July 2020 Northeast Edition by Autobody News

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Vol. 11 / Issue 4 / July 2020

Hundreds of Individuals in the Industry Get Much-Appreciated Help from CIF (Foundation) by John Yoswick

Bryan Kim’s collision and mechanical repair business, like many others, was struggling this spring as the COVID-19 virus and economic shutdown hit the Catonsville, MD, area. Sales at ASE Auto Center were down as much as 50% some months, not enough to cover rent and payroll. “We started bleeding money a little less than some shops, that actually shut down for a week or two, but once we started, we bled a lot of money,” said Kim, who has owned the nine-employee business for sev-

en years. Adding to the challenge: Kim’s fiancé and his shop manager’s wife both contracted COVID-19, forcing Kim and his manager to each stay away from the shop for several weeks. “I didn’t want to bring it to the facility, and luckily no one who works here got sick,” he said. The situation was made a little bit easier, he said, because of some assistance from the Collision Industry Foundation, the nonprofit dedicated to providing emergency financial See Help from Foundation, Page 12

NY Shop Owner Forgives Rent for 200 Tenants by Ed Attanasio

A lot of body shop owners end up being landlords, and sometimes it can be a pain in the you-know-what. When you’re trying to fix cars and keep your customers, insurance partners and employees happy, you don’t want to have to worry about late rent or Mrs. Smith’s leaking faucet in apartment 5. When this pandemic blindsided many of us, people all over the world started asking about their rent or mortgages. To placate his tenants and take the high road, Mario Salerno, own-

by Stacey Phillips

When the coronavirus restrictions were first put into place, the Collision Industry Foundation (CIF) recognized the challenges being faced by the industry. As a result, the nonprofit organization set up a special COVID-19 fund to support collision repair professionals impacted by the pandemic. “Since 2001, CIF has been dedicated to raising, managing and donating funds to provide emergency relief to collision repairers who have

Mario Salerno is a second-generation shop owner whose children, Sal and Mario Jr., will eventually take over the businesses See Rent for 200 Tenants, Page 20

been impacted by natural disasters or other catastrophic events,” said Michael Quinn, CIF board president and SVP of business development at AirPro Diagnostics. “The donations we received for the COVID-19 fund were vital to help repairers across the country.” CIF established the fund with $100,000 raised previously, and CCC Information Services matched that amount. Other industry organizations and individuals then donated to the fund, including AirPro Diagnostics, Guy Bargnes, Colette See CIF Assistance, Page 16

Massachusetts Insurance Commissioner and ADALB Requested to Direct Attention to COVID-19 Exploitations by Chasidy Rae Sisk

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How CIF Assistance Has Benefited Collision Repair Professionals in Time of Need

As shops focus on providing a safe environment for both customers and employees during the COVID-19 outbreak, AASP/MA has received notice of a variety of collision repair industry related concerns. As a result, AASP/MA Executive Director Lucky Papageorg requested “immediate steps to stop exploitative practices being employed by insurance providers” in a letter to Massachusetts Commissioner of Insurance Gary Anderson, copied to Gov. Charlie Baker, Lt. Gov. Karyn Polito and Attorney General Maura Healey. “As the ‘first responders’ meeting the needs of the motoring public, the collision repair industry and the customers we serve are subjected to the potentially life-threatening exposure of the pandemic virus,” Papageorg wrote. “New procedures and protocols are now required to protect both the customer and our entire workforce. This requires that insurers must acknowledge and pay for the procedures and the associated costs that

will help protect the vehicle owners and the dedicated professionals who repair collision-damaged vehicles.” AASP/MA requested Anderson issue “a directive to the insurance industry to ensure the health and safety of vehicle owners requiring collision repair services and collision repair technicians during the COVID-19 pandemic,” identifying four items requiring immediate attention: • A proper time allowance for the application of disinfecting materials; • Proper reimbursement for additional PPE items required, including covering of vehicle interiors and high contact components, such as steering wheel shifters and door handles; • Proper reimbursement for additional administrative costs, such as pick-up and drop-off services, preparing documentation and uploading required documentation to the insurer; and • The inclusion of “hazard pay,” similar to what other industries have implemented. Papageorg concluded his letter by See COVID-19 Exploitations, Page 25

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CONTENTS Feds: Jersey Shore Used Car Dealer Tried

Through Senate ��54

to Sell Masks to NYC At 400% Markup

Carma Project Rewarding Replacing Airbags ��46

In $45M Scheme ��6

CCC Reports Growth of Photo Estimate,

Massachusetts Insurance Commissioner

AI-Supported Claims ��25

and ADALB Requested to Direct Attention

CIC Goes Virtual for July Conference ��54

to COVID-19 Exploitations ��1

CIECA Names Paul Barry Executive Director ��42

New Order Will Allow NY Businesses to Deny Entry to Consumers with No Masks ��19 NY Body Shop Owner and Landlord Forgives Rent for 200 Tenants ��1 NY’s Reopenings Advance as Coronavirus Subsides: Cuomo ��14 PA Court Opinion Finds COVID-19 Qualifies as a Natural Disaster ��8 PA Governor Extends COVID-19 Disaster Declaration ��11 PA Small Business Grant Program to Provide $225 Million in Relief Aid to Recover From COVID-19 Losses ��22 Remsen, NY, Firefighters Welcome New Rig ��10

Ford Cautions Against the Use of Aftermarket Glass ��26 Ford, Volkswagen Sign Agreements for Joint Projects ��6

Anderson - Determining Whether—and How—to Charge for OEM Research ��30 Day Job/Night Job: Collision Writer Launches Fun Art Project in Quarantine, Now Hundreds of People Want His Pet Drawings ��52 Silicon Valley Tech School Pushes Through Pandemic ��40 Yoswick - Shops Share More Ideas on How to Get Work In the Door ��34

AkzoNobel Weathering COVID-19 Storm ��42 All Girls’ Bogi Lateiner Discusses Post Corona Customer Care and Communications ��43 ATI Shares Five-Step Rapid Recovery Plan for Automotive and Collision Repair Shops for Beyond COVID ��36

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

800-699-8251 Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont 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. ©2020 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Kundert Volvo �� 22

Acura of Westchester �� 22

Long Automotive Group �� 31

American Icon Automotive Finishes �� 8

Matrix Automotive Finishes �� 2

Audi Wholesale Parts Dealers �� 45

Mazda Wholesale Parts Dealers �� 48

Bical Auto Mall �� 20

McGovern Chrysler-Jeep-Dodge-Ram �� 6

BMW Wholesale Parts Dealers ��38-39

Mercedes-Benz of Paramus �� 43

Cadillac of Mahwah �� 46

Mercedes-Benz of Wilmington �� 25

Car-O-Liner �� 13

Mercedes-Benz Wholesale Parts Dealers �� 49

Central Avenue Chrysler-Jeep-Dodge-Ram �� 15

MINI Wholesale Parts Dealers �� 40

Certified Collision Group (CCG) �� 7

MOPAR Wholesale Parts Dealers ��32-33

Cherry Hill Dodge-Chrysler-Jeep-Ram �� 24

New Holland Ford �� 37

Classifieds �� 54

New Holland Toyota �� 8

Colonial Automotive Group �� 27

Nissan/Infiniti Wholesale Parts Dealers �� 52

Courtesy Mitsubishi �� 34

Northstar Kia �� 16

Criswell Chrysler-Jeep-Dodge-Ram �� 18

Nucar �� 23

Riots in Wake of Floyd’s Death Could

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Porsche Wholesale Parts Dealers �� 55

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Eckler’s Automotive �� 19

PPG Refinish �� 9

for Insurers ��51

Empire Auto Parts �� 12

SATA Dan-Am Company �� 5

Equalizer Industries, Inc �� 12

Schultz Ford �� 47

Ford Wholesale Parts Dealers �� 50

Security Dodge-Chrysler-Jeep-Ram �� 10

GM Wholesale Parts Dealers �� 35

Spanesi Americas �� 14

Haldon Company �� 21

Subaru Wholesale Parts Dealers �� 51

Honda-Acura Wholesale Parts Dealers ��28-29

Toyota Wholesale Parts Dealers �� 34

Hyundai Wholesale Parts Dealers �� 44

VIP Honda �� 42

Infiniti of Norwood �� 36

Volkswagen of Newtown Square �� 26

Innovative Tools & Technologies, Inc �� 17

Volkswagen Wholesale Parts Dealers �� 53

Jaguar Land Rover Cherry Hill �� 30

White Plains Volkswagen �� 8

Across Network ��55

Kia Motors Wholesale Parts Dealers �� 41

Yonkers Kia �� 26

Women in Auto Care Accepting Entries ��47

Kia of Attleboro �� 34

Racial Justice ��46 GM Has a New Plan to Overtake Tesla, and It Starts With an Electric Van ��47 Group 1 Automotive Appoints New CFO ��14 Honda Suffering Production Issues Due to Possible Cyber Attack ��46 How CIF Assistance Has Benefited Collision Repair Professionals in Time of Need ��1 Hundreds of Individuals in the Industry Get

Industrial Finishes & Systems Provides Resource Guide ��26 Motor Vehicle Fatality Rates Jump 14% in March ��11

Self-Driving Vehicles Could Struggle to Eliminate Most Crashes ��4 Tesla Is Now Worth More Than GM, Ford, FCA Combined ��4

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GM Designates $10M for Inclusion,

Much-Appreciated Help from Foundation ��1 COLUMNISTS

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Tesla Shares Cross $1,000 as Semi Truck, New Battery Tech Take Focus ��55 The Auto Industry’s Response to Black Lives Matter Protests ��48 Volkswagen Activates ‘Sign Anywhere’

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Self-Driving Vehicles Could Struggle to Eliminate Most Crashes Driver mistakes play a role in virtually all crashes. That’s why automation has been held up as a potential game changer for safety. But autonomous vehicles might prevent only around a third of all crashes if automated systems drive too much like people, according to a new study from the Insurance Institute for Highway Safety. “It’s likely that fully self-driving cars will eventually identify hazards better than people, but we found that this alone would not prevent the bulk of crashes,” said Jessica Cicchino, IIHS vice president for research and a coauthor of the study. Conventional thinking has it that self-driving vehicles could one day make crashes a thing of the past. The reality is not that simple. According to a national survey of police-reported crashes, driver error is the final failure in the chain of events leading to more than nine out of 10 crashes. But the Institute’s analysis suggests only about a third of those crashes were the result of mistakes that automated vehicles would be expected to avoid simply because they have more accurate perception than human drivers and aren’t vulnerable to incapacitation. To avoid the other two-thirds, they would need to be specifically programmed to prioritize safety over speed and convenience. “Building self-driving cars that drive as well as people do is a big challenge in itself,” said IIHS Research Scientist Alexandra Mueller, lead author of the study. “But they’d actually need to be better than that to deliver on the promises we’ve all heard.”

for the road conditions, driving aggressively or leaving too little following distance from the vehicle ahead. • “Execution and performance” errors included inadequate or incorrect evasive maneuvers, overcompensation and other mistakes in controlling the vehicle. • “Incapacitation” involved impairment due to alcohol or drug use, medical problems or falling asleep at the wheel. The researchers also determined some crashes were unavoidable, such as those caused by a vehicle failure like a blowout or broken axle. For the study, the researchers imagined a future in which all the vehicles on the road are self-driving. They assumed these future vehicles would prevent those crashes Will autonomous vehicles be better than humans at caused exclusively by perpredicting, planning and execution? ception errors or involved an towed away, and emergency medical incapacitated driver. That’s because cameras and sensors of fully autonservices were called to the scene. The IIHS team reviewed the omous vehicles could be expected case files and separated the driver-re- to monitor the roadway and identify lated factors that contributed to the potential hazards better than a human driver and be incapable of distraction crashes into five categories: • “Sensing and perceiving” er- or incapacitation. rors included things like driver dis- Crashes due to only sensing traction, impeded visibility and fail- and perceiving errors accounted for ing to recognize hazards before it was 24% of the total, and incapacitation too late. accounted for 10%. Those crashes • “Predicting” errors occurred might be avoided if all vehicles on when drivers misjudged a gap in traf- the road were self-driving―though fic, incorrectly estimated how fast it would require sensors that worked another vehicle was going or made perfectly and systems that never an incorrect assumption about what malfunctioned. The remaining twoanother road user was going to do. thirds might still occur unless auton • “Planning and deciding” errors omous vehicles are also specifically included driving too fast or too slow programmed to avoid other types of To estimate how many crashes might continue to occur if self-driving cars are designed to make the same decisions about risk humans do, IIHS researchers examined more than 5,000 police-reported crashes from the National Motor Vehicle Crash Causation Survey. Collected by the National Highway Traffic Safety Administration, this sample is representative of crashes across the U.S. in which at least one vehicle was

predicting, decision-making and performance errors. Consider the crash of an Uber test vehicle that killed a pedestrian in Tempe, AZ, in March 2018. Its automated driving system initially struggled to correctly identify 49-year-old Elaine Herzberg on the side of the road. But once it did, it still was not able to predict she would cross in front of the vehicle, and it failed to execute the correct evasive maneuver to avoid striking her when she did so. Planning and deciding errors, such as speeding and illegal maneuvers, were contributing factors in about 40% of crashes in the study sample. The fact deliberate decisions made by drivers can lead to crashes indicates that rider preferences might sometimes conflict with the safety priorities of autonomous vehicles. For self-driving vehicles to live up to their promise of eliminating most crashes, they will have to be designed to focus on safety rather than rider preference when those two are at odds. Self-driving vehicles will need not only to obey traffic laws, but also adapt to road conditions and implement driving strategies that account for uncertainty about what other road users will do, such as driving more slowly than a human driver would in areas with high pedestrian traffic or in low-visibility conditions. “Our analysis shows that it will be crucial for designers to prioritize safety over rider preferences if autonomous vehicles are to live up to their promise to be safer than human drivers,” Mueller says. We thank IIHS for reprint permission.

