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Attorney John Arthur Eaves and Shop Owner Bill Fowler Appear on Memphis Radio to Discuss MDL Suit

by Chasidy Rae Sisk

On Tuesday, August 26, attorney John Arthur Eaves and shop owner Bill Fowler, of Bill Fowler’s Bodyworks in Southaven MS, appeared on the Drake and Zeke Show, a popular early morning radio talk show in the Memphis, TN area. The reason for their guest appearance was to explain the MDL lawsuit to consumers and educate them on their rights during the collision repair process in hopes of raising awareness about this important issue impacting collision repair facilities across the country.

To begin, the radio hosts summarized the lawsuit they planned to discuss. In January 2014, Eaves filed a complaint against insurers on behalf of 21 collision repair shops. Though the lawsuit began in MS, it has spread and continues to gain traction so that it is now a national lawsuit, involving six states, which will be tried by a single judge in FL. Multiple insurers have been implicated in the complaint as the habit of insurer steering is an industry-wide problem.

Fowler pointed out that steering has become so pervasive in the indusSee Memphis Radio, Page 26

Congress Expresses Support of Repair Industry in Response to Owners’ Trip to Washington D.C.

by Stacey Phillips, Assistant Editor

Matt Parker with House Speaker John Boehner

faced with the challenge of insurance companies dictating how they run See Congress Support, Page 38

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Sixty-five collision repair shop owners recently traveled to Washington D.C. to educate Congress about the struggle body shops face to protect consumers when providing a complete and safe repair. The majority of them were part of a Nationwide Anti-Trust Multi-District Litigation filed earlier this year against multiple insurance companies in several states. (See other cover story this page.)

After more than 150 meetings with representatives and senators over a three-day period, the result was an outpouring of support for an industry

VOL. 4 ISSUE 8 NOVEMBER 2014

Recent MSO Consolidations in CA Heat Up Industry

by Stacey Phillips, Assistant Editor

Last month we reported on the final closing of the purchase of Holmes Body Shop’s seven locations by Cooks Collision Centers. The Holmes acquisition was initiated in May 2012 and concluded with the seventh Holmes location closing in September of this year, after our last issue went to press.

With 35 locations in CA, Cooks is the largest independently owned and operated collision repair organization in the state.

But Holmes is not even the latest medium-sized MSO to be acquired by larger consolidators in California. In September, Service King Collision Repair Centers acquired Marco’s Collision Centers, also a medium-sized MSO having seven locations in

Southern California. Shortly thereafter Service King reached an agreement to acquire Car West Auto Body, an MSO with seven shops in Northern California.

Is there some kind of ‘rule of sevens’ at play here? More seriously, we wanted to know what forces were driving the acquisition of small to mid-size MSOs and why they seem more attractive than individual shops for acquisition.

Nearly 20 years ago David Roberts, the co-founder and former Chairman of the Board for Caliber Collision Centers, wrote an article predicting the future of consolidations in the collision repair industry. It was entitled Shop Consolidation: Is it Inevitable? Undoubtedly, Roberts anSee MSO Consolidations, Page 6

Pro Spot is Ford’s Rotunda Supplier of the Year California-based Pro Spot is very proud to be awarded the supplier of the year award by the Ford Motor Company Rotunda Program. Pro Spot was approved

by Ford to supply aluminum repair equipment to the Collision Repair Program for repairs on the new 2015 Ford F-150 all-aluminum body truck. The Ford Rotunda Dealer Equipment Program is a national program endorsed by Ford Motor Co. to their dealer base, selling service and body shop repair equipment. The approved equipment included: the SP Pulse MIG welders— the most sold Ford-required MIG welders in North America, the Aluminum Dent Repair Stations, Fume Extractors, and the SPR Riveter; all of which contributed to the winning of the Supplier of the Year award. “We would like to thank Team Pro Spot for all of their hard work and all of our customers that have supported us in purchasing our aluminum repair products. This means a lot to our team at Pro Spot,” said Ron Olsson, Pro Spot President.

“I’m overwhelmed and very honored to win this award from Ford. We have been working very hard and appreciate the trust in our equipment and of course, the overwhelming amount of orders we have received for the aluminum program.”

(l to r) Mike Berardi (Ford Director of Service Engineering Operations), Ashley Olsson (Pro Spot Director of Communications), Ron Olsson (Pro Spot Founder & President) and Steve DeAngelis (Ford Manager of Technical Support Operations). Photo Credit: Ashley Olsson

The 2015 F-150 is revolutionizing the repair industry by mainstreaming aluminum repair. With the hard work by Ford Motor Company in designing a repairability-focused, all-aluminum body F-150, shops across the country are getting prepared to repair the top selling vehicle. Pro Spot is proud to be recognized as a supplier of quality aluminum repair equipment to the Collision Repair Program and the 2015 Ford F-150 truck. Pro Spot looks forward to continuing to design innovative equipment for shops and technicians to repair vehicles back to OE standards.

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

2 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio - Body Shops are Tapping into the Persuasive Power of Video. . . . . . . . . . . 30 Attanasio - Chicago Body Shop’s Anti-Texting Campaign Catches Fire . . . . . . . . . . . . . . . . 39 Attanasio - Gas Monkey Garage and Dodge Recruit Mötley Crüe to Rock Dallas . . . . . . . 22 Franklin - Are You Marketing to Merely Survive or Are You Trying to Grow? . . . . . . . . . . . . . 40 Luehr - Lean Implementation Strategies . . . . . . 20 Sisk - LaCIA Holds September Member Meeting, Hosts AG Caldwell. . . . . . . . . . . . . 60 Sisk - SafeCars Hosts Meetings Around the Country to Discuss Insurer Interference and National Lawsuits . . . . . . . . . . . . . . . . . 42 Yoswick - DRPs 20 years ago, Early CCRE, ADP Revises Labor Times . . . . . . . . . . . . . . 28 Yoswick - Energy Transfer in Today’s Vehicles Makes Measuring, Multi-Point Pulling More Important . . . . . . . . . . . . . . . . . . . . . . 34

NATIONAL ‘iEstimator’ and ‘iTechnican’ Apps Now Available . 36 2015 Hyundai Genesis Preview Before SEMA Debut . . . . . . . . . . . . . . . . . . . . . . . . 52 Aftermarket Auto Parts Alliance Joins CC TRU Parts Network . . . . . . . . . . . . . . . . 61 AkzoNobel Hosts Sustainability Media Briefing in Washington D.C. . . . . . . . . . . . . . 50 Alcoa Forecasts Record Auto Sheet Shipments Q4 . . . . . . . . . . . . . . . . . . . . . . . 58 Aleris to Add Aluminum Automotive Body Sheet Capabilities in North America . . . . . . . 48 AMI Accepting Applications for Cosette/Westerlund Award. . . . . . . . . . . . . . 14 Atty. John Eaves and Shop Owner Bill Fowler Appear on Memphis Radio to Discuss MDL Suit . 1

Auto Care Association Releases 2014 Digital Collision Repair Trends Report . . . . . . . . . . . 8 Auto Glass Safety Council Updating Cert. Exam . 56 Axalta Program Provides Shop Owners With More Data . . . . . . . . . . . . . . . . . . . . . . 61 Bar’s Leaks Debuts All-in-One Stop Leak at AAPEX. . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Berkshire Hathaway to Acquire Van Tuyl Group, Largest Privately-Owned Dealership Group. . 61 Cadillac to Introduce New Tech. on ‘17 Models . 57 Car Donation Helps Army Veteran Get Back on the Road. . . . . . . . . . . . . . . . . . . . . . . . . 59 Car-O-Liner Participation Enhanced by Social Media . . . . . . . . . . . . . . . . . . . . . . . . 58 Car-O-Liner Receives Award for New Software, Vision 2 . . . . . . . . . . . . . . . . . . . . 40 Chevrolet Brings Back the Corvette Stingray in Time for SEMA . . . . . . . . . . . . . . . . . . . . 58 Chevrolet Debuts Pickup Concept Trucks for SEMA . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Chrysler Recall of SUVs. . . . . . . . . . . . . . . . . . 50 Collision Repair Instructor Inspires Students, Paves Way for SEMA. . . . . . . . . . . . . . . . . . 51 Congress Support of Repair Industry in Response to Owners’ Trip to Washington D.C. . . . . . . . . 1 Daimler Chairman Dr. Dieter Zetsche to Deliver Keynote Address at 2015 Consumer Electronics Show . . . . . . . . . . . . . . . . . . . . 54 Feds Announce 7.8M Vehicles Recalled Due to Airbag Defects . . . . . . . . . . . . . . . . . 14 Ferrari Recall of 458 Italia and Spider Models. . 50 Ford Recalls 850,000 Cars for Airbag & Seat Belt Glitch . . . . . . . . . . . . . . . . . . . . 56 Honda and SolarCity Partnership Will Create $50 Million Fund for Solar Projects . . . . . . . 48 I-CAR Launches Two New Refinish Courses . . 58 Initiative to Prevent Exposure to Hazardous Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Iowa Pulls Plug on Tesla Test Drives . . . . . . . . 56 Lamborghini and IMSA Extend Partnership. . . . 50 Mercedes Will Train 26,000 in the Brand’s New Culture . . . . . . . . . . . . . . . . . . . . . . . . 54 Mike Miller Appointed National Dir. of Certified Network Development for Assured Performance . . . . . . . . . . . . . . . . . 55 Nationwide Ray Gunder Labor Rate Surveys Announced . . . . . . . . . . . . . . . . . . 43 New Legislation Introduced to Simplify SBA Loan Applications . . . . . . . . . . . . . . . . 56 Nitroheat Launches New Product at SEMA . . . . 61 Omix-ADA to Give Away 2014 Jeep Wrangler at SEMA . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 PPG Waterborne Shop Conversions Exceed 10,000 . . . . . . . . . . . . . . . . . . . . . . 52 Pro Spot is Ford’s Rotunda Supplier of the Year . 1 Proposed Legislation Benefiting Businesses Vetoed by Syracuse, NY, Mayor . . . . . . . . . . . 9 Quest Donates $280,000 in Paint & Abrasives to CREF. . . . . . . . . . . . . . . . . . . . 46 Quotes Pros Website Offers Insurance Rates Information . . . . . . . . . . . . . . . . . . . . 58 Recent MSO Consolidations in CA Heat Up Industry . . . . . . . . . . . . . . . . . . . . . . 1 Roush-Modified 2015 Ford Mustang To Be Revealed at SEMA . . . . . . . . . . . . . . . 57 SEMA Line-up for Valspar Automotive & House of Kolor. . . . . . . . . . . . . . . . . . . . . 43 SEMA: Sales of Auto Parts & Accessories Reach $33B . . . . . . . . . . . . . . . . . . . . . . . . 52 Senate Subcommittee Looks Into Effectiveness of the National Hwy. Traffic Safety Admin. . . 59 Students Gain Practical Experience at NC Body Shop. . . . . . . . . . . . . . . . . . . . . . . 60 Takata Airbag Recall May Include GM Vehicles . 54 Three Types of Parts Account for 50% of Sales Online . . . . . . . . . . . . . . . . . . . . . . . 3 Toyota Moves to Aluminum Hood for Camry in 2018 . . . . . . . . . . . . . . . . . . . . . . 56 Toyota Produces Urban Utility Concept Vehicle . 55 WIN 2015 Membership Drive. . . . . . . . . . . . . . 59 Women’s Industry Network 2015 Educational Conference Announced . . . . . . . . . . . . . . . . . 8 World Steel Dynamics Predicts Short Gains for Aluminum Before High-Strength Steels Take Over . . . . . . . . . . . . . . . . . . . . . 54

