carriage and Wagon Manufacturing was If a body shop is in existence for more constructing car bodies for the Mors. than 30 years, people view it as a sucAt a time when the average salary was cessful business and justifiably so. around $40 a month, the Mors cost beBut, if a shop has been in continuous tween $3,000 and $6,000. The Mors operation for more than 120 years— line was eventually discontinued, but well, now it’s more like a landmark Niebling kept moving forward and and a big part of automotive history. looking for another dependable source And that’s why folks in Missouri and of revenue. throughout the country know of By re-inventing his business model once again in 1918, Nielbling Niebling Auto Body, because it’s been a household name since 1892, when a began manufacturing wooden truck bodies while his shop grew to 13 employees. These wooden trucks were built to order in the days before customization was prevalent. Customers brought in a bare chassis with a dashboard and a hood and Niebling built the body based on the owner’s specifications. On the shop’s ground floor, there was a carpentry shop, blackNiebling Auto Body opens its doors back in 1892 in St. Louis, MO smith shop and assembly German wagon maker opened his own area. Each completed body was sent wagon shop in St. Louis, MO. to the second floor by a hand-operated It all began when Louis Niebling elevator. There, the trim shop made immigrated to the U.S. and moved to cloth tops and upholstery as well as West St Louis in 1887. Horses, wagons completing the necessary painting. and carriages ( and good old walking) At about the same time, Louis were the mainstays of transportation Niebling’s son, Erwin, joined the busiback then, as the industrial revolution ness and subsequently focused more on shifted into high gear. Gasoline-powmechanical repair. The wagon-making ered vehicles were only for the rich and business dwindled rapidly and Erwin eccentric in the late 1800’s, just like the decided to move the shop to a more Teslas or Bentleys of today. Sure, autoresidential neighborhood in 1927. His mobiles were only for a select few back two sons, Warren and Ray had grown then, but the times were a-changing and up in that shop and then joined him in pretty soon everyone wanted one of the business at the end of World War II. these noisy, cantankerous and expenWhen Erwin retired, the sons remained sive machines. partners and expanded by opening a At the beginning, the shop was body shop operation under Warren’s busy and flourishing, but then a tormanagement in 1968. nado hit hard and completely deWarren and Ray both had sons stroyed Niebling’s business in 1895. and like their fathers and grandfathers, But, it didn’t faze him one iota, and they grew up in the family business pretty soon Niebling started up again, Jim with Warren in the body shop and building a new two-story shop. A Tom with Ray in the mechanical shop. decade later, Niebling’s shop was When Warren and Ray retired in 1986, building truck bodies for Mack’s fiveTom and Jim became the managing ton capacity trucks, in which the partners. Jim passed away in 2010 and driver sat over the engine, and pretty his cousin, Dave Dolphus (who has soon wagons and carriages were no worked at Niebling Auto Body since longer a business focus for Niebling 1985), now manages the operation. and his crew. Dolphus, 59, is what they call a A year later, the city had its own car “lifer” in the collision repair industry. manufacturer when the St. Louis Car He’s been running the show at Niebling Company started producing the Amerifor the past five years after working can Mors under license from a French there for 30 years. Today, he manages by Ed Attanasio

44 JULY 2014 AUTOBODY NEWS | www.autobodynews.com

14 people as they fix 65-80 cars monthly. Dolphus has a Masters Degree in Public Policy and Administration, so his career plan surely didn’t involve collision repair, at least at the outset. “Getting involved in this industry was the furthest thing from my mind,” Dolphus said. “But one day, my cousin asked me to come in and help and I guess I wasn’t paying attention, because I just kept staying here. At first, I was doing paperwork and handling supplements and to be honest I was looking for the door. But, eventually I learned the business side of auto repair and realized that this was going to be my job for the longterm.” Dolphus has seen the collision game change several times during the three decades he’s been in it, he said. “Back in the 1980’s, we could make good money by just opening our doors, but no longer. We have a lot of competition now and everyone is vying for these cars. To make it today, you have to concentrate on things like training, certifications, the technology, marketing and community involvement, for example.”

The relationships with insurance companies have changed over the years as well, according to Dolphus. “We work with several insurance companies and DRPs and it makes up around 40%

Dave Dolphus has been running Niebling Auto Body since 2008

of our workload, which is still too much as far as we’re concerned. We’re always looking outside the DRPs for customers that are ours, instead of theirs. DRPs changed several years ago requiring discounts on parts and paint caps and at that point we decided to cut them back to a certain degree.” After 120 years, Niebling Auto Body is still a fixture in St. Louis and there are no plans to alter their formula for uninterrupted success, Dolphus explained. “We’re not going anywhere

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anytime soon. We have a few managers here that are exceptional and when the time is right for me to step back, I am pretty confident that they can take the reins and do very well. There have been numerous changes in this industry, especially within the last 15-20 years, but we’ve been able to adapt to them and benefitted from many of them. Things like personal computers, aluminum in these newer cars and other innovations have impacted this business. But in the end, it’s still about doing a good, honest job for our customers. Those types of things are timeless and they will never change.”

distribution also, leaving shops as labor providers only and inhibiting them from supplementing their incomes with the price of parts. Because of this, many shops will be unable to pay some of their personnel, such as office staff, customer service teams and detailers, whose salaries aren’t paid by the estimates but by parts profits. “If the insurers absorb this discount, we won’t be able to afford these employees, so customer service will decline, and that will be the be-

ginning of the next big problem for our industry,” Juniper predicts. Juniper notes that the industry did not stand up for themselves when DRPs were developed and they have since regretted it; he believes the industry will really regret it if they do not step up to inhibit parts procurement as it will lead to poor customer service in the collision repair industry, forcing repairers into a position where they are not making any money and may be unable to pay their bills. He asks “when and where does the collision industry say no? Because it’s time!” A State Farm spokesman was invited to comment on these charges

parently he did this once, got away with it, so he decided he’d just keep the car.” Barks says not only did 41 yearold Ben Taylor take the Pontiac for the weekend, but he documented it on social media: “I came to find out he was actually putting pictures on facebook where he was kind of modeling on the vehicle, and showing off to his friends.” Taylor’s boss, along with Hazelwood Police, presented their evidence to Taylor, but he still denied it, until they showed Taylor his own meal receipts, left in the car.