Tesla Is Now Worth More Than GM, Ford, FCA Combined by Brad Bergan, Interesting Engineering

Toyota is no longer the most valuable automaker in the world. Tesla has ascended to the top position, worth more than Ford, GM, and FCA combined, according to a handy fan-made spreadsheet. With a market capitalization valued at roughly $185 billion, Tesla is now worth more than Volkswagen Group, Daimler, Toyota, Honda and Daimler. The fan-made spreadsheet was made using Yahoo and Google data

to track automaker valuation, and it showed Tesla surging to first place on June 10. As of writing, Tesla’s stock is sitting at roughly $1,014 per share, after a rise of roughly $72 from June 9. This places more valuation distance between Tesla and other U.S. rivals Ford, GM, and FCA. As of June 10, GM’s worth was roughly $41 billion, with Ford at $27 billion and FCA sitting at roughly $20 billion. For a long time, Tesla’s market valuation was more than all three, but then the stock continued its upward motion until the all-electric au-

tomaker cemented a major milestone, according to CNET. The all-electric automaker has seen consistent market value growth, which gave CEO Elon Musk a payday of roughly $700 million earlier in 2020. Musk doesn’t take a salary as CEO of the company, but he still earns stock options at a low price to sell at market rate whenever he chooses. However, there’s little data available to explain the recent jump in valuation, but Wedbush Securities lifted its target share price to $1,000 on June 10. The investment

firm pointed to “game-changing” developments as a reason behind the lift in target price. Skeptics of Tesla’s valuation have surrounded the all-electric automaker for years. In January, Bank of America analysts forecasted a 12-month average stock price of only $350 for Tesla. While the company’s stock value did fall near to that level in March, it has since made an impressive comeback. We thank Interesting Engineering for reprint permission.

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Feds: Jersey Shore Used Car Dealer Tried to Sell Masks to NYC At 400% Markup In $45M Scheme

Ford, Volkswagen Sign Agreements for Joint Projects

his authority and ability to sell large quantities of personal protective A Jersey Shore used car dealer tried to equipment” to city officials who sell desperately-needed personal pro- were “trying to manage the impact tective equipment to New York City of the COVID-19 pandemic and obofficials at a 400% markup as part of a tain these resources to help protect $45 million COVID-19 price-goug- the lives of hospital and other fronting scheme, federal authorline workers,” the U.S. atities charged. torney said. Ron Romano, 58, of He also “offered to sell Manalapan, NJ, also tried this phantom equipment to to sell some of the same the city at grossly inflated 3M-brand N95 masks to prices,” Berman added. Florida emergency man3M officials assisted special agents of the U.S. agement officials at a nearAttorney’s Office for the ly 500% markup during the Ron Romano Southern District of New pandemic’s height, they Credit: Facebook York and the NYPD in said May 26. Romano not only wasn’t li- making the federal case, Berman censed to sell the masks―he didn’t said. have any, Manhattan U.S. Attorney 3M sued Romano’s ad hoc company, Performance Supply Geoffrey Berman said. Romano, who owns Roman LLC of Manalapan, claiming it Chariot Auto Sales in Manalapan, deceived the city by falsely rep“saw the current health emergency resenting authorization to sell the as an opportunity to cash in, using masks, which were in enormous lies and deception in what he envi- demand worldwide. City officials contacted 3M, sioned as a get-rich-quick scheme,” verified the company wasn’t certiBerman said. Romano “lied repeatedly about fied, then alerted law enforcement.

Ford Motor Company and Volkswagen AG on June 10 signed agreements expanding their global alliance to meet rapidly evolving needs of their respective customers by leveraging complementary strengths in midsize pickup trucks and commercial and electric vehicles. Plans for the agreements were first announced by Ford and Volkswagen last July. The companies expect the alliance to enhance ownership experiences for current and future customers by more rapidly innovating vehicle offerings, incorporating relevant new technologies, delivering better utility and offering more model choices. They anticipate continued growth in global industry demand for commercial vehicles and for high-performing electric vehicles to add valuable scale to their individual product portfolios.

by Jerry DeMarco, Daily Voice

Romano specifically is charged with wire fraud, conspiracy to commit wire fraud and violations of the Defense Production Act. He was scheduled for an appearance before a U.S. magistrate judge in Manhattan federal court May 26. Berman, meanwhile, praised the special agents of the Southern District and the NYPD, while thanking 3M and the U.S. Justice Department’s COVID-19 Hoarding and Price Gouging Task Force, led by U.S. Attorney for New Jersey Craig Carpenito. Carpenito, he noted, “is coordinating efforts with the Antitrust Division and U.S. attorneys across the country wherever illegal activity involving protective personal equipment occurs.” We thank the Daily Voice for reprint permission.

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Source: Ford, Volkswagen

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PA Court Opinion Finds COVID-19 Qualifies as a Natural Disaster by Joann M. Lytle and Jennifer Black Strutt, PropertyCasualty360

The Pennsylvania Supreme Court recently issued an opinion providing helpful language policyholders and their counsel will likely cite in support of arguments for insurance covering business interruption losses related to the COVID-19 pandemic. In Friends of DeVito, et al. v. Tom Wolf, Governor, et al., Pennsylvania business owners brought an emergency petition for relief against the governor’s executive order closing nonessential businesses to slow the spread of COVID-19. The petitioners generally argued the governor exceeded his statutory authority in issuing the executive order. The court found “the governor is vested with broad emergency management powers under the Emergency Code.” Indeed, the governor is “responsible for meeting the dangers to this Commonwealth and people presented by disasters,” and the governor may, by proclamation or executive order, declare a state of emergency.

Upon the declaration of a disaster emergency, the governor has “expansive emergency management powers,” which include controlling the ingress and egress to and from a disaster area. The petitioners raised several challenges to the application of these powers in response to a viral illness such as COVID-19. First, the petitioners argued COVID-19 is not a “natural disaster” as defined by the Emergency Code. The court disagreed, finding COVID-19 qualifies as a “natural disaster,” which is defined as: “Any hurricane, tornado, storm, flood, high water, wind-driven water, tidal wave, earthquake, landslide, mudslide, snowstorm, drought, fire, explosion or other catastrophe, which results in substantial damage to property, hardship, suffering or possible loss of life.” Second, the petitioners argued that even if the COVID-19 pandemic constitutes a “disaster,” the governor’s authority to control ingress or egress to and from a disaster area did not apply because there had not been any disasters in the areas in which

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their businesses were located. The court found “no merit” in that argument, and found the petitioners’ argument ignored “the nature of this virus and the manner in which it is transmitted[:]” “The virus spreads primarily through person-to-person contact, has an incubation period of up to 14 days, one in four carriers of the virus are asymptomatic, and the virus can live on surfaces for up to four days. Thus, any location (including Petitioners’ businesses) where two or more people can congregate is within the disaster area.” Therefore, the court held the COVID-19 pandemic triggered the governor’s authority under the emergency code and the governor had the authority to declare “the entirety of the Commonwealth a disaster area.” Finally, the petitioners argued the respondents exceeded their police powers by ordering the closure of businesses deemed to be non-life-sustaining. The court disagreed, discussing again the risks of the virus. The court noted the exponential increase in

positive cases and deaths in Pennsylvania within a short amount of time. The court found COVID-19 “does not spread because it is ‘at’ a particular location.” Citing person-to-person spread, the 14-day incubation period, its ability to remain airborne and its survival rate on surfaces, the court found “The protection of the lives and health of millions of Pennsylvania residents is the sine qua non [essential condition] of a proper exercise of police power.” There are several reasons why this opinion, which has nothing to do with insurance, can be helpful to policyholders. Policyholders are submitting claims and seeking recovery for their business interruption losses from closures and social distancing requirements related to the coronavirus. Although property insurance policies often include “business income” coverage, some insurers are denying these claims, arguing that the loss of business income was not caused by “direct physical loss of or damage to property,” as the policies require.

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The Pennsylvania Supreme Court’s opinion assists policyholders in their pursuit of coverage—and in refuting the insurers’ coverage defense—in several ways. First, in holding that COVID-19 constitutes a “natural disaster,” the court specifically found the virus is an “other catastrophe which results in substantial damage to property, hardship, suffering or possible loss of life,” thereby leaving the door open to the argument that property damage may result from the virus. Second, the court found the governor had the authority to declare the entirety of the commonwealth a disaster area, thereby giving the governor the authority to control ingress and egress throughout the state. Many insurance policies provide business income coverage when ingress/egress has been prohibited, such as this instance. Finally, the court rejected the notion there must be a confirmed case of the virus “at” any particular location. Instead, the court recognized the significant risk presented by this virus and that the risk is, essentially, everywhere. Therefore, to implement

social distancing aimed at reducing this risk, policyholders have suffered a “direct physical loss” of their property. Although DeVito does not directly address insurance coverage, the Pennsylvania Supreme Court’s opinion may be helpful to policyholders in their arguments for business interruption insurance as applied to their losses related to the coronavirus. Joann M. Lytle, a partner in the Philadelphia office of McCarter & English, is a nationally recognized insurance coverage litigator and has represented corporate policyholders in a wide range of industries. She can be reached at jlytle@mccarter. com. Jennifer Black Strutt is an associate in the insurance recovery, litigation and counseling practice group at McCarter & English. She can be reached at jstrutt@mccarter. com. We thank PropertyCasualty360 for reprint permission.

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Remsen, NY, Firefighters Welcome New Rig The Remsen, NY, Volunteer Fire Department welcomed a “new to us” pumper truck for their fleet. Department President Alex Karis said the 2002 Spartan/Darley pumper truck is being put into service after purchasing the used vehicle more than a year ago, in April 2019.

The Remsen Fire Department put this “new to us” 2002 pumper truck into service after purchasing it used from another department a year ago. CREDIT: Photo courtesy the Remsen Fire Department

They bought the 1,000-gallon truck from the Calcium Fire Department in Jefferson County and took possession of it in December. Since then, the truck underwent extensive body work for corrosion repair at Express Auto Body

in Remsen, followed by a trip to JPJ Electronics in Yorkville to get fitted for lights and radio equipment, Mohawk Valley Freightliner for further service and Valley Signs for lettering. “We finally have it back in our possession and are in the process of putting it into service now,” said Karis. He said they bought the truck used from another department “to save the fire district/taxpayers” money, stating that a brand new truck would likely cost more than $500,000. Karis said the department put just under $100,000 into buying the 2002 truck and making it ready for service. Karis said the money for the truck came from the department’s budget, as well as several years’ worth of savings and donations from the Remsen Barn Festival of Arts committee and the Remsen Rotary Club. The new truck will replacing an aging 1992 pumper. We thank the Rome Sentinel for reprint permission.

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PA Governor Extends COVID-19 Disaster Declaration

by Christen Smith, The Center Square

Pennsylvania Gov. Tom Wolf extended the state’s disaster declaration for COVID-19 another 90 days as legislation pends to terminate the order and curtail his authority over economic activity across the state. Pennsylvania Gov. Tom Wolf addresses COVID-19 mitigation strategies from his home office in March 2020. Credit: Pennsylvania Governor’s Office “Pennsylvanians have done a tremendous job flattening the curve and case numbers continue to decrease,” he said. “Renewing the disaster declaration helps state agencies with resources and supports as we continue mitigation and recovery.” The move will likely further strain the relationship between the

Democratic administration and the Republican majorities in the House and Senate dead set on reopening the

than 2 million as of June 4―threatens peace and stability across the state.

“Renewing the disaster declaration helps state agencies with resources and supports as we continue mitigation and recovery.” — Gov. Tom Wolf state’s economy faster than Wolf’s phased plan allows. The House voted 117-85 last week to send a resolution to the Senate that would end the first disaster declaration signed March 6 that Wolf says gives him broad, sweeping powers to shut down businesses and take enforcement action against those who don’t comply. Wolf said he would veto the resolution if it got to his desk. As of June 5, all of Pennsylvania’s 67 counties will resume some level of economic activity, so long as social distancing is practiced and employees receive adequate personal protective equipment. Still, Republicans argue the immediate public danger has waned and unrest over rising jobless claims—more

“The general public is growing increasingly angry about this,” said Rep. Russ Diamond, R-Lebanon, prime sponsor of the resolution. “If this continues, we could see the threat of civil unrest. The possibility of more damage being inflicted on this commonwealth by continuing this emergency rather than terminating is real.” Democrats have united behind the governor’s decision, noting the state’s reduction in COVID-19 cases is due, in large part, to his strict mitigation efforts. Others want to preserve the state’s access to federal aid afforded through the emergency declaration. We thank The Center Square for reprint permission.

Motor Vehicle Fatality Rates Jump 14% in March Preliminary estimates from the National Safety Council show that as Americans began driving less and covering fewer miles, the emptier roads became more lethal. Early data indicate a yearover-year 14% jump in fatality rates per miles driven in March, in spite of an 8% drop in the total number of roadway deaths compared to March 2019. The actual number of miles driven dropped 18.6% compared to the same time period last year. The mileage death rate per 100 million vehicle miles driven was 1.22 in March compared to 1.07 in March 2019. Through the first three months of 2020, the following states have experienced notable increases in the number of roadway deaths: Arkansas, California, Connecticut, Illinois, Louisiana, Nevada, New York, North Carolina, Oklahoma, Tennessee and Texas. States with notable decreases include Arizona, Hawaii, Idaho, Iowa, Maryland, Michigan, Oregon and South Carolina. Source: National Safety Council

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“I never would have thought that just a couple months later I’d be putting some of my employees in contact with the foundation to help them help or other assistance to members out,” Garcia said. of the industry in need. The timing of the pandemic “I really appreciated that help,” and economic shutdown was particKim said. “It wasn’t a crazy amount ularly tough for Garcia’s business. of money, but it was more the idea In January, he purchased three of this being an industry that helps new CMC spray booths to install, each other. It’s great being a part of along with an area dedicated to ADAS calibrations, in a 6,000-square foot addition under construction at the shop. Then, like many shops, he saw about a 70% drop in his $1-million-a-month business in late March and early April. Some employee layAn evening reception and silent auction in January in Palm offs were a painful reality, Springs, CA, helped the Collision Industry Foundation raise Garcia said. some of the funds now in its COVID-19 Fund One employee he had an industry that does that.” to lay off had just been hired less Carl Garcia, the owner of Carl’s than a month previously. Another Collision Center in Fall River, MA, had some recent health issues. Some said he was among the shop owners faced challenges in getting unemand industry vendors at an evening ployment claims going because the reception and silent auction in Palm state system was overwhelmed. So Springs, CA, that serves as an annual Garcia is thankful he could point fundraiser for the foundation. them to the foundation, which proContinued from Cover

Help from Foundation

vided some financial assistance to foundation, which provided assisabout a half-dozen of his laid-off tance to four of the shop’s technicians employees. laid off because of the pandemic. “It was great to be able to offer “This money helped put food on this option to employees who truly their table, helped pay rent or mortneeded it,” Garcia said. “It was actu- gages or utility bills, the basic necesally amazing how quickly [the Foun- sities that are needed when you are dation was] able to process it and get them some money. It went to people who really needed it.” Garcia said he remembers the foundation over the years raising funds to help individuals in the industry facing challenges because of Hurricane Katrina, the 2018 wildfires in California and major flooding in 2016 in Petra Schroeder, who serves on the board of trustees of the Collision Industry Foundation, speaks with California Missouri and West Virginia. “To have my own staff shop owner David Mello at the foundation’s fundraising event in January be the recipient of that same type of support, I don’t think I’ll ever impacted financially after suddenly forget,” Garcia said. “Once we are being laid off,” Horvat said. “To have back on our feet, I look forward to an organization that steps up and making contributions so others get helps our collision repair profesthe help that they were able to give sionals during times of hardship and my people.” crisis is another reason I admire our Tammy Horvat, manager of collision community.” Fred Martin Collision Center in Bar- Maryland shop owner Kim See Help from Foundation, Page 26 berton, OH, had similar praise for the

