November 2012 Northeast Edition by Autobody News

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Greg Coccaro Wins Significant Appeal from Progressive Insurance, Changes Case Law

In a fifteen page decision, the court went into great lengths explaining the history of “Business Law Section 349, Deceptive Business Practices” and the intent of it, writing: “This case presents us with the question of whether a business entity [North State] has stated a valid cause of action for violation of General Business Law §349(h) where it alleges that another business entity [Progressive] deceived and misled prospective customers, causing it to sustain direct economic loss in the form of more than $5 million in lost business sales. We conclude that

NACE 2012 in New Orleans

Dick Cross, keynote speaker at the opening session, demonstrates the pyramid top of the organization. See story p. 24.

A New Orleans-style National Anthem kicked off the keynote address. New Orleans appears to have recovered its pre-Katrina spirit.

CARS chair Bill Moss (l) and NACE chair, Ron Nagy, address the opening session. See p. 24.

Mike Dolabi (l) of National Autobody Parts Warehouse and Terry Fortner of LKQ on the Parts Panel discussion.

See Steve Plier, Page 18

Attendance was down on the show floor but some booths attracted record business. p. 26.

ALLDATA’s Dan Espersen imparts his 37 plus years of experience in “OEM Best Practices.”

Change Service Requested

North State Autobahn Inc., a Westchester-NY-based body shop owned by Greg Coccaro, has won an important victory in the New York Supreme Court Appellate Division against Progressive Northeast Insurance Company, Progressive Casualty Insurance Company, Progressive Direct Insurance Company, Progressive Specialty Insurance Company, and Nicholas Stanton. The result likely creates a case law basis for deceptive acts and practices claims against auto insurance companies that divert policyholders away from repair shops outside their DRP networks.

VOL. 2 ISSUE 8 NOVEMBER 2012

AEII’s Tony Passwater presented on designing and implementing a complete repair plan.

The Autobody News staff doing its part to cover the industry.

See Greg Coccaro, Page 48

Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’

earlier this month. Plier worked for State Farm for more than 22 years, starting out in 1987 as a property damage claim representative handling auto claims, and in 1993, he moved into a supervisory position where he spent the last 13 years of his State Farm career as an estimatics team manager. Today, Steve Plier is president of Consumer Auto Repair Excellence, Inc. (CARE).

P.O. BOX 1516, CARLSBAD, CA 92018

Autobody News asked former State Farm Estimatics Team Manager Steve Plier about his thoughts on PartsTrader

ABN: Why did you quit State Farm? Plier: I resigned my position at State Farm because my responsibilities were being defined as ‘manage in a

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio: The Original Social Media, and Most Important, is the Phone Call . . . . . . . 44 Franklin: The New Co-Op Marketing . . . . . . . 36 Gesterkamp: E-Coated Parts Procedure . . . . 34 Insider: Clean Up Your Own House Before You Gripe About Someone Else’s . . . . . . . 51 Sisk: CCRE’s Fall Seminar Covers Adhesion, Warranties, and Much More . . . . . . . . . . . 38

Sisk: The NitroTech Spray Generator Controls the Uncontrollable. . . . . . . . . . . . 41 Yoswick: NACE Keynote Speech Focuses on Thinking about Business . . . . . . . . . . . 24 NATIONAL AkzoNobel Secures McLaren Automotive Supply Agreement . . . . . . . . . . . . . . . . . . 14 ALLDATA Shows Off New Compliance Tool at NACE . . . . . . . . . . . . . . . . . . . . . . 53 American Honda Launches ProFirst Shop Recognition Program . . . . . . . . . . . . 47 ATI Expands Curriculum to Include Collision Repair . . . . . . . . . . . . . . . . . . . . 14 Automaker, OEM and Recall News . . . . . . . . 30 BASF Showcases Newest Additions to VisionPlus Online Tools at NACE . . . . . . . . 52 Collision Repair Industry Loses a Legend and a Friend, David McBroom . . . . . . . . . 20 Copart Says It is Posting Balanced Volume Gains. . . . . . . . . . . . . . . . . . . . . . 53 DEG & the Keys to Successful Estimating Presented in New Orleans. . . . . . . . . . . . . 55 Dykstra Automotive Institute Survey Identifies Broad Industry Concerns in 2013 . . . . . . . 49 Esurance recognizes Three CARSTAR shops with awards . . . . . . . . . . . . . . . . . . 55 GM Will Hire 3,000 HP Workers to Bring Info Tech Work in-house . . . . . . . . . 22 Honda Develops New Welding Technology, UHSS Structure for 2013 Accord . . . . . . . 46 How to be a ‘Courageous Leader’ Presented at NACE . . . . . . . . . . . . . . . . . . 52 Insurers Talk MSOs, Consolidation, the Cloud, and Tech Trends. . . . . . . . . . . . 37 John Shoemaker Coaches Shops to ‘Negotiate for Success’ . . . . . . . . . . . . 49 Martin Senour Kicks Off 4Q Training Program . 55 Matrix Electronic Measuring, Inc. Awarded Two Patents . . . . . . . . . . . . . . . . 46 NABC Gifts 6 Vehicles to Needy New Orleans Families at NACE . . . . . . . . . . . . . . . . . . . 54 NACE 2012 in New Orleans . . . . . . . . . . . . . . 1 NACE Sees Fewer People, But Quality Events. 26 Overhaulin’s New Season Starring Chip Foose. 43 Steve Trapp Presents Implementing Best Practices for SOPs . . . . . . . . . . . . . . 50 VW Beetle Convertible to Get Platform Shared with Jetta, Golf . . . . . . . . . . . . . . . 34 PartsTrader Coverage AASP/NJ Annual Meeting Discussed PartsTrader . . . . . . . . . . . . . . . . . . . . . . . . 4 ASA’s Caspersen Comments on PartsTrader Meetings . . . . . . . . . . . . . . . . . 3 Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’ . . . . . . 1 George Avery Spoke on PartsTrader to GCIA Sept. 20 . . . . . . . . . . . . . . . . . . . 22 PartsTrader Reduces Minimum Quote Time to 30 mins . . . . . . . . . . . . . . . 36 WMABA Sees Good Turnout at PartsTrader Meetings . . . . . . . . . . . . . . . . 53

Repairers are responsible for recommending suppliers and determining their default OEM and preferred OEM suppliers. Once a Select Service shop requests a quote on an estimate, the quoting request is sent to all suppliers whose application “preferences” match the content of the estimate. Suppliers, just like repairers, are able to set preferences. Suppliers are also responsible for setting their market area, parts type, and rates of delivery. Meeting attendees questioned why State Farm is doing this, what happens to repairers’ parts profits if this goes into effect, where is the efficiency, what State Farm sees as the future for collision claims and the size of their Select Service network—and the reigning question overall—where is the benefit to the collision repairers participating in the pilot? “We continue to present to State Farm the concerns of ASA members. If State Farm cannot provide data showing how this application benefits collision repairers (operationally/financially), ASA will respond appropriately on behalf of repairers,” said Caspersen. “ASA has provided State Farm with a timeline for data and will be meeting with State Farm to assess future actions.”

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, David Brown, John Yoswick, Rich Evans, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia Serving New York, New Jersey, Pennsylvania, Delaware

Amato Agency. . . . . . . . . . . . . . . . 36 Audi Wholesale Parts Dealers. . . . 42 Audi of Turnersville . . . . . . . . . . . . 37 Auto Data Labels. . . . . . . . . . . . . . . 8 Auto Land Hyundai-Suzuki . . . . . . . 4 BASF . . . . . . . . . . . . . . . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . 48 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 9 Chief Automotive. . . . . . . . . . . . . . 13 Classifieds . . . . . . . . . . . . . . . . . . . 55 DCH Family of BMW Stores . . . . . 19 Empire Auto Parts . . . . . . . . . . . . . 34 Equalizer Industries. . . . . . . . . . . . 32 Ford Wholesale Parts Dealers. . . . 45 Fred Beans Parts. . . . . . . . . . . . . . 56 Garmat. . . . . . . . . . . . . . . . . . . . . . 20 Glanzmann Subaru . . . . . . . . . . . . . 6 Hackettstown Honda. . . . . . . . . . . 32 Haydell . . . . . . . . . . . . . . . . . . . . . 41 Healey Hyundai. . . . . . . . . . . . . . . 14 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers. 47 Jaguar Wholesale Parts Dealers. . 54 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 27 Koeppel VW-Mazda. . . . . . . . . . . . 33 Lexus Wholesale Parts Dealers. . . 46

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. ©2012 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL ‘Tis the Season for Auto Body Technicians to be Busy . . . . . . . . . . . . . . . . . . . . . . . . . 6 100 Golfers Attend LIABRA’s 11th Annual Golf Tournament; and Meet on Labor Laws . . . 43 AASP/NJ Tradeshow Lawsuit Dismissed. . . . . 7 Allegheny Auto Body Shop Owner is Finally Evicted by Cops. . . . . . . . . . . . . . . 13 Allstate Returns to Massachusetts 25 Years Later . . . . . . . . . . . . . . . . . . . . . . 7 Body Shop Manager Hits Deer to Become His Own Customer . . . . . . . . . . . 33 Body Shop Owner, Nicholas Biondi, Dies Sept. 18 . . . . . . . . . . . . . . . . . . . . . . . 6 Body Shop Working on Patching up Popular Rt. 66 Beetle Sign . . . . . . . . . . . . 21 Brooklyn Police Bill Mother $710 to Repair Dent on Police Cruiser that Killed Son . . . . 14 Car Vs. Deer Crashes Keep New York Auto Body Shops Busy. . . . . . . . . . . . . . . 32 Carsmetics Expert Accident Repair Expands in Keyport . . . . . . . . . . . . . . . . . 17 Connecticut Body Shop Owner and Girlfriend Arrested in Murder–for–Hire Plot . . . . . . . 16 Don’t Smile for License Photo . . . . . . . . . . . . 4 Gerber Collision Opens in MD . . . . . . . . . . . . . 4 Greg Coccaro Wins Significant Appeal from Progressive Insurance, Changes Case Law. 1 H&V Collision Partners to Promote Workplace Safety . . . . . . . . . . . . . . . . . . . 16 Items Stolen from Noaker’s . . . . . . . . . . . . . . 4 Keenan’s Jingle Contest . . . . . . . . . . . . . . . . . 4 Long Branch Shop Sustains Damage from Crash. . . . . . . . . . . . . . . . . . . . . . . . . 4 New York Auto Body Owner Faces Felony Charges over State Police Vehicle Repairs. . 7 NJ Shop Donates Media Center to Rescue Squad . . . . . . . . . . . . . . . . . . . . . 21 NY and MA Dealers Sue Tesla Over Franchise Laws . . . . . . . . . . . . . . . . . . . . . 4 NY Village Board Debates Lifting Restrictions on Auto Body Use . . . . . . . . . 12 PA Bill Exempts Newer Cars from Emission Inspection . . . . . . . . . . . . . . . . . . 4 Queens Auto Shop Goes Green with New Hybrid Vehicle Certification . . . . . . . . . 9 Queens Body Shop Uncovers 50 Yr-Old Fire . 45 Recycling Grants Awarded to Pennsylvania Townships. . . . . . . . . . . . . . . 9 Sisters Buy 80-Year-Old Family Supreme Auto Shop to Keep it in Business . . . . . . . . . . . 17 Syracuse Body Shop Restores Ride for Co-Founder of Youth Mentoring Program . . 45

Reductions in parts profits was the biggest concern voiced by more than 125 collision repairers who attended two Automotive Service Associationsponsored meetings recently in Ohio centered around State Farm’s electronic parts ordering pilot. The meetings were open to everyone in the collision repair industry at no charge. The first meeting was held in the Cleveland area Sept. 18; the second in the Cincinnati area Sept. 19. Denise Caspersen, manager of ASA’s collision division, presented the elements of the pilot to date, reviewed industry concerns, and collected any additional questions, concerns and suggestions from attendees. Repairers are concerned over the pilot’s inclusion of a discounted manufacturer’s suggested retail selling price (MSRP) column. Suppliers have the option to provide a discounted MSRP along with the margins of the part and the quote price. If a supplier elects to provide a discounted MSRP along with a quote for a part, it could result in lower profit margins on parts for the collision repair shop if that part is selected. State Farm stated in July that it does not ask for discounts on parts but if a supplier provides a discounted MSRP, this data is available to State Farm.

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Contents

ASA’s Caspersen Comments on PartsTrader Meetings

Malco. . . . . . . . . . . . . . . . . . . . . . . . 7 Maxon Hyundai . . . . . . . . . . . . . . . 31 Maxon Mazda . . . . . . . . . . . . . . . . 25 Mazda Wholesale Parts Dealers . . 43 MINI Wholesale Parts Dealers. . . . 50 MOPAR Wholesale Parts Dealers . 39 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 52 Nucar Mazda . . . . . . . . . . . . . . . . . 35 Plaza Auto Mall . . . . . . . . . . . . . . . 15 Porsche Wholesale Parts Dealers. 40 PPG . . . . . . . . . . . . . . . . . . . . . . . . . 2 Pro-Spray Help Wanted . . . . . . . . 18 Reliable Automotive Equipment . . 21 Safety Regulations . . . . . . . . . . . . 24 SATA Spray Equipment . . . . . . . . 17 SCA Appraisal Company . . . . . . . 26 Scion Wholesale Parts Dealers. . . 53 Security Dodge-Chrysler-Jeep . . . 16 Solution Finish. . . . . . . . . . . . . . . . 50 Subaru Wholesale Parts Dealers DE, South NJ, PA . . . . . . . . . 10-11 Subaru Wholesale Parts Dealers North NJ, NY . . . . . . . . . . . . . . . 51 Thompson Organization . . . . . . . . 23 Toyota Wholesale Parts Dealers . . 53 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 38 Volvo Wholesale Parts Dealers . . . 44

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 3

AASP/NJ Annual Meeting Discussed PartsTrader

The Alliance of Automotive Service Providers in New Jersey held its annual meeting Oct. 11 and it included a discussion on insurance-mandated parts procurement programs, such as the State Farm/PartsTrader pilot program. According to the association, the parts procurement discussion is “the biggest issue to impact the collision industry in recent years. They have the potential of negatively impacting both your profits and the way you do business.” The meeting was considered critically important to its members to “better understand how these programs are being implemented, what feedback is stemming from the markets facing it firsthand, and how it might affect you if it is allowed to enter the New Jersey market.” Collision shops and parts vendors were encouraged to attend. Guest speaker was SCRS Executive Director, Aaron Schulenburg, who presented the most current information available and answered questions.

NY and MA Dealers Sue Tesla Over Franchise Laws

Dealers in Massachusetts and New York are suing to shut down Tesla Motors stores they say run afoul of franchise laws and consumer protection measures in their states. The Massachusetts State Automobile Dealers Association and some of its dealers filed a complaint Tuesday in Norfolk County Superior Court seeking to shut down Tesla’s store in the Natick Mall in suburban Boston. A request for a temporary restraining order was rejected, but a hearing on whether to issue a preliminary injunction is scheduled for Oct. 25. In New York, the Greater New York Automobile Dealers Association and one of its dealer members sued Tesla and the state Department of Motor Vehicles on Tuesday in the New York State Supreme Court. Tesla spokeswoman Shanna Hendriks said today that Tesla is aware of the Massachusetts action and continues to comply with municipal and state laws. She said she was not aware of the New York lawsuit. The California electric-vehicle maker, which models its retail approach on the Apple store experience, operates 18 U.S. retail locations in 11 states and DC. Company officials have said they are working within the limits of state and local laws at all locations.

Long Branch Shop Sustains Damage from Crash

An auto body shop in Long Branch, NJ, sustained structural damage from a motor vehicle crash Sept. 23. The collision occurred at 9:21 a.m., said Long Branch police Sgt. Jorge Silverio. The unidentified driver was not seriously injured and no criminal charges will be filed, Silverio said. As police investigated the crash, Neptune OEM and Asbury Park’s Special operations crew assessed the structural damaged and worked to temporarily reinforce a damaged support beam inside Auto Body Solutions. Auto Body Solutions’ employee Brian Leal, 25, said no one was inside the building at the time of the collision. “After the crash the driver was outside of the car walking around,” Leal said. “He seemed shaken up, but it looked like he was fine.” Leal said the car crashed into a garage bay door and caused damage to not only a support beam but the two vehicles parked inside the building. “We just finished painting the one on the lift,” Leal said. “We won’t be able to open until the damage is repaired.”

PA Bill Exempts Newer Cars from Emission Inspection

SEMA-supported legislation to provide a 10-year emissions inspection exemption for vehicles never before registered in Pennsylvania or any other jurisdiction was approved by the Senate. The bill now moves to the House Transportation Committee. Current law only exempts new vehicles that have less than 5,000 miles on their odometer for one year after their first registration. The bill acknowledges that it is senseless to test newer vehicles, the results of which demonstrate no significant air-quality benefits. The idea behind exempting any class of vehicles is to reduce costs while not losing appreciable emissions reductions. This strategy builds support for emissions-inspection programs, but also directs finite resources to where they will be most valuable in cleaning the air. The measure still requires that the newest 10 model-year vehicles be subject to visual anti-tampering inspections for the presence of emissions-control components installed on the vehicle by manufacturers. For details, visit the SEMA Action Network (SAN) website. For more information, contact Steve McDonald at stevem@sema.org

4 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Gerber Collision Opens in MD

Don’t Smile for License Photo

The Boyd Group Inc. recently announced the opening of a new collision repair center in Germantown, MD. The new repair center is approximately 17,000 square feet and will operate under the Gerber Collision & Glass trade name. The Boyd Group now owns and operates eight locations in Maryland, which brings the total number of U.S. locations to 153. The company’s head offices are based in Winnipeg, Manitoba. This center will serve the northwest Washington D.C. customers and insurance partners.

Folks in New Jersey are being told not to smile for their driver’s license photos. The state has banned motorists from making big smiles because such expressions don’t work with facial recognition software. The policy has gone mostly unnoticed since taking effect in January. Velvet McNeil from Sicklerville was so mad about being told not to smile that she stormed out of the Cherry Hill Motor Vehicle Commission office. After learning the reason for the policy, the 38-year-old says she’ll go back and pose with a slight smile.

Items Stolen from Noaker’s

Keenan’s Jingle Contest

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Keenan President and COO Michael LeVasseur recently announced that Brent Morgan won the Keenan Auto Body jingle contest. His slogan of “We Gotchya!” began airing as a fully produced TV commercial on several Philadelphia-based networks in October. The jingle contest was a marketing initiative to bring the body shop’s Facebook community of nearly 2,400 users together. The number of Facebook ‘likes’ increased to more than 3,200. Morgan’s jingle was selected by four Keenan corporate employees from 26 entries.

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Two rolls of copper tubing, 30 aluminum awning tubes, six aluminum vehicle rims, 10 radiators and a fivegallon bucket of miscellaneous scrap brass was stolen from Noaker’s Auto Body in Wheatfield Township, PA, sometime between 12:30 and 3:10 a.m. on Oct. 8. The suspects were driving a red extended-cab pick-up. Anyone with information is asked to contact State Police at Newport (567-3110).

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 5

‘Tis the Season for Auto Body Technicians to be Busy; PA Owner Says They’re ‘Recession Proof’ With the changing of colors come deer rutting season and that means work gets busier for auto body shops in Pennsylvania. “In the fall is when animal collisions really, really pick up pace,” said Frank Feldmann of Auto Body Technicians, who has been an owner for 22 years along Business Route 209 in Smithfield Township. The early darkness is also a big factor, as well as wintry, slick road conditions. “We’re probably recession proof. It’s like going to a doctor,” Randy Janosko told the Pocono Record Business. Janosko has worked in collision repair for 36 years and was foreman at ABT for 10 years until he bought into a share of the partnership in 2000. Auto Body Technicians expanded when it moved from a building it rented down the street with five employees to one that was built in 1995. The shop doubled its space in 2000 to 15,000 square feet and remodeled its front office area in April. Its workforce increased to 16 to 18 full-time workers who service an average of 25 to 30 cars a week. Even when work slows for a time, there are no layoffs, said Feldmann.

Half of its business is return customers. The business in the past decade “has changed dramatically,” said Feldmann, with computerized diagnostics introduced less than six years ago, pinpointing problems quicker and cutting the service time in half. As a direct repair shop, it makes for a quicker turnaround for insurance claims to be processed. Nowdays, technicians need more diverse computer skills and command of software. “It’s a pretty broad database,” Feldmann said. “Software tells you modules for safety restraints, for anti-lock braking systems. We have resources in-house to keep the job moving.” “In the past, we’d have to flatbed the car to a dealership in Lehigh Valley or New Jersey to diagnose a problem,” said Janosko, although major mechanical work still gets subletted. “There is a trend now for waterbased paints. We haven’t switched over to that but we’re considering it. We’re talking to manufacturers,” Feldmann said.

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Body Shop Owner, Nicholas Biondi, Dies Sept. 18

Nicholas A. Biondi, 83, formerly of Goshen, NY, died Sept. 18, 2012, surrounded by his family. He was born June 14, 1929, in Queens to parents Michael and Elizabeth (Dolce) Biondi. He moved to Goshen, where he lived most of his life before moving to Claryville in Sullivan County and finally Flowery Branch, GA. He owned and operated Nick’s Auto Body Shop in Middletown for 25 years, retiring in 1985. Following retirement, he worked for Lothar’s Body Shop in Middletown, NY. He honorably served in the Marine Corps 1948-1952 and served in the Korean War. He was a member of the Knights of Columbus, St. John’s Council No. 1106, in Goshen, serving as financial secretary for 33 years. An avid outdoorsman, he most enjoyed his Claryville home in the mountains and hunting with family and friends, especially his best friend Ted Mudrick, whom he met in the Marine Corps. Survivors include his wife of 57 years, Martha (Grippe); five sons, David and his wife, Lucia, of Princeton, NJ, Richard and his wife, Joyce, of Denville, NJ, Nicholas and his wife, Laurie, of Cortland, Robert of Flow-

ery Branch, GA, and Anthony and his wife, Janice, of Surprise, AZ; a daughter, Christine and her husband, Peter Wanczyk, of Florida, NY; a sister, Sara Post of Melbourne Beach, FL; a brother, Michael Biondi of Middletown; a sister-in-law, Carmel Biondi of Middletown; 11 grandchildren, Victoria, Richard, John, Jason, Nicholas, Lucas, Nicole, Noel, Allison, Kathleen and Gianna; three great-grandchildren, Kierstyn, Rieley and Hazel; and many nieces, nephews and cousins. He was preceded in death by his parents, Michael and Elizabeth (Dolce) Biondi; an infant son, Nicholas Jr.; and a brother, Albert Biondi. A Mass of Christian burial was celebrated Sept. 22 at St. John the Evangelist Roman Catholic Church, 71 Murray Ave., in Goshen. Interment was at St. John’s Cemetery in Goshen. In lieu of flowers, donations in Nick’s memory can be made to the American Heart Association and American Cancer Society.

