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Faulty Inspection Leads to Manslaughter Charge for Vermont Mechanic, Vehicle Inspected 2 Months Ago by Mike Donoghue, Burlington Free Press
Mechanic Steven Jalbert appears at his arraignment on August 11 at Vermont Superior Court in Barre. Credit: Glenn Russell/Free Press
A central Vermont mechanic has been arrested on charges of manslaughter and reckless endangerment in connection with approving a state inspection for a defective car that later crashed, killing a woman, the authorities said. Steven Jalbert, 30, of Barre pleaded
not guilty to the two charges during a brief hearing on August 11 in Vermont Superior Court in Barre. Judge Kevin Griffin agreed with the request by the Attorney General’s Office to release Jalbert on conditions, including he refrain from driving vehicles until he is legally licensed and that he have no contact with the victim’s family. The charges stem from a crash that killed Elizabeth Ibey, 82, of Barre Town on July 5, 2014, court records show. The driver, Donald Ibey, 86, of See Manslaughter Charge, Page 18
AASP/NJ Warns Members After Vermont Mechanic Arrested
arrested for manslaughter after a carelessly incomplete inspection on a 1992 Chevrolet Corsica in May 2014, which allegedly led to the driver’s death two months later. The investigation uncovered that the brake lines and rocker panels in the vehicle were rusted and corroded, classifying them as in “visibly unsafe condition.” The police affidavit showed that the mechanic did not take basic steps in inspecting the car, such as testing the brakes, putting the car on a lift, removing a wheel or testing it on the road. Jalbert, who worked at an inspection facility that is licensed by the See AASP/NJ Warns Members, Page 70
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
After a Vermont automotive technician was arrested for manslaughter following a carelessly incomplete inspection (see other Cover story), the Alliance of Automotive Service Providers of New Jersey sent out an urgent warning to their members. Literature distributed by AASP/NJ Executive Director Charles Bryant reminded shops that when using compromised parts in a car due to Direct Repair agreements, the liability still remains with the repairer – the insurer’s refusal to pay will not count as an excuse in a court of law. On Tuesday, August 11, a Vermont mechanic, Steven Jalbert, was
VOL. 6 ISSUE 6 SEPTEMBER 2015
An Open Letter From Charles Bryant to the New Jersey Collision Repair Industry Dear Collision Shops:
I just don’t get it. Like many others in the collision industry across the country, I fight for the betterment of the collision industry on a daily basis. Like myself, collision industry advocates across the country all attempt to determine what the biggest problems are and then look for solutions for those problems. Based on my own personal exCharles Bryant, perience and all of AASP/NJ Executive the research from Director (file photo) as far back as I can remember, I can safely conclude that the number one problem in the colli-
sion industry is directly tied to the artificially suppressed labor rates. As a result, collision shops are being forced to repair expensive and technical automobiles for labor rates lower that lawnmower and bicycle shops are charging and being paid to repair lawnmowers and bicycles.
Labor Rates Clearly the #1 Problem of the Collision Industry I don’t think I am mysteriously exposing the best kept secret in the collision industry by pinpointing the number one biggest problem in the collision industry is artificially suppressed labor rates. In fact, I am of the opinion that the majority of the collision industry is well aware that artificially suppressed labor rates are the See Letter from Charles, Page 64
TV News Reports on LA Body Shop Owner Saying State Farm ‘Forces Him’ to Use Recycled Parts by Kiran Chawla, wafb.com
A body shop owner is warning drivers that if you get in a wreck, your car insurance policy might only pay for after-market or recycled parts. A 2014 Kia Sedona has been at the Miles Paint & Body Shop in Baton Rouge for three weeks after the driver ran into the back of another vehicle. It now needs a new condenser and radiator, and the front bumper was also damaged. Body shop owner Tim Elkins said the car owner’s insurance, State Farm, is not allowing him to use original replacement parts, but instead they are pushing after-market, or recycled, products. “They force these parts on us. They make us use them. They’ve gotten to where now they tell us where to buy the parts and who we have to buy them from,” said Elkins. Elkins said the damaged parts in
Miles Paint & Body Shop in LA said his customer’s car insurer State Farm is not allowing him to use OEM parts on his 2014 Kia Sedona. Credit: WAFB
the vehicle are necessary in running the brains of the car. “When the insurance company wants us to use reconditioned parts, that’s a part that’s already been damaged, already been broken and fixed. That’s not what was on this car when it came in here. I mean for that matter, I could fix what was on it. I mean that’s not what we should do. We should replace these parts with new parts. That’s what was on it when it See State Farm Forces, Page 16
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
COLUMNISTS Attanasio - Body Shops Nationwide are Joining the Blog Party . . . . . . . . . . . . . . . . . 50 Luehr - Why Past Success Could Be Holding You Back. . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Yoswick - ‘MSO Symposium’ Panels Presented Ideas on Human Resources, Customer Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . 32 Yoswick - CIC Committee Working to Eliminate Hidden Costs of Parts Procurement . . . . . . . 44 Yoswick - Farmer’s COD Program, CARSTAR’s Growth, Estimates 10 Years Ago, Texas Rate Survey . . . . . . . . . . . . . . . . . . . . . . . . 52 NATIONAL 3M Hire Our Heroes Tool Grants Awarded to Ivy Tech Automotive Graduate . . . . . . . . . . . 25 4th Annual Aftermarket Telematics Challenge . . 51 AkzoNobel Launches U-Base for U-TECH Basecoat System for Commercial Builder and Refinish Markets . . . . . . . . . . . . . . . . . . 64 Allstate Delivers Sharp Drop in Operating Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Apple is Building Self-Driver, Looking to Test in Bay Area . . . . . . . . . . . . . . . . . . . . . . . . . 28 Auto Theft and Vandalism Rise With the Temperature . . . . . . . . . . . . . . . . . . . . . . . . 68 Automotive Writer Speculates About Why the AL vs Steel Repair Cost Debate Won’t Be Resolved Soon . . . . . . . . . . . . . . . . . . . 54 Ben Komenkul Became WIN Member to Support Women in the Workplace . . . . . . . . 22 BMW Building New Auto Body Shop in Spartanburg County, South Carolina . . . . . . 18 Carmakers are Keeping Data from Tech Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
by Victoria Antonelli, Online Editor
Car-O-Liner and AudaExplore Hold Seminar on Trends in Fixed Operations . . . . . . . . . . . 56 CCC Mobile Technology Enhancements for Shops . . . . . . . . . . . . . . . . . . . . . . . . . . 57 CREF Fundraiser Co-Hosted by PPG Raises Over $100,000 . . . . . . . . . . . . . . . . . . . . . . 57 Employee Shot at Paint and Body Shop in TX . . 17 Enterprise Releases Second Quarter Rental Data . . . . . . . . . . . . . . . . . . . . . . . . 67 EstimateScrubber.com Releases Invoicing APP . 28 Family Touch Makes Lawrence Auto Body in Livingston County, MI A Favorite . . . . . . . 24 Faulty Inspection Leads to Manslaughter Charge for Vermont Mechanic, Vehicle Inspected 2 Months Ago . . . . . . . . . . . . . . . . 1 Flood Damage Causing Long Car Repair Wait Times in Tampa, FL . . . . . . . . . . . . . . . . . . . 17 Getting Paid for Investing in Facility, Equipment and Training . . . . . . . . . . . . . . . . . . . . . . . . 60 GM Invests $1.4 Billion for Arlington Plant Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . 48 I-CAR® Adds Nick Notte to Leadership Team . . 70 I-CAR® Launches New ‘Production Management’ Role to Increase Shop Efficiencies, Enhance Lean Processes and Improve KPIs . . . . . . . . . . . . . . . . . . . . 68 July Auto Sales Surge Due to Pickups and SUVs . 25 Mopar Helps Dealers with New Service Capacity Tool . . . . . . . . . . . . . . . . . . . . . . . 68 More Stringent Auto Recalls in 2015 are ‘New Normal’ . . . . . . . . . . . . . . . . . . . . . . . 54 Nevada Shop Owner Films Pilot Show for Reality Series . . . . . . . . . . . . . . . . . . . . . . . 30 New ALLDATA President Discusses OE Repair Info with Associations and Insurers at NACE 2015 . . . . . . . . . . . . . . . . . . . . . . . . . 26 New App is Designed to Lower Shops’ Energy Costs. . . . . . . . . . . . . . . . . . . . . . . . . 8 New Sherwin-Williams Web-Based System Aims to Save Shops Time & Increase Profit . . 20 Nissan Donates $1M and 10 Autos to Habitat for Humanity . . . . . . . . . . . . . . . . . . 62 PartsTrader and State Farm Credited with Increased Chrome Bumper Sales for LKQ . . . 66 PPG Pickups Drive off With Honors . . . . . . . . . 43 PPG Introduces DELTRON DPS3105 Primer Surfacer. . . . . . . . . . . . . . . . . . . . . . 40 Takata’s Plans For Airbag Components . . . . . . . 3 Tesla Motors Selects Solera to Provide Collision and Customer Communication Services . . . 26 Texas Law Enforcement Vehicles Hard Hit by Takata Airbag Recall Say TV News Reports . 62 Three-C Body Shop in OH Wins Lawsuit Against American Family Insurance . . . . . . . 46 TV News Reports on LA Body Shop Owner Saying State Farm ‘Forces Him’ to Use Recycled Parts . . . . . . . . . . . . . . . . . . . . . . . 1 U.S. on Pace for Deadliest Driving Year Since 2007, Says National Safety Council . . . . . . 67 Urethane Supply Unveils Nitrogen Plastic Welder With Self-Contained Nitrogen Generation System . . . . . . . . . . . . . . . . . . . 38 UT Austin and Google Test Driverless Cars in Austin, TX . . . . . . . . . . . . . . . . . . . . . . . . 48 Vehicle Safety Inspections Highlight ASA’s Forum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 WD-40 Announces New EZ-REACH Product . . 48
Now that Takata has begun replacing defective airbags in up to 34 million vehicle recalls, regulators and consumers alike are wondering, how safe are the new parts, and how long will they last? That is why the Japanese air-bag manufacturer is in the process of proposing a plan to address these concerns. However, the details have yet to be released to the public. Out of the 37-page document posted to the National Highway Traffic Safety Administration’s website on August 11, 35 pages are redacted (blank) due to confidentiality issues. NHTSA’s Gordon Trowbridge said the agency will hold a public hearing this fall, which regulators intend to coordinate. U.S. officials have described the Takata recall as the largest in our country’s history, affecting 11 automakers. The shrapnel that can spew out from exploded airbag inflators has resulted in at least eight deaths and more than 100 injuries. Although the cause is unknown,
it is believed the ammonium nitratebased propellant plays a role. Humidity is a trigger, so states with a more tropical climate are being pri-
oritized for replacement parts. A digital campaign to raise awareness is also in the works. Takata plans for both initiatives to eventually go national. There are several updates to the Takata recall in this month’s issue including a story on Texas Law Enforcement having to park some official vehicles due to lack of parts. Fiat Chrysler is supposedly expediting those parts orders.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Acura of Westchester . . . . . . . . . . . . . 16 Amato Agency . . . . . . . . . . . . . . . . . . . 14 Atlantic Hyundai. . . . . . . . . . . . . . . . . . 30 Audi Wholesale Parts Dealers . . . . . . . 61 Axalta Coating Systems. . . . . . . . . . . . 71 Bald Hill Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . . . 24 BASF Corporation . . . . . . . . . . . . . . . . . 5 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . . . 12 BMW Wholesale Parts Dealers. . . . 58-59 Car-Part.com . . . . . . . . . . . . . . . . . . . . 14 CarcoonAmerica Airflow Systems . . . . 32 CCC Information Services . . . . . . . . . . 15 Central Avenue Chrysler-JeepDodge-Ram . . . . . . . . . . . . . . . . . . . 28 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . 39 Cherry Hill Audi . . . . . . . . . . . . . . . . . . 22 Cherry Hill Porsche . . . . . . . . . . . . . . . 22 Cherry Hill Volkswagen . . . . . . . . . . . . 22 Chief Automotive . . . . . . . . . . . . . . . . . 13 Classifieds . . . . . . . . . . . . . . . . . . . . . . 70 Clay Auto Group . . . . . . . . . . . . . . . . . 47 Coleman Autobody . . . . . . . . . . . . . . . . 4 Colours, Inc . . . . . . . . . . . . . . . . . . . . . . 9 Dent Magic Tools . . . . . . . . . . . . . . . . . 10 Diamond Standard Parts, Inc. . . . . . . . 23 Ditschman/Flemington Auto Group . . . . 53 Dover Chrysler-Dodge-Jeep . . . . . . . . 19 Eco Repair Systems of North America, LLC . . . . . . . . . . . . . . 6 EMM. . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Empire Auto Parts . . . . . . . . . . . . . . . . 26 Equalizer Industries, Inc . . . . . . . . . . . 43 Fairfield Chrysler-Jeep-Dodge-Ram . . . . 31 Fitzgerald’s Lakeforest HyundaiSubaru . . . . . . . . . . . . . . . . . . . . . . . 51 Ford Wholesale Parts Dealers . . . . . . . 46 Fred Beans Parts . . . . . . . . . . . . . . . . . 72 Fuccillo Kia of Schenectady . . . . . . . . 45 Gary Rome Hyundai-Kia . . . . . . . . . . . 18 GM Wholesale Parts Dealers. . . . . . . . 50
Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Northeast
REGIONAL 2013 Graduate of Randolph’s Auto Body Collision Repair Program is Hooked on Fixing Cars . . . . . . . . . . . . . . . . . . . . . . . . . . 9 AASP/NJ Warns Members After Vermont Mechanic Arrested . . . . . . . . . . . . . . . . . . . . 1 ABRA Auto Body & Glass Expands in Delaware. . 6 An Open Letter From Charles Bryant to the New Jersey Collision Repair Industry . . . . . . . 1 Carubba Collision Buys Hertel Avenue Location in NY. . . . . . . . . . . . . . . . . . . . . . . 14 Fenix Parts Acquires Ocean County Auto Wreckers in NJ . . . . . . . . . . . . . . . . . . . . . . 14 Hail Storm in Boston Keeps Body Shops Busy . . 4 Hamden, CT Body Shop Damaged by Two-Alarm Fire . . . . . . . . . . . . . . . . . . . . . . . 6 Insurance Fraud by Paying Repair Shop to Remove Motorcycle Parts, Blames Thieves . . 8 New VP for 3D Auto Body & Collision Centers in PA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 NJ Couple Charged with Staging Car Accident, Seeking More Than $25,000 in Insurance Payouts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 NJ Division of Consumer Affairs Reaches Settlement with Sussex County Dealership After Fraud Allegations. . . . . . . . . . . . . . . . . 12 NJ Man Will Serve Time After Attempting to Scam Insurance Company for Nearly $40,000 . 6 Owner of Queens, NY, Body Shop Charged with Tax Fraud . . . . . . . . . . . . . . . . . . . . . . . 14 PA Bureau of Consumer Protection Goes Undercover to Investigate 109 Dealerships . . 10
Takata’s Plans For Airbag Components
Indexof Advertisers
Contents
H & S Autoshot Mfg. Co. . . . . . . . . . . . 33 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 36-37 Hyundai Wholesale Parts Dealers . . . . 62 Infiniti of Norwood . . . . . . . . . . . . . . . . 17 Kia Motors Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 65 Koeppel VW-Mazda . . . . . . . . . . . . . . . 57 Lexus Wholesale Parts Dealers . . . . . . 48 Maxon Hyundai . . . . . . . . . . . . . . . . . . 42 Maxon Mazda . . . . . . . . . . . . . . . . . . . 54 Mazda Wholesale Parts Dealers . . . . . 66 Mercedes-Benz . . . . . . . . . . . . . . . . . . 29 Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . . . . . 20 Mercedes-Benz of West Chester. . . . . 20 Mercedes-Benz of Wilmington . . . . . . 38 Mercedes-Benz Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 48 MINI Wholesale Parts Dealers . . . . . . . 56 MOPAR Wholesale Parts Dealers . . . . 41 Nissan/Infiniti Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 40 Porsche Wholesale Parts Dealers . . . . 67 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . . . . 16 Safety Regulation Strategies . . . . . . . . . 4 SATA Spray Equipment . . . . . . . . . . . . 21 Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Subaru Wholesale Parts Dealers. . . . . 69 Tasca Automotive Group . . . . . . . . . . . 49 Thompson Organization . . . . . . . . . . . 55 Toyota Wholesale Parts Dealers . . . . . 46 Urethane Supply Company. . . . . . . . . 25 Valspar Automotive . . . . . . . . . . . . . . . 27 VIP Honda . . . . . . . . . . . . . . . . . . . . . . . 8 Volkswagen Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 63 Volvo Wholesale Parts Dealers . . . . . . 40 Wagner Auto Group. . . . . . . . . . . . . . . 35 Wheel Collision Center . . . . . . . . . . . . 34
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 3
NJ Couple Charged with Staging Car Accident, Seeking More Than $25,000 in Insurance Payouts
New Jersey Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) announced that an Essex County man and his former girlfriend were indicted on August 6 for allegedly orchestrating a staged automobile accident in Newark in 2012 and later seeking more than $25,000 in payouts for medical treatment from their insurer. Jerry Previlon and Yasmeen Louis were charged by a state grand jury with second-degree insurance fraud, seconddegree conspiracy, third-degree attempted theft by deception and third-degree tampering with public records or information. “The co-conspirators in this case allegedly sought to cheat their insurer by organizing a staged automobile accident that not only endangered their own wellbeing, but also that of any drivers, passengers or pedestrians who may have been nearby that day,” said Hoffman. “Staged accidents are both a dangerous and costly con.” “As insurance companies respond to staged accidents and pay out the claims associated with them, premiums for law abiding drivers will increase,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “Drivers cannot
participate in a fair marketplace as long as criminals seek to defraud the insurance industry.” According to the indictment, in September 2012, Louis was driving a 1999 Pontiac Grand Prix, with Previlon riding in the passenger seat and two others riding in the back when the car was struck by another vehicle in Newark. According to Louis’s sworn statement to OIFP investigators, the unidentified driver of the other vehicle, who Louis stated was an acquaintance of Previlon, then exited his vehicle, entered a third vehicle driven by another unidentified driver, and fled the scene of the accident. Previlon and Louis each allegedly filed 28 claims that totaled approximately $25,100 with Liberty Mutual for various medical treatments at South Orange Trauma Center. Louis admitted in her sworn statement that the accident was staged and that she had been directed by Previlon to the location of the accident. Additionally, she told investigators that Previlon had purchased the car approximately six weeks before the accident, but had directed her to sign the title in her name and had her insure the Pontiac with Liberty Mutual.
Autobody Estimator Needed Looking to fill a soon to be vacant experienced estimator position. Our facility has grown 12% in the past year, for 3 years in a row. The job requires but is not limited to: » Opening and closing repair orders » Knowledge of DRP insurance relations » Heavy phone and customer contact » CCC One experience » IMPECCABLE customer service » Must be a hard worker and not afraid to RUN!!!
Coleman Autobody offers: - Brand new work office - Stable company, with - Great income room to expand your - 401K career and the facility - Full benefits - No appraisers license - Paid vacation and sick time required in NJ - Pleasant work environment - TOP NOTCH quality work so customer complaints are rarely heard - Always a constant flow of work (incoming/outgoing) - Convenient location for easy commuting (central NJ or Eastern PA, relocation possible)
Tom Gillespie Coleman Autobody Manager tom.gillespie@colemanautos.com
Ph: 609-895-3369 Fax: 609-895-9646 www.colemanbuickgmc.com/BodyCenter_2 www.facebook.com/pages/Coleman-Autobody/ 138850769626785
Please send a resume or stop by and fill out an application. This position is immediately available to the right candidate! If you’re tired of your dirty, old facility and you want to increase your income you need to talk to us. We have one of the largest, nicest facilities in the area and some of the most talented crew working with us.
4 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
Hail Storm in Boston Keeps Body Shops Busy
Abnormally large hail fell during a severe storm on the evening of August 4 in Boston, MA. Body shops
work early on the morning of August 5. “It all happens at once, so it’s really a lot of people wanting things done at the same time,” Girard told WBZ NewsRadio 1030. “That’s a difficult thing, the balancing act.” Some of the falling ice chunks, which measured as big as two inches, broke glass and dented roofs, hoods and fenders. “It has been busy,” GiHail that fell in Boston on the evening of August 4. rard told WBZ NewsRadio Credit: Scott Sullivan/WBZ-TV 1030. “Everbody in this responded to calls about pelted cars area got hit pretty hard.” all over the metropolitan area. Girard added that car owners Hynes Auto Body General Man- with damage should call their insurager Ken Girard said the phone was ance companies first, and it can likely already ringing when he arrived to be fixed without a surcharge.
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 5
Hamden, CT Body Shop Damaged by Two-Alarm Fire
An auto repair shop on Benton Street in Hamden, CT was damaged on the morning of August 1 around 7:20 a.m. A neighbor reported heavy black smoke coming from the building, which houses MadCity Auto Repair and one apartment, reported foxct.com.
