August 2012 Northeast Edition by Autobody News

Northeast Edition New York New Jersey Pennsylvania Delaware

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Freeport, NY, Shop Owner Found Not Guilty of GEICO-Brought Claims of Insurance Fraud Lorraine Pilitz, owner of Autotech Collision at 120 E. Merrick Rd. in Freeport, NY, was accused of submitting fraudulent records for an insurance claim in September of 2010, but a jury recently found her not guilty on all five felony counts. According to the Nassau County District Attorney’s Office, Lorraine Pilitz (formerly Christie-Pilitz) 54, of Merrick and owner of Autotech Collision, (also known as Autotech Collision Rockville Center) was charged in September 2010 with three counts of fourth-degree insurance fraud and falsifying business records. If she had

Lorraine Pilitiz sits on one of her company tow trucks in 2005. Photo credit: Newsday File, 2005 / Dick Yarwood

been convicted, Ms. Pilitz could have faced three years in jail. On June 22, a jury found Ms. Pilitz not guilty on all See Not Guilty, Page 21

State Farm and PartsTrader Defend Parts Program, Questioned about Benefits to Shops

See PartsTrader Defends, Page 42

P.O. BOX 1516, CARLSBAD, CA 92018

Perhaps the most interesting question at the latest Collision Industry Conference (CIC) came at the end of a 2-hour discussion regarding PartsTrader, the electronic parts ordering system State Farm is requiring its Select Service shops in four markets to use (see related cover story). Denise Caspersen, the collision division manager for the Automotive Service Association (ASA), asked State Farm’s George Avery the same question the association first posed to the insurer formally five weeks earlier in a press release, namely,

what benefit, financially or operationally, does required use of P a r t s Tr a d e r offer shops? “If State Farm is not able to George Avery clearly demonstrate the benefits of this pilot application to the repair community, then this application should not move forward,” ASA’s June 12 press release stated. While Avery skillfully addressed most of the questions and

Change Service Requested

by John Yoswick

VOL. 2 ISSUE 5 AUGUST 2012

AASP/NJ Joins in Opposition to PartsTrader The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) has joined the groundswell of shops and associations in opposing State Farm’s pilot parts-bidding program. “We are in total agreement with our fellow industry associations and members such as AASP National, SCRS, AASP/MA, AASP Illinois and the many individuals who showed up at last week’s CIC meeting in San Antonio, who are standing together to voice complete opposition to this latest intrusion into our members’ Charles Bryant businesses,” says AASP/NJ Executive Director Charles Bryant. “We are calling for all of our colleagues across the country to speak up and voice their displeasure with a program that could potentially devastate the industry.” AASP/NJ President Jeff McDowell echoed Bryant’s statements.

“How many more times are we going to let the insurance industry change the rules to their advantage? Things are hard enough out here. Enough is enough,” McDowell said. Although the PartsTrader pilot Jeff McDowell program has only been introduced in a few test areas, AASP/NJ said it is encouraging members to get as much information as possible before it reaches New Jersey. “You will see that the vast majority of shops who have ‘volunteered’ for the program have regretted it. We don’t want that happening in New Jersey and we will do everything we can to prevent it,” said Bryant. Bryant thinks the controversy is one the collision industry needs to act on immediately. “We hope the rest of the country continues to step up and join us. It is our industry. We need to keep it that way,” Bryant said.

PartsTrader Coverage Continues from Cover Stories

See additional coverage of PartsTrader on pages 12, 24, 43, and 55

PartsTrader Draws Blistering Reaction at CIC, Shop Owners Line Up to Comment in Person by Autobody News Staff

A capacity crowd of more than 400 heard State Farm Claims Consultant George Avery and PartsTrader CEO Rob Cooper give an overview of the very controversial parts procurement system at the CIC in San Antonio. Avery, who is also the incoming Chairman of the CIC starting in January, has endured some harsh criticism since the details of the PartsTrader program were first announced. Avery and Cooper outlined the program for the few unaware of it, and explained State Farm foresees shops ordering all their parts

(recycled, aftermarket and OEM) from a single provider, PartsTrader. Avery attempted some comic relief by joking that he had a button made up saying, “I Love My Job, I Love My Job, I Love My Job,” but questions and Rob Cooper comments from approximately 20 members of the audience made it clear that while electronic parts ordering was understood and largely positive, there was significant apprehension about inSee PartsTrader Pushback, Page 22

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2 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

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REGIONAL

Gunder Files Multiple Lawsuits for Short-Pays of Crashes Says Study . . . . . . . . . . . . . . . 48

Auto Body Tow Truck Involved in Fatal Collision,

AkzoNobel Hosts 2nd Annual Sustainability

CT Body Shop Thrown Under the Busway. . . . 4

AkzoNobel’s Wanda Brand’s 2nd “Blue Suede

Driver Dies After Crashing into Body Shop . . 14

America’s Top Auto Students Crowned at

Freeport, NY, Shop Owner Found Not Guilty of

Auto Insurance Claims Satisfaction Rebounds

Illegally Parked Cars at Hunters Point Body

Brunori Elected to CREF Board . . . . . . . . . . . 20

Insurers Boo, Lawyers Cheer Passage of

CCC, CREF Announces Scholarship Winners . 6

5 Killed. . . . . . . . . . . . . . . . . . . . . . . . . . . 11

CT Chiropractor Guilty of Accident Fraud. . . . 53

Farmers Honors ABRA . . . . . . . . . . . . . . . . . . 4

GEICO-Brought Claims of Insurance Fraud . 1

Shops Called ‘Eyesores’ . . . . . . . . . . . . . . . 8

Event . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Cruise” Event . . . . . . . . . . . . . . . . . . . . . . 21

SkillsUSA Competition Held in Kansas City . 49

After 2012 Decline . . . . . . . . . . . . . . . . . . 18

Caliber, ABRA Award Student Scholarships . . . 8

New York Insurance Bill . . . . . . . . . . . . . . 14

Charley Hutton Appears at PPG Show

Philadelphia . . . . . . . . . . . . . . . . . . . . . . . . 6

Clark Plucinski Named CREF Executive

Golf Event . . . . . . . . . . . . . . . . . . . . . . . . 10

CREF Announces Three New Trustees . . . . . 12

Keenan Raises $30,000 for Little Smiles Large Turnout for AASP/NJs 8th Annual Man Steals Back His Vehicle from

Tow Truck Company. . . . . . . . . . . . . . . . . . 6

Man Steals Car from Auto Body Shop,

Kidnaps Wife . . . . . . . . . . . . . . . . . . . . . . . 7

Truck Events . . . . . . . . . . . . . . . . . . . . . . . 4

Director . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Former Rhode Island Body Shop Owner Wins

$3.27 Million Verdict Against Two Insurers . 26

Gunder Files Multiple Lawsuits for Short-Pays . 3

Herkules Offers Sparkle Clean. . . . . . . . . . . . 27

Mid-Summer Hail Storm Keeps Shop Busy

Matrix System Releases Low VOC Quick

Mightly Auto Parts Now Open. . . . . . . . . . . . . 4

NABC Needs Seven Directors . . . . . . . . . . . . . 4

Employee . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Guidelines . . . . . . . . . . . . . . . . . . . . . . . . 14

in Carlisle . . . . . . . . . . . . . . . . . . . . . . . . . 14

Nu-Look Collision Holds Benefit for Injured PA Body Shop Owner, 46, Found at Home

Cure Clear . . . . . . . . . . . . . . . . . . . . . . . . 48

NHTSA Publishes Changes to Safety

OEConnection Announces Online Expansion . . 6

Rhode Island Gov. Chafee Vetoes Auto Body

Accidents. . . . . . . . . . . . . . . . . . . . . . . . . 10

Service, Diagnostic and Mechanical News . . 30

PA Man Sentenced for String of Staged

Bill for Insurers. . . . . . . . . . . . . . . . . . . . . 44

Parts Shop Loses Sales License. . . . . . . . . . . 4

Supreme Court Won’t Hear Appeal on

Shop Owner Last Holdout in Expansion. . . . . 10

Texas’ Collision Repair Schools—No Lone

Repair Shop Victim of Crash. . . . . . . . . . . . . . 4

Sparta, NJ, Shop Rebrands Itself a

Classic Car Shop . . . . . . . . . . . . . . . . . . . 13

Students Work on Rescue UTV . . . . . . . . . . . . 4

The Business of Fixing Hail Damage . . . . . . . 20

Kia Brakes Suit. . . . . . . . . . . . . . . . . . . . . . 8 Reason for Success . . . . . . . . . . . . . . . . . 50

Win a Trip to SEMA as a Garmat Sharp Shooter. 8 Women’s Industry Network Launches New

Website . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Toronto Family Arrested for Running Chop Shop. 7

YouTube is a Valuable Sales Tool for

COLUMNISTS

PartsTrader Coverage

WMABA Labor Rate Survey Complete. . . . . . 18 Attanasio - Collision Repair is an Art Form

at Uptown Body & Fender . . . . . . . . . . . . . 34

Franklin - Capturing the Tough Ones . . . . . . . 46

Body Shops . . . . . . . . . . . . . . . . . . . . . . . 38

AASP/NJ Joins in Opposition to PartsTrader . . 1

ASA-Michigan Members and Vendors Discuss

State Farm’s PartsTrader Pilot Program. . . 12

Hey Toby! -Matrix Wand is a Game Changer—

Industry Leaders Discuss State Farm’s Pilot

Insider - With Estimates, Insurers See the

PartsTrader Announces 5-Year Deal with

Part 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Emperor’s Underwear . . . . . . . . . . . . . . . 55

Weaver - Problem on the IN-Side . . . . . . . . . 31

Yoswick - Non-OEM Parts Industry Meets

to Discuss Patent Law Change . . . . . . . . . 31

NATIONAL

3M Makes Major Donations Through Collision

Repair Education Foundation . . . . . . . . . . 54

Adelmann Elected to CAPA Board . . . . . . . . . 21

Advanced Car Technology Reduces Frequency

Parts Program . . . . . . . . . . . . . . . . . . . . . 43

“One of the Largest U.S. Auto Insurers,”

Adds Three Managers . . . . . . . . . . . . . . . 24

PartsTrader Draws Blistering Reaction at CIC,

Shop Owners Line Up to Comment in Person . 1

PartsTrader Forms Industry Advisory Council . 24

SCRS Says PartsTrader Has Sparked Four New

Industry Associations: UT, ID, AL and TX . 55

State Farm and PartsTrader Defend Parts

Program, Questioned about Benefits to Shops. 1

Co. has failed to provide her. Ms. Lovenia Wiles: 098 Suzuki Impreza: The “Parts Return Fees” associated with the return of defective after-market parts in the amount of $237.54 of which Travelers Insurance refused to provide for. Mr. Hugh Coachman: 2010 Ford Explorer: The costs associated with Tint-color $48.00, Feather Prime and Block $63.00, PMC Logic P&M invoicing @ $479.93, color-sand & polish @ $52.80, and $364.80 in labor rate difference ($48.00 vs. $42.00) of which State Farm has refused to provide him. Ray Gunder stated, “It’s been a busy week or so for our attorney Brent Geohagan. While many insurers have paid such fees without so much as a whimper, I’m anxious to get these matters before a judge and jury to set a case precedence of which our customers can use in the future to be properly compensated. Hopefully these types of actions will not be necessary in the foreseeable future, but regardless, we’ll keep ‘Pounding the Rock’”!

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

Indexof Advertisers

Shot to Death . . . . . . . . . . . . . . . . . . . . . . 13

Ray Gunder of Gunder’s Auto Center in Lakeland, FL, on behalf of his company’s customers, has filed multiple individual lawsuits against several insurers for their short pays of fair and reasonable charges. Gunder instructed his company’s legal counsel, Brent Geohagan, to file four separate lawsuits seeking recovery of the costs for various services and materials provided to his customers of which several insurers failed or refused to provide ample consideration. In each instance, the individual customer has authorized Ray Gunder to act in their behalf to seek recovery of the underpayments that each know are their personal financial obligation. They are as follows: Ms. Debra Koons: 2001 Suburban; Labor Rate Difference between $48.00 and $42.00 tendered by GEICO for a total demand of $231.50. Ms. Vivian Pierce: 2004 BMW X5: Feather-Prime and Block and related materials, and labor rate difference ($48.00 vs. $42.00) for $263.54 which State Farm failed to pay her. Ms. Juanita Langley: 07 Jeep Grand Cherokee; $2184.48 (23 different issues) plus car rental short-pay $87.09 of which Infinity Insurance

Acura of Westchester . . . . . . . . . . . 8 AJK Industries, LLC. . . . . . . . . . . . . 4 Amato Agency. . . . . . . . . . . . . . . . 31 Audi Wholesale Parts Dealers. . . . 51 Audi of Turnersville . . . . . . . . . . . . 14 BMW Wholesale Parts Dealers . . . 42 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 6 Chief Automotive. . . . . . . . . . . . . . 27 Classifieds . . . . . . . . . . . . . . . . . . . 55 DCH Family of BMW Stores . . . . . 35 Empire Auto Parts . . . . . . . . . . . . . 32 Equalizer Industries. . . . . . . . . . . . 38 Ford Wholesale Parts Dealers. . . . 45 Fred Beans Parts. . . . . . . . . . . . . . 56 Garmat. . . . . . . . . . . . . . . . . . . . . . 18 Glanzmann Subaru . . . . . . . . . . . . 21 GM Wholesale Parts Dealers . . . . 54 Hackettstown Honda. . . . . . . . . . . 10 Haydell . . . . . . . . . . . . . . . . . . . . . 41 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers. 49 Jaguar Wholesale Parts Dealers. . 54 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 46 Koeppel VW-Mazda. . . . . . . . . . . . 26 Lazare Kia . . . . . . . . . . . . . . . . . . . . 9 Lexus of Massapequa . . . . . . . . . . 13 Lexus Wholesale Parts Dealers. . . 53 Malco. . . . . . . . . . . . . . . . . . . . . . . . 5

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

Northeast

Contents

Matrix System . . . . . . . . . . . . . . . . 24 Maxon Hyundai . . . . . . . . . . . . . . . 25 Maxon Mazda . . . . . . . . . . . . . . . . 33 Mazda Wholesale Parts Dealers . . 47 Metric Subaru . . . . . . . . . . . . . . . . 22 Millennium Hyundai . . . . . . . . . . . 12 MOPAR Wholesale Parts Dealers . 23 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 48 Nucar Mazda . . . . . . . . . . . . . . . . . 19 Plaza Auto Mall . . . . . . . . . . . . . . . 37 Porsche Wholesale Parts Dealers. 52 PPG . . . . . . . . . . . . . . . . . . . . . . . . . 2 Reliable Automotive Equipment . . . 7 Safety Regulations Strategies. . . . 40 SCA Appraisal Company . . . . . . . 34 Scion Wholesale Parts Dealers. . . 52 Security Dodge-Chrysler-Jeep . . . 20 SEMA Trade Show . . . . . . . . . . . . 39 Solution Finish. . . . . . . . . . . . . . . . 50 Stadel Volvo . . . . . . . . . . . . . . . . . 36 Star-A-Liner . . . . . . . . . . . . . . . . . . 11 Subaru Wholesale Parts Dealers DE, South NJ, PA . . . . . . . . . 16-17 Subaru Wholesale Parts Dealers North NJ, NY . . . . . . . . . . . . . . . 44 Thompson Organization . . . . . . . . 15 Toyota Wholesale Parts Dealers . . 48 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 53 Volvo Wholesale Parts Dealers . . . 43

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 3

Charley Hutton Appears at PPG Show Truck Events

Charley Hutton, one of the custom car world’s most popular painters, will appear at the PPG Show Truck display at two major Goodguys Rod & Custom Association shows this summer. Hutton appeared at the 25th Pacific Northwest Nationals in Puyallup, WA, July 27-29, and also will be at the 11th MidWestern Nationals in Kansas City, KS, August 31-September 2 to meet show visitors and sign autographs. Well known for his laid-back and affable manner, Hutton has received an array of prestigious honors for his dramatic color schemes for high-end street rods. Accolades include Ridler Awards, Street Rod of the Year and Custom Rod of the Year awards, as well as an America’s Most Beautiful Roadster award. Hutton is also a recognized television automotive personality. He has appeared on the Discovery Channel’s American Hot Rod show with legendary custom car builder Boyd Coddington and was featured on Hot Rod TV and The Learning Channel’s Overhaulin’. He does most of his work in the Charley Hutton Color Studio in Nampa, ID, and uses only PPG Automotive Refinish products.

Mightly Auto Parts Now Open

Mighty Distribution System of America has teamed up with WLR Automotive Group, Inc., a Frederick, MD based company, creating Mighty Auto Parts of Maryland. Mighty Auto Parts of Maryland is now open and ready to serve customers in Carroll, Frederick, Howard, Montgomery, and Washington counties. WLR chose to become a franchisee of Mighty Auto Parts because of their customizable inventory management system, which benefits the businesses it serves in many ways, including cost reduction and increased sales.

Parts Shop Loses Sales License

A Saugus, MA, auto parts shop, Patty’s Auto Parts, lost its auto sales license for 45 days after police found a stolen car at the shop and hundreds of record keeping violations. An investigation started when a man saw his wife’s stolen car at the shop. Police found that car’s VIN number matched that of the stolen car, but the car was painted a different color and stripped. Shop employees were unable to produce the vehicle’s records. A investigation found 272 entries in the company’s records that did not have any supporting documentation.

Repair Shop Victim of Crash

A car repair shop in Lewiston, ME, has its own truck to repair after a car plowed into the building. Police say it happened around 11:30 a.m. on July 3. The owner of Thorn’s Corner Auto and Truck Repair, Michael Dube, says he was in the garage when he heard a loud crash. Glass started flying as a Honda, driven by an elderly woman, smashed into a truck, which then crashed into the building. Dube says there’s about $20,000 damage to his building, and thousands to the truck. The woman who was driving had to be cut out of the Honda.

NABC Needs Seven Directors

The National Auto Body Council (NABC) is now accepting nominations for its 2012 board of directors. The NABC said it will fill seven vacant positions on its board. Board candidates must be members of the organization or designated representatives of member companies in order to be included on the voting ballot. Candidates can be nominated either by themselves, or by three other NABC members. Board nominations can be submitted by mail, email or fax by Aug. 11, 60 days prior to the election. Visit autobodycouncil.org for details to submit a nomination.

Farmers Honors ABRA

The Rochester, NY repair center of ABRA Auto Body & Glass, a Minnesota-based damaged vehicle repair company, has received the Farmer’s Insurance Circle of Dependency “Multi Shop Operator Repair Facility of the Year.” The award is in recognition of ABRA-Rochester’s commitment to quality, service and excellence in collision repair.

Students Work on Rescue UTV

Auto body students from Caribou Regional Vocational Center in Caribou, ME, helped remodel a UTV “minitruck” for North Lakes Fire & Rescue. The mini-truck is suitable for small woods roads and trails. Chief Darren R. Woods said the department has put the truck into service to fight woods fires and assist with ATV incidents. The truck was in “pretty bad shape, flat tires and rotted metal,” Woods said. North Lakes firefighters did some metal work and then auto body students checked the engine and did a lot of patching and painting.

CT Body Shop Thrown Under the Busway

The owner of an auto body repair shop in Newington, CT, says a new busway may put them out of business. Mike Camillo predicts that when the New Britain-to-Hartford busway barrels through town, it’s going to roll right over his car repair business. “I’m probably going to have to lay off three people, I’m probably going to have to move,” Camillo said at a press conference outside West Hill Automotive on Willard Avenue. Camillo said his business could fall victim to the project that Gov. Dannel P. Malloy has been promoting as a powerful engine for economic development. “People are just beginning to learn about this thing. Nobody wants it, and now they’re seeing what it’s going to do to the towns all along the route,” Rep. Whit Betts, R-Bristol, said. “It’s never too late to undo a mistake,” added Sen. Joe Markley, RSouthington. But hundreds of millions of dollars in contracts have already been signed, and companies are deploying construction crews all along the route from Hartford to downtown New Britain.

