August 2020 Northeast Edition by Autobody News

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Shops Taking Action to Boost Business, Help Employees and Community by John Yoswick

Collision repairers around the country aren’t sitting still as business conditions continued to evolve as summer began. Here’s a cross-country tour of what’s happening as shops around the U.S. respond to the pandemic and its economic fallout. Helping employees and the community Shops continue to be generous in their efforts to help out their employees, their customers and their community.

Zach DeGroot, manager of Riverbend Body Shop in Grand Rapids, MI, said the shop covered some of the costs for police vehicle repairs after about a dozen such vehicles were damaged during rioting that followed a protest to denounce the death of George Floyd. DeGroot said the shop has always tried to do something extra on customers’ vehicles in for repairs, but is also trying to step that up, offering free detailing or “repairing unrelated damage on adjacent panels for customers so they do not have to pay out of pocket.” See Taking Action, Page 52

NORTHEAST 2020 Goes Virtual, Collision P.R.E.P. Classes Announced by Chasidy Rae Sisk

AASP/NJ on July 20 shared preliminary details for its virtual 2020 NORTHEAST Automotive Services Show, scheduled for Aug. 21-23. Originally scheduled for March 20-22, this year’s event was postponed until August. But when the association decided in June to cancel the in-person trade show altogether, it announced it would host a free virtual event instead. “We are really excited about the virtual show,” AASP/NJ President Jerry McNee said. “With the can-

cellation of the in-person show this year, we looked for a new way to get our exhibitors in direct contact with our attendees so that 2020 wouldn’t be a lost year. It obviously won’t be the same as face-to-face, but we are thrilled to provide an effective alternative at no additional cost to our attendees or exhibitors.” Using a dedicated link on the event website, registered attendees will enter their email address and be able to visit exhibitors’ virtual “booths” online, where they can view product information and videos See NORTHEAST 2020, Page 18

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Some Positive Trends for Collision Repairers Amid Pandemic Fallout by John Yoswick

Although the tough times shops are experiencing in some markets aren’t over, the summer has brought some sunnier trends for the industry. Here is a collection of some potential good news for collision repairers. Rebound in used vehicle values means fewer totals Given the link between used vehicle pricing and the percentage of collision-damaged vehicles declared total losses rather than repairable, collision repairers tracking the fluctuation in

second-hand vehicle values this year have to feel like they’ve been on a wild roller coaster ride. Vehicles are generally declared total losses when the cost of repairs exceeds some percentage of the vehicle’s value prior to the accident. When used vehicle prices drop, it takes less damage for repair costs to hit that total loss threshold. And drop they did this spring. Wholesale used vehicle prices in the first 15 days of April decreased 11.8% compared to a month earlier, according to Manheim. The used veSee Positive Trends, Page 42

Auto Dealer Parts Departments Continue to Serve Through Pandemic by Gary Ledoux

In the last few months, much has been written and discussed within the trade press about how body shops, insurance companies and car rental companies are faring with the business slowdown caused by the corona virus pandemic. Autobody News wanted to know how the auto dealer parts departments were faring. Between June 11 and June 15, Autobody News conducted a survey of car dealership parts departments. This included dealers of all makes from Ford, GM and FCA to Mini, Mitsubishi and Tesla, and everything in between. All responding dealers said they were involved in the wholesale collision business. All except one said they were involved in the wholesale mechanical business. Responding dealers leaned toward being either General Motors or Honda/Acura dealers. We asked the following questions and received the respective responses.

In March, April and May, was your wholesale collision business (primarily body parts sold to collision repair shops) up or down, and by what percentage? All except three dealers noted their wholesale collision business was down, some by as little as 15% and some by as much as 80%. The average was a decrease of 45% and consistent with the business losses experienced by collision shops. Of those that experienced an increase in wholesale collision sales, one dealer could not be reached for comment. Another, a GM dealer in Missouri, noted that a large hailstorm was the cause of the increase. The third dealer, Richmond Ford Lincoln of Richmond, VA, took a very aggressive and innovative approach to increase sales. “We took our outside salespeople off the road and had them working the phones five or six hours a day contacting customers to see who was open and who was not and if there was anything we could do to help them out,” said Parts Director See Serve Through Pandemic, Page 22

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CONTENTS ‘Now & Then’ Series Features Post Garage Company in Middletown, NY .........................16 9 Companies, 8 States Involved in U.S. DOT Automated Driving Systems Initiative ............54 Concern with Virus Waivers and Worker’s Comp as PA Businesses Reopen ...................20 Legal Challenge Fails to Kill Massachusetts Referendum Regarding Car Owner Control of Repair Data.................................................6 Lincoln Educational Services Re-Opens All

AUTOBODY Auto Dealerships Leading the Way on

‘Solving the Tech Shortage’ Column ..............56 CAR Coalition Urges Data Control ......................59 Diving Into the Fascinating World of Fasteners ..46 GM to Call Up Hundreds of Laid-Off Workers to Meet Production Demand at Key Truck Plants ....................................................4 HBO Production Company Sued For $8M After Massive Car Dealership Fire..................12 I-CAR® Expands Audi Training ...........................18

MA Car Repair Choice Law Headed to Ballot .......9

I-CAR® Names Peevy to New Role.....................57

Massachusetts Resident Indicted for More

Industry Legend Dick Schoonover Dies .............59

NORTHEAST 2020 Goes Virtual, Collision P.R.E.P. Classes Announced .............................1 NY Businesses Find Insurance Policies Don’t Cover COVID-19 Interruption ................15 NYC Mayor: City Moving into Phase 2 Will Help 300,000 People Return to Work.............14

Lucid to Open 20 Retail and Service Locations in North America Through 2021 ....................57 MAACO Prepares 3 Stage Safety Service ..........15 Most Expensive States for Car Insurance in 2020 .........................................................56 NABC Announces New Awards ..........................16 NY Travel Advisory Extends Number of States Facing Quarantine Order to 31 ......................21

COLUMNISTS Anderson - Making the Most of the ‘Parts’ Portion of Your Business................................32 Attanasio - Will COVID-19 Change Your Marketing and Advertising Plans Forever? .....39 Chess - An Overview of Corrosion Protection Products: Part 1 of 2 .....................................26

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Oil Prices Suppressed by Low Demand, How Auto Retail May React ...........................45 SEMA Supports Legislation to Forgive All PPP Loans Less Than $150,000 ....................53 Shops Taking Action to Boost Business, Help Employees and Community .....................1 Some Positive Trends for Collision Repairers

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

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Accudraft Paint Booths.................................... 60

Kundert Volvo.................................................. 48

Acura of Westchester ...................................... 48

Long Automotive Group .................................. 33

American Icon Automotive Finishes ................. 16

Mazda Wholesale Parts Dealers ...................... 54

Audi Wholesale Parts Dealers .......................... 51

McGovern Chrysler-Jeep-Dodge-Ram ............... 8

AutoNation Collision Parts ................................. 7

Mercedes-Benz of Atlantic City ......................... 9

Bical Auto Mall ................................................ 44

Mercedes-Benz of Fort Washington ................... 9

BMW Wholesale Parts Dealers ...................40-41

Mercedes-Benz of Paramus ............................ 39

Cadillac of Mahwah ........................................ 12

Mercedes-Benz of West Chester ....................... 9

Central Avenue Chrysler-Jeep-Dodge-Ram ..... 13

Mercedes-Benz of Wilmington ........................ 18

Certified Automotive Parts Association ............ 22

Mercedes-Benz Wholesale Parts Dealers ........ 47

Cherry Hill Dodge-Chrysler-Jeep-Ram ............ 26

MINI Wholesale Parts Dealers.......................... 42

Cherry Hill Nissan ........................................... 24

MOPAR Wholesale Parts Dealers ................34-35

Choice Bumper, Inc ......................................... 10

New Holland Ford ........................................... 45

Classifieds ...................................................... 58

New Holland Toyota ........................................ 28

Colonial Automotive Group .............................. 19

Nissan/Infiniti Wholesale Parts Dealers............ 52

Courtesy Mitsubishi ........................................ 24

Northstar Kia................................................... 46

Criswell Chrysler-Jeep-Dodge-Ram ................ 20

Nucar ............................................................. 29

Eagle Abrasives, Inc .......................................... 2

Porsche Wholesale Parts Dealers .................... 57

Eckler’s Automotive .......................................... 6

PPG Refinish ................................................... 11

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Amid Pandemic Fallout....................................1

Empire Auto Parts ........................................... 22

SATA Dan-Am Company .................................... 5

Share Insight About Collision Industry ...........36

Tesla Battery Day Gets a Concrete Date ............59

Equalizer Industries, Inc .................................. 36

Schultz Ford.................................................... 21

Flemington Auto Group ................................... 25

Security Dodge-Chrysler-Jeep-Ram ................ 14

Ford Wholesale Parts Dealers .......................... 53

Spanesi Americas ........................................... 15

GM Wholesale Parts Dealers ........................... 37

Subaru Wholesale Parts Dealers...................... 49

Haldon Company ............................................ 23

Symach .......................................................... 16

Honda-Acura Wholesale Parts Dealers .......30-31

Toyota Wholesale Parts Dealers....................... 56

Hyundai Wholesale Parts Dealers .................... 50

VIP Honda ....................................................... 38

Infiniti of Norwood .......................................... 32

Volkswagen of Newtown Square ..................... 28

Innovative Tools & Technologies, Inc ................ 17

Volkswagen Wholesale Parts Dealers .............. 55

Jaguar Land Rover Cherry Hill......................... 27

White Plains Volkswagen ................................ 10

Kia Motors Wholesale Parts Dealers ................ 43

Yonkers Kia ..................................................... 28

Tesla is Worth More Than Volkswagen, NATIONAL ‘Cash for Clunkers’ Not in Bill............................14 2020 SEMA Show Safety Announced ................57 3M Shows Support of Collision Repair Industry During Pandemic .............................49 Amazon Acquires Autonomous Ride-Hailing Group........................................54 Auto Dealer Parts Departments Continue to Serve Through Pandemic ............................1

Toyota and Honda Combined .........................56 Tesla Model 3 Rear Bumper Flies Off After Driving Through a Puddle ..............................44 Tesla Not Ahead in Lithium-Ion Battery Tech, Says Audi CEO: ‘We’re Catching Up’ ..............58 Tesla Worth More Than Volkswagen, Toyota and Honda Combined....................................56 WIN Announces Award Winners.........................24

Kia of Attleboro ............................................... 24 autobodynews.com / AUGUST 2020 AUTOBODY NEWS 3

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GM to Call Up Hundreds of Laid-Off Workers to Meet Production Demand at Key Truck Plants by Jamie L. LaReau, Detroit Free Press

General Motors Co. has a problem with absenteeism at its vital truck plants just when it needs every single body it can get on the assembly line.GM is working feverishly to replenish supplies of the in-demand pickups and full-sized SUVs after idling its U.S. factories from lateMarch through mid-May amid the coronavirus pandemic. Take Fort Wayne Assembly in Indiana, where GM builds its Chevrolet Silverado and GMC Sierra fullsize light-duty pickups. The plant has about 4,100 hourly workers and nearly 1,000 of them are off for various reasons—as many as 200 workers are off for COVID-19 related reasons. So it is increasingly harder for GM to hit the daily build target of 1,290 pickups there. If you look down the assembly line, you’ll likely see something that should never be, said a person familiar with the plant, but who is not authorized to speak to the media and asked to not be named. “They’re at full schedule, but they have every single person on that assembly line, including management, and management is not supposed to be on the line,” said the person. “It’s all hands on deck, just to build trucks.” To alleviate the problem, GM told union leaders at Flint Assembly, Fort Wayne Assembly and Arlington Assembly in Texas it will be adding hundreds of permanent workers to the plants, some starting in early August. They will not be new hires, but rather GM workers laid off at other plants who will be given the chance to permanently transfer to one of the truck facilities. “It is ... no secret that we have people on layoff from Detroit-Hamtramck and upcoming at Spring Hill, so it makes sense to shore-up our workforce in the important truck and heavy-duty SUV plants,” said another person familiar with the situation but who asked to not be named because they are not authorized to share that with the media. A GM spokesman did not comment on managers helping build pickups, other than to say GM is doing everything to address the production challenges in the plants while

keeping workers safe during the pandemic. “We are operating our plants as efficiently as possible while accommodating team members who are not reporting to work due to concerns about COVID-19 in the community,” said GM spokesman David Barnas. By month end, GM will have access to a wider workforce. Effective July 31, GM has said it will cut the third shift at its Spring Hill Assembly plant in Spring Hill, TN. The move impacts 680 workers there, 525 of whom are production and skilled trade employees. The cuts are the result of slow sales of the Cadillac XT5, Cadillac XT6 and GMC Acadia SUVs made in Spring Hill. Likewise, GM still has 430 workers laid off from Detroit-Hamtramck Assembly after the last Chevrolet Impala sedan rolled off the line Feb. 27. GM was going to transfer many of those people to the Lansing Delta Township plant, where it builds the Buick Enclave and Chevrolet Traverse SUVs, but then GM decided to keep that plant at two shifts. GM declined to provide specific details on the number of employees it will transfer to the truck plants, but, Barnas said: “We will follow the provisions of the national agreement. But we believe our staffing plans will allow us to continue supporting three production shifts at Fort Wayne, Flint and Arlington to meet strong customer and dealer demand for our pickup trucks and full-sized SUVs.” The union’s contract allows laid-off workers first dibs to rehire at the plant that they were laid off from, then they can apply for a job at a plant within a 50-mile radius of their home plant. The region expands from there. If a worker declines a transfer, they typically remain laid off, according to the contract. “All of these transfers are being done in accordance with the agreement that was negotiated based on seniority and transfers,” said Brian Rothenberg, UAW spokesman. At Flint Assembly, where GM builds its full-size heavy-duty pickups, it is running at full capacity. Workers usually hit the daily production target, but sometimes they fall short by a dozen or so, said Eric Welter, UAW Local 598 shop chairman

at the plant. He declined to disclose the total number of pickups the plant targets to build each day. “We do need some help,” Welter told the Free Press. “We’re getting 100 people. They’re laid off anyways and they need the work. They’re coming from Detroit-Hamtramck, Spring Hill, Pontiac and Milford.” Welter said he learned of the 100 new permanent jobs July 13. Flint will start getting about 50 of them Aug. 10, the other on half Aug. 17, Welter said. The news hit him two days after the Free Press first reported GM will temporarily reduce its Wentzville Assembly plant, near St. Louis, MO, to two shifts starting July 20. Heavy absenteeism there among nervous workers as cases of coronavirus surge in the surrounding community was cited as a reason. When asked how long Wentzville’s third shift would be laid off and whether Wentzville would get transfers from other plants to help boost production of the midsize pickups and full-size vans it builds, GM’s Barnas said only, “We are working on a staffing plan at Wentzville that will allow us to return to three production shifts as soon as possible in order to meet strong customer and dealer demand for our mid-size trucks.” Welter said absenteeism is high at Flint Assembly, too. “It’s up there, roughly 600 people are on some sort of leave of absence, whether it’s sick leave and personal leave, and then we have people on vacation and an extra 100 on COVID leave,” Welter said. “It’s tough on the plants. But we’re running.” There are about 5,000 workers at Flint. Seven workers have tested positive for coronavirus since the plant restarted in mid-May, Welter said. The 100 workers on “COVID leave” are those who have an immune disorder and cannot work, or they are in quarantine due to exposure to someone who tested positive for the COVID-19, or they have to care for someone with the virus. “It’s a difficult environment to work in. My people are stepping up to get it done,” Welter said. “But it is hot wearing masks all day and doing the heavy work.” At Fort Wayne, GM will add 318

workers, according to a report sent to workers by shop chairman Rich LeTourneau. The report, obtained by the Free Press, is dated July 10 and says there are 737 members on family leave status, 268 members on sick leave and 157 members on leave for “something other than sick leave.” The workers will start arriving the first two weeks in August. The plant has nine confirmed COVID-19 cases, said the person familiar with the plant. By policy, GM does not release the number of COVID-19 cases in plants. LeTourneau’s letter reads: “At this point, GM has no intentions of shutting any plants down, we are being told. They do not see an end in sight as it relates to COVID-19 either.” When asked to comment on that point, GM’s Barnas said, “People on our team should not be concerned about coming to work. All of our sites are following multilayered safety protocols that are working very well to keep people safe by reducing the possibility that COVID-19 can enter the plant and preventing any spread within the plant.” Barnas said the same plant protocols can help keep people safe outside of work, especially social distancing and wearing masks. Local union leaders at Wentzville and Arlington have asked GM to shut down the plants as cases of coronavirus in their surrounding communities surged. But GM has keep both running. It’s not known how many workers Arlington will get because no one from Arlington replied to a request for comment. The UAW negotiated its current contract prior to the outbreak of coronavirus, so there is no clause to address how to handle it. The union and the automakers must stay in continual discussions on ways to address the changing situation. “I told the company a month ago this is only going to get worse, so you’ve got two choices here: You shut the plant down or you run two shifts,” said the person familiar with Fort Wayne. “They said we’ll play it when we get there. The two shifts are an option.” We thank the Detroit Free Press for reprint permission.