Credit: foxct.com
Due to the potential storage of body shop paints, solvents and multiple automobiles stored inside the repair shop, a second alarm was called. The fire, which had been contained in the shop, was under control within an hour. The single apartment resident had exited the building unassisted and the repair shop was unoccupied at the time of the fire, reported foxct.com No injuries were reported. The one resident that was displaced had relocated with friends. Hamden Fire Department is investigating the cause.
ABRA Auto Body & Glass Expands in Delaware
ABRA Auto Body & Glass expanded in Delaware on July 31 with the acquisition of Henry Brothers Auto Body. Details of the transaction were not disclosed. The new repair center is located in Wilmington, about 30 miles southwest of Philadelphia. The July 31 addition brings the company’s total repair center count to 312 in 23 states. ABRA entered the Northeast region a few months ago with the purchase of all Keenan Auto Body repair centers. ABRA’s President and Chief Executive Officer Duane Rouse said the company is pleased with the opportunity to expand in Delaware. ABRA’s Executive Vice President of Operations, Scott Krohn said, “The Northeast presents enormous opportunity for us to expand our footprint and introduce our industry leading operating metrics and superior customer satisfaction ratings to more and more insurance partners and vehicle owners.” ABRA is looking to acquire additional repair centers. Interested parties in major markets can contact Scott Gerling, sgerling@abraauto.com or 763585-6210. For small and midsize markets, contact Mark Wahlin, mwahlin @abraauto.com or 763-585-6315.
6 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
NJ Man Will Serve Time After Attempting to Scam Insurance Company for Nearly $40,000
New Jersey Acting Attorney General John J. Hoffman announced on August 3 that an East Orange man was sentenced to three years in state prison for fabricating a story about being carjacked so that he could receive from his insurer approximately $38,500 to pay for the purportedly stolen car. Maurice DouMaurice Douglas glas, 42, pleaded of East Orange, NJ, guilty to one count was sentenced to of second-degree three years in insurance fraud. prison for secondIn March 2014, degree insurance Douglas reported fraud to East Orange police a carjacking at his residence. When police responded to the scene, Douglas said that two males stole his
2007 Mercedes S-550 from him as he exited the vehicle at his house. He further alleged that one pointed an assault rifle at him, while the other stole his cell phone. Douglas said the men fled in the Mercedes and another vehicle. The following day, East Orange police discovered Douglas’s car in an abandoned lot—its headlights and taillights stripped with evident damage to its body and windshield. That same day, Douglas called Plymouth Rock Assurance and filed a claim for the value of his car, saying that he was carjacked. An investigation by the East Orange police uncovered time and date stamped surveillance video of the immediate route that Douglas claimed his assailants fled. Those videos did not show either of the vehicles the carjackers were purportedly to have been driving when they fled.
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 7
New App is Designed to Lower Shops’ Energy Costs
The site of the former Central Automotive and Collision Services in Glendale, NY, has been sold for $2.4 million in an all-cash, off-market transaction. The former auto body shop sits on 12,000 square feet of land at 6425 Central Ave. and 70-36 64th Pl., and will be renovated by the new owners, identified as Greenpointbased R King Windows, and made available for rent or leased to several retail stores in the coming months.
Central Ave. Collision in Glendale
Right Time Realty, the brokers that handled the Atlas Terminals sale to Broadway Stages, facilitated this deal and will handle the renting or leasing of the retail spaces once they are ready for use, to Joe Ibrahim, Right Time Realty’s president. It is not yet known how many retail spaces will be constructed on the site, how large each space will be, or what industries will be interested in renting or leasing out each space.
NJ Man Commits Insurance Fraud by Paying Repair Shop to Remove Motorcycle Parts, Blames Thieves The New Jersey Office of the Insurance Fraud Prosecutor (OIFP) announced on August 12 that a Woodbridge man was indicted on the 11th for allegedly reporting that his motorcycle had been stripped of its parts by thieves on two occasions, when in actuality he directed a repair shop to remove the parts so that he could make claims with his insurers. Lew Alicock, 31, was charged by a state grand jury on August 11 and was arrested on the 12th in Woodbridge. He is being held at Middlesex County Jail. The indictment charged him with two counts of second-degree insurance fraud, two counts of thirddegree theft by deception, one count of third-degree attempted theft by deception and third-degree forgery. According to the indictment, on May 24, 2013, Alicock called Pacific Specialty Insurance Company to report parts of his Yamaha stolen. Alicock allegedly claimed that he was out of town for work and had left the motorcycle at his mother’s residence in Irvington. He allegedly told the representative that he had just returned from the work trip to discover the theft of parts. On July 23, 2013, Pacific issued a check to Alicock for
$5,512.96, which Alicock cashed at his bank. Alicock was able to cash out the full amount from his checking account. On August 12, 2013 Alicock allegedly called Pacific and asked for the $5,512.96 check to be re-issued to himself and the repair shop. Pacific then ordered a stop on the check with the bank, but Alicock no longer had sufficient funds in his accounts. Because Alicock was deficient, the bank closed all of his accounts. The bank repaid Pacific the full amount, but was only able to recover a portion by “clawing back” his other accounts. Alicock still owed the bank approximately $3,039.81. The financial institution later used a collection agency to recover approximately $1,535.00 from Alicock. On September 3, 2013, Pacific reissued the check to Alicock and the repair shop. Alicock cashed the second check with a different bank. It is alleged that the second check had his signature, as well as a fraudulent signature that Alicock had scribbled. In March, OIFP questioned the manager of the shop who revealed that Alicock came to the shop on May 24, 2013 and asked the mechanic to
take parts off his bike. The removed parts included fairings and the slip over the exhaust, according to the repair shop manager. In his insurance filings, Alicock had reported both parts among those stolen. The manager further stated that Alicock returned on May 28, 2013 and paid for the removal and put the bike parts in his car. Two days later, he returned and had the mechanic put those parts back on the bike. Alicock allegedly tried the scam again November 2013, this time attempting to defraud another insurance company by claiming that his motorcycle had been stripped of several parts while being housed in Newark. In this instance, Alicock allegedly requested a payout of $5,900, but the insurer, Rider Insurance, did not approve the claim. OIFP obtained service records from the same repair shop, which show Alicock requested several parts be taken off his vehicle the same day his claim was filed with Rider.
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2013 Graduate of Randolph’s Auto Body Collision Repair Program is Hooked on Fixing Cars by Michaela Ward, thenotebook.org
The Philadelphia School District’s career and technical education (CTE) programs give students an opportunity to choose a career path that best matches their interests and talents, while gaining hands-on training in high school. Many students who have participated in one of the district’s 41 CTE programs have transitioned to post-secondary institutions— college, university, or technical school— and some have also gotten jobs in their chosen fields right out of high school. The Notebook asked several graduates from a district CTE program how their participation shaped their interests and lives. The third profile is of Kadeem Carter, a 2013 graduate of Randolph’s Auto Body Collision Repair program. Kadeem Carter knew by the time he was in 7th grade that he wanted his career to involve cars. Carter’s father, who grew up in Germantown and had heard about CTE automotive programs, told his son that he could actually study automotive repair in high school. “I was really into cars. ... When I found out I could go to school for it, I was hooked right there,” he said. In 10th grade, Carter began taking
classes in the Auto Body Collision Repair program at Randolph Career Academy. The summer after he took his first auto-collision class, Carter was able to get a job working in a shop. But he spent
Kadeem Carter plans to get his associate’s degree in collision repair
time in the shop even before he started his summer job. “I went there every day after school to just watch them work.” Carter, a 2013 graduate of Randolph, has begun to build a career in auto repair with the skills he developed in the CTE program. He’s also taking classes at the Pennsylvania College of Technology and plans to get his associate’s degree in collision repair in May. Carter received a $15,000 scholarship to attend the school, because he
placed second at a SkillsUSA competition. SkillsUSA is a national organization that provides support for students entering technical, skilled, and service career fields. “I went to SkillsUSA for the first time in 11th grade. It was a big deal, because my school never competed in that before. I was able to win third place,” he said. “Senior year, I came back and took second place. I might do it again at the college level.” The competition is divided into several sections. The first task is handson and requires students to fix a dent in a fender. Competitors then need to come up with a handwritten estimate on a car. There’s also a written assessment and an interview process. Carter said he accepted the Skills USA scholarship because he wanted to do more than use the skills he already had. “I wanted to continue my education, because I wanted to be above the competition. I wanted to show I not only have skills with my hands, but that I’m smart, too,” said Carter, who is also a resident assistant on campus. This past summer, Carter balanced his coursework with an internship at Faulkner Collision Center, an auto body and repair shop in South Philadelphia.
He said he did a little bit of everything during the internship, including detail work and painting. He planned to start working there full-time, mainly as a painter, after his summer classes end. Carter said the biggest challenge he faces in working in the automotive industry is that people don’t expect him to be capable of good work because he’s so young. “People try to take advantage of my age. ... My biggest obstacle is trying to break down those barriers.” In the future, Carter said he’d like to open his own body shop or become a high school shop teacher. Having mentored younger students while he was in high school, Carter still returns to Randolph periodically to help. He said he’d be excited to teach others what he was taught and to help younger students achieve their own career goals. “I think it’s cool teaching people about this because I like it so much.” Thank you to thenotebook.org for permission to reprint this article.
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PA Bureau of Consumer Protection Goes Undercover to Investigate 109 Dealerships Pennsylvania Attorney General Kathleen G. Kane announced on July 30 four legal settlements and a subpoena enforcement action filed as the result of two separate investigations of used car lots that were violating state automobile sales licensure laws, advertising requirements and sales regulations. The settlements were reached in the form of assurances of voluntary compliance (AVCs) and were the result of work done by a statewide task force comprised of agents and attorneys from the Office of Attorney General’s Bureau of Consumer Protection. Through July 9, the bureau had visited 109 dealerships lots or locations statewide and reviewed more than 3,250 automobile advertisements. The bureau also used undercover stings, investigated consumer complaints and enforced subpoenas to detect illegal business practices. The investigation was designed to ensure a fair playing field for businesses and to help consumers feel more confident about shopping for motor vehicles. In one investigation, agents used Craigslist and various automotive magazines to find “blind dealers,” who advertise vehicles as a private sale without disclosing the dealership name and address in the advertisement. Agents’ review also sought “curbstoners,” who are unlicensed motor vehicle salespeople who sell five or more vehicles in a calendar year. Armed with this information, agents went undercover and posed as consumers interested in purchasing automobiles and came away with offers to sell automobiles from unlicensed operators, which is a violation of the law. Additionally, as part of a separate investigation, the bureau’s agents investigated complaints concerning licensed used car dealers who were allegedly violating state auto regulations dealing with advertising and using invalid contracts that in some cases included misleading contractual provisions. The bureau’s agents also reviewed contracts or bills of sale and repair invoices to verify compliance with Penn-
sylvania’s Automotive Industry Trade Practices. These regulations set forth requirements with respect to advertising new or used motor vehicles, disclosing whether or not a vehicle is “roadworthy” and how to document repair work authorization. Below is a list of the recent legal settlements and subpoena enforcement action:
● Claudia M. Charney, owner of 5th Avenue Auto Sales, and David H. Charney: 5th Avenue Auto Sales is a Cambria County car dealership that the Commonwealth alleges was engaged in the business of selling, advertising and offering for sale used motor vehicles through the use of an unlicensed salesperson. Respondent David Charney held a vehicle salespersons license that expired in 2003, but continued to sell vehicles for his wife’s dealership. The Commonwealth also alleged that the business was using contracts with invalid clauses and failed to disclose the business name and address or the word “dealer” within its advertisements. Under the terms of one AVC, respondent Claudia Charney, owner of 5th Avenue Auto Sales, will pay $3,000 in penalties and costs for allowing her husband to sell or negotiate the sale of motor vehicles at her dealership without a valid salesperson license and for using contracts with invalid “As is” clauses. David Charney has agreed to a separate AVC and under those terms will pay $500 in penalties and costs for failing to hold a valid vehicle salesperson license. These AVCs were filed in the Cambria County Court of Common Pleas by Deputy Attorney General Nicole R. DiTomo.
● William J. Kemper: Kemper, of York, allegedly sold, advertised and offered for sale used motor vehicles without a valid salesperson license. Kemper previously held a salesperson license, which became inactive in 2001. Additionally, it is alleged that Kemper failed to use written contracts that complied with
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auto regulations. Under the terms of the AVC, Kemper will pay a $1,000 civil penalty for failing to hold a valid vehicle salesperson license and also agrees to renew his salesperson license. This AVC was filed in the York County Court of Common Pleas by DiTomo.
Below Bluebook Autos, LLC and owner Christopher Myers: Below Bluebook Autos is a Dauphin County car dealership that allegedly misrepresented the quality of its vehicles and allegedly failed to disclose, in writing, any verbal representations made to customers. The Commonwealth also alleged in the AVC that the business failed to use proper sales contracts and failed to disclose the business name and address or the word “dealer” within its advertisements listed on Craigslist. Below Bluebook Autos, LLC has surrendered its dealer license to the Board of Motor Vehicles and was assessed $9,758 in civil penalties and costs under the terms of this AVC. This AVC was filed in the Dauphin County Court of Common Pleas by
DiTomo.
● Ameri Motors, Inc. and owner Jawad Al Amiri: The Bureau of Consumer Protection filed a subpoena enforcement action against Philadelphia-based Ameri Motors, Inc. and its owner, Jawad Al Amiri, for failure to produce certain documents and information relating to a subpoena issued by the bureau during its investigation. The court issued an order July 1 granting the bureau’s enforcement action, which will force the owner to produce the documents. The enforcement action was filed in the Philadelphia Court of Common Pleas by Senior Deputy Attorney General Sarah A. E. Frasch. These AVCs and subpoena enforcement action are in addition to actions filed earlier against a Bucks County Internet warranty company, a Lawrence County used car dealer, a York County towing company and three Philadelphia used car dealers. The Bureau of Consumer Protection also issued 27 warnings letters this year as part of its ongoing efforts to ensure those who sell automobiles are complying with the law.
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 11
NJ Division of Consumer Affairs Reaches Settlement with Sussex County Dealership After Fraud Allegations The New Jersey Division of Consumer Affairs has reached a settlement with JDN AA, LLC, which operates Newton Audi and Newton Volkswagen auto dealerships, resolving an action filed by the state in June 2015. As part of the settlement, JDN AA, LLC has agreed to pay $50,000 to the state. This payment includes $31,655.95 in civil penalties, with the balance reimbursing the state for its legal and investigative costs. The State’s four-count complaint, filed in State Superior Court in Sussex County, alleged that JDN AA committed unconscionable commercial practices, did not disclose required information in advertisements, and did not pay required Used Car Lemon Law fees. “These actions and the resulting settlements should send the message that dealerships must comply with state consumer protection laws or risk serious legal consequences,” said Acting Attorney General John J. Hoffman. “This settlement ensures that consumers will receive transparency and honesty from this dealership, as required by law.” As part of the settlement, JDN AA must comply with all applicable laws
and regulations in its future business practices. JDN AA also must work with the New Jersey Division of Consumer Affairs during the next year to resolve any new consumer complaints. “The Division of Consumer Affairs has brought several actions this year against auto dealerships for consumer fraud and unconscionable business practices,” said Steve Lee, Acting Director of the New Jersey Division of Consumer Affairs. “Consumers who are thinking about purchasing vehicles must have certain important information about the vehicles they are considering,” Lee also noted JDN AA’s cooperation in reaching a quick resolution of this matter. Under terms of the settlement, JDN AA agreed to:
● not add or charge for after sale item[s] without the consumer's written authorization; ● not represent to consumers that the purchase of an after-sale item is mandatory when, in fact, it is not; ● identify, in writing, any and all after sale items, whether provided to consumers at no additional charge or purchased by consumers; ● provide a written document con-
12 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
taining a clear statement of cost for an after -sale item[s], and obtain the consumer’s written acknowledgment to purchase such after sale item[s], for any after sale item[s] purchased by a consumer; ● provide consumers with an opportunity to review all sales documents prior to signing; ● not require consumers to execute any blank or incomplete sales documents; ● provide consumers with complete copies of all signed sales documents; ● include the statement that “price(s) include(s) all costs to be paid by consumer, except for licensing costs, registration fees, and taxes,” in advertisements; ● honor all terms of a negotiated deal concerning the sale of a used motor vehicle; and ● not sell a motor vehicle without possession of the title to the motor vehicle. Newton Audi and Newton VW are located on Hampton House Road in Newton.
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New VP for 3D Auto Body & Collision Centers in PA
Dave Niestroy, president of 3D Auto Body & Collision Centers in PA, announced on August 11 that Craig J. Camacho was hired as VP of Marketing & Business Development. Camacho comes to 3D from Keenan Auto Body where he spent the last 13 years as marketing director. Camacho joined Keenan Auto Body in 2002 when the local MSO had five locations throughout two counties in Southeast Pennsylvania. Keenan grew to 12 locations before it was acquired by ABRA Auto Body & Glass in May. “Being part of the leadership team that grew the Keenan brand was a terrific experience and I met a lot of wonderful people along the way,” said Camacho. “I look forward to working with Dave and his team of dedicated professionals to work together and grow the 3D brand.” Founded in 1981 by Niestroy, the independently-owned MSO has five locations in the Southeast region of Pennsylvania. For information, contact Camacho at CraigC@3DBodyWorks.com and 610-587-3187.
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 13
Owner of Queens, NY Body Shop Charged with Tax Fraud
Queens, NY District Attorney Richard A. Brown, joined by New York State Commissioner of Taxation and Finance Jerry Boone, announced on August 13 that an Ozone Park body shop and its owner have been charged with criminal tax fraud, grand larceny and other charges for allegedly stealing more than $125,000 in collected taxes that were owed to New York State and local municipalities. Brown said, “Sales taxes are meant for the public treasury—not the pockets of business owners. By purposefully defrauding the state and local government out of these funds—that could have been used in the public interest—the money instead allegedly lined the pocketbook of this businesswoman. This kind of tax fraud makes every New Yorker a victim.” “When an auto body shop, or any business, fails to remit sales tax to the state it has committed a serious crime— with serious consequences,” said Boone. “That’s why we commend District Attorney Brown’s effort to make such tax evaders answer for their crimes.” Brown identified the defendants as Stephanie Davino, 31, of Howard Beach, Queens, and her business, A&W Auto Collision Center, Inc., located at
104-11 101st Street in Ozone Park, Queens. Davino was arraigned before Queens Criminal Court Judge Ernest Hart on a criminal complaint charging her and the business with second-, thirdand fourth-degree criminal tax fraud, second- and third-degree grand larceny, first-degree scheme to defraud and fifthdegree conspiracy. Davino, who faces up to 15 years in prison if convicted, was released on her own recognizance and ordered to return to court on September 30. In the case of a corporation, conviction of a felony is punishable by a fine of up to $10,000 or double the amount of the illegal gain. According to the criminal complaint, said Brown, Davino, who is listed as the owner and president of A&W Collision on tax and finance records, failed to file a single sales tax return between January 26, 2012, and March 3, 2014. However, during that period of time, the body shop allegedly performed repairs totaling approximately $1.4 million and received payment for the repairs from GEICO, State Farm, Allstate, Progressive and USAA insurance companies. The total amount of sales tax allegedly due and owing to the city and state amounts to approximately $125,700 ($61,965 to New York State and $63,735 to local municipalities).
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Carubba Collision Buys Hertel Avenue Location in NY
Carubba Collision has found a new home for its Buffalo, NY repair shop. The company, through its 973 Hertel Avenue LLC, has purchased a former Dunn Tire location at the Hertel Avenue location, paying $640,000, according to documents filed in the Erie County Clerk’s Office. In what appears a trade of locations between the two locally owned companies, Dunn Tire is shifting its 955 Hertel Avenue store to Delaware Avenue, while Carubba is moving its Delaware Avenue collision shop to the Hertel Avenue site. The location will be the ninth for Carubba Collision, which operates shops along Union Road in Cheektowaga, Transit Road in Amherst and Camp Road in Hamburg, as well as locations in Jamestown and Syracuse. The deal was brokered by Jay Newman from Hastings Cohn Real Estate.
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Fenix Parts Acquires Ocean County Auto Wreckers in NJ
Fenix Parts, Inc., a recycler and reseller of OEM automotive products, announced the acquisition of Ocean County Auto Wreckers, Inc. in Bayville, New Jersey. Founded in 1959, Ocean County is a full-service auto recycling facility and represents Fenix Parts' second location in New Jersey. For the 12 months ended June 30, 2015, Ocean County had revenues of approximately $8.0 million. Kent Robertson, CEO of Fenix Parts, said, “We are pleased to announce our first acquisition since our IPO and related combination in May as we welcome the Ocean County team to Fenix Parts. Ocean County is a high-quality auto recycler that meets all of our acquisition criteria, with strong leadership and operations adjacent to our existing markets that will expand our distribution, dismantling, warehouse and yard capacity. “With the addition of Ocean County, we now have 14 facilities located primarily in the northeastern U.S. and Canada, allowing Fenix to provide customers access to a larger, more diverse inventory and better product availability.”
