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Louisiana Flooding
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California Regulator’s Stand On ‘Alt-OE’ Parts May Lead to Pressure To Clarify The Terminology
Sub-water: Flooded Cars Overwhelming
Credit: Scott Clause/The Advertiser
ucts in their used car lots. That situation may affect auto dealers far beyond Louisiana, he said. “It’s tough to get pre-owned veSee Overwhelming Flood, Page 32
Honda ProFirst Certification Reaches 700 Shops by Ed Attanasio
Gary Ledoux is pleased to see that 700 body shops are now members of American Honda’s ProFirst certification program, but he also knows that there is still much work to do to reach the goal of 1,200 shops
we heard from roughly 100 shops right away, asking ‘How can we join, and what do we need to do?’ We got a lot of the top shops in the country onboard quickly because they were already doing all of the things required by the program.” A lot of collision repairers were skeptical about the value of OE certifications in general, but pretty soon they changed their minds, Ledoux said. “Initially, not everyone thought that certifications were going to be around very
See Honda Certifies 700 Shops, Page 33
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
When body shop number 700 recently became a member of American Honda’s ProFirst certification program, assistant national manager of Collision Parts and Service Marketing Gary Ledoux took a deep breath, knowing full well that there is still much work to do. To Ledoux, the ultimate goal of getting 1,200 shops in the program within the next 18 months seems very reachable. “When we first launched this program in April of 2015,
Some of those parts appear to be new, OEM parts but are being sold and delivered by non-OEM or salvage Discussion within the industry of “altparts suppliers, shops say. Others apOE” or “opt-OE” parts seemingly has pear to be slightly-damaged or blemraised more questions than answers this past year, but one state regulatory ished OEM parts that may or may not agency has a clear stand on arrive “repaired.” Given that shops don’t althe topic—one that may drive ways know what they will changes nationwide. receive when they order such “The term by itself, ‘alta part, the BAR said, conOE’ or ‘opt-OE,’ is not recogsumers certainly won’t know nized by the Bureau,” Jaime what those term mean on an Ramos of the California Burepair estimate or invoice. reau of Automotive Repair Jaime Ramos Shops in that state are free to (BAR) field operations and use such parts, Ramos said, but they enforcement division told attendees at NACE in Anaheim, CA, in August. can’t use those terms on the paperwork Ramos and other representatives without more adequately explaining what is being put on the vehicle. of the BAR said that it’s clear from dis“The BAR has no position on cussion with shops that a wide variety whether they are good or bad parts,” of types of parts are being lumped together under the “alt-OE” or “opt-OE” he said. “But the whole premise of See Alt-OE Parts, Page 26 category names in some markets. by John Yoswick
by Ken Stickney, The Daily Advertiser
The destruction of some 100,000 vehicles—maybe more—due to recent flooding may have left the southern Louisiana automobile market out of balance. Bob Giles, owner and operator of Giles Automotive in Lafayette, said on September 6 that area auto dealer business is brisk, but many customers who lost their vehicles to high water in the unnamed August 11–13 storm have no trade-in vehicles to offer when making their purchases, leaving some dealers short of available prod-
VOL. 7 ISSUE 7 OCTOBER 2016
MSO Symposium Looks at International Business Models, Slow-Down in Consolidation
pairer revenue (insurer- and customerpay combined) topping $34.1 billion. Consolidation of the industry by the so- That’s a nearly 5 percent jump over called “Big 4” multi-shop 2014, “and 2016 could also reoperators (MSOs) slowed main the same,” he said. significantly in the first To gauge the rate of MSO seven months of this year, growth, Romans looked at the but that isn’t a sign that total sales of the shops that the such consolidation is end“Big 4” MSOs – ABRA, Caliber, ing, a speaker at this year’s Service King and Boyd Group Vince Romans NACE predicted. /Gerber – acquired in each of the Industry consultant Vince Rolast four years. Those acquisitions mans of The Romans Group kicked off transferred $300 million in sales to the the half-day “MSO Symposium” durBig 4 in 2012, $265 million in 2013, ing NACE with a statistic-laden sumand a whopping $964 million in 2014. mary of the state of consolidation in the But that dropped to $535 million in collision repair industry. 2015, and totaled only $188 million in Romans said MSOs and the inthe first seven months of this year. dustry as a whole enjoyed a very good While the Big 4 combined added 178 2015 in terms of the growth of the overlocations last year, they added just 61 all market. He estimated 14.5 million this year (as of the end of July). ABRA accidents resulted in 11.3 million rein particular, he said, has “taken a breaSee MSO Symposium, Page 21 pairable vehicles in 2015, with total reby John Yoswick
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2 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
COLUMNISTS Antonelli - 95-Year-Old Veteran Keeps Busy at TX Body Shop, Shares Keys to a Long Life. . 44 Antonelli - Educational Seminars Institute Helps NACE Attendees Prepare for the Unthinkable . . . . . . . . . . . . . . . . . . . . . . . 58 Attanasio - KY Shop Pulls Its Weight for Local Special Olympics . . . . . . . . . . . . . . 38 Attanasio - Professional-Looking Uniforms Are No Longer Just Optional . . . . . . . . . . . 72 Attanasio - WyoTech is Now a Half-Century Old and Still Thriving. . . . . . . . . . . . . . . . . 46 Phillips - A Strong Culture and Production Process Makes This Shop the “Best
Place You’ve Ever Worked”. . . . . . . . . . . . 62 Phillips - ABRA’s New Career Development Academy Offers Attractive Incentives & Aims to Train and Place the Workforce of Tomorrow . 50 Phillips - Five Ways to Deliver Outstanding Customer Service. . . . . . . . . . . . . . . . . . . 80 Phillips - Small Town Business Splits Time between Collision Repair & Classic Car Restoration. . . . . . . . . . . . . . . . . . . . . . . . 74 Phillips - The Road to Autonomous Vehicles: How Collision Repair Shops Should Prepare. 52 Phillips - What Shops Can Expect to See in Vehicle Hacking, Accident Avoidance Technology & Cybersecurity . . . . . . . . . . . 66 Yoswick - Retro News: National Leadership Conference, Lou DiLisio on 9/11, NACE in ‘06, MSO Panel in ‘11 . . . . . . . . . 78
Many people consider autonomous vehicles to be a significant part of the future of the automotive industry. As the technology for autonomous vehicles continues to develop, it may be necessary for state and municipal governments to address the potential impacts of these vehicles on the road. Sixteen states introduced legislation related to autonomous vehicles in 2015, up from 12 states in 2014, nine states and D.C. in 2013, and six states in 2012. States with Enacted Legislation In January 2016, U.S. Transportation Secretary Anthony Foxx unveiled new policy that updates the National High-
NATIONAL AMi Honors Class of 2016 . . . . . . . . . . . . . . 22 Auto Glass TV Informs and Entertains Technicians . . . . . . . . . . . . . . . . . . . . . . . 30 BASF Automotive Refinish Continues 25-Year Partnership with CARSTAR. . . . . . . . . . . . 44 California Regulator’s Stand On ‘Alt-OE’ Parts May Lead to Pressure To Clarify The Terminology. . . . . . . . . . . . . . . . . . . . . 1 CAPA Announces New Certification Standard for AC Condensers . . . . . . . . . . . . . . . . . . 36 Carstar Canada and US Unite As “1” at Annual Industry Conference . . . . . . . . . . . 54 Collision Repair Online Courses Now Available at AMI . . . . . . . . . . . . . . . . . . . . 30 Congers Collision Earns Assured Performance Certification . . . . . . . . . . . . . . . . . . . . . . . 47 CREF’s Golf Fundraiser Supports Education for Next Generation. . . . . . . . . . . . . . . . . . 76 Driven Brands’ Jose R. Costa Earns the Gold Award for Executive of the Year. . . . . . . . . 30 Driverless Car Bills Speed through Michigan Senate. . . . . . . . . . . . . . . . . . . . . 4 GM Uses Humor to Educate Consumers About Original Collision Parts . . . . . . . . . . 34 Honda ProFirst Certification Program Reaches 700 Shops . . . . . . . . . . . . . . . . . . 1 I-CAR and ASE Announce Collaborations that Align and Build on Training, Curriculum, and Certification . . . . . . . . . . 40 Industry Invited to Collision Repair Education Foundation and Atlanta I-CAR Committee’s Back-to-Back Events This October . . . . . . 73 Louisiana Flooding, Sub-water: Flooded Cars Overwhelming . . . . . . . . . . . . 1 MSO Symposium Looks at International Business Models, Slow-Down in Consolidation . . . . . . . . . . . . . . . . . . . . . . . 1 NHTSA’s Proposed Rule on Recall Notification. 34 OR Shop Owner is an Unlikely Advocate For Portland’s Springwater Homeless . . . . . . . 36 PPG Earns American Honda Approval. . . . . . 48 State Farm’s Offer & Acceptance Program to Change and the Offer Is Going Down . . . . 48 Update on Enacted Driverless Cars Legislation . 3 Volvo to Sell Self-Driving Car Tech to Other OEMs . . . . . . . . . . . . . . . . . . . . . . . 76
way Traffic Safety Administration’s (NHTSA) 2013 preliminary policy statement on autonomous vehicles. This announcement was made at the North American International Auto Show in Detroit in conjunction with a commitment of nearly $4 billion over the next 10 years to accelerate the development and adoption of safe vehicle automation. The new policy is designed to facilitate and encourage the development and deployment of technologies with the potential to save lives. Within six months, NHTSA will propose guidance to industry on establishing principles of safe operation for fully autonomous vehicles.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor and Copywriter: Deana Cacus Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales Assistant: Jessica Day Content/Special Media Specialist: Cass Heckel Art Director: Rodolfo Garcia
Abaris Training Resources, Inc. . . . 30 Acura of Westchester . . . . . . . . . . . 40 ALLDATA . . . . . . . . . . . . . . . . . . . . . 12 Amato Agency . . . . . . . . . . . . . . . . 58 Anest Iwata USA, Inc. . . . . . . . . . . . 15 Atlantic Hyundai . . . . . . . . . . . . . . . 10 Audi Wholesale Parts Dealers . . . . 81 Axalta Coating Systems . . . . . . . . . . 2 Bald Hill Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 38 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 14 Bergey’s Wholesale Parts . . . . . . . . 29 BMW Wholesale Parts Dealers . 64-65 Cadillac of Mahwah . . . . . . . . . . . . 34 Car-Part.com . . . . . . . . . . . . . . . . . . 18 CarcoonAmerica Airflow Systems. . 54 Central Avenue Chrysler-JeepDodge-Ram. . . . . . . . . . . . . . . . . 26 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 35 ChemSpec USA, LLC . . . . . . . . . . . 24 Cherry Hill Audi . . . . . . . . . . . . . . . . 73 Cherry Hill Porsche . . . . . . . . . . . . . 73 Cherry Hill Volkswagen. . . . . . . . . . 73 Chief Automotive. . . . . . . . . . . . . . . 17 Classifieds. . . . . . . . . . . . . . . . . . . . 82 Clay Auto Group . . . . . . . . . . . . . . . 63 Colonial Automotive Group . . . . . . 41 Ditschman/Flemington Auto Group. 49 DJS Fabrications. . . . . . . . . . . . . . . . 6 Dominion Sure Seal, Ltd. . . . . . . . . 52 Eco Repair Systems of North America, LLC . . . . . . . . . . 16 ECS Automotive Concepts . . . . . . . 40 Empire Auto Parts . . . . . . . . . . . . . . 32 Equalizer Industries, Inc . . . . . . . . . 47 Eurovac, Inc. . . . . . . . . . . . . . . . . . . 44 FBS Distribution Co. . . . . . . . . . . . . . 8 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . . 67 Ford Wholesale Parts Dealers . . . . 74 Fred Beans Parts . . . . . . . . . . . . . . 84 Fuccillo Kia of Schenectady . . . . . . 61 Gary Rome Hyundai-Kia . . . . . . . . . 58 GM Wholesale Parts Dealers . . . . . 71 Herkules Equipment Corporation. . 48 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 42-43 Hyundai Wholesale Parts Dealers . . 72 Infiniti of Norwood. . . . . . . . . . . . . . 66 Innovation Toyota-Scion . . . . . . . . . 68 Jeff D’Ambrosio Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 19
See Enacted Legislation, Page 60
Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2016 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Northeast
REGIONAL AASP/NJ Raises Scholarship Funds at 12th Annual Lou Scoras Memorial Golf Outing. . 16 Atlantic Cape Receives $2,500 for Scholarships from Rio Auto Body in NJ . . . . . . . . . . . . . 24 Axalta Teams with Stroud on Water Research . 6 Congers Collision in NY Earns Assured Performance Certification. . . . . . . . . . . . . 47 Fire Badly Damages Auto Body Shop In Cinnaminson . . . . . . . . . . . . . . . . . . . . . . . 6 Former MA Auto Shop Employees Sentenced to Prison in Connection with Corruptly Obstructing a Criminal Trial. . . . . . . . . . . . 10 Galati Gives Up, Pleads No Contest To Murder-For-Hire . . . . . . . . . . . . . . . . . . . . 12 Hardwire’s NYPD Contract Helping Another County Business . . . . . . . . . . . . . . . . . . . 24 Heckendorn’s Auto Body Wins Carlisle Men’s Softball Playoff Championship . . . . . . . . . . 8 Houston in Top 3 List of Cities with Most Auto Insurance Fraud, Others are Los Angeles and New York . . . . . . . . . . . . . . . . . . . . . . 28 Man Who Struck and Killed Tot Has Suspended License . . . . . . . . . . . . . . . . . 14 NYC to Rezone Jerome Avenue, Bronx Auto Body Shops Affected . . . . . . . . . . . . . 9 Pennsylvania Bill Incorporates Recall Checks into Safety Inspections . . . . . . . . . . . . . . . 14 Philadelphia Auto Body Shop Releases Food Truck Tutorial . . . . . . . . . . . . . . . . . . . 8 Queens, NY, Body Shop Owner Convicted of Tax Evasion, Insurance Fraud . . . . . . . . 15 Safelite AutoGlass to Open New Location in Maine . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Shop Owner Charged With Selling Customer’s Car . . . . . . . . . . . . . . . . . . . . 15 Shop Owner Gets Jail for $85K Insurance Scam in Darby, PA . . . . . . . . . . . . . . . . . . 18 Smithtown, NY, Body Shop Donates Car to Suffolk Family in Need . . . . . . . . . . . . . 22 Survey: Top Services Wanted By Dealership Service Center Customers . . . . . . . . . . . . 27 Teen Breaks Barriers, Disassembles Cars, Earns Cash . . . . . . . . . . . . . . . . . . . . . . . . 6 Three Arrested For Watertown Auto Shop Break-in . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Uber’s Self-Driving Volvos Take to Pittsburgh Streets Two Operators Per Vehicle. . . . . . . . 4 Ware Approves Building Permit for O’Reilly Auto Parts Store. . . . . . . . . . . . . . . . . . . . 16
Update on Enacted Driverless Cars Legislation
Indexof Advertisers
Contents
Jerry’s Ford . . . . . . . . . . . . . . . . . . . 13 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 75 Killer Tools & Equipment. . . . . . . . . . 5 Koeppel Mazda . . . . . . . . . . . . . . . . 56 Long Automotive Group . . . . . . . . . 60 Lynnes Auto Group. . . . . . . . . . . . . 31 Mazda Wholesale Parts Dealers . . . 70 Mercedes-Benz of Atlantic City. . . . 51 Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . . . 51 Mercedes-Benz of West Chester . . 51 Mercedes-Benz of Wilmington . . . . 59 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 76 MINI Wholesale Parts Dealers . . . . 62 Miracle System/Equipment Gateway, Inc. . . . . . . . . . . . . . . . 22 Mirka USA . . . . . . . . . . . . . . . . . . . . 27 Mitchell International. . . . . . . . . . . . . 9 Mitsubishi Wholesale Parts Dealers. 80 MOPAR Wholesale Parts Dealers . . 45 Motor Guard Corporation . . . . . . . . 18 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 78 Polyvance . . . . . . . . . . . . . . . . . . . . 20 Porsche Wholesale Parts Dealers . . 68 Preval . . . . . . . . . . . . . . . . . . . . . . . 83 ProLine Tool & Supply . . . . . . . . . . 46 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . . 48 SATA Dan-Am Company . . . . . . . . 23 Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . . 7 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . 32, 33 Shop Pro Equipment . . . . . . . . . . . 25 Sorbothane . . . . . . . . . . . . . . . . . . . 50 Subaru of Morristown . . . . . . . . . . . 55 Subaru Wholesale Parts Dealers . . 79 Tasca Automotive Group . . . . . . . . 69 Toyota of Morristown . . . . . . . . . . . 55 Toyota Wholesale Parts Dealers . . . 76 U-POL US . . . . . . . . . . . . . . . . . . . . 28 Valspar Automotive . . . . . . . . . . . . . 11 VIP Honda . . . . . . . . . . . . . . . . . . . . 53 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 77 Volvo Wholesale Parts Dealers . . . . 78 Wagner Auto Group . . . . . . . . . . . . 57 Walcom . . . . . . . . . . . . . . . . . . . . . . 39 Westbury Jeep-Chrysler-DodgeRam-SRT. . . . . . . . . . . . . . . . . . . 37 WyoTech . . . . . . . . . . . . . . . . . . 21, 36
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 3
Uber’s Self-Driving Volvos Take to Pittsburgh Streets Two Operators Per Vehicle
Uber has launched a fleet of self-driving cars in Pittsburgh, making this city of 300,000 the first in the US to let any passenger hail an autonomous vehicle. The Uber vehicles are equipped with seven traffic-light detecting cameras to a radar system that detects different weather conditions to 20 spinning lasers that generates a continuous, 360 degree 3-D map of the surrounding environment. For now, Uber’s test cars travel with safety drivers, as common sense and the law dictate. These professionally trained engineers sit with their fingertips on the wheel, ready to take control if the car encounters an unexpected obstacle. A co-pilot, in the front passenger seat, takes notes on a laptop, and everything that happens is recorded by cameras inside and outside the car During the demonstration for reporters two engineers were seated in front—the backup driver and another monitoring the car's 3-D map and scribbling notes on how to improve the car's software. The engineers undergo a week of safety orientation or more to drive the cars. “We actually think of Pittsburgh as the double black diamond of driving,” Raffi Krikorian, director of Uber Advanced Technologies, said. “If we can really tackle Pittsburgh, than we have a better chance of tackling most other cities around the world... Bridges are re-
ally hard,” Krikorian said. “And there are like 500 bridges in Pittsburgh.” Pittsburgh has helped Uber to expand its research around autonomous vehicles, by leasing a large plot near the city’s riverfront for a testing track. When state regulators tried to ban ridesharing services in 2014, Pittsburgh’s mayor and the state’s governor helped negotiate those hurdles. Pittsburgh’s mayor, Bill Peduto, said “It’s not our role to throw up regulations or limit companies like Uber.” Uber planned to use about 100 modified Volvo sport utility vehicles for the passenger trials. The vehicles will also have a human monitor behind the wheel. “You can either put up red tape or roll out the red carpet. If you want to be a 21st-century laboratory for technology, you put out the carpet.” Uber has 500 employees at a center in Pittsburgh’s industrial Strip District working on autonomous vehicles, according to Mr. Peduto. Uber will have 1,000 employees at the site, known as the Advanced Technology Center, within a few years Peduto said “There is no technology that is fail-proof and there is no tech that can guarantee there won’t be accidents, but right now there are 3,287 people who die in automobilerelated accidents around the world each day, and there has to be a better way,” he said.
Driverless Car Bills Speed through Michigan Senate by Michael Gerstein and Michael Martinez, The Detroit News
The Michigan Senate overwhelmingly approved a legislative package on September 7 that would let companies cruise ahead with plans to operate driverless vehicles on Michigan roads, with one legislator comparing it to the race to put a man on the moon. In a series of 36-0 votes, the Republican-controlled chamber approved bills that would allow the burgeoning autonomous car industry to put electronically-controlled vehicles on any Michigan road. “We’re moving into the next century, ladies and gentlemen,” Senate Majority Floor Leader Mike Kowall, R-White Lake, told fellow senators as he urged support for the legislation, which he introduced earlier this year. The package of four bills aims to keep Michigan ahead of competing states like California and Florida that are trying to lure companies and investments with autonomous car-friendly laws. The new laws would allow the public to buy and use fully driverless
Two Drivers or None?
cars whenever they’re available. They would allow an autonomous car without a steering wheel or pedals, and not require that a human be ready to take control in an emergency. Until now, autonomous vehicles could only be driven in Michigan for test purposes, and a driver had to be at the ready. The new laws also would allow ride-sharing services without drivers to be operated by auto manufacturers or ride-hailing services like Lyft or Uber. One of the bills would also allow for the decommissioning of small stretches of public road to be used privately as part of the proposed American Center for Mobility test site at Willow Run. “I see this as the equivalent of the race to space,” said state Sen. Ken Horn, R-Frankenmuth. “We can think of these Senate bills as one small step for Lansing, one giant leap for driverless mankind.” The legislation has the support of major automakers and suppliers, many House lawmakers and Gov. Rick Snyder. Snyder has said driverless-car testing and operations are crucial for help-
4 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
ing Michigan keep its economic edge and remain the automotive capital of the world after years of economic hardship. Michigan is one of seven states that, along with Washington, D.C., have laws allowing testing of autonomous cars, according to the National Conference of State Legislatures. California, Florida and Nevada have laws allowing for the “operation” of those cars beyond testing. The legislation now moves to the state House for consideration. Bryant Walker Smith, a law professor at the University of South Carolina who studies self-driving car regulation, called the bills “a mixed bag.” “Critically, they are in desperate need of clarification followed by thoughtful discussion,” he said. Walker Smith said the bills do a good job of allowing autonomous vehicles on the road, but much of the language becomes confusing and difficult to differentiate from current laws. “Like earlier bills in Michigan and other states, SB 995 and 996 understandably struggle to reconcile an
existing vehicle code with automated driving,” he said, going on to call some of the language “collectively, a mess.” The bills follow a state board’s July approval of $20 million to help transform a former World War II bomber plant in Ypsilanti into a new testing facility for autonomous vehicles. The facility would be complete with roads, traffic lights and cul-de-sacs at Willow Run. The National Highway Traffic Safety Administration is expected to release draft guidelines later this year that would serve as a framework for states crafting new laws that allow the self-driving cars on public roads. It’s unclear when companies might open sales to the general public. We thank the Detroit News for reprint permission.