A state transportation department spokesmen said that building the busway, now called CTfastrak, won’t create nearly as much inconvenience as large-scale jobs like the reconstruction of the Q Bridge. The state has acquired most of the easements it needs, so the vast majority of its work will be done on busway land without significant impact on neighbors or traffic, the DOT said. The DOT is taking land behind West Hill’s main shop through eminent domain, Camillo said. He complained that without that land as storage space, it won’t be possible to keep his towing and auto body business operating with 10 employees. But DOT spokesman Kevin Nursick and Michael Sanders, the agency’s public transit chief, said the state took a little more than a tenth of an acre and paid Camillo $140,000 for it. As with all eminent domain cases, the owner has the option of challenging the price in court, but $140,000 was fair market value, they said. By December 2014, central Connecticut will have a rapid transit system along an old industrial corridor that will relieve traffic on I-84 while fostering business and housing development, the DOT said.

4 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 5

Man Steals Back His Vehicle from Tow Truck Company

Police are searching for a suspect who they say stole his own vehicle from the Norwalk, CT auto body shop that towed his car. Norwalk Police responded to J Cox & Son Auto Body, 15 Knight St., shortly before 12:30 p.m. after a man snuck inside the property and took back his Honda Accord, which the company had towed earlier in the day for not having the car registered or insured. The vehicle was parked in the lot of the auto body shop, but the fence surrounding the building was left open, allowing the suspect to gain access to the car, police said. The tow truck driver was busy filling out forms when the larceny occurred. The man who snuck into the shop used a key to start the vehicle, indicating the suspect owned the car, police said. The vehicle is registered to a Bridgeport man, and police are applying for an arrest warrant.

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OEConnection Announces Online Expansion

OEConnection LLC, the parts e-commerce technology leader for original equipment manufacturers (OEM) distribution networks, has announced the expansion of its online parts ordering and fulfillment solution, CollisionLink, to automotive dealerships and their body shop customers throughout Canada. The all-makes, all-models original equipment replacement parts ordering solution will roll out on a province-by-province basis with nationwide availability by October. Coinciding with the launch is the introduction of competitivelypriced automaker parts programs— accessible through CollisionLink— from General Motors Canada and Ford Motor Company of Canada. In addition, Toyota Canada Inc. is launching a pilot program for Toyota and Lexus dealers in British Columbia and the Yukon Territory. “We are excited with the opportunity to introduce CollisionLink in Canada and bring another valuable solution to the international market,” said OEConnection President & CEO Chuck Rotuno.

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6 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

Keenan Raises $30,000 for Little Smiles Philadelphia

Keenan Auto Body raised a recordsetting amount of $30,000 for Little Smiles Philadelphia, an all-volunteer organization, at Keenan’s 14th annual charity golf outing held at Penn Oaks Golf Club on June 14. “We’re waiting for the final tallies and post-event checks to announce the accurate total, but we know it’s at least $30,000, and we couldn’t be more proud,” said Michael LeVasseur, President and COO. Added Craig Camacho, Keenan’s marketing director, “The folks who drive the Philadelphia Little Smiles charity are amazing. They all have full-time jobs and careers but somehow find the time to bring smiles to the faces of children throughout Philadelphia. The charity should be called Huge Smiles because that’s really what the kids have after being treated to their own requests.” Keenan has raised more than $255,000 in the last 14 years for charities such as Big Brothers Big Sisters, Camp Mak-A-Dream Foundation, Delaware County Children and Youth Services, Make-A-Wish Foundation and others.

CCC, CREF Announces Scholarship Winners

The Collision Repair Education Foundation and CCC Information Services Inc. have announced four students as winners of the CCC Michael Salvatore Memorial Student Repair Technician Scholarship. The scholarship program was renamed in 2007 to honor longtime CCC team member Michael Salvatore. The CCC Michael Salvatore Memorial Student Repair Technician Scholarship awards scholarships to students currently enrolled in a repair program who have demonstrated superior academic achievement. The top scholarship recipient ($5,000) is Melissa Scheuerman (Fox Valley Technical College, Appleton, WI) Additional scholarship recipients ($2,000) are Aaron Dressler (Pennsylvania College of Technology, Williamsport, PA); Josh Hudson (Guilford Technical Community College, Jamestown, NC); and Ryan Seefeldt (Fox Valley Technical College, WI). “CCC is proud of the accomplishments this year’s scholarship recipients have achieved,” said Joseph Allen, group vice president, Automotive Services Group, CCC Information Services.

Man Steals Car from Auto Body Shop, Kidnaps Wife

Police in Annapolis, MD, arrested a man they say was involved in a hit and run accident after he stole a car from an auto body shop and used it to kidnap his wife. Police say Mark Jackson was involved in a domestic assault and a hit and run. Officers learned that the Ford Taurus involved in the crash was actually stolen from Severn Auto Body Shop. Jackson took the keys for the car from a night drop box at the shop. When officers caught up to the car on Lincoln Court, it had severe damage to the passenger side and windshield. Jackson’s wife told police that he had used the car to take her from the Timothy House community to their home on Louis Drive, where he assaulted and choked her until she fell unconscious. Jackson was taken into police custody and is facing charges of assault, kidnapping, unlawful taking of a vehicle, destruction of property, failure to remain at the scene of an accident and other related offenses.

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Nu-Look Collision Holds Benefit for Injured Employee

Nu-Look Collision of West Henrietta, NY will host a benefit for their lead metal technician who works at the Nu-Look Collision shop located in downtown Rochester, NY. Kevin Royston was riding his bicycle on June 5 when he was injured in a hit and run accident in Rushville, NY. He lost part of his leg as a result. The raffle fundraiser, called “Raffle for Royston,” hopes to raise money for the Nu-Look Collision employee through a raffle with cash donations, giveaways, certificates and prizes. The raffle drawing will take place at the Ride for Royston benefit event, put on by Kevin’s family and friends. The event will be held on Saturday, August 4, 2012 at Bristol Mountain. There will be a benefit group bicycle ride, silent auction, and dinner. Tickets are $10 each or $50 for seven tickets and are available at all 10 Nu-Look Collision locations and participating sponsors. More details on the event will be posted on the Ride for Royston facebook page as they become available. See www.facebook.com/RideForRoyston.

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Toronto Family Arrested for Running Chop Shop

A Toronto, Ontario couple and their three grown children were arrested for running what police say was a familyrun chop shop and car-theft ring. The arrests are the culmination of a sixmonth investigation by police in York Region. Police have recovered around $500,000 worth of stolen parts at Collision World near Martin Grove Road and Highway 401. The five family members have been charged with possession of stolen property over $5,000, tampering with a Vehicle Identification Number, trafficking in stolen property and breach of recognizance. One of the men arrested has a previous conviction for running a chop shop in the ‘90s. He is also alleged to be behind a large marijuana grow-op found on the collision repair facility’s property two years ago. “Not only was this collision repair facility allegedly changing VIN numbers, but it appears to be licensed as a structural inspection station and as an OMVIC member,” says John Norris, Executive Director of Collision Industry Information Assistance. “This is a sophisticated operation. It is a sad day for this industry and the used car sales industry whenever these activities are

identified as these allegations diminish this industry’s reputation and its image with consumers and insurers.” Det. Sgt. Lou Malbeuf of the York Regional Police Auto Cargo Theft Unit says the police began their investigation when they were alerted to suspicious paperwork for vehicles that had supposedly been imported into Canada from New York State. Police started tracking down those cars and found that some of the vehicles had their VINs removed, replaced with fake VINs and sold through the alleged chop shop. “Information came in over the last six months, and everywhere we went, Collision World’s name was all over it,” says Malbeauf. “Thieves today are more sophisticated. We see cars stolen in a lot of different ways, duplicating keys, stolen off of tow trucks. All they need is one guy who knows how to do all this.” One of the cars recovered was a customized Mustang that had been reported stolen less than a week before. The vehicle had already had its VIN removed and been sold. Police also recovered a stolen BMW M5 sedan and another vehicle in addition to the stolen parts.

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Caliber, ABRA Award Student Scholarships

The Collision Repair Education Foundation recently announced the recipients of collision repair student scholarships made available by Caliber Collision Centers and ABRA Auto Body & Glass. The Education Foundation said two collision students from Universal Technical Institute were awarded with $4,000 scholarships from Caliber Collision Centers. The scholarships, which will help pay for school tuition costs, were presented to Alejandro Gomez of Universal Technical Institute in Houston, and Matthew Andersen of Universal Technical Institute in Sacramento, Calif. “Caliber Collision has a longstanding commitment to workforce development. Our commitment to the Collision Repair Education Foundation is our way of ensuring young adults see our industry as a challenging and profitable profession,” said Mark Sanders, chief operating officer for Caliber. “We congratulate Alejandro and Matthew and wish them great success in our industry.” ABRA Auto Body & Glass also awarded eight secondary and post-secondary collision repair students with a $2,000 tool grant. The Education Foundation said each recipient of the grant was able to select $2,000 worth of tools

and equipment from the NATEF tool list. ABRA presented its 2012 tool grant to the following students: • Angel Cardenas of Maxwell High School of Technology in Lawrenceville, Ga. • Joshua Castillo of Universal Technical Institute in Houston • Karl Liufau of Universal Technical Institute in Houston • Daniel Norlander of Dunwoody College of Technology in Minneapolis • Kolton Perschbacher of Warren Technical School in Lakewood, Colo. • Kristopher Roof of Aims Community College in Windsor, Colo. • Christina Sepulveda of Nashville Auto Diesel College in Nashville, Tenn. • Luis Sotelo of Aims Community College in Windsor, Colo. “This is a terrific way for companies like ABRA Auto Body & Glass to give back to our industry. As collision repairers, we have an obligation to support these students that will be the backbone of the repair industry in the future,” said Tim Adelmann, executive vice president of ABRA.

Supreme Court Won’t Hear Appeal on Kia Brakes Suit

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The Supreme Court refused to hear an appeal of a $5.6 million verdict against Kia Motors Inc. in a class-action suit over allegedly faulty brakes in Sephia sedans. The high court decision ends an 11-year legal battle. The Pennsylvania Supreme Court last December upheld a decision that awarded $600 — $5.6 million total — to 9,400 owners of 1997 to 2000 Kia Sephias in Pennsylvania that had brakes that allegedly wore out much faster than normal. Owners in other states have pursued separate claims. A jury in New Jersey found Kia Sephia owners could be reimbursed up to $750 for brake repairs. The Pennsylvania suit was first filed by a Kia owner that had gone to a dealer five times to get the brakes repaired on her 2001 Sephia between January and October 2000. Kia changed the brakes beginning in the 2001 model year.

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GARMAT USA has announced the return of the immensely popular Garmat Sharp Shooter contest for shop owners and paint techs. This contest is designed to recognize quality paint techs and shop owners that use Garmat equipment. The Garmat Sharp Shooter Contest will run through September 18. Paint techs and their managers will have the opportunity to tell their Garmat story, in either video testimonial or written statements. Judging is based on the shop owner and paint tech's dedication to providing quality paint jobs, superior customer service, attention to safety and overall equipment knowledge. Bonus questions include an inquiry on how Garmat can improve their Garmat experience with product improvements. The first 100 entrants will receive a custom Garmat Sharp Shooter Cap. First place prizes of two leather jackets (one for the contestant and one for the owner) will be awarded to five finalists, and the Grand Prize of a trip for two to Las Vegas will go to the contest winner. Contest rules and regulations can be found at www.garmat.com.

8 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

Illegally Parked Cars at Hunters Point Body Shops Called ‘Eyesores’ in a Nice Neighborhood

Banged up cars needing body work and other repairs are littering a stretch of streets of Hunters Point, and fed up residents of the neighborhood in Long Island City in Queens, New York are looking to put the brakes on the longtime practice. Residents and local business owners said the street has been an eyesore in the area. Auto body shops on 44th Avenue, between 11th and 21st streets, in Hunters Point have long parked unregistered cars in need of work illegally, blocking coveted parking spots and blighting the street, according to locals. The area has been undergoing change recently, including an influx of new hotels such as the Wyndham Garden that opened two blocks away and Z NYC. Many companies and art studios have recently moved into the neighborhood’s old warehouses as well. A resident who lives on 11th Street said the problem has persisted for years and that auto body shop owners “completely took over the street.” It is illegal to park a car without a plate and registration on the street. But the practice puts cops in a bind because they cannot issue a summons if there is no plate, cops said. “We’re trying to handle it on a day-to-day basis,” a police source said.

“Where cars are parked illegally, we either summons them, or if we cannot summons them, we just end up towing them.” The cars, brought to the auto body shops by their owners who need to have repairs made before they can get them registered, often end up on the street if there is no space inside of garages. The managers and owners of two of three auto shops along the stretch have denied any wrong doing. Instead, they pointed fingers at one another. “It’s the guys next door,” said Carl Daniel, a manager at 43-44 Auto Repair Inc. on the corner of 44th Avenue and 21st Street. “They do that when they don’t want to block their lifts, or when they don’t have not enough space inside.” The owner of Sufi Auto Repair next door, who refused to give out his name, said he had only one car outside which, he said, would be removed shortly. He said the other cars parked on the street without plates belong to other shops. The owner of Queens Star Autobody, Najad Ali, admitted that he sometimes leaves cars outside, but only because he is trying to finish his work quickly. “We are open 24/7 and have many customers.”

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Large Turnout for AASP/NJs 8th Annual Golf Event

Despite temperatures in the high ‘90s, nearly 100 golfers turned out to hit the links for the 8th annual Lou Scoras Memorial Golf Outing, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ)’s yearly event in memory of the former association member. “What a fabulous turnout,” AASP/NJ Executive Director Charles Bryant said. “We were a little concerned about the weather, but everything turned out great. Everyone stayed cool and had a great time. It was an excellent tribute to Lou’s memory. I’m sure he was looking down and smiling.” Joining the participants at the Colonia Country Club in Colonia, NJ were dozens of industry sponsors whose support was integral to the event’s success. “We are extremely thankful to all who contributed to making the event a great one,” Bryant adds, “especially our Platinum sponsors (The Amato Agency, Hertz Rent-A-Car, All American Auto Salvage and Enterprise Rent-A-Car), Gold sponsors (Keystone/PPG and Keystone/AkzoNobel), Silver sponsors (Toyota of Morristown, Leesville Auto), Bronze sponsors (Cosmo’s Ocean County Auto Wreckers, United Bank Card Network, Progressive Insurance Co.)

and Hole-In-One (Maxon HyundaiMazda) sponsors.” The day began with a lunch (sponsored by All American Auto Salvage) followed by a shotgun start. A dinner (emceed and sponsored by the always-entertaining Joe Amato Sr. of the Amato Agency) with dozens of prizes completed the event after the tournament. “When you have an event that is as special as this, the industry always comes out and supports it,” Bryant adds. “We really had so many people step up in memory of Lou. Toyota of Morristown sponsored our refreshment carts, which were so important on a hot day like this. Hertz helped out tremendously with our check-in while giving every player a prize bag full of items. We even had quite a few insurance companies (Progressive, Travelers and Utica National) participate, so you know this was bigger than just a few body shop guys getting together. It was an event that really showed how our industry can work together. Hopefully, that kind of attitude carries over into day-to-day business. All I can say is Lou would be proud.”

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PA Man Sentenced for String of Staged Accidents Edgar Rodriguez, 39, of Erie, PA had a tendency to get in automobile accidents in his 2003 Dodge Grand Caravan. Eventually the frequency and similarity of those accidents caught up with him. Rodriguez was sentenced on June 19 for his guilty plea to running a 10-person ring that staged phony crashes and earned him and his coconspirators over $37,000. Police note that the scam continued from June, 2011 to October, 2011. Rodriguez was sentenced by Judge Ernest J. DiSantis Jr. to six to 23 months in the Erie County Prison, then immediately paroled. Rodriguez was granted the parole because he had already served six months in prison after his October arrest. He will now be on parole for 17 months, the balance left to his sentence. DiSantis also ordered Rodriguez to serve four years of probation and to pay restitution of about $37,000, which his co-defendants will also help to repay. The case against Rodriguez started in April of 2011, when an investigator from GEICO contacted Lt. John McCall, the insurance fraud investigator for the Erie Police. McCall said the insurance investigator had become suspicious about the number of Rodriguez’s accidents, and how they often shared similarities

in the kind of damages and the vehicles, including the 2003 Dodge Grand Caravan. McCall gathered photos and other details for each claim. McCall stated, “There was a lot of information. Once I started comparing the photos, that really did it.” Rodriguez pleaded guilty in April to two counts of insurance fraud and three counts of conspiracy to commit insurance fraud, which are all third-degree felonies. McCall accused Rodriguez of filing 21 bogus claims with insurance companies, including GEICO, State Farm, Nationwide and Progressive. Some of the claims were based on staged accidents and others on exaggerated damages, said Assistant District Attorney Roger Bauer, who handled the case. Rodriguez’s lawyer, Kevin Kallenbach, said the five charges to which Rodriguez pleaded guilty covered a total of 15 acts of fraud, three in which he acted alone and 12 in which he had help.

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Shop Owner Last Holdout in Expansion

William Lieberth Sr., 56, owner of Allegheny Auto Body in West Deer, PA, has been at the same location on East Ohio Street since 1976. However, he is being told he must move his shop by Aug. 6. The Pennsylvania Department of Transportation (PennDOT) has told Lieberth that the ongoing Route 28 expansion requires use of his building and its adjacent parking lot. The state

William Lieberth, owner of Allegheny Auto Body, doesn’t want to move

has acquired the land through eminent domain and Lieberth is required to vacate the property by Aug. 6. “But I have no intention of leaving,” said Lieberth. He wants to leave the shop to his son, Bill Lieberth, 34. In 1976, Lieberth’s father purchased the 7,000-square-foot Allegheny Auto Body shop and adjoining 7,000-square-foot parking lot. Lieberth, in turn, planned to pass it on to his own son when he retired.

That plan was upended in late 2006 when PennDOT began the process of acquiring the property needed to widen Route 28. Since then, 15 residences and 24 businesses have been relocated. The agency first contacted Lieberth about acquiring his property and relocating his business in March 2007. No agreement was reached in the ensuing years, and on Nov. 11, 2011, PennDOT paid Mr. Lieberth $115,000 for his property, including liens, and took ownership of the property. PennDOT sent a letter in early July stating that he must vacate the building by Aug. 6 so the Route 28 work can proceed. Lieberth said he can return PennDOT’s check and that he plans to stay. He argues that PennDOT can build around him because in 2003 the agency shifted its expansion of Route 28 to avoid St. Nicholas Church, the auto shop’s neighbor. Lieberth sent a letter to Gov. Tom Corbett, asking that PennDOT either build around him, give him enough money to retire or let him move his business to a lot nearby. Meanwhile, both Lieberth and PennDOT have appealed the case to the Board of Viewers. If Lieberth does not vacate his building by Aug. 6, PennDOT will file a legal petition to begin eviction proceedings.

10 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

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Auto Body Tow Truck Involved in Fatal Collision, 5 Killed Five people were killed when a tow truck and a car collided June 28 in rural Heidelberg Township, PA, authorities said. Four people in the car — three males and one female — and the tow truck driver died in the 2:35 p.m. collision at Mountain and Bake Oven roads, state police at Bethlehem said. A tow truck passenger, a man, was injured and taken to Lehigh Valley Hospital-Cedar Crest. “The tow truck would have been moving south on Mountain Road,” state police Cpl. Mark Rowland said. “The passenger vehicle pulled out from Bake Oven Road and it was struck, and the vehicles went off the roadway.” The vehicles ended up in a swampy area, about three miles east of Route 309, near Blue Mountain, 15 miles northwest of Allentown. The tow truck from Ironton Auto Body was hauling a box truck when the vehicles collided. All three vehicles continued through the intersection, crashing into a utility pole. More than 200 PPL customers in Heidelberg Township lost power.

The car was badly mangled beneath the tow truck, which appeared to have lost its roof. It was unclear if the roof was off because of rescue attempts or from the crash. Another tow truck was brought in to lift the damaged tow truck, allowing emergency crews to get to the crushed car. All five bodies were removed by 8:45 p.m. Those who died include Nicholas Gustafson, 22 of Orefield, PA. He was a 2008 graduate of Northwestern Lehigh High School who was attending college. Gustafson and his friends were in his 1997 sedan heading north on rural Bake Oven Road in Heidelberg Township. They had just picked up a snack at the bagel shop where he worked. The driver of the tow truck was Charles P. Oswald, 58. A retired grandfather, he was helping out a friend who owns an auto body shop. State police said Gustafson did not stop at a stop sign where the two roads meet and the impact of the tow truck pushed the car into a swampy ditch in front of Haak’s School House Bar, where it was flattened.