“Eventually, he did come around and admit to it,” says Hazelwood Police Lt. Ron Livingston. Ultimately, police say Taylor put 78 miles on the car, and caused $3800 worth of damage. Barks said, “Apparently he decided to go off-roading, and the right front and left front of the vehicle were messed up. We repaired all that, took care of it, we actually bought the car from the customer in order to make up for it, so there was no damage or loss for them.” The Pontiac is now a rental car, and its former owner is now a regular

Continued from Page 36

Shortpay Lawsuits

MO Shop Porter Steals Car, Joyrides Off-Road, Posts His Fun

Police say a Hazelwood auto body worker decided to commute in a car stolen from his employer, Complete Auto Body at 6041 N Lindbergh Blvd, Hazelwood, MO. Over the weekend, a coworker spotted the suspect driving the 2003 Pontiac Bonneville around his neighborhood. His employer checked surveillance, and all the evidence was right there. Complete Auto Body General Manager Kurtis Barks said, “You see a vehicle parked behind our dumpster, watch the guy strategically move the gate, and then take off with our car. Ap-

but declined due to unfamiliarity with the specifics of the cases.

Fire Above Body Shop on Route 31 in Washington Twp. A fire which occurred in an apartment above Red’s Body Shop on Route 31 in Washington Twp., NJ, was reported at 4:30 p.m., May 26, according to the website, and Washington Township fire officials stated that the fire was out before 4:50 p.m. No one was injured in the apartment, located next to Suburban Propane, according to the Washington Township Fire Department. The cause of the fire is still under investigation, officials said.

customer. That’s left Taylor, who worked as a porter and car cleaner, fired and behind bars, charged with Stealing a Motor Vehicle, a Class C Felony. Barks adds, “We’re very thankful to have great employees that actually stood up for us, and told us, and we had the right surveillance in place to catch them.” The theft happened back in November, but charges were just filed. That’s because police were investigating a similar crime, in which Taylor was a suspect. However, there was not enough evidence to charge him in that incident.

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I-CAR Gold Class and ASE-Certified Shops Rewarded at NACE | CARS

NACE | CARS, held at COBO Center in Detroit July 30-Aug. 2, will offer special recognition to attendees who have a proven commitment to collision repair training demonstrated through

achievement of I-CAR Gold Class recognition or ASE Blue Seal certification. Collision and Service Repair facility personnel that belong to an I-CAR Gold Class business or hold the ASE Blue Seal certification will receive a 50 percent discount on the training and conference sessions at NACE | CARS

2014. In addition, any individual that is currently I-CAR Platinum or an ASE Master Technician will be entitled to the same 50 percent discount. This discount includes individual sessions through the Super Pass that covers sessions during the entire conference. “We want those who have achieved the highest levels of industry-recognized training and certification to be rewarded for their achievements,” stated Dan Risley, ASA president and executive director. “This is a great way to highlight an elite group and to encourage their ongoing technical and business education.” “As technology advancements dictate a necessary evolution in repairability, more collision repair businesses than ever are adopting a learning culture to ensure that they are able to per-

form safe and quality repairs,” stressed John Van Alstyne, I-CAR CEO and president. “I applaud NACE and CARS for recognizing this commitment to education and knowledge by giving back to the businesses and individuals who train.”

“ASE’s relationship with NACE and CARS goes back to the very beginning of the event, and we are pleased to once again be a part of this significant educational opportunity for the industry,” said Tony Molla, ASE vice presi-

MERA Joins the Excitement at NACE | CARS 2014 The Motor Equipment Remanufacturers Association (MERA) has joined a growing coalition of leading organizations supporting NACE | CARS 2014 Industry Week in Detroit this summer. MERA will host a Remanufacturing Technology Expo on Thursday, July 31, from 10:00 am-4:00 pm in the Ambassador Ball-

room in the COBO Convention Center. Dan Risley, ASA president and executive director, stated, “We are excited to have MERA join us in Detroit. This is a very important organization in the automotive market and their participation, content, and attendance is beneficial to Industry Week. The overriding purpose

Caliber Acquires MSOs in Los Angeles and North Carolina

Caliber has acquired two multiple collision repair shop operators with a total of nine locations—four in Los Angeles and five in Raleigh, NC. The North Carolina acquisition is the first location for Caliber in the eastern U.S. Caliber Collision Centers announced that it acquired Classic Collision Center, Inc., with four locations in greater Los Angeles: (Los Angeles, Pasadena, Tujunga, and La Crescenta), and Haddock Collision, a dominant repairer with five locations in the Raleigh, North Carolina market (Raleigh, Wakefield, Cary-Crossroads, Cary-Maynard, and Fuquay-Varina.) Classic Collision was founded in 1980 and Haddock in 1972. Caliber Collision CentersSteve Grimshaw, Caliber Collision Chief Executive Officer commented, “Our acquisition of Classic Collision Center, Inc. continues to offer more customer choices in the Southern California market. After spending time with Classic Collision’s management team, it was obvious that Classic Collision aligns perfectly with Caliber by delivering industry-leading customer satisfaction across all four Los Angeles locations.” “We are proud that Classic Collision Center is now a part of the nation’s

leading collision repair provider,” said Majic Berenji, Classic Collision President. “This combination will allow the company to continue to grow, while providing Classic Collision’s customers with even higher standards of quality and personal service that has become our trademark. It will also provide Classic Collision’s staff and their families’ new advancement opportunities and a secure future in the dynamic collision repair industry.” “Our acquisition of Haddock Collision Centers in North Carolina represents our first of many acquisitions to come in the eastern U.S. I am very excited to have Todd McGowan, and the entire Haddock Collision organization, join forces with Caliber,” said Grimshaw. With these acquisitions Caliber now operates 177 collision repair facilities in Arizona, California, Colorado, Nevada, New Mexico, North Carolina, Oklahoma, and Texas.

of the event is to bring the industry together, and MERA’s involvement further solidifies our goal of deeper market coverage.” “Remanufactured parts offer likenew quality and real value that technicians and end users can trust,” said John Chalifoux, president and COO, MERA. “Dur-

dent of communications. “We also salute the efforts to encourage professionalism with this generous discount program for our ASE certified professionals and the businesses that employ them.” Registration is now open for NACE | CARS and hotel reservations can be made via the Travel section of the website, www.NACEexpo.com or www.CARSevent.com for the week of July 27 and all events taking place during “Industry Week” in Detroit. Now in its 32nd year, NACE|CARS will feature numerous opportunities for technical training, business education, demonstrations, networking and technology showcases for stakeholders, owners, managers and technicians in the collision and service repair industries.

www.autobodynews.com C ing the MERA Remanufacturing Technology Expo, members will showcase the advanced methods they use to restore core components to original—or better—condition and performance.” Registration information and the agenda is available at MERA.org/techexpo.