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Group 1 Automotive Appoints New CFO Group 1 Automotive, Inc., an international, Fortune 500 automotive retailer, announced the appointment of Daniel McHenry as chief financial officer effective Aug. 15. He will replace long time Group 1 CFO John Rickel, who has elected to retire from the company at the end of this year after almost 15 years of service. McHenry has served as Group 1’s UK finance director since 2007. Additionally, he is a member of the Association of Chartered and Certified Accountants in the UK. McHenry joined Group 1 in 2007 as part of the acquisition of Chandlers BMW in southern England, Group 1’s first venture in the UK. Prior to entering the auto retail business, McHenry had five years of experience with KPMG in the UK. Source: Group 1 Automotive

NY’s Reopenings Advance as Coronavirus Subsides: Cuomo by Matt Troutman, Patch

New coronavirus cases across New York dipped to pre-shutdown levels, adding fuel to accelerating efforts to reopen New York City, Hudson Valley and Long Island, said Gov. Andrew Cuomo. Cuomo on June 7 reported there were 781 new positive cases of COVID-19 across the state. About 1% of all people tested had a positive result—the lowest level since March 16, just days before Cuomo put the state on “pause.” “On those numbers we can advance the reopening,” he said. It’s good news for Hudson Valley and Long Island, both of which are on track to enter the second phase of reopening on June 9 and June 10, respectively, Cuomo said. Phase two means residents can get haircuts, shop in retail stores and dine outdoors, among other long-awaited, once-daily indulgences. Restrictions on social distancing, 50% capacity requirements and mandatory mask-wearing will remain. Cuomo also announced that graduations with up to 150 people

can start June 26, provided the numbers continue and social distancing restrictions are followed. New York City likewise is on track to enter phase one of reopening June 8, Cuomo said. Mayor Bill de Blasio, during his own news conference June 7, ticked

early to tell, so he again asked New Yorkers who attended protests to get tested. Assume you have been exposed and are positive for the virus, he said. “Act responsibly, get a test,” he said.

“Today’s indicators and thresholds once again show the fruits of your labors,” — Mayor Bill de Blasio off all the thresholds the city met in order to reopen―daily COVID-19 hospital admissions, ICU admissions and percentage of people citywide who tested positive for the new coronavirus. New York City is below all of those thresholds, de Blasio said. “Today’s indicators and thresholds once again show the fruits of your labors,” he said. But Cuomo said health experts, as well as himself, are worried about how mass protests over the killing of George Floyd and police brutality will affect the numbers. It’s too

There will be 15 new coronavirus test sites in New York City just for protesters, Cuomo said. People can find out where to get tested here. https://coronavirus. health.ny.gov/home We thank Patch for reprint permission.

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CIF Assistance

country to find out how CIF support has helped their employees.

Dalton Collision Nearly 30 years ago, Jerry Dalton opened Dalton Collision, a 13,000-square foot body shop in Blaine, TN. Since then, he and his team of 39 employees have focused on providing excellent service, and safety and peace of mind for customers. As the business expanded over the years, Dalton opened a second location in Knoxville last year. The facility is approximately 24,000 square feet and serves the north, central and eastern parts of Knoxville, as well as the surrounding counties. They first learned about CIF last year during the SEMA Show in Las Vegas, when Dalton watched CIF Board President Michael Quinn give a presentation about the organization. Dalton was impressed with the way CIF helped body shop employees at the time in California when they were dealThe team at Dalton Collision prior to the pandemic ing with wildfires. industry for allowing CIF volunteers to When his business began to deliver aid to collision repair profes- slow down, Dalton reached out to sionals and their families in need.” CIF for assistance. The human re CIF has received more than 630 sources director at Dalton Collision individual applications since March, applied for support on behalf of the the majority of which met the orga- employees at both locations. nization’s established criteria and When they received the checks were funded. from CIF, Dalton said it reminded him Although the application period of winning the Publisher’s Clearing ended May 31 and the COVID-19 House sweepstakes. fund is now exhausted, CIF is still “It was awesome,” said Dalton. trying to assist collision repairers “It sure helped out our employees. and encouraging general donations They were really appreciative.” from the industry. He is very grateful for the sup “I was inspired to join the CIF port from CIF and encourages other Board of Trustees in early 2019 collision repair facilities to reach out when I realized just how unique the when disaster strikes. organization is,” said Ann Gonza- Recently, Dalton said many of lez, CIF board vice president and VP the restrictions have been lifted in of strategic development for I-CAR. Tennessee and business is beginning “The support that CIF receives from to ramp up. across the collision repair industry “There are more cars on road, that allows us to then provide assis- which means more car wrecks,” said tance back to collision repair indi- Dalton. “We’re starting to see busividuals in need is exceptional, and ness getting back to where it was. It’s something I have never seen in other still not where it was but it is getting industries. I am proud to be part of a little better each week.” this generous community that, time As business returns to normal, and time again, steps up in times of Dalton’s goal is to increase sales to need to help our own.” $1 million a month. He attributes his Autobody News talked to three success to repairing vehicles correctbody shop owners from across the ly the way the manufacturer intended Bruce, Chris Caris, Benjamin Cupelli, Dave’s Collision Center/Halethorpe, Kelli Dewberry, Jeff Hendler, Kurt Lammon, Timothy Morgan, Partstrader, Clark Plucinski, Petra Schroeder, Sean Carey Consultants, Spanesi Americas, Tanya Sweetland, Tractable and John Yoswick. Funds were also contributed from monthly donors Meredith Bradshaw and Bill Enross. “We are once again grateful to belong to an industry that believes in supporting their own,” said Quinn. “We thank our generous donors and the

them to be and providing good quality customer service for the local community. Fix Auto Portland East & Fix Auto Gladstone Since the stay-at-home orders were first put into effect, Camille Eber said many heart-wrenching decisions have

and Doris, purchased the business in 1963, and Eber took over operations in 1989. Three years after joining Fix Auto Network in 2009, Eber’s nephew, William Bray, became a partner. They acquired their Gladstone location in 2013 and currently focus on repairing late-model vehicles.

“Since 2001, CIF has been dedicated to raising, managing and donating funds to provide emergency relief to collision repairers who have been impacted by natural disasters or other catastrophic events,” — Michael Quinn been made to save her two collision repair locations in Oregon, Fix Auto Portland East and Fix Auto Gladstone. This includes laying off some of the 23 employees to reduce overhead. “I’ve never been an extreme penny-pincher, and now we are analyzing nearly every dollar going out the door,” said Eber, co-owner of both locations. The southeast Portland shop, originally called Roth & Miller, was founded by Chet Roth and C.E. Miller in 1946. Eber’s parents, Jim

Eber learned about CIF’s COVID assistance from CRASH Network, a weekly online news digest, and forwarded the information to the employees who had been laid off. Although she and Bray provided them benefits for a period of time, they were looking for additional assistance. “We wanted to show our employees that there was more support that they may be able to receive if they acted on behalf of themselves and did so quickly,” said Eber. “We also wanted to show that our industry is a giving one.”

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‘Collisionista’ Petra Schroeder contacted Eber on a Saturday to verify the employees who had been laid off. “I am very thankful to her for doing the work for these people in need, and appreciate the tremendous support she continues to give to our industry,” said Eber. Seven of Eber’s staff received financial assistance from the organization. “What CIF did was above anything I would have imagined,” said Eber. “All business owners know the challenges of managing our businesses, so managing a non-profit like CIF by volunteers generous with their time, and supported by donors generous with their money, is nothing short of remarkable.” Eber is greatly appreciative of CIF’s assistance and encourages the industry to support its ongoing efforts. “Organizations such as CIF can be a safety net to a few or many— any filled need is better than none,” she said. “I want to send an enormous thank you to each person who has touched CIF over the years, including those responsible for the original idea, those giving of themselves to operate it, and the many

folks who have sent funds in the past and during these tremendously gut-tighteningly hard times.” Fuller Auto Body In Auburn, MA, Joshua Fuller grew up helping at his family business, Fuller Automotive. Established in 1914, the brand consists of five related companies and has a total of 60 employees, 42 of whom are in collision repair. Since becoming co-owner in 2003, the fourth-generation body shop owner has been passionate about growing the company and increasing industry awareness. As an active volunteer, Fuller has been part of the AASP-MA board directors and chaired the I-CAR volunteer committee for Massachusetts since 2014, and also participates in Collision Repair Education Foundation (CREF) fundraising events. Since the beginning of the COVID-19 situation, Fuller has looked for ways to maintain the safety of employees and customers. “I got into protective mode,” said Fuller. “As an owner, every day you walk in the front door and that is No. 1 on your mind: how do I make sure our

people are safe and protected and can perform the necessary services that our customers are in demand of?” The goal was to maintain some sense of normalcy while providing the ideal situation for employees. Ultimately, they had to scale down operations and furlough 11 people. As

At Fuller Automotive, a large tent in the parking lot provides customers a makeshift waiting room

a result, they instituted a work shift program where employees were provided 20 hours of work and could file for unemployment for an additional 20 hours. Fuller encouraged employees to apply for CIF assistance, and all 17 of those who filled out the application received funds. “They were ecstatic,” said Fuller. “CIF made it very easy to apply.

When they started to receive funds, they thought it was phenomenal.” He said everybody is feeling some type of pain right now and he is grateful CIF could provide support. “I was impressed by how they were able to come in and help so many of our stakeholders beyond what we could do. Every little bit helps,” said Fuller. “We were very fortunate to take advantage of it and so are our people. It’s definitely a welcome contribution.” Since the coronavirus restrictions, Fuller has recognized his employees’ dedication. They have kept busy, cleaning and painting the facility as well as making additional improvements. They also established a reopening committee to plan how to best operate when the business begins to ramp up. Currently, they set up large tents in the parking lot to provide customers a makeshift waiting room. “At the end of the day, we really want to make it welcoming for people,” said Fuller. Fuller said initiatives like these help them focus on moving forward and staying positive. “We want to keep our identity as a brand and provide superior service

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as we’ve always done,” said Fuller. “We’re just trying to weather the storm and know that brighter things are on the other side.” For more information about CIF, visit: http://www.collisionindustryfoundation.org, Facebook https://www.facebook.com/CollisionIndustryFoundation/ or LinkedIn. https://www. linkedin.com/organization-guest/ company/collision-industry-foundation-inc?challengeId=AQFdirMkIKv2vwAAAXKWK8w8XsC9LJ38V4xkntk27UXZlWI8 w c y 8 i 5 T T 0 x N g y Yp G o K W q IsIthEplNdmgWbiYn0dGh2aLtaQBKQ&submissionId=380cc0c5 -edb3-1616-e3da-12703bd1872b To apply for assistance: https:// www.collisionindustryfoundation.org/ disaster-assistance-request-form. html To donate: https://www.collision industryfoundation.org/donate.html

www.autobodynews.com

New Order Will Allow NY Businesses to Deny Entry to Consumers with No Masks by Steve Bittenbender, The Center Square

New York Gov. Andrew Cuomo announced May 28 he would sign an executive order that gives private businesses the right to deny entrance to anyone who does not wear a face mask. The governor said the order is a critical part of the reopening strategy for New York as it emerges from the COVID-19 emergency that has produced more than 366,000 confirmed cases statewide. “We’re giving the store owners the right to say, ‘If you’re not wearing a mask, you can’t come in,’” he said during his daily COVID-19 briefing in Brooklyn. “That store owner has a right to protect themselves. That store owner has a right to protect the other patrons in that store.” To that effort, Cuomo also announced the state would donate a million masks to residents in some of the New York City neighborhoods hardest hit by the coronavirus. As every other region in the state except for New York City has entered phase one of the reopening plan, the governor said the focus now will be getting the city—which with

more than 201,000 confirmed cases has had more than France, Germany or India—to begin reopening. Cuomo has said he has worked hard to communicate why it’s important for people to wear masks

People wearing masks wait in line for food donations May 13 in the Brooklyn borough of New York City, during the coronavirus pandemic. Credit: John Minchillo, AP photo

but his daughters told him he’s not reaching everyone. So, at the Brooklyn briefing, the governor invited a couple of guests, actress Rosie Perez and comedian Chris Rock, to aid in getting the message across in their native borough. “For those who are not adhering to the guidelines, just know that you’re not just disrespecting yourself, you’re disrespecting your loved ones, your communities, your neighbors, everyone,” said Pe-

rez, best known for her roles in “Do the Right Thing” and “White Men Can’t Jump.” “So, please spread love the Brooklyn way, get tested, wear a mask and let’s help fight this virus.” Not in attendance May 28 was New York City Mayor Bill de Blasio, who does not enjoy the best of relationships with Cuomo. When asked about the mayor’s absence and getting on the same page with him, Cuomo said the two talk regularly. However, the governor also reaffirmed who will be calling the shots on the city’s reopening. “There’s state guidelines period and that’s it,” he said. “So there’s only one page, so you can’t be on a different page when you only have one page.” New York State reported 163 new confirmed cases of the virus, which Cuomo said was the lowest it has been during the emergency. The state reported 74 deaths for May 27 from COVID-19, marking the fourth straight day with fewer than 100 deaths and the third consecutive day where the death toll fell under 75. We thank The Center Square for reprint permission

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Rent for 200 Tenants er of Salerno Auto Body in the heart of Williamsburg in Brooklyn, NY, waived rent for all 200 tenants living in his 18 properties. When Salerno decided to waive the rents for April, he posted the following message in all of his buildings: “Due to the recent pandemic of coronavirus Covid-19 affecting all of us, please note that I am waiving rent for the month of April, 2020.” The Salerno family has three separate businesses, including a service station, a mechanical repair shop and a body shop. Owned for three generations, Salerno Auto Body opened in 1959, fixing Buicks, Cadillacs and Lincoln Continentals for guys named Nunzio and Carlo. Salerno’s businesses have played an integral role in the neighborhood since Day One, and when Mario retires, his son Sal, 33, will assume the helm. Today, Sal runs the body shop and Mario’s youngest son, Mario

Jr., also works in the business on the mechanical side. A collection of colorful locals often convene at the shop until Mario tells everyone it’s time to get back to work.