Norman Morano is Our Newest Regional Sales Manager

Autobody News is pleased to introduce Norman Morano who joined our team in October as an Advertising Sales Manager. Norm has been a Sales Director for 13 years handling Hammer & Dolly, New Jersey Automotive, New England Automotive, AASP-News/MN and Wisconsin Automotive News. He has also sold exhibitor space for the past four years at the Northeast Automotive Trade Show.

Norm graduated from the University of California at Berkeley in 1982 with a BS degree in Environmental Studies. After college he travelled extensively before attending Law School at Rutgers University School of Law. He was admitted to the bar in New Jersey and Pennsylvania and has kept his NJ bar license active. Born and raised in Nutley, NJ, Norm has also lived in Orono, ME, Berkeley, CA, and Sydney, Australia. Before concentrating on automotive advertising he had his own sign company building his sales contacts throughout NY, NJ, PA, CT and DE. When he isn't working, Norm enjoys biking, yoga, surfing, motorcycling, movies, pizza and the New York Times. He has been a resident of the Jersey Shore for the past 26 years. Contact Norm to discuss your advertising needs at nmorano@autobodynews.com.

Contact Norm at: nmorano@autobodynews.com to discuss your advertising needs.

Three Types of Parts Account for 50% of Sales Online

In terms of dollars spent on automotive replacement parts through online purchasing, or e-tailing, three categories represent half of the dollar volume in 2013, according to E-Tailing in the Automotive Aftermarket from the Auto Care Association.

The top three product categories are braking systems (primarily pads and shoes); ignition and engine (fuel pumps, alternators, ignition coils, etc.);

and glass, mirrors and lamps.

The E-Tailing in the Automotive Aftermarket digital study analyzes the online retail market for sales of aftermarket parts, and serves as the foundation for the Auto Care Association to provide a unified estimate of online sales within the aftermarket.

For pricing and more information, visit www.autocare.org/etailing.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Acura of Westchester . . . . . . . . . . 40 Advantage Hyundai. . . . . . . . . . . . 13 Amato Agency. . . . . . . . . . . . . . . . 38 Audi Wholesale Parts Dealers. . . . 55 Axalta Coating Systems . . . . . . . . . 5 B & R Associates. . . . . . . . . . . . . . 29 BMW Wholesale Parts Dealers . . . 51 Car-Part.com . . . . . . . . . . . . . . . . . 14 CarcoonAmerica Airflow Systems . 24 Central Avenue Chrysler-JeepDodge-Ram . . . . . . . . . . . . . . . . 12 Certified Automotive Parts Association (CAPA) . . . . . . . . . . 31 Classifieds . . . . . . . . . . . . . . . . . . . 62 Clay Auto Group . . . . . . . . . . . . . . 41 Colours, Inc . . . . . . . . . . . . . . . . . . 16 Crashmax Equipment . . . . . . . . . . 21 Dent Tools Direct USA. . . . . . . . . . 18 Ditschman/Flemington Auto Group. 45 Empire Auto Parts . . . . . . . . . . . . . 30 Equalizer Industries, Inc.. . . . . . . . 36 Fairfield Chrysler-Jeep-Dodge-Ram . 20 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . 43 Ford Wholesale Parts Dealers. . . . 54 Fred Beans Parts. . . . . . . . . . . . . . 64 Future Cure . . . . . . . . . . . . . . . . . . 35 Gary Rome Hyundai-Kia . . . . . . . . 17 Glanzmann Subaru . . . . . . . . . . . . 39 GlasWeld Systems, Inc . . . . . . . . . 22 GM Wholesale Parts Dealers . . . . 57 Greg Chandler Frame & Body . . . . 4 Hackettstown Honda. . . . . . . . . . . 42 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers . 47

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts and adjacent metro areas. Autobody News is a monthly publication for the autobody industry.

Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.

Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL AASP-MA Midstate Chapter BBQ 2014 . . . . . . 16 Assault on Seekonk, MA Tow Yard Operator . . . 18 AudaExplore’s Annual Total Loss Summit Held in Boston, MA . . . . . . . . . . . . . . . . . . . 46 Auto Body Association of Connecticut Regroups for Fall 2014 . . . . . . . . . . . . . . . . 25 Brevard, FL Dealerships Renovate and Expand. . 44 Caliber Acquires AutoPride . . . . . . . . . . . . . . . 44 CollisionMax Supports PA Veterans in Job Search . . . . . . . . . . . . . . . . . . . . . . . 18 Cruising Through Attleboro, MA in Restored Police Car for 100th Anniversary . . . . . . . . . 17 Father and Son Indicted in Counterfeit Scheme Out of Their MA Body Shop . . . . . . . . . . . . . 62 Four-Alarm Fire in NJ Threatens Auto Body Shop . . . . . . . . . . . . . . . . . . . . . 24 General Motors Will Move Cadillac Headquarters to NY . . . . . . . . . . . . . . . . . . . 14 Long Island, NY, Veterans Gifted with 10 Vehicles . . . . . . . . . . . . . . . . . . . . . 12 MA Automotive Group Listed as Top Charitable Contributor . . . . . . . . . . . . . . . . . . 4 Massive NH Fire Destroys Shop. . . . . . . . . . . . 16 Metropolitan Car-O-Liner Relocates to NJ and Expands. . . . . . . . . . . . . . . . . . . . 14 Millsboro Automart Hosts Grand Opening in DE . 62 Minivan Destroys NJ Body Shop’s Sign and Antique Car. . . . . . . . . . . . . . . . . . . . . . . 4 NJ Active Vet Given CollisionMax Award . . . . . . 4 NJ Army Veteran Won CollisionMax’s Metal of Honor Award . . . . . . . . . . . . . . . . . 12 NJ Auto Inspection Shop Indicted for Falsifying Emission Test Results . . . . . . . . . . . . . . . . . 24 NJ Body Shop Damaged by Three-Alarm Fire . . 18 NY Shop Proposes Addition. . . . . . . . . . . . . . . . 4 Preston Automotive Joins Fight Against Breast Cancer . . . . . . . . . . . . . . . . . . . . . . . 18 Pull-A-Part Recognized for Multiple Environmental Achievements in TN . . . . . . . 44 Queens, NY Auto Body Shop Owner Charged With Tax Fraud . . . . . . . . . . . . . . . . 16 SE Tops List of States With Most Energy Efficient Cars . . . . . . . . . . . . . . . . . . 44 Sisk - AASP-MA Holds Annual Clambake . . . . . 10 Update: Fire Destroyed Established PA Auto Body Shop . . . . . . . . . . . . . . . . . . . . . 35

Indexof Advertisers

Contents

New Talent Joins the Autobody News Sales Staff

Infiniti of Norwood . . . . . . . . . . . . . . 9 Jaguar Wholesale Parts Dealers. . 58 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 49 Koeppel VW-Mazda. . . . . . . . . . . . 25 Lexus Wholesale Parts Dealers. . . 61 Malco. . . . . . . . . . . . . . . . . . . . . . . 17 Maxon Hyundai . . . . . . . . . . . . . . . 34 Maxon Mazda . . . . . . . . . . . . . . . . . 8 Mazda Wholesale Parts Dealers . . 56 Mercedes-Benz . . . . . . . . . . . . . . . 11 MINI Wholesale Parts Dealers. . . . 50 MOPAR Wholesale Parts Dealers . 37 Motor Guard Corp. . . . . . . . . . . . . . 6 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 59 Porsche Wholesale Parts Dealers . 59 PPG . . . . . . . . . . . . . . . . . . . . . . . . . 2 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . 10 Safety Regulation Strategies. . . . . 46 SATA Spray Equipment . . . . . . . . 19 Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 7 Subaru Wholesale Parts Dealers . 53 Sussman Auto Group . . . . . . . . . . 28 Tasca Automotive Group. . . . . . . . 27 TG Products, Inc. - The Rail Saver. 26 Thompson Organization . . . . . . . . 23 Toyota Wholesale Parts Dealers . . 60 Valspar Automotive . . . . . . . . . . . . 15 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 55 Volvo Wholesale Parts Dealers . . . 57 Wagner Auto Group . . . . . . . . . . . 63 Yonkers Kia . . . . . . . . . . . . . . . . . . 44

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 3

NJ Active Vet Given CollisionMax Award William Willingham, a U.S. Air Force non-commissioned officer still on active duty after 18 years, recently received CollisionMax’s Metal of Honor Award. As a result, CollisionMax of Sicklerville, NJ will repair his black 2006 Ford F-150 pickup truck free of charge.

