Autobody News October 2011 Northeast Edition

Northeast Edition New York New Jersey Pennsylvania Delaware

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YEARS

Fmr. U.S. Sen. Fred D. Thompson and Other Lawyers Allege State Farm Court Fraud in Avery v. State Farm This month a group of lawyers filed a petition accusing State Farm Insurance of defrauding the Illinois Supreme Court by covering up its “extraordinary support of Justice (Lloyd) Karmeier’s campaign and to thwart State Supreme Justice Karmeier’s Court Justice Lloyd Karmeier disqualification” from the Avery v State Farm class-action case originally tried in 1999. Lloyd Karmeier was the successful 2004 Republican candidate in the most expen-

sive state judicial race in U.S. history, which was conducted during the appeal of Avery v State Farm. The petition is based on an investigation by former FBI agent Michael Reece. Reece stated in his affidavit accompanying the petition: “The bottom line of my investigation is that State Farm used the Illinois Civil Justice League to elect Judge Karmeier and Judge Karmeier knew it.”

While there are no hard and fast rules as to when a Justice should recuse himself the U.S. Supreme Court said a WV appelate court judge should have recused himself in a case because he reSee Avery Claims Fraud Page 27

State Insurance Divisions Differ From One Another in Terms of Addressing Repairer Concerns Some Success Stories For decades, shops in many states have taken concerns about auto insurer practices to insurance divisions only quite often to be told, in essence, that such regulators are there to address consumer complaints about insurers, not business-to-business issues.

But even that mission isn’t being met well in some states. When John Doak took the helm of the Oklahoma Insurance Department earlier this See Insurance Commissioners, Page 42

P.O. BOX 1516, CARLSBAD, CA 92018

It’s a common complaint among collision repairers: It’s not worth contacting the state insurance commissioner’s office because they don’t do anything about our complaints.

Yet in recent months, some state insurance commissioners have taken actions cheered by some shops, from radically changing their department’s focus, to issuing bulletins reminding insurers of state laws on steering or other shop-related activities.

What has led to these changes, and does it mean now is a good time

for shops to reassess their interactions with state insurance regulators?

Change Service Requested

by John Yoswick

VOL. 1 ISSUE 7 OCTOBER 2011

www.autobodynews.com

Training Schedule for the NACE/CARS Expo Oct. 5–8 at the Orlando Convention Center The 29th Annual International Autobody Congress & Exposition (NACE) show will take place from October 5 through 8 at the Orange

Weds. October 5

Choose from 28 Training Classes Six Add-On Education Courses ASRW Industry Forum, 4:30 pm

Thurs. October 6

County Convention Center in Orlando, FL. The full schedule consists of 80+ courses/classes, with some repeats. See pages 31 and 40–41.

Fri. October 7

Choose from 25 new Training Classes Muscle Car Network of FL display I-CAR Tech Showcase continues

Sat. October 8

General Session—Chris Brogan, 8:30 Choose from 16 new Training Classes MSO Symposium ASRW Town Hall, Health Care, 3:00 pm Exhibits Open at 10:00 am Exhibits close at 3:00 pm ASRW Welcome Reception See NACE Schedule, Page 31 Choose from 14 new Training Classes

Chip Foose on Bringing it to SEMA

by Chip Foose

The SEMA show (Specialty Equipment Marketing Association) has always been a big part of Foose Design.

I have personally been attending for well over 25 years.

Some of our guys at Foose Design first attended more than 25 years ago.

One of them even Chip Foose went to the very first SEMA show when it was under the bleachers at Dodger Stadium! For the past ten years Foose Design has

featured or unveiled specialty vehicles at SEMA. For three years in a row we built cars live in front of the SEMA audience for TLC’s TV Show Overhaulin’. We were proud in 2005 when Foose Design featured total of 32 Foose Vehicles at SEMA, a record for any designer/fabricator and more than any of the OEM’s that year. So, needless to say, we have history at SEMA. For SEMA 2011 Foose design will be featuring three vehicles. We are currently working feverishly like all of the other shops to make the deadline. This year we will be proudly displaying the following Foose Design vehicles: See Foose Brings It, Page 21

Join Rich Evans, Chip Foose, and Charley Hutton (and many more) at the SEMA and AAPEX shows, November 1-4 in Las Vegas. Highlights: see page 60.

Presorted Standard US Postage PAID Ontario, Ca. Permit No. 1

2 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio - It’s a Perfect Pair: Honda’s Collision Select Program & OEC’s CollisionLink® . . 28 Franklin - The Ethnic Factor in Marketing. . . . 14 Gonzo Weaver - When Something ‘Common’ . .

Turns Out to be Not So Common . . . . . . . 35 Insurance Insider - Let’s Get Some Independent Testing to Move the Parts Battle away from Sandbox Bickering . . . . . . . . . . . . . . . . . . 44 Schroeder - Carrillo and Sons Collision Center —Family Buyout Continues Legacy . . . . . 61 Sisk - Auto Collision Service Underscores its Emphasis on Service . . . . . . . . . . . . . . . . 24 Sisk - Philly’s Nigro’s Auto Body Reaches Out with Own Smart Phone Apps . . . . . . . 56 Williams - What Happens When OEMs Really Support Body Shops . . . . . . . . . . . . . . . . 46 Yoswick - CIC Participants Tell Information Providers to Take the Lead in Chicken-orEgg Dilemma . . . . . . . . . . . . . . . . . . . . . . 18 Yoswick - State Insurance Divisions Differ From One Another in Terms of Addressing Repairer Concerns . . . . . . . . . . . . . . . . . . . 1 Zurada - Independent Contractors in your Auto Body Shop—El Dorado or Fool’s Gold? . . 49 NATIONAL 2011 Dodge Durango Also Gets Top Safety Pick. . . . . . . . . . . . . . . . . . . . . . . . 57 Aftermarket Light Distributor Pleads Guilty, Fined $200K. . . . . . . . . . . . . . . . . . . . . . . 29 AkzoNobel Hosts 18th Annual Acoat Selected® Summer Conference. . . . . . . . . 59 American Automakers Using More Aluminum in Vehicles . . . . . . . . . . . . . . . . . . . . . . . . 58 Audi A6 and VW Passat Earn IIHS Top Safety Picks . . . . . . . . . . . . . . . . . . . . . . . 57 August Sales: Chrysler Up 31%, GM up 18%, Nissan up 19.2% . . . . . . . . . . . . . . . 55 BASF Names Vitor Margaronis Marketing Director for North America Automotive Refinish, OEM, and Industrial/Commercial Transport Systems Business . . . . . . . . . . 29 Cadillac Escalade and Large Pickup Trucks Top List of Thieves’ Favorite Vehicles, Claims Data Show . . . . . . . . . . . . . . . . . . 57 CAFE Targets Touch Off Efforts to Cut Gross Vehicle Weight . . . . . . . . . . . . . . . . . . . . . 59

CAPA Releases Resource for Claims Personnel, Adjusters. . . . . . . . . . . . . . . . . 16 Chip Foose on Bringing it to SEMA . . . . . . . . . 1 Chevy Sonic Earns Top Safety Pick . . . . . . . 57 Chrysler, GM, Forced to Curb Production in Carpet Shortage . . . . . . . . . . . . . . . . . . . . 15 Dick Cheney on TARP: ‘No’ to Automakers, ‘Yes’ to Banks . . . . . . . . . . . . . . . . . . . . . 20 DuPont’s ProfitNet™ System Part of UTI’s CRRT Program . . . . . . . . . . . . . . . . . . . . . 47 Educational Schedule, Structure Released for New MSO Symposium At NACE 2011 . . . 54 Fmr. U.S. Sen. Fred D. Thompson and Other Lawyers Allege State Farm Court Fraud in Avery v. State Farm . . . . . . . . . . . . . . . . . . 1 Ford Motor Company Issues Response Statement to ABPA Crash Test Videos. . . . 51 Garmat USA Holds Sharp Shooter Contest . . 26 Hughes Telematics Partners with AAA Club to Offer In-Drive Connected Services to Members . . . . . . . . . . . . . . . . . . . . . . . . . 55 I-CAR - Three-Dimensional Measuring Equipment—Is it Really Necessary? . . . . . 63 I-CAR Adds Hybrid Electric Vehicle and Alternative Fuel Vehicle Training Programs to Online Catalog . . . . . . . . . . . . . . . . . . . 16 I-CAR Enhances Collision Repair Training at SEMA 2011 . . . . . . . . . . . . . . . . . . . . . . . 43 Insurer Plans to Improve Non-DRP Services with Uploads . . . . . . . . . . . . . . . . . . . . . . 55 Kia Sorentos Recalled for Faulty Front Airbags . 34 Knowledge is Power—Market Forces Control Total Loss Vehicle Valuations but Shops Can Profit from the Right Information . . . . 48 Live Operator Assistance Now Standard Feature of Ford SYNC Services After Trial . 58 MI Company Says Its Electro-Mag Engine gets 1000 mi/charge . . . . . . . . . . . . . . . . 47 More Than 800,000 Vehicles Recalled in U.S. Sept. 12-18 . . . . . . . . . . . . . . . . . . . . . . . 54 National Geographic and IIHS Team Up on Physics Curriculum . . . . . . . . . . . . . . . . . 57 Nearly 311,000 Honda Pilots Recalled for Front Seat Belts . . . . . . . . . . . . . . . . . . . . 34 Non-OEM Lighting Investigation Results in Second Guilty Plea . . . . . . . . . . . . . . . . . 59 Saab to Reorganize Following Bankruptcy Protection . . . . . . . . . . . . . . . . . . . . . . . . 26 Saab Wins Bankruptcy Protection in Sweden . 26 SEMA Serves Up Expanded Repairer Driven Education Sessions and Celebrity Appearances for 2011 . . . . . . . . . . . . . . . 60 Subaru Legacy and Outback Recalled for Windshield Wipers . . . . . . . . . . . . . . . . . . 34 Subaru/Saab Recalls Models for Suspension Corrosion . . . . . . . . . . . . . . . . . . . . . . . . 34 Subarus Recalled Because Moonroof Can Detach . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Supporters Say Driverless Cars Are Close to Reality . . . . . . . . . . . . . . . . . . . . . . . . . . 9 The New, Lean, Customer Centric Auto Body Shop . . . . . . . . . . . . . . . . . . . . . . . . 52 Toyota Says it Will Make Hybrid Parts in the U.S. within 4 years . . . . . . . . . . . . . . . 59 Training Schedule for the NACE/CARS Expo Oct. 5–8 at the Orlando Convention Center . 1 VW Recalls Jettas With Too Long Tailpipes . . 34 VW, Suzuki Partnership on Thin Ice. . . . . . . . 20 Washington, D.C. Has the Worst Drivers According to Allstate . . . . . . . . . . . . . . . . 59 WIN to Continue to Expand NACE Presence With Booth, Education Sessions . . . . . . . . 55

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

Amato Agency . . . . . . . . . . . . . . . . . . . 24 Autoland Scientech . . . . . . . . . . . . . . . 35 Audi Wholesale Parts Dealers . . . . . . . 59 BASF . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 BMW Audi of Turnersville. . . . . . . . . . . 31 BMW Wholesale Parts Dealers . . . . . . 44 Burdick Chevrolet . . . . . . . . . . . . . . . . 36 CARS Cooperative. . . . . . . . . . . . . . . . 10 Cebotech/Tecna. . . . . . . . . . . . . . . . . . 10 Central Avenue Chrysler-Jeep-Dodge . 8 Chief Automotive . . . . . . . . . . . . . . . . . . 9 Circle BMW . . . . . . . . . . . . . . . . . . . . . 20 Classifieds . . . . . . . . . . . . . . . . . . . . . . 63 Cramer Motors. . . . . . . . . . . . . . . . . . . 41 Diamond Standard Parts . . . . . . . . . . . 15 DuPont . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Equalizer Industries . . . . . . . . . . . . . . . 40 Ford Wholesale Parts Dealers . . . . . . . 45 Franklin Sussex Automall . . . . . . . . . . 21 Fred Beans Parts . . . . . . . . . . . . . . . . . 64 Fuccillo Auto Group . . . . . . . . . . . . 22-23 Garmat . . . . . . . . . . . . . . . . . . . . . . . . . 16 Global Finishing Solutions . . . . . . . . . 29 GM Wholesale Parts Dealers. . . . . . . . 47 Goliath Carts . . . . . . . . . . . . . . . . . . . . . 4 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 12-13 Hyundai Wholesale Parts Dealers . . . . 49 Jaguar Wholesale Parts Dealers . . . . . 54 Kia Motors Wholesale Parts Dealers . . 46 Kia of West Chester . . . . . . . . . . . . . . . . 6 Koeppel VW-Mazda . . . . . . . . . . . . . . . 26

Serving New York, New Jersey, Pennsylvania, Delaware and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL AASP of New Jersey Reaches Out to Members Affected by Hurricane Irene . . . . . . . . . . . 15 Allstate Reports $500M in Losses from Hurricane Irene, July and August Losses Top $865M . . . . . . . . . . . . . . . . . . . . . . . 60 Dealers Along the East Coast Are Busy Recovering from Irene . . . . . . . . . . . . . . . . 6 EVs About Ready to Hit Western PA Showrooms . . . . . . . . . . . . . . . . . . . . . . . . 6 Ex-Insurance Agent in PA Sentenced for Fraud . 9 Hurricane Irene Insurance Claims Keep NJ Insurers Busy. . . . . . . . . . . . . . . . . . . . . . . 4 MA Agents’ Auto Insurance Ballot Question Advances . . . . . . . . . . . . . . . . . . . . . . . . . . 4 PA Court Upholds Motorcyclist ‘On,’ ‘Off’ Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Pennsylvania Legislature Considers Highway Safety Issues . . . . . . . . . . . . . . . . . . . . . . . 8 Petition to Clean-Up Old Ford Plant’s Toxic Dump Site in NJ Receives 70,000 Signatures. 4 Right to Repair Coalition Begins Collecting Signatures for Petition to Secure Placement on 2012 Ballot . . . . . . . . . . . . . . . . . . . . . 10

Indexof Advertisers

Contents

Lazare Kia . . . . . . . . . . . . . . . . . . . . . . 11 Lexus Wholesale Parts Dealers . . . . . . 62 Lynnes Subaru. . . . . . . . . . . . . . . . . . . 40 Manhattan Automobile Company . 38-39 Mattei . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Maxon Mazda-Hyundai . . . . . . . . . . . . 43 Mazda Wholesale Parts Dealers . . . . . 51 Mercedes-Benz Wholesale Parts Center. 30 Mercedes-Benz Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . 48 Metric Subaru . . . . . . . . . . . . . . . . . . . 18 MOPAR Wholesale Parts Dealers . . . . 19 Nissan/Infiniti Wholesale Parts Dealers . 56 Nucar Mazda . . . . . . . . . . . . . . . . . . . . 37 Paint Ex . . . . . . . . . . . . . . . . . . . . . . . . 16 Porsche Wholesale Parts Dealers . . . . 55 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Safety Regulations Strategies . . . . . . . 43 SATA Spray Equipment . . . . . . . . . . . . 14 Scion Wholesale Parts Dealers . . . . . . 50 Security Dodge-Chrysler-Jeep . . . . . . 27 Shop-Pro Equipment . . . . . . . . . . . . . . 17 Stadel Volvo . . . . . . . . . . . . . . . . . . . . . 42 Subaru Wholesale Parts Dealers DE, NJ, PA . . . . . . . . . . . . . . . . . 32-33 Subaru Wholesale Parts Dealers. . . . . 53 Thompson Organization . . . . . . . . . . . 25 Toyota Wholesale Parts Dealers . . . . . 52 VIM Tools . . . . . . . . . . . . . . . . . . . . . . . 60 Volkswagen Wholesale Parts Dealers . 58 Volvo Wholesale Parts Dealers . . . . . . 57

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 3

Hurricane Irene Insurance Claims Keep NJ Insurers Busy The amount of insured losses in New Jersey is not yet available, but it is safe to say it will number in the billions of dollars statewide, according to the state Department of Banking and Insurance.

It could have been much worse, according to the Asbury Park Press.

“What we’re seeing here from Irene is not such a severe hit where there is significant damage to every building. We’re seeing a lot more peripheral damage, a lot more random damage,” said Tom Larsen, senior vice president for Eqecat, a risk-modeling firm.

Irene dumped a massive amount of rain on the Garden State, which filled basements, caused rivers to overflow and flooded roads. Wind knocked down trees around New Jersey. Businesses lost power, money and inventory, including food, as a result of the storm.

“They are a larger portion of the losses from Irene, because it was a smaller event, but it is going to be a big loss, because it affected such a big area, pretty much the entire state of

New Jersey,” continued Larsen.

E&K Agency Inc., which has offices in Eatontown and Lakewood, saw its customers start to put in claims August 28.

One day later, about 30 to 40 customers have called to either inquire or file claims, said Kenneth R. Auerbach, managing director and general counsel at E&K Agency.

Following the devastating storm that hit New Jersey in 1992, the agency took in more than 400 claims within the first few days.

“I would say it is lighter than anticipated, and generally the claims are smaller than anticipated,” Auerbach said. “We are not seeing a lot of physical damage due to roof debris or trees.’’

Instead, people are calling about flood damage or claims from loss of power, like food spoilage or basement flooding because a sump pump failed.

Auerbach said people who have an endorsement on their insurance policy might have coverage if a sump pump does not work because the power is out and water seeps into the

Petition to Clean-Up Old Ford Plant’s Toxic Dump Site in NJ Receives 70,000 Signatures

New Jersey officials issued a statement at a packed community hearing August 29 assuring residents that efforts by Ford to gain ownership over a section of a state park where the car company dumped toxic waste are off the table.

The news follows a long-running grassroots effort and popular petition on Change.org to clean up the toxic waste left by Ford at Ringwood State Park in the 1960s and 1970s.

The state’s statement represents a major shift in the local effort to clean-up the contamination of Ringwood State Park, a campaign that has received national attention in recent weeks and was the subject of an HBO documentary that aired last month.

More than 200 people packed the Ringwood Library for the Environmental Protect Agency hearing on Ringwood site clean-up on August 23.

Members of the Ramapough tribe, a community severely affected by Ford’s toxic dumping, delivered nearly 70,000 petition signatures to both EPA and Ford representatives.

Edison Wetlands Association, the New Jersey group that has been leading the campaign to strengthen the clean-up effort for seven years, launched the petition on Change.org following rumors Ford was attempt-

ing to gain control over the site of Peter’s Mine, one of the most contaminated areas of Ringwood State Park, before the EPA had finalized plans to remove the toxic waste. The EPA is currently considering seven options for site clean-up, ranging from completely removing toxic material to the more controversial option of capping affected areas.

“The decision by the State of New Jersey to postpone indefinitely any transfer of land in Ringwood State Park to Ford Motor Company is testament to the nearly 70,000 Americans who took a stand through Change.org on behalf of the long-suffering Native Americans in Upper Ringwood,” said Edison Wetlands Association Executive Director Robert Spiegel.

“This is a classic David and Goliath story,” said Change.org Director of Organizing, Corinne Ball. “This small grassroots group, working alongside the local community, has been able to mobilize a mass amount of support with their online petition, moving a government agency and major corporation. What they have already achieved is tremendous.”

For more information on this site, please visit: www.RingwoodSuperfundSite.org

4 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

basement. By August 29, New Jersey Manufacturers Insurance Co. had received 6,200 calls for claims against homeowner policies and 600 claims for automobile insurance policies.

Allstate New Jersey set up mobile claims centers in West Long Branch, Hazlet and Toms River on August 29. They moved to other locations where they were needed August 30, spokesman Daniel Jovic said.

“If a customer experiences auto damage or property damage, and they don’t want to go online, or maybe their phone isn’t working … we put these in high-visibility areas so they can just drive up,” Jovic said.

Insurance agent Aaron Levine, the owner of A. Levine Financial Services in Long Branch, was out talking with customers August 29.

“I am still seeing a lot of customers without power,” Levine said.

“We’ve lost a lot of business income over the last four days, once we started evacuating the areas on Friday.”

Businesses might be able to file a claim for lost income, which can help pay for rent, employees or utility bills.

MA Agents’ Auto Insurance Ballot Question Advances

Nearly all of the proposed questions for Massachusetts’ 2012 state ballot have been given preliminary approval, according to Insurance Journal.

Attorney General Martha Coakley certified Wednesday 23 of the 31 initiative petitions filed with her office last month, allowing them to move on to the next round of the approval process.

The certified petitions include questions that would ban using certain socio-economic factors to determine insurance rates.

Proposals that did not meet constitutional requirements include those aimed at requiring voters to show identification, repealing the state’s restraining order law, and legalizing casino gambling in the state.

Petitioners will have three months to collect nearly 69,000 signatures from registered voters to put their questions on the 2012 ballot.

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 5

Dealers Along the East Coast Are Busy Recovering from Irene When Hurricane Irene bore through the East Coast this past month, her geographical footprint was as broad as her wrath, according to Auto Remarketing News.

The storm ran from the Southeast all the way up to New England, causing power outages, massive flooding and reportedly more than two-dozen casualties, if not more.

Irene impacted everything from clogging roads and crushing piers to affecting homes and businesses — including auto dealers, who continue to feel her sting.

One such dealer was Rick DeSilva, owner of two New Jersey stores and 2010 chairman of the American International Automobile Dealers Association.

On August 29, DeSilva was standing in the showroom of his Liberty Subaru store—located not far outside of New York City in the town of Emerson, NJ —with no power, not knowing when the electricity might flick back on. Meanwhile, his Liberty Hyundai store in Mahwah was open, but a log-jam on the

nearby Interstate 287 was keeping most shoppers away.

Fortunately, DeSilva experienced no facility or vehicle damage—having moved vehicles away from buildings ahead of time and removing anything that could fly around. He said that dealers in his area were open and faring OK. “(We’re) trying to figure out when we may get electricity back,” DeSilva told Auto Remarketing in regards to the Subaru store. “The funny part about it is, I came down here (Sunday) after the initial storm … I came to both places and I said to myself, ‘Man we missed this bullet; we did OK.’ A little leak here, some debris hanging around … but then I guess the back end of the storm came through later on in the day and the trees (were) down, the water was all over the place.”

DeSilva said of his Hyundai store: “We’re fully functional, but the drawback is we’re so close to the New York state border … the New York throughway is just not even a mile up the road from us. So the traffic is

EVs About Ready to Hit Western PA Showrooms

Electric cars will be available for sale soon in Western Pennsylvania, according to the Pittsburgh Tribune-Review.

The new Rohrich Chevrolet dealership in Dormont will get two Chevy Volts sometime this month, said Scott Sharrow, general manager. Nissan will begin taking orders in Pennsylvania for its Leaf by year’s end.

And some local Ford dealers and representatives of environmental groups got their first look earlier this month at the new Focus Electric outside the Civic Arena. Ford will choose four or five dealers to start selling the plug-in, five-door hatchback sometime next year in the Pittsburgh area.

“I’m on board, that’s for sure, and if i can be a dealer I would like to be a dealer,” Frank Davin, general sales manager at Woltz and Wind Ford in Scott Township.

Davin wonders, however, how far the car will go between charges considering the hilly terrain in Western Pennsylvania. Owners of older homes also might have trouble plugging in vehicles in garages with few outlets, he said, but he likes Ford’s partnership with Best Buy, under which the electronics retailer will install charging equipment.

By 2020, up to 25 percent of the vehicles Ford produces will use some type of electric vehicle technology,

said Gil Portalatin, hybrid and battery electric systems application manager, who was in Pittsburgh yesterday to promote the auto maker’s fuel-efficient vehicles.

So far, pure electric vehicles haven’t caught on, said John Putzier, CEO of the Greater Pittsburgh Automobile Dealers Association. That’s largely due to charging times, and a lack of public charging infrastructure.

Ford is promoting a variety of technologies, from all-electric models to hybrids such as the Fusion hybrid.

The automaker surveyed Pittsburgharea residents, finding that 60 percent are interested in purchasing a hybrid or electric vehicle, higher than the national average of 55 percent.

Sharrow, at Rohrich Chevrolet, said customers have been asking about the Chevy Volt, and one plans to put a deposit on one, sight unseen.

A total of four are expected there by year’s end, he said, adding, “this is going to be a low volume, but highdemand vehicle.”

Nissan spokesman Brian Brockman said more than 6,000 Leafs have been delivered to customers in the United States since December. “We have done a staged rollout,” and customers in Pennsylvania can begin ordering the vehicles by the end of the year, he said.

6 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

backed all the way up past the store, so we might as well be out of business for the day at both stores.”