Many of Brooklyn’s most colorful characters stop by Salerno’s to share stories and hang out

The neighborhood is calling him “Super Mario” and praising him for a gracious act that changed the lives of more than 200 people. All he asked of his tenants is to pay it forward if possible. “If my tenants can help others because of this, that’s what we are looking for,” he said. “A lot of people have told me about charitable things they’ve done after getting help from

us and that always makes me smile.” Salerno is currently tapping into more than his allotted 15 minutes of fame, but he’s not about that. When he sees someone in need, he doesn’t hesitate to help them in any way he can. Salerno’s selfless act led to a big story in The New York Times and an appearance on The Ellen Show. He’s pleasantly surprised by all the hoopla, and a little reluctant to receive the praise and acclaim, according to son Sal. “My dad does stuff like this all the time and people don’t know about it,” he said. “He went to Texas one time to save 63 puppies from being destroyed. We have a friend who owns a pet shelter and when he told my father about it, he hopped in one of our Sprinter vans and drove 50 hours roundtrip. Some of our tenants now own those dogs, so we get to see them all the time. They call them ‘Mario’s dogs.’ “In addition, we close during the holidays and invite all of the local schools here to celebrate Christmas. We get a Santa and go way over the top with decorations and small gifts

for the kids.” The body shop portion of the family business repairs 35 to 40 vehicles every month in a hyper-competitive market, where “accident chasers” are a reality. “Here in this area, shops will use their police scanners and then rush over to where the accidents are and try to get the car towed to their shop. We have been around long enough and have a great reputation for being honest,” Salerno said. “So, we don’t have to chase accidents or rely on DRPs for business, because people know who we are and that we’re not just into this for a quick buck.” Although Salerno does not want to disclose how much money he would lose due to not collecting rent in April, the Times estimated he was likely foregoing more than six figures in rental income. “It’s not about the money,” he said. “These are unique times and we need to work together to make it through this. I learned long ago that money isn’t everything. I thank God every day for being in a position where I can do this.”

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PA Small Business Grant Program to Provide $225 Million in Relief Aid to Recover From COVID-19 Losses by Jan Murphy, PennLive

As Pennsylvania moves into the recovery era from the COVID-19 pandemic, some $225 million of the $2.6 billion in federal coronavirus relief money the state received will be directed to help small businesses get back on their feet.

Gov. Tom Wolf announced $225 million will be distributed to community development financial institutions to go out to help Main Street and historically disadvantaged businesses get back on their feet in the wake of the COVID-19 pandemic. Credit: Jan Murphy

“Businesses will be able to use the grants to cover operating expenses during the shutdown and to help

them in their transition to reopening,” said Gov. Tom Wolf in announcing the program during a televised news conference on June 8. He said the grants also can be used to cover technical assistance and training to help business owners stabilize and relaunch their businesses. Some $100 million will be set aside for the Main Street Business Revitalization Program, to help small businesses that experienced loss during the governor’s ordered business closure that began March 19, or need to make changes to their operation due to COVID-19. Another $100 million will be specifically set aside to help historically disadvantaged businesses recover. Businesses fall into this category if socially and economically disadvantaged individuals own at least 51% and manage and control its operation. The remaining $25 million is earmarked for the Loan Payment Deferment and Loss Reserve Program,

which will offer forbearance and payment relief for existing portfolio businesses that are struggling. The funding will be distributed through Pennsylvania’s community development financial institutions,

“...If we fail to assist small businesses we rely on, we’re going to walk to empty windows, leaving the fabric of our communities behind” — Gov. Tom Wolf which are expected to receive the money by the end of this week. Gordon Denlinger, state director for the NFIB Pennsylvania, which represents the interests of small businesses, said the sooner those institutions get the money into businesses’ hands the better. “We know a lot of businesses are right on the ragged edge at this point,” he said. “Timeliness is in line with what we’re hearing about the needs of small business owners so that timing is a very positive thing.” While Denlinger was uncertain

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James Burnett, vice chairman of the network of financial institutions that will be distributing the money, said they recognize how important it is to “support the smallest, most vulnerable businesses throughout the commonwealth” affected by the COVID-19 pandemic. Denlinger acknowledges there clearly is a need for that type of targeting of resources at this point. However, he said he wishes there would be a broader distribution of outlets across the state, noting that many of the community development financial institu-

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how many businesses are past the point of having the ability to reopen, he suspects it will be many. But he applauds this move to provide grants to help those who haven’t yet reached that point.

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tions are focused on helping businesses in metro areas. According to Senate Democrats, businesses must have been operating on or before Feb. 15 and must have paid taxes to the state and federal government to be eligible. Main Street and historically disadvantaged businesses must have 25 or fewer employees and experienced losses as a result of the governor’s stay-athome order to qualify. The state Department of Community and Economic Development will provide oversight of the program. “Since this pandemic began, we have heard the needs of the auto body shops, the barbershops, the beauticians, the pizza shop owners, the soul food establishments and other businesses in the communities,” said Sen. Vince Hughes, D-Philadelphia. “The needs of these businesses that were unable to get much needed help from other state and federal programs were a priority” to his caucus in its proposal for spending the state’s allotment of the federal stimulus money. Businesses will be required to submit proposals documenting their

losses, projected revenues, the duration of their closure, and any state, federal and local government relief aid they have received. “After months of coming together as a commonwealth to protect ourselves from this virus, light is finally at the end of the tunnel,” Wolf said. “However as we begin to emerge from our homes and walk down the streets of our towns again, we must do more. If we fail to assist small businesses we rely on, we’re going to walk to empty windows, leaving the fabric of our communities behind. So we have to make certain that our florists, and our barbers and our coffee shops and other small businesses emerge from the pandemic with a viable path forward.” An earlier state-funded $60 million small business assistance program, which provided loans of up to $100,000 to 745 businesses, was tapped out quickly. According to a community and development spokeswoman, nearly 900 applications were received requesting more than $75 million in loan help. We thank PennLive for reprint permission.

NMSDC Secures Partnership to Connect MBEs with PPP Funding The National Minority Supplier Development Council, Inc. (NMSDC) announced the establishment of a new partnership between its Business Consortium Fund (BCF) and Midwest BankCentre to assist certified Minority Business Enterprises (MBEs) with funding access through the SBA’s Paycheck Protection Program (PPP.)

Details about how to access funding are available online by visiting BCF’s website at www.bcfcapital. com/ppp-disclosure. On May 28, the U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, announced it is setting aside $10 billion of Round 2 PPP funding to be lent exclusively by Community Development Financial Institutions (CDFIs). NMSDC recently surveyed its certified MBEs and learned as of two weeks ago, more than 60% of those surveyed had not yet received their funding, leading to frustration and disillusionment about the prospect of receiving PPP support. Source: NMSDC

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24 JULY 2020 AUTOBODY NEWS / autobodynews.com

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Continued from Cover

COVID-19 Exploitations noting, “The insurance industry has been saving millions during this current state of emergency. Some insurers have provided minimal discounts of premiums (the average is about 15%) due to a dramatic reduction in driving that has reduced claims by as much as 70%. They do so while exploiting those of us in the ‘essential’ business of collision repair. The actions of the insurance industry are unfair to consumers and repairers alike and it only magnifies the insurers’ commitment to subordinating ‘consumer safety’ to ‘corporate profit.’” AASP/MA also addressed a letter to Healy, copying the previously mentioned group, to commend her handling of the current situation regarding insurers’ exploitative practices. Reiterating the added expenses of disinfecting and PPE materials, Papageorg pointed out the protocols required by the CDC and OEMs for proper disinfection, explaining, “Many insurers have taken the cavalier position that the procedures are not necessary, and tell shop owners,

‘Just charge the vehicle owner.’ They do this while at the same time refusing to send their own staff and independent appraisers to personally view the vehicle.” Since insurers have also refused to send appraisers to repair facilities to protect them against the spread of COVID-19, shops have also been forced to take on the additional administrative costs of preparing estimates, documenting the damage, uploading the information and more. “Because photos and videos are poor substitutes for personal inspection of the damages, many insurers indicate, ‘I just don’t see it.’ This only adds to the frustration and creates additional administrative cost directly associated with the specific claim, which again the insurers refuse to reimburse, exploiting the current conditions further. This puts the collision repairer further into a tenuous position,” Papageorg pointed out. The letter stressed the enormous changes shops have made in standard operating procedures in an effort to curb the spread of the coronavirus while still servicing consumers’ vehicles. “Our industry has selflessly donated not only time and energy

to help those stricken or confined to their homes, but also donated hundreds of thousands of dollars in PPE equipment to protect first responders, the true heroes in this fight,” Papageorg added. The ADALB also received a letter from AASP/MA, requesting an additional emergency meeting to “discuss an advisory ruling to clarify and put an end to the practice of insurers who are refusing to pay for the procedure of pre- and post-application of disinfecting material and associated PPE equipment to vehicles in need of collision repair for the protection of the vehicle owner and collision repair facility.” The letter requested the ADALB address the practice of insurers refusing to pay for the additional repair cost imposed on repair facilities when the insurer insists on the use of the “expedited supplement” procedure or the writing and photo documentation of the original estimate. Stressing the potential impacts of the expressed concerns with insurers’ exploitative practices during the COVID-19 lockdown, Papageorg warned, “The survival of vehicle owners, collision shops and their technicians are at risk.”

CCC Reports Growth of Photo Estimate, AI-Supported Claims CCC Information Services Inc. (CCC) reported May 28 that photo estimates and AI-supported claims have expanded at a record pace exceeding double-digit growth since the beginning of the year. The rapid adoption of digital technology is in direct response to social distancing and work-from-home protocols initiated to combat COVID-19. CCC industry data shows the insurance industry recently surpassed 3 million estimates initiated leveraging photo technology, since tracking began in 2018. The company also reports the percentage of claims processed through CCC® Quick Estimate, the company’s mobile photo estimating solution, has more than doubled from January to April, as carriers are accelerating use and adoption of digital tools in response to COVID-19. CCC also reports a similar trend in estimates written using CCC® Smart Estimate, the world’s first AI-guided estimating solution. Smart Estimate applies AI and estimating logic to photos captured with Quick Estimate. Source: CCC

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Ford Cautions Against the Use of Aftermarket Glass Ford Motor Company issued a statement outlining what it says is the need for OEM glass to be used in replacement on the company’s vehicles.

The statement says the “[w] indshield and side glass play an integral role in the performance and functionality” of some of the passenger safety features and “it is critical that the vehicle be restored to proper operating condition” when it comes to glass removal and replacement. “The original glass used on Ford Motor Company vehicles is designed and built to provide optimum ﬁt, function, safety and structural integrity. The quality, performance and safety of aftermarket replacement windshield and side glass may not meet Ford Motor

Continued from Page 12

Help from Foundation voiced similar appreciation for the foundation. “I’m going to keep this in the back of my mind, and whenever they ask for what they need, I’m going to try to respond.” The foundation’s COVID-19 Fund received more than $260,000 in donations. To donate, visit: https:// www.flipcause.com/secure/cause_ pdetails/Nzg3MTk= To apply for assistance, visit: https://www.flipcause.com/secure/ your_details_more_info/Nzg3NTQ =/49150 Petra Schroeder, an industry consultant who serves on the board of trustees for the foundation, said its COVID-19 Fund has received more than 560 applications for assistance, though that includes some from people outside the industry, who were denied since they did not meet the foundation’s criteria). By late May, more than 350 valid applicants—70%—have already received funds, with the rest in some stage of the veriﬁcation process.

Company’s exacting specifications, and can result in key safety features not functioning properly and reduced customer satisfaction in the performance of their vehicle,” Ford says in the statement. “For these reasons, Ford Motor Company does not approve the use of aftermarket windshield or side replacement glass. Only by using Ford Original Equipment Carlite replacement glass can you be assured of the fit, function, safety and structural integrity of the repair.” The company goes on to list the specific links between glass and the technology in their cars. Some windshields have cameras and integrated camera brackets for use in different Advanced Driver Assistance Systems (ADAS), and Ford says these cannot be replicated on aftermarket windshields, some of which, the company indicates, “often contain distortion that adversely affects the cameras operation, which can result in improper ADAS operation.” Head Up Display (HUD) windshields are specifically designed and manufactured to elim-

Industrial Finishes & Systems Provides Resource Guide

inate secondary HUD images, and SoundScreen® acoustic windshield and side glass are engineered with acoustic dampening technology

Industrial Finishes & Systems Inc., a leading distributor of automotive paint, equipment and supplies, is pleased to announce the availability of “Road to Recovery: A Resource Guide to Restarting Your Body Shop.” As the nation emerges from the COVID-19 crisis and states begin to ease restrictions, drivers are returning to the roads and body shops are seeing an uptick in estimates and scheduled repairs. The guide is provided as a resource to help body shop owners who are bringing employees back to work and welcoming customers following the past few challenging months. Oﬀered free of charge, the guide is available for download at https://industrialﬁnishes.com/ road-torecovery.pdf. Source: Industrial Finishes & Systems

within the glass layers to reduce road, wind and other exterior noise to maintain the quiet interior ride of the vehicle, none of which, Ford says, can be duplicated to the same degree by aftermarket glass. “Aftermarket glass often does not meet the same stringent speciﬁcations as genuine Ford glass and can result in poor quality HUD performance,” according to the statement. We thank glassBYTEs.com for reprint permission.