A resident of Lindenwold, NJ, Willingham, 37, was born and raised in Kenton County, Kentucky, and enlisted in 1996, a year after he graduated from high school.

“I was wondering what to do with my life, and I talked it over with my father, who was in the Army for 20 years and served in the Desert Storm campaign” in Kuwait and Iraq in 1991. “I was thinking about a military career, and he said he thought the Air Force would be the way to go.”

Willingham served both overseas and in the United States, but can’t talk about his service because it involves classified operations. He serves at a base in NJ and uses his truck to make a daily 80-mile commute to work.

“The military has been great to me,” he said. “It has given me skills that I can use in a lot of different ways when I retire” in two more years.

Married and the father of six children, Willingham said the right front

and side of his truck were badly damaged early last year when he accidentally sideswiped a telephone pole after a very long day of work.

“Since it was my fault, I was going to have to pay the deductible, and my insurance premium would probably go up, neither of which I could afford.” He didn’t make a claim and waited to put enough money together to get the truck repaired.

“With a family my size, a military salary doesn’t go very far, so this Metal of Honor Award is going to come in very handy.” He nominated himself after learning about the award on Facebook. “I’d completely forgotten about that, so it came as a real surprise when I found out I’d won.”

Willingham owns two show cars, a 1926 Model T Ford hot rod and a sporty 2005 Dodge Ram SRT 10 pickup truck. He is a member of a car club, Endless Pleazures, which conducts charity drives for breast cancer and autism research, and collects toys and books for children.

Ironically, the day after his Ford went in for repairs he was rear-ended driving the Dodge to work. “It was the other driver’s fault, so I’m filing a claim and am going to have the truck fixed at the same CollisionMax shop.”

MA Automotive Group Listed as Top Charitable Contributor

Boston Business Journal Corporate Citizenship Summit awarded Ray Ciccolo’s Village Automotive Group as one of Massachusetts’ Top Charitable Contributors of 2014.

In order to be eligible for the annual nomination, Greater Boston companies must donate a minimum of $100,000 to local non-profits throughout the year.

Village Automotive Group, comprised of nine dealerships including Hyundai Village of Danvers and Volvo Village of Danvers, exceeded that number, donating $375,000 to Massachusetts-based charitable organizations, according to danvers.wickedlocal.com.

President and CEO Ray Ciccolo donated $50,000 to several charities, in honor of his 50th anniversary of business.

Village Automotive Group, owned by Ciccolo, is comprised of nine dealerships throughout metropolitan Boston. The flagship store, Boston Volvo Village, is one of the nation’s preeminent Volvo dealers, with the largest sales volume in New England, as well as the largest Volvo Service & Parts Departments in America.

NY Shop Proposes Addition

Approval was given by The Cattaraugus County Industrial Development Agency (IDA) Board of Directors on Sept. 16 to a $600,000 expansion of Mallery’s Auto Body in Olean, NY. Owner John Mallery is planning a 25-foot by 100-foot addition to his shop. He also plans to renovate the exterior of the building, purchase new equipment and add five full-time employees. The application to the IDA seeks a $100,000 sales tax exemption, a mortgage recording tax exemption and a commercial/new construction payment in lieu of taxes (P.I.L.O.T.) agreement worth about $50,000 over 10 years, according to reports

by Rick Miller of Olean Times Herald.

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Minivan Destroys NJ Body Shop’s Sign and Antique Car

A minivan crashed into CARS Auto Body in Bloomsbury, NJ, on October 11, totaling a 1950 DeSoto for sale and the company sign. Video surveillance showed the minivan airborne before making impact.

The 1950 DeSoto and the body shop sign after being impacted by the flying minivan.

Photo Credit: Rick Epstein

“Dan Wyant Jr., whose taxidermy shop is nearby, said the car had been his father’s ‘pride and joy,’ but Dan Wyant Sr. died last year and no one in the family shared Dad’s passion for the car, which had been his retirement project. So in August it was parked in front of CARS Auto Body and offered for sale,” according to reports by Rick Epstein, nj.com.

Despite the asking price of $13,500, Doug North of CARS Auto Body had trouble selling the DeSoto because Wyant insisted that it go to a “good home,” according to Epstein.

The now destroyed vehicle was well-

SHOP MANAGER known in the community—the grand marshal drove it in the centennial parade in 2005 and its likeness was etched on Wyant’s gravestone.

Wyant stated that he had been planning to garage the vehicle at the end of the month, according to Epstein.

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4 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Greg Chandler Frame and Body Full responsibilities in all aspects of shop operations Experienced in CCC, ADP and completing estimates Experienced in managing DRP relationships Take charge and control of the shop Ability to manage 35+ employees efficiently Long-term opportunity with potential to grow Full insurance benefits and paid vacations Salary commensurate with experience

304-741-0353 Send resume to: gecmay22@aol.com 620 5th Ave // St. Albans, WV, 25177

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 5

Continued from Cover

MSO Consolidations

swered, “the answer is ‘yes.’ “ Fast forward to the present time Roberts told Autobody News, “In the last 24 months nearly $3 billion of sales volume in the collision repair industry has changed ownership, which is 10 percent of the entire industry.”

Roberts is currently the Managing Director and Automotive Services Group team leader for FOCUS Investment Banking. He said there are several reasons for this sudden acceleration, including the availability of acquisition capital and the number of MSOs looking to sell. “There are more than 44 MSOs with $20 million or more in revenues with another 110 between $10 and $20 million.”

“Consolidators are looking to get bigger and achieve more scale, which has rewards for the acquirers as well as for insurers and consumers,” said Roberts, whose company has offices in Atlanta, Los Angeles, and Washington D.C. “Large insurers have increasingly rewarded the best performing consolidators and large MSOs with more volume. Cars are repaired faster, with less hassle, and more predictable costs and quality.”

We asked Lillian Maimone, former CEO and co-founder of Marco’s Collision Centers, for her perspective on the industry. She was excited about her upcoming retirement, saying, “Marco and I have nothing to do and all day to do it, and we like it that way. It’s a wonderful sense of freedom and peace of mind.”

“Seeing the trends in the new cars and the new equipment that was Lillian Maimone necessary to repair these cars, I saw ourselves having a very difficult time competing against the consolidators. We knew it would cost my company hundreds of thousands of dollars in new equipment and training,” While running Marco’s, which was established in 1972, Maimone said her primary function was ensuring the company was ready and geared for the future. “My focus was on dealing with possible threats and opportunities,” she said.

In order to stay informed about

Vincent Romans of MSO Specialists The Romans Group on Consolidation Autobody News asked Vincent Romans, the founding partner of The Romans Group, to comment on the recent MSO consolidations. Romans has over 30 years of consulting and operating experience with domestic and global enterprises. The Romans Group LLC, established in 1996, provides business, market, financial, and strategic development advisory services to the property and casualty auto physical damage insurance, automotive services, property restoration, and related supply chain segments.

Why are we seeing an increase in the number of consolidators acquiring MSOs and do you think this trend will continue? We are at the early stage of consolidation, contraction, convergence and constructive transformation in the collision repair industry. Within this industry construct, private equity has stepped up its interest in acquiring MSO consolidators.

This interest is backed by unprecedented private equity and strategic buyer cash seeking investment opportunities in the MSO model which today provides strong cash flow, growth through both organic and acquisition growth and shorter term investment cycles that ultimately drive higher valuations.

How will it affect the collision repair industry? We will continue to see

trends in the industry, Maimone regularly attended conferences, talked to industry leaders and listened closely to what others were saying in forums such as the Mitchell webinars, for example.

“I went to Pepperdine’s business school [and used those skills in analyzing the industry.] I spent a lot of my time looking at what is happening in the industry and how it was affecting my company,” she said. Eventually she and husband Marco decided they “didn’t want to be in the game anymore.”

When employees asked why they sold, she explained, “We were the powerhouse in our area. We were the big fish in the little pond.” With the changes in the industry and larger MSOs coming in, she said they realized how increasingly difficult it would be to compete.

For example, the benefits they gained as a midsize DRP over the years were no comparison to the gains made by the national DRP programs.

