August 2021 Northeast Edition by Autobody News

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SEMA Intensifies Advocacy Efforts, Connects with Congressional Reps from Washington, D.C. by Juan Torres

SEMA representatives escalated their advocacy efforts by taking part in nearly 100 meetings with Republican and Democratic lawmakers from Capitol Hill during June and July. As part of the virtual 2021 SEMA Washington Rally, more than 60 SEMA-member companies joined SEMA staff in a record-high number of meetings with officials from the U.S. House of Representatives and Senate. Discussions focused on top industry issues, chal-

lenges and concerns, chief among them passage of the Recognizing the Protection of Motorsports (RPM) Act. SEMA members also spoke with federal lawmakers in opposition to electric vehicle mandates while voicing support for increased federal investments in roads and bridges, protecting motorized offroad recreational access, tax credits for businesses participating in trade shows and ensuring aftermarket businesses can market products that are interoperable with vehicles that See SEMA Intensifies Advocacy, Page 23

Hatboro, PA, Auto Body Shop Loses Commonwealth Court Appeal Over Zoning by Joe Campisi, Patch

A state appellate court panel affirmed a Montgomery County Court judge’s ruling upholding a Hatboro, PA, Zoning Hearing Board decision

that denied a variance sought by an auto body shop to operate on a local property. A three-judge Commonwealth Court panel found no error in a trial court’s decision to uphold a February 2019 decision by the zoning hearing board in Hatboro, which denied an application by RAV Collision Services seeking to run its business on a property owned by local businessman Joseph Doyle. A state court judge in Montgomery County, which took up the appeal, subsequently upheld the zoning hearSee Appeal Over Zoning, Page 22

39 YEARS

AUTOBODYNEWS.COM Vol. 12 / Issue 5 / August 2021

GM Promises to Leave No One Behind as it Moves to an All-Electric Future by Jamie L. LaReau, Detroit Free Press

General Motors says it wants to make sure all of its customers and its employees are included in its transition to an all-electric car company. On June 29, GM CEO Mary Barra made several promises to achieve that goal, including announcing the creation of a $25 million Climate Equity Fund. By equity, that means no one is left behind as GM transforms the company. The idea is that all people have access to electrification regardless of socioeconomic status, race or

other situations. It means that electrification will benefit society, said Jessica James, a GM spokeswoman. “Climate change does not impact every community equally,” Barra said at the Aspen Ideas Festival. “As we move to an all-electric, zero-emissions future, it is on us to lead positive change and implement inclusive solutions that bring everyone along, especially our employees and communities.” The new fund will be used to support programs that help people See All-Electric Future, Page 24

Predicting What the Collision Repair Industry Will Look Like in 2035 by John Yoswick

Where will the collision repair industry be in 2035? That daunting question was tackled this spring by the Future Disruptions Committee at the Collision Industry Conference (CIC). As the panel discussion began, Sean Carey of SCG Management Consultants pointed to a weakness in the exercise itself. “Rather than take yourself forward 14 years, take yourself back 14 years,” Carey suggested. Think about comparing a 14-year-old Honda Accord to a current Honda Accord, he said: the differences in the vehicle itself, in the repair procedures used, in how estimating is done and how the entire claim is settled. “It was vastly different from where we are today, and in 14 years it will be vastly different again,” Carey said. “It’s not always easy to conceive what’s going to happen in the future. We’re guessing at best.” With that preface, Carey said

he foresees “mass consolidation” in the industry, with the formation of at least one cross-functional entity that includes an insurance company, technology companies and a large repairer group―its “own ecosystem.” “From a moment that vehicle is in an incident, this organization, under one single ownership, takes care of everything,” Carey said. “Data is going to make that very, very possible.” Direct repair and OEM certified shop networks will give way to licensed shops, each “capable of repairing only particular types of vehicles,” he said. “This mainstream, ‘bring it all in on Monday, we’ll ship it all out by Friday,’ will be a thing of the past. [Vehicles] will not be allowed to go to an unlicensed shop.” There will be far fewer vehicle repairs, but what there are will be very costly, he predicted. “Severity will climb through the roof,” he said. “Severity today will seem laughable. Think tens of thouSee Look Like in 2035, Page 30

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by Semiconductor Shortage ��58 CCC ONE Estimating-IQ Brings Proven AI to Collision Repairers ��26 Curry Elected President of UAW ��10 Ford F-150 Lightning Details Reveal Surprising Premium Over Tesla Cybertruck ��4

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Ford Names Croley Chief Policy Officer ��26

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Hatboro, PA, Auto Body Shop Loses Commonwealth Court Appeal Over Zoning ��1 MA Auto Body Shop Owner Sentenced After Own Surveillance Camera Helps Convict Him of Fraud ��6 NY Governor’s Pen Ready to Silence Loud Vehicles ��14 Reimagined 2021 New York International Auto Show Announced ��8 Tesla Model Y Taxi Fleet Successfully Blocked by NY Commission ��18

Anderson - Use Tech to Kick ‘Timesuckers’ Out of Your Collision Repair Shop ��38 Yoswick - GM Scales Back Post-Crash Inspections Requirement for Collision Repair Shops ��42

GM Recalls 410,000 Trucks with Dangerous Airbag Inflators ��56 Help Wanted: U.S. Automobile Dealers Struggle to Hire Employees While Business Booms ��4 Is State Farm’s New Offer One the Industry Can’t Refuse? ��28 June CIECAST Explores Future of AI in the Collision Repair Industry ��34

LKQ Corporation’s Elitek® Vehicle Services Expands into Remote Automotive

Predicting What the Collision Repair Industry Will Look Like in 2035 ��1 Segments of Specialty-Equipment Industry See Growth During Pandemic ��60

Connects with Congressional Reps

Sherwin-Williams Earns Top Honors ��8

‘Who Pays for What?’ Survey: Auto Body

Strategies to Help Auto Body Shops Navigate

AAPEX 2021 Opens Nominations ��56 Americans Cut Driving Nearly in Half in Early Stage of COVID Crisis ��50 Art, Innovation and Car Design Collide in the Life of Michael Santoro ��52

Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

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Mazda Wholesale Parts Dealers �� 58

Audi Wholesale Parts Dealers �� 61

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Axalta Coating Systems �� 11

Mercedes-Benz of Wilmington �� 23

BMW Wholesale Parts Dealers ��48-49

Mercedes-Benz Wholesale Parts Dealers �� 57

Cadillac of Mahwah �� 35

MINI Wholesale Parts Dealers �� 46

CARSTAR �� 25

MOPAR Wholesale Parts Dealers ��36-37

Central Avenue Chrysler-Jeep-Dodge-Ram �� 27

New Holland Ford �� 18

Certified Automotive Parts Association �� 24

New Holland Toyota �� 42

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Colad/EMM Specialties �� 64

Northstar Kia �� 44

Colonial Automotive Group �� 47

Nucar �� 41

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PPG �� 7

Equalizer Industries, Inc �� 28

Pro Spot International �� 2

Flemington Auto Group �� 39

Rafferty Subaru �� 8

Ford Wholesale Parts Dealers �� 59

Rockland Nissan �� 8

GM Wholesale Parts Dealers �� 51

SATA Dan-Am Company �� 9

Hoffman Auto Group �� 29

Schultz Ford �� 21

Honda-Acura Wholesale Parts Dealers �31, 32-33

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Jeff D’Ambrosio Volkswagen �� 40

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Kia Motors Wholesale Parts Dealers �� 53

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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. ©2021 Adamantine Media LLC.

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Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, Johnny Barrett (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 Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

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CONTENTS

the Semiconductor Microchip Shortage ��44 Tesla Wanted $16,000 for a Simple $700 Model 3 Repair ��55 Tradiebot: New Collision Repair Training Software ��40 Used Vehicle Prices Expected to Climb to Record Highs as New Vehicle Prices

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Audi Selects Mobileum ��55

Watch Out for Cops in F-150s ��28

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Help Wanted: U.S. Automobile Dealers Struggle to Hire Employees While Business Booms The U.S. economy is showing signs of returning to pre-pandemic levels, and the auto business is booming. Like many industries, U.S. automotive retail is struggling to find enough employees for dealerships to be fully staffed, much less meet their 2021 growth goals. In the 2021 Cox Automotive Dealership Staffing Study published June 21, 72% of franchised auto dealers surveyed say finding and hiring the right employees is currently a challenge. A majority of dealership leaders—approximately 65%—report that they plan to increase the total number of employees in the dealership this year, while abotu 34% said they plan to maintain their staffing level. Expanding the number of service technicians is the highest priority for dealership leaders, with 60% planning to increase the number of service technicians this year, followed by new-vehicle sales associates (54%) and used-vehicle sales associates (48%). Dealers’ desire to grow their

operations comes at a time when business is strong. According to the Q2 Cox Automotive Dealer Sentiment Index, sentiment related to the current market reached a record high in Q2 for both franchised and independent dealers, and the profit index set a record high as well. The three-month market outlook index reading is an increase from last quarter and, importantly, equal to Q1 2020, the final preCOVID-19 reading. “While the outlook for dealerships has never been better, dealers state that finding employees is a challenge due to people not returning to their positions or the workforce post-pandemic,” said Angela Drake, senior industry intelligence manager, Cox Automotive. “The traditional lack of interest in working at dealerships is exacerbated this year by pandemic-related stimulus money and enhanced unemployment benefits. “The good news is that our study found overall interest in working at dealerships is growing, and a growing number of employees in non-automotive jobs view

their skill sets as transferable to the dealership.” Job Seekers May Have Skills Dealers Desire, And Not Know It When asking potential job seekers why they would not want to work at a dealership, 32% indicate they did not have the necessary skills. However, the 2021 Dealership Staffing Study finds Heavy Digital Dealers, those dealers that significantly invest in digital retailing tools, say the right employee doesn’t need automotive experience. Instead, they are looking for the following characteristics: • Willing to go above and beyond their specific job responsibilities • Good communicators across all communication channels (verbal, written, video, etc.) • Can easily adapt to a quickly changing work environment • Tech-savvy and comfortable with learning new technology “As pandemic unemployment assistance winds down, dealers have

the opportunity to promote their job openings to a new group of job seekers who may not have considered working in a dealership,” said Bob Kostkan, senior director at Cox Automotive University. “Job seekers with restaurant and retail experience usually have the mindset, potential and skills to be successful at a dealership but may not realize that automotive experience isn’t a prerequisite for many of the open positions. “The most successful dealers offer employees onboarding and comprehensive career development training beyond what their OEMs offer to enhance engagement and retention. In fact, the top two most popular training enhancements indicated in the Dealership Staffing Study for now and into the future are online/digital tools and communication skills.” Source: Cox Automotive

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Ford F-150 Lightning Details Reveal Surprising Premium Over Tesla Cybertruck by Simon Alvarez, Teslarati

The Ford F-150 Lightning is arguably one of the most impressive all-electric pickups on the market today. Starting at a very aggressive price and designed for the F-150’s classic buyers, the Lightning seemed like a great shoo-in as the electric truck market’s next best-seller. Ford, however, has been reserved about the Lightning’s full pricing details, at least until now. And if the recent information about the F-150 Lightning proves accurate, it would appear Ford’s electric pickup will command a pretty steep premium over the Tesla Cybertruck. Users at the Ford enthusiast forum F150Gen14 recently shared a questionnaire reportedly sent by the veteran automaker. The questionnaire, which seemed designed to determine which features are preferred by consumers, featured a list of available F-150 Lightning variants and their respective options and prices. This

included every trim of the Lightning, from the Pro base model to the top-tier Lightning Platinum series.

Credit: Ford Motor Company

Based on the information from the carmaker, non-commercial buyers of the Ford F-150 Lightning could expect to shell out about $53,000 for the XLT trim, but that’s a truck with a conservative 230 miles of estimated range. Customers who prefer an XLT Lightning with longer range could expect to pay an additional $7,000 for its 300-mile battery

4 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

pack. This is true for the XLT + Premium Package and Lariat variants as well. The Ford F-150 Lightning Lariat was already listed with a starting price of $67,474, or close to the starting price of the 500-mile tri-motor Tesla Cybertruck, which starts at $69,990. That’s pricey for a vehicle that still starts with only 230 miles of range. Fortunately, Ford’s 300-mile battery becomes standard with the F-150 Lightning Lariat + Premium Package, but that starts at $79,474. The Ford F-150 Lightning Lariat + Premium Package not only comes with the company’s 300-mile range battery. It also comes with a twin-panel moonroof, the company’s BlueCruise driver-assist system and Phoneas-a-Key features. These specs are comparable to the middle-tier Tesla Cybertruck Dual Motor AWD, ex-

pected to have a range of 300-plus miles, as well as standard features like a full glass roof, basic Autopilot and Phone Key functions. The notable difference between the Ford F-150 Lightning Lariat + Premium Package and the Tesla Cybertruck Dual Motor AWD, of course, would be their price. Based on the information reportedly sent by Ford to its customers, the F-150 Lightning Lariat + Premium Package starts at $79,474, while the Cybertruck Dual Motor AWD starts at $49,990 before options. That’s a premium of nearly $30,000 for the F-150 Lightning. With such a price gap in mind, Ford may have to rely on its reputation and pedigree as a truck-maker to ensure the Lightning becomes successful like its internal combustion-powered predecessors.

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MA Auto Body Shop Owner Sentenced After Own Surveillance Camera Helps Convict Him of Fraud A Shrewsbury, MA, man who owned auto body shops in Everett and Worcester has pleaded guilty and been sentenced to serve two and a half years in jail in connection with a complex motor vehicle fraud scheme in which he damaged vehicles with sledgehammers and stole $170,000, Massachusetts Attorney General Maura Healey announced June 23. “This defendant took sledgehammers and mallets to his customers’ cars so he could jack up the cost of repairs, bilk insurance companies and make off with hundreds of thousands of dollars,” Healey said. “My office took action to hold this individual responsible for his illegal conduct and with this sentence, he will now serve time in jail for his crimes.” Adam Haddad, 44, pleaded guilty June 22 in Middlesex Superior Court to the charges of motor vehicle insurance fraud (18 counts), larceny by false pretenses over $1,200 (15 counts), attempted larceny (three counts) and malicious destruction of property (six counts). Following the plea, Judge Paul Wilson sentenced Haddad to serve two and a half years in jail, with six months

to serve, and the balance suspended for three years of probation with the conditions that he pay $170,000 in restitution―$5,000 of which he must pay in the next 30 days―surrender his automotive appraisals license and complete a financial statement with supporting documentation every six months. ADH Collision of Boston Inc., owned by Haddad and located in Everett, and Accurate Collision Inc., formerly owned by Haddad and located in Worcester, each pleaded guilty to the charge of larceny by false pretenses over $1,200. Haddad is also required to provide Healey’s office with his individual and yearly tax returns for ADH Collision for the three-year term of his probation. The sentence is stayed until June 25. Healey’s office began its investigation in 2017, after a referral from the Insurance Fraud Bureau. In March 2019, Haddad was indicted in connection with running complex motor vehicle fraud scheme. The charges were the result of a joint investigation by the Insurance Fraud Bureau of Massachusetts, the Massachusetts State Police assigned to the AG’s Office and the Everett Police

Department. The investigation revealed that over a four-year period, Haddad regularly enhanced existing damage and caused new damage to customers’ vehicles to falsely inflate appraisal repair quotes for labor, paint and parts reimbursement requests. Haddad would then make an additional profit by pocketing the insurance company’s check and not completing the necessary repairs on the customers’ cars. Surveillance footage from one of Haddad’s business locations shows him using mallets, sledgehammers and pieces of wood to intentionally cause damage to five customers’ vehicles. In total, Haddad stole more than $170,000 from 11 different insurance companies. “Thirty years ago, the Insurance Fraud Bureau of Massachusetts (IFB) was created for this exact reason―to combat automobile insurance fraud,” said Anthony M. DiPaolo, executive director of the Insurance Fraud Bureau. “The type of fraud perpetrated by this individual increases the cost of automobile insurance premiums for consumers in the state of Massachusetts.