In and around the nation’s capital, DARCARS Automotive Group executive vice president Tamara Darvish said seven of the dealer group’s 25 stores were without power Sunday, and three had no power on August 29.

Darvish is keeping at least partial staff at each of her stores.

“We’re keeping enough to be able to accommodate our customers,” Darvish said. “With the electronics of our switchboard, we’re able to move phone calls from one location to another, so we’ve moved some of the receptionists around to handle incoming calls.”

As far as damage goes, DARCARS managed to escape without much harm at all.

“We had one dealership that we had some water damage at. We lost a really, really big sales day, but when you look at it, nobody got hurt,” she added. “That’s a very, very small price to pay (compared to) catastro-

phes that have happened around the world in the last six months that really kind of keep things like this in perspective.”

As far other stores in the region, Darvish found that most dealers in the D.C. area were “up and running or close to it.”

Further south, Riverside Chrysler Jeep Dodge in the eastern North Carolina town of New Bern was experiencing some challenges stemming from Irene, as well.

The store had signage damage and lost power lines, phone service and Internet connection.

Tousely said the store had “very minimal” vehicle damage, saying that “maybe one or two (were damaged) just from signs hitting them.” Other than the signs, there was no facility damage.

Riverside was open on August 29 but was shut down August 27 when the storm was passing through North Carolina and had to close early on August 26 meaning the store lost potential sales.

See NJ Dealers, Page 10

Hours of operation: Mon-Fri 8am-5pm / Sat 8am-12pm

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Largest Selection of Kia Parts in the Area.

KIA of West Chester 326 Westtown Rd. , West Chester, PA 19382

Phone: 610-429-3500 Fax: 610-429-0164

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Phone: 610-384-7700 Fax: 610-384-2171

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 7

Pennsylvania Legislature Considers Highway Safety Issues Pennsylvania has a long way to go to meet national best practices for highway safety. The risk on the road is real: 1,256 people died in fatal car accidents in 2009.

Pennsylvania lawmakers are considering three bills that supporters believe will make the roads safer for all drivers. One proposal is a bill that would allow municipal police to use radar to catch drivers who speed. Another proposal would allow red light cameras state-wide. And, once again, the state is trying to enact a ban on talking or texting on cell phones while driving.

Radar Use by Municipal Police Pennsylvania is the only state in the U.S. that restricts the use of radar for detecting the speed of drivers to state troopers only, not allowing municipal police officers to do the same.

House Bill 1475, now before the Pennsylvania House transportation committee, would allow full-time officers of municipal police departments of cities that have “full service” police departments to use radar. The bill

would grant counties with populations of at least 210,000 the option of passing ordinances letting police use radar to detect drivers who travel at excessive speeds, which means that the bill would limit the use of radar to 16 of the state’s 67 counties.

To prevent police from setting speed traps trying to generate revenue for the individual departments, local police would need to send to the state any revenue that speeding tickets generate in excess of five percent of the municipal budget or five percent of the regional police department budget.

Advocates for the bill claim that radar is more effective and accurate than the VASCAR system police currently use, where they determine the speed of a vehicle by measuring how long it takes the vehicle to travel between two fixed points. Supporters also argue that allowing police to patrol city streets with radar will ultimately reduce the number of auto accidents.

Red Light Cameras Another safety measure that the Penn-

8 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

sylvania legislature is considering is a proposal to allow cities across the state to enforce red light traffic laws with the use of cameras.

The bill would allow individual cities to pass ordinances to install the cameras at intersections, and violators caught on film would face a $100 fine.

Philadelphia already uses such cameras and supporters of the measure hope that if the cameras are in more cities fewer drivers will attempt to run red lights, causing fewer accidents.

Distracted Driving The final area that the Pennsylvania legislature is addressing is how drivers distracted by technology make the roads less safe. Two different versions of a distracted driving measure are currently in the Pennsylvania House of Representatives.

The first House bill would cover all forms of distracted driving, creating a new category of offense called “careless driving” for such activities as eating, drinking or reading. Careless driving would be a secondary offense under this proposal, meaning

that a police officer would need to pull a driver over for a different offense, not distracted driving on its own.

Drivers would face a $50 fine for careless driving offenses in addition to the fines for other infractions. If a careless driving offense resulted in injury, fines would increase.

The Senate approved a bill specifically targeting texting and talking on hand-held cellular phones, which the House is also now considering. The bill would make talking or texting a primary offense, meaning that police officers could pull drivers over for just that offense. Violators of the law would face a $100 fine.

If the bill passes the House, Pennsylvania will join the 34 other states that ban texting while driving.

Some Pennsylvania municipalities have already passed their own bans on texting and driving.

Past attempts at a state-wide ban on texting while driving in Pennsylvania have failed for a variety of reasons, including legislators attempting to add too many other provisions to the bill and lawmakers’ inability to

agree on whether it should be a primary or secondary offense.

Supporters of the bill argue that addressing this increasingly common form of distracted driving will reduce the number of vehicle accidents measurably by forcing people to take their eyes off their phones and keep them on the road.

Article provided by Rosenn, Jenkins & Greenwald, L.L.P.

Supporters Say Driverless Cars Are Close to Reality

The technology for fully automated cars that drive themselves is closer to reality, and they are expected within the next decade. Appearing much sooner than driverless vehicles will be “connected cars” equipped with sensors and onboard computers that enable them to dodge moving vehicles or stationary objects. The U.S. Department of Transportation estimates that connected vehicles could reduce accidents involving unimpaired drivers by 80 percent.

The autos would rely on devices with a monitoring range of about a quarter mile, reading signals sent out from other equipped cars.

Ex-Insurance Agent in PA Sentenced for Fraud

Insurance Journal reported that a former northeastern Pennsylvania insurance executive has been sentenced to 5 1/2 to 16 1/2 years in state prison in what prosecutors said was a pyramid scheme worth at least $7 million. Brian Murray, 68, former head of Murray Insurance Agency Inc., was arrested in July, 2010 by agents from the state attorney general’s insurance fraud section. He pleaded no contest in June to felony counts of criminal conspiracy, theft by deception and theft by failure to make required disposition of funds. Murray was sentenced in Lackawanna County Court.

Prosecutors said he and others took premiums from new clients to conceal the thefts from others and never procured the insurance the customers thought they were paying for. Moses Taylor Hospital, Mount Airy Casino Resort and the University of Scranton were among the alleged victims of Murphy’s fraud.

Some of the fraud was uncovered after Pennsylvania Manufacturers Insurance and Travelers Insurance conducted audits of Murray’s accounts.

PA Court Upholds Motorcyclist ‘On,’ ‘Off’ Exclusion A Pennsylvania court has ruled that an exclusion in underinsured motorist coverage for injuries incurred while on a motorcycle applies to motorcyclists injured after being thrown off their bikes, reported Insurance Journal.

An underinsured motorist coverage from Allstate contained an exclusion for injuries sustained while on a motorcycle. The court was asked if the exclusion still applies when the driver is injured after being thrown “off” from the motorcycle he was operating after colliding with a car.

The motorcyclist’s lawyer argued that technically, the driver was not on his motorcycle when the injuries occurred, so the exclusion shouldn’t apply.

The Pennsylvania Superior Court in Allstate Fire and Casualty Insurance Company v. Hymes disagreed with that argument and sided with Allstate. In its Sept. 13 opinion, the court stated that “recovery for underinsured benefits is properly excluded under the pertinent policy provision” because the injuries, even though they may have taken place off the motorcycle, are still the direct result stemming from the motorcyclist operating the vehicle.

The case involves Jacob Hymes who, in April 2009, was operating his 2005 Harley Davidson motorcycle when he collided with a 2001 Chevrolet Malibu operated by Robert Meyer. Hymes suffered serious injuries after being thrown from the motorcycle and into the windshield and onto the ground some 20 feet away from the point of impact, according to the court documents.

Meyer, the driver of Chevrolet Malibu, was subsequently determined to be at fault for the accident but his liability insurance proved to be insufficient to fully compensate Hymes for the injuries he sustained. Hymes hadn’t elected to have underinsured motorist coverage from his primary insurer, GEICO. So he turned to his parents’ policy with Allstate. Allstate denied Hymes’ claim for underinsured motorist coverage, relying on the policy’s ‘household exclusion.’

The Pennsylvania Superior Court affirmed the trial court’s ruling, stating, “As explained by the trial court, our review should not result in an absurd construction of the policy.

Words of ‘common usage’ in an insurance policy are to be construed in their natural, plain, and ordinary sense.”

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 9

Right to Repair Coalition Begins Collecting Signatures for Petition to Secure Placement on 2012 Ballot Following certification by the Massachusetts Attorney General of its proposed ballot question, the Right to Repair Coalition announced September 7 that it will immediately begin collecting signatures to place this important pro-consumer initiative petition before the voters. Supporters have until November 23 to get the nearly 70,000 signatures required to secure placement of the question on the 2012 ballot.

The proposed Right to Repair law would require automobile manufacturers to provide directly to consumers the diagnostic and safety information needed to repair their cars at the shop of their choice.

Currently, auto manufacturers provide only some of the diagnostic and safety information needed to repair vehicle owners’ cars with independent technicians, limiting consumers’ choices and losing business for neighborhood repair shops.

“If the car manufacturers can continue to manipulate the market by

withholding information, then do I really own the car?” said Jeff McLeod of Marshfield and one of the original signers of the initiative petition approved by the Attorney General September 7.

“Ultimately, if this law doesn’t pass, it’s going to cost me more money as a consumer, even when my car is out-of-warranty, so I can’t wait to vote for this ballot question next year,” McLeod added.

Industry research estimates annual savings of $300-$500 per family when vehicle owners are given the right to choose where their cars are repaired.

This $300 to $500 margin of savings can mean the difference for consumers on tight budgets between being forced to choose between groceries and car repairs. This savings can help bring them some financial relief.

Consumers across the state visiting local mechanics or neighborhood parts stores have filled out letters of

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10 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

support and sent them to their state legislators. More than 50,000 letters have now been submitted and the coalition’s Facebook page has received more than 9,000 “likes.”

The Right to Repair Coalition includes consumer advocates like AAA, the American Military Society, seniors’ groups like RetireSafe, and more than 5,000 independent shops, small businesses and retailers in communities across Massachusetts that employ 32,641.

For more information please visit www.massrighttorepair.com.

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Continued from Page 6

NJ Dealers

“It’s the last Saturday of the month, so that’s at least 15 cars between Friday and Saturday that were lost,” Tousely pointed out.

Also in North Carolina, a dealership in the eastern town of Belhaven reportedly had its roof tore off by the tornado that hit prior to Irene’s arrival. A bit further west, Marshall Crumpler at Cox Dodge Chrysler Jeep in Wilson said from what he could tell, dealers in his area were in good shape.

“I’ve looked at all the dealers, and the only thing we’ve had here is just a couple of trees uprooted, small decorative trees uprooted,” said Crumpler.

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 13

On Creative Marketing The Ethnic Factor in Marketing with Thomas Franklin

It’s no secret that large numbers of recent immigrants now live in many areas in the United States. Most gather themselves into close-knit communities where their native language predominates. Fortunately, for quality collision shop owners, few of these immigrant communities have a quality body shop in their own ethnic area.

If there is a shop, chances are it’s rather primitive and not up to insurance claim quality. This opens the door for an astute shop owner nearby who will put someone on the payroll who speaks their language and can help market the shop to that community.

I’m familiar with a shop that opened in a community that had large numbers of Chinese families in the surrounding area. The shop owner hired an attractive Chinese lady who spoke fluent Mandarin and Cantonese for the front desk and he also hired a

Chinese-speaking estimator and parts manager. For several years this combination served him well. His Chinese personnel changed a few times, but he always kept some at his shop and enjoyed a significant number of jobs from the Chinese community.

With an economic downturn, when one Chinese employee left, he didn’t replace her immediately. Gradually, as the economy continued to decline, he lost all of his Chinese employees. He intended to replace one or two but it didn’t happen and little by little his Chinese community business fell away. Employees are a shop’s biggest expense. It’s understandable that adding any new employee is costly, but I’m certain that a careful analysis of the situation would reveal that the benefits of reaching the Chinese community would have more than paid for a Chinese speaking employee for this shop owner.

14 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses.

He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

Is there any alternative to hiring an estimator or front desk person who speaks the language of a local ethic group? Perhaps one economical solution would be to hire a technician who speaks the local language. I know of more than one shop where most of the technicians are Hispanic but where one is also used to handle phone communications with Hispanic speaking callers. Would this work for other ethnic minorities? Had the shop owner who had a Chinese parts manager used that person to also handle Chinese-speaking callers, he might have continued to pick up business from that community.

Assuming a shop owner decides to take advantage of potential business from an ethnic community near his or her shop, and is willing to employ someone who can speak the language, what is the next step? Fortunately, marketing to an ethnic group is often

easier than marketing to the general public. If there is an ethnic newspaper or other local publication, many people in that community will actually read it (as opposed to an increasing non-readership of general newspapers today). Ethnic readers are more likely to look at ads in the publication and respond to them. They will particularly respond to an ad or article that has a quote by someone in their community who says the body shop did an excellent job on their car and they were very satisfied.

These days many ethnic communities also have radio stations and even a TV station broadcasting in their own language. Once again, this is a captive audience that is more inclined to respond to ads and messages than the general public. Ethnic minorities also tend to be very cost conscious and likely to respond to discount or coupon offers. Ad spots and program

opportunities may also be less expensive. Once a shop owner has decided to pursue business from an ethnic community, he or she may find some amazing marketing bargains. But once again, it will usually be essential to hire that key employee who speaks the language and is familiar with the customs, likes and dislikes of people in this community.

One more concern. People in ethnic minority groups are often cautious about whether an offer is genuine. A shop owner has to be prepared to run an ad or make a promotional effort for a longer period of time. There is also the “rule of three.” If you see an ad or announcement or article in three different places, you are also more likely to respond. Immigrants often view the purchase of a new vehicle as a longterm investment. The ones that buy new have great pride of ownership and will probably tend to get small dents, scrapes and scratches fixed.

And that is very good news for a collision shop owner who has spent the time and money needed to get a solid foot in the door of a local ethnic community. If it’s done right, it’s certain to pay off.

AASP of New Jersey Reaches Out to Members Affected by Hurricane Irene After Hurricane Irene came through the New Jersey area at the end of August, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) decided to reach out to its members affected by Hurricane Irene, offering to help in any way possible, according to a recent statement from the organization.

“The damage done in New Jersey, particularly the northern part of our state, has been devastating for several of our members,” says AASP/NJ Jeff McDowell. “We are contacting our members to let them know that AASP/NJ is here for them and willing to help in any way we can.”

The AASP/NJ was urged to help their members affected by this storm by former AASP/NJ President Glenn Villacari of Parkway Auto Body in Nutley, NJ. “Glenn contacted our office and suggested that we reach out to our members,” adds AASP/NJ Executive Director Charles Bryant. “He even offered his own personal assistance to other shop owners who might need help cleaning out the muck and debris

from their shops.”

“We are all competitors,” Villacari said, “but at the end of the day we are all trying to survive. To see some of the devastation here in our state is heartbreaking. We, as human beings, should be doing all we can to help others who have been hit hard by Irene. Fortunately, AASP/NJ has the components in place to reach the membership and let them know they are not alone.”

AASP/NJ members who are victims of Hurricane Irene and are in need of any type of assistance should contact AASP/NJ via e-mail at Setlit4u@msn.com or call the AASP/NJ Hot Line at 732-922-8909 For more information on NORTHEAST 2012™ and AASP/NJ, please visit www.aaspnjnortheast.com or www.aaspnj.org.

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Chrysler, GM, Forced to Curb Production in Carpet Shortage

Reuters has reported that at least six auto assembly plants in North America have slowed output because of a shortage of carpeting and floormats caused by a flood at a key supplier plant in Pennsylvania, representatives of the automakers said.

Heavy rains flooded a plant in Bloomsburg, Pennsylvania, operated

by Switzerland's Autoneum Holding AG last week, the company said on the plant's website.

Chrysler was forced to cancel production shifts at a total of three plants in Michigan, Ohio and Ontario because of a shortage of carpet, a spokeswoman said Sept. 14.

GM also took steps to slow output at two assembly plants, one in Michigan and one in Ontario, a spokesman said.

Ford Motor Co. said it was monitoring its inventory of carpet and floormats but as of Sept. 14 had not lost any production.

It was not immediately clear if other automakers supplied by the Autoneum plant had reduced production.

The plant also supplies carpet to Toyota Motor Co., Volkswagen AG and Daimler AG.

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 15

I-CAR Adds Hybrid Electric Vehicle and Alternative Fuel Vehicle Training Programs to Online Catalog

Throughout 2011, I-CAR has introduced several new online training programs to the industry, including programs with all-new content and instructor-led (live) training programs that have been converted to an online delivery format.

Programs that have been converted from the live delivery format contain the same content and are available 24/7, through a convenient online platform. I-CAR has recently added Electric and Electric Hybrid Vehicles (ALT01e) and Hybrid Electric and Alternative Fuel Vehicles (ALT02e) to its online course catalog.

Both of these online programs are also available in the instructor-led (live) format.

These programs touch on different areas of current and changing technology of hybrid electric vehicles and alternative fuel vehicles.

Both training programs will provide individuals with an understanding of vehicle-specific repair considerations and the importance of ensuring a safe and cost-effective repair.

Course Details - Electric and Electric Hybrid Vehicles (ALT01e): ● Identify terminology related to parts and understand the construction of an electric vehicle

● Understand the differences between series, parallel, and combination hybrid configurations, as well as integrated starter/alternator hybrid combinations ● Examine system design and operation including vehicles from Honda and Toyota ● Analyze collision damage to electric and hybrid electric vehicles ● Understand the collision repair considerations for electric and hybrid electric vehicles ● Know how to work safely around electric and hybrid electric vehicles Course Details - Hybrid Electric and Alternative Fuel Vehicles (ALT02e): ● Explain how to take safe measures when working on hybrid electric and alternative fuel vehicles ● Understand high voltage issues with electric A/C systems ● Identify new applications for hybrid technology and unique hybrid system features ● Understand vehicle-specific applications from popular vehicle makers, including Ford, Mercury, Mazda, Toyota, Lexus, Nissan, and Honda ● Know how to properly care for a high voltage battery prior to and during the repair process ● Identify the different types of alter-

16 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

native fuel vehicles currently on the market, as well as concepts in tomorrow’s technology Information and registration for these courses can be found on the ICAR website (www.i-car.com) or by contacting I-CAR Customer Care at 800-422-7872.

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CAPA Releases Resource for Claims Personnel, Adjusters

CAPA has released a new resource for claims personnel and adjusters – The CAPA Guide to Certified Aftermarket Parts for Claims Personnel and Insurance Adjusters. CAPA’s aim is to provide claims personnel and insurance adjusters with a better understanding of the benefits of using certified parts. The CAPA Guide gives an overview of the CAPA program in a question and answer format. “The questions we asked are challenging, hard hitting and based directly on the many questions about CAPA that we have actually received from claims personnel and insurance adjusters,” said Jack Gillis, Executive Director.

“Not only will this provide claims professionals with an overview to the increasingly complex aftermarket parts world, but will no doubt be a value to shops.” See www.CAPAcertified.org.

CAPA will provide copies of the Guide to over 5,000 insurance claims personnel, adjusters, and claims executives. Bob Anderson, Chairman of CAPA’s Board and owner of Anderson’s Automotive Services in Sheffield Lake, OH, said, “I wish I had a resource like this when I began to deal with claims personnel about CAPA parts.”

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 17

Industry Insight

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

Contact him by email at jyoswick@SpiritOne.com.

CIC Participants Tell Information Providers to Take the Lead in Chicken-or-Egg Dilemma with John Yoswick

What may have seemed to some at the most recent Collision Industry Conference (CIC) as a debate about esoteric computer jargon was actually a discussion about who gets access to all the information in a shop’s estimates.

Speaking ahead of the meeting, Fred Iantorno of the Collision Industry Electronic Commerce Association (CIECA) said the way a shop’s estimating data currently flows through any of the current electronic connections in the industry—to the shop’s management system, to insurers, to parts suppliers, to rental car companies or CSI providers— Fred Iantorno can be compared to repairing a car without applying the needed corrosion protection.

“You can’t see what’s inside of these systems to see if the corrosion protection has been put there or not,” Iantorno said. “But over time, it’s like a time bomb waiting to happen. The rust will show up, because essentially the corrosion protection hasn’t been changed since 1999.”

Iantorno, along with a number of collision repair trade associations and organizations, has been lobbying for a shift by the information providers away from using the older “EMS” standard for transferring estimate data to using the news “BMS” standard. Understanding what those acronyms stand for is less important, he said, than understanding the key difference between the two.

The EMS file includes every scrap of data included in an estimate: the customer’s information, the vehicle information, the parts and labor information.

So if a shop, for example, orders parts electronically, the parts vendor receiving the parts list via the EMS file gets not only what parts are needed but information about the customer and his or her insurance. A rental car company also might be getting all this information even if all it really needs is information on when a customer’s car will be repaired and the rental returned.

Because the newer BMS standard provides shops with more control over what data gets shared—thus making it

easier to protect the privacy of data for customers, business partners and themselves—collision repair organizations have for years been calling for the information providers to enable shops to use BMS rather than EMS. And EMS was created a full decade before BMS, Iantorno points out, it’s based on older technology, making it akin, he said, to using a 1990s cell phone rather than one sold today.

Asked again about BMS at the CIC meeting held this summer in Salt Lake City, Utah, Jack Rozint of CCC Information Services said his company has implemented BMS in some limited instances.

“There are some large collision groups that are using it to consolidate data, and there’s a couple paint company value-added programs that are using our implementation of BMS to get repairer data to support their 20 groups,” Rozint said. “To be frank, Jack Rozint the majority of our customers are using applications on the other end—receiving the data from the shop—that are still using EMS, so all our systems still support EMS.” But Aaron Schulenburg of the Society of Collision Repair Specialists was among those at CIC who pointed out that it’s a bit of a chicken-and-egg situation; those receiving data from shops, he said, can’t switch from EMS to BMS until the information providers enable shops to use BMS. “Unless somebody turns the switch first, it will never happen,” Iantorno told Rozint.

“Right now, the list of applications that are BMS-capable to receive that format is a very short one,” Rozint said. “So we need the people who have the applications that are going to take in the EMS to come to us and say, ‘We want BMS implemented to replace the EMS interface,’ and we need our customers to tell us that that application is important.”

But Tony Passwater, chairman of CIC’s Data Privacy Committee said CCC, Mitchell International and Audatex just need to do what companies

18 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

in other industries have done to push for a shift to new, better technologies.

“They just need to say that as of a certain date, the EMS standard will be sunsetted,” Passwater said. “Starting on that date, only the BMS standard will be supported. Then the application developers aren’t going to have to make (their) systems import EMS files. And believe me, it’s a lot easier for them to use BMS. But you have to tell the application developers you won’t use it anymore. That’s as simple as it is. It is a chicken-and-egg syndrome. The information providers have got to set that sunset.”

Another CIC participant, speaking privately after the meeting, said he may hand out buttons for shop owners to wear at this fall’s trade shows saying, “No BMS now? No thanks.”

In other news and discussion at CIC in Salt Lake City: ● Representatives of several of the

paint companies say that testing of waterborne clearcoats continues, but that several challenges remain. “It looks odd when it goes on—almost white—but dries super-clear,” Bob Burgess of PPG said. “It looks really good, but it’s not as fast (as solvent-based clearcoats).”

Paul Maiersperger of DuPont concurred based on his company’s development of waterborne clears. “The durability has always been an issue, and the productivity, because everyone wants faster and faster clears,” he said.

“That’s something we need to address.” ● The CIC Definitions Committee said it is doing its regular review of CIC’s definition of a “Class A” collision repair facility, considering how to address issues, for example, as whether or not a shop chooses to be equipped to do aluminum repairs. ● Jordan Hendler, executive director of the Washington (D.C.) MetSee Chicken-or-Egg, Page 20

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Continued from Page 18

Chicken-or-Egg

ropolitan Auto Body Association, was honored for her efforts earlier this year that helped prevent a teenage girl from jumping off an I-95 freeway overpass in a suicide attempt. Hendler called 91-1 as she approached the girl on the edge of the overpass, then kept talking to her, pleading with her not to jump. She kept talking to the girl as another by-passer approached from the other end of the overpass and was able to grab the girl and pull her back off the barrier she had climbed over.

Hendler said it took both of them to hold the hysterical girl down until emergency responders arrived about four minutes after the call to 9-1-1.

