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Survey Finds Shop Sales Down, but Employment Steady, Optimism Improving by John Yoswick
An industry survey this summer not surprisingly found a significant decline in shop revenues this spring, but it also found shops were not continuing to lay off employees and were actually growing less concerned about weathering the storm. About 250 shops responding to a survey in June reported data on the number of full-time employees they had in June compared to pre-pandemic. Those shops combined said they had 3,718 full-time employees, an average of about 15 employees per
shop, in early March, but had dropped to 3,293 employees in June, a decline of about 11%, to an average of about 13 employees per shop. That was an improvement from earlier months, when surveys found employee counts were down as much as 18% in April and 15% in May. Additionally, nearly three in five shops in June had the same number of fulltime employees as they did pre-pandemic. “This is a family business, and the owner cares greatly for his staff and their families, and is committed See Survey Finds, Page 30
PPP Forgiveness: No Need to Rush, and Other Tips by Jeff Drew and Ken Tysiak, Journal of Accountancy
Although forgiveness for Paycheck Protection Program (PPP) loans is a foremost topic on the minds of borrowers and the CPAs who advise them, experts are saying borrowers should not rush to apply for forgiveness. Long-expected FAQs expected to clarify many PPP-related issues are still awaited from the U.S. Small Business Administration (SBA) and Treasury. In addition, the loan forgiveness application has not been updated to reflect the recent five-
week extension of the program’s deadline to Aug. 8. A big reason for these delays is that Congress is debating a new round of COVID-19 relief, which is expected to include a second PPP initiative more targeted than the first one, said Mark Peterson, the executive vice president who heads the AICPA’s advocacy team in Washington, D.C. Those discussions also may include major changes relaxing the forgiveness requirements for the smallest loans, possibly those up to $100,000 or $150,000. “The situation is very dynamSee PPP Forgiveness, Page 14
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AUTOBODYNEWS.COM Vol. 11 / Issue 6 / September 2020
Focus Advisors Releases Midyear Updates on Collision Repair Industry David Roberts, Focus Advisors’ managing director, sent an email Aug. 7 reviewing the advisory firm’s updates on the collision industry. “It’s August and we are more than halfway through a most extraordinary year,” Roberts said. “The Great Pause continues. What follows is our midyear update.” Operations Average shop revenues are down 25% to 30% across the country, though it varies by region and by the intensity of regional COVID cases. Most shops are slowly returning to
higher volumes. The best news—many operators have figured out how to maintain close to normal margins on dramatically reduced revenues. The recession of 2009 taught operators how to both survive and then improve operations while under financial duress. Lessons well-learned then are helping the best operators weather this even more extraordinary downturn. PPP loans have had a universally positive impact for those operators who were successful in their applications. The relaxation of repayment See Midyear Updates, Page 18
New CIC ‘Industry Relations’ Committee Seeks Progress by Expanding Beyond Shops, Insurers by John Huetter, Repairer Driven News
The CIC has replaced its Insurer-Repairer Committee with an Industry Relations Committee, seeking progress and greater understanding on issues that affect all other segments of the industry as well. The committee presented the virtual CIC on July 23 a slide showing all the potential stakeholders when a vehicle owner or lessee crashes a car. The list included not just the motorist, insurer and repairer, but also the OEM; dealership; sublet providers like glass, PDR and towing interests; suppliers; educators; regulators; information and tech providers like estimating systems, management systems and diagnostic providers; trade groups; and trade press. Co-Chairman Jim Keller, of 1Collision, said the panel now has “about 35 total” participants, and it seeks a “great cross-section” of representation. Core members today include representatives from four insurers,
five repairers—counting Keller’s 1Collision—Audi, SCRS, Fayetteville Technical Community College and I-CAR, Enterprise, CCC, 3M and Auto Techcelerators.
Collision Industry Conference Industry Relations Committee member Jonathan Chase, of National General, speaks to the July 23 virtual CIC. Credit: Screenshot from CIC video
Asked at one point about recyclers, Keller encouraged them to get in touch; he’d love to have some on the panel. Committee member Mark Algie, of 3M, challenged his other paint and materials colleagues to participate and noted that some supplier issues deserved attention. Co-Chairman Mark Allen, of Audi, said both he and former Insurer-Repairer Relations Committee Co-Chairman Clint Marlow, of See ‘Industry Relations’, Page 20
8/18/2020 7:12:54 PM
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2 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com ABN 5500 and RPS combo.indd 1
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CONTENTS REGIONAL
Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today!
Efficiency Training .........................................52
ACA Responds to NHTSA on MA Telematics
Analysis Shows PA Has 2nd-Most Coronavirus Restrictions Among U.S. States .....................28 Bill Would Make New Jersey Employers Pay Workman’s Comp if Employees Come Down With COVID-19 ....................................10 Connecticut Auto Glass Bill Doesn’t Make It Out of 2020 Session .....................................11 MA Auto Body Shop Owner Charged with Tax Fraud ......................................................26 McPherson College Matching Gift Challenge .......8 NABC Recycled Ride® Program Donates Refurbished Vehicle to NJ Recipient ..............16 New York Police Agencies to Ramp Up Speed Enforcement Efforts ......................................26 PA Car Enthusiasts Rally Together to Help School Children ............................................26 PA Gov. Announces $96 Million for Small Businesses Impacted by COVID-19 ...............24 PA Governor Compares Masks to Seat Belts, Urges 100% Compliance ................................6 Rallye Motors in NY Accused of Cheating Customers with False Repair Claims in Lawsuit .......................................................8 Slatington, PA, Clean-Up Efforts Needed Following Storm Damage ..............................16
AAPEX 2020 to Be Virtual Experience ................28 American Views 2020: Trust, Media and Democracy...............................................4 ARA Takes Summer Road Trip Virtual, Annual Convention to Follow Suit..............................62 Asbury Announces Record Q2 Results ...............60 CES 2021 Is All-Digital ......................................39 Dean Fisher Now I-CAR Board Member .............11 FCA, Waymo Expand Autonomous Driving Tech ...10 Focus Advisors Releases Midyear Updates on Collision Repair Industry.............................1 GM Not Happy with Facebook, Quits Ads on Platform ...................................................30 Hertz Settlement Calls for Disposal of 182,521 Vehicles ..........................................12 Honda is Asking Office Staff to Work on Assembly Line ..............................................63 Hurricane Isaias Insured Losses Estimated to Top $4.2B in U.S. and Caribbean ...................60 Mark Olson: Get it Right the First Time ..............50 MSO Symposium Going Virtual ............................6 New CIC ‘Industry Relations’ Committee Seeks Progress by Expanding Beyond Shops, Insurers ...............................................1 NICB: Thousands Left to Rebuild After Isaias .....63 Nikola Scores Landmark Order For 2,500
COLUMNISTS Anderson - More Best Practices to Make the Most of the ‘Parts’ Portion of Your Business ...............................................42 Attanasio - CCC Photo Estimates and AI-Supported Claims Spike in Response to COVID-19..................................56 Chess - An Overview of Corrosion Protection Products: Part 2 of 2 .....................................34 Ledoux - The Advent of the Computer Age ........48 Phillips - SCRS Open Board Meeting Highlights
www.autobodynews.com
NATIONAL
Battery-Electric Garbage Trucks ....................60 PPP Forgiveness: No Need to Rush, and Other Tips .......................................................1
INDEX OF ADVERTISERS
November Ballot Question .............................12
AUTOBODY
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray
Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com
Accudraft Paint Booths.................................... 64
Long Automotive Group .................................. 31
Acura of Westchester ...................................... 20
Malco ............................................................. 11
American Icon Automotive Finishes ................. 20
Matrix Automotive Finishes ............................... 5
Audi Wholesale Parts Dealers .......................... 57
Mazda Wholesale Parts Dealers ...................... 58
AutoNation Collision Parts ................................. 7
McGovern Chrysler-Jeep-Dodge-Ram ............. 30
Bical Auto Mall ................................................ 19
Mercedes-Benz of Atlantic City ....................... 25
BMW Wholesale Parts Dealers ...................46-47
Mercedes-Benz of Fort Washington ................. 25
Cadillac of Mahwah ........................................ 38
Mercedes-Benz of Paramus ............................ 51
Car-O-Liner..................................................... 27
Mercedes-Benz of West Chester ..................... 25
Central Avenue Chrysler-Jeep-Dodge-Ram ..... 13
Mercedes-Benz of Wilmington ........................ 40
Certified Automotive Parts Association .............. 8
Mercedes-Benz Wholesale Parts Dealers ........ 53
Cherry Hill Dodge-Chrysler-Jeep-Ram ............ 18
MINI Wholesale Parts Dealers.......................... 48
Classifieds ...................................................... 62
MOPAR Wholesale Parts Dealers ................36-37
Colonial Automotive Group .............................. 41
New Holland Ford ........................................... 28
Courtesy Mitsubishi ........................................ 52
New Holland Toyota .......................................... 8
Criswell Chrysler-Jeep-Dodge-Ram ................ 24
Nissan/Infiniti Wholesale Parts Dealers............ 56
DePaula Chevrolet-Ford .................................. 12
Northstar Kia................................................... 54
Eagle Abrasives, Inc ........................................ 15
Nucar ............................................................. 29
Empire Auto Parts ........................................... 26
Packer Norris Parts ......................................... 17
Equalizer Industries, Inc .................................. 34
Porsche Wholesale Parts Dealers .................... 50
Ford Wholesale Parts Dealers .......................... 55
PPG Refinish ..................................................... 9
SEMA Show Canceled .......................................40
GM Wholesale Parts Dealers ........................... 43
SATA Dan-Am Company .................................... 2
SEMA Survey: Industry Outlook and Sales
Haldon Company ............................................ 23
Schultz Ford.................................................... 45
Projections Continue to Improve....................31
Healey Brothers .............................................. 21
Security Dodge-Chrysler-Jeep-Ram ................ 22
Subaru Reports July Sales ................................25
Honda-Acura Wholesale Parts Dealers .......32-33
Spanesi Americas ........................................... 10
Survey Finds Shop Sales Down, but
Hyundai Wholesale Parts Dealers .................... 58
Steck Manufacturing Company ....................... 14
Employment Steady, Optimism
Infiniti of Norwood .......................................... 44
Subaru Wholesale Parts Dealers...................... 59
Improving .......................................................1
Innovative Tools & Technologies, Inc ................ 35
Toyota Wholesale Parts Dealers....................... 60
Tesla Invites Insurance Actuaries to Help It
Jaguar Land Rover Cherry Hill......................... 39
VIP Honda ....................................................... 16
Include Presentations About Pressing
Create a ‘Revolutionary’ Insurance
Jeff D’Ambrosio Chrysler-Jeep-Dodge .............. 6
Volkswagen of Newtown Square ..................... 14
Industry Topics..............................................44
Company ......................................................40
Kia Motors Wholesale Parts Dealers ................ 49
Volkswagen Wholesale Parts Dealers .............. 61
Kia of Attleboro ............................................... 52
White Plains Volkswagen .................................. 8
Kundert Volvo.................................................. 54
Yonkers Kia ..................................................... 42
Phillips - The Importance of Creating Lifelong Learners and Implementing Hands-on
Webinar Highlights the Importance of OEM Certification ..........................................63
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American Views 2020: Trust, Media and Democracy The following is an executive summary of Gallup and the Knight Foundation’s annual report on American views on trust, media and democracy. The full report can be downloaded here. https://knightfoundation. org/wp-content/uploads/2020/08/ American-Views-2020-Trust-Media-and-Democracy.pdf Americans still value the media’s traditional roles in society, such as providing accurate news and holding powerful interests accountable for their actions. The vast majority of Americans (84%) say that, in general, the news media is “critical” (49%) or “very important” (35%) to democracy. Americans are more likely today to say the media’s role in democracy is “critical,” up five percentage points since 2017. Large majorities say it is “critical” or “very important” for the news media to provide accurate and fair news reports (92%), ensure Americans are informed about public affairs (91%) and hold leaders accountable for their actions (85%). More Americans say the media is performing poorly rather than well in accomplishing these goals than did in 2017. However, Americans see increasing levels of bias in the news media; majorities see bias in the news source they rely on most. A majority of Americans currently see “a great deal” (49%) or “a fair amount” (37%) of political bias in news coverage. The percentage seeing a great deal of bias is up from 45% in 2017. Most Americans see bias in their go-to news source; 20% see “a great deal” and another 36% see “a fair amount” of bias in the news source they rely on most often. Given the choice, however, more Americans say they are concerned about bias in the news other people are getting (69%) than say they worry about their own news being biased (29%). Nearly three-quarters of Americans say they see too much bias in the reporting of news that is supposed to be objective as “a major problem” (73%), up from 65% in the 2017 study. Americans suspect inaccuracies in reporting are designed to push a specific agenda. Americans perceive inaccurate news to be intentional— either because the reporter is misrep-
resenting the facts (54%) or making them up entirely (28%). Nearly eight in 10 Americans (79%) say news organizations they distrust are trying to persuade people to adopt a certain viewpoint, while 12% say they are trying to report the news accurately and fairly but are unable to do so. Eight percent of Americans say distrusted media are trying to ruin the country, driven largely by the 1 in 5 Americans who identify as “very conservative” and 1
in 10 Republicans who feel this way. Differences in Americans’ opinions of the news media are most pronounced by political party affiliation. Almost three-fourths of Republicans (71%) have a “very” or “somewhat” unfavorable opinion of the news media, compared to 22% of Democrats and 52% of independents. Democrats and Republicans differ greatly in their ratings of the media on every aspect of performance, including providing objective news reports, holding political and business leaders accountable for their actions and helping Americans stay informed about current affairs. Sixty-nine percent of Americans, including 61% of Democrats, say the increasing number of news sources reporting from a particular point of view is “a major problem.” In contrast, 77% of Republicans say the same. While a majority of Americans across the political spectrum (80%) say the media is under attack politically, they are divided as to whether those attacks are merited. Whereas 70% of Democrats say the media is under attack and those attacks are not justified, 61% of Republicans say such attacks are justified. In addition to partisan differences in media attitudes, views also vary by age, with older Americans generally more favorable toward the news
media than younger Americans. Whereas 44% of Americans aged 65 and older have “very” or “somewhat” favorable views of the media, less than 1 in 5 Americans under age 30 (19%) say the same. Majorities of Americans say noews organizations should diversify their reporting staffs, but they differ—largely by politics—on the focus of diversity efforts. A strong majority of Americans (79%) say news organizations should hire to increase the diversity of their reporting staffs. However, while majorities say it is important for the news media to reflect the diversity of America, this ranks lowest of the priorities among the roles for media to play in society. The priorities cited by Americans who say news organizations should hire for more diversity differ greatly by race and political party. Democrats (49%) and Blacks (60%) prioritize racial/ethnic diversity in hiring, while Republicans (51%) and whites (35%) are most apt to prioritize diversity in political views. Americans commonly feel overwhelmed by the volume and speed of news, but say misinformation is media’s greatest problem. Those overwhelmed are most likely to turn to one or two trusted news sources as a solution. Four in five Americans (78%) say the spread of misinformation online is “a major problem,” exceeding all other challenges posed by the media environment. Seventy-three percent of Americans want to see major internet companies find ways to exclude false/hateful information online. More Americans say it is harder (62%) rather than easier (36%) to be well-informed because of all the sources of information available. In 2017, 58% said it was harder to be informed. Reasons Americans who say it is harder to stay informed cite for feeling overwhelmed include the mix of news interspersed with non-news on the web (72%), followed by the pace
or speed of news reporting (63%) and the increased number of organizations reporting the news (63%). More Americans (54%) say there are enough media sources to sort out the facts than say there is so much bias it’s difficult to sort out the facts (43%), an improvement from 2017 when the split was 50% to 47%, respectively. Republicans (65%) are much more likely than independents (48%) and Democrats (21%) to say there is too much bias to sort out the facts. In response to feeling overwhelmed, 41% of Americans say they only pay attention to one or two trusted sources; 31% try to consult a variety of sources to see where they agree; 17% go to the extreme of ceasing to pay attention to news altogether; and 8% rely on others to help them sort out what they need to know. Local news plays a key role in political and civic engagement. Thirty-one percent of Americans say they follow news about issues affecting their local community “very closely,” an increase from 25% in 2017. However, most Americans are not very confident in their knowledge relating to public affairs in their community. Americans who follow local news closely are more likely to vote in local elections and to feel attached to their communities. They are less likely to say that “people like me don’t have any say in what the government does.” Americans who primarily access their news online—predominantly, younger Americans—are less likely to be knowledgeable about their local communities and to feel attached to their communities. In a deeply divided nation, majorities of Americans say the media bears blame for political division. But they also see the potential for the media to heal the divide. Forty-eight percent of Americans say the media bears “a great deal” of blame for political division in this country, while 36% say they bear “a moderate amount.” But nearly identical percentages say the media could do “a great deal” (49%) or “a moderate amount” (35%) to heal those divisions. We thank the Knight Foundation for reprint permission.
4 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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PA Governor Compares Masks to Seat Belts, Urges 100% Compliance by Christen Smith, The Center Square
Pennsylvania Gov. Tom Wolf said Aug. 3 residents should follow his universal mask mandate the same way they obey stop signs and wear seat belts. “I’m calling upon every Pennsylvanian to do their part to help us get as close as we can to 100% compliance on masking,” he said. “We need the help of our business owners to get workers masking. We need the help of our local elected officials to emphasize the importance of masking on keeping the community safe.” And while Pennsylvania State Police (PSP) won’t arrest those who don’t comply, repercussions for entering businesses with a bare face—or operating an establishment without any regard to social distancing—can and do happen, Wolf said. “We have to do everything we can to keep our communities safe and healthy, including wearing a mask and following mitigation orders so our business operate safely,” he said. “We have the ability to
enforce these rules, and we are going to continue to work closely with commonwealth agencies and local officials to enforce public safety orders.”