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“This case was borne out of a collaborative effort by Attorney General Maura Healey’s Office and the IFB. In August of 2016, we created a task force to specifically address concerns with autobody repair shops. The perseverance and hard work by all involved is a demonstration that insurance fraud will not be tolerated in Massachusetts.” If any member of the public believes they may have been victimized by this conduct or has any information relating to others who may have been victimized, they are encouraged to contact the Attorney General’s Office Insurance Fraud Tip Line at 617-573-5330. This case was prosecuted by Assistant Attorney General Jennifer Cotter, chief of the AG’s White Collar and Public Integrity Division, with assistance from Massachusetts State Police, digital forensics laboratory investigators and Victim Witness Advocate Amber Anderson, all of the AG’s Office. In addition, the AG’s Office received assistance from the Everett Police Department and investigators at the Massachusetts Insurance Fraud Bureau. Source: Office of the Attorney General Maura Healey

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Reimagined 2021 New York International Auto Show Announced New York Governor Andrew M. Cuomo on June 18 announced the 2021 Reimagined New York International Auto Show will return to the Jacob K. Javits Convention Center, Aug. 20 through Aug. 29. Beginning June 30, tickets to North America’s first and largest auto show―which will dedicate nearly a full floor to electric vehicles this year―will be made available at pre-pandemic attendance levels. This announcement builds upon the continued reopening of New York’s economy and event venues and reflects New Yorkers’ significant progress in vaccinations and sustained reductions in COVID-19 cases and hospitalizations. “The annual New York International Auto Show is not just one our most beloved summer traditions, it is a great economic engine for our state,” Cuomo said. “Last year this widely popular event was cancelled due to the pandemic, but thanks to the hard work of New Yorkers in beating back COVID, the show will return this year. “We are excited to welcome back auto enthusiasts and industry

professionals for this year’s show with full, pre-pandemic attendance levels and a new exhibit focused on electric vehicles with five indoor tracks where attendees can go for a test drive. This is a sure sign that New York is coming back stronger and better than ever.” “We are pleased to be standing with Governor Cuomo in announcing the return of a long-standing New York institution, the New York Auto Show,” said New York Auto Show President Mark Schienberg. “For 121 years, New York City has been at the center of the great advances in the personal transportation industry. We look forward to returning in August, helping restart our economy and giving buyers the help they need when making important purchasing decisions.” “We are excited to welcome the New York International Auto Show back to the Javits Center and demonstrate all of the remarkable progress New York has made,” said Alan Steel, president and CEO of the New York Convention Center Operating Corporation, which operates the Javits Center. “After hosting

the largest vaccination center in the United States, the Javits Center has reinforced its role in New York’s recovery, and this one-of-a-kind event signifies that our industry is ready to gather together, share ideas and move our world forward. Get ready to start your engines in August!” Last year, the COVID-19 pandemic cancelled the 2020 New York International Auto Show, which dates back to 1900. This year, the show returns and is being planned and prepared in accordance with the state’s COVID-19 health guidance. As public health conditions and the guidance is improving dramatically, the Auto Show and Javits Center will adapt and adhere to applicable policies and protocols, as necessary―such as using touchless advance ticketing, social distancing and extensive cleaning protocols during the entire run of the show. The state will continue to work closely with show management in preparation for the safe and successful return of the 121st New York International Auto Show in August. The New York International

Auto Show ushers in the latest automotive trends, showcasing an incredible collection of cutting-edge design and extraordinary innovation. The Auto Show occupies 1 million square feet of exhibit space at the Javits Center, with multiple floors of displays from the world’s automakers featuring the newest vehicles with the latest advanced technology available on the market. Nearly 1,000 cars and trucks will be on display. For additional details on the New York International Auto Show and ticket sales, visit www.autoshowny. com. More information on the health protocols for attendees will be announced later and are subject to change with the state’s guidance. Source: Office of Gov. Andrew M. Cuomo

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Sherwin-Williams Earns Top Honors Sherwin-Williams received triple honors in the J.D. Power 2021 Paint Satisfaction Study, earning the top spot in customer satisfaction in the categories of Exterior Paints, Exterior Stains and Paint Retailers. The J.D. Power Paint Satisfaction Study is based on four key drivers of satisfaction: application, offerings, durability and price. The study examined the experience of 5,804 customers who purchased and applied paint or stain in the previous 12 months. Sherwin-Williams has earned top honors three years in a row for No. 1 in Customer Satisfaction with Exterior Stains and No. 1 in Customer Satisfaction with Paint Retailers. This is the second year in a row that Sherwin-Williams has earned this recognition for No. 1 in Customer Satisfaction with Exterior Paints.

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Colors On Parade Opens New Franchise in Northeast Tri-State Area Colors on Parade, the world’s largest eco-friendly mobile automotive reconditioning franchise, is pleased to announce the opening of its newest franchise unit in West Harrison, NY. Servicing the New Jersey, New York and Connecticut tri-state area, the new franchise is owned and operated by Michael Grimaldi. Working alongside Area Developers Mark Mega and David Lee, Grimaldi will bring EcoSmart mobile automotive paint repair services to his community at an affordable price. In addition, the new franchise will provide car dealerships with the highest quality reconditioning services for their inventory with a quick turnaround time. For the majority of Grimaldi’s professional life, he has worked in real estate sales and property management. In 2014, Mega and Lee, close friends of Grimaldi, introduced him to the franchise opportunity, and he began working as an employee, doing mainly touch up and scratch removal work. After six years of doing that, Grimaldi decided it was time to take

the next step and recently completed the Total Car Franchising Corporation paint repair training and certification program at the company’s headquarters in Conway, SC. He is now back in West Harrison, NY, getting his new Colors on Parade business underway.

Michael Grimaldi recently opened a new Colors on Parade franchise in West Harrison, NY

“I like having the flexibility to operate in a way that works for my lifestyle and priorities while also being able to maximize my earning power,” Grimaldi said. “I enjoy working hands on and being someone who can provide solutions to problems.” “As we continue to grow Colors on Parade with more locations across

the country, it is a goal to make convenient, affordable mobile paint and dent repair services accessible for our customers,” said Jeff Cox, president of Total Car Franchising Corporation. “A key component to doing so is our group of passionate franchisees who provide a high-level of expertise and professionalism to our customers. We are excited to welcome Michael Grimaldi to the team and look forward to his success with Colors on Parade!” With more than 30 years of experience and more than 250 operating franchises across the U.S., Total Car Franchising Corporation is consistently ranked by Entrepreneur magazine as one of the nation’s top automotive franchise systems. The company’s extensive training and certification process allows new franchisees to provide customer services safely onsite while using an exclusive process. Franchise opportunities still remain available throughout the U.S. More information can be found at www.franchising.colorsonparade. com. Source: Total Car Franchising Corporation

Curry Elected President of UAW The UAW International Executive Board (IEB) on June 28 unanimously elected Secretary-Treasurer Ray Curry to serve as UAW president upon the retirement of Rory L. Gamble for the remainder of the current term, which ends in June 2022 at the 38th Constitutional Convention. Curry, 55, will officially assume the office of president July 1. The UAW implemented comprehensive top-to-bottom financial ethics reforms while Curry served as secretary-treasurer, the union’s CFO. Within his bargaining sector assignments, the members of UAW-Heavy Truck and UAW-General Dynamics sectors have enjoyed financial gains and increased job security provisions, while the members of the Agricultural Implement sector have continued to enforce current contractual terms along with health and safety provisions. Source: UAW

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AASP/NJ Virtual Meeting Presents Industry Solutions Toward a ‘Better Way’ To help bring forth practical solutions to help collision repairers overcome some of the industry’s most common obstacles, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) welcomed business coach Barrett R. Smith of Auto Damage Experts, Inc. to lead a special discussion, “Are You at the End of Your Rope? Thinking There Has to be a Better Way?” during its

old adage where the frog will swim around in some cold water. You turn up the heat gradually, and the frog fries without knowing what happened to it. That’s kind of what is happening to this industry.” Smith noted as insurers gain more power, shops are losing the ability to manage their businesses. As a result, they “are being put into a position of significant liability by not

“The insurance companies are out of control. It’s not getting any better; it’ll get consistently worse. It’s what I call ‘boiling the frog.’” — Barrett R. Smith June 16 virtual membership meeting. An industry veteran who has served as both a body shop owner and an insurance adjuster, among other roles, Smith began by sharing he has seen shop/insurer relations worsen over the years. “The insurance companies are out of control. It’s not getting any better; it’ll get consistently worse. It’s what I call ‘boiling the frog.’ Many of you probably heard the

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stepping up and doing the right thing for the right reasons and the right way.” To combat this trend, he showed attendees ways to regain their power by putting customers first and working to empower them. He detailed what he called “the seven Es,” a philosophy to “expose, edify, enrage, empathize, empower, equip and encourage your customers to do the things they need to do to make sure

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that their safety and economic welfare are protected.” This means when an insurer fights a claim for necessary OEM repairs, the shop must let the customer know this is happening. The customer can then either contact their insurer directly to push for payment or pay for this work out of their own pocket. Because a shop is responsible for the liability of a repair for the life of the automobile, the shop can tell the customer it will turn the job away or ask that consumer to sign a hold harmless agreement should they refuse the necessary repairs. Attendees who have used these tactics claimed it has successfully resulted in the customer choosing to have the repairs done right rather than put their safety at risk. “It’s about standing up for the customer,” AASP/NJ President Jerry McNee said. “You know what your cost of business is. Insurance companies have trained us to accept things like cost shifting. If we allow this to continue, it will lead us down a path to destruction.” With insurers not paying for

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storage proving to be another hardship facing shops these days, Smith suggested there should be no reason why a facility would not charge for this if the insurer or customer is delaying the repair. This would lead insurers to quit delaying things and speed up the process, which will benefit all parties involved―the shop, the customer and even the insurance company itself. AASP/NJ also welcomed Rick Palmer of PMCLogic, who described and demonstrated a tool that works with all estimating systems in giving collision repairers an accurate paint and materials estimate. “One thing people don’t have in shops is time,” Palmer said. “We strive to do everything we can to take people out of this process. We’ve made it 100% automated so you can get accuracy with your invoice.” For more information on AASP/NJ, visit aaspnj.org. Source: AASP/NJ

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NY Governor’s Pen Ready to Silence Loud Vehicles by Ethan Stark-Miller, The Riverdale Press

Backfire that sounds like gunshots and revving engines have become all too familiar sounds over the past year. The barrage of loud vehicular noises has hardly gone unnoticed. In fact, it’s one of the more complained-about quality-of-life issues in this corner of the Bronx. At least according to Community Board 8 public safety committee chair Ed Green. “We have people upset about it all the time,” he said. “I mean, it was very bad last year, and we seem to be getting a similar amount of complaints” this year. The noise comes from several sources, Green said. But the main “one is a lot of these souped-up vehicles making noise with loud muffler systems.” Fortunately for Green, lawmakers in Albany―and the New York Police Department more locally― have taken some steps to try and turn down the volume. One of those lawmakers is Brooklyn state Sen. Andrew Gounardes who sponsored the SLEEP―or Stop Loud and Excessive Exhaust Pollution―Act in the upper chamber, a bill he says would ban the sale and usage of devices that amplify the sound of a car’s engine. “We’re trying to tackle the problem of these illegally modified cars with exhaust mufflers that sound like jet engines at the airport, or sound like shotguns or things like that,” Gounardes said. They have “really been terrorizing the streets for the last year.” Although Gounardes has heard this problem firsthand from his own home near the Belt Parkway, he said people from all over the state contacted his office after he introduced the SLEEP Act to tell him about similar issues in their own backyards. These noise-making muffler enhancements are already illegal, Gounardes said, but there aren’t many cars getting ticketed for them because the fine is currently just $150. That means drivers who already spend several thousand dollars modifying their mufflers aren’t going to be deterred by what other-

wise could be considered just pocket change for them. To fix this, Gounardes said, his legislation would increase fines for those driving cars with modified mufflers from $150 to $500. Additionally, the bill would make it so any auto body shop caught selling or installing these devices more than three times will have their operating licenses revoked by the state motor vehicle department.

Brooklyn state Sen. Andrew Gounardes. Credit: Courtesy of New York State Senate

“That should help us stop it at the installation point,” Gounardes said. “As well as give us enough tools on the enforcement side … (when) they catch these guys and they pull them over, there’ll actually be some teeth to the law.” The noise could be turned down sooner rather than later, as the bill already passed both chambers in the legislature before the session ended last month. And Gounardes is confident Gov. Andrew Cuomo will sign it into law before the summer is out. Yet, Green says he’s skeptical of how effective this bill actually would be in reducing noise. Its success depends on how thoroughly the police enforce the new fines, and how aggressively they go after auto body shops that sell and install these illegal devices. And it’s the fact lawmakers are targeting shop that created doubt for Anthony Wilson. The Spuyten Duyvil performance car hobbyist believes ticketing auto body shops won’t work because most performance car owners buy their parts online―seemingly out of reach of Gounardes’ bill. “I belong to a few car groups, car clubs, go to car meets. I don’t know one person who actually went to a shop and purchased the equipment and had it installed,” Wilson said. “Most of us choose the appro-

priate muffler and pipe combination, and we just order it online. Then once we receive it, we take it to a shop and have it welded in.” However, the law does penalize shops in New York that authorities can prove installed the devices, Gounardes said. Those who install the devices themselves, in their own garage, are still subject to the fine simply for driving one of these loud vehicles. Also contributing to the vehicular noise, Green said, is the growing prevalence of unlicensed all-terrain vehicles and dirt bikes speeding down city streets. “The ATVs are just really obnoxious,” Green said. “They come in packs, too, for the most part, whenever I see them. It’s almost like the motorcycle gangs of the old days. You know, when they come down the street in packs and you hear them, and they sound like thunder. “When they come down the block and [they’re] popping wheelies in the street, a lot of times it’s pretty out of control.”