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 15
Continued from Cover
State Farm Forces
came in. That’s what should be on it when it leaves,” said Elkins. Elkins said after-market parts depreciate the value of the vehicle, and he said the law states it could potentially affect the vehicle warranty as well. Kia, the dealership in the specific case, cannot legally void the 10 year, 100,000 mile warranty, but they can deny the warranty saying any damage was caused by the after-market products. “Any subsequential damages caused by these parts will be void, and I mean the dealership is going to look for reason not to repair something under warranty. That’s just something they do,” said Elkins. In his push to get new parts approved for his customer, he said he called State Farm and recorded the conversation. In one recording he provided to the Investigators, the State Farm representative told him, “Her policy does allow us to use non OEM parts or recycled parts on her automobile, but we
do tell her if she does want to use OEM parts, she does have the option to pay the difference.” Elkins said he’s eating the difference. He said he orders original parts even if it costs him more, but State Farm only pays for what a recycled part would cost. Elkins showed the Investigators receipts where he ordered new parts. A new condenser cost him $539.62, but State Farm only compensated him for what an after-market part would cost with $133.99. Elkins paid $368.12 for a new radiator, and State Farm paid him $204.29. Sam Pleasant with the Louisiana Attorney General’s Office said they filed suit against State Farm last year in August. “State Farm has a pattern of deceiving consumers and also repair shops and primarily deceiving the consumers by not allowing them to choose which parts they are going to use to have their autos repaired,” said Pleasant. She said consumers are deceived, but in the recorded conversation with State Farm, the representative told the body shop owner that they gave the customer a choice of paying more for original parts.
Acura of Westchester
Pleasant said the body shops have contracts with State Farm where they’re forced to use cheap and often unsafe parts. She said they’ve found they often use junkyard parts or overseas parts that do not meet manufacturer standards. “Case after case, we found that insurance companies are putting cost and getting these repairs done quickly over consumer choice and safety,” said Pleasant.
State Farm sent a statement: “A vibrant, profitable auto collision repair industry is in the interest of State Farm. At the same time, we are advocates on behalf of our customers for reasonable repair costs. We believe
repairer profitability and proper auto repairs that are reasonably priced can both be achieved. Claimants and our customers choose where their vehicles are going to be repaired. We provide information about the benefits our Select Service program offers while at the same time making it clear they can select which shop will do the work. Safety: The State Farm mission is to serve the needs of our customers, and we have a long, proud history of achievements in advancing research in vehicle safety. (To learn more, go to: www.Good Neighbors.com.)” Thank you to wafb.com for permission to reprint this article.
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Flood Damage Causing Long Car Repair Wait Times in Tampa, FL by Lauren Rozyla, ABC Action News
body shop if there is water damage. “If it gets enough water in there, it can hit that and it can short out different things to make the windows go up and down, the motor shut off,” Fenley said. But he also says there are things
Drivers throughout the Tampa Bay area are facing weeks of wait time for very basic car repairs. Repair shops are now reporting record numbers of cars coming in with water damage. Drivers like Jamie Kiner are waiting to get cars fixed after an accident but has seen the huge numbers of cars in the shop due to water damage. “Everybody in Tampa knows somebody whose car is flooded,” Kiner said. The back lot of Bedrock Collision in Seminole Heights is a graveyard of Credit: WFTS Tampa Bay gutted cars, drying out. “I got in a car accident at a really inopportune time be- drivers can do before heading right to cause it’s hard to get your car fixed the repair shop with water damage. right now,” Kiner said. “If the floors mats get wet, “We had almost 150 cars at our they’ll hold moisture in there,” Fenlocation because of flood damage,” ley said. “If you take them out, put a said Ira Fenley of Bedrock Auto Body dry towel on it, just the normal, you & Collision. driving it and putting your feet down Fenley said water can damage will absorb that water into that towel.” critical safety features of your car and But in some cases a repair shop most often you will need to see a is inevitable, Fenley said. He says
cars that have standing water should see a mechanic. Fenley also recommends getting a check if your vehicle is making a strange noise or is shaking or jerking. Fenley says that could signal engine trouble. “Anything can happen,” Fenley said. But unfortunately for drivers so many people are in the same predicament it could still mean weeks of repairs, Fenley said. He says to avoid water damage like this make sure you go very slow over puddles and potholes, not more than three or four miles an hour.
Thanks to ABC Action News Tampa Bay (E.W. Scripps Company) for permission to reprint this article.
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Employee Shot at Paint and Body Shop in TX
A paint and body shop worker was shot by an upset customer in northwest Harris County, Texas, according to an article written by Alex Green, click2 houston.com.
Authorities said the shooting was reported around 3 p.m. in the 9800 block of Veterans Memorial Drive. According to Harris County deputies, the gunman was upset that the shop did not have his car ready. Green reported that the customer then took out a gun and shot the shop worker in the hand. The shop worker was treated on scene. Others joined in and attacked the shooter. The shooter was taken to a hospital, and there was no word of his condition, as of press time.
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BMW Building New Auto Body Shop in Spartanburg County, SC by Trevor Anderson, Herald-Journal/GoUpstate.com
BMW’s plan to beef up its body shop is beginning to take shape. The Germany-based automaker is constructing a 527,000-square-foot body shop at its Spartanburg County plant. BMW Manufacturing Co. spokeswoman Sky Foster said the facility will “contain some of the most advanced technology in the automotive industry,” including more than 650 robots. Foster said the body shop, which is the third at the plant, is part of the $1 billion expansion announced by BMW in March 2014 to increase the plant’s output, start production of the X7 sports activity vehicle and create 800 jobs. Foster did not say whether the facility will be used to house X7 production, rather that it will be used to “accommodate future capacity.” She said the company will construct a 1,800-foot conveyor that will transfer welded bodies from the body shop to the main building for finishing, painting and assembly. Construction and tooling is scheduled to be completed in 2017, Foster said. The company also will build a visitor parking lot with more than 120 spaces around the Zentrum. The project should be completed in October, she said. Foster said when the new lot is completed, the current visitor lot will be used for additional associate parking. “Since we are adding 800 new jobs by 2016, we need additional parking spaces,” she said. Last March, the automaker said the expansion will boost BMW ManContinued from Cover
Manslaughter Charge
Barre Town reported he was traveling down a steep section of Hill Street in the 22-year-old car “when he heard a pop,” Barre police reported after the crash. The 1992 four-door silver Chevrolet Corsica sedan continued out of control and crashed near Nelson Street. Elizabeth Ibey died at the scene, police said. Jalbert, who is employed at the family’s business, A.J.’s Sunoco on Washington Street in Barre, conducted a faulty annual inspection less than two
ufacturing Co.’s output by 50 percent to 450,000 cars a year and increase the plant’s workforce to almost 9,000 associates, making it the world’s largest BMW factory.
BMW Manufacturing Co. has begun work on another addition to its manufacturing facility in Greer. The automaker is building a 527,000square-foot body shop. Crews work on the expansion. Credit JOHN BYRUM/ john.byrum@ shj.com
The local plant, which celebrated its 20th anniversary last year, is the “center of competence” for BMW’s X model lineup, including the X3, X4, X5 and X6. It produced 32,478 vehicles in July, according to the company. It boasts more than five million square feet of production space on a 1,150-acre campus, as well as its own Energy Center, on-site Family Health Center and 24-hour security and firefighting departments. BMW has invested nearly $7 billion in the plant to date, the company said. About two-thirds of the vehicles produced at the plant are shipped to more than 140 markets worldwide. The plant was named the nation’s top automotive exporter in 2014. Its exports totaled $9.2 billion last year, a 13 percent increase compared with its 2013 value, according to the U.S. Department of Commerce. months before the fatal crash, said Glen Button, director of enforcement for the state Department of Motor Vehicles. The inspection sticker was issued May 9, 2014, with visibly unsafe conditions showing, records indicate. The Ibey car traveled only 383 miles from the time of the inspection until the crash, DMV Lt. Tim Charland said in a court affidavit. The DMV asked George Maglaris of South Burlington, a forensic expert on motor vehicles and a recognized court expert, to check the car. The 17-page affidavit by Charland outlines the poor condition of the See Manslaughter Charge, Page 38
18 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
In March, the plant celebrated the completion of its three-millionth vehicle since production began in 1994. The South Carolina Ports Authority announced in February plans to build a 60,000-square-foot site operations center for BMW next to the plant’s main entrance near the intersection of Highway 101 and Interstate 85. “What is so exciting is that the fact that this validates their decision in 1992 to build their first plant outside of Germany in South Carolina,” said David Britt, Spartanburg County councilman. “It was a leap of faith… We have become the No. 1 plant for BMW in the world. Make no mistake, we build the finest automobiles in the world.” Britt praised local residents for their resiliency in the wake of the textile industry’s demise. BMW’s expansion was one of several large projects announced during 2014, including Toray’s new $1 billion carbon fiber plant in Moore and a new Bass Pro Shops store across from the BMW plant. In total, the county landed 14 projects last year worth nearly $2.4 billion and 2,114 jobs.
The momentum has continued this year with several more projects announced, including Rite Aid’s Southeast distribution center, Kobelco’s excavator plant and Dollar Tree’s distribution center at Upstate Corporate Park, an industrial park shared by Spartanburg and Cherokee counties. “BMW changed South Carolina,” Britt said. “We became an international community, county and state because of them… We have proven to the world that this is the place to do business. It doesn’t matter if you are making the world’s-finest carbon fiber or world’sfinest excavators. This is the place to do business. And that is because of our people.” Britt said there are more economic development projects in the pipeline. He expects to see BMW’s investment in Spartanburg continue. “I predict more great things to come for Spartanburg with BMW,” he said. “I think they will do more and more in their growth than we can probably dream of.” Thank you to the Herald-Journal/ GoUpstate.com for permission to reprint this article.
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 19
New Sherwin-Williams Web-Based System Aims to Save Shops Time & Increase Their Profit by Stacey Phillips, Assistant Editor
A new web-based system developed by Sherwin-Williams Automotive Finishes was designed to help shops decrease the time it takes for the paint selection process to less than five minutes. After being tested by hundreds of shops across the United States and Canada, the company’s Formula Express 2.0 color retrieval system was officially launched in August. John Ceglarek, color systems manager for Sherwin-Williams Automotive Finishes, said the new FormulaExpress 2.0 Color Retrieval System was designed to achieve the best color match results in the shortest possible time, which can result in improved profitability, cycle time, and customer satisfaction. “The problem with so many of the existing color retrieval systems is that they are slow, cluttered, and difficult to enhance, change or maintain because they are built on aged platforms,” he said. Ceglarek said color selection can typically take seven to eight minutes or even 30 minutes or sometimes more. “A significant percentage of vehicles don’t fit the mold,” he said. “Those are the ones that cause that time to identify a color to skyrocket. It’s those non-typ-
ical things going through your process that are most disruptive in the body shop.” He said that if just one vehicle in 10 is difficult to identify color, it can completely disrupt the entire lean process in the repair facility. “Those were what we were trying to eliminate,” said Ceglarek. It took approximately two years for Sherwin-Williams, a manufacturer and distributor of automotive refinish and
fleet/commercial transportation coatings and sundries, based in Ohio, to develop the product. Ceglarek said that the faster system will be more efficient for the automotive repair industry. “With FormulaExpress 2.0, painters and technicians will spend much less time picking the right color for the job, and much more time delivering vehicles,” said Ceglarek.
“This will increase through-put, productivity, and profit in their shop.” Formulas are sorted by popularity instead of the “standard with alternates” method widely used by many existing color retrieval systems. Additionally, FormulaExpress 2.0 has a patent-pending Color Filter™ feature. This feature helps the painter select from a list of color variations by selecting a few user-friendly filters. Ceglarek said that no other system has this way of picking from a set of variations. When Autobody News talked to Ceglarek about the new product, he demonstrated how a painter is able to look at the various color options on the screen to help make a decision. He noted that they can be sorted by most likely to match vs. least likely to match which really helps make color retrieval faster and easier. “Instead of doing it the way traditional software would to add more information to look at, we take information away,” said Ceglarek. “We start to take away data from the screen that we know isn’t relevant to try to help [painters] make those decisions faster.”
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Unlike other systems that require the user to know the specific information about the vehicle such as formula code, color code, color chip, etc., the new system allows the user to enter whatever is known about the vehicle. “The system provides intuitive search functionality, and is extremely fast, reliable and provides real-time updating,” he said. FormulaExpress 2.0 also provides storing, tracking and reporting. Designed to work with multi-platforms including tablets, smartphones and PCs, Ceglarek said it has the most updated color information readily available, 24/7, 365 days a year. He also said the new FormulaExpress 2.0 system is extremely versatile. “It is literally functional with every automotive finishes intermix and factory pack system Sherwin-Williams provides, with access to more than 750,000 color formulas,” he said. It also works in conjunction with Sherwin-Williams Automotive Finishes color tools, including the PROSPECTOR® color reference system and Color Works® The Match Box (for fleet refinish and OEM colors). For more information about Sherwin-Williams Automotive Finishes FormulaExpress 2.0, visit www.sherwin -automotive.com/formula-express or call 1-800-798-5872.
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Ben Komenkul Became WIN Member to Support Women in the Workplace by Ruth Weniger
Ben Komenkul, Vice President at ClaimForce, is a man among (wo)men. As one of a handful of male members of Women’s Industry Network, Komenkul is so convinced of the value of women in the workplace and in his workforce, he not only joined the organization in 2011, but he has attended every eduBen Komenkul, cational conference Vice President at since he joined. ClaimForce joined We talked with WIN in 2011 Komenkul about the value of his membership in this mostly female organization.
Tell me a little about yourself: I started in the insurance industry when I was 18 in a sales position, representing life, property and casualty policies. I had family that was in the insurance business, so you could say that it was just in my blood. Throughout my career I have worked in various capacities with companies that were all somehow connected to insurance. Now, I am vice-president at ClaimForce.
Tell me about your organization and what you do” With ClaimForce, we saw an opportunity to use technology to improve the claims process. At the same time, we are independent and we provide a sort of ‘Angie’s List’ of the insurance world. Women make up a large portion of our corporate office, probably 40%. Of that group, two key roles, VP of Technology and Material Damage Vendor Manager, both traditionally male roles, are filled by our female leaders. And in the field, women make up about 25% of our total force.
Why are you a member of WIN? I first heard about WIN three employers ago, and in that particular company only 15-20% of our appraisers were women. When looking at the business, I noticed that those female appraisers’ estimates were very detailed and complete—we seldom had issues with their “sheets.” They just didn’t miss the small things. What I took from that is that I wanted to learn more about how women think, work and communicate. That’s when and why I joined WIN…to learn. What value has the organization (WIN) brought to you personally or to your or-
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ganization? Aside from giving me the opportunity to network with segments of the industry that I would simply not be exposed to, WIN has helped me relate better to both my male and female clients as well as my employees. Witnessing the co-operation and willingness to work together across this entire organization has been incredible. Isn’t that what we strive for in all of our companies? I was recently at a conference and was acutely aware of the women in the room being the minority…just as I am the minority at WIN conferences. That role reversal gave me a whole new perspective on how I choose to interact when I attend these events. At that same conference I saw that there was a group of women taking a picture. They were from all segments of the industry but the energy and co-operation around this group was remarkable. It turned out that this was a “WIN photoop.” There is no other organization that I have either been part of or witnessed that demonstrates that level of “community.”
What advice do you have for business leaders who may consider joining WIN or sending their female execu-
tives/staffers to the educational conference? Nobody reaches success without the support of the women in our lives. Starting from our mentors, colleagues, assistants, to our partners at home, women are the ones men seek for encouragement when we need it most. WIN, being the sole organization in our industry that encourages more female leadership, deserves to hear that we, as men, support WIN as they work to support their members and their careers. You don’t need to be a woman to understand WIN’s contributions to our collision industry. If you support WIN, you are supporting our daughters, our wives, our colleagues, and our friends. WIN gives women an anchor and motivation to do something more; it gives them inspiration to be more than they ever imagined. So, what would I tell them? I would say “send your employees to conferences, become a member, or sponsor the organization.” It’s the right thing to do, it’s the smart thing to do and it’s a great business decision. Opportunities have opened up for me at WIN and attending WIN conferences has even helped me communicate better with the real decision maker in my home.
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Family Touch Makes Lawrence Auto Body in Livingston County, MI, a Favorite by Wayne Peal, Livingston Daily
Lawrence Auto Body isn’t the kind of place folks ever hope to visit. But they’re glad they did. The Brighton collision shop is again a People’s Choice Award winner, marking the fourth time in the past five years — and 14th time in the past 15 years — it has claimed the honor of Best Auto Collision Shop (Nondealer). For owner Kate Lawrence, success comes down to two things: trust and quality. “We have built strong relationships with our customers, they come back generation after generation,” she said. Because it’s small, the company can provide personal service, office manager Monica Winberg said. That includes calling people to let them know their cars are ready to handing them their keys in person. “It's the personal touch,” Winberg said. It’s not an award the company takes lightly. “We know there are many, many auto shops in Livingston County,” Lawrence said. But she also knows a little some-
thing about constituent service. Lawrence served eight years as Brighton mayor between 1999-2009 and is currently a county commissioner.
Mike Lawrence installs weather seal to a replacement hood on a 2014 Ford Escape in a bay of Lawrence Auto Body. The shop was honored a People’s Choice Award, this being the 14th win of the past 15 years. Credit: Gillis Benedict/Livingston Daily
The commitment to quality extends not just to the parts themselves, but to the way they are installed.
24 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
“When we have to paint around a window, we take the window out. We don’t just tape it off,” said Kate Lawrence’s son, Mike Lawrence, who runs the back shop. The shop area also features heated floors, rapidly defrosting even the most snow-covered vehicles for faster service. Operating since 1977 at the same location, the business underwent a major renovation in 2001. It added brick fronts along with a bay window, earning a beautification award from the city in the process. “We don’t look like an auto shop, and we don’t want to look like an auto shop,” Kate Lawrence said. If anything, the business at 306 W. Grand River Ave. in Brighton looks like a home — albeit one with an unusually large garage. But that’s appropriate for a family-owned business. Kate Lawrence’s husband, Larry Lawrence, founded the business after working several years as an auto-body painter. He learned the trade at Cars and Concepts, an auto-customizing company owned by onetime U.S. Rep. Dick Chrysler. There, he received several highprofile assignments, including paint-
ing the car of three-time Indianapolis 500 winner Johnny Rutherford. “But he always wanted his own business,” his wife said. Back then, it was a one-man shop. “When he’d have a major painting job, he’d lock the door and put out a sign saying ‘Come back in two hours,’” Kate Lawrence added. She was on board from the start, tending books after completing her standard 9-to-5 insurance industry job. The couple married in 1980, raising three sons. Though Larry Lawrence retired a few years ago, the business will remain in family hands for years to come. “You could have an auto shop almost anywhere, but we love Brighton and we love being here — right on the main drag,” Kate Lawrence said. Their customers wouldn’t have it any other way. We would like to thank Livingston Daily for reprint permission.
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3M Hire Our Heroes Tool Grants Awarded to Ivy Tech Automotive Graduate
Ivy Tech Community College Northeast automotive technology student Gabriel Davis and graduate Paul Hyde recently selected more than $3,000 each in tools and equipment, as recipients of the Collision Repair Education Foundation’s (CREF) 3M Hire Our Heroes tool grant for 2015. Thirty-five winners from across the country had the opportunity to select $3,000 worth of tools and equipment to help in their education and for employment after graduation. Since 2013, 3M has partnered with CREF in support of the collision repair industry and American veterans. 3M has donated $500,000 to be used toward scholarships and tool grants for individuals who served or are currently serving in the military and their family members. “Our nation’s military veterans deserve every opportunity to get a great start in our industry,” said Dale Ross, U.S. marketing operations manager at
Ivy Tech Northeast automotive technology student Gabriel Davis (left) and graduate Paul Hyde (right) display $3,000 in tools and equipment. They are joined by Randy Minobe, senior account representative with the 3M Automotive Aftermarket Division
3M Automotive Aftermarket Division. “We are happy to continue to give back to those who have served in our military through the 3M Hire Our Heroes program, and we wish them all great success in their future careers.”
Davis served in the Indiana Army National Guard for nearly eight years before enrolling at Ivy Tech Northeast. “This grant means that there are companies out there that recognize vets are just as hard-working and dedicated to what we do as our civilian counterparts,” Davis said. Hyde, a spring graduate, served in the U.S. Army for five years. “My passion for the automotive field is screaming, and the tools that have been put into my hands by this grant will ensure that all of the hard work in getting to this point will be worthwhile,” Hyde says. Ivy Tech Northeast was one of only two colleges in 2015 to have more than one 3M Hire Our Heroes tool grant recipient. “When you have more than one individual win, that says a lot about your program,” said Darrel Kesler, dean of Ivy Tech Northeast’s Technology Division.