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Legal Challenge Fails to Kill Massachusetts Referendum Regarding Car Owner Control of Repair Data The Massachusetts Right to Repair Committee on July 1 turned in 24,000 signatures to the Secretary of State regarding a ballot question that would mandate car companies provide car owners with control of repair data generated by their vehicles. The submission is more than the 13,374 signatures required by law to have a question placed on the ballot. While these signatures are usually collected manually, the COVID-19 virus forced the committee to seek a consent decree from the Massachusetts Supreme Court that permitted the collection of signatures electronically. On July 8, vehicle manufacturers, under the guise of the Coalition for Safe and Secure Data, submitted a legal challenge to the Massachusetts Ballot Commission, arguing the Right to Repair Committee disobeyed electronic signature-gathering requirements outlined by the Massachusetts Supreme Court by storing the signatures in a separate file and tracking personal data without

notification. However, in a similar case decided by the Massachusetts Supreme Court on July 13, a candidate for Congress, Helen Brady, who used the same signature-gathering vendor used by the Massachusetts Right to Repair

for the November ballot: “We are pleased for the voters and the tens of thousands of Massachusetts workers who depend on a free and open auto repair market,” said Tommy Hickey, director, Massachusetts Right to Repair. “By withdrawing their

“We are pleased for the voters and the tens of thousands of Massachusetts workers who depend on a free and open auto repair market,” — Tommy Hickey Committee, had her challenge approved―thus allowing Brady to move on to the November ballot. Following that decision, the vehicle manufacturer coalition withdrew its challenge and the Secretary of State declared the right to repair question will appear on the ballot and have the chance to be decided by Massachusetts voters. The Right to Repair Committee released the following statement regarding the Secretary of State’s approval of the question

challenge, the front group for automakers and car dealers has admitted that their arguments against the Right to Repair signature effort were specious, ill-informed and not based on facts. “Their attempt to once again thwart the will of the voters is a sign of their greed and continued desire to monopolize the auto repair market, leaving Massachusetts consumers and independent repair shops in the dust. The scare tactics from manufacturers and dealers have failed. A ‘yes’ vote

for Right to Repair will protect Massachusetts drivers’ choice to continue to get their cars repaired wherever they want.” The Coalition for Safe and Secure Data, a collection of voters and groups determined to protect consumer safety, privacy and cybersecurity, also released a statement. “The challenge has been withdrawn given the SJC ruling. However, it should be noted that ballot access is a different issue than public policy and voter privacy,” said Conor Yunits, spokesperson. “The fact remains that the vendor used by the proponents of this proposal collected and stored deeply personal information on anyone who signed their petition. “That violation of privacy and risk to cybersecurity should not be forgotten—especially given the ramifications of this question. We will remain focused on sharing the truth about this dangerous proposal and defeating it at the ballot box.” Source: Auto Care Association, Coalition for Safe and Secure Data

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Lincoln Educational Services Re-Opens All Six NJ Campuses Lincoln Educational Services Corporation, a national leader in specialized technical training, including automotive technology, the skilled trades, health care, IT, culinary and cosmetology, announced June 23 it will re-open its campuses in Iselin, Mahwah, Moorestown, Paramus, South Plainfield and Union, NJ. On-site instruction will resume on a limited basis effective July 1. “On March 17th, in accordance with local and federal guidelines, we transitioned our campus’ classroom instruction to remote, distance learning due to the impact of the COVID-19 pandemic,” said Scott Shaw, Lincoln Tech’s president and CEO. “We have worked closely with our regulators and local authorities to develop a re-opening plan with our primary objective being the health and safety of our students and staff.” “Initially we will be bringing back students in select programs and those nearing graduation who need the hands-on skills training to complete their education. We will gradually transition to full scale operations as is practical and allowed.” Lincoln currently has 3,195

students enrolled at its six New Jersey campuses. Nearly 99% of those students are training for careers that the U.S. Department of Homeland Security (DHS) deems essential. In New Jersey, Lincoln Tech graduates more skilled professionals than any other institution in five critical industries: licensed prac-

Programs are also available for careers in the diesel and heavy equipment maintenance fields, welding, information technology and massage therapy. Programs vary by campus. Thousands of openings are projected statewide in these areas as well, and many New Jersey graduates may also be recruited by employers in New York, adding tens of thousands of additional job opportunities. The campuses have played important roles in preparing students for careers across New Jersey for almost 75 years—the original Lincoln Tech campus was established in Newark in 1946—helping companies expand and generate job growth across the state and the region.

at Lincoln Tech, and it’s inspiring to be a big part of the region’s recovery from the COVID-19 crisis.” “Student safety, along with the health and safety of their families, our faculty and staff, is of utmost importance during this time,” said Laurie Pringle, president of the Paramus campus. “It is a proud moment

“Initially we will be bringing back students in select programs and those nearing graduation who need the hands-on skills training to complete their education,” — Scott Shaw tical nursing, automotive, HVAC, electrical and electronic systems and computerized manufacturing*. By 2028, the U.S. Department of Labor’s Bureau of Labor Statistics projects more than 72,000 job openings in these fields across the state **. “We’re excited to move into summer ready to welcome our students back,” said Jim Kuntz, president of the South Plainfield campus. “New Jersey will need workers with the skill sets students are developing

for all of us at Lincoln Tech to be able to keep that safety front-ofmind while also beginning training programs that will help bolster our state’s workforce in the near future.” In addition to the career fields noted above, Lincoln’s New Jersey schools are also bolstering the state’s health care workforce by providing training for future medical assistants, medical coding and billing associates, nursing assistants and patient care technicians.

* Based on IPEDS (Integrated Postsecondary Education Data System) data collected for 2017 graduates. ** Career growth projections can be found at careeronestop.org for the years 2018-2028. Data is current as of April 30, 2020. Source: Lincoln Educational Services

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MA Car Repair Choice Law Headed to Ballot The Massachusetts Right to Repair Coalition has collected more than 26,000 additional signatures to ensure its initiative petition to protect independent car repair shops and consumer car repair choice will reach the November ballot, doubling the legal requirement of 13,374. The signatures will be submitted to local clerks in 351 cities and towns by close of business June 17 and then to the Secretary of State by July 1. The Coalition, a group of Massachusetts independent repair shops, auto parts stores, trade associations, consumers and drivers, said the initiative petition would allow Massachusetts car owners to continue to have access to the repair and diagnostic mechanical information produced by their car, a right they gained after voting 86% for the existing Right to Repair law on the 2012 ballot. In 2020, advancements in vehicle technology have resulted in 90% of new cars being equipped to transmit real-time diagnostic and repair information wirelessly to vehicle manufacturers. Restrictions put in place by automakers regarding access to this wire-

less repair data threaten the rights that Massachusetts car consumers enjoy today, to choose to get their cars fixed at trusted independent repair shops or do the work themselves. “We need to update Right to Repairbefore wireless technologies remove the car owner’s right to get their vehicle repaired at our local, independent shop because the automaker would rather steer them towards one of their more expensive dealers,” said Alan Saks of Dorchester Tire Service. “We need to protect consumers’ rights to shop around for car repairs.” The initiative petition filed, “An Initiative Law to Enhance, Update and Protect the 2013 Motor Vehicle Right to Repair Law,” pertains to “mechanical data” related to “maintaining, diagnosing and repairing” cars. The key provision of the initiative is as follows: “Commencing in model year 2022 and thereafter a manufacturer of motor vehicles sold in the Commonwealth, including heavy duty vehicles having a gross vehicle weight rating of more than 14,000 pounds, that utilizes a telematics system shall be required to equip such vehicles with an

inter-operable, standardized and open access platform across all of the manufacturer’s makes and models. “Such platform shall be capable of securely communicating all mechanical data emanating directly from the motor vehicle via direct data connection to the platform. Such platform shall be directly accessible by the owner of the vehicle through a mobile-based application and, upon the authorization of the vehicle owner, all mechanical data shall be directly accessible by an independent repair facility or a class 1 dealer licensed pursuant to section 58 of chapter 140 limited to the time to complete the repair or for a period of time agreed to by the vehicle owner for the purposes of maintaining, diagnosing and repairing the motor vehicle. Access shall include the ability to send commands to in-vehicle components if needed for purposes of maintenance, diagnostics and repair.” “Independent repair shops across Massachusetts collected 100,000 signatures last fall and another 26,000 this spring because they need Right to Repair updated to protect their businesses,” said Coalition Director Tom-

my Hickey. “Our independent shops are increasingly facing the prospect of having limited or no access to diagnostic and repair information now that automakers are restricting access through rapidly expanding wireless technologies in vehicles not covered under current law.” The ballot initiative would give car owners access only to the diagnostic and repair data generated by their car, and they could opt to provide access to any dealer, repair shop or automaker that they choose during the lifetime of their car. The Massachusetts Right to Repair Coalition now has more than 4,000 members statewide. In addition to independent repair shops and Massachusetts auto parts stores, members of the Coalition include the Alliance of Automotive Service Providers of Massachusetts, the New England Tire and Service Association, Automotive Recyclers of Massachusetts and the Automotive Oil Change Association. Further information may be found at massrighttorepair.org Source: Massachusetts Right to Repair Coalition

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Auto Dealerships Leading the Way on Safe Reopening by Elizabeth Wulfhorst, The Two Rivers Times

As nonessential businesses gradually reopen around New Jersey, store owners can take a cue from car dealerships which opened their showrooms to sales by appointment only a few weeks ago. “The safety of our customers and employees has always been and remains our top priority,” said Lawrence Powell, general manager at Circle BMW in Eatontown. That is why the dealership has taken safety protocols seriously. Shields are up in the reception area, employees are wearing face coverings and social distancing, and disposable seat, wheel and shifter covers have been placed in all vehicles. In addition, they established a test drive cleaning protocol and hourly and nightly cleaning of the building. The dealership is also operating with shortened hours. Ray Catena Mercedes-Benz of Edison has taken all the same precautions. “If somebody comes in, they’re not wearing a mask, we remind them to go back out to their car and get their mask,” said Doug Wells, general manager. Wells said Ray Catena is using technology similar to iPads for completing and signing forms. Screens and pens are constantly wiped down and all paperwork is downloaded onto a USB drive for the customer to take home, so paper never changes hands. Buying a new car usually means time spent going over all its features with a salesperson, from the windshield wipers and turn signals to the navigation system and any other high tech packages. If buyers are concerned about being in a closed environment for a prolonged period with the salesperson, even though they will be masked and gloved, Wells said customers can opt for “virtual delivery”; once a car has been delivered to a customer’s home, a delivery consultant will review the entire car with them via FaceTime. To make shopping easier, Wells said they moved much of their inventory to the front of the building and placed QR codes in the windshields so customers can scan with a smartphone to learn about a particular vehicle and even live chat with a salesperson. Ray Catena also offers a digital online purchasing tool, which was being developed before the pandemic, but quickly implemented during quarantine.

At Circle BMW, Powell said customers can start the buying process online and virtually shop inventory, manage payment options and complete most necessary documentation from home. Although showrooms have only recently reopened, most dealership service centers have remained open throughout the pandemic to meet customer needs. “Our commitment to be available for our customers to repair and maintain their BMW at all times is paramount to our business model,” explained Powell, who said their center remained open six days a week. “Our team was swift to institute safety protocols,” he said. When a vehicle comes in for service it is fitted with plastic covers on the seat, steering wheel and gear shift. Vehicles are cleaned and sanitized when service is complete and any cars loaned out during service are sanitized and cleaned after each use. Powell and Wells share similar outlooks for the future of auto sales. “Did our business slow down when this first happened? The answer is yes,” said Wells. “But right now, business is extremely busy and the people want the cars.”

Wells said he thinks a couple of circumstances are pushing this demand. “People weren’t spending the money that they’d normally be spending during a normal situation, so all of a sudden, now they want to get their new car,” said Wells. “They have that extra money and the pent-up demand is there.” His concern is, if business continues as it’s been going, the dealership will run out of inventory by July, he said. Powell concurs. “In the short term the automotive industry will probably experience a new vehicle supply challenge due to factory closings. Our hopes are that once processes are in place that keep everyone safe, the factories will get back to full production,” he said. But it’s not just the factories that have to get up to speed. The entire supply chain has been disrupted because of the pandemic. “Our Alabama plant was shut down [recently] for an extra week because parts suppliers weren’t open so they didn’t have parts,” said Wells. He also said the stock of preowned cars is down but will increase over the next few months as people

who held onto older or leased cars during the quarantine finally decide to trade them in for new models, which means lots of options for buyers looking for a pre-owned vehicle. Wells said the dealership was heading for a record March when everything shut down, but he believes that, as other businesses open, “we can get past this little bump in the road.” He explained how the automotive industry, which accounts for $4 million a day of tax revenue in New Jersey, is a good indicator for other retail. “If we start clicking, I think everything else will click,” Wells said. We thank The Two Rivers Times for reprint permission.

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HBO Production Company Sued For $8M After Massive Car Dealership Fire by Amie Williams, Motorious

A car dealership in Ellenville, NY, is suing an HBO production company for $8 million after the location was destroyed by a massive fire after being used as a set for the television series “I Know This Much To Be True,” according to the Record Online. The series stars Mark Ruffalo. The lawsuit was filed by 613 Automotive Group and issued to Calling Grace Productions due to negligence. Just after midnight May 9, 2019, a fire erupted at the dealership and completely engulfed the 10,000-square-foot facility while torching dozens of vehicles. Some of the cars were owned by the dealership, while others were antiques put in place by the production company to use on set. According to the source, the Ulster County fire officials could not be reached to update the reason for this fire that broke out last year. Levi Hecht, co-owner of 613 Atomotive Group, told the Journal

during a conference call the impact from the fire was devastating financially, and they are still feeling it more than a year after the tragic situation. “The business, basically, almost fell apart,” he said. “We’re holding on by a thin string to keep this alive financially and physically.” The other owner of 613 Automotive Group is 87-year-old Aaron Weingarten, who said, “They’re stretching me out. They want to outlast me. I’m 87 years old. I hope that I can settle this while I’m still on earth.” While HBO has not responded to the Journal, Weingarten confirmed his company is an insured party for $3 million and is suing for $8 million in damages. According to the report, the fire was started due to a transformer being used to charge camera batteries. Just one person was said to be on site during this time, a security guard who fell asleep and woke to explosions caused by the fire, and was able to escape unharmed.

More than 30 classic collector cars worth more than $1 million, along with $10 million in gear such as cameras, lenses and other production equipment, were completely destroyed by the blaze. After spending $200,000 to clean up all debris after the fire, the dealership was left “destitute.” According to the source, the dealership has yet to be compensated anything by the Calling Grace production company, and they were also forced to cut eight jobs because of the fire. About 14 vendors and subcontractors with connection to the production company have been investigating the fire. Court paperwork shows the dealership is also suing because of a breach of contract, and the fire “resulted in insured, uninsured and underinsured damages.” Even more, the agreement between both parties specified if Calling Grace had the dealership dislodged for more time than contracted, it would pay $1,750 per day, and if cars were not returned to the location, it would pay

$1,000, charges that are continuously collecting to this day. Having wrapped up the sixpart HBO series June 14, the production for “I Know This Much To Be True” brought 260 full-time jobs, along with boosting the local economy by more than $15 million. Series production started in October 2018 in the Hudson Valley, and plans included 28 days, with five days set aside for filming at 613 Automotive Group dealership, nestled on Main Street in Ellenville. Sadly, the massive blaze burnt those plans, causing the dealership to relocate to another spot in town. The original location is still vacant, and both owners hope to rebuild. What started out as excitement for the HBO production to use their dealership as a hot spot for the show turned into devastation once the large fire destroyed everything at the site. We thank Motorious for reprint permission.