More important than noise, Green said, these dirt bikes and ATVs are also dangerous. “They’re unlicensed, they’re unregistered, they speed through the streets and the riders largely don’t wear any protective gear,” Green said. “So, they’re not only dangerous to the public, but they’re dangerous to the riders themselves.” According to Dan Padernacht, Community Board 8’s former traffic and transportation committee chair, these vehicles are also dangerous because they often drive against traffic or on sidewalks. The NYPD recently started a rewards program aimed at getting more of these unlicensed vehicles off the streets. According to a published report, police are offering $100 rewards for information about each illegal dirt bike or ATV they retrieve, and they want anyone with information to call CrimeStoppers. Police will then destroy any confiscated dirt bike or ATV that See Silence Loud Vehicles, Page 18

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Continued from Page 18

Tesla Model Y Taxi Fleet Successfully Blocked by NY Commission by Simon Alvarez, Teslarati

The New York Taxi and Limousine Commission’s (TLC) efforts to block the deployment of 50 Tesla Model Y taxis from electric transit startup Revel were successful. The decision was finalized in a meeting June 22, where the TLC voted to stop issuing new for-hire licenses for electric cars. The TLC’s decision was passed with an overwhelming five-to-one vote. This effectively blocks Revel from launching its 50 Model Y taxis without breaking city rules. During the meeting, the TLC argued Revel would still be able to operate its Model Y taxis, provided it buys 50 gas cars first and swaps their licenses for electric cars. This requirement was dubbed by Revel as “the very definition of limiting market competition.” TLC Chair Aloysee Heredia Jarmoszuk doubled down on her stance during the June 22 meeting, arguing the new Model Y taxis could result in congestion. “It is not sustainable to allow an unlimited number of new vehi-

cles to the road in a city that is all too familiar with the choke of traffic congestion. What we will not allow is the opportunity for another corporation―venture capitalists or otherwise―to flood our streets with additional cars,” Heredia Jarmoszuk said. Expressing his displeasure at the ruling, Revel CEO Frank Reig criticized the ban in a three-minute speech at the meeting. According to Reig, Revels’ Model Y fleet is made up of are environmentally-friendly vehicles. He also highlighted that unlike Uber and Lyft, Revel hires its drivers as full-time employees with benefits. “We’re offering exactly what this commission has been asking for for years: fair treatment and stable pay for drivers―who are all W-2 employees with benefits―and a plan to drive EV adoption in the city,” he said. “The commissioners sat through almost three hours of testimony on all sides yet asked zero questions and spent zero time deliberating before making a policy decision with profound consequences.

The TLC never intended to consider what drivers and New Yorkers had to say, and only cared about jamming through this vote on Primary Day with as little scrutiny as possible,” Reig added after the New York TLC’s vote. Amidst the TLC’s decision, representatives of the New York Taxi Workers Alliance and a number of taxi drivers applauded the commission for its decision to block Revel’s Model Y fleet. The Independent Drivers Guild and groups such as the Sierra Club and the Tristate Transportation Campaign, on the other hand, backed Revel, stating that the TLC’s decision would set back efforts to combat environmental issues like climate change. Quotes from the New York TLC’s meeting are attributed to the New York Post.

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Silence Loud Vehicles doesn’t have a rightful owner. While this program can’t hurt, Padernacht said, “that can’t be their primary initiative.” Instead, police need to step up enforcement in other ways, and there also should be new legislation passed that sets clearer rules around the legality of dirt bikes and ATVs. “We need to make sure that any individual driving one of these motorized vehicles are of a minimum age and have a proper license,” Padernacht said. “And that each of these vehicles are properly insured.” The main way to tackle all the problems with loud and illegal vehicles, Green said, is for lawmakers to consider imposing stiffer criminal penalties for these offenses. “I just think that we need to revisit some of these laws,” Green said. “The decriminalization of these quality-of-life crimes has really opened the door to a lot of these problems. And these things need to be revisited.”

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Fourth-Generation Auto Dealer Elected to Top Post Representing NY State Franchise Dealers Oliver Brodlieb, a fourth-generation automobile dealer on Long Island, has been elected chairman of the Greater New York Automobile Dealers Association (GNYADA), which represents and advocates for more than 400 franchise new car dealers across the Metro New York region. Brodlieb is also president of East Hills Chrysler Jeep Dodge Ram in Greenvale, NY. He was chosen by his fellow dealers June 24 to chair the organization at a crucial time, as the industry seeks to recover from the COVID-19 pandemic and embrace the future of rapidly evolving technology, including electric vehicles. GNYADA represents an industry that collectively supports more than 72,000 jobs, generates more than $53 billion in economic activity, and together is the fifth largest retail employer in the 12 counties its member have their businesses, from New York City to Long Island to Westchester County and points north. Brodlieb’s first official duty will be the honor of opening the 2021 New York International Auto Show, which, due to the pandemic, has been rescheduled for Aug. 19-29 at Manhattan’s Jacob Javits Convention Center. The New York Auto Show is the oldest and largest public auto show event in North America. It was postponed in April 2020 and will be held in August for the first time in its 121-year history. Brodlieb has worked at East Hills dealerships for more than 24 years, holding virtually every position, including service advisor, salesman, sales manager, finance manager and others. In 2007, he became partners with Ken Brodlieb, his uncle and founder of the East Hills Auto Group. Along with Tim Brodlieb, the group consists of three Chevrolet franchises and one Subaru franchise. Oliver has another uncle, Marc Brodlieb, who owns and operates a Honda and another Chrysler Jeep Dodge Ram franchise. Oliver Brodlieb’s grandfather, Theodore Brodlieb, who served as an inspiration, began in the auto

business just after World War II, working for his uncle’s Desoto dealership, Marathon Motors in Brooklyn. He then opened Idlewild Motors, Ted’s Ford and then ultimately Brodlieb Motors in Woodmere, NY. In addition to supporting dealers as they adjust to the changing protocols around COVID-19 and the full reopening of the retail economy, Brodlieb plans to focus on efforts to recruit and train top talent to fill the thousands of new automotive technician career opportunities that will become available at dealerships in the coming years. The association plans on working with the State Legislature and governor’s office on meeting the goals of selling EVs by adding to the Clean Air fund for customers buying zero emissions vehicles and investing in the state’s infrastructure to provide more electrical charging stations. “Our industry has a bright and prosperous future, and we need talented young women and men to carry us forward as we enter a more technologically advanced age for vehicles,” said Brodlieb. “As we saw during the pandemic, personal vehicles are more important to people than ever, particularly here in downstate New York, and the importance of retail auto dealers has been so clearly demonstrated. I am delighted to be able to work with my colleagues to support one of the most critical industries for our state.” “I’m thrilled to have someone like Mr. Brodlieb, who is so familiar with the auto industry and has a family that has been in business in New York as long as they have,” said GNYADA President Mark Schienberg. “The environment in which our franchise new car dealers operate is ever-changing, with new technology transforming the industry, and a complex regulatory environment. “We are very fortunate to have someone with Oliver’s background and experience of the industry, and his passion, to take on this role. The commitment he has shown to education, and to being a charitable champion of his local community, is emblematic of the role dealers play

throughout the region and a testament to his dedication.” As with so many dealerships, East Hills Chrysler Jeep Dodge Ram is very active in its local community, supporting Roslyn Little League and other local community organizations. Brodlieb is also a prominent supporter of several organizations that create and maintain open space and parkland. He is a benefactor of the Brooklyn Bridge Park Conservancy; the Peconic Land Trust, which works to protect open space, conserve natural environments and preserve working farms throughout Long Island; and the Caumsett Foundation, which restores natural grasslands and ecologically fragile land in Huntington, NY. He is also active in the Tulane University Alumni Association and is a member of the National Automobile Dealers Association (NADA). During the financial crisis in 2008, East Hills undertook major renovations, expanding and improving its building complex in Green-

vale at a time when those key investments made a significant positive economic impact. In 2015, Oliver Brodlieb, along with Ken and Tim Brodlieb, purchased a five-acre facility which was once the home of a Chevrolet dealership in Oyster Bay, to serve as a storage facility and a reconditioning center. Along with employing more than 100 people between just those two businesses alone, the acquisition has enabled the business to grow. Oliver Brodlieb lives in Cold Spring Harbor with his wife, Taryn, and two children, Bo and Charlie. Source: GNYADA

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AASP/NJ and Vendors Begin Countdown to NORTHEAST 2021 The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) is enthusiastically preparing for the 2021 NORTHEAST® Automotive Services Show, which will be held live and in person Sept. 10-12 at the Meadowlands Exposition Center in Secaucus, NJ. After more than a year of lockdowns, social distancing and the “Zoom Gloom” of virtual meetings and events, the collision repair and mechanical service communities are clamoring to get back to the way this industry is meant to be experienced: in person. NORTHEAST’s return to a live format has inspired excitement from new and returning exhibitors that have already signed on to support the show and showcase their products and services to thousands of attendees. Not surprisingly, NORTHEAST Gold Sponsor Ford was one of the first to pledge its support. “Ford first attended the show during the launch of the new 2015 F-150,” shares Gerry Bonanni, Ford’s senior engineer for paint and body repair. “We really like the interaction with all of the body shop

personnel attending, especially visiting with those who actually perform the work in our great industry. After months of quarantine, we look forward to the opportunity to meet and engage in person with our friends in the industry who will be attending the show.” Nick Mattera, co-owner of NORTHEAST Lanyard Sponsor Innovative Solutions and Technology, is another longtime participant who can’t wait to hit the show floor once again. “We keep going back because it provides a perfect platform for us to show our equipment to our customers,” Mattera said. “It’s a show that allows us to really have live demonstrations; I think that’s key for our potential customers to see. This year, we’re particularly excited; it’s been such a long time that we’ve had a show that can be live like this. We’re all looking forward to seeing our friends we’ve met over the years and having a great show.” Brock Birky, director of business development at KECO Body Repair Products, will be traveling all the way from Oklahoma City to

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have his company represented live at NORTHEAST for a third year. “We really enjoy the representation we get on the East Coast there,” Birky said. “We also like how the show is really targeted toward the collision repair industry specifically. Some of the other shows have a huge collision repair focus in halls or areas, but the whole show trumps the industry. So, we enjoy the specificity and focused nature of NORTHEAST. “We’re really looking forward to interacting with our customers again and seeing their reactions face to face,” he added. “We love the show, and we love to give our customers or potential ones a hands-on experience. There’s nothing that really replaces that.” “I don’t think there’s anyone who isn’t ready to get out of their shops or homes and meet up in person again, and we’re really excited that NORTHEAST will be the first major event in our industry to provide that opportunity,” AASP/ NJ President Jerry McNee said. “Our exhibitors are thrilled to be involved, and our education and

training schedule will be stronger than ever. We’re looking forward to giving everyone who attends the best experience they’ve had since the pandemic began―right here in New Jersey.” AASP/NJ thanks these generous sponsors for their support of NORTHEAST 2021: Platinum Sponsor: BASF; Gold Sponsor: Ford; Silver Sponsors: PPG, NJ Parts of Flemington; Lanyard Sponsor: Innovative Solutions and Technology, Spanesi; Attendee Prize Sponsor: Axalta Coating Systems; and General Sponsors: Harbortouch and Sherwin-Williams Automotive Finishes. Pre-registered NORTHEAST 2020 attendees will not need to re-register for the 2021 show, as badge data will be carried over to these new dates of Sept. 10-12. For updates and information on NORTHEAST, including available lodging, continue to visit the official event website at aaspnjnortheast. com. Source: AASP/NJ

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Liberty Mutual to Acquire State Auto Group Liberty Mutual Holding Company Inc., State Automobile Mutual Insurance Company and State Auto Financial Corporation announced July 12 they have signed a definitive agreement pursuant to which Liberty Mutual would acquire State Auto Group, a super-regional insurance holding company headquartered in Columbus, OH. State Auto mutual members will become mutual members of Liberty Mutual and Liberty Mutual will acquire all of the publicly held shares of common stock of State Auto Financial for $52 per share in cash. The acquisition will significantly expand Liberty Mutual’s position as an industry leader for personal lines and small commercial insurance. Liberty Mutual today distributes its Safeco Insurance personal auto, homeowners and specialty products, and Liberty Mutual small business insurance. The deal is expected to close in 2022. Source: Liberty Mutual Insurance

Continued from Cover

Appeal Over Zoning ing board’s decision to deny RAV’s request to operate its auto body shop as a continuation of a nonconforming use on Doyle’s property. Doyle, who had purchased his borough property in the early 1980s, operated Joseph J. Doyle Machine Tool Sales, Inc., a heavy equipment business, on his property since that time, and had been grandfathered to use the property that way even though zoning had changed over the years to the point where the business was no longer an approved use at that location. A timeline of events provided by the court show RAV began leasing land across from Doyle’s property in 2014, but eventually desired additional space because of business expansion, and wanted to secure a lease on Doyle’s land to use his property for the auto business. The auto repair shop was not a permitted use on Doyle’s property so RAV sought a determination from the local zoning hearing board

that its business was a lawful continuation of the grandfathered machine sales business, according to the July 15 Commonwealth Court opinion. Public hearings were held in Hatboro on the matter in December 2018 and January 2019, the record shows. The zoning board ultimately determined the auto repair business was not a continuation of an existing nonconforming use of the property housing the machine sales business. It also ruled RAV had not met the burden needed to obtain a variance to operate the business at the property. RAV filed an appeal in state court, but a Montgomery County judge sided with the zoning board. RAV then appealed to Commonwealth Court, arguing the zoning board abused its discretion in determining the proposed use of operating an auto repair shop was not a continuation of Doyle’s existing nonconforming use to operate his machine sales business. Last week, the middle-tier appeals court said neither Doyle, who has since passed away, nor RAV

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cited any case law to support their assertion a machine sales shop is a “sufficiently similar use to an automobile repair shop use to permit a continuation of a nonconforming use.” “Although auto repairs and machine sales uses are contained in a broader category of uses, here automotive and allied sales and services, they remain different uses, as Applicant’s [RAV’s] counsel admitted,” the Commonwealth Court panel wrote. The panel also found no error in the zoning board’s conclusion that RAV failed to prove its case for a variance.