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6 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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New York Auto Body Owner Faces Felony Charges over State Police Vehicle Repairs An auto body and repair service owner in Bedford, NY, faces several criminal charges connected to the alleged fraudulent repair of state police vehicles. Police say Brian Prato, 55, of Bedford, was part of an insurance fraud in Brian Prato of which state police Bedford charged cars were repaired with grand larceny with used parts but and insurance fraud charged for new by NY State Police ones. Prato was arrested on Oct. 4. The owner of B&B Auto Body was charged with five felonies and two misdemeanors. He faces grand larceny and insurance fraud charges brought by state and county investigators who allege they uncovered a scheme to defraud the state and the insurance company that covered state police vehicles. Police said an investigation showed Prato charged for new parts but installed used parts, including some from old cruisers no longer used. According to state police,

“The investigation found that insurance companies were paying for new parts to be used in the repairs of the vehicles as written in estimates submitted by the auto body shops. Inspection of the vehicles showed that new parts were not installed as written in paperwork submitted to insurance companies; instead used parts were used for some of the repairs on three New York State Police vehicles. In some instances, parts were taken off retired New York State Police vehicles and were used for repairs.” In addition to the fraud, police said the installation of old parts on the vehicles could have put the lives of troopers in jeopardy. Prosecutors charged Prato with third- and fourthdegree insurance fraud, fourth-degree grand larceny, attempted third-degree grand larceny, first-degree scheme to defraud, all felonies; and fifth-degree insurance fraud and attempted petty larceny, misdemeanors. Prato was arraigned before Bedford Town Justice Erik P. Jacobsen, who set bail at $10,000. Prato posted bail and was ordered to return to court Oct. 25.

Allstate Returns to Massachusetts 25 Years Later

For the first time in a generation, consumers can visit an Allstate agent in the Boston area. The insurer left the Massachusetts auto insurance marketplace in 1987—fed up with the state’s government-mandated ratemaking system. Allstate wasn’t the only insurer to leave. Less than 20 companies wrote auto insurance in Massachusetts before it switched to a “managed competition” system to allow companies to set their own rates. After years of “evaluating the atmosphere” of the new ratemaking scheme, Allstate has allowed a new agency in the Boston suburb of North Andover to open—and a handful of others are planned in the near future, says Allstate spokesman Chris Conner. “Allstate monitored the progress in the market and kept a close eye on regulation,” he says. “We feel it’s the right time for a brick-and-mortar presence in Massachusetts.” Conner says Allstate will look to recruit agency owners in the state, and says the company is willing to consider candidates from outside the insurance world. The insurer will seek entrepreneurs with management experience from various branches of the business world, Conner explains.

The insurer actually reentered the market in 2009, using agents in the neighboring states of Connecticut, Rhode Island and New Hampshire as well as direct sales. Since then, Allstate has accumulated about 1.4% of the market. The Mapfre North America Group led all private passenger auto insurers with a 28.4% market share in 2011, according to A.M. Best Co. There is no exact goal for increasing market share in the state, Conner says, but an “aggressive ramp-up” in the state is planned for 2013, he adds. “It takes a while to get the brand reintroduced,” says Conner. “Our initial efforts have been well-received. We think we can grow significantly.” Allstate joins a number of insurers who have found the Massachusetts auto-insurance market much more appealing with managed competition. Geico and Progressive have rejoined the fray as well.

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AASP/NJ Tradeshow Lawsuit Dismissed

A lawsuit against the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) was recently dismissed by a U.S. District Judge. U.S. District Judge Kenneth Karas dismissed several complaints made by Rockland Exposition Inc. in a lawsuit filed against Thomas Greco Publishing, AASP/NJ and the organization’s board members Tom Elder, Thomas Greco and Glenn Villacari. AASP/NJ said REI filed a lawsuit in 2008 after the association chose not to renew its management contract with REI, and instead move the AASP/NJ NORTHEAST trade show back to New Jersey. REI’s lawsuit claimed that AASP/NJ and the other cited defendants infringed on its rights of the “NORTHEAST” trademark. In addition, REI’s lawsuit made claims of false and deceptive advertising, trade libel and disparagement, tortious interference with prospective business advantage, and tortious interference with contract. AASP/NJ said REI was seeking injunctive relief and damages for trademark infringement, dilution and unfair competition under New York law. After four years of litigation,

AASP/NJ said Judge Karas dismissed each of REI’s claims with an 87-page opinion. “We are extremely happy that this is over. It has been a long, painful experience that has taken its toll on many of the dedicated volunteers who serve our association, and we are proud that we took a stand to make sure justice was served,” said Jeff McDowell, president of AASP/NJ. “There are many people to thank, especially board members Brian Vesley and Joe Amato. Brian has spent countless hours of his own time making sure that AASP/NJ’s interests were being looked after from day one. Joe went way beyond the call of duty to make sure we were protected from an insurance standpoint. I don’t know where we’d be without those two individuals. Our association and our industry are indebted to them.”

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Queens Auto Shop Goes Green with New Hybrid Vehicle Certification

Great Bear Auto Body and Auto Repair Shop owner Audra Fordin recently won a $55,000 grant to train her staff on hybrid vehicle certification. The shop achieved the first hybrid auto repair certification grant offered in New York City. The Flushing, NY, shop owner secured a $55,419 grant from the city Department of Small Business Services to train her staff in alternative energy vehicles. Fordin, a fourth-generation mechanic, had spent her life honing her under-the-hood skills, but realized she was ill-equipped for the influx of hightech, fuel efficient cars that were gaining traction. She froze the first time a hybrid vehicle pulled into her repair shop three years ago. “I couldn’t believe that I was afraid,” recalled Fordin, 41. “I had to send him away.” Since then, Fordin has been driven to tune up the shop that has been family owned since 1933 and make it the last time she turned a customer away. “My ancestors were working on the Model T,” she said. “Five generations is my goal.” In August, Great Bear completed the alternative energy program and received the city’s first Alternative Fuel Vehicle certification.

“The automotive industry must revamp. It’s antiquated,” Fordin told the Daily News. “This is where it’s going.” Even with the sizeable grant, Fordin forked over more than $31,000 to cover the remaining cost of the training program.

Audra Fordin and staff at Great Bear Auto Body and Auto Repair Shop achieved the first hybrid auto repair certification in NYC

Fordin said she hopes the investment will lead to contracts to work on government-owned hybrid vehicles and attract cars with expiring warranties. The days of the oil-covered technician repairing carburetors and cooling systems have given way to regenerative breaking and other technologies. “The old thinking is that a mechanic is covered in grease and dirty.

It’s not like that anymore,” Fordin said. “We need to be computer experts. We need to be IT technicians.” Officials with the SBS, which awarded the NYC Business Solutions Customized Training grant, praised the Flushing shop for its pioneering attitude. “Great Bear Auto has been successful because of Audra Fordin’s creativity and drive, and now she can continue to grow by investing in her workforce and training staff on hybrid/electric vehicles, reaching new and expanding markets,” said agency spokeswoman Merideth Weber. The Go-Green’s State University program took over one year to develop and was initially structured as a strictly online program for alternative fuel vehicles (AFV). However, Fordin requested that Go-Green Auto Centers redevelop the program to a classroom setting to bring the 13-module course into eight weeks. Both Go-Green and the city accepted the redevelopment of the curriculum and all eight technicians, including Fordin, received their State University certification. Go-Green Auto Centers developed the training program with the State University system to offer auto centers across the country certification in hybrid and electric training.

Recycling Grants Awarded to Pennsylvania Townships

More than $70,000 in Recycling Performance Grants were recently awarded to three municipalities in Cumberland County, PA, according to a release from Sen. Pat Vance, R-31. The grants are based on total tons recycled and the municipality’s population for calendar year 2010. Those receiving grants were: • East Pennsboro Township: $39,430 for 2,929 tons recycled. • Lower Allen Township: $29,081 for 2,751 tons recycled. • Mt. Holly Springs Borough: $3,980 for 290 tons recycled. “Interest in recycling by Cumberland County residents remains high,” Vance said. “Those who are highly committed can greatly reduce the trash they produce that ends up in landfills. These grants provide an extra incentive to continue separating trash from recyclable materials.” The grant helps Pennsylvania communities increase their recycling rates and meet the statewide goal of recycling 35% of all municipal waste, according to Vance. It is in addition to funds that the Department of Environmental Protection allocates to municipalities to establish and maintain recycling programs.

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NY Village Board Debates Lifting Restrictions on Auto Body Use An auto body shop owner in Mineola Village in New York has hit a speed bump with plans to expand his business, Gullwing Motors. In mid September, the Mineola Village Board delayed making a decision on an application for a new auto body shop at 380 Sagamore Ave. to review a 2006 village law that specifically prohibits a body shop at the location. Louis Palumbo, owner of Gullwing Motors at 100 Windsor Ave., in May purchased the large building which was previously the site of an autobody repair shop, in order to split the work his shop does into two separate divisions: restorations and repairs. Palumbo had been leasing the property, but he said he now intends to use the site for specialized restoration work on antique and classic cars. “My intention is to separate the restoration portion of the repairs on the cars across the street so that we can keep them separate,” Palumbo said during a special use hearing of the village board on September 12 at the village hall, “because there’s a lot of dust. We want to keep Gullwing with the auto repairs as far as we can... and the restoration portion of the business would be done across the street.” Palumbo said that his business is expanding, particularly in terms of classic cars, adding that he can also conduct body repairs should his customers desire, but that he is not actively targeting that market. “I have enough business with the restoration,” Palumbo said. “I’m very busy with that. It’s the same thing we’ve been doing for the last 35 years, the only thing is we’re getting more restoration work so I want to just separate the two so we can move it along a little quicker. Things can be more like an assembly line instead of getting things in each other’s way.” Additional workers would be hired to operate the new facility. There are currently no lifts or springs in the building now, but Palumbo intends to add a spray booth in the new facility, which he reportedly does not have in his current location. Such a booth would necessitate the application for a fan and respective permits for other equipment in use for a spraypainting facility. Palumbo asked the board to remove a restrictive covenant placed on the site six years ago after the prior owner sold the property. The Mineola Village Board restricted another auto-

motive repair business from operating out of the location. In May, 2006, the board imposed the restriction against permitting another body shop at 380 Sagamore Ave. after giving approval to its previous owner, John Alden, to move Barron Body Works to a larger building at nearby 381 Sagamore Ave. The restriction was that the former location would no longer be used as an auto body shop in perpetuity in exchange for a new special use permit at their new location. Attorney Marco Silva, representing Palumbo, said the restriction had its intended effect at the time but he doubted the board intended it as a long-term restriction. Though village trustees Lawrence Werther and Paul Cusato were both on the board at the time of the restriction, neither could recall why the decision was made. The property at 380 Sagamore Ave. has been transferred twice, including its most recent use as a Bina Office Furniture storage warehouse and is now being used as storage for 12 cars, according to Silva. He added that while no violations have occurred, there was confirmation of the issuance of a notice of violation for parking cars on the premises for storage. Silva stated that Palumbo was aware of the restriction before the property was purchased by him, but went ahead with the purchase anyway. Harry Kutner, representing Robert Alden, the owner of Barron Auto Body, who sold the property in 2006, stated that Palumbo “bought this eyes open. He knew coming into this piece of property that this particular use in inappropriate. The village imposed this restriction for a set of reasons in 2006, they haven’t changed one iota: they wanted to limit the number of auto body shops in that area.” When Mineola Deputy Mayor Paul Pereira asked Palumbo why he bought the property knowing of the restriction, Palumbo said, “It’s an industrial zone. I thought there would be no problem in getting a variance.” Silva admitted that his client took a chance on the purchase, “but it’s a calculated chance. Clearly the board that puts the restrictive covenant on it has the power to undo it. I understand what they were trying to do at the time and I think they probably went a little too far because this is potentially permanent and that can’t possibly be the

12 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

intent because as I said, it sort of creates a situation where you are making competition impossible and that could not have been the purpose.” Kutner said he negotiated the restrictive covenant with deputy village attorney Benjamin Truncale in 2006 and said circumstances in the area were unchanged. Truncale said the restrictive covenant was passed as condition of approving Barron’s move to its present location. “He knew this particular use was inappropriate,” Kutner said of Palumbo. “[The board] wanted to limit the number of body shops in that area.” Kutner negotiated the restrictions with the village in 2006 since Alden wanted to move to a larger facility. The negotiations ended in an agreement saying that in exchange for moving across the street, Alden could no longer use the property at 381 Sagamore Ave. as an auto body shop. He added that “nothing” has changed since 2006 and that Alden sold the property for about 60% of its estimated $1 million value to Bina instead of accepting offers from other auto body shops.

Alden said he could have sold the property for more than the $600,000 he got from a furniture company that had since vacated the location if the building could have housed an auto body business. “My problem is not with Mr. Palumbo to restrict his business. My problem is to me I have a loss,” Alden said. In response, Pereira said that, “I would think that future boards have the right to govern as they see fit at that time and what they believe is in the best interest of the village. I’m sorry Mr. Alden if you sold it for 60% less, but that frankly, is not our issue. If there were perspective buyers who wanted to put in an auto body shop, perhaps they should have asked that board at that time, maybe the answer would have been different. I take exception to the fact that ‘nothing has changed since 2006.’” It was stated that there is spraypainting currently going on at the site, but Alden could not produce any hard evidence confirming the behavior. Building superintendent Dan Whalen stated that he did not observe any See NY Village Board, Page 14

Allegheny Auto Body Shop Owner is Finally Evicted by Cops He’s known for a long time that this day was coming, but Pittsburgh Police and Allegheny County Sheriff’s deputies finally had to evict William Leiberth, Sr., the last holdout on the Route 28 expansion. As the last business owner standing along the Route 28 work zone, Leiberth, 56, was told by deputies on Oct. 1 that his auto body business is closed and that he must leave the property William Lieberth that for almost four decades has been home to his family’s shop, Allegheny Auto Body. A court order was issued on Sept. 10, that said should the plaintiff fail to vacate the premises the sheriff is directed to evict or remove the plaintiff. PennDOT, in the midst of a project to expand Route 28, first contacted Lieberth in 2007 about acquiring his 7,000-square-foot Allegheny Auto Body shop and 7,000-square-foot adjacent parking lots on East Ohio Street, land that the agency said is necessary to complete the road project.

But even as PennDOT reached relocation agreements with 15 other residences and 24 business along Route 28, Lieberth refused to go. In November 2011, PennDOT took ownership of the property by eminent domain and sent Lieberth $120,000. A dispute about the value of the property went to the Board of Viewers, a board within the Court of Common Pleas that handles appeals of property assessments, in April. The board determined the value to be $215,000. Both Lieberth and PennDOT appealed, but in July, PennDOT sent Lieberth a letter stating he must vacate the building by Aug. 6 so road work can proceed. An attorney for Lieberth reached a settlement with PennDOT in August, agreeing to a total payment of $245,000 and a delay in vacating the property until Oct. 1. However, Lieberth maintains he never agreed to the settlement. Three weeks ago, an Allegheny County judge ordered him to accept the settlement, pay his former attorney his fee of more than $30,000 and va-

cate his Route 28 auto repair business by or on Oct. 1. Lieberth said sheriff’s deputies took his keys and gave him a check from PennDOT for $97,237.94. Lieberth maintains he is owed $80,000 to $100,000 more, but a spokesman for the agency said there is no more money owed to Lieberth, unless he incurs relocation expenses.

After a long fight, William Leiberth, Sr. is evicted from his location along the Rt. 28

On the morning of his eviction, officers watched Lieberth, his wife, and their two sons moved papers, tools and items from the shop. A police dog searched the area, and two PennDOT employees later entered the building. A tow truck arrived to take away the last car to get auto body work at Al-

legheny Auto Body – a 1990 GMC Jimmy truck with a broken transmission owned by Lieberth. His 35-year-old son, Bill Lieberth Jr., had completed the truck’s red and white paint job. Lieberth, Sr. thought he had until the end of the business day to vacate. “I got your check, give me your keys, we own the building and you’re going to be out of here in a couple minutes. They did give us half an hour. They did let me get my truck,” Lieberth said. Bill Lieberth Jr. used to think that his sons, now ages 6 and 3, would work with him eventually at the same shop where he worked with his dad for 18 years. “I don’t even know what I’ll be doing tomorrow,” he said. Lieberth, Sr. is currently looking for another property in order to do business.

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Continued from Page 12

NY Village Board

spraypainting on the premises at the time of his inspection. Silva said that the new spraybooths are “a very different thing” than the stereotype, as new ones are filtered and completely sealed and are cleaner, not allowing particulates to leak out of the facility. Mineola Mayor Scott Strauss asked Alden if he had evidence to support his claim that painting had been taking place. Alden said he didn’t have any proof. Daniel Whalen, superintendent of the village Buildings Department, said his department was made aware of cars being stored in violation of the restriction and issued a notice of violation to Palumbo. Whalen said he didn’t see painting taking place on the site. Attorney Harry Kutner, representing Alden, said his client had seen body painting at the 380 Sagamore Ave. location. Kutner said the body painting was a violation of state environmental law. He said Palumbo had been cited by the village for a violation. Village attorney Ben Truncale requested a continuance of the hearing to

review the legal notes and research the rationale behind the issuance of the initial restriction and the decisions made on the property before a vote is held. Pereira took issue with Kutner’s contention that circumstances had not changed since 2006. “There have been changes since 2006, namely that three members of the board were not sitting there,” Pereira said, adding that he hadn’t been in on the 2006 decision. “Future boards have rights to govern as they see fit,” he added. Strauss supported Pereira, saying, “We can change this whenever we want.” Sandra Correia, who resides on nearby Pennsylvania Avenue, said area residents are already concerned about noxious odors from the auto repair shops on Sagamore. “We just want to make sure it’s properly operated. We do have issues with smells at the moment. We just want it to be safe. That’s our main concern,” she said. Strauss suggested the board review the 2006 board decision before making a determination on Palumbo’s application and the board unanimously voted to do that.

AkzoNobel Secures McLaren Automotive Supply Agreement

AkzoNobel has signed an agreement to supply advanced paint technology to McLaren Automotive, building on the success of the existing corporate partnership with the Vodafone McLaren Mercedes (VMM) Formula 1 team. Through its Sikkens automotive brand, AkzoNobel has been the official supplier of paint solutions to VMM since 2008. The new agreement now extends this relationship to include road cars and will see the company offer technology-led paint solutions for the MP412C and MP4-12C Spider, as well as the P1 when it enters production. “We’re proud to have been selected to supply paint for McLaren’s road cars,” said Keith Nichols, AkzoNobel’s CFO. “The extension of our technology partnership to include road cars confirms that our color excellence and advanced coatings meet the most stringent customer requirements. Whether we are perfecting a particular finish or meeting the need for fewer layers of paint, offering a competitive advantage and building strong relationships such as this are vital for our business. We therefore look forward to an ongoing and mutually beneficial cooperation with McLaren.”

Brooklyn Police Bill Mother $710 to Repair Dent on Police Cruiser that Killed Son

The family of a dead man, killed by a police cruiser, have responded with fury to a bill sent to them for $710 to cover the damage his body did to the car, according to the Daily Mail Reporter. Tamon Robinson was fatally hit in April during a police chase in Brooklyn. He had been caught digging up paving stones outside his Bayview Houses home in Canarsie and was fleeing on foot when the car smashed into him, causing blunt impact head injuries. The 23-year-old slipped into a coma upon the moment of impact from which he never awoke and he died six days later. According to news reports, a large dent in the side of the patrol car that hit Robinson prompted a demand to his family. The letter from the New York Police Department asked the family to pay $710 for “property damage to a vehicle owned by the New York Police Department.” Failure to do so within 10 days, it continued, would result in a lawsuit. “We’re still grieving, and this is

like a slap in the face,” Robinson’s mother, Laverne Dobbinson, 45, told the New York Daily News. “They want my son to pay for damage to the vehicle that killed him. It’s crazy.” Incensed by the police force’s actions, Dobbinson sought legal advice of her own and intends to sue the city. Sanford Rubenstein, her lawyer, called the bill a ‘disgrace’ in his filing, warning the NYPD not to do any repairs to the damaged car. Dobbinson has further complaints about the way in which her son was treated by officers in the hours after he was struck by them. Lying brain–dead in bed, Robinson was shackled to his bed under police guard, his mother only allowed to visit him for 20 minutes. The city medical examiner ruled Robinson’s death an accident but the incident remains under investigation by the Brooklyn District Attorney, as well as the NYPD’s Internal Affairs Bureau, over witness allegations that Robinson was deliberately run over. New York City officials have since apologized for sending the collection letter.

14 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

ATI Expands Curriculum to Include Collision Repair

Automotive Training Institute (ATI) has announced plans to expand its training curriculum and coaching system into the collision repair industry. “For nearly 30 years, ATI has been helping thousands of automotive repair shop owners increase their profits, reduce stress and grow their businesses into the companies of their dreams,” said Chris “Chubby” Frederick. “We recognize that collision repair business owners can benefit from our experience and expertise in business training, coaching and consulting services to improve their businesses Tom McGee in this highly competitive market. We are extremely pleased to have Tom McGee, director of ATI Collision, join the ATI team to lead the development and introduction of the ATI Collision program.” McGee brings more than 30 years of experience in the collision industry to the ATI team.