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www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 5
Teen Breaks Barriers, Disassembles Cars, Earns Cash For Abigale Lutz, age 17, cars were practically a part of the family. So when her high school counselor at Cleveland Hill exposed her to Erie 1 BOCES’
Center. “Abigale is one of eight teens who are the first students to participate in this paid summer experience before entering 12th grade.” Abigale was assigned to Collision Masters on Pearl Street in Buffalo. Collision Masters joined Erie 1 BOCES, Carubba Collision, Gabe’s Collision, Joe Basil Chevrolet and West Herr in the pre-apprenticeship consortium. All five collision businesses have employed students this summer. “They are teaching me new things and helping me know Abigale Lutz, age 17, looks forward to a future in the what I am doing well and what I automotive industry. can improve on,” said Abigale Collision Repair program, she enrolled about her experience. “I like it a lot without hesitation. In addition to her here... my friends are proud of me.” keen instincts, her timing was impecFrank Todaro, Erie 1 BOCES cable. Around the time Abigale was alumnus and owner of Collision Masstepping into her first paint booth, be- ters, called a meeting with his staff to hind the scenes, six businesses were ensure Abigale would have a smooth forming an unprecedented alliance to transition in the shop. “I didn’t need to; initiate a paid high school pre-appren- everyone was on board and she fits ticeship. right in with the team,” said Todaro. “Western New York dealerships “Within the last four weeks, she has roand independent collision shops need tated through different areas to get a more qualified collision repair techni- feel for various aspects of the business. cians,” said Robert Verso, Abigale’s From detailing cars and paint preparacollision repair instructor at Erie 1 tion to disassembling vehicles – I think BOCES Harkness Career & Technical she’s found her niche.”
Axalta Teams with Stroud on Water Research
In the wake of the recent release of its 2014-2015 Sustainability Report and the launch of its Sustainable Star customer awards program, Axalta Coating Systems has announced a partnership with Stroud Water Research Center. Stroud’s mission is to advance the knowledge and stewardship of freshwater systems through global research, environmental education, and watershed restoration. The partnership unites the two organizations that have a similar philosophy and support of sustainable initiatives. Axalta’s waterborne and low volatile organic compound (VOC) liquid coatings and powder coatings that are virtually VOC-free and have no targetted hazardous air pollutants provide environmentally-responsible product options for customers. In addition, Axalta’s products are designed not only to beautify, but also help provide protection to a multitude of materials including automobiles, heavy duty trucks, playground equipment, oil and gas pipelines, and more. Axalta is proud to have developed technologies and processes to lessen its own environmental footprint and that of its customers. “As a global institution dedicated to fresh water, Stroud is thrilled to have
a partner like Axalta that is dedicated in its global efforts to sustainability of the environment,” said Bern Sweeney, Ph.D.–Stroud Water Research Center Director and Senior Scientist. “Together, we look forward to raising awareness and expanding our outreach.” “Sustainability is central to virtually everything we do as a coatings company,” said Mike Carr, Axalta President-North America. “We are excited about our partnership with Stroud Water Research Center. Responsible organizations strive to minimize their impact on the environment. We believe Stroud is leading the way in freshwater research and Axalta is leading by example. I am confident that we will each continue to advance in our respective research areas and continue to enlighten others.” Axalta and Stroud will present a collaborative education program: Delaware River Watershed Initiative on October 19, 2016 at the Union League in Philadelphia; a joint educational program for students that includes a hands-on component that highlights science and technology; and an upcoming lecture to take place on Nov. 3, 2016 at Longwood Gardens in Kennett Square, PA.
6 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
While the paycheck is an incentive for some, for Abigale, it is a bonus. “I would do it regardless... after high school, I want to work at a collision shop during the day and attend business college at night. I want to own a business someday,” said Abigale. When asked what she would tell other young females considering a profession in a male-dominated field like automotive, she responded, “It is okay to be a girl and like cars. If you like it go for it. Be the best at it that you can.” The businesses involved are all members of I-CAR, the Inter-Industry Conference on Auto Collision Repair, which sets industry standards. In addition to paid experience, upon graduation from high school, Erie 1 BOCES collision repair students will be guaranteed a job interview for applicable openings at various consortium locations. If hired, graduates will be provided further apprenticeship opportunities and entry level training support. Erie 1 BOCES is a part of public education structure, serving 19 school districts in Erie County. Students and parents interested in learning more about the collision repair pre-apprenticeship consortium should speak with their high school counselor or visit www.e1b.org.
Fire Badly Damages Auto Body Shop In Cinnaminson
An auto body shop in Cinnaminson was badly damaged during a fire early Monday, September 12, the Burlington County Times reports.
Fire at Michael’s Auto Body in Cinnaminson
Five of the auto shop's bays were destroyed, as were four cars inside the shop, according to the report. Four other cars were damaged by heavy smoke and debris. Two bays on the left side of the shop and a few behind the part of the shop that burned down remained intact, according to the report. The fire at Michael’s Auto Body Shop on Route 73 broke out just after 5:30 a.m., according to 6 ABC. No one was injured in the blaze, which firefighters had under control by about 7:45 a.m., according to NBC 10. The cause was unknown as of September 12. We thank The Patch Cinnaminson for reprint permission.
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 7
Heckendorn’s Auto Body Wins Carlisle Men's Softball Playoff Championship
Heckendorn’s Auto Body survived a slugfest loss in its opener, rallying back for a victory in the winner-takeall championship of the Carlisle
Credit: Wes Peterson
Men’s Softball playoff championship that same night. The 15-4 triumph over North Hanover Grille/Shearer Advertising completed the title run for Heckendorn’s, which finished third in the regular season but was the last unbeaten team in the playoff tournament.
That’s until N. Hanover/Shearer posted a 21-10 victory in Tuesday’s first game to force a final game later that evening.
It was in that final game that Chris McQuillan (three hits) and Zayne Dellinger belted home runs to lift Heckendorn’s to victory. Jake Wilson and Chris Ickes went yard for N. Hanover/Shearer in the earlier victory, with Wilson and Travis Ruhl collecting four hits each.
8 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Philadelphia Auto Body Shop Releases Food Truck Tutorial Food trucks are popping across all of America's major cities. Diners with limited time find these mobile restaurants as a quick alternative to a sit-
down establishment because they provide quick service without sacrificing food quality. Unfortunately, the food truck business is very volatile. A few bad reviews can ruin their reputation and quickly leave them in dire financial situations. Executive Auto Salon, a Philadelphia-based auto body shop who specializes in food truck renovations, has recently released a tutorial entitled “7 Necessities When Starting A Food Truck Business.” The blog post discusses some simple yet commonly overlooked business practices that make a big difference. The first tip the company provides is basic yet critical; “Perfect Your Signature Dishes.” Price and promo-
tion are meaningless if the product doesn't deliver. Executive Auto Salon also suggests that buyers of food trucks pick the right vehicle for their needs and address any internal or external issues immediately to avoid future closures, fines, and headaches. Executive Auto Salon has renovated and consulted for many of these mobile businesses, and the auto body shop encourages food trucks to make sure the entire interior is clean, inspected, and up to industry standards. The organization offers a thorough 200-point safety inspection for all of its food truck clients. Executive Auto Salon also recommends that food trucks keep their menu simple, evolve based on popularity, and offer at least one vegetarian option. Having a small, tasty menu that appeals to the masses will ensure repeat business and positive word of mouth. The company is a member of the Philadelphia Mobile Food Truck Association and releases a monthly blog with different information every month. In addition to food truck makeovers, the company is also known for Philadelphia paint jobs and car detailing in Northeast Philadelphia. For more information, visit http:// www.executiveautosalon.com/.
NYC to Rezone Jerome Avenue, Bronx Auto Body Shops Affected by Audrey Wachs, The Architect’s Newspaper
After scoring a win for his affordable housing policy with rezoning of East New York, Mayor de Blasio is setting his sights on the Bronx’s Jerome Avenue.
Under the elevated on Jerome Avenue. Credit: Nathaniel C. / Flickr
The Department of City Planning (DCP) released preliminary documents that outline plans to rezone a 73-block area of the southwest Bronx. The Special Jerome Avenue District is centered on its namesake street, the area’s bustling commercial spine that teems with mom-and-pop auto body shops beneath the steel canopy of the 4 train.
The rezoning would allow for large mixed-use residential buildings on the avenue, which is now zoned C8-3, M1-2, C4- 4, R7-1, R8 C-83, commercial designations that includes hotels, office space, and industrial uses like warehouses and auto shops. The entire area would be rezoned R7, R8, R9 (high-density residential); C4-4D (a mediumdensity commercial district with an R8A equivalent that can have 7.2 FAR in areas zoned for Mandatory Inclusionary Housing (MIH); and topped off with C2-4 commercial overlays. The rezoning would indeed apply MIH, part of the mayor’s plan to guarantee affordable housing as a condition of market-rate residential development, to almost all of the new district. Near the district’s southern boundary, around McClellan Avenue, towers could rise up to 145 feet, YIMBY reports. At Tremont and Burnside avenues, around the northern end of the district, new buildings could be up to 120 feet tall; near West 170th street and all along Jerome, buildings could be 80 to 100 feet in height.
The height increases are tied to setbacks that should allow light and air onto Jerome, which can grow forebod-
Credit: The Architect’s Newspaper
ingly dark at night because of the elevated train. (Perhaps the city will crib from the Design Trust for Public Space’s Under the Elevated, a project to revitalize 700 miles of public space that lies beneath elevated infrastructure.) The rezoning also includes promises to enhance parks and public spaces in the neighborhoods. In all, the DCP estimates that the rezoning will allow 72,273 square feet of community space, 35,575 square feet of commercial or retail space, and 3,250 new apartments, When the rezoning was proposed back in March 2015, residents worried it would be the doomsday toll for the auto shops, which offer skilled, good-paying jobs to a largely Latino workforce.
The community’s concerns are justified: The DCP estimates that 47,795 square feet of industrial space and 98,002 square feet of shop space will be eliminated. As a result, over 100 jobs will be lost. New residents would be more affluent than current ones, as measured by their expected average incomes. The city promises to do another study to analyze the impending displacement of auto shops, although there’s no word on whether there will be an analogous study on the possibility of residential displacement. There’s plenty of time to deliberate, protest, and offer feedback on the Special Jerome Avenue District plan, though. It must pass through the lengthy public approvals process, which includes meetings with community boards, the borough president’s office, the City Planning Commission, and finally the City Council. The first public meeting, where DCP officials will be on hand to answer questions from the public, is scheduled for September 29 at the (Stanford White–designed) Gould Memorial Library Auditorium at Bronx Community College. We thank The Architect’s Newspaper for reprint permission.
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 9
Three Arrested For Watertown Auto Shop Break-in by Alex Newman, The Patch Watertown
Watertown, MA, Police arrested three suspects in connection with a break-in at a local auto body shop. Joseph Elwell, Sabino Aviles and Kevin Szydlowski were taken into custody on charges related to breaking
Joseph Elwell, Kevin Szydlowski, and Sabino Aviles
and entering in the July 25 crime. Police say the suspects chiseled through an adjoining concrete wall into the office of AAA Auto Clinic on Main Street and stole an undisclosed amount of cash. Elwell, a Marlborough resident, and Aviles, of Framingham were charged with breaking and entering at night, larceny over $250 and breaking into a depository. Szydlowski, of Watertown, was criminally charged and summoned for his role in the crime, according to police. We thank The Patch Watertown for reprint permission.
Former MA Auto Shop Employees Sentenced to Prison in Connection with Corruptly Obstructing a Criminal Trial Two auto body shop employees have been sentenced to prison after pleading guilty to corrupting witnesses and making bribes for false testimony. This was part of a conspiracy to obtain acquittals at a March 2012 automobile insurance fraud criminal trial, Attorney General Maura Healey announced on September 15. On September 13, Suffolk Superior Court Judge Robert B. Gordon sentenced Fred Battista, age 54, of Winthrop, to two to three years in state prison. Judge Gordon sentenced David Forlizzi, age 56, of Peabody, to three to four years in state prison the week prior. Forlizzi and Battista pleaded guilty in July and August, respectively, to charges of Corrupting a Witness, Suborning Perjury, Obstruction of Justice, and Conspiracy. In March 2008, a Suffolk County Grand Jury returned indictments against six individuals, including Fred Battista and David Forlizzi—who ran Collision Headquarters, Inc. in Winthrop—for Insurance Fraud, Larceny, and Conspiracy relating to false automobile insurance property damage claims. The other individuals charged were Janet Vaccari, Deana Pistone,
10 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Laura Battista, and William Penta. The indictments focused on an alleged insurance fraud scheme that involved intentionally damaging automobiles, falsely reporting that the vehicles had been involved in accidents, and collecting property damage proceeds from motor vehicle insurance companies. During the investigation, Vaccari, Pistone and Penta gave recorded statements to investigators that Fred Battista and Forlizzi arranged the insurance fraud. In November 2008, Vaccari, Pistone, Penta, and Laura Battista pleaded guilty to conspiring with Fred Battista and Forlizzi to carry out the fraud. In March 2012, during the trial of Fred Battista and David Forlizzi, Vaccari, Penta and Laura Battista gave false testimony in direct contradiction to their prior recorded statements and guilty pleas, that they had initiated the false insurance claims totally on their own and without the involvement or knowledge of Fred Battista or Forlizzi. Pistone, who had given a recorded statement implicating Forlizzi in the insurance fraud, could not be located for trial. At the conclusion of the Commonwealth’s evidence in the 2012
trial, Suffolk Superior Court Judge Regina L. Quinlan entered verdicts of Not Guilty in favor of Battista and Forlizzi, and referred the matter to the Attorney General’s Office to investigate for perjury, subornation of perjury, and obstruction of justice. The AG’s investigation uncovered evidence that Forlizzi and Fred Battista had procured perjured testimony at trial from Vaccari, Laura Battista and Penta, paid thousands of dollars to Laura Battista to obtain her false testimony, and paid money to Vaccari to keep Pistone out of state so she would be unavailable to testify at the trial. In July 2012, Forlizzi, Fred Battista, Vaccari, Pistone, Laura Battista, and Penta were arraigned in Boston Municipal Court and were charged with perjury, corruption of witnesses and conspiracy. In November, 2012, all six defendants were indicted on obstruction of justice, corruption of witnesses, perjury and conspiracy charges. On March 29, 2012 Vacarri, Laura Battista and Penta pleaded guilty to all of the charges pending against them. Their sentencings are scheduled for October 7, 2016.
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 11
Galati Gives Up, Pleads No Contest To Murder-For-Hire by George Anastasia, BigTrial.net
On September 7, Ron Galati decided to fold his cards rather than fight murder-for-hire and insurance fraud charges in Commons Pleas Court. Already serving a 22-year federal sentence for a conviction in a different murder conspiracy case, the 65-yearold South Philadelphia auto body shop owner pleaded no contest to a series of charges tied to two separate indictments pending against him. Galati implied that he was not guilty, but said he opted to take a deal offered by the District Attorney’s Office in order to “put this away and move on.” “This is the best decision,” he told Judge Daniel Anders during a protracted hearing that began shortly before 10 a.m. and did not conclude until 12:45. Under the terms of the plea deal, Galati’s sentence in the two Common Pleas Court cases will run concurrently with the federal sentence he is currently serving. In addition, the District Attorney’s Office agreed to drop insurance fraud charges against Galati’s wife, Vicki. Galati’s son, Ron Jr., entered a guilty plea at a separate hearing to bid rigging and fraud charges tied to what authorities said was a multi-million dollar insurance fraud scam run out of Galati’s American Collision body shop in South Philadelphia. Both Galatis are to be sentenced on Dec. 9. Assistant District Attorney Dawn Holtz laid out the cases against Galati during today’s hearing. The plea deals were announced as jury selection was about to begin in the murder-for-hire case. But it took nearly two hours, including a closed door meeting between Galati and his attorney, Trevan Borum, to finalize the agreement. Galati was accused of hiring two hitmen, Ronald Walker and Alvin Matthews, to murder a rival auto body shop owner and his son. Authorities said Galati believed—correctly as it turned out—that Joseph Rao and his son Joseph Jr. were testifying before a grand jury in an insurance fraud probe that had targeted Galati. Holtz said today that testimony would indicate that Galati agreed to pay Walker and Matthews $20,000 each to carry out the murders and that he wanted the two men “shot in the head.” Galati interrupted the presentation
and told Anders he had never offered to pay $20,000 to have the Raos killed, adding that Joseph Rao Sr. “was the best friend you could ever have.” Nevertheless, after some questioning by Anders and consultation with his lawyer, Galati agreed to the no contest plea. He had originally offered to plead guilty, but backed away from that during the hearing. Walker, Matthews, another Galati associate, Jerome Johnson, and the Raos were all expected to testify for the prosecution had the case gone to trial. They would have offered the story that Holtz described in her presentation, the assistant DA said. The two hitmen and Johnson had all testified for the government in the federal prosecution of Galati in Camden two years ago. In that case, he was convicted of hiring the same hitmen to kill his then estranged daughter Tiffany’s boyfriend, Andrew Tuono. Tuono survived a shooting outside his Atlantic City home in November 2013. At that point, authorities said, the hit on the Raos had been put on hold because their auto body shop had been closed. Tiffany Galati, who testified for the government in the Tuono case, sat with her mother and brother during today’s hearing. The young South Philadelphia row house princess has apparently reconciled with her family. She ended her relationship with Tuono shortly after the shooting. The insurance fraud case involved more than two million dollars in what authorities said were reimbursements paid by insurance companies in a scheme devised by Galati that included fake or staged accidents and false or inflated repair bills. The case also involved bid rigging and doctoring repair costs for city vehicles. In all, the District Attorney’s Office said, insurance companies “issued $2.3 million in connection with fraudulent claims” and Galati’s company also received “over $1.8 million from the city of Philadelphia” for vehicle repair work for which his shop was not qualified. The insurance fraud scam included staged photos taken by Galati designed to demonstrate that vehicles had been damaged. “Galati favored deer hits, vandalism and vehicular damage from tra-
12 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
jectory objects because each could be categorized as a non-fault accident for which the insured would not be held liable,” authorities said in announcement the indictment against Galati and dozens of others in May 2014. Many of his co-defendants were customers who went along with the scheme. Most have pleaded guilty to related charges. Among other things, authorities said witnesses told them that Galati “stored deer blood, hair and carcasses in the back of his shop” and would stage fake photos using those items to support insurance claims. “I live my life to cheat insurance companies,” a witness said Galati would exclaim, calling that his “mantra.” The fraud and murder-for-hire cases were investigated by Detective Robert DiFrancesco of the DA’s Office and Pennsylvania State Trooper Michael Romano of the Organized Crime Division of Bureau of Criminal Investigation. Galati has long been identified as an associate of South Philadelphia mob leaders Joseph “Skinny Joey” Merlino, George Borgesi and Joseph “Uncle Joe” Ligambi. Authorities
believe, but have never been able to prove, that Galati’s autobody shop was used in 1993 to outfit a stolen van used in a notorious attempted hit on the Schuykill Expressway. Then-mob boss John Stanfa was targeted in that rush hour ambush in which two men fired on Stanfa’s car from portholes that had been cut into the side of a van that pulled up alongside Stanfa’s vehicle. Stanfa’s son Joseph was wounded in that shooting, which escalated a bloody war between factions headed by Stanfa and Merlino. Galati has a prior insurance fraud conviction for which he served about 38 months. He was convicted of federal murder-for-hire charges in the fall of 2014.
We thank BigTrial.net for reprint permission.
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www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 13
Pennsylvania Bill Incorporates Recall Checks into Safety Inspections
Pennsylvania House Bill (HB) 2297, introduced by state Rep. Madeleine Dean, D-153, would require state vehicle safety inspections to include a review of any potential safety recalls using the vehicle’s VIN number and notify the owner or driver of the vehicle if the vehicle is subject to a recall. If the vehicle otherwise meets the usual safety criteria, shops are permitted to issue a certification of inspection. According to H.B. 2297, the term “safety recall” means a determination by a manufacturer or the National Highway Traffic Safety Administration that a vehicle has a safety-related defect or does not comply with a Federal motor vehicle safety standard. If enacted, the bill will take effect within 60 days. Robert L. Redding Jr., ASA
Washington, D.C., representative, spoke in support of the bill, stating, “At the Vehicle Safety Inspection Forum hosted by ASA and ASA-PA in Philadelphia, shop owners discussed the value of including recall notices as part of the vehicle safety inspection. ASA supports state inspection programs including these notices to consumers.” H.B. 2297 has been referred to the Committee on Transportation for further review. On September 27, ASA will host a webinar on Vehicle Safety Inspections and Safety Technology. For more information, visit www.ASAshop.org or ASA’s legislative website at www.TakingThe Hill.com.
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14 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Man Who Struck and Killed Tot Has Suspended License The man who backed up his van in a parking lot, striking and killing a one-year-old, was driving with a suspended license.
Family members grieve the loss of Joshua
Antonio Mendez, 31, of Middletown, is an employee at Joshua’s Auto Body, where the tragic accident occurred. The business is owned by the parents of the little victim, whose name was Joshua Gutierrez. The family lives in Bloomingburg. Wallkill Police Chief Robert Hertman said that the child’s mother rushed her son to Orange Regional Medical Center, where he was pronounced dead.
The boy and his mom had gone to the family shop to pick up Joshua Gutierrez Senior to bring him home. While they waited, little
Joshua was chasing a ball in the parking lot when Mendez’s vehicle struck him. Mendez is to appear in town court in November. The investigation is being conducted by Wallkill detectives along with the Orange County District Attorney’s Office, State Police and Middletown City Police.
We thank MidHudsonNews.com for reprint permission.