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July Auto Sales Surge Due to Pickups and SUVs
The industry kept on course for its best year in more than a decade last month after a disappointing June, driven by deliveries of SUVs and pickups as car sales lagged. Most major carmakers handily beat estimates, with the average analyst projection putting the annual selling pace at about 17.2 million vehicles, which would be the highest total since 2001. “Pickups and SUVs continue to keep new-car sales elevated,” Jessica Caldwell, director of industry analysis for car-shopping site Edmunds.com, told the Daily News. “In fact, July marks the 23rd month in a row in which trucks (together with) SUVs have outsold cars. Lower gas prices certainly are a catalyst, but the availability of cheap credit is helping consumers get into these more expensive vehicles,” Caldwell said. Buyers spent a record $47 billion on new vehicles in July, a 2.1% increase from last year, according to automobile pricing site TrueCar.com. Ford, which saw sales sputter in the first half of the year as the company faced production—and perception—problems transitioning its bestselling F-150 truck to a lighter aluminum body, reported a better-than-expected 5% jump in sales last month.
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 25
New ALLDATA President Discusses OE Repair Info with Associations and Insurers at NACE 2015 by Victoria Antonelli, Online Editor
Over the past eight years, ALLDATA, a provider of OEM service and repair information since 1986, has expanded its predominantly mechanical focus to the collision repair sector with the addition of ALLDATA Collision. This new and improved program allows users to access a single source of up-to-date OE-direct repair information. The company’s database is available online and features information on more than 33,000 engine-specific vehicles from year 2000 to present. Featured OE procedures include sectioning and structural repairs, handling of new materials and panel removal and Mitchell Major, president of replacement. ALLDATA In March 2015, Mitchell Major became president of ALLDATA after holding various positions at ALLDATA’s parent company, AUTOZONE, for 10 years. Autobody News spoke with Major while he attended NACE CARS 2015 in Detroit, MI. “NACE has been a great opportunity to talk to people on the user side of the equation, such as associations and insurance carriers, and understand their thoughts about OEM information,” said Major. “My perspective is that I can’t imagine a world in which you would not want to be using OEM data repair information on the collision repair side, particularly if you walk the collision floor and see the complexity of the structure of vehicles.” Major said he began his career at AUTOZONE on the inventory supply chain side, where he ran replenishment for several years. He then moved
over to the operation store side before taking over the role of vice president of stores. While serving as VP, Major was responsible for 900 stores across the country, and because of that, he said he spent a lot of time out in the field talking to both DIY and commercial B2B customers. “This position gave me a deep familiarity with the concerns and opportunities on the shop side of the business,” said Major. “When I started at ALLDATA, I began filling in the blanks on the software end.” Major said that since a lot of collision shops are still not using OEM information, the liability for shop owners continues to increase. “Many collision shops are small independents without the resources of national chains and aftermarket information fills that need,” he said. “OEs are certainly changing and adapting to the market place, including customers of ours, when it comes to pricing. It's an ‘adapt or die’ universe we live in, when it comes to the economy, and everyone is going to have to change and roll with the punches.” In order to prevent incorrect repairs, which could lead to consumer injuries or even death, Major said he and the rest of the product team make a point to speak with industry members to find new ways to make OEM data that much more compelling. “Typically, if you go to a shop and say, ‘My check engine light is on and I need to understand what's going on here,’ they’ll go out and write it down on a paper pad, then they’ll go in and key it into the computer, and it takes a lot of time,” said Major. “This creates a huge opportunity to streamline that whole process. Whether you’re mechanical or collision, you want to turn the bays;
Tesla Motors Selects Solera to Provide Collision and Customer Communication Services
Solera Holdings, Inc. announced on August 3 that its collision estimating and customer communication platforms were chosen by Tesla Motors for its global certified collision repair centers. Through AudaExplore (U.S.) and Audatex (global), insurers and repairers will use the Solera solutions to process fast and accurate collision repair estimates and insurance claims on Tesla vehicles. Tesla will also leverage the AutoWatch platform within the
Solera solution set to enhance both the driver experience and communication between Tesla and its customers. “We have worked closely with Tesla over the past several months to develop highly accurate and data-driven integrated solutions for Tesla’s collision repair network,” said Tony Aquila, Solera’s founder, Chairman and CEO. “Our goal is to fully leverage Solera’s technology platforms to digitally transform the vehicle repair experience for all stakeholders.”
26 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
you want to get the cars in and out,” he continued. “Most shops have two or three bays, which gives you limited physical space and limited technicians. ALLDATA Collision is available online, on either desktop computers or mobile devices, so it can be checked nearly anywhere in the shop. [Simplifying those steps] increases cycle time and productivity, which in turn increases profit.” Tanushree Sircar, marketing manager at ALLDATA, explained that their customers span a wide range of backgrounds and age groups. While the younger generations adapt to new techTanushree Sircar, marketing manager nologies faster and for ALLDATA prefer using mobile devices, some technicians are more comfortable with older technologies. “The convenience of accessing this information is what’s interesting to everybody,” said Sircar. “The ability to access quality OEM information through their desktop or Android or iOS device, making the repair process
much easier and faster, is what makes our customers willing to change and adapt to the new technology.” Instead of paying for classroom time to keep technicians up-to-date on the latest vehicle trends and models, “you can just turn on ALLDATA Collision, and the system will lead you through the process so you don'’ make an incorrect repair. Our product roadmap is all about a training-free solution. It’s as easy as making a purchase from eBay or Amazon,” added Major. Another tool ALLDATA has implemented to help make life easier for technicians is the online database Community. According to Sircar, Community allows technicians to log on and ask other technicians detailed questions about the OE repair process and specific issues. She added that the database has recently reached 70,000 users in just two years. ALLDATA is based in Elk Grove, CA. For more information on ALLDATA Collision, visit their website at http://www.alldata.com/collision or contact the company’s marketing manager, Tanushree Sircar, at tanushree.sircar @alldata.com / 800-829-8727.
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 27
Apple is Building Self-Driver, Looking to Test in Bay Area
Apple is building a self-driving car in Silicon Valley, and is scouting for secure locations to test it, according to Britain's Guardian newspaper. Documents show the oft-rumoured Apple car project appears to be further along than suspected. Reportedly, engineers from Apple’s secretive Special Project group met in May with officials from GoMentum Station, a 2,100-acre former naval base near San Francisco that is being turned into a high-security testing ground for autonomous vehicles. In correspondence obtained by the Guardian under a public records act request, Apple engineer Frank Fearon wrote: “We would ... like to get an understanding of timing and availability for the space, and how we would need to coordinate around other parties who would be using [it].” Apple declined to comment. GoMentum Station is on the old Concord naval weapons station still guarded by the military, making it “the largest secure test facility in the world for testing validation and commercialization of connected vehicle (CV) applications and autonomous vehicles technologies to define the next generation of transportation network infrastructure.”
EstimateScrubber.com Releases Invoicing APP
VehicleOwnersGuide.com, announced the release of the first of its’ ScrubberApps—a joint development with Saint-Gobain/Norton Abrasives to develop the Norton Invoicing App. The Norton Invoicing App allows estimatescrubber.com subscribers to create an invoice for seam sealers, corrosion protection, foams, accessories, metal bonding, bumper/ plastic repair. The Norton Invoicing App 1) automatically imports R.O, vehicle and owner information from the scrubbed estimate, 2) allows building the invoice with point and click technology, and 3) prints “the” Saint-Gobain/Norton Invoice using current retail pricing. The App is provided at no extra cost to estimatescrubber.com subscribers. “The Norton Invoicing App helps our customers create invoices supporting their materials usage on an RO basis. The invoice will have the Saint-Gobain/Norton logo and current retail prices. You just select the products and quantities used to build the materials invoice. It will help our customers more easily document their materials usage using our invoice format and current retail prices.”, said Randy Vidal, National Accounts, Norton/Saint-Gobain.
28 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
Allstate Delivers Sharp Drop in Operating Earnings
Allstate Corp.’s 2nd Qtr operating earnings fell 41% on lower auto insurance margins and seasonally high catastrophe losses. Operating earnings are a widely watched benchmark for the insurance industry because they exclude realized capital gains and losses from companies’ investment portfolios, among other items that aren’t considered recurring on a quarterly basis, reported nasdaq.com. The decline in operating earnings reflected a broad-based increase in the frequency and severity of auto accidents by state, risk class and other factors. One of the largest drivers of Allstate’s disappointing performance was its higherthan expected auto claims costs; the company paid more in quarterly claims than it collected in premiums. The last time that happened was in the fourth quarter of 2012, when Hurricane Sandy sent auto claims skyrocketing. But there’s no natural disaster to blame this quarter. In a conference call with analysts last week, Allstate CEO Tom Wilson and President Matthew Winter attributed the increased claims to more drivers putting in more miles on the road, according to Crain.
Carmakers are Keeping Data from Tech Partners
Carmakers are limiting the data they share with technology partners Apple and Google through new systems that link smartphones to vehicle infotainment systems, defending access to information about what drivers do in their cars, according to reports in straitstimes.com. Car companies hope that the vehicle data will one day generate billions of dollars in e-commerce, though they are just beginning to form strategies for monetising the information. Apple and Google already make money from smartphone owners by providing a variety of products and services, from digital music to targeted advertising, and connecting phones to car systems will almost certainly extend their reach. But as infotainment systems such as Apple’s CarPlay and Google’s Android Auto become more widespread, car companies hope to keep tech providers from gaining access to a wealth of potentially profitable information collected by computer systems in cars. Some car companies have specifically said they will not provide Apple and Google with data from the vehicle’s functional systems—steering, brakes and throttle, for example.
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 29
Nevada Shop Owner Films Pilot Show for Reality Series ‘Every accident is a unique story to be told’ by Stacey Phillips, Assistant Editor
The McCarran Auto Body team was hard at work, as usual—back in January 2015—painting, welding and sanding. It was a typical day. The only difference was that the employees were being videotaped for a possible TV reality series. Jerry Wientjes, Jerry Wientjes owner of McCarfrom McCarran ran Auto Body in Auto Body Sparks, NV, said that Bishop Lyons Entertainment made the commitment to produce the series for nationwide distribution. CEO Andrew Bishop and President David Lyons, the executive producers of the series, are currently in discussions with national cable networks in anticipation of airing episodes in 2016. “The premise of the show is behind every auto accident is a unique story to be told,” said Lyons. “The series follows outrageous and comical stories as seen through the eyes of the
customers and employees.” Lyons said that after working with Jerry and his team, they noticed Jerry’s personal connection to his clients is what makes him so successful. “His ability to draw stories out of his customers and give them the reassurance that he will make it better is a strong driving force that not only makes for a great show, but also a tremendous business,” he said.
the repair process showed an unsightly car being rolled into the shop and re-appearing minutes later completely repaired.” He began toying around with the idea of creating a show that was both informative and entertaining. Years earlier he had discussions with his wife’s uncle Bill about reality TV. Bill was a seasoned Hollywood writer for many hit shows in the ‘70s and ‘80s.
“The series follows the outrageous and comical stories seen through the eyes of the customers and employees” —Executive Producer David Lyons Wientjes said the premise is three cars, three stories and a lot of camaraderie. He is a reality TV show fan himself. He said that he noticed that the process of repairing a car is rarely shown, and never in any detail. “I thought it would be so helpful to educate the public about what goes on in the repair process,” said Wientjes. “Until now all representations of
30 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
“He would say that inspiration for a plot often comes from real life situations,” said Wientjes. “Sometimes the chemistry is just right and it works.” He recalls Bill telling him, “You can’t make this up!” Realizing that a body shop is not the ideal backdrop for filming, Wientjes and his crew spent countless hours sprucing up the place. This included
removing clutter, painting walls and floors. Although McCarran Auto Body had been producing and airing commercials for more than two decades, Wientjes quickly discovered it would not be easy to find a film crew with the experience and equipment required that had any interest in filming for days at a body shop. The first few calls were less than encouraging. In fact a producer suggested that he just get a “Go-Pro” and do his own filming. Finally he got a break. After contacting Sam Breen, and John and Brian of CID Media (a local production group), they agreed to come to the shop and film for a few hours to see what would transpire. After the first day, they were optimistic and agreed to return for more filming. As the days turned into weeks a show began to emerge. Wientjes said it was certainly not an easy process. “We would meet before filming and come up with a concept for that day,” he said. “Inevitably something unexSee Reality Series, Page 34
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 31
Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
‘MSO Symposium’ Panels Presented Ideas on Human Resources, Customer Satisfaction Attracting, training and retaining quality employees was among the topics tackled at this year’s NACE “MSO Symposium,” a half-day event in Detroit in July that focused on the needs of multiple shop operators (MSOs), as well as those who aspire to become an MSO. During one panel discussion at the event, for example, Max Sorensen of Minnesota-based ABRA Auto Body & Glass explained how his company has
a 300-module “learning management system” that covers subjects ranging from how to greet a customer coming into the shop to preparing final billing of an insurer. Employees can use the system to learn new skills, or use the system as a “refresher” when they have questions. Darrell Amberson of LaMettry’s Collision, an MSO in the Minneapolis, MN, area, moderated the panel discussion, and said that while large MSOs like ABRA can have staff devoted to employee training and development, his company is not that large. “So we’re looking at developing a training department using some resident experts to help train some of other people,” Amberson said. That inhouse training will become part of a formalized career path the company is developDarrell Amberson (l) and Max Sorensen in panel discussion ing to offer to entry-level em-
ployees. “Knowledge is a company assets, but knowledge has a shorter and shorter shelf-life,” panelist Jeff Peevy of the Automotive Management Institute said, emphasizing the need to hire those who will seek out continued training. “But learning is the cure for that. The willingness and capability to learn is Brandon Eckenrode the only true source of a sustainable competitive advantage.” Brandon Eckenrode of the Collision Repair Education Foundation said that organization is doing several things to help attract more people to careers in the industry. The Foundation is involved with the national association of school guidance counselors, for example, to help educate them about careers in the industry. The Foundation
is developing a national job board, and is launching a series of career fairs across the country to help students and shops connect. The Foundation is also working to attract military veterans to training in the industry and to educate employers about veterans’ benefits that can help those vets transition to careers in the industry. Several panelists said requiring entry-level employees to spend several weeks as a porter or detailer at a shop helps the employee get a feel for the business and the shop get a sense of the employee’s chances for success. “You get a good feel about whether they have a good attitude, do they show up on time, that kind of stuff,” Kevin Burnett, vide president of operations for Gerber Collision & Glass, one of the largest MSOs in North America, said. That can prevent both the shop and the employee from make an larger investment in training, etc., before they
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know if it’s a good fit for both, panelists said.
Entry-level pay an issue But Eckenrode also said the industry needs to address that fact that its entry-level wages often aren’t always competitive with those in other trades. That’s allowing other technical training programs and trades to attract students away from collision repair. He said the Foundation is working to help collision repair training programs understand the need to focus students on fewer skills – the skills that will help the students be more immediately productive in shops. “We’re going to do a better job of helping to instruct these school educators to not teach a mile wide and an inch deep,” Eckenrode said. Another panel during this year’s MSO Symposium focused on the use of customer satisfaction measurement to help manage MSOs. Jason Bertellotti of Mitchell International, said some of the highest customer satisfaction he sees are at shops that offer employee incentives based on customer feedback. One such company, he said, uses formalized customer follow-up interviews, but also asks customers before they leave the shop to fill out a card asking for one thing they truly enjoyed about the process. Anytime a customer mentions an employee by name on that card, that is shared with all the staff at daily meetings, and the employee receives some sort of incentive. “It’s all about creating the culture by talking about the customers’ experience, not pressuring the customer to give you a ‘10,’” Bertellotti said. Dean Fisher, a CARSTAR franchisee and leader of the MSOs field service team agreed that pushing a customer to give you a high CSI rating – something he experienced when he recently purchased a new car – is less effective than just focusing on the customer experience. “You don’t sell CSI. You do CSI,” Dean Fisher Fisher said. Bertellotti agreed. Attempting to “manage the score” only communicates to your staff that it’s the score itself, and not your customer’s experience, that you care about. He recommends taking a step back, almost as a secret shopper, to see and hear what your customers are
seeing and hearing. “See how you would perceive that, from the minute they drive on the lot, what it looks like,” he said. “All the way through how they are greeted, how they are talked to, whether they are given some empathy during the process and so forth.”
How to stay in contact Do customers prefer regular contact – including customer satisfaction indexing – by text, email or phone? Not surprisingly, the panelists said ‘it varies.’ David Kulkis, business development director for ABRA Auto Body & Glass, said he still believe phone calls are the best way to keep customers updated. Such calls give you an opportunity for a personal touch and to convey empathy, he said. Electronic communication can augment that, David Kulkis he said, and there are some customers who just don’t want the phone calls. That’s why it’s important to ask customers about their preference, Fisher agreed, because automated texting or email may even be alienating some of your customers. “We find that younger customers prefer texting and email is great for them,” he said. “But there’s at least 40 percent of your clientele who want a phone call. They still want to communicate with you regularly that way.” Bertellotti agreed that a hybrid strategy is best, particularly when it comes to follow-up customer satisfaction indexing. “There’s a very high self-selection bias in email or any sort of electronic survey,” Bertellotti said. “People who are unhappy or extremely happy typically will take it – and always more of the extremely unhappy. So you self-select downward. The results are usually lower than they would be on the phone, and you miss all of the quality data in the middle. You never get their feedback and never know what’s important to them.”
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Continued from Page 30
Reality Series
pected would happen, and we would just go with it. By the time the first show was complete we had developed a very comfortable relationship with the film crew, so they were able to film us just being us.” Wientjes said that during the course of filming their first show he had a meeting with his longtime friend and attorney Curtis Coulter. “Coulter has an uncanny way of communicating his vast knowledge of the law,” he said. “Knowing that I could not myself say things of a legal nature, I asked Curtis if he would mind being in my show.” Coulter agreed and has become a regular fixture, imparting valuable, relevant information on each segment. A final addition to the show were his dogs; Nicholas, a seven-year-old Coton DuTulear, who dutifully greats visitors at the shop each day, and Kachi, his two-year-old Akita. “The magic they created in editing was unbelievable,” said Wientjes who is very pleased with the result. With the first show complete; they were ready to air it. Three 30-minute episodes have aired on local stations 2 and 21 every Saturday and Sunday. They are cur-
in January. A crew of 10 worked tirelessly, putting in 12-hour days. “This was truly a production,” said Wientjes. “The professionalism and work ethic of the crew was truly
ceived my first custom painting book from Jon.” Wientjes moved to Montana in the 1980s and worked at Classic Auto Repair before re-locating to Palm
Jerry Wientjes, Owner of McCarren Auto Body in Sparks, Nevada, mixing paint at his shop while a TV camera man looks on.
outstanding.” They shot about 60 hours of footage to create a 26-minute pilot show for a potential reality series. “My crew and I agreed it was such a positive experience for us to work with them, said Wientjes. After they were finished, his office assistant Cheryl discovered that the crew had many, many accolades. “The crew had been so down to earth and easy to work with, we had no idea of the magnitude of their previous success. Probably better that we didn’t know, we were already a little nervous.” Wientjes grew up in Minnesota. His father purchased a car for him during high school—a 1968 Camaro. “It needed a paint job but I couldn’t afford it so I said that Terry McNary doing structural pulls at McCarren I’d have to get a job at a body Auto Body. shop.” It was at A&G Auto rently available to watch online on Body in Rosemount, MN. you tube. (First episode: https://www While he worked there, he was .youtube.com/watch?v=5MRsXmtu taught to pinstripe and letter from Dv8) Lloyd Vinge and learned custom After the first two shows were painting from Jon Kosmoski (House filmed, Bishop-Lyons Entertainment of Kolor) who brought his cars to became interested in producing a Vinge for custom striping and letterpilot. They sent their “A Team” from ing. “I would always be hanging Los Angeles to McCarran Auto Body around and watching Lloyd, and re-
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Springs, CA, and finally settling in Reno, NV, where he met his wife Julie. He started working at McCarran Auto Body in 1993. When the shop became available in 1995, he decided to obtain it. By 2003, the 10,000
square foot strip mall location became a parking challenge due to no fenced parking. That same year a former cab company facility became available. It sat vacant for several years and Wientjes said it was in pretty rough shape. However, the location was ideal and it had a 1.5 acre fenced yard, thus eliminating the task of moving cars out every morning to start work and securing them back inside the shop at the end of the day. After a few months of extensive remodeling, they relocated. “Life has been so much easier with this configuration. We went from two roll up doors to 16,” he said. “I’m hands on. I’m a painter, I’m a body man, I do everything,” said Wientjes. He said this helps him get everything accomplished in the shop in case someone is sick or he needs to help out. Since filming the episodes, Wientjes said business has increased and customers now need to schedule appointments in advance. When he first began filming he said he didn’t feel comfortable in front of a camera, said Wientjes. “Now I just do my job. I just forget about it and go to work,” said Wientjes.