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‘Cash for Clunkers’ Not in Bill

NYC Mayor: City Moving into Phase 2 Will Help 300,000 People Return to Work by Steve Bittenbender, The Center Square

The Automotive Service Association (ASA) is urging its members to go to https:// cqrcengage.com/asashop/app/ write-a-letter?0&engagementId=508657 to send a letter to their senators to oppose a “Cash for Clunkers” program in the next COVID-19 economic stimulus legislation. Some auto manufacturers have proposed reviving the Cash for Clunkers initiative, which paid the owners of older vehicles as much as $4,500 to help stimulate the economy in the summer of 2009. During this short period of time, approximately 700,000 post-warranty vehicles were taken oﬀ U.S. highways and out of independent repair shops. As the COVID-19 pandemic continues to ravage the nation economically, the ASA is continuing to work to ensure that a Cash for Clunkers program is not included in the next round of stimulus legislation. Source: ASA

New York City entered the second phase of the state’s COVID-19 reopening plan on June 22, a move Mayor Bill de Blasio said would help upwards of 300,000 people return to work for the first time in more than three months. The move means office buildings can reopen to employees at half capacity. Shoppers can go inside retail stores, and hair salons as well as barbershops are also allowed to reopen. Restaurants, meanwhile, can start offering outdoor dining on the sidewalks and street curbs in front of their establishments. “Some businesses are going to open up immediately, some folks don’t come back to work immediately,” the mayor said. “Others will take their time, some are going to watch and see how it goes. But what we know is, and we saw it in phase one, every passing day, more and more people say, ‘hey, this is working, I want to be a part of it.’” The mayor said since the morning of June 19, 3,200 restaurants have applied for outside dining priv-

ileges and were approved through a self-certification process. The city has to stay in the second phase for at least two weeks— and still meet the state’s metrics― before it can move into the third phase of the state’s COVID-19 reopening plan. Other regions of the state have been able to progress in just two weeks, and de Blasio said he’s cautiously optimistic the city can as well. “I’ll hold out hope that we can move through it quickly, but it’s going to be based on the data and it’s going to be, of course, a high bar because to do something here just affects so many millions of people, we have to get it right,” he said. Statewide, Gov. Andrew Cuomo did not give a briefing June 22, but he posted the state’s latest COVID-19 statistics on Twitter. More than 56,000 tests were performed, with 552 individuals testing positive. Hospitalizations continued to fall, with 1,122 beds being used for COVID-19 patients, and 10 deaths were reported. De Blasio also touched on a couple of issues that took place over the weekend. First, the may-

or praised the police department for quickly suspending an officer caught on video putting a suspect in a chokehold. The state legislature passed a law banning the restraining technique earlier this month. Not only did de Blasio commend Police Commissioner Dermot Shea, but an officer who intervened as well. “We need every officer to take responsibility if they see another officer doing something wrong, and that’s what the second officer did yesterday,” he said. He also reiterated his support for the decision to take down the Teddy Roosevelt statue in Central Park. The mayor noted Roosevelt did “some extraordinarily progressive things,” but the artwork showing the former president on horseback flanked by a Native American and an African-American is unacceptable, he said. “The statue clearly presents a white man as superior to people of color. And that’s just not acceptable in this day and age, and it never should have been acceptable,” de Blasio said. We thank The Center Square for reprint permission.

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MAACO Prepares 3 Stage Safety Service As the COVID-19 Pandemic hit the U.S. in March, Maaco Collision Repair and Auto Painting, part of the Driven Brands family of automotive brands, implemented a three-stage strategy for dealing with the crisis and helping its franchisees plan for the future. Maaco’s ﬁrst step was rallying around their franchisees and owners to help them navigate the uncertainty. The second stage of support was to prepare the centers to address the new operating procedures in a COVID-19 era, keeping customers and employees safe. Maaco named the program R.A.M.P., which included a six-week series of webinars on such topics as maintaining social distancing on the production line, implementing a touchless intake process, proper disinfecting procedures and proper use of personal protective equipment. The network of more than 400 locations is now in stage three, as all centers are open for business. Source: Maaco

NY Businesses Find Insurance Policies Don’t Cover COVID-19 Interruption by Joe Chen, The Center Square

After nonessential New York City businesses were forced to shut down in March because of the COVID-19 pandemic, many owners ﬁled interruption claims, only to be denied by insurers. “They paid for business interruption insurance for years,” Olympia Kazi, who works with the NYC Artists Coalition, recently told online news site The City. “And then they hear that COVID-19 is not covered, it’s like the cherry on top of this whole mess.” Dhruv Chopra, owner of a bar and performance venue called Elsewhere, had been paying hundreds of thousands of dollars a year for insurance premiums, thinking he would get comprehensive coverage―his claim was denied. “The coverage is large enough that it’s supposed to cover lost sales during a short period of shutdown,” Chopra told The City. “And so we didn’t think anything of a virus exclusion.” Many insurers added “virus” exemptions after the 2003 SARS outbreak and argue they will

not cover losses unless there was direct, physical damage.

A woman wears a face mask to protect against the coronavirus as she carries her groceries past closed shops April 14 on Roosevelt Avenue in the Queens borough of New York City. Credit: Mary Altaffer/AP photo

“Why did the civil authority shut you down?” Michael Barry, spokesman for the Insurance Information Institute, said in a phone interview with The City. “If the answer is it was the virus and it did not cause direct physical damage, then it is not a covered event.” Since late March, Assemblyman Michael Carrol has been trying to pass legislation that would force insurers to cover interruption claims ﬁled by small businesses

with less than 250 employees. “The regulators in the state―I don’t believe they interpreted [the virus exemption] to mean if there was a global pandemic,” Carroll said. “They were not expecting this.” Although Carrol argues the insurance industry has up to trillions of dollars in reserve, Barry said covering the losses would bankrupt the industry. “Pandemic coverage was out there, it was just so expensive that few people bought it,” Barry said. Nearly a million city workers lost their jobs since the pandemic according to the NYS Department of Labor, with approximately 318,000 job losses in the leisure and hospitality industry alone. “You have people that have never asked for business interruption insurance, and they’ve been paying a lot of money for a lot of years for the privilege of having it,” President Donald Trump said at an April 10 coronavirus brieﬁng. “And then when they ﬁnally need it, the insurance company says, ‘We’re not going to give it.’ We can’t let that happen.” We thank The Center Square for reprint permission.

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NABC Announces New Awards

â&#x20AC;&#x2DC;Now & Thenâ&#x20AC;&#x2122; Series Features Post Garage Company in Middletown, NY Erica Carr of Wolf Lake, NY, submitted postcards, from around 1926 to 1928, showing photos of Post Garage Co., Inc., that was at 88-92 West Main Street in Middletown. Later the building became a Cadillac Garage, and today it is Star Collision Center.

In celebration of its 25th anniversary, the National Auto Body Council BodyÂŽ is revamping the NABCâ&#x201E;˘ Awards program to formally recognize leadership of and commitment to improving the collision repair industry. The organization is introducing two new awardsâ&#x20AC;&#x201D;the NABCâ&#x201E;˘ Presidentâ&#x20AC;&#x2122;s Award and the NABCâ&#x201E;˘ Changing and Saving Lives Award. The NABCâ&#x201E;˘ Presidentâ&#x20AC;&#x2122;s Award is designed to honor the NABCâ&#x201E;˘ member company that supports the vision of the National Auto Body CouncilÂŽ through donation of their time and resources. The NABCâ&#x201E;˘ Changing and Saving Lives Award recognizes the individual in the collision repair industry that has delivered exemplary service in the NABCâ&#x201E;˘ mission of Changing and Saving Lives Every Day, far beyond their role in the industry. Nominations open on June 25 and will run through August 15.

Interior of Post Garage

Middletownâ&#x20AC;&#x2122;s first physician, Dr. David Hanford (1786-1844), came to Middletown in 1810. He helped to bring the Erie Railroad to Middletown in 1843 and was a founder of the Wallkill Academy, Middletownâ&#x20AC;&#x2122;s first institution of

Source: NABC

higher learning. In 1823 he purchased from Elisha Corwin 47 acres of land and built a house on the corner of what is now Hanford and West Main streets. In 1914, Dr. Hanfordâ&#x20AC;&#x2122;s former home was purchased to build the Post Garage and moved a bit up Hanford Street. The house was eventually torn down in 1959. Post Garage Company, originally known as Hotel Brown Garage Company, was located in a brick building on Henry Street behind the Hotel Brown, which later became the Mitchell Inn, which once stood on James Street, where First Federal is today. The Henry Street location had become too small for the business, and construction of a larger building began around July 1, 1914. Architect of the building was David H. Canfield, who had also designed City Hall on James Street.

The building measured 191 feet along West Main Street and 142 feet along Hanford Street. All in all, the building had about 25,000 square feet of floor space. The company moved into the building in November of 1914, but it wasnâ&#x20AC;&#x2122;t completed until the end of the year. Besides car repair, Postâ&#x20AC;&#x2122;s sold new and used cars and offered a car service as well. The building cost about $20,000 to build. James Brady Post, founder of the company, died Sept. 7, 1944, in a boating accident. Many older residents may remember the building as housing Krogslund Motors, Inc., which sold Cadillacs, Oldsmobiles and used cars and did car servicing. We thank the Times Herald-Record for reprint permission.

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Continued from Cover

NORTHEAST 2020 and schedule virtual meetings with vendors. The show hours will mirror the original schedule: 5 to 10 p.m. Friday, Aug. 21; 10 a.m. to 5 p.m. Saturday, Aug. 22; and 10 a.m. to 3 p.m. Sunday, Aug. 23. Exhibitors have already begun populating their booths. Ensuring that NORTHEAST attendees enjoy something akin to the educational experience they’ve come to expect from the largest regional automotive show of its kind, the Washington Metropolitan Auto Body Association (WMABA) has again collaborated to host live Collision P.R.E.P. training opportunities online. The live format provides attendees with the opportunity to interact with presenters and ask questions in real time. The training sessions will begin Aug. 6 and continue throughout the rest of the calendar year, with five presentations confirmed so far. All currently scheduled courses will

take place at 1 p.m. ET on the designated date. Mark Olson of VECO Experts will kick off the 2020 Collision P.R.E.P. schedule with “Documenting for Repair Process and Liability, and Building a Bulletproof File” on Aug. 6. On Aug. 27, BASF’s John Shoemaker will present “Positioning Your Business for Sustainability Among Constant Change,” and on Sept. 30, Mike Anderson of Collision Advice will team up with the DEG’s Danny Gredinberg to discuss “Utilizing the Vehicle Owner’s Manual to Educate Consumers and Insurers.” Industry professionals can learn about “Vehicle Diagnostics & Calibrations” with Chuck Olson, senior vice president of automotive technology at AirPro Diagnostics, and Josh McFarlin, AirPro’s vice president of strategic business operations, on Oct. 22. On Nov. 12, cPrax Marketing’s Bill Enross will provide valuable information on “Tackling Online Storefront Presence for the Collision Repair Business.” Current WMABA members and pre-registered 2020 Collision

P.R.E.P. attendees can attend the online courses for no additional cost, and full series passes remain valid for the 2021 event. Registration is still available for collision repair industry professionals at a cost of $50 per class. Industry professionals who pre-registered for the physical 2020 NORTHEAST do not need to register again, but those who have not yet signed up can still register for the virtual trade show and the Collision P.R.E.P. classes. For more information on or to register for AASP/NJ’s NORTHEAST Automotive Services Show, visit aaspnjnortheast.com. Exhibitor questions can be directed to info@ aaspnjnortheast.com. Collision P.R.E.P. registration is available at wmaba.com/collisionprep. NORTHEAST 2021 is scheduled for March 19-21, 2021.

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I-CAR® Expands Audi Training I-CAR®, the Inter-Industry Conference on Auto Collision Repair, announced June 30 a collaborative partnership with Audi of America’s Collision Repair Network, in which I-CAR will deliver expanded training to all new network members as Audi seeks to augment the knowledge of technicians and shop management, thus bolstering customer care, amid a new era of vehicle sophistication and repair complexity. I-CAR Gold Class® certification has been a “foundational pre-requisite” for any member of Audi’s Collision Repair Network, prior to progressing to Audi-specific repair training, said Mark Allen, collision & equipment manager, Audi of America. Now, Audi is “deepening its knowledge and skills benchmark” for all new network members by expanding I-CAR training requirements to include approximately 93 online, virtual and live Professional Development Protocol (PDP) courses, effective July 1. Source: I-CAR

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Colonial Cadillac of Woburn 201 Cambridge Rd., Woburn, MA 01801 Ph: 781-935-7009 / Fx: 781-933-7728 Hours: M, T, Th, F 7-5; W 7-8; Sat 8-4 www.buycolonialcadillac.com Colonial Chevrolet 171 Great Rd., Acton, MA 01720 Ph: 978-263-3994 / Fx: 978-263-8587 Hours: M-F 7-5; Sat 8-4 parts@colonialchevrolet.com Colonial South Chevrolet 361 State St., Dartmouth, MA 02747 Ph: 508-997-6711 / Fx: 508-979-1219 Hours: M-F 8-5; Sat 8-4 parts@colonialsouthchevrolet.com Colonial West Chevrolet 314 John Fitch Hwy., Fitchburg, MA 01420 Ph: 978-503-7480 / Fx: 978-345-1152 Hours: M-F 8-5; Sat 8-4 autobodynews.com / AUGUST 2020 AUTOBODY NEWS 19

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Concern with Virus Waivers and Worker’s Comp as PA Businesses Reopen by Justin Backover, WFMZ News

As Pennsylvania businesses reopen, some are turning to waivers in order to protect themselves if a customer or employee contracts the coronavirus. “We put together waivers that explain the risks that are associated with those experiences,” said Ed Easterly, a founding member of Hoﬀman, Hlavac & Easterly in Allentown. He said waivers could be eﬀective for places like gyms and pools in order to protect them from customers or third parties that might get sick, but not employees. “On an employee perspective, I don’t generally recommend it. I don’t know if they’re going to be worth the paper they’re written on,” he said. That’s because if an employee contracts the virus at work, that would generally be a workman’s comp issue. “Employees, generally, cannot waive those types of claims and employers, generally, can’t require an employee to waive those types of claims,” Easterly said.

However, Adrian Shanker, executive director of Bradbury-Sullivan LGBT Community Center, said their worker’s comp insurance might not cover coronavirus claims. “Those policies need to cover us when we really need them and that includes the situation like this one,” he said. It is prohibiting their ability to go back to the office, and could potentially leave businesses in a position to get sued by employees if their claim is denied. “In my opinion, it’s a workman’s comp issue if you can get someone to prove they contracted this as a result of their workplace,” Easterly said. The PA Department of Labor and Industry said, in part, if your COVID-19 claim is denied, you may file a petition with the WC Office of Adjudication. For more information, visit the state’s website. https:// www.uc.pa.gov/COVID-19/Pages/ Important-Updates.aspx We thank WFMZ News for reprint permission.

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Massachusetts Resident Indicted for More Than $200K Insurance Fraud Scheme A Holbrook, MA, man was indicted in connection with damaging luxury cars bought under false pretenses in order to collect insurance proceeds, Attorney General Maura Healey announced in a news release. Dion Augustin was indicted by a statewide grand jury on seven counts of larceny over $250 by false pretenses and eight counts of motor vehicle insurance fraud. He will be arraigned in Middlesex and Norfolk Superior Courts at a later date. The attorney general’s oﬃce alleges that between August 2016 and December 2017, Augustin purchased numerous luxury vehicles, including a Bentley, a Maserati and two Fisker Karmas, and rented trucks from U-Haul in his own name and by using a series of intermediaries known as straw purchasers. Augustin allegedly obtained ﬁnancing for those purchases by misrepresenting both his own creditworthiness and that of his straw purchasers. After securing insurance on the luxury vehicles, the at-

torney general’s office alleges that Augustin deliberately damaged them and reported the damage as accidental in order to collect the insurance proceeds. The attorney general’s office began its investigation after a referral from the Massachusetts Insurance Fraud Bureau. In total, the AG’s office alleges Augustin obtained $136,940 in financing through his use of misrepresentations. The office further alleges the false insurance claims made by Augustin resulted in insurance payouts in excess of $208,700. These charges are allegations, and all defendants are innocent until proven guilty. This case is being prosecuted by Assistant Attorney General Eric Haskell, Investigator Michael Azevedo of the AG’s Insurance and Unemployment Fraud Unit, and Victim Witness Advocate Lia Panetta. Massachusetts Insurance Fraud Bureau investigators and Massachusetts State Police provided assistance to this investigation. We thank the Insurance Journal for reprint permission.