“My dad loved his five grandchildren and was driving that day to help out a friend who just lost his brother,” said Amy Foster, a daughter of Oswald, who lived in Schnecksville. “That’s just the type of person my dad was. He was always willing to help anyone and always wanted to stay busy.” Teri Breininger, the bagel shop manager, wiped away tears as talked about Gustafson. She called him a “good kid who was a really hard worker,” adding, “It’s been a very tough time.” Gustafson and Oswald died at the accident scene, as did the three friends in Gustafson’s car: Michael Bruno, 23, of Catawissa in Columbia County; Cecilia R. Besecker, 22, of Dallas in Luzerne County; and 17year-old Zach Alai of South River, N.J.

A passenger in the tow truck, Walter D. Fries II, 50, of Northampton, suffered moderate injuries and was transported to Lehigh Valley Hospital-Cedar Crest. Police said they couldn’t determine if anyone was wearing a seatbelt in the crash. Oswald, who lived in the Lehigh Valley for nearly his entire life, was a retired union sheet metal worker, his brother Keith Oswald said. To those who knew him, Charles Oswald was a “stand-up guy” and a hard worker, his brother said. As a hobby, Oswald competed in drag racing and rode four-wheelers with his son. To stay busy in retirement, he drove trucks, family members say, and on the day of the accident, was driving the tow truck for Ironton Auto Body.

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ASA-Michigan Members and Vendors Discuss State Farm’s PartsTrader Pilot Program Automotive Service Association (ASA) members and related collision industry vendors in the Michigan area were recently invited recently by ASA-Michigan, an ASAaffiliated association, to attend a “facts to date” presentation and member discussion centering around the State Farm electronic parts ordering application. The pilot is currently taking place in Grand Rapids, MI.; Charlotte, N.C.; Birmingham, AL.; and Tucson, AZ. Organized by Ray Fisher, AAM, president of ASA-Michigan, the June 28 meeting was held in Lansing, MI., at the Lansing Community College. ASA-Michigan provided the forum to present the facts to date about the pilot, along with clear statements of concern from both repairers and suppliers in the Michigan area and around the United States. “Anytime there is a ‘gamechanging’ situation – as this pilot is for the industry – it is imperative that we inform the industry with factual information, allow time to digest that information and work together to provide solutions, on behalf of the membership and potential members. During these challenging economic

times we must focus on helping repair facilities generate revenue,” said Fisher. During the four-hour meeting, Denise Caspersen, ASA collision division manager, spoke about the pilot with an audience of nearly 100 preregistered ASA members, vehicle manufacturers, staff representatives of the Michigan Auto Dealers Association and vendors. Audience members were encouraged to express their concerns, ask for clarifications to specific questions and provide additional questions to be supplied to State Farm and PartsTrader, the company providing the electronic parts ordering application. Main concerns continue to be how this application, as introduced by State Farm, will affect profitability, the unknown impacts on the relationships between shops and suppliers, and the overall current “climate” between repairers and insurers. “The opportunity for ASA to participate in a discussion with ASA members and vendors in the pilot area of Grand Rapids, MI. is invaluable in understanding the overall climate impression around the State Farm pilot,” said Caspersen.

CREF Announces Three New Trustees

The Collision Repair Education Foundation announces the addition of three new Trustees to its Board of Trustees: David J. Brunori, Matrix System Automotive Finishes; James A. Fichera; and William Lawrence, LC Automotive Investments, LLC. Dave Brunori brings over 29 years of industry experience, currently in the role of Executive VP/General Manager with Matrix. He has grown the company from a start-up to over $60M in revenue. Prior to Matrix, he was with PPG Industries for nine years and Lilly Industries for two years, all in vehicle refinish. He currently serves on the Oakland County Technical Advisory Committee in Southwest, MI. He holds a Bachelor’s Degree in Chemistry and a Master’s Degree in Operations Management. Jim Fichera brings over 40 years of industry experience, 23 years with Steel Center A.V.T.S. in Jefferson Hills, PA as a Collision Repair Instructor. Steel Center A.V.T.S. won the Collision Repair Education Foundation’s Ultimate Collision Education Makeover Grant in 2009. The school program completed NATEF certification (one of first in PA). He is an ICAR Welding Instructor and holds a Bachelor’s Degree from Indiana Uni-

versity of Pennsylvania. He believes that education is key to fill the workforce needs of our communities; educating our youth is vital to continue to meet the local and national needs. Bill Lawrence brings over 43 years of industry experience. He is the owner and president of LC Automotive Investments, LLC, which he has held for 8 years. He previously was with Allstate Insurance for 28 years and has spent the remaining 15 years in the collision repair side of the business. He previously served on the Foundation Board and as Foundation Chair and the advisory boards of CCC, Keystone, Nationwide, Safeco, Allstate, and VeriFacts. His company supports various local charities as well as OxFam, World Vision, etc. He holds a Bachelor’s Degree in Marketing. Chairman Northup noted, “The Collision Repair Education Foundation is fortunate to have these three individuals joining the Board of Trustees. Their individual and combined experience will provide a diverse background and knowledge base for our Board. It’s reassuring and humbling to participate with this high level of individuals who graciously give of their time and resources to our worthy cause.”

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Sparta, NJ, Shop Rebrands Itself a Classic Car Shop

Jim’s Station Automotive in Sparta, NJ is celebrating their move to the Sparta Town Center located on Route 15. As a mechanical repair and auto restoration provider to the Sparta area, the Malaro family has owned the business since 2007 when the family purchased Wayne Brown Automotive. Jim’s Station Automotive will now be known as Jim’s Automotive & Classic Cars, located at 637 Lafayette Road. James Malaro, Sr. has more than 40 years experienced in the automotive industry, including vehicle maintenance and repair, custom auto fabrication, fiberglass boat fabrication, auto body and collision repair, and corvette restoration and repair. He is the senior level collision damage estimator and former body shop owner of Malaro’s Auto Body I and II. In addition, he has built and completed dozens of custom cars and motorcycles which have been featured in many national magazines such as Street Rodder, Rod & Custom, Rodder’s Digest, and Hot Rod Magazine. James Malaro, Jr., shop manager and technician, is a graduate of Sparta High School and WyoTech in 2004.

PA Body Shop Owner, 46, Found at Home Shot to Death Police in central Pennsylvania are investigating the shooting death of a used car and scrap dealer as a homicide. State police in Columbia County said they found the body of shop owner Frank Spencer, 46, inside the front doorway of his home near Millville, PA, on July 3. Spencer’s body was first discovered by a friend who had stopped by the Hemlock Township home around 10:40 a.m. On July 4, the victim’s truck was discovered in Sunbury, about 25 miles from his home. State police at Bloomsburg had put out an all-points bulletin for a 2003 Ford F-150 HarleyDavidson edition truck owned by Spencer. Columbia County Deputy Coroner Linda Kessler says an autopsy was planned to verify the cause of death. Spencer, who was recently divorced, had complained repeatedly to Hemlock Township police, state police and anyone else who would listen in recent years about threats being made against his life. Spencer was a 1984 graduate of the Bloomsburg High School, where he was a well-known member of the wrestling team, and a 1988 graduate of the Bloomsburg University.

Spencer spelled out his concerns about the alleged threats against him in court documents filed in Columbia County a few years ago. Accompanied by his then-attorney, Joel Wiest, of Sunbury, Spencer and his girlfriend, Julie Dent, spoke with The Daily Item in November 2010 after both of their homes were burned down within seven months of each other that year. In January 2010, the Millville Road house in Hemlock Township Spencer shared with his mother burned to the ground. A cause was never determined, but Spencer was convinced the fire was set. Dent was asleep in her Old Valley School Road home in Columbia County in August 2010 when a fire woke her. She escaped by jumping out of a second-floor window. The blaze was ruled an arson by state police, but no charges were ever filed. Spencer claimed he received specific threats before each fire and reported them to local and state police, to no avail. State trooper Patrick Finn, of Bloomsburg, the lead criminal investigator in the case, said he is aware of the complaints as well as a long and contentious divorce Spencer waged

with his former wife, Maria Sanutti Spencer, the mother of his two children, ages 13 and 11, which was recently finalized. At one point, Spencer filed a protection-from-abuse order against her. “It’s no secret they had a bad break-up. (Spencer) made that known to everyone,” Finn said. Finn would not say if there were any suspects in Spencer’s death. Friend Kevin Halye said he was in shock after finding out one of his close friends died. Halye went to school with Spencer and knew him for 35 years. “Just total devastation. I’ve known the guy forever and he’s been a really good friend of mine. It’s just a total tragedy. I can’t believe it happened,” Halye said. Halye said racing was one of Spencer’s biggest passions. He said Frank even sponsored several of his cars. He said former NASCAR driver Jimmy Spencer was his cousin, and Frank raced at tracks all over the country with his son. Friends said Spencer was well liked, well-known around the Bloomsburg area and was passionate about cars, and they could always find him at his auto body shop.

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‘Insurers Boo, Lawyers Cheer’ Passage of New York Insurance Bill The passage of an insurance bill at the end of New York’s legislative session in June has sparked both cheers of support and cries of opposition as Gov. Andrew Cuomo considers the proposal’s finalization, according to the Online Auto Insurance News Team. A10784 changes rules governing policyholders’ participation in supplementary underinsured/uninsured motorist coverage (SUM), requiring now that all policies automatically include it and that policyholders can opt-out if they don’t want the added cost. Before, it was not automatically included. Currently, all policies offered by auto insurance companies in New York include uninsured motorist coverage. This type of insurance covers crash-related medical expenses racked up by policyholders, family members, household members and passengers when the accident was caused by an uninsured or unidentified driver. SUM coverage is an optional add-on that beefs up the protections offered through the uninsured motorist portion of a policy. SUM coverage extends the uninsured coverage protections to out-of-state accidents, provides such coverage equal to the liability limits if the policyholder raises them above the minimum required by

NHTSA Publishes Changes to Safety Guidelines

The National Highway Traffic Safety Administration (NHTSA) recently published amendments to the Highway Safety Program Guidelines for states. The proposed NHTSA Highway Safety Program Guidelines Amendments include recommendations for periodic motor vehicle inspection (PMVI). NHTSA’s proposal calls for every state to have a periodic vehicle inspection program and require vehicle owners to correct these conditions in order to reduce the number of accidents. According to the proposed guidelines, an inspection program would provide, at a minimum, that: Every vehicle registered in the state is inspected at the time of initial registration and on a periodic basis thereafter as determined by the state. The inspection is performed by competent personnel specifically trained to perform their duties and certified by the state. The inspection covers systems, subsystems and components having substantial relation to safe vehicle performance. Each inspection station maintains records in a form specified by the state.

law and provides coverage when the person who caused the accident’s liability limits are too low to cover all damages. A10784 passed the state Senate on June 21 and was supported by legal organizations, including the New York State Trial Lawyers Association (NYTLA). NYTLA organization member and law firm Flanzig & Flanzig applauded the bill’s passage, calling it a “common-sense” measure informing motorists about a type of coverage they should be more aware of. “The bill preserves consumer choice, protects drivers and will save taxpayers money as fewer accident victims are forced to rely on Medicaid and other public benefits after accidents involving under- or uninsured drivers,” the law firm stated on its website. Optional added SUM protection is currently available through additional premiums with limits of $250,000 per accident per person and $500,000 per accident, although many insurers provide higher SUM limits, according to a guide from the New York Department of Financial Services. However, insurers in the state

have cried foul over the legislation, saying its opt-out requirement flies in the face of the “more transparent process of opting-in.” “The potential effect of this legislation on rates would be devastating to consumers,” the New York Insurance Association (NYIA) said in a July 2 statement pressing Cuomo to veto the bill. “Individuals could end up paying a lot more for coverage that they didn’t even choose to have as part of their auto insurance policy.” The NYIA also scolded lawmakers for failing to pass “comprehensive legislation reforms” of the state’s nofault system, which compensates motorists for crash-related expenses regardless of fault, adding that fallout from implementing A10784 would be “compounded by the Legislature not passing meaningful no-fault reform this year.” State senators passed three bills governing criminal classifications related to no-fault coverage, including S1685, which would make staging car accidents a felony punishable by up to seven years in prison. The legislation was sponsored by Sen. James Seward (R-Oneonta). Seward also sponsored the Senate version of the SUM bill, titled S7787.

Mid-Summer Hail Storm Keeps Shop Busy in Carlisle

A severe mid-summer hail storm hit central Pennsylvania on July 18 and at least one local shop expects to see dozens of hail-damaged cars over the next few months. “The weather systems are shifting. We”ve had more severe storms here the past two years than we”ve seen since the late 50s,” said Terry Lockard, the glass man with Bob Baish Glass, Body & Paint, located at 1249 Holly Pike in Carlisle, PA. The shop is owned by Dick Baish and has been in business since 1964. On the day of the storm, the shop saw one vehicle come in with its rear windshield broken out, and the day after the storm, the shop did 40 estimates. Two days later, in heavy rain, only five vehicles came in for estimates, but Lockard expects a deluge of customers over the next few months as people notice their cars have hail damage. “Some people may not notice until their next car wash,” he explained. The storm only lasted a minute or two, Lockard said, but this year’s hail event caused bigger and deeper dents. “This storm was worse that the last two seasons. We had bigger hailstones, but the storm hit a smaller area on the east side of the strip. See related story on p. 20.

14 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

Driver Dies After Crashing into Body Shop

Easttown Police are investigating a two-vehicle crash that involved the death of one of the drivers on Lancaster Avenue/Route 30 in Berwyn, PA. The two-vehicle crash sent one car slamming into an auto body shop on Lancaster Avenue. Berwyn Fire Company Assistant Chief Eamon Brazunas said a car was coming out of Conestoga Collision at 961 East Lancaster Avenue Berwyn, PA, just before 9:40 a.m. when it was hit by a car on Lancaster Avenue. The impact sent the car crashing into the building. According to Brazunas, nobody in the repair shop was injured but the unidentified driver was trapped inside the car. The driver was in cardiac arrest when firefighters removed her from the mangled car. Barzunas said it was not clear at the time if the cardiac arrest or the result of the crash was the cause of death. The victim was rushed to Paoli Hospital and pronounced dead in the Emergency Room. There were no other injuries reported at the crash scene. The Berwyn Fire Police assisted with closing the westbound lanes of Lancaster Ave., while the ETPD conducted their investigation.

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 17

Auto Insurance Claims Satisfaction Rebounds After 2012 Decline by J.D. Power and Associates

Customer satisfaction with the auto claims experience has returned to levels similar to those in the second half of 2011, after a notable decrease in the first quarter of 2012, according to the J.D. Power and Associates 2012 U.S. Auto Claims Satisfaction StudySMWave 3 released July 17. The study measures customer satisfaction with the claims experience for auto physical damage loss. Depending on the complexity of the claim, an individual may experience some or all of the following, which are measured in the study: first notice of loss; claim service interaction; damage appraisal; repair process; rental experience; and settlement. Overall customer satisfaction has increased by 10 points (on a 1,000point scale) to 852 from the first quarter of 2012. Satisfaction with settlement, the largest driver of increased satisfaction, is one of the most improved among the six factors, with a 12-point increase from the first quarter of 2012. Satisfaction in all factors has increased in the second quarter,

compared with the first quarter. The study finds the amount paid out-of-pocket (the amount of money paid over and above the deductible) decreases by $36 to an average of $218 in the second quarter of 2012, compared with the first quarter. Among the 21 percent of claimants who had an out-of-pocket expense, the percentage that spent more than $300 has decreased to 22 percent, compared with 25 percent in the first quarter. Settlement satisfaction falls significantly among claimants paying in excess of $300 above and beyond their deductible, with satisfaction 89 index points lower than among those who pay only their insurance deductible. “The amount spent out-of-pocket most definitely affects the perception of fairness of a settlement, further influencing satisfaction with the overall auto claims process,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “Additionally, the settlement factor is influenced highly by the clarity and thoroughness of the settlement explanation given to the customer by the insurance company. If the cus-

WMABA Labor Rate Survey Complete

The Washington Metropolitan Auto Body Association (WMABA) has announced that the results of its 2012 labor rate survey. The survey was conducted to determine a more equitable labor rate since, according to WMABA Executive Director Jordan Hendler, some areas around DC haven’t seen a rate increase in five-plus years. “So many of our members tell us that they’re very rarely, if ever, surveyed by any insurer,” says Hendler. “When they attempt to tell the carrier their new rates, they’re often stonewalled or referred to another manager. In many cases, the shop is told that their rates aren’t competitive, and [the insurer] will have to inform all of their customers not to go to that shop or risk paying the difference. This type of threat seems to be the unnecessary approach that most insurers take with any labor rate request or needed repair procedure.” Results for average body labor rate were: Baltimore: $43.64; Annapolis: $43.51; Hagerstown: $43.59; Washington DC: $43.35; Virginia Beach: $44.4; Charlottesville: $44.28; Richmond: $45.34; Roanoake: $43.34 In addition to showcasing posted labor rates throughout the WMABA

region, the project uncovered a surprisingly small number of shops that actually utilize paint and material (P&M) cost accounting programs. “I think mostly it’s a lack of understanding or going against the norm,” said WMABA President Barry Dorn. “I know that many insurers do not and will not recognize [a cost accounting program]. The old method of using a multiplier as a method of reimbursement is antiquated at best. Petroleum prices, and thus paint prices, continue to escalate; for some reason, the rates do not. The calculators take all arguments away from everyone. They’re accurate and something this industry needs to embrace.” According to WMABA, hundreds of shops participated in the labor rate survey process, although many didn’t, something that Dorn doesn’t understand. “I don’t understand the logic behind their decision,” Dorn says. “Without this survey, you’re forced to ‘go it alone,’ balance bill the customer or complain to anyone who will listen – none of which is a solution. I don’t remember the last time a carrier surveyed me. Your association did this to get a real, factual and third-party perspective rather than hearsay.”

18 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

tomer understands the process and what they are paying for, they tend to have higher satisfaction with their experience.” After increasing steadily for two consecutive quarters, the average claim duration for a repairable vehicle (from reporting the claim to the vehicle being returned to the customer, is now 13.7 days, a slight improvement from 14 days in the first quarter of 2012. Most of this improvement is due to customers taking their vehicle to the repair facility quicker. In the first quarter findings, claim duration had increased due to customers waiting nearly one day longer, on average, to take their vehicle in for repair, perhaps influenced by the holiday season. This increase is reduced by nearly one-half day in the second quarter and may have influenced the improved performance of insurers in managing expectations for the length of the claims process. Satisfaction with the repair process has rebounded from the first quarter by 10 points. “While average damage severity and, hence, the repair time is relatively unchanged from last quarter, we are

seeing an increase in satisfaction,” said Bowler. “This increase may be due to the perception that the claims process is moving faster. From the time a person notifies their insurer of the accident or loss, on average, vehicles were getting to the repair facility half a day faster, expediting appraisals such that settlement explanations also occurred an average of half a day sooner—both key metrics for delivering a satisfying claims experience.” The 2012 U.S. Auto Claims Satisfaction Study—Wave 3 is based on responses from more than 2,600 auto insurance customers who filed a claim within the past 6 months. The study excludes claimants whose vehicle only incurred glass/windshield damage or was stolen, or who only filed roadside assistance claims. Survey data for Wave 3 of the study was gathered between April and May 2012.