PSP Lt. Col. Scott Price. “We are grateful to the majority of Pennsylvanians who have stepped up to follow mitigation requirements and for all the support our troopers and
“We have to do everything we can to keep our communities safe and healthy, including wearing a mask and following mitigation orders so our business operate safely,” — Tom Wolf Liquor control enforcement officers visited more than 1,200 bars and restaurants over the weekend to ensure operators were complying with pandemic restrictions that limit capacity to 25% and prohibit alcohol sales independent of food service. Three citations and 52 warnings were issued, PSP said. “As some of the most visible public servants in the commonwealth, the state police will continue working collaboratively with the Department of Health and local police departments to remain at the forefront of law enforcement pandemic response efforts,” said
liquor control enforcement officers have received during the past several months.” Wolf’s reminders come one week after restaurateurs said the policies limiting capacity and alcohol sales would crush the industry, shuttering 7,500 establishments permanently. Wolf has been supportive of federal legislation that would funnel $120 billion in relief to restaurants and bars nationwide, but has not yet backed $100 million state proposals to do the same. We thank The Center Square for reprint permission.
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MSO Symposium Going Virtual The Automotive Service Association (ASA) is pleased to announce the ninth annual MSO Symposium will still take place the week of Nov. 9. “We’re just going to do it virtually and at no cost for attendees,” said Ray Fisher, president and executive director for ASA. Fisher said ASA has been preparing for a virtual event since late May in case changes had to be made due to the COVID-19 pandemic. The virtual program will be open to the entire industry and allow attendees who may not normally attend to learn about the MSO market. MSO Symposium Week will begin Monday, Nov. 9, and conclude Friday, Nov. 13. The event will contain the same style sessions as in previous years but will be delivered in single-session installments five days in a row. Each daily session will be 60 to 90 minutes. There will be updates over the next few weeks and months. Source: ASA
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Rallye Motors in NY Accused of Cheating Customers with False Repair Claims in Lawsuit by Robert Pelaez, The Island Now
Rallye Motors, a luxury car dealership with locations throughout Long Island in New York, is facing a class-action lawsuit that accuses the company of charging customers for labor and repairs to vehicles that were not performed. The lawsuit was filed in State Supreme Court in Mineola on Aug. 10 on behalf of Salvatore Stile, an international shipping executive who resides on the North Shore. Stile said his 2015 Mercedes Benz S50 was repaired at Rallye Collision Center in Carle Place in 2016. According to Stile, the cost for repair was more than $20,000, which was largely paid by his insurer. The initial estimate of the repair of $20,808.15 included $14,260 for parts and $4,270 for labor, according to Stile. The final invoice, however, listed $4,142 for parts and charged $10,107 for labor, according to the suit. Ultimately, the suit states, Stile paid a $1,000 deductible and his insurance carrier paid the remaining $19,808.15.
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Stile told Newsday that the safety aspect of the alleged scam was quite troubling. “It was a pure profit play,” Stile said. “It was profit over safety. My family was driving in an unsafe car. They could have been in jeopardy.” Efforts to reach Stile for further comment were unavailing. Seventeen additional unnamed customers with claims of false advertising, breach of warranty and violating the state’s general business and motor vehicle laws are also included in the lawsuit. Established in 1958, Rallye is marketed as Long Island’s largest luxury car dealership and the fifth largest in the U.S. The suit names Rallye Motors LLC, Rallye Motors Holding LLC, Owner and CEO Juliana Terian and other related entities as defendants. Efforts to reach Rallye officials for comment were unavailing. The suit also claims Stile and other affected parties were financially harmed by the value of their cars subsequently declining and being charged with higher premiums
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and deductibles for insurance coverage. Attorney Jeffrey K. Brown of Leeds Brown Law PC, who filed the lawsuit, said in a news release potential damages could total hundreds of millions of dollars. Brown said he attempted to bring the alleged scheme to Rallye’s attention, but received no response. “Rallye violated that trust of countless consumers who came to its body shop to get their cars repaired,” Brown said. “I don’t believe these customers realized what was happening.” Brown also said his firm began investigating Rallye’s practices roughly one year ago after being alerted to them by a whistleblower. According to the news release, that whistleblower intends to file a separate whistleblower suit within 60 days. We thank The Island Now for reprint permission.
McPherson College in Kansas has announced a $1 million matching gift challenge from Florida philanthropist and automotive enthusiast Dano Davis. The gift will support business curriculum development, student experiences and scholarships for students enrolled in the only bachelor’s degree in historic automotive restoration in the country. Davis hopes his gift will motivate others to support McPherson College’s automotive restoration program. Any gift designated to the restoration program—for lab and classroom support, scholarships, the tool fund, endowment— will qualify for the match. In January of this year, Davis opened The Brumos Collection, in Jacksonville, FL, that focuses on the development of the automobile and the Brumos Porsche racing legacy. The museum is housed in a building created to resemble the Ford assembly plant that once operated in Jacksonville. Source: MacPherson College
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SPONSORED EDITORIAL
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Blending Ease Given that refinishing most often calls for blending, how efficient and easy a painter can perform a color-accurate blend and eliminate chances for re-dos is especially important.
To ensure color accuracy, the PPG basecoat’s latex particles
orient metallic flakes smoothly to accurately match the color travel from face to flop. A final control coat eliminates any blotchiness, mottling or halos that can occur with solvent basecoat.
In terms of throughput, the basecoat’s thin film build enables it
to dry fast. Only 2-3 minutes flash time is needed between coats, and Color Matching Efficiency
the clearcoat can be applied in 10 to 15 minutes. PPG’s EN-V® Series
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reduce the need for sprayouts. Comprised of thousands of variant and prime color chips, each chip is sprayed with actual waterborne paint. autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 9
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Bill Would Make New Jersey Employers Pay Workman’s Comp if Employees Come Down With COVID-19 by Kim Jarrett, The Center Square
The New Jersey Assembly Appropriations Committee on July 27 voted to release a bill that would require employers of essential employees to pay workman’s compensation costs if an employee contracts COVID-19 on the job. The vote was the first hurdle in the Assembly for the bill, which passed the Senate in May. The bill would be retroactive to March 9, the day Gov. Phil Murphy declared a state of emergency due to the COVID-19 pandemic. Several organizations spoke against the bill, saying it would put another burden on businesses that already are struggling. The estimated cumulative cost to businesses is at least $400 million and could reach the billions if a second outbreak occurs in the fall. New Jersey has money available through the federal Coronavirus Aid, Relief and Economic Security Act to help essential workers who are diagnosed with COVID-19, according to Ray Can-
tor, vice president of government affairs for the New Jersey Business and Industry Association. He recommended some amendments, including one that defines an essential employee. “Not every employee who was deemed essential in the governor’s executive orders actually had an elevated risk of contracting the virus,” Cantor said. “Those who had contact with people who had the virus or interacted with the public were at a greater risk of contracting COVID-19 than an employee who was in the back office and who had no such contacts.” Cantor and others said a clause was needed to limit the time frame to when the state’s “stay-at-home” orders were in place. “It is one thing to presume that an employee contracted the virus at work when their only movements are from home to work and back again,” Cantor said. “But it is illogical to apply the same presumption when that employee is going to the beach, to restaurants,
visiting friends and largely engaging people in a wide manner of ways outside of their employment.” The bill is “wholly unnecessary” because New Jersey gives workers who have contracted COVID-19 an additional 80 hours of leave, said Assemblyman Brian Bergen, R-Morris. “To add an additional burden on top of that is really unfair to businesses and it just goes above and beyond to make our state even more business unfriendly than we already are,” Bergen said before he voted “no.” Some Democrats who voted to release the bill said they had some reservations after hearing testimony July 27. “Maybe we can look at it a little further and make sure we include some of the reasons they were talking about the time frame,” said Assemblywoman Cleopatra Tucker, D-Essex. We thank The Center Square for reprint permission.
FCA, Waymo Expand Autonomous Driving Tech FCA and Waymo announced July 22 they have taken the next significant steps in the expansion of their successful autonomous driving technology partnership. Waymo will now work exclusively with FCA as its preferred partner for the development and testing of class 1-3 light commercial vehicles for goods movement for commercial delivery customers, including Waymo Via. The two companies will initially target integration of the Waymo Driver into the Ram ProMaster van, a highly configurable platform that will enable access to a broad range of global commercial customers. This partnership will allow FCA and Waymo to leverage their respective strengths and competencies to determine how to effectively use autonomy to address the specific needs of commercial customers given the rapid growth of goods delivery services. FCA became Waymo’s first OEM partner in 2016. Source: FCA
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Connecticut Auto Glass Bill Doesn’t Make It Out of 2020 Session by Emmariah Holcomb, glassBYTEs.com
The auto glass legislation introduced earlier this year has failed to make it out of Connecticut’s 2020 session. HB 5294 looked to “establish an auto glass temporary license to allow auto glass companies doing business in the state to perform auto glass work in the event of a state disaster or emergency.” Had it passed, the legislation would have allowed state auto glass companies to hire up to 15 unlicensed auto glass technicians on an emergency basis. The bill would have added the following to the state’s current auto glass law: “The Commissioner of Consumer Protection may, in the event of a state disaster or emergency, and upon payment of an $1,800 dollar licensing fee, grant an annual auto glass temporary license to an auto glass company that employs individuals who perform automotive glass work and does business in the state,” a portion of the bill read. Background In March, auto glass businesses and associations spoke, some in support of and some in opposition to the bill. According to the legislation’s text, the
temporary license “shall be utilized by an auto glass company that employs out-of-state employees who perform automotive glass work, and whose qualifications are substantially similar to, or higher than, those of this state.” This means, had HB 5294 passed, those who obtain an auto glass temporary license would have to provide a list on a form prescribed by the commissioner, stating each out-of-state employee the auto glass company may use to perform work in Connecticut in the event of a state disaster or emergency. Connecticut’s Automotive Glass Work and Flat Glass Examining Board (AGWFGEB) opposed the bill. “The AGWFGEB is against HB 5294 because it appears to put profit over Connecticut drivers’ safety,” the examining board said in a release regarding the bill. The Connecticut Glass Dealers Association (CGDA) also opposed and called for legislators to vote against it. Seth Maiman,, the Auto Glass Safety Council’s (AGSC) legislative and government affairs director, highlighted the association’s concerns with HB 5294. “The prospect of Connecticut allowing auto glass companies to use
unlicensed technicians who have not been vetted through the State’s normal procedures is of great concern to the AGSC, said Maiman in a previous statement. “The Safelite Group supported the bill. Our concern about safety rises exponentially when we consider how many cars now have Advanced Driver Assistance Systems (ADAS) that require complex recalibration during the replacement of auto glass. Connecticut has been a national leader in advancing safety with stringent training requirements and we hope that this legislation will be defeated.” “We find ourselves in a distinct and difficult position whenever there is a storm or severe weather event in this state. We cannot bring in other highly qualified technicians [who meet or exceed Connecticut’s licensure requirements] for a temporary period of time to help handle large backlogs of auto glass repair claims,” a portion of Safelite Group (Safelite) release reads. “The result is that Connecticut consumers are often waiting longer than necessary times to have service and have their claims addressed.” We thank glassBYTEs.com for reprint permission.
Dean Fisher Now I-CAR Board Member Driven Brands™, North America’s leading group of automotive aftermarket brands, proudly announces Dean Fisher, collision group president, has been elected as a board member for the Inter-Industry Conference on Auto Collision Repair (I-CAR.) “Dean has a wealth of industry knowledge as he has been a part of the collision repair industry his whole life,” said Michael Macaluso, paint, collision & glass group president and EVP, Driven Brands. “His perspective is always deeply valued within our organization and we know his dedication to helping the industry thrive will be a welcomed addition to this respected group of board members.” “The complexities added to the automobile will only continue, as consumer expectations evolve more rapidly than ever before,” Fisher said. Source: Driven Brands
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ACA Responds to NHTSA on MA Telematics November Ballot Question Representatives from the Auto Care Association (ACA) and its membership met July 24 with James Owens, deputy administrator, National Highway Traffic Safety Administration (NHTSA), to discuss the data access referendum that will be included as Question 1 on the ballot for Massachusetts voters this November. A vote in favor of Question 1 would give Massachusetts vehicle owners the ability to access their mechanical data and to provide authorization to share that data with their independent repair shops. The meeting focused on a July 20 letter the NHTSA sent to Massachusetts state legislators echoing the contention of the automakers that access to data by vehicle owners would create cyber security concerns. ACA President and CEO Bill Hanvey took issue with the agency releasing the letter without first approaching the association to address its concerns. “We would have preferred to have the opportunity to present information on how data can be safely
and securely transmitted between a vehicle and the owner before your letter was released,� said Hanvey. Hanvey further stated the NHTSA’s letter was being used by the vehicle manufacturers to unnecessarily scare Massachusetts voters from supporting Question 1. During the meeting with NHTSA, ACA representatives discussed the importance of data access to ensure car owners continue to have choices in where they have their vehicle repaired, ACA cyber security and diagnostic tool experts shared how data can be shared cyber-securely—pointing out that industry standards developed by vehicle engineers around the world are already in place that would permit owners to control access to their mechanical data. “These standards not only ensure mechanical data can be controlled by owners, but they provide significant protections for critical vehicle safety systems from improper intrusions,� said Hanvey. Owens thanked the association and its members for the detailed discussion of the cybersecurity issue
and declared the NHTSA supports right to repair and the need for owners’ access to data. Owens further offered to work with the association to develop a better understanding of the measures being proposed by ACA in order to permit the secure transmission of data. “We look forward to continuing discussions with the NHTSA on the need for competition in the vehicle repair industry and the Auto Care Association is confident that NHTSA will recognize the extensive work being done by expert engineers globally so that vehicle owners can control the mechanical data being transmitted by their vehicle,� said Hanvey. For more information about the Massachusetts Right to Repair referendum, please visit the ACA’s Right to Repair webpage https://www. autocare.org/government-affairs/ issues/massachusetts-right-to-repair/?utm_source=pressrelease or contact Aaron Lowe, senior vice president, government and regulatory affairs, ACA, at aaron.lowe@ autocare.org. Source: ACA
Hertz Global Holdings has reached an interim settlement with debtors to suspend litigation related to the car rental company’s plan to reduce its leased fleet of rental cars, according to an SEC filing on July 24. Under the terms of the agreement, Hertz agrees to pay $650 million of rent in equal monthly installments from July to December of this year and dispose of at least 182,521 leased vehicles between June 1 and Dec. 31. In return, litigation relating to the leases under the asset-backed finance facility (ABS) will be suspended. We thank Auto Rental News for reprint permission.
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PPP Forgiveness ic,” Peterson said July 23 during the AICPA’s weekly Town Hall covering PPP and other issues related to the COVID-19 recession and recovery efforts. Erik Asgeirsson, CEO of CPA.com, the technology and business subsidiary of the AICPA, said during the Town Hall the SBA and Treasury are not expected to release the expected 25 to 30 FAQs before President Donald Trump signs new relief legislation. Congress is trying to hammer out a package before going on recess Aug. 8. Even if the FAQs do come out, the SBA issued a procedural notice July 23 that indicated it would not begin accepting PPP forgiveness submissions from lenders until a new software-as-a-service platform currently under development goes live Aug. 10. The SBA said the launch could be delayed if new legislation changes the forgiveness process in ways that require changes to the new platform. The SBA’s notice adds another reason for waiting to work on PPP loan forgiveness applications to those covered in an AICPA blog post that published July 14, said Mark Koziel, CPA, CGMA, the AICPA’s executive vice president of public practice. “We have to be as patient as possible,” he said. The real PPP forgiveness deadline Kari Hipsak, CPA, CGMA, an association senior manager, said in an interview the important deadline in the PPP forgiveness process doesn’t come until 10 months after
the end of the loan’s covered period. At that point, if forgiveness forms have not been submitted, the funds officially become a loan that needs to be repaid. Hipsak said it’s best for borrowers to take their time and make sure they have as much information as possible so they can maximize loan forgiveness. “There’s no need to rush through the forgiveness,” she said. “A lot of businesses, I think, want to put the forgiveness behind them, but there are still a lot of unanswered questions. And so as long as there’s not a deadline to have this application submitted, other than 10 months after the end of the covered period, it’s really a business decision.” Some additional considerations related to PPP forgiveness include: Questions about utilities: Utilities are among the items besides payroll that borrowers can pay with PPP funds. But there are questions about what qualifies as a utility under the PPP guidance. “It includes the basics, such as trash collection, water, electricity, etc., but we get a lot of questions about business-specific utilities,”
Hipsak said. “And there is even some guidance that indicates that transportation costs such as fuel for a business vehicle is includible. But we don’t have all the answers for that yet.” Internet services, which have become even more vital in this time of social distancing, appear to qualify as utilities under the PPP, Hipsak said. Many exceptions to full-time-equivalent (FTE) rules: The PPP was designed to help organizations keep paying their employees as pandemic-related closures and slowdowns reduced revenue. As a result, employers who reduce their workforce generally see a reduction in their PPP forgiveness eligibility amount. But there are numerous exceptions for situations such as: An employee who was offered a chance to return to a position but refused. An employee who was fired for cause or voluntarily resigned. An employee who voluntarily requested and received a reduction in hours. There are additional exceptions as well to the FTE and wage rules,
and borrowers should be aware of them when they apply for forgiveness. Clarification needed for self-employed borrowers: PPP guidance states that self-employed individuals must compare their 2020 income with their 2019 income to determine their maximum eligible compensation. “If you’re a self-employed individual, how do you prove what you got paid in 2020?” Hipsak said. “That’s one big question that remains for self-employed individuals.” Documentation is critical. The forgiveness applications are extremely detailed, and the final rules are uncertain in some areas. Some documentation isn’t required for submission with the forgiveness application but is required to be retained by the borrower. So it’s important to keep documentation of any facts that could become an issue related to forgiveness. “It’s always easier to be prepared going into something than having to look in hindsight and collect all the necessary data,” Hipsak said. We thank the Journal of Accountancy for reprint permission.