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SEMA Intensifies Advocacy are equipped with Advanced Driver Assistance Systems (ADAS). The bipartisan RPM Act is a top priority for SEMA, and will protect the motorsports industry against overreach from the U.S.

ed race cars. “We must continue to communicate with and educate elected officials about the issues that are important to the industry,” said Daniel Ingber, SEMA vice president of government and legal affairs. “We value the opportunity to meet with lawmakers and will continue to push for the rights of the aftermarket industry.”

including a number of lawmakers who signed on after meeting with SEMA-member business representatives and staff. SEMA urges racers and race fans to continue to reach out to lawmakers and demand that the RPM Act be passed into law. “We cannot let up on our efforts to push for the RPM Act,” said Ingber. “As the EPA attacks the motorsports industry, we must protect

“We must continue to communicate with and educate elected officials about the issues that are important to the industry,” — Daniel Ingber SEMA staff and representatives have connected with lawmakers this year to discuss key initiatives, including passage of the RPM Act. John Hotchkis, far right, of Hotchkis Performance, met with Rep. Ted Budd, center, to talk about top industry issues, challenges and concerns

Environmental Protection Agency (EPA). The bill clarifies the motorsports-parts industry’s ability to sell products that enable racers to compete and protects Americans’ right to convert street vehicles into dedicat-

The RPM Act was first introduced in 2016, after the EPA began interpreting the 50-year-old Federal Clean Air Act (CAA) to include race car conversions. SEMA has led the fight to advocate for passage of the bill, which was introduced earlier this year in the House of Representatives after enthusiasts sent more than 1.3 million letters to lawmakers urging them to pass the RPM Act. The bill currently has Congressional support from 82 co-sponsors,

our rights to modify vehicles. The RPM Act will clarify that it is legal to modify street vehicles into dedicated race cars and give the industry the assurance it needs to continue to legally compete.” With strong bipartisan support and engagement from the industry, the RPM Act is well positioned for passage in the current Congressional year. Committees have reviewed the bill in previous years and are prepared to expedite the bill.

“It was great to meet with lawmakers who seriously considered the RPM Act, which allows street vehicles to be converted into racing vehicles,” said Braden Liberg, director of compliance and calibration engineering of the Edelbrock Group. “Without the RPM Act there is a threat to the motorsports industry. Many lawmakers are unaware of the challenges facing our industry, and it’s imperative that we work with them to ensure that motorsports businesses can continue to operate.” Racers, race fans and related businesses are encouraged to continue to contact their legislators to pass the bill and #saveourracecars by visiting www.saveourracecars.com. Source: SEMA

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All-Electric Future and communities that are more likely to disproportionately experience the effects of climate change. “We know 80% of EV owners today charge at home,” said Gerald Johnson, GM’s executive vice president. But, Johnson said, GM also realizes there are many people who don’t have a residence where they can charge a vehicle. Likewise, Johnson said GM supports an EV tax credit incentive that would include used electric cars, “to broaden the access” to EVs for more consumers. “We have an imperative to leave the world a better place than we found it,” Johnson said. Barra said GM wants consumers to be able to choose an electric vehicle as their only vehicle. Therefore, those consumers must have confidence that if they go over the vehicle’s range, which for GM is typically 300 miles, there’s a charging infrastructure to support them. Also, there have to be affordable options to buy EVs. “When we check all those boxes, our research shows that people say they are very interested in an electric vehicle,” Barra said. The philanthropic fund complements GM’s $35 billion investment in research and development of EVs and self-driving cars by 2025. Barra said GM is focused on bringing its current workforce along, while helping to build a diverse pipeline of talent, as GM gets closer to a zero-emissions future. GM will be adding jobs, but James said it is not sharing how many new jobs will be created. Barra said GM strives to be the “most inclusive company” in the world. That means creating an environment where everyone feels valued, comfortable to be themselves and emboldened to do their best work. It also means including them in a transition to EVs, Barra said. “Whether they’re an engineer or a teammate working on the assembly line in one of our plants, they need to know they are a part of our future,” Barra said. “This won’t happen overnight―it will happen over time and that time will allow

us to retrain employees. Our goal is, as we make this transition, we bring everyone along.” GM recently established GM Automotive Manufacturing Electrical College, which allows people to be retrained to work on EVs. As for the workforce of the future, Barra said, people need to have a technology basis. They don’t necessarily have to “be able to code,” but they should know enough about software and technology to be flexible to move to a variety of jobs, she said. GM has said it aspires for all of its light-duty vehicles to be zero emissions by 2035. Barra said GM’s focus on “equitable climate action” centers on four areas: The future of work: GM will prioritize its current salaried and UAW-represented workforce in its shift to EVs. GM publicly reiterated its support for the UAW to organize employees at the Ohio and Tennessee Ultium Cells LLC battery cell manufacturing plants. In May, the UAW told the Free Press it is prepared to battle GM at the new battery cell factories GM is building in Ohio and in Tennessee if the automaker won’t allow a simplified process, called a card check, to organize workers there. But days after the Free Press article, GM and its battery cell partner, LG Energy Solution, publicly expressed support for unions. They also acknowledged workers’ rights to unionize the joint venture called Ultium Cells LLC battery plants. When asked June 29 if GM would support a card check process at the battery cell plants, Johnson said, “We are supportive of the UAW. We are partners with the UAW and have been for decades. It is ultimately the decision of the employee group there, but we fully expect we’ll work together with the UAW moving forward at these plants as we do in our propulsion plants across the U.S.” EV access: GM has said it will bring 30 new EVs to market by mid-decade that offer customers a wide selection across a range of price points. The redesigned 2022 Chevrolet Bolt EV starts at $31,000 and the 2022 GMC Hummer pickup,

24 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

due out later this year, will start at $79,995. GM also announced partnerships that will use its Hydrotec fuel cells for rail and aircraft applications, which could deliver improvement in emissions beyond cars. Infrastructure equity: GM is committed to helping bring widespread charging stations and other solutions to address any charging concerns that can hinder EV ownership. Climate equity: GM will help fund organizations that are helping to find solutions to changes that will result due to climate change. GM and these groups will work at the community level looking at the future of work, EV access, EV infrastructure and other issues that arise from climate change. Starting June 29, GM is accepting proposals from outside groups for funding from its new Climate Equity Fund. Potential grantees should submit proposals aligned to GM’s four climate equity social outcomes listed above. The grant proposals will not

go to other EV companies, Johnson said, “This is targeted for grassroot organizations in communities---targeting towards awareness, understanding and engagement in climate change and an EV future.” Barra said GM strives to make mobility safer, more accessible and more environmentally friendly and it will work with community-based stakeholders to identify their needs and find solutions. GM will advocate for inclusive and equitable climate change, renewable energy and transportation-related policies at the federal, state and local levels to help ensure a sustainable mobility future for all, she said. It will help fund organizations that provide equitable access to EVs. “It means that 20 years from now, as we look back at our company and our spending $35 billion to transform the company, we can be proud in how we did it,” James said. “And we’ll know that we didn’t leave anyone behind.”

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Ford Names Croley Chief Policy Officer Ford has selected former U.S. federal lawyer Steven Croley to become its chief policy officer and general counsel. Croley, 55, who joined Ford on July 12, will help the company further leverage and build on its strengths in government relations, sustainability, safety, legal and privacy. The new policy leadership role was anticipated last October when Jim Farley became CEO and announced organizational changes to help the company fulfill its customer-first Ford+ plan for growth and value creation. Croley will report to Farley and work closely with Jon Huntsman, a member of the Ford board of directors who in April was appointed vice chair, policy, an internal senior advisory role to Farley and Executive Chair Bill Ford. John Mellen, who postponed his planned retirement from Ford a year ago to take on the role of general counsel, will conclude his exceptional career with the company Sept. 1, following transition of his legal responsibilities to Croley. Source: Ford

CCC ONE Estimating-IQ Brings Proven AI to Collision Repairers CCC Intelligent Solutions Inc. announced its plan to further enhance CCC ONE®, the collision repair industry’s leading estimating platform, incorporating advanced AI into its estimating application later this quarter. The new feature, CCC ONE® Estimating–IQ, will provide collision repair facilities a jump start on estimating, applying machine learning to pre-populate estimates with parts and labor operations based on photos of vehicle damage and configurations by the repair facility. The upgrade will put advanced AI at the fingertips of estimators across the industry, informing and speeding the repair process and improving the repair experience for their customers. “Collision repairers have helped inform CCC’s industry-leading AI models writing more than 150 million estimates on CCC ONE. CCC is now applying that knowledge to accelerate estimating for collision repairers,” said Mark Fincher, vice president of market solutions, CCC Intelligent Solutions. “CCC is excited to make AI-driven estimating available to tens of thousands of repair facilities nation-

wide using CCC ONE. “Incorporating our proven AI, CCC ONE Estimating-IQ will streamline routine tasks and give collision estimators more time to focus on high impact activities.” The incorporation of AI into CCC ONE follows a recent modernization of the CCC ONE Estimating interface. The intuitively designed interface delivers mobility and functionality that makes writing estimates at the vehicle quick and easy, including real-time tips and reminders, improved in-line editing capabilities and an enhanced shopping cart for parts ordering at the time of estimate. CCC ONE Estimating-IQ can accept photos of vehicle damage shared from insurers with repair partners when appointments are booked after an accident. Photos shared include CCC’s AI heat map technology, giving repairers more visibility to incoming vehicle damage, speeding repair planning. “The improved CCC ONE experience underscores CCC’s commitment to providing collision repairers with trusted technology,”

said Arlo Johnson, SVP of insurance at Driven Brands. “As vehicles get more complex and connectivity with partners becomes more important to reducing cycle time, collision repairers need to have real-time access to information and advanced insights. CCC ONE helps us keep pace with and drive improvements across our business.” CCC ONE Estimating–IQ will be made available to all repair facilities who license CCC ONE Estimating. Insurer-provided photos of vehicle damage are available to repairers using the CCC® Engage customer experience platform. CCC ONE Estimating-IQ is compatible with any full-screen, web-enabled device and incorporates online updates, providing repair facilities with new levels of versatility and a strong foundation for ongoing innovation. Learn more about CCC ONE Estimating-IQ at https://cccis.com/ collision-repairers/ccc-one/estimating /iq/ Source: CCC Intelligent Solutions Inc.

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Is State Farm’s New Offer One the Industry Can’t Refuse? by Rebecca Barnabi, glassBYTEs.com

A new offer is on the table from State Farm to auto glass providers in its National Glass Program.

Effective July 5, State Farm will offer a labor rate of $42 per NAGS labor hour in Zones 1, 2 and 3. Additionally, the company is offering the following for glass parts: • 41% off NAGS List Price in Zone 1 • 25% off NAGS List Price in Zone 2 • 0% off NAGS List Price in Zone 3 The insurer announced the changes in a letter dated June 28. State Farm periodically changes what it “offers” to reimburse shops for its insurance work. In September 2016, glassBYTEs. com reported an increase from $35 per NAGS labor hour to $38 per

NAGS labor hour. Zone 1’s pricing decreased from 25% off NAGS list price for an auto glass part to 32% off; from 15% off to 24% off the NAGS list price in Zone 2; and Zone 3 remained at 0 percent off the NAGS list price. “It’s a small change that [State Farm] made, but just the whole concept of the idea is a slap in the face,” said Rick Valentine, owner/operator of Intermountain Auto Glass in Boise, ID. As a Zone 1 shop, Valentine said he will see the NAGS percentage off go from 38 to 41%, and labor go from $39 to $42 per NAGS labor hour. The percentage off increasing is what will hurt shops like Valentine’s. The last price change by State Farm was two to three years ago, according to Valentine. Valentine said it is particularly challenging with all that is going on nationwide as well as the lingering effects of a global pandemic and a labor shortage.

Watch Out for Cops in F-150s by Steven Symes, Motorious

We certainly don’t advocate running from law enforcement when you’re told to pull over, but if you do, you might want to make sure the 2021 Ford F-150 Police Responder isn’t on your tail. That, or you better have a Hellcat or something hotter. The Blue Oval has been braggingabout how testing done by the Los Angeles County Sheriff’s Department and the Michigan State Police shows the truck is quicker at 0-60 and 0-100 mph acceleration versus other law enforcement vehicles, be they trucks, SUVs or sedans. Apparently, those law enforcement agencies even tested the police cars on the quarter mile, something you don’t see every day. What confuses us is the old adage that police can outrun you with radios so they don’t need quick cars and how that squares with these types of tests. Thankfully, Ford is here to add clarity. “Vehicle acceleration and speed contribute to how quickly first

responders can safely arrive at an emergency scene,” said Greg Ebel, Ford police vehicle brand manager. “Shaving even a few seconds off response times can make a big difference. Whether responding to an accident on the highway or a distress call from somewhere off-road, law enforcement officers can count on 2021 F-150 Police Responder to get them there fast.” Now do you get it? Police need to speed to get to emergency scenes and to chase down cretins having fun at car meets. Plus, having a truck means they can go bust people in Jeeps who try to flee on dirt roads. Before you start wishing you had this police truck, keep in mind it’s really not that quick. Michigan State Police tests show it does 0-60 in 5.4 seconds. That is 1.2 seconds quicker than the old Ford police truck, but it’s not exactly blisteringly quick by today’s standards. Plus, the thing tops out at 120 mph, which explains why Hellcats get away. Just remember, the police radio is even quicker.

28 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

He said that, for the first time, he is considering no longer participating with State Farm. “It impacts us significantly when our costs go up,” Valentine says. Intermountain Auto Glass is based in Boise, but has multiple locations to serve customers. “I’ve been through it all,” Valentine said of his company, which opened in 1996. According to Valentine, 80% of the work his business does is through insurance. “I just don’t think it’s reasonable, nor fair,” he said. In the last 18 months, Valentine said costs have escalated and supply issues have become a concern. To his knowledge, only State Farm has reduced what it is willing to pay in the last six months. “All of our costs have done nothing but go up. We counter that by passing that on to the customer,” Valentine said. (C) 2021 by glassbytes.com. Reprinted with permission. All rights reserved. For more information contact www.glassbytes.com.

Broadly Launches into Collision Repair Broadly, Inc. an award-winning provider of software solutions for local businesses, announced June 17 its official launch into the auto collision repair sector. Broadly’s reputation management and communication tools are already helping thousands of auto body shop owners boost their online presence, attract new customers, engage with the modern consumer and make payment processing simple and contactless. Since launching in 2014, Broadly has helped thousands of local business owners grow successful businesses through a variety of high impact features— including web chat, text messaging, automated review requests and contactless payments—all aimed at increasing revenue and efficiency while delivering meaningful customer experiences. For more info about how Broadly can help grow collision businesses, connect at https:// broadly.com/schedule-demo/ Source: Broadly

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 29

Continued from Cover

Look Like in 2035 sands, not two or three thousand, and shaving an hour here or a procedure there. These things are going to cost a lot to repair.” Other speakers agreed the repairer-insurer-OEM dynamic will change significantly by 2035.

be eliminated entirely. “Look at how you have Tesla Insurance, or Onstar Insurance from General Motors,” Spears said. “You’ll probably have a vertical that will take care of that customer much, much better than [separate companies] that don’t have the incentives to work together.” Terlep said the added cost of vehicle safety systems will have led

“It’s not always easy to conceive what’s going to happen in the future. We’re guessing at best.” — Sean Carey “One of the things I foresee has been happening outside of our country for many years,” said Frank Terlep, co-chairman of the Future Disruptions Committee. “When you buy a new vehicle in 2035, you will be getting your insurance with the vehicle. That’s going to change the model.” Jimmy Spears, a former executive at USAA who is now with Tractable, agreed the line between automaker and insurer will blur or

to more vehicles being declared total losses, with the repairable vehicle count dropping “as much as 30 or 40%.” “You’re going to have to be a licensed professional to get access to those safety systems,” Terlep added. “A lot of people don’t want to hear that, but I just don’t see the OEMs and the government releasing direct access to all the safety systems.” Committee co-chairman Jake Rodenroth agreed.