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The Business of Fixing Hail Damage for Consumers Even before the thunderstorm stopped pelting Carlisle, PA, with hail and rain on an afternoon in mid July, Wendy Deibler and all of her employees at Deibler Insurance Associates were getting phone calls from worried car owners. The weather took a sudden turn around 2 p.m. on July 18 with 10 minutes of quarter-size to golf ball size hail reported in the Carlisle area. This is the third year in a row the Carlisle area has faced a hail storm. “If you have comprehensive coverage, you’ll be covered, less the deductible,” she said. “If they don’t have comprehensive coverage, they do not have it covered.” Jake Raudabaugh, owner of Fine Line Auto Body in Carlisle, said most of the car owners he sees in these situations tend to have comprehensive coverage with little or no deductible, which is a good thing given what kind of expense car owners could face. Raudabaugh explained that there is a process any car owner has to follow, regardless of how much damage the vehicle sustains. To start, he suggested that owners simply look at their cars in a garage or somewhere with fluorescent light instead of in daylight. “We have had people come in and

don’t know they’ve had hail damage until six months later,” Raudabaugh said. “Depending on what color of car you have, sometimes you can’t even see it.” Once car owners see the extent of the damage to the vehicle and decide to do something about it, they should call their insurance company, which will give them instructions for how to get an estimate – whether that can be at a company of their choice or through a specific business, according to Raudabaugh. When the estimate is produced, the car can be taken to get fixed. Raudabaugh explained that local auto shops can fix the damage, but he noted that there are people who specialize in fixing hail damage and follow in the wake of storms to offer those services. The so-called “hail chasers” come in from out of state and offer to repair vehicles that have been damaged during the storm. Fine Line Auto Body houses some of those professionals after storms pass through the area. Those professionals can do the work at the Carlisle business, which provides a guaranteed warranty on their work, even after the hail chasers leave. Though Raudabaugh said that many of

20 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

the “hail chasers” are experts at what they do, there are some downsides to getting work done from visiting auto repairmen who don’t get the backing of a local business. “Some of them come up and set up tents,” he said. “The problem with this is, once they’re out of town, they’re out of town. You need to go to a reputable place that has a warranty.” The repair itself can vary on the extent of the damage to the car. Raudabaugh explained “paintless dent repair” in which experts push out the dents. The PDR wouldn’t involve having to do an extra exterior paint work, which would add to the total cost of the repair. Raudabaugh estimated that the cost for a PDR could be in the thousands of dollars. “Two years ago, we had pretty severe hail damage, and the average cost was about $3,000 to $4,000,” he said. “Last year, it was more minor damage, and the average was about $2,000 to $3,000.” That cost would rise if a car received more than just little dents. Anything that requires extra paint to cover up scratches and major dents means more money, and Raudabaugh said those costs may add up to $8,000 or $9,000. See related story on p. 14.

Brunori Elected to CREF Board

Executive VP/GM, Dave Brunori has been elected to the Collision Repair Education Foundation Board of Trustees. The mission of the Collision Repair Education Foundation is to secure and distribute charitable donations to support endeavors that promote, qualify, and properly train employees entering the collision industry. Brunori brings over 29 years of experience in the Vehicle Refinish market and has been with Matrix System Automotive Finishes for 19 years.

Clark Plucinski Named CREF Executive Director

The Collision Repair Education Foundation has announced that Clark Plucinski has been named its executive director, effective July 30, 2012. “We are pleased to have someone of this caliber lead the Collision Repair Education Foundation going forward,” said Chris Northup, chairman of the Board of Trustees. “Clark is a perfect fit for our organization to continue to grow and prosper in providing dollars and products to those who provide our future technicians and leaders.”

Continued from Cover

Not Guilty

five charges. According to her attorney Oscar Michelen, the charges stemmed from a 2009 auto accident in which the vehicle Ms. Pilitz was driving in was rear-ended by another motorist. Authorities previously stated that in 2009, Pilitz was driving a 2007 PT Cruiser that was owned by her body shop when she was rear-ended. While the severity of the accident was in dispute Pilitz submitted a claim to GEICO, the company that insured the other driver, claiming that her car was totaled. GEICO attempted multiple times to see the car so that they could assess the damage, but were unable to for six weeks. GEICO claimed that when their representative saw the car at Pilitz’s body shop, it had already been dismantled inside the shop. GEICO agreed to pay the full cost of the damages, and asked Pilitz for proof of the vehicle’s value — a bill of sale that would prove her ownership of the car and a list of expenses related to the storage and repair of it. At the time Nassau County Dis-

trict Attorney Kathleen Rice said that Pilitz provided GEICO with a handwritten list of expenses and a “fraudulent bill of sale indicating that she paid Autotech $12,491, including $991 in tax, for the vehicle, and a fraudulent MV-50 (a DMV form used to transfer ownership of any vehicle owned or controlled by a dealer). The DA also claimed that during the D.A.’s investigation, another forged MV-50 was discovered, this one containing the forged signature of Pilitz’s father, who died seven months prior to the date on the form, according to Rice. “Lorraine Pilitz knows the system and thought she could play it to her advantage, but she got caught,” Rice said. “When people defraud insurance companies, it results in higher costs for the rest of us. By investigating and prosecuting insurance fraud cases, we are doing our part in keeping costs down for honest ratepayers.” Ms. Pilitz always maintained her innocence and testified at trial that she was only trying to obtain what she was entitled to under the law. This is not the first legal controversy involving Ms. Pilitz, who calls herself a consumer advocate in the collision industry.

Pilitz sued the villages of Malverne and Freeport in Nassau County on the grounds that they discriminated against her with respect to the operation of her towing and collision business based on her gender-specifically, that the defendants unfairly denied her proper opportunities to tow accident-damaged or otherwise disabled vehicles pursuant to a rotation list of officially-approved towing companies. The settlement eventually approved by the court awarded plaintiffs $43,526.75 in damages, in addition to non-monetary relief designed to ensure that plaintiff and her businesses would not be denied towing opportunities by the defendants. A messy compensation dispute then ensued between the towing companies and their attorneys in which the entire settlement was court ordered to be paid to the attorneys. Complaints have been filed by customers regarding lengthy storage times, associated fees and refusal to return vehicles. According to Fox 5 News, the DMV said it has levied about $7,000 in fines and $2,000 in restitution against the company. Pilitz told the TV news interviewer that she has never overcharged any customers.

Adelmann Elected to CAPA Board

CAPA has elected Tim Adelmann, executive vice president of business development at ABRA, Inc., to its board of directors. Adelmann was elected to the collision repairer position vacated by Mike West, who recently retired and closed his repair shop in Tukwila, WA. “Tim Adelmann is a long-standing and respected leader in the collision repair industry, and we’re excited to have him join CAPA’s efforts to insure that the market has truly high quality alternative parts,” said Jack Gillis, CAPA’s executive director.

AkzoNobel’s Wanda Brand’s 2nd “Blue Suede Cruise” Event

AkzoNobel’s Wanda brand was the title sponsor of one of the largest Midwest street rod events of the year. “Blue Suede Cruise” took place July 20–22, 2012, at Summit Motorsports Park in Norwalk, OH. Thousands of car enthusiasts gathered at the 2012 Wanda Blue Suede Cruise event to view beautifully painted Hot Rods, Customs, Classics, Muscle Cars and Trick Trucks that were on display, along with concept and show cars painted in custom Wanda colors and finishes.

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Continued from Cover

PartsTrader Pushback

surance companies intervening and/or controlling the process. Avery said misinformation about the program is widespread, and much of the concern is based on speculation and rumors from individuals who have not tried the product. “We only have 158 stores on the pilot that are actually using the program,” Avery said. “So there’s a lot of people out there that are starving for information. That information comes from a variety of sources. It comes from your friends, it comes from associations, it comes from me, perhaps in the press, and of course press releases and blogs.” “We give [repair centers] $3 billion to purchase parts annually,” Avery said. “We handle 35,000 claims per day. We are a mutual company, which is owned by the policyholders. We have a moral and legal obligation to make sure that money is spent in a prudent manner. We are not interested in short-term gain for our customers. We are interested long term for our customers.” Avery said that State Farm did not expect a dramatic decrease in cost of repair or dramatic changes in cycle time, “but it probably will happen.” He said that State Farm is not a company that routinely asks repairers for discounts on repairs. “We did not expect open arms,” Avery said. “We know change causes ripples. We know we are getting into your business. However, in a previous test with OEConnection, we maintained the repair facilities’ parts margin. We know how important that is.” He added that “there is no standard platform for parts, and we think it will benefit the insured.” Avery said that after putting out a request for proposal and selecting PartsTrader, they spent over a year developing the format. “We asked repairers, dealers and suppliers to help us build this tool, and they did. We just concluded our feedback phase last week with repairers and are evaluating that now.” He also stressed what the insurer did not expect: • “We didn’t expect e-mails, calls and faxes with misleading information.” • “We didn’t expect press releases mentioning non-Select Service repairers who we didn’t have contact with.”

• “We didn’t expect to lose 17 facilities in one pilot area who never tried [PartsTrader].” • “We didn’t expect statements from Select Service shops that never used [PartsTrader].” Avery emphasized that State Farm is still in pilot mode, concluded the feedback phase from all the pilot shops during the week of July 9–13 and are now in an evaluation phase. Avery concluded his presentation by saying, “It boils down to trust. Those who repair cars make a decision about who they want to partner with. State Farm is driven by the customer. Those who fight to maintain the status quo will become irrelevant fast. I don’t think we were number one for 90 years by beating up our business partners.” “Good businessmen and women need to speculate,” Avery said at one point. “They need to look forward to determine what the next step is. What’s dangerous is to speculate on faulty information, or misinformation.” PartsTrader CEO Cooper followed Avery with a brief presentation showing how the program works. He said he understood the skepticism of the industry, but wanted to assure repairers that PartsTrader’s interests were in the right place. “We’re 100 percent committed to making this product the best for parts procurement, and making it a win for repairers,” said Cooper. Cooper then ran through a demonstration of the product and commented specifically that: • The suppliers in the system are in there because the repairer invited them to join. • They have integrated with the three information providers (CCC, Mitchell, Audatex). The files they get from them are EMS, but they convert them to BMS. Therefore, they’re not seeing any information that is not directly applicable to parts. “The two functions of PartsTrader are parts sourcing and ordering,” said Cooper. “You can do direct order now if you want, but if you do have time, the expectation is that you’ll get quotes. But it’s completely under the repairer’s control.” About 20 repairers, association leaders and consultants spent the next 90 minutes questioning and criticizing State Farm’s pilot program. None of them spoke in favor of the program. Aaron Schulenburg, executive

22 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

director of the Society of Collision Repair Specialists, was the first person to address Avery and Cooper. He said other parts vendor companies chose to compete by providing a value proposition, and let the customers choose to use their service based on merits and value. He emphasized that the backlash against PartsTrader isn’t about the product so much as it is how it entered the market. “SCRS and our members aren’t opposed to [PartsTrader] for the sake of opposition. We don’t have an issue with electronic parts ordering, [our members] already do that. We believe there are a large number of solutions out there that already incorporate electronic parts ordering. We don’t oppose efficiency and process improvement… we don’t oppose innovation.” “What we do stand in opposition [to is] when insurers mandate solutions that don’t bring solutions to anyone other than themselves and the benefit isn’t derived or understandable by anyone other than the person mandating it,” he said. “For a company who has promoted open platforms in other areas, who’s taken estimates from all three carriers, who’s worked

hard to make sure the repairer had the opportunity to use whatever systems and processes and solutions they wanted, this is a step backwards for [State Farm]. “Companies here choose to compete: here’s our product and here’s what it does,” said Schulenburg. “The real issue here isn’t that PartsTrader has a solution; it’s about how it came to the market. The largest insurer hired [PartsTrader] to come up with a solution for them – that’s the problem. “We won’t refuse [the product] for the sake of refusing. We don’t oppose innovation. We have yet to see the benefit for repairers being forced to use it. When insurers mandate solutions where there is no tangible benefit for anyone but themselves, I think it’s a step back for State Farm. It appears you entered into the market knowing what you wanted to do regardless of repairer feedback. The need doesn’t seem to be there on the repairer side, but it does seem to be there for insurers.” Dave McBroom, president of the Florida Auto Body Collision Alliance and also representing the Florida Automobile Dealer Association, said See PartsTrader Pushback, Page 52

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 23

PartsTrader Announces 5-Year Deal with “One of the Largest U.S. Auto Insurers,” Adds Three Managers

In a press statement released to media in New Zealand, PartsTrader announced that it has entered into a “locked-in five year agreement” with “one of the largest auto insurers in the U.S.” While the release did not name the insurer that it signed the contract with, the New Zealand based PartsTrader has been working with State Farm in the U.S. to test its online parts bidding system for several months now. In the statement, the company said that it has “just completed a four-state pilot of its online trading platform” in the U.S. A New Zealand news source reported PartsTrader winning a fiveyear contract with State Farm to introduce its online parts trading platform to U.S. collision repairers by early next year. The online news source said PartsTrader would add about 45 employees in New Zealand and the U.S. as a result of the deal and called the U.S. contract its “first big overseas break, though its value will depend on the volume of car parts ordered.” PartsTrader US LLC Chief Executive Rob Cooper said, “We have entered the U.S. market with a

locked-in five year agreement. If successful, the business will generate a healthy profit and most of it will flow back to our NZ investors,” Cooper said. PartsTrader said that it “fended off an international field of contenders” to win the contract in the U.S. which is “modeled on the platform [that] has operated in New Zealand since 2004.” The company said that last year in New Zealand alone, vehicle parts valued at more than $70 million were obtained through the PartsTrader platform, which is used by most of the major insurers and some 80 percent of collision repair shops in New Zealand. In late June, PartsTrader also announced it hired three industry leaders to its management team. Dale Sailer, David Merrell and Troy Holm will lead the company’s efforts in implementing the PartsTrader system in the collision repair and collision parts markets. Sailer will serve as the company’s Vice President of Business Development. Merrell joins the company as its National Account Director and Holm is its first Field Relations Manager.

24 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

PartsTrader Forms Industry Advisory Council

PartsTrader LLC announced that it has formed an industry advisory council with the stated purpose of providing the platform’s two primary user groups (repairers and parts suppliers) with the “opportunity to provide timely and critical feedback on the platform in order to maximize the value created by the platform.” “Creating an industry advisory council is both necessary and appropriate” said Rob Cooper, PartsTrader Chief Executive Officer. “While we spoke with many collision repairers and parts suppliers during our first two years of research and initial building of our U.S. product offering, it is only through an ongoing, open engagement with our primary customer groups that we can ensure our product truly meets the needs of those using it.” The PartsTrader Advisory Council will consist of representatives from each user community. The initial group will include four to five repair facility advocates, with both multi-shop operators and single location operators being represented. Likewise, the group will include five to six supplier advocates, with OEM, aftermarket and recycled each being

represented. The inaugural group will include Michael Quinn, Collision Industry Conference (CIC) Chairman (Tucson, AZ); Steve Tomaszewski of Alpine Collision Centre (Grand Rapids, MI); Michael LeVasseur of Keenan Autobody (Clifton Heights, PA); Lou DiLisio of Automotive Industry Consulting (Mt. Kisco, NY); Amber Elenbaas of Pete’s Auto Parts (Jenison, MI), and Christopher Northup of General Distribution Consultants (Glendora, CA). All of these individuals are active in various industry associations and advocacy groups. “We were very careful in choosing who to invite to participate in this initial group,” said Dale Sailer, PartsTrader Vice President of Business Development. “It was critical that we assemble a group of individuals who will not be shy about expressing their opinions and are willing to hold us accountable for our stated commitments to the industry, while also being forward thinking and business savvy. We think we’ve put together a group that will be very demanding of PartsTrader on behalf of their peers, to the ultimate benefit of both user groups.”

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Former Rhode Island Body Shop Owner Wins $3.27 Million Verdict Against Two Insurers by Melanie Anderson

Ten years ago, former Cumberland, RI auto body shop owner David F. Miller was wrongly accused of insurance fraud, and after being handcuffed and arrested in front of customers and his children, and losing his license, business and home in the process. All charges against him were later dropped. In the ensuing six-year legal battle to clear his name, Miller finally found a measure of justice on May 29 when a Superior Court jury in Providence, RI, returned a verdict against two of the country’s largest automobile insurance providers, finding that Metropolitan Property and Casualty Insurance Company (Met Life) and AMICA Mutual Insurance had acted with “malice” and “bad faith.” In finding Met Life and AMICA liable for abuse of legal process, the jury awarded Miller $3.27 million, which includes interest, compensatory damages, emotional distress, legal fees and punitive damages. Miller is now 60 years old and battling a rare form of cancer.

According Miller’s attorney, Michael Kelly of the Law Offices of Michael A. Kelly, post-trial motions

David Miller in front of the body shop that his children now own and operate

are scheduled for the end of July “and then we’ll see whether there is an appeal.” On May 29, the jury concluded that the auto insurers acted with

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Island State Police in 2002. At the time, Miller was charged with obtaining monies under false pretenses and insurance fraud. However, all the charges against Miller were dismissed

by the Office of Attorney General in 2005 when it became clear that AMICA and Met Life had helped instigate the charges, and had withheld documents that would have undermined the case against him. Miller’s suit contended that Metropolitan and AMICA withheld certain information critical in the case from the State Police and the Attorney General. The jury returned a verdict which found that Metropolitan and AMICA had both intentionally withheld vital information during the course of Miller’s criminal prosecution and that the companies were liable for an abuse of process. “The jury found that the insurance companies withheld from the state police and the Attorney General’s Office the fact that cars were not required to be fixed in accordance with their estimate, and number two, that their appraisers were cost-shifting,” said Kelly. “The testimony from the appraisers from both companies was that they would write for newer parts when they knew it wasn’t going to be replaced they wrote for that part to increase the

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overall estimate to compensate for the low labor rates. Labor rates were fixed by the insurance company. Of course, they wouldn’t negotiate, and since they have an anti-trust exemption, they can just fix the rates, and they all had the same rates and they were all artificially low to try to either force customers to go to preferred shops and/or to try to get independent shops to become preferred shops,” Kelly continued. “The jury specifically found that insurance companies didn’t tell the state troopers about the cost-shifting or about the fact that the cars weren’t fixed in accordance to the estimate because body shops weren’t required to. And they didn’t tell that Mr. Miller was sending documents to the insurance companies indicating he wasn’t fixing the cars in accordance to the estimate because the labor rates were too low,” Kelly said. “The jury agreed with us that had the state troopers and the Attorney General’s Office been informed of these facts, the troopers on the stand said they would have handled the case completely differently.” As far back as 20 years ago, Miller had been outspoken about what he considered unfair practices by the

insurance industry. The testimony and evidence presented during the threeweek trial established that Miller had been a leading advocate in the state legislature for fair reimbursement to auto body shops by insurance companies for many years. Evidence in the case proved that Miller’s advocacy led to an extremely adversarial relationship with Met Life and AMICA over several issues, including fixed labor rates paid to auto body shops in Rhode Island by insurance companies. “I think that it is clear here that the insurance companies, Met and AMICA, went after Mr. Miller because he was pushing to change the labor rate in the legislature, and they couldn’t find anything that he was doing wrong, so they went to the state police and made scurrilous allegations that weren’t true to get the state police to do their dirty work,” Kelly said. “Unfortunately, because of the withholding of information, the state police went with their suggestion of a sting, and it is truly a tragedy for Mr. Miller. He lost everything. He lost his business, his license, his house, and everything else he owned, cars, everything. He had to transfer his auto body license to his son. His business went

down approximately 70% immediately after the arrest.” In its decision, the jury found that AMICA and Met life had acted “with such willfulness, wickedness, or recklessness that amounts to criminality, which for the good of society and warning to the defendant, ought to be punished.” In awarding punitive damages, Kelly said it’s always unusual in the state of Rhode Island for a jury assesses punitive damages because the jury has to find conduct that is malicious, wicked and which rose to the level of criminality. “I hope that the jury’s decision will give more individuals and small business owners who have been wronged by corporate behemoths like AMICA or Met Life the courage to keep fighting against their corrupt tactics,” said Miller after the decision. “It may have taken me years to defend my reputation, rebuild my business and prove that I did no wrong, but this verdict vindicates me. The jury’s verdict brings the real wrong-doers in this case—Met Life and AMICA—to justice,” he added. Looking back over the past 10 years at the case that has consumed

his life, Miller said he is relieved it’s finally over. “My life was in limbo. I got cancer, I went broke. I can’t count the ways it affected my life,” he said. “I want to pick up the pieces and get on with my life.” Today, Miller’s Auto Body is run by Miller’s children, Candace and David.

Herkules Offers Sparkle Clean

Herkules Equipment Corporation introduces Sparkle Clean, an aerosol spray cleaner that can quickly spotclean all painting equipment, specifically paint guns. Back by customer requests, Sparkle Clean was originally created in 2002 and now has been reformulated with low VOC content. Effective with either solvent or waterborne paints, Sparkle Clean provides a method to quickly clean stubborn paint off of paint guns and an attached straw allows Sparkle Clean to be sprayed into small paint gun crevices easily.

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 29

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

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Autobody News

GM to Recall 413,418 Cruzes Made in 2011 and 2012 GM says it will recall a total of 413,418 Chevrolet Cruze cars in the U.S. from the 2011 and 2012 model years to fix a problem that could lead to an accumulation of automotive fluids in the engine compartment. It’s the car’s fifth recall in the past two years. The company said fires can break out during engine oil change procedures. Oil spilling or dripping onto hot parts of the engine, exhaust-system or the engine shield could cause the shield to ignite and fire could spread in the engine area. The company knows of 30 fires caused by the problem, but no injuries have been reported, spokesman Alan Adler said. Flames engulfed and destroyed cars in two cases reported to federal safety officials. GM said it will modify engine shields under the vehicles to prevent fluids from being trapped. GM is notifying owners about the repairs, which are free and should take about 30 minutes.