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Slatington, PA, Clean-Up Efforts Needed Following Storm Damage by Dominic Barone, BRC TV 13 News
Hurricane Isasias wreaked havoc on Slatington, PA. Homes were damaged and some people had to be evacuated. Some buildings had a couple inches of water inside. News 13’s Dominic Barone joined us live from Slatington at a business that’s been without power for 24 hours. Crews are on scene at factory street installing a new utility pole which fell into Trout Creek yesterday—taking with it all the wiring and electrical meters from the side of Buzzy’s Autobody Shop. The workers here tell us all the damage happened so fast, and everything was very loud. “Just sounded like a bunch of fireworks, but 10 times worse. It was crazy, man. It like boom, boom, boom, boom, non-stop,” sad Kory Rabenold of Buzzy’s. Rabenold said not only were they were dealing with an insane amount of water, but no power. Their Dumpster ended up floating down the creek and the wiring on top of the pole sparked a blast before falling. “Sounded like an explosion
NABC Recycled Ride® Program Donates Refurbished Vehicle to NJ Recipient
happened,” Rabenold said. “Then all of a sudden the telephone pole fell down. And before you know it we lost power and it just kept on sparking and carrying on.” The 7th Street Village apartments on Scout House Road, also next to Trout Creek, took an incredible amount of damage. Fencing was completely ripped down, and all the residents from Building A had to be evacuated as the first floors took on a couple inches of water. Crews were in the homes drying it out and replacing wet drywall. Lydia Beltran says the water came through the back door in the blink of an eye. “The water is coming out. Like you close your eyes, you open, it’s coming faster,” Beltran said, “In 15 [minutes] or half an hour it’s a lot of water around.” The Slatington Fire Department was busy last night. They were dispatched 21 times. Fire Chief Jason Nicholas tells us their crews started at 9:30 in the morning, and didn’t finish until 1 a.m. the next day. We thank BRC 13 TV News for reprint permission.
On July 24, a deserving military member experienced a life-changing event—the presentation of a vehicle to provide them independence and the ability to work and take care of their family— thanks to the National Auto Body Council Recycled Rides® program along with car donors GEICO and CARSTAR of Trenton.
The presentation was held at the Joint Base Maguire Air Force/ Fort Dix in Burlington County, NJ.
www.autobodynews.com
The recipient was military member Tammy Dempsey, who received a Toyota. NABC Recycled Rides® is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides® program in 2007, members of the National Auto Body Council have donated more than 2,500 vehicles, valued at more than $36 million. Additional partners in the NABC Recycled Rides® presentation included 1-800 Charity Cars, Thompson Toyota Doylestown (PA), Trenton Auto Recycling, Bob Hopes Auto Repair, Vetech, Selmons Shell of Hamilton, Bills Towing of Hamilton, Traction Tire and Keystone LKQ. Source: NABC
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Continued from Cover
Midyear Updates terms has been a positive development. Most loans are expected to be largely forgiven. An interesting side note: anecdotally, most of the MSOs and shops that received PPP loans during the first application period obtained those loans from small and local banks and credit unions. Evidently the big banks focused on their largest customers. During the second application period, more loans were obtained from some of the big banks, but many MSOs not only didn’t get big bank loans, but some never even heard back after their inquiries. M&A Activity The current level of mergers and acquisition activity keeps surprising us. Not surprisingly, the top two national consolidators continue to make offers and acquire independent shops and MSOs. But private equity firms have really stepped up their interest and investments. Five super region-
al MSOs are also in acquisition mode. Add to these numbers several dozen sub-regional MSOs that are continuing to make acquisitions largely using internal capital sources. Finally, Driven Brands now owns a nine-shop MSO and is pursuing more acquisitions. Private Equity Interest is Driving Activity Industry buyers have changed dramatically in five years. Five years ago, the most active buyers included the four big consolidators—ABRA, Caliber, Service King and Gerber— plus seven regional MSOs—Pacific Elite, Kadels, Cooks, Craftsman, Joe Hudson, Classic Collision and Car Care—and one PE firm, Carousel Capital, which owned Driven Brands. In the years since, almost all of those firms have disappeared into larger firms. ABRA bought Cooks Collision, then sold to Caliber ABRA bought Kadels Pacific Elite got bought by PEbacked Crash Champions Car Care got bought by Service
King Joe Hudson got bought by TSG Consumer private equity Carousel owned Driven Brands, which it subsequently sold to Roark Capital Classic Collision was acquired by New Mountain Capital We attribute the activity and the values to the number of new entrants into the collision space, mostly private equity firms—the highest we’ve seen in 20 years. New PE entrants have come flocking back to the market looking for opportunities that will benefit from increasing consolidation. Most see the stability and non-cyclical nature of collision repair as effective cash generators with modest risk. Some are looking to buy and then sell out to someone larger. And some are probably looking to coat-tail Caliber and Driven, if and when they have IPOs. PE firms come in lots of sizes and varieties. The new participants range from $350 million in assets to more than $16 billion. Some are inexperienced in the industry but anx-
ious to learn. Some have hired CEOs who are highly skilled executives. Others have already found their platforms and are aggressively expanding. Ten are still looking for their first platform! All of them are looking for high quality large MSOs in major metro areas. Deal Terms and Structures Today Five years ago, structures involved a variety of cash, stock, debt and earnouts with most deals being done for cash. Some deals were done as stock purchases, though most were asset purchases. Multiples ranged from five to nine times reconstructed EBITDA, with some outliers for very large MSOs. Increasingly, deals are being measured on purchase price to revenues, with smaller shops in the 35% to 45% and medium size MSOs in the 65% to 90% of revenues, depending upon the strategic fit, EBITDA levels and ongoing management teams. Today, we see the same variety of consideration with most all deals still being done as asset purchases. During this time of COVID, many are structured with both cash and ear-
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nouts with performance hurdles— some EBITDA based and some revenue based. Some are structured to share the risk between the sellers and the buyers. Multiples are trending lower for plain vanilla acquisitions but remain robust for quality platforms. OE certifications are driving increases in values—especially highend brands. National Consolidators Just Keep on Buying Assisted by an additional capital raise in the second quarter, Gerber has acquired more than two dozen shops so far in 2020, including nine in Southern California, as it enters the largest U.S. market for the first time. Caliber Collision added more debt capital and continues its growth even as its revenues have slowed. In late July, it acquired one of the premier MSOs in the Southeast, when it closed on Professional Collision of Mobile, AL. Multi-Regional MSOs Are Growing Most Rapidly Illinois-based Crash Champions, led by Matt Ebert, reached from Chica-
go across to Southern California to acquire 14-shop MSO Pacific Elite early this year using both equity and debt capital. In February, Crash added three shops in Ohio, and is on the hunt for more. Former ABRA senior executives with the backing of a highly credible sponsor, New Mountain Capital, are deploying millions of new equity capital following their takeover of Classic Collision in Atlanta last year. Led by CEO Toan Nguyen, Classic expects to challenge Joe Hudson’s position as the fourth-largest operator in the U.S. Classic now has eight of its 37 locations in south Florida, including the acquisition of the former Carolina Auto Body. (Full disclosure: Focus Advisors represented Carolina Auto Body.) Joe Hudson’s continues to beef up its management ranks and consider additional acquisitions across its Sunbelt markets. Texas-based ProCare acquired six-shop Houston operator Hodges Collision to bring its total to 41 shops. Regional MSOs are Preparing for Growth
Chilton Auto Body, a 12-shop MSO in the San Francisco Bay Area, recently hired Chris Abraham, former CEO of Service King, and a team of acquisition professionals with expectations of growing substantially. Oklahoma-based Collision Works added eight shops with a large acquisition last year, and now operates 33 locations in Oklahoma and Kansas. The Collision Works team is sized to add more capital and acquisitions. Franchise and Affiliation Opportunities Accelerate Franchisors and banner networks are finding increasing success as operators seek multiple ways to increase partnerships and revenues. Driven Brands’ portfolio of franchisors—CARSTAR, ABRA, MAACO and FIX USA—is continuing to add franchisees, as well as expand its portfolio of other automotive industry participants. Driven’s April acquisition of FIX USA and its largest franchisee, Auto Center Auto Body, reinforced its hold on most of the “waterfront” franchise opportunities. (Full disclosure: Focus Advisors
represented FIX USA.) Two banner groups, CCG and 1 Collision are growing as well. 1 Collision, which has now merged with Canada-based CSN, is expecting to rapidly add new affiliates to its current U.S. network of 50 shops. Together, the combined companies have more than 280 shops. California-based Certified Collision Group now claims more than 450 shops with $2 billion in gross revenues across the U.S. With some of the country’s largest independent MSOs in the fold, CCG is focused on helping them gain additional DRP and vendor relationships. Our Expectations Our best estimate is that 2020 will end with revenues annualizing at 80% of 2019 revenues. A realistic expectation for 2021 is that shop revenues will return to 2019 revenues. Miles driven will continue to be negatively impacted by a slowly returning economy, but positively impacted by people’s willingness and need to travel more securely without exposure to potential See Midyear Updates, Page 22
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‘Industry Relations’ Allstate, agreed the revamp offered an opportunity to be “evocateurs� to the industry. Allen said the point was to address “real challenges,� but stop talking “up and over.� The idea was to find something on which the industry could find more agreement, he said. “The CIC Industry Relations Committee will foster discussions that identify topics that the Industry would benefit from gaining alignment on,� the committee’s purpose states. Keller said “alignment� was the key word here. “How are we gonna do that?� he said. “Very carefully.� The committee planned a “very interactive� setup with open mics for a lively and engaging dialogue, he said. It also planned to leverage but not interfere with work done in other CIC committees, he said. Engaging other segments of the industry also was a goal, Allen said. For example, he said, if a paint company wanted to talk about an issue,
it should bring it to the committee. Committee member Amber Alley, of Barsotti’s Body and Fender, said she’s seen issues left in a stalemate during her 2.5 years on the Insurer-Repairer Relations Committee. “Neither side is wiling to give,� she said. She hoped the introduction of perspectives from segments outside of the auto body repair and insurance industries would lead to greater appreciation of others’ views and find actual resolutions, rather than applying “Band-Aids on problems that we all know exist.� Algie felt the new committee format could accomplish more than the old Insurer-Repairer Relations iteration. The presence of a third party might “calm the waters a little bit,� he said. The Industry Relations Committee’s plans for its first two official CIC discussions suggest its new direction. During the SEMA Week CIC meeting, the body would discuss operating in a pandemic, Keller said. (The live SEMA has since been cancelled, but CIC plans to convene in November, albeit virtually.) The January 2021 CIC
would examine artificial intelligence, Keller said. “This is a great starting point,� Alley said of the planned conversation on COVID-19 lessons. Nobody had experienced such a thing, and it would be naive to assume anyone in the room emerged without some negative impact, she said. Sharing successes and failures from the experience could lead to a vision for the future, she said. The committee provided a teaser of sorts for the COVID-19 discussion with comments from two of the panel’s insurers. Committee member Scott Kohl, of Liberty Mutual, noted his company has about 3,500 shops on its direct repair program. “It hit each one very, very different,� he said of COVID-19. Fellow committee member Jonathan Chase, of National General, pointed to the matter of cleaning fees. All stakeholders wanted to collaborate and do the right thing, but different parties obtained information in “different spots,� he said. Since the issue is fresh in everyone’s mind, it can be used as an example of how to to work better
together in the future, Case said. The committee wasn’t trying to say anyone acted incorrectly; rather, it wanted to discuss the different approaches, he said. Treating the cleaning issue as a case study would make everyone more effective, he said. Chase recalled “being confronted daily� with a changing environment and talking to “MSO partners� and other vendors and peers. Everyone wanted to take care of the customer and deliver safety, but the experience still proved difficult “because we weren’t all talking together,� Chase said. If the topic of cleaning a car left stakeholders struggling, it could be even harder to handle a customer complaint about their Level 5 self-driving car, but “it’s coming,� he said. We thank Repairer Driven News for reprint permission.
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Midyear Updates infections. With many more vacation and business trips being taken, miles driven should be positively impacted. The Federal Reserve has been cautioning that damage to the entire economy is profound, deep and expected to impact us all for years ahead. So, while we are inclined to be optimistic, we believe caution is more realistic. When there is a widely available and distributed COVID-19 vaccine, revenues will accelerate rapidly as confidence in normal economic activity returns and overall economic growth begins to accelerate. What is the net result for the collision repair industry? Continued uncertainty, but not widespread disaster. Questions we answer every day: Should I sell now or should I wait two years until the economy and my revenues improve? For some folks, their age and their lack of a successor dictates they sell now. Others with a succession
plan—or, even better, a growth plan— have the best of both worlds. Acquirers are still looking favorably on targets today. In two years they may be less aggressive because they will have already bought their key platforms and may only looking for smaller fold-in acquisitions. For sub-regionals determined to grow into super regionals, accessing capital today is likely to be easier than in two years because of strong PE interest. Values are always suppressed when there are many sellers and a limited number of buyers. If everybody is heading for the exits at the same time, there is a danger some deals just won’t get done and that acquirers will use that opportunity to reduce valuations. Everything else being equal, savvy sellers prefer to go into the market when there are more buyers and fewer sellers. For many owners, it’s a balancing act between the growth they expect in the years ahead versus the opportunity to sell when there are multiple buyers willing to make them fair offers. With trillions and trillions of dollars being spent by the government to
prevent the collapse of the economy, there will come a time, sooner rather than later, where taxes will rise to begin reducing the debt. Our expectation is that capital gains taxes are likely to rise first. Closing a transaction in 2020 may avoid a significantly greater tax hit in 2021. What kind deal structure is possible today? Acquisition deals are likely to be structured differently than in the past. We expect less cash up front and more earned out by achieving performance hurdles over time. Sellers may also be asked to finance part of the acquisition price. On the plus side, many of the private equity investors are creating vehicles in which sellers can roll over a portion of their sale proceeds into equity ownership positions.
Will these new investors actually close on the offers they have extended? Most professional buyers that issue Letters of Intent have an established track record of honoring their purchase commitments. Even in the time of COVID, deals negotiated before the pandemic hit were largely fulfilled, although some had structural and hurdle requirements added. Inexperienced or first-time buyers may have a harder time holding the pricing of their offers as their private equity sponsors have fewer transactions under their belts. And if there is a long-term recession of incredible depth, that would be a material change that would impact valuations and closings. We thank Focus Advisors for reprint permission.
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PA Gov. Announces $96 Million for Small Businesses Impacted by COVID-19 Pennsylvania Gov. Tom Wolf on Aug. 10 announced $96 million in state grants have been awarded to 4,933 Pennsylvania small businesses impacted by the COVID-19 public health crisis and subsequent business closure order. Businesses in every Pennsylvania county received grants in this first of two rounds of funding, and 2,512 grants—or 51%—were awarded to historically disadvantaged businesses. “As we continue to address this public health crisis, it’s critical that we also focus on our state’s economic recovery and supporting our small businesses across the state, which continue to be impacted by our necessary mitigation efforts,” Wolf said. “This funding will go a long way to help small businesses, including historically disadvantaged businesses, at a time when they need it most.” The COVID-19 Relief Statewide Small Business Assistance funding was developed in partnership with state lawmakers and allocated through the state budget, which included $2.6 billion in federal stim-
ulus funds through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, of which $225 million was earmarked for relief for small businesses. The Department of Community and Economic Development (DCED) distributed the funds to the Pennsylvania Community Development Financial Institutions (CDFIs), which are administering the grants through three programs: $100 million for the Main Street Business Revitalization Program, $100 million for the Historically Disadvantaged Business Revitalization Program and $25 million for the Loan Payment Deferment and Loss Reserve Program. “The COVID-19 pandemic unexpectedly affected small businesses across the commonwealth, an unfortunate circumstance that could not have been predicted or prepared for,” said DCED Secretary Dennis Davin. “However, through the collective action of the Wolf Administration, the General Assembly and the CDFI Network, Pennsylvania’s hardest hit and most at-risk businesses will be
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able to access the funding they need to shore up their resources and regain sound financial footing as we move into recovery.” The second and final round of funding is open starting Aug. 10 through 11:59 p.m. Aug. 28. Eligible applicants not awarded in the first round do not need to reapply and will be rolled into the next round for consideration. More information on the COVID-19 Relief Statewide Small Business Assistance Program, including how to apply, is available on DCED’s website. https://dced. pa.gov/programs/covid-19-reliefstatewide-small-business-assistance/ “The PA CDFI Network targeted these funds to reach the smallest and most vulnerable businesses across the state, and we received an immense response with close to 50,000 applications submitted in the first round and more than $860 million in total requests,” said Daniel Betancourt, chairman of the PA CDFI Network and president and CEO of Community First Fund. “We are grateful to be
part of this first step with Gov. Wolf and the Pennsylvania Legislature to get much needed resources to the small businesses that have been so adversely impacted by the pandemic.” The grants may be used to cover operating expenses during the shutdown and transition to re-opening, and for technical assistance including training and guidance for business owners as they stabilize and relaunch their businesses. “These grants and the relief they will provide are testament to what we can do when we prioritize the right initiatives,” said state Sen. Vincent Hughes (D-Philadelphia, Montgomery), Democratic chairman of the Senate Appropriations Committee. “It is because of collaboration and a collective focus that today we were able to deliver help to the auto body shops, the barbershops, the beauticians, the pizza shop owners, the soul food establishments and other businesses across the commonwealth. It is critical to understand that there is still a great deal of need and must continue to direct resources and aid
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to our small business community to help it recover from the devastation of the pandemic.” “I could not be more proud or more grateful for the great work of DCED and Pennsylvania’s CDFI Network in delivering substantive, fair, equitable, need-based assistance to our state’s Main Street and historically disadvantaged small businesses. Our program design and the accountability it provides to taxpayers and to our federal funders is a model for the nation,” said state Sen. John Blake (D-Lackawanna, Luzerne, Monroe), Democratic chairman of the Senate Finance Committee. “I appeal to the U.S. Congress and to our colleagues on both sides of the aisle in Harrisburg to recognize the success of this program in assisting small businesses devastated by the pandemic and to invest further in the program so we can help even more of them.” “Our business community has been severely impacted by the COVID-19 pandemic and is in need of immediate assistance. The grant program is targeted to help small businesses manage costs, handle expenses and stay in operation in this
exceptionally difficult time,” said state Sen. Jim Brewster (D-Allegheny, Westmoreland). “Since COVID struck our state and debilitated our business community, I have been advocating for bridge grants and sought millions in aid for impacted businesses and workers. The small business assistance grants are one of the tools we can use to bolster business, maintain jobs and help workers at a time of immense distress.” “For minority and women-owned businesses in Pennsylvania, COVID-19 didn’t create a crisis, it laid bare the crisis our minority entrepreneurs have been facing for decades,” said state Rep. Jake Wheatley Jr (D-Allegheny), Democratic chairman of the House Finance Committee. “While I’m glad to see the positive impact of these grants and I urge all local community businesses to apply for the next round of grants, we need to expand investment in programs like this because it’s long past time for the legislature to address the systemic flaws that are leaving too many marginalized people behind.” “The burden that COVID-19 has put on business owners, employees
and families in southeast Pennsylvania gets heavier every day,” said state Rep. Chris Sappey (D-Chester). “At this point, when we talk about addressing the pandemic, we must not only fight it with masks and social distancing, but we also must equally and strongly support our business community, where this fight for our health and safety actually is taking place. Commerce and industry must survive this virus, as well. Pennsylvania needs this aid now, and my office is eager to work with any business that needs help applying.”