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“You have to be licensed to cut hair but not to calibrate ADAS or cut panels off cars or work on electric vehicles,” he said. “That’s got to change.” Several speakers agreed by 2035, accessing OEM repair information will be less “clunky” and time consuming, no longer requiring use of multiple websites. “So in 2035, my prediction is the procedures will be living with the vehicle,” Terlep said. “You’ll be looking in the vehicle for those procedures, not on someone else’s website. The repair procedures will be presented to you based on sensors in the vehicle that will know: These areas are damaged.” Rodenroth agreed, noting collision repairers are not the only ones needing easier access to the information. “There are first-responders who need to know where they can cut a vehicle, where they can’t cut one. There are tow truck drivers who need to know how to safely tow a vehicle. They’re all in a race against time,” Rodenroth said. “They don’t have time to flip a book, or go

through an app or even to ask Siri. They need to have it easily accessible and immediate. Maybe it’s a combination of on the vehicle infotainment screen or on a handheld as they walk toward the car. But it’s got to be instant.” Also in the future, Terlep foresees more use of remote technicians, even those in other countries, for diagnosis and electronic work, given the shortage of technicians here. Rodenroth said he recommends the industry start recruiting “the tuner kids,” those who can customize a vehicle “to turbocharge it or create a bigger engine and push more fuel and air.” “They understand how the [vehicle] network works before they change it,” he said. “So when you bring them in, don’t ask them body shop questions. Ask them about how they feel about electronics and wiring diagrams, how immobilizers work and things like that. You’ll see some of them explode. I met one yesterday when I picked up a rental car. This kid was sharp. That’s the future technician right there.”

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Dept. Hours: M-F 8-7; Sat 8-4 mattn@bridgewateracura.com 32 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

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June CIECAST Explores Future of AI in the Collision Repair Industry by Chasidy Rae Sisk

Artificial intelligence (AI) isn’t just a vision for the future―it’s here now, and as it becomes more prevalent in the collision repair industry, auto body shops need to prepare to navigate its integration into various technologies, or risk being left behind. During the June CIECAST, “The Future of AI in the Collision Industry,” Driaan du Toit, vice president of business development at Solera, and Evan Davies, Solera’s chief technology officer, shared insights on the ways AI is currently used in the collision repair industry, as well as its future uses. “We all know the world has changed significantly over the past few years, and so have the vehicle and collision industries,” du Toit began. “Innovation is rapid, and consumer needs are requiring and driving rapid changes, including automation in the repair and claims processes.” The COVID-19 pandemic impacted collision repair, even as the

industry’s dynamic has been altered by increased vehicle complexity, including ADAS, autonomous vehicles and electric vehicles. All these changes require body shops to have differently qualified staff and cali-

a collision repair industry ripe for AI, du Toit believes. The digital experience is convenient and fast for policyholders, resulting in predictable outcomes. For insurers, AI-assisted decisions aid with early deter-

bration equipment and capabilities, du Toit noted. “Body shops and insurers must ensure accurate and safe repairs, according to standards, and these repairs, procedures and standards are increasing as equipment becomes more complex on a day-to-day basis,” he said. Technological advances create

mination of severity and accurate, consistent assessments, while shops using AI-assisted tasks increase billable hours and deliver better customer service. “Differentiation is key to survival for body shops,” du Toit said. Consumers are ready to adopt AI in the claims process. According to research conducted by Coleman

34 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

Parks and commissioned by Solera, 72% of consumers desire a fully automated AI claims and repair experience, while 83% would trust automotive claims driven by AI. More than three-quarters of consumers would favor body shops offering more digital channels to quote, book and track repairs. “The consumer demand is relentless […] Automated and digitized workflows is no longer a wish for the consumer of the industry, but reality and actively being utilized today,” du Toit said. “And this data is a strong indication the market is keen to embrace a modern AI driven claims workflow.” Body shops benefit from digital adoption with faster cycle times, improved productivity and better customer service. According to du Toit, AI-driven processes also “drive efficiency and higher margins. Shops are increasingly pressured to have skills and capabilities to deal with more complex repairs and consumer demands towards automation. “The main benefits body shops

can attain through implementing AI-driven technology in their businesses are faster cycle times across the repair process, as well as enhanced customer communications,” du Toit said. “Shops also enjoy productivity improvements because AI guides technicians through the appropriate repair procedures and minimizes the requirement for researching appropriate procedures. It helps employees in a body shop do the right thing without having to spend hours figuring out what that right thing is.” Alluding to the lack of skilled technicians entering the collision industry, du Toit pointed out AI-driven technology “lessens the burden for experience and knowledge by providing appropriate repair procedures and data for verification and guidance. Technology helps make the decisions and allows the technician to focus more on the execution of the repair. The end goal for the body shop is to repair more vehicles and to be more efficient in doing so. “My guidance to body shops and MSOs is to embrace this technology today, or face the danger of being left behind.”

du Toit examined how Computer Vision enables photo estimating in the claims process, providing an opportunity to bring speed and consistency to the damage estimating process through scalable technology that can be trusted. An automated line-by-line estimate can be generated within a few minutes after photos of the damaged vehicle are submitted. Machine learning detects damages from images, removing subjectivity and increasing consistency. Insurers use AI technology to “enhance the decision making at first notification of loss in terms of triage, ensuring that total losses do not enter the repair workflow,” du Toit said. “The most relevant benefit for a body shop appraiser is the ability to go to the intake yard, take photos and obtain a line-by-line, detailed estimate in less than three minutes, a significant reduction in the time and skills required by a repair shop appraiser to complete and submit an estimate, taking less than 10 minutes on average.” du Toit recommends using AI “to validate and justify the appraisal already received from the insur-

er to make sure you’re not missing any actions, procedures or labor times. This will significantly reduce cost to deliver against the ‘new normal’ whilst driving significantly improved customer experience and customer satisfaction ratings. Body shops want to repair more vehicles, and by implementing this technology, you’ll have that opportunity. “The benefits for body shops and MSOs are vast,” du Toit added, suggesting a digital platform with enhanced automation, which allows for seamless interaction between all parties, is “the holy grail” and leads to accurate, consistent outcomes. “Body shops and MSOs that embrace this in their processes will most certainly lead and probably win this race,” he said. Looking at next-generation AI, Davies explained the objective is “to automate the claims management process as much as we can, and to do so in the appropriate way, by using advanced AI algorithms […] which allow us to enable human-level decision making and provide insights and information that can predict and project the direction of where a claim

should go. By doing so, we can increase the efficiency and accuracy of the claims workflow process.” The meta data collected through Computer Vision flows into the decision-making process of how to best create a dynamic workflow based on consumer needs and behaviors, which can be further augmented with more information about the vehicle itself. “Advanced AI algorithms allow shops and insurers to utilize information obtained during the claim initiation to flow into the decision-making process to create a dynamic workflow,” Davies said. “The outcome of AI across its entire life cycle will result in increased renewals, increased cash out settlements, reduced leakage, improved margins, auto authorization, increased straight through processing and claims auditing.” AI assists shops in determining the way to “best understand how to provide that decision-making for the best outcome of our consumers, our insurers and the body shop in that entire life cycle itself,” Davies said, as he discussed collision repair industry trending towards EVs and See June CIECAST, Page 55

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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.

Use Tech to Kick ‘Timesuckers’ Out of Your Collision Repair Shop I was writing an email to one of my collision repair clients recently, and used Google to try to find a different term for “waste of time.” One of the results that popped up was “timesucker,” defined as “an activity to which one devotes a lot of time that might be better or more productively spent doing other things.” Spending time on something that doesn’t create value for you. There’s actually a noun for that. Timesucker. Who’da thunk? That got me thinking about some of the things in the collision repair industry that are timesuckers, taking up a lot of time for auto body shops. I was emailing the client because I’d been looking at some changes I’ve found in what the average collision repair business is spending on “SGA wages.” SGA stands for sales and general administration. Those are all the folks in your business who aren’t actually working on cars. Their wages are sometimes referred to as “non-productive employees,” not because they aren’t doing important work, but to separate it from the wages of technicians and those actually producing repairs. I knew from working with my 20 groups and private clients that several years ago, an average collision repair facility’s SGA wages were hovering around 10% of total gross sales, on average. From what I’m seeing now, that average has increased to between 13% and 14%. For example, a shop with $3 million in annual sales had been spending $300,000 in administrative wages, not including benefits; today, that number is closer to $390,000. That is a huge increase. I will admit the sample size I’m using to extract this data isn’t large. But regardless of the actual numbers, it’s no secret administrative costs in the collision repair industry have risen. You’re probably as aware of the reasons for that as I am. Some of it could be because insurance companies have shifted more and more

of their administrative tasks over to shops, both DRP and non-DRP. Another reason: It requires more administrative time just to research OEM repair procedures. And there are more administrative tasks involved in delivering an exceptional

customer service experience. And increases in labor rates generally haven’t kept up, so SGA wages continue to rise as a percentage of gross sales. So what should a shop owner do? Try to reduce SGA staff? It’s very difficult to try to get employees to do more with less. It just leads to stress and burnout for everybody. So what you really need to figure out is where the timesuckers are in your shop. What are things that require time that could be better spent on things that add more value? What is your team doing manually now that could be automated, that could be made easier using technology? A good place to start―I challenge the auto body shops I work with to take a new look at their management system. According to our “Who Pays for What?” surveys, more than 90% of shops are using a management system. But when was the last time you contacted the supplier of your management system and said, “Can I get some update training on this? Can you help me discover how to automate more of the things we do?” For example: Maybe you’re still calling customers to remind them of their appointment the next day. Could your system automatically send those customers a text mes-

38 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

sage reminder about it rather than your staff having to call? Maybe you’re calling potential customers who don’t schedule a repair right after an estimate. Is there a way to automate a text or email follow-up instead? When I work with a collision repair business on SGA wages, I like to start with a big easel pad or white board and ask them to write down everything they do manually so we can start figuring out if there on things on that list their management system will do for them. Ask your system provider: Are there ways I can use your software to do this task? That’s being proactive instead of reactive. Think about your parts processes, for example. Does your management system automatically show you the status of all parts, or do you have to chase this down?

If you have a designated parts person, there’s a chance he or she is spending up to half of their administrative time inputting parts invoices into the system. Does the system allow you to import a parts invoice from a vendor so you don’t have to enter it yourself? Bingo, you just knocked off 15 to 20 timesucker hours a week. How about rental car updates? Are you doing this manually, or can your management system update the Enterprise Entegral system automatically, for example? It all comes down to working smarter, not harder. In almost every collision repair business, there are timesuckers that could be eliminated using technology.

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Product Innovation

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

with Ed Attanasio

Tradiebot: New Collision Repair Training Software An Australian-based advanced soft- all over the planet, Tradiebot is suc- Simulators won’t replace inware company that develops immer- ceeding by helping people and or- structors and I-CAR probably isn’t sive technology solutions for training ganizations to perform a wide range going to hire robots to teach clasand informationwith delivery in theLedoux auto- of tasks―from applying primer to a ses―yet―but augmented reality is Gary motive and trade sectors has been fender all the way to plastic and me- here to stay because it’s effective getting rave reviews from students tal welding techniques. and easy to integrate into any traiand teachers worldwide. ning program. Tradiebot, founded three years Training on a virtual ago, develops cutting-edge systems system has proven to be using technology like augmented rehighly effective in many inality and virtualwith environments. Thedustries. Today, bus drivers Stacey Phillips se systems are integrated seamlessly can learn their routes via with automotive businesses such as augmented reality systems, auto body shops, car rebuilders/cusso your kids won’t be late to school, and doctors now tomizers and large collision repair Students and trainees can learn collision repair techniques practice on virtual patients centers. from their smartphones and other personal devices while in order to improve their The company has partnered with using Tradiebot skills and techniques. some key industry players including with Anderson Beth Rutter, Tradiebot’s di- Tradiebot can provide training universities, schools andMike government bodies to develop industrial innovati- rector of industry and customer en- for anyone who works in an auto on and digital transformation through gagement, North America, can see body shop, but currently its main foits training platforms. a future where schools or training cus is developing virtual reality pro With an enormous need for new facilities rely almost exclusively on grams to train entry-level refinish technicians, as well as augmented talent in the collision repair industry immersive training.

OE Shop Certification

Product Innovation

From the Desk of Mike Anderson

reality technical information systems and a robotic 3D printing headlight Repairbot. As the world enters the age of electric vehicles, Tradiebot is prepared to be on the cutting edge when it comes to all of the associated training that will be required. “We can use virtual training for anything you can imagine, and with all of the processes associated with EVs, our solutions are ideal,” Rutter said. “We can train someone in every aspect of this industry, including auto diagnostics, estimating, aluminum repair, plastic welding and OE repair procedure, in some cases. Our systems work especially well when techs are trained for repetitive tasks.” A 2019 study on the use of virtual reality (VR) training for soft skills by professional services from See Collision Repair Training, Page 46

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Industry Insight with John Yoswick

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

GM Scales Back Post-Crash Inspections Requirement for Collision Repair Shops

Shop Showcase

General Motors recently rolled out be replaced; if not deployed, a via significant overhaul of the vehi- sual inspection of the module cover cle inspections it calls on auto body is sufficient, provided no “deformawith Ed Attanasio shops to perform post-collision, say- tion, distortion or indentations” are ing the changes in no way compro- seen. mise safety. There is also additional infor The automaker previously had mation from GM’s engineers about a long list of such inspections it re- many of the inspections, such as quired “after any collision,” includ- what to look for during visual ining inspection ofwith the steering wheel spections of different components. Ed Attanasio

Social Media for Shops

SEMA Show Goes On with Ed Attanasio

the needed vehicle repair procedures such as scanning or calibrations. “This is simply talking about what you should be inspecting during the repair process,” he said. “It is only part of the process. It doesn’t replace any of the other requirements we may have.” Eck was also asked about the issue of insurers refusing to pay for the post-crash inspections GM calls for. “It’s a touchy issue for me as an OEM. We’re not the ones paying the bill,” Eck said. “The repairers are the ones doing the work. Our job is to provide all the content and all the information necessary for the repairer to say, ‘This is what I need to do to repair the vehicle properly, safely, and to make sure it’s ready to go back on the road.’ And he should get paid for the work that is necessary for that to happen. But it’s hard for

us as an OEM to step in the middle of a conversation about a transaction that is happening between the repairer and the insurer.” He said he hopes insurers see the revised post-crash inspections as “a reasonable approach without compromising safety.” He also said vehicles continue to change, and the excuse of “Well, we’ve never paid for that in the past,” shouldn’t apply. “It’s what should we be doing now with what we have and what we know and what these vehicles are expected to do and perform relative to protecting the occupants inside and [pedestrians] outside the vehicle,” Eck said. GM acknowledged last year that among 17 automakers, it and Subaru were the only two that required extensive inspections following any collision, regardless of severity.