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Wellesley Volkswagen 231 Linden St., Wellesley, MA 02482 Ph: 800-228-8344 / Fx: 781-237-6024 Hours: M-F 7:30-5; Sat 7:30-4 wellesleyvwparts@aol.com Contact: Dan Bettencourt / Wholesale Parts Manager

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Cityside Subaru 790 Pleasant St., Belmont, MA 02478 Ph: 617-826-5013 / Fx: 617-489-0733 Hours: M-F 7:30-5:30; Sat 8-4 parts@citysidesubaru.com North End Subaru 757 Chase Rd. (Rte.13), Lunenburg, MA 01462 Ph: 888-686-4387 / Fx: 978-582-9843 Hours: M-F 7:30-5:30; Sat 8-4 parts@northendsubaru.com www.northendsubaru.com

Colonial Cadillac of Woburn 201 Cambridge Rd., Woburn, MA 01801 Ph: 781-935-7009 / Fx: 781-933-7728 Hours: M, T, Th, F 7-5; W 7-8; Sat 8-4 www.buycolonialcadillac.com Colonial Chevrolet 171 Great Rd., Acton, MA 01720 Ph: 978-263-3994 / Fx: 978-263-8587 Hours: M-F 7-5; Sat 8-4 parts@colonialchevrolet.com Colonial South Chevrolet 361 State St., Dartmouth, MA 02747 Ph: 508-997-6711 / Fx: 508-979-1219 Hours: M-F 8-5; Sat 8-4 parts@colonialsouthchevrolet.com Colonial West Chevrolet 314 John Fitch Hwy., Fitchburg, MA 01420 Ph: 978-503-7480 / Fx: 978-345-1152 Hours: M-F 8-5; Sat 8-4 autobodynews.com / JULY 2020 AUTOBODY NEWS 27

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HONDA CONNECTICUT

NEW

Lia Honda of Enfield Enfield

800-221-3131 860-741-3401

Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com

MAINE

Berlin City Honda South Portland

800-640-6685 207-774-6685

D sba

Dept. Hours: M-F 7:30-5:30 mmmparts@berlincity.com

Prime Honda Saco

207-391-7910 207-282-0900

Dept. H anth

Dept. Hours: M-F 7:30-6; Th. 7:30-7; Sat 7:30-4 klavalle@driveprime.com MARYLAND

Criswell Honda

Dept. H ms

Germantown

866-738-2886

Dept. Hours: M-Thu 7-9; Fri 7-7:30; Sat 8-6 hondaparts@criswellauto.com MASSACHUSETTS

Dep

LIA Honda Northampton Northampton

800-369-7889 413-586-6043

Dept. Hours: M-F 7:30-5:30; Sat 8-4 dstanisewski@liacars.com

De rt22h

ACURA MASSACHUSETTS

Acura of Boston Brighton

800-254-1169 617-254-5400

Dept. Hours: M-F 8-5:30; Sat 8-5 bruce.fisher@acuraofboston.com

Acura of Peabody

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28 JULY 2020 AUTOBODY NEWS / autobodynews.com

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Please contact these dealers for your Honda or Acura Genuine parts needs. NEW JERSEY

NEW JERSEY

NEW YORK

PENNSYLVANIA

Clinton Honda

Sussex Honda

Lia Honda of Williamsville

Shadyside Honda

877-657-2787

800-842-0557 973-579-3500

877-659-2672 716-632-3800

800-468-2090 412-390-2908

Annandale

Dept. Hours: M-F 8-5 chrish@clintonhonda.com

Honda of Turnersville Turnersville

800-883-0002 856-649-1584

Dept. Hours: M-F 8-6; Sat 8-4 sbaptist@penskeautomotive.com

Hudson Honda West New York

866-483-6917 201-868-9500

Dept. Hours: M-F 7-7; Sat 7:30-5; Sun 8-3 anthony.perrone@hudsonhonda.com

Newton

Dept. Hours: M-F 8-5 realhondaparts@sussexhonda.com

VIP Honda

North Plainfield

908-753-1680

Dept. Hours: M-F 7:30-6; Sat 8-3 kevinh@viphonda.com

Williamsville/Buffalo

Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com

Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com

Shenango Honda

Ray Laks Honda

Hermitage

West Seneca

716-824-7852

Dept. Hours: M-F 7:30-8; Sat 7:30-5:30 ekuznicki@raylaks.com

NEW YORK

Brewster Honda

Apple Honda

Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com

800-960-9041 717-848-2600

845-278-4177

800-858-0849 724-981-7106

Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@shenangoauto.com

Sussman Honda

PENNSYLVANIA

Brewster

Pittsburgh

Roslyn

800-682-2914 215-657-3301

York

Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com

Madison Honda

Dick Ide Honda

Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com

800-648-0293 973-822-1710

800-462-0056 (N.Y.) 585-586-4919

Baierl Honda

802 Honda

724-940-2006

802-223-9700

Madison

Dept. Hours: M-Thu 7-8; Fri 7-6; Sat 8-6; mschumer@madisonhonda.com

Rossi Honda Vineland

800-893-3030 856-692-4449

Rochester

Dept. Hours: M-Thur 8-8; Fri 8-5:30; Sat 8-5 parts@dickide.com

Dept. Hours: M-F 7:30-5; Sat 8-Noon hondaparts@802cars.com

Syracuse

Route 22 Honda

Lia Honda of Albany

973-705-9100

800-272-6741 518-482-2598

NEW JERSEY

Dept. Hours: M-F 8-5; Sat 8-4 johnryan@baierl.com

315-471-7278

Dept. Hours: M-F 7:30-5:30; Sat 9-1 parts@lamacchiahonda.com

Dept. Hours: M-F 7-7:30; Sat 8-5 rt22hondaparts@route22honda.com

Berlin

Lamacchia Honda

Dept. Hours: M-F 6:30-5; Sat 7:30-3 dave@rossihonda.com

Hillside

Wexford

VERMONT

Albany

Dept. Hours: M, T, W, F 7:30-5:30; Thur 7:30-8; Sat 8-5 mjerard@liacars.com

NEW JERSEY

NEW YORK

PENNSYLVANIA

Acura Turnersville

Park Ave Acura

Curry Acura

Baierl Acura

888-883-2884 856-516-6060

888-690-7621 201-587-0028

800-725-2877 914-472-7406

800-246-7457 724-935-0800

Turnersville

Dept. Hours: M-F 8-5; Sat 8-4 kristen.powell@penskeautomotive.com

Bill Vinceâ&#x20AC;&#x2122;s Bridgewater Acura Bridgewater

908-704-0307

Dept. Hours: M-F 8-7; Sat 8-4 mattn@bridgewateracura.com

Elite Acura Maple Shade

856-722-9600

Dept. Hours: M-F 8-5; Sat 8-4 bmartinsen@group1auto.com

Maywood

Dept. Hours: M-F 8-6; Sat 8-3 ron@parkaveacura.com NEW YORK

Acura of Westchester Westchester

914-834-8887

Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com

Scarsdale

Wexford

Dept. Hours: M-F 8-6; Sat 8-5 parts@curryacura.com

Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com

Paragon Acura

Davis Acura

718-507-3990

866-50-ACURA 215-943-7000

Langhorne

Woodside

Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com

Smithtown Acura

Sussman Acura

St. James

888-832-8220 631-366-4114

Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com Jenkintown

Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com

800-826-4078 215-884-6285

Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com

autobodynews.com / JULY 2020 AUTOBODY NEWS 29

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Determining Whether—and How—to Charge for OEM Research I get a lot of questions from shops regarding billing for the process of researching OEM repair procedures. Obviously, I can’t tell anyone whether to charge for this, nor how much to charge, but I can point to some things you may want to consider as you make that decision for your business. First, I can tell you what our “Who Pays for What?” surveys (www .crashnetwork.com/collisionadvice) indicate about what’s happening in the industry related to billing for OEM procedure research. The surveys definitely show a growing number of shops are charging an administrative fee for this work. Back in 2015, three in four shops said they’d never sought to be paid such a fee. Last year, just shy of half (49 %) said they had. Among those seeking to be paid, about half said the largest eight insurance companies weren’t paying the fee, but

16% said otherwise, saying they were being paid “always” or “most of the time” for OEM research. That was up from just 6% five years ago. Next, I can tell you the two aspects to keep in mind as you deter-

but most charge a subscription fee. If you’re working on a type of vehicle you rarely repair, you might just pay for a day or two of access to that automaker’s procedures, and your receipt for that can serve as part of

A “Who Pays for What?” survey last fall found more than two in five shops at least sometimes include a line item charge to cover their subscription fees to OEM repair information

the justification for your charge. But maybe you buy annual subscriptions to some automakers’ procedures because you use them regularly. A “Who Pays for What?” survey last year, for example, found more than

mine whether and what to charge for OEM research. First, consider what you’re spending to access the OEM procedures. A few automakers make access to the information available at no charge,

25% of shops have an annual subscription to the Honda/Acura repair information website, and even more have one to the Nissan/Infiniti website. In that situation, you might consider calculating a per-vehicle cost for that access. Say you pay $400 a year to access one automaker’s information, and you repaired 100 of that automaker’s vehicles last year. Then that access averaged $4 a vehicle. Whether you bill for it—marked-up or not—is another business decision for you to make. Our surveys last year asked whether shops charge a separate line item specifically to cover the access fees they pay for OEM information. Almost one in four (23 %) say they always or almost always do, and another 20% said they do when using an OEM site for which they don’t have an annual subscription.

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The second thing to consider as you determine whether and what to charge for OEM research is the labor time involved. That consists of the time to find all the needed information within the OEM system, read it, print it and distribute or review it as needed with technicians. As many of you are likely well aware, that can be a time-consum-

el. You need to know, for example, what’s involved in removing and reinstalling the bumper cover. You need to know, if removing and reinstalling a door is involved, whether you need to reinitialize the pinch protection on the window. You need to know what steps are required after reconnecting the battery if disconnected for welding. You need to

el and may change over time. It also can involve digging for needed information other than the first place on the OEM website where you might assume you’d find it. I was contacted by a shop that had researched the OEM procedures for replacing a rocker panel on a specific vehicle. Because no sectioning procedure was shown, the shop re-

Among nearly 500 shops responding to a “Who Pays for What?” survey last summer, about half of shops acknowledged never seeking to be paid for the research of OEM repair procedures they do, yet among those who do charge, 16% say they are paid for it regularly

ing task. One of my teammates, Josh Kuehn, recently wrote an estimate to replace a quarter panel on an Acura MDX. He had to pull more than 90 pages of OEM repair procedures. It’s not a matter of just pulling the procedures for the quarter pan-

look up all the corrosion protection steps involved. Some might argue that Josh should know some of what’s included in those procedures. But you can’t take anything for granted, because procedures vary from model to mod-

placed the entire rocker panel. The insurance company involved refused to pay because there was a sectioning procedure. It just was included under the door post section of the OEM website. So sometimes you have to think

outside the box and look in other areas as you do the research. All of the OEM websites are organized differently. I had a similar experience to Josh’s when I recently wrote an estimate to replace a quarter panel on a Toyota Camry; more than 90 pages of documents were involved. I by no means claim to the best at researching OEM procedures, but I believe I’m above average. Yet I easily had five hours into researching the OEM procedures and writing the estimate. Now obviously, the more OEM research you do, the better and faster you will get at it. Repetition breeds efficiency. That’s why a few shops— our surveys indicate about one in 20—designate a particular person to do all the OEM research. There are third-party solutions that standardize the organization of the OEM information, which is great, though I still am a proponent of accessing the OEM information directly. But in any case, this is definitely not a five-minute task. I know there are efforts under way by automakers, estimating sysSee OEM Research, Page 34

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The Right Part The Right Price, , at The Right Time ! autobodynews.com / JULY 2020 AUTOBODY NEWS 31

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32 JULY 2020 AUTOBODY NEWS / autobodynews.com

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with Erica Schroeder

Industry Insight

—John Yoswick is a freelance writer based in Portland, Oregon who 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.

with John Yoswick

Shops Share More Ideas on How to Get Work In the Door

Shop Showcase

Shops’ backlog of work dried up this on marketing and radio ads, includspring, with one national survey of ing advertising for restoration work, 500 shops finding that even in April, which we have not done in more with Ed Attanasio more than three in four could sched- than 20 years,” he said. ule any new work within one week Another New Hampshire shop or less. owner said he’s halted ads “slamming So what steps are shops taking insurance companies,” and is instead to try to get more work in the door? “projecting a positive attitude that we Massachusetts shop owner Carl are all in this together and we all will Garcia said being a LINE-X fran- pull through, and that my business with Ed Attanasio chise has helped, as Carl’s Collision will be here to help out the community Center has seen an influx of custom- in any way.” ers putting some money—including Gigi Walker of Walker’s Auto federal stimulus funds—into fixing Body in Concord, CA, is calling her up their pick-ups. shop’s regular fleet accounts to ask if “We’ve gotten very big into RVs, they have “any clean-up work we can fixing a lot more of them than ever do on any of their fleet vehicles.” She with Ed Attanasio before,” Garcia said. “I think we’re said the shop is offering free detailing going to have to have an open mind for each vehicle that comes in, and is about doing different types of work to “doing work for the food bank fleet at survive in the future.” no cost to keep them on the road.” Michael Berounsky of Ben’s Auto Jeanne Silver of CARSTAR MunBody in Portsmouth, withNH, Edagreed. Attanasio delein in Illinois said they are pursuing “We’re spending more money more fleet work as well, and is having

Social Media for Shops

SEMA Show Goes On

the shop’s marketing manager “contact local agents on a regular basis to let them know we are open.” The shop has been getting a lot of customer engagement with “Guess the Estimate” contests, in which the shop posts photos of a damaged vehicle on its Facebook page and offers gift cards to local restaurants to those whose guesses come closest to the actual repair costs. A shop in North Carolina installed a large sign in front of the shop to honor students graduating this spring; anyone who posts a photo of themselves in front of the sign on Facebook is being entered into a drawing for three cash prizes, totaling $800. John Quinonez of Kidd Collision in Garden City, NY, said he has started a business referral program through Alignable.com. A Pennsylvania shop is marketing that it is prioritizing “fast track”

Media and Publicity for Shops

Shop OEM Research Continued from Page 31

repairs for any first responders. Old Dominion Collision in Eugene, OR, is sprucing up the “curb appeal” of the facility. “We are keeping everyone busy— using our PPP loan money—making lots of needed updates to the shop: painting, concrete resurfacing, front of building facelift, etc.,” shop owner Dustin Caldwell said. He said the company is also adjusting some of its social media and online marketing strategies, such as halting its location-specific geo-fencing, which shows ads to those within a specific geographic boundary, such as another body shop. “We are finding that not many people are shopping around, and are just picking a shop and going there,” Caldwell said. “It just didn’t make sense targeting our competitors when they are seeing such a reduction in traffic as well.”

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with Stacey Phillips

tem providers and others to create solutions to these challenges, to help reduce the amount of time it requires to find the correct dozens of pages of documents needed for most repairs. Stacey you Phillips But until with that happens, need to keep doing it, and consider whether it is something for which you should charge. And above all, save all the researched documents with the job file, so in case you ever need to do so, with you can prove how Stacey Phillips the automaker called for the vehicle to be repaired at the time you did it.

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34 JULY 2020 AUTOBODY NEWS / autobodynews.com

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ATI Shares Five-Step Rapid Recovery Plan for Automotive and Collision Repair Shops by Chasidy Rae Sisk

The Automotive Training Institute (ATI) on May 19 shared valuable information related to the current situation and how to survive the pandemic in “Beyond COVID: A 5-Step Rapid Recovery Plan for Auto Shops.” ATI Senior Instructor and Coach Chris Brower discussed how to build customer trust and comfort, adjust marketing plans for today’s business environment, restore car count, build cash flow and “prepare to hit the ground running at the outbreak winds down.” “It’s going to be a while before we return to normalcy, and when we do, there will be new norms,” Brower began. “We need to understand that and stayed focused on our goals and our vision. We can’t allow COVID-19 to be something that prevents us from moving forward; we can’t let it distract us from what we ultimately want out of our business. “You need to be profitable because it takes money to do the things

you want, so we need to get back to some of the basics.” Most shop owners have goals that include more free time, retiring with financial security, finding quality employees, keeping employees happy and making more money, but all those goals begin with having more money.