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

Dick Cheney on TARP: ‘No’ to Automakers, ‘Yes’ to Banks

“Although I understood the reasoning, I would have preferred that the government not get involved and was disappointed “—Dick Cheney writes in his new memoir, In My Time. The auto industry endured its worst downturn since the Great Depression in 2008, and it became increasingly clear during the final days of the Bush Administration, that at least two of Detroit’s Big Three could no longer survive without immediate help. So the Bush Administration tapped into the $700 billion Troubled Asset Relief Program.

While the former vice president did’t think the auto rescue was valid, he favored saving the banks— even though most felt they had caused the global economic meltdown. The new Cheney book sidesteps comments made by former Pres. Bush in his own memoir, Decision Points. Bush defended his role in the automotive bailout, saying: “The immediate bankruptcy of the Big Three could cost more than a million jobs, decrease tax revenues by $150 billion and set back America’s GDP by hundreds of billions of dollars.” Many are still retroactively opposed to the rescue of Detroit despite historic signs of recovery by GM and Chrysler.

VW, Suzuki Partnership on Thin Ice A two-year partnership between German giant Volkswagen AG and Japan’s nimble Suzuki Motor Corp. appeared to be unraveling shortly after the Japanese company’s chairman said communications had broken down, according to the Detroit News.

“Volkswagen is not talking to us,” Chairman Osamu Suzuki told Bloomberg News in an interview.

“We have no plans to talk to them.”

His comments follow months of disparaging remarks by VW officials about the Japanese company’s attitude and retorts from their counterparts at Suzuki about VW’s overbearing manner.

“Relations between the two firms have been tense from the start and have seemingly deteriorated even further,” said Tim Urquhart, a London-based analyst at IHS Automotive.

In 2009, when VW acquired 19.9 percent of Suzuki for 222.5 billion yen, or $2.9 billion, the deal was viewed as a coup for the German automaker. It was expected to gain access to the low-cost carmaking technology that has made Suzuki a leader in India.

The two companies said they intended to cooperate on technology, including hybrids and electric cars, and vehicles for emerging markets.

But almost two years later, no joint projects have been announced.

Surprisingly, Suzuki decided in June to order diesel engines from Fiat SpA of Italy.

Some analysts sensed strains from the outset, as Suzuki stressed that it wanted to remain independent.

According to Bloomberg, the latest tensions were sparked by VW’s reference to Suzuki in its annual report as an “associate” that it could significantly influence.

VW sold 7.2 million vehicles in 2010, more than double Suzuki’s 2.6 million unit sales in its last fiscal year, including 1.1 million in India.

“Suzuki really needs a big manufacturer behind it, so the effect of a withdrawal would be far worse for them,” said Aleksej Wunrau, a Frankfurt, Germany-based analyst at BHF Bank AG. “Volkswagen could very well step back from Suzuki and either seek another partner or start afresh on their own in Japan and India.”

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Continued from Front Page

Foose Brings It

1957 Mercedes 300SL “Gullwing” Built on behalf of BASF Corporation the Gullwing was delivered to the Foose Design shop in Huntington Beach, California. This pristine German wonder car is going through a subtle, but significant customization process. Most noticeable, the front and rear bumpers were removed and stored, being replaced by newly custom fabricated units which have been artfully re-designed into slimmer and more elegant versions. The new bumpers fit neatly up against the body for a seamless integrated look. A slight modification to the signature rear bulge above the rear wheel house brings it in line with the front wheel house bulge. Minor modification to the grille and grille shell will still focus on the elegant opening of the stock version. The nose emblem has been removed along with the rear markers with all bodywork being smoothed. New side trim, hand crafted from brass stock has been machined, milled, filed and polished be-

fore the final chrome plating. New headlight bezels have been machined out of billet aluminum and carefully fit to the front fenders, which were massaged for a seamless blend of

Stock ‘57 M-B Gullwing, wait till you see the Foose custom version

fender to chrome ring. New headlights are being installed for a clean European look. A two tone paint job featuring BASF Waterborne material will combine an upper charcoal silver and a lower bright silver separated by an interior matching red accent line. The separation line is still in the design phase as I want to focus on the elegant

body lines of this classic vehicle. We will be installing a custom made set of springs to bring to Gullwing to just the right ride height. A custom set of Foose Wheels shod in Pirelli P Zero Nero tires will finish off the design. If you plan on attending SEMA, make sure to drop by the BASF Booth were we will unveil and feature the BASF Foose Gullwing Project.

SEMA Cares WD40 Feature Vehicle I can’t tell you much about this car, because it will be a complete surprise and will be unveiled to a live audience at SEMA. For the past couple of years, WD40 Corporation has sponsored the design, fabrication and auction of a vehicle on behalf of SEMA Cars; the Children’s Charity and the Richard Petty supported Victory Junction Camp. Previous vehicles have included a Camaro, and a Mustang, so it’s your guess what this year’s vehicle will be! All I can say is that it will be awesome and All American Muscle!! I am designing the paint scheme and coordinating the efforts on the build which is scheduled to in-

clude a full Hotchkis Suspension, Street Scene body modifications, Magnacharger, Pirelli Tires, MHT/Foose Wheels, MagnaFlow Exhaust, Katzkin Leather Interior, and of course BASF Paint. Make sure to stop by the WD40 Booth for the unveiling of this car and stay tuned to the Barrett Jackson Auction in January, Pebble Beach, Florida as this cool car goes across the blocks for the benefit of Children’s Charities. I am thrilled to be involved in such a important project with great partners.

1932 MUROC Roadster “Magnatude” Based on a design I developed some years back for Jerry Kugel, ten fend-

erless, and ten fendered versions of this basic design were produced. The See Foose Brings It, Page 45

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 21

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Shop Showcase

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans.

She can be contacted at crsisk@chasidyraesisk.com.

Auto Collision Service Underscores its Emphasis on Service with Chasidy Rae Sisk

After hearing good things about the service at Auto Collision Service in New Castle, DE, I decided to look into the shop’s practices to find what methods they use to ensure customer satisfaction.

customer satisfaction they desire.

When asked about problems they have encountered, Pat Henry mentions that obtaining parts has become somewhat of a challenge since parts that dealers used to stock may now take several days or longer to obtain, forcing shops to deal with “super dealerships” to get their work done quicker.

In turn, this strains relationships that have been built over many years with single dealerships. In reThe motto at Auto Collision Servgards to customers, he says “Cusice is that they “meet a lot of nice people by accident.” The goal at the shop tomers are not a problem; they have is to focus on the customer and make had a problem which is the accident. sure all vehicles are repaired at the Our job is to communicate with them. highest quality achievable.

If the communication is there, no matAccording to owner, Pat Henry, ter what happens, you can keep the “We have always felt that you are only customer happy. If there is poor comas good as the last vehicle that you fix. munication, that is when you have a If you lose sight of that, that is when problem.” Henry also mentions the things will fall through the cracks and constant struggle to maintain a partyou end up disappointing someone. nership with the insurance companies.

Here at Auto Collision Service we all “We, as an industry, need to work take great pride in what we do and we diligently in order to keep the DRPs are never satisfied with the status quo.” happy with the service we are providAuto Collision Service offers a ing to our shared customers”. comprehensive summary of their Auto Collision Service of New process on their website to aid cusCastle, DE has eighteen employees. tomers in understanding what will hapThey employ four body technicians, pen to their vehicle while in the shop. three paint technicians, two assembly specialists, one detailer, one shop maintenance specialist, a parts manager, three estimators, a bookkeeper, an operations manager and a general manager. The shop is 28,000 square feet and boasts Car-O-Liner frame machines, four rollers, mig welders, four spot welders, a drive-up rack, and a Chief Auto Collision Service’s shop floor stays productive drive-up frame machine, as well as two Accudraft paint This process includes removal of parts booths and Car-O-Liner’s Car-Oand estimate, arrival of parts, structural Tronic computer measuring system. and body repair, painting, vehicle reThe shop is I-Car Gold certified assembly, and delivery to customer. and participates in direct repair proThe website also provides cusgrams with Nationwide, Liberty Mutomers with the opportunity to monitual, The Hartford, Harleysville and tor the repair status of their vehicle, Met-Life. They enhance their revenue and an optional survey allows cusby offering storage, paintless dent retomers to provide feedback to aid pair, custom striping, customer work Auto Collision Service in adjusting and restorations. They also complete oil their procedures to best achieve the changes, wheel alignments, wiper and

24 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

bulb replacement and fluid topping.

Auto Collision Service uses PPG paints in their repairs which averages

problem when we switched to PPG waterborne paints, but the help and training we received from our jobber, Kayfield Automotive Paints, has been wonderful and helped make the transition easy.”

The shop was founded by Thomas Henry Senior in 1980.

He opened the business in a 5000 square foot facility in nearby Old New Castle. In 1996, the business expanded to include a second shop, but due to road expansion in 2000, the Auto Collision Service’s pair of Accudraft paint booths two locations merged to become around one hundred twenty vehicles the current Auto Collision Service in each month. Auto Collision Service New Castle. Auto Collision Service believes it was the first shop in opened another shop in Georgetown in 2007 in a 8000 square feet building.

Delaware to make the change to waThey are also involved with a lot terborne paints.

The shop receives a mix of recent of youth programs in the area. They models and older vehicles, but they sponsored Hanby Middle School’s Aerospace Team by painting the have not had problems matching paints with older vehicles. “We anticipated a See Auto Collision Service, Page 26

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Continued from Page 24

Auto Collision Service

rocket ships the students launched until the program was discontinued several years ago. The shop continues to work with local vocational schools, as well as to sponsor many youth and school sports programs.

Regarding current trends in the industry, Pat Henry states “One of the positive trends is the steps that are taken to further the education of technicians as well as office staff. The technology within vehicles has been changing, and if you cannot keep up with these changes, you will not be able to repair the vehicles. The economy has made this past year particularly tough, but I hope that this is a trend that will soon change. During this time, all you can do is continue to work hard; quite frankly, I do not like the alternative.”

Auto Collision Services 501 New Churchmans Road New Castle, DE 19720 302-328-5611 www.autocollisionservices.com

Garmat USA Holds Sharp Shooter Contest

Garmat USA announced on September 6 the start of a new contest for shop owners and paint techs. The Garmat Sharp Shooter Contest will run from September 4- October 08, 2011 and the Grand Prize includes a free trip to Las Vegas for the SEMA 2011 Expo. The Garmat Sharp Shooter contest is Garmat’s way of recognizing quality paint techs and shop owners that use Garmat equipment.

“At tradeshows and site visits paint techs are always telling me how they prefer Garmat booths, so this is their chance to tell us why”, says Johan Huwaert, Garmat USA’s general manager. He also noted “This contest allows us to open channels of communication with the techs so they can give us feedback on what they would like to see in a paint booth.”

Paint techs and their managers will have the opportunity to tell their Garmat Story, in either video testimonial or written statements. First place prizes of 2 leather jackets, will be awarded to five finalists, and the Grand Prize of a trip for two to Las Vegas will go to the contest winner.

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Swedish Automobile announced that Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile) received approval for their proposal for voluntary reorganization from the Court of Appeal in Gothenburg, Sweden September 21. The purpose of the voluntary reorganization process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions by Pang Da and Youngman.

The Swedish Company Reorganization Act says that an application shall not be approved unless there is reasonable cause to assume that the purpose of the reorganization will be achieved. In this decision, the Court of Appeal has found that such conditions exist, thereby overturning an earlier ruling by the District Court in Vänersborg, Sweden.

As a consequence of the Court of Appeal ruling, Saab Automobile will request for the bankruptcy filings by unions IF Metall, Unionen and Ledarna to be cancelled.

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A Swedish appeals court on September 21 gave the green light for debtsaddled carmaker Saab to reorganise under bankruptcy protection, delaying what had appeared to be the company’s imminent demise, reported AFP. “The appeals court reverses the district court ruling and allows Saab ... to reorganise,” the Appeals Court for Western Sweden said in its decision. The ruling places on hold thousands of individual requests that Saab be declared bankrupt by company employees and union members who have yet to receive their August wages. It also makes it possible for Saab’s around 3,700 employees to receive their salaries.

“The threat of bankruptcy is gone and our employees will be paid...

This is a good day,” enthused company chief executive Victor Muller.

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Continued from Front Page

Avery Claims Fraud

ceived $3 million in campaign contributions, then overturned a verdict against a contributor. The U.S. Supreme Court decided the judge should have recused himself because of the “serious risk of actual bias.”

But the latest petition argues that State Farm attorney and lobbyist William Shepherd was on the executive committee of Illinois Civil Justice League (ICJL), which recruited Karmeier and donated (through its political action committee) $1.1 million in direct and in-kind contributions to Karmeier’s campaign. Also at the time, an affidavit in the case points out, State Farm CEO Ed Rust was part of the U.S. Chamber’s leadership team that selected which judicial campaigns to target, and Illinois was identified as a “Tier 1” state to target. State Farm donated $1 million to the U.S. Chamber’s judicial election efforts, the U.S. Chamber donated over $2 million to the Illinois Republican Party, and that organization in turn bought $1.94 million in advertising for the Karmeier campaign In 1999, the landmark class action

lawsuit Avery v State Farm rocked the collision industry with not only its staggering $1.8 billion dollar judgment but also its implications for the viability of the aftermarket industry. Louisiana resident Michael Avery and four other named plaintiffs brought the class action in Illinois against State Farm. The original circuit court jury found in favor of the plaintiffs, and awarded the $1.8 billion.

This ruling was affirmed on appeal by the state appelate court, except that the judgment was reduced to $1.05 billion.

It wasn’t until the case got to the Illinois Supreme Court that the judgment against State Farm was overturned. The Supreme Court found that, because of the various types of language used in State Farm’s different insurance policies, it was an error for the circuit court to certify a nationwide class as to the contract claims. The court also held that the plaintiffs had failed to establish any breach of contract on the part of State Farm, or that they had even established any contract damages. To completely twist the knife in the plaintiffs’ case, the Supreme Court further found that only one of the five named plaintiffs had his vehicle assessed and repaired in Illinois, and since he couldn’t

prove he suffered damages, the class action judgment was completely reversed.

It seemed a slam dunk for State Farm.

In 2006 the Illinois Supreme Court was petitioned to review the case on the grounds that then-circuit Judge Lloyd Karmeier, declined to recuse himself, and then ruled for one of his biggest campaign contributors, State Farm. Justice Karmeier, who received over $350,000 in direct contributions from State Farms employees, lawyers and others, and over $1 million more from groups of which State Farm was a member or to which it contributed, won both the fundraising battle and the election.

Justice Karmeier then declined to recuse himself from Avery, which had been pending before the Illinois Supreme Court during the campaign. In the appeal, Justice Karmeier cast the decisive vote reversing a lower courts breach of contract verdict of over $450 million against State Farm. The Supreme Court denied the recusal petition and did not hear the case.

This month the Supreme Court was again petitioned by a group of Avery attorneys—including former TV actor, U.S. senator—and briefly candidate for the GOP nominee for President—Fred

Thompson allege State Farm lied and mislead the court, hiding its “extraordinary support of Justice Karmeier’s campaign and to thwart Justice Karmeier’s disqualification.” The petition asks the court to restore at least part of the billion-dollar judgment against State Farm on the grounds that months before siding with State Farm in the questioned August 2005 ruling, Karmeier refused calls that he recuse himself deFred Thompson spite concerns that the hundreds of thousands of dollars he allegedly got directly from State Farm for his campaign could taint his judgment.

State Farm’s lawyers have insisted the company itself gave no money to Karmeier, who this month’s petition asserted was recruited by the company to run for the court as a “pro-business candidate” and actually got $2.5 million to $4 million in contributions through State Farm.

Much of that money came through a political action committee (JUSTPAC) See Avery Claims Fraud Page 30

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 27

Company Connections

with Ed Attanasio

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

It’s a Perfect Pair: Honda’s Collision Select Program & OEC’s CollisionLink® Memorable partnerships make for great history: Hope and Crosby; Mantle and Maris; Jobs and Wozniak; Donny and Marie; Tom and Jerry—to name but a few. American Honda and OEConnection’s (OEC) CollisionLink® program can now be included on that renowned list of successful alliances. Since 2009, the automaker’s wholesale parts program, Collision Select, has connected a large number of body shops to their Honda and Acura dealerships’ parts departments Bill Lopez via OEC’s Colliis OEC’s Director sionLink parts proof OEM Program curement system.

Management Through Honda’s program, the carmaker enables its participating dealers to assist body shops in enhancing their cycle times, alleviating shop returns, and streamlining parts ordering, but most importantly for repairers and parts managers, it allows shops to incorporate more Honda and Acura Genuine parts into their repairs.

To further support an already healthy working relationship, American Honda is providing additional support to its dealers, through an aggressive promotional campaign known as “A Perfect Pair,” designed to provide further exposure and ultimately sign up additional collision facilities nationwide.

OEC’s Director of OEM Program Management, Bill Lopez, 47, has seen the collision industry from disparate perspectives over the past 22 years.

After college he worked as a Claims Manager with Farmers Insurance, where he learned estimate writing, the importance of cycle times and the issues common to insurers, body shops and their customers. He also worked in business development with a paint manufacturer, an online estimating company and even joined an internet startup for a time in Silicon Valley.

Lopez manages all of OEC’s OEM relationships which include alliances with major nameplates such as Ford, GM, Chrysler, Nissan/Infiniti, Volkswagen, Southeast Toyota and the aforementioned Honda/Acura. Of this group, Honda/Acura, Ford, Nissan/In-

finiti and Volkswagen have exclusive agreements with OEC, which means their original parts programs can only be featured on a site such as CollisionLink, according to Lopez.

Lopez cites several major reasons why OEC has grown at a steady rate since it re-launched CollisionLink in 2006: “Since we have data access agreements with virtually all automakers, we’re able to scrub the parts to determine that in fact they’re the right parts for that damaged car Lopez explained. “CollisionLink is built on parts efficiency and order accuracy, which leads to fewer returns. And the end result is improved customer satisfaction, between the body shops and the dealerships. Those four things make up our core value proposition.”

According to OEC statistics, approximately 4,500 to 5,000 body shops use CollisionLink on a daily basis. “There are somewhere between 35,000 to 40,000 body shops in the United States currently,” Lopez said.

And we know that roughly 12,000 of them do the lion’s share of the business. So we work with almost half of these major players and continue to add more all the time.”

Lopez knows the ongoing struggle that exists between insurers and body shops based on his extensive experience. That's why he says he knows the value of CollisionLink for companies like American Honda and their dealerships throughout the country.

“One of the major metrics that insurance companies look at closely is parts utilization. A shop can either use an OEM part, a recycled part, an aftermarket part, or a re-manufactured part. When an estimate is written, a percentage is assigned to one of these categories. It’s called ‘part content’ and it’s one of the many metrics used by insurance carriers to rate their DRP’s performance.

“If a shop has a 95% OEM parts content, an insurance company looks at that and says, ‘this shop is using a lot of OEM parts and it’s costing us money. They’re not doing a good job of managing their average repair costs, so I have to go in there and scold them.’ Of course insurance companies like to see more recycled,

28 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

aftermarket, and remanufactured parts in their estimates, because the perception is that these parts are cheaper to purchase, but OEC’s CollisionLink is challenging that paradigm.”

Says Lopez, “Body shops are now telling their insurers, ‘sure, I’m using a lot OE parts in my repairs, but I’m not costing you any more, because my costs are in line with my peers. So, don’t worry about my repairs, because CollisionLink helps take advantage of all these OE programs, where I can essentially buy original parts at aftermarket prices.”

Educating insurance companies of CollisionLink’s core value proposition as well as its ability to administer OE discount programs is an important role for Lopez. “A large part of my job involves educating the insurance companies about CollisionLink... I tell them

The parts crew at AutoWest Honda in Roseville, California uses OEC’s CollisionLink to get more Honda parts into their shop customers’ repairs.

From left, Parts Technician Dave Slay, Parts Technician Scott Munsterman, Parts Manager Ron Shaw, Parts Technician Kevin Duell and Parts Technician Raymond Albright

to take a look at our software, because they can get more OE parts on their customers’ vehicles, thereby increasing their policy holders’ satisfaction while managing their repair costs.”

Getting dealerships to jump onboard is also a huge part of the equation. Says Lopez, “It’s contingent on the dealership relationship. If the dealer responds quickly, [CollisionLink] works well and the body shop will use it. The dealerships pay for it, but it’s free to the shops, so hopefully the dealer is continually touting it and educating them about it.”

Once they take the time to look at CollisionLink and the OE programs it administers, body shops see the value and will at least consider it. “When the shops realize that they can use an OE

part instead of an aftermarket part at the same price and retain the same margin, now they’re listening and the light goes on,” Lopez said.

Lopez is pleased to be working with American Honda for a wide range of reasons. “Honda is an awesome company to work with, because they’re very methodical and everything they do is carefully planned and strategically positioned. We’re very fortunate to be an exclusive partner with Honda, because they are definitely in a class by themselves when it comes to collaborating with us and innovating with them. They’re worldclass and sincere in their efforts to provide optimum service to the marketplace that helps them to sell more parts, but in the end, everything they do is fair and well-thought out.”

The data shows American Honda is number one when it comes to selling parts utilizing CollisionLink.

“Their program parts are converted at a higher rate by more body shops using Collision Select via CollisionLink. Honda has a field service team that’s 100% dedicated exclusively to the success of their Collision Select Program and that’s why they hit great conversion numbers consistently.”

One Honda Parts Manager who believes in the power of CollisionLink is Ron Shaw, 49, who has been with AutoWest Honda in Roseville, Calif. since 1991. He runs a department employing 19 people and sells approximately $7 million in parts annually.

Although Shaw does not personally implement CollisionLink every day, he delegates those duties to a select group of his counter people.

“I have key people I rely on to coordinate a lot of the computer duties around here and they’re very good at it,” Shaw said. “Yes, there’s no doubt that CollisionLink is a useful tool.

Once our body shops decide to use it, they definitely like it, but there are a lot of smaller mom and pop shops in this area that aren’t completely onboard for anything involving the computer. We try to educate all of the customers we’ve got, to let them know that if they sign up for this program and use it, they’ll be able to use more original parts. I’m sure they’re

all game for that, because they want to use OEM parts whenever they can, as a rule. It’s absolutely a benefit to them, especially since they don’t have to pay a dime to use it.”

AutoWest Honda Roseville is adding more body shops to CollisionLink all the time. “We have something in the area of 30–40 shops that we’ve signed up. Traditionally, the big box body shop chains sign up and use it enthusiastically, while many of the smaller shops have resisted using the tool. We’re able to convert aftermarket or recycled parts to OE parts about 96% of the time,” Shaw said.

How is Shaw able to get body shops to use CollisionLink, especially when they’re reluctant to try it? “Our outside sales person Suzie Troth is constantly visiting body shops to tell them how much CollisionLink can benefit their business. Then it’s just a matter of them perceiving the value.

We also try to educate them over the phone, stressing the ease-of-use and the fact that it takes all of the guesswork out of the process. It quantifies precisely what the parts are and what the prices are—so we can be sure we’re comparing apples and apples.”

BASF Names Vitor Margaronis Marketing Director for North America Automotive Refinish, OEM, and Industrial/Commercial Transport Systems Business BASF Automotive Refinish announced August 31 that it has named Vitor Margaronis as Marketing Director for BASF Coatings, North America. In his new role, Vitor is re-

year history that began at BASF in Canada. During his tenure, Vitor has held several management level positions with increasing responsibility in the areas of marketing, finance, logistics operations and project management.

Vitor has a Bachelor of Commerce degree and an MBA in Marketing from McMaster University in Hamilton, Ontario.

“With his deep understanding of BASF businesses, customers and markets, Vitor is an excellent addition to our team. His varied and diVitor Margaronis, BASF’s new Marketing Director verse experiences across sponsible for directing the marketing BASF position him well for continued activities of the BASF Automotive success,” said Juan Carlos Ordonez, Refinish, OEM, Industrial and Com- Senior Vice President, BASF Coatmercial Transport Systems busi- ings North America. nesses.

To learn about BASF automotive Vitor comes to the BASF North refinish products, visit: America Coatings team after a 10www.basfrefinish.com.

Aftermarket Light Distributor Pleads Guilty, Fined $200K

Sabry Lee, a California-based distributor of non-OEM automotive lighting products for a similarly-named Taiwanese parts manufacturer, has pled guilty to one felony count for participating in a global price-fixing conspiracy. The company has agreed to pay a $200,000 fine and assist the U.S. Department of Justice (DOJ) with its continuing investigation of the industry. The DOJ says Sabry Lee participated in the conspiracy from 2003 to 2005, meeting with co-conspirators and agreeing to set prices for nonOEM lighting in order to suppress or eliminate competition. The co-conspirators issued price announcements and price lists in accordance with agreements reached, and collected and exchanged information on prices and sales of aftermarket auto lights in order to monitor and enforce adherence to the agreed-upon prices. The DOJ said that the conspirators met in Taiwan, the United States and elsewhere for their discussions. Sabry Lee is the first corporation to be charged in connection with the department’s ongoing investigation into the aftermarket auto lights industry. Three individuals have also been charged.