Subaru Reports July Sales Subaru of America, Inc. reported 51,458 vehicle sales for July, a 20% decrease compared with record July 2019. These results reflect the impact of the COVID-19 global pandemic and the uncertainty surrounding economic recovery. Following 11 consecutive years of sales records, Subaru reported year-to-date sales of 318,572, a 21% decrease compared to the same period in 2019. July marked the third consecutive month of 50,000plus vehicle sales for the automaker. As the top performing car line by volume, Forester sales increased 4% in July compared with the same month a year ago. WRX/STI posted a 6% increase, while BRZ posted a nearly 60% increase compared to July 2019.
Source: Office of Gov. Tom Wolf
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PA Car Enthusiasts Rally Together to Help School Children by Steven Symes, Motorious
With the coronavirus pandemic and subsequent shutdowns, many young families are struggling just to keep a roof overhead and food on the table. That’s why it’s great to hear car enthusiasts are stepping up to help with the latter as the regular school year would start to kick off. Nonprofit enthusiast group Route 11 Cruz’n recently gathered for a diverse car show at local dealer Parsons Interstate Ford in Shippensburg, PA, to raise money for the Shippensburg Area School District’s food insecurities fund. Local restaurants and other businesses pitched in for the event. Money raised by the event went toward a worthy cause: feeding needy students in the Pennsylvania school district. With kids not attending classes in person at school, there’s more need than ever to ensure none of them goes hungry during the day. The fact that car enthusiasts, who sometimes are portrayed in the media as being selfish scoff-
laws, stepped up to address such a need really says something. According to a local news report, one of the area principals reached out to Route 11 Cruz’n for help, so the group obviously has a good reputation with the community. There were auctions, food giveaways and other events to be enjoyed. And of course, there were some cool cars to check out, like a new Shelby GT500 owned by the Ford dealership, a 1964 Chevy Pickup, 1931 Chevy Coupe, Chevy Tri-Five and numerous Camaros. At least one hot rod showed up, bringing some wild flair to the lot. As some attendees noted, it was a great excuse to get out of the house, see some cool cars and enjoy the company of other enthusiasts. Route 11 Cruz’n holds quite a few charitable events throughout the year. The next one is scheduled for Aug. 28 with proceeds going to the Cumberland Valley Breast Cancer Alliance. Check out the group’s official Facebook page here. We thank Motorious for reprint permission.
MA Auto Body Shop Owner Charged with Tax Fraud The owner of auto body shops in Everett and Worcester, MA, was charged Aug. 12 with a payroll tax scheme resulting in a $292,231 tax loss. Adam Haddad, 43, of Shrewsbury, MA, was charged and has agreed to plead guilty to three counts of aiding the preparation of false tax returns. As alleged in the information, for tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc., “under the table.” In doing so, Haddad caused Accurate Collision, Inc., to file false returns with the IRS, which underreported the actual wages he had paid his employees as well as the employment taxes due to the
IRS. In total, Haddad caused a loss to the IRS of at least $292,231. The charging statue provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. sentencing guidelines and other statutory factors. U.S. Attorney Andrew E. Lelling and Kristina O’Connell, special agent in charge of the IRS’s criminal investigation, made the announcement Aug. 12. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s securities, financial and cyber fraud unit is prosecuting the case. Source: The U.S. District Attorney’s Office of Massachusetts
New York Police Agencies to Ramp Up Speed Enforcement Efforts by Dave Lemery, The Center Square
New York Gov. Andrew Cuomo announced an upcoming effort to make the state’s roads safer this summer—a push that might also serve to help ease the state’s budget crunch, too. The New York State Police have been directed to step up speeding enforcement efforts the week of Aug. 10, and local law enforcement agencies will be joining in as well, Cuomo announced in a news release. Excessive speed was a factor in 34% of fatal traffic accidents from January to May, up from 30% in 2019, the release stated, and those who speed are also more likely to drive without using a seat belt, engage in drunken driving or use a cellphone while driving. “Speed limits are not a suggestion, they are the law and they save lives,” Cuomo said. “There is no excuse for driving at high speeds—it’s unnecessary and endangers everyone on the road—and I urge New Yorkers to be smart and slow down because it’s not worth risking lives to save a few seconds on your next commute or trip to the store.”
Reports this year have indicated that speeding is up across the country during the coronavirus pandemic, especially during the early stages when much of the economy was shut down, leaving normally congested highways more open. In April, CNN reported that speeds were up 75% in cities like Chicago and Los Angeles compared to pre-pandemic trends. Traffic enforcement can be a huge moneymaker for governments. In February, Fox News reported that Washington, D.C., had collected about $1 billion in fines for moving and parking violations over a threeyear period. New York City made a point of counting on driving fines in its most recent budget, according to the New York Post. The city, which like the state is staring at a multibillion dollar budget hole thanks to deflated tax collections, reportedly budgeted for an additional $42 million in revenue from writing tickets. “The fact is, the reason someone gets a ticket is if they’re doing something wrong,” New York Mayor Bill de Blasio said, according to the Post. We thank The Center Square for reprint permission.
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autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 27
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Analysis Shows PA Has 2nd-Most Coronavirus Restrictions Among U.S. States by Dave Lemery, The Center Square
For several months, a debate has raged in Pennsylvania between Democratic Gov. Tom Wolf and the Republican majorities in the state Legislature over whether the administration’s coronavirus restrictions are appropriate or too restrictive. Lawmakers passed a number of bills in recent months seeking to overturn some of the measures imposed by Wolf and Secretary of Health Dr. Rachel Levine, only to see Wolf veto most of those bills. With Republicans lacking the support needed to overturn a veto, the restrictions have remained for as long as the administration deemed them necessary. Now, a new analysis by the financial services website WalletHub that ranks the states by their COVID-19 restrictions has placed Pennsylvania firmly near the top. The Keystone State landed at No. 2, second only to California in the number of constraints imposed on the population. WalletHub has been compil-
ing state rankings for restrictions since May, and Pennsylvania has tended to be one of the most restrictive states in each iteration. But this week’s update saw the state’s highest placement yet. The rankings were compiled using 19 metrics, including face mask requirements, travel restrictions, the pace of business and school reopenings and more. WalletHub talked to a number of outside experts about best practices for reopening the economy, including Vlad Tarko, a professor at the University of Arizona’s Department of Political Economy and Moral Science. Tarko argued that given human nature, reopening economic activity a bit on the early side was probably inevitable. But that didn’t mean there were no options available to limit any negative effects. “Main things that can be done to mitigate the problem, given premature reopening: substantially more testing, accelerated medical developments, responsible local political and business leadership
on preventing super-spreading events, and deregulating various economic activities in order to allow production chains to adjust faster,” Tarko wrote. “Governments should provide more substantial, and quicker, grants and prizes for COVID-related medical developments. They should also subsidize the drugs and vaccines, once they are developed, and other things, like masks, but abstain from price controls [which would be counter-productive.]” So far, during the pandemic, Pennsylvania has seen more than 120,000 diagnosed coronavirus infections and more than 13,700 deaths linked to COVID-19. Meanwhile, the most recent jobless numbers show a 13% unemployment rate, more than double what the state saw before the economy shut down. We thank The Center Square for reprint permission.
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AAPEX 2020 to Be Virtual Experience AAPEX 2020, scheduled for Nov. 3-5 at the Sands Expo and Caesars Forum Conference Center in Las Vegas, will not be held as an in-person tradeshow event this year due to the current state of the COVID-19 pandemic and related governmental prohibitions and restrictions on gatherings, businesses and travel. Instead, AAPEX will provide a virtual/digital experience with many of the show’s same elements presented digitally. The virtual event will be held the week of Nov. 3, the same week as the originally planned event. Additional details will be available Aug. 19 For more information, visit www.aapexshow.com or e-mail info@aapexshow.com. On social media, follow AAPEX at #AAPEX20. Source: AAPEX
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Continued from Cover
Survey Finds to keeping all of his staff working,” an estimator who is one of nine employees at a shop in eastern Pennsylvania said. Shop optimism had also rebounded a bit from what it was in the spring. In the second half of April, 15% of shops said they were “very” or “extremely” concerned about their business surviving even just the next month, and 25% felt that way when they looked out three months. By June, those rates were cut by about half, with just 8% worried about the next month and 14% worried about making it into the fall. In April, only half of shops said they were not very, or at all, concerned about being in business next spring; in June that had nudged up to three in five shops, with just 16% saying they are “very” or “extremely” concerned about still having their doors open a year from now. “People are using their cars as safety bubbles to go out and explore,” a survey respondent in Texas
said. “Collisions will continue.” Across a total of 151 shops that reported February to May monthly revenue figures in June, the combined total monthly revenue fell from $39 million in February—an average of $261,000 per shop—to $38 million in March, $27 million in April and $23.5 million in June—an average of $156,000 per shop, and a cumulative loss of more than $29 million. Interviews with some shops this summer offered anecdotal evidence that revenue patterns vary widely by market. “For whatever reason, in our area we’re usually about 30 to 45 days behind other businesses,” said Tim Cockrell, owner of two Cockrell’s Body Shop locations in Alabama. “March and April and May were down 15% or 20%, but all of a sudden in June, it went down to 50%.” Richard Fish, owner of six Fix Auto USA franchises in Southern California, saw things turn in the opposite direction, but also vary by location. “In June, we were at 78% of our baseline sales. So we’ve seen some rebounding,” Fish said. “At our worst [this spring], we were close to 50%.”
GM Not Happy with Facebook, Quits Ads on Platform by Jacob Oliva, Motor1.com
This day and age, social media platforms have become one of the biggest, if not the biggest, channels for advertising and reaching target markets. If before, the television was the go-to place for advertisers, the rise of the internet has increased time spent on social media platforms, making it an attractive way to sell products and brands. And this is true globally. On a study conducted this year, there are 1.4 billion active users on Facebook daily, each spending an average of 58 minutes on the platform. More than half of these users range from 18 to 34 years old. We reckon, with quarantine in place in several countries, including the U.S., because of the pandemic, the time spent on the platform could have increased naturally. However, General Motors isn’t too keen on the effectiveness of Facebook as an advertising platform. In a report by Automotive News, The General is unhappy with the way Facebook handles hateful content in connection to the auto-
maker’s brands. With that said, GM reportedly is withdrawing its advertising efforts on the social media platform. The withdrawal includes other social media and messaging platforms under Facebook, including Instagram and WhatsApp, among others. In a statement, GM said the company isn’t satisfied with the progress that Facebook has made. This prompted the company to pause its media investment with the platform. “We are encouraging them to move faster to implement meaningful change so that we can quickly return to a safer digital space that mirrors our brand values,” the American automaker added. GM isn’t the first automaker to withdraw advertising on Facebook. The U.S. division of Ford and Honda have also stopped doing so, along with other commercial brands like Ben & Jerry’s. Ford, however, will resume its spending on YouTube and Pinterest. We thank Motor1.com for reprint permission.
TRUST MOPAR® FOR THE PERFECT FIT AND FINISH. Don’t take chances with aftermarket parts. If it’s not Mopar®, it’s not engineered to the original specs for the most durable performance and highest safety standards. An aftermarket part hasn’t been through the same rigorous testing, so it’s not designed to work in concert with the vehicle as a whole. Don’t compromise the integrity of the whole safety system for a lesser part. Partner with us to get it done right the first time with authentic Mopar parts.
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THERE’S NO MARKET FOR AFTERMARKET HERE. 30 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com 60673_COL14_H_AB.indd 1
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12/11/19 1:43 PM
8/19/2020 2:57:30 PM
SEMA Survey: Industry Outlook and Sales Projections Continue to Improve by Kyle Cheng, SEMA
Since the beginning of April, SEMA Market Research has been tracking how businesses within the specialty-equipment industry have navigated through the disruption over the past few months. Overall, our industry continues to return to more normal operations and is increasingly more optimistic about their sales for the rest of 2020. In a recent survey conducted July 24–30, approximately 95% of all companies said they were mostly business as usual or only impacted in the short-term. Nearly half (45%) stated they were business as usual, compared to only 17% back in April. The number of companies reporting more severe disruptions have continued to decrease over the past few months as well. Companies are growing equally optimistic about their sales. Today, nearly half of all companies expect higher or at least the same amount of sales as last year. That is a significant jump from April, when only 20% of companies said
SEMA current outlook
SEMA sales projection
that. Overall, most companies expect to finish the year better, at least the same, or with only a slight decline in sales compared to 2019. Want the latest data and trends in the specialty-equipment industry? Check out the newest reports from SEMA Market Research: 2020 SEMA Market Report: The 2020 SEMA Market Report provides a comprehensive look at how the products your company sells are purchased and installed. Also included is the most upto-date information on parts buyers, key industry trends and forecasts, and insights into the vehicles currently on the road. SEMA State of the Consumer Re-
port—July 2020: In this report, the SEMA Market Research team explores the current state of consumers within the U.S. and their outlook for the future. This quick
snapshot looks at how consumers are emerging from coronavirus lockdown, including recent driving patterns, retail behavior and how they are interacting with the specialty-equipment industry. All of these reports, and much more, are available for free download at www.sema.org/research. We thank SEMA for reprint permission.