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Women’s Industry Network Celebrates Excellence In Leadership and the Formal Transition of the ‘Most Influential Women’ Program to WIN The prestigious Most Influential Women in Collision Repair (MIW) Awards were presented to three women during a celebratory dinner in San Diego during the Women’s Industry Network (WIN) Conference. The MIW Awards recognize women who have enriched the collision repair industry with their leadership, vision, and commitment to excellence. Doug Holmberg, representing AkzoNobel, formally transitioned the MIW program to Margaret Knell, Chair of WIN, by giving WIN a framed issue of AkzoNobel’s Profit Magazine with a commemorative note officially marking the transition. Profit Magazine has highlighted Most Influential Women honorees since inception of the award. This year’s honorees were Frederica Carter, President of F. Carter Events, LLC; Jordan Hendler, Executive Director of the Washington Metropolitan Auto Body Association; and Leanne Jefferies, Director of Collision Programs at AIA Canada. Each honoree was introduced by an industry peer and former MIW who nominated them for the award. In a welcome message, Knell thanked those being honored as well as award recipients from prior years, “for your visibility and ongoing

example of most influential women in the collision repair industry by your leadership, vision, and commitment to excellence—both in your professions and in your communities.” She then recognized AkzoNobel for their vision

Margaret Knell and Doug Holmberg

and elevation of the societal issue of the advancement of women in the collision repair industry. The recognition program's charter aligns with WIN’s mission to ‘enhance the role of women in the industry’ and has recognized more than 75 women for their professional accomplishments and for going beyond requirements of their positions to give back to their communities. Honorees have held positions in every facet of the collision repair industry, as shop owners, body and paint technicians, man-

agers, wholesalers, lobbyists, suppliers, insurance adjusters, consultants, educators, editors and writers, and industry association directors. Established in 1999 by AkzoNobel, WIN assumed management of the MIW program in 2013. The Most Influential Women program has supported the industry by funding scholarships for prospective female students interested in pursuing a career in collision repair. “The Women’s Industry Network has, in a very short period of time, become a pillar association within the North American collision repair market,” said Doug Holmberg, Director of Vehicle Refinishes for AkzoNobel Automotive & Aerospace Coatings North America. “It was both a pleasure and honor for AkzoNobel to be part of the 2014 WIN Conference and formally transition the Most Influential Women in the Collision Repair Industry program from our stewardship to WIN for their continued mentoring. WIN will be able to advance MIW and create sustainable resources to the full benefit of the entire collision repair industry.” To learn more about WIN and the MIW Awards, or to see a list of past recipients, visit http://thewomensindustrynetwork.ning.com.

Fix Auto Acquires Alaska Shops

Fix Auto USA continues expansion in the Western United States with the introduction of five locations in Alaska, bringing the total number of Fix Auto franchises to 59. This marks the first time Fix Auto has ventured into the Alaskan market. “We’re ecstatic to join this elite and exclusive brand of high caliber operators as we adapt to shifting market dynamics,” said Tony Stanley, who along with his wife Mel are the owners of the Fix Auto Alaskan franchise group, formerly Driven Auto Body.

AMI to Honor New Managers

The Automotive Management Institute (AMI) will honor its 20th class of Accredited Automotive Managers (AAMs) with a formal cap and gown ceremony on Aug. 1 during the new Industry Week 2014 July 28-Aug. 2 at the COBO Center in Detroit. The AAM designation is awarded after they successfully complete coursework and earn 120 credits of management education. More than 1,700 individuals have earned the AAM designation and approximately 100 new graduates are added each year. For more go to www.AMIonline.org.