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Connecticut Body Shop Owner and Girlfriend Arrested in Murder–for–Hire Plot

An auto body shop owner and his girlfriend were arrested in connection with a murder–for–hire plot in Milford, CT. Gregory A. Christofakis, 50, and his girlfriend, Ziba Guy, 44, were arrested Oct. 4. The couple planned to solicit the assault and murder of two people, police spokesman Officer Jeffrey Nielsen said in a news release. New reports said the intended targets of the murder–for–hire were Christofakis’s estranged wife and Guy’s ex–husband. Christofakis, owner of Greg’s Autobody & Sales in Milford, is being charged with criminal attempt to commit murder and conspiracy to commit first-degree assault. Guy was charged with conspiracy to commit first-degree assault. Christofakis was held in lieu of $1 million bond, and Guy was held in lieu of $500,000 bond. They are both due back in court Oct. 23. Christofakis and Guy, both former Milford residents, now live in Orange. Christofakis previously owned Trumbull Auto Body in Bridgeport before moving his business to Milford six years ago. According to news reports, Christofakis has a long list of priors, including threatening and disorderly

conduct. His divorce case was set to go to court a week after his arrest. In December 2011, Christofakis was charged with two counts of threatening after police said he threatened to kill his wife and her attorney. A restraining order barring Christofakis from contacting his wife was issued in 2011. According to the arrest warrant application in that case, on Nov. 30, Christofakis, who had been living at the Hyatt Hotel in Milford with Guy, obtained a restraining order against his wife and moved back into their Milford home. Jacqueline Christofakis told police that when a state marshal served the order, he told her Christofakis and Guy would live in the basement of the house. Jacqueline Christofakis went to police to apply for a protective order after that because she said she feared for her life. Jacqueline Christofakis said that around Nov. 7, 2011, during an argument over money, her husband said he was going to burn down their house with her still in it if she didn’t pay the mortgage or move out. A few days later, according to the affidavit, Jacqueline said her husband told her if he got arrested because of her, he would kill her and her attorney when

16 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

he got out of jail. Christofakis didn’t immediately report the incident to police because she was afraid of her husband, she later told police. The threatening charges are pending against Christofakis. In August 2012, Christofakis was arrested again and charged with violating the protective order. Police said at the time that Christofakis, while “operating a vehicle in an erratic manner on New Haven Avenue,” drove too close to a car occupied by his wife and performed “an unsafe passing maneuver.” That charge is also still pending. Christofakis had been due in court on Oct. 15 in Milford. Christofakis has a lengthy criminal record dating back to 1992, according to court records, including convictions for third-degree assault and drug possession. Guy’s ex-husband told news reporters that he isn’t surprised by the news and that she had been arrested last year for threatening his life. The couple work together at Christafakis’ business, Greg’s Autobody. Guy is a former doctor who practiced as an obstetrician and gynecologist in New York, but did not practice in Connecticut. Reportedly, Guy sold purses out of the body shop.

H&V Collision Partners to Promote Workplace Safety

H&V Collision Centers of New York, the largest independently owned collision repair company in the capital region, partnered with state, federal and local departments to ensure workplace and fire safety on Oct. 24. The fire training was conducted by the state Department of Labor, along with the federal Occupational Health and Safety Administration. The training took place at the H&V Collision Centers location on Oakwood Avenue. “H&V Collision Centers places a great emphasis and value on safety,” said H&V’s Vartan Jerian Jr. “This training will help ensure H&V has the safest possible locations for our customers and employees. We appreciate the help from our partners in state and federal government, along with our local fire department, in helping H&V meet our very strict standards of safety.” The training by the state Department of Labor is part of a voluntary state program that offers assistance to companies in improving safety and compliance. Additionally, H&V has improved safety and environmental compliance by switching to greener, less toxic paints.

Carsmetics Expert Accident Repair Expands in Keyport

Carsmetics Expert Accident Repair has opened their fifth location in Keyport, NJ, servicing local residents in Hazlet, Aberdeen, Mattawan, Old Bridge, Clifford Beach and Union Beach. The new location is between Route 35 and Route 36, just a half mile from the Garden State Parkway, in a 7500-square-foot repair facility. Their focus is on repairing drivable damage in 1-2 days. Carsmetics repairs panels, bumpers, fenders, hoods and wheel rims, making them look new again. They offer a lifetime warranty and a promise that the car’s paint color will be matched perfectly. Carsmetics has partnerships with 3M and DuPont and uses green products such as DuPont Waterborne Automotive Paints. “If you can drive it, we can fix it,” said General Manager Danny Gomes. “We’re known for repairing rather than replacing parts. We keep the original part in tact when possible to save the customer time and money. Damage is repaired in one day, where the industry typically has very long delays for lighter collision repair.”

Sisters Buy 80-Year-Old Family Supreme Auto Shop to Keep it in Business The auto body industry has When it looked like Supreme Auto Body at 2011 Walbert Ave, in Allen- changed a lot from when their father town, PA, was going to have to close it and brother ran it, but the sisters say doors, sisters Diane Holzman and relationships between insurance comTina Mellenberg decided they would panies and repeat customers are still step up and keep it going. After all, the key. They have been working hard to business has been in the family for 80 re-establish their foothold in the maryears. They purchased the business from their brother, Michael Fonzone Jr., who had run it since their father, Michael Fonzone Sr., passed away in 1987. The shop was founded in 1932 by their uncle, Joseph Fonzone. When Holzman and Mellenberg bought the company, it had been closed for a couple months and the employees, many of whom had worked their entire careers at Supreme, had been let go. The sisters, who quit their Sisters Tina Mellenberg and Diane Holzman own and careers in other fields in order operate Supreme Auto Body to reopen the shop, were able to ket because many clients went elserehire all 12 employees. “We didn’t think it was time yet where when the shop was briefly for Supreme to stay closed,” Holzman closed. “This business has changed said. So Holzman now heads up oper- rapid fire within the last five years,” ations for the company and Mellen- Mellenberg said. “The capacity and berg concentrates on bookkeeping and insurance companies are very competitive.” sales.

Once the largest shop on the East Coast, Supreme Auto Body still has its stellar reputation and talented staff. And for many locals it will forever be home of the “Fender Dent-ist” – an advertising campaign with a logo that is now trademarked. It is a full-service shop with a 15,000-square-foot shop filled with state-of-the art equipment. Supreme offers collision repair, refinishing, painting, 24-hour towing (it’s free from the scene of an accident) and even some maintenance services, like oil changes and brakes. They are also the preferred vendor for many local entities like South Whitehall Township, the Diocese of Allentown and Service Electric. “It’s the people that make the difference,” Mellenberg said. “All shops have the same equipment but we take pride in what we do and our staff has basically no turnover.” The shop has been in the same spot since 1932.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 17

Continued from Cover

Steve Plier

perfect world by numbers.’ More often than not, in this industry, reality is much different than the perfect world. Reports/scorecards of repairers are formed through a perfect world computerized format. For example: new parts can and are often damaged in shipping, causing returns and delays; used parts often are not of quality to be used in the repair process; vehicle owners often leave their vehicles (that are safe to drive) at repairers on Fridays because a claims representative has ok’d a rental. These examples are only a few that come to mind that can affect a repairer’s scorecard. Some of the numbers/averages on the scorecard include formulas that have key performance indicators in a weighted format that could never be explained as how the particular number/average score was determined. Not a comfortable situation when attempting to discuss a repairer’s performance considering we do not live in a perfect world.

ABN: What do you think of the PartsTrader pilot program? Plier: My opinion of the Partstrader program is not positive. The information provided to me by repairers on the program, from individuals that were in meetings with State Farm employees during the test pilot roll out in Alabama, the information that is being provided by the many different publications and the information provided by State Farm Consultant George Avery at the recent Georgia Collision Industry Association meeting indicate to me there are a lot of questions that State Farm and/or PartsTrader either refuse to answer or do not have an answer for. I would suggest everyone to consider if something is mandated, why is it being mandated? Items, programs, actions, etc. that have to be mandated usually have a lot more bad for a large multiple sectored group than good. Is this the reason the portion of the Select Service agreement is being actively enforced on this program? Any repairer on the Select Service program agreed if requested/required by State Farm to use a parts locating/procurement program they would. There are several others sections within the Select Service agreement with the same type language that repairers have agreed to.

ABN: Why do you think State Farm introduced this program? Where do you think State Farm is going with it? Plier: I feel there are multiple reasons. First and for the immediate time, I feel State Farm was aware of manufacturers offering parts pricing match programs and believed the implementation of a program such as PartsTrader could lead to suppliers taking an aggressive approach to expand business by reducing prices in a bid/quote program such as this. However, I believe the bigger purpose here is if successfully implemented, this would open the door to the other sections of the Select Service agreement requiring additional actions from repairers as agreed to such as this.

ABN: How do you think the program will affect the industry? Repairers are saying this pilot program is inefficient and costs them more than its worth. Plier: I feel if State Farm is successful with this program resulting in mandated use of locating and procurement systems, the balance of the insurance industry will quickly follow with the same or similar programs. My opinion is this will not be good news for the consumer. I know State Farm is saying this is intended to be focused on claims expense and no one should be against anything that might result in reduced cost, and according to State Farm, a possible reduction in premiums for policyholders. I am currently a State Farm policyholder; I definitely want my premiums to be as cheap as possible, but even more importantly, I want my vehicle repaired properly. For repairers to keep up with the ever-changing technology, training is a must. Equipment requirements must be maintained so if programs such as this affect industry members’ ability to meet these needs it is not good. I have read and heard Mr. Avery say State Farm does not want to tell repairers who to buy from, but I have not heard State Farm address the actual inefficiencies that to date I have seen this program cause to repairers and other inefficiencies I have been told of by repairers. There does not seem to be any concern from State Farm and/or Partstrader that this program does indeed have an additional labor and administrative time/expense associated to it for the repairer and supplier. I read in an article, that

18 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

according to the writer, the repairers they had spoken with suggested an average additional 30 minutes per day. The repairers I have spoken with in Birmingham suggest to me they approximate spending an average of an additional 30 minutes per claim. Birmingham repairers note you may have some claims that only require an additional five to ten minutes of additional time, but you also have those claims they may require an additional hour of administrative time. I have not spoken specifically with any parts suppliers on the PartsTrader list, but feel any supplier on the Partstrader list is also incurring additional administrative time and expenses if they are following the rules of the program.

ABN: Does this program offer any benefits to the repairers? Plier: Based on the current information provided and from the feedback received from Birmingham area repairers, I have not been able to identify what I would consider a benefit for a repairer on the program. State Farm has stated they have received positive feedback from their evaluations, the only

thing is, to my knowledge, State Farm has not to this date provided a single item with the industry that can be viewed as positive feedback. If there has been anything positive for the repairer, I have not heard nor have I read about it. ABN: With repairers highly wary of the program, what do you think the solution is? Plier: I feel the distrust and confrontational nature of this industry between the two parties are much deeper than this program. I am not sure there is a simple solution for this issue if all sides must benefit. If attempts are made to identify efficient alternatives, both sides must work together to identify the many different possibilities. There already exist electronic ordering opportunities used by many repairers, so if there is ever to be a solution that all sides agree to, I feel there will be multiple businesses/ venders to choose from. I do not feel mandating a particular program is the answer. ABN: Was State Farm too aggressive in launching this program? Plier: Considering the information

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that has been provided to the industry, ‘yes.’ I do not believe the details had been thoroughly reviewed and considered.

ABN: What does it suggest to you when State Farm can’t come up with a single benefit to repairers? Plier: Maybe because there is not a single benefit associated to the shop in regards to this program. I believe if State Farm had identified benefits for the shops and or the suppliers, we would all have heard about them by now.

ABN: What kind of damage control could State Farm do now? Plier: I’m not sure there is a definite single thing that could be focused on here. There are many issues in the repair industry that need to be addressed for the “RIGHT REASON”—the consumer. Many of these issues have been around for many years, but have never been addressed. As rules identified in repair agreements continue to expand, the magnification of the many issues grow. For example: the need for an independent third-party survey process to identify a competitive pricing range; the agreement that the repair procedure pages are not pick and choose, but will be honored completely at all times, just to name a couple.

ABN: What should affected shops be doing right now about PartsTrader? Plier: My recommendation would be for each and every repairer on the Select Service repair program or any repair program to review their program agreements and then reread them again. List questions or concerns identified in the agreements and contact the particular insurance company to discuss any questions or concerns. After any discussions, make a business decision based on consideration of all factors of what you feel is in the best interest of your business.

ABN: What is the background of State Farm’s previous efforts on this issue? Plier: State Farm had a trial program in California and Indiana in 2009, but discontinued the program after Chrysler filed for bankruptcy and GM accepted a government bailout in 2009. The trial was structured differently then as compared to the PartsTrader program now.

Collision Repair Industry Loses a Legend and a Friend; McBroom Passed Away Oct. 11 Dave McBroom February 16, 1945 – October 11, 2012

The collision repair industry is mourning the loss of Dave McBroom, president of the Florida Autobody Collision Alliance, and friend, brother and mentor to countless people whose lives he touched. William David “Dave” McBroom passed away peacefully on October 11, 2012 in Jacksonville, FL, at the age of 67. A native of Cookeville, TN, and a graduate of the University of Tennessee, Dave served in the U.S. Army for 21 years and was a decorated helicopter pilot in Vietnam before retiring as a Colonel. Dave was also president of Sunbeam Autobody in Jacksonville and was committed to raising the professional image of the collision repair industry. Through Dave’s leadership and passion, the Florida Autobody Collision Alliance was formed and grew from three body shop owners having coffee once a month to more than 400 members in six chapters throughout the state. “FACA’s members and board of directors grieve Dave’s untimely death and extend our deepest condolences to his wife Terri and his entire family,”

About CARE Plier started his business, CARE, in 2010 after leaving State Farm. His goal, focus and efforts with Consumer Auto Repair Excellence, Inc. has been to assist repair facility owners and manager with a better understanding of simple business principles, such as understanding their business operating cost and the importance of quality control programs, and to understand simple things involved in the repair process, that if itemized, they should and could be compensated for by the majority of the insurance companies. The services provided by CARE also involve assistance to repairers by investigating issues and questions that repairers encounter and providing documentation to back the recommended positions. Plier assists repairers with identifying possible solutions that would be beneficial to the industry and in particular focused on what is appropriate and in the best interest of the consumer.

Steve Plier, President Consumer Auto Repair Excellence Inc. www.consumerautocare.com 205-623-9307

20 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

said Cathy Mills, FACA’s executive director. “Dave was an absolute role model—a caring friend, a supportive husband and loving father and grandfather, and a passionate industry advocate. Our lives will be forever changed with his passing.” “I have lost a very dear friend,” said Chuck Sulkala, executive director of the National Auto Body Council. “Dave’s ever present greeting of ‘what can I do to help you today’ will be my pleasure to ask of others I now meet. I Dave McBroom am sad beyond belief and he will be missed deeply. May Dave’s legacy be with us forever.” “Dave McBroom was an amazing, inspiring individual,” shared SCRS executive director Aaron Schulenburg. “His membership, his peers, and his friends flocked to him. He had a lifetime of well earned experiences that gave him the apt ability to tell an inspiring tale on just about any subject matter, and a compelling kindness in his disposition that offered a charisma held by few. His passion for

the industry, for what is right, and for living life to its fullest was unparalleled and it is an immeasurable loss for all of us.” Dave leaves behind his wife Terese “Terri” Walker McBroom, sister Marilyn Joyce “Joby” Cloutiaux; children Kevin McBroom (Pam) of St. Augustine, FL, Stephanie Nelson (John) of Cookeville, TN and Amy Helms (Alan) of South Carolina; niece Shayne Harris (Kirk), nephew Robin Trousdale (Sonia); grandniece and nephew Ashley Pelfrey and Clayton Hopper. As “Pap,” he will be missed by his adoring grandchildren Andrew, Isaac, Kingston, Winston, Ally, Abby, Lily, Lyla, William, Ashlyn, and Lexy. Funeral services were held Oct. 18 in the Chapel of Hardage-Giddens Funeral Home of Mandarin. Interment will be held at a later date in Double Springs Cemetery of Cookeville, TN. In lieu of flowers, the family requests donations be made in memory of Dave McBroom to Hubbard House Women’s Shelter, Attn: Development, P.O. Box 4909, Jacksonville, FL 32201, or Concerns of Police Survivors (C.O.P.S) 5530 Beach Blvd, Jacksonville, FL 32207.

Body Shop Working on Patching up Popular Rt. 66 Beetle Sign Auto body shop owner Al Furney, owner of Excel Auto Body along Route 66 in Salem Township, PA, is working on patching up the distinctive and popular 1960s era double–front VW Beetle that has been a Route 66 landmark for years. The Volkswagen Beetle that sat atop a 20-foot pole at Excel Auto Body

mounted outside his shop near Delmont, but he’s working on it. Furney’s vehicle is the second to be on the pole. The original was put there in 1970 by Excel’s original owner, Ed Britz, who wanted to advertise his new shop along what was then a less-traveled Route 66 North. Back in 1968, Britz needed something

This 1960s era double-front VW Beetle has been a Route 66 landmark for years

Excel Auto Body owner Al Furney is patching up the distinctive landmark that has sat atop a 20-foot pole in front of his shop since 1970

has been missing for two years —and motorists still miss seeing the blast from the past. “Everybody’s calls and asks when it’s going to be back,” said Furney, owner of the shop since 1979. For the time being, the Beetle — which is actually the front ends of two similar 1968 vehicles welded together at the doors — is sitting on a frame mount in Furney’s shop. He has no idea when he will able to have it re-

to catch the attention of customers having a tough time finding his new body shop. With little money to spare, Britz used what he had — two wrecked Volkswagen Beetles — to craft a sign that would become not only a symbol of his business, but a cherished landmark along Route 66 in Salem Township. “I had two VWs sitting there, just junk, and I decided to put the two front ends together and make a sign,” the re-

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tired Britz recalled. “On that July day when the crane lifted the car onto its perch, traffic stopped both ways.” Britz welded the fronts of the two cars together — facing in opposition directions — to form a single General Motors Hawaiian Blue Beetle that he perched atop a pole outside his business. In no time, the whimsical sign became a conversation piece. “Back then that was really unusual,” he said. ‘Now, anything goes.” Years of stormy weather, road salt and debris from passing trucks caused the original to rust. “I put a brand new one together and switched them in a week [in the mid-1980s],” Furney said. “No one knew it was a different car.” He is now patching up that second car, doing body work, putting new panels in the floor and painting the vehicle Hawaiian blue. “It’s a unique body creation,” he said. When he rebuilt his Beetle, almost 30 years ago, it was easy to find the body parts in junk yards. To refurbish the car now, he is ordering many parts, such as fenders, hoods and front nose pieces from a supplier in California.

NJ Shop Donates Media Center to Rescue Squad

New Jersey body shop owners Frank and Tracy Constandi have been long-time supporters of the local rescue squad’s community CPR and first aid classes by always being among the first businesses to help underwrite the courses so they can be free to the public. Frank’s Auto Repair and Auto Body donated a 55” HDTV and associated hardware to the squad training program. “The Rescue Squad volunteers do such great service for our community, we were happy to help,” said Tracy, who is the newly elected president of the Fanwood Business and Professional Association. Frank, a former volunteer fireman, is the treasurer. At a time when the squad’s expenses are rising and state funding for volunteer EMT training has all but disappeared, the squad decided to appeal to supporters for assistance in purchasing this fairly expensive item. “The new TV will be used to teach these community courses and other courses given to our EMTs and others,” said Tom Kranz, rescue squad captain, who has taught a number of community CPR and first aid courses, all of which use video.