Shop Owner Charged With Selling Customer’s Car
needed additional repairing to which the victim agreed, according to the An auto repair shop owner is behind sheriff’s office. bars after he sold an elderly cusWhile waiting for the repair, Airtomer’s car while he was port Autobody closed and supposed to be repairing it, Depter moved the victim’s according to police. vehicle to his new WaterScott Depeter, also boro location. The elderly known as Thomas Depeter, victim fell ill, and he was 43, of Waterboro was charged unable to check on the with felony theft by deception progress of the work. and felony aggravated forThe elderly man was billed Scott Depeter, gery, the York County Sher- 43, of Waterboro $2,000 for repair work, and iff’s Office said in a news he was not allowed to see the release dated August 13. vehicle until payment was made. The Deputy Shawn Sanborn ob- man filed several complaints with the tained an arrest warrant for Depeter, Sanford Police Department and the who surrendered to authorities Friday, York County Sheriff’s Office. August 12. Sanborn, a deputy with the sherIn January, Depeter was charged iff’s office, initiated an investigation with theft by deception in connection and discovered the vehicle was regiswith a “Craigslist scam” that police tered to a man in Wakefield, New said he conducted that duped an Illinois Hampshire. The investigation reman out of several hundred dollars. vealed that Depeter sold the vehicle The sheriff’s office received in without a title and forged a bill of July another complaint about another sale. That new owner then sold it to theft. Earlier this year, an elderly vic- the man in Wakefield. The vehicle has tim had left his 1999 Ford Mustang at been recovered and will be returned Airport Autobody to have a window to its rightful owner, according to the repaired. The job was taking an ex- sheriff’s office. traordinary amount of time and the Depeter is being held at the York elderly man checked back periodi- County Jail in Alfred in lieu of cally. $25,000 bail. At one point, Depeter told the We thank Bangor Daily News for man that the vehicle was “rusted” and reprint permission. by Stephen Betts, Bangor Daily News
Queens, NY, Body Shop Owner Convicted of Tax Evasion, Insurance Fraud
Attorney General Eric T. Schneiderman and Department of Taxation and Finance Commissioner Boone announced on Setpember 14 the guilty plea of Aniello Strocchia, 43, owner of BM Auto Collision, Inc., headquartered in Maspeth, New York. Strocchia pleaded guilty in Queens County Supreme Court to defrauding insurance companies and failing to pay sales tax to the state. The conviction is the result of a long-term investigation conducted by the Auto Insurance Fraud Unit (AIFU) of the Attorney General’s Criminal Enforcement and Financial Crimes Bureau, together with the Criminal Investigations Division of the New York State Department of Taxation and Finance (CID). AIFU’s investigation revealed that Strocchia and his auto body shop, BM Auto Collision, Inc., defrauded insurance companies by adding damage to mostly high end vehicles and then billing the insurance companies for unnecessary work. A parallel investigation was also conducted with CID into tax evasion by Strocchia and BM Auto and uncovered that Strocchia had underreported
company revenue by over $480,000 over a two-year period in an effort to avoid paying sales tax. On September 14, Strocchia entered a guilty plea in Queens County Supreme Court to one count of Insurance Fraud in the Third Degree, a class D felony, and one count of Criminal Tax Fraud in the Fifth Degree, a class A misdemeanor. Strocchia admitted that between September 2012 and December 2014, he and his employees systematically added damage to vehicles brought to BM Auto for repair, and then submitted fraudulently inflated vehicle repair estimates to insurance carriers. Strocchia further admitted that between March 2011 and February 2013, he failed to remit sales tax due by BM Auto to the Department of Tax and Finance. As part of his plea, Strocchia agreed to pay $500,000 as restitution to auto insurance companies and to New York State. Strocchia is scheduled to be sentenced to 5 years’ probation on December 6. The Attorney General thanked the National Insurance Crime Bureau and GEICO for assisting in this investigation.
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 15
Ware Approves Building Permit for O'Reilly Auto Parts Store
O'Reilly Auto Parts is expected to open here as early as this fall at a location formerly used by a pharmacy
O'Reilly Auto Parts store on State St. in Springfield (Photo credit: The Republican)
and most recently for a Sears Hometown outlet at 124 West St. Ware's building inspector approved a building permit for the auto parts store last month. The onestory structure that will house the parts store has nearly 5,000 square feet of space, and is located across the street from a McDonald's restaurant. O'Reilly Auto Parts operates 21 Massachusetts businesses, with nearby stores in Palmer, Springfield, Chicopee and Orange. We thank The Republican for reprint permission.
AASP/NJ Raises Scholarship Funds at 12th Annual Lou Scoras Memorial Golf Outing
by Chasidy Rae Sisk
On August 29, the AASP/NJ hosted its 12th Annual Lou Scoras Memorial Golf Outing at the Colonia Country Club to honor one of the association’s most beloved members. A portion of the proceeds from the fundraiser was donated to the Lou Scoras Scholarship Fund. Charles Bryant, executive director of AASP/NJ, stated, “Even though this is a very emotional day for those of us who knew and worked with Lou, it’s gratifying to see how much support we get and how much fun the players have... it was a fantastic day all around.” Shop owners, technicians, vendors and other industry professionals came out for a fun-filled day of lunch, golf and networking. Over 50 sponsors contributed to the event through hole and prize sponsorships.
This year’s winning team was comprised of Randy Scoras, John Scoras, Al Taylor and George Lechner. Second place was awarded to Mitch Portnoi and Robert Spitzer, and the team consisting of Keith Egan, Robert Mallon and Wes Mallon came in third. John Scoras won the prize for Closest to the Pin, with Bill Laub taking the Longest Drive victory. After golfing, attendees indulged in a cocktail reception before dinner when Joe Amato Sr. of the Amato Agency emceed the 50/50 drawing and prize raffle sponsored by industry vendors. In his pre-dinner speech, AASP/NJ President Jeff McDowell noted, “Even though this event is a tribute to Lou, it is also a time to recognize and remember those in the industry that we have recently lost. I want to thank everyone who took the time from a work day to come out here and honor all of their memories.”
Safelite AutoGlass to Open New Location in Maine
Glassbytes.com is reporting that Safelite AutoGlass is opening a new location in Portland, Maine, to serve Maine and New Hampshire. Customers in these areas were previously served through Safelite’s mobile technicians and Bostonbased warehouse. The new 27,000square-foot facility is located at 421 Warren Ave. in Portland. Larry Gallagher was hired to serve as the new district manager earlier this year. Gallagher comes to Safelite with a background of 22 years in retail. His team will be comprised of nearly 40 associates, including existing technicians in the market as well as warehouse and customer service personnel that will fill the company's new positions. “We look forward to continuing to serve the local community for all their auto glass repair and replacement needs,” Gallagher said.
www.autobodynews.com C
16 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 17
Shop Owner Gets Jail for $85K Insurance Scam in Darby, PA garage at 850 Summit Street, across the street from the Darby Borough Police Department, and drive the vehicle into a pole or beam to cause further The former owner of a Darby Borough auto body shop was sentenced to damage. He also used a forklift to 23 months of intermediate punishment damage the vehicles, according to the Thursday, September 1 after pleading affidavit. The additional damage would guilty to insurance fraud and receivtake place before an insurance adjusing stolen property. Franklin Thomas Wilson, who tor saw the vehicle. Once the insurowned Transformer Collision Special- ance claim had been paid, Wilson ist at 1006 Summit St., was among 11 would fix the customer’s vehicle for a people arrested in March 2015 for an much lower price and pocket the balalleged $85,000 insurance fraud ance of the claim, the affidavit states. Wilson also paid kickbacks scheme that included damagto third parties that referred ing vehicles with a forklift to customers to his business falsely inflate claims. with a portion of the insurWilson would meet with ance payout. One police incustomers seeking body work formant claimed to have on their vehicles and provide made approximately $10,000 them with an estimate, acby personally referring 30 to cording to a 30-page criminal 40 customers to Wilson and complaint and affidavit of Franklin Thomas said the scam had been runprobable cause written by Wilson ning for years. County Detective Lawrence Wilson will serve the first five Patterson. After the customer departed, Wil- months of his sentence at the county son, 45, of the 100 block of Betsy prison in Concord, followed by six Rawls Drive in Wilmington, DE, months of electronic home monitorwould take the vehicle to an empty ing, under the plea agreement worked by Alex Rose, Delware County Daily Times
18 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
out by Deputy District Attorney George Dawson and defense counsel Laura Lazuski. Judge Richard M. Cappelli also ordered Wilson to pay $68,476.18 in restitution, provide a DNA sample to state police and serve three years of consecutive probation. Wilson did not comment Thursday, but Lazuski noted he has already paid $15,000 toward restitution. Two others charged in the scheme, Ashley Wilson, Franklin Wilson’s daughter, and her mother, Letisha Johnson, 44, of Philadelphia, entered into the Accelerated Rehabilitative Disposition program Thursday and received 12 months of probation. Ashley Wilson, 27, of Darby, reported damage to Progressive on the right side of her 2010 Nissan Maxima in March 2014, according to the complaint. Analysis of the vehicle indicated it could not have been damaged in the way reported and Wilson was also seen delivering the undamaged vehicle to Transformers. While the car was parked inside 850 Summit, the Nissan’s front and
rear doors passenger doors suffered substantial damage, according to the affidavit. Detectives found Progressive had paid Ashley Wilson more than $5,000 in repair and rental fees. Johnson, represented by defense attorney Kevin O’Neill, was accused of attempting to claim $12,000 worth of damage to her 2003 Nissan Turano from vandalism. She withdrew the claim following an interview from an adjustor. Johnson was ordered to perform 40 hours of community service and pay $500 towards ARD Thursday, with the balance due within 90 days. Ashley Wilson was also ordered to pay $500 toward the program, perform 32 hours of community service and pay $5,340.55 in restitution. Dennis Coin, representing Ashley Wilson, said his client has already paid $3,000. Three other defendants named in the complaint—Tywana Neal, 37, of King of Prussia and Adiaha Bell, 34, and Jamar Grant, 29, both of Philadelphia—have also entered ARD. A bench warrant is pending for Vernon White, 34, of the 1500 block See 85K Insurance Scam, Page 60
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 19
20 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Continued from Cover
MSO Symposium
“There’s still a lot of independents out there,” he said. “In my opinion, there’s still a lot of opportunity for the shops that not part of this consolidation group, or even part of a multi-location operator group.”
ther,” not making any multiple location acquisitions in the first half of 2016, after being very aggressive in the two prior years. Romans said he didn’t know Future MSO growth gauged what that decline means, other than that But Romans looked forward as well as things have clearly slowed down. back in terms of consolidation, offering In terms of combined total revtwo projections for what he sees the inenues, the Big 4 have grown from dustry looking like in terms of MSOs in $500,000 million in 2006 to 2020. $3.7 billion last year. Multi-loIn terms of the “Big 4,” Rocation franchise networks mans forecasts they will grow (such as CARSTAR and Fix from their current annual sales Auto USA) have seen much $3.7 billion and 10.9 percent more modest sales growth in market share to about $6.5 bilthat time, going from $1.1 billion and a 17 percent market lion in 2006 to $1.3 billion last Jonas Gunnarsson share by 2020. In a second, year. When other MSOs with annual “more aggressive forecast,” he said sales of $10 million or more are also based on “some claims that a couple of added into the mix, the MSO market as consolidators have made recently about a whole has almost tripled its sales from where they might be,” the Big 4 may hit $3.8 billion in 2006 to $10.2 billion last $7.5 billion or 19.7 percent market share year. That means that large MSOs capby 2020. tured about 30 percent of the industry’s When the franchise networks are total revenue last year. That said, Roadded in, along with other MSO with mans noted that the Big 4’s 1,400 shop annual sales of more than $10 million, locations is still a small percentage of Romans predicts this segment of the the total number of shops, which he market will have 2020 sales totaling bepegged at nearly 33,000. tween $15 billion and $18 billion for as
much as 47 percent market share. sion on collision industry business modRomans said whether that figure els around the world. Panelists were sounds startling or not “depends on asked, for example, for countries where your perspective.” they see insurers and collision repairers “For 4.5 years from now, I don’t working particularly well together. think that’s a big deal,” Romans said. “I Jonas Gunnarsson, a vice president of think it will start to be a big deal when Car-o-Liner, said his home country of those segments start to represent 60 perSweden would fit that description, but cent or 65 percent of the market. That also the Middle East country of Dubai. kind of structural change will be even “If you have a collision in Dubai, you greater than we experience today.” come to a place where you have sort of In the even shorter-term, a supermarket: the police are Romans said maybe the industhere, insurers are there, worktry will be talking about the shops are there, inspections “Big 5” rather than the “Big 4.” are there, rentals are there,” “I suspect maybe we’ll Gunnarsson said. “A one-stop see maybe a fifth consolidator shop. It’s working very well.” somewhere in the next 12-18 As insurance increasingly Dan Hogg months that could come into becomes a global enterprise, this market and really mix it up,” Rothe panel was asked how they see the mans said. “It could be an international collision repair industry responding. entity, or it could be another aggressive Dan Hogg, the chief financial of[U.S.] entity funded by private equity or ficer for Fix Auto World, said he sees some other financial channel.” increasing interest among insurers for expanded partnerships. “Conversations we’re having with International perspectives shared This year’s MSO Symposium was some of the European insurers indicate open not just to those from MSOs but they are interested in us expanding into also larger single-location shops (those other countries so they can take advanwith annual sales in excess of $3 miltage of the benefits of the network in lion) as well. those countries where they don’t feel See MSO Symposium, Page 39 The event included a panel discus-
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 21
Smithtown, NY, Body Shop Donates Car to Suffolk Family in Need by Priscila Korb, Patch.com
One local family recently got a gift they were not expecting: a free van. A Smithtown auto body shop recently received a donated van that they fixed up and gave to a local family in need. The van, which was donated to Bi-County Auto, located on E. Main Street, had low mileage and a wheelchair lift, but still needed some work. The auto shop decided to fix it up and give it to a family who needed an adaptive van for their 11-year-old daughter, Brianna Sheltra. Brianna was diagnosed with Dandy Walker Syndrome, a genetic disorder that affects brain function. She has a feeding tube and a shunt in her brain. She is non-verbal, but responds to her parents and sisters. The Sheltra’s or their nurse have always had to lift Brianna from her wheelchair and into a special needs car seat in their car. As an infant, this was not a problem. However, now that Brianna has reached the height and weight of a typical 11-year-old, it has become in-
creasingly difficult and has caused both her mother and nurses to experience severe back pain and related issues. The family is part of Angela’s House, a Long Island-based nonprofit that assists medically fragile children by coordinating the home care services needed to support these children living at home. The body shop donated all of the labor and new parts to repair the van, including covering the cost of new tires. “The family was overcome with joy; they immediately tried the wheelchair lift and put Brianna inside,” Bob Policastro, executive director and founder of Angela’s House said. “A tremendous weight was lifted off of their shoulders. This was a beautiful gesture to a family who had only dreamed that they would someday have a vehicle to accommodate the extreme disability issues that Brianna has.” We thank Patch.com for reprint permission.
www.autobodynews.com
22 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
AMi Honors Class of 2016
The Automotive Management Institute (AMi) held its annual graduation ceremony on August 12 at the Sheraton Park Hotel in Anaheim, CA. The ceremony honored the Institute’s 22nd class of Accredited Automotive Managers (AAMs). The graduating class of 2016
Class of 2016 AAMs and AMAMs
included 23 automotive service and collision repair professionals who earned the Institute’s prestigious AAM designation by successfully completing AMi courses and accumulating a minimum of 120 credits. This year’s event also recognized 59 members of its first graduating class of Accredited Master Automotive Manager (AMAM) designation by successfully completing AMi courses and accumulating a minimum of 180 credits. The Automotive Management Institute collaborates with training providers across the industry, aligning training courses into comprehensive educational curricula which, when completed, results in professional designations and certificates. The education represented by these
programs have proven to make positive impacts on business KPI scores and overall profitability. AMI courses concentrate on seven core areas of business management education: financial management, sales & marketing, operational management, HR and personnel development, IT management, risk management and leadership. “In their pursuit of professionalism, these graduates have demonstrated dedication to improving their skills and knowledge,” said AMi chairman Sheri Hamilton. “I am honored to know many of this year’s graduates, and they have placed education as a priority to make a difference in their careers, workplace and industry. This year’s class of AAMs and AMAMs are empowered with knowledge to be the current and future leaders of the automotive service industry.” “It was an honor to recognize these two elite groups of professionals and add them to an impressive list of past AMi graduates,” said AMi president Jeff Peevy. “It is important to acknowledge the accomplishments represented by the AAM and now the new AMAM designations and its connection to improved business and personal performance. Learning truly is the only source of a sustainable competitive advantage, and this group is a great example of that.”
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 23
Hardwire’s NYPD Contract Helping Another County Business by Charlene Sharpe, The Dispatch
No one doubted that the large contract Hardwire LLC acquired with the NYPD would benefit the Pocomokebased company. What many may not have realized is that other Worcester County businesses are beginning to profit from Hardwire’s success. As Hardwire builds bulletproof doors for the NYPD, Snow Hill Auto Body is painting them. “We’re glad to be involved,” said John Fiscus, manager at Snow Hill Auto Body. “It’s keeping money on the shore and keeping people employed.” According to George Tunis, chairman and CEO of Hardwire, the company has a large contract with the NYPD to up-armor police cars, outfitting them with bulletproof doors. “This is the first mass application of bulletproof patrol car doors in the United States,” Tunis said. “We’re doing thousands of doors.” After being outfitted with armor, all of those doors are being sent to Snow Hill Auto Body to be painted. Tunis said he wanted to use a local company to do the work. “We love to keep business here in Worcester County,” he said. “There’s a
lot of great talent here.” He says that while the Eastern Shore is a bit remote, the location doesn’t hurt Hardwire because it is part of a specialized field.
As Hardwire finishes building the bulletproof doors to be used on New York City police vehicles, the crew at Snow Hill Auto Body paints them.
“Our company has a little further reach because we do some exotic stuff,” Tunis said. “That reach means we’re bringing in work from New York and other states that otherwise wouldn’t be here.” Snow Hill Auto Body and its 18member staff are now painting 100
Atlantic Cape Receives $2,500 for Scholarships from Rio Auto Body in NJ The Atlantic Cape Community College Foundation recently received a $2,500 donation from Lou Altobelli, owner of Rio Auto Body of Rio Grande. This was the fourth installment of a $12,500 pledge to Create
lantic Cape Foundation Golf Tournament and the Restaurant Gala. He serves as a trustee on the Atlantic Cape Community College Foundation and served as co-chair of the college’s 2014 and 2015 Scramble
Lou Altobeli, owner of Rio Auto Body presents The Atlantic Cape Community College with a check for $2,500
Opportunity—The Capital & Scholarship Campaign for Atlantic Cape. The Rio Auto Body Scholarship is presented annually to a second-year Cape May County resident with a minimum GPA of 3.0 who is a full-time business major with financial need. In past years, Altobelli and his company have supported the At-
“Fore” Scholarships Golf Tournament Committee. For more information about the Atlantic Cape Foundation and giving opportunities, contact Maria Kellett, senior director of resource development & community and alumni outreach, at mkellett@atlantic.edu, or visit http://www.atlantic.edu/about /foundation.htm.
24 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
doors a day. While the work itself was nothing new for the crew there, the volume was. “You’re doing so many at one time,” Fiscus said, adding that it was more the process that had taken some getting used to than the painting. Hardwire's BHe said Hardwire helped prepare the facility for the project by designing racks to hold the door panels. As Hardwire continues to outfit doors with the new armor, Snow Hill Auto Body will continue to paint them. Fiscus says he expects to hire more employees as the work continues. “This is just the beginning,” he said. “As their volume increases ours will. It’s great to be partnered with them. They’re an exceptional organization.” Tunis feels the same about Snow Hill Auto Body. “They’re doing a magnificent job,” he said. “As long as they can keep up with the demand, I want to keep every stitch of work there.” Merry Mears, Worcester County’s director of economic development, says she’s thrilled to see local companies working together. “This is what happens when an investment is made in economic de-
velopment,” Mears said. She said her department had spent time, resources and expertise working with Hardwire in recent years. “We have found an incredible community partner in the process,” she said. “Because of Hardwire’s success and their focus on their community, we are now seeing an infusion of capital being invested in other businesses here. Because of this, we all rise.” Hardwire, which was founded by Tunis in 2000, began focusing on armor protection for vehicles after Sept. 11, 2001. In recent years, as “active shooter” incidents in the United States have increased, key products have included bulletproof shields, clipboards and whiteboards. Following the Dallas sniper attack that killed several law enforcement officers, interest in Hardwire’s ballistic protection for police cars has grown. Aside from the boost in business that it has given Snow Hill Auto Body, Fiscus says it’s an effort his crew supports. “The guys are excited about being able to help protect police officers,” he said. We thank The Dispatch for reprint permission.
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Continued from Cover
Alt-OE Parts
[BAR requirements] is that parts are described in a manner the customer understands. So you need to find a way to explain it so the customer understands exactly what they’re getting. I would go so far as explaining: Are they getting the same warranty? Is it the same type of part? Is it a blemished part?” A shop owner at the meeting told
Ramos that at least some of the parts appear to be OEM, arriving in OEM packaging even if sold by a recycler or non-OEM parts vendor. In such instances, the shop owner asked, should they be listed on the estimate as OEM? “It’s hard for us to say exactly how to classify it,” Ramos responded. “You as a shop owner will have to decide what it is.” But another shop owner pointed out that several automakers, including Toyota and General Motors at a meeting held in conjunction with NACE,
have said they have no programs to sell OEM parts outside of their dealer network, and that only parts purchased through their dealers are “OEM.” “I think Toyota and GM just did you a favor, by telling you [that ‘altOE’ or ‘opt-OE’] is not OEM,” Ramos told shops at the presentation. Representatives of Honda and Mercedes-Benz earlier this year similarly said they have no involvement in the “alt-OE” or opt-OE” parts category. Ramos said he doesn’t anticipate
Regulator suggests shops take themselves out of the middle
The agency that licenses collision repair shops in California says shops too often put themselves in the middle of discussions that consumers themselves should be having with their insurance company. Representative of the California Bureau of Automotive Repair at NACE in August were asked about insurers refusing to pay for pre- or post-repair scans that some automakers have called necessary in recently-released position statements. “You as a shop owner need to take a step back and tell the consumer, ‘Your insurance company is not paying for this,’” Jaime Ramos of the BAR’s field operations and enforcement division suggested. “Tell them: ‘The manufacturer is saying we have to do it. In order to do it right, I need to do that. The insurance company is telling me no. How would you like for me to proceed?’”
26 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Ramos said he can appreciate shops trying to go to bat for their customers with insurance companies. “But I guarantee you they have a little bit more leverage with their own insurance company that you do,” he said. “And if they don’t, then it’s their option. They can pay for it. Or you can document on the invoice that you requested to do it, the insurance did not want to pay for it, the consumer called the insurance company, and the consumer doesn’t want to pay for it either. Then if there’s any trouble codes in there, it’s going to be all on the consumer or the insurance company.” Ramos said he couldn’t speak to the necessity of the scans. “But certainly if a manufacturer found that there’s a need, that when you’re repairing a vehicle you should be doing that, I think that carries quite a bit of weight,” he said.
the BAR will add those categories to its list of accepted parts terminology, given the ambiguity even within the industry about what such parts are. But neither, he said, is the BAR likely to put something in writing showing that those terms are not a recognized part category. Ramos said it’s just easier to list the acceptable terminology than to try to list all the potential unaccepted terms. Jack Molodanof, a lobbyist who represents the California Autobody Association (CAA), said the state’s insurance commissioner’s office is looking into the issue as well, but has not yet taken a position. “If they do take a position similar to BAR, they are going to tell insurance companies to stop it,” in terms of pushing for the use of alt-OE or opt-OE parts, Molodanof said. “But they’re not there yet.” In the meantime, he cautioned shops, stay in compliance with BAR regulations. “If the insurance company is telling you to do something, and you’re doing it and it violates BAR, the insurance companies are not going to be there for you, because the BAR doesn’t care about the insurers,” he said. “They
care about you, and it’s your license that is at risk.” A number of industry leaders have said that if there’s pressure from shops and regulators in California on parts suppliers and the information providers to better define “alt-OE” or opt-OE” parts in that state, that may lead to some changes nationwide.