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 29

Continued from Page 27

Avery Claims Fraud

bankrolled by insurance companies and others who lobby for damage award caps, with Karmeier well aware of State Farm’s involvement in his campaign, the plaintiffs’ filing said.

Such contributions “created a constitutionally unacceptable risk of bias such that (Karmeier’s) participation and vote to reverse the $1.05 billion judgment deprived (the) petitioners of their due-process rights,” according to the petition, which asks the state’s Supreme Court to rehear the case without Karmeier. Ironically perhaps, the plaintiffs also petitioned that Justice Karmeier not be allowed to participate in the decision as to whether or not he should be excluded.

“In the final analysis, this evidence not only substantiates, but confirms, once and for all, that State Farm deliberately lied to and misled this court, and concealed information from this court in 2005,” reads the filing. State Farm said in a statement that “this case was resolved by the Illinois Supreme Court years ago, and (the) plaintiffs’ attempt to appeal to the U.S. Supreme Court was rejected.”

State Farm responded to the charge of excessive support of Karmeier in 2005 by flatly denying “engineering contributions” to Karmeier’s campaign “for the purpose of impacting the outcome of this case [Avery].”

Background on Avery v State Farm The original complaint was filed in July 1997 in a breach of contract case in which the plaintiffs alleged that State Farm promised “to restore plaintiffs’vehicles to their pre-loss condition using parts of ‘like kind and quality,’” but, it was claimed, State Farm’s uniform practice was to specify the use of nonOEM crash parts to repair its policyholders’ cars in every instance in which such cheaper parts were available.

At the core of the case in the Supreme Court appeal was the meaning of the term “like kind and quality” as used in State Farm’s insurance contracts, and whether, as the plaintiffs argued, the term meant “like kind and quality to OEM parts”—or, as State Farm argued, it meant “sufficient to restore a vehicle to its preloss condition.” However, in the circuit court, the plaintiffs also alleged that the non-OEM parts at issue in this case were ‘categorically inferior’ to

their OEM counterparts. In the plaintiffs view, non-OEM parts could never satisfy State Farm’s “like kind and quality” obligation. The plaintiffs argued: “As a practical matter, [State Farm’s] obligation could be met only by requiring the exclusive use in repairs of factory-authorized or OEM parts.”

The Illinois Supreme Court ultimately sided with State Farm as to the meaning of “like kind and quality,” noting that two main State Farm policy forms outlined the option to use nonOEM parts in the repair—or, required the insured to pay the cost of parts that resulted in “better than like kind and quality.” The inference was that better than must refer to OEM and therefore like kind and quality must not refer to OEM. Another key to the class action’s validity was whether or not State Farm’s contractual obligation was the same for all members of the class. State Farm argued repeatedly that it had many different contracts, and that certification of the class action should not be based on a uniform, singular contract with insureds.

At circuit trial, the court and jury were charged with resolving the classwide question of whether State Farm, by requiring the uniform use of non-OEM

crash parts, and through the course of conduct it designed to conceal the true import of this practice from its policyholders, breached its contractual obligations and committed consumer fraud.

The court gave the jury instructions that State Farm’s contractual obligation was “exactly the same, whether State Farm promised to pay for crash parts of like kind and quality or promised to pay for crash parts which restore a vehicle to its pre-loss condition.” This disputed instruction became a key to the outcome of the Supreme Court’s reversal.

The circuit court trial began on August 16, 1999, and lasted several days, involving hundreds of exhibits and testimony by dozens of witnesses. Each side presented the testimony of experts and body shop witnesses in support of their respective positions.

The class-members were awarded $1.186 billion and State Farm immediately appealed the decision only to have the Appellate Court affirm the decision in 2001, albeit with an award reduced to just over $1 billion. In 2002, State Farm again appealed the case to the Illinois Supreme Court who eventually, in 2005, voted 4–2 to overturn the Appellate Court decision in favor of State Farm.

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Parts Hours: Mon - Fri: 7:30 - 5:30; Sat: 7:30 - 4:00 1260 Wilmington Pike, West Chester, PA 19382

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30 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

PARTS: 484-313-1110 ORDER FAX: 484-313-1002

Parts Manager: David Dexter

Continued from Cover

NACE Schedule

Note also the ASRW Industry Forum, Weds. 4:30-7:00 pm, to attend 1.Trends in Collision Repair: A Futurist Discussion (collision) and 1. The Changing Climate of Insurance Agreements (collision)

October 5

Wednesday / 8am–12pm

Title: Inspecting Repairs for Quality Control (QUA01) / Instructor: Bob Zelano / Code: IC01 Title: Steel Utilized Structures, Technologies & Repair (SPS07) / Instructor: I-CAR Instructor / Code: IC02

Title: Collision Repair for Toyota, Lexus, and Scion Vehicles (TOY01) / Instructor: I-CAR Instructor / Code: IC03

Wednesday / 8:30am-10am

Title: How to Build a Better You / Instructor: Bryan Dodge, Dodge Development / Code: WE01NC

Title: Marketing for a DRP - Acquiring the Business / Instructor: Hank Nunn, AutoNation / Code: WE02N

Title: Creating a Positive Work Environment / Instructor: Felicia Funchess, BASF / Code: WE03N

Title: Post Repair Problems Related to Undercarriage Issues, TPMS and ESC Lights / Instructor: John Shewbridge, Hunter Engineering / Code: WE04N

Wednesday / 8:30am-11:30am

Title: Ignite the Internet! Internet Marketing for Auto Repair Professionals / Instructor: Danny Sanchez, Autoshop Solutions / Code: WE05C

Title: Creating Raving Fans for Your Business / Instructor: Chris Chesney, CARQUEST Technical Institute / Code: WE06NC Title: The Mechanics of Estimating / Instructor: Mike Anderson, Collision Advice / Code: WE07N Title: Sherlock Holmes Diagnosis / Instructor: Jim Morton, Morton’s Automotive Technical Services / Code: WE08C

Title: Hybrid Technology (Powered by CARQUEST Technical Institute) / Instructor: George Lesniak, CARQUEST Technical Institute / Code: WE09C

Wednesday / 10:30am-12pm

Title: What to Do When an Inspector Knocks on Your Door / Instructor: Eric

Schmitz, KPA / Code: WE10NC

Title: Give Me Your Keys Please / Instructor: Tony Nethery, Colormatch Automotive Refinish / Code: WE11NC Title: Why Lean Implementations Fail in the Collision Repair Industry (Repeated on Thursday-TH10N) / Instructor: Tony Passwater, AEII / Code: WE12N Title:Design-BasedRepairs(RepeatedonFriday-FR10N) /Instructor:Richard Perry,Chief Automotive Technologies / Code: WE13N

Wednesday / 1pm-5pm

Title: Collision Repair for Ford & Lincoln Vehicles (FOR05) / Instructor: ICAR Instructor / Code: IC04

Title: Overview of Cycle Time Improvement for the Collision Repair Process (CYC01) / Instructor: I-CAR Instructor / Code: IC05 Title: Hybrid Electric & Alternative Fuel Vehicles (ALT02) / Instructor: I-CAR Instructor / Code: IC06

Wednesday / 1pm-2:30pm

Title: Building a Team That Works Without You / Instructor: Bryan Dodge, Dodge Development / Code: WE14NC

Title: Game On: Engaging the Gen Y Customer / Instructor: Ryan Schneider,

Insomniac Games / Code: WE15NC

Title: Back to Basics - Body Shop Financials / Instructor: Hank Nunn, AutoNation / Code: WE16N

Title: Winning With a Professional Road Map / Instructor: Becky Glauser, ContactPoint / Code: WE17NC

Wednesday / 1pm-4pm

Title: Winning Women Customers / Instructor: Margie Seyfer, Impact Presentations / Code: WE18NC

Title: Lean 3.0 - Flow = A Practical Path to Using Lean to Improve Process Flow / Instructor: John Swiegart, The Body Shop @, and Steve Trapp, DuPont / Code: WE19N

Title: I Object! / Instructor: Maylan Newton, E.S.I. / Code: WE20C Title: Farming Your Indsutry / Instructor: Aaron Clements, C and C Automotive / Code: WE21C

Title: Variable Valve Timing System Diagnosis (Powered by CARQUEST Technical Institute) / Instructor: Glenn Young, CARQUEST Technical Institute / Code: WE22C

Wednesday / 3pm-4:30pm

Title: Creating a Business That Works FOR You, Not Just BECAUSE of You /

BMW of Turnersville

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(800) 883-0005

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Technical assistance available.

Competitive discounts.

BMW of Turnersville 3400 Route 42, Turnersville, NJ 08012 mgoldstein@bmwofturnersville.com

Parts Manager: Matt Goldstein Hours: Mon-Sat 7:30am - 6pm

Audi Turnersville 3400 Route 42, Turnersville, NJ, 08012 Parts Direct: (877) 826-2558 Fax: (856) 649-7185 Fax www.auditurnersville.com Email: mgoldstein2@penskeautomotive.com Parts Manager: Matt Goldstein Hours: Monday – Friday, 8:00 am – 5:00 pm www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 31

Deep Inventory – Competitive Pricing Genuine Subaru Quality Call Today!

32 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

NEW JERSEY

PENNSYLVANIA

Apple Subaru

Faulkner Subaru

Minooka Subaru

Mon.-Fri. 8-5; Sat. 8-4 parts@subaruofcherryhill.com

Mon.-Thu. 7-6; Fri. 7-5; Sat. 7-3 applesubaruparts@appleauto1.com

Mon.-Fri. 7:30-5; Sat. 8-12 mbechtel@faulknerharrisburg.com

Mon.-Fri. 8-5 parts@minookasubaru.com

Trenton (609) 883-6447

Wexford (412) 364-2800

Doylestown (888) 556-3447

Subaru of Cherry Hill Cherry Hill (888) 505-1184

Coleman Subaru Mon.-Fri. 8-5; Sat. 8-12 parts@colemancars.com

Miller Subaru Lumberton (609) 261-7844

Mon.-Fri. 8-5; Sat. 8-12 dseward@millertransgroup.com

York (888) 258-5512

Baierl Subaru

Mon., Thu. 8-8 Tue., Wed., Fri. 8-5 davemcconnell@baierl.com

Bowser Subaru Pleasant Hills (800) 231-4452

World Subaru

Wholesale Parts Center Mon.-Fri. 7:30-5 parts@powerofbowser.com

Mon.-Fri. 8-5; Sat. 8-12 parts@jeepsubaru.com

Feasterville (888) 736-7799

Tinton Falls (732) 345-6555

DELAWARE

Matt Slap Subaru Newark (800) 387-8521

Mon.-Sat. 8-5 jimferguson@mattslap.com

Colonial Subaru

Mon.,-Fri. 8-5; Sat. 8-4 parts@colonialvwsubaru.com

Day Apollo Subaru Moon Township (412) 264-7171

Mon.-Fri. 8-7; Sat. 8-2 vwsubaruparts@dayauto.com

Day West Liberty Subaru Pittsburgh (412) 343-2142

Mon. 8-7; Tue.-Fri. 8-5; Sat. 8-2 subaruparts@dayauto.com

Harrisburg (717) 213-3446

Moosic (800) 982-4054

Fred Beans Subaru

New Motors Subaru

Mon.-Fri. 7:30-5; Sat. 7:30-3 fredbeansparts@fredbeans.com

Mon.-Tue. 8-8; Wed. 8-6 Thu. 8-8; Fri. 8-6; Sat. 8-12 parts@newmotors.com

Glanzmann Subaru Jenkintown (800) 440-0130

Mon.-Fri. 7:30-5; Sat. 9-3 parts@glanzmann.com

Kerven Subaru Butler (800) KERVEN-9

Erie (877) 732-2478

Rafferty Subaru Newton Square (610) 353-6906

Mon.-Fri. 8-5; Sat. 8-4 raffertyparts@aol.com

Steve Moyer Subaru Leesport (800) 995-2627

Mon., Thu. 8-9; Tue., Wed., Fri. 8-5:30; Sat. 8:30-1 parts@kervensubaru.com

Mon.-Thu. 7-5; Fri. 7-4:30; Sat. 8-12 parts@stevemoyersubaru.com

East Petersburg (800) 215-5644 Ext. 2002

Northumberland (877) 995-7822

Lancaster Subaru

Mon.-Tue. 7:30-5; Wed. 7:30-8; Thu.-Fri. 7:30-5; Sat. 8-12 subaruparts@lcmotors.net

Lawrence Subaru Hanover (717) 637-6664

Mon.-Fri. 7:30-5 lawsubparts@hotmail.com

W&L Subaru Mon.-Fri. 8-4:30 wlparts@ptd.net

Welsh Subaru Limerick (610) 489-4198

Mon., Wed., Fri. 8-5 Tue.-Thu. 8-8; Sat. 8-2 parts1@welshsubaru.com

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 33

Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca

www.autobodynews.com

Autobody News

Kia Sorentos Recalled for Faulty Front Airbags

The National Highway Traffic Safety Administration along with Kia Motors have announced a recall of more than 10,600 ‘07 and ‘08 Kia Sorento sport utility vehicles.

The problem: Faulty programming may incorrectly deactivate the front passenger airbag for adult riders, according to Consumer Reports.

The issue affects the Occupant Classification System (OCS) installed in 2007 and 2008 model year Sorento SUVs manufactured from June 2006 through September 2007.

The OCS is designed to turn off the airbag if a child or a baby seat is in the front passenger seat. Faulty programming, however, will also prevent the passenger airbag from deploying during a collision if a heavier adult rider is occupying the front seat. (The "passenger airbag off" warning light on the Sorento’s dashboard, however, does alert drivers and occupants of the deactivation.)

Kia is currently advising owners of affected Sorento vehicles to bring their SUVs into local dealerships where technicians will reprogram the OCS to operate correctly.

For more information, consumers can contact Kia’s toll free customer service live (800-333-4542) or visit the NHTSA website: www.SaferCar.gov.

NEW YORK • NEW JERSEY • PENNSYLVANIA • DELAWARE

Subarus Recalled Because Moonroof Can Detach Subaru is recalling 69,590 2011 Legacy and Outback vehicles because the moonroof glass can loosen and detach from the roof during driving, according to the National Highway Traffic Safety Administration.

"The moonroof glass comes loose or off," said NHTSA in its recalls summary of the problem. "The amount and position of the adhesive between the glass and retainer was inadequately applied. The moonroof glass can loosen and detach from the vehicle during driving, resulting in a potential road hazard for other vehicles, increasing the risk of a crash."

It is the second recall for the 2011 Legacy and Outback this week.

Earlier, Subaru recalled 195,080 2010-'11 Legacy and Outbacks because components inside the wiper motor bottom cover may overheat and could lead to a fire, according to NHTSA. In other documentation filed with the federal government, Subaru said it has received one technical report of the moonroof defect in the U.S. Subaru dealers will inspect the glass adhesion condition and either apply additional adhesive or replace the moonroof glass. The recall is expected to begin in October. Owners can contact Subaru at 1-800-7822783.

Subaru Legacy and Outback Recalled for Windshield Wipers Subaru is recalling 195,080 Legacy and Outback vehicles from model year 2010 to 2011 because the bottom cover of the windshield wiper can overheat, causing the wiper to malfunction, according to Consumer Reports.

If the wiper is inoperable, then it can reduce visibility and increase the likelihood of a crash, or the overheated wiper can cause a fire.

The affected vehicles were manufactured from January 7 through May 20, 2011.

The safety recall is expected to begin in November. Subaru will notify owners and dealers will replace the

front wiper motor bottom cover assembly for free.

For more information owners can contact Subaru at 800-782-2783, or The National Highway Traffic Safety Administration’s Vehicle Safety Hotline at 888-327-4236 or visit Safercar.gov. The Subaru safety recall number is WVV-32.

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34 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

VW Recalls Jettas With Too Long Tailpipes

October 2011

Subaru/Saab Recalls Models for Suspension Corrosion

Volkswagen of America has a hot tip, literally, for owners of its latest Jetta cars. Be careful of your Jetta’s exhaust pipe, according to Consumer Reports.

Last week, the German car company along with the National Highway Transportation Safety Administration issued a recall for certain 2011-2012 model year Jettas.

The problem: stainless steel tips added to the end of exhaust pipes may extend the length of the factoryinstalled pipes beyond design specifications. This flaw may make it possible for a person to receive exhaust system burns—say, by inadvertently brushing an exposed leg against the exhaust pipe tips while unloading the trunk after a shopping trip. Approximately 30,300 Jetta models may have had these steel tips installed at shipping ports during the vehicles’ importation into America.

Volkswagen says in November it will notify affected owners to bring their Jettas into local dealerships. Technicians will inspect the Jetta’s exhaust system and, if necessary, replace the tips to bring the pipes’ length back to design specifications. For more information, consumers can contact Volkswagen’s toll-free customer care line (800822-8987) or visit the NHTSA’s website: www.SaferCar.gov.

Subaru is recalling 295,123 2002 to 2007 Impreza, 2003 to 2008 Forester, and 2005 to 2006 Saab 92X vehicles due to corrosion, which could cause the front lower control arm in affected vehicles to break, according to Consumer Reports.

The control arm could break at the hanger bracket if the bracket is exposed to salty and humid road environments, such as roadways covered in snow-melting agents. A broken control arm can cause a driver to lose control of the vehicle and increases the risk of a crash.

Affected vehicles were sold in or are currently registered in the following states: Connecticut, Delaware, Iowa, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Minnisota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin, and the District of Columbia. Affected vehicles were manufactured between Sept. 5, 2000 and Nov. 26, 2007. Subaru dealers will inspect for corrosion and either rustproof or replace the front lower control arms for free, depending on how much corrosion damage has already occurred.

Vehicle owners can call Subaru at 800-782-2783, or visit Safercar.gov.

The U.S. National Highway Traffic Safety Administration and American Honda have issued a recall of 20092011 model year Honda Pilot SUVs for concerns over the sport utility vehicles’ front seat belts, according to Consumer Reports.

Both the NHTSA and Honda report that the stitching that holds the driver’s and front passenger’s seat belt to their respective anchor webbings may be missing or incomplete.

Such flaws may allow the seat belt to detach from its anchor during a collision and increase the risk of injury.

Nearly 311,000 examples of the

popular Honda SUV may have this default.

Honda says it will begin to notify affected owners on or near October 3 and advise them to bring their Pilots in to local dealerships.

Technicians there will inspect the front seat belts and, if necessary, will perform the repair for free.

Pilot owners can obtain more information about the recall from American Honda (800-999-1009) and from the NHTSA’s website: www.SaferCar.gov.

Nearly 311,000 Honda Pilots Recalled for Front Seat Belts

www.autobodynews.com CHECK IT OUT!

Gonzo’s Toolbox

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com.

Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

When Something ‘Common’ Turns Out to be Not So Common with Gonzo Weaver

Ok, who out there knows everything about automotive repair? Who out there has seen it all, and wouldn’t be surprised if something so common to do now turns out to be not so common? Well, one thing is for sure—it ain’t me. I learn something new about this crazy car business every day. Especially when it comes to the electronics in today’s cars.

Even though I’ve spent a lifetime repairing these electrical nightmares that come into my shop, it still has its surprises. These days it’s not only the wiring, but some of the results I see from the scanners that can be just as unexpected.

My buddy Tom’s 2005 Cadillac Escalade EXT was having some problems. It’s a well kept, clean and in great shape ride. The suspension system was sending the driver its little notice across the dash message banner, “Suspension system service needed”.

“Sure, bring it in Tom. I’ll throw it on the scanner and see what’s going on,” I told my old pal.

I grabbed the Tech 2 with the CAN unit hooked up to it and headed to the car. Only one code, C0660 was stored—“Level Control Exhaust Valve”.

“Ouch Tom, that’s going to mean a new pump unit, because the valve isn’t something that is sold separately, as far as I know,” I told him, “But let’s run the diagnostic test and make sure.”

Tom and I are old friends, and he gets a kick out of watching the technical wizardry of the scanners, and the processes we as technicians and mechanics go through to make the repairs on these cars. He’s known me for so long he knows I’m not one to skip or guess at the repair. I like to know that what I’m doing is correct and as precise as it can be.

With Tom watching over my

shoulder (as he always does), I pulled up the diagnostics for the code on the shop PC. I printed a copy to carry out to the car, and Tom read step one of the diagnostics out loud.

“Perform a Diagnostic System Check. What’s that?” he asked.

“Read the codes, check for anything that looks out of place…stuff like that, and verify complaint,” I told him.

“Well, what do ya think?” he wanted to know.

“Let’s go to step 2,” I said.

Tom reads on: “Step 2 : 1.Install a scan tool.

2.Turn On Ignition, with the engine Off. 3.With the scan tool, command the exhaust solenoid On and Off Does the exhaust solenoid valve turn ON and OFF with each command?

Yes or No.” After several years using a scanner it’s not uncommon to activate a

solenoid or a component this way. A lot of times I use this same test to check transmission shift solenoids, or turn on a blower motor, maybe even activate the A/C compressor. There are so many components that can be activated this way, and it makes the job a lot easier once you get the hang of using the scanner. This was no different, or was it?

I found the section on the scanner and hit the ON button; instead of a “click” or a constant OFF on the screen information I got an error message. “No communication with Suspension Module”. I tried it several times, same results every time.

Tom looking a little puzzled, “It should have activated the solenoid or something right?”

“What was the question on 2 again, Tom?” I asked, since he was holding the paper work.

See Common, Page 36

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 35

Continued from Page 35

Common

“It wants to know if Yes, see Diagnostic Aids, If NO, go to step 3,”” Tom reads on, “But it doesn’t say what to do if there is no communication.”

Normally, if I was activating a solenoid I would listen for that “click”, if I didn’t hear the “click” I would read the screen to see if the activation was accepted, and see if it had switched from ON to OFF, but I’ve never seen the scanner go from perfect communication to “no communication” as soon as I tried to activate a solenoid. Just to double check things, I wanted to activate the compressor from the scanner, since it was on the same page as the exhaust solenoid. I tried it, same thing, “No-Comm”.

Ok, for all you techies out there— before you read the rest of this— what’s your first idea as to what’s going on with this vehicle? Is it a buss line problem, a suspension module problem, or is it merely the exhaust valve? No fair if you’ve already run across this, time to take your guess.

Ok, now don’t change your answer.

Here we go with the rest of the story.

I took a chance, since I had some sort of communication with the module. I thought I might as well look at the wiring diagram and see if I could activate the valve and the compressor directly at the module. On pin #B5— Dk. Blue—of the module was the ground signal from the module to the exhaust valve. I grounded the lead— “click” the valve worked, (and that was what the code was for) I then found the ground lead that activated the compressor relay; lead A10 – Lt. Blue—it too worked.

“Now Tom, that doesn’t mean that it’s working back there at the compressor, just because I turned them on, is no guarantee its pumping air into the shocks. You know, I’m not a 100% sure what’s going on, let’s get a second opinion. I’m thinking, module, and if it is the module we’ll have to reprogram it. But before I condemn the module, I think we should get that second opinion.”

Since I didn’t sound sure of myself, Tom said he would run over to the dealer and see what they said. I was concerned that my Tech 2 might be the problem. I couldn’t be sure

without finding someone else with the same equipment and do the same test.

Not only was it for Tom’s Escalade, but also for my sake. I wanted to be sure my scanner was working OK. It wasn’t even an hour later, and he was back over to my shop.

“They said it needs a compressor assembly and both shocks. Because they said the shocks are leaking.”

“Leaking? Tom, has it ever dropped since the pump stopped working?”

“No, never has” “I don’t think you need shocks, but I’ll have to lean towards the pump, but that doesn’t explain the “nocomm”, we both know the code said the exhaust solenoid was out—two different scanners same results there.

I’m sure they’re more familiar with it than I am, sounds like we should start with a compressor. I’m not ruling out the module yet, and I’m very positive that you don’t need shocks. But, there might be some feedback signal that the test isn’t telling me about that might be the cause of the “No-comm”.

Let’s change the compressor”.

Got a new compressor assembly and put it into place.

“Start it up Tom.”

As soon as he turned the key he knew it was fixed, the suspension message was gone, and the dash was back to normal.

“Tom, let’s back it out of the way of the lift and try the scanner again.”