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George Avery Spoke on PartsTrader to GCIA Sept. 20: Parts Margins “Not Guaranteed to Remain” As Are The Georgia Collision Industry Association met on Sept. 20 and hosted guest speaker George Avery, State Farm’s claims consultant. Avery gave information about the PartsTrader parts procurement pilot program to a crowd of approximately 130, some of whom had traveled to the meeting from Birmingham, AL, one of the test markets. “Mr. Avery gave an overview of the PartsTrader program and why they started the pilot program,” said GCIA Executive Director Howard Batchelor. “He said that they spend roughly $3 billion a year on parts and needed a way to control the cost. The meeting was mainly subdued until the Q&A session at the end. Many of the attendees wanted to know how this benefits the shops. There [was concern about] additional administrative duties for both the suppliers and the shops.” Avery also talked about some of the enhancements State Farm has created since the pilot began. “The estimating systems have created an interface that will update the prices on the estimate. They have also cut the time to respond from two hours down to 30 minutes. Several shops from Alabama also attended and said that PartsTrader needed to work out some of the bugs before they implement the program in other areas. Some of the attendees also mentioned they are willing to try the program but asked ‘If this program does not work for me, am I able to quit using it?’ and George replied that ‘This is a business decision that each shop should review and evaluate on its own merits,’” Batchelor reported. Steve Plier, President of Consumer Auto Repair Excellence, Inc. (CARE), a consulting company based in Birmingham, AL, was also in attendance taking notes. (See interview with Plier this issue.) CARE is a company focused on the auto repair industry with its primary focus assisting repair facilities with basic fundamentals and basic business principals that are often overlooked resulting in diminished compensation and profits for the repair facility. Plier said the first number listed in Avery’s PowerPoint presentation was “$3 billion” which Avery stated was the amount State Farm ‘gives’ to the repair industry for parts in a year. Later, during the Q&A, a member of the audience spoke up and said he took offense to Avery’s statement of “giving” as the $3

billion actually refers to the amount of parts purchased, not given. Avery’s slide presentation indicated that State Farm holds 41 million automobile policies and the insurer handles an average of 32,000 claims each day. State Farm had 20,000 Service First repairers at the peak of the old Service First program compared with approximately 10,300 Select Service providers in the Select Service program today. Avery noted that 63% of all claims are handled through Select Service, with the lowest percentage of 17% of

provements in the electronic process and two of the test market areas now are operating on a 30-minute bid window. Avery also noted that the number of repairers in the Chicago metro area, the fifth and final test market who are expected to test the PartsTrader program in December, will outnumber the total number of repairers currently on the pilot in the other four test markets combined. Plier reported that during the Q&A, the first question asked came from a frustrated individual about a slide from Avery’s presentation show-

claims being handled through Select Service in Long Island, NY. “Mr. Avery spoke of meeting with different large providers discussing where the majority of delays occurred and noted the response centered on parts delays and that by assisting the industry and improving cycle time to reduce the time of repairs by one day would reduce State Farm’s rental expense by $43 million for each day of cycle time reduced,” Plier reported. State Farm originally piloted a parts procurement program back in 2008/2009 but it was discontinued when Chrysler filed for bankruptcy and GM accepted government bailout funds. However, during that pilot they discovered by their numbers a parts return percentage between 14–17%, and based on this fact, the decision was made to search for additional options after shutting down the pilot. Shortly after the program was discontinued, State Farm filed a request for proposal and PartsTrader was selected from this process. “Per Mr. Avery, State Farm wants to assist the industry (use of PartsTrader and a parts locating/procurement program) by reducing totals because of parts competitiveness reducing repair cost. He says this would be an assistance to all (the consumer, the OE manufacturer, the insurance company, and the repair facilities),” reported Plier. During his presentation, Avery stated only suppliers nominated by Select Service repairers are and will be on the PartsTrader list. Avery also said that PartsTrader is continuing to make im-

ing a PartsTrader screen shot that indicated parts, days of delivery and the shop cost, but not the price that would be listed on the estimate. After several other attempts by members of the audience to get clear answers on list price, “Mr. Avery eventually admitted that the shops’ margins were not guaranteed to remain what they currently are,” Plier reported. Another sticking point in the meeting centered around whether or not repairers in test markets were giving positive feedback. “Mr. Avery stated State Farm had received positive feedback from the evaluation from the four current test areas, but he gave no specific examples of positives,” Plier said. The evaluations indicated there must be a better training process and that is being addressed by PartsTrader. “Mr. Avery noted State Farm and PartsTrader are hand-in-hand in this process and PartsTrader must prove and provide a value to the industry.” As Avery was saying the evaluations had returned positive information, Dave McBroom, director of the Florida Automotive Collision Association, spoke up to disagree. [Editor’s Note: Dave McBroom, passed away on Oct. 11. Read his obituary on page 20.] “Mr. McBroom told the participants he had flown in from Tuscon that afternoon so he could be a part of the meeting. Mr. McBroom noted to the group he had been in Tuscon for a week and had spent time in repair facilities on the program and had completed the steps to sending out the bids, and then

“Mr. Avery eventually admitted that shops’ margins were ‘not guaranteed’ to remain what they currently are”

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went to the parts suppliers to see how the program worked on both sides,” Plier said. “Mr. McBroom then began naming different repairers and suppliers who had removed themselves from the PartsTrader program. At this point, Mr. Avery spoke up and stated he did not feel this was fair. The audience became vocal enough that Mr. Avery allowed Mr. McBroom to continue for a few additional statements.” In general, members of the audience felt that much of the information provided by Avery was very much the same information that has been published since the pilot program was started, and that the only new information he provided was related to why State Farm was attempting another parts procurement program. “At no time did or could Mr. Avery provide how this program would benefit a repairer and/or a supplier,” Plier said. He also reported that several of the audience questions were repetitive in nature because Avery avoided giving specific answers. The meeting ended late at 9:45 p.m. Before closing, Batchelor invited shop owners from Alabama to return for another meeting later this year to allow GCIA members to hear their side of the story now that they had heard from State Farm. Special thanks from Autobody News to Steve Plier for providing notes on the meeting.

GM Will Hire 3,000 HP Workers to Bring Info Tech Work In-House

General Motors said it will hire 3,000 Hewlett-Packard Co. employees as part of its ongoing effort to bring most information-technology work back inhouse. The hiring will be part of a new multi-year software and services agreement between the two companies. GM described the deal as “cost-neutral,” but it did not provide any additional details on the size or length of the contract or where the workers will be located. The employees being hired already work on GM’s business at HP and are expected to be on GM’s payroll within six months. An undisclosed number of HP employees currently assigned to GM are not affected, the companies said. “These agreements with HP will enable us to accelerate the progress of our IT transformation by delivering increased innovation and speed of delivery to our GM business partners, and reduce the cost of ongoing IT operations,” Randy Mott, GM’s chief information officer, said in the statement.

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Industry Insight

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

NACE Keynote Speech Focuses on Thinking about Business with John Yoswick

During his keynote address at the 2012 International Autobody Congress & Exposition (NACE) in New Orleans, LA, former CARSTAR CEO Dick Cross offered his corollary to a Mahatma Gandhi quote by telling a crowd of 800 attendees, “A business is but the product of the CEO’s thoughts. What she thinks, it becomes.” It’s a concept NACE organizers themselves may need to keep in mind as they acknowledged that while this year’s show offered “some big wins,” it also was down slightly in terms of both exhibitors and attendees.

Twenty minutes, three times a week Cross kicked off the event by saying that although the business successes that he’s had that were cited in his introduction are true, his career has not been a “charmed path.” “I have probably over two-and-ahalf decades made every business mistake that everyone in this audiences has made, and maybe even some of them that you would never make,” Cross said. “Unintentionally, I have made decisions that have hurt business performance. I have failed to create circumstances that would allow everyone to make their contribution to the cause. I have terminated people that I have wondered in the aftermath whether it was the right thing to do. There were times in my career when I hesitated to lay my job as CEO on the line, to stand my ground for what I knew was right. But as painful as all those things are to remember and think about, they are the things that drove my obsession to understand and to become very good at the job at the top.” In addition to leading CARSTAR from 2005–10, Cross has been brought in by private equity firms to run a halfdozen other under-performing companies, and through his consulting firm, he said he’s helped more than 150 other CEOs improve their company’s performance. He said one of the biggest failings he sees among many business owners and CEOs is not regularly setting aside time to just think about the business. “For most of us in this room, thinking is the hardest work that we have to do,” he said. “If there’s anything else to occupy our time besides

thinking, we’ll generally be doing it. My observation is that about 90% of the time, most of the CEOs in the United States are doing things that have nothing to do with this job at the top. But thinking helps you understand what the possibilities of your business could be, and helps you to understand generally how to make it happen.”

Dick Cross, former CEO of CARSTAR, presented concepts from his book, “Just Run It!” Copies on display sold out quickly

He offered several “big picture” ways that CEOs should think about the business. For example, he said that businesses are like products in that they have a life cycle; they begin with an idea, an embryo, and then some go on to grow and mature. Whether they go on to continued success or wither and die, Cross said, is often up to the person at the top, who can either get complacent and coast—usually leading to the company’s demise—or who can restart the cycle by finding a new set of customers for the business or by finding other ways to serve the needs of existing customers. Cross said good CEOs also recognize the difference between leadership and management. Leadership, he said, sets in front of others very enticing goals and helps make them want to help achieve those things. Management is only about assembling the resources needed to execute on that vision. At CARSTAR, he cited as an example, he worked to help everyone in the organization realize their purpose wasn’t to just fix cars. “The purpose of CARSTAR became: We help people though a crisis in their lives,” Cross said. The kind of thinking that makes

24 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

companies succeed, Cross said, can be accomplished by those at the top who set aside 20 minutes a day, three days a week, to tune out other day-to-day distractions and just think about the business. “Running a business is not a fulltime job,” Cross said. “You probably spend most of your time doing other stuff, stuff that others ought to be doing themselves rather than having you do it. But you can do a great job running your business 20 minutes, a day three days a week, thinking about those things.”

Show leaders offer their view Two years after shifting away from holding NACE in Las Vegas each fall, event organizers cited a number of reasons attendance may have been down this year, from the still-slowly-recovering economy to the New Orleans location, which has fewer shops than Orlando within an easy-to-drive distance. “Attendance at all the key (show)

events was up,” Lindsay Roberts of Hanley Wood, who manages the show for its sponsor, the Automotive Service Association, said just hours before the show closed. “We had some major players who hadn’t exhibited at the show for a while. We got some of the paint companies back. We got some of the OEMs back. But we are a little disappointed. Total attendance is going to be down. It’s pretty hard to compare to the Orlando last year where we up over 20% from the 2010 event. We had really hoped we would see that growth through to this year. We’ll release final numbers probably within the next five to seven days. But we do think we’re going to be slightly down over last year.” But Roberts chiefly cited a continued decline in the number of companies exhibiting at the show, which is down about 17% from as recently as 2010. “What we need is more product, See NACE Keynote Speech, Page 27

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NACE Sees Fewer People, But Quality Events Collision repair professionals from across North America came together recently at NACE in New Orleans, LA, to network, see the latest and greatest in equipment and products, and to contemplate a smaller but still high-quality event. Some 225 companies occupied 50,000 sq. ft. of exhibit space but attendees were fewer in number from last year’s Orlando venue. “It was a great pleasure to have Dick Cross open the 30th Anniversary general session,” said Ron Pyle, ASA president. “He delivered a practical and easy-to-implement plan for success. I am sure everyone in attendance agrees that he was extremely motivational and an excellent choice to kick off this very special ASRW.”

Leadership and Management Tactics NACE began October 10 with a series of seminars and lectures regarding sales tactics and innovation of paint and materials, including The Art of the Deal—Acquiring and Developing New Locations; Marketing to Generations X and Y; and Paint and Materials: The Paradigm Shift. The afternoon sessions saw a focus on leadership, delegation and customer management tactics, aimed at retaining and appeasing your staff and customers. Seminars included Leadership Best Practices—How to Inspire, Delegate and Coach Your Team to Success, by Mike Anderson; Calming and Retaining Angry Customers, by Margie Seyfer and Guilt by Association—Defining Your Image, by Tony Nethery. Kurt Lammon of Urethane Supply Company instructed viewers on how to properly weld plastic with nitrogen, while Dan Espersen of ALLDATA taught the best practical applications of OEM Information. I-CAR spokesmen Bob Zelano and Jeff Poole ran afternoon seminars on Corrosion Protection and Hazardous Materials, Personal Safety and Refinish Safety, respectively. The first day of NACE was capped off with the Assembly, a confidential, closed-door forum for collision repairers. Profit Building NACE continued with tutorials, demonstrations and information pertaining to every aspect of the collision repair industry. The exposition portion of the event also opened at 10:00 am, offering the latest products, services

and technologies from industry leaders. The Profit Building Pavilion portion of the exposition showcased vendors with customer-driven products, such as Autoshop Solutions, Demandforce, Mudlick Mail Co. and Net Driven Media.

Ron Pyle, ASA President and ASRW Chair

The morning of Oct. 10 saw several seminars headed by I-CAR. Bob Zelano ran a seminar on automotive foams and Tony Nethery instructed participants on proper measuring methods. Educational highlights included ICAR representative Shawn Collins’s workshop on Blueprinting Process and Damage Discovery, (BLU01); I-CAR’s Bob Zelano presenting the Steel Unit-

Rich Southerland of Alldata attended the Thursday premiere of Blueprinting Process and Damage Discovery and stated, “This is the best I-CAR class I’ve attended. I couldn’t imagine how this would not benefit any tech or shop employee.” The course led students beyond the disassembly of damaged parts to help them uncover hidden damage that can impact the repair process and provided a number of demonstrations, including quick checks and implementation tips. Students who attended the course gained an understanding of the definition of the blueprinting process and how the process can help improve repair quality through a standardized approach to collision repair planning. The day wound down with the ASRW Welcome Party, sponsored by CCC, and held at the iconic Mardi Gras World venue, basically a warehouse of larger-than-life characters used on floats and in Mardi Gras themed events. Attendees were toured through the warehouse where Mardi

Gras floats are manufactured, and ended up at the Grand Oaks Mansion next door where some excellent local dishes were offered. NACE events on Oct. 11 ended with the ASRW Industry Awards ceremony completing the second day of NACE. The ceremony was held at the National World War Two museum. The NACE conference continued on Oct. 11 with several I-CAR seminars, human resource tutorials and team development clinics. The ASRW Collision Forum also took place in the morning.

MSO Symposium The ten-and-a-half-hour MSO (Multi-store operators) Symposium hosted by Matthew Ohrnstein of Symphony Advisors took place Friday. The symposium spanned the duration of the NACE Friday schedule and was comprised of five panels that aimed to help multi-store business owners, many of whom take over failing operations in order to rejuvenate them, improve aspects of their businesses including culture, branding, customer relations, lead-

ys op yshop hes FFo For or a New or Career as an

SCA Appraisal Franchise Owner! Margie Seyfer presenting Calming and Retaining Angry Customers

ized Structures Technologies and Repair class and Bryan Dodge of Dodge Development’s presentation on balancing your work and life.

Blueprinting Process and Damage Discovery This new course provided an interactive training experience and was filled to capacity during both sessions. ICAR offered special premiere pricing for this course launch with a cost savings of $56 for standard pricing. The new Live Demo course demonstrates I-CAR’s commitment to increased student interaction in the classroom and uses an actual vehicle to demonstrate technique while engaging students in the learning process.

26 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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ership and finance. The MSO Symposium also included networking opportunities for owners, and ended with a networking reception in the evening. Shawn Collins held his second seminar on Blueprinting Process and Damage Discovery, while Bob Zelano taught the second Structural Straightening Steel seminar, both hosted by I-CAR. The seminars were add-on educational seminars available on both Thursday and Friday. OEMs including General Motors, Toyota and Nissan all sponsored booths during the show, offering promotional giveaways and showcasing new products.

Expo Floor Some highlights from the on-floor demo area included exhibits from Innova Electronics Corp. on how their CarScan tools benefit shops and CAS of New England revealing The Truth About Programming in Today’s Vehicles. Kaeser Compressors created an informative technical (not sales-oriented) presentation titled “Compressed Air Requirements for Waterborne Paints.” It was held October 10 to help repairers make practical choices for their shops.

Topics included: sources of moisture and contaminants, air system components that affect paints and finishes, the impact of air amplifiers and more.

Mike Anderson, CollisionAdvice.com spoke on Financial Best Practices

Some workshops on Friday afternoon focused on the financial aspect of collision repair. Mike Anderson of CollisonAdvice.com spoke on measuring performance in Financial Best Practices. Dan Stander of FIX Auto Highland Ranch moderated The Keys to Successful Estimating! panel, in which data providers addressed audience questions. Denise Caspersen of ASA and Melissa Miller of CARSTAR encouraged women to be courageous leaders in their seminar, one of several in the Women’s Professional Development

track of NACE. (See story this issue.)

Twenty 2.0 peer benchmarking A new-to-NACE-this-year, Twenty 2.0 peer benchmarking event was attended by about 20 repairers and ran on Friday afternoon hosted by keynote speaker Dick Cross. Twenty 2.0 is/was a peer benchmarking/virtual 20 group concept, applicable to both mechanical service/repair and collision repair shop owners focused on doing “the job at the top.” The 90-minute session began with a half hour introductory session, followed by an hour-long breakout session. All participants had the opportunity to enroll in the formal (ongoing) Twenty 2.0 virtual 20 group at the conclusion of the session. “Shop owners interested in obtaining the value of participating in a 20 group process with a non-traditional time or financial investment won’t want to miss this unique session,” said ASA president Ron Pyle in advance of the event. “We’ve taken the 20 group concept and upgraded it to the digital age. Participants who formally enroll will receive all the benefits of belonging to a 20 group, with a virtual twist.”

Continued from Page 24

NACE Keynote Speech

more exhibitors on the show floor,” Roberts said. “We need to give attendees three days worth of product and people to network with. We need the executives from these major companies who were here walking the aisles to have booth space on the show floor and to support the show.” She did say that more than 40 companies have already signed on for next year’s event, up one-third from the number who had signed contracts for this year’s show during the 2011 event. But NACE organizers have also given themselves the added challenge of holding the 2013 event in Las Vegas next October 16–19—in the same city just two weeks before SEMA, which has been working to attract collision repair industry exhibitors and attendees. That may have been one of the reasons NACE organizers took the unprecedented step of also announcing that two years from now, NACE will again be on the east coast, returning to the city that hosted the very first NACE back in 1983: Nashville, TN.

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AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News Honda Recalls 820,000 Civics, Pilots Over Headlight Problem

Honda recently expanded its March recall of vehicles with a low-beam headlight wiring issue to include 820,000 Civics and Pilots in North America, its second big expansion of a recall in recent days. “[A] potential failure with the wiring of the headlight switch ... may cause the low-beam headlights to become inoperative” in the model-year 2002-2003 Civic sedans and 2004-2005 Pilot sports utility vehicles that have been added to the recall, the carmaker said in a statement. Meanwhile, some 550,000 model-year 20022004 CR-Vs and 2003 Pilots were the vehicles named in the initial recall in March. Honda said the low-beam problem could “increase the risk of a crash,” but stated that “no crashes or injuries have been reported related to this issue.” The company advised owners of the models in question to take their cars to authorized Honda dealers for inspection and replacement of components in the headlight wiring system if necessary. Honda also recently expanded a May recall related to a leaky power steering hose to include 572,000 model-year 2003-2007 Accord V6 cars in the U.S., in addition to the 2007-2008 Acura TL models in the original recall. High temperatures under the hood on those models can cause the power steering hose to crack and leak fluid that could cause smoke or even a fire. Honda said one engine fire had been reported but no reported accidents or injuries had occurred as a result of the problem. The carmaker said owners of vehicles being recalled for the power steering hose issue wouldn't be able to have their cars fixed until early 2013 due to a shortage of parts. The company said it began mailing customers about the lowbeam recall in late September.

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GM Recalls 41,000 Chevy, Pontiac and Saturns Over Fuel Leak

General Motors Co. is recalling about 41,000 Chevrolet, Pontiac and Saturn cars in the United States because of concerns that a defective plastic part might cause a fuel leak, according to the National Highway Traffic Safety Administration. GM’s latest move follows the company’s recall of 473,841 Chevrolet, Pontiac and Saturns in September to fix a condition that could lead the cars to move when the drivers think they are in park. Potentially, 40,859 vehicles sold in Arkansas, Arizona, California, Florida, Nevada, Oklahoma, or Texas could be affected in the latest recall.

Chrysler Halts Tests Plug-ins After Batteries Overheat

Chrysler Group LLC temporarily suspended testing of its fleet of advanced plug-in hybrid electric vehicles after three of the pickups were damaged when their prototype lithium-ion batteries overheated. The trucks were unoccupied when the incidents occurred, and no one was injured. But the automaker will replace the batteries in the test vehicles with units that use a different chemistry. “Hiccups happen. We’re disappointed, but it by no means spells the end of the program,” said Chrysler spokesman Eric Mayne. The pickups are part of a fleet of 109 trucks being evaluated by the Auburn Hills automaker and a group of utility companies and municipalities across 20 states. It is part of a program jointly funded by Chrysler and the U.S. Department of Energy. They include the first-ever factoryproduced vehicles capable of reverse power flow. The experimental system would allow fleet operators to use their plug-in hybrids to supply electricity for a building during a power outage, reduce power usage when electric rates are high or even sell electricity back to their utility company. “You can link them all together and establish your own mini grid,” Mayne said.

30 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Chevy Dealer Sells Car for Wrong Price, Buyer Arrested

A Virginia man spent four hours in jail after purchasing a Chevrolet Traverse from Priority Chevrolet in Chesapeake, VA. The dealer’s sales staff accidentally sold the SUV to Danny Sawyer for $5,600 less than they should have, and when Sawyer refused to sign a new, more expensive contract for the correct amount, the dealership called the local police alleging the buyer had stolen the vehicle. Law enforcement then picked Sawyer up and held him for four hours before getting the situation straight. Dennis Ellmer, president of Priority Chevrolet, says he owes Sawyer an apology on behalf of the dealership, and had intended to do right by the buyer by letting him have the vehicle at the agreed-upon price. But Sawyer’s lawyer says it’s a little too late for saying sorry. The briefly-incarcerated owner has filed two lawsuits against the dealer, accusing the business of malicious prosecution, slander, defamation and abuse of process. All told, the suits seek a total of $2.2 million in damages, plus attorney fees. That $5,600 seems awfully cheap now.

GM Recalls Saturns

General Motors is recalling certain model year 2007-2010 Saturn Aura and model year 2008-2010 Chevrolet Malibu and Pontiac G6 vehicles, equipped with a 4-speed automatic transmission. On these vehicles, the tabs on the transmission shift cable end may fracture and separate. If the tabs were to fracture and separate, the shift lever and the actual position of the transmission gear may not match. The driver would be able to move the shifter to PARK and remove the ignition key, but the transmission gear may not be in PARK. The vehicle may not be able to be restarted and the vehicle could roll away after the driver has exited the vehicle, resulting in a possible crash without prior warning. GM will notify owners, and dealers will install a retainer over the cable end or replace the shift cable as necessary. This service will be performed free of charge.

www.autobodynews.com

November 2012 GM Recalling Some Sonics

General Motors is recalling certain model year 2013 Chevrolet Sonic vehicles manufactured from May 29, 2012, through August 29, 2012. When a turn signal lamp fails to operate, the Body Control Module in these vehicles does not detect this condition and will not indicate the condition to the driver. These vehicles fail to conform to Federal Motor Vehicle Safety Standard No. 108, “Lamps, Reflective Devices, and Associated Equipment.” If the driver is not aware that the turn signal is not functioning and does not have the light repaired, other drivers may not be alerted that the vehicle is turning, increasing the risk of a crash. GM will notify owners, and dealers will reprogram the BCM and the vehicle’s key fobs, free of charge. The safety recall began on October 3, 2012.

Dodge Charger As All-Wheel Drive Enters Police Market

Chrysler Group is upping the ante in the battle for the police cruiser market, offering a new all-wheel-drive version of its Dodge Charger Pursuit sedan equipped with a powerful 5.7-liter HEMI V-8. “Adding available all-wheel-drive capability to the already popular Dodge Charger Pursuit will broaden the Charger’s appeal to police departments that are accustomed to dealing with rough winters and adverse weather conditions,” said Peter Grady, vice president in charge of fleet operations for the Auburn Hills automaker. “With the Charger Pursuit now offering dual capability of both rear- and all-wheel-drive, we’ll be able to meet the needs of our police fleet customers across the country.” The all-wheel-drive version will be equipped with the same engine as the HEMI-powered rear-wheel-drive model that achieved the fastest-ever lap time at the 2012 Michigan State Police’s Vehicle Evaluation Test at Grattan Raceway in Michigan. The engine delivers 370 horsepower and 390 lb.-ft. of torque.