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Urethane Supply Unveils Nitrogen Plastic Welder With Self-Contained Nitrogen Generation System
Urethane Supply Company revealed its new 6066-CG Nitrocell Nitrogen Plastic Welder on July 21 at the NACE/ CARS Show at the Cobo Center in Detroit, Michigan. Urethane Supply introduced the first commercialized nitrogen plastic welder to the collision repair industry in 2006, and the new 6066-CG Nitrocell is even more advanced. The 6066-CG is designed to generate its own nitrogen gas from shop air and requires no onboard air compressor. It is light in weight, making it easy for technicians to maneuver 6066-CG into position. It also features an easy-to-handle welding torch that can get into tight spots without causing user fatigue. “Repair shops want to minimize repair times and maximize profits, and we’ve designed the new 6066-CG Nitrocell Nitrogen Welder to help them do just that,” said Kurt Lammon, president of Urethane Supply Company. “The new unit will help collision
specialists reduce cycle times and increase their opportunities to do more profitable labor-based repair of plastic components.” Nitrogen gas welding creates a strong material bond, because it eliminates oxidation of the plastic during the welding process. Using the shop’s own common air supply, the 6066-CG Nitrocell employs a three-stage filter to clean impurities from the air, then uses sophisticated membrane technology to extract an endless supply of nitrogen. The 6066-CG’s analog instrumentation features a control regulator combined with an output pressure gauge and a flow gauge to give the operator control over the amount of gas used in the welding process. A low-pressure safety switch automatically cuts power to the heating element, protecting it from overheating if the flow drops too low. “Our flow meter allows shops to achieve and maintain a high-quality, repeatable result when repairing virtually all types of plastic components,” Lammon said. “Consistent results help shops meet key performance indicators, and that, in turn, drives more business from insurance companies.”
Continued from Page 18
Manslaughter Charge
car with extensive rust, especially on the rocker panels. DMV Investigator David Evans, a former Stowe police officer, and Maglaris were part of the subsequent inspection. The multiple problems uncovered after the crash were “more than likely” also present when Ibey car received its 2013 inspection sticker, Charland wrote. Jalbert provided three voluntary sworn recorded statements that included “several admissions about his failure to properly inspect Ibey’s vehicle,” Charland said. “Steven Jalbert displayed no signs of remorse or concern over his involvement in the matters leading to the death of Mrs. Ibey. In fact, he showed more concern about their inability to conduct vehicle inspections in the future,” Charland wrote. During an Aug. 24, 2014, statement, Jalbert said he replaced one of the rear brake lines and the other three “showed indications of serious rust and corrosion” in April 2012. Jalbert said Ibey didn’t want them replaced, but also could not remember what he used
for a reason. Three weeks later Jalbert put a new inspection sticker on the car. Jalbert’s father passed the car in May 2013 and Steven Jalbert did the state inspection again in May 2014, Charland said. During a September 25, 2014, interview, Jalbert said he never placed the
A.J.’s Sunoco on U.S. 302 in Barre. Credit: Glenn Russell/Free Press
car on a lift while doing the May 2014 inspection and he never took it for a test drive before putting the sticker on, Charland said. Jalbert also said he never removed a tire to check the braking components and he never conducted — and was unaware — that was expected to conduct a 150 pounds per square inch brake test. However, Steven Jalbert maintained the service station never received the 2013 inspection manual See Manslaughter Charge, Page 40
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Manslaughter Charge
from the Vermont DMV. When Evans and Charland asked him and his father to double check. As the Jalberts rummaged through a cabinet, Charland said he spotted a yellow envelope from DMV. He asked them to open the envelope and they removed an unused inspection manual, he wrote. Investigators returned to the station in Oct. 23, 2014, and found the 2011 manual on Steve Jalbert’s desk, Charland said. When asked what happened to the 2013 edition, it was found on a shelf in the office. Charland said he seized the 2011 as evidence.
Fighting the charges DMV Capt. Drew Bloom and Charland arrested Jalbert at the service station shortly before his arraignment Tuesday. Jalbert said nothing during the hearing. Defense lawyer Hal Stevens of Stowe, after the hearing, questioned how the state will be able to prove “beyond a reasonable doubt” that there was a link between the state inspection and the fatal crash two months later. Stevens said he expects the de-
fense will hire its own expert mechanic to comb through the evidence. At A.J.’s Sunoco following the arraignment, Jalbert’s parents, Albert and Joyce Jalbert, said they plan to withhold comment and see how the case plays out in court. State records show Jalberts have owned and operated the service station since 2004. Maglaris, the state’s expert mechanic, said, based on the age and condition of the car he suspected, the lower rocker panel/frame rails were most likely rotted away,” Charland wrote. The rot would have forced the engine into the passenger compartment during the crash instead of forcing it downward, Maglaris reported. When the car was put on a lift, Maglaris reported the brakes failed to function and the pedal had no tension, Charland said. “We observed extensive rust, corrosion and deterioration to the vehicle right and lift side, rocker panels/frame rails,” Charland wrote. The condition “significantly reduced the structural integrity of the vehicle to withstand a front-end collision,” he wrote. The manslaughter charge alleges Jalbert “acted with criminal negligence in conducting a motor vehicle
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safety inspection, causing the death of Elizabeth Ibey.” The reckless-endangerment charge maintains that he “placed Donald and Elizabeth Ibey in danger of death or serious bodily injury in recklessly conducting a motor vehicle safety inspection.” Judge Griffin ordered Steven Jalbert to refrain from driving any vehicle until he clears up his license suspension in New Hampshire. If convicted, Jalbert faces up to 15 years in prison on the manslaughter charge and up to one year on the reckless endangerment count, court documents state.
Vermont inspections The state of Vermont has required safety inspections since 1935 to ensure vehicles are operated in a safe condition. “Every car, truck and motorcycle registered in Vermont is subject to an annual safety equipment inspection,” said Button, who oversee enforcement for DMV. “There are nearly 1,100 licensed inspection stations for car and truck inspections and approximately 5,900 licensed inspection mechanics,” Button said. See Manslaughter Charge, Page 70
PPG Introduces DELTRON DPS3105 Primer Surfacer
PPG announced that DELTRON® DPS3105 V-PRIME™ Quick Prime Urethane Surfacer, a gray speed primer designed for spot and panel repairs, is now available. The new primer surfacer offers film build, fast dry-to-sand times and resistance to film shrinkage. “DPS3105 is a valuable addition to the Deltron brand,” said Jennifer Boros, PPG marketing director, collision segment. “It provides PPG customers with fast air-dry performance for excellent cycle-time efficiency with high-quality results. Production-focused collision centers carrying out premium-level refinish work will appreciate this new product’s capabilities.” According to Boros, DPS3105 features dry-to-sand times taking as little as 30 minutes and a high film build of 2.0-2.5 dry mils per coat. She said the primer is easy to apply and sand. It is rollable, can be wetsanded, and allows direct application of a basecoat. DPS3105 can be used with Deltron DCX3030 Hardener and the new DCX3035 High Temperature Hardener. For information, call (800) 6476050 or visit www.ppgrefinish.com.
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Trust your order to the collision parts specialists at these fine Dealers 40 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 41
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
Lean Operations
Why Past Success Could Be Holding You Back with David Luehr
One of the most fascinating career experiences for me was also one of the most difficult. It was called a 360 Degree Evaluation. I thought maybe it was called a 360 Degree Evaluation because when the results were read aloud to me about my management performance, that’s how hot it felt in the room! In those days I was in auto body operations management for a large company that rightfully believed that a healthy culture involved giving all employees a voice. The price for this culture was of course that the employees had the opportunity to evaluate their managers, yikes! The benefit was powerful and has profoundly affected my leadership style to this day. Now in my business as an industry mentor and consultant, I work with very successful people daily. These people are often your typical “type A” business folks that have accomplished a great deal in their lives already. Typically when dealing with these person-
alities I find that there is a great deal of confidence surrounding themselves, their business operations, and the skills they possess as leaders. The dogged determination, the courage to face difficult situations, and absence of fear in asking for more from life propel these people to a level of success higher than the average person. While these are great qualities that will continue to help them in the future, what these individuals often don’t understand is that they may have become successful despite of some of their inferior qualities. Because they are so confident overall, the not so great qualities get lumped into their overall belief system along with the good qualities as an overall success “formula.” In other words, they see no need for change within themselves because what they have been doing has been working fine. At least up to now. What is ironic in this scenario is that these same successful leaders are the very ones that are usually com-
plaining about how difficult it is to get their own people to accept change when in reality they are the most stubborn ones! This takes me back to the 360 Degree Evaluation. This method has become my most powerful weapon in my arsenal for getting leaders out of their own way of achieving big-time success. I am reminded of my own utter disbelief years ago in that hot office when I get to share employees’ real feedback with their disbelieving bosses. I don’t mean to make light of this process, because it is not easy for even the most battle-hardened body shop manager, it can rock their world in a big way! Growth can of course be difficult but well worth it for those serious about living up to their true god given potential. So how can leaders overcome this curse? The short answer is AWARENESS. When a person can come to grips with the fact that their beliefs may be holding them back, there are a couple ways fix it.
1. Be curious! I strongly encourage those that want to be hugely successful to balance their confidence with an equal dose of curiosity. We are no longer living in the Industrial Age and things are changing way too fast to become educationally complacent. How cars are repaired and the methods used to lead people in the modern “Conceptual Age” requires a completely different skillset than most people currently have. It doesn’t have to be a “scary” thing, but future success will require an open mind, and a willingness to learn. I believe curious people will someday rule the planet.
2. Be brave! Those that have thick enough skin to hear the truth about themselves will also benefit greatly. How do people know what to change to? How do they identify areas in their personalities and skillsets that may need some help? There are two main tools I like to use. The first I have
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already mentioned. The 360 Degree Evaluation is a great way to get to the truth if people in the organization trust the process and have no fear of retribution from superiors. Shops could probably create their own employee survey, but companies tend to get more accurate and relevant feed-back when a 3rd party company provides the service.
3. Use science! The second tool that I use with all my clients is the tti Trimetric Assessment. This is an incredibly insightful tool that can give leaders and their employees a scientific look at personality traits, behaviors, values/motivators, and skills. If leaders are serious about getting to the next level in their careers and moving closer to reaching their potential, this is a great place to start! For those successful people that are wondering why things may not be progressing as you would like, I invite you to consider the advice in this article. Be aware, be curious, be brave, and use science. As always my associates and I at Elite Body Shop Solutions are always here to help you find the resources you need to win! Contact me at: david.luehr@elite bodyshopsolutions.com
PPG Pickups Drive off With Honors
The annual PPG Dream Car awards were presented at the Goodguys 18th PPG Nationals held at the Ohio Expo Center in Columbus, July 10-12. A 1955 Chevy pickup owned by Joe
1940 Ford Pickup
and Josh Bailey of Maryville, TN, and a 1940 Ford pickup owned by Robert Anderson of Savannah, GA stood out among the competition. The three-day PPG-Goodguys event displayed more than 6,200 custom cars and trucks and attracted over 75,000 auto enthusiasts. The PPG Dream Car awards are given to the two vehicles (cars or trucks) that best exhibit color, design, gloss and execution
in a paint job. Joe and Josh Bailey, a father-son team, presented their flawless ’55 Chevy pickup. The truck was acquired by an uncle in 1972 and handed down
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through the family. The Baileys took possession of it in March 2014 and worked evenings and weekends in their home shop to give the Chevy its redo. They achieved the award-winning finish using PPG’s DELTRON® 2000 DBC Basecoat and DCU2002 CONCEPT® High Solids Polyurethane Clear with PPG colors Fender Guitar Surf Green and 1957 Chevrolet India Ivory. Robert Anderson entrusted his
Ford pickup to Steve Legens at Legens Hot Rod Shop in Martin, TN. The shop customized and sandblasted the body to repaint it a custom-mix glossy green. Legens and painter Keenan Hailey
chose PPG’s ENVIROBASE® High Performance waterborne basecoat along with water-compatible GLOBAL REFINISH SYSTEM™ D8152 Performance + Glamour Clearcoat and D8372 Slow Hardener to earn a PPG Dream Car award. PPG is the official paint supplier to the Goodguys Rod & Custom Association. For information, call (800) 647-6050 or visit ppgrefinish.com.
www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 43
Industry Insight
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
CIC Committee Working to Eliminate Hidden Costs of Parts Procurement with John Yoswick
A Collision Industry Conference (CIC) committee is working to identify some of the costs – for shops, insurers and parts vendors – associated with various inefficiencies related to the parts procurement process. The committee views this as a key step in determining what electronic parts procurement systems are – or aren’t – doing to reduce such inefficiencies. At CIC in Detroit in July, CIC Parts and Materials committee member Amjad Farah of AkzoNobel Coatings acknowledged that the entire parts ordering process is non-value-added. “No one is paying us to order parts,” Farah said. “We get paid to paint them or put them on, but we’re not getting paid to order the parts. So the process in and of itself is nonvalue-added. But we still have to do Amjad Farah it. So the objective here is to look at the entire process [to figure out how to] make it as efficient as possible given that it has to be done.” During the meeting, the panel shared a “process map” it is building showing all the steps in traditional parts ordering, looking at all the wasted steps and trying to establish some idea of the costs these steps add to the process. John Bosin, chairman of the committee, said some of those initially reviewing the process map criticized the fact that it still included fax or phone orders. “I want to assure you that while some of us may consider faxing ‘20th century,’ the fax is still very much alive,” Bosin said. “When you talk to parts suppliers, ask them how many faxes they get a day with orders. Not only is the fax machine still being used, but the phone is being used and a John Bosin lot of parts salespeople and delivery people are carrying orders back into the office. We all think it’s super-streamlined and elec-
tronic parts procurement is just rapidly sweeping the industry. It’s not.”
The hidden costs Turning to the committee’s process map, Farah said each step in the process has risks that can add waste and costs to the process. For example, shops sometimes order both OEM and nonOEM versions of the same parts at the same time in order to save time if the non-OEM version proves unusable. But receiving multiple parts and returning one adds costs for both the shop and parts vendors, he pointed out. Choosing only parts offered by the “best vendor” identified by the shop can offer some efficiencies for the shop, Farah noted, but can raise the total costs of the parts used, or – if the shop can’t pass those costs along – reduce the shop’s profits. Similarly, if a shop’s ordering decision is based on price alone, one risk could be poor service from the vendor, resulting in delays. Ordering parts from multiple vendors for the same job results in multiple invoices to be paid. If it costs you $25 to receive a part and process that invoice, Farah said, and that happens on 75 percent of your repair orders, that can quickly add up to thousands of dollars in costs. When you look at the whole process as a whole, Farah said, you quickly “come to the realization that as an industry we really need to find a way to make the whole process more efficient for all parties involved.” The committee’s work, he said, is a start to building that awareness. But Aaron Schulenburg of the Society of Collision Repair Specialists said the issue is more complex than a “process map” might indicate, given the often competing interests of shops, insurers and vendors. Some insurer mandates on shops regarding parts – or parts procurement systems – are a good example, he said. “What do we do as a group if we determine that certain processes create inefficiencies and costs for some, while creating reductions in costs for others?” Schulenburg posed, rhetorically. But CIC Chairman Randy Stabler said he’d like to see the commit-
44 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
tee finish the process map to document the potential costs, then see whether and how the electronic parts procurement systems measure and track such potential inefficiencies so they can be reduced. “It’s one thing to say we need better cycle time, but if you don’t know the incremental steps in the entire process, and start to look at them incrementally, you can’t drive out the costs,” Stabler said, as an analogy. “So we may have electronic parts procurement models that do a good job sourcing by price, but do they look at all those other factors that can reduce the overall internal cost of operation?”. “Suppliers, repairers, consumers and insurers all pay for these inefficiencies,” Stabler concluded. “But if we don’t know the additional costs, then we’re going to continue to do it. That’s what I’m hoping to try to ferret out here.”
State of industry training Another panel discussion at CIC in Detroit focused on what was assessed by many as an abysmal rate of technical training among collision repair technicians. Several panelists cited an I-CAR statistic from several years ago that 69 percent of working technicians who weld in U.S. body shops lack formal welding training. “As an industry, we need to be ashamed of this,” Jeff Peevy of the Automotive Management Institute said. “And it’s not just the collision Jeff Peevy repair shops; it’s all of us involved in this. It takes time and resources to train your technicians, and all of us need to acknowledge that. Regardless of what segment we’re in, we need to take an honest approach and say, ‘Are we contributing to this problem, or are we a solution to this problem?’ This is an ethical issue, that we as an industry allow this to be okay. Shame on us as an industry.” Industry consultant and former shop owner Mike Anderson of Collision Advice said he thinks there’s a lack of a ‘training culture’ in the industry.
When he operated his shops, he said, he let new-hires know up front how many hours of trailing they were expected to complete each year. One night a month, he held after-hours training for the body department; another night was reserved for refinish department training, etc. “That allowed our entry-level people who had a desire to grow to stay after-hours for those classes,” Anderson said. “We also opened that up to SkillsUSA student in our local area, so they could attend, and that helped us recruit some of the best of the best.” Anderson said shops always blame the lack of training on time, which is understandable. “We have these unrealistic mandates put upon us that say we need to upload an estimate in x amount of hours,” Anderson cited as one example, “But if I do that, I don’t have time to research the OEM procedures properly. But is that really the reason? Or is it because I was never trained how to integrate OEM software into that process? It boils down to time and culture.” Independent consultant Roger Cada, a retired insurance company executive, suggested that increasing consumer awareness about the dangers of improperly repaired vehicles could help address the training issue. He said salvage yards have examples of cars that were repaired but later declared total losses because the vehicles were known not to be safe based on how they were “repaired.” He suggested that the industry could have the Insurance Institue for Highway Safety crash test such “repaired” vehicles to draw consumers’ attention to the need for safe repairs. “Show the consumer what poor repairs look like, because they don’t have a clue,” Cada said. “They’re not the experts. But if they take away that their family and friends who ride in that car are in danger, they will search out those repairers that are good.”
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Three-C Body Shop in OH Wins Lawsuit Against American Family Insurance Three-C Body Shop in Ohio recently won a lawsuit against American Family Insurance. On September 29th, 2014, during a bench trial in the Court of Common Pleas of Franklin County, Ohio, Civil Division, American Family, the Plaintiff, levied a complaint against Three-C Body Shop. On April 10, 2013, American Family Insurance filed a lawsuit for replevin against the shop due to a dispute arising from Three-C Body Shop’s billing. On January 21st, 2015, the Magistrate ruled in favor of the insurer. Three-C’s legal team filed a Motion for Reconsideration, which was granted, and on April 29, the Magistrate reversed his earlier judgment and ruled in favor of Three-C Body Shop. The facts surrounding this matter stem from when the vehicle owner had a vehicle towed to Three-C Body shop for repair. During the repair process, American Family Insurance, recognizing they had not properly evaluated the cost to repair, and after reviewing Three-C’s blueprint deemed the vehicle a total loss. On September 19, 2011 the insurer made a settlement with the vehicle owner (their policy holder), took title/ownership of the vehicle and on October 5 took possession of the vehicle. Prior to this, Three-C Body Shop deducted its billing for services rendered from the amount
received for the repair. Because the final billing was the same as the initial payment for repair, no monies were left for reimbursement to the insurer. The insurer contested Three-C Body Shop’s billing, which prompted the legal proceedings. American Family filed a motion for replevin against Three-C Body Shop to argue the charges and to take possession of the vehice, of which they already obtained from the shop one year, six months and 24 days earlier.
writ of replevin.” A writ of replevin is a prejudgment process ordering the seizure or attachment of alleged illegally taken or wrongfully withheld property. Where a dispute in billing is at question, the disputed amount is paid to the courts and the court issues a bond that enables the consumer possession of his/her vehicle and holds the funds in escrow until either the time passes or the matter is heard by the courts and settled. The repairer has a pre-
“We are happy that our customer [the vehicle owner] did not need to come out of pocket for work that was clearly owed by American Family,” — Bob Juniper, Owner and President of Three-C Body Shop
When asked why the insurer would attempt litigation to seize a vehicle they already possessed, Bob Juniper, Owner and President of Three-C Body Shop, stated, “It’s either one-hand didn’t know what the other-hand was doing and it was a false action, which is unlikely; We have been to court a number of times with American Family and find them to be quite inept in that venue. It’s more probable that the insurer used the action as a predatory practice to use the legal system as a means to fight us on our charges and it was with intent that the insurer filed a motion with the court for a
determined time (i.e. 60 days) of which to file a lawsuit against the customer to settle the dispute. Juniper said, “Some insurers have used and abused the legal system and employed a replevin in an effort to dare the repairer into filing a lawsuit against their customer to recover their billing. This generally results in a lengthy legal battle (as was ours) which the insurer will make as costly as possible. The insurers know that most shop owners are ill prepared and don’t want to file a lawsuit against their own customers and incur the legal costs, and as a result, the repairers often
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cave to the insurer’s pressures and reduce their billings. This often times results in the shop merely accepting what they can for their billing and foregoing or “eating” the rest to avoid a replevin. Thereafter, the repairers accept what they’re given to avoid similar issues in the future. The insurer wins and the repairer loses. At Three-C we don’t play that game; we charge what’s competitive and reasonable and will do what is necessary to collect it and stop such behavior.” In this instance the court initially sided with the insurer and then reversed itself when the Magistrate learned that Three-C had relinquished the vehicle and American Family Insurance had taken possession of it well before the replevin was filed. The court found on behalf of Three-C Body Shop and that American Family was not entitled to any award. There was also a claim made by American Family against Three-C Body Shop for violation of the Consumer Sales Practices Act that the Court ruled in Three-C’s favor and dismissed it. American Family had 14 days to appeal the decision; they did not do so. “It is rare for a court to grant a motion to reconsider so it was a good win. We are happy that our customer (the vehicle owner) did not need to come out of pocket for work that was clearly owed by American Family,” said Juniper.