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NY Travel Advisory Extends Number of States Facing Quarantine Order to 31 by Steve Bittenbender, The Center Square

New York Gov. Andrew Cuomo continued his two-front attack on COVID-19 on July 21. He joined with New Jersey Gov. Phil Murphy and Connecticut Gov. Ned Lamont in expanding the travel advisory to include 10 additional states. While there are some exceptions, the advisory requires anyone coming from now 31 states to self-quarantine for 14 days upon arrival. Those flying into New York must provide their contact information before leaving the airport or face a $2,000 fine. The states added are Alaska, Delaware, Indiana, Maryland, Missouri, Montana, North Dakota, Nebraska, Virginia and Washington. Minnesota dropped off the list. Those states either have reported a seven-day rolling average COVID-19 testing positivity rate of 10% or a seven-day rolling average of 10 positive tests per 100,000 residents. The coronavirus continues to surge nationwide, as 41 states report infection rates going up. New York, which was once the worst-affected

state, reported just two deaths on July 20, the fewest since the beginning stages of the emergency back in March. “While today’s numbers are encouraging, we must remain vigilant,” he said.

Gentlemen’s Club on Long Island was also closed. Cuomo had suggested such action was coming as he had bemoaned the large crowds gathering in front of several establishments and ﬂouting the reopening rules on outdoor din-

“We don’t want to give out summonses. Everyone’s hurting right now, financially, economically, but if we have to, we’ll give out summonses. So, there’ll be heavier enforcement efforts by the Sheriff ’s Office and when needed, by the NYPD as well, around bars and restaurants.” — Bill de Blasio While the travel advisory expanded, the Cuomo administration also took action in the state as the Liquor Authority suspended the liquor licenses of four downstate establishments. The Brik Bar and MIA in the Astoria neighborhood in Queens as well as Maspeth Pizza in the Queens neighborhood by the same name had their licenses suspended. The Secrets

ing. Last week, he ordered updates to the rules that required patrons to buy food if they wanted a drink and banned people from walking up to bars and ordering drinks. It also appears Cuomo got his point across to New York City Mayor Bill de Blasio. Cuomo has been especially critical at the lack of enforcement from the city on social distancing and outdoor dining

issues, saying local enforcement is necessary in order to prevent cases of COVID-19 from increasing significantly. The mayor, who during his July 20 briefing noted an unnamed Astoria restaurant was ordered closed, previously had pushed back, saying that was not a job for police. However, on July 20, de Blasio’s tone had changed. He reminded residents and business owners that the reopenings were not yet a signal that life was returning to normal. “No one wants to shut down bars or restaurants, but if they do not cooperate in our efforts to contain the coronavirus, they will be shut down,” de Blasio said July 20. “We don’t want to give out summonses. Everyone’s hurting right now, financially, economically, but if we have to, we’ll give out summonses. So, there’ll be heavier enforcement efforts by the Sheriff’s Office and when needed, by the NYPD as well, around bars and restaurants.” We thank The Center Square for reprint permission.

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Continued from Cover

Serve Through Pandemic Roland Chartier. “Then we extended credit from net 30 to net 60 for our large customers. “The only change we made to our delivery service was to give all drivers face masks, gloves and supplies to sanitize their vans. Customers were no longer required to sign for delivered parts. The drivers asked for names and noted them on the route/ delivery sheets. We had some of our larger accounts order large stock orders just in case the supply chain was interrupted,” Chartier continued. “When other dealers cut staff or service to customers, we would have our outside sales people work those areas extra hard calling shops and letting them know we were servicing the area. We were able to pick up a few new shops with this tactic. It was hard work and a little luck.” In March, April and May, was your wholesale mechanical business (primarily mechanical repair parts sold to tune-up shops, brake shops and general repair shops) up or down

and by what percent? Once again, all except three dealers noted their wholesale mechanical business was down. The smallest decline was 5% and the largest 80%, with an average decline of 39%. One of the three “up” dealers was, again, Richmond Ford Lincoln. The other two were unavailable for comment.

rate, and counter people, with a 53% furlough rate; 38% of respondents dismissed both a driver and a counter person. One parts manager noted they cut hours but kept the same number of drivers. Have you altered your parts delivery service and if so, how? This was fairly evenly divided, with 49% saying yes and 51% say-

“We took our outside salespeople off the road and had them working the phones five or six hours a day contacting customers to see who was open and who was not and if there was anything we could do to help them out,” — Roland Chartier Have you had to furlough any parts department personnel and if so, who? Sixty-six percent of respondents said they had to furlough at least one person in their parts department. Some had to let multiple people go. This included 13% who furloughed road sales people and 31% who furloughed stock clerks. Those hit the hardest were delivery drivers, with a 47% furlough

LAST BUT NOT LEAST

ing no. Fortunately, for body shops, none of our respondents said they completely stopped delivering. Seventy-eight percent of those who made a change chose to limit the number of delivery runs made per day. A few chose to limit deliveries only to select accounts, one limited delivery by mileage and one limited delivery by dollar value of the order. One VW dealer in northern California noted, “We were allotted one

driver and told to make do.” Several dealers said customers were picking up parts at the dealerships in lieu of a reduced delivery capacity. Some dealers used Uber or a taxi service. How have your customers responded to changes in delivery policies? Overall, respondents noted shops understood the situation and were very accepting that business changes were necessary at the dealer level. One Honda parts manager said that because the shops were operating at reduced capacity, they did not deliver after 2 p.m., and most shops seemed to be OK with that. A parts manager at a California Acura dealer said the shops were just happy the dealership was still open and they were able to pick up parts as needed. How much trouble have you had getting parts from your primary OE brand during the height of the pandemic? Respondents said those OEs with the best fill rate during this time were, in no particular order, Honda, Toyota, Nissan, Hyundai, Kia, Mercedes-Benz and BMW. However, the degree to which other OEs may have had trouble ful-

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filling dealer orders may or may not have been caused by the pandemic. Civil unrest or other factors outside the control of the OE may have played a factor. Also, parts manager answers may have been influenced by a particular order or two or a particular part or type of part that may have been temporarily unavailable. Assuming your business has been slow, how have you used the extra time? Parts department personnel have been using the time to clean up their physical department, check bin counts to ensure inventory accuracy, painting, erecting new shelves and general reorganizing. Some used the time for training. Some updated account information. And some parts managers said with furloughed employees, there was no free time—those that remained were just as busy as before. Already, people have started driving again and business have started reopening. In view of the events of the past few months, how do you view the future of your parts dept? ▪ 33% said: “It will return to its pre-virus levels but will take several months. I expect to rehire my furloughed people

eventually.” ▪ 27% said: “I plan to retain some of the changes we made during the pandemic and there will be a ‘new normal.’” ▪ 22% said: “My parts business has changed little over the past few months. I expect to continue on business as usual.” ▪ 18% said: “It will return to its pre-virus levels in a fairly short amount of time. I expect to rehire my furloughed people fairly soon.” One GM dealer in Michigan said, “We are already back to normal. All employees have already returned.” Do you foresee any long-term negative effects from the pandemic and if so, what? Twenty-seven percent of respondents said yes, while 73% said no. Several of those that said yes said it will take a long time for people who have been out of work to recover. A parts manager at a West Coast Mercedes-Bens dealer noted, “I think this will be an ongoing, seasonal issue for a few seasons/years. The collision business will take on the majority of the decline each time.”

An unidentified parts manager from an East Coast Toyota dealership said, “We will see a new way of doing business; COD only—no charges.” Finally, an Acura parts manager said the last four months had really “put the icing on the cake.” He noted that paying for such computer programs such as CCC, Parts Trader and OPS Trax have added thousands of dollars per month to their operating costs. That, combined with other wholesale costs and a steep downturn in business, has simply made the wholesale business untenable. But rising wholesale business costs and declining profits for dealers has been an issue for 40 years or more. Fortunately for the collision and mechanical repair shops, auto dealers, being as creative and resilient as they are, always seem to find a way to mitigate these business issues and keep serving the automotive aftermarket repair industry. www.autobodynews.com

UPDATED DAILY

WIN Announces Award Winners Women’s Industry Network (WIN) presents the Cornerstone Award to those who’s actions and contributions demonstrate outstanding commitment to WIN’s mission and vision. They also set a high example for others to follow. This year, WIN Chair Cheryl Boswell awarded two board members with the Cornerstone Award, Michelle Sullivan and Jenny Anderson. Sullivan has been a mentor to so many women. During the last year, she worked to redefine sponsor opportunities and benefits. She served on the WIN executive committee in various roles and served in a leadership capacity on many committees, including membership and sponsorship.Anderson, vice chair on the WIN executive committee, served a key role in selecting and implementing a new WIN membership database and website. She too has served in many roles on the executive committee, co-chairs the marketing committee and is involved on the Most Influential Woman (MIW) award committee. Source: WIN

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Hey Toby! with Toby Chess

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@gmail.com

An Overview of Corrosion Protection Products: Part 1 of 2 on bare metal before applying body filler. 8. T or F: Honda recommends weld 1. T or F: In Honda’s latest bulletin through primer when MIG welding on corrosion, it states epoxy primer and squeeze-type resistance weldshould only be sprayed to put down ing. a light coat of epoxy primer. 9. T or F: A new quarter panel has withMotors David 2. T or F: General nowMcClune al- been installed. Painting the backside lows the use of DTM sealers, which of the rear body panel is included in have built-in corrosion protection the repair adjacent welded panel as per CCC guide. materials, on bare metal. 3. T or F: General Motors’ black 10. T or F: Toyota considers adheprimer is used on bare metal surfac- sive as corrosion barrier. 11. When replacing a factory hood, es that will be bonded. 4. T or F: Toyota allows limited use which of the following items does Toyota say need to be applied? Mark of weld boding on its vehicles. 5. T or F: Toyota has a recommend- all that apply: seam sealer, cavity ed weld through primer on its web- wax and/or chip resistance primer. with John Yoswick site. 6. T or F: Fiat Chrysler does not How many of you watched the inrecommend weld through primer on terview of Marcia and Matthew Seebachan at CIC (www.repairer weld parts. 7. T or F: Honda, like Toyota, rec- drivennews.com/2019/12/05/seeommends a coat of epoxy primer the-cic-interview-with-john-eagleLet’s start with a test on corrosion protection.

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the decision to replace the roof using adhesive, because the insurance company would not pay the extra $3,000 to weld the roof in place as outlined in the Honda repair procedures.

Fig. 2 Fig. 1

If you are not familiar with the case, John Eagle Collision had a Honda Fit come into the facility with hail damage to the roof. The shop made

Collision Repair Association of CA. with Richard Steffen

The Seebachans purchased the repaired vehicle and were involved in a front-end collision. The roof gave way and caused the quarter panels to buckle inward, puncturing the gas tank and

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Extensive corrosion

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with David M. Brown Northeast_Issue_0820.indd 26

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causing the vehicle to catch fire. Last February, at Verifax’s annual symposium, the Seebachens’ Honda Fit was on display. You can read all about it, but when you see the vehicle in person, it is a life-changing moment. The couple sued the body shop and was awarded $31.5 million. The couple is totally disabled for life, they cannot have children and Matthew is in constant pain and has some brain damage. It is imperative you watch the video to get a better understanding of what the collision repair and insurance industries and suppliers did to these two individuals for $3,000. It is shameful. It all boils down to the fact OEM procedures were not followed in order to save a few dollars. The insurance company in this case said “it specifically denies that it coerced or forced John Eagle to perform substandard repairs” and “denies that it coerced or enticed any body shop to not follow vehicle manufacturer’s procedures, cut corners, take safety shortcuts or do anything that jeopardizes members of the mo-

toring public.” What this means to the repair industry is you are all by yourself when something goes really wrong. I am going to take a look at one repair process, corrosion protection, and see if you are following OEM procedures when restoring a vehicle to its pre-loss condition. Are you using the line item “replace corrosion protection”? Let’s have an understanding up front—“replace corrosion protection” is not a line item, it is a repair process. Depending on the repairs being performed, it might need one or two items to restore corrosion protection, but in the case of quarter panels being replaced, it uses upwards of 11 or 12. I know the insurance companies put that on their estimates, but the legal document is your signed repair order with your customer (and not the insurance company’s) and you need to list each item that goes into the repair of the damaged vehicle. The other legal aspect of using the term “replace corrosion protection” is you could be liable for any and all problems in the future related to corrosion. As with the Seebachens’

case, you are all alone if you need to defend yourself in a court of law. Going forward, list each item you used in the repair process. If you do not want to list each item, use a line that states “for all corrosion protection products used in the repair, please see attached invoice.” See Fig. 3 for example of an invoice for a quarter panel replacement using the PROS program from Kent Automotive.

You can see a number of items on the Kent Automotive corrosion protection cart. There are several fine companies that make these products, but I am most familiar with the Kent line.

Fig. 4 Fig. 3

I think we need do a tutorial on the many corrosion protection items used in the repair process and what the OEMs state in their repair manuals. Fig. 4.

Weld Through Primers These primers are used between mating surfaces. You can use copper-based (with zinc) or zinc-based. (Fig. 5) Let’s see what some of the OEMs state about the use of weld through primers. Toyota wants zinc-rich weld

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through primers on all mating surface. Honda states you will use weld through primer on all mating surfaces that will be spot welded, but no WTP when

applied to all bare metal surfaces before body filler, adhesives, urethane primers and seal sealers are put on.

Fig. 6, 2K Direct to Metal Primer Fig. 5, Weld Through Primers

MIG plug welding. Fiat Chrysler states it does not want weld through primer used on its vehicles. 2K Direct to Metal Primer This primer is a two-part direct to metal system. It is the closet product to factory applied electrodeposition primer. It can be used as a bare metal primer, high build primer and/or a primer surfacer. (Fig. 6) Let’s look at what the OEMs state about epoxy primer. Toyota and Honda want a coat of epoxy primer

Fig. 7

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Honda says that the EP can be applied with a spray gun, roller, foam brush or a dobber. (Fig. 7) Nissan, Ford, GM, Audi and Mercedes-Benz recommend the use of epoxy primer to all bonding surfaces prior to the application of adhesives. Self-etching primers (Fig. 8a) are used on bare metals. The primer contains phosphoric acid and should not be used where glass adhesives are applied. If the acid is not totally cured or a seal coat is not applied, an adhesion failure will most likely occur. The same scenario applies to body fillers and seam sealers. The next sets of primers are colored self-etching primers (Fig. 8b). These primers are used on interior sheet metals that are different colors than the exterior of the vehicle. The same rules that are applied to regular self-etching primers pertains to these primers. Cavity wax (Fig 9) is a semi hardening or a hardening material that will “creep” into seams, folds and hems to seal off the parts from moisture and air. This product is applied after the vehicle has been painted because paint will not stick to it.

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Fig. 8b

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HONDA CONNECTICUT

NEW

Lia Honda of Enfield Enfield

800-221-3131 860-741-3401

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

MAINE

Berlin City Honda South Portland

800-640-6685 207-774-6685

D sba

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

Prime Honda Saco

207-391-7910 207-282-0900

Dept. H anth

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

Criswell Honda

Dept. H ms

Germantown

866-738-2886

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

Dep

LIA Honda Northampton Northampton

800-369-7889 413-586-6043

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

De rt22h

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Acura of Boston Brighton

800-254-1169 617-254-5400

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

Acura of Peabody

NEW

D kristen

Peabody

Dept. Hours: M-Sat 8-5 dbritt@acurapeabody.com

D m

800-878-3600 978-532-9110

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30 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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

NEW JERSEY

NEW YORK

PENNSYLVANIA

Clinton Honda

Sussex Honda

Lia Honda of Williamsville

Shadyside Honda

877-657-2787

800-842-0557 973-579-3500

877-659-2672 716-632-3800

800-468-2090 412-390-2908

Annandale

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

Honda of Turnersville Turnersville

800-883-0002 856-649-1584

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

Hudson Honda West New York

866-483-6917 201-868-9500

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

Newton

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

VIP Honda

North Plainfield

908-753-1680

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

Williamsville/Buffalo

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

Ray Laks Honda West Seneca

716-824-7852

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

NEW YORK

Brewster Honda

PENNSYLVANIA

Brewster

Apple Honda

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

800-960-9041 717-848-2600

845-278-4177

York

Pittsburgh

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

Shenango Honda Hermitage

800-858-0849 724-981-7106

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

Sussman Honda Roslyn

800-682-2914 215-657-3301

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

Madison Honda

Dick Ide Honda

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

800-648-0293 973-822-1710

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

Baierl Honda

802 Honda

724-940-2006

802-223-9700

Madison

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

Rossi Honda Vineland

800-893-3030 856-692-4449

Rochester

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

Syracuse

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973-705-9100

800-272-6741 518-482-2598

NEW JERSEY

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

315-471-7278

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

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

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

Berlin

Lamacchia Honda

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

Hillside

Wexford

VERMONT

Albany

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

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NEW YORK

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Acura Turnersville

Park Ave Acura

Curry Acura

Baierl Acura

888-883-2884 856-516-6060

888-690-7621 201-587-0028

800-725-2877 914-472-7406

800-246-7457 724-935-0800

Turnersville

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

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

908-704-0307

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

Elite Acura Maple Shade

856-722-9600

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

Maywood

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

Acura of Westchester Westchester

914-834-8887

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

Scarsdale

Wexford

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

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

Paragon Acura

Davis Acura

718-507-3990

866-50-ACURA 215-943-7000

Woodside

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

Smithtown Acura St. James

888-832-8220 631-366-4114

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

Langhorne

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

Sussman Acura Jenkintown

800-826-4078 215-884-6285

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

autobodynews.com / AUGUST 2020 AUTOBODY NEWS 31

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Making the Most of the ‘Parts’ Portion of Your Business Parts consistently make up 40% of total repair order dollars, so it’s well worth it for shop owners to pay careful attention to the role parts play within their business. This month, I wanted to share the first of two columns outlaying some best practices related to parts I think could improve your shop’s operations and bottom line. Best Practice: Make sure you’re accurately tracking your parts profitability. As almost anyone who has attended one of my classes knows, I’m a big proponent of the value of detailed and dead-on accurate accounting practices and profit and loss statements. That’s where good P&L account and sub-account categories are needed. You shouldn’t just track labor income, for example. “Labor” is one account; the sub-accounts include “body

labor,” “paint labor,” “frame labor,” “mechanical labor,” etc. When it comes to your parts account, I believe you need sub-accounts for OEM parts, aftermarket or non-OEM parts—which may also include accessories—and salvage or

and cavity wax. These are not paint materials. They are parts you put on the vehicle. The old adage of “junk in, junk out” applies in terms of entering parts on estimates and in your shop management and accounting systems.