We did just that, and wouldn’t ya know it, each and every time I activated the solenoid or the compressor it came on. The code was no longer current but was in the history file. I cleared the codes and ran thru the test again—all clear.

Ok, what did you think it was?

How many guessed that it wasn’t the exhaust valve that was bad, even thought that was the code. What it turned out to be was the pressure sensor mounted on the pump. When the info didn’t make it to the module, the module shuts down any and all operation— including, scanner capabilities. I wouldn’t have believed it myself, but I watched it happen right in front of me.

So if you run across a suspension system on one of these Escalades, and the test asks to activate the exhaust solenoid, and the scanner says “NoComm”, check that pressure sensor for its reference return signal. You can bet I made a note about this one.

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Instructor: Robert Clements, E-Myth Benchmark / Code: WE23NC

Title: Positioning Your Shop for Success in the Internet Economy / Instructor: Maurice Sternemann, Demandforce, Inc. / Code: WE24NC Title: GREEN - It Benefits People and Business (Panel) / Instructor: Trish Serratore (Moderator), ASE / Code: WE25NC

Title: Zeroing in on Profit Improvement Opportunities through Process Driven Repairs (Repeated on Friday - FR20N) / Instructor: Scott Peirce and John Spoto, 3M Company / Code: WE26N Title: The Changing I.T. Environment– The Clouds Are Rolling In / Instructor: Fred Iantoro, CIECA / Code: WE27N

Title: Stop Guessing and Start Knowing / Instructor: Tom McGee, ALLDATA / Code: WE28N

October 6

Thursday / 12pm–1:30pm

Title: Accessory Belt Drive System Diagnosis / Instructor: Bobby Bassett, Gates Corporation / Code:TH01C Title: TPMS Update (Powered by CAR-

QUEST Technical Institute) / Instructor: Jim Cokonis, CARQUEST Technical Institute / Code:TH02C

Thursday / 2pm-5pm

Title: Introduction to Lean / Instructor:Bernie Blickenstaff, Pro FinishesPLUS / Code:TH03N

Title: Crash Course in Internet Marketing! Internet Marketing for the Collision Industry / Instructor: Danny Sanchez, Autoshop Solutions / Code:TH13N

Title: Increasing Technician Efficiency–It’s a Team Effort / Instructor: Ryan Kooiman, Standard Motor Products / Code:TH04C Title: The Changing Marketplace Continues...Now What Drives the Bottom Line?–Part 1 / Instructor: Bob Greenwood, Automotive Aftermarket ELearning Centre Ltd / Code:TH05C

Title: Essential Electronics (Powered by CARQUEST Technical Institute) / Instructor: Carl Schweikert, CARQUEST Technical Institute / Code:TH06C

Thursday / 3pm-4:30pm

Title:Attitude is Everything! / Instructor: Maylan Newton, E.S.I. / Code:TH07NC

Title: Leading Change / Instructor: Felicia Funchess, BASF / Code:TH08N

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Title: Negotiation Skills–Key to Improved Profitability / Instructor: Hank Nunn, AutoNation / Code:TH08N

Title: Why Lean Implementations Fail in the Collision Repair Industry / Instructor: Tony Passwater, AEII / Code:TH10N Title: Parts Procurement Tips for Estimators (Panel) / Instructor: Mike Anderson, Collision Advice and Ron Kuehn, Collision Business Solutions, Inc. / Code:TH11N

Title: Leading and Succeeding: Cultivating Leadership Skills That Benefit You and Your Organization / Instructor: Marcy Tieger, Symphony Advisors, LLC/ Code:TH12NC Title:Electrical Troubleshooting for the Body Shop Tech / Instructor: Jim Morton, Morton’s Automotive Technical Services/ Code:TH14N

October 7

Friday / 7:30am–10:30am

Title: The Power of Change / Instructor: Richard Flint, Richard Flint International / Code: FR01NC

Title: Simple Cycle Time Solutions / Instructor:Ron Kuehn, Collision Business Solutions, Inc. / Code: FR02N

Title: The Changing Marketplace Continues...Now What Drives the Bottom Line?–Part 2 / Instructor: Bob Greenwood, Automotive Aftermarket ELearning Centre Ltd. / Code: FR03C

Title: Gas Direct Injection (Powered by CARQUEST Technical Institute) / Instructor: Jason Virdin, CARQUEST Technical Institute / Code: FR04C

Title: Insurance and Collision Repair Issues 2012 / Instructor: Robert Passmore / Code: PCI01

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Title: Communicating With People Who Drive Us Crazy / Instructor: Margie Seyfer, Impact Presentations / Code: FR05NC

Title: Dismantle the Social Network! Social Media Marketing for the Automotive Industry / Instructor: Danny Sanchez, Autoshop Solutions / Code: FR06NC

Title: Blueprinting Basics / Instructor: Bernie Blickenstaff,ProFinishesPLUS/Code:FR07N

Title: Practical Uses for eLearning in Collision Repair / Instructor: Dick Elder and Steve Trapp, DuPont / Code: FR08N

Title: Understanding Continuous Improvement / Instructor: Mike Anderson, CollisionAdvice / Code: FR09N

Title: Design-Based Repairs / Instructor: Richard Perry, Chief Automotive Technologies / Code: FR10N

Title: Ready, Set, Simplify: Tips to Simplify Your Work (and Your Life) / Instructor:Becky Glauser, ContactPoint / Code: FR11NC

Friday / 1pm-2:30pm

Title: Reality Repair Shop–What Would You Do? (Panel) / Instructor: T.J. Reilly, Same Day Auto Service / Code: FR12C Title: Immobilizer Service Opportunities (Powered by CARQUEST Technical Institute) / Instructor: Mark Olinger, CARQUEST Technical Institute / Code: FR13C

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Title: Survival Skills for Today’s Employer: HR Best Practices / Instructor: Cory King, Fine, Boggs & Perkins, LLP / Code: FR14NC

Title: Finding the Opportunity in Every Challenge (Panel) / Instructor: Aaron Clements, C and C Automotive / Code: FR15C Title: Hybrid Vehicle Service (Powered

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Title: Confident Selling–Do You Believe / Instructor: Maylan Newton, E.S.I. / Code: FR19NC Title:Zeroing in on Profit Improvement Opportunities Through Process Driven Repairs / Instructor: Scott Peirce and John Spoto, 3M Company / Code: FR20N

Title:Customer Service Done Differently / Instructor: Tony Nethery, Colomatch Automotive Refinish / Code: FR21N Title: New Marketing Technologies to Level the Playing Field / Instructor: Joe Gibson, CustomerLink / Code: FR22C

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Continued from Front Page

Insurance Commissioners

year, he quickly announced he was reorganizing the department’s antifraud division to focus on investigating insurance company fraud against consumers, rather than the other way around.

Doak fired six of the nine investigators of the anti-fraud unit, which had 142 open fraud cases, 120 of them involving complaints by insurance companies against policyholders. The anti-fraud division “had lost sight of its core mission,” Doak said, and it must now “focus on the white collar crime that threatens our policyholders.”

“Investigating policyholders is not a function of the Insurance Department,” deputy insurance commissioner Randy Brogdon said.

Steve Regan, chairman of the Collision Industry Conference (CIC) Governmental Committee, points out that insurers still have other ways to pursue the consumer fraud or Steve Regan other concerns they had brought to the Oklahoma Insurance Department. Regan said Doak was realigning a department that had essentially become an extension of insurance companies—without the authority to do so—rather than a regulator of insurers.

Buoyed by the apparent change in focus, the Oklahoma Auto Body Association is reportedly trying to increases its interactions with Doak’s office.

Meanwhile the Georgia Collision Industry Association helped develop a working relationship with Ralph Hudgens, that state’s insurance commissioner, by getting involved early in the election process last year. The association interviewed all the candidates for the office, both to understand their positions and to help make the candidates aware of the association and it’s members’ interests. When the commissioner’s office formed a property and casualty advisory board after Hugens’ election, GCIA had a seat on that board.

Shop owner Bruce Halcro, president of the Montana Collision Repair Specialists, said “persistence” has been the key to his group’s working

relationship with that state’s insurance division. The commissioner’s office, Halcro said, has been good about issuing bulletins to shops and insurers about new state laws the association has helped enact.

Those laws include a prohibition on insurers requiring vehicle-owners to take their cars to a specific shop for an estimate or repairs, and a requirement that insurers establish criteria for participation in a direct repair program—and open the program to any shop meeting that criteria.

This year, Halcro said, a new law was passed that prohibits an insurer from “unilaterally disregard(ing) a repair operation or cost identified by an estimating system” that the insurer and shop have agreed to use to determine the cost of repair. Halcro said the association will be meeting with Insurance Commissioner Monica Lindeen’s office “to find out how she will regulate that.”

The California Department of Insurance last year issued a memo reminding insurers of the state’s regulation requiring that all non-OEM parts specified be equal to OEM in terms of quality, safety, fit and performance, and carry permanent identification of their manufacturer.

“It has come to the Department’s attention that certain aftermarket bumper reinforcement bars may be significantly different in terms of like kind, quality, safety, fit and performance,” the memo states.

At the time, California Autobody Association Executive Director David McClune called the memo “a first step” toward the standardized parts traceability system the association said is necessary to enable a recall of parts found to be faulty or unsafe.

Though it operates essentially independently of the state insurance commissioner ’s office, the Massachusetts Auto Damage Appraiser Licensing Board (ADALB) helps Carl Garcia shops in that state deal with concerns about insurers, said shop owner Carl Garcia, who serves on the board. The ADALB consists of two shop representatives and two insurance representatives, all appointed by the Governor, and a fifth member, appointed by the state insurance commissioner, who serves as the chairman.

42 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

Garcia said one function the board serves is to oversee the licensing of all appraisers, both at shops and insurers. He said that process includes a written estimating test on the fundamentals of estimating.

“If you don’t know how to use the manual and don’t understand the concepts, you’re not getting licensed,” Garcia said. “It’s amazing how many people aren’t passing the test because they don’t understand how to correctly use the manuals.”

Garcia said the ADALB and insurance division help enforce such regulations as a prohibition on running drive-in claims at a shop, and a requirement that insurers send an appraiser to a shop within three business days of a supplement request, returning the completed supplement within one more business day.

Texas Among the Most Active Texas has had perhaps the most active insurance division in terms of addressing shop associations in recent years.

For the second time within a year, the Texas Department of Insurance this past June issued a bulletin reminding insurers that a one-year-old state law

prohibits them from “directly or indirectly” limiting auto insurance coverage by limiting policyholders from using a shop of their choice.

The bulletin also states that while an insurer is not required to pay more than a reasonable amount for repairs or repair parts, neither that nor policy language suggests that the reasonable amount for repairs or parts must be based on the amounts charged by DRP shops.

Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, said the bulletins were triggered in part by a survey of insurers the Department conducted with input from the Houston Auto Body Association. The Department asked about labor rate determination, shop referrals to consumers, DRP agreements, reimbursement caps or thresholds and other claims practices by the insurers.

“The Texas Department of Insurance, and not the association, said, ‘Hey, this is existing Texas code, and based on some of the survey answers we’re getting (from insurers), it may or may not be being followed,’” Schulenburg said.

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Elected vs. Appointed What do many of these states’ insurance commissioners have in common? Many are among the 11 such commissioners in the U.S. (including those in Kansas, Louisiana, North Carolina and North Dakota) who are elected to the position rather than appointed by a governor.

“If you operate in one of those 11 states where you have elected insurance commissioners, it seems like inquiries from individual or organization may be addressed a little quicker,” Regan said.

So is working toward making insurance commissioner an elected position a worthwhile endeavor for collision repairers hoping a state regulatory body more responsive to its needs?

The last time such a change was made in a state was in 1988, when California voters passed sweeping insurance reform with Prop 103. Many long-time collision repairers in that state say the change to an elected insurance commissioner has been a positive one though hardly a cure-all.

Regan said elected or appointed, the key to getting an insurance com-

missioner attuned to the needs of the industry are tenacity and consistency.

“The most important thing is you have to ask,” Regan said, noting that a state representative can sometimes provide a good entrée into a commissioner’s office for shops. “I hear it all the time: divisions of insurance do nothing. All that leads to really is people saying. ‘Why bother asking?’ I’d like to flip that on its head. Let’s start asking. We’ve seen some success stories. If you don’t ask, you won’t get anything.”

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

www.autobodynews.com CHECK IT OUT!

I-CAR Enhances Collision Repair Training at SEMA 2011 I-CAR will return to the SEMA Show 2011, November 1–4, at the Las Vegas Convention Center. I-CAR will offer eight collision repair training opportunities, including some new programs introduced in 2011. The training programs will provide attendees with updates on current vehicle design, new vehicle manufacturer recommendations, and “how-to” information on efficiently repairing vehicles.

I-CAR will be offering free informational sessions to all SEMA Show 2011 attendees. The following essions will take place at the SEMA Collision Repair & Refinish Stage: Aluminum Intensive Vehicles Structures, Automotive Aluminum MIG Welding Equipment and Techniques, Advanced High-Strength Steel Structures Design and Repair, and Advanced Lightweight Vehicle Technology and Repair.

John Van Alstyne, I-CAR CEO & President said, “The SEMA audience knows first-hand that vehicle technology is continually changing and staying informed on industry trends impacts everyone in the industry, including repairers, manufacturers, suppliers, and many others.”

Van Alstyne continued, “Reach-

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ing the audience at the SEMA Show 2011 will allow I-CAR to communicate an important industry message.

Collision repair training has a powerful impact on many areas of the automotive and collision repair industries, and aside from the important goal of ensuring vehicles are properly repaired, the benefits of relevant, up-todate training can improve both individual and business performance.” To register for I-CAR training at SEMA, visit the SEMA Show 2011 website (www.semashow.com). You must be registered for the SEMA Show 2011.

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 43

Inside Insurance with The Insurance Insider

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

Let’s Get Some Independent Testing to Move the Parts Battle away from Sandbox Bickering “The Insider” is an auto insurance company executive who wishes to remain anonymous. This column reflects his opinion and not necessarily that of Autobody News’ staff or contributors.

Since the arrival of the first non-OEM crash part from overseas a few decades ago, the debate has raged on over the value, safety and benefit of using these parts. It’s important to note that the rage hasn’t come from the consumer (you know, the person that actually has the parts installed on their vehicle). So if the consumer doesn’t seem to care, who does and why?

The people who seem to care the most are the companies trying to sell parts. The reason is pretty simple:

money. So the next time you see a press release, a simulated crash or a reaction to test with a reciprocating saw involving crash parts, be advised that what you are witnessing is a demonstration of big business fighting for market share and profitability.

I’m sure there are some safety concerns that need to be addressed.

But if there were a significant enough problem, I would surmise that a lawsuit involving a few high-powered attorneys illustrating the faultiness of non-OEM crash parts and the resulting death of a vehicle’s occupants would have happened at least once in the past few decades. If you are aware of one, please send it to Auto.Insurance.Insider@gmail.com. Lacking

that, what we really have are two kids who can’t play in the same sandbox.

The end result is a lot of propaganda, rife with chest-puffing, staged testing, wasted money, name-calling and an increased cost of parts to the consumer in order to offset the needless expenses—despite the car manufacturers trying to lead you to believe that it’s all in the name of safety.

Hey, automakers, don’t waste any more money trying to convince us that the parts aren’t safe. Do everyone a favor: show us the lawsuits and scientific data illustrating the fatal consequences of using non-OEM crash parts.

If you can’t, please spend your money some other way. Maybe donate it to a charity. Or here’s a suggestion: Consider reducing the price of your parts.

The non-OEM parts market can be divided among the “certified” or “non-certified.” Some might argue that they are one in the same, but I can assure that they are different most of the time. I should clarify: Sometimes a certified part is placed in a non-certified box. Why? Because it’s probably more economical for the parts manufacturer to produce and stock one part as opposed to two. However this represents a very small proportion of parts.

Unfortunately, certification doesn’t carry the high praise one might think. Most shops scoff at certification as nothing more than a way to charge more money. That isn’t the case. Certification provides a set of guidelines and a quality standard that the parts manufacturers must achieve. The certified non-OEM crash parts have improved as a direct result of certification.

So I may have just told you everything you already knew about non-OEM parts. But here’s something maybe you haven’t thought of: Have you watched any of the recent car manufacturers’ crash tests involving non-OEM crash parts? Have you seen the now infamous reciprocating saw demonstration of a non-OEM bumper reinforcement being cut in half? Did

44 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

you find it odd that the parts being tested were never identified? Yes, they told us the year, make and model of the vehicle for which the parts were designed. But did they tell us what type of certified part was used? Was it Diamond Standard? CAPA? Platinum Plus? NSF? My guess is that we will never know. Why? Because they probably didn’t use certified parts for their tests.

They used non-certified parts that are well-known throughout the industry as inferior. [Ed—See Toby Chess’ last column (Sept.) on clarifying the certification of parts tested.]

Here’s another suggestion. An organization that is not connected to the parts industry should pay to have an independent company blind-test a series of parts. There should be one sample for each type of part (OEM, non-OEM, and certified non-OEM). If there is more than one certification

(CAPA and NSF, for example) for a given part, then each type of certified part should be represented.

The parts should be tested by an accredited engineering company not associated with any of the OEMs, parts manufacturers or distributors. The tests should include static and dynamic testing. I would even recommend the ultra-scientific reciprocating saw test.

Then we would finally be able to put an end this bickering between companies vying to discredit the other. We’d have test results that would be difficult to dispute.

If you don’t support my idea, send me an e-mail telling me why. Otherwise, I will assume my throngs of devoted “Insider” followers are in full support, prepared to rally and take the hill. Charge!

Got a comment or question for the Insurance Insider? Email him at: Auto.Insurance.Insider@gmail.com.

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Continued from Page 21

Foose Brings It

elegant roadster body was my design and hand-formed by Marcel De Lay. The result is a custom body that is longer, lower and sleeker than a stock ’32 Ford, but one that retains the all of the character of that iconic roadster.

When Jerry and Maureen Magnuson of Magnusun Supercharger fame purchased theirs, they asked if I would be interested in working with them. When finished mechanically, essentially a blank canvas, it was turned over to us at Foose Design for the all-important paint, interior design and the Foose one-off signature billet wheels. We selected a two-tone BASF

Waterborne butterscotch pearl paint with champagne metallic overtones.

The buckskin tone leather interior was fabricated by Jim Griffin Upholstery and provides the perfect contrast to the paint. The subtle but artful details such as the hand-form moldings around the Carson top and body, a Duval-style split windshield and the copious amounts of plated and polished components set this ’32 Ford roadster apart from all others.

It features an LS-1 Chevy with an intercooled Magnacharger (not surprising, being that Jerry Magnuson is the owner and CEO of Magnuson Products!) Magnitude runs on custom one-off Foose Design wheels 17×7 in front and 20×10 in back and huge Pirelli Scorpion P-Zero tires all around.

Many of the mechanical systems were designed and fabricated by Jerry Magnuson at his supercharger company, Magna Charger that builds superchargers for cars and trucks like Corvettes, Camaros, Hemi Challengers and Hemi Rams. Magnuson’s early background included working

on Dan Gurney’s Eagle Indy cars, so his ability to design, fabricate and integrate mechanical systems is second nature. Unique items like the remote actuated hideaway headlights give the Magnatude sleekness and function.

The innovative air inlet scoop feeds the Magna Charger supercharged engine that is monitored by a custom billet dashboard. All were engineered and fabricated at Magna Charger. We finished it at Foose Design and debuted it at SEMA 2009.

After SEMA, the Magnatude toured the country hitting the Good Guys car show circuit where it won every competion it entered and garnered the Street Rod d’Elegance Crown at the Goodguys Del Mar Nationals. Jerry Magnuson and his wife Maureen accepted a challenge from the editors of HOT ROD magazine who dared them to drive the Magnatude on the 2010 Hot Rod Power

Tour, a 1370-mile cruise that encompassed eight days and seven impromptu car shows. The Magnatude, fresh off the California indoor show circuit, made the trip without incident.

HOT ROD readers were thrilled to see this Foose creation in person.

After the Power Tour, the Magnatude was taken to the Good Guys event in Columbus, Ohio where it was critically judged and won the prestigious Good Guys Street Rod of the Year. I am proud of our work at Foose combined with the great skills of Magnuson, and especially with how well it performed on Power Tour.

Hopefully the above details on the above will whet your appetite for more and you will join us at SEMA 2011.

It’s bound to be another standout year.

If you make it, stop by the Foose Booth out in the front and say hello.

See you at SEMA 2011!!

Give us your opinion on matters affecting the industry.

write us! publisher@autobodynews.com

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 45

Parts Profiles

Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com

What Happens When OEMs Really Support Body Shops with Larry Williams

I have written about two dealerships recently, the Lasher Auto Group, and Acura of Westchester, and their common ground to success. They both have a positive attitude. They take pride in their work, and enjoy taking good care of their customers. They deliver their service along with the parts.

Their customers know that their business is valued, and become loyal partners of the dealership. Everyone is making money and staying happy!

This commitment to customer service would be impossible, however, without support from the manufacturer. In this case the manufacturer is Honda/Acura, and the support is awesome. Once there was a time when manufacturer’s parts reps considered the dealers as their customers; looking no further for more business.

But times have changed. Now, Honda/Acura has a division, with fourteen field representatives, actively helping their dealers service their collision customers.

American Honda’s Collision Select Program is a wholesale support initiative, available to both Honda and Acura dealers, and supported by OEConnection’s CollisionLink product, which is OEConnection’s online parts procurement and management tool.

CollisionLink is also supported by GM, Ford, Chrysler, Nissan, Toyota, Infiniti, Lexus, Honda and Acura parts orders. Some of the major benefits of CollisionLink are: ■ Online OE parts ordering for every make and model, for any dealership selling OE crash parts.

■ Parts are automatically VIN validated or highlighted for dealers if wrong ■ Up to the minute order tracking, confirmations and status on one screen.

■ Process parts orders using all the major business management and estimating systems.

■ No more wondering if a fax was received. And less on hold phone wait time.

■ Faster processing by dealerships means faster turnaround and cycle time.

■ Send and receive photos and schematics.

■ Gives dealers the chance to offer OE parts at competitive pricing – they see non OE parts on orders. Plus, you see

when OE parts have possible discount opportunities from the dealership.

■ See Parts Price Increases (PPIs) between estimate and MSRP on CollisionLink orders.

■ Automatically detects and creates fax orders for dealers not accepting online orders.

If you need more than features to be convinced that CollisionLink can help your bottom line, consider this online comment from Mike “Smitty” Smith, Shop Supervisor at Fox and Fox Body Shop and Service in Ft. Wayne Indiana. Smitty said: “Using CollisionLink we’re definitely fixing cars faster for several reasons. One, our parts returns have gone down, because CollisionLink parts orders are more accurate, so we have the right parts when we need them. Two, using CollisionLink our dealers price-match OE parts against aftermarket, and everyone knows that OE parts fit better and install faster. Three, the parts ordering process is much faster and streamlined, freeing me up to stop potential problems. I now spend more time in the shop with the technicians helping them stay on track to repair cars that have short delivery dates. So, in all, I’m spending less time on parts management, our shop is pushing car repairs through faster, were building customer loyalty, and that’s all increasing revenue for the shop.” That’s CollisionLink.

Through the Collision Select program, Honda says participating dealers are able to help independent body shops improve vehicle repair cycle time, reduce shop returns and administrative times, improve parts procurement work flow, and give shops an opportunity to use more Honda and Acura Genuine parts.

This division is still young (it launched two years ago), still growing, but has already made an impact on the collision repair industry. It started out by asking what was needed and how they could help. Usually corporate information retrieval results in a mountain of reports, and little else.

But, this time the end result was action! Whole-hearted participation in the CollisionLink program helps every one of their dealers. These deal-

46 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

ers can now supply quality parts at competitive prices to their customers.

“Quality parts” is the key phrase which results in a quality repair.

A quality repair results when the parts and workmanship combine with pride of craftsmanship to create a finished product which is indistinguishable from the original. In this context, I would use the word remanufactured; rather than repaired. As close as possible, the damage is erased; as if it never happened. The vehicle owner receives exactly what they expect, and more. This theme, customer service, guarantees return business and referrals.

Speaking of referrals, both Honda.com and Acura.com have a body shop referral system on the internet. American Honda Motor Co.’s Body Shop Recognition program has reached 500 participants in 40 states, the company announced this spring.

This site is currently being viewed more than 6000 times a month! Referrals from the manufacturer! How about that for actively supporting the collision industry The collaborative program involves OEConnection, DuPont Performance Coatings, PPG, BASF, Sherwin-Williams and AkzoNobel, which work together to create a supporting initiative for American Honda’s wholesale program, Collision Select.