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WD-40 Announces New EZ-REACH Product
WD-40 Company introduced WD-40 EZ-REACH to better meet the needs of trade professionals and heavy DIYers who use WD-40® MultiUse Product as part of their jobs. For more than 60 years, automotive and construction professionals and skilled tradesmen have used WD-40 Multi-Use Product, but many expressed the challenge of getting the formula into tight and hard-to-reach places. WD-40 EZ-REACH features an attached, eight-inch flexible straw that bends and keeps its shape. “WD40 EZ-REACH was designed with our end-users’ needs and wants in mind,” said Tim Lesmeister, vice president of marketing at WD-40 Company. “This new delivery system gives trade professionals and DIYers the ability to reach the unreachable and accomplish difficult tasks in overhead areas, under the sink plumbing components, or specific sections in motors and engines, among numerous other uses.” For info, visit WD40.com/EZ.
UT Austin and Google Test Driverless Cars in Austin, TX
While Google has begun testing driverless cars in Austin, Texas, the University of Texas Center for Transportation Research has begun planning for the day when driverless vehicles are the norm, News Radio 1200 WOAI reports. Driverless vehicle technology can solve our congestion problem, said Center Research Director Dr. Chandra Baht. “Driverless and connected vehicles have the congestion to reduce traffic congestion by increasing capacity,” he told News Radio 1200 WOAI. “Imaging dozens of vehicles going at 70 to 75 miles an hour as a platoon, driving only a few feet apart.” Baht added that the more cars on the road are autonomous, the safer the roads will be. “About 90 percent of accidents, or even higher than that, are caused by human judgment errors,” he told News Radio 1200 WOAI. “If you take out the human from that equation, the safety could increase substantially.” There is talk that once autonomous vehicles are perfected, it will be illegal for humans to drive cars, because vehicles that are driverless and can talk to one another will be far safer than the highways we have today, reported News Radio 1200 WOAI.
GM Invests $1.4 Billion for Arlington Plant Upgrades
In its largest single plant investment in the U.S. this year, General Motors announced $1.4 billion for a range of improvements to its Arlington Assembly Plant to more competitively produce high-quality full-size SUVs. The investment allows the plant to be reconfigured with a new paint shop, body shop and general assembly area upgrades. Construction is expected to begin this summer and take approximately three years to complete. Production schedules for Chevrolet Tahoes and Suburbans, GMC Yukons and Yukon XLs and Cadillac Escalades will be unaffected by the construction. “This super-sized investment reflects GM’s commitment to our fullsize SUV customers who expect nothing but the absolute best from us and their vehicles,” said Cathy Clegg, GM North America Manufacturing and Labor Relations Vice President. “Today’s investment will contribute to Arlington Assembly’s winning tradition marked by strong customer focus, innovative thinking and teamwork.” Since 2011, GM has invested nearly $2 billion in manufacturing improvements at Arlington Assembly including this announcement, the launch of the current full-size SUVs and a new stamping plant. “I have seen first-hand the suc-
cess that is possible for a city when GM supports the communities where they work and live,” said Arlington Mayor Jeff Williams. “The city of Arlington has benefited tremendously from the strong business and foundational support from GM. This new investment in Arlington solidifies its continued stewardship and commitment to our community.” This has been a monumental year for the more than 60-year-old assembly plant. Arlington Assembly celebrated its 10 millionth vehicle build, hosted GM’s Board of Directors and provided $100,000 in GM Foundation grants to local community organizations. Meanwhile, the UAW-GM team continues to work regular overtime in the only GM plant to make award-winning full-size SUVs for Chevrolet, GMC and Cadillac customers globally. “By working together, the UAW and GM are making a difference in communities across the United States,” said UAW Vice President Cindy Estrada, who leads the union’s GM Department. The announcement is part of the $5.4 billion GM announced it would invest in U.S. manufacturing over the next three years. Approximately $4.5 billion of the $5.4 billion has been identified, leaving about $900 million to be announced by year-end.
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 49
Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Body Shops Nationwide are Joining the Blog Party with Ed Attanasio
One of the items on my marketing toare long gone. Blogs are an ideal way do list for 2015 (January 2015 ABN) to enhance your Search Engine Optiwas entitled Get a Blog and I can’t take mization (SEO) efforts because Google credit for it, but there are more body indexes blog articles and will move with Ed Attanasio shop blogs out there now than ever in the collision industry. Four years ago, there were 156 million blogs in existence and today there are more than 180 million with world- Ed Attanasio wide. Shops that didn’t even have web sites now have them complete with blogs that contain weekly posts, sometimes more. Blogs are no longer a fad or even a trend—no, they’re here to stay and gaining traction more and more as they your company’s name up their rankstampede into the World Wide Web. ings by regularly sending its search spiA decade ago, people didn’t really ders through your blog. And with more take blogs seriously. They thought a players now in the SEO game, blogs blog was for amateur poets, soccer are all about getting companies to that moms or quilting clubs, but those days desirable first page of Google.
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It’s inexpensive to create a blog (using Word Press, for example) and linking it to your web site. In a busy shop, there are a lot of things going on to blog about, including employee birthdays, holiday events (such as a company costume contest for Halloween); new babies, I-CAR certifications, community mixers and so much more. Once you start searching out topics for blog articles, you’ll see that there is a wealth of great things for you to write about. With blogs now the norm rather than the exception, it’s hard to believe that many body shop owners still don’t know exactly what they are, so here is a rather brief description. A blog (a truncation of the expression weblog) is a discussion or informational site published on
Media and Publicity for Shops
the World Wide Web and consisting of discrete entries (“posts”) typically displayed in reverse chronological order. Until 2009, blogs were usually the work of a single individual or occasionally of a small group, and often covered a single subject. More recently “multi-author blogs” (MABs) have developed, with posts written by large numbers of authors and professionally edited. The rise of Twitter and other “microblogging” systems helps integrate MABs and single-author blogs into societal newstreams. Rich Pannazzo is the Chief Operating Officer at AutoBody-Review.com in Chino Hills, CA, a company that was created to increase capture ratios and instill confidence in consumers when referred to a body shop by DRP partners, dealers and previous customers. They help their shops find local shops nearby, tour their facilities and schedule an appointment quickly and easily using AutoBody-Review.com. In addi-
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tion, the company also assists body shop clients with marketing efforts— including blogs. “The collision industry is changing on multiple levels,” Pannazzo said. “Not only is their rampant consolidation happening at an unprecedented rate, there is also a significant change in the demographics of the typical collision repair customer. Crossgeneration communication skills are CEO Rich Pannazzo essential to any marat www.AutoBody keting initiative in -Review.com cites blogs as an our industry. Blogeffective way ging, for instance, for body shops to has become an efget their brand in fective way of getfront of consumers ting your brand in as well as helping their Search Engine front of consumers Optimization efforts as well as helping your Search Engine Optimization efforts. In order to be effective however, your Blog must be relevant, routinely updated and well-scripted.” “Collision repairers are not, by nature, good marketing professionals,” Pannazzo said. “And even a vast majority of marketing professionals are
not good collision repair marketers. Collision repair customers are unique because 95% of a shop’s business comes from insurance, dealer and customer referrals. Marketing to get 2% of the 5% that are left just isn’t a logical course of action, nor is it economically efficient. Companies such as AutoBody-Review.com have figured this out. Everything done to promote the brands represented by AutoBody-Review.com is specifically targeted at increasing the capture rate of the referral business being sent to those locations. Even down to the unique blogs posted for their thousands of customers each month. No two blogs are identical and each blog is tailored to the specific body shop that it is being written for.” Eric Gouldsberry is a Silicon Valley-based media consultant and owns EGAD, a company that designs web sites and adjoining blogs for body shops and large automotive companies that end up at the top of search results on a consistent basis. He has seen the incredible growth of the blog universe and the recent popularity of blogs among body shops large and small. “The Hummingbird algorithm went into effect during the summer of 2013 when Google announced the
change on the eve of the company’s 15th anniversary,” Gouldsberry explained. “It was their first major update to their search algorithm since 2010. At that time, people didn’t realize that it would lead to the explosion of blogs. Hummingbird is all about content and what they call ‘semantic search.’ Google now focuses more attention to each word in a query, ensuring that the whole query—the entire sentence or conversation or meaning—is taken into account rather than just a handful of keywords or word streams.” So, why are so many body shops finally coming to the blog party? “Body shops talk a lot to each other and they’re always looking at the shop down the street,” Gouldsberry said. “Look at all of the body shops that are gearing up to work on aluminum vehicles, for example? The shops that started doing blogs three to four years ago are in a prime position, because they’ve already established a top position. It won’t be easy to unseat those shops, but it’s never too late to improve your spot by blogging. If you’re thinking about a blog, I would tell you start today, because right now the stragglers are getting ready to enter the fray!”
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4th Annual Aftermarket Telematics Challenge
The Auto Care Association (ACA) and the Equipment and Tool Institute (ETI) announced that applications are now being accepted for the 2015 Aftermarket Telematics Challenge. Now in its fourth year, the challenge seeks to recognize the best examples of aftermarket technology in telematics. This is the first year the challenge is being co-sponsored by ETI. “The Auto Care Association established the Telematics Challenge in 2012 to demonstrate that the auto care industry can provide the technology and solutions today for vehicle telematics,” said Kathleen Schmatz, president and CEO, ACA. “We see the telematics initiative as a very big task for ETI members and the aftermarket as a whole in the coming years and there will be many challenges and opportunities along the way,” said Greg Potter, executive manager, ETI. Applications can be found at: www.autocare.org. They must be received by Friday, Oct. 2. The winner will be announced at AAPEX and the winning entry will have a $10,000 scholarship awarded in their name to the Aftermarket Foundation.
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Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Farmer’s COD Program, CARSTAR’s Growth, Estimates 10 Years Ago, Texas Rate Survey with John Yoswick
and an abundance of late model vehi20 years ago in the collision repair cles with young drivers. industry (September 1995) Also at the Collision Industry Confer– As reported in The Golden with Chasidy Rae Sisk ences in Kansas City in September, Eagle, September 2000. CARSTAR Bob Matejzel of Farmers Insurance subsequently abandoned its growthsaid that although one of the company’s by-acquisition plans and sold many of regional offices has asked Chicago area its corporate-owned stores back to shops for price concessions in order to franchisees. It currently has about 440 participate in Farmers’ “Circle of Defranchises in 32 states and 10 Canawith Chasidy Raedian Sisk pendability” (COD) program, he did provinces. not foresee that happening elsewhere. “I do not see this as a wave of the 10 years ago in the collision repair future, at least I hope it is not,” he said. industry (September 2005) “Our program was instituted with no The information providers faced critconcessions. It’s still that way.” icism at the Collision Industry Con– As reported in ABRN. Matejzel, ference (CIC) for their proposed Chasidy Raesolutions Sisk and timelines for addressing who was among with the principle designers of the COD program, retired from the issue of shops having to rekey inFarmers Insurance just 15 months after surer-prepared estimates. making this statement and after 32 The CIC Electronic Commerce years with the insurer. The COD proCommittee outlined two types of scegram has changed significantly since narios in which shops should be able to that time. with Chasidy Raereceive Sisk insurer-prepared estimates electronically. In the first, the insurer’s estimate is prepared at the shop, so the file 15 years ago in the collision repair could be transferred to the shop’s estiindustry (September 2000) The consolidators have been seemingly mating system via a thumb-drive, the very open about their goals and business USB drive or even a CD or floppy disk. with Rae Sisk strategies – and about whatChasidy they look for The second scenario that leads to in the shops they acquire. CARSTAR, estimate rekeying is when the shop and for example, has announced an ambiappraiser are not at the same location tious 5-year growth plan for the Kansas- and cannot physically move the estimate based company. While most of its more file from one computer to the other. The than 250 shops are franchises, the comcommittee believes this is a more company plans to addwith 200 company-owned situation leading to rekeying than Chasidy Raemon Sisk locations over the next five years. is the “face-to-face” scenario. What will CARSTAR be looking In terms of the ability to copy an for as it acquires shops? Kam Nassar, estimate file to an external drive or the company’s chief financial officer disk or otherwise transfer it from one outlined a set of characteristics that computer to another within the shop, are fairly consistent with those de- Chad Taylor of Mitchell International with Chasidy Rae Sisk scribed by other shop consolidators. said his company offers such capabilCARSTAR, he said, will look to ac- ity now, and Bruce Yungkans of CCC quire shops that have: Information Services said Pathways - At least $1.5 million in annual 4.3, released in mid-October, would as revenues – preferably $2 million. well; Yungkans said CCC’s system - About 10,000 to 13,000 square would require a one-time set-up fee of with Chasidyca-Raeabout Sisk$150. feet of space, with the production pacity (or room to expand) to handle But Scott Jenkins of ADP drew in excess of $2 million a year in sales. fire from some CIC participants when - A computerized shop managesaid his company has no plans to crement system, and good accounting pracate such capability, preferring to put tices. “development effort” into addresswith Chasidy RaeitsSisk - A well-trained staff, and excel- ing the other type of scenario that relent relationships with customers and quires estimate rekeying. insurers. “What kind of ‘development’ does it - A visible, high-traffic location take?” Craig Griffin of Laney’s Colliin areas with high household incomes sion Center in El Dorado, Ark., asked
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with Ed Attanasio
Jenkins, pointing out that virtually all software allows a user to copy a file to a disk to transfer to another computer. “My assumption is since every other software in the world allows me to do this, that it’s more likely more difficult for you to keep me from doing that than it is to let me do it, other than you can’t charge me for it.” But Jenkins said ADP sees the ability to download an estimate from an insurer’s library as the solution that would address the majority of the estimate rekeying situations and has pledged to make this possible by next April. He said ADP currently has such a system in place for a shop in an insurer’s direct repair program; that capability, he said, will be expanded to shops not in a particular insurer’s DRP once the insurer gives a oneIn 2005, Craig time permission Griffin of Laney’s for the shop to do Collision Center in so. El Dorado, Ark., – As reported in questioned why Autobody News. shops couldn’t use an external drive or It would be several disk to transfer an years after this disestimate on an cussion before all insurer’s laptop to three information a shop’s computer. providers offered Griffin is still involved in his complete solutions family’s 2-location to estimate rekeycollision repair ing. ADP eventubusiness. ally sold off its estimating system business, which later became AudaExplore.
5 years ago in the collision repair industry (September 2010) The Texas Department of Insurance has received written responses from the state’s top five auto insurers to four pages of questions the Department asked about labor rate determination, shop referrals to consumers, DRP agreements, reimbursement caps or thresholds and other claims practices by the insurers. The insurers were asked, for example, how many DRP shops they have in Texas (State Farm = 636, Allstate = 388, Progressive = 277, GEICO = 56, Farmers = 285), and what percentage of their claims in 2009 went through DRP
facilities (State Farm = 50%, GEICO = 35.2%, Farmers = 32%, Allstate = 23.7% of 1st-party claims and 12% of 3rd-party claims; Progressive said it was providing this information to the Department in a supplemental response). The insurers were asked, “Does your company set caps or limits on the reimbursement rates for certain labor, services, parts and/or materials, e.g., paint?” State Farm and Farmers said they do not. Allstate said thresholds and pricing guidelines are negotiated individually with its DRP shops; for non-DRP shops, the company said, thresholds may be used and “additional costs are negotiated with the shop to arrive at an agreed repair cost.” Progressive said it has a “local payment authority” for its claims reps on paint materials, but said it is not a “cap” and “does not represent the maximum we’ll pay on a per vehicle basis.” The amount is sufficient for most estimates, Progressive said, but if the requested amount exceeds it, the claims rep should ask for supporting documentation and also may reference Mitchell’s paint and materials calculator “to confirm or negotiate any differing amounts.” GEICO, too, said it has no caps, only an authorization level on materials “to alert the adjuster to reviews any repair facility charges that appear abnormal in order to determine the appropriateness of such charges.” The Texas survey of insurers was prompted by a petition circulated by a handful of Texas shops asking the Insurance Department to request claims processing procedures and information from the insurers. Larry Cernosek, owner of Deer Park Paint & Body in Pasadena, Texas, presented the petition to the Insurance Department, and helped review drafts of the survey questions. All five of the insurers prefaced their responses to the Department of Insurance by saying the information and documents should not be disseminated beyond the Department. But Cernosek filed an Open Records Act request with the Department to receive copies of the responses. – As reported in CRASH Network (www.CrashNetwork.com), September 27, 2010.
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Automotive Writer Speculates About Why the AL vs Steel Repair Cost Debate Won’t Be Resolved Soon
“Here’s why we won’t really be able to answer the question of aluminum vs. steel repair costs for a long time,” writes Richard Truett for Crain.com. ● There are too many different kinds of vehicle accidents. The F-150 is going to have to be crashed thousands of times in every conceivable way before we’ll really know about the true cost of repairs. In all likelihood, some repairs will be less and some will be more. ● There are too many insurance companies with different levels of coverage. One body shop operator recently told me many insurance companies don’t distinguish between steel and aluminum repairs. He said it takes longer to repair aluminum and often the owner of the vehicle has to pay the difference between the repair cost and the insurance payout. ● Body shops charge different labor rates. ● The investment needed in tools and facilities to repair aluminum is substantial, more than $100,000 in many cases as body shops have to buy the tools, train the technicians and build a separate area to fix the aluminum-bodied trucks. So, some body shops may be charging a premium to
fix the truck and pay off their investment. “To Ford’s credit,’ says Truett, “the company has made repairs as easy as possible by creating hundreds of small repair panels that can be stitched in to the F-150’s body. And these parts are shipped with the repair instructions. That saves time. “But in many cases, repairing an aluminum panel is more complex than fixing a similar steel panel. The 2015 truck’s body is held together with rivets and adhesive, which usually takes more time to repair than a steel part. Here’s the bottom line: If it turns out there is a significant difference in repair costs for the new truck, Ford will likely do whatever it takes to keep the F-150 competitive. The stakes are simply too high in the highly profitable, hyper-competitive U.S. truck market. We don’t really don’t have enough information to definitively say the new F-150 is more or less expensive to fix.” For the full article go to: http:// w w w. a u t o n e w s . c o m / a r t i c l e / 20150731/BLOG06/150739949/itstoo-early-to-settle-aluminum-vs.steel-repair-cost-debate
More Stringent Auto Recalls in 2015 are ‘New Normal’
U.S. automakers and other vehicle manufacturers overseen by the National Highway Traffic Safety Administration already have recalled more than 32.4 million vehicles in nearly 500 campaigns through early August, according to a Detroit News analysis of government data and automaker reports, says David Shepardson, writing for the paper’s Washington Bureau. That’s still fewer than the 63.95 million vehicles recalled in 2014 in 803 campaigns. But it’s already topped the previous record of 30.8 million vehicles recalled in all of 2004. Several automakers are on pace for a record-setting number of recalls. And the total number of campaigns this year could come close to last year. Accounting for nearly one-third of all U.S. vehicle recalls this year is Fiat Chrysler. It has called back a companyrecord 10.2 million vehicles this year in 24 recall campaigns in the United States, including 77,000 new 2015 Chrysler 200s for an electrical problem that could cause stalling. About 4 million of the automaker’s callbacks are for Takata air bag inflators. The NHTSA has demanded recalls in several instances. In documents released Friday, Volkswagen AG disclosed the agency had demanded the recall of 420,000 cars and SUVs in the
U.S. for electrical problems that can prevent air bags from inflating; VW had determined it wasn’t a safety issue. Automakers are facing electronic issues they haven’t seen before. Fiat Chrysler recalled 1.4 million vehicles because of concerns they can be hacked and controlled wirelessly. This year’s higher-than-normal recalls also have been boosted by air bag manufacturer Takata Corp.’s decision to declare more than 32 million vehicles defective in the U.S. See related article this issue. More than 14 million of those already had been recalled by automakers last year. New NHTSA Chief Mark Rosekind caught the industry’s attention when he suggested in January that automakers could recall more vehicles in 2015 than in 2014. Sean Kane, president of Safety Research and Strategies, an auto safety advocacy group, said NHTSA’s aggressive posture is prompting carmakers to move faster. “There is a new normal,” Kane said. “Manufacturers are becoming much more diligent about fixing things that they would have been able to get away with doing customer satisfaction or dealer bulletins that NHTSA would have accepted in past. Today, no one’s even going to cut these corners.”