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Media and Publicity for Shops

General Motors now says most post-crash safety inspections are necessary only after “any collision that exceeds minor outer body panel cosmetic distortion.”

with Ed Attanasio

and column, the instrument panel Given only a seat belt inspecmounting points and brackets and tion is required in the event of colliseat mounting points. sion repairs that involve only “minor It now says most inspections outer body panel cosmetic distorare necessary only after “any colli- tion,” Eck was asked to clarify what sion that exceeds minor outer body types of repairs that might include. panel cosmeticwith distortion.” “If you’re looking at just the StaceyThis Phillips eliminates the need for some “pret- front quarter panel, no mounting ty invasive” steps, said John Eck, brackets or no structural support collision manager for GM, in a we- brackets are damaged,” Eck cited as binar about the changes, like “re- an example. “Or a fascia that might moving the headliner or…dash, or be cracked but the bumper bars armeasuring a steering en’t damaged and there’s no airbag withcolumn, Staceywhen Phillips all you’re doing is replacing a fascia deployment. Or that side mirror that without any structural repair.” comes off backing out of a garage.” One exception: GM wants “ev- A dime-sized dent on a rocker ery seat belt of every [GM] vehicle panel? “A rocker panel is not a cosmetinspected every time” a vehicle is in ic outer body panel,” Eck said, meanfor repairs, “regardless of the [crash] ing safety inspections must be done. with Stacey Phillips The document applies to all severity level or what’s being done” to the vehicle. GM vehicles, though it has been When damage is more than integrated into GM’s online repair “minor outer body panel cosmet- procedures only for 2021 and 2022 ic distortion,” GM has a list of the models so far. Use the search term “unrelated components that could be “inspection” to find the document subject to damage” for Stacey which further in GM’s online system for those with Phillips inspections are needed. vehicles. Until it is integrated with For each of these, the new doc- the repair information for older veument lists different steps necessary hicles, it can be downloaded at the based on whether there has been an www.genuineGMparts.com webairbag or pretensioner deployment. site. If a front airbag has deployed, for Eck emphasized the inspection example, the steering wheel must document in no way replaces any of

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Strategies to Help Auto Body Shops Navigate the Semiconductor Microchip Shortage by Chasidy Rae Sisk

The global semiconductor microchip shortage has been impacting vehicle manufacturing for the past year, but as the shortage persists, some experts anticipate its effects could be felt by the collision and automotive repair industries in the second half of 2021, potentially causing delays in cycle time as replacement parts become less available. Although collision repairers cannot control disruptions in supply, Jade Terreberry, director of dealer sales analytics at Cox Automotive, offered “7 Strategies for Navigating the Chip Shortage” during a recent educational webinar, presented by Autotrader and Automotive News’ PowerTraining. Moderator Terry Kosdrosky, audience engagement and social media editor for Automotive News, welcomed attendees and introduced Terreberry, who promised to identify “opportunities in areas where you can focus in the coming months to drive strategy, precision and accura-

cy to meet your goals. We’re going our businesses[…] We’re going to to cover seven very specific strate- talk about driving our business into gies, but the message is bigger than the future.” Before exploring the strategies, that.” Identifying the cause of the Terreberry emphasized the impormicrochip shortage as “continued tance of auto body shop owners unaftershocks of the pandemic,” Terre- derstanding the market, where their berry said, “A year ago, we couldn’t business is today and where they say how big this supply and demand want to be in the future. imbalance situation would Shops only want three become, but we also know things: to make more monthis industry is tough, and ey, to sell more orders and it’s gritty, and it’s smart, to create loyal, lifetime and we always use technolcustomers, and every acogy to change, adjust and tion taken by the business really catapult us into the should be designed to drive future. those direct outcomes. Jade Terreberry “If you think about the It’s easy to “get caught disruptions [in the past] that creat- up in a lot of the minutiae of feeling ed global supply chain issues, we like we are doing things to move the always make it through,” Terreber- needle within our business, but if we ry said. “Not only do we make it can’t measure how it drives those dithrough---in this industry, disrup- rect outcomes, we cannot be focused tion is truly the catalyst that helps on it today,” Terreberry said. “We us change and find better ways to have to stay focused on our goals.” be more efficient and smarter to Acknowledging the disruption meet our consumers’ needs in better varies by industry segment, Terreways to ensure that we have a multi- berry insisted each impacted segpronged revenue stream approach to ment requires a specific strategy.

Acura of Westchester

“We have to be efficient with the dollars we spend, we have to be extraordinarily careful and we have to understand what’s working and what’s not,” she said. “Ultimately, the market is different by the day, and consumer demand is also different. We know that these supply chain constraints are out of our control, but we have to focus on some of the things that are in our control for us to be able to close the gap and just focus on our market share. Supply chain constraints are out of our control, but how we handle them isn’t.” Terreberry offered several strategies for dealing with the microchip shortage that body shops may find useful. “Not all personalization is created equal. You cannot be everywhere all the time. This is quality over quantity messaging,” she said. “We believe our clients understand data, want to use data and want to be as efficient as they possibly can. So, we really started focusing on growing this audience. “Our biggest competitive dif-

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44 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

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ferentiator is the amount of data we have and our ability to […] be able to translate that into a consumer experience, and into consumer advertising that captures those folks at the right place in the funnel, drives them back to our experiences, gives them the ability to navigate through those and then gives you the ability to work quality leads and spend your time doing quality things is more important than ever.” Shops that want to make more sales, increase profitability and establish a loyal customer base should “measure everything to be efficient with your time and your money,” Terreberry said. This means “keeping your funnels full, but using technology to your advantage and being laser-focused. For those of you that have used reporting, whether that’s in your CRM or whether that is in Envision, or within a third-party data aggregator’s tools to understand what’s working or what not, I want to challenge you to take that one step further, because of the current market conditions. “And that one step further means using the data that exists there

to look in the rearview mirror, to tell a performance story or to measure an ROI equation,” she said. “Today, you have to look at so many different things. If you’re not using that data to decision make, promote, optimize and determine where to spend your time, you’re not using the data the right way. But your competition is using it correctly, and that’s how they’re finding that edge on you, day by day.” Collision repair facilities, service shops and dealerships should also “be nimble and be aware. Consumers don’t stop wanting or needing their cars when there’s a chip shortage,” Terreberry said. “Use the full picture of everything at your fingertips to make decisions. Be laser-focused with your time, and plan your work.” Terreberry offered additional advice to dealerships related to streamlining inventory acquisition to disposal strategy, reimagining certified pre-owned segments and extending slow-moving inventory beyond the immediate market. She also discussed the importance of focusing on fixed ops, not-

ing, “Fixed operations [is] the most stable segment of revenue that you can have within your organization today. We all know people just started using their vehicles more. We expect to see more and more people return to the office place, but right now, 43% of consumers are saying that they plan to put more miles on their cars on 2021 than they did in the years before the pandemic, and 41% of consumers have told us that they have summer plans and are planning on using their vehicles to get there, versus other methods of transportation. “And so, we’re seeing this steady increase of consumers visiting [the Kelley Blue Book] Service and Repair Guide. Just this year alone, over 9 million service shoppers have gone to the service and repair experience, indicating that people are not only hitting the roads again, but that they have a different expectation and a different way that they want to interact than they ever had before.” Terreberry recommended businesses set specific goals around each strategy that it chooses to imple-

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ment, but she also stressed the importance of considering conversion. “Are you converting consumers into transactions?” she asked. “Sadly, not everybody is going to succeed, but ultimately, the market share and measurement of your success in today’s environment from a multi-pronged profitability perspective is what is going to help you navigate through […] database decisions that you can make to streamline in those areas and start moving the needle, and to streamline our processes and to train our people on how to meet consumers where they want to meet us with the experience that they want to have, because if you don’t, somebody else will.”

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Continued from Page 40

Collision Repair Training Price Waterhouse Coopers discovered when compared to traditional training methods―self-paced online learning and classroom education― VR simulations helped employees become more confident in their ability to perform their jobs, taught them faster and created a stronger emotional bond to training content. They compared the three main forms of learning―classroom, elearning and VR training―and found people retained the imparted information more effectively using VR. Tradiebot’s smart platforms can fast-track training and hiring, which is more valuable now than ever due to a lack of a skilled and experienced workforce in collision repair, for example. “The global manufacturing industry is undergoing a transformation with how work is to be done. We need to be smarter, faster and more agile to accommodate the rapid changes in market demand,” ac-

cording to a company press release. “Tradiebot is developing the technology to adapt, repair and rebuild. Our systems bring knowledge and mastery of skills to your fingertips with a tap on a touch screen. Design detail and sophisticated machines

They’re able to absorb the data more quickly and remember it longer, as well as practice without experiencing anxiety. “By using our systems, students are able to see it, hear it and do it, and by doing all three, they are able

Making learning fun and less stressful, Tradiebot will hopefully attract new skilled professionals into the body shop world as a result

will take the time and tedium out of even the most complex preparation and repair processes.” By using Tradiebot, job candidates can hit the ground running as opposed to learning on the job.

to retain the information at approximately 90%,” Rutter said. “Since studies claim that people retain 5% of what we see one hour after it’s presented and roughly 30% after reading it, you can see that the in-

crease in retention is significant with VR.” Another big part of the Tradiebot approach revolves around the fact it’s done everything it can to make all of its training modules fun and engaging in order to create a comfort zone to promote learning. “When the user puts on their gear and jumps into the paint booth, they are intrigued, and once they realize that it’s fun, they are less anxious and more open to learning,” Rutter said. Will Tradiebot help get more young people interested in becoming collision repair professionals by making training easier, more hands-on and fun? “If you look at it, the collision repair industry doesn’t do a lot to attract new talent, by starting them out at minimum wage and in many cases, saddling them with major debt from student loans,” Rutter said. “But, if Tradiebot can get students interested in learning through full immersion and virtual reality, the future for this industry will get a much-needed boost with a fresh and skilled labor force.”

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Americans Cut Driving Nearly in Half in Early Stage of COVID Crisis The COVID-19 pandemic and associated restrictions in the spring of 2020, such as stay-at-home orders, led to a drastic drop in U.S. road travel and a sharp increase in the number of people who chose to stay home all day. While the dramatic change in traffic patterns was widely noted last year, new research from the AAA Foundation for Traffic Safety’s New American Driving Survey (2020) provides compelling month-by-month data that examines the types of trips and the characteristics of the people who altered their driving habits. According to the research, the average number of all daily personal car trips plunged 45% in April 2020 and 40% for trips by all modes of transportation combined. The dip in travel moderated later in the year but remained below 2019 levels. “The COVID-19 pandemic has had a profound impact on our commute habits and patterns in the United States,” said Dr. David Yang, executive director of the AAA Foundation for Traffic Safety. “Findings based on our survey data provided some contextual information to understand better how this unfortunate event has affected the way we travel.” Daily trips for all modes of transportation fell from an average of 3.7 trips per day in 2019 to 2.2 trips in April 2020, before slightly recovering. After abruptly decreasing in April 2020, daily trips by U.S. residents rebounded somewhat in May and June and then remained at approximately 20% to 25% below their 2019 levels during the second

half of 2020. The survey results show early in the pandemic, reductions in travel were most substantial among teens and young adults (ages 16–24) and among those ages 65 and older. But later in 2020, reductions in travel were more uniform across various age groups. Other key findings: Daily Car trips: (as a driver or passenger) fell from 3.2 pre-pandemic to 1.8 in April 2020, before rebounding slightly to 2.6 trips for the rest of the time period. All travel by any mode: Daily trips in April 2020 by people living in urban areas dropped 42%, versus 25% for their rural counterparts, before leveling off to a 20% to 30% reduction in both groups for the rest of the survey period. Travel by transit, taxi or rideshare: The proportion of people who reported making any trips by transit, taxi or rideshare plummeted from 5.5% pre-pandemic to 1.7% in April of 2020, before leveling off at approximately 2.4% for the remainder of the year.

Staying At Home: The percentage of the population who remained in the same place all day fluctuated between 9% and 14% before the pandemic but increased to 26% in April 2020, before stabilizing at levels slightly higher than those before the pandemic for the remainder of the year. The proportion of respondents who stayed in the same place all day quadrupled among those with the highest levels of education (from 5% in the second half of 2019 to 21% in April 2020), whereas it doubled (from 15% to 30%) among those who did not attend college.