“Shops sell parts and labor, and that should be a 50/50 mix,” Brower explained. “Anything you make money on has to be a cost of goods sold on your income statement. Producing sales, managing the cost of goods sold and then making changes as possible is the most basic way to run a successful shop.” When gross profit is equal to a shop’s fixed expenses, that’s the

break-even point. Before a shop owner even opens the door to customers, the shop starts in a deficit where a certain amount of money is needed just to get back to zero. Plus, money must be made on top of that to cover operating costs. “It costs money to operate every day,” Brower pointed out, explaining how to calculate the true cost of technicians, including wages, taxes and benefits. “You need to evaluate this cost for every team member to see who’s pulling their weight, but you also want to look at this as a team number to determine how much the team needs to produce,” Brower said. “It takes money to provide your team’s benefits, and the better the benefits you offer, the better you’ll be at attracting, hiring and retaining the right people. “There are too many things in our business that slow us down and are out of our control. That’s why establishing your shops effective labor rate is so important,” Brower said. “Your shop's effective labor rate is

INFINITI OF NORWOOD

what your team needs to produce per hour to hold the desired 60% labor margin to remain profitable. “Margins make you profitable, but dollars pay your bills and allow you to accomplish the things you need and want to do.” Brower reminded attendees they need to make enough money to cover their expenses and have sufficient funds to live on. He recommended shops hold around 50% to 55% on general parts margins and charge around 8% of parts and labor sales for shop supplies, reminding everyone shops lose 3% of their total sales from shop supplies. These are parts or items used in the repair but don’t necessarily go on the car, including protective materials, cleaners, wires, lubes and adhesives. Brower also explained how to sell value to justify the shop’s pricing on parts, knowing the customer can buy the part cheaper then what the shop is selling it for. When ATI helps a shop build a “Road Map to Success,” it begins by working backwards to examine

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how much overhead the shop has, what investments are needed for the business and for retirement and how much the shop owner makes, to determine the total gross profit needed. “The shop owner is typically the lowest paid person in the shop, and that’s wrong,” Brower said. “We

Rather than cutting marketing, Brower advised shops to adjust marketing, because there is now greater accessibility to a captive audience, essential workers still need reliable transportation to get to work and non-essential workers fear losing transportation for high-priority er-

“We need to stand out in times like this. Build your brand, and make it stronger.” — Chris Brower work from the bottom up to make sure you achieve your goals, starting by determining how much gross profit you need. Then, we work backwards to build you a road map. “Have the right mindset, a positive mindset,” Brower encouraged. “You’re an essential business for a reason. Sanitation and cleanliness are the new norm and aren’t going away; people are always going to expect this. Remain proactive. Stay on top of things as they change. Make this a daily cadence in your business. “We will get through it. This too shall pass, and when the outbreak is over, you’ll need to hit the ground running.”

rands, medical emergencies and the ability to commute to work once they are re-employed. “Adjust your marketing, don’t cut it,” he urged. “We need to stand out in times like this. Build your brand, and make it stronger.” Exploring ways to adjust marketing, Brower suggested offering pickup and drop-off services and goodwill discounts. Notify customers the shop is open, and educate them about the precautions being taken to keep them safe. Shops should determine how many more cars they need to offset the car count deficit, and then reach out to customers through warm calling,

email marketing, text messaging and social media. Brower also discussed how using call forwarding during the hours the shop is closed can help obtain a couple extra cars each week. “Your messaging should be sincere and supportive—not pushy or promotional,” Brower noted. “Let people know you’re there but not desperate. Don’t try to force them to come in. People still need their cars. Make sure you’re doing the things you tell them you’ll do to sanitize their vehicles and keep them safe.” When it comes to warm calls, shops should prioritize the most unsafe items first, then the items that will become unsafe over time, ending with repairs that keep the vehicle healthy but aren’t unsafe. “This helps you refill the pipeline and survive. You miss 100% of the opportunities you don’t take,”

Brower said. Text messaging can be used for appointments and other reminders because it’s quick, engaging, affordable and opt-in so customers are agreeing to this form of communication. In fact, most customers prefer text messages, though email can also be an effective marketing tool. According to Brower, effective emails only include useful content, are easy to skim and are concise, though the return rate on texts is higher. Using social media to disseminate pictures and videos of the shop, processes and community outreach creates goodwill. “This is how to build your brand in a time like this,” Brower said. To schedule a phone consultation with ATI, including a free business health check, visit autotraining. net/register

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Silicon Valley Tech School Pushes Through Pandemic by Ed Attanasio

The pandemic has impacted tech schools throughout the country as they adapt to a whole new world. Online classrooms, drive-by graduations and online testing have become the norm, and many administrators are saying that some of these changes will stick long after the virus has passed. Nathan Chukes is the auto body refi nishing instructor at Silicon Valley Career Technical Education (SVCTE) in San Jose, CA, with

Nathan Chukes has been teaching at SCVTE for 18 years and is known for being tough but fair

three decades of industry experience and 18 years as a teacher there. He runs the program with another instructor, Robert McTaggart. Chukes is well-known in the world of collision repair instruction for being a tough instructor who commands excellence, but many of his former students say only wonderful things about him. It’s been a new road to travel for Chukes and his students, but by adapting and changing his approach, things are working. “This year with the pandemic it has been very challenging and diffi cult for high school students throughout our country,” he said. “For me, as an instructor, I faced similar challenges, but I had to fi nd a way to deliver instruction to my students. With only a quarter of a semester left of our school year, all hands-on and shop instruction was halted, due to the virus. At that point all instruction became viral with Zoom lessons and audio lectures.” Every year, Chukes gives awards to his star pupils, he said. “In the two classes I teach daily, there were four students in my program that stood out above all,” he said. “They never gave up, never

complained and never doubted that they had enough skills and knowledge to continue forward to graduate and prepare for the next chapter in their lives.” Chukes gives excellence awards every semester and seems to be a pretty good judge of talent, because several past recipients have gone on to be body shop owners, gifted painters and top technicians over the years, he said. This year’s award winners are: Junior Ever Martir from San Jose High School in San Jose, CA, received the award for Outstanding Student in Chukes’s AM Refi nishing Class Senior Manuel Soto from Prospect High School in Saratoga, CA, received the award for Outstanding Student in Chukes’s PM Refi nishing class Senior Jose Gonzalez from San Jose High School in San Jose, CA, received the Achievement award in Chukes’s AM Refi nishing class Senior Manuel Madera from Andrew Hill High School in San Jose, CA, received the Achievement award in Chukes’s PM Refi nishing class Every year, the school has an awards ceremony, but because of the pandemic, Chukes delivered the plaques to the winners at their homes, accompanied by signs to signify the moment. “It was of great pleasure to hand-deliver these custom signs to the homes of my award winners for the 2019-20 school year,” he said. “These four students deserved these awards, so I was going to do anything I could to get them in their hands.” By teaching high school-level students the latest technological changes in the industry and working with local body shops and vendors, Chukes is making all the right moves, and receiving unprecedented industry support as a result. Chukes was a journeyman painter for many years before he was hired at SVCTE. He has ASE certifi cations in both structural and non-structural repair and continually refi nes his classes to accommodate the industry as repair processes, tools and equipment change at a frenetic rate. Formerly known as the Central County Occupational Center (CCOC) before changing its name eight years

ago, SVCTE currently off ers a two-semester program for high school students from six school districts in the South Bay Area interested in careers in the collision repair industry. After teaching for so many years, Chukes said this is no longer a job and more like a calling.

Junior Ever Martir from San Jose High School in San Jose, CA, received the award for Outstanding Student in Chukes’s AM Refinishing class

“I have been doing this so long that it’s in my DNA,” he said. “We have seen so many fi rst semester students who have come here with very little knowledge and just two years later, they’re totally employable and have developed some confi dence. “At here, they get to work on actual vehicles and they’re using the

identical tools that they will be using at a shop. Our goal here is to duplicate the real world out there as much as we possibly can, so teach them only OE procedures and always focus on safety and working in an organized way. “We also make sure to teach them life skills that they are going to need out in the working world, such as being punctual and communicating clearly. We want them to have the skills, but we also want them to be successful as people too.” Once the students have completed the program after one or two years, depending on what they choose to learn, Chukes and McTaggert will assist them in fi nding internships and jobs at local body shops. “We are constantly reaching out to the body shops, and many of them are willing to help us with old parts that the students can practice on, for example,” Chukes said. “When we see a graduate that is working at a local shop and we get good feedback about their performance and attitude, that is very satisfying.”

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AkzoNobel Weathering COVID-19 Storm As the complex situation regarding the global pandemic continues to evolve, AkzoNobel remains focused on ensuring employee health and safety and maintaining business continuity.

sumptions. Market headwinds were strongest during April and resulted in revenue almost 30% lower versus last year. Demand improved as some lockdown measures started to

The various steps taken to continue serving customers and rapidly reduce costs are proving successful, while at the same time keeping the organization intact and able to respond quickly to changes in end market demand. During the first quarter, COVID-19 adversely impacted revenue by around minus 5%. Asia was most affected throughout Q1, with other regions impacted only from the second half of March onwards. In more recent months, end market demand has evolved in line with company planning as-

ease, although revenue for May remained around 20% below 2019. Distribution channels for decorative paints have mostly reopened in China and Europe, with demand returning towards previous levels. Varying degrees of market disruption persist in the rest of Asia and South America. Demand for performance coatings has also improved, although at a much slower pace than for decorative paints. Source: AkzoNobel

CIECA Names Paul Barry Executive Director CIECA announced June 1 that Paul Barry has been named executive director of the organization, effective June 1.

In his new role, Barry will work with CIECAâ&#x20AC;&#x2122;s board of trustees to develop a clear mission and objectives for the organization, as well as an effective strategy to accomplish those objectives. Barry has more than 30 years in the insurance and technology industries. Over the last 20 years, he has held executive/senior leadership positions with a focus on claims and auto repair technology. Barry has a longstanding rela-

tionship with CIECA, having been involved with the organization in different roles for many years. From 2011 to 2013, he served on the executive committee as secretary, treasurer and vice-chairman. He has also attended committee meetings as a company representative and/or a board member. He began his career with Safeco Insurance Company as an auto claims adjuster. After holding positions in insurance, he was asked to lead an effort to design and build an industry-leading claims system for Safeco. Barry eventually became vice president of national operations for the company. After more than 20 years, Barry left Safeco and joined PerformanceGateway. From there, he became an independent consultant. In 2015, Barry joined PEMCO Insurance. He went on to lead the claims organization as the vice president of claims. Source: CIECA

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All Girls’ Bogi Lateiner Discusses Post Corona Customer Care and Communications by Chasidy Rae Sisk

Now that the world has been dealing with the COVID-19 pandemic for at least 3 months, things are slowly starting to reopen, leading people to talk about the new normal and what life will be like post-corona. Bogi Lateiner, of All Girls Garage, dove into the topic of “Post Corona Customer Care and Communication” during a recent installment of a collaborative series of technical and management classes focused on necessary topics for navigating business operations during the COVID-19 pandemic. The series is hosted by the Carquest Technical Institute and Worldpac Training Institute (CTI+WTI.) Charlie Sanville, most commonly known as the Humble Mechanic from YouTube, introduced Lateiner, who began by posing several questions: “How much has changed, will these changes be permanent and, if not, how long will they last? “We’ve all been forced to find

ways to carry on with many aspects of our lives, including auto repair,” Lateiner said. “Here’s my suggestion: What if corona isn’t really a game changer at all? What if it’s a game elevator? Maybe, the pandem-

Bogi Lateiner

ic is giving us a clearer view of what has to change within our world and within our industry and challenging us to change our perception of things.” “Very little has changed on a deep and fundamental level,” Lateiner insisted. “But this affords us a unique opportunity to examine what we, as an industry, are doing to care for our

teams and our customers. Do we have the things in place that it’ll take to move into the future? “The automotive and collision industries have been in the process of revamping how we serve customers and compete for some time. We don’t know the outcome of COVID-19 since it’s still happening, but this is the time to ask ourselves the hard questions and hopefully come up with new innovations.” Although the outbreak has devastated countless businesses, that is the case with any other major disruption as well, so shop owners should focus on what it means to run a successful shop in a turbulent world, regardless of the current disruption. “How you handle it will determine whether you succeed or not; disruptions are weathered by businesses that are willing to question, adapt and grow,” Lateiner said. “We’ve seen shops go out of business, but other shops are thriving because they are embracing change. If you’re not in a state of growth, you’re in a state of decay. This is a natural process, but

right now, it’s moving as an unprecedented rate.” The COVID-19 pandemic is a huge disrupter, but Lateiner believes the bigger issue is not being customer-centric. “Not focusing on your customers will be more detrimental than the pandemic itself. We’re in the business of customer service, and we need to re-evaluate what being ‘of service’ looks like,” she said. “The most dangerous phrase you can utter is ‘We’ve always done it this way,’ because the same thinking leads to the same results. If we dig in our heels, we’re not going to survive—being self-righteous isn’t going to serve us, but being customer-focused will.” Lateiner pointed out that customers’ increased concern for cleanliness, desire for digital appointments and tendency to drive fewer miles are all things that have been trending in that direction. “Coronavirus isn’t changing anything—it’s just exacerbating and accelerating things,” she stressed. “How we do things might change,