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Car Vs. Deer Crashes Keep New York Auto Body Shops Busy Wildlife researcher Brian Underwood has spent his life studying deer. When he spotted a doe on the side of the road in central New York recently, he slowed down. What happened next, however, stunned even Underwood, a professor at the SUNY College of Environmental Sciences and Forestry in Syracuse, according to the Ithaca Journal. A second deer darted out from the opposite side of the road, slamming into the side of his pickup truck with a loud thump. It then scampered off, leaving behind $2,500 in damage to the driver’s door. “I’m mad at myself,” Underwood said, noting that he should have looked both ways. “I drive the roads, looking for deer. For 35 years, I never once hit a deer. I had a lot of close calls. My perfect record is blemished.” In the United States, there are at least 1 million motor vehicle accidents involving large wildlife each year. Federal officials say that each year, these accidents kill about 200 people, injure 29,000 and cause more than $1 billion in property

damage. Each year, there are roughly 65,000 motor vehicle crashes in New York that involve white-tailed deer, according to state officials, with most of them occurring from October to December — the animals’ mating season, which peaks in November. Because bucks are chasing reluctant does, the animals are more likely to jump into traffic, experts say. Harold Aken, 54, of Rye, hit a deer last fall around dusk. Aken, who wasn’t injured, spent several thousand dollars to repair the horn, headlight, fog lights and bumper on his Kia Sorento, which he had just purchased new a few months before. The population of white-tailed deer in New York could be as high as a million. Paul Curtis, a wildlife specialist in the Department of Natural Resources at Cornell University, said, “Deer-vehicle accidents are definitely correlated to deer abundance, particularly in urban-suburban areas.” Hunting restrictions and a variety of plants and flowers in people’s gar-

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32 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

dens have allowed deer to flourish in the suburbs especially, Curtis said. Adult deer can typically weigh between 125 to 200 pounds, and males, which grow antlers every summer, can reach 300 pounds, state wildlife officials say. Depending on the type of car, repair costs from a deer collision can easily total more than $10,000, auto body shop owners say. Greg Zurla’s Auto Body, in Congers, recently had several vehicles in its garage that had been involved in crashes with deer. “We got a new Lincoln here, and it was hit on the side, and it took out both doors. It’s a lot of work,” Zurla said. Matt Grasso, co-owner of Northern Westchester Auto Body in Bedford Hills, said the worst accident aftermath he has seen involved a rental car on Interstate 684 that struck an antlered buck head-on. While crashes with deer can kill drivers and passengers or seriously injure them, repair shop owners say current cars are designed with improved safety features that are better at mini-

mizing crash impact than vehicles of the past. To help prevent a crash with a deer, drivers should slow down in areas with deer, scan both sides of the road and use extra caution at dawn and dusk, when deer are most active. Drivers also should be aware that deer routinely travel along the same routes in groups, experts say. “If you see one coming across the road, you better be looking for another one,” Underwood said. The best way to react to a deer in the road is to slow down without jamming on the brakes. It’s wiser to hit the animal than swerve and risk crashing into another car or object. Hitting an animal instead of a guardrail or another vehicle is also better for any insurance claim. Arlene Lester, spokeswoman for State Farm Insurance, said deer crashes are considered part of comprehensive insurance coverage, which pays for damages caused by events out of the driver’s control. Because of that, comprehensive claims usually don’t increase premium rates like a collision claim, she said.

Body Shop Manager Hits Deer to Become His Own Customer Part of Terry Woodhull’s job is fixing cars involved in deer strikes. Recently, he became his own customer, according to Patricia Kitchen, writing in Long Island Newsday. A manager at Starlite Auto Body Inc. in Mattituck, NY, Woodhull, 60, was on his way to work at about 5 a.m. when he hit a deer. “It was so quick,” he said, likening it to a shooting gallery game. “All of a sudden, there it was in front of me.” Woodhull said he wasn’t hurt, and the deer took off. His Dodge Dakota pickup was damaged—to the tune of $4,500—the longtime Cutchogue resident’s first such deer-involved accident, though he reports some near-misses. It’s just one example of what he and other auto body professionals anticipate at this time of year. October through December are the top months for deer-vehicle collisions nationally, according to State Farm. Thanks to migration and mating season, which can result in pursuits across roadways, claims data show more than 18% of such collisions

occur in November, says State Farm. The problem is especially troublesome in eastern Suffolk where there are high-speed roads leading to both forks, suburban developments and “enough woodland to attract deer,”said Paul Curtis, associate professor and wildlife specialist at Cornell University. Also, deer density in locations such as Shelter Island and North Haven is among the highest in the state, he said. The top months for motor vehicle accidents involving deer investigated and reported by the Suffolk County sheriff last year were November, 17; October, 8; and May and December, 5 each. Sheriff deputies patrol Sunrise Highway from Exit 37, Route 109, to Exit 62, Route 111, and the Long Island Expressway, from Exit 48, Round Swamp Road, to Exit 71, Calverton. Comparable data for Nassau are not available, but a police spokesman said deer hits there are rare. Since 2008, November and October have been the top two months for deer-hit cleanup on Long Island’s state roads, according to New York Department of Transportation figures. Last

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but recalls starting one week two years ago with eight. Drivers are advised to be more alert at this time of year for the possibility of a deer encounter, especially at early morning and dusk, Curtis said. Here are things for motorists to watch for: ● At this time of year especially, be more aware of deer-crossing signs and spots where you’ve seen deer in the past, Curtis said, as deer are creatures of habit. ● Turn on the high beams to light up the sides of the roadway where deer might appear, State Farm advises. ● With that in mind, being alert for the “silver-dollar-size reflection” in deers’ eyes staring at headlights might give an extra two to three seconds of warning, Curtis said. ● Think twice about swerving to avoid hitting a deer, which could lead you to leave the roadway or cross into oncoming traffic, said Curtis. ● Don’t rely on car-mounted deer alert whistles, State Farm said. Indeed, Milazzo said he has a collection of 12 such devices taken from vehicles repaired after deer run-ins.

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year there were 131 cleanups in November and 71 in October. The majority of such strikes are in eastern Suffolk, said Eileen Peters, DOT spokeswoman on Long Island. Most accidents involving deer are front-end collisions, said Ed Kizenberger, executive director of the Long Island Auto Body Repairmen’s Association (LIABRA). Depending on speed and auto make, such damage can run in the $2,500 to $6,500 range, he said. According to the New York Department of Motor Vehicles, “animal’s action” was a contributing factor in 8.7% of accidents statewide in 2010, resulting in 14 fatalities and more than $20,000 in property damage. Joe Milazzo, 26, manager of Village Auto Body, in Hampton Bays, said they’ve recently done three repair jobs in the $3,000 to $5,000 range brought about by deer collisions. While it’s a year-round issue, the uptick starts in early October and generally lasts until the first frost, he said. Woodhull estimates an average two to three deer-hit vehicles come in a week for repair at this time of year,

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www.koeppelmazda.com www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 33

Paint Management

E-Coated Parts Procedure with Stefan Gesterkamp

For some months now, people keep asking me why I haven’t recently contributed to Autobody News. The answer is simple, I didn’t feel I had anything interesting or of value to write about. This changed a few weeks ago. As a paint manufacturer’s rep, there is not a month that goes by without being put in the middle of collision repairers and insurers, expected to chime in on a dispute about what is necessary for a proper repair. One of my customers called and informed me that an insurance agent declined to pay for priming or sealing new ecoated parts. The agent told my customer that sealing or priming new parts wasn’t a necessary step in a proper repair process. Anybody that knows me well will not be surprised to learn that I got very excited about this statement. How can someone in our industry make such an irresponsible statement? And then I leaned back and thought about this for a moment. During the course of a year, I visit hundreds of shops and have witnessed this exact procedure performed more often than I cared to admit. By simply looking around our industry, an insurance agent that likely never had to repair a vehicle for a living could easily get the impression that sealing or priming new parts is an optional, but not necessary, step in a repair process. I feel comfortable about the fact that most, if not all major paint manufacturers will agree with me, painting directly over e-coat is not a recommended repair process. Furthermore, paint failure as a result of this practice would not be covered by most manufacturer’s warranties. There are several problems with painting directly over e-coated parts. Although OEM e-coat is an excellent corrosion protection coating (not sure about some of the aftermarket parts), ecoat contains no UV protection package. E-coat is generally epoxy based and unless completely shielded from UV rays, its surface can become unstable. Resulting in paint layer separation and peeling. Some of the newbies in our industry may not remember the early 90’, but many of us do. How many GM and Chrysler factory paint peelers did you repair in your profes-

sional career? These cars and trucks peeled for the same reason, UV exposure to the e-coated surface. If you repaired one of these vehicles, you likely remember that the surface of the vehicle was powdery after you peeled of the paint layer. This powdery subtends that easily rubbed off onto your fingers was the top layer of deteriorated e-coat. Just put enough paint on it and you should be fine, right? I wish it were that easy. The first problem with this thought process is: how much is enough? Are you thinking 4, 5, or 6 coats of paint? 8 to 10 coats on some reds? The truth is that no one knows when full coverage is achieved during the paint process. Take a piece of glass and paint it with basecoat and clear. After it cured completely, hold it up to the sun and see if any light penetrates through. Attempting this exercise will quickly demonstrate that this approach doesn’t work. It takes much more paint than anticipated before 100% coverage is achieved through basecoat application. Protecting the integrity of your work through sealing or priming instantly emerges as a more cost effective solution. And if cost wouldn’t be a factor, the resulting high film build of basecoat color would present a paint problem of its own. The next issue with painting directly over e-coat is stone ship resistance. E-coat is a very hard coating. The difference in hardness between ecoat and basecoat is too great for a long lasting paint finish. The application of a primer or sealer to the e-coat will bridge this cap. Although there is no way of fully preventing rock chips from happening, a sealed or primed surface will outperform an e-coated surface after impact by a large margin. The last point I like to make is the surface prep. E-coat is a hard surface and sanding it can be a workout. 90% of shops will use a DA sander to prep the e-coated surface. If you don’t seal or prime the part, how do you know if you left enough e-coat behind for proper corrosion protection? Most ecoat layers are only 0.5 to 1 mil to start with. My observations suggest that 70% of all sanded e-coat surfaces display some level of transparency or

34 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Stefan Gesterkamp is a Master Craftsman and BASF representative who has been in the automotive paint industry for 27 years. He started his career in a custom shop before turning to collision repair. Stefan graduated from the University of Coatings and Colorants in Germany and is the author of “How to Paint Your Show Car.”

bare metal surfaces. Unfortunately, I have seen people paint right over that too. When asked why, the most frequent explanation I receive from shops that paint directly over e-coat is cycle time. Shops don’t feel that they can afford to give up the time to seal parts in the booth. While I appreciate the value of cycle time and booth hours, it is no excuse for painting directly over e-coat. Nobody says you have to do it as a part of your final paint work, in a matter of fact, I strongly advice against it. I propose sealing parts ahead of time, ideally as part of the cut-in process. Put one good coat of sealer on the outside of the part, let it flash off to a point that you can safely turn them over and cutin the rest. All the shop has to do after hanging the part is giving the sealer a light scuff by hand for adhesion, clean and paint. This process allows the shop to maintain booth KPIs and put

out a quality repair at the same time. As an added bonus, you will also improve coverage and color match as well.

VW Beetle Convertible to Get Platform Shared with Jetta, Golf

The convertible version of the Volkswagen Beetle will get its debut at the Los Angeles auto show in late November, shortly before the car goes on sale in the United States. The launch of the 2013 VW Beetle convertible trails the arrival of the redesigned Beetle coupe by about a year in the U.S., where Volkswagen expects to gain a majority of sales. Both Beetles use VW’s PQ35 front-drive platform that is shared with the current Jetta and Golf. VW says the Beetle convertible’s folding cloth top can be raised or lowered in about 10 seconds. Safety equipment includes rollover bars concealed behind the back bench seat. If the car’s safety system senses a crash, the rollover bars are deployed.

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On Creative Marketing

The New Co-Op Marketing with Thomas Franklin

In the early ‘90s, the term “Piggyback marketing” meant that the trial of a new product on the market was linked to another product that already had wide acceptance in the marketplace. The intent was that this weaker new product would be “piggybacked” on the strength of the “carrier” product. Soon the practice was expanded so that many products were “piggy-backed” on products already being used. You see this all the time when you receive a credit card bill or gasoline credit card bill and find offers inside to buy a wide range of products. You know this must be a successful strategy because it has continued on so long. The question is how can a fixed service like collision repair, use “piggy-backing” to increase sales and business volume? Marketing guru Jay Abraham, in his great book Getting Everything You Can Out of All You’ve Got, calls this a “host-beneficiary” relationship. Greatly simplified, it’s sort of a co-operative marketing plan whereby two (or more) companies that are non-competitive but possibly complement one another’s products or services, can either bring customers and sales to one another’s businesses, or bring some other value. Collision repair facilities engage in this kind of relationship all the time, but probably don’t think of it in those terms. DRP relationships are the best example. Insurance companies send customers to the shop. The value they receive in return mainly consists of lower labor and parts and materials costs. Dealership relationships and fleet management company relationships operate similarly. Some shops also have a more direct exchange relationship with a towing firm, pinstriping and graphics service, car

rental company, transmission repair shop, personal liability attorney or car wash. As valuable as these relationships may be, often a few major shops have most of the best relationships in an area locked up so that many other shops are out looking for business the hard way. For them, it may be time to engage in some creative thinking about other possible “piggy-back” or co-operative arrangements. Even though the SEMA Show in Las Vegas is becoming a major gathering place for collision repair professionals, few shops have yet to take advantage of the vast accessory marketplace. Dealerships, of course, have entire accessory showrooms and enjoy a substantial profit flow from accessory sales. But few shops can afford to invest in a similar showroom, and only a few push for add-on accessory sales. An obvious “piggy-back” relationship would be with one or more accessory stores in the area. But less obvious are other retail establishments that offer audio-video products or cosmetic elements that car owners should find attractive. Some printers now offer wraps for cars. Since vision is important for safe driving, an optometrist might be interested in a co-op referral arrangement. A common arrangement is cash for referrals—especially with a towing company or new and used car dealership. But this is mainly a oneway street and can be very expensive. The ideal co-op arrangement is one where the shop also refers business to its co-operative partner. The easiest way to do this is through promotional programs. Obviously website links and other web-based connections are easy to arrange, but if a shop also sends out a newsletter or sends sum-

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

maries of completed work with enclosures there is an opportunity to refer many other kinds of businesses, much as your credit card companies do. If a referring business also has on-line and/or mail promotions, the arrangement would have your shop information (or even literature) included with theirs. Mailing a summary of completed work after a vehicle has been delivered is a very inexpensive way to establish a longer-term relationship with customers. If a vehicle owner resells or trades-in the vehicle, having a summary of work done on the vehicle may help keep the purchase price higher. Along with sending the summary, a promotional offer for a discounted detail or cosmetic improvement should be included, plus perhaps a specified discount for a friend, family member or business associate in need of vehicle body repair. For a shop with deeper pockets,

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PartsTrader Reduces Minimum Quote Time to 30 mins

PartsTrader announced that in two of the four markets where the system is being used, the minimum time a shop can give vendors to quote prices on parts has been reduced to 30 minutes, rather than the previous one-hour minimum. The change is designed to improve the efficiency of using the system for shops, the company said.

Suppliers can still quote prices in “overtime” but only until the shop begins review of submitted quotes. The system also allows the shop to extend the deadline in 30-minute increments if they wish to receive more quotes, or to use “placeholder quotes” for OEM dealers with which they have established relationships.

36 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

sending a before and after photo along with the summary would be appreciated. A more in-depth approach to the co-op referral partnership can extend to events, educational seminars or workshops and more. Driving schools would be a good candidate for this. New drivers are brought to the shop for a walk-through to see the damage that may have been done to vehicles because of careless or reckless driving. And if the driving school has a weekly or monthly group presentation, the shop should always have someone there to answer questions. Many shops now do exchange events with insurance agents and auto dealerships, but this should only be a beginning. The possibilities of piggybacking on the success of other businesses and entering into cooperative promotional schemes will only be limited by the imagination and ingenuity of a shop owner or manager.

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Insurers Talk MSOs, Consolidation, the Cloud, and Tech Trends A NACE panel of three representatives from top auto insurers discussed industry consolidation, technology and future trends during the Collision Industry Forum insurance panel discussion Oct. 12. Speaking on a panel moderated by Dan Stander of Fix Auto Highlands Ranch in Littleton, CO, the insurers responded to the noticable consolidation trend affecting both repairers and insurers, specifically the growth of several MSOs such as The Boyd Group, ABRA, CARSTAR, Service King and Caliber Collision—but also that of smaller regional MSOs. “MSOs that can replicate quality procedures are attractive as a group,” George Avery of State Farm said. “Using a score card to rate MSOs across the board represents an interesting opportunity. But just like independent shops, they must perform to stay on our system.” Avery said that any MSOs on their DRPs are measured as individual shops and must compete to perform on that basis. He recalled State Farms’s experience with M2, the 27-shop consolidator in California that closed

Insurance Representatives on panel (l to r): Moderator Dan Stander, State Farm’s George Avery, Nationwide’s Rob Knott, and Allstate’s Randy Hansen.

abruptly back in 2005, reinforced his company’s interest in finding top-performing individual shops, whether stand-alone or part of an MSO. “State Farm maintains that whether you are an independent or an MSO, you should be able to compete, and so State Farm evaluates even MSOs as individual repairers,” Avery said. “I’m not discounting [the MSOs’] ability, but I am saying that those with individual repair facilities have skin in the game, and that can have a lot of value on the customer service side, which we’re all after.” Rob Knott of Nationwide concurred. “We think the mom-and-pops still have a place,” Knott said. “Some of the challenges that the MSOs have

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is over-saturation in certain marketplaces, so you’re not going to put (all their shops in a market) on (the direct repair program). And then there’s the consistency issue, when they expand too fast and aren’t able to maintain the same service levels and quality.” Randy Hansen of Allstate also said each facility on his company’s DRP, even if part of an MSO, has to stand on its own performance. But the three acknowledged that MSOs can offer some appealing services such as call centers, extended hours and a single point-of-contact. Hanson said the collision repair industry suffers from a “tremendous amount of inefficiency” that consolidation alone cannot cure. Instead, shops should consider expanding their hours of operation or finding other ways to better utilize their facilities and equipment. Consolidation in the insurance industry is likely to continue as companies seek to grow. “The only other way to grow is by taking another company’s customers,” Knott said, and those are costly acquisitions because acquiring a new customer is seven times more costly than retaining their own customer, he said. Avery added that MSOs present an “interesting platform” in which to experiment with a change on a large but not national scale. “You hear people talk about how the model is broken,” Avery said. “There are components [of change] that could be perhaps introduced into an MSO that you couldn’t quite introduce companywide. So I feel compelled to tell you, not to make anyone nervous about MSOs taking over, but I do have to say that that is a place where you could possibly go and say, ‘Look, we’d like to try something different.’” Avery suggested later in the discussion that attendees think like a young driver using her mobile device to find out what to do after a minor accident. “What can we do together? Can we

work together to offer her a 48-hour repair?” Avery asked. “You might say, ‘Yeah, if you quit making me take all these pictures and jump through these hoops.’ And I might say, ‘Okay, I’ll stop that.’ So as we look at the future, I’m leaning toward partnering and saying, look, that customer is going to leave us and go somewhere else. She is not going to tolerate inefficiency.”