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@Spirit One.com.
CCC offers help for California shops’ compliance with regs
California collision shops face some unique challenges in complying with Bureau of Automotive Repair (BAR) regulations, but one information provider is working to help shops meet those challenges. The California Autobody Association (CAA) worked with CCC Information Services to help give shops access within the system to some key BAR regulations, along with tips on how to use the system to meet those requirements. Shops, for example, need customer authorization not only at the start of repairs but also for any supplements as well. Within the ‘help’ application of CCC, shops now can pull up that requirement to review it. Adjacent to that
information is how shops can enter custom disclaimer information that will print on their estimate for the customer to sign. For a verbal authorization, the CCC help app explains, users can create permanent notes on every file, indicating when the customer was called, what phone number was used, and what was discussed. Those notes are date-andtime-stamped with the estimator’s name. CCC’s Mark Fincher said the BAR regulatory help is now in the CCC help app nationwide. CAA’s Don Feeley said CCC has agreed to share the information with the other two major estimating system providers to see if they wish to incorporate similar help in their systems.
Survey: Top Services Wanted By Dealership Service Center Customers
Record360, an industry-leading provider of asset condition software, has released the official results of its first-ever survey of dealership service center customers. The survey’s findings point to an increased need for dealership service centers to improve their service transparency and provide greater visibility into vehicle condition to retain repeat customers. The nationwide survey, fielded by Pollfish, was conducted on June 5, 2016 on behalf of Record360. The survey was conducted online among 500 adults who had taken their vehicle into a dealership service center for maintenance within the past twelve months. The survey probed on the factors that influence visiting and not visiting a service center, as well as what general and tech-related services customers would want to see from service centers. Key findings included: ● The top reason for not choosing a dealership’s service center for maintenance is uncertainty over the cost of the service itself.
to a service center if they thought an item went missing from their car during their last visit.
● More than half of customers want a free car was as part of their visit, and 41% want an email record of their vehicle’s condition.
As dealerships fight to drive their CSI scores higher, the survey’s findings point to ways dealerships can offer stronger customer service. According to Shane Skinner, Record360’s Co-Founder & CEO, “It’s exciting to see that customers are asking for services that are well within any dealership’s ability to offer. Whether it’s stronger transparency around cost and the time it takes to complete maintenance or around visualizing vehicle condition, customers are asking for things that dealerships can implement right now, or with some minor technology upgrades.”
● 80% of customers would not return
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 27
Houston in Top 3 List of Cities with Most Auto Insurance Fraud, Others are Los Angeles and New York by Amy Davis, KPRC-TV, Reporter/Consumer
L.A., New York and Houston—you might think we’re hanging with the cool crowd when you hear we all made the top three in a recent study, until you hear it was for cities with the most auto insurance fraud. “We knew that this was a problem in Houston,” Fred Lohman, with the National Insurance Crime Bureau, said. Lohman said the fraud in our area begins at the scene of car accidents with the tow. “The goal is to get the car to the shop,” he said. Not just any body shop. KPRC Channel 2 News found tow truck drivers steering accident victims’ vehicles to body shops of the wrecker driver’s choice, not the customer’s. “Did you tell the tow truck driver where you wanted him to take your car?” Davis asked Doris Babineau, who was involved in a car accident. “No, he volunteered,” she answered, talking about the tow truck driver who drove up on the scene. “’I’m gonna take it to a good place, and we’ll be sure (to) guarantee that your car will be fixed,’” she said he told her.
KPRC 2 News discovered that the tow truck driver who took Babineaux’s 2014 Nissan Altima to Collision King on West Tidwell was paid handsomely to do so. We obtained an incentive sheet the body shop and storage lot owner passed around to Houston wrecker drivers, advertising that he’ll pay them $600 for every car 2013 and newer they tow in. They’ll get another $400 if the body shop makes repairs to the vehicle, and a $100 bonus if the wrecker driver brings the customer along to sign for the repairs. That’s a $1,100 incentive for tow drivers to bring cars to his shop instead of where the car owner wants them to take it. “Once that happens, and it gets to the body shop or the storage facility, then all the fees start mounting,” Lohman told Davis. And they did. The day after Babineaux’s accident, she decided to take her Altima to a Nissan dealership for repairs instead. Just to get her car from Collision King, the body shop demanded $1,619.31.
28 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
“You think $1,600 for doing no work on this vehicle and having it less than two days is fair?” Davis asked Collision King owner Allen Suleiman. “In a sense, yes,” he replied. “In what sense is it fair for me to pay $1,600 when you did nothing to a vehicle?” Davis countered. “Well, remember you got about $600 worth of storage fees, because the minute it comes here, you got a tow bill,” he said. But there are no towing charges listed on the bill. Instead, there is a $245 pay out fee, a $250 admin fee, a $240 preservation fee, a $250 transfer fee and a $500 steering fee. Davis asked Suleiman what the steering fee is. “That’s when an insurance company – when a customer wants to do business with us and the insurance company forces them to take it to their shop. That’s what the steering fee is,” he said. Did you get that? The steering fee is charged to penalize the insurance company when the customer takes their vehicle somewhere else.
“It’s the consumer that gets hurt on this stuff,” Lohman said. “They’re the ones really paying the price.” Even if you’ve never been in an accident, you’re paying for it in your premiums. None of the fees, not even the bounty paid to wrecker drivers for cars, are illegal. It’s why Houston police and the insurance industry are asking Houston city councilmembers to regulate body shops by setting limits on fees and requiring the businesses to give customers a written estimate before any work on a vehicle is even started. “City ordinances can certainly address the problems,” Lohman said. “That’s what local government should be doing in protecting its constituents.” HPD tried to get council to pass similar changes five years ago with no luck. They said they’re hoping this time around they can get enough support to push it through.
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www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 29
Auto Glass TV Informs and Entertains Technicians Every day, auto glass technicians visit their local auto glass warehouse for the items required to perform their jobs. As they wait for their glass and supplies to be pulled, a casual wait time will now potentially expose those technicians to information, products and education courtesy of Auto Glass TV.
Auto Glass TV was created in hopes of keeping the auto glass industry aware of new and valuable information. According to the presenters, Auto Glass TV is a state-ofthe-art broadcast network that is available at auto glass warehouses. AGTV™ displays current area weather, local traffic reports, auto glass
industry news, events, education, product demonstrations and original AGTV™ programming. Equalizer® designed AGTV™ around the accessibility to its Equalizer® Store locations to broadcast content directly to the auto glass technician. AGTV™ displays information that plays con-tinually, all day and every day. “Auto Glass TV features the best possible content to give technicians a specialized insight into the complex world of auto glass removal, replacement and repair,” a statement from the company read. AGTV™ programs and ads feature a unique QR Code on the video that technicians can scan during the broadcast using their smartphones in order to view the video in its entirety at their leisure. For more information, visit www .autoglasstv.com.
The Automotive Management Institute (AMi) has aligned industry training into comprehensive educational curriculum that, once completed, provides certificates and professional designations for collision repair customer service representatives, office managers, managers and master-level general managers.
■ KPI Basics - Length: 30 mins / AMi Credit Hour: 1 ■ Job Costing - Length: 30 mins / AMi Credit Hour: 1 ■ Budgeting Basics - Length: 30 mins / AMi Credit Hour: 1 ■ Bookkeeping Basics - Length: 30 mins / AMi Credit Hour: 1
Mark Claypool Series Mike Anderson Series ■ Email and Internet Security ■ Improving CSI - On the Length: 30 mins AMi Phone - Length: 30 mins / Credit Hour: 1 AMi Credit Hour: 1 ■ Website and SEO Basics ■ Improving CSI - During - Length: 45 mins / AMi the Sale - Length: 65 mins Credit Hour: 1 / AMi Credit Hour: 2 ■ Social Media Manage■ Improving CSI - Check in ment - Length: 35 mins / and During Repair AMi Credit Hour: 1 Length: 30 mins / AMi Mark Claypool Credit Hour: 1 Frank LaViola Course ■ Understanding Financial State- ■ M.A.D. About Generating Referrals ments - Length: 30 mins / AMi Credit - Length: 30 mins / AMi Credit Hour: 1 Hour: 1 ■ You Don’t Know What You Don’t Frank Terlep Course Know - Length: 30 mins / AMi Credit ■ Three Steps to Successful Marketing Hour: 1 - Length: 45 mins / AMi Credit Hour: 1 ■ Scheduling Best Practices - Length: 45 mins / AMi Credit Hour: 1 For more information, visit http://www ■ Profitability - Length: 30 mins / AMi .amionline.org. Credit Hour: 1 ■ Parts Management - Length: 45 mins / AMi Credit Hour: 1
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Driven Brands’ Jose R. Costa Earns the Gold Award for Executive of the Year in the 8th Annual 2016 Golden Bridge Awards®
Driven Brands’ group president Jose R. Costa has earned the prestigious Gold Award for Executive of the Year in the Golden Bridge Awards®. Costa was nominated in the Automotive, Transportation, Storage and Logistics category, where he was recognized for contributing to his company’s success in nearly doubling the size of its business in just three years and playing a key role in shaping its strategy for vertical expansion and growth through acquisition. The coveted annual Golden Bridge Awards program encompasses the world’s best in organizational performance, innovations, products and services, executives and management teams, women in business, innovations, best deployments, product management, public relations, marketing, and customer satisfaction programs from every major industry in the world. Organizations from every corner of the globe are eligible to submit nominations, including public and private, for-
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profit and non-profit, largest to smallest and new start-ups. Winners will be honored in San Francisco on Monday, September 12, 2016 during the annual Red Carpet Golden Bridge Awards Ceremony. This is the second time in less than a year that Costa has been recognized for his leadership. In May, Costa was awarded the ExJose Costa ecutive of the Year Bronze Stevie® Award in the Automotive and Transport Equipment Industry category in The 14th Annual American Business Awards. The Stevie Awards recognize outstanding performance in the workplace world- wide. For more information, visit http:// www.drivenbrands.com.
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www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 31
Continued from Cover
Overwhelming Flood
hicles into the lot,” he said. Automotive News has reported that more than 100,000 insured vehicles were flooded in the August storm, more than 100,000 people have filed for flood aid, and more than 60,000 homes were damaged or destroyed. Vehicle flooding was most destructive to electrical systems, said Thomas Huffman, owner of Any Body Towing in Lafayette. He said other damages included water in motors and in the exhaust and intake systems. “They are total losses,” he said of most of those vehicles. Huffman said wreckers continued to tow vehicles recently that were previously unreachable because of flooding that persisted in some neighborhoods. He said he was reluctant to send his own trucks into high water because he did not want them damaged. Giles said the “vast majority” of vehicles that were caught in the flood have been totaled. He said Giles Automotive gave free inspections for flood damage; if vehicles could be salvaged, he said, the company is willing
to help restore the vehicle. Roszell Gadson, a media specialist for State Farm Insurance, said his company has processed some 19,000 flooded vehicles in Louisiana, most of them total losses. Every vehicle is dif-
Credit: Scott Clause/The Advertiser
ferent, but electronic damage can propel the cost of repairing a vehicle beyond its actual value. That’s when insurers settle, he said. According to Gadson, if a vehicle can be repaired, it may go to a certified mechanic for work. If it can’t be repaired, the insurer will likely send it to a salvage vendor, perhaps to be broken down for parts. Oftentimes the vehicles are sold for scrap metal. Damaged vehicles have caused some concerns, Better Business Bureau of Acadiana President Sharane Gott said. In a column published Tuesday,
September 6, she cautioned consumers to beware of flood-damaged vehicles. Gott offered these tips for avoiding the purchase of a flood-damaged vehicle: ♦ Check the title to make sure the car is not marked “salvage,” which would indicate it came from a flood-affected state. ♦ Check gauges, lights, wipers, turn signals, radio, heater and the air-conditioner several times. ♦ Check the trunk, glove box and under carpeting for musty smells that indicate flooding. ♦ Get a pre-purchase inspection from a trusted mechanic.
Giles said reputable dealers would not resell a flooded vehicle. But he cau-
tioned, “less-than-honest people will buy from a salvage yard,” and repair branded vehicles for resale. Louisiana cars have been sent out of state, where they may get new titles that obscure the fact that they have been flooded, he said. His business has to be careful that vehicles that customers offer as tradeins have not sustained previous flood damage, Giles stated. Some customers are unaware that their comprehensive vehicle insurance includes flood coverage, unlike private homes that require additional coverage for floods. “If you have comprehensive insurance, flood (insurance) is not an add-on,” he said. We thank The Daily Advertiser for reprint permission.
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Announces:
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For more information about Sherwin-Williams Automotive Finishes courses, visit its training section at: www.sherwin-automotive.com/refinish/training-support or call 1-800-SWULTRA (1-800-798-5872). 32 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Number of Days
3 3 3 3
Continued from Cover
Honda Certifies 700 Shops
long, but we kept telling them this is the future. This is not a fad like the hula hoop, it’s going to be the way of doing things from now on. Every car manufacturer in this country has some form of a certification program, so this is obviously the direction where the wind is blowing right now.” Seven hundred shops saw the light eventually, but it took a little stiff competition to get a few latecomers into the fold, Ledoux explained. “Some shops looked down the street and saw their competitors with their ProFirst plaques and they decided that they needed to do the same. They didn’t want to be left
out, so they did what they had to do in order to be in the program.” To qualify for the Honda ProFirst program, shops have to meet certain knowledge and skill requirements and maintain an I-CAR Gold status. They have to use the proper equipment and their people have to be highly trained. Technicians must complete Honda/ Acura specific I-CAR classes and shops also have to meet a list of requirements and pass an independent party inspection to get in, according to the American Honda ProFirst website. With a plethora of shops that are currently working toward meeting the program’s requirements, what can Ledoux tell them? “If you really want to be in the program, we are willing to help you in any way we can. The one
part of the process seems to slow down when it comes to the training component. They need to be I-CAR Gold or a VeriFacts VQ or Medallion shop, and that is something that can’t happen overnight. They can get the welder and are willing to do everything else, but completing the right training or becoming a VQ or Medallion shop seems to be an obstacle for some shops. So if you ever have any questions, just contact us and we will work with you, because we want good shops in the program if they qualify.” To support their ProFirst shops all over the country, American Honda has 10 reps visiting shops on a regular basis. “We have some of the best people in the industry out there in the field, and many of them are former
parts directors or long-term American Honda employees. They are always out there looking for top shops in each region to be in the program, but we always want to do a careful inspection of the facility before we start the conversation. We are looking for the best of the best.” Although American Honda is shooting for 1,200 members (which is roughly 4% of all the body shops in the U.S.) there are also geographic limitations and some regions that are already full. “At the beginning of this program, we devised a system to make sure that there aren’t a bunch of ProFirst shops in one region, and now some of the smaller markets are full. We don’t want to be like Starbucks, with a location on every corner. Unfortunately, some shops came to the party a little late, so they’re now on a waiting list.” Once a shop successfully does the work to become a ProFirst shop, the next step is leveraging the strength of the certification through internal marketing and other efforts, Ledoux said. “We recently had Michael Anderson from Collision Advice talking to some of our ProFirst shops and he told them basically that acquiring the certification is just the beginning. Putting that plaque in a prominent spot in your shop, mentioning the certification in your ads, etc.—these are all things you should do to get real value out of your role in the program.” Ultimately, any certification program, including American Honda’s ProFirst, does not bring you cars to repair unless you do your part, too. “Some members will call us and ask, ‘How many cars did you bring us last year?’ and we tell them, ‘This is not a DRP.’ We do get referrals for our shops, and consumers find them on our website, but I tell people that certifications set the table and then you need to do the rest. The insurance companies may drive cars to these shops, but it is up to the shop to retain these customers and get referrals from these customers by leveraging their status as a ProFirst shop.”
Your leading source for NORTHEASTERN Collision Repair News! northeastern.autobodynews.com
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 33
NHTSA’s Proposed Rule on Recall Notification
The National Highway Transportation Safety Administration (NHTSA), released a proposed rule that would require manufacturers to notify consumers of outstanding recalls by electronic means in addition to first-class mail. By not specifying the exact method of notification, the rule allows for flexibility in the method of delivery. According to NHTSA, “electronic means’’ may include “electronic mail, text messages, radio or television notifications, vehicle infotainment console messages, over the-air alerts, social media or targeted online campaigns, phone calls, including automated phone calls, or other real time means.’’ The proposal would also allow NHTSA to require manufacturers to send additional notifications if the agency determines that an inadequate number of vehicles have been returned for remedy. To see the full text of the proposed rule, click here. NHTSA is currently requesting public comment on the proposed rule as a whole through Oct. 31, 2016. For example, comments could include the best “electronic means” to receive recall notices.
GM Uses Humor to Educate Consumers About Original Collision Parts General Motors is hoping that a video starring an ill-chosen pet Kinkajou will convince consumers to choose only original collision parts for their Chevrolet, Buick, GMC and Cadillac vehicles. “The Replacements,” introduced recently at the 2016 NACE | CARS expo, opens with an exasperated man who replaces his lost dog with a Kinkajou (a South American mammal) only to find that his new pet is destructive, unlovable and not what he expected. It contrasts his poor decision with the importance of selecting only Genuine GM Parts for crash-related repairs. “It’s a funny video about a very serious issue – the potential risk to our customers if untested sheet metal and other collision parts are installed on their vehicles,” said John Eck, collision manager, wholesale dealer channel at GM Customer Care and Aftersales. “Our customers should always leave the body shop confident that their vehicle has been repaired to pre-crash conditions using the right procedures, parts, processes and quality checks.” “The Replacements” can be viewed at www.genuinegmparts.com/collision -repair-faqs. “Our customers should know that aftermarket parts do not undergo the
same testing that OEM parts – such as GM Original Equipment components – must pass,” said Eck. “Aftermarket parts are not tested in the vehicle while integrated and active with all vehicle systems.” In their new and updated collision repair position statements, GM: ● Recommends using new, Genuine
GM Parts for repairs involving structural components and parts – and not salvage parts. Salvage parts from damaged vehicles may not provide the same crashworthiness, repairability and corrosion protection.
● Warns against “clipping,” the practice of cutting and sectioning two vehicles to make a collision repair. Clipping voids the GM New Vehicle Limited Warranty for each part involved in the
“clip,” and can compromise the vehicle’s structural integrity.
● Reminds consumers and facilities that imitation and counterfeit parts are not covered by the GM factory transferable warranty as well as adjoining parts and systems that fail because imitation parts were used.
GM also has updated its position statements on refinishing aluminum wheels, improper use of floor mats and wheel alignment specifications. In addition, 2017 collision repair manuals have been added for most GM brands and models. Consumers and collision repair professionals can find and download the updated position statements at: http://www.genuinegmparts.com/forprofessionals/position-statements. No password is required.
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OR Shop Owner is an Unlikely Advocate For Portland’s Springwater Homeless “The drugs. What people have to go through to survive,” he said. Spinnett didn’t want to give peoSteve Spinnett is a talkative guy in ple money, but he found other ways to his 60s. Once a conservative small- try to make life easier for the hometown mayor in Damascus, Oregon, less people he met. He let them come he has owned an auto body shop in to his shop to use the hose, Britton Portland for 40 years. The shop is said. right next to the Springwater Corri“...Letting us get water any time dor trail on 92nd Avenue, and Spin- of the day or night, and electricity, so nett goes walking on the path almost we can charge our electronics and stay every day. in touch with our family, friends and Homeless people’s tents have loved ones,” Britton said. crept closer and closer to his business. It didn’t stop there. He’s tried to At first, he hardly noticed them. He get people into rehab. He’s stepped into said he’s the kind of guy who’s walked the middle of fights. Like the night by panhandlers and frowned. when Chelsea Dietz, a young homeless woman, got into a terrible argument with her boyfriend, who then slit his wrists. “Steve heard me scream, and he ran up. Offered to help. He called 911 right away,” said Dietz. Her boyfriend got to a hospital. After that, Spinnett came to check on the couple every day. Dietz is from a small town in eastern Montana. She Steve Spinnett talks with Otis “Diamond” Britton, a homeless started taking OxyConman who lives on the Springwater Corridor Trail. Spinnett and Britton have become friends tin when she was just 12 or 13. Now, she’s “I’m thinking, ‘Dude, get a job,’” addicted to heroin. Spinnett said. But then, this summer, “He made me feel like there is his perspective shifted. still hope for our lives to change and “I changed. I changed in one week. turn around, and that there was people I made friends,” he said. that still cared,” she said. Spinnett was working late one When Portland Mayor Charlie night and he saw a homeless African- Hales announced he was clearing the American man sitting in a chair across camps on the Springwater Corridor, the street watching his shop. Spinnett was one of the people who “So I just went over and talked to asked him to delay the sweep a month him; very friendly guy, big guy. About in order to give people on the trail 6’7. And he says, ‘I’m watching your more time to find a place. property. That’s my job. To watch Spinnett has taken some heat for your business,’” Spinnett said. The his activism from neighbors who guy’s name is Otis “Diamond” Brit- point out that while his business is on ton. He’s lived on the Springwater the trail, he goes home to the suburbs. Trail for five years. Spinnett and Brit“They say, ‘Well, you live in an ton became friends. upper middle class place in Damas“Steve is a righteous human cus; you don’t have to live here,’” he being,” Britton said. said. Dozens, maybe even a few hunSpinnett brushes that aside and dred, homeless people are living in says he has deep roots in the neightents on the trail between 82nd and borhood. The mayor’s office says it 92nd Avenue. Britton knows most of has helped more than 60 people get them. He started introducing them to into homes or motels or shelters in adSpinnett — and what Spinnett saw vance of the sweep. broke his heart. But now, their time has run out: by Amelia Templeton, Oregon Public Broadcasting
36 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Portland Police and private security officers planned to move hundreds of homeless campers off the Springwater Corridor Thursday, September 1. Up and down the trail, people are packing their belongings. A new shelter nearby has saved 12 beds for homeless people from the Springwater Corridor and the neighborhood. But some campers say they want nothing to do with it. “I don’t want to be inside no more. I’d rather be outside,” Britton said. Spinnett is helping him move his stuff to a new campsite. A few tents away, Chelsea Dietz is also trying to pack. She’s got a shopping cart filled with clothes and shoes. “I don’t like being homeless. I hate it. I hate having to pick up and start over. This lifestyle is not for me,” she said. Dietz trails off. She still isn’t sure where she’s going to go. But one of Spinnett’s church friends offered to drive her back to Montana, where she has a mother, father, and a sister. We thank Oregon Public Broadcasting for reprint permission.