Marital Status: The percentage of married people staying home nearly tripled from 8% in 2019 to 22% in April 2020, versus 12% and 29% for unmarried people. The numbers for both groups remained elevated over pre-pandemic levels for the remainder of the year. Despite fewer cars on the road and more people staying home, the National Highway Traffic Safety Administration (NHTSA) recently estimated 38,680 people died in motor vehicle traffic crashes in 2020---the largest projected number of fatalities since 2007. It is an increase of about 7.2% over 2019. “It’s counterintuitive to see the rate of traffic deaths spike when so many of us were driving less often,” said Jake Nelson, AAA’s director of traffic safety advocacy. “As the U.S. climbs out of the COVID-19 pandemic, highway safety officials will need to double down on curbing speeding, substance-impaired driving and failure to buckle up.” Source: AAA

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Commuter Travel: Work-related travel by all transportation modes dropped by 40% in April 2020, likely reflecting a mix of layoffs, job losses and telecommuting. Commuting trips made by workers on days when they worked decreased by approximately 22% relative to pre-pandemic levels as well. In the following months,

ASE.com Launches Spanish Language Option The National Institute for Automotive Service Excellence (ASE) has added a new Spanish language option to its ASE.com website. By clicking on “English” in the lower right corner of the homepage, visitors to ASE.com can select “Español” as their preferred language. The Spanish-language option features the same easy navigation and helpful information as the English version, including how to

commuting trips returned to approximately 26% below pre-pandemic levels among the population as a whole, likely due to increases in the proportion of Americans who were working. Commuting remained approximately 25% below pre-pandemic levels among workers on days when they worked, indicative of continued widespread telecommuting.

prepare for, earn and maintain ASE certification. Earlier this year, ASE announced it had expanded the number of test offerings with Spanish-language translations to include all of the auto series certifications tests (A1-A8), as well as the G1 auto maintenance and light repair certification test. Source: ASE

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 51

Art, Innovation and Car Design Collide in the Life of Michael Santoro by Ed Attanasio

I think everyone can agree a well-designed car is a piece of art, like a Donatello or a Rodin. While it’s true automobiles are created to transport people and things, that doesn’t devalue their design or aesthetic appeal, which is why some call them “sculpture in motion.” A vehicle starts out as a series of illustrations that eventually become a clay sculpture. Throughout the process, a wide variety of sometimes conflicting priorities must be considered when creating a car design. These include the needs of the driver and passengers, the ability for the design to be manufactured and the hopes and dreams of the designer who created it. Michael Santoro of San Diego, CA, is a former automotive designer who now teaches car design. He founded and oversees a company making Apple accessories, which has met with huge success, and is also a highly-respected artist known

for paintings of his favorite Formula it back to its iconic roots while pushOne drivers, including Niki Lauda ing it forward into the new century. and Ayrton Senna. Landing a job as a car designer A native of New York City, San- with Chrysler at 21 was unheard of. toro graduated from the world-re- As the new kid on the team, Santoro nowned High School of Art was able to bring a young & Design, where he was a and fresh perspective to evmember of the first-ever inerything he worked on for dustrial design high school the carmaker. program in the country. “I knew that this was After graduating from a great opportunity and a Pratt Institute with a bachedream job,” he said. “You lor’s degree in industrial de- Michael Santoro have a better chance of sign, Santoro was accepted of San Diego, CA, is playing in the NFL than you as the first-ever post-gradu- a former automo- do becoming a professional tive designer and ate design intern at Chrysler car designer in the United inventor who now Corporation where, upon teaches car design States, so I was excited to completion, he received an get a chance.” and oversees his company MacCase, offer to join the staff. Santoro was able to see Santoro spent six years the creators of the a car design team in action Apple-specific case as an automotive designer and learned as much as he market at Chrysler, where he crecould. ated the groundbreaking cab-for- “Within a given studio, each ward exterior design of the 1995 designer creates his or her own proCar of the Year, the first-generation posal. You’re competing with your Chrysler Cirrus and its sister vehi- coworkers for the opportunity for cle, the Dodge Stratus. Before leav- your design to go into production.” Most production programs are ing Chrysler, Santoro penned the 1996-2006 Jeep Wrangler, bringing on four-year cycles. Once the vehi-

cle is in production, they will normally do a facelift every two years, at which point they will do things like tweaking the front and rear fascia or adding new wheel options. For a car’s exterior, designers work with industrial sculptors to create full size models in clay over a wood and foam structure. Once the model is complete, it’s presented to upper management, who choose from the various proposals presented. In this case, it was Chrysler CEO Lee Iacocca and Vice Chairman Bob Lutz, among others. For the Cirrus/Stratus program, eight full-size clay models were done. The board liked Santoro’s design for the Cirrus and it went into production, eventually chosen as the 1995 Car of the Year. Did Santoro get a bonus when he and his team received the highly prestigious award? “No, but I got to see my design made real and put into the world. That’s a happiness no one can ever take away.”

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*Kia Genuine replacement parts sold but not installed by an Authorized Kia Dealer are covered for 12 months from purchase date, regardless of mileage, for the part only, and any labor charge is the consumer’s responsibility. autobodynews.com / AUGUST 2021 AUTOBODY NEWS 53

When a car is created, a series of safety features are integrated into the design with a goal of protecting the inhabitants while still looking cool. “Much of what we made was predicated on how to mass produce it and whether or not it was safe,” he

things that any design team has to keep in mind all the time.” Fewer parts mean easier and less complex repairs while saving money, Santoro said. “We concentrated on using fewer parts with a focus on things like fit and finish, as well as making everything lighter and more aerodynamic. If a bumper assembly consists of nine parts as opposed to 20, for example, the replacement cost will be lower and the repair logically will be easier when it goes into the body shop.” After six years with Chrysler, Santoro returned Santoro is also well-known for creating amazing exteriors home to New York City, for race cars where he went from designsaid. “We were always made aware ing automobiles to airplanes, as a of it and communicated with engi- consulting designer for Walter Dorneering on a regular basis. win Teague, America’s oldest de “We also had to look at any design consultancy. There he worked sign from a collision repair perspec- on numerous programs including tive. When the car gets in a wreck, creating conceptual design interiors how will the technician be able to for Boeing Aerospace and the profix it? Will they have to remove a duction interior for the Gulfstream lot of parts to do the job? What are G5 aircraft. the replacement costs? These are the After two years in that position,

Santoro returned to automotive design work, as a consultant working on the Vector M12 supercar and Vector M12 “American Anthem” show car shown at the North American International Auto Show. Additional projects followed, including the Lamborghini Jota show car. They made a grand total of 14 Vectors with 12 still in existence, which means you might see one occasionally at a SEMA Show, for example. In 1999, Santoro took his skills designing cars to create the MacCase, the company that would produce the world’s first Apple-specific case. It was an instant success and lauded for its originality and custom fit. MacCase now features the Premium Leather Collection and ships to Apple users worldwide. Santoro’s painting career began when he was only 17 in New York City. “I did a drawing and took it to a local gallery called l’art et l’automobile and the owner, Jacques Vaucher, encouraged me to do more,” he said. “That piece sold quickly and pretty soon Jacques was asking for

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more art. It was pretty cool to be a successful artist in New York as a teenager!” Santoro’s career as a car designer has been written about in publications like AutoWeek, Automobile, Road & Track, The Detroit Free Press and Car Styling. He was also featured in a New York Times article in 1994, “The Designers Who Saved Chrysler.” Santoro has also been a part of student design reviews at the College for Creative Studies in Detroit, MI, and Art Center College of Design in Pasadena, CA, as well teaching transportation design at Pratt Institute in New York City. He currently teaches two courses, Introduction to Automotive Design, Professional Techniques, Tips, Tricks and Secrets for the Aspiring Car Designer and Automotive Design Level 2, both of which are currently available on Udemy.com.

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Continued from Page 35

Tesla Wanted $16,000 for a Simple $700 Model 3 Repair by Ameya Paleja, Interesting Engineering

How much does one pay for minor repairs for a Tesla car? As one Tesla owner found out, almost half of the vehicle price. After hitting some debris on the road that damaged his battery pack, the owner visited a Tesla service center, where he was handed a repair estimate of $16,000. Unable to foot that bill, the owner sought help from a non-authorized garage, which diagnosed and resolved the issue for $700. The standard Model 3 Tesla is rear-wheel drive, with an option to make it all-wheel drive. For users who exercise this option, the company puts a drive unit in the front, next to the battery pack. The cooling system runs through the car and connects to the battery pack through a nipple. For this Tesla owner, the debris resulted in the coolant leaking at the nipple of the battery pack. But since the nipple was molded outside the battery pack, which is not serviceable at a Tesla Service Center, they could only offer

replacement of the entire battery pack. This resulted in the quote shooting up to $16,000. Unfortunately for the owner, his insurance did not cover damages due to road debris, forcing him to look elsewhere.

He found help at Electrified Garage, which diagnosed the problem and found a simpler solution. They cut off the nipple and then threaded it back into the battery pack with a $15 brass fitting that can be found at any hardware store. They were able to fix the leak and charged the owner $700

June CIECAST for labor and their expertise. The real question is whether this is safe. Electrified Garages says, unlike internal combustion engines that generate a lot of heat, electric cars operate at temperatures well below 140 degrees. Most of the heat comes from the lithium-ion batteries, which they tested during the fix. Such instances reiterate the need to allow owners the Right to Repair, whether it be smartphones or smart cars. The increasing usage of technology has allowed companies to force subscriptions or channel after-sale services only through limited outlets, causing inconvenience and larger bills for device owners. This is set to change after President Biden is expected to allow Right to Repair in different sectors, beginning with agriculture. Interesting Engineering reached out to Tesla for their comments but hadn’t received a reply yet.

AVs, which are “highly specialized vehicles that require special skills and information.” “Start embracing and implementing this technology,” du Toit said. “Body shops will be allowed to focus more on executing repairs and less on the administration around estimating in the future. There will be less need for skills and experience as many things will be driven by the machine. Insurers will adopt AI driven workflows, and this will be the new normal. “Don’t fight it; embrace it! Humans will always be required to teach the machine and verify its results, but the need will become less as the AI gets smarter. Human interaction will be more focused on the outliers and more complex and sophisticated processes. “The willingness to adopt and implement AI has increased significantly,” du Toit concluded. “The demand is real. The change is real. And it’s here today.” A replay of the June CIECAST is available online.

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 55

AAPEX 2021 Opens Nominations

LKQ Corporation’s Elitek® Vehicle Services Expands into Remote Automotive Diagnostics and Programming

AAPEX is now accepting nominations for the second annual Shop Owner of the Year, Service Advisor of the Year and Technician of the Year awards. The awards recognize and elevate the essential services that auto repair professionals provide to keep the world’s 1.4 billion vehicles on the road. Nominations are due Sept. 1 and should be submitted online at www.aapexshow.com/serviceawards AAPEX 2021 will take place Nov. 2-4 at the Sands Expo and Caesars Forum Conference Center in Las Vegas. An independent panel of shop owners and industry leaders will select the award recipients. AAPEX will announce and honor recipients of the three prestigious awards Nov. 2, during the Keynote Session at this year’s in-person event. The AAPEX Service and Repair Awards were established in 2020. Source: AAPEX

Effective June 22, Elitek Vehicle Services, LKQ’s diagnostic services business, is expanding beyond onsite mobile diagnostics and repair to also include remote automotive diagnostics and remote programming. Repair facilities can now call one company, Elitek, to service all their diagnostic service needs. Since 2019, LKQ’s Elite Electronics and VeTech Automotive Electronics brands, now branded Elitek Vehicle Services, has grown to become the largest independent provider of mobile, on-site vehicle services to automotive collision repairers, mechanical repairers and national fleets in the U.S. With the addition of remote diagnostics, Elitek can provide shops with a seamless, end-to-end process and value proposition. Remote diagnostics: Shop technicians can plug in an OBDII device that remotely connects the vehicle to Elitek’s call center. The technician, with support from a centralized Elitek diagnostician, conducts the diagnostic scan(s), produces a scan report, enables remote programming where applicable and invoices for the

service. Mobile diagnostics: If additional onsite services are required, including ADAS calibration or mechanical, Elitek’s mobile service can be deployed to complete the repair, using an array of OEM software, tools and certified technicians. Increasing vehicle technology leads to more complex repairs, and Elitek is uniquely positioned to partner with the repair community to diagnose, repair and calibrate vehicle electronics, including ADAS systems. The combination of remote and mobile diagnostic services offerings puts Elitek a step ahead of the competition and serves customers better than ever with mechanical, AC service 1234YF, module programming, electrical repairs and an array of diagnostic services. Owning a full range of OEM diagnostic tools and offering these numerous services to automotive repair facilities helps improve a shop’s cycle times, reduces rental terms and improves the customer service experience, for both the repair shop and the vehicle owner.

“With the formation of Elitek, LKQ now provides the most comprehensive diagnostic services in the repair industry,” said Terry Fortner, LKQ’s North America vice president of sales and marketing. “Elitek is the premier provider of both remote and mobile diagnostic services. This expanded offering allows us to be more responsive to our customers, including those outside of our current mobile servicing locations.” “Our goal is to continue to provide superior customer service,” said Don Smith, director of Elitek’s Remote Division. “With the addition of remote services, we can be more responsive to a broader range of customers. And with LKQ’s Promise of Calibration, customers have the additional peace of mind in knowing that Elitek will stand behind the work performed.” For more information on Elitek’s remote capabilities or to pre-order a remote scanning device, contact Smith at dgsmith@lkqcorp.com, visit the website at https://elitekauto. com or call 888-8-ELITEK. Source: LKQ Corporation

GM Recalls 410,000 Trucks with Dangerous Airbag Inflators by David A. Wood, CarComplaints.com

More than 410,000 Chevrolet and GMC trucks are recalled because the roof-rail airbag inflators could rupture. Some of the trucks were recalled in December 2020 for the same problem, and this latest recall supersedes the previous recall. Included in the recall are 2015-2016 GMC Sierra 1500, 2500 and 3500 and Chevrolet Silverado 1500, 2500 and 3500 trucks that may have roof-rail airbag inflator end caps that may detach from the inflators. It’s also possible the airbag inflator sidewalls may rupture. The roof-rail airbag inflators are located above the headliners and may contain defects that cause the separations of the inflator end caps or splitting of the inflator sidewalls. The automaker says compressed gas will escape from the inflator, and the end cap or possibly other components can be launched into the vehicle and injure truck occupants.

GM says corrosion inside the inflator may occur from moisture because of how the supplier manufactured the inflators, and the problem can worsen in high temperatures. Three roof-rail inflators ruptured in 2015 Silverado trucks in June, one in Florida and two in Texas. The trucks weren’t occupied when the inflators exploded, and in all three cases the steel inflator sidewalls split open and released gas stored in the chambers. This was enough to convince General Motors to order the truck recall. General Motors dealers will replace both front roof-rail airbag modules. Interim owner recall letters are expected to be mailed Aug. 16, then truck owners will receive second notices when replacement parts are available. GMC Sierra and Chevrolet Silverado owners may contact GMC at 888-988-7267 or Chevrolet at 800-222-1020. GM’s recall reference number is N202324251.

56 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

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Carmakers in North America Worst Hit by Semiconductor Shortage North American vehicle production has been the worst affected by the shortage in the supply of semiconductors, including for its high-profit, low-inventory vehicles, according to the latest research from AutoForecast Solutions. It comes at a time of very high demand for vehicles in a market rebounding from the Covid lockdown. The question is, how will leading vehicle makers in the region position themselves so that this does not happen again? Kicking off discussions at this week’s Finished Vehicle Logistics North America Live conference, Joe McCabe, president and CEO, AutoForecast Solutions (AFS), said that the impact of the semiconductor shortage on production volumes globally was forecast to equal 4.57m units this year, with 285 plants impacted around the world (as of June 15). In North America, the forecast for vehicle production before the semiconductor crisis came to light was around 15.9m, according to AFS data. That has been revised down to 15.25m by AFS, meaning a significant amount of production has been lost. The production shortfall is being exacerbated by other issues at the moment, including airfreight under-capacity and vessel congestion at the West Coast ports in the US, all of which is impacting critical part supply for the Asian-based OEMs in North America. Impact on segments McCabe said the crossover vehicle (CUV) segment in North America was taking the brunt of the impact, with 48% of production affected by the semiconductor shortage. Crossovers are defined as those SUVs that share a platform with a passen-

ger car rather than a pickup truck. Around 16% of pick-up truck and large SUV production is also affected, which is hitting carmaker bottom lines quite hard as they are the highest profit vehicles, but these are all deemed recoverable in terms of production because vehicle makers do not want to lose such high value sales and will now find any means of getting them on the lots rather than sitting in storage waiting for microchips. That includes building the models with fewer chips. “They are building [pick-up] trucks without features like start/ stop and are going to analogue for the speedometers,” said McCabe. “They are [taking] out stuff that isn’t life-saving and pulling the content out just to get them on the market. You will see much more of that – reconfiguring the product to make sure they have more on the lots because the biggest issue is the sparsity of product on the dealer lots.” That point was backed up with direct input from one of the dealerships in the US. Brion Stapp, dealer principal, at Stapp Interstate Toyota, said that inventory was at its lowest point in decades and that even though vehicle haulers were making multiple calls a week at his dealership, more than 40% of the dealership’s supply for the next three months is presold. “As those trucks roll in on a daily basis we unload them and put them right into the sold inventory for our customers to take delivery,” he said. Whatever it takes, North American vehicle makers are will be getting those higher end vehicles on the lots and recovery in production and sales for this segment is expected

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by the third quarter of this year, according AFS, while recovery for other segments it not expected until 2022. The passenger vehicles, or sedan, segment has been less affected, though a sizeable 28% of production is delayed. However, recovering passenger car production is not a priority for OEMs in North America. The profit margin is much lower and new sedan sales have been declining for some years. A lot of production in this segment has either been cut completely or moved offshore to markets where they are still selling slightly better. Future proofing supply Now the vehicle makers are looking at what they can do so that this shortage never affects them as badly again. According to McCabe there will be a lot more vertical integration, with carmakers setting up direct partnerships with the semiconductor manufacturers, as Ford did in the past with the aluminium industry to secure its supply base.