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HONDA CONNECTICUT
NEW
Lia Honda of Enfield Enfield
800-221-3131 860-741-3401
Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com
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MAINE
Berlin City Honda South Portland
800-640-6685 207-774-6685
D sba
Dept. Hours: M-F 7:30-5:30 mmmparts@berlincity.com
Prime Honda Saco
207-391-7910 207-282-0900
Dept. H anth
Dept. Hours: M-F 7:30-6; Th. 7:30-7; Sat 7:30-4 klavalle@driveprime.com MARYLAND
Criswell Honda
Dept. H ms
Germantown
866-738-2886
Dept. Hours: M-Thu 7-9; Fri 7-7:30; Sat 8-6 hondaparts@criswellauto.com MASSACHUSETTS
Dep
LIA Honda Northampton Northampton
800-369-7889 413-586-6043
Dept. Hours: M-F 7:30-5:30; Sat 8-4 dstanisewski@liacars.com
De rt22h
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Acura of Boston Brighton
800-254-1169 617-254-5400
Dept. Hours: M-F 8-5:30; Sat 8-5 bruce.fisher@acuraofboston.com
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NEW
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D kristen
Peabody
B
Dept. Hours: M-Sat 8-5 dbritt@acurapeabody.com
D m
800-878-3600 978-532-9110
D b
32 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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d
4
on
4
Please contact these dealers for your Honda or Acura Genuine parts needs. NEW JERSEY
NEW JERSEY
NEW YORK
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Clinton Honda
Sussex Honda
Lia Honda of Williamsville
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877-657-2787
800-842-0557 973-579-3500
877-659-2672 716-632-3800
800-468-2090 412-390-2908
Annandale
Dept. Hours: M-F 8-5 chrish@clintonhonda.com
Honda of Turnersville Turnersville
800-883-0002 856-649-1584
Dept. Hours: M-F 8-6; Sat 8-4 sbaptist@penskeautomotive.com
Hudson Honda West New York
866-483-6917 201-868-9500
Dept. Hours: M-F 7-7; Sat 7:30-5; Sun 8-3 anthony.perrone@hudsonhonda.com
Newton
Dept. Hours: M-F 8-5 realhondaparts@sussexhonda.com
VIP Honda
North Plainfield
908-753-1680
Dept. Hours: M-F 7:30-6; Sat 8-3 kevinh@viphonda.com
Williamsville/Buffalo
Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com
Ray Laks Honda West Seneca
716-824-7852
Dept. Hours: M-F 7:30-8; Sat 7:30-5:30 ekuznicki@raylaks.com
NEW YORK
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Brewster
Apple Honda
Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com
800-960-9041 717-848-2600
845-278-4177
York
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Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com
Shenango Honda Hermitage
800-858-0849 724-981-7106
Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@shenangoauto.com
Sussman Honda Roslyn
800-682-2914 215-657-3301
Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
Madison Honda
Dick Ide Honda
Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com
800-648-0293 973-822-1710
800-462-0056 (N.Y.) 585-586-4919
Baierl Honda
802 Honda
724-940-2006
802-223-9700
Madison
Dept. Hours: M-Thu 7-8; Fri 7-6; Sat 8-6; mschumer@madisonhonda.com
Rossi Honda Vineland
800-893-3030 856-692-4449
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Dept. Hours: M-Thur 8-8; Fri 8-5:30; Sat 8-5 parts@dickide.com
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Dept. Hours: M-F 7:30-5; Sat 8-Noon hondaparts@802cars.com
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Dept. Hours: M-F 7:30-5:30; Sat 9-1 parts@lamacchiahonda.com
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Dept. Hours: M-F 8-5; Sat 8-4 johnryan@baierl.com
Berlin
Lamacchia Honda
Dept. Hours: M-F 6:30-5; Sat 7:30-3 dave@rossihonda.com
Hillside
Wexford
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Dept. Hours: M, T, W, F 7:30-5:30; Thur 7:30-8; Sat 8-5 mjerard@liacars.com
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Acura Turnersville
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Dept. Hours: M-F 8-5; Sat 8-4 kristen.powell@penskeautomotive.com
Bill Vince’s Bridgewater Acura Bridgewater
908-704-0307
Dept. Hours: M-F 8-7; Sat 8-4 mattn@bridgewateracura.com
Elite Acura Maple Shade
856-722-9600
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Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com
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Dept. Hours: M-F 8-6; Sat 8-5 parts@curryacura.com
Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com
Paragon Acura
Davis Acura
718-507-3990
866-50-ACURA 215-943-7000
Woodside
Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com
Smithtown Acura St. James
888-832-8220 631-366-4114
Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com
Langhorne
Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com
Sussman Acura Jenkintown
800-826-4078 215-884-6285
Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 33
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Hey Toby! with Toby Chess
Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com
An Overview of Corrosion Protection Products: Part 2 of 2 This is the continuation of Corrosion Protection: Part 1, printed in the August issue of Autobody News.
applied. Seam sealer tape can be removed and repositioned until it is firmly pressed into place with a roller (See Fig. 15) which sets the adhesive.
will lead to an adhesive failure.
California Autobody Association with David McClune
Fig. 14
DTM sealers (Fig. 14) have the same characteristics as the generally Single part seam sealers (Fig. used seam sealers, but has corrosion 12) are an NVH control material. Its inhibtors added so it can be applied to John Yoswick bare metal. primary purposewith is to keep out moisNo OEMs recognize the use of ture, wind and sound, and it is used on all joined metals. It dries by at- these seam sealers. They all state tracting moisture and will take longer there needs to be a barrier coat beto dry than two-part adhesives, gen- tween the bare metal and the seam sealer, perferably 2K epoxy primer. erally speaking. A friend of mine used a compaEvery OEM for which I have corrosion data requires a primer to ny’s DTM seam sealer with no primbe applied prior to the application of er on a new roof panel. The vehicle returned with all of the seam sealer seam sealer. lifting off the panel. He contacted with Richard Steffen the manufacturer of the product and they would not warranty the repair. They said he did not follow OEM procedures, which stated a coat of epoxy primer was needed to be applied prior to the application of the seam sealer. I just want you to be warned before you apply this seam sealer to bare metal.
Fig. 17
Fig. 12
Year in Quotes
Fig. 16
Make sure you clean the primed surface with a good wax and grease remover such as Acrysol (Fig. 16). Using your thumb to put the tape in place and not cleaning the surface
Sound deadener (Fig. 17) is a two-part material used for noise, vibration and harshness. It can be used to fill large gaps, but I teach using it as an adhesive between the outer door skin and intrusion beam. Work time is about an hour and it is a non-expanding material that works well on horizontal as well as
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Fig. 13
Two-part seam sealers (Fig. 13) are used just like the single component. They have a faster drying time than single-part sealers, but cost more. Control flow sealers are used in areas where a flowable self-leveling type seam sealer is required, as Fig. 15 The next type of seam sealer is it flows up to 2 in., then cures, prein the form of tape (Fig. 15). Comventing further with flow. Self-leveling Karyn Hendricks sealers are recommended for roof mon locations of use are the hood seam sealing and on drip rails and hem, door hem, deck lid hem and trunk opening seams. A fast drying, quarter panel arches. There is no dry non-sag, high build sealer is used for time so you can paint immediately. Do not stretch the tape as it is all other areas that need seam sealer.
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34 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
with David M. Brown Northeast_Issue_0920.indd 34
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36 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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vertical applications. You will need a foam base to apply this material. I recommend use on sail panels on quarter panels and around the gas door pocket.
comes in direct contact with bare aluminum in the presence of moisture and oxygen. A chemical reaction occurs and aluminum will start to corrode, and it will not stop. If a coating, such as primer, is applied over the aluminum after the corrosion process has started, the corrosion process is known as filiform corrosion. (See Fig. 20).
flexible foams and rigid foams.
Fig. 20 Fig. 19
Fig. 18
Sound deadening pads (Fig. 18) are used on door skins, floor pans and quarter panels. They stiffen up a panel to help with noise reduction and vibration. Vibration can lead to an opening of a panel and moisture can get in, which could result in the formation of rust. Automotive foams are used for NVH control and, in the case of structural foam and rigidity, in place of using a steel reinforment. There are
These two-part materials are designed to eliminate panel flutter, water leaks, wind and noise, and duplicate OEM sound deadening on sheet metal. They eliminate oil-canning of door skins, hood/deck lids, roof panels, rear quarter assemblies and sail panels. Do not substitute it with commercial single-part foam found at home building supply stores, which is highly flammable and attracts moisture to expand. You will need to remove the foam from areas that will be welded. If the material catches on fire, cyanide gas and carbon monoxide will be released.
Panel adhesives (Fig. 20) are now considered a corrosion protection item. When the adhesive is applied, it forms a barrier so moisture cannot get in between the joints. Toyota has limited the use of adhesives to only weld bonding, a combination of resistance spot welds and glue, which are listed in its specific model repair manuals. Toyota (CRIB 158) does not approve of panel bonding as a substitution for welding. A final note on corrosion and aluminum: as you are aware by now, aluminum does corrode. The first kind is galvanic corrosion, which occurs when bare steel
Fig. 2
Fig. 20a
The other type of corrosion occurs naturally. When bare aluminum is exposed to oxygen and moisture, a barrier coat known as aluminum oxide (Al3O2) forms on the surface. This material will not burn off—it melts at 3725 degrees F, whereas aluminum melts at 1220 degrees F. It causes porosity in the weld site. Adhesive, body repair pins and paint do
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38 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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surface of the aluminum fender. Besides the iron particle beginning to rust, galvanic corrosion started under the rust particles. What would happen if I primed the fender? A big comeback.
not stick to it, and that is why it is necessary to remove before welding, painting and adhesive application.
Fig. 21, Sand with 180 grit DA Fig. 23
Fig. 22, Clean with a good wax and grease cleaner. Note the aluminum (black soot) on the towel
Fig. 24, Clean with a good wax and grease cleaner. Note the aluminum (black soot) on the towel
The next set of pictures show how to perform a recommended cleaning process in a clean environment. As I stated earlier, I was sanding the body of a vehicle that I took down to bare metal. I used the same DA and the sandpaper from the steel body to sand away the paint and primer on the aluminum fender. When I was finished with the fender, I put it outside, and look what happened after one week. (See Fig. 24). Metal particles were transferred from the dirty DA sandpaper to the
At https://scrs.com/wp-content/ uploads/2018/01/2016-scrs-guideto-complete-repair-planning-revised-11-16.pdf , you will find a complete list of non-included items needed for repairing aluminum. Check out I-CAR and its offerings on corrosion protection classes. Kent Automotive, 3M, Fusor and SEM have online classes on their products, and Kent has in-house training as well.
CES 2021 Is All-Digital The Consumer Technology Association (CTA)® is excited to share that CES® 2021 will be an all-digital experience. With the growing global health concerns about the spread of COVID-19, it is not possible to safely convene tens of thousands of people in Las Vegas in early January 2021 to meet and do business in person. An all-digital CES 2021 will allow the entire tech community to safely share ideas and introduce the products that will shape our future. You’ll be able to participate in all the awe-inspiring moments of CES wherever you are in the world. We are designing a unique experience for the tech industry. Mark your calendars for the first week in January and be on the lookout for more exciting news about CES 2021. We plan to return to Las Vegas for CES 2022, combining the best elements of a physical and digital show. Source: CTA
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SEMA Show Canceled SEMA, the Specialty Equipment Market Association, announced Aug. 5 that due to COVID-19 and concerns event facilities and services will be unavailable, the SEMA Show will not be taking place in 2020.
While both event organizers and industry members have been working tirelessly to deliver an outstanding SEMA Show in November, mounting uncertainty has rendered continuing with the event inadvisable. SEMA expects the decision will bring much needed clarity to an uncertain picture and will help exhibitors, attendees and partners plan accordingly. Recent SEMA Show survey results indicated interest in a possible virtual tradecshow with related
live elements. SEMA will be working with industry members to determine interest levels on specific alternatives. “The SEMA Show is committed to furthering businesses in the automotive specialty equipment market, and to providing manufacturers and buyers with the best opportunity to connect, promote new products and discover new trends,” said Chris Kersting, SEMA president and CEO. “We appreciate the spirit, hard work and innovation our industry puts into the SEMA Show each year. While we are disappointed circumstances prevent us from hosting the Show in November, we look forward to getting everyone together in 2021 for another outstanding event.” Full refunds for SEMA Show exhibitor booth deposits and attendee registration fees will be issued. Updates will be posted to www. SEMAShow.com. Source: SEMA
Tesla Invites Insurance Actuaries to Help It Create a ‘Revolutionary’ Insurance Company by Andrew G. Simpson, Insurance Journal
Tesla, which has been testing an insurance product for its drivers in California, is preparing to build an insurer, one CEO Elon Musk says will be “revolutionary.” And he’s inviting actuaries to join his cause. “I would love to have some high energy actuaries, especially. I have great respect for the actuarial profession. You guys are great at math. Please join Tesla, especially if you want to change things and you’re annoyed by how slow the industry is. This is the place to be. We want revolutionary actuaries,” Musk said on a call with analysts on July 22. According to Zachary Kirkhorn, Tesla’s CFO, the company wants to harness the data from its telematics on its cars and drivers to build the new insurance operation beyond California. “Where we want to get to with Tesla Insurance is to be able to use the data that’s captured in the car, in the driving profile of the person in the car, to be able to assess correlations and probabilities of crash and be able then to assess a premium on a monthly basis for that customer,” he said.
He said Tesla is nearly finished with testing its California telematics product and hopes to be filing that in several more states by the end of the year with the goal of going nationwide. Musk said accuracy of information is “at the heart of being competitive” with insurance. The choice is between assessing drivers “looking in the rear-view mirror” or assessing them individually, “looking ahead with smart projections” and being able to point to what actions they can take to reduce their insurance. “It’s like… if you want to pay more for insurance, you can. But if you want to pay less, then please don’t drive so crazy,” Musk said, adding, “Then people can make a choice.” He said understanding the insurance expense, such as $15,000 to fix a fender, can actually be helpful to the carmaker, allowing it to adjust the design of its cars to how repairs are done and lessen the cost.Musk has long maintained that car insurance rates should fall as driver-assist and self-driving technology become standard. We thank Insurance Journal for reprint permission.
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with Stacey Phillips
From the Desk of Mike Anderson with Mike Anderson
Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.
More Best Practices to Make the Most of the ‘Parts’ Portion of Your Business In a previous column https://www. autobodynews.com/index.php/ from-the-desk-of-mike-anderson/ item/20425-from-the-desk-of-mikeanderson-making-the-most-of-theparts-portion-of-your-business.html I shared some best practices shops can use to improve their parts-related processes and profits. Here a few more. Best Practice: Check the OEM information. You might presume that checking OEM collision repair information for each repair is something related to just procedures. But it also plays a role in streamlining your parts processes as well. One way in particular: Identifying any non-reusable or one-time-use parts that need to be on your estimate and parts order. We’re not just talking about clips and fasteners. On some vehicles, there are interior or exterior trim pieces that are one-time-use, as well as some suspension or supplemental restraint system parts. It’s important to know that while the estimating systems are doing a better job of identifying all one-timeuse parts, those systems—nor even the OEM electronic parts catalogs— identify all of them. The only way to make sure you are aware of all of them is to read the OEM repair information. Not all of the automakers identify one-time-use parts in the same way. Toyota/Lexus, for example, uses a black dot to indicate something is a non-reusable part. Nissan/Infiniti uses a black dot with a white X; sometimes these parts are color-coded in the automaker’s documentation. Mazda uses a white “R,” Subaru uses a star and Ford uses a symbol of a trash can to signal something is a one-time-use part. There are other automakers, such as BMW, General Motors and Porsche, that currently don’t have a symbol, but instead use wording within the procedures to identify one-timeuse parts. It might say, “Remove and replace,” for example, or “Remove and discard,” or “This is a non-reus-
able part.” So you can’t just glance at the OEM repair procedures. Take the time to read them thoroughly. And when you list one-time-use parts on your estimate, include a line note indicating that the OEM has designated it as such. The OEM repair procedures can also alert you about which parts can be repaired and which cannot. Many automakers, for example, say that components of certain strengths of steel should not be repaired, only replaced. The procedures also can designate “if this, then that” statements related to parts. One example might be “If an airbag deploys,” then certain other parts on the vehicle must be replaced, even if they don’t appear damaged. The time to have all this information is up front, so you don’t get into a job and only then discover you didn’t order all the parts the OEM procedures require. Best Practice: Improve the parts information in the estimating systems—for yourself and the rest of the industry. If you determine a part needed as part of a repair wasn’t shown in the estimating system, or if you find some other information gap, like a one-time-use part not being identified in the estimating system, don’t just order the part and move on. Contribute to the solution! It’s easy: Visit the Database Enhancement Gateway (www.DEGweb. org) and submit an inquiry. It’s a quick process, particularly after you’ve done it a few times. The DEG will reach out to the estimating system provider, which in turn will research whether information was indeed missing or inaccurate, and if so, correct it. That may well help you in the future, as well as help all the other shops working on that make and model of vehicle. If we all work together on this, we can help make the estimating databases more complete. Some may argue you shouldn’t have to do that,
given what shops spend on the estimating system. But at the end of the day, complaining does not solve the problem. By taking the time to submit inquires to the DEG, you help control your own destiny. As Mike Jones of Discover Leadership says, “You can be the wind or the flag. The wind dictates which way the flag blows. The flag is subject to the wind. Always be the wind.” Best Practice: Maximize efficiency through better parts receiving. Receiving parts might seem the most passive process in your shop: The delivery driver brings in the parts and drops them off. But the best-run shops use some very specific steps related to parts receiving. They are mirror-matching all parts, for example. Take the new part out of the box or packaging, and compare it to the old one to make sure at
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that point in the process the parts for the job are accurate. Given the average body technician generates $100 in gross profit per hour, you don’t want that technician stopping work and spending time to come find you to tell you a part is incorrect or missing. In my previous column, I talked about the value in using an electronic parts ordering system. Some of those systems can help with parts receiving processes as well. Some allow the parts vendor, when fulfilling the order, to electronically push the parts invoice back to your management system to automatically post the invoice for you. We did a survey of more than 400 body shop parts managers, and they said they spend at least 40% or 50% of their time just manually rekeying parts invoices. So if your electronic parts system can stream-
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National Associations
Stacey Phillips is an award-winning freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
with Stacey Phillips
SCRS Open Board Meeting Highlights Include Presentations About Pressing Industry Topics The collision repair industry recent- GM’s ADAS document, information ly had the opportunity to attend the about data privacy and the SCRS Society of Collision Repair Special- award-winning Blueprint Optimizaists (SCRS) open board meeting, held tion Tool (BOT). virtually in July. At the start of the meeting, “The open meeting was for Schulenburg announced SCRS would anyone wishing to learn more about be holding a live electronic vote of the current state of the association’s board members for the first time. activities and pressing industry top- Following the meeting, the winners ics,” said Aaron Schulenburg, ex- were announced. They included the ecutive director. incumbent, Amber Alley of Barsotti’s Open to association members Body and Fender; Tony Adams of and non-members, the meeting in- Weaver’s Auto Center; and John Moscluded updates and presentations ley of Clinton Body Shop. All three will from SCRS staff and comsit on SCRS’s board of direcmittees outlining current tors for the next three years. initiatives. The agenda also “We had five outstanding featured guest presentations candidates,” said Brett Baiand comments from indusley, SCRS chairman of the try colleagues. board. “The wealth of knowl The following is a sumedge that each of them has is John Eck, GM mary of some of the highoff the charts. Whoever wins collision manager lights from the meeting, the election in those three which included a presentation about spots will do a great job.”