Cloud Computing and Data Ownership Knott said technology changes so quickly that it’s hard for insurers and repair shops to keep up. “Our customers are pushing insurance companies to evolve with technology and a challenge is how fast can we adopt new technology. But if we don’t change we will be left behind.” Allstate has consolidated 100 legacy systems into one delivery platform, Hanson said. “It was tremendously complex and we spent hundreds of millions of dollars to implement it. We recently adopted cloud computing. It is very flexible and offers more applications and options." With cloud computing convenience comes the more complex issue of data ownership. “Cloud computing is great because it allows you to access your data anywhere,” Knott said. “However, there is great concern over data ownership and who has access to the data. Hanson said the issue of data ownership is clear to Allstate. “We view it as the customer’s data, not the shop’s or the insurance company’s. It is our obligation to keep it secure and protect it. State Farm is developing its own cloud and securing the data is one of the most important initiatives, according to Avery. Advancing OEM technology is a trend that concerns repairers and insurers. Stander asked: ”If cars won’t be crashing into each other due to accident avoidance technology, what does that mean for repairers and insurers?” Avery said that accident avoidance technology won’t be fully implemented for 15 to 20 years. “With or without that technology, we need to figure out a way to help our customers in the future. Customers will not tolerate inefficiency. They will find what they want with or without us.” Hanson said the new OEM technology has the potential to change the way insurers do business, but it’s not clear what those changes will be.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 37

Northeast News with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

CCRE’s Fall Seminar Covers Adhesion, Warranties, and Much More As a follow-up to the CCRE legal to claim in court that the contract with seminar held in March 2012—which the “big shot” is invalid. This doctrine I attended and wrote in Autowithabout Chasidy Rae should Sisk be used and applied more body News (search “CCRE” at auto- often, but the same big guy-little guy bodynews.com)—the Pennsylvania inequity may apply in the ability to afCollision Trade Guild (PCTG) hosted ford a trial or find and pay a resourcethe Coalition for Collision Repair Ex- ful lawyer.] cellence for the second event in this Behrendt explained how a relaseries of seminars. tionship with a third party (i.e., the inCCRE’s 2012 Fall Seminar was surance company) triggers a legal and held Friday and Saturday, September binding contract which exploits a 21–22 at the Airport Embassy Suites in shop’s ability to do business individuPhiladelphia, PA. PCTG decided to ally. Behrendt said that avoiding adhost CCRE again due to the overhesion will help collision repair shops whelmingly positive responses they reoperate independently by providing ceived on the 2012 Spring Seminar. An them with the freedom to be paid audience of nearly 50 came to Philadelbased on the services performed as adphia from as far away as Alaska. hesion can influence a court’s decision against a shop as it regards their relationship with a third party. In contrast, an authorization to repair form protects a shop’s independence, their relationship with the customer, and their need to make a profit by distancing them from the insurance company. Through adhesion, third parties try to make the reserve estimate part of a shop’s repair process by utilizing their estimate as a method of payment, but the estimate is only the third party’s guess at the cost of the repair, not a blueprint for the repair. The insurance company’s estimate is created to verify that there is a legitiSteve Behrendt addresses the contract of mate claim and to set a claims reserve adhesion which is money earmarked for eventual Attorneys Erica Eversman and claim payment. Shops need to find a John Parese joined the CCRE’s legal way to eliminate this estimate in order seminar as featured speakers to share to prevent insurance companies from their legal expertise on the collision controlling their business. One way to repair industry. do this is by stamping all third party In his welcome and introduction documents as “for informational purspeech, Steve Behrendt, president of poses only.” This preserves the shop’s PCTG and CCRE Board Member, ad- independence by avoiding adhesion and dressed the importance of understandany type of agreed-price scenario. It ing adhesion, or more specifically, an also allows shops to distance their busiadhesion contract. [Editor’s note: An ness from a third party’s control and beadhesion contract is one which is im- havior. Shops should prepare and work balanced in favor of one party over the off of their own repair blueprint and other so that there is a strong likeli- analysis, and this is what should be used hood it was not freely negotiated. for the repair and the final invoice. Example: a rich landlord dealing Shops should properly prepare and with a poor tenant who has no other close their final invoice based on the options and must accept all terms of a shop’s job costing and gross profit, lease, no matter how restrictive or burhanding the invoice to the insurance densome, because the tenant cannot company for final payment. afford to move. An adhesion contract Moving from a collision recan give a “little guy” the opportunity pairer’s point of view to a legal point

Shop Showcase

of view, attorney Erica Eversman took the floor to discuss repair contracts and authorization to repair which was very similar to the presentation she gave in

Mainstream Media

38 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Attorneys Erica Eversman and John Parese

March of this year. Discussing the differences between the two contracts in a non-DRP relationship compared to the three contracts that make up a DRP relationship, she noted that “insurers like to think they’re in charge of everything. They want all of the control and none of the responsibility.” In a DRP relationship, two informed parties

have an agreement about how to satisfy the obligations of their individual contracts to the customer, usually before a collision actually occurs. In the current aberration for individual shops, the insurer acts as if the repairer has duties to this third party which is why it is so important for shops to utilize a written repair contract. A classic example of a contract of adhesion is found in insurance policies as one party has more power than the other since consumers are legally required to have auto insurance. This is the only industry where consumers do not really have the ability to negotiate their contracts or even see the terms before they purchase it, which is why this binding contract can be cancelled. In the relationship between a repairer and a consumer, the repairer’s responsibility is to inform the customer, acquire authorization and repair the vehicle, while the consumer should receive information, approve the re-

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pairs and pay. Repairers have no right to expect payment from the insurance company as they should expect payment from the consumer, but though it’s important to provide customers with an estimate of the repair cost, consumers are more concerned with how their car gets fixed since the insurance company actually pays the bill. This is why Erica recommends getting the customer’s informed consent after the repair process has been fully explained to them so they understand what is going on with their vehicle. A repair contract should define the customer, the shop’s duties, what type of parts will be used, the damages to the vehicle and the repairer’s professional judgment. A wise inclusion is the right to expectancy damages which will entitle the collision shop to get paid for costs accrued if the customer opts to take their car to a different shop. This also includes reimbursement for loss of work if the insurance company persuades the consumer to have their vehicle repaired at a DRP shop. Additionally, this encompasses the preparations that the shop has made, such as ordering parts and allocating time and personnel. This can also include opportunity cost, defined as potential business that may have been turned away because the shop’s resources had already been dedicated. This will help to establish recovery from tortuous interference. The signed contract ensures that the shop has the right to sue for expectancy damages. The repair contact is designed to emphasize that the repairer is the professional and that repairs are based on the repairer’s professional judgment. When there is a conflict in the opinions of the repairer and the insurance company regarding what is right to do, the repairer’s opinion should take precedence because they are the professional. Erica believes this is important for developing a better public relations standing regarding how complicated collision work is since there are many variables that come into play; unfortunately, the collision industry is losing the public relations war because insurance companies spend a lot of money advertising about how they repair vehicles, leaving consumers with the misconception that their insurance company will fix their car, through the insurer only pays for the repair. Emphasizing that shops “must remember that the insurance company is not their customer,” Erica reiterated her lesson from March about the three

options that insurers have when handling a claim and how a DRP relationship allows them to control the repair without accepting liability. She discussed the usefulness of addressing replevin in the repair contract. Replevin, sometimes known as “claim and de-

Truman, Steve, Rick, Mike and Tony of CCRE

livery,” is a legal remedy which allows the recovery of goods unlawfully withheld from possession via a legal process in which a court may require a defendant to return specific goods to the plaintiff at the outset of the action (i.e. before judgment). Replevin grants the shop the right to a possessory lien, allowing them to retain the vehicle until payment is received. Erica explained the benefits of an Assignment of Proceeds and other documents. Another useful document is the Acknowledgement Terminating Repair Contract and Releasing of Motor Vehicle which is designed to protect collision shops by giving them the chance to retain business by informing the customer of what is going on and by improving a shop’s chances should they decide to take the case to court. A Customer Notice of Insurance Deficiency informs the customer of their insurance company’s refusal to fully pay to properly and safely repair the vehicle. This helps in the public relations battle as it shows the shop’s refusal to breach their repair contract by adhering to the insurer’s pressure to provide an unsafe repair. A Customer Notice of Insurer Delay keeps the customer informed regarding their repair by alerting them to delays caused by their insurance company. Shops can also provide their customers with the Vehicle Damage Insurance Election form which they can send to their insurer demanding to know how they plan to pay for the repair. Though it is highly unlikely that any insurance company will sign this document, the insured has the right to demand a response from their insurance provider. A Notice of Additional Cost can also be sent to the insurance company to inform them of additional costs incurred during the repair. This

40 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

document helps independent collision shops avoid third party interference by refusing to permit the insurer to cause inefficiency and by giving the impression that the insurer must respond to the shop, reiterating the point that the repairer is in control of the repair.

Erica Eversman also recommended providing consumers with a Parts Notice and Authorization document, which she plans to publish on autoepi.org for distribution, in order to help consumers understand the various types of parts that may be used to repair their vehicle. She ended this presentation by repeating her opinion of the dangers of aftermarket and salvage parts and discussing what shops should and should not warrant, emphasizing that shops should not offer a

warranty on anything other than their workmanship. Next, John Parese, Esq., discussed the definition and uses of an assignment. An assignment is a transfer of property or another right from one person to another which confers a complete and present right in the subject matter. As a contract between these two parties, an assignment is subject to contract law and interpretation. Causes of action issuing from a wrong which causes injury to the property or from tort by which the property is diminished or damaged are generally assignable, and a party may assign their right to recover damages to the property without conveying title to the property. A valid assignment requires clear evidence of the intent to transfer rights and a description of the subject matter of the assignment; it must be clear and unequivocal, and it must be noticed to the obligor. While there are no formal requirements for an assignment, the language used must indicate the owner’s intention to transfer the claim. Valuable consideration is essential to support an assignment, and though the word “consideration” does not necessarily have to appear on the assignSee CCRE Seminar, Page 42

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Company Connections

The NitroTech Spray Generator Controls the Uncontrollable with Chasidy Rae Sisk

For many collision shops, spray paint- munication and accountability. Haydell Industries was founded in ing with compressed air means dealing with uncontrollable or difficult to 1986 by Michael Haydell as a manuwith Walter Danalevich facturing representative company. But control variables, including temperatheir focus changed to the production ture, humidity and pressure. “Compressed air is a problem be- and distribution of nitrogen-based spray systems in 2005. They also now sell a cause air changes based on temperature, altitude, and other variables that variety of shop equipment, including cannot be readily controlled,” says industrial paint booths and filters. The use of inert nitrogen offers Michael Haydell, president of Haywith The Insurance Insider dell Industries. As a result, the viscos- painters a gas to spray with, providing ity of painting material also changes a more consistent finish. This leads to with each use due to moisture and a reduction in the use of wet materitemperature, as well as the build-up of als, an increase in booth throughput, static electricity. Static makes the ma- and a decrease in the cost of booth exterial do what it wants to do, not what haust filters. As an added bonus, the the painter wantswith it to do. Chasidy Rae NitroTech Sisk Spray Generator is also enHaydell Industries offers a solu- vironmentally-friendly as it signifition to this dilemma in the form of cantly reduces the VOCs and HAPs their NitroTech Spray Generator. released into the air. Haydell Industries separates the Their vision is to “be the premier provider of Innovative solutions and impurities at a gas level to redirect the systems for customers’ productivity,” air’s properties, and by controlling the with Rae temperature Sisk through their hose, they and they achieve this Chasidy through their values of integrity, excellence, com- are also able to control viscosity, while

using ionization processes to eliminate

static electricity. This uses less paint as Shop Strategies for Savings the nitrogen allows the substrate to be

Inside Insurance Northeast News Shop Showcase

fully covered in fewer coats than can be accomplished using compressed air. Though an air compressor is still necessary to supply the NitroTech Spray Generator with compressed air, the compressed air is replaced by a perfect fluid carrier of Nitrogen, Argon and/or Carbon Dioxide. The system can easily be integrated into a shop’s existing system without changing spray equipment, processes or the preferred coating. The only maintenance required for Haydell’s Nitrogen system is a change of inlet air filters once a year. Since Haydell Industries’ NitroTech Spray Generators reduce the use of materials by 30–50%, collision shops can save up to 20–30% in material costs by integrating this technology into their repairs. Nitrogen spray also reduces application time by 30–50%, providing even more savings in man hours.

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800.673.2493 www.haydell.com www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 41

Continued from Page 40

CCRE Seminar

ment, Parese recommends it. An assignment requires an exchange, such as allowing a customer to take their vehicle without the shop receiving payment if they sign the assignment. An Assignment for Money Due should identify the customer, facility, vehicle and loss. The document does not need to be notarized and should be enforceable without defects. Parese also advises shops to have all customers sign a repair contract. Parese ended his presentation by using clips from “Hot Coffee” and several insurance commercials to reiterate his message about public relations from the March seminar. Tony Lombardozzi, President of CCRE, followed with a brief talk on the need to change the mindset of collision repairers and to send a message of whose business the insurer is visiting. In the collision industry, “we operate every day on fear”, Lombardozzi claimed, continuing to elaborate that shops fear losing business and being subjected to steering. On Saturday, John Parese began the seminar with a presentation entitled Ten Steps to Consider When Filing a Lawsuit. The first step is to provide proper documentation, including a signed repair contract and the final invoice. Noting that “the insurance company doesn’t like being sued,” Parese reminded attendees that the insurer’s estimate is just a guess on the likely damages and is not reliable. The second step is to verify that all work was completed and billed correctly. Because lawsuits result in hyper scrutiny on both ends, it is imperative that the repairer did everything they claim they did during the vehicle’s repair. Step 3 requires the use of a proper Assignment of Claim which will allow the shop to stand in the customer’s shoes to acquire payment. The fourth step involves choosing a reasonable customer, and it is important to lay the proper foundation of information as surprises in the courtroom are a bad idea. The case a shop chooses to fight in court should involve a cooperative and informed consumer. Step 5 is to establish liability with the information to prove the basis of the claim. Parese notes that “you have to establish negligence in order to prove liability”, but on short pay cases, it can be argued that the insurance company accepted liability by paying on the dam-

ages, even if they did not pay in full. Step 6 requires securing all necessary documents, including the police report, proof of liability and all information about the parties involved. Providing all of this will make the process as easy as possible on the lawyer. While shops may not win every single case, each small victory affects business since it will dissuade insurance adjusters from harassing the shop. The seventh step involves finding an attorney to take the case, and Parese notes that small cases are often combined into one larger case. Step 8 is to create a labor rate survey by surveying 12–20 local shops to disprove the insurance company’s common claim that a shop has the highest labor rates in the area. This survey can help justify the claim that your rates are reasonable, and the goal is for your posted rates to fall somewhere in the middle of the shops included in the survey; however, it is important not to share this information to avoid accusations of conspiring with others to increase labor rates. Step 9 is to provide several examples of being paid your labor rate, proving your posted rate is reasonable and fair. This is critical as the insurer should be paying the same rate as a customer off the street. The tenth step is to stamp all documents with “accepted under protest as partial payment only for property damage.” Repairers should appear at court dressed professionally and with a business-like approach in order to show the judge that they are taking the case seriously, and this will help overturn preconceived misconceptions and stereotypes about the industry as well as to show that the repairer is not trying to take advantage of anyone but is trying to stop getting taken advantage of. Parese ended his presentation by discussing tortuous interference with the repair contract and how to prove the insurance company intentionally sought to interfere with the contract between the repairer and the customer. In order to show that the defendant’s conduct is tortuous, the plaintiff must prove improper motive and willful malice. This sends the message that the insurer is not above the law and that they can and will be sued for refusal to comply with the Code of Ethics and other laws. Once Parese concluded, Kurt Lundgren, an attorney in the medical insurance industry, presented about the similarities between the automotive and medical insurance industries and their issues. He noted that it is naive for collision repairers to believe they are

42 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

immune to the insurance companies, but repairers are in the business of fixing vehicles and providing customer service to make money, so they should get to the bill when dealing with insurers. He pointed out that “this is all a game for the insurance company, but this isn’t a game for you guys.” Lundgren noted that in both the auto and medical insurance industries, proof is required to prosecute, but he urged repairers to recognize and emphasize that they are doing this to help the consumer. He also praised attendees for being on the right track about how they deal with insurers, agreeing that shops should not negotiate with insurance companies. Tony Lombardozzi led a discussion about the audience’s experiences. He urged attendees not to put anything on paper or online that they are not prepared to defend in court. Though he admits that the industry can be depressing at times, he insists that repairers can have fun with fighting the insurers, as well as making money, because it is exciting to make the insurance companies justify their actions. He believes that shops “need to see that the process works and they can have fun with it.” Discussing how insurers have their

own versions of estimating software that provides a lower estimate than the shop’s version, Tony noted that everything insurers do is based on this estimate, so repairers need to take that tool out of their hands by removing the insurance company’s estimate from the equation. Tony added that the insurers “constantly have their hand in our pocket… and come at us in so many ways that it’s hard to keep up with them.” Tony noted that the insurance companies have spent 30 years brainwashing repairers to believe they are the insurer’s servants, but in reality, collision shops only need to allow adjusters to look at the vehicle, complete their paperwork and go home. Erica chimed in, encouraging attendees to “make it painful for [the insurance companies] by doing it your way, the right way... make it clear to them that you’re not going to be the one who changes.” She went on to state that insurance companies have no right to expect collision repairers to stop their process just because the insurer has adopted another bizarre practice. Insurance companies are great at propaganda and brainwashing, but when they try to dictate what a shop can and See CCRE Seminar, Page 47

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Overhaulin’s New Season Starring Chip Foose

100 Golfers Attend LIABRA’s 11th Annual Golf Tournament; and Meet on Labor Laws The Long Island Auto Body Repairman’s Association held its 11th annual golf outing at the Port Jefferson Coun-

best of each shot, then drop their own ball at that point and play that way until the ball is holed. This style of play allowed the round to move at a good pace and helped all the golfers get through their round and into the clubhouse for an hour of cocktails and appetizers followed by a delicious buffet dinner. After dinner over 300 prizes were raffled off. One of the many winners, Peter Gutteri of National Insurance, won a car DVD and entertainment system courtesy of Advantage Nissan. (left to right) Willie Hutchinson, Scott Vari, Brad LIABRA would like to espePanichilla and Joe Mercuri cially thank Golf Committee try Club on Sept. 24. More than 100 Chairman Paul O’Connell for all his golfers attended the event, which in- hard work and dedication, as well as cluded dinner and a raffle of fantastic prizes donated by several sponsors. The grand raffle prize, a four-day golf trip to Myrtle Beach, SC, for four people, was won by Gary Padovant of Gary’s Autobody in Westchester, and was donated by Donaldson’s Subaru. The challenging course, designed and built in 1908, is very sloped and hilly, and beautifully landscaped and maintained. The players teed off at 1 p.m. using a shotgun style start. The format for this year’s round was a full scram- Raffle winner Peter Gutteri of National ble. In scramble, players select the Insurance

Velocity is rebuilding the popular car franchise OVERHAULIN’ and bringing it back to viewers this October. Featuring Chip Foose, the allnew OVERHAULIN’ is set to unveil one-of-a-kind automotive transformations to several lucky and well-deserving car owners. The new and improved OVERHAULIN’ premieres October 2 at 9PM ET/PT on Velocity. Foose is known for combining creativity, technology and ingenuity, when restoring classic cars resulting in some of the most unique and breathtaking vehicles anywhere. However, OVERHAULIN’ goes beyond the garage, exploring engaging human stories and the strong emotional connection between man and machine. In each episode of OVERHAULIN’ viewers will watch Chip and his build team as they makeover worn-out automobiles into works of art. The restoration projects feature deserving individuals ranging from returning veterans to those negatively impacted by the tough economy. Each altered auto becomes a life-changing surprise for its unknowing owner. Co-host Chris Jacobs returns, as well as fabrication and restoration expert Jessi Combs.

RX-8 2012

all the volunteers and sponsors who helped put this event together.

Super raffle winner Gary of Gary’s Autobody in Westchester

In other LIABRA news, the association held a New York State Labor Department educational meeting on Oct. 16 in Hicksville, NY. The labor law mini seminar was presented by one of the premier labor law experts in New York State. Members were encouraged to attend to “come learn the proper way to run your business to avoid costly problems” because “the Labor Department has targeted our industry for audits,” the association said. Guest speaker was Robert Arnold of Arnold Standard in Rockville Centre, NY.

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Social Media for Shops

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

The Original Social Media, and Most Important, is the Phone Call with Ed Attanasio

While thinking through some social media topics recently I realized that the original and still current champion of real social media is the simple phone call. In the past several years, I’ve called literally hundreds of body shops, vendors and collision-related businesses over the phone to interview them for articles I write for Autobody News. And every time I encounter a strange phone experience when calling a body shop I’m surprised. In any business, the phone is usually the first contact you’re going to be making with the public, and that’s why it’s so important. And in the collision industry it’s even more crucial. Think about it. Your potential customer gets in an accident. They get three or four names of body shops in their area from their insurer and they start calling them. If they’re left on hold or the person answering the phone is rude or inattentive, many people will simply hang up and call the next shop on their list. So the big question is—do you give good phone or are you currently losing business by falling short in this important area of customer service? Although e-mail and text messaging have become more popular ways of communication, we still use our telephones almost constantly for both personal and business reasons. It seems that good telephone manners are common sense, but my recent experiences have led me to believe that there are many lessons to be learned by body shops in the arena of telephone etiquette. The topic of phone protocol and how some body shops don’t seem to value the importance of it became more apparent recently when I was calling a body shop to interview the owner for an upcoming ABN article. First, the phone rang at least 12 times before someone picked up. Okay, I’m thinking, they’re a busy shop, no problem. It happens. Then, I heard a voice, but for just a millisecond. “Hold.” It made me feel like I was ordering a pizza for delivery. Without a simple “hello” or “I’m really busy, can I get back to you in just a minute?” I sat on hold for at

least five minutes, and then the call went directly to voicemail (or in this case, I call it “voice jail’) without any explanation. No greeting, just a beep. So, I hung up and called back so that the painful process could resume all over again. This second time, the woman answering the phone shouted out “Bill’s.” Not “Bill’s Collision,” which is the actual name of the business. But at least this time around we had a brief conversation. I could hear her chewing gum and her indifference to my inquiry was immediately evident. “Is Bill there?” I asked. “No,” she replied. “Do you know when he’ll be returning?” After a long sigh, she said, “No idea. Do you want his voicemail?” Been there, done that, I thought. “We’re really busy right now,” she added. And without any further warning—boom, I was back on hold. At that point, I hung up once more and decided to try again later. But each time I called, I got the same person and each time she seemed even more bored than the time before. I could almost hear her eyes rolling! The other call I hate is the one where the receptionist grills you and after a series of questions you might be allowed talk to the boss. I can understand, because most body shops receive 10-15 sales calls every day, so screening out the wannabes is crucial and a good phone person is adept at it. But, when you feel like they’re interrogating you in the process, that’s bad phone protocol. Hey, I’m not trying to reach Obama, it’s a body shop owner—so why are you making me feel like I’m the paparazzi chasing your boss down? It’s all about the way things are said and when a receptionist gets too protective of his/her boss, it’s a real turn-off. So, how should body shop employees act on the phone? I asked an expert on the subject. Her name is Cynthia Grosso, a business consultant, etiquette coach and author of the owner of the Charleston School of Protocol and Etiquette in Charleston, SC. She gave me a very simple list of do’s and don’ts about phone manners: ● Never call someone “Honey,

44 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

sweetie, or darling” on the phone, especially if you don’t know them. It’s too personal and unprofessional. ● Be conscious of the tone of your voice, especially when you answer the phone. (If you’re having a bad day, please keep it to yourself.) ● Be sure to identify yourself immediately when the person you are calling answers. Dead air will kill a call every time. ● If you happen to be screening calls, do it gracefully without acting like a bodyguard and offending the person who is calling. ● Do not eat while talking on the phone. That’s why lunch breaks were invented. ● Always return phone calls. Make a point to find the time. It only takes a few seconds to call someone back or to send an email explaining that you will call them back when you are available. Not returning a phone call is the worst offense and inexcusable.