There will also be greater investment by smaller-scale semiconductor manufacturers, according to McCabe. “More small-scale chip players will try to scale up and take advantage of government money because it is now an issue of national security,” he said. “They will take the billions and build more plants.” As reported earlier, the Biden Administration in the US has signed in an executive order designed to fortify US supply chains, including those supporting the production of semiconductors. Currently only 12% of global semiconductor manufacturing is in the US. In March Biden said the new administration in the White House would work with industrial leaders to identify solutions to the current shortfall. It is going to cost $37 billion in the short term to install the required capacity to satisfy US demand for semiconductors onshore, something the president said the government would be pushing for through House and Senate.

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TRUST FORD PARTS CERTIFIED PARTS WHOLESALING DEALERS CONNECTICUT

MASSACHUSETTS

NEW JERSEY

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Hoffman Ford Lincoln

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Malouf Ford Lincoln Mercury

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860-282-0861 860-290-6336 Fax

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845-623-5111 845-624-0075 Fax

EAST HARTFORD

Hours: M-F 7-5:30 Sat 7:30am-3:30pm fordparts@hoffmanauto.com

MARYLAND

Packer Norris Parts BALTIMORE

855-767-7278 410-574-8305 410-574-8389 Fax

Hours: M-F 7-5:30; Sat 8-3 www.packernorrisparts.com

PLYMOUTH

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Sarat Ford Lincoln

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888-809-5648 413-786-4474 413-789-3715 Fax

973-702-8000 973-875-7016 Fax

AGAWAM

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NANUET

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 59

Segments of Specialty-Equipment Industry See Growth During Pandemic The automotive specialty-equipment industry has largely weathered the pandemic, with many companies reporting sales growth over the past year and anticipating continued growth in the coming months, according to new SEMA Market Research. Findings from the new “SEMA State of the Industry—Spring 2021” report indicate that the majority of businesses saw significant sales growth during the pandemic: 66% of manufacturers, 60% of distributors and 40% of retailers/installers reported increased sales compared to 12 months ago, and nearly threefourths of all manufacturers and distributors expect sales to increase over the coming year. Filled with data on how the pandemic has impacted businesses in the automotive specialty-equipment industry, the 63-page market research report helps companies understand how the market is performing. Key findings from the report include: The specialty-equipment industry saw minimal staffing disruption because of the pandemic,

with most maintaining or growing staffing levels. Additionally, 83% of manufacturers, 77% of distributors and 63% of retailers/installers plan on hiring more staff over the coming year.

Manufacturers saw sales increase across many channels, especially direct-to-consumer through their company website and at independent specialty retailers. The industry saw growth across

Findings from the new “SEMA State of the Industry—Spring 2021” report indicate the majority of businesses in the automotive specialty-equipment industry saw significant sales growth during the pandemic.

Many companies selling in the pickup, sports car and classic segments reported double-digit growth in the past 12 months.

a variety of product categories. Manufacturers and retailers saw significant sales growth in performance categories especially, including in-

‘Who Pays for What?’ Survey: Auto Body Shops Increasingly Billing, Being Paid for Seat Belt Inspections General Motors’ recently-revised post-crash inspections continue to call for inspections of seat belts “after any collision,” and “Who Pays for What?” surveys continue to find an increasing percentage of auto body shops are billing—and being paid—for this procedure by the eight largest auto insurers. In 2016, when Collision Advice and CRASH Network first asked about seat belt inspections in their “Who Pays for What?” survey, nearly two-thirds of shops—63%—said they had never billed for it. This year, that has nearly reversed, with 62% of shops reporting they have charged for the labor to inspect seat belts. Among those shops, about one in three—34%, up from 24% in 2016—say they are paid for that procedure “always” or “most of the time,” and nearly an equal percentage say they are paid at least “some of the time.” The trend is good news for shops and consumers. But for this procedure in particular, Mike Anderson of Collision Advice, who

conducts the surveys in conjunction with CRASH Network, is concerned more with just making sure it gets done.

“Every OEM has a very specific procedure for how to inspect seatbelts,” Anderson said. “No matter whether you charge for it or not, we have an obligation to make sure that we’re fixing vehicles safely and properly, and that means following the OEM repair procedures when it comes to seat belts.” The latest quarterly “Who Pays for What?” survey is now

60 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

open through July. It focuses on “not-included” frame and mechanical labor operations. Shops can take the survey at https://www.surveymonkey.com/r/L3H3JQP Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 to 20 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at www.crashnetwork.com/collisionadvice. Source: CRASH Network, Collision Advice

take and suspension products. According to the U.S. Census Bureau, retail sales at motor vehicle and parts dealers hit $139.5 billion--its highest level in U.S. history. Despite the pandemic, consumers continue to work on their cars. According to a survey of Americansconducted by Hertz, more than 80% of Americans plan on taking a road trip this summer. This means a lot more driving, and potentially a lot more potential engagement with the specialty-equipment industry. At a time when most countries, like Japan and the European Zone, are experiencing economic contractions, the U.S. is showing strong growth after the disruption from the pandemic. This strong growth is expected to continue through the rest of 2021, as the services part of the economy fully reopens. To learn more about the current state of the specialty-equipment industry and outlook for the future, download the new “SEMA State of the Industry—Spring 2021” report today at www.sema.org/research. Source: SEMA

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Downeast Toyota / Scion BREWER

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Bell Audi

Paul Miller Audi

Audi Southampton

732.396.9630 732.396.9090 Fax M-F 8am-5pm Sat 8am-4pm dmcsorley@bellaudi.com

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Audi Silver Spring

Edison

301.890.3015 800.288.6982 301.890.3748 Fax M-F 7:30am-5pm wholesaless@mileone.com www.audisilverspring.com

DCH Millburn Audi

Silver Spring

MASSACHUSETTS Audi Shrewsbury Shrewsbury

888.751.7214 508.581.5880 508.845.1642 Fax M-F 7:30am-5pm audiwholesaleparts@mcgovernauto.com

NEW JERSEY Audi Meadowlands North Bergen

201.408.2085 201.223.7842 Fax M-F 7am-6pm Sat 8am-2pm jpooler@bbmcc.com

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Southampton

Maplewood

800.553.9250 973.762.2381 Fax M-F 7:30am-6pm Sat 7:30am-4pm ddipalma@dchusa.com www.dchmillburnaudi.com

Flemington Audi

NEW YORK Audi Brooklyn of Bram Wholesale Parts Network 866.770.5999 718.392.6570 Fax M-F 7:30am-5:30pm parts@lexusofqueens.com

Flemington

800.221.1256 908.782.1795 Fax M-F 7:30am-5pm Sat 8am-12pm www.njparts.com

Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers and are supported by a nationwide network of distribution centers to help ensure non-stocked parts are delivered the next day.

autobodynews.com / AUGUST 2021 AUTOBODY NEWS 61

Used Vehicle Prices Expected to Climb to Record Highs as New Vehicle Prices Stay Steady in Q2: Edmunds Consumers seeking relief from new car prices in the used car market might be a bit dismayed by used car prices as well, according to the car shopping experts at Edmunds. Edmunds data reveals the average transaction price (ATP) for used vehicles climbed to $25,410 in the second quarter of 2021 compared to $22,977 in Q1 and $20,942 in Q2 2020, marking the highest quarterly used ATP Edmunds has on record. “Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” said Jessica Caldwell, Edmunds’ executive director of insights. “Car shoppers are used to getting deals, and often far below the sticker price for new, so anyone returning to the car market for the first time in a while is in for some serious sticker shock.” Although used car prices are expected to climb to new levels in Q2, Edmunds data reveals new car prices appear to be leveling off—the ATP for new vehicles hit $40,827 in

Q2 2021, compared to $40,070 in Q1 and $38,895 in Q2 2020. Edmunds experts note this is due to a shift in the mix of vehicles available in the new market: Edmunds data reveals the share of pickup trucks dropped to 17.1% in Q2 2021 compared to 22% in Q2

action price during the pandemic, but the well of inventory has finally run dry,” said Caldwell. “Consumers who can be more flexible are buying more passenger cars and SUVs, and although they’re paying inflated prices for these vehicles, comparatively they command much

“Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” — Jessica Caldwell 2020, while the share of SUVs and passenger cars increased. SUVs made up 54.6% of the market in Q2 2021 compared to 51.3% in Q2 2020, and passenger vehicles made up 23.8% of the market in Q2 2021 compared to 23% in Q2 2020. “Pricey, optioned-out pickup trucks have been the darling of consumers and the primary culprit in boosting the industry average trans-

less than their truck counterparts. Other shoppers are forced to sit out of the market until what they want comes back in stock.” Edmunds analysts note the car shoppers who are still making purchases in the current market likely represent a more affluent portion of the population. “This is not a buying environment for people on the fringe of

being able to afford new car ownership,” said Caldwell. “Average loan terms are already quite long and interest rates are relatively low on average, so the consumer really has to make up the difference in price.” Edmunds experts advise consumers who are considering making a purchase over the Fourth of July weekend or later this summer to make a concerted effort to shop around their trade-in, which can be done for free on sites such as Edmunds. According to Edmunds data, the average trade-in value for used vehicles climbed to $21,224 in June, marking a 75.6% increase compared to June 2020. “In these unique market conditions, car shoppers must remember that they have the most negotiating power through their current vehicle,” said Ivan Drury, Edmunds’ senior manager of insights. “Although it’s important to do your research on available incentives, getting competitive quotes for your trade-in will be the smartest way to guarantee the biggest discount on your next vehicle.” Source: Edmunds

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Curran Volkswagen Stratford

203-378-6516

Volkswagen of North Attleboro North Attleboro

Fax: 203-380-3732 M-Th 8am-6pm; F 8am-5pm Sat 8am-2pm parts@curranvw.net www.curranvw.net

Fax: 508-695-0321 M-F 8am-5pm; Sat 8am-2pm kenr@driveavw.com www.driveavw.com

Lia Volkswagen Enfield

860-698-6890 Fax: 860-265-7840 M-F 8am-5pm; Sat 8am-12pm aguimaraes@liacars.com

MARYLAND Ourisman VW of Rockville Rockville

855-417-4511 Fax: 240-499-2488 M-F 8am-5:30pm; Sat 8am-5pm rockvilleparts@ourismanautomotive.com

www.rockvillevolkswagen.com

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NEW JERSEY Flemington Volkswagen Flemington

Paul Miller Volkswagen Bernardsville

Volkswagen of Kingston Kingston

908-766-1600

845.336.6600 x319

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Fax: 845-336-7436 M-F 8am-5:30pm Sat 8-1 www.vwofkingston.net kvangorder@vwofkingston.net

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Hudson Valley Volkswagen Wappingers Falls

Jeff D’Ambrosio Volkswagen Downington

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Platinum Volkswagen Hicksville

Open Road Volkswagen of Bridgewater Bridgewater

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800-922-7932 610-363-8250 Fax: 610-363-8227 M-F 7am-5:30pm; Sat 8am-2pm partsteam@ambrosio.us www.gojeffvw.com

516-822-4800

908-685-1068 Fax: 908-685-1547 M-F 7:30am-5pm; Sat 8am-3pm vwb.parts@openroad.com www.openroadvwparts.com

autobodynews.com / AUGUST 2021 AUTOBODY NEWS 63

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64 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

August 2021 Northeast Edition

Articles inside

Classifieds ��

Mazda Wholesale Parts Dealers ��

Toyota Wholesale Parts Dealers��

Nissan/Infiniti Wholesale Parts Dealers��

Porsche Wholesale Parts Dealers ��

Subaru Wholesale Parts Dealers��

Yonkers Kia��

DePaula Chevrolet-Ford ��

MINI Wholesale Parts Dealers��

Mercedes-Benz of Paramus��

Cadillac of Mahwah ��

Equalizer Industries, Inc ��

Jaguar Land Rover Cherry Hill��

Certified Automotive Parts Association ��

Ourisman Chrysler-Dodge-Jeep-Ram ��

Infiniti of Norwood ��

Schultz Ford��

Mercedes-Benz of Wilmington ��

Kundert Volvo��

Jeff D’Ambrosio Chrysler-Jeep-Dodge ��

Long Automotive Group��

New Holland Ford ��

August 2021 Northeast Edition

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Mazda Wholesale Parts Dealers ����������������������

Toyota Wholesale Parts Dealers�����������������������

Nissan/Infiniti Wholesale Parts Dealers������������

Porsche Wholesale Parts Dealers ��������������������

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DePaula Chevrolet-Ford ����������������������������������

MINI Wholesale Parts Dealers��������������������������

Mercedes-Benz of Paramus����������������������������

Cadillac of Mahwah ����������������������������������������

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Certified Automotive Parts Association ������������

Ourisman Chrysler-Dodge-Jeep-Ram �������������

Infiniti of Norwood ������������������������������������������

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Jeff D’Ambrosio Chrysler-Jeep-Dodge ��������������

Long Automotive Group����������������������������������

New Holland Ford �������������������������������������������

Classifieds ��

Mazda Wholesale Parts Dealers ��

Toyota Wholesale Parts Dealers��

Nissan/Infiniti Wholesale Parts Dealers��

Porsche Wholesale Parts Dealers ��

Subaru Wholesale Parts Dealers��

Yonkers Kia��

DePaula Chevrolet-Ford ��

MINI Wholesale Parts Dealers��

Mercedes-Benz of Paramus��

Cadillac of Mahwah ��

Equalizer Industries, Inc ��

Jaguar Land Rover Cherry Hill��

Certified Automotive Parts Association ��

Ourisman Chrysler-Dodge-Jeep-Ram ��

Infiniti of Norwood ��

Schultz Ford��

Mercedes-Benz of Wilmington ��

Kundert Volvo��

Jeff D’Ambrosio Chrysler-Jeep-Dodge ��

Long Automotive Group��

New Holland Ford ��