CAPA Announces New Certification Standard for AC Condensers
The Certified Automotive Parts Association (CAPA) has announced the CAPA 602 Standard for the Certification of Aftermarket Air Conditioning Condensers; which includes performance testing requirements for leak resistance, burst resistance and heat exchange as well as fit. “Manufacturers who choose to certify their parts to CAPA’s Standards have a way to clearly demonstrate the quality of their products to the repair industry,” stated Deborah Klouser, CAPA director of operations. “The CAPA 602 AC Condenser Standard joins the CAPA 601 Radiator Standard as part of CAPA’s Cooling Parts Standards, which will also include a standard for cooling fans.” In addition to AC condensers and radiators, CAPA also certifies part types including fenders, hoods, grilles, bumper covers, headlamps, taillamps, fog lamps, front and rear bumpers, reinforcement bars and energy absorbers. Parts that meet CAPA certification requirements are authorized to display the CAPA Quality Seal and are identified on CAPA’s Certified Parts Listing at www.capa certified.org.
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www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 37
Shop Showcase KY Shop Pulls Its Weight for Local Special Olympics with Ed Attanasio
Randy’s Body Shop in Paducah, KY, has been in existence since 1982, when Randy Wiersma opened his doors with just five people, including two coop students from a local trade school. Randy’s wife, Dianne, ran the front of-
The annual Kentucky’s Big Brown Truck Pull in Paducah, KY gets sponsors from all over state and Randy’s Body Shop has been involved since its inception eight years ago. Credit: VUE Magazine
fice, and Randy jokes that his two young sons, Brad and Kyle, were also there as “part-time helpers,” with their principal roles being to interrupt pro-
duction. Well, those two annoying little teenagers have been running the show at Randy’s Body Shop since 2008, repairing 80 cars monthly with a crew of 20 people. Brad is the vice president/GM and Kyle runs the backend. Brad’s wife, Vanessa, manages the front office, and hopefully one of Brad’s two sons, Cody and Clay, will eventually step up to make this a third-generation business. Randy’s Body Shop is proud to be serving the people of Paducah, and that’s one reason why they have never forgotten their connection to this small town of 25,000 people. If there is a local charity that needs some help and assistance, the Wiersma family is willing to help, because they really care about fulfilling their civic obligations to the community. Every year, Randy’s Body Shop works with the Special Olympics as part of Kentucky’s Big Brown Truck
38 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Pull, held every summer on Paducah’s Riverfront. This event has raised more than $300,000 since its inception eight years ago. The shop’s participation in the event is in honor of Kyle and Brad’s brother David, 32, who is a
for individuals in Kentucky with special needs. People from the surrounding areas come out for the Big Brown Truck Pull annually, where they watch teams from the community as they pull a large UPS truck 12 feet. “Whoever can pull it the fastest wins, and they always get a big crowd for the event,” Brad Wiersma said. “They have all kinds of teams competing, including a youth category, where they pull a UPS van instead of a truck.” With a brother who has been competing in the Special Olympics for many years, The money raised from the event goes to the local Special playing an integral role in the Olympics and several teams consisting of Special Olympians Big Brown Truck Pull is satalways compete in the pull. Credit: VUE Magazine isfying for the family in sevSpecial Olympics athlete. Funds eral ways. “It’s a big deal, and every raised by the event are donated to the time I see these athletes out there, it is Special Olympics to provide year- definitely exciting,” Wiersman said. round physical fitness opportunities “Every year at the event, some Special
Olympians get up and talk about how their lives have been changed by the Special Olympics, and if that does not get you going, nothing will. We have seen how the Special Olympics have
Everyone comes out for the Big Brown Truck Pull as they watch teams from the community as they pull a large UPS truck 12 feet. Credit: VUE Magazine
enhanced David’s life, so we believe in it and love supporting it.” Brad Wiersma and his brother
Kyle have succeeded in a tough business because they listened to what their father said and did as they grew up in the shop. “My dad always told us to watch our costs and never spend more than you take in,” Brad said. “Always leave money available to invest into your business and remember that the focus should always be on the customer.” His advice must have worked, because success for the shop came quickly and gradual growth followed. The senior Wiersma moved his shop to an 11,000 square foot building in 1991, and today, the business has grown into a multimillion-dollar operation. As Randy’s Body Shop continues to grow, Brad and Kyle are continually looking to improve the business. The shop began offering routine clinics beginning with a Women’s Car Clinic in 2010, and now they sponsor Young Driver’s and Parents Clinics that are offered in conjunction with local insurance providers to educate young drivers about the importance of proper vehicle maintenance. In addition, Randy’s Body Shop gained its certification for child seat installations, which makes it the first and
only private organization in Paducah that is certified to offer car seat installations. Doing charity work helps to bring more business to the shop, but that is not why the Wiersma family supports the local Special Olympics via Kentucky’s Big Brown Truck Pull. “It does help, because people see us out there and they often mention it when they bring their vehicles in here to be repaired,” Wiersma said. “We all win by doing these types of things, and if we get a few more cars as a result--I won’t argue with it. But that’s not why we do it, and I think most people realize that it’s all coming from the heart!” Brad’s father opened his shop 34 years ago, more out of necessity than anything else. He kept destroying his own vehicles, so he figured that if he could fix them himself, he could save some serious cash. Dad must be proud of the fact that his sons have continued his legacy while giving back to organizations like the Special Olympics.
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MSO Symposium
they’re getting an adequate solution,” Hogg said. He noted that Fix Auto has expanded into four new countries in the last 18 months. “Our problem is we can’t expand fast enough,” he said. “It does take time to ramp up.” The Fix network hasn’t signed a global arrangements with any insurer, but Hogg said that is a long-term objective. The network in each country operates somewhat autonomously— each chooses its own management system, for example—but data from all such Fix shops is fed into “the Fix hub.” “So from an insurer perspective, we’ll be able to report on a consolidated [global] basis,” Hogg said. He also voiced a concern often discussed within the United States but that he sees in most markets in which Fix operates. “Our shops pursue OEM shop certification where it makes sense for their business, but I tend to think that the remuneration for obtaining those certifications is lagging behind the actual cost of doing so,” he said.
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 39
I-CAR and ASE Announce Collaborations that Align and Build on Training, Curriculum, and Certification I-CAR and ASE have been working for more than a year and a half in close collaboration on a set of high-impact joint initiatives for the benefit of technicians, students, schools and the industry. I-CAR CEO and president John Van Alstyne and ASE president and CEO Tim Zilke made a series of announcements at the 2016 NACE/ CARS
Conference and Expo in Anaheim, CA. The collaboration announcement was made at the Collision Industry Conference meeting at the Anaheim Marriott Convention Center. The organizations worked to collaborate to better recognize investments made in I-CAR training, related industry work experience, and ASE certification testing accomplishments. As a result, ASE will now recognize I-CAR ProLevel®2 or 3 Platinum™ status to satisfy the requirements for ASE collision repair and refinish work experience. I-CAR will now grant two credit
hours toward Platinum annual training requirements for technicians who hold an ASE Collision Repair certification. According to I-CAR, this collaboration will eliminate redundancy for technicians who seek to earn both designations, reduce the total training time and reduce the time required to earn those designations. A second important need for the organizations was to better collaborate in relation to curriculum and accreditation for career technical school collision repair programs. The collision repair industry defines training standards for these programs through NATEF, the National Automotive Technicians Education Foundation, which accredits those programs that meet the standards. In 2012, I-CAR launched the Professional Education Program Education Edition™ (PDP-EE) to align the collision repair training delivered by schools with the training I-CAR delivers to the rest of the industry. To alleviate any misperception within the industry that NATEF's Collision Repair and Refinish Standards task list and I-CAR’s PDP-EE were not aligned, or that schools that sought
NATEF accreditation could not use PDP-EE, the organizations worked to clarify the alignment and remove any related barriers. A review conducted by both organizations confirmed that I-CAR’s Professional Development Program – Education Edition curriculum aligns with NATEF’s Collision Repair and Refinishing Standards task list. The newly updated “Official ICAR CTE Curriculum Crosswalk to the NATEF Collision Repair and Refinishing Standards task list” documents this alignment, and the Crosswalk will be available from both I-CAR and NATEF. With this collaboration between I-CAR and NATEF, schools that are using, or wish to use, the PDP-EE curriculum will find it easier to match the NATEF task list. This will benefit collision repair and refinish programs, instructors and students. It will improve these programs and encourage them to use the I-CAR PDP-EE ProLevel® 1 curriculum and become NATEF accredited. Students will now be able to graduate from NATEF accredited programs
with I-CAR’s Platinum recognition and the ASE Collision Repair and Refinishing Student Certifications. “It’s important to know that through these collaborations, one doesn’t replace the other,” said Van Alstyne. “Rather, I-CAR and ASE programs work together synergistically.” Zilke added, “The combination of I-CAR training, NATEF program accreditation and ASE certification bring our industry full circle for finding and creating world-class collision repair and refinishing technicians.” Additionally, I-CAR is offering training classes at the ASE Industry Education Alliance Instructor Training Conference every year and will present the first-ever I-CAR Collision Repair/Refinishing Technician of the Year Award at the ASE Fall Board Meeting. “This partnership approach to aligning and building training and curriculum will help advance the role of education and knowledge across the collision repair industry, and elevate the impact of recognition for technicians who have earned both I-CAR and ASE designations,” a statement from ICAR read.
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Acura of Boston Brig ht on
800-254-1169 617-254-5400 Dept. Hours: M-F 8-5:30; Sat 8-5 bruce.fisher@acuraofboston.com N EW J ERS EY
Acura Turnersville Tu r ners v ille
888-883-2884 856-516-6060 Dept. Hours: M-F 8-5; Sat 8-4 kristen.powell@penskeautomotive.com 42 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Please contact these dealers for your Honda or Acura Genuine parts needs. MA R Y LAND
NE W J ERSE Y
N EW YOR K
P EN N SY LVA NI A
O’Donnell Honda
Hudson Honda
Brewster Honda
El li cott Ci ty
We s t New Yo r k
B rew st e r
Yo rk
410-461-5000 410-461-9654
866-483-6917 201-868-9500
845-278-4177
800-960-9041 717-848-2600
Dept. Hours: M-F 8-6; Sat 8-5 bshortt@odonnellhonda.com
Dept. Hours: M-F 7-7; Sat 7:30-5; Sun 8-3 anthony.perrone@hudsonhonda.com
Ourisman Honda of Laurel
Madison Honda
R o che st e r
Baierl Honda
La ure l
Ma dis on
800-462-0056 (N.Y.) 585-586-4919
724-940-2006
Dept. Hours: M-Thur 8-8; Fri 8-5:30; Sat 8-5 parts@dickide.com
Dept. Hours: M-F 8-5; Sat 8-4 johnryan@baierl.com
Lamacchia Honda
J.L. Freed Honda
Dick Ide Honda
800-288-6985 301-498-6050
800-648-0293 973-822-1710
Dept. Hours: M-F 7:30-7; Sat 7-4 ron.malitz@ourismanautomotive.com
Dept. Hours: M-Thu 7-8; Fri 7-6; Sat 8-6; mschumer@madisonhonda.com
MA S SAC H U S ET TS
Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com
Rossi Honda
S y ra cu se
Apple Honda
Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com
Wex ford
M o ntg o m e r yv il l e
215-855-3587
LIA Honda Northampton
Vin elan d
315-471-7278
Nor tha mpto n
800-893-3030 856-692-4449
Dept. Hours: M-F 7:30-5:30; Sat 9-1 parts@lamacchiahonda.com
Dept. Hours: M-Thur 8-6; Fri 8-5; Sat 8-4 joseph.sciacca@jlfreed.com
Dept. Hours: M-F 6:30-5; Sat 7:30-3 dave@rossihonda.com
Lia Honda of Albany
Shadyside Honda
800-369-7889 413-586-6043 Dept. Hours: M-F 7:30-5:30; Sat 8-4 dstanisewski@liacars.com NE W J E R S E Y
Clinton Honda Ann a ndal e
908-735-0900 Dept. Hours: M,Tue, F 7-6; W, Thu 7-7; Sat 7-4 chrish@clintonhonda.com
Honda of Turnersville Tur ne rs vill e
800-883-0002 856-649-1584 Dept. Hours: M-F 8-6; Sat 8-4 sbaptist@penskeautomotive.com
NE W J E R S E Y
Route 22 Honda Hi lls id e
973-705-9100
A l ba n y
800-272-6741 518-482-2598
Dept. Hours: M-F 7-7:30; Sat 8-5 rt22hondaparts@route22honda.com
Dept. Hours: M, T, W, F 7:30-5:30; Thur 7:30-8; Sat 8-5 apersaud@liacars.com
VIP Honda
Lia Honda of Williamsville
Nor t h P lain f i el d
908-753-1680 Dept. Hours: M-F 7:30-6; Sat 8-3 kevinh@viphonda.com NE W YO RK
Babylon Honda We s t Ba by lo n
W i ll ia m sv il l e/ B u ff a l o
877-659-2672 716-632-3800 Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com
Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com
Sussman Honda Ro sl yn
800-682-2914 215-657-3301 Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
Ray Laks Honda We st S e ne ca
631-669-5800
716-824-7852
Dept. Hours: M-F 7-7; Sat 7:30-3:30 babylonparts@aol.com
Dept. Hours: M-F 7:30-8; Sat 7:30-5:30 ekuznicki@raylaks.com
NE W YO RK
Pi ttsb u rg h
800-468-2090 412-390-2908
PEN NS YLVANIA
PEN NSY LVAN IA
Elite Acura
Curry Acura
Apple Acura
Ma p le Sh ad e
S c ar s da l e
Yo r k
E mm aus
856-722-9600
800-725-2877 914-472-7406
877-5APPLE5 717-849-6639
877-860-3954 610-967-6500
Dept. Hours: M-F 8-6; Sat 8-5 parts@curryacura.com
Dept. Hours: M-F 7-5:30; Sat 7-3 parts@appleacura.com
Dept. Hours: M-F 7-5; Sat 8-5 mustafa@vinart.com
Paragon Acura
Baierl Acura
Sussman Acura
Woo d s i d e
Wexfo rd
Jen kint own
718-507-3990
800-246-7457 724-935-0800
800-826-4078 215-884-6285
Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com
Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
Dept. Hours: M-F 8-5; Sat 8-4 bmartinsen@group1auto.com
Park Ave Acura Ma ywoo d
888-690-7621 201-587-0028 Dept. Hours: M-F 8-6; Sat 8-3 jon.tangen@parkaveacura.com NE W Y O R K
Acura of Westchester We st ch est er
914-834-8887 Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com
Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com
Smithtown Acura St. James
888-832-8220 631-366-4114 Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com
Lehigh Valley Acura
Davis Acura L a ngho r ne
866-50-ACURA 215-943-7000 Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 43
95-Year-Old Veteran Keeps Busy at TX Body Shop, Shares Keys to a Long Life by Victoria Antonelli
Clay B. Ford has seen and experienced more than the average person during his 95 years on this planet, with no signs of slowing down. He continues to hold a part time job, own a cattle farm, and take the occasional vacation, all while maintaining a positive attitude and dry sense of humor. Autobody News reached out to Ford to find out how he does it all, and what we can learn from him.
Q:
Were you born in Tyler, TX and have you lived there your whole life?
Yes, I was born in Tyler, TX and lived there my whole life, A: except for the service. I served during
WWII for three years and four months.
Where did you work prior to Q: 1999 when you started at Carl Owens Paint & Body?
A:
My father opened a rose nursery in 1919, and when my brother and I got out of the service around 1946, we took it over. My dad was only doing wholesale with contracts in Connecticut and Alabama, so we decided to expand. We built cold storages and a warehouse and sold our own products to different customers from the south all the way up to Connecticut. It was going pretty good until my brother died of cancer 28 years ago. The business became too much to handle when it was no longer a partner-
Q: After selling the rose nursery, I to get bored. I began A: started looking for jobs driving
ship, so I had to sell it. How did you end up working at Carl Owens Paint & Body?
trucks—similar to what I
Q: I recently traveled to WashingA: ton, D.C. for a five-day trip with my daughter, as a guest of Brook-
When and where was your last vacation?
Clay B. Ford, 95, has worked at Carl Owens Paint & Body for 17 years
did at the nursery—but because I was in my 70s at the time, insurance wouldn’t cover me. Finally, 17 years ago, my son-in-law got me a job driving trucks at Carl Owens Paint & Body. Everything was fine until they changed insurance. The next day they called me and said I couldn’t drive anymore. They tried to get around it, but the insurance company wouldn’t budge. So, that’s when I started sweeping the floors and maintaining the restrooms and break rooms. I’ve been doing that ever since.
Do you maintain your cattle farm Q: by yourself? Are there any other animals on the farm?
I raised cattle until 2014. When I A: first got out of the service, my brother and I shared the farm. Then, a
few years ago—I was getting kind of old
BASF Automotive Refinish Continues 25-Year Partnership with CARSTAR
BASF Automotive Refinish has signed an agreement with Driven Brands, extending its 25 year relationship with CARSTAR North America. As a preferred partner, BASF will continue to provide CARSTAR shops with its Glasurit® and R-M® paint systems across the United States. “We’re proud to continue to work with elite partners, like BASF, who allow us to offer exceptional products at reasonable costs to our customers throughout the country,” said Michael Macaluso, president of CARSTAR North America. “I look forward to continued, close work with them for years to come as we continue to grow and provide best-in-class service to our customers.” According to the company,
at that time—I had a big bull I was going to sell, and when I had him in the corral, he knocked the gate over on top of me and jumped over the gate. If he hadn’t jumped over it, he would’ve crushed me to death. Right then and there, my daughter told me I was going to get rid of the cows, because I was too old to mess with them. I still own the farm, but now I lease it out. Besides the cattle, there’s one horse on the farm that’s blind in one eye and older than I am.
BASF is committed to being a market leader in advanced technology and services for the refinish market. Its Glasurit and R-M paint brands are supported by an industry-leading number of OEM approvals and are backed by one of the strongest R&D investments in the industry, a statement from the company read. “BASF and CARSTAR have enjoyed a winwin relationship,” said Denise Kingstrom, BASF distribution director. “Our expertise and dedicated teams will continue to provide CARSTAR customers with the highest quality products and services to maximize paint and material profitability, combined with market leading training and support.”
44 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
shires Grocery Co. I hadn’t been on vacation in 17 years and had barely even taken a sick day. I’m a history and politics buff, so I really liked seeing all the monuments and memorials. It was the most enjoyable trip I’ve ever been on in my life.
Do you have any plans to retire Q: or are you just taking it day by day?
Nope, I’m going to work until I A: can’t anymore. My doctor said that if and when I stop working, that’s when things will go wrong; organs will fail and so forth. Someone even said to me the other day that I’ll probably die with a broom in my hand.
What advice would you give Q: people who want to live as long as you and continue to be productive? I think I’ve just been really forA: tunate. I rarely ever get sick and I don’t have any aches or pains. I
never smoked or drank; I don’t enjoy the taste of beer. I like to stay busy, and I think as long as you’re feeling good, you should stay active for as long as you can.
Ford has two children, grandchildren and great grandchildren. After finishing a half day of work, he checks on his cattle farm, where he takes care of any other business that needs his attention. To learn more about Carl Owens Paint & Body, visit www.carlowens paint.com.
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 45
WyoTech is Now a Half-Century Old and Still Thriving performance courses, which are our street rod, motorsports chassis fabrication and high-performance courses. We now have three locations: Daytona Beach, FL, which is our motorcycle/marine school; Laramie, WY; and Blairsville, PA, where we have our automotive, diesel and collision-related campuses.
by Ed Attanasio
John Hurd, 52, is the Industry Relations Specialist for WyoTech. Autobody News recently asked him about his company’s three campuses, the curriculum for its collision repair programs, and how the need for qualified people in this industry has grown exponentially over the past five years. John Hurd is the Tell us a little about the Q: history of WyoTech. We’re celebrating our A: 50th anniversary this year for WyoTech. WyoTech was es-
Industry Relations Specialist for WyoTech and is currently planning big things for this year’s SEMA Show
tablished in 1966 as a diesel training program and we expanded into automotive rather quickly. We consider our core programs to be automotive, diesel and collision refinishing. Starting in the 1970s and through the 1990s, we added elective programs such as trim and upholstery and applied service management, where students learn all aspects of communications and business operations. We also created restoration and
ple?
You’re in a unique poQ: sition because you’ve been there so long – maybe
you can talk about how the collision industry has changed and why there’s such an extreme need now for new peo-
trades, electrical, welding, HVAC, construction—have been affected due to the aging workforce. And it is compounded because the secondary schools that are teaching industrial arts and automotive programs are fewer than ever. So what we’re finding is a real lack of education in our trades. Our focus is to try to create a larger pool of entry-level techs. We know too that we can’t do it alone. We’ve got to work together with the industry so that these schools are able to create good career development strategies.
What do you do as the IndusQ: try Relations Specialist for WyoTech?
The change has taken place I work with all of the industries within the last four to five years we are involved in to provide A: A: primarily. The aging of our technician support for our programs at the cam-
force is probably the biggest reason, and it’s driving the need because techs are retiring and it’s only going to escalate as we move forward into the next 10-15 years. So all of the industries—and this is not only in the automotive and transportation field, but all
puses and provide opportunities for our students. And that ultimately helps our outreach and admissions team. We’ve got admissions representatives that are positioned across the country. They visit high schools, private schools and community colleges and
present what WyoTech has to offer while creating more awareness around the need for new professionals in all of our industries, including collision repair. You’re seeing community colleges stepping back into the trades, but I still see the high schools and secondary market lagging behind. You know the perception from mom and dad: “Oh, you want to be a mechanic? You don’t want to get all greasy...” But the industry has changed and the old stereotype of backyard mechanics covered in dirt no longer exists. Everything is so high-tech now with the amount of electrical wires, connected systems, and computers in these cars. Who’s going to work on all that? It’s going to be the technically-inclined young people who really get the level of sophistication and skill needed to repair those systems. It’s a great time to be looking at this industry as a career and a good time as an education organization to be offering this training, keeping up with the changes in technology, and partnering with the some of the best companies in the automotive industry. One of our main priorities is evolving and updating our curriculum
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to ensure that we’re meeting the need and the demands of all our industries, including collision repair. There are students that come to us with very little knowledge of tool nomenclature, vehicle terminologies, etc., so we’re adjusting our curriculum to support that. We also have students who complete high school automotive programs before enrolling. In addition, approximately 30 percent of our students are veterans whose skills in the military often transition well to the programs we offer.