Since the start of the pandemic, and industries to help drive the indusSchulenburg said the situation has try forward. These include notable impacted every one of its member groups such as the American Society businesses. As a result, the organiza- of Association Executives, the U.S. tion has strived to offer guidance and Chamber of Commerce and the Naassistance to members. tional Federation of Independent Busi “It certainly has been ness, as well as newly-formed something that has taken a coalitions like the America’s significant amount of focus,” Recovery Fund Coalition. he said. “We all feel fortu“We are working to idennate that SCRS has a role of tify ways to help the small support for its members and businesses we represent and we have taken a lot of great the information we could Brett Bailey, SCRS bring to the marketplace,” pride in doing that.” chairman During his executive he said. director’s report, Schulenburg shared During the open board meeting, some of the COVID-19 resources the John Eck, collision manager at GM, organization provides on the SCRS and Chris Blackmore, GM program website (https://scrs.com/covid19-re- manager, shared information about sources), which includes information GM’s Advanced Driver Assistance about workplace preparation and Systems (ADAS) support document and post-collision inspection. health, and financial aid and relief. The four-part ADAS document He also mentioned the organization’s involvement with other entities outlines the answers to questions that
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aros at th in F syste catio calib pres ADA viat loca calib men avai mati docu www tech tems colli men sion vehi been cess er O GM
arose as a result of GM’s attendance He outlined GM’s draft concept customers. Next, he said companies at the VeriFacts Automotive summit in regard to post-collision inspection, should evaluate their solution partin February. The sections include which includes the steps for visual ners. This includes asking where the system description, component lo- inspections and affirming diagnos- data is stored, who has access to it cation, calibration and slow tics. If approved, a final doc- and how it is transferred. calibration. ument will be available to Lauer recommended leveraging “Several in the industry the industry with details and data storage providers for multiple solutions and carefully reviewing all pressed us to help identify photos. ADAS terminology, abbreSchulenburg said SCRS agreements that require data sharing. viations and component fields numerous concerns “You want to make sure that locations as well as how to from members in regard to the right security wording and legal Chris Blackmore, GM data privacy. documentation is in place in all those calibrate,” said Eck. program manager This technical docu“Data protection is a very agreements to not only protect your ment, Document ID #5577683, is important issue right now,” he said. collision center, but all the vendors you available with GM Service Infor- “We believe that electronic commerce work with, the customer and the data provider,” he said. mation (SI) and also as a free PDF needs to take place, but we He advised shops to look document on GM’s website: https:// should be able to count on the at what he referred to as sewww.genuine gmparts.com/pdf/ companies that we are workcurity detection and response techinfo/gm-driver -assistance-sys- ing with that it takes place capabilities. tems-aid.pdf. responsibly.” Blackmore then talked about GM’s He then introduced “You want to work with collision inspection process. Brandon Lauer, vice president partners who are proactively “We recognized that the require- of business development and Brandon Lauer, vice looking to ensure that there ments process we laid out for a colli- client experience at Claim- president of business is nothing egregious taking development and sion are extremely labor-intensive and sCorp., who talked about the place, data is always being client experience for vehicle invasive,” he said. “We’ve proactive steps businesses can protected, and providers ClaimsCorp. have a security officer in been working on reviewing that pro- take in regard to data privacy. Lauer offered tips on how shops place or are audited by a third-party cess and document since January.” This involves talking to oth- can protect their businesses. First, he organization to make sure data secuer OEMs and working closely with stressed the importance of always ask- rity is the No. 1 priority,” he said. He then offered recommendations GM’s internal engineering team. ing for consent and authorization from
on what to look for in a security partner: ▪ Third-party certification ▪ Annual investment in enhanced security ▪ Storage solutions that abide by GDP laws ▪ Team members dedicated to security ▪ Full transparency of data usage ▪ Deletion practices ▪ Auto Claims Economy industry knowledge ▪ Strong data transfer and protection processes ▪ Data usage agreements At the close of the meeting, Schulenburg shared information about the award-winning SCRS Blueprint Optimization Tool (BOT), powered by NuGen IT, an OEC company. “We worked with NuGen IT due to their tremendous development resources and shared vision in what we could accomplish with the BOT,” said Schulenburg. The BOT was the recipient of a 2020 SEMA New Product award and See Meeting Highlights, Page 60
autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 45
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YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR.
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©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. 46 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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with Victoria Antonelli
In Reverse with Gary Ledoux
Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com
The Advent of the Computer Age In January 1980, BYTE Magazine The mini-computer was then announced in an editorial “the era of hooked up to a telephone line, a call off-the-shelf personal computers has made to one of 19 IBM computers arrived.” spread around the country. Two and a with Gary Ledouxhalf minutes later, the estimate printTandy (RadioShack) and Apple had already been selling computers ed out on a dedicated printer at the for more than a year and the soon- body shop. to-be ubiquitous IBM PC, which The cost of doing all that was would set the standard for some time about $10 per estimate plus the cost to come, would be introduced in Au- of the call—if it had to be long disgust 1981. Individuals’ lives and the tance. Most calls were said to be lobusiness world at large would soon cal. be changed forever. with Stacey Phillips ADP also entered the field in Beginning around 1982, a lot mid-1984 with the introduction of of ink was spent within the collision “Tele-Estimating,” a computerized industry trade magazines addressing estimating system handled over the computerization and how and why phone allowing a shop to use comthe industry should embrace this new puterized estimating without having medium. to buy the computer. One collision industry maga“Simply call a special toll-free with Attanasio zine noted, “As we moveEd through the number and read off the damage ‘80s, shop owners around the coun- codes from a completed AUDATEX try are discovering a new tool for get- worksheet, and within minutes your ting and keeping a competitive edge: estimate is processed, printed and computers. If you’ve never taken a distributed.” look at these at these smart machines, A spot survey conducted by a you’re in for a pleasant surprise.” The trade magazine and published in Dearticle went on to explain the differ- cember 1982 indicated that of 600 with Bruce Roistacher ence between hardware and the new body shops surveyed across the counemerging world of software. try, 101—17%—had a computer sysAnother trade magazine arti- tem. Of those that did not have one, cle looked at three different comput- 20% said they were considering buyer systems designed specifically for ing one, while 80% said they would body shops. One was called Auto Re- not consider buying one. Then as now, pair Management Systems. One was change comes hard to the collision remade by Kennedy Communications pair industry. with Gary Ledoux One respondent noted that he had and sold for $29,900; that’s $79,600 in 2019 dollars. And one was produced purchased a computer system to help by Triad Systems of Sunnyvale, CA. run his shop but the monthly cost of The magazine devoted an entire maintaining the system far exceeded article to the ADP/Audatex estimat- its usefulness. ing system and how easy and effiIn January 1985, a trade magacient it was. Another article asked “Is zine ad for Digitree Systems of BoulYour Shop Ready For A Computer der, CO, offered a complete body System” and provided a 15-question shop management software system check list to help the reader decide. including estimates, job costing, reBut the latest in technology came pair orders and full accounting with from a company with called Mitchelmatix. payroll for $1,995. Together with a Stacey Phillips A trade magazine article noted shop computer of the purchaser’s choice, estimators loved their estimating man- a shop could computerize for less ual but now Mitchellmatix was going than $5,000 ($11,946 in 2019 dolto make them easier to use by inserting lars.) a bar code into the book. The bar code By mid-1986, a trade magazine was then read when a computerized article noted, “Like it or not, we are wand was passed over the strip by now living in the computer age. For the estimator. many years, computers have been
OE Shop Certification
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Shop Management
used for various business applications and we find them more and more in each aspect of our daily lives. You probably can’t remember when your monthly department store bill was not prepared by a computer. In fact, if all the computers now in use were suddenly shut down the whole world would be thrown into chaos.” Despite this obvious statement, many shops had still not computerized. The article was followed by an ad for Team Management Network computers featuring a “portable computer,” forerunner to the laptop, which could be brought out to the car to complete an estimate, then reconnected to the main computer system. According to an article published in the fall of 1986, 32% of all body shops would seriously consider installing a computer system within the next year. That means 20,000
shop owners were asking, “What can a computer do for my business?” The article suggests the No. 1 priority for shop owners should be computerized job costing. A January 1987 article about computerized estimating systems noted, “Although the traditional role of computers in business tends to be in bookkeeping and finance, a properly written estimating program can provide the starting point for a whole new level of efficiency and profitability.” A three-page spread in a January 1987 trade magazine offered short descriptions of computerized estimating systems and body shop management computer systems from 16 companies, including S & S Development Systems, Tru-Time Systems, Inc., and Keep It Simple Software and Cad Design Systems. It seemed everyone and their See Computer Age, Page 55
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48 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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Mark Olson: Get it Right the First Time by Chasidy Rae Sisk
This year’s Collision P.R.E.P. program commenced Aug. 6 with “Documenting for Repair Process and Liability, and Building a Bulletproof File,” presented by Mark Olson of VECO Experts. Hosted by the Washington Metropolitan Auto Body Association (WMABA), Collision P.R.E.P. is the educational portion of AASP/NJ’s Virtual 2020 NORTHEAST Automotive Services Show. “There’s a much bigger picture than what you’re probably already doing in your shop,” Olson began. “You’ve got to get it right the first time. You don’t have a second chance to get the right information. As soon as the car enters your shop, you need to start taking pictures of the vehicle and the condition it’s in—once you tear it down, you won’t be able to do this. Pictures are cheap and easy, so there’s no excuse for not taking tons of pictures, even if you don’t need all of them.” Looking at a Nissan Sentra with
want this to be a law—if you repair that bumper instead of replacing it, you’ve broken the law and are subject to criminal penalties.” After stressing the importance of proper OEM repairs, Olson shared VECO Experts’ 10-step repair process. “If you follow those 10 things on every vehicle every time, you’ll have a predictable outcome in your facility, but most shops are only doing 40% of that right,” Olson said. “You are going to get shot at. Can your shop withstand it? Are your files bulletproof?” At some point, all shops experience an issue with a Mark Olson presents last year’s version of the Bulletproof vehicle, and what is said and File during NORTHEAST 2019 done next can have a huge difficult than in the past and how impact on the outcome. Olson advised shops owners many support legislation for OEM pull the file before trying to answer procedures being made into law. “Collision repair has never been anything from memory and take deeasier,” Olson said. “It has changed tailed notes of the customer’s comand gotten easier, but be careful what plaints, seeking counsel if it’s major. The issue should be commuyou wish for legislatively. You don’t scratches on the left rear side of the bumper cover, Olson pointed at the Nissan position statement, which dictates the part must be replaced with OEM parts. Olson asked attendees if they think collision repair is getting more
nicated to a person of power, who is able to make financial decisions, and then, “If you can easily resolve the issue with a re-repair, do it. Even if you think you’re OK, many shops that try to deny small problems cause the customer to hire experts who will find much larger concerns. When this happens, there is a 99% chance that buying the vehicle will be your best option.” To build a bulletproof file, shops must keep detailed records, including an authorization form, authorization to scan if required and a vehicle check-in report at a minimum. “Forms are very important, but no form is going to fit your shop perfectly, so find a form that is close to meeting your needs and modify it, engaging an attorney if needed,” Olson suggested. “Make sure your forms are fully completed; if you don’t use a part of the form, revise it, because an incomplete form will work against you in court.” All adjusters, inspectors and customers who enter the shop need to sign a release and comply with PPE
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50 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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requirements, and shops must keep an accurate running log of all notes, including the date/time and the name of the individual logging the entry. Techs should be discouraged from using their personal devices to enter these notes, since their device could be subpoenaed in a trial. Taking photos of everything is vital to building a bulletproof file, beginning with intake and proceeding through each step of the repair process until the vehicle is ready for delivery. “Use all available resources to document the entire process; take pictures of everything!” Olson said. “The biggest problem you’re going to have when you start documenting everything, as you should, is making sure that you’re documenting everything the way it should be—your file can prove that you’re doing it wrong too, so make sure you’re doing it right. Else, your file becomes the bullet instead of being bulletproof.” Product documentation is also a crucial component to strengthening a file. Anything specified by the OEM should be documented using photo evidence, and a copy of the paint
mixing label should be included in the file. It’s also important to note adhesives and urethanes have expiration dates, so including proof they weren’t expired at the time of use is beneficial. When it comes to quality control forms and systems, Olson urged, “Do not make it too complicated; keep it simple. QC can involve a stage check or a peer review. We recommend doing it by stage or grouping, but there are many possible variations to the process, so you need to customize it to your shop.” Using an effective documentation system allows shop owners and managers to “ensure technicians are in fact following OEM repair procedures through photos and documentation providing proof of compliance, and confirm technicians are pre-scanning and post-scanning every vehicle with the ability to store valuable diagnostics,” Olson said. “You can also audit submissions by repair, line item, or labor category, and approve or reassign based on the results,” he said. “Finally, some programs, such as the Assured Performance Network, allow you to
document and print a data-driven certificate of authenticity for technicians that used OEM repair procedures on 100% of the applicable line items during the repair. We highly encourage shops to use a program that offers this feature. “No matter how you fixed the car, it must be documented that way,” Olson added. “If you use a price-matching program, the final repair order that the customer receives, which you keep in your final file, must say it is OEM. If there are customary charges that you charge customers, and choose not to charge it for whatever reason, simply put in a zero or something indicating you did it and didn’t charge for it. “This goes for all not-included items, such as test drives, seat belt, safety checks, vehicle washing and more. All lines on the estimate reflect the repair done to the car. If it is not listed, it did not happen.” Quoting Rex Dunn, Olson said, “‘The only difference between two repairs is what you choose to do for free---there is only one way to repair a vehicle’—the way the OEM says. “If something goes wrong with the repair and the customer calls in
someone like me, Mike Anderson, Kristen Felder or Larry Montanez, the first thing we’ll ask for is your file, which is all we should need to know everything that took place on that vehicle,” Olson said. “Your file is your best defense in any legal situation, but if it’s incomplete, you’ll likely lose in a legal battle, and that could cost you a lot of money, your business, your assets and your mental health.” Regarding data storage, Olson discouraged shops from using estimating systems as the only source for storing files since access to that data may be lost if management systems are changed. It’s also key to know how long the data is stored. “You need a place to store your data that is yours and yours alone,” he said. After briefly touching on third party agreements and garage keepers’ insurance, Olson summed up the basic file elements to have documented: • All communications, internal and external. • All repairs documented following OEM – photos and documents. See Mark Olson, Page 59
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with Stacey Phillips
Techs of the Future with Stacey Phillips
Stacey Phillips is an award-winning freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
The Importance of Creating Lifelong Learners and Implementing Hands-on Efficiency Training Over a year ago, Jeff Smith, a collision repair instructor at the Northeast Arkansas Career and Technical Center, reached out to me about the overwhelming shortage of technicians. As a result of our conversation, I initiated a new column for Autobody News magazine called Solving the Tech Shortage, which has since received an award. At the time, shop owners and managers faced a shared challenge: how and where to find new technicians. My intent was to come up ways for the industry to discuss ideas on how to solve this problem. Since then, our industry has encountered new unexpected challenges due to the pandemic. In light of the recent changes in shops across the country, I felt it was appropriate to rename the column to “Add name of column” and focus on ways body shops can help recruit, develop and retain technicians for the future. I encourage you to reach out to me with any ideas you would like to share with others in this forum. Workforce development and technician recruitment remain a top priority for repair shops across the country. Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), said there are some unique initiatives currently taking place in the industry. “The reality is the gap we have is far too wide for any one program to simply wipe away,” said Schulenburg. “The more opportunities there are to pull people into this industry, bring them up to speed with what they need and get them ready to be producing on the shop floor, the more the industry will benefit.” During the SCRS open board meeting in July, the association invited two educators from Ranken Technical College and Matrix Trade Institute to share information about the programs they have established and how they are making a difference. Creating Lifelong Learners at Ranken Technical College
A few years ago, John Helterbrand recognized many of the students graduating from the automotive collision repair program at Ranken Technical College in Missouri couldn’t find a
programs and wanted to learn more “The idea behind the automoabout how they keep students moti- tive program is to make somebody vated. productive on Day One,” said Hel “The OEMs do a very good job terbrand. This may include teaching of what I call ‘culture experience,’” students about tear down methods, he said. detailing or R&I. Industry training A pilot project was then is provided from organizations such initiated at Ranken College I-CAR, SP/2 and ALLDATA. using the best practices A set of tools is also given to from the OEM programs. It each of the students. consists of five semesters of “If we are going to put our learning, which includes a students to work, we need to make semester of aluminum train- sure they have tools,” said Heltering. brand. “We don’t want them digAs part of Ranken’s pro- ging in other people’s toolboxes. gram, students are paired with They need to have something they a mentor. Together, they feel is theirs.” follow an operator game In addition, students learn about John Helterbrand, right, department chair of the automoplan, outlined in a booklet shop culture and develop interviewtive collision repair program at Ranken Technical College, with students Spencer Woodall and Robert Burkett that walks them through the ing skills. The goal is to find a place learning process. The intent for them to work in the industry afjob. Although they had successful- is to keep track of what is accom- ter the first eight weeks of hands-on ly earned their associate’s degree, plished, so neither the mentor nor training. were eager to work and had a good the student becomes overwhelmed. Helterbrand said Ranken Techniwork ethic, the department chair of the program said they weren’t being Competitive Prices and hired by the collision repair industry. Dedicated Wholesale Staff! Discounts Always Find all your Genuine Kia Parts With Us “As an educator, that’s a big Fast, Free Daily Delivery problem,” said Helterbrand. to MA and RI As a result, he set out to make some changes. Helterbrand reached out to the school’s advisory board, and then talked to students to learn about their concerns. He soon found retention was one of the main issues. fmedeiros@kiaofattleboro.com “Students felt they didn’t fit into www.kiaofattleboro.com a shop’s culture or were making a Parts Hours difference; they were essentially lost Kia of Attleboro M, W 8am-8pm in the business model,” said HelterPARTS 508-761-9300 FAX 508-761-0768 TU, TH, F 8am-5pm 795 Newport Ave. • South Attleboro, MA 02703 SAT 8am-4pm brand. “We’re all so busy doing processes, we forget we’re people.” Worst of all, according to HelGenuine OEM Parts for the Courtesy Mitsubishi terbrand, he found employers were Perfect Fit Every Time FAX 508-761-4285 PARTS 508-761-9700 often shortsighted and convincing Find all your On-line 16 Scott St. • South Attleboro, MA 02703 students they didn’t need an educaMitsubishi Parts With Us tion. “For a student, who has low self esteem, that’s detrimental for their success because they always feel like www.drivecourtesy.com they aren’t completing something,” wbrown@courtesy-mitsu.com said Helterbrand. Parts Specialist: Helterbrand also reached out to sean@mitsubishima.com several OEMS in the industry with Parts Hours internships programs, including ToyCommitted to Excellence! M-F 8am-5pm ota, Honda, GM and Ford. He found Find all your Genuine Mitsubishi Parts With Us SAT 8:30am-2pm retention was very high within these
52 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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cal College and other accredited technical colleges and high schools must ensure students are receiving high quality education so they are marketable when they graduate. “The industry plays a very big role in this,” said Helterbrand. “We
Two students at Matrix Trade Institute mapping a vehicle with one of the institute’s blueprint/ technical writing stations
have to be able to help students prepare themselves for the industry.” Working together, his hope is they create lifelong learners who aspire to be part of the industry for the long term. More information about the pilot program is expected to be announced in late summer 2020.