She invited her employees to consider the buying opportunities with the national DRP accounts, rather than local ones. “I figured whatever percentage See MSO Consolidations, Page 13

6 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

large multiple location operators (MLOs) be acquired by the four MSO consolidators. The still fragmented industry will continue to contract to a more normalized number of required collision repairers throughout the United States over the next decade. Today, three collision repair segments, ?$20M, ?$10-20M and the franchise multiple location, MLO, operators represent 24% of the US collision repair market. I expect this market share for these three segments to grow over the next three years. Additionally, we should shortly see the first MSO with annual revenue of $1.0B. Through September YTD 2014 we have seen $650.0M in annual revenue transferred through multiple location transaction acquisitions among the four MSO consolidators.

What are the relevissues facing the collision industry today? There are numerous trends and prevailing conditions that offer both risk and opportunity for repairers today. No one trend or prevailing condition has the impact that the confluence of these prevailing trends and conditions have. It is when one understands that these individual prevailing conditions are part of a confluence of many individual dynamic prevailing trends and conditions, that you start to realize the order of magnitude and the exponential impact they have and will con-

tinue to have on the new world order of collision repair within the broader auto physical damage ecosystem. We will continue to see how one company's transformation is another's disruption, while one company's innovation is another's disintermediation. Some of the short and long term conditions include, but are not limited to changing macroeconomic influences, globalization, consolidation causing industry structural changes, telematics and the movement to an integrated electronic claims process model, accident avoidance technology associated with semi-autonomous and eventually autonomous vehicles (VEHBOTS), private equity and strategic buyers, predictive analytics, down turn in accident frequency, MSO performance contracts, hybrid claims management models, insurers embracing the MSO model, trained technician shortage, parts procurement, repair segmentation, urbanization and others too numerous to mention here.

How does an independent shop fit in the picture? Independent high performance, brand recognized shops will continue to provide solid alternatives to the large MSO model especially with insurance companies that embrace their own customized repair models and prefer See MSO Consolidations, Page 13

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 7

Women’s Industry Network 2015 Educational Conference Announced

Women’s Industry Network (WIN) has announced that the 2015 Educational Conference is scheduled to take place in Baltimore, MD from Monday, May 4th through Wednesday, May 6, 2015.

“After heading West for the 2013 and 2014 Conferences, our members had expressed the desire to visit the Eastern US for 2015,” explained Jessica Rob of AkzoNobel and Co-Chair of the Conference Planning Committee. “Baltimore is the perfect answer to that request, combining accessibility with commerce, culture and historical charm.”

Overlooking Baltimore’s Inner Harbor, the Baltimore Waterfront Marriott has been selected as the location of this year’s event. “The hotel’s state of the art conference facilities will provide the perfect home for WIN,” declared Yolanda Sandor of BASF and Co-Chair with Rob. In addition to the professional development programming, the Educational Conference will once again feature the Most Influential Women awards as part of the celebratory gala dinner as well as the Annual Schol-

arship Walk fundraiser. Program specifics will be published as they become available.

“The 2015 WIN Educational Conference marks the 10th year of successful collaborations among WIN volunteers, members and sponsors. Our goal is always to provide the WIN membership and the collision industry a highly professional educational experience centered on professional networking, advancing business acumen and growing collision connections,” stated Denise Caspersen of National Autobody Parts Warehouse, Inc., who also serves as WIN’s Chair. “It’s exciting to see the plans underway by WIN member volunteers to deliver quality conference content, honor the Most Influential Women in the industry, and connect WIN members.”

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Auto Care Association Releases 2014 Digital Collision Repair Trends Report

The Auto Care Association has released the 2014 Digital Collision Repair Trends report, an online 70page analysis of data compiled from primary Auto Care Association research, federal government and independent research data sources.

The report highlights the size and scope of the U.S. collision industry, including the paint, body and equipment (PBE) segment, with a brief analysis of the Canadian collision industry. It also includes analyses of factors influencing the collision industry, automotive collision insurance coverage and the Direct Repair Program (DRP).

According to this year’s report, collision repair-related sales by industry repair shops dropped slightly (0.2 percent) in 2013 to $40.1 billion from $40.2 billion in 2012. Despite the drop in sales, the industry, since 2009, has managed a sustained growth at an annual rate of 2.2 percent, with most of the growth coming from the high-priced postcollision repair parts.

Powered by Nxtbook Media LLC™, this digital publication retains both the traditional design and

high quality content of Auto Care Association reports. This online production provides added value with many new functional enhancements. Users can: • Download Excel-based files, charts, tables and graphs that can be copied and pasted for presentations.

• Turn pages with the click of a mouse.

• View pages in a variety of sizes and formats.

• Quickly locate what you are looking for through a “word search” feature.

• Save material for future reference through the “bookmarks” feature.

• Print the entire publication.

Copies of the new 2014 Digital Collision Repair Trends report are now available at $125 for Auto Care Association members and $250 for non-members. The report can be ordered by calling member services at 301-654-6664 or email info@autocare.org

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Proposed Legislation Benefiting Businesses Vetoed by Syracuse, NY, Mayor

by Stacey Phillips, Assistant Editor

A recent decision by the Syracuse, NY mayor regarding proposed legislation for the payment of delinquent city taxes will affect local body shops and other businesses in the area.

The legislation, sponsored by Syracuse Common Councilor Kathleen Joy, would have allowed any property owner who is facing foreclosure due to back taxes, a long-term repayment plan called a tax trust. In April, Syracuse Mayor Stephanie Miner changed city policy to allow tax trusts for only owner-occupied residential properties.

Two days after a public hearing on the subject, the mayor vetoed Joy’s proposed legislation on September 25. “The administration’s policy to limit tax trusts is already working, and changing it is a mistake,” Miner said in a news release.

According to the release, earlier this year the Miner administration discovered landlords were asking Councilors to hold votes foreclosing on their tax delinquent properties to give them time to flip the properties to obtain more favorable repayment terms. This is the reason Miner said the tax trusts were limited exclusively to homeowners.

Joy said the mayor’s policy is “discriminatory” and if any person or

business meets the criteria they should be entitled to a tax trust. “It will be a dramatic decision against small businesses,” she said.

“Businesses like auto repair and auto body shops, they’re probably somewhat vulnerable to market demand, weather conditions, and if they get behind in their taxes through no fault of their own, they should have the ability to pay back their taxes,” said Joy. “We should have the ability to work with them to keep them open.”

By participating in a tax trust, property owners have to come up with the current year’s tax, a 10 percent down payment and then are charged 12 percent interest over the time they are delinquent up to five years. “It’s not a gift by any means,” said Joy. “It’s a last resort for property owners who want to keep their property.”

One of these is Sam Vigliotti, the owner of Sam’s Auto Body & Service Center. Vigliotti, who owns four shops in the Syracuse area, has operated his business for nearly 50 years. According to a recent article written by Tim Knauss, a reporter for The Post-Standard and syracuse.com, Vigliotti tried to resolve a $40,000 delinquent tax bill by entering into a tax trust for one of his shops.

In his article, Knauss wrote that

city officials will not grant Vigliotti a tax trust due to the mayor’s new policy.

“We were greatly affected by the economy, and I had a partnership break up.

There are a lot of different circumstances for different people,” Vigliotti was quoted as saying in the article, adding that sometimes business owners need tax trusts to overcome setbacks.

Joy needs six out of nine votes on the common council, which is the legislative branch of city government, to override the mayor’s veto. She already has five. As the chairperson of finance, taxation & assessment, part of her job is to get tax revenues into city coffers to make infrastructure improvements. “Of course we want as many tax dollars as possible,” said Joy, who estimated that the City of Syracuse is $12 million in debt. “I calculate that this maneuver on the mayor’s part will short the city by $400,000.”

Knauss wrote in his article that approximately 75 percent of tax trusts go into default, according to city officials.

In response, Joy said that even if this number is accurate, the business owners have already paid the current year’s taxes, 10 percent down and 12 percent on a monthly basis until they became delinquent. “I’d rather take that money and give them a chance, then writing them off from the outset,” she said.

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Also, she said there’s quite an incentive for business owners to pay those taxes on time, to keep the tax trust current and not be in default.

“Sometimes people get into financial circumstances that are beyond their control,” said Joy. “Rather than wrestle away a commercial property from someone let’s work with them and get the money in. It’s a win-win situation from my perspective.”

Mayor Miner’s office declined to comment when asked by Autobody News how the recent veto will affect local businesses.

When Autobody News went to print, Joy did not have enough votes to override the mayor’s veto. She said that she hopes to revisit the idea of tax trusts with an alternative that both addresses the mayor’s concerns about absentee landlords flipping their properties while allowing businesses and other owners to pay their back taxes.

Common Councilor Kathleen Joy can be reached by phone (315) 448-8466 or Email: kjoy@syrgov.net More information about Tim Knauss’s articles on this subject can be found on: http://www.syracuse.com/ news/index.ssf/2014/09/miner_vetoes _syracuse_councils_effort_to_allow_ tax_trusts_for_landlords.html

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Northeast Associations with Chasidy Rae Sisk

AASP-MA Holds Annual Clambake

Ford Lincoln, Sherwin-Williams Automotive, Transtar Autobody Technologies, and West Springfield Auto Parts.

Each gold sponsor presented checks to the event planning committee.

The silver sponsors for the Clambake were Artioli Chrysler Dodge, Auto Craft Sales, a Division of BAPS Auto Paints & Supply, Jim Busiere of CCCIS, Empire Auto Parts and Marcotte Ford, while Central Chevrolet, Lia Honda of Enfield, Mirka Abrasives and Tasca Automotive all support AASP-MA’s Western Chapter as bronze sponsors. AASP-MA receives a lot of support from their local vendors and encourages their members to patronize these companies whenever Back row (l to r): Jack Perna (PPG), Don Cushing (Bald Hill Dodge/Chrysler/Jeep/Kia), Eddie Ravetto (Hoffman Auto possible.