Isuzu Recalls Rodeo Sport, Amigo SUVs for Rust Risk

More than 11,000 Isuzu SUVs are being recalled because parts in the rear suspension can rust and break away from the frame. The recall affects Amigo SUVs from the 1998 to 2001 model years and Rodeo Sport SUVs sold as 2001 and 2002 models, the National Highway Traffic Safety Administration said in documents posted on its website. Isuzu said the rear suspension link brackets can rust and become detached from the frame. The problem can hurt the vehicle’s handling and cause a crash, but it was unclear if there have been any wrecks or injuries. The recall covers SUVs sold or registered in 21 states and Washington, D.C. Those are places where salt is used to clear the roads. Salt can cause metal to rust.

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Honda Recalls 172,200 US Vehicles for Faulty Doors

Honda is recalling 172,200 small SUVs and cars in the U.S. because the doors may not close. The recall affects 166,000 CRV SUVs from the 2012 model year and 6,200 Acura ILX small luxury cars from the 2013 model year. Honda says that if the inside driver or passenger door handles are used at the same time as the power or manual door locks, the inner door latch may not work. This means a door may not latch, or it could latch and open when the locks are used. The company says no crashes injuries have been reported because of the problem. Honda says dealers will inspect the cars and fix them if needed. Owners should get letters from the company starting in mid-August

Audi Recalls 13,000 Q5 Crossovers for Faulty Glass

Volkswagen, the corporate parent of Audi, will recall over 13,000 Q5 crossovers because the front glass panel on its panoramic sunroof may shatter in extremely cold temperatures. In a filing posted to the website of the National Highway Traffic Safety Administration, VW said it was made aware of the problem last winter by dealers who reported that the front glass panel on some Q5s had broken. Subsequent laboratory testing of the sunroof panels at temperatures as low as -40 indicated that the glass on some units might separate from the surrounding frame, potentially causing the glass to shatter. If the glass were to break with the vehicle in motion, the glass could injure passengers and cause a potentially hazardous distraction for the driver, the automaker said. On June 20, VW decided to conduct a recall. Andrew Lipman, an Audi spokesman, wrote in an e-mail that there were no known accidents or injuries attributable to the defect. VW said that beginning in early August, dealers would replace the front glass panel on the affected vehicles.

30 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

August 2012

Ford Recalls 2013 Escapes for Engine Fire Danger, Previously Carpet Potentially Interfering with Braking Ford Motor Co. is telling owners of one version of the brand-new Ford Escape not to drive the SUVs until dealers can fix fuel lines that can crack and spill gasoline, causing engine fires. The company issued the unusual warning on July 19 and said it is recalling 2013 Escapes equipped with 1.6-liter four-cylinder engines. Dealers will pick up the Escapes and drop off a loaner car that customers can use until the repairs are finished. The company is hoping to ship parts and get all the SUVs repaired in the next two weeks. Ford says it has three reports of fires: two at the factory and one while a customer was driving an Escape. No one has been injured. The recall affects 11,500 Escapes in the U.S. and Canada. Only 4,800 have been sold to customers. The rest are on dealer lots and will be fixed before they are sold, spokeswoman

Marcey Zwiebel said. “We are obviously taking very quick action in the interest of our customers’ safety,” she said. Escapes powered by other engines are not affected, nor are other Ford models with 1.6-liter engines, Zwiebel said. This is the second recall of the redesigned Escape, which went on sale in June. On July 14, the company said it would recall more than 10,000 Escapes to fix carpet padding that could interfere with braking. The new version of the SUV is among Ford’s top-selling vehicles. People bought 28,500 Escapes last month, up 28 percent from June 2011. Ford says owners should call dealers to get the problem fixed. If parts aren’t available, dealers will drop off loaner cars for use until the repairs can be made. Once the parts arrive, it will take less than an hour for technicians to replace the fuel lines, Zwiebel said.

Lexus is Latest in Toyota Pedal Entrapment Recall

The long, nagging problem of reports of unintended acceleration and sticky pedals just won’t go away for Toyota Motor Corp. The Japanese automaker expanded its 2009 recall of vehicles for pedal entrapment to include 154,000 model year 2010 RX 350 and RX 450h (hybrid) SUVs from its Lexus luxury line, the first new recall for the issue since early 2011. The automaker told National Highway Traffic Safety Administration that it is still seeking a fix for the Lexus vehicles. “We are aware of 12 reports of accidents and two reports of minor injuries that may have resulted from this condition,” Toyota spokesman Brian Lyons said. This is the third expansion of the recall. Toyota has now recalled more than 7 million vehicles to address the issue since November 2009, when it first recalled 4.5 million vehicles. In total, Toyota recalled more than 10 million vehicles to address trapped pedals and sticky accelerator pedals. NHTSA said it was urging “consumers impacted by the recall to immediately remove the floor mat and

have their vehicles serviced promptly.” The government safety agency said it approached Toyota regarding this most recent condition in May, “after the agency observed an increase in consumer complaints and other reports regarding pedal entrapment in these vehicles. When Toyota confirmed last week it had received a significant volume of complaints on the same issue, NHTSA asked the manufacturer to conduct a recall.” Toyota said, “The remedy plan is under development, but will involve modification or replacement of the accelerator pedal and replacement of any Toyota-designed all-weather floor mat not specified for the vehicle.” The 2009 recall initially covered 2004-10 models because the accelerator pedal can get stuck wide open by an unsecured or incompatible floor mat. That remedy was different than the November 2009 entrapment recall, so if both versions of pedal entrapment are counted, Toyota has recalled 7.8 million vehicles. The government already has imposed fines of nearly $49 million on Toyota for failing to conduct three separate recall campaigns in a timely manner.

Gonzo’s Toolbox

Problem on the IN-Side with Gonzo Weaver

The tow truck came around the corner of my shop with a 2003 Focus strapped down on the bed. It’s Stacey’s daughter’s car. Stacey is the office manager at the body shop just down the street from my shop. Her daughter’s little Ford had called it quits at a stop sign for a trip on the back of a tow truck. Now it was up to me to find out what’s going on. The tow driver brought the keys in to Katie (my daughter and office manager), she had already talked to Stacey and had the work order filled out. Katie asked the tow driver, “Where did you drop it at? Stacey said it won’t start.” “It started great for me,” the tow driver said, “I put it along the side of the building for ya.” I found the car right where he left it and I’ll have to admit, it did start up, but I wouldn’t call it great. I made it into the service bay with it bucking, jerking, and coughing like

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

crazy, along with a terrible rotten egg smell coming from each end of the car. The service light was on so I thought I would start with finding out what trouble codes were stored. P0300, P0301, P0302, P0303, P0304, and P0316 - all misfire codes. It’s a good thing it didn’t have any more cylinders because I’d bet it would have added them onto its list of trouble codes too. Rather than get into looking at the actual data logger section of the IDS, I figured I’ll open the hood and see what’s going on. The car has the 2.0 liter ZETEC engine under the hood. It’s a fairly easy engine to pull the spark plugs on so I thought I would at least take a look at them. The odometer shows 184,000 miles on the little pavement pounder, so I was thinking the worst, that many miles… hey, anything is possible. As I pulled the first sparkplug boot off, a splash of coolant

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came out of the cavity. Well, that’s a little different, didn’t quite expect that. I pulled #2, same thing. Then the next one, again more coolant, and only the very tops of the spark plugs was sticking out. There were no signs of any kind of leaks anywhere on the engine, in fact, the reservoir was full and the engine showed no outward signs of overheating. It just didn’t make any sense how all this coolant could end up in there. I blew all the coolant out, dried all the plug wires off, and re-installed them. After giving the key a turn the little engine came back to life and purred like new. Amazing, simply amazing how well it ran considering how badly it came into the shop. But within 15 minutes or so the engine started to act up again. It coughed and chugged, shucked and stuttered, and then it finally died. Now it won’t restart, what the? What’s going on here? Time to check a little further… I pulled #1 spark plug. It was bone dry, actually “very dry” and “very hot.” Exhaust gasses, I’ll bet. I let the car sit for about another 15 minutes and tried it again. A quick turn of the key and it ran like new just as before, but this time I was ready for it. I had it hooked up to the scanner and checked out the O2 sensor readings. It was just as I suspected. The front O2 readings were a complete mess. There was no pretty oscillating wave going up and down on the screen, more like a jagged old saw blade with half its teeth missing. I watched the scope patterns for several minutes, soon the engine started to cough and die just as it did before. I checked the compression this time. Well over 200 PSI, yikes! Looks like all those misfires added up to a lot of raw gas going into the converter. With all the plugs firing now the converter was only getting even more cooked than before. I filled Katie in on everything I had found. She can handle it from here. I was expecting Katie to come out and tell me to order a converter, or send it to the exhaust shop, or drop what I’m doing because it was going to be more than she wanted to spend

on it… something like that, but that didn’t happen. Somehow the word “IN” had more meaning to it than originally intended. Before I knew it a call came from Stacey, she was going to have a new engine installed. Huh? I didn’t know I was putting a motor in. think I missed something here. So how in the world did a clogged converter turn into a new engine? It was the very first thing Katie had told Stacey. Katie said to her, “He found coolant in the spark plug area.” Even though she mentioned that I blew off all the coolant that was on the sparkplugs, somehow it got turned into a leaking head gasket. (I think the guys at the body shop were helping out with the diagnostics.) It took the better part of the afternoon to get the whole thing straightened out. Katie asked Stacey how the coolant ended up in the spark plug area. It was from a coolant hose that had split about two weeks earlier. Stacey’s daughter had someone change the hose for her, but they never thought about looking for any coolant getting trapped on top of the engine. My guess is it probably took a day or so before it ever started to miss. About then the service light would have come on and the real trouble would have started to build. I’ll bet she drove around with it misfiring for a week or so before she told her mom how bad it was. Katie explained the mix-up to me and how everyone had the wrong idea about the engine’s condition. I can’t blame anyone for all of this. In most cases, when someone hears there is coolant “in” the engine they assume it’s a bad deal and most likely in the combustion chamber causing major problems. Well, in this case, it was only “ON” the engine and not “IN” the engine. A new converter installed and everything is back “IN” great shape again. I’ve got to make a point of explaining things a little better next time. My bad, I made the assumption that everyone knew what I meant See The IN-Side, Page 49

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 31

Industry Insight

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

Non-OEM Parts Industry Meets on Potential Patent Law Change with John Yoswick

Non-OEM versions of many more vehicle parts could be manufactured and available much sooner after a new vehicle model is introduced if backers of proposed changes to federal patent laws are successful. An update on the legislation being pushed by the Quality Parts Coalition (QPC) was among the topics at the recent Automotive Body Parts Association (ABPA) convention, held in Vancouver, British Columbia. Eileen Sottile of the QPC urged the aftermarket part manufactures and distributors attending the conference to contact Congress to support the coalition’s legislation (HR 3889), which would reduce the time automakers can use design patents to prevent other companies from producing replacement crash parts. Sottile said the bill would reduce the patent protection from 14 years to just 2.5 years, and the 2.5-year clock would start ticking when the automaker introduces the car, even if that vehicle introduction is in another country months before it is introduced in the United States. Sottile said the QPC wanted to eliminate all design patent protection on the parts, as called for in earlier bills it introduced in Congress, but ‘settled for [requesting] a 2.5-year moratorium because Rep. Darrell Issa (R.-Calif.), who is sponsoring the bill in the U.S. House, “felt very strongly that we had to find a balance between protecting intellectual property and allowing competition.” She said a sponsor is being sought to introduce a similar bill in the Senate. Although one has not yet been announced, the QPC has recently announced that three more members of Congress have signed on as cosponsors of the House bill. Reps. Bill Cassidy (R-La.), Walter Jones (RN.C.) and Dennis Ross (R-Fla.) are now supporting the bill At the ABPA event, Sottile outlined how the QPC’s monthly lobbying and public relations budget of about $70,000 is being funded. LKQ Corporation has donated $3.7 million, she said. The ABPA has contributed $1.5 million, mostly through an optional $50 fee that some ABPA mem-

bers voluntarily contribute for each shipping container of non-OEM parts they ship or receive. Other major contributors include Nationwide and State Farm ($115,000 each), the Automotive Aftermarket Industry Association ($99,000), Allstate ($92,000) and AutoZone ($60,000).

Certification program update Also speaking at the ABPA event, Bob Frayer of NSF International, said his organization has certified about 1,800 non-OEM parts, and is adding about 100 parts a month to that list. Launched in 2010 with the backing of the ABPA, the NSF parts certification program is in part a response to unhappiness within the nonBob Frayer OEM parts industry with the time and expense involved with having parts certified through the 25-year-old Certified Automotive Parts Association (CAPA) program. Frayer acknowledged that most of the NSF-certified parts are bumper-related parts, the first category for which NSF offered certification, but he said NSF is now certifying non-OEM plastic, sheet metal and lighting parts as well. He said EMC Insurance, Farmers, Grange and USAA are among the insurers calling for the use of NSF-certified parts. “We’re continually talking to insurance companies, and hopefully as the program grows and we have more part in the program, you’ll see more insurers writing NSF parts,” Frayer said. Unlike the CAPA certification program, NSF does not require that its labs conduct the actual testing of the parts; NSF merely audits that the parts manufacturer has had testing done by a qualified facility. But Frayer said NSF subsequently pulls 25 to 30 individual parts out of the distribution stream each month for testing at NSF. “We expect by the end of this year to have over 250 parts that we’ve ac-

32 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

tually tested at NSF,” Frayer said. “If we do see problems with parts, those testing numbers will increase. We’ll be testing more parts if we see any indication that there’s something less than what was (initially submitted and)certified and being supplied to the market.” Frayer was asked at the ABPA event how it develops the specifications that determine whether a part earns certification. “The basis for the certification is always the OE (original equipment) service part,” Frayer said. “The OE service part is the standard with which we use to measure the aftermarket part.” Frayer said a committee, which includes parts manufacturers, determines acceptable tolerances for deviations from the OEM service part. “Because we can measure the OE service part and find, for example, it has a yield strength of ‘x’ or an ten-

sile strength of ‘y,’” Frayer said. “The question is: What kind of tolerance would seem reasonable to put around those numbers. So the (non-OEM) manufacturers help provide the initial guidance with that. But I can tell you what happens is as we go forward, we start testing parts. We start seeing how much variation we see in the OE parts. And that gives us a pretty Eileen Sottile good indication of whether the tolerances that we initially applied (for non-OEM part certification) are appropriate or not. I can tell you without exception the tolerances that our manufacturers have given us and worked with us to develop up front are as tight or tighter than what we’re seeing in the OE service parts.” See Patent Law Change, Page 47

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Shop Showcase

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

Collision Repair is an Art Form at Uptown Body & Fender with Ed Attanasio

When people see the facility at Uptown Body & Fender in Oakland, CA, for the very first time, they’re usually pleased, confused and definitely intrigued simultaneously. “This is a body shop?” they ask. “It looks like an

Co-Owners Lisandro Allendre (left) and Giovanna Tanzillo have owned and operated Uptown Body & Fender for two decades

as 12-15 per month, in some cases. Co-Owners Lisandro Allendre and Giovanna Tanzillo started Uptown Body & Fender to create a place where its customers could come and “forget why they are here,” according to Tanzillo. Both owners are servicefocused and well aware of the fact that the customer experience is just as vital as the repair, Allendre explained, but their connection to the community is just as important. “We’re very concerned about doing the highest quality of repairs we can, but in the end, we also value our role in this neighborhood,” Tanzillo said. “Over the years, we’ve been able to help so many people by loaning our facility to non-profits and by encouraging local artists to display their works here. As a result, we’ve become a part of the creative scene here in Oakland. We believe in doing more than repairing cars, because we want to be more than just a body shop and valuable to the community.” The Uptown district is a formerly depressed industrial area in Oakland that has recently undergone a lot of changes and today is a Mecca for new restaurants, cafes, performance spaces and art galleries. Right smack in the middle of it all, Uptown Body & Fender has become an integral part of this burgeoning scene, Tanzillo explained.

art gallery or a really nice coffee house!” they say. Some have called Uptown Body & Fender the “antibody shop” and one magazine understated it as “out of the ordinary.” All of the above are accurate descriptions of this amazing shop that pipes in classical music, features a chic interior design and has an espresso/tea bar for its customers and visitors. Since it opened its doors in 1992, Uptown Body & Fender has been fixing cars Uptown’s amazing blue and gold “Car-Beast” contains all and providing its facility to of the shop’s offices and has been lauded in several publilocal non-profit and arts cations for its sleek and unique look community organizations for fundraisers, showings, performances “It’s an exciting time for this area, and meetings. If you check Uptown’s because it’s going through changes monthly schedule by signing up for and in a good way. We have a place their email newsletter online at that stores classic cars right next to us www.uptownbody.com, you’ll find and nine art galleries around us. We events such as the First Friday Art love being here, because every day is Murmur, silent auctions, jazz perdifferent and the people we encounter formances and much more—as many are wonderful, vibrant and creative in-

34 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

dividuals and we feed on that type of energy.” The body shop’s sleek and original design was created by Oakland’s Ace Architects, and it’s been praised in publications such as World Architecture News and San Francisco Chronicle

piece of Uptown’s shop and surely a conversation starter for first-time customers coming through the door. Tanzillo started her career in collision as a bookkeeper for an auto body shop in downtown Oakland in 1978. Her late husband at the time was in the insurance business, so he helped her to get a job at a busy shop and find relief from their four teenage children, she said. After learning the business while working there, Tanzillo started Uptown Body & Fender with her business partner Lisandro Allendre 20 years ago. He is a body man with more The interior of the “Car-Beast” looks more like a high-end than 50 years of experience café than a body shop office and together they’re a formagazine. An enclosure that contains midable team. She runs the office, inall of the shop’s offices is called the teracting with customers and making “Car-Beast.” It’s a steel enclosure that them comfortable about the repair looks like a truck that married a tank. process, while he operates as the This amazing structure is the centerSee Uptown Body & Fender, Page 41

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Hey Toby!

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

Matrix Wand is a Game Changer—Part 2 with Toby Chess

This month’s column is Part 2 of the Matrix Wand article that appeared in the July, 2012 issue. See summary of the Matrix Wand’s capabilities at the end of the article referencing photos. If you missed last month’s article see it at www.autobodynews.com.

Figure 1

A customer at Autobody Hawaii brought in his 2009 BMW convertible with the front bumper on the passenger seat. It seems that he caught the bumper on a concrete barrier in the parking lot as he was backing up and pulled it off. While he was waiting for an estimate, I photographed the car. What I found was amazing. I measured from the strut tower to the core

support and from the strut tower to 2 points on the bumper reinforcement. In the distance table of the photo, the left side of the bumper reinforcement was longer that the right side. Now, you could not see any damage to the reinforcement, but it was bent according to the measurements. I asked the customer which part of the bumper got caught on the barrier and he stated it was the driver’s side. The shop ordered both the cover and reinforcement at the same time instead of buying the cover and finding out when it was to be installed that the rebar was also bent. It should be noted that parts come from Honolulu once a week. Think of the cycle time savings plus the extra paper work and phone calls. Dale Matsumoto, owner of Autobody Hawaii, told me that when they compared the new reinforcement to the damaged one, it was very evident that the part had sustained damage to the left end. A 2009 Nissan Xterra had been estimated by an insurance adjuster. Damage was to the right fender, right suspension and front bumper cover.