A “Who Pays for What?” survey last year found that 3 in 10 shops bill the insurer for added labor or materials when a non-OEM part turns out to be unsable

recycled parts. Some people break out remanufactured parts. But one often missed sub-account is “stock parts.” Stock parts include things like seam sealer, double-sided tape, weld-through primer

You might list seam sealer as an aftermarket part on your estimate because there’s not a “stock part” option in that system. But when you transfer that estimate into your management and accounting systems, you need to

INFINITI OF NORWOOD

make sure the systems are mapped properly to reclassify that item into the proper sub-account. One of the other common accounting mistakes I see centers around parts price-matching, when you choose to use an OEM part in place of an aftermarket part, for example. When that happens, it’s important that whoever inputs your parts invoices understands how to properly change that to an OEM part within your management and accounting systems. If that doesn’t happen, the accounting system will presume you sold an aftermarket part, but the cost for that part goes into the OEM sub-account. That results in an overstatement of your profit on aftermarket parts, and understates your profit on OEM parts. Best Practice: Know your gross profit

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margins on different types of parts. Using your sub-accounts properly will help ensure you have accurate information on your parts profits by type. Most shops I see are making between 20% and 32% gross profit on OEM parts, for example. But keep in mind lots of factors can influence that. Your buying power can result in higher or lower discounts compared to other shops. Your mix of work can play a role; parts profits may be higher or lower depending on whether your repair a lot of domestic vehicles, or a lot of Asian or European import vehicles. Even what part of the country your shop is in can affect discounts and profits. Most shops are making between 30% to 45% gross profit on aftermarket parts. Again, buying power and discounts vary. Given that there aren’t list prices for recycled or salvage parts, most shops are marking up the cost of those parts. Don’t confuse mark-up with gross profit. When a shop marks up a part 20%, it is making a 17% gross profit; when it marks them up 25%, it is making a 20% gross profit.

Most shops find their margins on stock parts are similar to their margins on paint materials. Best Practice: Don’t make parts decisions based solely on gross profit margins. I’m not going to argue here about the merits of using OEM or aftermarket parts. But I will say you should take into consideration factors beyond just gross profit percentages. In some cases, for example, it may take a technician added time to install an aftermarket part. Given the average collision technician generates $100 in gross profits per hour, an added 30 minutes installing a part costs you $50, even aside from any impact on efficiency and cycle time. Can you get remunerated for that added labor? Perhaps. A “Who Pays for What?” survey last year found 29% of shops said they bill the insurer for this labor at the shop’s retail rate, and another 10% said they bill the parts vendor. But 21% said they only billed for this at a discounted labor rate, and another 22% said they most commonly didn’t bill for the labor in such situations.

On the other hand, some could argue the higher profit margin on a less expensive alternative part makes sense if an older vehicle has discontinued parts or is close to being an economic total loss. As you read through some of my other parts best practices, you’ll see other factors—such as the availability of the part, vendor performance and parts ordering efficiency—can play a role in making the best parts decision. Price or discount should not be the only considerations. Best Practice: Consider all the costs associated with ordering of parts. Those of you who have studied and worked to implement “lean principles” within your business know lean is all about eliminating waste. Waste includes the time we spend on things we do for free. I don’t know any shop including a line item on estimates or invoices for “order parts.” That’s work shops do “for free.” So if you’re not getting paid to order parts, would you rather do that two or three or even four times per job—or just once? Making that a reality starts with

100% disassembly of the vehicle to identify every broken, damaged or one-time-use part needed for that job. (I’ll discuss one-time-use parts more in next month’s column.) I also believe shops need to be using an electronic parts ordering solution. It saves time—no one should be waiting on-hold to place a parts order—and improves parts ordering accuracy. It ensures the parts vendor has the VIN, vehicle production date and other information to help them validate the parts ordered match the vehicle being repaired. Some electronic parts ordering systems automatically do this scrub of the parts order and tell you if a part doesn’t match the VIN. That’s a great feature for shops. Next month’s column will offer more best practices related to parts.

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34 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / AUGUST 2020 AUTOBODY NEWS 35

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with Stacey Phillips

Tips for Busy Body Shops

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

with Stacey Phillips

Industry Veterans Erick and Shelly Bickett Share Insight About Collision Industry When industry veteran Erick Bick- in a body shop owned by a couple ett was growing up, he aspired to be of dealerships in Anaheim, CA, and an airline pilot like his dad. He real- eventually purchased the business, Stacey Phillips ized that a 9-to-5with job wasn’t for him. Auto Center Auto Body Inc. Erick always had an interest in We operated out of a 3,500cars and eventually opened a body square-foot facility behind a used shop with his partner, Shelly Bickett, car lot. Three years later, we built a who had a background in accounting. 30,000-square-foot state-of-the-art location at an auto mall where there were a number of dealers in one location. The business eventually bewith Victoria Antonelli came part of Fix Auto USA and grew to include 165 employees at nine locations, spanning over 200,000 square feet and bringing in more than $30 million in annual gross revenues.

My SEMA

Shop Strategies

Product Innovation

with Ed Attanasio Shelly: I never intended to be in the

body shop business. I went to school for accounting and was working at New York Life Insurance. When we Erick and Shelly Bickett bought into the business, I start That was more than 35 years ago. ed doing the accounting part time. Since then, Erick and Shelly have Eventually, I worked there full time founded a number of organizations in when we purchased the company. with Gary Ledoux the collision repair industry. These in- At the time, most body shop clude Caliber Collision, the Collision managers and owners had grown up Industry Electronic Commerce Asso- in the business and didn’t have financiation (CIECA), Cyncast, Fix Auto cial or accounting experience. Erick USA and the Collision Career Insti- is a great businessman and his finantute (CCI), which supports industry cial expertise helped us a lot and set apprenticeships. us apart from our competitors. with Stacey Phillips Autobody News recently talked to Erick and Shelly about their caHow did you both get started reer highlights as well as advice to How did your involvement in shops on how to be successful in the 20 Groups eventually lead to the forfuture in light of COVID-19 and in- mation of Caliber Collision? dustry changes. Shelly: When we started our first Mike Anderson How did with you both get started business, we became involved in a in the collision repair indus- 20 Group with other like-minded try? individuals. We’ve always found the networking to be very beneficial and Erick: While in college, I took a job it’s a great way to share knowledge driving a tow truck. I eventually and best practices. It also gives you managed the tow company and then the ability to have a bigger footprint transferred to the owner’s body shop. to work with insurance companies. Later, I managed a dealer group. I Otherwise, your body shop is like a also obtained my license to become lone ship on the ocean. an insurance agent. The shop owners would mea Early on, I realized I could be sure themselves against themselves, competitive in the body shop busi- and we soon realized that we needness. Shelly was a big influencer ed to compare ourselves with other in that decision. I was 28 years old shops nationwide. These measurewhen she convinced me to go out ments and numbers are now called on my own. In 1984, we invested Key Performance Indicators (KPIs.)

OE Shop Certification

Erick: The formation of the 20 Group started with a group of California shops coming together to talk about the challenges of software we were all using. At that meeting, we realized the benefit of having discussions about business development issues and this led to the formation of our 20 Group. The industry was going through a lot of change and having the association of great operators was really important. When you are all by yourself, you’re not exposed to different viewpoints and other ways of doing things. Through the 20 Group process, we learned that the best form of continuous improvement is posting results and comparing them among the group. We were all active nationally at that time and a group of six business owners decided to form Caliber Collision in 1991.

What role have you played in creating technology for the industry?

Erick: It was that learning through the 20 Group that was an incentive to eventually start CynCast in 2000, a technology company serving thousands of collision repair shops that was later sold to Enterprise Rent-A-Car. We built technology predominantly to create transparency around shop performance. In a 20 Group, that’s fairly easy to do because everyone brings in their financials in a common format. Since there wasn’t anything already built for the industry in the late 1990s, we started the Collision Industry Electronic Commerce Association (CIECA), the only industry organization providing standard methods of electronic commerce. Having e-commerce is critically important. The way things are going now with APIs

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Product Innovation

From the Desk of Mike Anderson

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36 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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(application program interfaces), and how software components and computers interact, it’s all becoming more integrated, leading to efficiencies for the industry. At Cyncast, we built the first Estimate Management Standard (EMS) data pump. EMS was created through CIECA and we used this standard to build the first EMS pump, replicating all information automatically from remote estimating systems. In the 1990s, we created the first Customer Satisfaction Index (CSI) system in the Collision Repair Management System (CRMS) so shops could share data. We also built many web-based claims tools to be used by shops. Shelly: Another concern for shops is the technology in vehicles today. Vehicles may have technical changes from one year to the next. Technicians may think they know how to repair them, but it’s essential they look up and be well-versed in OEM procedures.

What are some of the challenges and growth opportuni-

ties in the industry? Erick: Entrepreneurs are very proud, and at the same time, they are stubborn. In the late ‘80s and early ‘90s, we watched the transition from adjusted claims to DRPs. At that time, there were highly respected industry leaders who dug in their heels, telling other shop owners not to participate in a DRP. We, on the other hand, saw the value and opportunity and leveraged significant growth from these new relationships. Early on, we worked with insurers to help develop their DRP programs. I’m finding that a similar situation is happening right now in regard to OEM certifications. We’ve been talking about OEM certifications within our Fix Auto franchise network, and we strongly feel that shops have to be certified. At the same time, we see people digging their heels in, even at our own shops asking, “What is the ROI?” Shelly and I decided to move ahead with certification, knowing that it would pay off in the future. Some shop owners don’t think it’s important to be certified with all makes and models of vehicles, but what they

don’t understand is that the first level of change will be filters on First Notice of Loss (FNOL.) As an example, that means if you aren’t certified with Nissan, you aren’t going to be repairing Nissans. Shelly: Vehicle technology is advancing rapidly. First and foremost, we need to repair cars correctly according to OEM procedures and ensure we put people back in a safe vehicle. I hope and pray for and believe that OEMs, insurers and body shops will be completely aligned in the correct repairs of vehicles. We’re starting to see that now with insurers directing work to those shops that have OEM certifications; that’s a great thing.

What are some of the effects of COVID-19 on the collision repair industry? Shelly: I think reacting quickly to COVID-19 and making changes was really important. However, I think we’ll see shops go out of business, whether that’s consolidators deciding to close locations or independents who can’t make it through. Even if

they reacted quickly, we’re going through something very significant. In a very short period of time, some shop owners have lost 50% of their business in weeks. Erick: I think it’s all about how shops respond when coming back to the new market. No doubt, it’s going to be very different than what we experienced before. As a result of the pandemic, we took out the duplication in our business and created efficiencies, but unfortunately, we had to lay off 55% of staff. We learned how to do things differently out of necessity and shame on us if we don’t come back differently and go back to doing things the same way. Smart operators are going to take what they’ve learned from this situation and develop a different structure for their businesses. Those who don’t adjust to the business climate are not going to be competitive.

What do you think the future holds for collision repairers?

Erick: One of the things that our expeSee Erick and Shelly Bickett, Page 48

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38 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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ge 48

SEMA Show Goes On with Ed Attanasio

Media and Publicity for Shops with Ed Attanasio

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

Will COVID-19 Change Your Marketing and Advertising Plans Forever? A friend of mine who owns a body that is even more evident now. shop always swore marketing and We all know by now the COadvertising were a waste of time VID-19 global pandemic is going to withhe’s Stacey and money, but now singingPhillips the change our lives forever, and the way blues. body shops operate as well. It is alrea When things are going well and dy causing body shops to reevaluate the cars are coming through the doors, their thinking about current and future many shop owners never even think advertising and marketing campaigns about marketing and advertising—unStacey Phillips til now. If you’rewith currently doing half your normal volume and walking around in a haze, I could say “I told you so,” but that’s not how I roll. With most shops reporting a 50% drop in business since mid-March, shops that neverwith thought marketing Stacey Phillips was essential are sitting around scared and unprepared. This is why I’ve always said marketing is not a “start and stop” thing. It should always be idling in to accommodate social distancing and the background and tailored based on work-from-home protocols initiated with Phillips to combat COVID-19. car counts and the timeStacey of the year, but to do zero marketing is a mistake How does the future look for

Shop Strategies

Body Shops Giving Back

Tips for Busy Body Shops My SEMA

body shops post-pandemic? Who will survive, thrive or meet their demise in a new world of market adjustments, stronger competition and an ever-increasing demand for marketing that will address and comfort consumers during these uncertain times? Some shops have already redirected their marketing efforts, while others have just eliminated them altogether. They didn’t do it because they’re anti-marketing—to survive as their car counts dropped and they were forced to furlough people. “If it comes down to making my payroll versus maintaining our social media or email marketing, it’s a pretty easy decision,” one shop manager told me recently. Shops that could afford to keep the marketing machine rolling along

began tailoring their advertising to accommodate these indeterminate several months. With fewer people in their vehicles, some shops decided to nix things like radio advertising— both satellite and terrestrial—outdoor advertising—billboards, bus boards and other signage—and some mobile apps that target drivers in their cars. Shops are now heavily pushing things like pickup/drop-off services, free car washes for customers and photo estimates, as well as safety protocols for customers and their employees. One thing that has changed dramatically during stay-in-place orders is companies have realized letting their employees work at home is not a bad thing. In fact, many businesses have found out people working virtually are even more productive. Some large high-tech companies See Advertising Plans, Page 48

Shop Strategies with Victoria Antonelli

Product Innovation with Ed Attanasio

OE Shop Certification with Gary Ledoux

Product Innovation with Stacey Phillips

From the Desk of Mike Anderson

autobodynews.com / AUGUST 2020 AUTOBODY NEWS 39

with Mike Anderson Northeast_Issue_0820.indd 39

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YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR.

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Continued from Cover

Positive Trends hicle auction company reported its mid-month “Used Vehicle Value Index” fell to 125.2 points, a 9.6% decrease from the same period a year ago. The prior record for decline in any month was 5.5% in November 2008. Manheim also pointed out, however, that when its used vehicle value index fell 10.5% over two months in the fall of 2008 at the start of the Great Recession, the horizon looked bleak then as well, yet vehicle values fully recovered seven months later. Sure enough, this year there was a strong—nearly 9%—rebound in May, Manheim reported, bringing pricing to within 1.9% of what it was a year earlier. The index then jumped another 6.6% in the first half of June, erasing much of the spring decline and reaching a level that is actually 4% higher than last June. Admittedly, there are still factors that could lead to a lot of instability in used vehicle pricing in the coming months. Rental car companies continue to send significant numbers of used vehicles to the auctions as they reduce their fleets in response to the drop in travel. Repossessions are also picking up, and while automakers delayed some turn-back dates on leases this spring during the worst of the COVID-19 impact, more of those vehicles also are expected to join the parade of used vehicles hitting the market. Still, the fact that the large decline in the spring didn’t hold should come as welcome news to collision repairers. Trafﬁc levels are getting closer to “normal” Traffic analyst firm INRIX at the end of June halted the weekly reports it was producing on traffic levels around the country given that by its system of measurement—a comparison to weekly traffic in February— personal vehicle traffic on a rolling seven-day national basis was back to 100% as of June 25. As July began, more than 34

states had traffic levels higher than in February, according to INRIX, and only three states had declines exceeding 10%: Hawaii (still down 43%), California (down 12%) and Arizona (down 11%). Forty-two of the 98 metropolitan areas INRIX tracks in the U.S. had traffic at or exceeding February levels.