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but the why shouldn’t change. If you’re just in business to make money, that’s not going to cut it, but that was never enough. “We’re in this business because we want to be people’s heroes,” Lateiner continued. “We keep them safe and treat them respectfully. That’s how we compete with dealerships; we care so much about our customers, and that shouldn’t have changed even though COVID has raised the stakes and the stress level.” Because most people are under increased stress, Lateiner emphasized the importance of ensuring service skills are well-honed. She reminded attendees customers have never been excited to come to the shop. “People are scared of being taken advantage of. They come to you with baggage from past experiences and stereotypes about the industry, but with less financial security in the current crisis, people are even more stressed, so you need to approach them with empathy and realize they are experiencing a whole range of emotions that you can’t predict,” she said. “We never knew what was going on for our customers, but now, everything is exaggerated.” Lateiner said the only opinion that matters is that of the customers. People are divided on believing the pandemic is real or a hoax, but a shop owner’s job is to recognize this divide and adapt their business practices to accommodate those customers who are terrified for their lives. “Your opinion doesn’t matter,” she said. “It’s not about you, it’s about your customer. Your customer’s perception is your reality.” Despite the changes caused by the pandemic, the essentials of communication haven’t changed. It’s important to carefully choose words and monitor tone to build trust. “During high stress, listening skills are non-existent,” Lateiner explained. “A stressed customer isn’t thinking clearly, which increases the chance for missed communication, which is the cause of 99% of customer problems. “All customers have one thing in common: their humanity. They need help solving a problem, but they come to you with thoughts and feelings of their own. People want respect and appreciation, to be valued and heard,

so it’s more important than ever that you are present, listening actively and suspending judgment.” Communication begins being 100% present to completely hear what the customer is saying and pick up on any non-verbal cues. Next, practice active listening, encouraging customers to fully express their needs. Finally, suspect judgement. “Judging a person doesn’t define who they are; it defines who you are. People don’t feel heard when they feel judged,” Lateiner said. “You don’t know what’s motivating their decisions, but you need to respect them.” Shops should get creative in their communication, employing ways to make customers feel comfortable. Adopt new policies as needed, then communicate how the shop is taking care of its customers. Communicate alternatives to avoid person-to-person contact, but with fewer customer interactions, it’s important to make each one count. Social media is a great way to demonstrate all of these items. Dealerships have the advantage because they’ve had processes in place to meet customers’ current needs for a long time, but independent shops can compete by playing on their own strengths, which is building relationships. “If you don’t get creative in how we do that, the advantages of going to a small shop gets eroded. We’ve got to step up our game to keep from becoming a commodity,” Lateiner urged. Addressing how to deal with challenging customers, Lateiner reminded everyone of customers’ stress levels in the current situation and pointed out that an upset customer wants to feel heard, be acknowledged and know the perceived wrong will not happen again. “Remember it’s not about you. It’s not a personal attack, even though it often feels that way—unless you’re being intentionally obnoxious and awful, this just isn’t about you. You have to be kind and empathetic, even when they’re not being kind to you. “You cannot argue with feelings,” Lateiner added. “The accuracy of the complaint is 100% irrelevant because you can’t control their perception. The reality is they’re upset, and we’re not dealing with the complaint, we’re dealing with their feelings. You can’t tell them what they’re

allowed to feel, and feelings of lost power, fear, sadness and more often comes out as anger because anger is more socially acceptable. You can’t meet anger with anger, though. You have to meet them where they’re at and work together to resolve the problem.” Lateiner also advised it’s best to let an angry customer get their feelings off their chest since they are physically unable to listen to you until they’ve released their anger. “When they’re done, you can start the rest of the process, but if you start talking before they’re done, you aren’t going to get anywhere. You just have to shut up.” Mistakes made should be owned, using the five-part apology. Thank the customer for bringing the issue to your attention, use empathy, acknowledge them, offer a genuine apology and then work with them to come up with a solution. Lateiner also recommended practicing self-care. “It’s a priority and a necessity, not a luxury. If you have a really rough customer, take a walk or watch a video to make your heart happy and

fill you back up. Otherwise, you’ll take that bad experience to your next customer and wind up with a whole days’ worth of unhappy customers. “Don’t get stuck, get excited about this and make it an opportunity,” Lateiner encouraged attendees. “Get excited about growth and challenge. Use it as inspiration to innovate and ensure that, in the thinning of the herd, your shop is one that not only survives but thrives because many shops are truly thriving right now, despite the challenges and obstacles.” “We don’t know what the world looks like after COVID-19, but we know that what comes next, the future of our industry, is up to us. Let’s choose collectively to make this be the thing that launches our industry into positive growth. Let’s leverage this to show the world how great this opportunity is, and let’s see it as an opportunity to better ourselves and our industry, and to take better care of our customers in the future.” A complete webinar schedule for this series is available here http:// worldpac.com/training/classes/online/ or here https://ctionline.com/a

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Honda Suffering Production Issues Due to Possible Cyber Attack by Sergiu Tudose, CarScoops

Honda is having to deal with a global computer network disruption, which led to the carmaker cutting some production in North America. The issue could actually be part of a deliberate cyber attack, stated the carmaker’s U.S. sales arm, American Honda Motor Co. Unfortunately, no further details were offered regarding which production plants have cut output, or what other operations might be affected, reports Autonews. While the disruption is still under investigation, the Japanese company has yet to rule out the possibility of this being a direct attack on its computer network. “On Sunday, June 7, Honda experienced a disruption in its computer network that has caused a loss of connectivity, thus impacting our business operations. Our information technology team is working quickly to assess the situation,” said the carmaker in an official statement.

According to British outlet Sky News, these computer issues are also affecting Honda’s networks in Japan as well as Europe and as of June 8 it was unclear whether or not the company was the victim of ransomware―meaning hackers would have had to break into the system and hold Honda hostage until a sum of money was paid. There is precedent for this. In 2017, Honda was a target of the global ransomware attack WannaCry, which affected production at a Japanese assembly plant. That same attack also affected Renault and Nissan’s operations in Japan, Europe and India. Other brands impacted included Dacia, Boeing, Petrobras, O2 and loads more, including several universities. We thank CarScoops for reprint permission.

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GM Designates $10M for Inclusion, Racial Justice

Carma Project Rewarding Replacing Airbags

General Motors announced June 5 it has designated $10 million to support organizations that promote inclusion and racial justice. An initial $1 million will go to the NAACP Legal Defense and Educational Fund. Recipients of additional funding will be determined with input from GM’s Employee Resource Groups (ERGs) and the recently announced GM Inclusion Advisory Board (IAB.) GM’s IAB will consist of leaders from inside and outside the company, with the goal of making GM the most inclusive company in the world. GM Chairman and CEO Mary Barra will chair the IAB. The GM program includes the opportunity for employees to give to organizations, and a corporate matching of those employee contributions. The employee contributions and the GM matching funds are part of the $10 million. Program details will be distributed to employees when finalized. Source: GM

Carma Project on June 4 announced the launch of a program that pays vehicle owners to get their defective Takata airbag replaced. This program comes at a time when millions of owners continue to drive their vehicles to access essential businesses amid the COVID-19 crisis. This all-new program―which includes the reward of a $50 Amazon gift card―will further help address the recall of deadly Takata airbags. Despite extensive efforts by manufacturers, such as recall letters, public service announcements and dealer interventions, more than 12.5 million defective Takata airbags are still on the road today. Carma Project’s COVID-19 airbag recall program will stay in effect while supplies last. To participate, visit www.carmaproject. com/covid19 to download the Carma Project app and check your car. Source: Carma

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GM Has a New Plan to Overtake Tesla, and It Starts With an Electric Van by Joey Klender, Teslarati

General Motors has a plan to take Tesla’s label as the leader of the EV industry away, and it involves taking on a market that the electric car maker has yet to tackle. GM is planning to develop an electric delivery van that would be used by entities like UPS, Amazon or even the U.S. Postal Service, Reuters was told by people familiar with the matter. The plan could put GM into the commercial electric vehicle conversation. However, the project, when combined with Ford, Rivian and other EV makers, is a potentially multi-billion-dollar idea that could help the companies build and deliver a substantial amount of electric cars. It could also help the companies tackle Tesla by targeting a segment the Elon Musk-led company is yet to address. That being said, it should be noted consumer vehicles are much more popular than delivery vans, so there’s not much of a threat for Tesla to be derailed by EVs designed to carry packages.

GM’s plan for a van has not been reported previously. The company, along with Ford, was reportedly advised to keep any plans under wraps. Trucks and commercial vehicles are among the two Detroit-based companies’ most profi table vehicles, and suggestions from suppliers recommended things remain quiet regarding the development of electric vans. They “don’t want to leave the door open for Tesla,” something the

UPS Senior Director of Fleet Maintenance and Engineering Scott Phillippi said the company believes battery-powered vans have the potential to disrupt the commercial market. “It’s going to be similar to what the Model 3 has done for the consumer market,” he said. Even though GM is planning a strong push to develop battery-electric cars within the next few years,

companies both did with consumer passenger vehicles. The GM van is currently recognized under a pseudonym, the BV1. It is set to start production in late 2021 at the automaker’s Detroit-Hamtramck plant, according to sources, and it will share several components with GM’s electric pickups and SUVs. One of these is the Ultium battery system.

there is little evidence its technology will outperform Tesla’s. GM claims it is close to a million-mile battery, a major focal point of Tesla’s battery tech developers for years. But for now, the veteran automaker is yet to prove its EV capabilities in the market. We thank Teslarati for reprint permission

Women in Auto Care Accepting Entries Women in Auto Care, a community of the Auto Care Association, is now accepting entries for the 2020 Automotive Communications Awards. The Automotive Communications Awards are designed to recognize companies and agencies that provide automotive information to consumers and trade professionals through outstanding advertising, marketing, merchandising and effective public relations. A portion of the proceeds from award submissions goes toward providing scholarships to women entering the automotive aftermarket industry. Award winners will be notifi ed in October and will be recognized at this year’s Aftermarket Products Expo (AAPEX) in Las Vegas, NV. For more infomation see the Women in Auto Care web page’s “Awards” tab. No entries will be accepted after Sept. 11. Source: Auto Care Association

autobodynews.com / JULY 2020 AUTOBODY NEWS 47

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The Auto Industry’s Response to Black Lives Matter Protests by Morgan Pritchett, The News Wheel

zations that money would go to.

Over the last two plus weeks, the nation has come together in protest of police brutality against black individuals following the death of George Floyd. While some automakers are adamantly speaking up in support of the Black Lives Matter movement, many are staying silent. Let’s take a look at which brands are standing up for justice.

Mercedes: Before posting a black square on Blackout Tuesday, Mercedes-Benz published a statement on Twitter about standing up for racial inequality: “When injustice occurs, people have a responsibility to speak out. Companies have a responsibility to take action. We’re making a donation

Donations and statements BMW: After participating in Blackout Tuesday, BMW tweeted the following: “BMW Group stands with those who demand a more inclusive, equal and just society, that’s why we will be making a donation to the @ naacp_ldf in support of the Black community, #wesupportblacklives” with a link to the organization’s website. The amount of the donation was not disclosed and, after reaching out for comment, the automaker did not go into details on the amount. General Motors: CEO Mary Barra, in a message to employees, wrote: “I am both impatient and disgusted by the fact that as a nation, we seem to be placated by the passive discussion of ‘why.’ There comes a time when we are compelled to stop diagnosing what is wrong and start advocating for what is right.” Barra also said she would commission an inclusion advisory board of internal and external leaders, including herself. The company announced June 5 it would be donating $10 million to organizations promoting inclusion and racial justice. Infiniti: On the automaker’s Facebook and Instagram profiles, Infiniti took a stand against racism in the form of a post stating, “Life should be a right, not a luxury. Black lives matter.” Another post stated, “Having a social platform is a luxury. We will use ours for change,” along with a caption that included, “Our first step to doing our part is to halt our advertising, to make more space for Black voices on social media. We’ll be dedicating our social media to organizations we are supporting and donating to, in hopes that you will join us.” There was no follow-up about the donation amount(s) or which organi-

Protestors have been making their voices heard worldwide. Credit: Taymaz Valley via CC

to the NAACP Legal Defense Fund and invite you to join us.” There was no mention of the donation amount. Statements Ford: CEO Jim Hackett and Executive Chairman Bill Ford told employees the company would “lead from the front” and “we know that systemic racism still exists despite progress that has been made. We cannot turn a blind eye to it or accept some sense of ‘order’ that’s based on oppression.” There was no mention of any sort of donation in the full statement and I have yet to hear back after reaching out for comment. FCA: According to the Detroit Free Press, CEO Mike Manley wrote the following in a letter to employees: “On behalf of everyone at the company, I emphatically reject the hatred and prejudice that still tears at the fabric of our society and which led to the death of George Floyd and so many before him. Although we are seeing the rawness of this issue exposed in the United States, the scourge of racism and discrimination has no respect for international boundaries. As employees of one of the largest companies in the world, we absolutely have the individual and collective power to make a difference. Starting from how we treat each other at work through to creating opportunities for everyone to fulfill their potential, FCA can be a powerful and meaningful force for change.” A rep for the brand told

me that the company does not have any plans for a donation announcement at this time. Honda: The Honda Twitter account retweeted the Honda Inclusion account and said, “After listening and reflecting during this painful time, Honda is putting its beliefs and values into action,” with a link to the Honda media site. In the lengthy press release, which was sent directly to all Honda employees, the automaker discussed the importance of inclusion and diversity. It then went on to list ways the company is taking steps to help the black community, as well as ways others can chip in. While there was no confirmed solitary donation mentioned, Honda has a history of supporting HBCUs and minority-owned businesses through its many charity organizations. Lexus: Along with postponing the world premiere of the new IS out of respect, Lexus took to its social profiles to announce it was against racism and asked for ways it could help.