The adjuster wrote the estimate for an A/M fender and cover (Figure 1). The gap on the fender was 3mm larger with the AM fender than the

Figure 4

original on the left side. I measured both fenders, and in the distance table, the length at the back of the part showed that the A/M fender was in-

deed 3mm shorter. The adjustor wrote no frame time on the vehicle. The vehicle was put on a hoist and raised so that I could measure the bottom of the

frame. When the mechanic finished installing the right side suspension, he tried to align it, but the right side with See Matrix Wand Part 2, Page 40

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YouTube is a Valuable Sales Tool for Body Shops by Ed Attanasio

Many body shop owners who have already embraced social media are reluctant to use YouTube to promote their businesses. They feel likes it’s too expensive to produce videos and many claim they don’t have anything to say to their customers. But, once they try it, body shops are reporting positive results via YouTube, with increased traffic to their websites, blogs and other social media sites. They’re tracking new customers from their YouTube videos and discovering the value in these short, informational clips—ranging in subjects from “How to Spray Waterborne” to “Online Estimates” and all the way to things such as humorous TV commercials and interviews with customers, painters, body men and even front desk people. The simple fact is that most successful YouTube videos aren’t professionally produced and involve just one person talking to a camera. They’re shot with inexpensive equipment, without special effects, high-tech sound or any lighting more than sunshine or the artificial light emanating from the light bulbs in your shop. Shop’s normally use employees and friends in their videos and usually the pay is: 1) Continued employment and/or 2) A free lunch. Here are five main things to consider when producing YouTube videos to promote your business: 1) Know the Market Spend a few minutes going through YouTube to see what other collision repairers, vendors and jobbers are doing on the site. You will find the videos that do the best are generally funny, upbeat and/or offer useful information. Think either comical or instructional or maybe even a combination of both. Find out what videos in your market have attracted the highest number of views, favorable ratings, most subscribers and best comments and try to figure out what they’re doing right. 2) Use Keywords Galore The easiest (and cheapest) way to direct potential customers to your videos on YouTube is by incorporating carefully selected keywords and inserting them in the title, description, and tags of your videos. To find new keywords, use the Google Keyword Tool to devise variations of your keywords for additional tags.

3) Create Your Own Channel and Make Playlists Prior to uploading your videos, setup your own YouTube Channel, including a profile and a graphic look you devise. Always include a link to your web site, blog, Facebook page and Tweeter hash tag. Playlists are a great way to get your videos watched by a lot of people. To assemble one, add your videos to a new playlist and incorporate other peoples’ videos dealing with the same topic. Then, select a catchy name that will help people to find them through a search. By assembling a library of videos, you can attract more people and hopefully keep them engaged longer. 4) Use Multiple Calls to Action If you don’t ask, you won’t get it. Sure, they like your video, but how can you get them to respond? Here are some calls to action that are all available on YouTube and can be used to get your visitors more involved: •Please rate this video. •Follow me on Twitter. •Find me on Facebook. •Subscribe to my videos. •Visit my blog for more great videos. •Embed this on your site. •Please post your comments. •Send this video to your friends. •Check out my channel. 5) Promote Your Videos Uploading videos to YouTube isn’t enough. You need to promote them. These are some ideas: •Ask people you know to share their lists and contacts. •Embed your videos in your blog. •Email your YouTube link to your friends and contacts. •Write an article about your video and post it to article directories and forums. •Post your video on LinkedIn, Facebook, Twitter and other social media forms. So, now you’ve done a few or all of these things and here is the million dollar question—will you get any results and most importantly, will you attract new customers? Well, rest assured, because the final answer is an emphatic yes. I recently sifted through a wide range of YouTube’s body shoprelated videos and was able to find several shops in different parts of the country that have garnered a ton of views and comments. But, have they led to new business and increased revenues?

38 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

“No doubt,” Rich Villaneuva, the marketing manager at Michael J’s Body Shop in San Jose, CA said without hesitation. “Doing things like Facebook and YouTube have taken us to a whole new level. We know we’re one of the only body shops in this valley that’s doing things like YouTube as intently as we are, and that’s why our organic search results put us right at the top of all the search engines’ rankings. And by polling all of our customers, we know that YouTube is working for us.” By hiring an outside company to help them, Michael J’s Body Shop has been able to attract a lot of direct, nonDRP work, Villaneuva explained. “We’ve been working with a company called Reach Local and they’ve been excellent in teaching us and pushing us in the right direction. Lots of shops get a few DRPs and get complacent, but by doing things like YouTube and linking them to our Facebook page, blog, Twitter, etc.—we’re able to get a fair share of direct business. We never want to put all of our eggs in one basket, so we’re always looking for that ideal combination of walk-in cus-

tomers and DRP repairs.” Michael J’s Body Shop has produced four videos and is currently producing more, showing their repair techniques through a series of do-ityourself online tutorials. Villaneuva is pleased to report that making the videos is virtually free, he said. “I do it all myself with a Sony camera and some very simple software to do the editing. I narrate them and don’t let them go over three minutes in length. In today’s society we know that not all of our customers will embrace this form of social media, but we want to attract those who do.” Steve Kendrick Jr., 36, is the owner of Kendrick Paint and Body with three locations in the Atlanta, GA area. He has been doing social media since day one, he said, and doesn’t understand when he hears that most body shops see little or no value in it. “My grandfather started this business in 1952, and I think a lot of shops in this country are still operating with that ‘50s mentality. In the past, if you worked hard and did quality repairs, you’d succeed. But now, with all the See YouTube, Page 41

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 39

Continued from Page 36

Matrix Wand Part 2

all of the new parts still had a negative caster. I found that the right side was back at the lower control arm mount-

ized the supplement. The car was pulled and realigned that Friday and was delivered the following week. The insurance company had to pay for an additional eight days of car rental and all of this could have been

hooked up to the office thru the Internet. Rob began looking at my picture and noticed that I used the fender

Figure 8

the vehicle and determined that the right rail was down by 10mm. The problem was there was no damage to the rail. I proceeded to call Rob Bailey (the matrix guru) about this inaccuracy. The Matrix computer can be

Figure 5

Figure 9

Figure 6

Figure 7

ing brackets by 10mm. I proceeded to measure the under hood and bumper reinforcement. The photo showed that the vehicle was 10 mm short on the right rail. The adjustor was called on a Wednesday, and we sent him the data for additional frame labor and another alignment. He called back and author-

avoided with a Matrix photo. I left the Big Island on a Thursday morning. The next day I went to Island Fender and met with Van Takamoto, the owner of the shop. We photographed a 2008 Toyota Prius, which was in the shop for a fender replacement only. I measured

40 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

Figure 10

holes on the passenger side (fender was already removed), but the top of the bolts on the driverâ&#x20AC;&#x2122;s side. He said that computer was picking up the difference between the depth of the hole and the top of the bolt. He told me to either remove the bolts or install the bolts and take another photo and remeasure. I installed the fender bolts on the passengerâ&#x20AC;&#x2122;s side and rechecked the measurement and this time there was no sag in the right rail. By the way, I measured the bolt head and sure enough it was 10mm high.

Here are some of the types of measurements that can be performed with the Matrix Wand: • Measure width, length and heigth. (Figure 2) • Point-to-point measurements and compare with Mitchell Data Inc. (Figure 3) • Measure under hood, bottom of vehicle to determine damage. (Figure 4) • Measure under hood damage and compare to factory specs. (Figure 5) • Measure door openings and “B” pillar positions. (Figure 6) • Measure engine cradle for damage. (Figure 7) • Measure strut, knuckle, spindle and lower control arm for damage and also determine what parts are bad without guessing. (Figure 8). • Measure if a sub frame has shifted, and this procedure could be added to the estimate at the time of tear down and not when it goes to the alignment shop. (Figure 9 and 10)

The only way that you can appreciate this revolutionary piece of equipment is to see it in operation at your shop. Either call me at 310-995-7909 or email me at tcspeedster@yahoo.com and I will set up a demo for you.

Continued from Page 38

Continued from Page 34

competition and technology out there, it’s a different world. If you’re not into social media, computerized systems that help your business and things like YouTube, you’re already a step behind the competition.” By producing 16 videos, Hendrick Jr. is dominating YouTube, especially in Georgia. “When people search through YouTube for a body shop in Georgia or Atlanta, they’re going to find us first and that’s so important. We hired a person on a part-time basis to handle all of these things, from Facebook to Twitter and creating a YouTube Channel and it’s paid for itself many times over.”

shop’s production manager, overseeing the repair of approximately 200 cars monthly. “Lisandro and I met while working at Downtown Auto Body and that’s where I learned the business,” Tanzillo explained. “I started out writing estimates and pretty soon the customers thought I was one of the owners. When we left to start our own shop, people asked us, ‘Where are you going?’ I told them there’s only one place to go from Downtown and that’s Uptown!” The shop has received a ton of business by donating their beautiful facility to non-profit organizations, but that’s not why they do it, Tanzillo said. “By allowing non-profits, other community groups and the local art community access to our facility, it definitely creates goodwill and a lot of people who would never know about our shop come here for art shows and fundraisers. We don’t even need to advertise anymore, because people find out about us through these events and through our ongoing involvement

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in everything around us.” Karen Sternstein with the Oakland School for the Arts holds an annual fundraiser at Uptown Body & Fender. Without the shop’s facility, her organization’s event might not take place every year, she said. “Giovanna dropped out from heaven to help us. They saved us at least $1,500, which is huge for a non-profit operating on a small budget. I’ve also been to other events held at Uptown Body & Fender, and each time it’s a professionally run operation. These people are special, because they’re not just all about the money. It’s refreshing to know that folks like Giovanna and Lisandro are here in Oakland to give, instead of just taking—like so many companies do.”

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Continued from Cover

PartsTrader Defends

comments about PartsTrader during the CIC meeting in San Antonio, Texas, he acknowledged State Farm did not yet have an answer for Caspersen as the insurer is still evaluating feedback recently obtained from the 158 shops in the pilot program. “I don’t know the best way to answer that yet because I don’t believe we have all (the shop feedback),” Avery said. “And we are implementing changes in the pilot that now puts me in a position of needing to go back and ask, ‘Now after that change, what are your results?’ So it’s sort of a fluid process. I’m not sure how to answer your question yet, although we will respond when I have an answer. But at this point I don’t have much.” Avery and PartsTrader CEO Rob Cooper each spent about 15 minutes at CIC explaining the reasoning behind the program and offering a demonstration of how it works. Avery said his company was surprised that 17 Select Service shops in the Birmingham, AL., market dropped the program without trying PartsTrader, a decision he felt

could be have been based on some of the inaccurate or misleading information he’s seen in press releases and blogs. Cooper reiterated that shops control which vendors have an opportunity to offer price quotes, and that shops can even use the system to order parts directly, bypassing the quote process. He said now that vendors in some of the test markets are becoming familiar with the system, the minimum bid time will be reduced from one hour to 30 minutes. He said that—along with improvements in integration with the estimating and management systems—will improve the efficiency of using the PartsTrader system.

George Avery to chair CIC George Avery was named as the next chairman of the conference. He becomes the 16th person to chair the quarterly gatherings of shops, insurers, automakers and vendors, since its inception in 1984. His first meeting as chairman will be next January 23–25 in Palm Springs, Calif. In explaining the choice of Avery, which is made by those who have previously chaired CIC, Jeff Hendler said he and the other past chairs look for

someone who has the skills, experience and CIC involvement to “direct CIC in the fashion it needs to be directed.” He said such qualifications are more critical than the candidate’s employer as that can (and has, at times) changed during a chairman’s 2-year term. “We’re not choosing companies. We’re choosing people. And I think we’ve chosen a great one,” Hendler, who serves as the CIC administrator but was also its chairman in the late 1980s. Avery acknowledged the timing of the announcement at the same meeting at which he faced strong criticism for his company’s pilot test of PartsTrader made it somewhat of “an awkward day.” But he asked CIC attendees to keep in mind his reputation of being approachable and an active CIC participants. “I know we don’t all agree, but I’ll leave you with this: You can’t shake hands over the phone. And CIC is an opportunity where those with whom we disagree have a chance to shake hands. We have some spirited discourse, of course, which I think is healthy, but it’s something we work through together, and I hope you see

and will support my desire to move CIC forward as a place that everyone can come together and express their opinion and make the industry better.” Avery is not the first insurance company representative to chair CIC. Joe Landolfi holds that distinction, chairing the conference in 1995 and 1996 at which time he was an executive with Kemper Insurance. Roger Wright was working for CARSTAR when he began his term as CIC chairman in 2003, but joined AIG Insurance several months into his term. Avery will succeed Mike Quinn, who also had an employment change during his term, joining Caliber Collision Centers this year after selling the consolidator his chain of Arizonabased shops. Quinn will reside over his final CIC meeting as chairman on October 31 and November 1 in Las Vegas. John Yoswick, is based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.

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Industry Leaders Discuss State Farm’s Pilot Parts Program Three industry leaders recently released official statements or spoke out about State Farm’s PartsTrader pilot program involving an electronic parts ordering application. The pilot is being tested in Tuscon, AZ, Grand Rapids, MI, Charlotte, NC and in Birmingham, AL.

ASA On June 20, the Automotive Service Association (ASA) released a press release regarding volunteer leaders discussing State Farm’s pilot program with affiliated associations. The release stated: “During a conference call held June 12, ASA’s affiliated groups in the Tucson (ASA-Arizona) and Grand Rapids (ASA-Michigan) markets provided comments regarding the direct impact the pilot has had on its members. Other ASA-affiliated associations expressed concerns during the call, asked for clarifications and provided the ASA volunteer collision leadership and staff with recommendations for future actions as ASA continues to professionally advocate on behalf of collision repairers nationwide.”

ASA’s research has included interviews with State Farm, PartsTrader and collision repairers - those who participate in direct repair program agreements (including some who are currently participating in the pilot of this application), and those who don’t participate in DRPs. Pilot program concerns presented by ASA: • Reduction in collision repair facility profits based on: > Reduction in manufacturer suggested retail price (MSRP) for parts > Increased administrative costs > Increased cycle time delays • Increased administrative time based on: > Suppliers on pilot report increased administrative time > Repairers on pilot report increased administrative time > Increased “re-keying” of estimates based on lack of system integration • Overall concern of the influence insurance agreements have on collision repair processes • Electronic application will have a negative impact on local repairer-sup-

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plier relationships • The “Price-Perfect” price listing of recycled parts continues to complicate the parts selection process and hinder the efficiency of the repair • Potential expansion of the “parts search” market beyond the local repairer-recommended suppliers • Potential expansion of this type of application being applied to other hard products necessary for a proper collision repair • Cost of the application to the supplier will be passed on to the repairer and the consume • Shops in pilot areas expressed a lack of training and understanding of the application • Pilot shops also found a lack of responsiveness from State Farm and PartsTrader to questions from repairers and suppliers participating in the pilot • Lack of information regarding how this will benefit the consumer • Concern of the overall legality of the program

CARSTAR Dan Young, senior vice president of insurance for CARSTAR Auto Body Repair Experts, said it’s too early to quantify how the PartsTrader online parts bidding and ordering software will impact shops, according to media reports. CARSTAR has stores in two of the test markets. “We are in contact with them daily to monitor what’s going on with the new process, and we definitely understand the concerns. Those shop owners are telling us there are some pieces of the new process that are hurting certain efficiencies inside the shop, which need to be addressed. These same shops tell us State Farm and PartsTrader have been in the shops surveying the issues and working on resolutions. There is also an obvious concern out there right now about what this new parts supply process will do to the parts profits in the shop. We understand this concern and are watching it closely. But our shops are saying that it’s too early to tell what the exact impact on profitability will be,” said Young. “We’re talking about a process that has only been in place since April. Through the first half of May, shops in the test markets were still figuring out how to use the tool; there is a learning curve here. We’re now in a period of

trying to determine how and whether the program is impacting profits and efficiencies—and by how much. I just don’t think we know enough yet. We need to let the pilot process play out a bit longer. I think things might look much different down the road than it looks today,” Young said. “From talking to our shop owners in the test markets, State Farm and PartsTrader are very involved in trying to identify issues that are causing process delays for our shops. It’s my understanding representatives from both State Farm and PartsTrader have been in every participating store we have in the test markets figuring out what can be done to resolve the issues. They’re interviewing each storeowner, and conducting 25-question surveys to identify what’s working and what issues need attention. Both companies do appear to be very engaged in trying to address whatever issues are presented,” Young added.

SCRS The Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg responded to a open letter to the automotive services industry issued on June 18 by PartsTrader CEO Rob Cooper. (The PartsTrader letter can be viewed at autobodynews.com by searching “partstrader.”) In his “So Noted” column in the SCRS newsletter released in early July, Schulenburg commented: “The (PartsTrader) letter’s intent was to counter negative industry reactions to PartsTrader, as well as to assure collision repairers that they “are in control of the process” and PartsTrader “will not enter into any insurer relationship that prevents repairers from making their own decision about choosing a supplier.” The letter assured that they “are committed to repairers being in control.” According to the SCRS press release, “This proclamation is interesting given that the one most critical element to repairer control has already been seemingly compromised; the lack of choice over whether or not the repair facility will use PartsTrader to procure their parts on State Farm claims. “Is it not contradictory to PartsTrader’s stated rule to allow State Farm to exclusively mandate the use See Industry Leaders, Page 45

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 43

Rhode Island Gov. Chafee Vetoes Auto Body Bill for Insurers Rhode Island Governor Lincoln Chafee vetoed a bill that would have allowed auto body shops to sue insurers, citing the bill would have sent car insurance rates soaring in Rhode Island. The legislation called for setting standards for declaring a vehicle a total loss if the cost to repair the vehicle is less than 75 percent of the value of the vehicle; require an insurer to negotiate payment for auto body repairs in good faith; and allow private rights of action by auto body shops against insurance companies. Gov. Lincoln Chafee said in a news release, “No other state in the nation allows auto body shops to set repair prices outside of the marketplace, determine whether a vehicle should be totaled without the input of the consumer and the insurance company, or to be an outside third party now authorized to effect an existing insurance policy between a consumer and an insurance company.” He continued, “I believe this bill would hurt Rhode Island consumers by raising their auto insurance rates and impairing their existing contract agree-

ments with their insurance companies.” Earlier in June, the proposal to allow auto body shops to sue insurance companies that do not pay them what they believe they should be compensated for repairs generated a fiery, hour-long debate on the floor of the state House of Representatives. The bill ultimately passed the 75-member chamber on a vote of 38 in favor and 20 against. However, Governor Chafee vetoed the controversial bill approved by lawmakers that would have given auto body shops the right to sue auto insurance companies if negotiations do not lead to an “agreed price.” Supporters, including Rep. Stephen Ucci, a Johnston Democrat and the bill’s sponsor, repeated the mantra that the bill would “level the playing field” between local auto body shops and auto insurance companies and ultimately be good for Rhode Island drivers. But other lawmakers voiced concern that the proposal would only lead to higher auto insurance rates in Rhode Island, which already has among the highest rates in the nation. Rep. Robert Watson, R-East

Greenwich, called the proposal “special interest legislation” put together “on the fly.” “This is why we deserve criticism,” he said. “Nonsense like this plays out in the final days of the session. This is wrong.” A statement released by the Auto Body Association of Rhode Island (ABARI) said, “Though [Chafee’s] veto message states that he is concerned about the consumer, he clearly put the consumer and small business’s interests aside and bowed to the pressure of the real ‘special interest group’ —the billion-dollar insurance companies. Over 200 auto body repair shops have gone out of business in the State of Rhode Island in just the last decade. We’re in a crisis that hurts the consumer. This veto is just another example of why Rhode Island is considered one of the least friendly to small businesses in the nation. “ABARI has fought to pass laws that protect consumers and small business from insurers who care only about their bottom line. H-7782A was no different. Insurers always claim that rates will go up, regardless of the

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legislation’s substance, because it’s the last scare tactic they have left. The truth is collision premiums have been declining in Rhode Island, the opposite of their certain predictions. “As we have for almost two decades, ABARI will be back next year to continue to expose the lies, reveal the truth, and fight to ensure that consumers receive a safe and quality repair, and that small businesses can thrive in the State of Rhode Island. We will continue to educate the consumer, the legislature and the Governor’s office on the unfair and deceptive practices used by insurers on a daily basis —practices that benefit only the insurers.” The Property Casualty Insurers Association of America (PCIAA) applauded the Governor’s decision, calling it a victory for consumers. “Governor Chafee’s veto of H7782A represents the triumph of everyday Rhode Island consumers over well-connected political insiders,” the PCIAA stated. “The governor carefully considered the legislation and rejected this latest attempt by a group of body shops to further increase

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their revenues at the expense of Rhode Island drivers. We applaud the governor for taking this important stand against special interest legislation and the politics-as-usual approach which fails to protect the people’s interests. “Residents in Rhode Island already pay among the highest auto repair bills in the nation, and H-7782A could have driven costs even higher and possibly jeopardized driver safety by forcing vehicles that should have been totaled to be repaired. The bill would have ultimately provided a body shop a blank check to charge whatever it wanted and deprived insurers of the ability to negotiate a fair price by threat of litigation. No other state in America requires such a one-sided arrangement, and in the end, the consumers would be the ones to lose out. “This legislation was a dramatic overreach by the body shops. We hope this veto sends a strong message that enough is enough. It is time to put an end to the body shops’ legislative agenda which has caused the average repair cost to accelerate at a rate more than twice the national average.” The American Insurance Association praised Gov. Chafee for vetoing “reckless auto body legislation.”