Group), Scott MacDonald (West Springfield Auto Parts), A highlight of the evening Jack Tyner (Balise), Gordy Palley (Amherst Oakham), Kat for the shop owners in attenDemers (Enterprise Rent-A-Car), Tom Harkins (Enterprise dance was a drawing for some Rent-A-Car), Rick Casey (LKQ/Keystone), Al Montalbano prizes ranging from live I(Long Automotive). Front row (left to right): Hank Odierna (ABSAP), Mark Edmonds (Transtar Autobody TechnoloCAR classes to a Dell Tablet, gies), Jeremy Ostrout (AkzoNobel), Rob Lagasse (Sherwindonated by Busiere of CCCWilliams Automotive), Mike Campbell (Axalta), Jim IS, to Celtics tickets, donated Loomis (Sarat Ford.) Photo by Joel Gausten, courtesy of

by Autopart International.

New England Automotive Report Statewide Director Don Cushing of Bald Hill Dodge Chrysler Attendees began their evening by Jeep & KIA was quite popular all enjoying a dinner of clam chowder, evening as he drew names to announce steamed clams and a complete barthe winners of each prize. beque chicken dinner. A raffle was held During the 2014 Clambake, with the chance to win one of over 100 AASP-MA’s Western Chapter also prizes, donated by the many companies raised funds by selling beer tickets that sponsored the event. Prizes inand through their 50/25/25 cash raffle cluded various gift cards, tools, clothes, sporting goods and more. The Grand with 50% of the proceeds going to the Prize, once again donated by Chris Di- association and the remainder being Marzio of Linder’s, Inc., was an iPad divided between two winners. with a Bluetooth Keyboard. The first Of course, any association event prizes offered were an iPad, donated by is about more than good food and LKQ, and a 40” RCA LED television, prizes; the real draw is the opportunity donated by Auto Craft Sales, a Division it provides for an evening of networking with industry peers. of BAPS Auto Paints & Supply.

The Western Chapter of AASPJoann Nalewanski, a member of MA is grateful to all of their sponsors the association’s Western Chapter, for their support, calling them “the best notes, “since MA has the lowest labor vendors in the country.” There were 16 rate in the country, it’s tough out there; gold sponsors for the event, including it’s nice to get together and share a sense of camaraderie. There’s really a Amherst Oakham Auto Recycling, sense of family in our Western ChapAstro Automotive, Auto Body Supplies ter; it’s just a great group of people! and Paint, AkzoNobel, Axalta, Bald Hill Dodge Chrysler Jeep & Kia, For example, Mike Beal was the presBalise Wholesale Parts Express, En- ident of our chapter for 20 years, and terprise Rent-A-Car, Hoffman, LKQ, though he retired in 2013, he joined Long Automotive Group, PPG, SARAT the planning committee again this

On Friday, September 26, the Western Chapter of AASP-MA held their Annual Clambake at the Polish-American Club in Feeding Hills. Featuring great food, raffle prizes and a fun evening of networking, it’s no surprise that the clambake was a sold-out event with over 240 attendees in the 250person capacity hall!

10 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

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.

year. On Friday morning he was in the hospital, was discharged at noon and at the clambake by 5pm. Everyone is truly committed to the association and its goals.”

current Secretary state-wide; State Directors Peter Langone and Ed Nalewanski; the chapter’s past vice president, Andre Marcoux; Don Vermette, past president of the Western Chapter; and Paul Zollner of West Springfield Auto Parts.

Though nine people is a lot for an event planning committee, the Western Chapter would love to see different members getting involved with event planning.

On Saturday, November 15, AASP-MA will hold their 7th Annual Private Casino Night at Gillette Stadium in Foxboro, Grand Prize winner Tony Bordoni (BodyWorks Unlimited), who won an Apple iPad and Bluetooth keyboard courtesy MA. The event, sponsored by of Linder’s, Inc. Photo by Joel Gausten, courtesy of New Enterprise Rent-A-Car, will England Automotive Report feature gaming and prizes as This year’s committee consisted of well as a stadium tour. The cost for members is $100 without the tour while Dan Lamontagne, acting chapter presnon-members pay $225; the tour is an ident; Mike Beal, past president of the additional $25. More information is Western Chapter; the chapter’s treasurer, Mike Boucher; Gary Cloutier, available on www.aaspma.org.

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NJ Army Veteran Won CollisionMax’s Metal of Honor Award

Erik Hohenberger, a 44-year-old U.S. Army veteran, is the latest winner of CollisionMax’s Metal of Honor Award, the company announced on September 19. As a result, CollisionMax of Blackwood, NJ will repair his silver 2006 BMW 325i sedan free of charge.

A resident of Blackwood, Hohenberger enlisted a year after he graduated from Sterling High School in Stratford, NJ in 1989, during the lead up to the first Gulf War. “I had just received my certification as a heating and air conditioning technician, but Army service was a kind of tradition in my family, and I wanted to do something to help my country defend itself,” he said.

Iraqi forces invaded Kuwait in August 1990, and Hohenberg had orders to ship out for combat duty there.

“But just before we were going to leave, my orders were changed. Instead, I was sent to South Korea, where the Army had a supply base shipping equipment to the Gulf. I was a little disappointed, but in the Army you follow orders.”

In South Korea, Hohenberger was a mechanic assigned to repairing Army vehicles, from HUMVs and trucks to tanks. He also participated

in training exercises along the North Korean border. After a year there, he was transferred to an army logistics base in Kansas, and was discharged from active duty in 1992 as a corporal. He continued to serve in the Army reserves until 1998. “I loved the Army,” he said. “It taught me leadership and responsibility, and it was like one big family.”

When he enlisted, Hohenberger was following in his father’s footsteps. “My father was born and raised in Munich, Germany, and lived through World War II there,” he recounted. “He was a chef, and in the late 1940s he came to America. In the 1950s, he enlisted in the U.S. Army, because it was a way for him to become a U.S. citizen.” Ironically, his father was assigned to the same base in Germany where Elvis Presley was serving his military duty. “He tells me stories about Elvis, but I don’t really know if they’re true,” he said.

Now a mechanic with an equipment rental company in Runnemede, NJ, Hohenberger said he misses the Army. “I’m trying to get a civilian job at Fort Dix or McGuire Air Force base, just so I can be part of the military again.” Meanwhile, he said his 17-year-old daughter, now a high

12 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

school senior, has entered the Army Reserve’s early enlistment program.

“She wants a career in healthcare, and believes she’ll get the training and support for education with the Army’s help,” he explained.

When Hohenberger bought his BMW – “my dream car” – three years ago, it had 78,000 miles and was in bad shape, both mechanically and cosmetically. He said he has spent all of his spare cash fixing the engine, and making the power windows and sun roof work, “but the body is still in bad shape” with a dented hood, scrapes and dings, and bad paint all over.

“I was ecstatic when I heard I won the award,” he said. “I drive past CollisionMax every day, back and forth to work. I want to keep this car for many years, and it’s great to know that it’s going to look as good as it drives.”

Through the project, now in its second year, CollisionMax gives away auto body repairs to US military veterans, one per month for each location in the Delaware Valley. The company selects the winners from nominations it received from the public on the project’s web site, http://www.metalof honorproject.com.

Long Island, NY, Veterans Gifted with 10 Vehicles

The Long Island Auto Body Repairmen's Association presented the 6th Annual Recycled Rides Give-A-Way at the Veterans of Foreign Wars (VFW) Hall, in Centereach, N.Y. on Sept. 20. The VFW Suffolk County N.Y. Council located veterans who need reliable transportation. The cars were donated by a variety of insurance companies and individuals, including GEICO, State Farm, Gary Sirico, BiCounty Auto Body and Allstate.

The following Long Island body shops helped repair and refurbish the veteran's future vehicles: The Collision Centers of Patchogue, The Collision Centers of Riverhead, The Collision Centers of Babylon, Bi-County Auto Body in Smithtown, Master Collision in Rockville Center, Burnside Auto Body in Inwood, Matt’s One Stop Auto Body in Sound Beach, and the BOCES of Nassau School.

The following vendors donated parts and supplies: Mid Island Hyundai, Apple Discount Center, Peconic Auto Wreckers, Smithtown Nissan, Keystone of Syosset, Apple Honda, Middle Country Auto Wreckers, Dickson Brothers Glass, Elite Towing, Albert Kemperle Auto Body Paint, King of Dings, Phoenix Auto Wreckers and Auto Extras.

Continued from Page 6

MSO Consolidations

of claims would drop as a result of that is enough to make me know that we will be in trouble,” she said.

“My employees are better off this way,” said Maimone. “Several have been given a promotion and better opportunities. I couldn’t give them that.”

Shortly after acquiring Marco’s, Service King reached an agreement to acquire Car West Auto Body, an MSO with seven shops in Northern California. With these additions as well as the 62 Sterling Collision Centers the company acquired earlier this year in April, Service King now has 191 shops in 20 states, including 18 in CA. Service King, based in Dallas and founded nearly 40 years ago, told Autobody News that, due to company policy, they weren’t able to comment further until their acquisition of Carwest was finalized.

However, Service King released the following statement: “Our recent Sterling Autobody acquisition and Marco’s Collision Centers acquisition serve as a platform for our growth in

the California market,” Chris Abraham, the CEO of Service King, said in the press release. “The addition of Car West and their 360 teammates will give us an even greater footprint in the heart of Silicon Valley. We are excited to have the team on board and look forward to delivering the ServFarzam Afshar ice King standard file photo of exceptional customer service and high quality repairs in these communities.”