Both dealer-owned and independent shops are eligible for the recognition program, but a Honda or Acura dealer participating in Collision Select has to sponsor them. Shops also have to participate in their paint company’s performance enhancement program and adopt CollisionLink.

Participating shops receive a plaque and have their contact information placed on a corporate Ameri-

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can Honda website in a searchable database accessible by Honda and Acura owners.

I just read an article in the Los Angeles Times saying that the repair industry has, in some cases, benefited from the recession. No, that doesn’t mean generous insurance settlements for older cars, but rather that people are still fixing their old vehicles rather than replacing them. The average car in the U.S. is approaching ten years old! This has caused some shops to see an increase in their customer pay business. Once again, customer service is key. Shops that keep their customers happy are always the ones that survive and grow, no matter what the economy dictates.

Once again, I congratulate the Lasher Auto Group, Acura of Westchester, and the support group at Honda/Acura Motor Company, for their success in these troubled times. I invite any others who also have a story of success to contact me, and join the Distinctive Dealerships Group here at Autobody News.

For more information go to the http://oeconnection.com site and check it out. Also honda.com and acura.com.

DuPont’s ProfitNet™ System Part of UTI’s CRRT Program

DuPont Performance Coatings (DPC) announced that Universal Technical Institute (UTI) has implemented the ProfitNetTM Management System into the Collision Repair and Refinish Technology (CRRT) training program at its Houston-based campus. UTI uses ProfitNetTM as a key technology tool to train its students how to manage a collision repair facility in every aspect of the business, which includes scheduling, production, job costing and financial management.

“DPC’s relationship with UTI is a long-term commitment to the educational process of preparing graduates for entry-level positions in the collision repair industry. We are proud that UTI has chosen ProfitNetTM as a technology tool to expand their training capabilities,” said Information Technology Services Manager Tom McGarry.

“ProfitNetTM provides UTI students and instructors a way to measure continuous improvement and see the direct impact lean principles have on speed of the process and cycle time.

For six weeks students see the results of eliminating the seven wastes, the increase in productivity, cycle time and the impact it all has on their virtual paycheck.

MI Company Says Its Electro-Mag Engine gets 1000 mi/charge Michigan’s Advantron Technologies claims it has the answers on how to really make electric vehicles work. The company has developed a patented new electro-magnetic engine technology that has more horsepower than traditional combustion engines and is a direct drive system that can be used with any vehicle. Advantron CEO, Matthew Lebenbom commented, “Our technology allows for electric vehicles not only to provide green technology to the consumer, but also the excitement and power of the combustion engine”. He goes on to point out that “ so far our simulation and testing has shown that our patent pending motor generator design will allow us to reach our goal of a 700–1000 mile range before needing complete recharging, as opposed to today’s’ current 30-50 mile range.” Lebenbom continued, “It’s our company’s technology that will push the electric vehicle into main stream America. Our technology is what makes the EV business model realistic.”

Lebenbom believes that his company’s technology has other applications in the aerospace, power sports, windmills, generators and marine industries too. Advantron Technologies is looking at setting up a technical center

in Oakland County, Michigan to build the first prototype. “Southeast Michigan is where we will design and develop this engine technology and also manufacturer it,” Lebenbom continued, “The high-tech workforce that we need is right here in Michigan, we wouldn’t dream of going anywhere else”.

Advantron Technologies expects to be up and running in their new facility by the end of the second quarter of 2012. In addition they will be expanding their work force with the hiring of additional engineers, mechanics and support staff. The company believes once the prototype is complete, even more customers will come forth inquiring about their technology. “Our engineers working on this technology now are top-notch. We expect the production part of this project to be just as remarkable”, commented Lebenbom.

J.D. Power and Associates projects sales of pure electric vehicles for this year of 2011 to be 10,727 rising to 95,939 in 2015. Industry estimates for total light-vehicle sales are in the 13,000,000 range, rising to nearly 14,000,000 units by 2015.

The current federal government administration set a goal of 1 million electric vehicles in use in the U.S. by 2015.

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 47

Knowledge is Power—Market Forces Control Total Loss Vehicle Valuations but Shops Can Profit from the Right Information In my recent Industry Trends feature article, Timing is Everything: Total Loss Values and Gas Prices, I explored the impact of rising fuel prices on resale values. This phenomenon initially interested me because I had

fuel prices and resale values?

2. What can collision repairers do about the total loss decision process that is primarily in insurance companies’ hands?

First things first—the findings We selected representative vehicles from our Total Loss Valuation Data

tween the two chart figures.

On the opposite end, there is a similar lag pattern with gas guzzlers, albeit with more volatility in the average total loss value price. Gas guzzler values are traditionally more volatile during fuel price fluctuations, depicting a “wait and see” mode for many owners that, unless faced with a total

A similar picture of a lag relationship between higher fuel prices and Toyota Corolla values (our fuel efficient representative) appears as well. Some may question why we used two vehicles from the same manufacturer, but because they have been top sellers in their class for a number of years and represent stable body

traded in my Chevrolet Suburban for a more fuel efficient vehicle just before fuel prices reached above $2.40 per gallon. Not too soon after, fuel prices rose to near record levels for the second time in recent history.

What we witnessed in this recent rise was, in large part, due to a group of futures investors. These speculators bet on the rise of fuel prices, and their investment actions in turn caused prices to remain inflated even when the price of the crude oil had fallen and production was not an issue.

In early May, the situation with gasoline futures became so intense the Obama Administration released some

Warehouse that would epitomize the hybrid, fuel efficient and gas guzzler categories—the Toyota Prius and Corolla and the Ford Expedition.

Looking at the relationship between fuel price spikes and values showed an obvious trend that has been verified by other evaluation and market sources—fuel efficient cars rose in value recently.

However, a second factor should be noted. There is a market reaction time, a delay between the rise in fuel prices and the rise in value of the most fuel efficient vehicle, the hybrid.

You’ll note in the Prius vs. Gas Price chart that our total loss average value

loss or urgent need to sell the vehicle, may elect to hold on to the vehicle and hope for a return to more moderate gas pricing.

styles (meaning that the launch of newly restyled cars that would lower value during the test period did not

by Greg Horn, Vice President of Industry Relations, Mitchell International

See Knowledge is Power, Page 62

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strategic oil supply onto the market to ease the spiraling price at the pumps, at least temporarily. There are a few important questions we need to answer to fully understand this chain of events and how the industry can learn from it: 1. What is the relationship between

for the Prius still shows an upward trajectory despite a lowering of fuel prices. That illustrates a market lag of approximately three weeks. If you were to visualize moving the total loss values over one column to the left, you would see a tighter correlation be-

48 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

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Martin Zurada is a San Francisco-based attorney who regularly advises and litigates on behalf of California’s auto body repair businesses. Contact him at: m.zurada@sflawyer360.com

Body Shop Law with Attorney Martin Zurada

Independent Contractors in your Auto Body Shop—El Dorado or Fool’s Gold?

Business owners who are struggling in a tight economy may be looking to shed some payroll costs by replacing employees with independent contractors. Some who pursue this strategy decide to lay off employees and hire independent contractors while others may rebrand some or all of their employees as independent contractors.

This reclassification may result in lower payroll costs and more profitable workers, but is not without significant peril.

State and federal governments have a strong incentive to make sure that businesses do not avoid taxes or circumvent employee protection laws by improperly labeling workers as independent contractors. Workers may also independently sue for misclassification. As a result, misclassification of any worker as an independent contractor may turn out to be much more costly than any benefits obtained

through the misclassification. This article discusses the distinction between employees and independent contractors, the pitfalls associated with classifying auto body workers as independent contractors, and offers suggestions on how to set up a working relationship that is legal and beneficial to both the auto body shop and the worker.

Hiring independent contractors may be advantageous to a business: Independent contractors may be cheaper, more efficient, and better motivated to work than employees due to the manner in which their compensation is structured. Independent contractors are paid based on the actual repairs they perform whereas employees are paid based on the number of hours they work. Independent contractors do not get paid overtime even when they work beyond a regular workday. Furthermore, if independent

contractors fail to perform the repairs adequately they will not be paid, whereas employees must be paid for the hours they work but may be fired for poor performance.

Payments made to independent contractors are ‘gross payments’, meaning that the independent contractor is responsible for paying all taxes, payroll deductions, workers’ compensation, and benefits such as health insurance and vacation time out of his or her own pocket. The main disadvantage of independent contractors is that a business that hires them must relinquish control over their day-today operations and permit them to function as their own bosses.

Being an independent contractor may be advantageous to a worker: Some workers like being independent contractors because they are their own boss and have an opportunity to make more money than employees. Inde-

pendent contractors work any hours they want, hire other workers to help them complete jobs, have the right to refuse repair jobs they do not like, and can work for more than one business.

Even though independent contractors do not get paid overtime, do not receive paid benefits, and pay their own taxes and workers’ compensation, they often earn significantly more than employees especially if they work efficiently and hire the right helpers. The main disadvantage of being an independent contractor is the economic risk of running one’s own business and the loss of legal protections that are afforded to employees.

Hiring independent contractors is not without risk: Merely converting workers into independent contractors, or indiscriminately hiring independent contractors, can lead to problems. Independent contractors working for an auto body shop are likely to trigger a

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state or federal investigation or audit.

In addition, independent contractors who have been terminated may file a lawsuit arguing that they were really employees who were misclassified as independent contractors and seek damages for failure to pay minimum wage and overtime as well as failure to provide rest and/or meal breaks. If administrative or civil proceedings demonstrate that the worker classified as an independent contractor was really an employee, the auto body shop will incur significant losses in the form of taxes, penalties, unpaid wages, interest, and attorneys’ fees.

A number of factors differentiate employees from independent contractors: An auto body shop must understand the legal distinctions between employees and independent contractors to avoid misclassifying employees as independent contractors. The distinction is often confusing because a line is being drawn in what may be a gray area. For example, everyone can tell the difference between a truck and a passenger car, but trying to conclusively determine whether an SUV is more like a truck or a passenger car is much more difficult. Governmental agencies and courts apply a broad test that examines every aspect of the work relationship to determine whether a particular worker is an employee or an independent contractor.

The test consists of a number of interrelated factors that generally fall into three categories: behavioral, financial, and formal.

The behavioral factors look into whether or not the auto body shop has the right to control the manner in which the worker does his or her job.

The focus is on the day-to-day interaction between the auto body shop and the worker, the type and degree of instruction being given, the manner in which the worker is evaluated, and any training that is being provided. A worker is an employee when the business has the right to direct or control the worker, and the worker is an independent contractor when such control is absent. The more the evaluations are based on how work is performed rather than end result and the more training is provided to the worker, the more likely that the worker is an employee rather than an independent contractor.

The financial factors focus on whether or not the business has the right to control the economic aspects of the worker’s job. The test focuses

on the investment made by the worker in the equipment used to perform the job, the extent to which the worker’s expenses are reimbursed, the worker’s ability to make or lose money, the worker’s ability to work for others, advertise, and maintain a visible business location, and the method of payment. If a worker uses the employer’s equipment, gets his or her expenses reimbursed, is insulated by the auto body shop from risk of loss or from opportunity to profit, works only for one particular business, and gets paid by the hour rather than on a commission basis, then the worker is more likely to be an employee.

The relationship factors look at how the worker and the auto body shop perceive their work relationship.

The factors include written contracts, employee benefits, permanency of the relationship, and the extent to which services being provided by the worker are a key activity of the business. A written contract stating that the worker is an employee, payment of employment benefits (insurance, pension, vacation or sick days), expectation that the relationship will be indefinite in duration rather than based on a project or time period, and activities performed by the worker being a key component of a business, will make it more likely that the worker is an employee.

Auto body workers are presumed to be employees: What the multi-factored test is getting at is whether, from a functional, economic, and formal point of view, the worker is running his or her own business or merely functioning as a small cog in the workings of an auto body shop. Even though auto body workers have some independent contractor attributes, they are very likely to be classified as employees unless the owner makes an honest, continuing and determined effort to make the workers be their own bosses. This strategy includes, but is not limited to, giving the worker a choice between being an independent contractor or an employee, giving up control over the worker’s day-to-day operations, leaving the worker free to work for other businesses and to hire his or her own employees, paying the worker based on the jobs finished (which may result in a much higher income than would be earned as an employee), and scrupulously documenting and monitoring the relationship. Categorizing auto body workers as independent contractors can be

50 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

very beneficial but is also risky and requires regular consultations with attorneys as well as a tremendous amount of discipline and legal planning.

Furthermore, an auto body shop should not attempt to hire independent contractors unless it is a win-win situation for both the business and the worker. The label of independent contractor should not be used as a pretext to get rid of employment regulations but to create a genuine opportunity for a more profitable relationship between the business and the worker. Unless an auto body shop is prepared to fully accept all of the drawbacks inherent in a decentralized working environment and is ready to scrupulously document and adhere to making workers truly independent, it should not attempt to classify any workers as independent contractors.

Employees can be incentivized to perform like independent contractors: Fortunately, workers can be classified as employees but paid a mixture of hourly pay and a bonus that encourages them to perform more efficiently because they receive incentives similar to those of independent contrac-

tors. Most auto body employees would be considered to be “non-exempt,” meaning that they cannot be paid a salary and must be paid on an hourly basis. However, written employment agreements with employees can guarantee payment of a lower hourly wage (at least minimum wage), appropriate overtime pay, and meal and rest breaks, while also paying a bonus based on jobs completed to the extent that the bonus owed exceeds the employees’ hourly pay. As a result, the employee would always be entitled to his or her hourly wages (including overtime) and the bonus would be calculated based on a percentage of money actually received from insurance companies for the jobs completed by the employee less the hourly wages due to the employee.

For example, if an employee was promised a 30% bonus and produced $10,000 in income for the auto body shop based on jobs the employee completed in a particular month, and the employee was paid $2,000 in wages for the specific hours worked during that month, then the employee would be owed a $1,000 bonus ($10,000 See Independent Contractors, Page 62

tC 2011

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Ford Motor Company Issues Response Statement to ABPA Crash Test Videos Ford Motor Company said that the recent report published by the Automotive Body Parts Association (ABPA), claiming Ford service parts are inferior to its production parts, is based on incomplete facts and only highlights the aftermarket parts industry’s lack of understanding about some aspects of the auto manufacturing process. The carmaker has issued a complete explanation. See coverage in Sept. issues of Autobody News, or online at autobodynews.com.

The ABPA report, published on September 9, cites engineering test results that show significant material differences between one Ford service part and the Ford production part it was designed to replace. Based on the result of that test, the ABPA concluded that Ford Genuine OEM Collision Replacement Parts are different than the original production components. The ABPA published the test results along with accusations that Ford was ‘grossly misrepresenting the truth’ when it claimed in a video that “Genuine Ford collision replacement parts are the same as those used

to manufacture the vehicle.”

Ford, however—acknowledging that the parts tested by NSF were indeed different—said the conclusion drawn by the ABPA is based on incomplete facts and that the 2005-2009 Mustang front bumper isolators tested by ABPA (through NSF) were both used for vehicle manufacturing as well as service replacement.

The carmaker said, “The parts referenced [by the ABPA] were used for both manufacturing and service replacement, and were thoroughly tested and proven to meet Ford’s specifications for the Mustang. The statements in Ford’s YouTube video are true and accurate and Ford stands behind all of them, including Ford’s claim that collision replacement parts are the same as those used to manufacture the vehicle.

“ABPA’s accusations highlight the aftermarket’s lack of understanding and difficulty staying current with the frequent running changes made by automakers in their quest to constantly improve vehicles,” Ford

Mazda 3 ‘11

noted. Here are the facts as presented

by Ford: Many part materials are exhaustively analyzed and tested by Ford during the vehicle development process to meet internal and external requirements for safety, quality, fuel economy, cost-of-ownership and breakthrough technologies. At Job 1 (first production assembly of a new model) for the 2005–2009 Mustang, specifications called for single-density polypropylene front and rear bumper isolators. However, as the vehicle had been tested and certified using a double-density polypropylene front bumper isolator, Ford maintained the use of that material until the vehicle could again be thoroughly tested and certified using the singledensity polypropylene front bumper isolator.

From Job 1 until January 18, 2007, the double-density polypropylene bumper isolator was used for both vehicle manufacturing and service replacement. Upon completing testing and proving the singledensity polypropylene front bumper

isolator met all requirements and specifications, it went into vehicle production and was used for both vehicle manufacturing and service replacement. As both double-and single-density bumper isolators were proven forward- and backward-compatible, both were available for service replacement until stock of the double-density isolators was exhausted.

Ford said, “This chronology illustrates the lengths that Ford goes through to thoroughly test our Genuine Ford OEM Collision replacement parts as part of an entire system. These facts and Ford’s continuing concerns with the fit, finish, material composition and structural integrity of aftermarket collision parts reinforce Ford’s position that Genuine Ford Replacement Collision Parts are the right choice for consumers.

The carmaker concluded, “As the NSF testing speaks to material differences, it would have been more complete and meaningful if the aftermarket polystyrene isolator had also See Ford Response to ABPA, Page 62

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The New, Lean, Customer Centric Auto Body Shop

by Harry Klein, Customer Engagement Strategies, www.customerengagement.com

What’s the first image that comes to mind for a customer about to walk into a body shop? Dirt? Grease?

Noise? Is there a waiting area? Is it some dark, post-apocalyptic movie scene?

Happily, this is a thing of the past in most shops, because many in the auto collision repair industry have awakened to the power and value of putting the customer at the center of their business strategy. There’s a Lean Production revolution starting in the industry and it’s having a profound impact for early proponents.

First let’s level the playing field about Lean Production. According to the Lean Enterprise Institute, there are five principles of lean: 1. Specify value from the standpoint of the end customer by product family.

2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.

3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.

4. As flow is introduced, let customers pull value from the next upstream activity.

5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

Lean is becoming attractive to auto body shops for a few reasons: Industry consolidation resulting in increased competition. We’re talking about a $30B/year industry that saw revenue increase 10% from 20062009 at the same time the number of shops declined about 12%. (See this profile by searching ‘Romans Group LLC,’ at autobodynews.com) Car owners rarely pay directly for these services. Insurers specify a few shops in small geographic areas where they’ll send their policy holders. If a shop isn’t on one or more of those short lists, they’re in trouble. Auto insurance is pretty much a commodity so drivers are shopping price. Insurers need to work with service providers who can help hold the line on costs.

As a result of items 1 and 2, repair shops are in land grab mode.

They’ve got to find ways to differentiate and that requires innovation.

They need a new operating model that will be friendlier toward insurers, auto dealers and drivers; hold Harry Klein the line or reduce expenses, both capital and staff; increase productivity; increase quality of work; and, understand how adding value at every customer interaction is the only way to drive trust and social capital.

Here’s a brief case study showing the value customers receive from lean techniques in the auto collision repair industry.

A former colleague of mine—a finance guy—is one of the most customer focused people I’ve ever met.

(Yes, you read that right, he’s a finance guy.)

He became a CFO of a small chain of auto body repair shops. Once he better understood the industry and its not so best practices he realized that there was much to be done to improve his customers’ experience with his brand. Over time he was able to make some changes but before long the entrepreneurial bug bit. He and a partner opened a new body shop called Total Care Accident Repair using Lean Production principles at the core of their business strategy.

Their shop is at 81 Brookside Circle, Raynham, MA 02767, 508.824.4091 Decrease the amount of time between receiving car keys from a customer and returning them Don’t have drivable cars sit on their lot waiting for parts Schedule repair work in the shortest window possible for the customer Provide owners with insight into repair progress online and also send status updates via text, email or phone Give the customer a delivery date and then further refine that the day before or morning of with a specific pick-up time Deliver a repaired and CLEAN car. Vacuum and wash each car as a final step for prior to delivery Deliver the highest quality work.

Engage the work force by giving the responsibility for excellent and effi-

52 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

cient work and make them beholden to each other.

Ensure each car is inspected one last time prior to delivery Create a customer-friendly environment, one that is clean, sunny, in a nice area with plenty of parking and a warm, friendly, professional staff to greet customers and set expectations

Jack and Brian, principals at Total Care Accident Repair

The value to the customer here is obvious. There are multiple engaged professionals committed to delivering great work for the customer (and each other) and doing so as efficiently as possible. Is it working? Absolutely.

Bottom line is that from the cus-

tomer perspective Lean Production is working for Total Care Accident Repair: 99.1% rate of customers that would use the shop again or refer it to a friend.

Courteousness of Staff ... 4.98 out of 5 (excellent) Explanation of Repair by Staff ... 4.89 out of 5 Quality of Repair ... 4.95 out of 5 Cleanliness of Car After Repair ...

4.92 out of 5 This approach to auto body repair is a triple win: The shop is financially on very solid ground. They are more efficient, have reduced capital costs, increased employee retention and engagement and a very satisfied customer base.

The customers have a highly valued experience, one that makes the best out of a bad situation. They get their car back ASAP, with the work done properly and don’t get grease on their clothes.

Insurers and car dealerships add value to their customers by partnering with a repair shop that delivers a great

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customer experience on their behalf.

In addition to customer feedback, like many shops, there are two other KPIs that Total Care Accident Repair uses: Cycle Time—the amount of time between taking a set of car keys and returning them, and Touch Time—the number of hours in a day that a car is actually being worked on. Industry average is about 2.2 hours/day.

Total Care Accident Repair is on their way to doubling the Touch Time national average. That means Cycle Time shrinks, enabling more flow through production resulting in higher revenue. It also results in happy customers because their car was repaired more quickly. Cycle Time is reduced, especially for cars that are still drivable, because customers keep their cars until the shop knows precisely when they can provide an estimate and the owner brings the car in. Based on that estimate the shop can tell the owner when the work will begin AND end.

Another factor in Cycle Time reduction is that work doesn’t begin on a car until all parts needed are on premises. A car sitting in a park-

ing lot not being worked on or driven is not adding value to the customer or the shop so that must be eliminated.

When repair work is scheduled, Total Care Accident Repair customers are told what day they can expect to pick up their car. They are also told that the day prior to pick-up, they’ll get notified as to the precise time they can pick it up.

Car owners can see photos of their car’s progress through the repair process online. They can also receive status updates via social tools and email.

When a car is hours from completion, the customer is alerted as to the specific time the car will be ready for pick-up. As an added value the cars are vacuumed and washed as a final step for prior to delivery.

The quality of work is phenomenal because lean production puts the responsibility for excellence and efficiency on the team doing the work.

Each team member can send a car back to the previous station for work not done properly.

At the final work station where the car is prepared for delivery there

is also another quality inspection. If a car is not ready to be delivered to the customer (which seldom if ever happens), the car gets the attention it needs immediately. The value to the customer here is obvious. Multiple sets of eyes ensuring quality work.

Lean techniques also result in lower capital and staff costs, making profitability easier to attain and maintain. Here’s a brief comparison:

Size: Revenue: Staff: Spray Booth: Frame Machine:

your person. No post-apocalyptic movie images anywhere.

Customer Engagement Strategies helps businesses grow through marketing and customer engagement programs that attract new clients retain existing ones and launch new offerings into new and existing markets.

This is achieved by listening to the stories both the business and their clients/market are telling, identifying

Typical Shop 20K square feet $2–4 million 17–18, up to 30 2 @ $50K each 2 @ $50K each

All of this is great, but you know what really sold me on Lean Production and how it truly places the customer at the center of auto body repair industry?

Total Care Accident Repair’s facility features a spacious, window-filled store front with comfortable seating, coffee and tea, WiFi and absolutely zero risk of getting a grease stain on

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and analyzing the differences and developing offerings, messages and processes that more closely align the value proposition with the target audience.

Copyright 2011 Harry Klein, Customer Engagement Strategies www.customerengagement.com

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Call your local Subaru collision parts specialist today! www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 53

Educational Schedule, Structure Released for New MSO Symposium At NACE 2011 Details surrounding the Multiple Shop Operator (MSO) Symposium—the newest event at Automotive Service & Repair Week (ASRW)—were released, including educational content, speakers and the full schedule.

The MSO Symposium will take place Thursday, Oct. 6, featuring an all-day program consisting of education and networking specific to MSOs. Sponsors of this highly anticipated event include CCC Information Services, Toyota Wholesale Parts, DuPont Performance Coatings, The Romans Group LLC, Enterprise RentA-Car and UniCure Spray booths.

The MSO Symposium is hosted by Matthew Ohrnstein, managing director of Symphony Advisors.

The MSO Symposium will start with a networking breakfast, followed by a full day of panelists, keynote speakers, facilitated discussions, a CEO roundtable, Q&A sessions, and a concluding networking reception.

Schedule of Events: 7:30 am - 8:30 am: Networking Breakfast.