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Southwest Associations

LaCIA Hosted Louisiana Attorney General at May 22 Meeting with Chasidy Rae Sisk

On Thursday, May 22, the Louisiana Attorney General’s influence in itself the repair professionals are responsifice to inform them that they will be Collision Industry Association (LaCIA) is beneficial to legislative initiatives ble for properly fixing their customers’ pursuing State Farm, with or without held a meeting at the Hilton Garden Inn since politicians are less apt to ignore vehicles, plus if a shop has a signed the Commissioner’s support. Hanks reto update members on the direction the their pleas for help. They also plan to work authorization from the customer calls, “they wanted to make it clear association is taking and their upcomproduce some ad campaigns to advise and the insurer sends their vehicle to what their main objectives were, and ing plans. Featured speakers included that was to attempt to get rid of DRPs, Attorney General Buddy Caldwell and to get things changed through legislahis assistant AG, Randy Ishee, who uption, and to make sure everyone knows dated attendees on their efforts. Executhe law on both sides. They want intive Director Alysia Hanks notes, surers to stick to what they do, which is “overall, the meeting and turnout was writing policies, and let the body shops excellent, and I think the Attorney Gendo what they do, which is fixing cars. eral is on top of things! He was present They believe the insurers shouldn’t with some of his other attorneys who have their hands in our businesses.” are working on our issues, and they had After the Attorney General’s pressome great updates to share with us. I entation concluded, several additional LaCIA’s Board of Directors meet with their guests (l to r): Chris Medine, Randy McLachlin, Alysia don’t think I’m alone when I say this, speakers provided updates on some inHanks, Derek Stubbs, AG Buddy Caldwell, Lynn Lejuene, Asst. AG Randy Ishee & Pat Graham but Mr. Caldwell very much exceeded dustry trends. Abel Cantrell of Advanmy expectations with what he and his consumers to read their insurance tage Collision Center in Houma LA another facility, that is a breach of constaff of lawyers have accomplished so policies and encourage them to un- tract for which they can be sued. spoke about who really owns your far. I heard the comment ‘blown away’ derstand their rights during the repair The Louisiana Attorney General’s shop, you or the insurance company, when I asked others to describe the process. Attorney Stacy noted that the and he also distributed instructions on office is working with several other Atmeeting. Mr. Caldwell and four other Attorney General’s office may also torney Generals throughout the South, “How to Use Twitter” so no one has an attorneys are now working non-stop on look into possible tax evasion on the and they have also reached out to their excuse not to get connected to other our issues.” part of the insurance companies. De- state’s Insurance Commissioner’s ofshops. Ray Gunder of Gunder’s Auto The meeting began with Chairman spite this progress, Hanks cautions “it Lynn Lejeune welcoming attendees and will take a while to get this situation ORIGINAL GM PARTS RTS FOR RA leading the group in prayer, followed by we find ourselves in today resolved, Vice Chairman Derek Stubbs who inor even to see any movement on it. FINISH troduced LaCIA’s Board of Directors We did not get into this situation Call Any of These Wholesale Parts Dealers. and discussed some of the association’s overnight, and it won’t go away that goals and accomplishments. fast either. We need to have patience.” When Caldwell was introduced, he Next, Ishee updated attendees on assured the group that he and his team several matters, beginning with the are working diligently on resolving the fact that he cannot comprehend why collision repair industry’s issues, and he provided an update on their progress thus far. Because State Farm is the largest insurance company in Massachusets New York LA and all other insurers follow their lead, he first set his Long Cadillac Potamkin GM sights on this insurance giant, SOUTHBOROUGH NEW YORK CITY learning that they did put up 508-820-9322 212-708-3080 the money for PartsTrader. His 508-879-1212 Fax 212-708-3127 Fax office has also begun a Civil M-F 8:00 am - 4:30 pm 800-982-2258 Investigation Demand where Executive Director Alysia Hanks (l) with Attny General jmorena@potamkincadillac.com M-F 7:30 am - 5:00 pm the Attorney General orders Buddy Caldwell (m) and Randy Ishee (r) from the LA tschube@longauto.com Dept of Justice the insurance companies to produce documents which they would any repair facility would willingly join New Jersey not ordinarily produce in a regular depa DRP since he can find nothing in osition, such as surveys and internal those agreements that benefits the Flemington policies; he also pointed out his finding shops whatsoever; his feelings about Buick Chevrolet GMC that insurers aren’t even attempting to PartsTrader are the same. He noted FLEMINGTON hide the fact that they are steering their that by signing those agreements, it 877-NJPARTS customers to DRP facilities! was like relinquishing ownership of 908-782-1795 Fax Although his office is still in the the shop to the insurance company. discovery stages of the process, the Furthermore, Ishee emphasized that

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Repair in Lakeland FL discussed how insurers pushed him to the edge and why he started suing them to get things done, nothing he has not lost a case because “right is right!” Next, Mike Parker of Parker Auto Body in West Monroe LA shared the measures he has taken to maintain control of his business which includes installing video and audio surveillance in and around his shop as well as a module to record every call made to or from his business. LaCIA’s Board of Directors is very grateful to all of their guests who spoke at the meeting. Vice Chairman Derek Stubbs stated “we have to be excited about the turnout and have to keep the momentum we are establishing going in a positive direction and not let it slip away.” Board member Pat Graham believes the Attorney General and his staff “had a very positive vibe that I think was felt by everyone.” All in all, Hanks believes the meeting “was an incredible success! We are taking back the industry ladies and gentlemen!”

LaCIA will hold their next meeting on July 8 in Lafayette.

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Interactive Advanced Steering and Suspension Systems Damage Analysis Course

I-CAR® announced that its new interactive Advanced Steering and Suspension Systems Damage Analysis (DAM15) course is now available. This course provides detailed information on the considerations for inspecting steering and suspension systems and provides knowledge that can lead to increased efficiency and a positive customer experience. Josh McFarlin, I-CAR Director of Curriculum & Product Development stated, “Advanced steering and suspension systems are common in today’s vehicles and if not repaired properly, other vehicle systems can be

compromised.” He continued, “Repairers can apply knowledge learned in this course throughout the repair process.” The course features a series of interactive classroom activities and problem-solving scenarios designed to engage the student and enrich their learning experience in order to further prepare them to apply their knowledge on the job. Toward the end of the course, the student will engage in a “damage discovery” activity where he/she will simulate the estimating process. This instructor-led, Live 3-credit hour course meets training require-

ments for Estimators, Auto Physical Damage Appraisers and Electrical/Mechanical Technicians in I-CAR’s Professional Development Program™ (PDP). DAM15 has replaced Electronically Controlled Steering and Suspension Systems (STE05). If STE05 has been completed, training credit earned will not be lost. To register for Advanced Steering and Suspension Systems Damage Analysis (DAM15), visit the I-CAR website at www.i-car.com or contact ICAR Customer Care at 1-800-I-CARUSA (800-422-7872). Classes are being added to the schedule regularly.

I-CAR® Adds New OEM Segment Development Director, John Bosin

I-CAR® announced that John Bosin has joined I-CAR in the role of Director, Segment Development– OEM. John will oversee all business development and strategic activity for ICAR in the OEM segment including refinement of strategies to better serve the OEM segment, as well as I-CAR activity with OEMs related to Collision Repair Network (CRN) programs that rely on I-CAR’s training and Gold Class program, I-CAR® Welding Training & Certification™ initiatives,

Audi Genuine Parts

and contract training. He will also work closely with I-CAR’s Industry Technical Relations team to advance I-CAR’s Reparability Technical Support (RTS) program as I-CAR works to develop and mature the portfolio of RTS services for the benefit of OEMs and the Inter-Industry. John Van Alstyne, I-CAR CEO & President stated, “Segment focused sales and marketing, and strategic alignment, have been key to I-CAR’s progress over the past three years. John Bosin is a great

addition to our team, and with his joining, I-CAR is more firmly positioned to create more positive impact in the OEM segment and across the board.” Bosin joins I-CAR with significant experience in the OEM segment through his extensive and diverse roles in the Collision Repair industry. Most recently, John was with AkzoNobel as OEM Aftermarket Manager, and earlier with Fix Auto USA, ICI Autocolor and DuPont. John is also a Lean Six Sigma Sensei.