“People are selling because of many different reasons,” said Farzam Afshar, CEO of VeriFacts Automotive, a well-respected training company that describes itself as the industry’s only “independent onsite quality verification service and in-shop technician assessment provider.”

One reason, Afshar said, “is that they able to get a very high rate of return on their investment. In addition, business owners increasingly need to compete with consolidators in their backyard while vehicles are becoming more complex.

See MSO Consolidations, Page 35

Continued from Page 6

MSO Consolidations

to have non-MSO providers in the market or a mix of MSO consolidators and local market independents. Additionally, specialty repairers who perform any number of niche market or high value repair alternatives will have a place in the future collision repair industry. Some of these models might include various types of repair segmentation; e.g. aluminum or other new material/technology, fleet, small hit expedited repair, paintless dent repair, cosmollision, ethnic market, and car auction repair. As MSO consolidators gain in the breadth and depth of their reach and coverage is markets around the country, insurers will look to balance their local market networks with strong performing and recognized branded independent operators.

The balance of power will be normalized as long as the independent’s metrics and service offering are comparable to the MSO consolidator.

What is the benefit/challenge of being an MSO vs. a single-location shop when forming a relationship with insurance companies? MSO consolidators and many non-consolidator MSOs have the personnel, sales and marketing structure and budget to frequently call

on insurance company corporate decision makers as well as multi-level contacts regionally and nationally. They participate on insurance company advisory or review boards which brings them to the table for input, old business and new concept discussions, and collaboration on current and future business process and performance models.

They develop multi-level personal relationships that help when issues need to be resolved quickly. However, if service deteriorates somewhere in the country for a larger MSO it could have ramifications across their national for muti-regional network. The MSOs offer insurers broader multiple market coverage than smaller MSOs and independents. However, local market MSOs and independents can and do market and that they provide that laser focus local market performance. Many independents and local market MSOs market and then perform in their niche as your local market repairer with local market reputation.

MSO consolidators are also offering self-manager and co-managed capabilities for customized and new DRP models, quality assurance and self- audit process and procedures, call centers, single point of contact, all of which helps reduce costs for the insurer while positioning the MSO consolidator for business that the independent operator may find more difficult to secure.

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AMI Accepting Applications for Cosette/Westerlund Award

During the recent Automechanika 2014 show in Germany, Car-O-Liner received the Automechanika Innovation Award for their new measuring software, Vision2. During the five-day show new, innovative products that will speed up the collision repair process and increase workshop profits were presented.

“We are very proud to receive this prestigious award honoring our leadership in state-of-the-art measuring software for the vehicle collision repair market,” says Jonas Gunnarsson, VP and Business Unit Manager.

“I would like to thank our employees for their dedication to the pursuit of quality and excellence at Car-OLiner.”

New products demonstrated were their PointX Diagnostic Measuring Tool, CTR7, the new semi-automatic mid-range spot welder and improvements and accessories for their Speed alignment system.

Other products shown were the CarO-Tronic measuring system driven

by Vision2 software, Car-O-Liner SMART Repair, Aluminum Repair Solutions, EcDesign Workshop Planning, Workshop Solutions and Training.

Metropolitan Car-O-Liner Relocates to NJ & Expands

Car-O-Liner® announced that Metropolitan Car-O-Liner has relocated and expanded its facility in New Jersey.

The new location includes office and warehouse space, as well as an expanded training center in Mahwah, located 30 miles north of New York City.

“The new Class A location allows us to nearly double our space to 9,200 square feet, including an updated classroom and hands-on training lab for our popular collision repair classes,” said Dave Demarest, Jr., Vice-President of Metropolitan CarO-Liner.

“Metropolitan Car-O-Liner is one of the highest volume distributors in North America and this expansion to a new facility proves the commitment to world-class service and training Dave and his team offer to our industry,” said Doug Bortz, National Sales Manager of Car-O-Liner. “We are proud of their accomplishments and dedication as we look forward to our continued partnership.”

This year, Metropolitan Car-OLiner celebrated its 35th year selling Car-O-Liner products to shops throughout New Jersey, Connecticut, eastern Pennsylvania, and eastern New York.

General Motors Will Move Cadillac Headquarters to NY On September 23, General Motors announced that the flagship brand will be a separate business unit. In addition, the new Cadillac organization will expand to New York in 2015.

GM believes that creating a new Cadillac business unit enables it to pursue growing opportunities in the luxury automotive market with more focus and clarity.

“With the relentless upward repositioning of successive new-generation Cadillac products, the next logical step is to provide Cadillac more freedom to cultivate the brand in pursuit of further global growth,” said GM President Dan Ammann.

“Cadillac’s mission is to reinstate the brand to a pre-eminent position among global luxury brands, a bold challenge requiring a distinct and focused new organization,” Ammann said. “More than a division or brand, Cadillac is becoming a center of excellence for our company.”

Johan de Nysschen, who joined Cadillac as its new president in August, will be responsible for the brand’s overall operational performance.

The expansion plan into New York City includes a multipurpose brand and event space in conjunction

with modern loft offices located in the heart of the city.

While the majority of functions with oversight and responsibility for both global and U.S. operations will be located at the new global headquarters, there will be no change to technical product development teams located in Michigan, nor does the plan impact manufacturing or assembly operations.

Cadillac management is reviewing options for which specific staff will be based in New York and which will remain in current locations in the Detroit-area or elsewhere.

Cadillac has operations in more than 40 countries. The brand’s ongoing growth has been driven by an expanded product portfolio, leading to 28 percent global growth in 2013 and an increase of about 10 percent in 2014.

Cadillac sales in China have grown 64 percent year to date.

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Feds Announce 7.8M Vehicles Recalled Due to Airbags The U.S. National Highway Traffic Safety Administration (NHTSA) said in a statement reported by Reuters on Oct. 22 that the number of vehicles from 10 automakers covered by recalls this year and in 2013 is now 7.8 million, up 28 percent from the 6.1 million announced on Tuesday. The NHTSA said the new number corrected the vehicle list provided in prior safety bulletins this week, adding some vehicles and excluding others from previous bulletins. The NHTSA has urged owners of certain Toyota, Honda , Mazda, BMW, Nissan, Mitsubishi, Subaru, Chrysler, Ford and General Motors vehicles to replace installed airbags as soon as possible.

In the expanded bulletin, Honda accounts for almost 5.1 million of the vehicles, Toyota 877,000 vehicles, Nissan almost 695,000 vehicles, BMW nearly 628,000 vehicles and Chrysler more than 371,000 vehicles.

A top Toyota Motor Corp executive said in Tokyo that the Japanese automaker had no plans to abandon Takata despite the supplier’s struggles.

“Toyota’s not one to just dump a supplier,” Steve St. Angelo, Toyota’s head of Latin American operations and the former chief quality officer in North America, told reporters. “Have

we ever eliminated a supplier? Yes. But it’s really, really tough. We will exhaust every opportunity to help that supplier first.”

NHTSA is investigating whether Takata air bag inflators made between 2000 and 2007 were improperly sealed. Bags inflating with too much force could potentially spray metal shrapnel at occupants. They have been linked to four deaths and resulted in several lawsuits.

The probe has focused on inflators recovered from cars being recalled for repairs in hot, humid places like Florida.

Takata is cooperating with that investigation along with 10 automakers. More than 16 million vehicles globally have been recalled because of defective Takata air bags since 2008.

Meanwhile, anyone visiting NHTSA’s website at www.safercar. gov on Wednesday to determine whether their vehicle was part of the Takata-related recalls instead received a network error message.

NHTSA officials they were trying to determine the issue and consumers can also contact dealers or go online with automakers and use their vehicle identification number to determine recall status.

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 15

AASP-MA Midstate Chapter BBQ 2014

by Chasidy Rae Sisk

The Midstate Chapter of the AASPMA (Alliance Of Automotive Service Providers) held their annual BBQ on Friday, September 5 at the Hudson Elks in Hudson, MA. The event featured food from Firefly’s BBQ as well as entertainment, games and raffle prizes for both adults and children.

“The BBQ went really well,” according to Molly Brodeur, President of the Midstate Chapter and Vice President of AASP-MA Statewide. “The event has evolved a bit over the past few years as we’ve made it less of a party event and more family-friendly so that it’s a fun evening for everyone.”

More than160 individuals attended the BBQ for an evening of networking and the chance at a wide variety of raffle prizes ranging from shop-related gifts to spa days and weekend getaways.

All children in attendance received free raffle tickets for chances at the children’s prizes, and they were also able to learn about rescue animals during a presentation by Animal Adventures.

The Midstate Chapter of AASPMA raised $5,000 which will fund

their Tool Grant for local vo-tech students pursuing a career in the collision repair industry.

Beginning mid-winter, local schools will be able to apply for the grant, and the association will award the funds to a local school whose teachers will decide the best ways to use the funds for their collision repair program.

Brodeur believes the association’s efforts are important because of their “focus on training the youth that will hopefully matriculate into our industry. The increasing age of technicians makes it important to develop a connection with these students so they feel connected to the industry and see there’s an opportunity for a viable career because we are in desperate need of young technicians.

Another benefit of the BBQ and similar social events is that it provides a forum for collision repair industry professionals to enjoy a fun night out, away from the shop, to network and socialize with their peers.

This sort of collaboration is also an imperative component of the benefits that industry associations offer their members.”