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Car-O-Liner and AudaExplore Hold Seminar on Trends in Fixed Operations by Victoria Antonelli, Online Editor
The presentation, held at NACE, began with an industry flashback to 40 plus years ago. Pulling and heat, mild steel, paper estimates, and a non-existent internet were just a few of the hang ups older generations can remember dealing with on a daily basis. Now, more than ever, time drives efficiency on the shop floor. Every new collision repair system is designed with decreasing cycle time as the top priority.
Car-O-Liner/AudaExplore PowerPoint
To ensure that other tasks don’t slip to the wayside while technicians are rushing to clear and refill the bays, Dave Scribner, Car-O-Liner techni-
ified entry-level technicians, while also showing changes concerning business operations and the collision repair technician workforce.” Tools that can aid in accomplishing the above goals include: ● Increasing the profit margin ● Driving CSI improvement ● Driving industry leading KPI’s ● Creating uniform and positive customer experience ● Expanding related add-on services
According to the business statistics side of the previously mentioned
survey, in the last six years “the industry has experienced a market size reduction of 3,047 shops (7%) to a current count of 40,488 shops.”
● Upper and lower measurements ● “Before” and “after” validation
The reps from Car-O-Liner then discussed how math data provides for a more complete damage analysis, and how insurance “robotics” can lead to a faster repair decision. Henderson then covered latest industry trends: Luxury Specs on High-End Vehicles: ● Computer-driven efficiency ● Collision avoidance tech ● Focus on infotainment ● Increased complexity
● Semi-autonomous safety
Due to the high percentage of accidents caused by human error (90 percent), the driver assist technology trend is becoming the most prominent. According to Henderson, OEMs are planning on reducing accidents by 80 percent through the implementation of these programs. AudaExplore data shows that by 2020, 80 percent of vehicles will be cognitive automated, bringing manual assistance down to 20 percent. As recently as 2014, these statistics were reversed.
Car-O-Liner/AudaExplore PowerPoint
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cal director, Dan Trahey, manager of technical training at Car-O-Liner, and Gordon Henderson, vice president of collision repair services at AudaExplore, have some suggestions for body show owners: ● Increase insurance count ● Invest in employees ● Invest in training ● Attract, grow & retain the best technicians
Surveys conducted by the Collision Repair Education Foundation and I-CAR every three years “confirmed the need for a continual supply of qual-
New Jersey Other significant points of change according to the Car-O-Liner and AudaExplore presentation include: ● Digital measuring & validation ● Body tolerances decreasing ● Much less pulling, more replacement ● HSS, aluminum, carbon fiber evolution ● Bonding and riveting ● Measuring, universal anchoring and “fixturing” required on more vehicles ● Increasing OEM certification programs ● OEMs driving more repair procedures ● Stand alone 3D measurement ● “Triage” estimates
56 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
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So, what can be done to stay ahead of the game, or even just keep up with it? According to the PowerPoint presentation, use predictive analytics to: ● Leverage thousands of data points ● Provide guidance and support ● Increase operational consistency ● Every dollar that flows to the bottom line starts with the estimate
Improve the customer’s experience by: ● Provide automated, electronic updates on the status of repairs on their terms ● Increase kept informed and net promoter scores ● Reduce waste in phone-tag Lastly, Scribner, Trahey and Henderson encourage shop owners to: ● Embrace change in order to thrive ● Invest in people, training, equipment certifications ● Change how we engage with consumers ● Mindset of operating a growing business ● Leverage software and technology statistics were reversed. So, what can be done to stay ahead of the game, or even just keep up with it? According to the PowerPoint presentation, use predictive analytics to: ● Leverage thousands of data points ● Provide guidance and support
● Increase operational consistency ● Every dollar that flows to the bottom line starts with the estimate
Improve the customer’s experience by: ● Provide automated, electronic updates on the status of repairs on their terms ● Increase kept informed and net promoter scores ● Reduce waste in phone-tag
Lastly, Scribner, Trahey and Henderson encourage shop owners to: ● Embrace change in order to thrive ● Invest in people, training, equipment certifications ● Change how we engage with consumers ● Mindset of operating a growing busiwww.autobodynews.com ness CHECK OUT! ● Leverage softwareITand technology
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CREF Fundraiser Co-Hosted by PPG Raises Over $100,000
CCC Mobile Technology Enhancements for Shops
The 14th annual Collision Repair CCC Information Services Inc. (CCC) Education Foundation (CREF) inannounced on July 22 enhancements to dustry fundraiser, co-hosted by PPG its consumer solutions, helping repair Automotive Refinish, raised a record facilities provide a more streamlined $100,000+ through the support of experience to customers throughout the attendees and sponsors. Sponsors repair process. and participants enjoyed a day of CCC ONE® UpdatePlus will now golf at Northville Hills Golf Club in offer text messaging that includes perNorthville, Michigan on July 22nd, tinent shop and estimate information. and the funds raised from this event CCC ONE® Repair Workflow will will go toward supporting scholarnow include digital signature capabilships and grants for collision schools ities, allowing customers to authorize and students. repair work at the vehicle using the “Thank you to the event sponCCC ONE® Touch application on a sors,Give golfers, volunteers, and to PPG mobile device. us your opinion on matters affecting the industry. Automotive Refinish for making this “Consumers expect hassle free inevent an incredible day of fun and teractions with the companies they do fundraising for high school and colbusiness with,” said Mark Fincher, lege collision students,” noted CREF VP, Market Solutions, CCC Informapublisher@autobodynews.com Director of Development Brandon tion Services Inc. “We’ve looked at our Eckenrode. solutions to see how we could change The CREF is already starting to them in order to create high-impact, plan for the 2016 event, which will low-touch interactions that don’t rebe the organizations 25th anniverquire a phone call or sitting in a lobby sary year, and the date and location waiting for paperwork. We’re excited should be announced in the coming to introduce enhancements to CCC months. Individuals and companies ONE UpdatePlus and ONE ReToCCC advertise source for timely interestedThe in getting involved with pair Workflow to enable a better cuscall Joe Momber at: next year’s fundraiser should information thatconevery tomer experience, while helping our tact Brandon Eckenrode at 847-463repair facility customers be more effi800-699-8251 body shop needs! 5244 or Brandon.Eckenrode@edcient.” foundation.org. Calljmomber@autobodynews.c 877-208-6155e-mail: for more info.
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www.koeppelmazda.com www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 57
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58 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 59
Getting Paid for Investing in Facility, Equipment and Training by Stacey Phillips, Assistant Editor
Collision repair shops learned what it takes to keep up with the increasing rate of technological innovation and implementation, during a recent talk by Tim Ronak, Senior Services Consultant from AkzoNobel Coatings. Ronak spoke to attendees during NACE about “Getting Paid for Investing in Facility, Equipment and Training.” The following is based on his presentation. Ronak said the technological face of the automotive industry is evolving exponentially. Some of the factors involved in these changes include onboard safety systems and controls; telematics and web-connected vehicles; accident avoidance; autonomous driving capability; hybrid power systems; and CAFE requirements. Now, more than at any other time in the past, higher specialized environments, equipment and training is required, according to Ronak. “In order to be capable of repairing and servicing this new auto technology, businesses are required to invest capital in people and tooling to stay current and capable,” he said. However, many businesses are realizing a shorter period of return on their investment (ROI).
Current and Past Collision Industry Labor Profitability Trends Ronak explained how gross profit, in terms of the True Cost of Labor (TCL), has been declining over the years. In just the last two years alone, there are more facilities recording less than 50 percent TCL. Ronak said that a decreasing TCL can be attributed to four factors:
1) Wage and benefit unit costs rising faster than lagging labor reimbursement rates This includes the impact of higher costs to retain a decreasing number of skilled trainable workers. Ronak defined a “unit” as a measurement of time that it takes an average skilled technician with an average set of tools in an average equipped facility to complete a specified operation.
2) Absence of a retail door rate in market areas Ronak pointed to the fact that there is currently no prevailing rate survey process in place. In addition, there is often a perception that customers should pay the same or less than insurers. 3) Credit Card Effect Ronak said the increasing use of credit
cards for payment is eroding the realized labor gross profit as shops are taking cards for the payment of jobs and deductibles. “Shops have not adjusted to the retail pricing model to deflect this increasing erosion of marginal profitability,” he said. For example, to cover the credit card fee with a seven percent sales tax, you need an additional $3.26 to $6.66 over the original $60 door unit rate to cover the lost revenue. In this case, the adjusted retail door unit rate would need to be at least 5.4 percent to 11.1
myth,” he said. “People invest for the singular incentive of a return!” Ronak explained that ROI essentially compares the magnitude and timing of investment gains directly with the magnitude and timing of costs. “A high ROI means that gains compare favorably with costs,” he said. “The goal is not to simply break even. The reason to invest is to generate a return.” Costs include such things as interest expenses/finance charges, property taxes, and the opportunity cost of alternative investments.
The definition of “Customer Value” is: “ANYTHING the customer is willing to pay for,” —According to Tim Ronak, AkzoNobel.
percent higher to just preserve the previous profit margin. Ronak said the retail differential may need to increase by 15 percent if a component is built in to shield against fees paid when a deductible is paid with a credit card.
4) Vehicle Technology Advancing at Frantic Pace With vehicle construction and technology changing yearly, repair methodologies become outdated quickly. Vehicles require specialized training and no longer can one skill fit all vehicles. In addition, there is more of a requirement for precision with technology such as accident avoidance and on board safety systems. Ronak said OEM certification is now required to restore some of this technology. “It is now more important than ever to ensure that a facility restore a 4.5 star crash-rated vehicle back to the same 4.5 star crash rating,” he said.
How Much to Invest in Facility, Equipment & Training Ronak said it can be very difficult to determine how much to spend on facility, equipment and training since each business has its own needs. Ultimately, facilities will make a choice depending on what services they offer to customers such as aluminum repair, OEM certification, and servicing hybrid technology.
How to Determine ROI and What is a Reasonable Return Investing in a business requires a return greater than what is available in alternative secure investments. Ronak recommended that an analysis be done prior to making an investment to determine what it will actually cost the business. “The idea that capital investment is ‘just a cost of doing business,’ is a
60 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
He advised that investors have a minimum target return they are willing to accept, which should typically be higher than a more secure alternative investment.
Payback Time Period to Expect for an Incremental Investment Since each investor will have his/her own rationale for determining the expected payback period, Ronak recommended performing a more complete ROI analysis that factors in all costs as they occur against the desired rate of return. Some of the considerations include time frame, residual value, technology, setup costs and finance charges.
Equating Capital Expense for Training, Facility and Equipment into a Reimbursable Charge Ronak said that the actual capital needed for the investment needs to be quantified first. Then the acceptable return for that investment of capital should be defined. He stressed the importance of then determining how to capture revenue related to an expense and how to apportion the expense to the revenue it generates.
Training: Ronak said that training is becoming an annual requirement for individual OEM certification and some of it can be very expensive and time consuming. “These costs need to be tracked and considered when determining the rate you choose to invoice for that skilled and capable labor resource,” he explained. Since the average tech will generate about 3,000 units of billable labor per year, an annual training expense of just $6,000 (including tuition, testing, wages, travel, meals, accommodation and certification fees), it results in a
training surcharge of $2/unit billed. If that labor is specialized to a particular OEM and requires an annual renewal, it could be a recurring charge. Ronak asked attendees to also consider that perhaps only 50 percent of the time the tech is actively engaged in work that requires that certification, the required reimbursement could double to $4/unit billed to recapture the investment in training. Facility: Additional facility expenses may imply that a shop is increasing its capacity or reconfiguring use of a facility or portion of that facility. “A reasonable expectation would be to determine break even and return sales targets,” said Ronak.
Equipment: Businesses equipping to service or repair new technology may not necessarily increase efficiency, according to Ronak. “In some instances specialized tooling may quickly become obsolete as new devices are deployed.” This implies that the $12,000 self piercing rivet tool that may be used five times before a new replacement version is required should be critically considered. He said it might be better to rent these pieces of equipment and charge them on each job … much like a frame fixture/jig. When calculating equipment expenses, Ronak said to determine the total equipment investment, determine the required return on that investment and then calculate incremental sales targets that provide sufficient returns. If additional volume is not forthcoming, he said to consider a higher door unit rate for work and then develop a plan to achieve sales targets. Ronak then addressed the final question: “Are these expenses just the cost of doing business?” He said the definition of “Customer Value” is: “ANYTHING the customer is willing to pay for.” “It is not a large inductive leap to infer that a customer would be willing to pay to ensure the 5 star crash worthiness of the vehicle would be restored back to a 5 star through the repair process by properly equipped and trained resources,” said Ronak. “When investment costs are incurred for the singular purpose of creating customer value they should be passed on as a cost to the customer in one way or another,” said Ronak. “The challenge is to clearly ‘know your cost’ before you justify and ultimately ‘establish your price.’”
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 61
Texas Law Enforcement Vehicles Hard Hit by Takata Airbag Recall Say TV News Reports Given that more than 30 million vehicles are affected by the massive air bag recall, a few local vehicles may not seem noteworthy, but for a Sheriff’s department the recall is taking a toll. Included in the 30 million are 2005 to 2010 Dodge Chargers in use by many law enforcement departments across the United States. Texas law enforcement vehicles have not been spared the recall, according to TV reports by Dallas’ NBC5. Ten Ellis County Sheriff’s Department vehicles are not currently being used after Sheriff Johnny Brown ordered them out of service when he learned they fall under the massive nationwide recall of defective Takata airbags that when deployed can rupture internally with too much force and send metal fragments flying into the cabin of the vehicle. “We made the decision at the time to park all our 2010 units,” said Lt. James Saulter. “We don’t want a deputy getting hurt or somebody that’s been arrested getting hit with flying fragments, as well as we have folks that ride out with us, and we didn’t want anybody getting hurt.” Saulter said the department was
notified the parts to take care of the recall were not available. “It’s a huge impact,” Saulter said. “But we definitely want our citizens to know it’s not going to impact us being able to answer calls or take care of them.” NBC 5 reached out to Fiat Chrysler Automobiles and was told the parts are now en route to Ellis County and service for those units is imminent. “Customer safety is a top priority at FCA US LLC. Accordingly, we are executing this recall campaign in the most expeditious manner possible, keeping NHTSA fully apprised of our progress,” said a statement from the company. With safety concerns looming, some departments immediately started repairs when the parts were available, including both Irving and Dallas police departments. In Dallas, about 530 of the departments Dodge Chargers fall under the recall, according to Equipment Building Services representative Charitta Johnson. However, Dallas Police did not remove any of the recalled vehicles from service. Johnson tells NBC 5 the recall did not instruct
that the vehicles should not be used. In Irving, 46 of the police department’s more than 250 vehicles are affected by the recall. The department has already repaired 10 of those units and is continuing repairs on others. “It really hasn’t affected us too bad. Some of these are unmarked, they might be in use by our detectives or not in use every day,” said Irving Police Department spokesman James McLellan. “Only a portion of those are marked cars, and those are being called in as they have the parts and paperwork for them, so it really doesn’t have an impact on our operations.” Chrysler Fiat Automotive also pointed out there are two airbag inflators that are subject to recall, Alpha and Beta. All deaths have been associated with the Alpha inflators. FCA vehicles have never been equipped with Alpha inflators, according to the company. The company is aware of an issue with a Beta inflator in a 2006 Dodge Charger, which resulted in non-life threatening injuries, according to FCA. Fiat Chrysler told NBC 5 they are not using Takata parts to replace the potentially defective inflators.
Nissan Donates $1M and 10 Autos to Habitat for Humanity
Ten years after its first donation to Habitat for Humanity, Nissan has announced a $1 million grant to help build affordable, sustainable homes and to support Habitat’s disaster response efforts. Nissan’s contributions to Habitat for Humanity in North America amount to more than $13 million over the past 10 years. “Having a permanent home allows a family to realize stability and a sense of community,” said Nissan Senior Vice President Scott Becker. “Nissan employees engage directly with those families by making personal commitments of their time and effort in Habitat home builds. This partnership is a tangible example of how we carry out our corporate vision to build a sustainable future for all Nissan stakeholders.” A portion of Nissan’s contribution will be used to double Habitat’s Mobile Response Unit fleet to 10 units, boosting its capacity to quickly support U.S. affiliates and their long-term recovery efforts following natural disasters. “The generous donation from Nissan and the volunteers who continue to work alongside those in need of decent housing makes such a difference in the lives of families and communities,” said Jonathan Reckford, CEO of Habitat for Humanity International.
See these Hyundai dealers below for all your collision parts needs! MARYLAND
MASSACHUSETTS
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Fitzgerald Lakeforest Hyundai
Route 2 Hyundai
Atlantic Hyundai
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Mon-Fri 8am - 5pm Sat 8am - 4pm
Mon-Fri 7:30am - 6pm Sat 8am - 4pm
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Gary Rome Hyundai
Maxon Hyundai
ROC HESTER 2525 W. He nrietta Rd
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U NI ON 2 32 9 R o ut e 2 2 We st
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Herb Chambers Hyundai AU BU RN 1 07 A nd o ve r St
800-767-1898 508-832-6026 Fax Mon-Fri 7am - 6pm Sat 8am - 3pm pobrien@herbchambers.com www.herbchambershyundai.com 62 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
Vision Hyundai
585-292-9724 Fax www.visionhyundai.com
Shrewsbury Volkswagen Shrewsbury
800-662-3140 Fax: 732-576-1894 M-F 8am-5pm
aammiano@shrewsburyvw.com www.shrewsburyvw.com
NEW YORK Koeppel Volkswagen Woodside
718-728-8111 Fax: 718-278-0319
www.koeppelvw.com
PENNSYLVANIA
MARYLAND King Volkswagen Gaithersburg
240-403-2300
Ourisman VW of Rockville Rockville
855-417-4511
Fax: 240-403-2398 M-F 7am-6pm Sat 8am-4pm
Fax: 240-499-2488 M-F 8am-5:30pm Sat 8am-5pm rockvilleparts@ourismanautomotive.com www.rockvillevolkswagen.com
Ourisman VW of Laurel Laurel
MASSACHUSETTS
dprunner@vwking.com www.vwking.com
301-498-6050 Fax: 301-498-0157 M-F 7:30am-7pm Sat 7am-4pm
ron.malitz@ourismanautomotive.com
Volkswagen of North Attleboro North Attleboro
508-695-7131 Fax: 508-695-0321 M-F 8am-5pm Sat 8am-2pm
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Thompson Volkswagen Warrington
215-343-4810 Fax: 215-343-5352
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 63
Continued from Cover
Letter from Charles
collision industry’s number one biggest problem. All other problems seem minimal when compared to the labor rate issue. For years, people across the country have tried to address and resolve the artificially suppressed labor rate issue in every possible way, but to no avail. No matter what was been tried, nothing has worked. As the result of the extreme effort being directed at addressing and resolving the artificially suppressed labor rate issue, finally a system has been created that has the potential to actually solve this chronic issue. I am speaking of the Variable Rate System (VRS), which contains among many of its important elements in its technology, the VRS Real-Time Labor Rate Survey. This is where the VRS solution begins!
A System Surfaces to Solve the Labor Rate Problem The VRS Real-Time Labor Rate Survey is a survey system that will continuously measure labor rates in New Jersey or anywhere else, in real time, and determine the range of market rates based on a shop's location, training, certifications and actual cost of doing business. The VRS Survey presents the opportunity the collision industry has have been waiting for. With the VRS Real-Time Labor Rate Survey, all collision repairers in New Jersey or anywhere in the country can make their voices heard and help restore the free market to labor rate prices in their industry.
AASP/NJ Sponsors the Variable Rate Survey The AASP/NJ saw this opportunity and has now sponsored the VRS RealTime Labor Rate Survey to make it possible for New Jersey Collision shops to address and solve the artificially suppressed labor rate issue here in New Jersey. All the shops have to
do is participate and filling out the survey is FREE. The VRS Survey is designed to allow shops to enter two sets of labor and material rates, (1) their door or posted rates, and (2) the rates they would charge if insurers did not adversely influence their rates. The more shops that participate, the more accurate, representative, and statistically valid, the market rate ranges calculated by the VRS become.
Shops Must Participate for the System to Work There are two levels of participation. One is to subscribe to the Variable Rate System and pay a monthly fee to be able to go in and do virtually countless searches in a market based on the shop’s location and the shop’s training, certifications, and equipment. Included in the monthly fee, subscribers will receive a calculation of labor rates based on their actual cost of doing business. That’s right! As the result of the AASP/NJ Sponsoring the VRS Real-Time Labor Rate Survey, shops now have a valid method of determining a fair and reasonable labor rate range for their services and finally actually supply documentation to support the rates charged, all of this included in the monthly subscription fee. The other level of participation is to simply go in and enter the shops’ rates in VRS Real-Time Labor Rate Survey without actually subscribing to the system. This is FREE! The shop can then view the state and regional market rate ranges without incurring any cost at all.