The rule on returning phone calls is within 24 hours and the standard for emails is 48 hours for a return response. “Phone communication is all about finding a common language,” Rosso explained. “Everyone wants to feel important, and keeping that in mind is key to any successful phone interaction from a customer perspective. Don’t leave people on hold for more than 30 seconds without checking in. And remember this—the telephone is your front other door and an extremely valuable component of how to run your business.”

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Syracuse Body Shop Restores Ride for Co-Founder of Youth Mentoring Program A 27-year-old man who is the co- the parking lot. founder of a youth mentoring program Davis co-founded Team ANGEL, was the happy recipient of a new car, which stands for Avoid Negative thanks to the Recycled Rides program, Garbage, Enjoy Life, with his friend an auto repair shop and an insurance Ed Mitchell. The organization offers company and agency. a mentoring program for teens to enRyedell Davis of Syracuse, NY, courage them to stay off drugs and is the proud new owner of a 2005 avoid violence. Suzuki Forenza, reported The Post“All we’re trying to do is change Standard. the way kids in this city think,” Davis Davis is the co-founder of Team said. A.N.G.E.L. Inc., a youth mentoring program that operates out of the Southwest Community Center. His mom’s car had been his ride to his new job at the Hillbrook Juvenile Detention Center or his work with Team A.N.G.E.L. About 10 people from Sam’s Auto Body & Service Center in Syracuse replaced the car’s bumpers and doors, banged out dings and repainted the Forenza to restore it to its showroom shine, said Sam Vigliotti, pres- Ryedell Davis of Sycracuse, NY, received a 2005 ident of the Syracuse company. The Suzuki Forenza from Recycled Rides. shop’s vendors donated parts and paint for the project, he said. The car will allow him to get to “It’s a blessing. That’s all I can work, travel to speaking engagements, say,” Davis said. and take the teens on outings, he said. “Drive it with great safety and It was one of four the insurance pleasure,” said Steve Cibelli, assis- company was giving away this fall tant regional vice president of The through Recycled Rides, Cibelli said. Hanover Insurance Group, as Davis Recycled Rides is a nationwide got into the car for a test drive around program created by the National Auto

Body Council. Cibelli explained how the program works. An insurance company takes title to a wrecked car that it has determined would cost more to repair than the vehicle is worth. It’s then turned over to an auto repair shop, which donates the parts, the paint and the time to repair the vehicle. The car is then given to a person or organization in need, Cibelli said. This is the first time Hanover’s Salina office has participated, he said. The insurance company worked with the United Way of Central New York to choose a worthy recipient. Bailey, Haskell & Lalonde, an agency that works with Hanover, did a background check on him, Cibelli said. Davis has ties to the United Way, said Frank Lazarski, the organization’s president. As a high school and college student, Davis worked with Onpoint for College, and later with Onpoint for Work. Both are United Way agencies, he said. Davis is a graduate of Syracuse University with a degree in human services and health. Team A.N.G.E.L. currently has a non-profit status under Onpoint, but is raising money to become its own nonprofit.

Queens Body Shop Uncovers 50 Yr-Old Fire

A body shop in Queens, NY, will pay tribute to six firefighters who lost their lives at the location in 1962. Mark Eberle, general manager at VIP Auto Body in Maspeth, said it became real to him when they started doing renovations. “They found charred lumber and an elevator shaft,” he said. The 50-year-old tragedy, previously unknown to the owners, was unearthed in the local newspaper archives. The building had been a soap and fat rendering factory when the fire broke out on October 26, 1962. A brick wall fell and six firefighters were trapped and killed. “I never got over it,” said Joyce Eagans, whose husband, Francis, was one of the six. They had just moved into their first home three weeks earlier. “My son was only two when his father died. He really didn’t remember.” When she heard Eberle and the owner of this shop, Peter Keane, had decided to put up a plaque and have a ceremony, she was moved. “I told him that I was very happy,” she said. “I was in shock.” On the 50th anniversary in late October, the place will be packed with families and firefighters.

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Honda Develops New Welding Technology, UHSS Structure for 2013 Accord

Honda has developed some new technology for vehicle construction, and they have applied it for the first time in the world to a mass-production vehicle; and not just any mass-production vehicle, the Honda Accord, one of the top-five selling vehicles in the United States. The newly redesigned 2013 Honda Accord went on sale in the United States on September 19, and its construction is the result of Honda’s next-generation Advanced Compatibility Engineering (ACE) body structure which utilizes the new welding technique as well as hot-stamped and other ultra-high strength steels to build its cabin structure.

The Accord’s subframe is made with a combination of steel and aluminum joined together with a process called Friction Stir Welding (FSW). The continuous weld technology generates a stable metallic bond between steel and aluminum by moving a ro-

tating tool on the top of the aluminum which is lapped over the steel with high pressure. Honda says the resulting weld strength is equal to or greater than conventional MIG welding. Honda also developed a non-destructive inspection system for quality control that uses a highly-sensitive infrared camera and laser beam to inspect every unit. The carmaker says the Friction Stir Welding system it developed for this process can be also be used for aluminum-to-aluminum welding and could be used for production of a full-aluminum subframe. The subframe however, should not cause many repairability issues according to I-CAR Technical Director Jason Bartanen, as Honda provides no repair procedures at all for the part, and specifies complete replacement only. “What will cause some issues is the high strength steel used in this car’s body structure,” said Bartanen speaking from the I-CAR Tech Centre in Appleton, Wisconsin. The newly redesigned 2013 Accord body uses 55.8% high-tensile steel, more than in any previous Accord. And 17.2-percent of the steel is grade 780, 980 and 1,500 MPa, extremely high grades that have never before been used in any Accord, and in fact, very few other cars, according to Bartanen.

Matrix Electronic Measuring, Inc. Awarded Two Patents

Matrix Electronic Measuring Inc., a developer of advanced measuring devices for the automotive collision repair industry, has obtained two patents for its new vehicle measurement system called the Matrix Wand. Rob Bailey, director of sales engineering and business development for Matrix Electronic Measuring Inc., details how the Matrix Wand adds efficiency and quality to shop estimating procedures. Watch now » The Matrix Wand is a handheld vehicle measurement device used for estimating structural collision damage. The tool, which was publicly launched in April, uses two cameras that capture three-dimensional images of vehicle damage. Estimators can use the images to measure all damage on a vehicle’s body and engine components, reveal hidden damage, verify repair quality and enable predictive wheel alignment.

Matrix has been awarded two patents for the measurement system and method, which was developed by Guidelight Business Solutions, a global business and enterprise application development company based in Austin, Texas. Matrix has two more patents pending on the tool, which the company expects to be awarded soon. With ownership of the patents, Guidelight said Matrix will be able to reduce the number of competitors in the market and obtain revenue from licensing. “The patented innovations Guidelight has developed for Matrix pushes the Matrix Wand to the forefront of the burgeoning marketing of vision systems and augmented reality,” said George Stevens, CEO of Guidelight. For more information about the Matrix Wand, visit thematrixwand.com.

46 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

“This is one of the first cars to use such high strength steel (1500 MPa) in its body structure,” says Bartanen. “Most applications only use it only for bumper beams. But the new

Accord uses ultra-high strength steel in its A pillar and B pillar reinforcements as well as its rocker reinforcements. Honda is requiring MIG brazing only in these areas. While Honda is not the very first to build such a body structure, none of the previous vehicles even come close to the sales volume of the Accord. “The Volvo XC60 is also using similar ultra-high strength steel (1,500 MPa) in the structure,” Bartanen noted.

The Accord has historically sold between 250,000 and 400,000 units a year compared to XC60 sales of approximately 25,000. Bartanen said I-CAR is currently updating its Honda and Acura training available online. The new Accord will be covered in I-CAR’s Collision Repair Overview for Honda and Acura Vehicles (HON01) and should be available within the next few months. “We have an Accord body in white on its way here right now,” Bartanen noted. “We are going to paint it to show the various steels used in this car and prepare it for display at the SEMA show.” The ninth generation Accord, which also contains Forward Collision Warning and Lane Departure Warning technologies, officially debuted at dealerships across the U.S. on September 19 at a base price of $21,680 plus destination charge.

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American Honda Launches ProFirst Shop Recognition Program

American Honda Motor Co, Inc. announced the launch of the ProFirst body shop recognition program on Oct. 15. Open to both dealer-owned and independent collision repair shops, the program is designed to promote the correct, complete, and safe repair of Honda and Acura vehicles and provide support to shops that have demonstrated a commitment to a high level of customer care and satisfaction. To qualify, shops must conduct a minimum number of transactions using OEConnection’s CollisionLink software, be a designated ICAR Gold Class Professionals® business, and have at least one person presently employed by the shop who has completed the I-CAR course, Collision Repair for Honda and Acura Vehicles (HON01). “CollisionLink is a component of the ProFirst program because of the numerous benefits it provides to both shops and dealers, said Bill Lopez, Director of OEM Program Development at OEConnection. “Through CollisionLink, shops can take advantage of Honda’s Collision Select parts program, which enables them to use more genuine Honda and Acura parts while managing their overall repair costs.” Lopez added, “CollisionLink also helps to increase efficiencies and parts

ordering accuracy, which means fewer returns, faster cycle times and, ultimately, more satisfied customers” John Van Alstyne, I-CAR CEO & President stated, “The ProFirst body shop recognition program, in conjunction with the I-CAR Gold Class Professionals designation, will align participating shops with a training program that is meant to elevate the customer experience and enable shop employees to work up to their full po-

tential.” Van Alstyne added, “Training and knowledge provide a platform for business and personal excellence, generating benefits for both the organization and the customer, including increased operational efficiencies, reduced cycle times, minimized repair mistakes, and most importantly, complete and safe repairs.” Qualifying shops will receive a handsome plaque, a place on the shoplocator tool on the recently-launched American Honda consumer web site, free access to the Honda and Acura parts catalog, parts bulletins, service and repair information, and more.

Shops will benefit through increased recognition of the shop’s professionalism, increased opportunity to reach more customers and the promotion of customer confidence and loyalty. To see full program details, go to profirst.honda.com or profirst.acura .com. Each shop must enroll as a separate entity at its place of business as the ProFirst web site will manage the shop’s access to the parts catalogs and service information. Jim Roach, Senior Vice President for American Honda’s Parts & Service Division noted, “We are pleased to be working with OEConnection and I-CAR for the ProFirst program. As the industry changes and automotive technology changes, we must make changes in our programs to keep pace. ProFirst, and our association with both OEConnection and ICAR, is a step in the right direction. ProFirst is a win / win for all involved, especially for Honda and Acura owners.” For more information on the I-CAR Gold Class Professionals® program, visit the I-CAR website (www.i-car.com) and click on “Collision Repair Gold Class Professionals® “ under the “Training and Recognition” tab.

Continued from Page 42

CCRE Seminar

cannot do, it is necessary to ask why or who says so. Erica stressed, “they can’t make you do anything because you don’t work for them.” For the final segment, Tony introduced the Stump the Layers panel which consisted of Erica Eversman, John Parese and Kurt Lundgren. Responding to questions from the audience, the three attorneys and the seminar attendees discussed topics such as liens, total loss, consumer fraud, repair contracts, unfair claims, how to handle estimates, supplementals, court cases, invoices, short pay, explaining things to customers, codes of ethics and bringing claims. As he wrapped the event up, Tony explained that he wants everyone to understand that collision shops do not need to keep operating the way the insurance companies want them to. His goal is to show independent collision shops how to successfully operate their shops without outside influence by focusing on the legal aspects of running their business without insurer interference. For more information contact: CCRE at theCCRE.com.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 47

Continued from Cover

Greg Coccaro

it does.” North State sued Progressive under New York’s deceptive acts and practices statute, General Business Law section 349, for misleading consumers into taking their damaged vehicles away from North State to competing body shops within Progressive’s “network.” North State’s suit alleges that the insurance company coaxed customers away by maligning the shop’s work and pricing. In North State Autobahn v. Progressive Insurance, the Second Department’s ruling, denying Progressive’s motion for summary judgment and allowing North State’s suit to go forward, confirmed a business’ standing to recover for direct harm caused to it by another business’ deceptive acts and practices—even if that business is a competitor. Justice Robert Miller, writing for a unanimous panel, held that North State’s allegations concerning Progressive’s acts depriving consumers of their choice of body shop satisfied the statute’s requirement that the deceptive acts at issue have an impact on consumers at large. The

court further held that the law does not require that North State identify specific consumers who were harmed. The court also rejected Progressive’s argument that North State’s injury was merely derivative of that of the injured consumers, finding that North State adequately alleged direct harm the instant customers were misled into taking their vehicles to a network shop, regardless of whether such customers ultimately suffered pecuniary injury. The fact that North State was a business competitor and not the consumer in the transaction was held to be irrelevant for purposes of standing under the statute, under which punitive damages and attorneys’ fees are recoverable. “This is a significant decision that enables businesses to pursue ‘deceptive acts and practices’ claims in businessto-business disputes—even between competitors—that have an impact on consumers at large,” said Dennis Artese, a shareholder at Anderson Kill & Olick who represented North State. “That’s critically important because it allows well-funded businesses to police deceptive practices where the state attorney general does not, and where individual consumers cannot, because they just do not have the financial

means to fight an insurance goliath like Progressive in the legal system.” Along with Artese, North State was represented by Finley Harckham of Anderson, Kill & Olick and solo practitioners Anthony J. Mamo, Jr. and Richard P. Stone. The Progressive Group was represented by Nelson Levine de Luca & Horst, LLC, New York, N.Y. (Michael R. Nelson, Kymberly Kochis, and Francis X. Nolan IV of counsel), for appellants.

Background In 2007, North State Autobahn, Inc. commenced this action against the Progressive defendants and a number of Progressive employees, including the defendant Nicholas Stanton. Asserted in the complaint, was that the Progressive defendants had violated General Business Law §349. Specifically, the complaint alleged that the Progressive defendants deceived claimants who sought to have their vehicles repaired at the plaintiffs’ and other repair shops that did not participate in their DRP by making misrepresentations as to [Coccaro’s shop’s] workmanship, price, timeliness of service, and character. North State also alleged that the Progressive defen-

dants issued damage repair appraisals well below fair-market value at about one-half the estimate of the plaintiffs’ estimate, and that the Progressive defendants represented to claimants that the plaintiffs would make only partial payments for repairs which would necessarily require claimants who had their vehicles repaired by the plaintiffs or other independent shops to incur out-ofpocket expenses. The plaintiffs further alleged that the Progressive defendants engaged in such deceptive practices in order to mislead customers of the plaintiffs and other independent shops to believe that they must have their vehicles repaired at repair shops that were members of the DRP. The Progressive defendants allegedly failed to inform these claimants that the repair shops that participated in the DRP used inferior aftermarket parts, or were not registered or qualified to work on specific vehicle models. As a result of the Progressive defendants’ actions, the plaintiffs alleged that they sustained direct economic loss in the form of more than $5 million in lost business sales, and that the public at large sustained other damages. For more on the case, search on “Coccaro” at www.autobodynews.com.

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John Shoemaker Coaches Shops to ‘Negotiate for Success’ by Melanie Anderson

John Shoemaker of Virginia is an Air Force veteran with 23 years service in the automotive field as a technician, trainer and formal instructor, and with several additional years as a collision center director for a major dealership group, overseeing three collision centers in Virginia. Shoemaker is now a consultant with JSE, a company he created to share 35 years’ worth of automotive management experience to assist collision centers in improving operations. During the 30th anniversary of NACE in New Orleans, LA, Shoemaker presented Negotiating for Success — a Look at the Negotiations Necessary to Keep Your Collision Center on Top. Negotiations, Shoemaker says, not only affect profits, but is important in preparing a contract or business deal. To negotiate successfully, several elements must be in place during the preliminary stage of a business deal. Those elements include establishing a set of core values, being honest and ethical, maintaining a standard that meets industry and customer expectations, delivering as agreed and responding to the customer’s needs. What is non-negotiable is making a profit. Are you a negotiator? You can be if you are confident, focused, able to stay on track and be unemotional. A successful negotiator will know the objective before he or she begins, be able to define the main issues and can focus on them one at a time. Negotiations will go much smoother if a win-win is determined. Always have supporting documentation as back-up, which can include manufacturers specifications, a complete damage appraisal and structure measurements. The person with the most information usually wins, says Shoemaker. One of the first steps to take when entering negotiations is identifying the appropriate person with whom to negotiate with. Develop a rapport with that person and determine their focus. Finding a common ground will help you to capitalize on similarities and keep the conversation from getting confrontational. Verbal tone and body language is important. Keep your emotions in check. It is important that you establish your repair standards up front. Have a complete damage appraisal prepared

and itemize each repair step required. Document only the repairs required and isolate prior damage. List customer concerns.

Negotiating with Insurers When dealing with insurers, review the entire appraisal and make a note of the ‘no’s’ but keep moving. Go back to the ‘no’s’ after reviewing the complete appraisal. Negotiate the repair first, then

the labor, but do not negotiate your repair standard. Realize that you will not see eye-to-eye with an insurer. Their job is to negotiate the cost down because they have specific numbers to meet and they are protective of their bonuses.

Negotiating with Insurer DRPs One of the best things you can do when negotiating with a DRP insurer is to develop a friendship and a rapport with the insurance adjuster and get to know the insurer’s agents. You want to create a good reference by ensuring the adjuster’s experience is always good. Promote your efficiencies and your customer service. But also make sure the adjuster knows what you want on their program. Agents are required to maintain training and this can be an opportunity for your shop to sponsor events. Having a manufacturer certification makes your facility more attractive to an insurer and helps establish credibility. Have space available for them to work. Use existing work to establish opportunity with the insurer. Look at the number of non-DRP repairs performed for the insurer and provide insurer performance reports for those repairs. This cements your abilities and proves a need. Negotiating with Vendors When negotiating with vendors, determine a retail rate for services, such as towing, alignments, and glass work. With parts suppliers, explain your needs and cycle time mandates. Find out what they need to get the correct

part and incorporate electronic parts ordering. Give vendor complete order information to reduces parts errors. Negotiate inventory levels by defining guidelines for out-of-stock parts and require them to search other dealers. Establish a process for parts returns and coordinate order cut-off times. Set a different time for each vendor. In addition, define the delivery process and specify that only complete orders are delivered. Identify inspection requirements and negotiate parts price differences. Parts price differences are the #1 cause of supplements, Shoemaker says, while insurance companies strive for zero supplements. Set a reasonable dollar amount for a price matching estimating system and establish guidelines for higher amounts. Set a performance measurement tool in place to manage system reporting; to track parts returns and delivery delays, to identify damaged or wrong parts and the frequency.

Negotiating with Paint Suppliers Explain your needs to the paint supplier. Define the paint level required

and the flexibility you need in your paint line. Understand their distribution capabilities and specify your delivery expectations.

Negotiating with the Vehicle Owner Determine your customer’s need, identify their concerns and communicate to the customer so they know you understand them. Work to resolve the situation, not to sell. Provide a solution, but make sure you understand the complete situation before answering too quickly. Be flexible. Educate the customer on repairs required and write a complete damage appraisal. Is a complete repair needed and will aftermarket parts fit their need? It is easier to remove items than to add items later. Discuss a specific time for the repair and determine their transportation needs. In regards to payment, who is paying for the repair? Is it being processed through a third party? Is the customer aware of the deductible? Assist with claims processing and remember that vehicle owners don’t deal with this everyday. Help them to understand the process and be their advocate if necessary.

Dykstra Automotive Institute Survey Identifies Broad Industry Concerns in 2013: Esp. Financing and Suppliers

According to the 2012 Dykema Automotive Institute Survey, which was released on October 17th, automakers will have to contend with limited financial bank lending and raw material costs in the following year. “Every major company has gone through tremendous upheaval and dealt with changes to every step of its supply chain,” said Aleks Miziolek, director of Dykema’s Automotive Industry Group. “There are many challenges still on the horizon for automotive executives that may impact the long term success of the industry’s future.” From the total of 100 auto industry advisers and senior executives that took part in the survey, 40% of them said that raw materials increasing costs is the main concern of the auto industry, while 21% of them said that it is the financial bank lending that will affect the automakers in 2013. Besides these two challenges, the survey also includes labor issues, financially troubled suppliers and even the potential liabilities of self-driving vehicles and other new technologies. A respectable 43.4% said that they were working on vehicle-to-vehicle technology, but even more— 55.3%—said that their companies

were working on vehicle-to-infrastructure or systems, which would allow cars to “talk” to traffic lights and other elements on the grid. Over 92% said that they’d seen an increase in demand for their company’s products/services over the past year. Most, 76.8%, have had to make internal changes to meet that growing demand. Given that vehicles are becoming increasingly connected to the web, Dykema asked respondents about their biggest concerns on that front. Just over 35% said that they were worried about the distractions that accompany connected cars. However, more than 28% said they had no real concerns. When asked about investments in technology, 60.5% said that the were developing “sensor-based safety systems that either warn or assist drivers in potential collision situations.” On the legislative front, the biggest issue of concern was “energy and environmental legislation.” Part of the survey also discussed potential liabilities of self-driving vehicles and other emerging automotive technologies; about 1 in 3 respondents said driver distraction was their chief concern. Approximately 1 in 4 had concerns about data ownership of technologies.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 49

Steve Trapp Presents Implementing Best Practices for SOPs by Melanie Anderson

Steve Trapp, Program Manager at DuPont Performance Services and DuPont Performance Alliance, presented Strategies for Implementing Best Practices for SOPs in Collision Repair at NACE on Oct. 13. Trapp, who runs a value-added program for DuPont, helped build standard operating procedures for his company. Trapp opened the session with the question, Where should you focus SOPs? And quickly answered it, “On the area where you are having problems in the business. It could be sales or reducing costs or in another area.” He cautioned against Steve Trapp writing standard operating procedures for the entire business if other areas are working just fine. In a nutshell, standard operating procedures (SOPs) is a way of saying “this is how we want to do this, every time.”