Brodeur was very pleased with the amount of participation the event

generated and with how the BBQ has changed over the past several years.

She is also grateful to the many sponsors who contributed to making the event so successful. “We enjoy a tremendous amount of vendor support; the event wouldn’t work without our wonderful sponsors.”

Raffle donors included Imperial Cars, Bernardi, J & R Auto Body Supply, Wellesley Volkswagen, Linders Auto Parts, Boston Bumper, Sherwin Williams, Hertz, NAPA Hudson, NAPA Marlborough, BASF, Don Kennett Paint Supply, and the Worcester Sharks, while CPRAX Marketing and Relco Products contributed as Direct Grant Donors.

The venue was sponsored by Long Automotive, with dinner and dessert being sponsored by Bald Hill, Long Automotive and Balise. Imperial Cars sponsored the children’s meal, Marlborough Nissan sponsored children’s entertainment, and the children’s raffle was sponsored

by FinishMaster.

Wagner Motors donated to the live auction, and AASP-MA’s Western Chapter was the general raffle sponsor. For more information, contact AASP-MA 617-574-0741 or visit their website: www.aaspma.org

Massive NH Fire Destroys Shop

A Derry, NH, body shop is a total loss after a massive fire broke out on September 15. The Union Leader reported that the blaze started around 8 p.m. at Sportwagen Body Shop, located at 35 Maple Street, and flames could be seen shooting from the building. It is believed that no one was inside; however, local firefighters were unable to get in upon arrival. One residence across the street was evacuated, but they were able to return to their home when the fire was under control, according to reports

by Marc Fortier, necn.com. The cause of the fire is not yet known.

Queens, NY Auto Body Shop Owner Charged With Tax Fraud

A body shop owner in Queens, NY, has been charged with tax fraud after allegedly under-reporting $2 million in repair work, according to newyork.cbslocal.com. Fifty-one year old Victor Izquierdo faces up to 15 years in prison if convicted.

Izquierdo only reported 1.2 million of the alleged 3.2 million he collected from insurance companies like Progressive and Geico, according to the criminal report. His next court date is November 14, said the story in newyork.cbslocal.com.

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Cruising Through Attleboro, MA in Restored Police Car for 100th Anniversary

vehicle but said it was challenging to find just the right one. “We ended up When the City of Attleboro recently cel- running into all kinds of obstacles,” ebrated their 100th anniversary with a he said.

Finally, as luck would have it, in parade, one of the highlights of the day was the 1975 police cruiser restored this 2013 his mother-in-law mentioned that past summer by two local auto body she found an interesting old car he businesses in MA. might want to take a look at. She had no The Attleboro Police Depart- idea her son-in-law had been searching ment initiated the restoration project for a car and when he went to see it, he in 2011, shortly after Sgt. Ronald found it was exactly what he had been Goyette joined the force. Attleboro’s looking for all along, a 1975 Dodge Police Chief Kyle Heagney asked if Coronet.

Goyette said it was in immaculate shape for its age.

“Unlike most Chryslers of that era, it didn’t have any underbody rot.” Using funds from forfeited drug seizures, the police department purchased the car during the first part of 2014. The police chief asked Goyette if it could be ready by September 6. “Time became our biggest obstacle because once we loThe 1975 Dodge Coronet before restoration. Photo courtesy cated it the chief wanted it Sgt. Goyette. done in time for the 100th he could help restore a police cruiser anniversary parade celebration.”

The first step was to strip it to be used for city parades and community events. Goyette, the former down. In addition to having chrome automotive shop teacher at Attleboro accessories not used on police cars in High School, began to search for a 1975, the prior owner had additional

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add-ons such as fender skirts. Greg McGovern of Better Automotive, a friend of Goyette’s who was experienced in Chrysler restoration, located parts for the vehicle and worked on it for a couple of weeks. Then the car was taken to Charlie Soufy at Chaz’s Autobody, who is contracted by the Attleboro Police to work on their ve-

wouldn’t have a job.”

Soufy said their biggest challenge was the time frame. “When we started to take some of the paint off there was a little more work than we anticipated so my guys kicked into high gear,” he said. “Andy Higginbotham ‘Panda’ and Ken Langill ‘Dust Monkey’ stayed late to get the job done.”

Goyette said Soufy spent a lot of time getting the paint color just right. “Since DuPont didn’t list an exact number for the paint the city used on their cruisers, Charlie mixed it by eye,” he said.

“He kept adding until he got it exactly the way it should be.”

David Viera, the police department’s in-house meThe police cruiser will be used during parades and chanic, also helped out with celebrations in Attleboro. Photo courtesy of Officer Hale. the car. It is currently being hicles. stored at the police department during The owner of the small shop in the winter so they can do some addiAttleboro said he has a good relation- tional touch ups and interior work. ship with the police department and he “I think it’s unbelievable in this wanted to show his support for the day and age you would find people community where he grew up. Soufy who are ready, willing and able to dohas gained some new customers after nate their time, services and skill for helping out with this project and said the police department, for the commuhis motto is, “Without my customers, I nity,” said Goyette.

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809 Enfield St. / Enfield, CT 06082 www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 17

Assault on Seekonk, MA Tow Yard Operator

by David Linton, The Sun Chronicle

The suspect in a vicious beating of a tow yard owner in Sept. is a former Army Ranger who blamed his post-traumatic stress for the incident, according to court testimony.

Douglas Allen, 58, suffered some kind of mental distress when he repeatedly punched the owner of Seekonk Auto Body on Tuesday in a dispute over a bill for his car, his lawyer, Colleen Tynan said.

The incident, which sent owner Thomas Clark and a responding police officer to a hospital was not premeditated, Tynan said in a plea against holding Allen without bail following a dangerousness hearing in Taunton District Court.

“There’s obviously something going on,” Tynan said. The New Bedford defense lawyer said her client was an Army veteran and union laborer who had no prior criminal record. She said he was remorseful about the attack on Clark, but maintains he did not assault the police officers. Clark was called into court for the hearing so the judge could see the marks still visible on his face from the attack, but he did not testify.

Allen, of East Providence, attacked Clark after he went to get his car, which was impounded at the tow yard.

The car was towed last month after Allen was stopped, allegedly for driving without a license, police said.

The bill was initially $1,300, but

NJ Body Shop Damaged by Three-Alarm Fire

Several departments battled a fire on September 15 at a body shop in Ramsey, NJ, just off Route 17 north.

Traffic was backed up for more than a mile in the northbound lane, according to reports by Abbott Koloff, northjersey.com.

The blaze began at Meinke Car Care Center around 7 pm and was under control in about an hour.

A portion of a connected onestory garage and the exterior of the two floor repair shop were damaged.

The interior was not reached, according to Ramsey Deputy Fire Chief Louis Warnet.

One firefighter injured his shoulder, and was transported to the hospital.

A Meineke employee was inside the building when the fire started, but was able to get outside by the time firefighters were on the scene, according to Koloff.

Clark agreed to settle for $600 before he was assaulted in front of several witnesses, Seekonk police Lt. David Dyson testified. Dyson, the first officer on the scene, testified Allen refused police commands and had to be hit with a Taser three times before police were able to subdue him.

Dyson said Allen was wearing a heavy sweatshirt, which might have prevented the metal electrical probes from working effectively. “This is my PTSD,” Dyson quoted Allen as saying at one point, among other “ramblings,” some of which Dyson said he could not understand.

“He told me his chest was made of titanium,” Dyson testified. Dyson said that when he arrived at the scene on Industrial Court, Allen refused to stop, and threatened to kill him.

Police later talked to Clark, whose face was bloodied, and was traumatized by the assault. “He was in fear for his life. He thought that he was going to die,” Dyson testified.

Contrary to prior reports, five cellphone videos police obtained did not capture the assault on Clark. Dyson testified the videos only showed the police struggle with Allen. At the conclusion of the hearing, Judge Gregory Phillips ordered Allen held in jail without bail under the state’s dangerousness law.

Allen pleaded innocent to attempted murder, assault and battery and assault and battery on a police officer.

The case was continued to Oct. 8.

CollisionMax Supports PA Veterans in Job Search

CollisionMax continues to reach out to help U.S. military veterans.

This time it was through its organizational support of a job search skills workshop held on Tuesday, September 16, sponsored by the Lower Bucks County, PA, Chamber of Commerce.

The workshop, the second of its kind held at the chamber’s offices in Fairless Hills, PA, invited veterans to engage in mock job interviews with Bucks County employers, sit in a seminar offering interview and resume tips, and receive critiques of their resumes.

CollisionMax is one of several member companies who are active members of the chamber’s Veterans Support Project.

Companies that sent representatives to interview and coach veterans at this week’s workshop included Sam’s Club, Sesame Place, Lower Bucks Hospital, Patriot Connections, and Workforce Opportunity Services.

18 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Preston Automotive Joins Fight Against Breast Cancer

Breast cancer is a deadly disease. It is the most common cancer among women worldwide, as well as the second leading cause of death for women. One in eight women will be diagnosed with it in their lifetime.

In order to help combat breast cancer, Preston Automotive Group (PAG) announced United for a Cure during the whole month of October.

All the Preston Maryland and Delaware Dealerships donated $50 to the American Cancer Society for each new or pre-owned vehicle sold during the month of October.

Along with the donations, each of the locations for Ford, Hyundai, Lincoln, Mazda, and Nissan, for the first time ever, will be giving away a Pink Frog with every vehicle to help spread Breast Cancer Awareness.