On Twitter, it said, “Use our comments section to tell us how we can do more to raise awareness in an effort to end unacceptable bigotry and societal issues of violence, killings and racism.” It’s not the most proactive method of helping and certainly speaks to the lack of diversity in the company, but at least it’s looking for ways to help. We’ll see if it follows through with some sort of diversity training or donation. The Lexus media rep has not yet replied to my inquiry regarding a donation. Mitsubishi: Before reaching out to Mitsubishi, the brand had yet to post anything about the nationwide protests. After reaching out, I received an email the next morning, June 9, stating the company would be releasing statements on all social platforms. The post included the acronym RESPECT, which stands for Respect, Embrace uniqueness, Share best practices, Personal commitment through self-awareness, Educate every employee, Commit to corporate culture change and Trust. The

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automaker has not made any statement regarding any donations. Nissan: Before participating in Blackout Tuesday on social media, Nissan tweeted about its history of supporting the black community. The post stated, “Our hearts are with the families of Ahmaud Arbery, Breonna Taylor, George Floyd and other victims of racial injustice, and our mission and resolve to be a part of the solution is as strong as it was in 1992.” The statement ended with a hopeful message about the future and then was followed up with another tweet containing a Martin Luther King, Jr. quote. However, there has been no mention of any donation(s) from Nissan or the Nissan Foundation. Toyota: In a post on Twitter and in a press release, Toyota released a long statement that closed with: “So now more than ever, we will encourage a constructive dialog to guide our actions as we continue to improve how we contribute to society, and inspire unity in every aspect of our lives, our business and our communities. Toyota will find additional ways

of doing this by working together with our community partners across North America.” On top of this, an employee posted an email screenshot where the company encouraged employees to observe a moment of silence for eight minutes during the work day out of respect for George Floyd. Toyota’s corporate communications manager, when asked for additional info, stated the brand has nothing to announce at this moment. Volkswagen: After apologizing for a racist ad just two and a half weeks ago, Volkswagen was sure to make a statement on racial injustice. In a video shared on Facebook and Twitter, the auto brand mentioned the deaths of Ahmaud Arbery, Breonna Taylor and George Floyd. It also noted, “Volkswagen Group of America supports our Black employees and Black communities, who are feeling the pain and devastation of these events.” It went on to state Volkswagen would first inspect its own practices to include more diversity in its workforce. The video ended with, “It’s a time of societal change―change that we, as a company and as a community, have

the power to bring about. #DriveBigger.” However, no additional information was shared as to how Volkswagen would make a difference other than its internal training. I have not heard back from VW regarding my inquiry about a possible donation. Silence After scouring social profiles and press release sites, I reached out to the following automakers to see if they had any plans to make statements or donations. None of them have replied. Hyundai: While Hyundai ambassadors BTS personally donated $1 million to Black Lives Matter, and their fans raised $1 million to match, the automaker has been silent on this topic publicly. Kia: While Kia has recently done quite a bit to help health care workers amid the COVID-19 pandemic, including delivering PPE to hospitals nationwide, the brand has yet to make any statement regarding the Black Lives Matters movement or the protests. Mazda: As of publication, Maz-

da has posted nothing on any social platforms or on its press site in regard to the nationwide protests. The last posts, published May 28, were related to supporting health care workers. Subaru: As of publication, Subaru has posted nothing on any social platforms or on its press site in regard to the nationwide protests. The automaker has been notoriously charitable in the past, so it seems out of character for there to be no mention of current events. The brand’s Twitter account has, however, been responding to users calling out inexcusable behavior of racist Subaru employees. Volvo: As of publication, Volvo has posted nothing on any social platforms or on its press site in regard to the nationwide protests. Its latest post was promoting the XC90 via an article posted by Bloomberg. We thank the News Wheel for reprint permission.

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Riots in Wake of Floyd’s Death Could Become Most Costly Civil Disorder for Insurers by Jim Sams, Insurance Journal

Rioting that erupted in cities across the country after peaceful protests mourning the death of George Floyd in Minneapolis may rival the 1992 Los Angeles riots to become the most costly civil disorder for insurers in U.S. history. The civil disturbance in Los Angeles after the videotaped police beating of Rodney King in April and May 1992 caused $775 million in damages―or $1.42 billion in today’s dollars, according to the Insurance Information Institute (III.) Those riots, however, were largely confi ned to one metropolitan area. Destruction and looting that erupted after Floyd’s death was reported in at least 25 cities, and spread into many suburbs as well. “We expect this to be a signifi cant loss event as the impact is being experienced in large and small markets across the U.S.,” said III spokesman Mark Friedlander. “However, because it is an ongoing event, it is premature to determine the volume of property loss that will be incurred.”

Civil disturbances generally cause modest property losses when compared to natural disasters, data from III shows. Rioting in Los Angeles in August 1965―the second costliest civil disorder―caused $357 million in damages, measured in 2020 dollars. Together, riots in Baltimore, Chicago and New York City in April 1968 caused $231 million in damages in today’s dollars. By comparison, Hurricane Harvey in 2017 caused an estimated $20 billion in damages. Verisk’s Property Claims Service (PCS) over the weekend declared the riots a catastrophe event, which means it projects damages of more than $25 million. PCS hasn’t designated a civil disturbance as a catastrophe since the Baltimore riots in 2015. PCS head Tom Johansmeyer said the riots sparked by Floyd’s death may be the fi rst civil disorder tracked by PCS that includes more than one state. Johansmeyer said “to better understand” potential riots from current rioting, it make sense to look at losses caused by civil unrest last year

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in Chile―which grew from protests over an increase in subway fares in Santiago. Rioting there caused insured losses of $2 billion. About a third of that came from property claims from a handful of large retailers. “When you look at the United States, riot and civil disorder may generally look like a sub-US $100 million risk, although with the potential for much greater losses,” Johansmeyer said in an email to Claims Journal. “But, when you add a handful of large national or international companies with losses of more than US $100 million each, you could see a much larger industry loss begin to materialize. The large losses within the catastrophe could change the character of the overall event.” Keefe, Bruyette & Woods analyst Meyer Shields said June 8 that his best guess is losses from the current riots will be “relatively modest.” Nevertheless, the losses will combine with losses related to COVID-19 claims and property damage from a predicted above-average hurricane season to amount to a “capital event” for some reinsurers.

“As always, major losses should subsequently intensify the current hard market, but the ‘pain’―especially for individual (re)insurers exposed to disproportionate losses―would come fi rst,” KBW said. III said riots, civil commotion, vandalism, looting and fi re in the U.S. are covered perils under virtually all business owners and commercial insurance property policies. Merchandise stolen by looters will also be covered. III said about 40% of small to mid-sized businesses are also protected by business interruption coverage. “Even if the business was still shut down or operating at limited capacity due to the impacts of the COVID-19 pandemic, most insurers will determine income loss based on a 12-month assessment of the operation’s income,” III said in an email. That coverage may also protect businesses that have to shut down early because of curfews imposed by city governments, III said. We thank the Insurance Journal for reprint permission.

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Day Job/Night Job: Collision Writer Launches Fun Art Project in Quarantine, Now Hundreds of People Want His Pet Drawings Then, in October 2011, Attanasio was presented with a binder filled with Ed Attanasio started our Day Job/ all the drawings he created during his Night Job column here at Autobody rehab: an eclectic collection of baseNews in 2017, writing stories about ball and football players, gangsters, people in the collision repair indus- dinosaurs, dogs, birds, monsters and try who have amazing sidelines and aliens. second careers as musicians, artists, “All of the peculiar-looking ilauthors, performers—even a techni- lustrations that emerged from my stroke-scrambled brain were all tocian with a world-class Frisbee dog. Attanasio has interviewed a wide gether and ready for something…but range of creative people in different what?” he said. “Could this be more capacities within the collision repair than just a hobby or a distraction?” industry, and now Autobody News is The answer turned out to be yes. covering him and his dynamic art ca- Attanasio sold his first piece, reer. “Bushers,” consisting of 48 fictional baseball players, for $3,000 at a gallery in San Francisco. It also led to a graphic novel based on the image and gallery shows throughout the Bay Area. In April, Ed began looking around for something he could do to bring joy to people during the COVID-19 ABN Writer Ed Attanasio started a thing called the pandemic. Pandemic Pet Project to use his art to create goodwill One day, a few friends during these uncertain times. Credit: Ed Attanasio asked him to draw their pets, Attanasio started sketching as and when they saw what he created, a form of rehab after he had a minor he said they either smiled or cried stroke in 2009. Little did he know that tears. So, he reached out to all of his eventually, his illustrations would lead friends on Facebook and Instagram to a career as an artist, surprising art and started the Pandemic Pet Project critics, gallery owners, his friends and (PPP) to draw abstract images of peoples’ pets for free. In return, Attanasio even himself. Attanasio’s stroke didn’t hamper his motor skills, but it did affect his brain to the point where he was forced to take a break from his job at Autobody News. To occupy his time, he began drawing a series of illustrations on Post-It notes for hours and hours during his 14-month recovery. Attanasio said he drew these characters only as part of his therapy and nothing more at first. “I never thought anyone would see them, and I surely never imagined I could sell them. My friends He is creating four images daily, with more than 200 completed and 150 still left to draw always seemed to enjoy the characters, but eventually [the Post-It notes] asked them to pay it forward by dowould migrate down to our refriger- nating as much as they could afford ator door and after a while, they’d to their local pet rescue organization. disappear,” Attanasio said. “I figured What started out as a favor to they were getting tossed, but I wasn’t friends soon gained momentum and concerned, because I could see that I turned into something much bigger. was steadily improving and knew the “I thought maybe half a dozen people would respond, but on the first art was playing a role.” by Autobody News Staff

day, I had 30 requests and more than 50 by day two, and it’s still growing!” he said. Attanasio added the total to date is 350 illustrations requested and more than 200 completed.

Many people take photos of their pets with the art and post them on the Pandemic Pet Project page on Facebook

Attanasio’s art project has at tracted media attention from outlets such as the San Jose Mercury News, KNTV, KGO, East Bay Times and the Associated Press of Taiwan, among others. As far as methods go, Attanasio said, “I get the colors and image in

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my head right before I draw. I never sketch first; I just dive in.” A writer for Autobody News since 2008, Attanasio said, “I love writing about all of the philanthropy in this industry and interviewing interesting people like the late Gene Crozat, Michael Anderson and Todd Tracy, the attorney in the John Eagle Honda case. I’m known for writing feel-good features highlighting all of the positive things in this industry.” To learn more about The Pandemic Pet Project, check out the Facebook page: www.facebook.com/ pandemicpetproject/?modal=admin _todo_tour Would you trust your pets with Attanasio? If so, submit photos of your cat, dog, bird, lizard, goat or horse along with your mailing address to him via Facebook Messenger and get ready for a small piece of original art to arrive on your doorstep. Limit two per person. “If I cut off an ear, maybe these will be worth something one day,” he joked.

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CIC Goes Virtual for July Conference

Bipartisan PPP Flexibility Act Sails Through Senate A bipartisan bill that would give small business more time to use the funds from Paycheck Protection Program, as well as other updates to the program, was passed by the Senate in a unanimous voice vote the evening of June 3. The Paycheck Protection Program Flexibility Act, sponsored by U.S. Rep. Chip Roy (R-TX) and U.S. Rep. Dean Phillips (D-MN), had previously been passed by the House of Representatives in a 417-1 vote. It now heads to the White House, where President Donald Trump is expected to sign it into law. The bill addresses concerns with the Small Business Administration’s forgivable PPP loans, which require businesses to use the money within eight weeks of receiving it to be eligible for full forgiveness. Because many businesses were shut down for months by government orders, they didn’t have the time to do what was necessary to have their loans forgiven in that short span. Roy and Phillips said the PPP Flexibility Act is intended to make it more feasible for businesses to qual-

ify for forgiveness. In addition to extending the time in which the loan funds must be used to qualify for full forgiveness from eight weeks to 24 weeks― through Dec. 31―it would also reduce the percentage of PPP funds required to be used from 75% to 60%.

“NIADA is proud and encouraged to see members of both parties in Congress come together and act quickly to solve this problem,” said Steve Jordan, CEO of the National Independent Automobile Dealers Association.

“This bill provides much-needed flexibility to NIADA members and small businesses across the nation as they reopen and rehire staff,” Jordan said. “Economic recovery from a crisis like COVID-19 takes time, and this gives independent dealers the time they need to get their operations back up to full .” Other provisions include eliminating the restriction limiting loan terms to two years, allowing businesses that receive PPP loans to also defer payroll taxes and extending the deadline to rehire employees from June 30 to Dec. 31 to account for the effect of federally enhanced unemployment benefits. The deadline for to receive a PPP loan remains June 30. The PPP, created by the CARES Act in late March, allotted $349 billion in funding for forgivable loans of up to $10 million per borrower to help small businesses weather the COVID-19 crisis. After those funds were distributed in less than two weeks, Congress approved an additional $310 billion on April 21.

In the face of continued restrictions for gathering, the Collision Industry Conference (CIC) will be held as a virtual meeting for the first time in its history. CIC will be held July 22 and July 23 from 11 a.m. to 3 p.m. Eastern Time via Zoom, pre-registration required. As with the live CIC, several committees will make presentations and attendees will have the opportunity to raise their hand and speak during Q&A and open mic times. Organizer Jeff Hendler believes this platform will also give those who have been curious about CIC―or even too busy― the opportunity to experience the unique meeting without the added cost and hassle of traveling. CIC committees have been hard at work throughout the crisis, and plan to bring that work to the industry stage in July. To learn more, visit the schedule page at www.ciclink.com /schedule/ Source: CIC

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Volkswagen Activates ‘Sign Anywhere’ Across Network Volkswagen of America and VW Credit, Inc. announced the availability of remote digital signatures across the Volkswagen dealer network to off er customers and dealers fl exibility during the pandemic. Sign Anywhere is remote, digital signature tool powered by CDK Global that allows customers to remotely and securely digitally sign fi nancial documents with their own computer or mobile device without stepping foot in a showroom― providing an online automotive buying experience. While digital signature technology has been in widespread use for some time, it has taken time to adopt this technology to meet the requirements found in the fi nancial services space. Volkswagen is among the fi rst to off er Sign Anywhere at its dealerships through its fi nancial services arm VCI. Source: Volkswagen

Tesla Shares Cross $1,000 as Semi Truck, New Battery Tech Take Focus by Joey Klender, Teslarati

Shares of Tesla opened June 10 at new highs, crossing $1,000 per share as investors weighed in on rumors of the Tesla Semi’s initial production push. An email from Elon Musk circulated early that morning, indicating Tesla’s focus would be to get the Semi to “volume production.” “It’s time to go all out and bring the Tesla Semi to volume production,” Musk said. “It’s been in limited production so far, which has allowed us to improve many aspects of the design.” Musk indicated in the Q1 2020 Earnings Call Update Letter the Semi would not begin deliveries until 2021. In early January, Tesla’s Truck Team contacted Semi pre-order holders indicating a limited production push would take place in the second half of 2020. The Semi was unveiled in November 2017 and Tesla has been assessing its performance since then. Recently, the commercial vehicle was subjected to cold-weather test-

ing in Alaska. Tesla’s Model 3 ramp-up in China, along with its developments of a million-mile capable battery, has also convinced Wedbush analyst Dan Ives to raise his price target for the electric automaker from $800 to $1,000. Ives maintained a neutral rating for the stock.

“We believe with demand for Model 3’s ramping stronger than expectations in China heading into summer timeframe…that Tesla’s stock likely has room to run further,” Ives said in a note to investors. “While the stock has been roaring higher, we believe the main fundamental catalyst continues to be the massive China market which is showing clear signs of a spike in demand for Musk & Co. heading into the rest of this year,” he added.

Ives also attributed battery developments that could be potentially “game-changing” for Tesla as another reason for his price target increase. Indicating Tesla’s upcoming “Battery Day” would occur in late June, the company’s Chinese battery supply firm CATL, recently released details on its own million-mile battery assembly. Tesla and CATL signed a two-year contract in early 2020 that pairs the two companies in a partnership from June 2020 to July 2022. In the U.S., speculation continues to indicate Tesla will unveil its own million-mile battery pack that will increase the life span of its electric vehicles by a considerable margin based on current warranty documents. TSLA stock closed at $940.67 on June 9 and is currently trading at $998.25 at the time of writing. We thank Teslarati for reprint permission.

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