8:30 am - 10:00 am: General Session with Chris Brogan (social media guru) 10:20 am - 10:30 am: Welcome and Opening Comments.

10:30 am - 12:00 pm: Lessons Learned From The “Big 4”.

Facilitated by: Matthew Ohrnstein, Symphony Advisors.

Guest Panelists: Rollie Benjamin, ABRA Auto Body & Paint, CEO Cathy Bonner, Service King Collision Centers, President; Brock Bulbuck, The Boyd Group, CEO; Steve Grimshaw, Caliber Collision Centers, CEO. 12:00 pm - 1:30 pm: Networking Luncheon. Topic: “Money Talks: The Investor’s View of the State of the Financial Markets and What Does The Next Five Years Look Like For Owners of and Investors in Multiple Collision Repair Shop Operators”.

Keynote Speaker: Rex Green, BB&T Capital Markets, Managing Director.

1:30 pm - 3:00 pm: Scale Matters: The Evolving Relationship Among Insurers, MSOs, Suppliers and Information Service Providers.

Facilitated by: Vincent Romans, The Romans Group.

Guest Panelists: Bill Brower, Liberty

Mutual Insurance, AVP & Manager, Auto Physical Damage; Jim Dickens, CCC Information Services, Senior Vice President; Terry Fortner, LKQ Keystone, Vice President; Jim Gadberry, Nationwide Insurance, Associate Vice President; Shawn Hezar, Apex Auto Body, CEO; David Smith, Enterprise Rent-a-Car, Vice President 3:00 pm - 3:30 pm: Networking Break 3:30 pm - 5:00 pm: The Art of the Deal - Acquiring and Developing New Locations.

Facilitated by: Matthew Ohrnstein, Symphony Advisors Guest Speaker: John Walcher, Veritas Advisors.

Guest Panelists: John Gagliano, Collex Collision Experts, CEO; Harry Hall, Dupont Performance Coatings, North America Sales Manager; Pat James, Auto Body America, CEO; Brandon Thomas, Collision Revision, President.

5:15 pm - 7:30 pm: Closing Networking Reception.

“Attendees are going to get some unique content directed at multiple shop operators who are intending to continue their growth,” said Ron Pyle, ASA president. “There will be some financial perspective, acquisition perspectives, operational- and insurance relationship-specific content, and content on how to acquire and develop additional locations if you’re an expanding MSO. It won’t be just one static format, but a variety of dynamic presentations facilitated by some of the leaders who are well-known within the industry.”

The MSO Symposium is produced by the Automotive Service Association (ASA), NACE and Symphony Advisors.

“We had quite a bit of input from MSOs in the development of the content. Our current NACE chairman, Ron Nagy, is a multiple-shop operator in Ohio and this is a passion of his to get this information in the symposium,” continued Pyle.

Registration to the all-day event is complimentary to qualified MSOs, but is limited to the first 100 registrants (limit of three people per company). Qualified MSOs who wish to register may call (972) 536-6318 or email shausler@hanleywood.com. Attendees are encouraged to register quickly as availability is limited.

54 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

More Than 800,000 Vehicles Recalled in U.S. Sept. 12-18

Automakers, including Hyundai Motor Co. and Subaru recalled more than 800,000 cars and trucks last week for defects including faulty airbags, according to federal regulators and Insurance Journal.

Separately, the National Highway Traffic Safety Administration opened a preliminary defect investigation into 205,661 Ford Motor Co. minivans for the model years 2004 to 2005 following complaints that the service jack provided by Ford could collapse when in use and cause the vehicle to drop.

One of those reports said a person died after the Ford jack collapsed while he was working beneath the vehicle, according to a notice posted on NHTSA’s website.

The agency said it is investigating the issue to determine if a safety defect exists. NHTSA also upgraded two other probes into 431,000 Honda Motor Co. CR-V crossovers and 200,000 Jeep Liberty sport-utility vehicles built by Chrysler Group LLC. Mid-September, Hyundai recalled more than 205,000 Veracruz and Sante Fe crossovers for model years 2007 and 2008 due to a defect in a part of the driver’s side airbag called the clock spring. The spring de-

velops a high resistance over time and may not deploy in a crash, increasing the risk of injuries.

Subaru issued three separate recalls last week, including more than 295,000 vehicles for the model years 2002 to 2007 because a component in the front control arms can break if exposed to salty or humid environments.

The Japanese automaker also recalled more than 195,000 Outback and Legacy vehicles for model year 2010-2011 because components in the wiper motor could overheat and catch fire.

Subaru also recalled nearly 70,000 Outback and Legacy cars for the model year 2011 because the moonroof glass could come loose and detach.

Other automakers who issued large recalls last week were Hyundai affiliate Kia and Volkswagen AG .

Kia recalled more than 10,000 2007-2008 Sorento passenger cars because of a computer glitch that could turn off the front passenger airbag when an adult is in the passenger seat.

VW recalled more than 30,000 Jetta sedans for the model year 20112012 because some vehicles had a too-long stainless steel exhaust tip that could burn a person’s leg.

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Insurer Plans to Improve NonDRP Services with Uploads

Ameriprise, which sells policies in 44 states (including through Costco) and is the 35th-largest personal auto insurer in the U.S., has launched a new "Shop of Choice" program to allow shops outside its direct repair program to upload estimates and photos to the insurer. "The supplement process is the most broken and we feel this will eliminate that," Kim Flisakowski, director of claim operations for Ameriprise, said. The company says customers filing a claim will still be encouraged to use a shop in Ameriprise's "Values in Partnership" DRP. But if they don't, they will be given a control number and told about the Shop of Choice claims processing website, which is built around a NuGen IT system. A shop that is registered on that system (a process that takes 10-15 minutes) can then upload estimates, photos and supplements to Ameriprise, and check online for status updates. Registering does not require any parts discounts or other concessions, but does require the use of one of the Big Three estimating systems. While payment will still go through the customer, Ameriprise says it may add direct-to-shop payment to the system.

Hughes Telematics Partners with AAA Club to Offer In-Drive Connected Services to Members

Hughes Telematics is partnering with AAA Club to offer In-Driveconnected services to the automobile club’s 12 million drivers in 20 states.

As previously announced with State Farm Insurance, the In-Drive system operates similarly to GM's aftermarket OnStar system. In-Drive connects the vehicle and its driver to Hughes operators in the event of an emergency or accident. Devices plugged into the vehicle’s On-Board Diagnostics port and mounted on the visor connect the driver and the vehicle to Hughes’ team of operators, who are available to help drivers coordinate emergency response and detect when a vehicle has been in a crash.

AAA hasn’t finalized its offerings or come up with pricing, but indicated it would like to offer members roadside assistance, auto crash notification, emergency calling, diagnostics, and stolen vehicle location, said Kevin Link, senior vice president of marketing for Hughes Telematics. The automobile club may also use different In-Drive device models. ACP will release more information when its In-Drive program launches in the first half of 2012.

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August Sales: Chrysler Up 31%, GM up 18%, Nissan up 19.2%

Chrysler Group LLC’s U.S. sales were up 31 percent last month, the company’s best August since 2007, the Detroit News has reported.

Chrysler’s retail sales surged up 42 percent as the automaker continued to wean itself off the less profitable daily rental fleet business.

“In spite of a volatile market, Chrysler managed to significantly outperform the industry again in August with retail sales up 42 percent,” said Reid Bigland, head of U.S. sales for Chrysler Group. “Last month also represented our 17th consecutive month of year-over-year sales growth, and on the back of our 16 all-new or significantly-refreshed products I see that trend easily continuing into the fall.”

All of Chrysler’s brands posted impressive gains during the month, which was Fiat’s best yet. The 2011 Jeep Compass was a particularly strong performer, with sales up 130 percent year-over-year.

Altogether, Chrysler sold 130,119 vehicles last month, compared to 99,611 in August of 2010.

GM saw an 18 percent increase in U.S. auto sales in August, despite a month rocked by a hurricane and turmoil on Wall Street. GM sold 218,479 vehicles last month and consumers

bought vehicles of all types with car sales up 18 percent, crossover sales increased 17 percent and truck sales grew by 18 percent over the same period last year.

“Our balanced portfolio of trucks and fuel-efficient vehicles like the Chevrolet Cruze, Chevrolet Equinox and GMC Terrain are helping GM continue to gain market share, which has now increased in seven of the past eight months,” said Don Johnson, vice president, U.S. Sales Operations.

“We’re carrying good momentum and we’re cautiously optimistic that we’ll see U.S. economic growth improve in the months ahead.”

The Chevrolet Cruze continues its strong streak with sales exceeding 20,000 for the fifth consecutive month.

“The ‘new GM’ is making the strides it promised. About the only negative signs on GM’s spreadsheet of August sales were for models being discontinued or soon to be replaced,” commented Edmunds.com Senior Analyst Michelle Krebs.

Nissan Motor Co. reported a 19.2 percent rise in sales of Nissan and Infiniti vehicles in August, to 91,541.

Compared with most of its Japanese rivals, Nissan has recovered faster from disruptions caused by the March quake.

WIN to Continue to Expand NACE Presence With Booth, Education Sessions

The Women's Industry Network (WIN) continue to act on their mission to engage women in the collision repair industry by expanding their presence at the International Autobody Congress and Exposition (NACE) in Orlando, Oct. 5-8.

WIN will have a booth on the trade show floor, number #N2161, where attendees can discover more about the WIN organization, meet current members and board members, and learn how to become an active member of WIN. In addition, the annual WIN reception, being held on Wednesday, Oct. 5 at the Peabody Hotel, will honor WIN sponsors and offer members and guests an opportunity to connect with the group.

For more information about the reception, contact Vice Chair Jennifer Justice-Haley at jennifer@valleypaint.com.

WIN says its commitment to learning and development is once again evident in the sponsorship and member contributions to the Women’s Professional Development Track of classes offered at NACE. These offerings are open to all attendees (women and men) and cover topics including leadership, professional development, marketing and personnel management within the col-

lision repair industry.

On Oct. 8, over 100 Girls Scouts will gather at the Orange County Convention Center to learn about the collision repair industry, meet role models and enjoy a unique experience at NACE. WIN says it's an honor to be affiliated with this event and to sponsor a large effort to make youth aware of career opportunities within and gain some general knowledge about the industry. (For coverage of WIN’s activities at NACE in 2010, please visit www.autobodynews.com) WIN will also hold its regularly scheduled board meeting on Wednesday, Oct. 5 at NACE to discuss upcoming WIN items including details onwww.autobodynews.com the 2012 WIN Conference set for May 6-8, 2012 in Atlanta, Ga. CHECK IT OUT! For more information please visit www.womensindustrynetwork.com.

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 55

Company Connections

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans.

She can be contacted at crsisk@chasidyraesisk.com.

Philly’s Nigro’s Auto Body Reaches Out with Own Smart Phone Apps with Chasidy Rae Sisk

Back in July’s Autobody News I wrote not force them to do so, providing the option of a shop showcase article about Nigro’s changing that Auto Body in Philadelphia. (Go to with Walter Danalevich information to www.autobodynews.com, and search “Nigro’s”) another auto A focus of my article was how body shop. An the shop exemplifies the “city of additional feabrotherly love” motto by its exemture provides plary contributions to charities and users with ingood causes in the region. formation with Insider Now Nigros’ has The gone Insurance beyond about what to and has reached out to the online conlook for in a sumer in an unexpected yet useful quality auto way. With regard to society’s affinity body shop as well as information toward technology, they have devel- about consumers rights after being in oped several smart phone applications an accident. to assist in accidents and promote safe This easy-to-use application also with Chasidy Rae provides Sisk an accident report form and driving. The flagship app, Nigro’s the ability to save photos of the acciAuto Body Assistance™ App, is a patent-pending car accident and emerdent which can be sent to the insurgency assistant smart phone app that ance company with an easy click. provides consumers with instant ac- After entering all of their data, users cess to everything they need if they are able to click on one button in order with Rae toSisk are ever involved a carChasidy accident or simultaneously contact their three driving emergency. emergency contacts, their insurance When I visited the shop in June agent/company and their preferred 2011, co-owner Domenico Nigro ex- body shop. The application also plained that his goal is to improve the makes it easy to locate and contact the industry by helping people and dis- nearest police department, ambulance seminating information, and the re- service, hospital, towing company and lease of Nigro’s Accident Assistance rental car company.

Application shows his dedication to According to Domenico Nigro, this goal. “we’re all about the customer at Several years ago, Domenico Nigro’s. Having this app makes dealthought it would be a good idea to ing with an accident a lot easier, which create an application to assist driv- in turn makes a happier customer. ers in the instance of an accident. When our customers are happy, it “At Nigro’s, our customers are our helps us build strong bonds and great main concern, and I felt as though rapport with them. In turn, they hopean app such as this could take a fully will think of us when they need great deal of weigh off of the shoul- any other work done on their cars or ders of drivers.” While researching if they know someone in need of auto the possibility of turning his dream body repair”. into reality, Domenico came upon a Nigro’s Accident Assistance Apcompany, Summit Software Solu- plication was released in August 2011 tions, that specializes in building for the Droid, and by now Apple and smart phone applications, and with Blackberry should have the applicathe help of this company, Nigro’s tion available on their phones. CurAccident Assistance App came into rently Nigro’s is waiting to release existence. two more applications, the Mobile The phone application takes cus- Tattle Tale app and the Teenage tomers through the process of what to Speedster app, both of which are comdo in the event of a car accident. It alplete and planned for release within lows users to program their vehicle inthe next couple months. formation, insurance company, three With the assistance of Mobile emergency contacts, and a preferred Tattletale Applications, LLC, body shop. Though Nigro’s hopes cusDomenico has helped develop the tomers will choose their shop, they do Mobile Tattle Tale application which

is designed to prevent teenagers from texting while driving. Upon reaching a certain speed, texting functions will be disabled until the speed is reduced below that limit. Additionally, the application will send an automatic response to incoming texts informing the party that the recipient is unable to text at the time, and it offers the benefit of sending the parent a notification if the teenager tries to disable or remove the application. The Teenage Speedster application will serve to monitor speed and will email parents the speed and location information when their teenager exceeds a speci-

Shop Strategies for Savings Inside Insurance Northeast News Shop Showcase

56 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

fied speed limit. Mobile texters beware!

“We love our community and the people in it. We want to do everything we can to keep everyone safe”, says Domenico Nigro.

These three applications definitely serve to increase safety in teenager driving and to make the stress of an automobile accident less dire.

Summit Software Solutions www.summitsoftwaresolutions.com Office: 858-547-8697 Fax: 858-547-8698 or email Frank Terlep: fterlep@summitsofwaresolutions.com To reach Nigro’s Auto Body: 939 Washington Avenue Philadelphia, PA 19147-3824 (215) 925-4520 nigroautobody@comcast.net

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Audi A6 and VW Passat Earn IIHS Top Safety Picks

The Audi A6, a large luxury car, and Volkswagen Passat, a midsize moderately priced car, earn the Institute’s top safety accolade following good performance for roof strength in rollover crashes. The award recognizes vehicles that earn the top rating of good for front, side, rollover, and rear crash protection, and that have electronic stability control (ESC).

Both of these cars are redesigned for the 2012 model year.

In the Institute’s roof strength evaluation, the roof of the A6 withstood a force equal to 4.9 times the car’s weight. The roof of the Passat withstood a force equal to 6.3 times the car’s weight. The test assesses how well the occupant compartment would hold up in a rollover crash. Vehicles with a strength-to-weight ratio of 4 or higher earn a good rating. By comparison, the current federal standard is 1.5 times weight. Institute research demonstrates that occupants of vehicles with strong roofs are much less likely to sustain serious injuries in rollover crashes.

Both of these cars have ESC as standard equipment. ESC is required by federal regulation as of September 1, 2011.

Chevy Sonic Earns Top Safety Pick

The new for 2012 Chevrolet Sonic, a small 4-door car that replaces the Aveo, earns top ratings across the board in the Institute’s safety evaluations, qualifying as a Top Safety Pick.

Vehicles qualify if they earn good ratings for front, side, rollover, and rear crash protection, and have electronic stability control (ESC). A federal regulation requires ESC for all cars built after September 1, 2011.

The Sonic’s performance is an improvement over the Aveo, which earned an acceptable rating in the Institute’s frontal test, and only marginal ratings in the other 3 evaluations.

In the Institute’s roof strength test for rollover protection, the roof of the Sonic withstood a force equal to 5.37 times the car’s weight. Vehicles with a strength-to-weight ratio of 4 or higher earn a good rating in the test. In contrast, the Aveo’s roof withstood a force equal to 3.09 times the car’s weight.

The Top Safety Pick designation also applies to the structurally similar hatchback version of the Sonic.

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Cadillac Escalade and Large Pickup Trucks Top List of Thieves’ Favorite Vehicles, Claims Data Show

The Cadillac Escalade is more than 6 times as likely as the average vehicle to be targeted by thieves and has overall theft losses more than 10 times as big, an analysis of insurance claims for 2008–10 vehicles by the Highway Loss Data Institute (HLDI) shows.

The Escalade for years has dominated HLDI’s list of vehicles with the most theft claims, and 4 versions of the luxury SUV appear at the top this time.

The Escalade EXT, which has a pickup bed, is ranked worst, with more than 14 claims per 1,000 insured vehicle years, or more than 8 times the average. An insured vehicle year is 1 vehicle insured for 1 year, 2 for 6 months, etc.

Pickups are another favorite of thieves, and the Ford F-250 crew cab 4-wheel-drive comes in second to the Escalade for the most theft claims, with other models ranking high on the list. Overall, pickups have much higher theft losses than passenger cars and SUVs ($24 per insured vehicle year versus $9 and $12, respectively), though from 2007 to 2009 pickup losses fell substantially. The decrease may be because of the fact that ignition immobilizers, which prevent vehicles from being hot-wired, recently have become more common in pickups. The technology became widespread in cars and SUVs earlier.

Still, immobilizers can’t prevent all types of theft, and even Escalades have them as standard equipment.

Moreover, the devices don’t affect theft of property from a vehicle, which also is reflected in the rankings.

‘Immobilizers are a good deterrent against joy-riding teenagers, but professional thieves can easily haul away an SUV on a flatbed truck,’ says HLDI senior vice president Kim Hazelbaker. ‘A pickup that can’t be

driven away is still vulnerable to having tools and cargo snatched from its bed.’

The most targeted car, excluding luxury and sports cars, is the Chrysler 300. That’s followed by models known for their powerful engines, including the Chrysler 300 HEMI, the Dodge Charger HEMI, and the Nissan Maxima.

The list of vehicles with the lowest claim frequencies is topped by the Audi A6 4-wheel-drive sedan and the Mercury Mariner, a small SUV. Each has a claim frequency of 0.5 per 1,000 insured vehicle years. The Audi has a much higher average loss per claim, so its overall average theft loss ($8) is much higher than that of the Mariner ($1).

HLDI’s theft numbers differ from reports by other organizations because they are based on the number of insured vehicles on the road. In contrast, information published by the National Insurance Crime Bureau simply lists the most frequently stolen vehicles. As a result, the list usually reflects the most commonly driven vehicles, not how likely a vehicle is to be targeted.

The National Highway Traffic Safety Administration is required by law to report theft data, but light-duty trucks with gross weight ratings of more than 6,000 pounds—a category that includes the Escalade—are excluded. The agency looks at thefts in a single calendar year of vehicles from that model year. It measures exposure by the number of vehicles produced.

HLDI’s data come from insurers representing about 80 percent of the market for privately insured vehicles.

The data don’t include information on thefts of vehicles that aren’t insured or are insured by nonreporting companies.

Students are getting a “crash course” in the science of physics, with controlled car collisions a dramatic and inescapably instructional part of the new curriculum. It was developed by The JASON Project in partnership with the Insurance Institute for Highway Safety (IIHS). IIHS crash tests are the jumping-off point for 4th-10th grade students to learn concepts such as velocity, acceleration, and momentum. To help create the curriculum, a team of internationally selected students and teachers from The JASON Project traveled to the IIHS test facility in Ruckersville, Va. to witness crash tests and work with research engineers to understand, and mitigate, what happens in collisions.

The midsize Dodge Durango gets the Institute’s top accolade for good performance in all 4 safety evaluations, and for having standard electronic stability control. The Durango is rated good for frontal crash protection based on the performance of its structural twin, the Jeep Grand Cherokee, which is also a Top Safety Pick. A good rating for rear crash protection also carries over from the Grand Cherokee because these two models have the same front seats. In separate side and roof strength tests, the Durango earns good ratings. Top Safety Pick applies to Durangos built after May 2011 because Chrysler modified the vehicle’s side airbags to improve protection in side impact crashes.

National Geographic and IIHS Team Up on Physics Curriculum

2011 Dodge Durango Also Gets Top Safety Pick

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 57

American Automakers Using More Aluminum in Vehicles A survey conducted by Ducker Worldwide has found North American automakers are using more aluminum in their automobiles. Vehicles made with more aluminum should the weight of vehicles and increase fuel economy.

Aluminum in 2012 North American Light Vehicles, conducted for The Aluminum Association, estimates North American automakers will increase their use of aluminum from 327 pounds per vehicle in 2009 to 550 pounds per vehicle in 2025.

The survey shows continued growth in overall use of aluminum reaching an all-time high of 343 pounds per vehicle in 2012—up five percent from 327 pounds per vehicle in 2009.

The report predicts aluminum is expected to double its share of the average automotive materials mix to 16 percent by 2025, with future cars and light trucks reaching an expected average of 550 pounds per vehicle of automotive aluminum.

Randall Scheps, chairman of the

Aluminum Association’s Aluminum Transportation Group and marketing director at Alcoa Inc., says, “We are fast-entering a transition stage to more holistic vehicle design approaches premised on greater use of lighter, stronger and more crash-absorbent aluminum alloys replacing less efficient iron and steel. Vehicles with their

size maintained but down weighted with aluminum are inherently more efficient than heavier ones.”

According to survey findings, body, bumper and closure content grew by 58 percent between 2009 and 2012, with 30 percent of all hoods on 2012 vehicles being aluminum. By

Live Operator Assistance Now Standard Feature of Ford SYNC Services After Trial In a step to further enhance the SYNC® experience, Ford is adding Operator Assist, a new free service that allows users to connect with a live person, as a standard feature of SYNC Services.

Previously in beta test trial phase, the service is now available as part of SYNC Services and joins the growing list of cloud-based driver assistance features offered by Ford Motor Company.

“This isn’t just about offering customers a back-up option to the services we have already. This is about giving customers a variety of choices when it comes to how they would like to receive information,” said Doug VanDagens, director, Ford Connected Services Solutions Organization.

SYNC Services provides access to information about traffic, news, sports, weather, horoscopes, stock quotes and movie listings along with business searches and turn-by-turn directions. Seventy percent of all SYNC Services calls are for business searches and from those seeking turn-by-turn directions, said David Gersabeck, product manager, SYNC Services.

Using advanced vehicle sensors, integrated GPS technology and comprehensive map and traffic data, the SYNC Services automated voice recognition system delivers turn-by-

turn directions to the user. Further, with access to more than 14 million business listings, SYNC Services directs users to the businesses they seek.

Operator Assist works with both the business search and directions options.

At any time during a business search or directions interaction between the user and the SYNC Services automated system, the user can say, “Operator,” confirm his or her request to speak with an operator, and connect to a live operator.

In the event a user says an address or business that the voice recognition system can’t identify, the user will be prompted with the option to connect to a live operator. If the user confirms he or she would like to speak with an operator for further assistance, the system automatically connects the user to the live operator.

“This is more than getting from point A to point B,” said Gersabeck.

“It’s about delivering a level of connectivity that provides fast, hands-free connections to businesses or residences without the need for drivers to take their eyes off the road.”

A beta test trial phase—started in spring and ended with the official launch of Operator Assist—found that drivers really like having the option of See Ford SYNC, Page 62

58 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

2012, the survey expects 20 percent of all bumpers will be aluminum.

“New, stringent federal fuel economy regulations, coupled with consumer angst about high and unstable gas prices, is leading automakers to move quickly with a total rethinking of vehicle design as they also push ahead with alternate power trains, new technologies and advanced materials.

In terms of boosting fuel economy and cutting tailpipe emissions, aluminum offers automakers the fastest, safest, most environmentally-friendly and cost-effective way to get the job done. Low-density aluminum is a game-changer and automakers are moving quickly to take full advantage of all the consumer benefits it provides,” Scheps says. Other Highlights from the Report include: The average increase in aluminum content since 1975 has been seven pounds per year per light vehicle.

Automakers will, on average, seek to lower the weight of cars and light

trucks by at least 10 percent by 2025.