Demand for gasoline, as measured by how much was being delivered to retail stations around the country, also has rebounded to close to “normal.” Back in April, according to the U.S. Energy Information Administration, gas deliveries had tumbled by 47% compared a year earlier. But by the last two weeks of June, the amount of gasoline being delivered was just 10% below what it was during the same period last year.

parts delays,” a shop in Northern California commented. But at least one in four shops said they could point to something helpful insurers were doing. Those included shops saying they were being paid for the added labor for “COVID-19 cleaning” of vehicles. Shops on Progressive’s direct repair program also said the company has followed through on its pledge in mid-April to share with those shops more than $2 million of the money the company was saving from the drop in claims Progressive and other insurers were experiencing. “Progressive gave us $1,000 to help with the reduction in work,” one Florida shop reported, a dollar figure that was confirmed by more than a half-dozen other Progressive direct repair shops. A shop owner in Hawaii said GEICO had increased shop labor rates, and shops on USAA’s direct repair program in Oregon and Illinois reported the insurer suspended the performance-based bottom line discount the shops are required to give that insurer.

Some shops point to help from insurers A poll of shops in the second half of June asked shops if they have been offered any assistance from Manheim’s used vehicle pricing index in June had rebounded insurance companies to significantly after a record-setting drop this spring, reaching help their business during levels higher than a year ago, which will help prevent more vehicles from being declared total losses the pandemic. A large majority said no. That’s a fairly sharp recovery, given “Just the opposite. Most insurers that in early April, traffic had fallen are auditing more files and becomto nearly half of what it had been ing very nitpicky,” a shop owner in just six weeks earlier. Hawaii said. It should be noted that the IN“They just want you to cover RIX data paints a little brighter pic- rental even when the pandemic caused ture of traffic around the country than it would if it compared traffic in June to what it was a year earlier. Because traffic tends to rise in the spring and summer, reaching February levels in late June still represents about a 16% decline compared to a year earlier. But 16% off is significantly better than the 47% decline in April. And analysis of traffic camera data in some cities and states indicates even more of a full recovery in some markets. Using that measurement, statewide traffic in Florida and Indiana during the third week of June, for example, Choose Original MINI Parts. was down by just 4% or less comNew York Maryland pared to the same week in 2019, and down by less than 10% in Arizona, Keeler MINI MINI of Ohio and Michigan. Latham Montgomery County Looking at vehicle counts tracked 877-553-3909 Gaithersburg on state highways in some cities also 518-785-4197 Parts 240-238-1204 Parts points to at least a near return to nor(518) 785-4710 Fax (240) 238-1493 Fax M-F 7:30-6; Sat 8-4 mal in some cities. Traffic on I-465 in M-F 7:30-6:30; Sat 8-5 miniparts@keeler.com minipartsmd@ Indianapolis in early July, for examkeelerMINI.com miniofmontgomerycounty.com ple, was actually 6% higher this year when measured against the same The Dealers Above Are Original week last year. And traffic camera MINI Parts Distributors data for that week indicates just a 10% decline on state Route 315 in Colum©2020 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are bus, OH, and only a 6% decline on registered trademarks. I-85 in Charlotte, NC.

42 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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Tesla Model 3 Rear Bumper Flies Off After Driving Through a Puddle by Gustavo Henrique Ruffo, Inside EVs

When we wrote about Tesla Model 3 units losing their rear bumpers back in 2018, we hoped the company would investigate “the issue to understand what caused it,” as it promised. See the video at https:// insideevs.com/news/433643/videotesla-model-3-rear-bumpers-fly-off/ When Tesla used to talk to the press, it also said it would contact its “customers to resolve this and ensure they are satisfied.” That implies the issue would no longer happen, but it did. Logan Derouanna even had Tesla’s help to film everything, as you can see. What the video shows is his 2019 Tesla Model 3 Standard Range Plus―bought in March 2019 and with only 14,000 miles on the clock―spontaneously lose its bumper after hitting a puddle. At least it did not see water coming out of the A-pillar. “I was driving in the rain with my girlfriend and her father, decelerating about to make a right turn

(going into the turn lane) when all of a sudden we heard a big noise,” Derouanna said. “I thought we got rear-ended. I pulled into the nearest parking lot and went outside, and the whole back of my car was off.” You can see Derouanna was at the same speed as the cars that come from behind when the accident happens. “I was in shock. I took pictures and watched the video right away,” Derouanna said. “Then I called the Tesla Roadside Assistance and walked over to where it happened. I watched dozens of cars drive over the same spot with no issues.” But Roadside Assistance never arrived. “I waited for them for over an hour, so I decided to call. They told me they were sending me a quote for how much it would cost,” Derouanna said. “I asked if they could cover it, and I kept getting transferred and transferred and transferred… One person told me it was an act of God.” By blaming the Almighty for

the bumper that wanted to be a SpaceX rocket, Tesla Service said the warranty did not cover that damage, quite a disappointment for a Tesla shareholder and longtime fan of the brand. “I love my car and had no issues up until Friday,” Derouanna said. “I really love this company, and I’m even a long-term stockholder.” Luckily, we learned before publishing this article the company changed its mind about “acts of God” and performed a miracle: it recognized the issue was its fault― with a little persuasion. “My dad had to email the manager with our lawyer, and the manager just called my dad and said it’s a known issue, and they are covering it all for me and bringing a tow to my house,” Derouanna said. “They’re ordering new parts for it and fixing it.” Looking at the pictures Derouanna sent us, we see no damages to the attachment points underneath the bumper that should hold it in place. If the car had its respective

bolts in place, these recessed niches would be split apart. The Model 3 owner will check them to confirm if they are intact as the pictures seem to show. That information is relevant because there are frequent reports of missing bolts in Tesla vehicles. If that was the case in Derouanna’s Tesla, it could explain this and other situations that keep on happening despite Tesla’s promises of sorting this out. There are similar reports at TMC Forum. Another post there claims the issue is a design flaw that makes the rear bumper hold more water than it can cope with. If you have had this problem with your Model 3, please let us know more about it. In case you have a different explanation for that, you are welcome to share it with us. Remember, Derouanna’s story had a happy ending that should be the rule for everyone that had to face the same situation. We thank Inside EVs for reprint permission.

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Oil Prices Suppressed by Low Demand, How Auto Retail May React by Jason Unrau, CBT Automotive Network

American oil prices have rallied back from an all-time low of negative $37.63 per barrel for May futures on West Texas Intermediate (WTI) crude on April 20. At that price, a seller would actually have to pay to have the buyer take their inventory—an unlikely scenario that would typically see sellers hold their product until the prices rebound. Last week, the WTI crude index was up to $41.40 per barrel before it began to regress once again. At the opening bell July 20, WTI crude was down to $40.25 per barrel. The price drop continues to reflect the decrease in demand for gasoline during the coronavirus pandemic. Fox Business is reporting usage remains below pre-pandemic consumption levels and demand is once again falling as infection rates are climbing. Relative Gas Prices Regular-grade gasoline prices tanked to $1.66 per gallon in the final week of April when oil prices

were at their lowest. In the subsequent weeks, the price has recovered and stabilized at around $2.11 per gallon on average, nationwide. At the same time last year, the price was $2.68 per gallon when WTI crude was at $60 per barrel.

Although gas prices don’t follow crude oil futures exactly, they give a relative indication for the future. With oil prices tightening up, it’s a fair assumption that fuel prices will follow suit, assuming oil continues to lose value. How It Affects the Economy A Congressional Budget Office report highlighted the shift to smaller, more fuel-efficient passenger cars when oil prices and fuel prices were near or above $3 per gallon in periods from 2005 to 2008.

Especially when oil prices hold a trend for an extended period, consumer sentiment follows suit. When gas prices are high, people drive less and purchase more conservative models. And conversely, when fuel prices are low, consumers tend to drive more, buy more vehicles, and purchase larger, less fuel-efficient models. The problem with the current economic climate is that consumers are driving less while fuel prices are down because of the coronavirus. That poses an unusual challenge for auto retail. The Effect on Auto Retail Normally, a higher volume of vehicle sales would be the result of suppressed oil prices and subsequently low fuel prices. But as the virus numbers spike in many states, consumer sentiment is reversing. The Deloitte State of the Consumer Tracker from July 13 indicates American sentiment has shifted to an increasingly anxious view; 42% now say they’re delaying large purchases. Buying intent for vehicles is down 10%.

While consumer buying intent is down, it is a minor amount right now. Dealers may have to work harder to close deals and provide exceptional service whether in-person or through online sales. But the timing is also right for automakers to once again spur on sales with aggressive incentives. As factories have resumed assembly, inventory levels are slowly recovering. Customers who may intend to keep their vehicles longer in light of the pandemic will need to perform routine maintenance and repairs to keep them functional and in good condition. It may be a time to focus on boosting revenue through the fixed operations departments while holding the line on new and used car sales. It’s an unusual position in the U.S.: low fuel prices with low consumer sentiment. However challenging, dealers always prove their resiliency during tough economic times, and this will be another example. We thank CBT Automotive Network for reprint permission.

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autobodynews.com / AUGUST 2020 AUTOBODY NEWS 45

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Diving Into the Fascinating World of Fasteners by Ed Attanasio

How many bumper covers, fender liners and plastic shields are currently sitting in the middle of the road in this country? I would guess thousands, and why are they there? Undoubtedly one of the main reasons is that one or more retainers—aka fasteners, bolts, screws, clips and rivets—failed. Why? Due to fatigue, of course, but in many cases it’s because they were incorrectly installed or the wrong ones were used.

CEO Russ Ramsey is launching a website that will enable shops to make a profit on retainers and make it easy to find the correct hardware for each repair

Since 1988, the people at Blue Vista Data Systems (BVDS) in Las Vegas, NV, have created efficient systems to turn lost money into profits when it comes to clips and fasteners. Every auto body shop on the planet has a plethora of retainers with specific applications, and with more than 700 car models out there containing an average of 30 locations requiring them, it’s a big deal. The company recently launched a new website, bluevistadata.com, containing more than 28,000 retainers, broken down by location, OE designation and cost, complete with diagrams and specs for each. With seven programmers working day and night to get the site clicking like a new Tesla, BVDS launched it July 1. The site lists every retainer and its location, and is designed so anyone can use the system without changing their current distributor. For more than three decades, BVDS has been a pioneer in the development of many of the retainer-related inventory and invoicing systems used today. CEO Russ Ramsey explained retainers are small in size and often

forgotten, but their impact on a shop’s profits can be significant. Things like retainers and other smaller items are often not included in estimates. It’s the old Catch-22—f you invest in too many retainers and they never get used, that’s obviously problematic. But if you don’t have the right ones on hand, that can be even worse, possibly cutting into your cycle time. “We have been in this business for a long time and have helped a lot of shops to make money on retainers, by making it easier to find the right ones and invoicing them correctly,” Ramsey said. “Our website has tackled the problems associated with retainers because with this system, all of the information they need is right there, with photos and drawings and an easy way to track them. “It also enables your shop personnel to find out what they might need from the OE dealer prior to the repair.” Annually, the overall number of OE retainers spike because every time an OE gives a vehicle a facelift or re-engineers it, new fasteners hit the market. If you’re not on top of it, you might be lost, especially if you’re working on a 2021 car, for example. That’s why BVDS developed the most complete and comprehensive system out there to keep track some of the smallest, but most important, parts on any automobile. Kurtis Rosenborough is the owner of Certified Auto Body Center in Las Vegas. He has been purchasing retainers from Ramsey and BVDS for at least 20 years, he said, saving him tons of money and time. “I have used their products and their systems for a long time,” he said. “When cars changed big-time back during the mid-1990s with so much plastic all around, the game changed dramatically. We’re spending approximately $2,000 every month on clips and rivets and couldn’t get reimbursed by the insurance companies until we began using their system. “We never got paid and now we do because our invoices are iron clad, listing exactly what we used and how many of them we installed. It also saves our parts manager time, because he finds the vehicle and all of the retainers are listed. Even some

of our insurance adjustors have used Blue Vista to research all of the hardware required on a particular repair.” Rosenborough’s retainers went from being an expense to becoming a profitable small but important part of his business. “There are so many clips, fasteners and other retainers on the newer vehicles, it’s mind numbing,” he said. “Too many shops think that many retainers are ‘one size fits all’ but that’s not the case. They install a Christmas Tree retainer, which is not ideal for many O.E. and does not meet any of their standards. Why would you spend hours and hours doing a great repair on a vehicle and then install the wrong or poor-quality parts?” Body Shop Manager Mike Giovengo at Friendly Ford in Las Vegas has known Ramsey for decades, and praises him as “the Man” when it comes to the world of retainers. His shop ponies up more than $18,000 retainers annually, many of which are rivets for the aluminum F150s. Getting paid for them in

the past required a little dance with his insurance companies, but now Giovengo waltzes right through and gets paid. “When it comes to things like retainers, you won’t get reimbursed unless you ask for them up front,” he said. “A lot of shops don’t keep that in mind, so when they are rushing around to finish the repair, they realize they need a few clips or rivets, for example. They just want to get the car done, so they install the retainers and eat the cost. “The numbers really can add up. We fix roughly 1,200 vehicles every month, so if every car requires $8 to $40 in retainers, that equals between $9,600 to $48,000 annually. So, Russ and BVD have helped us to get them into our repairs more easily with specific and accurate information to document the cost.” For shops who want to subscribe and use the system, the cost is $40 to $55 monthly, and there are a series of short videos to train parts managers, technicians and estimators how to use it.

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Continued from Page 39

Advertising Plans such as Oracle, Facebook and Apple have asked their employees to work virtually with no immediate plans to change the plan. So, how do body shops get their marketing messages to those people who are in their homes 90% of the day? Industry author, speaker and consultant John Stuef has held literally every position in a body shop. He entered the industry as a painter’s helper and then became a painter, a body man, manager and then owner. For many years, he owned several successful shops, and currently he’s a regional manager for a large MSO. Two things Stuef has been doing since he bought his first shop involve getting out there in the public and hitting the streets for business. “There will obviously be a lot less business out there until this thing is definitively over, which won’t truly happen until we have a vaccine that actually works,” he said. “Advertising isn’t going to get you what you need fast enough, plus it’s too expen-

sive, especially when your marketing budget is temporarily limited.” So, Stuef is suggesting a few things to do that might bring you some faster results. The old adage is advertising is buying exposure while marketing is earning it. “Tapping into proven sources of revenue is the best way to operate during these unprecedented times, especially when time and money are limited,” he said. “Whenever we wanted to create some new business, we went back to what always worked, like visiting dealerships and insurance offices. “There is no silver bullet, but actually getting in front of people and interaction have always been effective for us. You can’t imagine the power of free pens and doughnuts.” Stuef and many other shop owners, managers and marketing people are looking at how COVID-19 will affect consumer buying habits and the collision repair industry. “It’s all about short term decision-making right now and those shops that will be able to pivot quickly will have a distinct advantage,” Stuef

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said. “With so many uncertainties out there to deal with in both our professional and personal lives, a shop’s marketing should stress safety, comfort and trust more than ever.” Angel Iraola at Net Business Consulting and Solutions in Oakland, CA, is currently performing marketing triage for a wide range of small businesses during the pandemic. “With the economy taking a major hit, consumer behavior is likely to change dramatically through the end of the year and well into the first quarter of 2021,” he said. “For those with less disposable income, or considering retirement, this economic slump might result in a sharp decline to their spending habits. “Right now, consumers are wisely taking a ‘wait and see’ approach, so body shops should consider their target audience and how their lives will change as a result of the current economic climate. It’s a whole new ballgame and only those who will adapt quickly will survive.”

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riences have resulted in is that we’ve been able to predict what’s going to happen. We are going through more dramatic change, danger and opportunity than ever seen in our industry before. I think the future of the entrepreneurial collision shop is going to be dictated by how repairers respond to the changes coming. Independent collision shops owners add a ton of value and can survive if they work together and take the necessary actions to respond to market needs. At the same time, they need to remain competitive and look for efficiencies while removing duplication and waste in their businesses. If independent shops don’t do these things, they’ll likely become extinct.