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CARS This Year Is All New, ASA Promises It Will Be The Best Show Ever This year’s CARS will be held July 30Aug. 2 in Detroit and for the first time, the focus will be on younger techs. There will be a two-day, intensive program called the “Young Technician’s Symposium.” Donny Seyfer, chairmanelect of the Automotive Service Association, which sponsors CARS, reports the program will be “powered” by Bosch. “It’s the brainchild of Bob Pattengale,” said Seyfer, “and will feature cuttingedge learning techniques and thorough introductions to the electronic systems that control modern cars. Targeting the two- to three-year tech, Bosch’s trainers will use hands-on techniques mixed with classroom training to move young techs from maintenance service and light repair to adding routine diagnostic skills to their toolbox.” Each program at CARS this year has been handpicked with an eye to-

ward making your shop better, said Seyfer. Management sessions will be limited so that the “meeting after the meeting” networking opportunities will be enhanced. Seyfer said the “crown jewel” of the CARS lineup will be Friday’s Telematics & Technology Forum sponsored by the Alliance of Automobile Manufacturers. “We will bring you face-to-face with the future,” said Seyfer. “Learn about what cars are doing today and tomorrow from the engineers who build them. How does the independent repair shop fit into this world? You will only know if you attend CARS and attend this session.” Business has changed, said Seyfer, “and things that were effective a few years ago are no longer working.” To help bring attendees up-to-date, ASA is enlisting the aid of notables such as Vin

I-CAR® And National Auto Body Council Partner on Membership Discount, 30% Off Until End of 2014 I-CAR®, in partnership with the National Auto Body Council (NABC), has announced it will pilot a membership discount program for I-CAR Gold Class® businesses. The promotional offer includes a 30 percent discount toward NABC Bronze Membership through December 31, 2014. “I-CAR and NABC have complimentary goals of encouraging professionalism and promoting a positive image of our industry,” explained Jeff Peevy, I-CAR Senior Director of Field Operations and Segment Development. “I believe all of us within the collision repair industry have an obligation to promote a positive image of it. And one of the best ways to achieve this is to support and enable the growth of an organization designed for this purpose.” NABC membership provides businesses with an array of opportunities for members to reinforce their leadership role within the industry and community, and foster goodwill throughout those communities. The NABC also implements community-based programs like Recycled Rides, Distracted Driving Initiative and First Responders Emergency Extrication, while recognizing those in our industry who epitomize the fundamental goodness which exists in the collision repair world. Recycled Rides is a widely-known and unique program in which insurers, collision repairers, paint suppliers, parts

vendors and others collaborate to repair and donate vehicles to deserving individuals and service organizations in local communities throughout the country. NABC Executive Director, Chuck Sulkala explained, “In addition to helping make a difference in someone’s life, participation in NABC initiatives such as Recycled Rides, provides many intangible benefits. Within a business, it creates rewarding experiences, excitement and pride in and for your team, plus has a very positive impact on the community. The enhanced recognition of our member’s businesses in their community as a result of gifting a Recycled Rides vehicle is an added benefit of membership.” Over 800 vehicles worth in excess of $10 million have been donated through the NABC’s Recycled Rides program since its inception in 2007. “Collaborating with an industry powerhouse like I-CAR really helps the NABC to enroll our industry to evangelize about just how good it is for others to rub elbows with all of us,” said Nick Notte, NABC president. “We at the NABC are delighted that I-CAR has embraced our vision and is so willing to help NABC reach out to even more quality individuals and businesses.” Gold Class businesses are encouraged to take advantage of this special promotion. To learn more about the NABC or Recycled Rides, visit nationalautobodycouncil.org.

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Waterhouse, Rissy Sutherland, Danny Sanchez and Margie Seyfer, all experts in their respective fields. Always a concern are employee issues, including successfully integrating new employees into the business. Bill Haas, industry consultant and trainer, has a new class that will provide shop owners the tools they need to help new employees fit right in. On the technical side, since CARS 2014 will be in the Motor City, representatives from Chrysler, Ford and General Motors will all be presenting classes. Pete Meier will help you bring those lab scopes back out to aid you in diagnosis for a new generation of cars. “Speaking of diagnosis,” said Seyfer, “we are going to push the boundaries of your diagnostic techniques and understanding with presentations by Mark Warren and Chris Chesney— both

technical wizards. They will bring new programs that will take your diagnosticians to areas many of them will find completely new.” Seyfer said ASA’s board of directors and members of the association’s Mechanical Operations Committee “are excited” to present a different approach to training at CARS this year. “We surveyed members, asking what their biggest challenges were in running their business and repairing cars, and we took the dominant responses and sought out trainers to provide insight and new skills to solve those problems.” Said Seyfer, CARS is built for shop owners. “It’s built for your technicians and it is built for your sales staff,” he said. “ASA puts on a few ‘must attend’ programs each year. This year, CARS will be at the top of that list. See you in detroit!”

ASA-CO to Host Pinnacol Safety Meeting July 9 in Denver

On Wednesday, July 9, ASA-CO will host a Pinnacol Safety meeting entitled “Managing Safety Through Good Hiring Practices” at Pinnacol Assurance, located at 7501 E. Lowry Blvd in Denver, CO. The event will take place from 11:30AM until 1:00PM

and includes lunch. ASA-CO is hosting this event for all ASA Safety Group Members, totaling around 50 policyholders, and they expect around 15 to 20 attendees. For more information, call 303-2025231 or go to www.asacolorado.org

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ASA-Midwest—Take Me Out to the Ballgame!