Gary Henning, Northeast region vice president for the American Insurance Association (AIA), said: “AIA commends Gov. Chafee for vetoing H. 7782A, legislation which represented poor public policy that would have led to an explosion of litigation. No other state in the nation allows auto body shops to set non-negotiable rates and attempt to force them on third party payers under threat of litigation. Rhode Island is already one of the most expensive states in the nation for auto body repair and this bill would have made the problem even worse. “Governor Chafee stood with consumers by taking a stand against this bill. The governor’s veto protects policyholders from increased repair costs and increased litigation.”

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Industry Leaders

of their program, eliminating the repairer choice in how their internal parts location and ordering process work? If willing to bend on their repairer-choice rule for State Farm, are there other rules which were outlined by PartsTrader that they may be willing to bend for carriers in the future? “There is some degree of irony that PartsTrader believes all suppliers should have a “fair” chance to win a repairer’s business, while their company has entered the market in what some feel is an “unfair” or uncompetitive manner – through a mandate from the largest national property & casualty insurance carrier. Is this company not willing to compete with the traditional ordering process they claim to have a better solution for? Certainly, nothing is stopping PartsTrader or State Farm from coming to the industry with a value proposition for their parts procurement and ordering process, and demonstrating to suppliers and repair facilities why this process is more

beneficial than the traditional ordering process. This would allow suppliers and repair facilities to make their decision to participate based on the merits of the program, rather than being based on an ultimatum to use PartsTrader or no longer be welcomed to participate in their Select Service. “Feedback from both repair facilities and parts suppliers have indicated that the program has directly caused greater levels of inefficiency and increased concern over profitability. End users have indicated an opinion that the product was far from ready to go to market, failing to have adequate support to fix the myriad of challenges the program created for both buyers and sellers of collision replacement parts. In the meantime, both State Farm and PartsTrader have urged repairers not to make decisions without “fully understanding” or personally trying the system. But those who have used PartsTrader have shared comments that are very critical of the process. To read the entire SCRS response to the PartsTrader open letter, go to www.autobodynews.com, search in Industry News.

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On Creative Marketing

Capturing the Tough Ones with Thomas Franklin

I was recently talking with an estimator at a relatively busy shop in my area. I asked what his biggest problem was these days. He said it was the people who came in for an estimate but wouldn’t leave the car. He said no matter how much he promised, he couldn’t close the deal on many of the tough customers. It occurred to me that he might be putting too much faith in the power of words. Some people simply have a distrust of sales pitches, phony promises and fancy words. Maybe they responded to one too many TV commercial promises or a phone solicitor or one of the many over-hyped ads for products that never live up to their promises. So what do you do when you run into one of these supreme word skeptics? I suddenly remembered a Caribbean black fellow who owned a small shop in an affluent white neighborhood and had an almost perfect

record for closing jobs and getting the keys. I asked him how he does it. He told me that because of his color, he had to work harder to win a prospective customer’s trust. He knew they might doubt what he said, so he used several tactics to hold onto a prospective job. He would often bring his top body man out to give a professional opinion on what needed to be done. He might also take a prospect into the shop and show him or her some jobs in progress and a couple of recently competed jobs. If that didn’t close the deal, he had one final strategy. He would have his body man come out and actually buff out a scratch or two or make some minor repair right on the spot. Then he’d have the customer touch a buffed out area to feel how smooth the surface had become. He said when a customer would see how serious he was about going the extra mile, they would almost always let his shop do the job.

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

It occurred to me that another reason for his show-and-tell success with some of these people is the fact that nationally, about 28 million people have some sort of hearing loss. And there are probably another million or so who have English as a second language. And then there is the possibility that the prospective customer’s mind is distracted. Perhaps he or she is still emotionally tied up in recalling the accident. It’s possible that many estimators mistakenly think that their prospective customers have heard what they were saying. And even if they did hear it, how many might not have understood what they heard? My Caribbean friend’s show and tell – and possibly touch – approach to selling the job could have somehow bypassed these comprehension limitations and reached the prospective customer on a different level. There are several major ways people receive and process informa-

tion: the usual auditory method of listening, plus visual-verbal (reading words), visual non-verbal (simply seeing an object), and tactile (also called kinesthetic). Kinesthetic people mostly respond to real-life situations or objects they are able to touch and feel. These people perceive best by experiencing or doing things. It would seem some other industries make use of this information. Miller & Associates (Dallas, Texas) excels as a premier provider of sales, customer service, and support to the foodservice equipment industry. They say they view themselves as the customer’s best conduit for information. They say they take a tactile approach to sales by encouraging touching every channel in which equipment is supplied. Through this kind of education and after-the-sale service they say they thrive with end-users like schools, chains, and institutions.

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A visual and tactile approach has also been used to improve driving skills. Usually we steer a car using mainly visual information to perceive the road’s shape and bends. One professional driving school went beyond this usual approach and developed a driving simulator with visual and/or tactile information guides. These were used to virtually present the drivers’ lateral position and to enhance their steering performance. The tactile guide improved driving accuracy more than the visual guide, proving that the tactile information of the virtual position of a car is the more useful for assisting and improving a driver’s performance. The estimator doesn’t have to get into these technical details on why a prospective customer will respond better to a visual and/or tactile presentation than to a predominantly talking approach. Just knowing it is possible to have this alternative to the usual estimate delivery should improve closing results. And there should be some satisfaction in knowing the prospect won’t be turned off by distrust of what he or she thinks may just be exaggerated sales pitches and phony promises.

Continued from Page 32

Patent Law Change

OEM replacement part is the standard Frayer said NSF uses OEM replacement parts – rather than those originally sold on the vehicle – as the standard because it has found examples of variation between OEM replacement parts and the original parts. He cited an example of bumper absorbers for a Ford Mustang. “What we found was there was a huge difference between the OE part and the OE service part,” Frayer said. “It’s obviously a change made by the manufacturer. The vehicle was introduced with one set of requirements for the absorber, and then they changed to a different set (of requirements). Our thinking is that, generally speaking, the OE service part represents what the manufacturer’s latest thinking is as to what is needed for that vehicle.” Frayer said NSF has not received a single verified complaint about a certified part. “We’ve had three complaints to date that I’ve been made aware of,” Frayer said. “One complaint was due to some shipping damage. One was a part RX-8 2012

that was actually shipped to the body shop as a certified part but as it turned out it was not a certified part. And the third one was a part that reportedly did not fit the application. We were not able to get the part back. But through some pictures that we received, we were able to verify the lot number of the part. We acquired another part from that same lot, put it on a vehicle and verified that it did fit. So we were not able to verify that there was a problem with that part.” Frayer said anyone with concerns about a NSF-certified part can notify him directly through NSF’s website (www.nsf.org), or “there should be some indication on the part or packaging itself who you would contact relative to a complaint.” Frayer said the problem of shops receiving a non-certified part when a certified part was ordered is something NSF’s parts distributor certification program is designed to address. Separate from the parts certification program, the distributor certification was launched last year. Three companies – LKQ Corporation, PartsChannel, and most recently Michigan-based Micro Platers and Paint – have earned the NSF distributor certification, and Frayer said about a half-dozen other

distributors are in “various stages of discussion with NSF regarding getting certified.” A certified distributor can sell any parts, whether those parts are certified (by NSF or CAPA) or not. A distributor can be certified, however, only if it (among other requirements) picks up return parts from customers within two business days (for customers serviced daily); has a system of tracking returned parts confirmed to be defective; evaluates on a case-by-case basis reimbursement of a shop for labor associated with the sale of a defective part; and has a tracking and recall procedure to support a manufacturer’s recall of safety-related parts (hoods, lights, radiator supports and bumper parts). One of the keys to the distributor certification program, Frayer said, is ensuring that distributors have a system in place to ensure that a non-certified part is not substituted when a certified part is ordered.

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Matrix System Releases Low VOC Quick Cure Clear

Matrix System Automotive Finishes has released MSV-25 Low VOC Quick Cure Clearcoat to be used with the MPB-LV Premium Low VOC Basecoat system. This fast cure, highly productive clearcoat was designed for use on 1-2 panel jobs for quick delivery. MSV25 is ideal for collision centers looking to reduce cycle times while at the same time offering a superior finish. According to Matrix System Application Manager, Brian Lynch, “MSV-25 provides many benefits such as high production which results in the painter spending less effort and time on a job and fast cure and easy application in any temperature which results in consistent performance and a beautiful finish.” Matrix System’s MSV-25 is the low VOC solution for shops and collision centers who want higher productivity, quick application and a superior end result.

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Advanced Car Technology Reduces Frequency of Crashes Says Study A new study shows advanced auto technologies such as forward-collision avoidance systems — especially those that brake automatically — result in sharp drops in car crashes. The Insurance Institute for Highway Safety said forward-collision systems and adaptive headlights, which shift direction as the driver steers, has the biggest impact in reducing accidents. The study by the industryfunded group also found that lane-departure warning systems appear to hurt, rather than help — though it’s not clear why. Other systems, such as blind-spot detection and park assist, aren’t showing clear impacts on crash patterns yet. “As more automakers offer advanced technologies on their vehicles, insurance data provide an early glimpse of how these features perform in the real world,” says Matt Moore, vice president of the Highway Loss Data Institute, an affiliate of IIHS. IIHS examined forward-collision systems offered on Honda Motor Co.’s Acura vehicles, Daimler AG’s Mercedes-Benz and Volvo vehicles. Property damage claims for Acura and Mercedes models were 14 percent lower when vehicles were

equipped with forward-collision warning with automatic braking than when they weren’t. Collision claims for vehicles with adaptive headlights fell as much as 10 percent. “These lights appear to help in more situations than we anticipated, though we don’t know why,” Moore said. Mercedes and Volvo also offer versions of forward-collision warning systems that don’t include automatic braking. These appeared to lower crash rates, too, but not to the same extent as versions that do include it. But a review of claims in General Motors’ Buicks and Mercedes vehicles for claims from lane-departure systems showed claims from vehicles with the systems actually increased, although in numbers so small as to be statistically insignificant. IIHS said drivers may be getting false alarms because of poor lane markings, which rely on cameras to track lanes. It takes a long time for advanced safety features — which typically begin on luxury cars — to reach all cars on the road. IIHS estimates it takes at least 30 years for a promising safety feature to spread to 95 percent of vehicles on the road.

The National Highway Traffic Safety Administration has been studying forward-collision warning systems since 2010. NHTSA said this week it is researching braking technologies that rely on “forward-looking sensors” to supplement driver braking or to engage automatic braking in response to an impending crash. The agency believes these technologies show promise for enhancing vehicle safety. NHTSA has mandated significant safety equipment including front, side and side curtain airbags, safety belts, electronic stability control, and tirepressure monitoring systems. The government is considering requiring rear-visibility cameras. Not all safety equipment is mandated or has shown safety benefits. Antilock brakes, for example, spread quickly through the U.S. fleet even though they’ve never been required. IIHS notes that despite promising results on test tracks, real-world crash data haven’t shown large benefits. But antilock brakes are essential for electronic stability control systems, which help prevent rollovers and other crashes.

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America’s Top Auto Students Crowned at SkillsUSA Competition Held in Kansas City Hundreds of automotive students gathered in Kansas City, MO for a showdown for gold. Armed with their tool boxes and spray guns, they represented the top collision repair and automotive refinishing students from around the country. SkillsUSA returned to Kansas City on June 23-27, 2012 for its 48th annual National Leadership and Skills Conference, a showcase of career and technical education students. Quality career and technical education was the centerpiece of the conference. More than 15,000 students, teachers, education leaders, and representatives from more than 1,100 national corporations, trade associations, businesses and labor unions participated in the event with 94 hands-on skill and leadership competitions. SkillsUSA organizes this event, and it is considered the single greatest day of industry volunteerism in America every year at an estimated cost of more than $35 million. Each SkillsUSA Championships contestant is a state-level gold medalist. When the dust cleared, four students claimed the gold medals, taking home the country’s top honors in their competitions, along with scholarships, prize money and new tools.

Automotive Refinishing Technology The automotive refinishing technology competition included surface preparation, spray gun operation, paint mixing, matching and applying, solving paint applications problems, determining finish defects, causes and cures, and utilizing safety precautions. The winners were: Spencer Cook (Gold) - High School, Mid-Coast School of Technology, Rockland, ME Derek Meehl (Gold) - Postsecondary, Saint Cloud Technical College, Saint Cloud, MN James Chesser (Silver) - High School, Lewis & Clark Career Center, Saint Charles, MO Aaron Dressler (Silver) - Postsecondary, Penn College of TechWilliamsport, PA Nathan Aguiar (Bronze) - High School, Diman RVTHS, Fall River, MA Jessica Crowley (Bronze) - Postsecondary, College of Western Idaho, Nampa, ID “I plan to initially work on street cars, but would really like to get into custom refinishing,” said Meehl. “I’d like to be like Chip Foose.” Collision Repair Technology In the collision repair competition, stu-

dents were tasked with straightening, welding, repairing a plastic bumper and conducting a structural analysis. There also was a written test on estimating and structural analysis, plus an ASE exam. The winners were: Jason Lucius (Gold) - High School, Vanguard-Sentinel Career & Tech Ctr - Sentinel, Tiffin, OH John Stanton (Gold) – Postsecondary, Kaskaskia College, Centralia, IL Jackson T Winslett (Silver) - High School, Alvin High School, Alvin, TX Michael Annis (Silver) – Postsecondary, Washburn Tech, Topeka, KS James Johnson (Bronze) - High School, Center of Applied Tech North, Severn, MD p Owen Boyle (Bronze) - Postsecondary Penn College of Tech, Williamsport, PA Begun in 1967, the SkillsUSA Championships has grown from 54 competitors in three contests to more than 5,600 competitors in 94 handson skill and leadership contests this year. SkillsUSA adds contests to the SkillsUSA Championships to meet the demands of new and expanding occupations. SkillsUSA affiliated instructional programs represent 130 different occupational areas.

Continued from Page 31

The IN-Side

when I said there was coolant in the spark plug area. (I should have said “On top of the engine”). Katie knew what I meant, but as the phone conversations went on, the word “IN” just kept pushing the coolant deeper and deeper inside this little Ford. Katie is a wonderful gal, I got to hand it to her; she did a great job of explaining things. I’m a lucky guy to be able to work with my daughter in a family business, and even luckier to have her as an asset “IN” the office, especially when she can explain things to a customer and get good old dad “OUT” of a jam.

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 49

Texas’ Collision Repair Schools—No Lone Reason for Success by David M. Brown

The National Automotive Technicians Education Foundation (NATEF) is a Leesburg, Va.-based regulatory body whose sole purpose is to ensure quality auto body training and education. NATEF continuously evaluates courses and subjects being taught in collision repair schools. In Texas, there are 11 NATEF-accredited programs, comprising seven high school and four post-secondary programs that serve students and industry in the Lone Star State, reports Trish Serratore, president of NATEF, Three of the secondary programs are at Trimble Tech, Pasadena and San Benito high schools. All use the ICAR curriculum. The Fort Worth Independent School District has its only Collision Repair Program at Trimble Tech High School, says its instructor, Roger Alfaro, ASE Master Certified in Collision Repair/Refinishing Technology and Estimating. Dr. Alma Charles directs all CTE programs at FWISD. Accredited by NATEF in NonStructural Analysis and Damage Repair (Body Components) Structural Analysis and Damage Repair, Trimble Tech has had a body-repair program since 1956 and participates annually in SkillsUSA, Alfaro says. Students begin in their freshman year, so a program graduate completes 721 hours of instruction including those first two components, 300 and 260 hours respectively, and 161 hours for Refinishing Technology, guest speakers, field trips and potential-job visits. “I actually took the Auto Body class and graduated from Trimble Tech in 1983,” he says. He then attended Tarrant County College, earning an associate degree in Applied Science in Auto Body. After working in a shop for about 6.5 years, he was hired as the Collision Repair instructor in January 1991. A 2011 graduate, Martin Urbina, was an intern at Frank Kent Cadillac in Fort Worth. “I graduated from high school and work to support my family,” he says. “I’m still going strong by also going to college to further my education. I believe those ethics were instilled in me by having majored in Body Shop.” Outside of Houston, Pasadena High School uses the I-CAR training curriculum for a two-year course, articulated with nearby San Jacinto College

South for five courses. In place since the 1960s, the program accepts about 20 juniors annually following intensive vetting, explains Chad Phillips, the program instructor, an ASE Master Collision/Refinishing technician. “A six-week-long safety program is followed by education in automobile construction and instruction on correctly disassembling and reassembling a variety of cars. Next, students learn to weld using ICAR standards

Credit: Texas State Technical College

and train on vehicles provided through donations from AYES, auto manufactures and San Jacinto College. This is followed by dent-repair practice on vehicles and donated panels from Toyota; then students prime and refinish their panels. “It’s a lot to complete in the first year along with the six ICAR modules, but we have to get them ready for potential internships,” Phillips says. Pasadena High School hosts three meetings a year for administrators, instructors and local auto dealerships to get together and evaluate the program and its current needs. Throughout the year, students work on portfolios preparing to interview in April as well as complete 24 hours of job shadowing. At this time, too, dealer/collision shop managers visit the school to interview qualified students for possible internship placement. Once placed, students will typically work a 40-hour week with a mentor during the summer between their junior and senior years. “When we return back to school, the intern, now a senior, goes to school a half of a day and then to work,” he says, noting that Pasadena places 5-7 students in collision internships annually. San Benito High School serves the San Benito community, adjacent to Mexico and separated by the Rio Grande River. In existence since 1978 at San Benito High, the school’s Collision Repair and Refinishing program pre-

50 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

pares students as if they were already at a body shop or at the community college, says Hector M. Rendon, director of Career and Technical Education Programs. One teacher provides the instruction through three different classes for grades 10 through 12. Courses include Principles of Manufacturing (9th); Energy, Power & Transportation Systems (10th); Collision Repair and Refinishing (11th); Advanced Collision Repair and Refinishing (12th); and, for qualified students, a practicum in Transportation, Distribution and Logistics class (12th). On completion of coursework, students can then test in two NA3SA/ASE areas for certification after completing the two-and-a-half year program: Painting and Refinishing and Nonstructural Analysis and Damage Repair. The San Benito program has been NATEF/AYES certified since 2005. “By participating in NATEF, we were able to restructure to define the

necessary tasks needed by our local businesses to assist in providing qualified entry-level employees,” Rendon explains. Similarly, through the AYES program, students can participate in a 400-hour paid internship during the summer of their junior years. When students complete their internships, they may work full-time or continue their education at the respective dealer manufacturer training centers or college. A tool scholarship valued at $3,200 is made available at minimal cost. “The one thing I liked about the job placement is that it is very different from the classroom environment,” says student Roberto Rodriguez. “You are always busy and on your toes. It is about production and profits.” Texas colleges, also using the ICAR curriculum, have equally robust programs. In operation since 1935, Kilgore College is in Kilgore, between Longview and Tyler in east Texas, two miles south of Interstate 20. The Automotive Program is a member of the Training Alliance with I-CAR.