Trapp says the best way to write SOPs is to use a flipchart and let the whole team get involved, so you have their buy in when it comes time to follow the SOPs. The benefits of SOPs means minimizing waste: such as work not being done right the first time, being over

never had to learn at before. Things are changing all the time. If we don’t change, we will perish.” The benefits of standard operating procedures include consistency of quality, improved and leveled daily throughput, improved productivity and efficiency, and cost and expense

productive, waiting on people or having vehicles sit idle, not consulting others, not having enough or proper inventory. Because changes occur daily, your SOPs also may change. “Can you think of an example of a recent change our largest customers have asked us to embrace with limited preparation?” Trapp asked. “The biggest change affecting the industry is the insurer scorecard.” The challenge of SOPs, Trapp continued, is that they will change every couple of months. “We are literally learning things at a pace we’ve

control. It also means being able to properly train new hires and crosstrain the entire staff with less re-work needed and better morale. New employees come in expecting to be trained in the shop’s process. If they aren’t trained, they will revert to doing things the way they did at their last place of employment. “We like order, we prefer it,” Trapp said. “People like a standard. The key is that staff need to be a part of the process. if they are a victim of it, they feel trapped.” Trapp suggests that SOPs be used as labels, stickers on the floor or in

“Failure is not fatal, but failure to change might be ...” –John Wooden

posters because many people are visual learners. Brainstorming meetings should be one to two hours with a flip chart or white board available. And always, keep the meeting positive. “Attack the process, not the person!” Trapp said. Ask staff to honestly assess the process for waste and define quality standards in the eyes of a customer. Trapp suggests the following formula for improving the brainstorming session. Called ‘3-5-1’ the process asks for participants to write down www.autobodynews.com three ideas in five minutes, and then CHECK IT on OUT! as a group, focusing the one idea that comes out on top.

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Inside Insurance

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

Clean Up Your Own House Before You Gripe About Someone Else’s with The Insurance Insider

“I wish I had a nickel for every time Truthfully speaking, we realize that happened.” our house isn’t always in order in Yes, that’s an overly-used ex- terms of adjusters, which is the reason Rae Sisk pression, but it with appliesChasidy to so many things. How rich would you be, for example, if you could charge a nickel toll for every worthless adjuster that walked through your door? I’m guessing that you are now imagining yourself as Bill Gateswith or Warren Buffett.Rae Sisk Chasidy Well, if you’ve read any of my previous columns, you know that I am now going to give you the other side of that tollway coin. Yes, the one you just collected from one of my knowledgeable adjusters. I personally believe adjusters are an underappreciated segment in this industry, especially as it relates to the perception of the body shop. More often than not, the lowly adjuster is we spend so much time, money and viewed solely as a gate-keeper, stand- effort to train, develop and retain staff. ing between you and the pot of gold Although you may view our efforts as that insurance companies report mak- pathetic or perhaps only “window ing each year. dressing,” we view your industry’s

Northeast News Shop Showcase

corresponding efforts as non-existent. Think about it: While we may not always do an exceptional job, the person most impacted by our lack of experienced adjusters is our own company. The cost of an inaccurate insurance estimate theoretically doesn’t cost your business money, provided you don’t assume the insurance estimate is 100 percent accurate. Most shops will use the insurance estimate as a baseline and make adjustments. Other more independent thinking shops will refuse to use it at all and write their own instead. So the biggest cost to a shop from an inexperienced insurance adjuster is probably the price of perception: If the adjuster doesn’t prepare a thorough estimate and there is a large supplement, the consumer may question the shop’s integrity. I don’t want to undermine the price you have to pay for our inexperienced adjusters, but the price we pay for YOUR inexperienced “adjusters” can’t be measured. There’s a financial cost as well as the tremendous negative impact it has to CSI results. We realize our house isn’t in order, but have you seen the mess in yours? Adjusters may seem like easy targets as shops lash out against insurers. I guess to some extent it’s understandable. I would be frustrated too if I was continually arguing why I needed time to do a specific labor operation. But before you throw a stone at the window of our house, take a look inside yours. I can see inside and you are in dire need of Martha Stewart, Better Homes and Gardens and a Bob Villa make-over. The topic of inexperience or poorly-trained shop “adjusters” is one I’ve never seen discussed in any trade magazine or at any industry even. I’m not sure why. Maybe because writing a proper estimate, speaking professionally to a customer, and handling a

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claim from start-to-finish is considered Body Shop Estimating 101. To put it in school terms, it’s a prerequisite to do the job. If you classify yourself as a shop estimator, you can do all of those things. right? Wrong. Similar to our adjusters, shop “adjusters” come in all shapes and sizes. Finding someone that has that trifecta of shop estimating skills is as rare as a Buffalo Nickel. If you have one, consider yourself lucky. I know how difficult it is. That’s why we insurers invest so heavily in training. (Please hold your laughter. Yes, we do invest a lot.) I apologize for being cynical, but I wonder why shops spend so little time training their adjusters. Is it advantageous to have an inexperienced person writing estimates? Assuming that there is no financial gain, the lack of attention to the details of customer service is reprehensible in a day and age where customer service is a huge priority in any business. Your inexperienced adjusters hurt our business and the performance of your shop. I can assure you that a shop with outstanding KPIs (key performance indicators) is usually the direct result of a high-quality shop “adjuster.” Poor performing shops are usually rife with inexperienced adjusters, high turnover and a lack of employee ownership of the customer experience and operational results. Insurers are inherently process oriented. We can’t understand why shops have no problem seeing our dirty laundry but can’t see the clothes on the floor of their house that they just tripped over. Please train your people and audit your staff like we do. If you do, all three of us win. Got a comment or question you’d like to see the Insider address in a future column? Email him at Auto.Insurance.Insider@gmail.com.

@autobodynews Accept no Substitutes!

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 51

How to be a ‘Courageous Leader’ Presented at NACE by Melanie Anderson

Two strong women presented “Courageous Leadership” at NACE in New Orleans on Oct. 12. Sponsored by WIN, Women’s Industry Network, Denise Caspersen, ASA Collision Division Manager, and Melissa Miller, CARSTAR Sr. Operational Manager, talked with a group of women about what it takes to be brave in the workplace and in their lives. Having courage is not the same as being fearless. Courage is the ability to do the right thing, despite feelings of fear or discomfort when facing situations of pain, risk, opportunity, uncertainty, hardship or intimidation. Caspersen and Miller described three different types of courage and discussed the impact fear has on personal and organizational performance, and how by tapping into your own ‘courage history’ you can use your past to strengthen your future. “We’re not all born with courage, but we’re born with the capacity to be courageous,” Caspersen said. However, acting with courage is often avoided because of fear, because

it’s easier, people are afraid of embarrassing themselves or they don’t want a confrontation. But the benefits could result in growth, better communication, advancement, innovation and happier employees. The cost of fear is high. According to Human Resource Executive Magazine (2008), a third of U.S. employees waste at least 20 hours of work time each month complaining about their bosses. Stress-related illnesses account for 1/3 of worker absenteeism, and 37% of American workers report being bullied on the job. Fearful workers are twice as likely to be depressed and 33% are more likely to report exhaustion and sleep disorders. Ways that employees display fear in the workplace could include hostility, hiding mistakes, being distracted, and playing it safe versus taking a creative approach. Ways to combat fear include looking for ways to build your confidence, not obsessing about things that frighten you, gathering facts, seeking mentoring and developing new skills. “If we can address fear, little by

BASF Showcases Newest Additions to VisionPlus Online Tools at NACE During the 2012 International Autobody Congress and Exposition at the Morial Convention Center in New Orleans, LA, Oct. 10-13, BASF Automotive Refinish Solutions showcased their latest software tools to improve collision center productivity. The Business Analyzer Tool, part of the VisionPLUS online suite of electronic tools and systems, gives

body shops the ability to measure themselves against industry standards by tracking their costs, sales, and performance. Used as a sales marketing tool, the Business Analyzer Tool breaks down the numbers of a shop’s costs, sales and profit based on several key indicators, such as paint and material costs, said Vitor Margaro-

nis, Marketing Director of BASF Coatings Solutions. “We use the tool to help customers grow their businesses in the areas of improvement they want to focus on,” said Margaronis. “From a business standpoint, we go above and beyond a paint company. It’s not just about paint. It's about profits, growth, cost control, and overall better management of their business.” The Business Analyzer Tool is available as a mobile app. According to BASF, VisionPLUS Online allows collision repair centers to track, analyze and improve their business in real time so repair facilities can discover and act on improvement immediately, without having to wait for the usual end-of-month reports. BASF produces coatings for the automotive, commercial fleet and collision repair markets. Some of the refinish solutions from BASF are Limco, R-M and Glasurit paint products. The offering is supported by advanced color information systems, technical training programs and business management seminars.

52 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

little, every day, it becomes a habit,” said Caspersen. Caspersen and Miller asked the group of women what they thought courage was and the answers were varied: willing to take a risk, standing up for yourself, standing up for your beliefs, finishing what you started, not giving up, speaking your truth, and being true to yourself. Caspersen pointed out that we often make mistakes to learn by. Something her parents told her still rings loud today: “You always have a choice, but you have to live with the outcome.” When considering taking a risk, consider these factors: passion, purpose, principle, prerogative, and profit. These are the right reasons to take a risk. Can you suffer through the anguishing moments that accompany ‘right risks’ while caring intensely? Can you harness that passion and stay focused and headed in the right direction? Do you have the right set of values? Do you have the power to choose? And, profit, is only to be considered lastly. Three different types of courage

were described as: ‘try,’ ‘trust’ and ‘tell.’ Those who ‘try’ step up and make the first attempts to take action. Those who ‘trust’ follow the lead of others and let go of control. Those who ‘tell’ are those who speak out, assert one’s voice, and tell the truth. And there are always risks. Your actions may harm others. Other people’s actions may harm you. Or, you could be cast out of the group for truth telling. “The ‘tell’ type of courage can be the most difficult as you may say things the other person doesn’t want to hear,” said Miller. “There is always a difference between being respectful and being offensive. Always make it about the process, not the person.” Caspersen and Miller also described two leadership styles. The first is called ‘spillers’ — those who rely on fear as a motivator, are negative during times of challenge, or who discourage others who try to grow. The other leadership style is ‘fillers’ — those who build other people’s confidence, provide support during challenges, and encourage others to grow. Which kind of leader are you?

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Copart Says It is Posting Balanced Volume Gains Copart says that not only is it posting salvage volume gains— thanks in part to an exclusive contract with a major car insurance carrier—but the company is also maintaining a targeted ratio in relation to its non-salvage business, too. When discussing its 2012 fiscal year, CFO Will Franklin confirmed Copart began to see the incremental volume associated with its exclusive contract with Nationwide Insurance, which the auction company entered into in its previous fiscal quarter. “We expect incremental volume for this contract to reach full run-rate by the end of the first quarter of fiscal 2013 and to be fully reflected in our second-quarter results,” Franklin said. Meanwhile, Copart noted that volume from non-insurance units grew by almost 5% and represented 21% of all units the company moved in the quarter that closed on July 31. “We go after all facets of the non-insurance market, whether it’s charity or dealer business,” Copart chief executive officer Jay Adair told investment analysts during a conference call. “We’re going to continue to go after that. We’ve been successful, and I really think the limit is quite high. It’s an enormous market com-

pared to the size of total-loss vehicles in the U.S., the U.K. or any other market. “What excites me about it is it’s one of those books of business where we’ve some really great growth in the last year on the insurance side and yet we’re maintaining a 79-21 split. They’ve been able to keep the growth going on even though the insurance side has been growing rapidly. That’s good stuff,” Adair went on to say. An analyst wondered if more volume could be coming from another major insurance provider since Copart has landed contract work from Nationwide and Allstate during the past two years. “Buddy, if I had a crystal ball I’d share it with you,” Adair quipped. “Those are things you just don’t know. We’re working really hard on this end. We fully believe in our team and our technology and our people’s ability. We’re passionate about what we do. I think when people meet us, they figure that out pretty quickly. We’re a company that is going to be around for a long time. We’re not interested in doing something differently. This is what we do and what we love. Hopefully, over time that will generate additional business.”

ALLDATA Shows Off New Compliance Tool at NACE

At NACE on Oct. 10, ALLDATA LLC introduced a product that automatically verifies estimates against regulations applicable to repairs, direct repair provider (DRP) guidelines and shop business rules. “The number of complex rules an estimate must comply with keeps growing,” said ALLDATA president, Jeff Lagges in a company release. “That complexity requires skilled, experienced estimators who must still spend time looking up specifics for various DRPs, new regulations and so on. ALLDATA Compliance operates behind the scenes to verify each line item, helping to eliminate guesswork, reduce lookup times, and lessen the need to hire and retain only the most experienced estimators. The combination means ALLDATA Compliance can help save shop owners a great deal of time and money.” Equally important is the accuracy ALLDATA Compliance adds to each estimate that, over time, the increased accuracy can help strengthen insurer relationships and potentially raise DRP scores, which may result in increased referrals and revenue. For more information go to alldata.com/estimate-compliance.

WMABA Sees Good Turnout at PartsTrader Meetings

The Washington Metropolitan Auto Body Association (WMABA) held meetings in Springfield, VA, and Baltimore, MD, on September 19 to discuss issues related to parts procurement and the PartsTrader pilot. The WMABA said that both meetings were well attended by regional repairers and parts vendors. Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg gave an indepth presentation about the pilot, historical data relating to PartsTrader in other markets, and the potential ramifications for the U.S. collision repair industry. He also informed the group about the upcoming Repairer Driven Education (RDE) sessions being held at SEMA Oct. 30–Nov. 2 in Las Vegas. “The potential problems it could create in the market for both repairers and parts vendors could change the landscape of our industry drastically. I think it was heard loud and clear,” said WMABA Executive Director Jordan Hendler. “The association will use information from this presentation and other sources to create a fact-based informative piece that can be shared in the industry,” she said.

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NABC Gifts 6 Vehicles to Needy New Orleans Families at NACE by Melanie Anderson

The National Auto Body Council gifted six vehicles to needy families through its Recycled Rides program at NACE on Oct. 11. Four local shops in the New Orleans area donated their time to refurbish the vehicles: • Car Craft Collision Centers (2 cars) • Champ’s Collision Centers (2 cars) • Collision Xperts • Fradella’s Collision Center Seven years ago, in the wake of Hurricane Katrina, these shops received assistance from NABC with basic necessities, such as household goods, clothing and technician tools. Now, these shops paid it forward to others in need. Recycled Rides is a national initiative through which National Auto Body Council members refurbish donated vehicles and gift them to families in need. In addition to body shops donating their labor, insurers, paint suppliers, parts vendors and rental car companies contribute as well. At the NACE event, five insurance companies donated vehicles for refurbishing: Allstate, Esurance, GEICO, Progressive and State Farm. Enterprise Rent-A-Car donated a vehicle as well. The Maltese family received a Ford Escape refurbished by Car Craft Collision Center and donated by Enterprise. The Jiles family lost their vehicles in Hurricane Isaac and received a Honda CRV, refurbished by Champ’s Collision Center and donated by GEICO. The Easley family received a Dodge pickup truck, refurbished by Collision Xperts and donated by Progressive. Brenda Kenna was overjoyed to receive a Toyota Camry that was refurbished by Car Craft Collision Center and donated by Esurance. Carolyn Gagliano, a retired teacher, is thankful for her new Chevrolet Impala refurbished by Fradella’s Collision Center and donated by State Farm. David Marlowe is retired and has major health issues. He will benefit from the Ford Explorer that was refurbished by Champ’s Collision Center and donated by Allstate. “This car is giving me my life back,” said Marlowe. “You lose your

last vestige of independence when you lose your transportation.” For Calvin Schenck, owner of Car Craft Collision Centers, participating in the Recycled Rides Program means paying it forward.

tires on this vehicle and an alignment, as well as completing an oil change and a complete analysis of the proper function of the vehicle and servicing the A/C system,” said Schenck.

Brenda Kenna received a 2007 Camry at NACE, thanks to the NABC Recycled Rides program and the collision centers, insurers and other businesses that donated their time, labor, services and products

“This journey started seven years ago as a result of the largest national disaster that the United States had ever experienced. That disaster was named Hurricane Katrina,” Schenck said. “No one could have expected the amount of physical, financial and emotional damage that one event could cause. Thousands of people were left jobless, homeless and directionless. We were part of that group. “As we struggled to get our lives and businesses back together, we were contacted by people in our industry, who told us that they were ready to roll up their sleeves and help, and that they did. We were given hope that there were people out there who cared. Help arrived in the form of tool replacements and emotional support,” Schenck said. “Before we knew it, we were beginning to heal. Had it not been for the help of these people, we don’t know if we could have made it. Because of this, we have decided to pay it forward. The cars given away are part of a project that has required us to complete all necessary repairs to these vehicles, some of which we have equipped with new tires and paint jobs. We would also like to thank Mike n’ Jerry’s Paint and Supply, Lamarque Ford and Gulf States Glass for the supplies they donated.” Car Craft Collision Centers donated body and paint work to a 2007 Toyota Camry. “We put four new

54 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Champ’s Collision Centers, owned by Tim and Danny Kingston, worked on two cars, a 2002 Ford Explorer and a 2004 Honda CRV. The cars were donated by Allstate and GEICO.

“Both cars have under 100,000 miles and should provide safe and reliable transportation for years,” said Tim Kingston. “Champ’s is proud to have had the opportunity to contribute to such a great cause benefitting our community.” Fradella’s Collision Centers refurbished a 2007 Impala donated by State Farm. According to Fradella’s Vice President Al Waller, the shop repaired small dents and scratches, replaced the front bearing, brought its maintenance up to date and detailed the vehicle inside and out. “The goal is to help people help themselves,” said Chuck Sulkala, the executive director of the NABC. “And all of the industry segments commit to playing a part in seeing that happens. Most that participate find it a lifechanging experience.” The Recycled Rides program was born in 2007. Since then, 150 cars are given away every year throughout the country, said Liz Stein, VP of Industry Relations, Assured Performance Network and VP of NABC. “Imagine the impact this would be in your community if more people did this.”

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DEG & the Keys to Successful Estimating Presented in New Orleans Collision damage experts Larry Montanez and Arthur Harris presented “The Keys to Successful Estimating!” during NACE in New Orleans, LA, on Oct. 12. The focus of their presentation centered on DEG, Database Enhancement Gateway, a free service funded by the Society of Collision Repair Specialists, the Automotive Service Association and the Alliance of Automotive Service Providers. The DEG is an advocate for accurate collision data and acts as a gobetween for shops and information providers—CCC, Mitchell and Audatex. The DEG was developed to improve the quality and accuracy of collision repair estimates by those who use collision repair estimating databases to provide feedback to information providers. “The DEG was created because there was a disconnect with information providers and DEG was created to bridge that gap,” said Harris,

DEG Administrator. The DEG public database has been around for five years, said Harris, who has been with the company for

Larry Montanez (l) and Arthur Harris (r) talked about the DEG at NACE on Oct. 12

two years. He describes his job as “facilitating the gap between information providers and the estimate user.” Collision repairers and insurers may submit questions and inquiries or

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an inquiry and the response from the information provider in question. Users can also read all other inquiries made by other repairers and see how the issue was resolved. Through feedback by repairers, the DEG can help fix footnotes, inaccurate labor times, missing parts, incorrect part numbers, and substrate identification. In addition, Harris advised those in attendance at the NACE presentation not to print out the P-Pages, or estimating guides as he called them, because they could be outdated. Montanez says he downloads the P-Pages once a month to replace the older version from the previous month. “The P-Pages aren’t guides. The estimates aren’t suggested. It is the manual,” said Montanez. “The P-Pages are not open to interpretation.” For more information on the DEG, go to www.degweb.org.

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ask for assistance with a particular problem and DEG will work with the information provider to reach a resolution. Often, this can result in changes to the database or P-Pages. Shops are also encouraged to submit pictures or short videos with technicians performing a task in regards to a question or problem that arises, said Montanez, a collision damage analyst with P&L Consultants. To submit an inquiry, log on to www.degweb.org and fill out an online worksheet. “The DEG is free and people should send in their inquiries. It helps everyone get questions answered,” said Montanez. The DEG database is a valuable tool for the collision repair industry as it provides valuable feedback on missing, unclear or potentially inaccurate data within the estimate systems, Harris said. He adds that the DEG provides timely responses on both the status on

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Esurance recognizes Three CARSTAR shops with awards

Esurance recently honored three CARSTAR facilities with Auto Body Repair Expert of the Year awards during CARSTAR’s annual conference in San Antonio. CARSTAR said Esurance presents the CARSTAR Auto Body Repair Expert of the Year award to the top performing stores in three U.S. regions. The award is based on several key performance indicators, such as estimate cycle time, compliance with Esurance’s direct repair program, re-inspection variance, I-CAR Gold status and customer service. The award was created to recognize the top shops and technicians in the industry for customer service excellence and continuation of technological education, CARSTAR said. The award-winning facilities include the following: ● Ace Sullins CARSTAR in Miramar, FL, owned by Kyle Wharff. ● Hunter’s CARSTAR in Norwood, PA, owned by Gary Hunter. ● Jungerman CARSTAR in St. Peters, MO, owned by Kerry and Bobbie Woodson. “I congratulate them for earning the titles, and I thank Esurance for its continued campaign to educate technicians in this industry,” said David Byers, CEO of CARSTAR.

Martin Senour Kicks Off 4Q Training Program

The Martin Senour Company kicked off its fourth quarter training session in October, offering courses to collision center professionals on technical skills, estimating solutions, new technologies, and updated application techniques required for collision center profitability. The Fall 2012 course lineup, which is held at various Martin Senour training locations nationwide, includes an emphasis on sustainable operations from both a business and technical standpoint. “We seek to help collision repair owners, managers and technicians better practice profitable and more productive thinking and hands-on doing,” says Jeff Green, Martin Senour Director of Sales. “We also have seen significant interest for classes regarding waterborne technologies, application certification, and lean practices, so we’ve provided additional courses specific to those practices.” Martin Senour professionals will be providing instruction on a number of class topics including its VORTEX® waterborne, Tec/Base® and Pro//Base™ refinish systems, painter certification, and color adjustment and blending. Visit martinsenour-autopaint.com or call 1800-526-6704 for schedule.