On Tuesday, June 10, the Springfield come an annual outing for the Spring- of strikes and hopefully a few homeruns Chapter of ASA-Midwest held their field Chapter, and we look forward to at the Iowa Cubs’ stadium. it in coming years.” Hamilton believes that hosting fun Annual Industry with Night atChasidy the Ballpark Raecontinuing Sisk Other chapters of ASA-Midwest events for association members is with over 30 association members and their families visiting Hammons Field have followed suit and begun holding nearly as important as providing eduto root for the Springfield Cardinals. similar events. Their St. Louis Chapter cation to the industry. “In addition to held their own Industry Night at the Ballbringing our members great training The evening of baseball included a networking picnic at the ballpark, game tickets and a Springfield Cardinals with Chasidy Rae Sisk baseball cap. Sheri Hamilton, Executive Director of the association, notes “ASA-Midwest was very pleased with the outcome of the event. We had an impressive turnout, our members had a great time, and the home team won!” Hamilton explains “we Attanasio organize with Ed the baseball outings to bring the automotive service community together for a fun night out. There is time for ASA-MW's St. Louis Chapter Enjoys a Night at the Ballpark networking, but it is also a setting conducive to a relaxed, enjoyable evening park on June 2nd when they cheered on opportunities, we place a high imporfor shop owners, employees and their the St. Louis Cardinals, and the Des tance on networking and bringing the Attanasio families. We hadwith a greatEd response to Moines Chapter will also be holding a automotive service community tothis event with positive feedback from similar event, their first Ballpark Night, gether for fun and interactive activities those who attended. This event has be- on July 12th in order to enjoy an evening outside of their shop. This not only

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gives our members the opportunity to meet other professionals in their area, but it also allows for idea swapping, relationship building and a time to relax with their team. We believe these types of events are important to the strength of our membership and organization – plus we always have a great time!” ASA-Midwest recently launched several new chapters throughout the Midwest, including Tulsa OK, Oklahoma City OK, Little Rock AR and Lincoln NE. Hamilton states “we are very excited for this new growth and the opportunity to reach new members. We will be releasing a new schedule of events for all our ASAMidwest chapters for the Fall which will include engaging training and numerous networking opportunities for our members.”

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www.autobodynews.com | JULY 2014 AUTOBODY NEWS 51

Chrysler Airbag Recall Being Probed by Regulators The automaker says 6 fixed SUVs from 2012 recall had inadvertent airbag deployments. Chrysler Group may be facing a recall do-over after the fix it initiated to stop inadvertent airbag deployments in older Jeep Libertys and Grand Cherokees failed in at least six instances to fix the problem, says a report in Automotive News. The National Highway Traffic Safety Administration said in documents filed on Monday that it had opened a query into the 2012 recall 744,822 Jeep Liberty SUVs from model years 2002 and 2003, and Jeep Grand Cherokee SUVs from model years 2002 through 2004. NHTSA said it plans to study the effectiveness of the nearly 2-year-old recall, which Chrysler launched on Nov. 7, 2012. Chrysler acknowledged in a statement that it had notified NHTSA of a half-dozen instances in which the SUV’s airbags deployed inadvertently while the vehicles were in operation after they had allegedly been fixed. “Chrysler Group LLC advised the National Highway Traffic Ad-

ministration of the six reports and, in accordance with the company’s longstanding practice, is cooperating fully with the resulting investigation. Customer safety is paramount at Chrysler Group,” the company said in a written statement. In 2012, Chrysler addressed the problem by installing an in-line jumper harness with an integrated electrical filter to eliminate electrical spikes that the company believed were causing the problem, according to the NHTSA documents. The safety agency had previously opened an investigation of the issue in October 2011 and three months later upgraded the probe. In the latest six cases in the NHTSA documents, no crashes were reported, but injuries consisting of cuts and burns were alleged. At the time of the recall in 2012, another 174,723 SUVs were affected in Canada, Mexico and outside of North America. The probe found 215 cases of inadvertent airbag deployments that resulted in 81 minor injuries in the United States but no crashes.

PartsTrader Integrates Hollander Interchange Codes

PartsTrader announced that it has in- cler whenever that code is available tegrated Hollander Interchange codes for the parts or assemblies required. within the PartsTrader application to The new functionality has been assist suppliers when they are quot- previewed in Illinois and New Jering recycled parts. sey, and is now available to PartThe Hollander Interchange is a sTrader users nationwide. 75-year old numbering system that “The repairers and recyclers indexes which parts are interchange- who have been using this feature in ableSouthwest among vehicles. For example, our preview areas have been pleased to this Edition? the timing cover for a 1976 GMC with the efficiencies it has delivered Truck also fits a 1969 Corvette. Hol- to them,” said Dale Sailer, Partlander Interchange Manuals cover sTrader’s vice president of business most foreign and domestic cars and development. “Our development autobodynews.com light trucks from the 1920s to the team has worked diligently on askpresent. The manuals cover more ing the right questions of repairers, than 150 mechanical and body parts and to display the Hollander codes and assemblies. in an easy-to-use manner for any ness with For information Promoteonyour business with quoting recycled parts. how to use supplier the Interchange, go to http://hollanPartsTrader’s goal is to continually featuring an exclusive article featuring derinterchange.net/How_To_In- improve our solution so that it reservices. structions.pdf.your products or services. duces the risk of getting the wrong In the PartsTrader system a col- parts and creates efficiencies for lision repair estimator will be asked, both the repairer and the supplier.” when appropriate, clarifying vehicle Said Rob Cooper, CEO of Partoption questions prior to sending out sTrader, “In meeting with recyclers a quote request for Call their specific part across the country, we’ve heard the or details! for details! needs. The estimator’s answers to need for integration with Hollander trigger Part- Interchange loud and clear, and it’s ex251 these questions will 800-699-8251 sTrader to display the appropriate citing to be able to respond to the marHollander code to the quoting recy- ket’s needs in such a positive way.”