How many collision repair stuQ: dents do you have in your programs?
Right now I would say it’s A: about 15–20 percent, with most of our students in our diesel programs.
So we are trying to build on that population and get more focus on collision by building awareness. If you look at Department of Labor statistics, the earning potential has historically been a bit better on your diesel and automotive side.
Q:
What do you offer for someone who wants to be a technician,
a painter or an estimator?
A:
We provide a good overview of entry level skills in each category of collision repair. We follow NATEF and the I-CAR standards. When students graduate, they have their Non-Structural Level One and Refinish Level One Platinum Certificates. We’re an I-CAR welding test site and an ASE test site both at Laramie and Blairsville. Our core collision program is 1,000 hours and the student also chooses an elective. So a student comes to WyoTech for nine months, 1,500 hours of training. We’re providing the students with a strong foundation to help them get employed—maybe they want to work on the metal side or on the refinishing side, it’s their choice, but we’re giving them the skills they need.
do you then try to help to Q: getAndthem jobs after graduation? Absolutely. One of the great A: things that has always been the hallmark of WyoTech is our career
services department. We’ve got a career services team that works with the students and employers. We hold ca-
reer fairs throughout the year at our campuses as well. We invite employers into the campuses; they set up tables and talk to the students. Many do interviews onsite at that time as well. We have them at least twice a year, sometimes as much as four – depending on the population.
Tell us what you’re going to Q: be doing at this year’s SEMA Show?
We applied to Ford for a vehiA: cle that we could customize and showcase at this year’s SEMA to
commemorate our 50th anniversary. It’s a 2016 Ford Transit van. We are doing a custom build and working on it right now. It’s going to resemble one of those old classic vans from the late 60’s and early 70’s, but with new technology throughout. The build is currently being filmed at our Blairsville location for season 12 of Chop Cut Rebuild, so it’s exciting. We’ll be in Central Hall at this year’s SEMA show, booth #23893, and we will also be showcasing our motorcycle program by building an early 1970s Easy Rider-type Harley to tie in with the theme of 50 years.
Congers Collision in NY Earns Assured Performance Certification
Congers Collision has been officially certified by Assured Performance, a non-profit consumer advocacy organization for maintaining the right tools, equipment, training, and facility necessary to repair the participating Automaker brand vehicles according to the manufacturer’s specifications. According to the company, in achieving their certification, Congers Collision is now an integral part of the most advanced repair capable and efficient auto body repair network in the world. Adding to the their credentials, Congers Collision is officially recognized by Assured Performance, FCA, GM, Nissan, Infiniti, and Hyundai. “This certification supports our reputation for superior customer service serving our community,” said Congers Collision owner James Destaso. “We are your neighbors and friends, so it is important to provide our customers with the peace of mind that their vehicles are being repaired correctly by highly trained professionals that care about them.”
www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 47
State Farm’s Offer & Acceptance Program to Change and the Offer Is Going Down by Jenna Reed, glassbytes.com
State Farm is changing the “offer” in its offer and acceptance program, effective September 19. “State Farm is adjusting the market rates it offers for auto glass pricing in relation to National Auto Glass Specifications (NAGS®) and labor rates,” said Dave Phillips, a company spokesperson. The company is communicating these changes through a notice sent out to AGRR companies. Though Phillips says the company does not reveal pricing information publically, glassBYTEs.com™/AGRR™ magazine editors obtained a copy of the letter. The new pricing rates are: Pricing Zone 1: Currently, 25 percent off of NAGS list price for the piece of glass will change to 32 percent off of the NAGS list price; Pricing Zone 2: Currently, 15 percent off NAGS list price for the piece of glass will change to 24 percent off of NAGS list price; and
Currently, 0 percent off of NAGS list price for the piece of glass will remain at that price.
The more populated areas fall into Zone 1, while rural areas are a part of Zone 3. Labor for AGRR technicians will increase from $35/NAGS labor hour to $38/NAGS labor hour. “There is no change to kit pricing nor to windshield repair pricing,” according to State Farm’s letter. “Your continuation in the offer and acceptance program is an acceptance of the pricing changes.” To view a copy of the letter sent to AGRR companies, click here. http://www.glassbytes.com/ documents/OAParticipantPricing ChangesCommunication.pdf We thank Jenna Reed and glass BYTES.com for reprint permission.
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Autobody News
PPG Earns American Honda Approval
PPG has received approval from American Honda Motor Co., Inc., for use of its NEXA AUTOCOLOR® 2K®, DELTRON®, GLOBAL REFINISH SYSTEM™, ENVIROBASE® High Performance
and AQUABASE® Plus products for warranty repairs of Acura and Honda vehicles in the United States. The announcement was made by Steve Topczewski, PPG OEM business development manager. The approval is reflected in the recently re-
leased Acura and Honda Warranty Refinish Guidelines service bulletins. According to the company, these PPG brands incorporate advanced color technology to deliver quality finishes. “PPG takes great pride in partnering with American Honda,” said Topczewski. “Honda has a high standard for excellence, and we are pleased to provide the premium paint products that will produce durable and beautiful finishes for its Acura and Honda brand automobiles. We look forward to continuing our work with American Honda.” PPG has had a longstanding relationship with American Honda, providing a variety of automotive coatings for its vehicles. The latest approval extends to those PPG Nexa Autocolor 2K, Deltron, Global Refinish System, Envirobase High Performance and Aquabase Plus products listed in the aforementioned Honda and Acura bulletins. For more information, visit www .ppgrefinish.com.
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ABRA’s New Career Development Academy Offers Attractive Incentives & Aims to Train and Place the Workforce of Tomorrow by Stacey Phillips
Graduates of ABRA Auto & Glass’s new apprentice technician program are being offered attractive incentives that most new employees dream about: immediate job placement, average salaries of $80,000, eligibility for a retention bonus and thousands of dollars in tools. The Springboard Apprentice Technician Program was launched this past summer at the company’s new Career Development Academy in Eagan, Minnesota. Autobody news spoke to David Kuhl, the chief people officer at ABRA, about the program, which focuses on attracting and retaining the best talent in the industry. Kuhl said the sky is the limit for these students who represent the workforce of tomorrow.
Can you please tell us about Q: ABRA’s Springboard Program and the Career Development Academy (CDA)?
ABRA was established in 1984 A: and has more than 5,200 employees who work in the company’s 334
repair centers located in 24 states across the nation. The company launched a five-week accelerated training program in July, which is held at our new Career Development Academy. The 14,000square-foot facility is located in Eagan, Minnesota and is both a training and production facility. The program was implemented to prepare students with the skills and knowledge necessary to perform disassembly and reassembly of vehicles, minor dent repair, plastic bumper repair, steel welds, set up a vehicle in a measurement system, and non-structural glass removal and install. Those who complete the apprentice program have the option to continue their training to become a C-Level technician with ABRA. Our instructors use I-CAR programs and certification as part of the apprentice program and our vendor partners have donated equipment for the shop, which has created a real production environment.
Q: Three things prompted its openA: ing: our demands, the ABRA approach and millennials. What prompted the opening of CDA?
As far as our demands, we are
leaders in customer service, quality and cost. This is awesome, but the challenge is finding enough talent to do the work that is coming in the door. In terms of the ABRA approach, our company has had an intense focus on quality and lean manufacturing. This is a very specialized way of doing our work. We felt
Erik Klawiter, Joshua Rohde (ABRA CDA General Manager in back row), Vang Lor, Derrick Pegues, Andrew Olson, Tyler VanAlstine, Beng Lee, Duane Rouse (President, CEO of ABRA Auto Body & Glass), Dan Libby, and Keeran Nicholls celebrate the official ribbon cutting of the ABRA Career Development Academy
that we needed a specialized training program that was immersive and intensive, and would expedite the learning curve pretty significantly. The bottom line is that we have an opportunity to deliver highly skilled and motivated C-level technicians who are not only trained but embody our culture and values. The good news is that our repair centers are literally fighting to employ our CDA graduates. The third reason we opened the academy has to do with millennials. Quite frankly, millennials aren’t going into the trades at the same rate as the generations before them did. This problem is not unique to ABRA. There is a huge demand and we need to educate people about this industry and how wonderful and lucrative it can be. We’re not just educating the general public, but individuals who might be choosing between college or the trades.
It sounds like ABRA is meeting Q: an important need in the industry. How many students have applied
for the program and will all of them be placed in an ABRA location upon graduation?
We used several media outlets to get the word out and we had A: a really good turnout! We actually had
450 applicants and there were 10 students in our first class. We’ve placed 100 percent of our graduates to date. We have so much work that we could literally hire 150 experienced
50 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
body technicians. As we move forward, the plan is to have 100-125 academy grads per year and we may even build additional programs on top of that. It has been really amazing and exciting to see so many people who raised their hands and wanted to be part of this. Many say they were struggling and couldn’t go to college or were in jobs with little or no future. The program has literally changed their lives.
What is the cost of the proQ: gram? This is what makes us really unique—there is no cost. In fact, A: we pay them for the duration of the five
weeks of training. When they graduate, we give them about $3,000 worth of tools, and they are placed in clean, wellrun repair centers. On top of that, we wanted to make it even more compelling. We give them a sign-on bonus paid out over a couple of years, which is a significant amount of money. We wanted to make sure we got the best of the best. Everyone is looking for talent and by creating such a
unique and loyal experience, we hope they don’t even think about leaving ABRA when other companies come knocking on the door.
Beng Lee (SpringBoard Apprentice) confers with Joshua Rohde (standing) (ABRA CDA GM) on sheet metal work
We are currently looking for more students, folks who are highly passionate about cars and committed to a career and want to be part of what we think is the best apprenticeship program on the planet. See ABRA Academy, Page 56
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The Road to Autonomous Vehicles: How Collision Repair Shops Should Prepare to stay.” While sharing information with Two years ago, Sean Carey, an expert attendees, Carey was 16 floors above in the subject of connected cars and the Connected Car Insurance USA telematics, made a prediction. The 2016 conference in Chicago. The conCEO of SCG Management Consultants ference was attended by all of major said that the connected car would ultiinsurance carriers and the majority, if mately change the claims and repair innot all of the large vehicle manufacdustries in a profound way. turers. Fast forward two years and Carey said that the there has been a significant claims/collisions market is increase in the development currently in a state of being of the connected car, with highly fragmented and somenew entrants to the market what dysfunctional, with insuch as Google and Apple, surers dominating the landand the widespread use of scape and MSOs a signifiSean Carey, Advanced Driver Assistance cant barometer of the indusCEO of SCG Management Systems (ADAS) and Mobiltry. As a result, it’s leaving Consultants ity. the independent shops adrift “There are significant disruptive and consumers are somewhat getting forces taking effect with vehicle techlost. nology that will be prevalent as soon At the same time, vehicle techas 2020 that will change the market nology is moving at a rapid pace reforever,” said Carey, during a Guild 21 quiring different repair methods and webinar in September about the conprocedures and creating what he renected car. “While nobody can quite ferred to as a “technology tsumami.” agree when the fully autonomous car “The connected car is connected will be on the market, it is profound to everything,” said Carey. Some of change and it is going to happen faster the capabilities he mentioned inclu-de: than most expect. It’s here and it’s here ● Car to Home/Work: Controlling by Stacey Phillips
52 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
homes from the car (turning on lights, HVAC) ● Car to Car: Real time traffic flow and incident alert, gaming/entertainment, and eco driving and coaching ● Car to Infrastructure: targeted advertising, tolls/metering and parking, vehicle recovery ● Convenient and Entertainment: social apps, streaming music, wifi hotspot and mobile wallet ● Traditional Telematics: diagnostic and vehicle health reports, hybrid navigation and concierge call ● Cloud/B2B: data analytics
Carey said the connected car market has a 45 percent compound annual growth rate (CAGR). By the end of 2017, it is estimated there will be approximately 75 million connected vehicles on the road, 25 million of which will have an active user. In 2020, there will be an estimated 220 million connected vehicles on the road, 85 million of which will have active users using the connected car to communicate with outside sources. “That’s significant growth,” said Carey. Carey talked to attendees about
what he referred to as the “Road to Autonomous Vehicles” and the pathway to get there. 1) No Automation: The driver is in control of all aspects of driving; there are no assistance systems; 2) Driver Assistance: May include warning systems such as lane departure warning, traffic sign recognition and rear parking sensors; driver is in control of remaining aspects of driving; 3) Partial Automation: There are one or more assistance systems for steering and accelerating/decelerating; driver is in control of remaining aspects of driving; 4) Conditional Automation: Vehicle is control of certain driving scenarios (e.g. highway); driver needs to be able to intervene on request; 5) High Automation: The vehicle is in control of driving; the driver needs to be able to intervene with lead time; and 6) Full automation: the car has full control; there is no driver—only passengers!
Currently, there are vehicles that exist
with conditional automation. By 2021, Ford is expected to introduce a fully driverless vehicle to the market without a steering wheel or pedals for braking and acceleration. Carey said the ADAS currently being used in some vehicles will be an indicator for the way the claims and collision repair sector will be affected. This incudes things like auto emergency braking, blind spot monitoring, lane departure warning and parking assist. “All of these things are going to have a fairly dramatic impact on both the frequency of claims, the number of cars available to repair, and the severity of the claim, the cost necessary to repair them,” said Carey. He also addressed how this will impact the accident rate, citing a study conducted by KMPG on Self Driving Cars – Automobile Insurance in the Era of Autonomous Vehicles. KMPG predicted that by 2040 there will be an 80 percent decline in terms of accident frequency per vehicle, compared to today. The average cost per claim (with all loss cost included) is projected to increase from approximately $15,000 in 2016 to $35,000 in 2040, which is a 2.5 times increase.
“Our belief is that the disruption to insurance carriers will be profound—with a select set of winners and a broader swath of potential losers,” said KMPG in its report. “As the way we drive and commute transforms, the amount, types and purchase of automobile insurance will be impacted. The disruption to insurers may be profound, and the change could happen faster than most expect.” Carey said the changes are already taking place. In Illinois, for example, there are plans to alter the toll roads, so semi-autonomous cars can have express lanes in the same way other cars do. As part of KMPG’s research, insurance executives were asked which entities, other than insurance companies, did they think would be a major provider of vehicle insurance in the future. Fifty-eight percent believed Original Equipment Manufacturers (OEMs); 45 percent answered startup companies, 39 percent thought established technology firms such as Google and Intel; and 32 percent said capital providers, including venture capital, private equity and other investment firms. When asked which entities would
“own” the data related to driverless vehicles, the majority of the respondents believed established technology firms (81 percent) and OEMS (71 percent) would be the primary “owners” of data related to driverless vehicles. “The inclination and indication here is that executives at insurance companies believe the OEMs and the large technology firms will enter this space in a very big way,” said Carey. “I think the OEMS will leverage technology in areas such as First Notice of Loss (FNOL) through the connected car and we’re starting to see evidence of that.” Earlier this year, Toyota launched a new, U.S.-based telematics car insurance company, Toyota Insurance Management Solutions, and more are expected to follow. In order for collision repair shops
to prepare for the changes ahead, Carey recommended repairers plan for a future where there are less repairs coming from a different source requiring higher and different skill levels and using different procedures, equipment and technology than today. “OEMs are at the forefront of creating this future and it’s making its way into the claims/repair segment,” said Carey. “If you’re not preparing for a different supply chain model, you should be.” Sean Carey has over 30 years of experience in the automotive industry, with degrees in mechanical engineering, marketing and international business. Currently, he is a strategic consultant in the claims and automotive space and is an expert in the subject of connected cars and telematics. For more information, contact Sean Carey at sean@careyscg.com.
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Carstar Canada and US Unite As “1” at Annual Industry Conference CARSTAR Canada hosted its annual industry conference in Charlottetown, Prince Edward Island from August 24 to 26. Close to 600 attendees were at the conference, including franchise, vendor and insurance partners.
Wednesday, August 24 with the “Walk Lobster,” CARSTAR’s annual conference walk to support Cystic Fibrosis Canada. The “Walk Lobster” raised almost $8,000 for the charity, and, combined with other initiatives including a silent auction and raffles, close to $35,000 was raised throughout the week. Following the walk, Michael Macaluso, president of CARSTAR North America, opened up the event by outlining the theme of “1” and CARSTAR North American goals for the future. “We are one CARSTAR. We have one vision, one mission and one core set of values,” said Macaluso. “This is year one for CARSTAR North America, as we are venturing into a new beginning and a Speakers address attendees at CARSTAR Canada’s new journey, built upon the annual industry conference, held August 24-26 in same culture of excellence and Charlottetown, Prince Edward Island fighting spirit. For CARSTAR, Themed ‘1’, this year’s confer- it is not only about being number one in ence focused on the continued unifi- our industry, it is about being a part of cation of CARSTAR Canada and US one community, having one united focus into CARSTAR North America and and driving forward as one CARSTAR the ongoing commitment to its brand, family.” its business and its people. Dean Fisher, COO, CARSTAR The conference kicked off on US and Laura Skinner, director,
Driven Brands Charitable Foundation, also took the stage for the opening ceremonies, followed by Dr. Nick Bontis, a leading expert on intellectual capital and its impact on performance. The second day was jam-packed with speakers, including Artemio Garza, chief brand officer, Driven Brands; Chris Moore, director of marketing, CARSTAR Canada; and Hannah Ross, director of marketing, CARSTAR US, to discuss marketing the CARSTAR brand. Customer ex-
perience manager Lillian Haskett took the stage to discuss Net Promoter Score (NPS), the industry standard customer loyalty measurement, as did John Harvey, vice president, Insurance, who examined the industry-wide transformation and the importance of CARSTAR’s key strategic relationships. Presentations concluded with insurance keynote speaker Etienne Berlinguet, deputy senior vice president; Claims, Intact Insurance. That after-
noon, CARSTAR held break-out sessions and an interactive vendor expo. The closing day of the conference featured Colson Cole and Melissa Miller, both vice presidents of Operations for CARSTAR, to discuss the six pillars of “The CARSTAR Way” for franchise partners to become “Best In Class,” and Edward Blaha, director IT, who discussed future technologies for the industry. The morning wrapped up with guest speaker Jay Papasan, bestselling author of “The One Thing,” and an insurance panel discussion. On Friday evening, a gala dinner and awards ceremony celebrated the best of CARSTAR and featured a ‘roaring twenties’ theme, where decadence and elegance were on the menu. “We are happy that, once again, our annual conference excited and educated our franchise partners while providing the tools, resources and contacts needed to grow their business and improve operations,” said Macaluso. “This is our largest network event of the year, and it was a total show-stopper.” For more information, please visit:www .carstar.ca.
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Continued from Page 50
ABRA Academy
How will this initiative address the talent gap in the industry Q: and what is ABRA’s vision for the
academy?
Many of our leaders in the comA: pany started as a body technician or as an estimator and ended up
managing a store, a market, or a region. It’s much more than a technical job for some folks—it’s a career. It can be a very lucrative and successful job. We want to share that information with the general public and also to people in the trades. I honestly feel that we have created opportunities for folks who might not have thought about collision repair. For instance, We’re seeing a good number of women coming into the program, which traditionally has not happened in our industry. I’m really proud and excited to see that we have three
(l to r) Christine Newman, Nick Spadoni, Ivy Hoffman, and Neal Sims; members of the Academy’s second class of 10 apprentices, watch as Loren Estwick (ABRA Technical Trainer), shows how to prep a bumper cover for repair
women in a class, and we’re hoping to have more join on as we go forward. Our goal is to build awareness about not just ABRA but the opportunities in this industry as being a great place to start or advance your career.
Q:
Many in the industry were surprised to hear that technicians could earn $80,000 a year. Is this a real possibility for technicians?
It’s not a possibility; it’s a realA: ity. As we share information about the program, we want to be very
thoughtful and careful what we tell
Free
them about the career path and the income trajectory. As we look across ABRA today, an $80,000 salary is an average number. Almost 25 percent of our technicians earn over $100,000 a year, and it really comes down to the individual’s ability to be efficient, productive and be able to work on a team. A lot of people might not realize that it can be as lucrative as that. As part of our lean process, our technicians can become highly successful when they follow our process. It is an alternative to going to college and racking up a bunch of debt; you can really earn a nice living being a body technician.
When you were formalizing the Q: program, what did you learn? We went out into the field and A: talked to our seasoned technicians and store leaders. We asked
them how long it would take to become a really good C-level technician. They told us that you would have to work on hundreds and hundreds of cars. We took that as a challenge. The initial timeframe we gave was about 12-18 months, as a best-case scenario. We have a very regimented program and have been able to take that from 12 months to literally three months. I’m proud to say that the two first classes graduated and they’re doing work that typically would take 12 months. All of a sudden people realized that the right learning environment will create incredible quality, proficiency and production. This is changing the way we are thinking about talent. If we can do this in five weeks and maybe another month in the field, it will alter the way we think about bringing talent in. The last piece that is really interesting is that we’re not screening for technical skills. We can take someone who just graduated from high school who welds cars, and maybe has been working in the backyard or with their dad on a car and we can put them through two online assessments that look at attitude and personality, and mechanical aptitude. We are able to determine who has the attitude, work ethic, the process
focus and the mechanical aptitude for this industry. It’s phenomenal how people have gone through those assessments, and then done really well in the program.
What are the initial indications Q: after launching in July? When you start a new program A: like this, you really don’t know what to expect because the industry
doesn’t have a well-defined career path for body technicians. Part of our work
Ivy Hoffman mixes metal glaze for small repair in metal finishing
is to define what it really means be an A-, B- and C-level tech and the skills, experiences and proficiencies needed to get from one level to the next. We think that’s important because it gives us an opportunity to articulate and explain the training that is
needed to get to the next level. It also gives us the ability to set compensation according to specific skill levels and competencies. This is particularly important with millennials, who are continuous learners and grew up with the ability to selfeducate. Although the program is not just for millennials, that seems to be a constant trend. It allows them to know how to reach a certain goal, what it takes and then what happens at that point.
Does this have any effect on Q: technical schools? Some people have asked us if A: we are taking students away from technical schools. We really
aren’t. Instead, we are reaching out to many potential applicants who never even considered this career. The industry has a shortage of talent. Our hope is that our competitors may also see this as a good opportunity to find talent and encourage more people to join this industry. For more information about ABRA’s Springboard program and the Career Development Academy, call 763-585-6362 or visit www.abracda .com.