Implementing Hands-on Efficiency Training at Matrix Trade Institute Dustin Peugeot, CEO and co-founder of the Matrix Trade Institute, said it’s critical to look at workforce development and technician training through the lens of a student. “If we forget that, whatever kind of education or training we provide won’t resonate with the student,” he said. The Matrix Trade Institute was established two years ago in Beachwood, OH, and is currently expanding to Detroit. “We’re the new kid on the block but fortunately, we have done more things right than wrong and built some nice momentum,” he said. Peugeot said that too often, employers find that entry-level technicians don’t have the proper training or skills needed to be effective and productive on the shop floor. As a result, Matrix assists employers retain and grow the next generation of technicians. Peugeot said the goal is to create an environment where shops ultimately hire fewer employees, by boosting productivity and creating a cohesive culture.
d T S the roa R A P n I N E back o U G E N t them
e a i og t t i f K d
n ty a i l a Qu
“We believe the best recruiting model is a great retention model,” said Peugeot. Their focus is to “revitalize, retain and recruit.”
Nico is a student at Matrix Trade Institute
“We all fight that battle of trying to get the best and brightest to feel good about entering the trades,” said Peugeot. “We have to put forth the
effort to make that as appealing as possible, not only for trainees, but also for the people in their lives who need to support and be proud of their decision.” He stressed the importance of investing time and energy into the development of current employees. The first step is talking to employers about the various ways they can encourage their teams to become more involved in their own development and plot a career path, based on training, education and growth. By taking this approach, Peugeot said employees will never have a reason to leave the business, because they are being provided with all of the skills required to do their jobs effectively. The next step is revitalizing employees by investing in their skills and growth, offering specific skills training and increasing production. Ultimately, Peugeot said this allows shops to recruit differently and find employees to focus on specific functions that work well in the business and increase throughput. For shop owners looking to find See Lifelong Learners, Page 59
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• Team of Kia Wholesale Parts Specialists • Competitive discounts - Extensive inventory We’ll help you save time, increase profits and satisfy your customers Parts Dept.
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northstarkiany.com 46-05 Northern Blvd., Long Island City, NY 11101 54 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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Computer Age brother was jumping on the computer bandwagon. Many systems were designed to run on an IBM XT or AT computer system or Tandy system. Some did not require the hardware system to have its own hard drive. Making the right choice was very confusing, especially for those people with no background or knowledge of the computer world. And those who did have some knowledge were quick to point out the system purchased today could be obsolete in a year, further scaring shop owners. By January 1988, many shops had accepted the inevitable and computerized their shops, but many were still on the fence. Those that made the leap found, much to their delight, learning the management programs was not that difficult. And once mastered, shops didn’t know how they lived without computerization. Computer systems of the period could have included not only a shop management system but also estimating software. At that time, more
than 20 different brands of collision shop-related software were available, including shop management and estimating systems. One computer advocate noted, however, that most shop owners bought a computer for the wrong reason—to write estimates. He noted the real value in a computer was job costing—knowing how much money was made on each individual job. The concept of job costing would take some time to sink in. An early 1988 ad for Digitree computers noted the popular computer was now being shipped with the “Mitchell Connection,” an automatic estimating program containing the entire text of the Mitchell crash estimating guides The ad noted the Digitree program required an IBM or compatible computer with MS DOS 3.1, 640K RAM and a 40MB hard drive, pretty standard stuff for the times. A 40MB hard drive! Imagine! More space than one will ever use! The 40 MB hard drive was obsolete in a fairly short time, causing people to buy compression programs for their software, making the entire system unstable.
Despite the burgeoning computer industry, a trade magazine article in the summer of 1988 discussed various uses for a new tool in the body shop—the fax machine, ideal for, among other things, placing parts orders. The article noted, “The fax machine is here to stay, and most successful collision shops will have fax machines in use in the near future.” The fax concept had been around for years but only commercially acceptable and viable since the early 1980s. By the end of the decade, computers equipped with the proper software could create an estimate, job costing, create work orders, order parts, create estimate supplements, analyze data, log technicians on and off a job, create technician progress reports, maintain parts and materials inventory, create work flow, perform accounting procedures and do word processing.
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More Best Practices line that, you’ve greatly reduced time spent on a process for which your shop can’t bill. I can’t write about parts without mentioning one of the mistakes I see some dealership management make. At some dealerships, the body shop isn’t given financial credit for parts sales. I think this a bad idea for several reasons. I think it reduces the likelihood that someone within that shop is responsible for following up on parts credits, for example. It also could lead to less than ideal repair-vs.-replace decisions; if those making parts decisions are paid on commission, and the shop gets no credit for a part sale, they may choose to repair a part when replacing would be the better decision for the repair. Do you have questions related to parts? Want more ideas and best practices? Reach out to me, and check out our parts-related videos when you subscribe to our free YouTube channel (https://tinyurl.com/AdviceYouTube).
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888-809-5648 413-786-4474 413-789-3715 Fax
BALTIMORE
Hours: M-F 7-5:30; Sat 8-3 www.packernorrisparts.com
AGAWAM
Hours: M-W 7-6; Th 7-8; F 7-5; Sat 8-4 www.saratford.net
FLEMINGTON
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Malouf Ford Lincoln Mercury NORTH BRUNSWICK
800-959-6256 732-951-1429 Fax
Hours: M-F 8-5; Sat 8-1 fordparts@malouf.com www.maloufparts.com
SUSSEX
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PENNSYLVANIA
New Holland Ford NEW HOLLAND
800-367-3232 717-354-9633 Fax Hours: M-F 7-5:30
autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 55
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National News
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
CCC Photo Estimates and AI-Supported Claims Spike in Response to COVID-19 more than doubled from January to April, as carriers are accelerating use and adoption of digital tools in response to COVID-19. Sisk“Industry use of photos for method of inspection has been growing and insurers are seeing benefit to both cycle time and customer satisfaction,” said Susanna Gotsch, director, industry analyst for CCC. “The recent spike is likely indicative of a with Chasidy Rae new Sisknormal as we’re seeing greater use of digital by carriers that have been in market and new insurers coming online with digital solutions.” CCC also reports a similar trend in estimates written using CCC® Smart Estimate, the world’s first AIguided estimating solution. Smart at a record claims have expanded Estimate applies AI and estimating with Victoria Antonelli pace exceeding double-digit growth logic to photos captured with Quick through May of this year. Estimate. Many shops that used to think of CCC’s Senior Vice President of photo estimates as an option are now Product Management Jason Verlen making them the norm for a wide has extensive experience in the softrange of reasons. ware industry, with specific experti CCC’s statistics show the rapid se in product management, big data adoption of digital technology is in and analytics. Before joining CCC with Gary Ledoux direct response to social distancing in May 2015, Verlen spent five years and work-from-home protocols initi- at IBM, where he was VP of big data ated to combat COVID-19. The com- analytics. “The use of AI-supported claims has accelerated from steady adoption by industry leaders to a massive increase in use and adoption by the with Gary Ledouxindustry at large,” Verlen said. “Our data, and the conversations we are having with customers, strongly suggests that this point in time will mark a digital revolution in claims.” “We’re seeing every industry embracing new technologies, rethinCCC’s Senior Vice President of Product Manageking how they work, and focusing ment Jason Verlen reported the usage of CCC® with Stacey Quick Estimate, the company’s mobile photoPhillips on personalizing experiences for estimating solution, has more than doubled their customers. The insurance infrom January to April of this year in response dustry is no different.” to COVID-19 By creating an easy-to-use syspany’s industry data indicates the in- tem for customers, insurance adsurance industry recently surpassed 3 justers and shops alike, Verlen has million estimates initiated leveraging seen all three parties using more and photo technology, sinceEd tracking be- more photo estimates than before. with Attanasio gan in 2018. “The adoption rate was already The company also reports the going up, but then the pandemic turpercentage of claims processed ned it into a complete transformation,” through CCC® Quick Estimate, its he said. “Shops are more concerned mobile photo estimating solution, now about safety for its customers At any point, a piece of technology can go from being discretionary to essential, and in many cases, this is what’s happening now with photo with Chasidy Rae estimating within the collision repair industry. Recently, CCC Information Services, Inc. (CCC) reported photo estimates and AI-supported insurance
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and employees for obvious reasons. More and more insurers are asking for our mobile photo estimating solution and shops realize that they’re
“It’s providing a vastly better and safer consumer experience and we’re getting more and more users every month,” he said. “We know from history that people will use technology to adapt for whatever reason, and then don’t change back. The pandemic has made photo estimating systems more relevant than ever before and shops that were reluctant to use them are now embracing this technology.” Another reason CCC’s photo estimating is quickly CCC’s statistics show the rapid adoption of digital technology gaining in popularity is the is in direct response to social distancing and work-fromfact the technology is better home protocols initiated to combat COVID-19 and the public is more comgoing to get more work by making it fortable using it on a daily basis. part of their processes.” “There was a little friction two to Those who are adopting the sys- three years ago because the first getem now will likely use it for the long neration of any technology is always going to be inferior to the technology term. Verlen said.
In Reverse
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The following dealers proudly stock genuine parts for your Nissan or Infiniti repairs.
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Bob Bell Nissan
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800-638-4967
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Baltimore
(410) 282-2432 (410) 285-1376 Fax M-F 7-7, Sat. 8-5 smelson@bobbell.com
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Shop Management
GENUINE SERVICE & PARTS
Auto Body Attorney
56 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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Audi Part Professionals are experts on collision parts, replacement components and mechanical items.
Audi dealers strive to make you an Audi Genuine Parts fan. Order Audi Genuine Parts from these select dealers. MARYLAND Audi Silver Spring Silver Spring
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MASSACHUSETTS Audi Shrewsbury Shrewsbury
888.751.7214 508.581.5880 508.845.1642 Fax M-F 7:30am-5pm audiwholesaleparts@mcgovernauto.com
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201.408.2085 201.223.7842 Fax M-F 7am-6pm Sat 8am-2pm jpooler@bbmcc.com
Bell Audi Edison
732.396.9630 732.396.9090 Fax M-F 8am-5pm Sat 8am-4pm dmcsorley@bellaudi.com
DCH Millburn Audi Maplewood
800.553.9250 973.762.2381 Fax M-F 7:30am-6pm Sat 7:30am-4pm ddipalma@dchusa.com www.dchmillburnaudi.com
Flemington Audi Flemington
877.657-2787 908.782-1795 Fax M-F 7:30am-5pm Sat 8am-12pm www.njparts.com
Paul Miller Audi Parsippany
800.356.4553 973.575.7793 973.575.5911 Fax M-F 8am-6pm Sat 8am-5pm www.paulmilleraudi.com Audiparts@paulmiller.com
NEW YORK Audi Albany Latham
518.783.5554 518.213.8182 M-Sat 7:30am-6pm audiparts@audialbany.com
Audi Southampton Southampton
631.204.2565 Tue-Sat 8am-5pm parts@audisouthampton.com www.audisouthampton.com
Audi Brooklyn of Bram Wholesale Parts Network 866.770.5999 718.392.6570 Fax M-F 7:30am-5:30pm parts@lexusofqueens.com
Audi Queens Flushing
929.297.0788 917.809.6442 Fax M-Sat 8am-5pm parts@audiqueens.com
Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers and are supported by a nationwide network of distribution centers to help ensure non-stocked parts are delivered the next day.
autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 57
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it replaces,” Verlen said. “One of the main issues back then was the quality of digital cameras in cellphones, but you look at them now and they are amazing. The enhanced camera capabilities lead to greater clarity, and we’ve applied technology to guide users in taking the right pictures, so picture accuracy has improved, adding a whole new level of credibility, which is so important, especially for shops that are using it for the first time.” CCC offers the industry’s only end-to-end digital auto insurance experience, from telematics data used by insurers for policy quotes and premium discounts, to incident management, where telematics can be used to alert an insurance carrier after a crash event, to photo- and AI-powered applications for repair, total loss and casualty claims management. Using mobile, AI and IoT together with its industry platform, CCC connects the broader auto insurance ecosystem supporting more than $100 billion in transactions each year. In June, CCC announced the availability of CCC® Quick View, a photo-guided vehicle inspection so-
lution. Quick View enables auto underwriters to efficiently and affordably complete vehicle inspections virtually by offering policyholders a mobile app to easily capture vehicle photos.
When CCC’s patented Damage Detection Heatmaps® are applied, shops and insurer can easily assess a vehicle’s condition, including pre-existing damage
Once photos are received, CCC’s proven AI-enabled photo analytics and Damage Detection Heatmaps® are applied, allowing insurers to assess vehicle condition, including the identification of pre-existing damage. Quick View also makes it easy for insurers to assess the presence of custom equipment. Policyholders can capture and share photos at their con-
venience typically in five minutes. Early use of Quick View by a large, national insurer shows marked improvements in cost, speed and the identification of pre-existing damage. Specifically, Quick View reduced costs by 75% over manual inspections, led to 60% of inspections being completed in less than 24 hours and identified pre-existing damage on more than 15% of assessed vehicles. “Insurers are looking to balance the need to understand risk with the ability to efficiently and consistently conduct vehicle inspections,” said Naved Siddique, CCC’s group vice president, insurance services group. “Quick View offers policyholders a guided experience to make photo capture easy, while AI and heatmaps help insurers with their virtual vehicle assessments. “Quick View has additional inherent value as vehicle photos can be integrated with CCC’s claims solutions, making them readily available for review by insurers should a physical damage claim arise in the future,” Siddique said. “We’re excited to apply our mobile, AI and
heatmap capabilities to the inspection process, supporting the broader needs of our insurance customers.” CCC Quick View empowers drivers to carry out photo collection digitally and at their convenience. Insurance carriers can use digital photos to be more productive and effective in determining the condition of a new policyholder’s vehicle. CCC Quick View offers features such as guided photo capture, which enables consumers to receive a Quick View invite, prompting and guiding them through photo collection and submission and geo-coding that verifies where photos were taken, helping identify garage location. It also enables users to take photos that can be integrated with CCC’s claims solutions, making them easily available for comparison if a physical damage claim is initiated under the applicable policy in the future, allowing carriers to potentially mitigate prior damage claims. www.autobodynews.com
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The Right PARTS A PERFECT Fit.
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Maryland
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Glen Burnie 7117 Ritchie Hwy.
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BOB BELL HYUNDAI
410-689-3038 410-766-1275 Fax
Mon-Fri 7:30am - 5:30pm bobbellhyundai.com
Leominster 743 North Main St.
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800-559-9210
Order Genuine Mazda Parts from these Parts Specialists in your area
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Ourisman Mazda Of Rockville
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Mon-Fri 7:30am - 5pm bchwholesale@boch.com 58 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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pecader s.” drin dinsuotos ctive new
ures hich uick ding and verhel-
phoCC’s asily sical the allgate
S t.
Continued from Page 54
Lifelong Learners the next generation of the workforce, Peugeot encourages them to set up their businesses in such a way that they are considered the best landing spot for a recruit, regardless of their education.
Similar to the program at Ranken College, participants receive a tool set and are shown how to organize it. Rather than relying on outdated textbooks, the programs focus on modern technology, such as interactive, game-style learning simulation. They have found this enables individuals to perform, feel valued and
“We’re the new kid on the block but fortunately, we have done more things right than wrong and built some nice momentum,” — Dustin Peugeot “We have to look within before we can start complaining about Millennials or work ethic or people wanting to get into the trade,” he said. Currently, Matrix offers 20-week programs in collision repair and refinish, automotive maintenance and service advisor training, all of which focus on a hands-on efficiency-based curriculum. Students typically intern after the first two or three weeks. Peugeot said students are seen as productive members of the business the first day of an internship.
grow within their internships. The majority of the time, Peugeot said the internships turn into full-time employment. Peugeot said it’s critical to help the industry become a better place to onboard employees and develop employees who work hard, show up on time and want to work. “We can’t blame the students of this generation,” he said. “We have to look within and find out how we can become better employers, recruiters and growers of talent.”
Think Genuine Subaru Parts.