NSF International’s Bob Frayer Earns Prestigious ASQ Quality Leader Award The Automotive Division of ASQ (American Society for Quality) recently awarded Bob Frayer of NSF International its prestigious Quality Leader of the Year Award for his leadership and NSF International’s commitment to testing and certifying aftermarket automotive parts. The ASQAutomotive Division Quality Leader of the Year Award recBob Frayer ognizes leaders in the automotive industry who exemplify outstanding dedication to quality. Over the past four years, Frayer (NSF International Global Managing Director Automotive) has significantly increased the number of certified automotive collision replacement parts available in the market, now covering more than 20,000 vehicle applications including models from all major auto companies. As background, NSF International is a global organization with 70 years of certification and testing experience. Frayer oversees NSF Interna-

tional’s Automotive Collision Certification Program, which includes parts certification through which he and other NSF engineers independently evaluate and compare the form, fit and function of aftermarket parts to original equipment (OE) parts. The program helps ensure that collision parts meet quality, safety and performance standards through rigorous facility audits and parts testing. He also oversees the Automotive Collision Parts Distributor Certification Program which certifies distributors who sell automotive collision parts. “We are honored to recognize the achievements of Bob Frayer and NSF International for their dedication to continually advance the quality and safety of the aftermarket automotive parts industry,” said Jd Marhevko, ASQ Fellow and ASQ Automotive Division council member. “It is an honor to receive this award on behalf of NSF International from the ASQ. NSF International and ASQ are committed to quality improvement and standards, and to helping ensure that the safety and performance of auto parts contributes to that mission,” said Frayer.

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Crashes Cost Almost $1T in Costs, Loss of Life, Pain

That includes $277 billion in actual cost, and an estimated $594 billion in “harm from the loss of life and the pain and decreased quality of life due to injuries,” a new U.S. Department of Transportation’s National Highway Traffic Safety Administration report said. Studying crashes in the U.S. in 2010, NHTSA counted up 32,999 fatalities, 3.9 million non-fatal injuries and 24 million damaged vehicles in “The Economic and Societal Impact of Motor Vehicle Crashes 2010.” The sweeping report takes in a lot of ground, particularly in calculating the “quality of life” losses. Among the factors considered in the direct losses of $277 billion, the report said, were $93 billion in lost productivity, $76 billion in property damage, $35 billion in medical expenses, and $28 billion in the costs of traffic-related congestion—like traffic jams and increased air pollution. The report concluded that drunk driving, speeding and “distraction” were key contributors. Drunk driving alone, the report said, accounted for 18% of the total economic loss from motor vehicle crashes, costing the economy as much as $199 billion in direct and quality-of-life losses.

SCRS Open Board Meeting on July 28th in Detroit

On Monday, July 28th, the Society of Collision Repair Specialists (SCRS) will hold an open board meeting from 3:00–5:00pm in Detroit. The meeting, held at the Marriott Renaissance Center located at 400 Renaissance Dr. West, Detroit, will be open to anyone wishing to learn more about the current state of the association's activities and pressing industry topics. The two hour meeting will include updates from SCRS staff and committees outlining current and future work initiatives each group has undertaken on behalf of the membership. It will include a presentation from the SCRS Education Committee who will be providing a detailed presentation surrounding aluminum repair approaches, techniques and considerations. Attendees are not required to be a member of SCRS to participate in this meeting. Anyone interested in learning more about the association, the work it does on behalf of the collision repair industry or interacting with the SCRS Board of Directors is encouraged to attend. Pre-registration is not required. For more information about SCRS, or to join as a member, visit our website at www.scrs.com.

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Young Technician’s Program to Debut at CARS

Automotive service and repair shop owners will want their young technicians to attend this unique symposium at this year’s Congress of Automotive Service and Repair (CARS), which will be held in Detroit July 30-Aug. 2. It was designed specifically for young technicians who shop owners believe have the skills to be all-star technicians. The Young Technician’s Symposium is a first time event at CARS and will be powered by Bosch. Targeting the twoto three-year technician, Bosch trainers will use interactive teaching methods to move young technicians to electrical and driveability diagnosis with confidence and speed. ASA is working with Bob Pattengale, training manager for Robert Bosch, to address the challenges young technicians face. Donny Seyfer, chairman-elect of the ASA, which sponsors CARS, said Bosch recently conducted a trial training program with members of ASA-CO. Out of that came a two-day, four-session program that would teach techs with two or more years’ experience real-world diagnostic skills in basic electronics, gas and diesel engine management, sensors and actuators, and electronic brake management, including ABS and vehicle stability systems.

AudaExplore Pledges $150K to SkillsUSA in Tool Grants

AudaExplore has pledged a threeyear commitment of $75,000 in tool grants that will be awarded to all high school and post-secondary collision repair and refinishing students competing at the national SkillsUSA contest. By working together with industry companies and their student product discounts, the retail value of these tools will exceed $150,000. The tool grants are meant to recognize the students’ outstanding efforts in qualifying to compete at the national SkillsUSA event and help prepare them for careers within the collision industry. “This donation aligns well with our LIFT charitable giving program, which focuses on helping those in need to build sustainable roots for lasting change,” said Rick Tuuri, vice president of industry relations, AudaExplore. “The U.S. Department of Labor projected the employment growth of the automotive body segment to be 13 percent from 2012 to 2022. SkillsUSA and the Collision Repair Education Foundation have done a fantastic job enhancing career opportunities for students to take advantage of this growth, and we are proud to be a part of it.”