Wake-Up Call to the Collision Industry This is an opportunity for the collision industry to address and solve the number one problem of the industry: the Artificially Suppressed Labor Rates. Opportunity is defined as a set of circumstances that makes it possible to do something. Some say that opportunity only knocks once. I am not sure that is correct, but I am sure that an opportunity as great as this opportunity
does not come every day and this is the first opportunity that has a realistic chance of addressing and solving the problem of Artificially Suppressed Labor Rates. That is why the AASP/NJ decided to sponsor the Variable Rate Survey. The Insurance Industry has worked hard for years to artificially suppress the labor rates through steering and playing hard ball with shops and have been able to keep the rates artificially suppressed for as long as I can remember. No matter how the collision industry tried to solve the problem nothing has worked. As a result, the collision industry has a tendency to ignore any new efforts to solve this problem because so many attempts have failed. I am calling on the collision industry to WAKE UP and don’t write off this opportunity.
If You Sit on Your Hands After This, Shame on You The AASP/NJ has made it possible for collision shops in New Jersey to go into the Variable Rare Survey and enter their labor rates and then download labor rate survey results for free that can be used to support the shops’ arguments for higher rates when an insurer attempts to limit the labor rate to what we all know to be an artificially suppressed labor rate. Once again, this is an opportunity that has the potential to solve the biggest problem in the industry and then keep it from happening again because the survey is live. That means that the shop can go back in and update its prices when the cost of business goes up and the results show up in the survey immediately. It is only too often that collision shop owners claim they are too busy to get involved or too busy to participate in things like this. It is those same shops that call the AASP/NJ Hotline and complain that the Association is not doing anything for them. Well, to be quite frank, that line is getting old. It only takes a few minutes to fill out the VRS Real-Time Labor Rate Survey and it is the efforts
of the AASP/NJ that have made it available to the collision industry in the state of New Jersey so if you are a shop that is still not willing to take advantage of this great opportunity then all I can say is, SHAME ON YOU!
Stop What You Are Doing and Fill out the Variable Rate Survey NOW! I just don’t get it when certain shop owners whine and complain about a situation and when a solution is presented they choose to ignore it or are not willing to put in a little effort to contribute to the resolution of theproblem. It takes the wind out of anyone’s sail when this happens. So, once again, I am calling on every member of the collision industry in New Jersey, AASP/NJ Member or not, go on the National AutoBody Research website, and fill out the VRS Real-Time Labor Rate Survey. If the members of the collision industry will unite on this issue, I will be willing to bet that we can put an end to the long overdue issue of artificially suppressed labor rates.
How to Fill out the VRS Real-Time Labor Rate Survey To fill out the Variable Rate Survey, go to https://www.surveymonkey.com /s/AASP-NJ-VRS-Gunder-Survey If you would like to discuss anything in this message, please feel free to give me a call directly on the AASP/NJ Hotline at 732-922-8909. If you have questions or need assistance with completing the survey, please feel free to contact the creators of the Variable Rate Survey: Richard or Sam Valenzuela at 520-971-6110. I would like to thank you all in advance. I know this plea will result in those that haven’t yet filled out the VRS Real-Time Labor Rate Survey doing it right away. Please don’t let me down. Thank you, Charles Bryant AASP/NJ Executive Director
AkzoNobel Launches U-Base for U-TECH Basecoat System for Commercial Builder and Refinish Markets
AkzoNobel’s Vehicle Refinishes business released a new U-TECH basecoat system U-Base, designed for the commercial builder and refinish markets. It is a two-component polyurethane basecoat system and replaces the Polybase and Polybase Plus systems. The U-Base basecoat system introduces four components: U-Base Binder,
R300 Reducer Fast, R300 Reducer Slow and Metallic Wet Blend additive. These components work with the existing UTECH toners to create an all-in-one system for basecoat and single stage applications. U-Base utilizes a simple mix ratio of 3:1:1 and offers a ready-to-spray low VOC HAPs-compliant solution with less than 3.5 lbs/gal, making it a univer-
64 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
sal fit for all refinish regulated markets. “For the painter, the system lives up to the U-TECH brand promise of Better process, better results,” said Kari Greason, commercial vehicle segment manager for AkzoNobel’s Vehicle Refinishes business in North America. “It is extremely easy to use. With the scale and size of jobs in this segment, most
painters believe that the better and more easily paint ‘wets up’ during application, the better the end result. This one product characteristic opens the door to multiple benefits including better flow and levelling, better hiding, faster coverage, faster dry time, less paint used, lower cost and ultimately a higher gloss level when the job is finished.”
Precise fit and finish, easy installation and a limited warranty direct from KIA — all genuine advantages of genuine KIA parts. Your local KIA retailer has all the parts you need.
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PartsTrader and State Farm Credited with Increased Chrome Bumper Sales for LKQ Since State Farm implemented PartsTrader as its electronic parts ordering partner, its use of aftermarket parts appears to be changing based, in particular, on increased chrome bumper sales. Last summer State Farm released a document titled “Replacement Parts Promises” which suggested new aftermarket and recycled parts policies. Now, more details have been revealed of State Farm impacting the growth of aftermarket chrome bumpers from quarterly financial statements by LKQ. LKQ CEO Rob Wagman told analysts during LKQ’s most recent July 30 quarterly conference call that chrome bumper sales were up nearly 16.9% and attributed it to the nation’s No. 1 auto insurer. In previous conference calls Wagman has cited State Farm purchasing aftermarket chrome bumpers as a factor in increased sales, as recorded in the Seeking Alpha website’s transcripts of the calls. State Farm has been out of general aftermarket purchasing since October of 1999, when the company “temporarily” suspended the use of aftermarket crash parts. At the time Edward B. Rust, chairman and chief executive officer State Farm Mutual Automobile Insurance Company, said, “We don’t want
our policyholders caught in the middle of the lawsuit-driven confusion and misinformation about the quality of the aftermarket parts we specify. To prevent that from happening, we’ve decided that the best course for now is to begin specifying only crash parts made by auto manufacturers.” In a consumer document released July 2014 called “Replacement Parts Promises” on the State Farm website, the company says: “We're committed to your satisfaction regarding new nonoriginal equipment manufacturer (nonOEM) and recycled parts used in the repair of your vehicle. Below please find additional information regarding the State Farm promise of satisfaction.” A link to a PDF entitled All States but Indiana is viewable at https://www .statefarm.com/claims/resources/auto/ replacement-parts-promises. The linked document states in part that “State Farm® keeps the promise of “Good Neighbor” service every day as we pay individual claims. Our promise includes a commitment to your satisfaction regarding new non-original equipment manufacturer (non-OEM) and recycled parts used in the repair of your vehicle. “When a damage estimate is prepared, it may include competitively
priced, readily available new nonOEM parts, recycled parts or new parts provided by the manufacturer of your vehicle.” Wagman told investors on April 29, 2014, that the insurer’s return to aftermarket parts with certified chrome bumpers came “in close conjunction” with its partnership with PartsTrader. On Oct. 30, 2014, LKQ CEO Rob Wagman cited “again really good growth on chrome bumpers” for the third quarter, with the company up 22.4 percent likely partly because of State Farm interest. He also told investors that GEICO had just become the No. 2 auto insurer, and “they’re very active users of our products.” On Feb. 28, 2015, Wagman reported a 22.3 gain in fourth-quarter 2014 chrome bumper sales and told analysts LKQ was “cautiously optimistic” State Farm would use more aftermarket parts. Despite the big 2014 first quarter of chrome bumper sales, purchases of the parts were still up 19.5 percent, Wagman said April 30. “We continue to really raise the number on the products they (State Farm) are writing in the aftermarket, in the bumpers,” Wagman said. “Looking at these particular part types, year-over-year sales of after-
market chrome bumpers were up 30 percent in January, 29 percent in February and 33 percent in March. While some of this increase may be weatherrelated, we believe that some of the increase is related to State Farm’s new policy regarding aftermarket certified chrome bumpers. We continue to have open dialogue with State Farm, and we hope that they will continue to expand their use of our aftermarket product offerings.” Wagman later said in the call that LKQ wasn’t involved in the decision. “They came upon this on themselves, and they did it in conjunction with the rollout of PartsTrader,” Wagman said, according to the transcript. “And as PartsTrader has gone across the country, obviously, we’ve seen more and more sales. Our reps that are on PartsTrader reviewing those estimates know about those 2 part types and are pushing them hard.”
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Enterprise Releases Second Quarter Rental Data
The national average length of replacement rental (LOR) rose slightly in the second quarter of 2015 to 11 days overall, reversing a downturn seen in the first quarter’s data. Compared with the second quarter of 2014, the LOR increased 0.3 days and was up 0.5 days over the 5-year average. The quarterly data, gathered by Enterprise’s Auto-
mated Rental Management System® (ARMS), tracks the length of time replacement vehicles are rented to collision center customers and is considered a proxy for vehicle repair time. Though an increase in accidents due to weather may have played a role in the second quarter LOR increase,
there were likely other contributing influences, according to Frank LaViola, assistant vice president of collision industry relations for Enterprise. “While some regions, such as the Midwest, experienced wetter than normal weather conditions, others were below normal and still increased in LOR,” said LaViola. “We need to look at other factors that may be driving longer cycle time. Those could include technician shortages and training, the complexity of newer vehicles being repaired and other issues, such as parts delays.” The Northeast region led the nation with the highest LOR at 12.3 days. The lowest LOR, 9.4 days, occurred in the Northwest region. The Mountain Region saw the largest increase in LOR, 1.2 days, due in part to the recent hail catastrophes in Colorado. The ARMS digital management platform enables repair centers to book rental reservations and send vehicle status updates to insurance partners and customers. In addition, repair centers can track, measure and forecast labor needs, and generate monthly reports through ARMS. To learn more about the ARMS Automotive Suite, visit www.armsauto suite.com.
U.S. on Pace for Deadliest Driving Year Since 2007, Says National Safety Council
The National Safety Council estimates traffic deaths are 14 percent higher through the first six months of 2015 than they were during the same period in 2014, and serious injuries are 30 percent higher. From January to June, nearly 19,000 people died in traffic crashes across the U.S., and more than 2.2 million were seriously injured, putting the country on pace for its deadliest driving year since 2007. Costs are also up. The six-month estimated bill for traffic deaths, injuries and property damage is $152 billion—24 percent higher than 2014. “Follow the numbers: the trend we are seeing on our roadways is like a flashing red light—danger lies ahead,” said Deborah A.P. Hersman, president and CEO of the National Safety Council. “Be a defensive driver and make safe decisions behind the wheel. Your life really depends on it.” While the high death and injury toll could be due to many factors, an improving economy with lower gas prices and unemployment rates herald increases in vehicle miles traveled. Average gas prices are 30 percent
lower than they were in 2014 and are projected to remain relatively stable heading into 2016. This generally means an increase in traffic; more people can afford to drive, and many travel longer distances and take vacations. To help ensure safety, the Council recommends drivers: ● Make sure every passenger buckles up on every trip ● Designate an alcohol and drugfree driver or arrange alternate transportation ● Get plenty of sleep and take regular breaks to avoid fatigue ● Never use a cell phone behind the wheel, even hands-free ● Stay engaged in teens’ driving habits. Teens are three times as likely to crash as more experienced drivers. Learn about your vehicle’s safety systems and how to use them. My Car Does What can help drivers understand the ins and outs of features such as adaptive cruise control, blind spot warning systems and backup cameras.
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e-mail: www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 67 shartman@autobodynews.com
I-CAR® Launches New ‘Production Management’ Role to Increase Shop Efficiencies, Enhance Lean Processes and Improve KPIs I-CAR®, the Inter-Industry Conference on Auto Collision Repair, launched its new Production Management curriculum that provides end-to-end instruction designed to drive bottom-line improvements in productivity and profitability throughout the collision-repair process. Available now, Production Management is a part of I-CAR’s Professional Development Program™ (PDP), filling an important curriculum placeholder that was planned when the PDP was launched in 2010. The new role and curriculum, which goes beyond technical training, was developed using direct industry input, collaborating with production managers, shop owners and experts from the collision repair industry. It provides insight into critical issues and multiple areas of the shop floor, while enhancing critical-thinking and problem-solving skills, enabling participants to quickly address complex problems shop personnel face in collision-repair production. “The broad-based process focus designed into this new Production Management Role allows shops to empower all of their resources, finetune their KPI’s and realize maximum ROI on shop-wide training invest-
ment,” said John Van Alstyne, CEO and President of I-CAR. “This industry has a strong, immediate need for production management training,” said Josh McFarlin, I-CAR Director of Curriculum & Product Development. “By working directly with shop owners and experts across the shop floor, we were able to build a unique curriculum that accurately reflects critical areas and challenges the industry faces.” A core component of the Production Management curriculum is the Learning Culture Overview, the first course of the sequential series. Understanding and embracing a culture of learning and knowledge-sharing as a long-term strategy is key to enhancing and maximizing a facility’s success rate in KPIs. Courses available now are part of the ProLevel® 1 pathway for the role within I-CAR’s industry-recognized PDP. Additional courses are under development for subsequent ProLevels as students progress through the curriculum. This role introduces the idea of pre-requisites to the PDP, as each course in the Production Management role must be taken sequentially, thereby minimizing course-to-course
Auto Theft and Vandalism Rise With the Temperature
Theft and vandalism is the leading cause of non-collision auto claims in the summer, according to the latest Seasonal Smarts Digest from Farmers Insurance. Among Farmers Insurance customers during the two-year period of 2013 and 2014, almost 30 percent of national claims filed in July, August or
September were related to vandalism, mischief and partial or total theft. California saw the most third-quarter theft and vandalism-related claims; nearly 40 percent of its claims came from vandalism, mischief and partial theft, and another 40 percent were due to total theft. Texas, Oregon, Washington, and Arizona also saw higher rates of theft and vandalism claims. “Warm weather means more people are out and about—and that includes thieves and vandals,” said Paul
Quinn, head of claims customer experience at Farmers®. “Whether you’re leaving your car at a trailhead or a tourist attraction or just parking it in your home’s driveway, you should always make sure it’s not an easy target for criminals.” Quinn said drivers should consider putting the following tips into practice to decrease the chances that thieves will target their vehicles: ● Park as close as you can to your destination, in a well-lit area, and make note of where you parked. ● Thieves are most likely to target engines, air bags, radios, GPS units and portable handheld devices, according to the NHTSA. If the navigation device is mounted to the window, remove the mount and wipe off the ring left by the suction cup. ● Thieves commonly go after the third-row seat from an SUV. If a car has a removable third row, consider removing it and leaving it in the garage if you know you won’t be using it. The complete Farmers Seasonal Smarts Digest can be found online at http://www.farmers.com/ news/seasonal-smarts/.
68 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com
redundancy and maximizing learning effectiveness.
Production Management Role courses include:
● Learning Culture Overview (PM101E01) ● Before the Repair Starts (PM105E01) ● Matching the Repair to the Team (PM110V01) ● Workflow Essentials (PM115E01) ● Synchronizing Workflow through Team Communication (PM120L01) ● Problem Solving for Workflow Changes (PM125V01) ● Quality Is Your Business (PM130E01) ● Optimizing Processes, Equipment and Compliance (PM135E01) ● Developing the Team and the Business (PM140V01) ● Refining the Team and the Businesses (PM145L01)
Students can review detailed information, register for classes and track their training progress for the Production Management curriculum online on www.I-CAR.com. To watch a video about I-CAR’s Production Management Role, visit: w w w. y o u t u b e . c o m / w a t c h ? v = DauZjmikqWA.
Vehicle Safety Inspections Highlight ASA’s Forum
The Automotive Service Association (ASA) hosted the first Service Repair Leadership Forum (SRLF) during NACE | CARS in July. The program included a segment on periodic motor vehicle inspections. Panelists addressed the challenges facing safety inspection programs across the United States, in addition to the benefits of strong programs in states such as Pennsylvania and Missouri. Speakers included: ● Bill Hanvey, Automotive Aftermarket Suppliers Association ● Joe Battista, Parsons Corporation ● Tom Gebbie, Automotive Service Association, Pennsylvania The SRLF vehicle safety segment serves as a run-up to ASA’s second safety inspection and maintenance forum this fall. The forum will bring together shop owners, industry leaders and policymakers to discuss the importance of periodic motor vehicle inspection programs as well as strategies to protect these programs. The forum will be held in St. Louis, MO, December 2. The ASA is the largest not-forprofit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. For info, visit www.ASAshop .org or call (817) 514-2900.
Mopar Helps Dealers with New Service Capacity Tool Mopar is introducing a new “crystal ball” to assist FCA US dealerships in preparing for and predicting the best strategies for enhancing the customer experience, both now and in the future. The Mopar Service Capacity Analyzer is a powerful new online tool that helps dealers to assess, plan and implement changes to the number of technicians, technician hours, stalls and much more to better service customers. “Providing a great customer experience is at the core of what we do,” said Pietro Gorlier, President and CEO, Mopar Brand Service, Parts and Customer Care, FCA. “That is why this year alone we have supported the addition of more than 1,300 technicians, 700 service advisors and 500 service bays in our dealer network, which overall is well ahead of our targets. Now, the new Mopar Service Capacity Analyzer offers dealerships a ‘road map’ to more efficiently utilize these resources by forecasting customer needs out to 2018 based on dealer-specific parameters.” The algorithm-based Mopar Service Capacity Analyzer allows dealers to adjust physical capacity metrics such as number of techni-
cians/service advisors, technician available hours and stall numbers, to match projected service lane traffic. The dealer can create scenarios and evaluate the changes needed to reach the optimum level of service. Dealerships can also examine operational efficiency and identify opportunities for improving existing processes and eliminating waste or inefficiencies. A summary page allows quick comparison of how hypothetical plans stack up to current capacity statistics. Mopar also offers tools to help dealerships implement service capacity changes. The brand is launching a new Service Capacity Guidebook as part of the Service Capacity Analyzer to assist dealers in seizing existing opportunities while avoiding the pitfalls of a crowded service lane. The Mopar Career Automotive Program (CAP) works in partnership with automotive tech schools to provide dealerships with a pipeline for recruiting trained and skilled technicians. “The customer journey is about Mopar partnering with our dealers to ensure that we have the tools, the people and the plan to continue to serve those who drive us,” said Gorlier.
MASSACHUSETTS
Long Automotive Group Framingham (800) 982-2298 (508) 879-1212 Fax
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Colonial Subaru Feasterville (888) 736-7799 (215) 355-1759 Fax
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Fitzgerald Subaru of Gaithersburg Gaithersburg (301) 670-4881 (301) 670-1595 Fax
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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 69
Continued from Page 40
Manslaughter Charge
He said it is important for each to follow the standards established for all stations. “Most inspection mechanics perform a thorough examination of a vehicle to certify it meets safety equipment standards. There are a small number of licensed inspection mechanics who affix an inspection sticker to a vehicle without giving the level of scrutiny necessary to assure the vehicle is safe to operate on the highway,” Button said. “Unfortunately, operating a vehicle with defective equipment can lead to tragedy,” he said.
We would like to thank Burlington Free Press for reprint permission.
I-CAR® Adds Nick Notte to Leadership Team
I-CAR®, the Inter-Industry Conference on Auto Collision Repair, announced that Nick Notte has joined I-CAR as Director, Finance and Operations. As a member of the leadership team reporting to John Van Alstyne, CEO & president, Notte will lead the Accounting and Finance, Data Services, Information Technology, Project Management and Lean Process Improvement teams. Notte will be based at I-CAR’s Training Support Center in Hoffman Estates, IL. “Not only does Nick bring deep background across the collision repair industry, he is also recognized for his contributions to our industry, and he brings solid operational and financial leadership experience to the role,” said Van Alstyne.” Before joining I-CAR, Notte was most recently with PDR International as COO.
Continued from Cover
AASP/NJ Warns Members
Vermont Department of Motor Vehicles, was using an out-of-date manual as reference. Jalbert has pleaded not guilty, but if convicted on all charges, he faces up to 16 years in prison. The impact of this decision is being felt all along the Northeast as a reality check. “This should be a wake up call to the collision industry,” Bryant said. “It’s one thing if you allowed a bad job to get out of your shop and were sued – there’s insurance to cover things like that – but to go to jail for doing a careless job is a whole different story. So many shops try to do the right thing but are told by insurers that they won’t properly reimburse them for what needs to be
done. They say things like they will only pay for used suspension, which, in my opinion, is the worst thing that could be done! Used suspension from a total loss should never be used; there could be internal damage that puts peoples’ lives in jeopardy. We have to stand up and say no in cases like that.” For more information on AASP/ NJ, visit www.aaspnj.org. For more information on the NORTHEAST® Automotive Services Show, visit www .aaspnjnortheast.com.
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