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48 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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3M Shows Support of Collision Repair Industry During Pandemic by Stacey Phillips

When reports were first coming from China in early January regarding the coronavirus, Dave Gunderson, vice president of 3M’s Automotive Aftermarket Division (AAD), said the company saw the writing on the wall. Having been through previous pandemics, such as SARs, 3M executives realized the need to take action. “Every day at 3M, we think about improving lives,” said Gunderson. “Those of us working in the automotive aftermarket have been thinking about ways to support collision repairers during the pandemic.” Operating in more than 240 countries, the company manufactures and sells 52,000 different products and has more than 96,000 employees. Autobody News recently talked to Gunderson about the state of the industry during COVID-19 and what 3M has been doing over these past few months to show its support. “We realized that we needed a new operating rhythm and it had to

physically do their jobs from home. We also created new rules and training for employees. For anyone who travels and meets with customers, we’re going through How has 3M protected peo- another level of training to ensure emple during the COVID-19 re- ployees know how to properly use a respirator or face covering. It’s called strictions? fit testing. Sometimes, you see peoFirst and foremost, the top ple with a face covering over their priority is to make sure that mouths but not their noses. That’s our teams and customers are staying not effective or the proper way to safe. We have stay informed about the wear a face covering. If you wear a guidelines from the Centers respirator, it’s essential that for Disease Control and Preit fits correctly. If you have vention (CDC) and the World a beard, a respirator will not fit properly because the air Health Organization (WHO). can come around the sides. We took action to limIn our industry, it’s not just it any exposure and ensure important during COVID-19. our teams have the right measures in place. We also Dave Gunderson, If you are working with any vice president of industrial application, cerconverted all of our support to 3M’s Automotive tain respirators are required. be handled remotely. CustomAftermarket Division We are reinforcing that with er support is key for us, but (AAD) employees. we need to do it in the safest From a customer standpoint, possible way. Since June 4, we started bring- we’re learning how to reengage and ing 3M employees back to the 3M “ask before going.” In the past, 3M Center campus who aren’t able to representatives stopped by multiple be simple, yet effective,” said Gunderson. “It came down to three overarching guidelines: people, prioritization and rebound.”

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body shops on their regular routes. That has changed since COVID-19. Now, we call first and ask how the shop owners and managers want to be served. We’re finding that some request training over the phone while others prefer someone to come in person. Rather than showing up and assuming that’s OK, we are asking their preference. Our customers are very appreciative of this.

In terms of prioritization, what prompted 3M to focus on training, and what training is available?

Early on, we confronted the reality that we can’t do it all. Purposeful prioritization is more important than ever before and has been based on customer needs. We heard from the market about the need for training and have worked very hard to accelerate hands-on training. With the COVID-19 situation, we pivoted our strategy and amplified and stepped up our education, especially in the area of virtual training.

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Mon.-Fri. 7:30-5 dseward@millertransgroup.com autobodynews.com / AUGUST 2020 AUTOBODY NEWS 49

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In the past, technicians typically went online at night after work. Our goal is to help technicians sharpen their skills and support shop owners while they prepare for an economic rebound. We launched our 3M online platform in 2018. In March, we introduced a webinar series for the industry and we have more than 25 on-demand classes for techs. We also host one-hour “how-to” webinars multiple times per week and post them on YouTube. The sessions focus on a deeper understanding of body shop processes and procedures. I don’t think we’ll ever replace the need for physical training at our

are using their cars, that’s changing. We’re still going to birthday parties, but we have drive-by birthday parties. We’re going to church, but staying in our cars. In the 1950s, people looked forward to going to a drive-in movie or restaurant. Using the car was passion-driven. Today, and especially with the COVID-19 situation, cars are becoming our safe haven. Recent surveys show that people are going to be driving more after the pandemic and avoiding the use of mass transit and shared mobility due to hygiene concerns. When we think about getting into someone else’s car, we’re not sure if it has been sanitized. However, we have comfort in knowing that our cars have been cleaned. Another reason is due to congestion. For many years, there was a big push to use mass transit to reduce consumption. But now the question is becoming: do 3M is directing a majority of respirators produced to health you want to be safe or worry care workers and first responders, followed by critical about causing congestion? national infrastructure All of this is positive for internal centers, but we’ve found the collision repair industry. We need that you can do a lot of training on- to continue watching these trends closely and prepare for the future. line. We also launched an application, I understand that sometimes it “Ask Me Anything,” where techni- feels like it is going to take forevcians can reach out to 3M on the fly er. But if you look back in history, I and have a company representative think the auto aftermarket recovers answer questions in a timely manner. much faster than other sectors. People don’t need to buy anything; they What are some of the most just get back in their cars and begin significant changes you’ve to drive. seen over the last few months? How is 3M supporting the inAs the economy is opendustry as it gets ready to ramp ing back up across the U.S., up again? we’re seeing the return of miles driven faster than we were expectIt is important for us to track ing. People are getting out and startthe market and be ready for ing to drive. I think that’s good news the rebound. We want to make sure and an encouraging sign for our in- that we have the right products available and the support the industry dustry. Depending on the part of coun- needs to service customers. try, miles driven are about 75% to Prior to COVID-19, 3M was 85% of what they were pre-COVID always committed to balanced disand are continuing to increase. The tribution of respirators to our existRV industry is also recovering quite ing industrial, retail and health care customers. well, and sales are up. In this unprecedented crisis, 3M If you think about how people

tailed information on our website showing examples of how to use sanitizer on a vehicle based on information from the CDC. You would think it’s intuitive, but for some of these chemicals to work, they have to saturate or stay wet for a certain amount of time. If we can help assure customers that their cars will come back safe, clean and sanitized, then consumer confidence will help drive additional repairs. We’re a trusted leader in this industry and work 3M’s global headquarters is located in Saint Paul, MN hard to serve the needs of ture during the pandemic. customers. For the automotive af 3M is also going to be launching termarket division, our strategy and two new products for sanitization over vision are to create the future of the next couple of months. They have care and repair with our customers been thoroughly tested to ensure they and industry partners. We’re in the are safe to use on automotive interi- industry for the long-term and want ors. When developing the products, everyone to know that we’re in this we took into account efficiency and together. productivity in the shop because we understand that every minute counts For more information about 3M’s during a repair and want to create the training resources, visit: https:// most value for our market. www.3m.com/3M/en_US/learning Since safety and sanitization is marketplace/automotive-academy/ top of mind right now, we have de- collision-repair/. is directing a substantial majority of the respirators we produce to our heroic and courageous health care workers and first responders, followed by critical national infrastruc-

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50 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / AUGUST 2020 AUTOBODY NEWS 51

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Continued from Cover

Taking Action Christy Jones of R Jones Collision 1 in Des Moines, IA, offered a “pay it forward” campaign in which each of the shop’s customers in May and June received a $25 gift certificate to a local restaurant, and could designate a charity to receive a $50 donation from the shop.

getting supplements handled, “to keep cash flow up and make sure all the bills are paid and we still make money.” At Zara’s Collision Center, in Springfield, IL, “We are upholding our commitment to bringing new talent into our industry by hiring fulltime a recent high school graduate who had completed a semester-long internship during the pandemic,” shop owner Brad Zara said. “We have also brought on another recent graduate for a summer internship even though business is down.” Adam Reiter of Golden’s Paint & Body Shop in Hot Springs, AR, said the shop has continued to spend all reimbursement the shop has received for added “COVID-19 cleaning” of vehicles to buy gift cards for local businesses through a chamber of commerce program that also matches the funds to buy groceries for displaced workers. “Five thousand dollars has been raised by our shop,” Reiter said. “The gift cards will be used as prizes for customers and bonuses for employees.” Shifts in marketing Zara and Reiter are also among the shops reporting a variety of changes in their marketing efforts given what’s happening in their area. Reiter said he brought in a film crew to shoot a new television ad after the shop was “deeply cleaned and completely repainted.” “We have been utilizing clever messages on our Facebook page to let people know that we are continuing to safely serve them throughout the pandemic,” Zara said. Todd Doyle of Arrowhead Auto Body in Hermantown, MN, has taken a different approach. “We had changed our radio and TV ads to COVID-related topics, telling customers that we are open and how we are cleaning for their safety,” Doyle said. “But we have changed back all our advertising to our normal ads because I’m personally sick of all the ads talking about COVID.” John Naylor, an estimator and manager at Heritage Collision Center in Sherman, TX, said the shop has stepped up efforts to encourage and thank customers for posting online reviews.

Josh Smith, operations manager at Collision Specialists in Jackson, TN, said although the shop doesn’t like photo-based estimates, it is doing some as a selling tool. One California shop owner said he is contacting more mechanical repair shops to exchange customer referrals. Another said she has made sure all her employees “have business cards and are encouraged to hand them out.” The direct repair coordinator at a two-shop collision repair business in Pennsylvania said he’s getting more involved with several community Facebook pages. “Believe it or not, it helps immensely,” he said. Mask policies vary Among more than 200 shops responding to a survey in June, about 30% were requiring customers to wear masks to enter the shop office. “The door is locked; people have to ring a bell before they come in—with a mask,” Bill McElroyofBillMcElroyAutoBodyinBensalem, PA, said. Many shops said they are leaving it up to the customer to decide. “Whatever they are comfort-

able with. Some do, some don’t,” said Candace Dietzen, owner of The Body Shop of Barrington in Lake Barrington, IL. “We have masks available for customers upon request,” said Tyler Perkins, collision center manager at Ford of Clermont in Florida. “My employees have to wear masks whenever a customer enters,” a Georgia shop owner said. But policies regarding masks appear to be in flux from shop to shop; several shops said they had been requiring customers to wear a mask earlier, but stopped at some point in June. A shop owner in Oregon said he hadn’t been requiring it, but would if state policy called for it—something that went into effect in late June. And the percentage requiring masks for customers is somewhat under-reported because at least 10% of those saying they don’t require a mask also said such a policy isn’t needed because customers aren’t being allowed inside. “No one enters our building. We meet them in the parking lot in full PPE gear,” said Mike Kime of Kime Collision in Standish, MI.

Zara’s Collision Center, in Springfield, IL, is trying to use clever messages in its social media to let people know how the shop is continuing to safely serve them during the pandemic

“We’re offering employees later start times so they can help with family or household needs,” the owner of a Chicago area shop said. “We’re offering them four 10-hour days, if that helps, and with that, we’re actually seeing more customer volume in the evening hours.” Auto Craft Collision Center in Kewaskum, WI, extended through June a 10% discount, up to $250, it began offering customers earlier this spring. Carney Cataldo of Cataldo’s Collision in Dubois, PA, gave all employees a $1,000 bonus. A shop in the Pacific Northwest supplemented its painters’ wages to help ease the downturn in flat-rate hours, and an Arizona shop has given commission employees a guaranteed minimum salary equivalent to four days of work, and isn’t requiring them to work more than four days a week. A working manager at a shop in Iowa is letting the shop’s other technicians do more of the production work while he spends more time in the office

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52 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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plied to the underside of a vehicle to provide protection from the various road hazards, such as rocks. It also

acts as a sound deadener. You may have to make a test panel (non-included item) to determine the number of coats of material needed to match existing undercoatings. Stone guard or chip guard is applied to areas such as the bottom of

Fig. 9

Fig. 11

Fig. 10

door skins, rocker panels and quarter panels prior to refinishing. Honda and Toyota state in the repair manuals the collision repair facility needs to make sure the application will be the same texture as the OEM applied materials. In other words, you will need to make test panels and that is a non-included operation. We will discuss more corrosion protection products next month.

Continued from Page 28

SEMA Supports Legislation to Forgive All PPP Loans Less Than $150,000 SEMA joined with dozens of other trade associations in urging the U.S. Congress to pass legislation to forgive all PPP loans that are less than $150,000. The groups sent a letter to leaders of the House and Senate Small Business Committees requesting immediate passage of “The Paycheck Protection Program Small Business Forgiveness Act” (S. 4117). To date, more than 85% of the PPP loans provided to small businesses are less than $150,000. Under the current program, the loan has restrictions on how monies are spent, including a requirement that 60% be spent on payroll cost, and company officials must then spend

many hours completing paperwork to document the spending. The proposed legislation would instead simply require borrowers to submit a one-page forgiveness document. The U.S. Congress is expected to consider another COVID-19 stimulus package later in July. SEMA is urging that the PPP loan forgiveness legislation be enacted at that time, either as a stand-alone bill or as part of the stimulus package.

Corrosion Protection

For more information, contact Stuart Gosswein at stuartg@sema.org. We thank SEMA for reprint permission.

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9 Companies, 8 States Involved in U.S. DOT Automated Driving Systems Initiative by Auto Remarketing staff

Progress toward making automated driving systems better and safer took another step forward on June 15. The U.S. Department of Transportation announced nine companies and eight states have signed on as the first participants in a new agency initiative to improve the safety and testing transparency of automated driving systems. The participating companies involved in what’s called the Automated Vehicle Transparency and Engagement for Safe Testing (AV TEST) Initiative include Beep, Cruise, Fiat Chrysler Automobiles, Local Motors, Navya, Nuro, Toyota, Uber and Waymo. “We are pleased to participate in the AV TEST Initiative and applaud the USDOT and NHTSA on an initiative meant to create the needed transparency for safe deployment and operation of autonomous technology across the country,” Beep CEO Joe Moye said in a news release. “Beep has been engaged with NHTSA as part of their AV test program where we, as an autonomous service suppli-

er, share regular information on how these shuttles operate and respond in various, live scenarios interacting with pedestrians, bicyclists and mixed traffic. “This initiative will allow us and others in the AV industry to advance our collective learnings with the goal of improving public visibility and awareness of our results while building meaningful relationships among other participants and stakeholders to enhance safety for everyone,” Moye added. The states joining the project are California, Florida, Maryland, Michigan, Ohio, Pennsylvania, Texas and Utah. “Through this initiative, the deparment is creating a formal platform for federal, state and local government to coordinate and share information in a standard way,” U.S. Transportation Secretary Elaine Chao said in a news release. Officials explained the AV TEST Initiative will include a series of public events across the country to improve transparency and safety in the development and testing of automated driving systems.

Participants can share information about their activities, which the DOT said will help increase the public’s awareness of testing, centralize the department’s role in promoting safety and innovation, and build stronger relationships among federal, state and local governments and stakeholders. Additionally, the agency mentioned this voluntary initiative will provide an online, public-facing platform for sharing automated driving systems testing activities and other safety-related information with the public. Officials noted online mapping tools may show testing locations at the local, state and national levels, as well as testing activity data, which may include dates, frequency, vehicle counts and routes. “Automated driving system technologies hold the promise to help prevent fatal crashes, save lives and reduce the severity of the crashes that do occur,” said James Owens, deputy administrator of the National Highway Traffic Safety Administration. “Under the leadership of Secretary Chao, NHTSA is committed to

Amazon Acquires Autonomous Ride-Hailing Group Amazon has signed an agreement to acquire Zoox, a ride-hailing group that developes autonomous technology from the ground up with passengers frontof-mind.

Aicha Evans, Zoox CEO, and Jesse Levinson, Zoox co-founder and CTO, will continue to lead Zoox as a standalone business as they innovate. “Zoox is working to imagine, invent and design a worldclass autonomous ride-hailing experience,” Jeff Wilke, Amazon’s CEO of worldwide consumer, said in a statement. “Like Amazon, Zoox is passionate about innovation and about its customers, and we’re excited to

help the talented Zoox team to bring their vision to reality in the years ahead.” Zoox started in 2014 with the vision of purpose-built, zero-emissions vehicles designed for autonomous ride-hailing, along with an end-to-end autonomy software stack. Zoox’s ground-up vehicle focuses on the ride-hailing customer, with integrated features designed to provide a revolutionary passenger experience. “This acquisition solidifies Zoox’s impact on the autonomous driving industry,” said Evans. “We have made great strides with our purpose-built approach to safe, autonomous mobility, and our exceptionally talented team working every day to realize that vision. We now have an even greater opportunity to realize a fully autonomous future.” Completion of this transaction is subject to customary closing conditions.

facilitating the safe testing, development and eventual deployment of advanced vehicle safety technologies through enhanced transparency and information sharing with all our state and local partners,” Owens said. The agency indicated the AV TEST Initiative will be open to all stakeholders involved in the safe development and testing of automated driving system vehicles. At the state and local levels, participants may include departments of motor vehicles, departments of transportation, highway safety offices and city governments. At the automotive industry level, participants may include developers, manufacturers, suppliers, operators and testers. Officials emphasized this initiative aligns with the department’s leadership on automated driving system vehicles, including AV 4.0: Ensuring American Leadership in Automated Vehicle Technologies. We thank Auto Remarketing for reprint permission.