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New Study Says More Than 75% of All Pickup Trucks will be Aluminum-Bodied by 2025 Marketing research firm Ducker Worldwide is predicting that once the 2015 Ford F-150 debuts and works out the bugs with dealerships and the auto repair industry, other truckmakers will likely to follow suit. A study conducted by Ducker Worldwide for the Aluminum Association’s Aluminum Transportation Group (ATG), projects that, by 2025, more than 75 percent of all new pickup trucks produced in North America will be aluminum-bodied. The study surveyed all major automakers and reports Ford, General Motors and Fiat Chrysler will become the biggest users of aluminum sheet in the next decade. It also forecasts that the number of vehicles with complete aluminum body structures will reach 18 percent of North American production, from less than one percent today. Vehicle segments revealed as emerging aluminum content leaders are pickup trucks, sport-utility vehicles (SUVs) and both mid-sized and full-size sedans. The study finds that every leading automaker will have numerous aluminum body and closure programs by 2025. As the material mix for body and closure parts continues to change dramatically in the years to come, use

of aluminum sheet for vehicle bodies will increase to 4 billion pounds by 2025, from 200 million pounds in 2012. “The numbers tell a powerful story of aluminum’s explosive growth across the automotive sector,” said Tom Boney, chairman of the Aluminum Association’s Aluminum Transportation Group and vice president and general manager of automotive for Novelis in North America. “Within the next ten years, seven out of 10 new pickups produced in North America will be aluminum-bodied, and so too will be more than 20 percent of SUVs and full–sized sedans.” The ATG commissioned global consulting and research firm Ducker Worldwide to conduct the 2015 North American Light Vehicle Aluminum Content Study. Through detailed inperson interviews with automotive original equipment manufacturers (OEMs), component suppliers and regulators, Ducker Worldwide maintains a comprehensive material use database to track material and mass of individual components for every vehicle model manufactured in North America. The findings were compiled using data updated and verified between October 2013 and April 2014.

I-Car® Conference on Future of Collision Repair and Automotive Industry, July 30 In Detroit

“Aluminum-bodied cars and trucks are coming in a big way, and soon. Consumers won’t visibly notice a different metal under the paint, but they’ll see greater savings at the gas pump and experience better performance and handling at the wheel,” added Boney. Additional findings from the study include: For 2015, pickup trucks will contain the most aluminum at 548.9 lbs. per vehicle, followed closely by E segment sedans at 546.9 lbs., SUVs at 410.3 lbs. and minivans at 396.5 lbs. The average aluminum content in 2015 will be up 44 pounds per vehicle or 13% over 2012. Total North American light vehicle aluminum consumption will increase 28% in 2015 over 2012. Tesla, Mercedes, BMW and Ford will all exceed the average aluminum content and the average aluminum share of curb weight for 2015. By 2025, 26.6% of all the body and closure parts for light vehicles in North America will be made of aluminum. Total North American aluminum content in 2025 will be 10 billion pounds.

Aluminum hood penetration will reach 85% and doors will reach 46%; complete bodies will reach 18%, from less than one percent today. Globally, light vehicle aluminum content will approach 35 billion pounds by 2025 making light vehicles the most important global market for aluminum. In a separate analysis, Bank nalyst John Murphy said that Ford’s aluminum F-150 will determine whether consumers are willing to pay a premium for a larger-but-lighter vehicle. The 2015 F-150 could be efficient enough to meet future U.S. fuel economy standards without requiring Ford to offset its performance by selling more small cars, he said. If Detroit auto makers can succeed at slashing weight from their large SUVs and pickups, Murphy said, “you could see an environment where [their sales] perform really well.” Heavy-duty pickups and SUVs are big moneymakers for Detroit auto makers and efforts to make them more fuel efficient would keep the profits flowing.

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I-CAR® announced that registration is hicle: Reinventing the Automobile Collision Personnel? To advertise now open for the 2014 I-CAR Con- • Advanced Electronics, Com•1,262Southwest Collision Techs resumes online matters affecting the industry. Want to Contribute to this Edition? call Advertising Sales at: ference, which will be held on July munications and Safety: Vehicle •1,295 Painters resumes online 30, 2014 at Cobo Center in Detroit. Wide Driver Safety Systems: V2X •1,177 Estimators & Mgs resumes online 800-699-8251 •11,256 Mechanical Tech resumes online This year’s Conference picks up Deployment, and how Vehicle Data e-mail: I-CAR’s technology advancement will reshape our industry ACTautostaffing.com or 727-733-5600 800-524-1504 www.red-viper.com advertising@autobodynews.com discussion started at the company’s I-CAR has also announced new, utobodynews.com publisher@autobodynews.com 2013 Conference and will provide reduced pricing for this year’s Conwww.autobodynews.com executives and leaders across the in- ference to encourage more of the industry further insight into the chal- dustry to attend and hear about the When all you need to do TheFastenerWarehouse.com lenges and opportunities surrounding important challenges being faced. Promote yourThe business with is move Promote a vehicle,your use:business with the Technical Tsunami. admission price is now just $250 for Save 40-60% an exclusive article featuring an exclusive article featuring John McElroy, host of Autoline Early Bird registration—a promotion Daily and Autoline This Week, will re- that is running from now products through Juneor services. See the N your products or services. your • Easy to navigate online catalog turn to moderate To thisadvertise year’s I-CAR 14. y Conference. call The Conference will feaAs an added bonus, all I-CAR • Same or next day priority shipping Joe Momber at: ry ture an expanded lineup of speakers Conference attendees will receive a • Check out our monthly specials 800-699-8251 from Ford Motor Company, Oak Ridge FREE pass to the NACE/CARS expo, SAVES YOU TIME AND MONEY • Use promo code TFW at check out to www.autobodyn National Laboratory, Steel Market De- also being held at the Cobo Center on e-mail: receive an additional 5% savings CALL: Call for details! jmomber@autobodynews.com velopment Institute, Alcoa, University July 31 and August 1. Joe Momber for details! Go to www.forkliftwrecker.com 51 of Michigan, Robert Bosch LLC and In addition to insightful and and watch our video. www.autobodynews.com 800-699-8251 800-699-8251 more. Key topics will include: thought-provoking presentations and TFWHouse@aol.com • Ford: A high impact session panel discussions, the I-CAR Confern. covering OEM strategies related to ence also offers numerous networking CAFE, details on the new aluminum opportunities, including an evening F-150, and Ford’s enhanced Colli- reception celebrating I-CAR’s 35th advertise sion Repair Service Strategy Your Email Anniversary, complete with live enRegister for Our Register Your Email forToOur • Lightweighting: Advancements tertainment. call Sean Hartman at: and trends in Carbon Fiber, Advanced For more information and details 800-699-8251 Steels, Aluminum on how to register, please visit: http:// • The Changing DNA of the Ve- i-car.cvent.com/2014Conference. e-mail: at www.autobodynews.com at www.autobodynews.com shartman@autobodynews.com

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