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Educational Seminars Institute Helps NACE Attendees Prepare for the Unthinkable by Victoria Antonelli
Speaker Maylan Newton began his presentation with a personal story about how one moment changed his life, and how shop owners can prepare for when illness, accidents, injuries, family issues, or even death strikes. “I try to use the lessons I learned in a very hard way to prevent other people from having that happen,” said Newton. Newton presented his seminar “It Happens! But Will Your Business Survive It?” during the 2016 NACE | CARS Expo and Conference, which was held in Anaheim, CA, from August 9-13. On December 30, 2014, Newton, owner of Educational Seminar Institute, crashed his motorcycle while having a small stroke, also known as a Transient Ischemic Attack (TIA). He broke his left collar bone and seven ribs. Only days later, on January 2, 2015, he suffered from an Ischemic Stroke in his occipital and temporal lobes. The doctors told his wife and two children that he may not make it through the night, and if he did, he
would most likely be a “non-functioning person” for the rest of his life. Newton defied the prognosis, and after spending a month and a half in the hospital, he was finally released on February 14, 2015. He endured four more months of strenuous physical therapy and recovery before speaking
Maylan Newton riding his motorcycle
about his experience at trade shows and conferences across the United States. “Even though a TIA is extremely preventable, it causes 180,000 deaths per year in the United States and is the number one cause of adult disabilities,” explained Newton. He said the stress, along with the nature of his job, caused him to put his
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health on the back burner. The business owner started out as a technician, before “accidentally” becoming a service writer in the early 80s. “I complained to the shop owner about the service writer we had at the time, and the next morning he fired him and hired me,” he explained. “Even though I have no problem talking to people, I knew I still needed to be trained on how to make and close a sale along with other formalities.” Newton began training with the late owner of Educational Seminars Institute and started working for him full time in 1983. After the owner died from a heart attack in 1998, Newton took over his business in 2000. “My job required a lot of traveling, and when you’re on the road, eating right and exercising is very difficult,” he explained. While in the hospital, Newton’s wife said something to him that changed his life. “She said, ‘My number one fear has happened,’ and I asked, ‘What was that?’ to which she responded, ‘I have a business I know nothing about that I’m responsible for and it provides in-
come for my family.’” Newton said that was when he realized, “this is the biggest failure I ever could’ve had for my family.” So how exactly do you prepare for a catastrophe of such epic proportions?
Maylan and his daughter pose for a selfie during his hospitalization
“You have to recruit people whom you can trust,” Newton stressed. While he was in the hospital, his wife would bring him his cell phone. He would talk to his employees for 30 minutes daily, which left him physically exhausted.
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“I told them, I trust and love you guys like family, so just make the right decisions and we’ll figure it all out later on,” Newton said. “During that time, the company actually gained clients, and did not lose a single one.” There was only one other person in the company who did presentation work. During that six month period, he covered all of Newton’s presentations along with his own, causing him to travel twice as frequently. The only presentation he wasn’t able to cover was one that he and Newton were supposed to do together. “I hired a young man to cover that presentation; I had never met him before and only had one hour-long phone conversation with him to go over how I usually conduct my seminars,” Newton explained. “He ended up doing a phenomenal job.” Educational Seminars Institute did not miss one presentation commitment during that six month period. “The biggest problem I see amongst small business owners is EGO,” Newton said. “You have to let your employees take the lead and make mistakes.” Other pointers that Newton went over in his presentation included: ♦ Share your business philosophy with
employees and provide training
♦ Set clear expectations for every position through operation manuals that include processes and procedures
Another question business owners should know the answer to is: What do employees need in order to operate the business? A list of the following with contact information:
Vendors • Parts • Sublets • Towing • Glass • Rental cars
References • Repair information sources • Hotlines for technical assistance
• Passwords, usernames, secret questions and answers • Accounts payable • Accounts receivable
Who does what? • Who’s in charge of payroll? • When is payday? • What do we / do we not work on? • What methods of payment do we accept? • What is the end of day closing process?
Employee Profiles: • Individual strengths and weaknesses • How are they compensated? • What are their job duties / responsibilities? • Any unique circumstances agreed upon?
Newton ended his presentation by reminding attendees to think about their family and business first, and how much both entities would be affected by their temporary, or sometimes permanent, absence. “Every time I do that presentation, either by the end of class or the next day, four or five people email me, hand me notes, or call me and say that
the class changed their life,” he said. “They think about business differently, and they’ve started making personal health goals.” Newton also shared that he now walks six miles a day to stay active and maintain his health. He has also developed a workbook for shop owners to have on file in case employees need to run the business. Those interested can receive a copy via email by contacting esi@esiseminars.com.
For more information on Education Seminars Institute Automotive Management Specialists, contact (866) 526-3039 or visit their website at www .esiseminars.com
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Continued from Page 3
Enacted Legislation
Nevada was the first state to authorize the operation of autonomous vehicles in 2011. Since then, seven other states—California, Florida, Louisiana, Michigan, North Dakota, Tennessee and Utah—and Washington D.C. have passed legislation related to autonomous vehicles. Arizona’s governor issued an executive order related to autonomous vehicles. Florida’s legislation, passed in 2012, declared the legislative intent to encourage the safe development, testing and operation of motor vehicles with autonomous technology on public Continued from Page 18
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roads of the state and found that the state does not prohibit nor specifically regulate the testing or operation of autonomous technology in motor vehi-
cles on public roads. Florida’s 2016 legislation expands the allowed opera-
Expert analysis of the Mercedes showed the damage did not match the account given to police, according to the affidavit. Transformers was also under surveillance by this time, and White was allegedly seen delivering the undamaged Mercedes to the business on October 7. By the afternoon of October 8, while never having left Transformers, the vehicle had gained substantial damage to its right side,
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tion of autonomous vehicles on public roads and eliminates requirements related to the testing of autonomous vehicles and the presence of a driver in the vehicle. Virginia’s governor Terry McAuliffe announced in early June a partnership allowing research and development for autonomous vehicles to take place in the state with “Virginia Automated Corridors.” Arizona’s Governor Doug Ducey signed an executive order in late August 2015 directing various agencies to “undertake any necessary steps to support the testing
the affidavit said. Progressive paid more than $13,000 on that claim, according to detectives. White offered statements from three passengers in the vehicle at the time of the alleged accident: Nicole Walton, 42, Conchetta Edwards, 60, and Pamela Fields, 53, all of Philadelphia. Walton is scheduled for a court appearance Tuesday. Fields is scheduled
and operation of self-driving vehicles on public roads within Arizona.” He also ordered the enabling of pilot programs at selected universities and developed rules to be followed by the programs. The order established a Self-Driving Vehicle Oversight Committee within the governor’s office. Michigan has recently refined its legislative framework. Previously it had defined “automated technology,” “automated vehicle,” “automated mode,” expressly permits testing of automated vehicles by certain parties under certain conditions, defines operator, addresses liability of the original manufacturer of a vehicle on which a third party has installed an automated system, directed state DOT with Secretary of State to submit report by Feb. 1, 2016.
to appear September 19 with White’s girlfriend, Shakeya Miles, 34, of Cherry Hill, N.J., who owned the car. Edwards pleaded guilty in May to one count of theft by deception and was sentenced to two years of probation. She was also ordered to pay $15,257.70 restitution to Progressive Insurance. We thank the Delware County Daily Times for reprint permission.
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Shop Strategies
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications. She can be reached at sphillips.autobodynews@gmail.com.
A Strong Culture and Production Process Makes This the “Best Place You’ve Ever Worked” with Stacey Phillips
Earlier this year, Fix Auto USA announced the opening of its 100th franchise location in the U.S. The network of body shops has more than 400 franchises worldwide. Three of the Southern California locations are
Brothers Aldo and Rene Aguayo have worked at Fix Auto Poway for the past two years and Rene’s sons, Rene Jr. and Donovan, now work at the shop as well. (l to r) Rene Jr., Rene, Donovan and Aldo
independently owned and operated by Gary Leger: a flagship shop in Poway and two smaller centers in San Diego and Lemon Grove. Autobody News spoke to John Resko, general manager, and Susan Cagney, operations manager, about the processes the company has found to be beneficial for both customers and employees.
When did the company become Q: part of Fix Auto and what are the advantages of having that relation-
While we enjoy those corporate benefits, we also have the flexibility to set up the shops the way we want. We don’t have to run it up a corporate ladder or get permission from a regional manager or a VP. We can bring in our own magic and managerial expertise and make changes on the fly. The Fix owners get together regularly and share best practices. It’s an open exchange of information in a non-competitive environment. We share our scars so we don’t have to get any new ones!
How do the three locations work Q: together?
John: We have the equipment and technology for doing major collision repairs in the larger Poway location, which is 36,000 square feet. While each of our three centers is equipped with a frame machine and up-to-date welders, some of the unique specialty equipment is housed in Poway. The other locations are about 8,000 to 9,000 square feet and when we get larger hits in those centers, it bogs them down.
Farm. The benefits outweigh the detractors in my opinion. To have that volume of work coming in and the re-
The team at Fix Auto Poway
lationships with the insurance companies enables us to provide a quality product that’s safe, meets the insurer’s demands and still gives the customer the best experience overall. There are going to be things that
you give up when you deal with a DRP, but if you choose the DRPs correctly, they can be a very profitable
enterprise. Working with DRPs, you are able to eliminate as many delays as possible and the surprises are very few because you know the parameters of every program. See Fix Auto, Page 70
YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. Choose Original MINI Parts. Because you can’t repair your reputation.
ship?
John: Gary Leger opened his first location in Poway five years ago. Three years later, he decided to become part of Fix Auto. There are two types of Fix Auto facilities—shops that have become full franchise members, and associate franchise members who are able to access some of the reporting but aren’t fully branded. We’re still privately-owned; we don’t belong to Fix Auto. However, we have found that Fix Auto offers some of the oversight and reporting parameters that really aren’t cost-effective to have as an independent facility. There is major market advertising as part of being a full member of the Fix organization and there is DRP relationship management that occurs from a corporate level as well. By being part of Fix, we have the benefit of both.
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John Resko, general manager; and Susan Cagney, operations manager
We actually transfer them up to the Poway location where I have a team of technicians who absolutely love big hits that need major structural replacements; they specialize in them. They can get them out in a fraction of the time that it would traditionally take for those cars to be repaired.
Does Fix Auto partner with any Q: DRPs?
John: Yes, we are part of quite a few, including GEICO, USAA and State
62 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
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What Shops Can Expect to See in Vehicle Hacking, Accident Avoidance Technology & Cybersecurity by Stacey Phillips
Leading automakers and experts in vehicle security, telematics technology, and diagnostics and repair shared their insights with the collision repair industry during the Technology & Telematics Forum at NACE CARS Expo & Conference in August. They discussed how advanced technologies, connectivity and the Internet are changing the automotive industry. Presented by the Automotive Service Association (ASA) and Automotive Technology Experts, the forum was sponsored by the Alliance of Automobile Manufacturers, a group of 12 of the leading car manufacturers in the world. Here are some of the highlights from the three presentations: Vehicle Hacking, Accident Avoidance Technology and Vehicle Security.
Vehicle Hacking Donny Seyfer, chairman of ASA, moderated a session on vehicle hacking that featured Craig Smith, a reverse engineer and “white hat hacker,” and Mahbubul Alam, who special-
software, connectivity and content all happening at the same time, Alam said that over the next 10 years consumers and shops are probably going to see the biggest change in vehicles since the days of Henry Ford. He gave a simple analogy, comparing the vehicles of today to a hamburger. Like a burger with all of the different layers of condiments, the technologies in vehicles are being added on top of one another. “They have never been designed to be a single system,” said Alam. “They all came from different suppliers. Se(l to r) Moderator Donny Seyfer, chairman of ASA; Craig curity was just an afterthought Smith, a reverse engineer and “white hat hacker;” and that came along.” Mahbubul Alam, a developer of solutions to respond to He stressed the importance vehicle hacking of designing security for vemanipulate the physical aspects of the hicles from the ground up and referred car,” he said. He will usually look at to the five “Cs” that will need to be 3G or cellular connections and at- addressed: tempt to unlock the doors or start the vehicle. Smith predicted that encryp- 1) Chipsets (that go into your election will increasingly be utilized to ad- tronics) dress hacking as more technology is 2) Clients incorporated into vehicles. 3) Connectivity With the development of new 4) Cloud-based izes in developing solutions to respond to vehicle hacking. As a “white hat hacker,” Smith tests what the “bad guys” might do to hack a car. “If I want to go after a vehicle, typically what I’ll do for the most impact is see how far away I can
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While developing future security systems, Alam said car manufacturers should consider borrowing best practices from other industries such as finance, defense, utility, aviation and manufacturing, to determine how they might apply to vehicles. The amount of software and technology going into cars is increasing every year. Currently, vehicles have approximately 80 percent hardware and 20 percent software. Analysts project that nine years from now, in 2025, it is estimated there will be 60 percent software and 40 percent hardware. With the close link between data and software, Alam said manufacturers will need to monitor what types of software are on the vehicles to make updates when new solutions are launched and monitor how they are functioning. This is similar to a mobile phone, which needs to be continually upgraded. Also similar to a mobile phone, consumers will have the option to upgrade when and if they want to. “When it comes to vehicles, there are certain demographics they aren’t going to feel
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comfortable updating,” said Alam. Instead they will go to dealerships, which will become an extension of the OEMs when it comes to updates. These are all new concepts for the auto industry, and Alam stressed the importance of matching technology with human acceptance when deciding which solutions to use in vehicles that are manufactured in the future. Summary of presentation based on information shared by Craig Smith, Theia Labs; and Mahbubul Alam, Movimento.
Accident Avoidance Technology Roy Schnepper, chairman elect of ASA, moderated a session on accident avoidance technology. Garrick Forkenbrock from the National Highway Traffic Safety Administration (NHT SA), spoke about the administration’s focus on crash avoidance technologies. He said their mission is to save lives, prevent injuries and reduce the economic costs due to road traffic safety through education, research and safety standards. According to the NHTSA, about 32,500 people died on American roadways in 2015. This number is up 7.7 percent from 2014. Ninety-four percent
support, lane centering control and blind spot intervention; and Automotive Emergency Braking (AEB), which includes dynamic brake support, crash imminent braking and pedestrian crash avoidance and mitigation. AEB systems, which vary by vehicle, use sensors to detect objects in a driver’s path and become operational just before the crash. NHTSA has performed research on crash avoidance technology for the last six years. This includes test track evaluations, safety benefit estimation, crash data analysis and ultimately developing objective test procedures to evaluate system performance. “We believe in the technology are making efforts to dis(l to r) Moderator Roy Schnepper, chairman elect of seminate our research findings ASA; Matthew Valbuena, Mazda; Richard Salceda, in reports and presentations,” Mazda; and Mark Allen from Audi. Not shown: Garrick said Forkenbrock. “We have Forkenbrock, NHTSA worked with the industry and forward collision warning, lane departhe Insurance Institute for Highway ture warning and blind spot detection. Safety (IIHS) to establish a voluntary Those in the “active” category commitment to have most automakers physically change the state of the vemake AEB standard equipment by the hicle and are becoming more common. year 2022.” There are also plans to inThere is Lateral Deviation Support corporate AEB into the new cars as(LDS), which includes lane keeping sessment program for the model year
’
’
of the crashes can be attributed to some form of human choice or error. “When we look at these numbers, there is a big opportunity for crash avoidance technologies to improve safety,” said Forkenbrock. During the session, he highlighted some of the crash avoidance technologies currently available. There are two main types: passive and active. Passive avoidance technologies have been around for several years and include
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2018. According to NHTSA traffic safety facts, there are about 1.7 million rear-end crashes each year. Although not all of them would benefit from AEB, Forkenbrock said that approximately 910,000 per year could potentially be avoided or mitigated. It is also estimated that the combination of forward collision warning, crash imminent braking and dynamic brake support could prevent 200,000 minor injuries, 4,000 serious injuries and 100 fatalities. Approximately 613,501 lives have been saved by auto safety technologies over the last 50 years, according to NHTSA. “Safety will continue to be a major influencing factor for innovation including crash avoidance technologies,” said Forkenbrock. More information and videos are available on the following websites: www.nhtsa.gov; www.safercar.gov; www.youtube.com/user/USDOTN HTSA/Featured Following Forkenbrock’s presentation, Mark Allen from Audi talked about the types of driver assistance/ crash avoidance technologies from the car manufacturer, such as Audi’s adaptive cruise control, active lane as-
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sist and top view camera. This was followed by a summary presented by Richard Salceda and Matthew Valbuena from Mazda about the company’s new technologies. These include driving position and interior layout, radar cruise control and the lane keep assist system. More information about these technologies can be found on their websites: www.audi.com and www.mazda .com.
Vehicle Security During the third portion of the forum, Bob Redding, lobbyist for ASA DC, moderated a seminar on vehicle cybersecurity with guest speakers Lauren Smith from the Future of Privacy Forum and Bob Gruszczynski from Volkswagen. Smith said that transportation is expected to change more in the next five years than it has in the last 50. One of the biggest changes is that cars are increasingly relying on more data and sensors, and becoming more like a computer. Data collection in vehicles isn’t new by any means. Computerized systems have been in cars since the 1960s and data recorders, used since the
1990s, are in 96 percent of cars today. However, there have been many recent developments. “The prediction is that 50 billion connected devices will exist by 2020,” said Smith. Not only is more data being collected, but it is also being
being collected includes behavioral driving patterns. Behaviors such as speed, steering and braking could lead to safety features like driver correction and alerts but according to reports, your behavioral driving patterns could be as identifiable as a thumbprint. Smith said it’s important to look at what types of images are being stored on the car and being sent off and how this information is being used. As part of the Future of Privacy Forum, she said their approach is to determine best practices for these types of (l to r) Moderator Bob Redding, lobbyist for ASA DC; new technologies and figure Lauren Smith, Future of Privacy Forum; and Bob out how to enable the techGruszczynski, Volkswagen nologies to exist and be usecommunicated outside of vehicles ful but also to think about consumer through the manufacturer, a plug-in or protection. “Yes, your car is learning a service installed by the owner of the more and more about you and somecar. times that sets off red flags,” said This can include sensitive data Smith. “But the reality is that what such as where someone is located as your car knows about you can save well as biometric information that col- your life and we’re here to foster those lects physical and biological characconversations.” teristics of the driver. Smith cited the Gruszczynski spoke to attendees example of internal cameras that cap- about the short- and long-term soluture facial recognition, voice samples tions to address cybersecurity issues. and the individuals who are in the car. These include vehicle manufacturers Another area of sensitive data using gateways, shutting down auto-
matic enhanced diagnostic recognition and transmitting the data to a cloud. “It’s the responsibility of the repair shop owner to make sure that the systems in the shop are secure,” said Gruszczynski. “You don’t need to have an IT guy on staff or on call, but you should have somebody on your staff who does understand all of the aspects of the data that comes from the vehicle and where it goes.” He also recommended that shops do their best to stay educated about new requirements. “I think there needs to be continuous work together to make sure the data stays safe, consumers stay safe and vehicles stay safe,” said Gruszczynski. Smith agreed. “This is the very beginning of this debate and I think as the data grows and as the technologies grow this will become a bigger and bigger topic,” she said. Summary of presentation based on information shared by Lauren Smith, Future of Privacy Forum; and Bob Gruszczynski, Volkswagen.
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unless you have happy employees.
Continued from Page 62
Fix Auto
Q:
How does your own experience working at Farmers Insurance for 16 years offer insight on the collision repair industry?
John: It’s very beneficial. The body shops have traditionally operated as mom and pop organizations. The general trend now is for them to become more corporatized. Coming from a corporation myself, I’m used to the rules and metrics. I understand where the insurance companies are coming from when they want you to focus on something specific. I am familiar with the rationale behind it.
How do the shops help cusQ: tomers feel welcome?
John: Our front office staff is the key. Whether you win or lose customers, the majority of that happens in the first five to 15 seconds. When they step inside, the lobby has to be welcoming and the first person they meet has to have a smile. You know that no customer is happy to be here the first time they come. Everyone is here because something bad has happened. There’s no point in furthering that experience of negativity. Our job is to turn that around. We have confidence that the product we give them at the end will make them extremely happy but we need to start it right at the beginning. Gary, our owner, will walk in and ask, “Best place you’ve ever worked?” He wants to hear, “Yes, it’s the best place I’ve ever worked.” That’s important to him. It’s a business and there’s an end-game in every business, but Gary recognizes that employee morale is also extremely important and it’s a great long-term investment at a shortterm cost to keep employees happy. That really begins with our manager Susan Cagney, who has helped build a great culture for our entire organization. Communication is huge to her. You can’t have happy customers
Can you tell us about the emQ: ployee culture at Fix Auto and how that sets you apart as a business?
John: The culture and the attitude are wonderful and everyone gets along. Occasionally, you have the brothersister fights but that’s going to happen. Everyone has a bad day—it’s collision repair—but nobody brings it here. We recognize everyone is here to earn a paycheck, that’s why you come to work. Unlike the vast majority of shops that I’ve been in, there is no real mercenary attitude. They take a tremendous amount of pride in where they work and the product they produce.
Susan: I have worked in several different body shops and I will honestly say that the family atmosphere that we have here is what sets us apart. We really do care about our employees. Gary, as the owner, is very involved with all of his employees. They just know that they are cared about. It’s important to know your employees well enough to know when they seem off and to tackle that right away. We spend more time here than we do with our own families and we want people to want to come to work and be happy to come to work. I think when you feel that you are cared about as an employee, you are going to put more care into your work. That’s going to show.
Q:
John: We have trainings constantly, whether it’s with I-CAR or VeriFacts. We try to have our employees as welltrained as possible and we have multiple manufacturers certifications. It’s a priority for us to make a capital investment in equipment to ensure we can get those certifications. The advantages are two-fold. First, we know we are fixing the car correctly, pursuant to the manufacturer’s specifications, and secondly,
it helps the customer gain a sense of confidence that the vehicle is being repaired correctly.
Susan: The main thing I tell customers is that it’s important you are safe and your car is repaired properly. We want you driving on the other side of the road from us in a safe, reliable vehicle. We are constantly keeping our technicians up-to-date with training and they are always willing and eager to learn about the newest technological advances.
What are the plans for the fuQ: ture? John: We opened the downtown San Diego location a year ago and the Lemon Grove shop opened six months ago. We also have two more shops on the horizon.
Susan: One of Gary’s goals is to make the shops uniform. He does his best to make sure the new ones are replicas of the Poway location on a smaller scale. We already know the process works, but at the same time we are always open to the ever changing needs of our field. That’s what makes our business successful.