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54 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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Contact your local Volkswagen dealer or visit Wholesale.VWServiceandParts.com to place your Genuine VW Collision Parts order today. “Volkswagen” and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2020 Volkswagen of America, Inc.

autobodynews.com / AUGUST 2020 AUTOBODY NEWS 55

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Autobody News Writer Recognized for ‘Solving the Tech Shortage’ Column Congratulations to Stacey Phillips, freelance writer at Autobody News, for receiving an award for her column, “Solving the Tech Shortage.” Phillips received a 2020 APEX Award for Publication Excellence from Communications Concepts in July. “I’m honored to have received this award,” said Phillips. “I am greatly appreciative of all the individuals I interviewed over the past year who have shared ways to hire and retain technicians for the future.” Phillips is a freelance writer for the automotive industry based in Southern California and owns Radiant Writing & Communications. As the prior assistant editor of Autobody News, Phillips has written for the publication since 2014. Her regular columns include “Best Body Shops’ Tips,” “Shop Strategies” and “Solving the Tech Shortage.” In addition, she assists the Collision Industry Electronic Commerce Association (CIECA) with marketing and communications and has co-authored two books, including “The Secrets of America’s

Greatest Body Shops.” Phillips initiated the column in January 2019 after talking to Jeff Smith, a collision repair instructor at the Northeast Arkansas Career and Technical Center, about the overwhelming shortage of technicians. “At the time, collision repair shop owners and managers faced a shared challenge: how and where to find new technicians,” said Phillips. “My intent on starting this column was to come up ways for the industry to share ideas on how to solve this problem.” Since then, Phillips has profiled a variety of individuals and organizations about the ways they are approaching the problem, including the Collision Career Institute (CCI), the Collision Repair Education Foundation (CREF), the Inter-Industry Conference on Auto Collision Repair (I-CAR), the March Taylor Memorial Foundation, in-prison automotive program instructors and technical schoolteachers. Her column can be found online at www.autobodynews.com.

Most Expensive States for Car Insurance in 2020 by Denny Jacob, PropertyCasualty360

In a country as large and diverse as the U.S., each state offers a range of pros and cons across a number of aspects. Whether it’s the cost of being a homeowner, the proximity to nature or their state and local tax rates, there is something for everyone. While it might not be the first factor someone might tout when talking about their state, the cost of car insurance is an important quality for many. An analysis by Insure.com found that the average cost of car insurance in 16 states is more than $100 above the national average, which came in at $1,517 this year. What state an insured lives in is a significant factor when determining the cost of car insurance, but insurers also consider gender, age, the vehicle and credit score. State-specific factors like insurance laws, claim and crime rates, and the number of uninsured drivers can influence the premium as well.

Whether you live in an expensive state or a cheap state, Insure.com says to shop at least three insurers and “always make sure you’re comparing apples to apples when it comes to coverage levels and deductibles.” And when buying a new car, it’s always wise to shop for insurance as you look for the car so the premium won’t tear through your budget. Insure.com commissioned Quadrant Information Services to calculate auto insurance rates from six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm) in 10 ZIP codes per state. It averaged rates in each state for the cheapest-to-insure 2020 model-year versions of America’s 20 best-selling vehicles as of January and ranked each state by that average. With this in mind, explore the slideshow to see Insure.com’s list of the most expensive states for car insurance in 2020. We thank PropertyCasualty360 for reprint permission.

Tesla is Worth More Than Volkswagen, Toyota and Honda Combined by Joey Klender, Teslarati

Tesla officially has a higher valuation than Toyota, Volkswagen and Honda combined thanks to a significant surge in the electric automaker’s stock price over the past week. Last month we compared its value to GM, Ford and FCA. Toyota, Volkswagen and Honda currently sit at the second, third and fourth-most valuable automakers in the world, respectively. However, while the three companies are among the largest car companies in the world, their valuation combined has fallen behind that of Tesla’s, which has gained nearly $400 in value in just one week. On July 6, the company’s stock closed at $1,371.00. At the time of writing, TSLA stock was trading at $1,732.61. Tesla’s market cap currently sits at $324.93 billion, while Toyota ($176.49B), Volkswagen ($80.83B) and Honda ($45.56B) are worth $302.88B combined. TSLA has enjoyed a surge in value this year of more than 220% so far, providing exponen-

tial gains to its investors. This fact is especially impressive considering the company has experienced closures at both of its vehicle production facilities in Fremont, CA, and Shanghai, China, due to the COVID-19 pandemic. The stock’s value has inflated primarily due to Tesla’s technological developments, improvements in battery capabilities, production efficiencies and delivery figures that have managed to outperform Wall Street’s estimations. Tesla’s valuation goes far past its stance as an automaker. The company is involved in sustainable energy generation and storage, and its surge as a company focused on the longevity of the Earth and freeing its citizens from the dependence on deadly fossil fuels. Tesla has been a leader in transitioning the massive worldwide automotive industry to a sustainable, electric-based sector that is both fun and great for the environment. After the Model 3 was released in 2017, Tesla was official-

ly recognized as a mass-market car company that offered premium, sustainable vehicles that most families could afford to purchase. Now that the company has two vehicles that fit the price ranges of most families, Tesla has managed to extend its reach to more than just the wealthy and well off. This scenario was detailed in Elon Musk’s “Master Plan,” and it has all come to fruition. The future also looks bright for TSLA. On a recent episode of CNBC’s Squawk Box, Oppenheimer analyst Colin Rusch stated Tesla is showing evidence of a 50% to 70% upside within the next four to five years. Based on Tesla’s significant advantages in electric transportation thanks to automotive technology and battery developments, Rusch believes the company’s valuation will continue to grow by 2025. Tesla will detail the Q2 2020 results in an Earnings Call on July 22. We thank Teslarati for reprint permission.

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56 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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I-CAR® Names Peevy to New Role

2020 SEMA Show Safety Announced

Lucid to Open 20 Retail and Service Locations in North America Through 2021

I-CAR®, the Inter-Industry Conference on Auto Collision Repair, announced July 15 the addition of renowned collision repair industry veteran Jeff Peevy to its executive leadership team as vice president of technical products, programs and services. In this new role, which becomes effective at the end of July, Peevy will spearhead the strategic development and growth of all I-CAR curriculum and technical relations efforts while leveraging his 20-plus years of executive management experience in the industry. Most recently, Peevy served as president of the Automotive Management Institute (AMI) since 2015, and as the 2019-20 chairman of the Collision Industry Conference (CIC.) He also shares a long and successful history with I-CAR, where he served as senior director of field operations and led I-CAR’s collision repair segment team before his AMI post. Source: I-CAR

SEMA Showgoers will be required to wear a face mask or a face shield during the 2020 event, as part of a proactive plan to prevent the spreading of germs and provide exhibitors and attendees with a safe environment where they will be able to conduct business. With 1,800 exhibiting companies participating in the upcoming event on Nov. 3-6 in Las Vegas, NV, the annual B2B SEMA Show will include several precautions and preventive safety measures. In addition to adhering to best practices, Show organizers released a video that outlines additional precautions that will be taken to focus on the health and well-being of those at the SEMA Show. The guidelines, which include the following, are posted at www. semashow.com.

by Brad Anderson, CarScoops

Source: SEMA

Lucid Motors has revealed it will open 20 retail locations and service centers across North America by the end of 2021. The electric vehicle manufacturer will refer to these outlets as Lucid Studios. Facilities set to open first will include a studio at Lucid’s headquarters in Newark, CA, a Los Angeles Studio and Los Angeles Service Center in Beverly Hills at the same site previously leased by McLaren Beverly Hills, a San Jose Studio, Miami Studio, West Palm Beach Studio, New York City Studio, and a DC Metro Studio in Tysons, VA. Lucid will adopt a direct-to-consumer model much like Tesla and offer “a digitally enhanced luxury experience tailored to each customer’s purchase and ownership preferences.” Customers will be able to visit a studio in person, make their inquiries entirely online or any combination of the two. Lucid says it selected locations with relatively small

footprints in high-traffic areas. “Just as the Lucid Air is meticulously designed and engineered to be a new benchmark in the luxury electric car segment, we designed Lucid Studios to be engaging, to start conversations and to help educate people about the performance and efficiency benchmarks possible in an electric vehicle,” CEO and CTO of Lucid Motors Peter Rawlinson said. “A Lucid Studio is a place for people to learn about our unique brand while supporting every facet of the customer journey.” The long-awaited Lucid Air will premiere on Sept. 9. We will have to wait until then to get finalized specifications, but understand the Air will be able to cover more than 400 miles (644 km) on a single charge while being able to sprint to 60 mph (96 km/h) in roughly 2.5 seconds and, in all likelihood, hit a top speed of more than 200 mph (322 km/h.) We thank CarScoops for reprint permission.

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Tesla Not Ahead in Lithium-Ion Battery Tech, Says Audi CEO: ‘We’re Catching Up’ by Simon Alvarez, Teslarati

There are very few automakers in the market today as serious about electric car battery tech as Tesla. Over the years, Tesla has been hard at work improving its batteries, and as the company heads towards its highly anticipated Battery Day event, it is becoming more and more evident the electric car maker is one of, if not the, leader in lithium-ion batteries for electric cars. That is, of course, if one does not ask Audi CEO Markus Duesmann. In a recent talk with German magazine Focus.de, the Audi CEO, together with Bavaria’s Prime Minister Markus Söder, talked about the advent of electric mobility, the end of gas powered cars and up and coming automakers like Tesla. CEO noted the pandemic will likely accelerate change in the auto industry. With the world having been shaken by the virus, Germany actually has a chance to recapture some of the market it has lost to other automakers. The country’s car industry, after, all is in a crisis, with 46% of employees still on

short-time work as of June. To accomplish this, Söder noted it would be necessary for the country’s auto industry to take a “real quantum leap.” “The time of the classic humming-humming car with a lot of horsepower is over,” he said. Duesmann, for his part, noted mobility can only be solved with technology, and digitization must be driven forward. With the talk surrounding next generation vehicles powered by sustainable solutions, the moderator of the talk asked the Audi CEO and the prime minister if Tesla has already overtaken Germany’s best. To this question, Duesmann had a ready retort. The CEO stated he does not see Tesla being ahead in lithium-ion battery tech at all. With this, it would not be long before Germany’s automakers catch up. “We’re catching up with seven-mile boots,” Duesmann said. The prime minister was in agreement, stating he also does not see Tesla being far ahead. Söder did say he is a great admirer of Tesla CEO Elon Musk’s work in the

space industry. But in terms of the auto market, other companies can do what Tesla can accomplish, and Germany’s carmakers may even be ahead in some aspects. “Tesla is not bad, but others can do it too. We can stay ahead in engineering,” the prime minister remarked. Interestingly enough, it will only be a matter of time before Tesla manages to capitalize on Germany’s car making mastery. The electric car maker is currently building Gigafactory Berlin, a facility that is expected to start operations next year by producing the Model Y. As noted by Spiegel Online in a report about the crossover, the vehicle is nearly perfect, and it is only weighed down by its build quality, which still falls below Germany’s best. But with Gigafactory Berlin in the picture, Tesla customers in the region could look forward to acquiring vehicles with classic German build quality and the renowned tech of Tesla. We thank Teslarati for reprint permission.

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CAR Coalition Urges Data Control The Consumer Access to Repair (CAR) Coalition recently sent a letter to members of the U.S. House of Representatives’ Committee on Energy and Commerce, speaking out against a previous request on behalf of auto manufacturers opposing consumers’ choice over the use of the data generated by telematics in their vehicles. According to the CAR Coalition, limiting that choice is driving out repair competition, while the consumer cost of auto repair has risen dramatically. The previous request, in a letter to the same committee sent by the Alliance for Automotive Innovation on behalf of auto manufacturers, called for a fiveyear federal preemption of any state action regarding access to telematics data. The CAR Coaltion said such a move which would only strengthen the manufacturers’ developing monopoly of the automotive collision repair chain. Source: CAR Coalition

Tesla Battery Day Gets a Concrete Date by Simon Alvarez, Teslarati

It turns out the long wait for Tesla’s highly-anticipated Battery Day event will be a bit longer, but it will certainly be well worth the wait. In a recent announcement on Twitter, Tesla CEO Elon Musk stated the tentative date for Battery Day will be Sept. 15. But that’s not all, as the event will be held along with the Annual Shareholder Meeting. Musk posted the announcement this weekend, later adding the event will be held in Fremont, CA. Musk noted Battery Day will include a tour of Tesla’s cell production system, among other things. Considering the location of the event, it appears Tesla may be bringing investors to its secret and rumored skunkworks lab located at the company’s Kato Road facility, just a few minutes away from the Fremont plant. Speculations are abounding about what Tesla would reveal in its Battery Day event. The last time Tesla held a similar event was Autonomy Day in April 2019, and that included a deep dive and discussion

of the company’s custom Hardware 3 chip. Everything about HW3, from its design to its performance, was discussed intensively. This same amount of attention to detail is expected for Battery Day.

In classic Elon Musk fashion, Battery Day has experienced some delays, a lot of it due to the coronavirus pandemic. If Musk’s recent Twitter announcement is any indication, this delay is due, at least in part, to the fact the company seems determined to show its shareholders what its battery cell technology is like firsthand. And considering how impressive Tesla’s batteries already are today, it’s pretty exciting to see what the company has in store for the future. Previous reports point to Tesla

discussing its next-generation battery cells at Battery Day. These cells are rumored to be capable of lasting a million miles if used in electric vehicles, and decades if deployed as battery storage devices. If Tesla does discuss cells that match these speculations, then the entire electric vehicle industry—and the shift to sustainability as a whole—will likely change forever. Among the remaining roadblocks for widespread EV adoption are the limitations of the current generations of batteries. Batteries today are capable in their own right, but they are still more expensive compared to a traditional internal combustion engine. Tesla’s rumored million-mile batteries are expected to reach, and perhaps even go beyond, price parity with gas-powered cars. By doing so, Tesla would be able to accelerate the EV transition even more. We thank Teslarati for reprint permission.

Industry Legend Dick Schoonover Dies Dick Schoonover, of Woodbury, Little Lakes-Little League and MN, who grew his family auto body Lake Region Youth Hockey. He was a student of the game shop into a nationally-recognized company while helping to advance and he shared his competitive spirit with all who played for the collision repair indushim. try as a whole, died July 9, In addition to his love 2020. He was 84. for family, Dick loved the Dick graduated from family business. In 1973, Murray High School in he moved Schoonover 1955, where he had played Auto Rebuild to Shorevfootball, basketball and iew. Dick was an innovabaseball, earning a letter in all three sports over four Dick Schoonover tor and was always two steps ahead of the comyears. That was also where petition. He set the bar high for he met the love of his life, Beryl. Dick and Beryl were married customer service and quality and in 1956 and started their family in made sure his employees had the St. Paul, MN. Dick went to work best tools, equipment and training for his dad, Chuck, at the family available. During his leadership, business, Schoonover Auto Re- he grew the company to a nationbuild. Dick took it over in the mid ally recognized repair facility. Dick was involved in the ‘60s after Chuck’s early passing. Dick and Beryl built a home collision repair industry, serving in Shoreview, MN, and raised on many boards and committees their three sons. Dick balanced at the state and national level for small business ownership with ASA, ASC, I-CAR and others. family time. He encouraged the Dick helped develop legislation, boys to be active in sports and rules and procedures granting helped them develop a love of the rights to consumers and leveling game, especially hockey. Over the the playing field with auto insuryears, Dick coached Legion ball, ers.

In his spare time, Dick gave back to the community that meant so much to him. Besides coaching youth sports, he served on the Northwest YMCA board, was a Roseville Rotarian and sponsored many youth teams year after year. He and Beryl enjoyed golfing and were members of Midland Hills and Indian Hills Golf clubs. He was an avid reader and would read anything related to news, politics and business. He also loved cars and shared that love with his sons. Dick was a man of many talents: businessman, entrepreneur, visionary, mentor, coach. Most importantly, he was a loving man who would do anything for his family. His drive for excellence, integrity, hard work and dedication proved anything could be achieved, and any obstacle could be overcome. He often used the phrase “tough mustang” to encourage family members. With Beryl, his wife of 64 years, at his side, Dick passed away at home. In addition to his wife, Dick is survived by sons Jeff (London Savant), Scott and Mike (Gayle); grandchildren Alyssa, Lindsay

(Ben), Courtney, Abby (Drew), Anna and Matthew; great-grandchildren Jaxon, Maddox, Keegan and Josie; sister Jodie Roche (Michael) and nephew Ronan (Rebecca). He was preceded in death by grandson Patrick. The Schoonover family would like to thank the caregivers from St. Therese and CareAparent, who provided comfort, care, companionship and support while Dick was in hospice. A memorial services will be held at a later date. Memorials preferred to Patrick Schoonover Heart Foundation, www.playforpatrick.org, or King of Kings Lutheran Church, Woodbury, www.kingofkingswoodbury. org. Source: Tribute Archive

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