Market factors already in place are projected to push aluminum content to 400 pounds per vehicle in 2015/2016.

Aluminum is gaining market share at the expense of both traditional and high strength steels, which are declining as a percentage of vehicle makeup.

Advanced High Strength Steels (AHSS) also are growing at the expense of inferior steels, but gauge reduction with AHSS provides limited weight savings potential compared to using lower density aluminum. Pound for pound, aluminum replaces more than twice as much weight as AHSS.

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Washington, D.C. Has the Worst Drivers According to Allstate

A recent Allstate report says that Washington, D.C., has the most accidentprone drivers of the 200 largest U.S. cities. Washington, D.C. drivers have an average of one collision every 4.8 years, whereas the average U.S. driver has one collision every 10 years. Baltimore, Newark, Providence and Philadelphia also rank high on the list.

Los Angeles holds down the number 11 position, with the driving population crashing their vehicles once every 6.6 years. Surprisingly, New York City didn’t place among the top 10, being ranked at number 20 in the survey, with motorists getting into collisions on average once every 7.3 years (guess cab drivers weren’t counted as part of the study).

In neighboring Baltimore, Md., Allstate found drivers typically crash once every 5.3 years, putting them into second spot nationwide. Glendale, Calif., came third, while Newark, N.J., and Providence, R.I., make up the remaining top five spots.

At the other end of the scale, Fort Collins, Colo., was deemed the safest place to drive. Residents there are involved in a crash on average once every 14 years. The insurer found smaller cities with populations under 1 million people are the safest in the country.

CAFE Targets Touch Off Efforts to Cut Gross Vehicle Weight

The U.S. government's new corporate average fuel economy target has spurred automakers to launch a campaign to slash the weight of their vehicles.

There appears to be a growing consensus that vehicle weight must be reduced 10 to 15 percent to achieve the government's 54.5 mpg fuel economy standard, effective by the 2025 model year.

This month, research firm Ducker Worldwide of suburban Detroit issued a report that forecast vehicle weight reductions of 10 to 12 percent by 2025. Meanwhile, the Center for Automotive Research in Ann Arbor, Mich., predicted vehicles would be up to 15 percent lighter.

(See related story on Aluminum usage this issue.)

A typical vehicle weighs about 3,625 pounds, which means automakers will seek to eliminate 360 to 540 pounds, if industry estimates are correct.

At least one automaker, Ford Motor Co., has publicly vowed to reduce the weight of new models introduced through 2020 by 250 to 750 pounds per vehicle.

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AkzoNobel Hosts 18th Annual Acoat Selected® Summer Conference

August 17th through 20th, 2011 found members of the AkzoNobel Acoat selected National Performance Group gathering at the Marriott City Center in Minneapolis, Minnesota. The 2011 program drew approximately 200 attendees from collision repair centers throughout North America.

The AkzoNobel Acoat selected program is comprised of industry leaders representing some of the largest and most progressive collision repair centers in the North American market today.

Keynote speaker for the event was Michael Fagin, Secretary, Treasurer and Counsel for the Highway Loss Data Institute. His topic for the program was “How Advances in Technology, Safety and the Disposable Car Affect Vehicle Reparability.” Michael shared research and advancements in vehicle safety that impact the reparability of today’s automobiles.

Early Bird sessions prior to the program included: > Lead or Get Out of the Way – This program was led by G.B. Outlaw of G.B. Outlaw and Associates noted for enabling effectiveness in organizational change management. Outlaw’s dynamic personality and presentation style literally had his audience out of their seats! > So, You Have a Facebook Page…Now What? – Led by Helen Todd founder of Sociality Squared, a leading communication firm that specializes in social media, participants learned how to use and apply proven Facebook marketing strategies and techniques to grow a fan base and overall business with a meaningful Facebook presence. > 2011 Occupational Safety and Health Issues in the Collision Repair Industry – Led by Michael Rumley

Other AkzoNobel News AkzoNobel Automotive and Aerospace Coatings (A&AC) announced that it has been selected as a preferred supplier by Toyota Motor Europe.

A&AC will be providing more than just paint to Toyota. The relationship will include support, training, and value added activities to boost productivity and efficiency. The announcement, which follows a rigorous technical review, applies to A&AC’s vehicle refinishes brands Sikkens and Lesonal. Under the agreement, A&AC will offer the latest low VOC Sikkens and Lesonal automotive repair paint systems. A&AC’s Director Europe, Middle East and Africa, Simon Parker, noted that the process-centered environment philosophy which A&AC has developed should play an important role in delivering the improvements that Toyota is expecting from the partnership.

Federal prosecutors say Maxzone Vehicle Lighting Corp., a California distributor of non-OEM lighting products, has pled guilty and will pay a $4.3 million fine to settle criminal charges that it participated in a global price-fixing conspiracy (CRASH 9/5/11). Maxzone, a subsidiary of Taiwan-based Depo Auto Parts Industrial, is the second company (after Sabry Lee) to plead guilty in the Justice Department investigation, and has agreed to provide more information to the Department. Three executives, including one from Depo and another from Sabry Lee, have also been charged; two have pleaded guilty and a third is under indictment.

See Sabry Lee article, this issue.

Toyota aims to make hybrid drivetrain components in the United States and elsewhere overseas within four years, after years of reserving production of those high-tech parts for its Japanese plants, according to a report in Automotive News.

The decision aims to support higher hybrid-vehicle unit sales globally. Manufacturing hybrid batteries, electric motors and inverters outside Japan is seen as the next step in Toyota’s goal to fuel sales of the gasolineelectric cars through overseas assembly. “Right now, hybrid component production is too biased toward Japan,” said Shinichi Sasaki, Toyota’s executive vice president in charge of global purchasing.

Non-OEM Lighting Investigation Results in Second Guilty Plea

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with AkzoNobel’s Health Safety & Environmental organization. Participants were provided a clear direction about roles and responsibilities when it comes to occupational safety in the workplace.

A special group tour was conducted at the 3M Innovation Center and Lab. This location houses more than 6,500 scientists and engineers in the R&D community. The work that is done in the 3M Center spans from abrasives to optics, to nanotechnology and micro-replication.

Attendees were also engaged with “Walkabout Speakers” including Paul Chow and Paul Tseng with Leanstone Technology, Brad Desaulniers and Naveen Khan with Partscheck Live, Susanna Gotsch and John Buckner with CCC Information Services, and Ed Pietrzak with LKQ Corporation.

Toyota Says it Will Make Hybrid Parts in the U.S. within 4 years

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 59

SEMA Serves Up Expanded Repairer Driven Education Sessions and Celebrity Appearances for 2011 The Specialty Equipment Market Association (SEMA) Show will take place at the Las Vegas Convention Center from November 1 through 4.

In gearing up for the upcoming show, the group has made several announcements regarding celebrity appearances and their expanded Repairer Driven Education (RDE) sessions provided by the Society of Collision Repair Specialists (SCRS).

Charley Hutton, formerly body shop supervisor at Boyd Coddington’s La Habra shop and known for his appearances on the TV shows American Hot Rod, Rides, and Overhaulin’, is regarded as one of Charley Hutton the most popular painters in the custom car world. He will appear Wednesday, November 2, from 2:00–3:00 p.m. at the Collision Repair & Refinish Section Stage (North Hall #10873). Charley will do an onstage interview and a question and answer session.

Working out of his shop in Nampa, Idaho-Charley Hutton’s Color Studio-Hutton has produced an impressive number of automotive refinishing projects over his career, most recently through his work using PPG Automotive Refinish. He has garnered a number of prominent honors as a result.

The Society of Collision Repair

Specialists (SCRS) also added awardwinning painter, fabricator, television personality, and Autobody News Columnist Rich Evans to an already packed lineup of activities taking place this year in the north hall of the Show.

Evans, owner of Huntington Beach Bodyworks and chief architect of Rich Evans Designs, is known nationally for his work on television shows such as TLC’s Junkyard Wars, Chop Cut Rebuild, and Car Warriors on the SPEED Channel; and for his distinctive custom paintRich Evans ing techniques that allow him to create some of the most striking vehicle graphics in the world, including his much heralded “Tattoos for Cars” series.

While Evans has built his name on custom work and fabrication, he built his career on collision repair, and he will join SCRS at 10:00 a.m. on Wednesday, November 2, to speak about his career in the collision repair industry and the ever-changing landscape of the business and its technical side. SEMA attendees are invited to stop by the SCRS booth (North Hall # 10727) to take part in this live interview.

Automotive designer and fabricator Chip Foose will also be available for a meet and greet at the BASF

booth # 21458 on November 1 from 9 A.M. to 10:30 A.M. and November 2 from 3P.M. to 5P.M. at the MagnaFlow Exhaust products booth # 23543.

Foose is best known for his apChip Foose pearances on TLC’s Overhaulin’ and his unique car designs displayed at SEMA since 2005.

The Society of Collision Repair Specialists (SCRS) also announced that their Repairer Driven Education (RDE) series, which served as the foundation for SCRS’ involvement at the SEMA Show in 2010, will expand from two days of seminars in 2010 to all four days of the show in 2011.

SCRS said the current YTD education pre-registration numbers for 2011 have eclipsed total participants in 2010 by more than 59 percent.

“The increased participation in this section of the show and our RDE program is a huge indication of the industry’s excitement over being here in Las Vegas with us and the 120,000

Allstate Reports $500M in Losses from Hurricane Irene, July and August Losses Top $865M

Allstate Corp. lost $500 million on Hurricane Irene, the largest publicly traded home and auto insurer in the United States said September 15, www.autobodynews.com much less than it lost from tornadoes earlier this IT year.

CHECK OUT! In total, Allstate said its July and August disaster losses came to $865 million before tax. The company did not break out the source of the other losses besides Irene.

In April and May, Allstate lost $2 billion because of severe thunderstorms advertise andTo tornadoes.

That nearly equaled its call disaster Advertising Sales at: losses for all of 2010.

Industry estimates 800-699-8251 on the damage caused by Irene have varied e-mail: widely, in part because most of advertising@autobodynews.com Irene’s damage was from federally insured flooding and not privately inwww.autobodynews.com sured wind effects.

Some estimates suggest the total

privately loss from the Give us insured your opinion onstorm matters affecting the industry. was less than $2 billion.

Allstate began releasing select monthly disaster data earlier this year after pressure from analysts, who wanted more publisher@autobodynews.com clarity on the company’s catastrophe exposure.

SEMA to make this an attractive environment for both exhibitors and attendees in our industry, ensuring that both have successful and inspirational shows.”

Show attendees who identify Collision Repair and Refinish as their primary business interest has seen a 47 percent increase in show registration compared to the 2010 YTD figures.

For more information, complete with full expo and education session schedule, please visit www.semashow.com.

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other people who love the energy found only at the SEMA Show,” said SCRS Executive Director, Aaron Schulenburg. “A bigger, growing, thriving section, with a noticeable increase in the footprint of the collision industry in the Show means that we have done our part working with

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Erica Schroeder is assistant editor at Autobody News in Carlsbad, CA. She loves to talk with owners about their shops and goings on in their areas. Contact her at eschroeder@autobodynews.com, or 800-699-8251

Carrillo and Sons Collision Center—Family Buyout Continues Legacy with Erica Schroeder

Carrillo and Sons Collision Center, a the businesses now that they are 15,000 square-foot collision repair adults. shop in San Diego, CA, is all about Maria officially took over the customer satisfaction and family business in July of 2010 and her three with John Yoswick legacy. sons have been there every step of the way, ensuring that Carrillo and Sons continues to be a family-run business centered on quality and customer servwith Ed Attanasio ice.

“The first few months were very good,” said Maria, “Then I started noticOwner Maria Carrillo started ing a drop in sales.” Maria lost two the business in 1981 with her then- major DRPs in the business split and with Ed Attanasiowas left dealing with an unexpected husband Tony at a small location off Adams Avenue in San Diego. Maria 30–40 percent drop in incoming vehiworked mostly in the office part of the cles. business and the couple raised three Maria said since taking full ownsons in that shop; Tony Jr., David and ership of the business she has really Daniel, who quickly became intertried to get out and learn more about ested in the business. business in general and the collision “When I was working in the of- repair industry in particular. fice the kids were with me a lot of the Maria is a Women’s Industry time,” said Maria.

Network (WIN) member and also atIn 2000 the Carrillos opened a tends the California Autobody Assosecond, larger location on Old Cliffs ciation (CAA) meetings in San Diego.

Road in San Diego where Maria She also meets with a group of local started spending most of her time. business women in her area.

The Old Cliffs location is able to “I seek advice from other busisee about 115 to 150 cars per month ness women,” said Maria. with 13 employees.

Carrillo and Sons business is centered around customer satisfaction.

Maria says what sets them apart is their patience, willingness to go to all lengths to make their customers happy, and working on a job until it is right. They track CSI by surveying customers to ensure complete satisfaction with their work.

“Our customer service really sets us apart,” said Maria. Carrillo and Sons’s focus has always and will conCustomers that need a shuttle home or to work after dropping their car off at the shop tinue to be taking care of their cuscan choose to be driven in a ‘reliable’ Toyota tomers.

Camry or this vintage Lincoln Continental.

“We take care of our customers, Then, as Maria says, “Life hap- and it shows, referrals and repeat cuspened.” In 2008 Maria and Tony de- tomers are our biggest source of busicided to get a divorce. ness,” said Maria.

“I never wanted to divide the Carrillo and Sons uses Blowtherm business, but that was the only op- and Garmat spray booths as well as a tion,” said Maria. Maria decided to Chief E-Z Liner computerized frame buy her now ex-husband out for the measuring system and PPG paints.

Old Cliffs Rd location, chiefly due to They also offer a lifetime limited her children’s interest in continuing warranty on work done at their shop,

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The detailing area adjacent to the shop

including; a lifetime warranty on paint and metal work, a 6 month warranty on mechanical work, and they are also willing to help customers with any parts issues by contacting suppliers.

The shop floor reminds workers of the shop’s “Commitment to Excellence”

They also offer lifetime detailing four times per year for any customer who has more than $5,000 in repairs done on a standard passenger vehicle for as long as they own the vehicle.

“Our detailing services are definitely a good way of keeping cus-

Daniel, Tony Jr., Maria and David Carrillo

tomers coming back,” said Maria.

“My goal is to eventually have my boys running the shop,” said Maria. Her chief reason for buying her ex-husband out, for one of the locations, was so that her sons could continue to work in the shop and have the business as their own one day.

Sons Tony and Daniel are able to do most everything around the shop while David mainly specializes in estimating.

Maria has also found community involvement to be a big help in local marketing efforts. The business donates to the Children’s Miracle Network, the Boys and Girls’ Club of San Diego, the Salvation Army, and sponsors local little leagues.

They also have partnered with John’s Automotive Care, which is down the street from their location, to do body work for free for some of the local charitable car giveaways.

Most recently the business was able to raise over $1300 for the Rady Children’s Hospital in San Diego through Carrillo’s Facebook page.

All their hard work didn’t go unnoticed by Triple A, which is one of their DRPs; Triple A awarded Carrillo and Sons their Outstanding Performance for quality repairs, cycle time and customer service in 2010. Only 9 shops are honored with this award annually.

Customer satisfaction remains number one at Carrillo and Sons, evident from their work, to their dedication, right down to the homemade cookies in their waiting area.

True to the team spirit: “Everybody takes turns baking cookies for the reception area,” said Maria.

Carrillo and Sons Collision Center 4680 Old Cliffs Rd San Diego, CA 92120 (619) 287-7200 www.carrilloandsonsonline.com

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 61

Continued from Page 48

Knowledge is Power

take place), the Corolla is a good indicator of market forces.

What can we conclude from this data?

A few important facts come to mind: 1. Fuel efficient vehicles tend to rise more quickly and reliably in value during periods of high prices than gas guzzlers fall in value.

2. During fuel price volatility, the reaction time in total loss values is less than a month, which points to the importance of the accuracy of a true market survey method for evaluating a total loss. In the traditional book value approach, the lag time for gathering the data from the gathering sources, Continued from Page 50

Independent Contractors

multiplied by 30% less $2,000). The employee would receive the $1,000 bonus on top of the $2,000 owed to him or her in wages for that particular month. If the employee was less productive, and produced only $5,000 in income for the auto body shop, then they would only receive wages and no bonus would be due. Thus, the employee would be guaranteed a minimum amount of pay based on the hours worked but his or her actual production would be the principal factor in how much an employee earned.

This would cause the interests of the Continued from Page 51

calculating and then publishing the data can take longer than the short value lag time we see present in the charts shown above.

true market value of the vehicle?

3. How are you calculating the salvage return?

4. Are you using the “net value” of what you will receive? They will spend in the neighborhood of $175 to process the vehicle to sell at a salvage auction and may owe you for storage if the vehicle totals. These dollars add up and may tip the vehicle to the repair column.

Secondly, you may be dealing with personnel in the claims department that handle multiple states and may not know your state’s total loss regulations. I strongly encourage shop personnel to become experts on the total loss and titling regulations in your state. Once you read the regulations, you will find that our cars have become more complex but our total

loss regulations haven’t changed.

The folks at the Nevada Collision Industry Association realized this and successfully changed the total loss regulation to simply “back out” the cost of the electronic components when calculating the total loss equation. The revision aims to put more cars back in the owner’s garage. An interesting side benefit (and a major reason I believe the bill passed) is that repairing cars is good for a state’s economy. Early calculations indicate that the annual impact of sales taxes in Nevada paid on these higher dollar amount estimates that end up being repaired will be in excess of $800,000.

Not to mention, the workforce implication of selling more parts and repairing more cars is extremely positive.

employees and owners to be more closely aligned without the risks associated with classifying workers as independent contractors.

Consult an attorney to stay out of trouble: It is always a good idea to talk to an attorney to make sure that workers are not being misclassified as independent contractors and that those workers who are employees have a compensation structure and working conditions that comply with state and federal employment laws. It is always best to seek help in the planning stages or before a problem arises but it is never too late to try to address employment and independent contractor issues.

Martin Zurada regularly advises and litigates on behalf of California auto

body repair businesses, including independent contractor and employment issues. Contact him at: Zurada Law Group 785 Market Street, 16th Floor San Francisco, CA 94103 (415) 637-8483 www.SFLawyer360.com

m.zurada@sflawyer360.com

What does this mean for collision repairers?

While many shop owners and managers reading this article may think there is nothing they can do about the total loss decision process, there are two areas you can concentrate on.

First, in dealing with insurers, you know the damage to the vehicle better than they do and what it will take to properly fix the car.

A few questions you definitely want to start asking the insurance company are: 1. How are you basing your total loss decision?

2. Are you using the book value or

Ford Response to ABPA

Continued from Page 58

been tested and compared to the Genuine Ford polypropylene isolators.”

The statement refers to the relatively small difference between the single-and double-density polypropylene isolators tested by the ABPA as opposed to the more extreme difference between the OEM high density polypropylene isolators and the substitute aftermarket isolators made from polystyrene—the white “styrofoam” that coffee cups are made from.

talking to a live person, said Gersabeck.

“The feedback was very positive,” he said. “Our operators were told by customers that they were very happy and surprised to have an option for additional help, especially when they realized it was a free service. They expected Ford to charge for these services like our competitors do.”

When a live operator assists with a business search, the user can choose to receive turn-by-turn directions to the business, receive a text message with name, address and phone number information about the business, or be directly connected to the phone number of the Give us your opinion on business. When a live operator assists with address entry, the user can have the directions sent directly to the vehicle.

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This article only provides general legal information but not legal advice.

You should consult a lawyer who will provide you with legal advice by applying the specific laws in your state to your specific factual circumstances.

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I-CAR Tech

This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.

Three-Dimensional Measuring Equipment—Is it Really Necessary?

I-CAR has been emphasizing the importance of three-dimensional measuring since its founding in 1979, but is it really required to repair a vehicle?

After all, three-dimensional measuring systems are considerably more expensive compared to the much more affordable tape measure or tram gauge (see Figure 1).

A Real Life Experience Recently, our friend Sam (not his real name, but his story is), found himself having to get estimates for his collision damaged car. The first collision repair facility was chosen, and the vehicle was brought in for an estimate.

During the estimating process, Sam asked what type of three-dimensional measuring system the facility with Lee Amaradio Jr.The estimator promptly replied used. “none.” Interesting. The car didn’t look structurally damaged, I’m sure the estimator was wondering why Sam even cared.

So, it was on to the next repair facility. While talking to the estimator, Sam inquired again, “What type of threedimensional measuring do you use?”

In a too familiar response, the estiFigure 1 - Tape measures and tram gauges mator replied, “We don’t really have one.” (top) are used for point-to-point measuring The next stop was the last repair while computerized measuring systems (bottom) provide three-dimensional measurefacility scheduled to write an estimate. ments Sam watches the estimate being written and asks the question, but this time, the answer is different, “We have a AUTOBODY computerized measuring system.”

The quest was over. Sam knows MARKETPLACE who’s going to be repairing his vehicle.

The question is, why is it so important for Sam to have a shop that PAINTS PLUS BODY SHOP REFINISHING SUPPLIES can perform three-dimensional meas1-800-472-4551 urements? The answer is simple.

Three-dimensional measuring proWHOLESALE BODY SHOP vides an accurate assessment of damREFINISHING SUPPLIES: with Dan Espersen age. This allows collision repair Sherwin Williams, Sunfire, Spies, technicians to document vehicle House of Color, Dimension, 3M, Marson, Fiberglass-evercoat, USC, measurements before and after the SEM, Mequires, Pin Stripe, Binks, straightening process, ensuring Sam DeVilbiss, SATA, Tools & Equipment! that his vehicle was fixed properly.

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In Sam’s case, it turned out that Paints Plus, Stover, MO. paintsplus@windstream.net his vehicle’s front rails were up 20 mm from specification. This wasn’t found until the vehicle was placed on a threeSearch: dimensional measuring system for repair. If a repair facility was using a tram gauge or tape measure during the with Mike Causey repair, would this have been caught?

The vehicle looked within specification, and there were no obvious panel gap misalignments or other visual indicators that provided the estimator Call or e-mail now with clues to the structural damage.

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Making the Investment Even in the best economic times, a three-dimensional measuring system is a substantial investment for one

piece of equipment. Is it worth it? Joe Blanton from Car-O-Liner was essentially asked this question. Is cost an issue to shop owners when deciding to make a purchase? Joe states that the value of time savings and increased productivity eventually offset the initial investment.

Another reason to invest in a three-dimensional measuring system is the assurance that the vehicle has been restored to the proper specifications.

Then there’s keeping up with changing vehicle technology. With advancements in vehicle design and increased use of high-strength steel, collision energy is following a different load path. The load path is essentially the route collision energy travels through the vehicle. This new path means that collision energy is traveling into areas not commonly seen before, deeper into the vehicle.

Additionally, these vehicles often have a tighter tolerance, requiring greater emphasis on restoring the original vehicle specifications for proper vehicle performance. Therefore, threedimensional measuring can be a huge benefit in identifying any misalignment.

Some vehicle makers make specific recommendations regarding the use of three-dimensional measuring equipment for vehicle repairs.

Figure 2 - A fixture system, such as this Celette bench, is used to perform three-dimensional measuring

General Motors, for example, states in their part-specific collision repair procedures to “use three-dimensional measuring equipment.”

Chrysler states that when restoring a collision damaged vehicle, that “all structural distortion has been identified and corrected using appropriate structural straightening equipment (“frame rack”) and a three-dimensional measuring system.”

Automaker Actions and Announcements with Janet Chaney

Other advantages of three-dimensional measuring include accuracy, reduced time to make the measurements, and the ability to repeat and verify specific measurements so they can be documented both before and after repairs are complete.

Three-dimensional measuring is also ideal for damage analysis. Providing printed out measurements with the damage estimate to the technician helps with ordering parts and calculating repair times, reducing supplements.

Figure 3 - Point-to-point measurements are often used during damage analysis to identify potential structural damage

According to Richard Perry of Chief Automotive Technologies, when asked what message he would like to communicate to the collision repair industry about three-dimensional measuring, he stated, “Moving forward, measuring the vehicle with structural damage during the estimate should become as common as getting the VIN. This will reduce the need for supplements and reduce the cycle time for the vehicle’s repair.”

Making three-dimensional measurements requires understanding that all measuring points are based on length, width, and height. If using a computerized measuring system, these planes are electronically formulated using the measurements of the center section, and all the other measurements that are taken are relative to those planes.

Mechanical systems, or fixture systems, perform a similar function, but use the tip of the measuring pin and a vehicle reference hole to determine alignment (see Figure 2). Point-to-point measurements are very good during damage analysis to identify potential structural damage (see Figure 3).

For more information please visit www.i-car.com.

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