Continued from Page 51
Mark Olson • Quality control forms, intake, pre-delivery and authorizations fully signed. • All blanks on forms filled out or N/A on them. • A checklist of all file items to do a final quality check of file before closing file for storage. • All photos taken of all stages. In closing, Olson shared, “There’s a lot here, and it takes a lot to sink in because it requires a culture shift. This is what VECO does—help you set processes—but the reality is that you don’t need me to do it; it just has to be done. Take baby steps by implementing one or two things at a time. It only takes one problem to put you out of business and destroy everything you’ve worked so hard for!” For more information on VECO Experts, visit http://vecoexperts.com/. The 2020 NORTHEAST Trade Show will be held virtually Aug. 21-23. Using a dedicated link on
the event website (aaspnjnortheast. com), registered attendees will enter their email address and be able to visit exhibitors’ virtual “booths” online, where they can view product information and videos and schedule virtual meetings with vendors. The show hours will mirror the original schedule: 5 to 10 p.m. Friday, Aug. 21; 10 a.m. to 5 p.m. Saturday, Aug. 22; and 10 a.m. to 3 p.m. Sunday, Aug. 23. The next Collision P.R.E.P course will be available Aug. 27 and will feature John Shoemaker of BASF as he presents, “Positioning Your Business for Sustainability Among Constant Change.” Additional courses are scheduled for Sept. 30 and Oct. 22. For more information on the educational opportunities available, or to register, visit wmaba.com/collision prep/.
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MASSACHUSETTS
NEW HAMPSHIRE
Cityside Subaru
Subaru of Keene
Belmont (617) 826-5013 (617) 489-0733 Fax
Mon.-Fri. 7:30-5:30 parts@citysidesubaru.com
Long Automotive Group Framingham (800) 982-2298 (508) 879-1212 Fax
Mon.-Fri. 7:30-5 tschube@longauto.com
Metrowest Subaru LLC Natick (888) 456-2200 (508) 745-2004 (508) 647-1539 Fax
Keene (866) 832-0013 (603) 757-0013 (603) 719-0932 Fax
Mon.-Fri. 7:30-5:30; Sat 7:30-5 ztheodorou@fentonautosales.com NEW JERSEY
Flemington Subaru Flemington (877) 657-2787 (908) 782-1795 Fax
Mon.-Fri. 7:30-5 bseymour@flemington.com www.njparts.com
Mon.-Sat. 7-9 parts@metrowestsubaru.com NEW HAMPSHIRE
Belknap Subaru We’re focused on getting you the Genuine Subaru Parts you need — fast and competitively priced. Put us to the test on your next Subaru repair or service job.
Tilton (800) 358-4029 (603) 729-1300 (603) 729-1301 Fax
Liberty Subaru Emerson (888) 782-9493 (201) 261-3261 Fax
Mon.-Fri. 7:30-6 parts@libertysubaru.com www.libertysubaru.com
Mon., Wed., Fri. 7:30-5 Tue., Thu. 7:30-7; Sat. 9-3 awright@belknapsubaru.com
The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today! autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 59
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Nikola Scores Landmark Order For 2,500 Battery-Electric Garbage Trucks by Mark Kane, Inside EVs
Up to 1,200 cans/charge
Nikola Corporation announced a “landmark” order for 2,500 battery-electric refuse trucks for Republic Services, one of the largest waste collection companies in the U.S. The deal is for a minimum of 2,500 vehicles with an option for up to 5,000 total, which is really two orders of magnitude beyond anything we saw in the U.S. so far. According to the press release, it’s the largest single order in the waste industry. The Nikola Refuse (that’s the name apparently) trucks will be based on the battery-electric Nikola Tre truck for Europe (entire package including batteries, controls, inverters and e-axle). The brief specs show that it will be able to take up to 1,200 cans per charge.
Nikola boss Trevor Milton said sharing the Tre platform will allow Niokola to “drive the cost down for both programs by using the same parts.” With 1,000 HP, the Nikola Refuse is expected to outperform the conventional diesel and natural gas counterparts, as it will be able to go up hills with full loads “without issue.” The plan is to “likely” start onroad tests in early 2022 and full production shortly after with deliveries in 2023. Nikola is to produce both the chassis and body—previously Republic Services was usually forced to buy those things separately. For comparison, the production of Nikola Tre trucks will start in 2021.
Nikola Refuse specs: Up to 150 miles (240 km) of range Up to 720 kWh battery Up to 1,000 HP of power
We thank Inside EVs for reprint permission.
AUTOBODY
Asbury Announces Record Q2 Results Asbury Automotive Group, Inc., one of the largest automotive retail and service companies in the U.S., reported net income for the second quarter 2020 of $49.6 million and adjusted net income (a non-GAAP measure) of $48.7 million. This compares to net income of $54.9 million and adjusted net income of $45.9 million in the prior year quarter. “We delivered a very strong quarter and proved out the resilience and the flexibility of our business model,” said David Hult, Asbury’s president and CEO. “Our focus on gross profit combined with our cost restructuring efforts allowed us to remain pro-active and committed to long term growth by moving forward with acquiring 12 Park Place luxury franchises in the Dallas-Fort Worth market under more favorable terms than the prior agreement,” Hult continued. “With the addition of Park Place, Asbury will be a stronger, more diversified company.” Source: Asbury Automotive Group
Continued from Page 45
Meeting Highlights 2020 SEMA Global Media award. Schulenburg said the windows-based application is an automated version of the Guide to Complete Repair Planning, providing collision repair facilities with an intelligent, easy-to-use estimate analysis tool. “It immediately identifies labor operations, line items and customizable charges that could be overlooked on an estimate,” he explained. “Based on the feedback and insight we’ve received, we’ve identified a very successful utilization of the tool in identifying the opportunities being missed and the financial impact for the end user,” said Pete Tagliapietra, business development leader of NuGen IT. Live demos of the BOT are being held every Wednesday at 2:30 EST. An access code is available on the SCRS website: https://scrs.com/bot/. Visit https://scrs.com/events/ to learn more about the next SCRS open meeting and visit the website for membership information.
Hurricane Isaias Insured Losses Estimated to Top $4.2B in U.S. and Caribbean by Danielle Ling, PropertyCasualty360
Early insured loss estimates for Hurricane Isaias are in days after the storm rocked the East Coast, knocking out power for millions and creating significant property damage from the Carolinas to New York. Isaias became the second hurricane of the season to make landfall in the U.S., touching down Aug. 3 in Ocean Isle Beach, NC, after hitting the Caribbean. Isais previously made landfall in the Dominican Republic as a tropical storm before hitting the Bahamas as a hurricane. On Aug. 10, Karen Clark & Company (KCC) issued an early insured loss estimate for Hurricane Isaias, evaluating losses in both the U.S. and the Caribbean. Based on its hurricane reference models, KCC estimates the insured loss from Hurricane Isaias will be around $4 billion in the U.S. and $200 million in the Caribbean. This estimate includes the privately insured wind and storm surge damage to residential, com-
mercial and industrial properties and automobiles, KCC says and does not include NFIP losses. Isaias created havoc all along the Atlantic coast last week. Strong winds knocked out power for over 3 million residents, leaving millions in New York and New Jersey in the dark for almost a week.
The Category 1 storm made landfall in North Carolina on Aug. 3 with maximum sustained winds of 85 mph, bringing torrential rains, storm surge, damaging winds and tornadoes. The Mid-Atlantic and Northeast recorded wind gusts of 60 to 70 mph as the core of Isaias passed through the region. Downed trees and pow-
er lines caused structural damage to properties, crushed automobiles and disrupted transportation services throughout the affected area for several days. The Caribbean, Puerto Rico, the Dominican Republic and the Bahamas were subjected to powerful winds from Isaias, tearing down trees and power lines. In Puerto Rico, around 350,000 customers lost power and many communication towers were rendered inoperable. Areas of the Bahamas impacted by Isaias were among the regions devastated by Hurricane Dorian last year. Worsening Isaias’s impact in these areas, not all repairs needed after Dorian had been completed by the start of this hurricane season. In the wake of Isaias, roof damage and structural damage from downed trees were observed in commercial and residential buildings, according to KCC’s loss report. We thank PropertyCasualty360 for reprint permission.
THESE DEALERS ARE GENUINE WHOLESALE PARTS SPECIALISTS.
Maine
Downeast Toyota / Scion BREWER
800-432-0220
207-989-4610 Fax M-F 7am-5pm; Sat 7am-4pm partsdepartment@downeasttoyota.com www.downeasttoyota.com
60 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com
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From helpful direction to assistance with your next order of Genuine Volkswagen Collision Parts, our team is well read on ways to make your job easier.
CONNECTICUT
NEW JERSEY
NEW YORK
Curran Volkswagen Stratford
Flemington Volkswagen Flemington
Hudson Valley Volkswagen Wappingers Falls
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MARYLAND Ourisman VW of Rockville Rockville
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Fax: 908-685-1547 M-F 7:30am-5pm; Sat 8am-3pm vwb.parts@openroad.com www.openroadvwparts.com
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Paul Miller Volkswagen Bernardsville
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ARA Takes Summer Road Trip Virtual, Annual Convention to Follow Suit by Chasidy Rae Sisk
The Automotive Recyclers Association (ARA) planned its inaugural ARA Summer Road Trip for July 2325, with the intention of connecting up-and-coming industry leaders with experienced auto recycling veterans through tours of several ARA member facilities. The Road Trip was to be an evolution of the association’s Future Leaders of Automotive Recyclers Educational Summit (FLARES), established in 2018. The tour was scheduled to begin in Chicago, but unfortunately, in the days leading up to it, Chicago Mayor Lori Lightfoot issued an emergency order requiring two weeks of self-quarantine for travelers from 15 different states due to COVID-19 concerns. Although ARA was forced to postpone the Road Trip out of precaution for members’ health and safety, ARA Director of Member Relations Vince Edivan, who had planned to act as host of the trip, was able to safely travel to Chicago, since his home state of Virginia was not on
the restricted list. Edivan took the tour virtual, posting pictures and videos to the organization’s social media accounts to allow would-be attendees to join him for the road trip experience. Edivan began his road trip on July 23 by visiting CAR Auto Recyclers in North Manchester, IN, and Legal Chop Shop in Fort Wayne, IN. Over the following days, he visited Auto Parts City in Gurnee, IL, and Rockford’s Auto Parts in Rockford, IL, as well as Bionic Auto Parts & Sales in Chicago and Northlake Auto Recyclers in Hammond, IN. Edican also dined with the owners of ABC Auto Parts in Riverdale, IL, owned by Jim Watson, ARA past president, and his brother, Joe Watson, current president of the Auto & Truck Recyclers of Illinois (ATRI.) “All locations are either CARand/or Gold Seal-certified automotive recycling facilities, having achieved the top tier of certification for general business practices, environmental and safety issues, and customer service offered by ARA and recognized by the industry,” Edivan shared. “It was a rewarding experience for all,
as the ARA members who graciously agreed to open their doors to their peers were able to still reach the ARA membership at large through videos and postings on ARA’s social media platforms.” Sandy Blalock, executive director of ARA, added, “While the challenges presented by the COVID-19 pandemic made the widely-attended Road Trip unrealistic, ARA was able to adapt and leverage the reach of social media and technology to bring ARA members together and share knowledge. “Overall, it was a great opportunity for ARA to get back out and visit face-to-face with some of our great Illinois and Indiana members, and ARA looks forward to rescheduling the Road Trip as soon as safely possible,” Blalock said. ARA has also made the difficult decision to shift its 77th Annual Convention & Exposition, scheduled for Nov. 11-14, to a completely virtual event. “Ultimately, the health and safety of the membership and staff is our top priority,” Blalock said. “After many discussions, serious consideration,
and with the safety of all attendees at the forefront, we have decided to re-direct all our efforts into transitioning the 77th Annual ARA Convention and Exposition into a virtual conference. We were hopeful that this year’s convention could remain a live event, but the current state of affairs simply presents too much uncertainty and risk at this time.” “For 76 years, the ARA Annual Convention and Exposition has been the gathering place for the professional automotive recycling industry and an incredible place to network, learn and conduct business,” said ARA President Scott Robertson. “ARA is the voice of the professional automotive recycling industry and it is our duty to provide information, education and opportunity to automotive recyclers from around the world—even in the midst of a global pandemic. “Yes, it will look different, but it will still be the extraordinary experience that our attendees have come to expect year after year.” For more information on ARA and the upcoming 77th Annual Convention & Exposition, visit a-r-a.org.
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Webinar Highlights the Importance of OEM Certification by Emmariah Holcomb, glassBYTEs.com
“You’re making the investment today for the return down the line,” said Connor Smith, CARSTAR original equipment manufacturer (OEM) manager, as he began describing the value in auto glass businesses gaining OEM certifications in an industry webinar. The webinar, The Importance of OEM Certification, was hosted Aug. 11 by the Collision Industry Electronic Commerce Association (CIECA) and took a closer look at the long-term benefits available to the industry. Smith shared his insight on why now is the time for businesses to start looking into becoming OEM certified, which certifications are the most beneficial to shops, what the return on investment (ROI) looks like once gaining certifications and what the future of certifications look like. Automotive technology plays a large role in why Smith thinks “now is the time to look into OEM certifications.” During the webinar, Smith
mentioned some of the related challenges associated with newer-model vehicles. “Everyone knows your standard Corolla is more high tech now than it was 10 years ago,” said Smith. “All of the advancements and safety-marketed features makes repairs more challenging, especially when you factor in the
future. He stressed the importance of always having a good relationship with your local dealers. “The first thing you should do is research various certification requirements and other needs,” said Smith. “Be aware that some certifications will require dealer sponsorships—this is why building a relationship with them is key.”
“There’s one consistent thing, the OEs are here and they aren’t going away,” — Connor Smith training. The best way to get OEM certifications of any type is through training.” When it comes to which certification shop owners should consider, Smith had a simple but direct answer: “Business owners should choose the one that they have the most equipment for and that doesn’t need a huge investment to start.” He advised industry business owners to look at their local dealerships and inquire if they need or have a body shop. This, according to Smith, can lead to a possible partnership or sponsorship in the
There were a number of attendees concerned about the ROI associated with gaining specific OEM certifications. Smith responded to their concerns by stating, “This is a long-term game and you should think of this like a 401(k) for your business; it’s wrong to want shortterm gains from these certifications.” Although the cost associated with certifications is high up front, according to Smith, there are several areas for future growth. By choosing this type of investment for your business you could gain
Honda is Asking Office Staff to Work on Assembly Line by Kurt Verlin, The News Wheel
Are you currently waiting on the delivery of a Honda you ordered? When it arrives, it may have been assembled by one of Honda’s accountants. According to a report from local radio station WOSU, white-collar employees at Honda’s plant in Marysville, OH, have been asked to fill in for a rapidly dwindling blue-collar workforce.
Honda is still scrambling to regain normal inventory levels after its factories were shut down between March and May, and it can’t backfill assembly line positions fast enough to recover. “Regardless of whether or not you wanted to, you could be subject to it,” said a Honda employee
who wished to remain anonymous. “They took volunteers first, but my understanding was they didn’t receive many volunteers for this activity, so then they made it mandatory.” WOSU was able to procure an email in which a Marysville general manager outlines why Honda employees working in the research and development, purchasing and accounting departments were requested to work on the factory floor. Chief among the reasons were COVID-19 and the $600 benefit that unemployed workers are receiving until the end of July. Though Honda is taking precautions—daily temperature scans for employees, mandatory masks and the ability to test for COVID-19 on-site—it confirmed it has recently seen an increase in cases across North America. Honda’s anonymous worker believes that whenever an assembly line worker gets sick, they’ve been in contact with 40 other workers. People in the regular assembly line workforce are also absent for other COVID-19-related reasons,
such as finally taking the time to receive elective surgeries they had initially postponed because of the
pandemic, and dealing with the medical, familial and other impacts brought on by the coronavirus. According to Jamie Karl of the Ohio Manufacturers Association, Honda’s Marysville plant already needed workers before the pandemic, which has only made the situation worse. Honda says it is targeting “sometime in August to return to proper staffing levels,” but with the COVID-19 situation only getting worse in the U.S., it is difficult to imagine how the automaker will pull that off. We thank The News Wheel for reprint permission.
additional technicians, marketing support from the OEs, which include an influx of brochures as well as digital content, and more. “The potential for additional techs could also get your business additional cars within the year as well, you just have to keep reminding yourself that it’s a big investment upfront, but a minimal maintenance investment,” Smith said. Going Forward According to Smith, the future of OEM certifications are uncertain, but they are a big factor in the “right now.” “There’s one consistent thing, the OEs are here and they aren’t going away,” said Smith. He also stated these types of certifications are becoming a standard which may lead to issues with future repairs if your shop or technicians aren’t certified. “I honestly think it’s worth the investment to keep your business,” Smith concluded. We thank glassBYTEs.com for reprint permission.
NICB: Thousands Left to Rebuild After Isaias As Hurricane Isaias leaves a path of destruction in its wake, the National Insurance Crime Bureau (NICB) warns everyone as floodwaters recede, many flood-damaged vehicles are left. This provides an opportunity for fraudsters to dupe innocent car buyers. Dishonest dealers can buy flooded vehicles, clean them up and sell them to unsuspecting buyers. Many of these vehicles come on the market after natural disasters. NICB recommends buying from a reputable car dealer; to check the car thoroughly looking for water stains, mildew, sand and silt under the carpets, headliner and behind the dashboard; and to look under the hood for signs of oxidation. Pull back the rubber “boots” around electrical and mechanical connections for these indicators. Ferrous (containing iron) materials will show signs of rust; copper will show a green patina; aluminum and alloys will have a white powder and pitting. Source: NICB
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