For the two-year degree, students take courses such as Automotive Suspension and Steering Systems in the fall semester and Collision Repair Estimating and Collision Repair Shop Management in the spring. James Burns, an owner of a local used car dealership, attended the program to maximize profit. “With the information I have learned through the program, I can now make the proper repairs, turn a better profit and put a better-looking vehicle on the lot,” he says. Student Ramiro Aguilar began a career: “Starting with no knowledge or experience in the field, through the proLeslie Eaton grinding. Photo credit: Andrea Vasquez, gram I was able to complete San Jacinto College marketing department my co-op time at a local body lum for certificate seekers and the 71- shop that I now work at full time!”. credit two-year curriculum for the Automotive collision repair is Associate of Applied Science Degree. taught at the North and South camThe classes are approximately 6- puses of San Jacinto College in the 7 hours a day, five days a week for the Houston area. The Central campus duration of the specific program. teaches Automotive Mechanical repair. Courses in the certificate program inThe San Jacinto College Autoclude Vehicle Trim and Hardware in motive Collision Repair Technology the first semester and Structural Program began in the mid 70s and was Analysis & Damage Repair, I, II and one of the first programs in the HousIII, in the second. ton area to teach I-CAR classes. The “We are a small but effective operation, allowing direct personal contact with each student,” says Joel Laws, the program director and primary instructor. In the 10-year-old Auto Body Program, he sees 20-25 students annually flowing through the new 40 credit-hour one-year curricu-

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auto collision program has 186 students enrolled and places 75 percent of its graduates in jobs, says David Baisden, who started teaching at San Jacinto College as an adjunct instructor in 1978, and in 1981 became a fulltime instructor. All of the full-time auto collision instructors are I-CAR trained, members of the I-CAR Industry Training Alliance and certified through the National Institute for Automotive Service Excellence. “Being I-CAR Industry Training Alliance members also allows our students to be eligible for I-CAR Gold Points, which can be used for further certification with I-CAR after completion of the auto-collision program,” Baisden says. His associate Jake Stahl, teaches at the South campus, and Glen Kirkwood is the full-time instructor at the North Campus, with many adjunct instructors collegewide. Instructors also train in most major equipment and paint systems and take training courses to keep up with the latest industry standards, he says. Several degree and certificate options are offered: an Associate of Applied Science degree in four semesters, earning 62 college credits; a Certificate of Technology in three semesters, 42 college credits; or an Occupational Certificate completed in as little as one semester. Night and weekend classes are also available. “By incorporating industry professionals in curriculum planning, we ensure that our students have an advantage once they enter the job market after completion of the program,” he says, noting that they participate in activities such as the San Jac Auto Body Club, the Technical Honors Society and SkillsUSA. “It’s always been my dream to be in the auto body industry, and now I’m excited to learn more so I can get a job doing something I love,” says Pedro Chacon, 19, an auto collision student who works at a local tire shop, takes a full load of courses and works at his family’s restaurant on his days off. A former student, Leslie Eaton, 54, is a retired NASA associate engineer and enrolled in Baisden’s class in the early 90s after she discovered a gasket leak in her 1972 Toyota Corolla and wanted to save money on repairs and car maintenance by doing them herself. “I still do maintenance and repairs on my cars, and now when I’m

buying a used car, I can recognize if it’s had any prior damage, which gives me more bargaining room,” she says. In Waco, the Auto Collision and Management program at Texas State Technical College began in August 1969. The program offers four achievements: Refinish Certificate, 41 credit hours; Auto Body Certificate, 40 credit hours; Refinish & Auto body Combination Certificate, 61 credit hours; and an Auto Collision & Management Associate Degree, 70 credit hours. Each certificate requires a year, and the Associates Degree is a two-year program. The instructional staff includes seven instructors, all with Master status from ASE, one lab maintenance technician and one secretary. Facilities comprise three collision labs, two refinish labs and classroom space. In the fall semester 2011, 163 majors were enrolled, says Archie Watley, program chairman. Through the use of industry partnerships with major players, the program has kept equipment and training current. “The fact that our graduates have been prepared on vehicles with state-of-the-art design and electronics greatly assists them in moving smoothly and quickly into the workforce,” he says. One result of this high level of training has been participation and success in SkillsUSA. In the mid 90s, Watley was assigned advisor to the local VICA organization (now SkillsUSA), and three of his students placed first, second and fourth in the state. That year, in June, at the finals in Kansas City, Mo., his first-place winner took first nationally. This year, students Rebekah Shadowens and Brandon Wennin, traveled to Kansas City to compete in SkillsUSA, she in Collision Repair Technology, he in Automotive Refinishing Technology. “While neither placed in the top three areas, their display of skills and competitiveness prepared them mentally and physically for their entrance in this field of study,” Watley says. “Now, we begin searching for new talent.” Note: The writer thanks Joe Thigpen and Ric Menard, AYES state managers for Texas. Employed by the Texas Auto Dealers Association, Thigpen manages the AYES schools in Texas except the AYES schools in the Houston area, managed by Menard, who is employed by the Houston Auto Dealers Association.

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 51

neously. Now I have to wait for an profits. What we get for labor is was at the CIC meeting representing hour and monitor the program. My big peanuts.” Alabama repairers. He said he had PartsTrader Pushback problem is that my parts guy is on that Stating that the new parts pro- continued confusion over the program [PartsTrader] screen six hours a day gram would negatively impact repairdetails even after Avery and Cooper’s bluntly that the program is a failure. off and on. That represents $50,000 a ers’ parts profit, Starbard continued, talk. “I’ve spent extensive time with year out of my pocket to administer to “In like mine, we survive on “I’m still as uninformed and conmatters affecting the industry. Want to Contribute thisa state Southwest Edition? shops and vendors, some involved that program.” parts mark-up. I suggest repairers run fused as when I got here,” said with the pilot program and some not, Hunsaker concluded by saying, this agreement up the flagpole with Mosley. “Is this something that we’re that are trying to make a decision on “It’s sad that this has happened. In our their accountants.” going to have in all states? Have you what to do,” he said. “I’ve spoken to industry, [State Farm] publisher@autobodynews.com was the one inTony Passwater, president and already signed a contract?” utobodynews.com many who have said it is inefficient, surer we could count on. Now, we owner of AEII Consulting, said the Avery responded, “To me, there’s cumbersome, creates additional work, don’t trust State Farm like we did.” program is not needed because the a difference between a test and a pilot. and requires additional personnel at Ron Reichen, a Select Service parts procurement model in the United You test something to see if it will Promote your businessStates withis efficient Promote your business withyou drill a pilot hole before shops and at vendors. Most are losing shop in Beaverton, OR, drew applause and repairers have work; an exclusive article an exclusive article featuring gross profit dollars. Some refuse to when he told Avery, “ I don’t go down featuring trusted relationships with existing you’re going to drill. So a pilot does participate in the bidding process. to State Farm and say I need to evalusuppliers. He also said that although it suggest your products or services. your products or services. that your intent is to continue is aadvertise total disaster. ate your underwriting department be- is only a pilot now, it could evolve to move, but you have to make sure y Used parts bidding To call Joe Momber at: cause I see a lot inefficiencies. The into a big problem for repairers, liken- that pilot hole is in the right place and ry This is not good for this industry.” Dan Hunsaker, owner of Dan’s reality is: Leave us alone. You guys ing it to the evolution of the direct reis right. We’re going to continue to 800-699-8251 Paint and Body in Tucson, AZ, introsell insurance. Let us repair cars.” pair program model. work the pilot in the four pilot areas e-mail: duced himself as a “Select ServiceRick Starbard, president of thefor details! John Mosley, who wrote adetails! perand fix these things that are clearly deCALL: Joe Momber Call for jmomber@autobodynews.com 51 aholic.” He said his shop was one of Alliance of Automotive Service sonal letter to Avery in May to express ficiencies, and then we will evaluate www.autobodynews.com 800-699-8251 800-699-8251 the first to pilot the program four Providers of Massachusetts (AASP/ his concerns over the parts program whether that will be something commonths ago, and since then he has reMA), as well as president of AASP and thank him for unifying collision pany-wide for Select Service repairn. alized it doesn’t work. National and owner of a Boston area repairers over their opposition to it, ers.” “I feel like the donkey that got body shop, said “When insurers meddumped into the Kentucky Derby,” dle in relationships between us and Register Your Email for Our Register Your Email for Our said Hunsaker. “It’s not efficient. How our customers, they cause irreparable can I improve on a one-click effi- harm to our industry. This product is Free Twice Monthly Newsletter ciency? I currently electronically up- redundant. We can do everything load my parts order. I have my shown today through our own manat www.autobodynews.com at www.autobodynews.com vendors. Everything is done instanta- agement systems. We survive on parts Continued from Page 22

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CT Chiropractor Guilty of Accident Fraud A Bridgeport, CT, chiropractor became the sixth health care provider to admit his involvement in a multi-million dollar insurance fraud in which medical treatment for auto accident victims was exaggerated to obtain bigger lawsuit settlements. George U. DeCarvalho, 56, owner of DeCarvalho Spine and Rehab, pleaded guilty to conspiring to commit health-care fraud. DeCarvalho will be sentenced Sept. 21 and faces anywhere from six to 16 months in prison. The chiropractor is the fourth of that profession to plead guilty in a case the FBI dubbed Operation Running Man. Jennifer Lynne, Jennifer Netter and Marc Kirshner are the other local chiropractors who admitted their involvement. Additionally, Dr. James W. Marshall and Francisco Carbone, a former doctor and psychiatrist, also pleaded guilty to charges. The investigation also targeted an elderly lawyer who specializes in personal injury cases. Assistant U.S. Attorney Christopher Schmeisser said the scam ran from December 2006 to February 2010. The participants agreed to exaggerate injuries and providers billed

for extensive treatment and tests, some of which were not performed. They then split the insurance proceeds. Documents filed in federal court claim DeCarvalho’s take ranged from $30,000 to $70,000. The probe focused on the lawyer whose personal injury clients received some form of state aid. Court documents claim the unnamed lawyer would send clients to chiropractors for treatment. Carbone, whose medical license was suspended in 1998 and then revoked in 2005, would write orders for treatment which often included nerve tests that Kirschner’s offices would perform. Carbone also would recommend that Marshall write prescriptions for narcotic pain killers for the patients. DeCarvalho was both a provider and a patient in the scheme, according to court documents. He shared office space with Carbone and would provide treatment for some of the patients. On May 18, 2007, DeCarvalho was involved in an auto accident in which the other driver was found to be at fault. Carbone fabricated medical records and submitted claims for DeCarvalho which led to the chiropractor receiving a $4,500 injury settlement, according to court documents.

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AkzoNobel Hosts 2nd Annual Sustainability Event

AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) hosted the second annual Sustainability Leadership Symposium July 20 at the Hyatt Regency in San Antonio, Texas. The 2012 Sustainability Leadership Symposium followed a highly successful inaugural launch in 2011, wherein collision repair professionals representing key influencing sectors of the industry were invited to take part in a candid brainstorming discussion about their role in advancing and leading sustainable business practices that would help establish an industry-wide model. “We were more than encouraged last year to hear the level of concern, commitment and contribution that key industry leaders are willing to embrace toward making collision repair a more sustainable industry,” said AkzoNobel’s Mike Shesterkin, Director of Sustainability and New Business Innovations for A&AC Americas. “This year’s symposium included an even wider circle of professionals.” Shesterkin said discussions included how to identify actions to lead to a triple bottom line – people, planet and profit - value creation. Deborah M. Steketee, Ph.D., associate professor of sustainable business and executive director for the

Center of Sustainability at Aquinas College in Grand Rapids, Mich., moderated the symposium. Panelists included: •Lee Broughton – Enterprise Holdings, St. Louis, Mo. •Susanna Gotsch – CCC Information Services, Chicago, Ill. •Randy Hanson – Allstate, Chicago, Ill. •Michael LeVasseur – Keenan’s Auto Body, Clifton Heights, N.J. •Mary Mahoney – Enterprise Holdings, Inc., St. Louis, Mo. •Tom Melcher – dmStrategists, Grand Rapids, Mich. •Diana Rivenburgh – Strategic Imperatives, Atlanta, Ga. •Deborah Steketee, Ph.D. – Center for Sustainability at Aquinas College, Grand Rapids, Mich. •Carl Vincenti – Oka’s Auto Body, Waipahu, Hawaii. The Sustainable Leadership Symposium was preceded by AkzoNobel’s 2012 FIT Sustainability and Most Influential Women (MIW) Awards banquet held July 19. The “FIT” Award is the collision repair industry’s first recognition program dedicated to honoring corporate commitment, participation and leadership in advancing sustainability through three key areas — Focus, Innovation and Talent.

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Women’s Industry Network Launches New Website

The Women’s Industry Network has launched a new website focusing on one of the organization’s foundational goals: enabling networking among women in the collision industry. The redesign of WomensIndustryNetwork.com is a result of feedback from WIN members as well as cross-industry input. The new site offers significant enhancements to WIN’s efforts to deliver support, education and networking opportunities to its members as well as the industry at large. The new social media based website presents a user-friendly opportunity to get to know the organization, its mission and activities through traditional as well as multi-media content. Visitors will be able to learn more about the organization through news, videos, and photos, along with having the ability to apply for membership and scholarships directly from the site. WIN members will also be able to network through a “membersonly” section of the site, enabling quick and easy mutual support among colleagues across the country. “As an organization, we see this new website as an opportunity to spread the word about WIN and offer our members an easy way to reach out to other women in the collision industry,” said Ruth Weniger of Airbag

Solutions, Chair of the Web Site Task Force. “One of the best ways to empower women to achieve success is to give them a solid platform and sense of community. That is WIN’s mission and we are thrilled to be able to offer this new opportunity to learn and stay connected.” The efforts of WIN’s all-volunteer Website Task Force were critical to the development and launch of this new venture. The group includes Mia Bonthron (Enterprise Rent-A-Car), Melissa Miller (CARSTAR), Jennifer Justice Haley (former Body Shop manager) and Victoria Jankowski (State Farm). Working closely with Kristen Felder and Liz Blackman of Collision Hub, the organization’s web development partner, WIN developed this flexible site to meet the needs of the fast-growing organization. WIN gratefully acknowledges Collision Hub for the generous donation of development services to make this exciting launch possible. To learn more about WIN, please visit WomensIndustryNetwork.com or contact the organization at: info@WomensIndustryNetwork.com.

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3M Makes Major Donations Through Collision Repair Education Foundation

3M has come to the aid of 676 second- schools the ability to enhance their inary and post-secondary collision pro- dividual programs and prepare their grams across the country by several students for a career in our industry.” product donations through the ColliCollision Repair Education sion Repair Education Foundation. Foundation Board of Trustees ChairThis product donation, valued at man Chris Northup said, “To put in $882,800, will ease collision depart- perspective the level of which 3M has ment budgets by providing students assisted secondary and post-secwith the opportunity to work with up- ondary collision schools across the to-date supplies. 3M was able to sup- country, since 2009 3M has annually ply 676 schools with Meguiar’s averaged roughly $900,000 in donasanding/finishing discs, headlight and tions through the Collision Repair Edspot repair kit, pistol grip rotary pol- ucation Foundation. Through the ishers, and other items. In addition, 49 letters we receive back from collision of those schools also received donated instructors, it is apparent that they are vinyl tape packages to aid their colli- extremely grateful and overwhelmed sion programs product needs. by 3M’s generosity and willingness to 3M Automotive Aftermarket Di- assist them in providing up-to-date vision Business Development Man- materials for their school’s collision ager Mark Algie said, “3M continues programs. This will only benefit the to be committed to all segments of the collision students’ technical education collision repair industry and through and collision repair businesses will be the help of the Collision Repair Edu- able to hire these well-trained students cation Foundation, we are able to help as productive, capable, and efficient a lot of great schools, instructors, and employees from day one on the job. students. We value what these schools On behalf of the Board of Trustees, areGive all about whatopinion they do toon pre-matters the staff,affecting and the collision school prousand your the industry. pare the next generation of techs, esti- grams nationwide that have benefited mators and I’m sure some owners for from these product donations, thank our industry. We will continue to pro- you to 3M for continuing to support vide resources that will give these the organization at such a high level.”

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Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

With Estimates, Insurers See the Emperor’s Underwear with The Insurance Insider

derwear. That’s right, we see your age,” “The estimate is the estimate,” Emperors and underwear? Referencing royalty’s skivvies in an article BVDs, Fruit of the Looms, or what- “The cost to repair is the cost to reabout body shops? Everyone in the ever your brand of choice is. We see pair.” I say that the royal underwear is kingdom thinks with that theChasidy shops repreRae and Siskknow what you don’t want us to in need of cleaning. The customer dictates the cost to sent the peasants, while insurers are know. We know that the customer the heirs to the throne. Rumor has it matters—and I’m not referring to cus- repair. It’s conceivable that we could have a dozen different estithat a CEO from one of the top three mates from the same shop insurance carriers in the U.S. is a secwith different bottom lines to ond-cousin to the Queen of England. repair the same car. Sadly, If that’s true,with as royalty, there are Chasidy Rae Sisk you know that I’m right. I privileges that we insurers are entitled also know that Santa Claus to that quite frankly shops aren’t. isn’t real and the Wizard of What is it exactly that us royals get Oz is a phony. I looked bethat most of my readers don’t? I’m not hind the curtain. I’ve seen. talking about “money,” although I We’ve seen. We all know. suppose there may be some merit in Here’s why you know I’m that response. right. If the shop participates What insurers get is tons and tons of data. If we don’t have it, we can get tomer service. I am referring to the in a direct repair program, the labor it. Just like that gentleman in the red fact that the customer matters when rate is going to be $x in accordance with the contract. The shop writes x suit who is recognized by his “Ho, ho you write an estimate. I know that the estimate is the one hours to repair a given panel, x to ho,” we know if you’ve been naughty the car, and to blend the adjathing us that your shops opinion claim is more holy cover or nice. We also know who writes a Give on matters affecting thexindustry. and pure than the Pope himself. Shops cent panel. good estimate and who doesn’t. If the shop isn’t on a direct repair We also see the Emperor’s Un- often say, “The damage is the damwww.autobodynews.com program, the labor rate, labor hours, publisher@autobodynews.com cover car, blend time and P-pages will CHECK IT OUT! AUTOBODY MARKETPLACE all be inserted into the estimate at a different amount, say, x -y. If the shop is working with an independent appraiser and it’s someone they know, it may be x + y + z. If the shop is doing work for a To advertise advertise The source for timely fleet account,To such as rental car comcall Advertising Sales at: callbeJoe pany, it will x – Momber y – y - y. at: information that every 800-699-8251 If the800-699-8251 customer is paying for the body shop needs! work out of theire-mail: own pocket and the e-mail: Search: advertising@autobodynews.com jmomber@autobodynews.com shop is slow, it’s going to be x – y. If CALL 800-699-8251 the shop is busy and doesn’t need the www.autobodynews.com www.autobodynews.com Start Your FREE work, it’s back to x. If the customer happens to be a Mail Subscription.

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neighbor or friend, it’s going to be x – y – z. And if the customer is your mother-in-law, it’s going to be x + y – z, plus a free detail. I could continue, but the point is made. The customer matters. But in case it’s still not clear, let me drive it home faster than a body man priming a 10-hour repair on a quarter panel after the shop has been notified that an adjuster is coming out to see the vehicle. That “8-hour repair” on a quarter panel becomes five hours for the rental car company, two hours for your mother-in-law, six hours to your friend, nine hours if an independent appraiser comes to your shop, 10 hours if the insurance company is reducing the refinish time on a repaired panel, 11 hours if you know the reinspector from the insurance company is going the estimate,toand Wanttotohack Contribute this seven hours if it’s a customer-pay job. How do we know this? Data, and lots of it. Almost every decision you publisher@autobod make when writing an estimate is decided by who is paying the bill. This is the sad reality of the business. The damage is never just the damage. That’s the Promote yourinbusiness “Emperor’s Underwear” this indus-with an exclusive article featurin try that nobody is supposed to see. And the actual cost to repair that your products or services. vehicle? “Well, it all depends.”

write

The Insider is a corporate-level executive with a Top 10 auto insurer CALL: Momber for details in the U.S. Got aJoe comment or question you’d like to see him address in a future column? 800-699-8251 Email him at Auto.Insurance.Insider@gmail.com.

SCRS Says PartsTrader Sparked Four New the NEW Register Your EmailHas for Our Advertise See in our CLASSIFIED SECTION Industry Associations: UT, ID, AL, and TX for $50News per column inch! Free Autobody Website AccordingMonthly to Aaron Schulenburg,Newsletter Schulenburg said it was good to see www.autobodynews.com Place an ad in our AUTOBODY MARKETPLACE section of Autobody News.

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president of the Society of Collision more unification in the industry. at www.autobodynews.com Repair Specialists, concern over State “For that, I thank both State Farm’s parts bidding program has Farm and PartsTrader,” Schulenburg caused a spike in their membership quipped. and prompted the formation of at “I can tell you that I’ve had the least four new auto body associations. pleasure of talking to a lot more reNew associations have popped up pair shops that I haven’t had the opin Utah, Idaho, Alabama and Texas. portunity to speak with before.” Though the banding together of shops is primarily a defensive action against State Farm’s online parts bidding and www.autobodynews.com ordering program through PartsTrader,

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