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In what ways does your proQ: duction process help the shops run efficiently?
Susan: An integral part of the business is the production process used in the shops. That’s the crux of our whole organization. When the processes fail, it’s very easy to pinpoint exactly where it’s starting to fail. This includes everything from beginning to end: when the car first comes in, how it gets checked in, how it then goes to the back and gets checked and then dispatched to technicians, and then
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to paint. There’s a whole quality control process that goes on throughout the repair. Everybody has their part and everybody does their part. We’re developing the same system in all three locations. We have somebody for every task, from the guy who drives the car from the front to the back to the production manager who oversees the entire back. We all know what the process is so there isn’t any kind of glitch when somebody is out. Another guy can step in and take care of it so we don’t have any hiccup in our production. Everybody helps out wherever it is needed. What other initiatives do you take to invest in your shops and the employees to ensure you are repairing cars to a high standard?
ltedesco@autobodynews.com
70 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 71
Professional-Looking Uniforms Are No Longer Just Optional by Ed Attanasio
I was in a large shop recently talking to a couple of technicians and I was impressed by their knowledge and commitment to the industry. Two of them were I-CAR Platinum Level certified and the other one was on his way to achieving the same. We were discussing things like aluminum repairs and the value of training, but I could not help but stare at them. None of them were dressed the same, and all of them wore different baseball hats, representing the San Francisco Giants, Oakland Raiders and even another shop, which I found interesting. Two of them had uniform shirts that looked like they were older than me, and the third gentleman was donning a t-shirt advertising a band called the Insane Clown Posse. Wow, these guys are smart; they communicate well and they’re obviously dedicated to what they’re doing, so why are they dressed so poorly? That’s why I decided to write my column this month about shop uniforms and how they can help (or hurt) your company’s image.
Ted Stein, the state president of the California Autobody Association (CAA) and the fixed operations director at Penske Ford in La Mesa, CA has a
total of 38 years in the industry, so he knows the importance of uniforms in a shop environment. “We are very picky about our uniforms, and we make them a priority,” Stein said. “They are an extension of your business, and if your people look sloppy, that reflects on the
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pany performance overall. Seeing is believing, and making a good impression goes a long way. That’s why collision repairers see the results of featuring clean uniforms on their crew every day. To find out the effectiveness of uniforms for your crew, experts at J.D. Power and Associates polled consumers as well as employees and the results are compelling: ● Three out of every four consumers prefer employees in uniform. ● 97 percent of the people polled said that uniforms help to make your crew more recognizable. ● Seven out of every 10 people said that uniforms make your employees look more professional and easier to approach.
Other people polled about uniforms said things such as: ● “Uniforms give the company a better image.” ● “Employees in uniform look more professional and appear to be better trained than those not in uniforms.” ● “They look like a team with uniforms, because no one stands out and everyone looks neat and presentable.”
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entire company. Your uniforms are a definite form of branding, so whether they are t-shirts with your logo on them or something more formal, people are going to see them outside of the shop, when your crew is out having lunch, etc. Image is so important in this industry, because the consumers are relying on us for being honest, approachable and responsible for fixing their vehicles, so we need to look the part.” The days of technicians and counter people wearing their own clothing at work are long gone. While many companies now have more and more casual dress days, automotive repair companies are gravitating away from this trend. If you want to run a professional business, it all starts with what the consumer is going to see. Uniforms that are clean and neat will make the customer more confident and comfortable and will contribute to making the entire process easier overall. Many businesses have discovered that having uniforms in the workplace helps to strengthen and support a cohesive team spirit. A more focused and unified workforce often leads to improved productivity and superior com-
Mon-Thu 7:30am - 8pm Fri: 7:30am - 6pm; Sat 8am - 4pm www.GaryRomeHyundai.com
For Your Collision Job Visit these Genuine Hyundai Parts Dealers 72 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
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Employees asked about their uniforms stated the following: ● “We project a quality image with uniforms, and the customers are more confident in our ability to do a good job by wearing them.” ● “It creates good morale, because if we look good, we will logically feel good as well.” ● “Uniforms allow us to focus more intently on our work, because we never have to worry about what to wear to work.”
Your crew is an extension of you and how you run your business, so uniforms are an ideal way for you to create the image you’re looking for. Today’s consumers are a lot more discerning and know so much more about customer service, transparency and branding. To placate the average customer, you need to create a positive image in every aspect of the repair process, and clean and neat uniforms can be an integral part of that. So if you’re currently not using uniforms or need new ones, make it a priority, because body shops all over the country are using uniforms as part of their formula for success and it’s working.
Industry Invited to Collision Repair Education Foundation and Atlanta I-CAR Committee’s Back-to-Back Events This October
The Collision Repair Education Foundation (CREF) and the Atlanta I-CAR Committee will be hosting back-toback events this October, which the collision repair industry is invited to attend, participate in, and support. On Wednesday, October 19th, a ribboncutting ceremony will be held at Athens Technical College (Athens, GA) in recognition of the school’s collision program receiving a $50,000 Makeover grant made possible through the Atlanta I-CAR Committee’s local fundraising efforts. The event will take place from 2-4pm and will showcase how, through the local committee, the school was able to transform their collision program with new tools, equipment, and supplies. On Thursday, October 20th, CREF will host a high school and college collision career fair at Maxwell High School of Technology (Lawrenceville, GA). An anticipated 200+ students will be attending from all over the state of Georgia, looking to meet industry employers. Maxwell High School of Technology was a past recipient of a Makeover grant also funded by the Atlanta I-CAR Committee. According to CREF, shortly after the grant was
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completed at Maxwell, the school’s collision program saw their collision enrollment double and their students win the state SkillsUSA collision repair competitions.
Georgia I-CAR state chairman and Farmers Insurance national APD strategy manager Gerry Poirier noted, “The ability to showcase one of the schools the Atlanta Committee has worked with to the industry as well as other school programs is critical to improving our industry’s vision and need for qualified collision technicians. The Career Fair is vital to showing support for the students electing to go to a Technical Program, as they will have numerous opportunities in a vibrant and growing collision career. I would like to thank the members of the Atlanta Committee for their dedication to helping our local schools become a great source for future collision technicians in the Georgia market. It would not be possible without that team and the support from our local industry partners.”
CREF director of development Brandon Eckenrode said, “While these two events are focused around celebrating a newly-equipped Georgia school and showcasing career opportunities to students at another, the common factor with both of these events is the incredible group of industry volunteers that make up the Atlanta I-CAR Committee. This group regularly comes together, puts aside any corporate competitive differences, and work towards assisting the local collision students, instructors, and school programs. They are quickly approaching over $200,000 raised over the past several years, and these funds are being reinvested into their local collision programs. I would like to invite the industry to attend these events and come see what this group has made possible for these schools. I cannot thank and recognize this group enough for their collective efforts.” Industry members interested in attending the Athens Technical College ribbon cutting event can RSVP online. Companies looking to participate in the career fair are asked to contact Eckenrode at Brandon .Eckenrode@ed-foundation.org or (847) 463-5244.
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www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 73
Shop Strategies
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications. She can be reached at sphillips.autobodynews@gmail.com.
Small Town Business Splits Time between Collision Repair & Classic Car Restoration with Stacey Phillips
In the small town of Edina, Missouri, it is not uncommon for Hunter Body Shop to simultaneously work on a collision job, a restoration project and selling a used car. Established in 1982, owner Billy Hunter focuses on what he enjoys best—working on all makes and models of cars and taking care of his customers. In addition to the collision repair side of his business, Hunter Body Shop specializes in classic car restorations and pre-owned vehicle sales. Autobody News spoke to Hunter about what he loves best about the industry and some of his upcoming projects.
and aluminum welders. Over the years, we have found success using AkzoNobel and PPG products in our shop. We try to focus on customer satisfaction because that is your best advertisement. I have always had a passion
time from the age of 12. His specialties are painting and fabricating. One of his special builds was a right-hand drive 1957 Chevy convertible that was featured in several magazines. Our latest creation is a 1970 Nova. We also have
my love of hot rods. After high school, I went directly to work in a few different shops before starting my own in a 24-by-24-foot garage at the age of 21. That was in 1982.
1970 Chevy Nova with custom chassis, integrated roll cage and LS1 motor
We now have a 30,000-squarefoot facility staffed by my wife, Belinda, our son, Brett, two full-time technicians, a part-time detail girl and myself. We focus on collision, restorations, heavy equipment, semis, boats, motor homes, hot rods and customs. We also do custom exhaust and 24hour towing. In a small town, you need to do it all!
Q:
How are you able to meet customers’ needs with so many different areas of focus?
A:
In order to meet our customers’ diverse needs, our facility has two paint rooms, three frame machines
What do you enjoy most about Q: running your business in a small town? My favorite part of the business A: is working together as a family and considering my employees also as
my friends. I enjoy all of the daily surprises that come with a small business in a small town. We appreciate all of our customers who have kept us going for 34 years. The collision business is exactly what you make it. It’s hard work, but very rewarding. We struggle to find young people willing to put in the time it takes to learn the craft and also the labor, but we have an excellent staff right now. We have many more projects coming up on our ‘to do’ list!
How did you get started in the Q: collision repair and classic car restoration business? My auto body experience started in high school, working nights A: and weekends in a local shop to fund
two Corvettes, a 1963 Split Window and a 1962 convertible in the works. However, all of this takes a backseat to our customers’ collision work.
1957 Chevy with blown 900 HP motor and suicide doors
for cars, especially hot rods. We build our own chassis and complete the entire car except for the interior work.
tell us about your claswork? Q: sicCancaryourestoration One of our first specialty builds A: was a 1959 Cadillac. We took the roof off, fabricated floor boards and
put in a 900 hp Big Block Chevy for the motor. The car had originally belonged to a doctor here in Edina, which is a town of 1,200. It has since been featured on the television show My Classic Car and has been to the SEMA
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show (Specialty Equipment Market Association) in Las Vegas, Nevada, as well as well as numerous shows around the country. Our son Brett joined the business full time in 2006 after working part
74 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
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CREF’s Golf Fundraiser Supports Education for Next Generation by Chasidy Rae Sisk
On August 10, the Collision Repair Education Foundation (CREF) held its Annual Golf Fundraiser at the Black Gold Golf Club in Yorba Linda, CA, during Industry Week. Co-hosted by PPG Automotive, the event was hugely successful, and Brandon Eckenrode, director of development for CREF, noted, “Thanks to all our sponsors and registrants, a year’s worth of planning resulted in a great afternoon of golfing and networking, and it also helped us raise a significant amount of funds for high school and college collision students.” Eckenrode continued, “As long as it doesn’t rain, we always feel confident that we will have a great event and turnout. Luckily, we had clear skies and a nearly sold out crowd of 144 golfers participate in this year’s event, so we couldn’t be happier.” Feedback from those in attendance, as well as those who only talked to golfers, indicated it was another successful golf fundraiser for CREF. Some of the changes in 2016 included food trucks serving lunch, several drink stations, including a margarita bar, and a wide assortment of promotional items donated by event sponsors.
CREF holds its Annual Golf Fundraiser during Industry Week each year “to bring together sponsors and golfers in helping to raise additional funds FORE a great cause - to
help our efforts in supporting high school and college collision school programs, instructors and students,” Eckenrode explained. “Players have a great day on the course through our incredible sponsors.” According to Eckenrode, “These types of events help not only raise additional funds but also awareness about our efforts in supporting the future professionals of the industry. Understanding and respecting that there are many great charitable causes and fundraising events that industry members participate in and organize, ours
is unique in the fact that we are supporting the future of our industry. I am obviously slightly biased, but without us supporting these students and helping to better train them for industry employment, the industry would be facing an even larger staffing issue it already does.” CREF will hold its 2017 Golf Fundraiser during NACE in Atlanta. “We are looking into various golf courses in the greater Atlanta area right now and working with other industry groups on figuring out the best day/time for the event, but planning for next year has already begun,” Eckenrode added. Industry members who would like to receive information about sponsorship or registration for the 2017 golf fundraiser should contact Brandon.Eckenrode@ed-foundation .org. CREF’s efforts to support the next generation of the collision repair industry will also continue throughout the year as they host their Cars, Careers and Celebrities Career Fairs in cities across the nation in order to connect industry professionals with potential future employees.
Volvo to Sell Self-Driving Car Tech to Other OEMs
Volvo is forming a joint venture with Swedish automotive safety supplier Autoliv to develop autonomous driving software and sell it to other automakers. It’s the first time an automaker has partnered with a “tierone” supplier to develop self-driving technology. The deal will see Volvo and Autoliv move their autonomous vehicle software development and intellectual property to the joint venture, which will start with an initial headcount of 200 employees (split between the existing staffs of both companies) and will grow to more than 600. The new company will be headquartered in Volvo’s hometown of Gothenburg, Sweden. Both Volvo and Autoliv will transfer their autonomous vehicle intellectual property to the new joint venture, with Autoliv acting as the exclusive supplier of any developed technology to outside companies (Volvo will purchase directly from the joint venture.) Volvo has a history of developing safety innovations that it then provides to other automakers. Unlike Volvo inventions such as the three-point seatbelt harness, this autonomous tech won’t be available free of charge.
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www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 77
Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
National Leadership Conference, Lou DiLisio on 9/11, NACE in ‘06, MSO Panel in ‘11 with John Yoswick
said most vehicle manufacturers have 20 years ago in the collision repair or soon will have printed materials industry (October 1996) The fourth resolution at the withapproved Chasidy Raeavailable Sisk that will help shops explain event dealt with the responsibility of warranty issues to consumers. insurers, shops and vehicle manufac“No one wants to be surprised on turers to provide vehicle-owners with a new model vehicle that the driveline information regarding the use of non- warranty has been negatively affected,” OEM or salvage parts in the repair of Fleming said. their vehicle. The resolution approved called Chasidy Raefor Sisk “We, as well with as the insurance cominsurers requiring or encouraging pany, have the responsibility to disclose the use of non-OEM or salvage parts to the consumer what he’s getting on his to notify vehicle owners in writing of car,” Kansas City shop owner Bill Evethis practice prior to authorization of land said. He said his shop has cusrepairs. It also called on vehicle mantomers sign a document that lists any ufactures to educate consumers about non-OEM or salvage parts used in the parts-related warranty issues, and on with Raeshops Siskto notify customers of the types repair, and explains that Chasidy the shop cannot guarantee any such parts. of parts to be used. But others at the conference said it – As reported in Autobody News is also the vehicle manufacturers’ reabout the “National Leadership Consponsibility to educate consumers about ference,” a gathering of state associathe possible ramifications that use of tion leaders from around the country. non-OEM or salvage partsChasidy may have on automakers have continued to use with RaeThe Sisk the vehicle warranty. consumer marketing and other tactics Fred Fleming of General Motors to stave off competition from alterna-
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Trust your order to the collision parts specialists at these fine Dealers
Shop Showcase
78 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
with Ed Attanasio
tive parts, although the percentage of OEM parts among all those used has declined over the last two decades.
15 years ago in the collision repair industry (October 2001) Since the horrific events of September 11, I have spoken to many individuals about what has happened and how it might affect us in both the short- and long-term future. One of the issues that has been raised is the upcoming Collision Industry Conference (CIC) meeting in Anchorage, Alaska, scheduled for October 3 and 4. I have talked to several people who suggested we cancel the meeting, while others have pleaded to continue as planned. We are not a nation of quitters, and while I completely understand and respect the apprehension one might have in traveling and congregating at a meeting, I also feel as though we must continue on. This great country was not built on trepidation and uncer-
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tainty; it was built on the will to live and prosper. In that light, we will continue on with our plans to hold the CIC meeting as scheduled in Alaska. The meeting will be held three weeks after the tragic events of September 11. A time for healing and reflection is upon us now. We are a nation that will rise from this event stronger
Lou DiLisio, who in 2001 was the chairman of the Collision Industry Conference, decided to go ahead with the planned CIC meeting in Alaska just three weeks after the terrorist attacks of September 11, 2001
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and more determined than ever, and the time to start that movement is now. – From an editorial by Lou DiLisio, at that time the chairman of CIC. The meeting was attended by about 60 people, far fewer than the 200-400 people at most CIC meetings.
10 years ago in the collision repair industry (October 2006) But the growth continued well into the 1990s, with the NACE trade show setting new attendance records each time it returned to Las Vegas: 22,517 attendees in 1991, 35,800 in 1994, and just over 41,000 in 1997, when the show also hit a peak of 656 exhibitors in a massive 277,500-square-foot trade show. One of the positive outcomes of NACE’s growth has been the show’s ability to bring in some of the country’s most-coveted keynote speakers. They’ve ranged from political heavyhitters like George Bush (2002) and Elizabeth Dole (1997) to sports legends like Fran Tarkenton (1994) and Lou Holtz (1992). Others came from the media world, such as Larry King (1998), Bill O’Reilly (2003) or Geoge Stephanopoulos (1999). “It’s great being able to see people
like Colin Powell (1996) or G. Gordon Liddy (1990) – that guy ran a chill up your spine,” Don Peers, now a retired Nebraska shop owner, said. “I’m not big on movie stars or singers or stuff like that, but anytime you get to see any of those people live, it’s impressive. If [Ret. Gen. Norman] Schwarzkopf (1995) announced that day he needed 1,000 volunteers right now to go into combat, I would have followed him out the door.” – From a history of the NACE trade show, published in The Golden Eagle, October 2006. The event no longer includes big-name speakers as the attendance shrunk below 30,000 after 2004 (and under 10,000 since 2013). But show organizers say this year’s event in Anaheim, Calif., back in August marked the third year of growth.
5 years ago in the collision repair industry (October 2011) At a day-long symposium for multishop operators held during NACE this month, a panel of MSO representatives was asked to comment on a proposition, espoused by an insurer in the United Kingdom, that businesses often “trip over themselves” trying to exceed customer expectations when
they would be better off just ensuring that they consistently meet those expectations every time. Brock Bulbuck, CEO of The Boyd Group, the Canadian firm that also operates 128 shops in the United States (including the True2Form and Gerber Collision chains), said the problem with that concept is that customer expectations keep rising. “If you don’t strive to wow and exceed and set the bar as high as you can, I think you run the risk of establishing a culture in your organization where just doing your job is good enough,” Bulbuck said. “I don’t think that’s conducive for creating promoters (among customers) and growing your business.” Caliber Collision CEO Steve Grimshaw also agreed that exceeding expectations is the key to differentiating your business from the competition. But Cathy Bonner, president of the 47-shop Service King chain in Texas, said there is some logic in what the U.K. insurer was espousing. “I think in collision repair, the primary customer is insurance, and if you don’t exceed their expectations, you will not be rewarded with growth,” she
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said. “The secondary customer is the traditional retail customer. I think it’s true that you don’t have to exceed their expectations; you just have to satisfy them. That’s what we’re rewarded on by the primary customer, the insurance companies, whether we have satisfied those customers and given them great service.” – As reported in CRASH Network (www.CrashNetwork.com), October 24, 2011. Bulbuck continues to lead The Boyd Group, which now has more than 350 shops in North America. Grimshaw is still CEO of Caliber, which now has more than 400 shops. Bonner was shifted from president at Service King to chairman of the company’s board after investment firm The Carlyle Group acquired majority ownership of the company in 2012; the company now has more than 300 shops.
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Miller Subaru
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www.autobodynews.com | OCTOBER 2016 AUTOBODY NEWS 79
Tips for Busy Body Shops Five Ways to Deliver Outstanding Customer Service with Stacey Phillips
An automobile accident can be a very traumatic experience and vehicle owners look to us, as body shop owners and technicians, to take care of them and their vehicles. It seems obvious, but sometimes when we’re caught up in the day-to-day routine, we can easily neglect to provide excellent customer service. “The customer is the lifeblood of your business so treat them that way,” said Mike Cassata, during a recent presentation at NACE CARS Expo & Conference in August. “Make sure they understand that you value them and they are the reason you are there.” The owner of Hammer Insights told attendees that a well-treated and
take that much time to implement but the benefits can be huge for your business.
Make a Good First Impression Many shops focus on technician training, but it’s important not to forget the office staff. They are the first ones a customer talks to, both over the phone and in person. Train your staff to always be courteous and to ask customers when it’s convenient for them to drop off their vehicles. Can they easily find your location? Make sure your shop has adequate signage to be seen from the road and provide plenty of parking if possible. When customers arrive, greet them at the door
Importance of the Customer by Kenneth B. Elliott
A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him… He is doing us a favor by giving us an opportunity to do so. satisfied first-time customer can turn into a repeat customer and eventually become your regular client and an advocate of your shop. Over time, you may even develop a personal relationship and they may soon begin to feel like your friend. Not only is this beneficial for your business, it’s important to insurance carriers as well. “We have a grocer, doctor, dentist, baker, butcher and mechanic; why not a collision repair professional?” said Cassata. Cassata offered tips during his presentation, which is an elective in the Automotive Management Institute’s degree program. The capacity crowd participated in a discussion on how to deliver outstanding customer service. Many of the recommendations don’t
and take the time to go over all of the procedures with them. First impressions are key. The bottom line—“Make your business easy to do business with,” said Cassata.
Provide an Inviting Environment Cassata said that in addition to friendly customer service, a welcoming environment will leave a positive lasting impact on your customers. Rather than entering a shop full of vapor smells and loud noise, consider providing soft music or set up a television in the lobby. Customers will appreciate having a comfortable area to wait for their vehicles and offer coffee/tea, bottled water and soft drinks. Many customers will bring their children and having a place for them to play or read is an-
80 OCTOBER 2016 AUTOBODY NEWS | www.autobodynews.com
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications. She can be reached at sphillips.autobodynews@gmail.com.
other good addition. Also, make sure to have clean restrooms that are easily accessible.
Be Empathetic For many customers, a visit to your shop will be the first time they’ve been in an accident. They may feel lost and confused. Help them feel comfortable and let them know you understand what they are going through. A little TLC will go a long way. “In many cases, you will be the only insurance company representative to meet the customer face to face,” said Cassata. “Fix the customer first, then fix the car!”
Deliver Peace of Mind Exceed their expectations! Assure your customers that you will provide the best service possible and repair their vehicles to the required specifications. Always partner with the best in the trade, whether it’s the tow operator, paint manufacturers, jobbers, me-
chanical shops, parts suppliers or IT providers.
Communicate Often How do your customers want to stay informed about the repair process? Find out if they prefer to receive a text, email or phone call. Let them know if the vehicle isn’t going to be ready when originally scheduled and follow up to keep them notified about the progress. “If there is a problem, resolve it quickly before it becomes a bigger problem.” For more information, contact Mike Cassata at 585-794-0914 or hammerinsights@outlook.com.
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