Each auto body shop PAG in Preston, Cambridge, and Snow Hill also pledged to donate to the American Cancer Society. Each shop donated 2% of all service done during Breast Cancer Awareness Month.

“I am happy that our body shops can help donate to this special cause,” says Brian Grimm, Body Shop Director of PAG, “Many peo-

ple that do business with us have been affected by this disease and we want to give back.”

The American Cancer Society (ACS) is the largest, voluntary-based health organization in the United States.

Thanks to the ACS and donators like Dave Wilson Sr., millions of women are surviving breast cancer today.

“I am honored to help bring awareness and donate to the American Cancer Society. Breast Cancer has not only personally touched my own family, but also my friends and Preston Automotive Group family as well,” says Wilson, President of the Preston Automotive Group.

There are also other events taking place throughout the month at Preston Automotive to support the fight against breast cancer.

The Paint the Plex Pink event was scheduled to take place on October 24. At this event there wasfood, kid’s activities, a donation ceremony, and of course the “Drive to Inspire” Pink Truck.

The truck is covered in pink graphics as well as signatures to show support for the fight against breast cancer.

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 19

Lean Operations

Lean Implementation Strategies with David Luehr

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry.

David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

One of the biggest complaints I hear from shops is that it is so hard to get people to change their habits and conform to a new way of doing things.

Unfortunately, failing to implement a permanent change initiative has become the norm at most collision repair shops these days. Some of this resist-

it becomes to the staff. Sad, but so true!

There are many reasons that people are resistant to change, but I am surprised at how often it is the owner or manager himself that is the real problem! The art of communicating and understanding what make your

ance we bring on ourselves by what I like to call the “Flavor of the Month.”

I am sure most of you can relate to this scenario when the boss returns from NACE or some great seminar and all of a sudden he wants to fix everything overnight! These changes rarely take permanent hold in the organization and the more changes management tries to implement, the bigger the joke

people tick are of utmost importance these days. The old “iron-fisted” management style of yester-year rarely works these days.

How are you going to get your staff to buy-into change initiatives and consistently perform the vital steps required with new processes such as Blueprinting, and other lean concepts?

Many great books have been written

“One of the biggest reasons people don’t follow the steps is because the steps are too hard to perform”

20 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

on the subject of change, and I recommend you read them and learn as much as you can to better understand the behaviors and intrinsic values of you and your team. In addition to you doing some studies of your own, I hope you will find these 3 tips helpful to your change efforts.

Convenience One of the biggest reasons people don’t follow the steps is because the steps are too hard to perform. Call them lazy, call them whatever you want, but the reality of it is that if you give someone a task that is critical to success and the task is too difficult, it is human nature that it likely won’t get done consistently if at all. Let me give you an example. Let’s say that at your body shop, you have discovered that checking the re-

placement parts for correctness (mirror matching) is CRITICAL to your success. So if you remove the old parts from the car and throw them into a big messy pile in the corner, do you really think the parts guy is going to dig through that heap to find the parts he needs to mirror match vs. the new replacements? Probably not going to happen, right? You must make critical

Would you expect your parts person to dig through this mess to perform a mirror match?

to success tasks as easy as you possibly can if you want them to get done.

Convenience also means keeping

tools, information, and anything else that would be needed to perform a critical task close and easily accessible. Things not getting done are often not a work ethic problem as much as it is a spatial or procedural problem.

Space If you were trying to shed a few

pounds and decided that you need to quit eating donuts, do you think it would be better to have the box of

donuts that your rental car provider just gifted sitting on your desk, or would it be better to place the delicious box of devilish delight as far away as possible? My point is to set up your shop space to help drive the vital behaviors to succeed. A classic example of this is when it comes to Blueprinting. One of the vital behav-

iors of Blueprinting, in my opinion, is to have your estimating computer out with you at the damaged car. Can this happen at your shop, or are your estimators still writing everything down on a piece of paper and then walking this back to their office to enter a questionably accurate supplement into the estimating system? If this isn’t bad enough, I still see many shops that let the technician write the supplement on a piece of paper and then put it on the estimator’s desk to key in. What kind of behavior does this spatial arrangement encourage? Think about it!

Make it Unavoidable Make it difficult for people to do the wrong thing. Can you think of any tasks critical or otherwise that are being successfully performed at your shop consistently? What is different about those tasks that you can learn from and apply to your new initiatives and critical tasks? The act of moving a vehicle into the technician’s stall makes it pretty unavoidable that it will get seen and worked on by the technician. Making a task unavoidable is quite often a visual thing, and something that has to get done before it can go to the next step. Consider the use

of visual quality control in between departments to eliminate defects, and make it hard to screw up!

Outcomes • Recommended reading o Leading Change – Kotter o Influencer – Patterson, Grenny, Maxfield, McMillan, Switzer • Make critical tasks convenient o Tasks that specifically lead to your company’s success like Blueprint steps, parts mirror matching, customer communication, etc. must be made to be EASY! • Setup office and shop spaces to influence vital behaviors o Is communication a problem?

Consider how your office is set up. o How far do people have to walk to get parts, information, etc?

• Make critical tasks unavoidable o Think visual o Make it hard for people to screw up!

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Media and Publicity for Shops

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

Gas Monkey Garage and Dodge Recruit Mötley Crüe to Rock Dallas with Ed Attanasio

Richard Rawlings loves fast cars, pretty women and having a good time all the time, so it was a no-brainer when the Fast N’ Loud star opened his own bar about a year ago, followed by the purchase of a concert venue in October.

The Gas Monkey Garage brand is spreading throughout the country and now, Rawlings has headquarters where he can combine food, music, libations and cars.

In conjunction with Rawlings and Dodge, Charger, Challenger and Viper owners are about to get the show of a lifetime in Dallas on Nov. 1. The dealers will convene at Gas Monkey Live to attend a concert featuring Mötley Crüe, while dining on Gas Monkey Burgers, Bock Battered Chick Fried Steak, 3-Cheese Truffled Mac and Red Chile Grits. It’s a oneof-a-kind highly exclusive event open to Dodge owners looking to have an amazing time while showing off their vehicles to fellow gear-heads.

Head of Dodge Marketing & Communications, Mark Malmstead, is excited about the upcoming concert and the chance to partner with Rawlings and Mötley Crüe for this unprecedented event.

what’s out there and he has an edge.

As we sat down with him and got to know him better, we decided to do more with Richard. So, he appeared for us at the Woodward Dream Cruise in metro Detroit recently and everyone went crazy.”

Mötley Crüe will be performing at a Dodge owner-only event which is part concert and part car show on Gas Monkey Live on Nov. 1 in Dallas

Rawlings and his show couldn’t be any hotter. Discovery Channel currently airs Fast N’ Loud in 80 countries worldwide. The reality TV star has also opened another Gas Monkey Bar N’ Grill in the international terminal of Dallas/Fort Worth Airport. If the Gas Monkey restaurants continue to do well, Rawlings says he wants to open “15 or 20 more.” He and his team are currently scouting for location No. 3, which will likely be out of

The Gas Garage Bar & Grill will be THE place to be for Dodge Challenger, Charger and Viper owners who can get themselves and their vehicles to Dallas for the concert and car show, which also celebrates Dodge’s 100th anniversary

“We’re big fans of Fast N’ Loud and we met with Richard Rawlings and The Discovery Channel at the SEMA show last year and started discussing the idea of working together.

We talked about an in-show placement, which has yet to air and Richard has done some dealer commercials for us. The relationship has just continued to evolve from there. We love the way Richard Rawlings operates, because his show is a little different than

the area, but still in Texas.

How did the band, the man and the brand all come together for this one-of-a-kind event?

“Dodge is currently sponsoring Mötley Crüe’s Farewell Tour,” Malmstead said. “Last month, Richard purchased Gas Monkey Live, a music venue that was formerly owned by country star Toby Keith. So, Richard asked us, ‘Can you get Mötley Crüe to play at my new place?’ He was pretty

22 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

insistent, so Tim Kuniskis (Dodge and SRT brand CEO) made it happen, basically to get Rawlings to stop asking.”

Dodge was pleasantly surprised when it all came together, Malmstead said. “If we can get Mötley Crüe to play at a bar, which they normally don’t do and celebrate our 100th anniversary with a big owner party at Gas Monkey Live, we thought wow. It started out as a crazy idea and now it’s happening. The band was a little reluctant at first and they had to move a few dates around, but then they finally said yes.”

Cars, cars, cars will be an integral part of the evening and many of them will get as much attention as Mötley Crüe, according to Malmstead. “We’re hoping for 2,000 people and 1,000 cars, both vintage and late model Dodge Challengers, Chargers and Vipers. People can get thrill rides in a Dodge Viper drift car and a Dodge Challenger SRT

Hellcat that night as well. We’re going to provide show parking that night, because the event is foremost a car show.

You must own one of these vehicles to attend and you have to send in a photo of it, but the event is free for owners.”

Mötley Crüe has been rocking the world for 33 years, and is still going strong. Rock stars Vince Neal, Tommy Lee, Nikki Sixx and Mick Mars are all car crazy rockers. Earlier this year the video for Mötley Crüe’s classic “Kickstart My Heart” was rereleased with new Dodge scenes added. The video for country music star’s Justin Moore’s version of the ballad “Home Sweet Home” (from the Nashville Outlaws: A Tribute to Mötley Crüe album) also showcases a 2015 Dodge Challenger Scat Pack parked outside the club. For Dodge Challenger, Charger and Viper owners who want more information about the event, visit: www.dodgerocksgasmonkey.com.

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NJ Auto Inspection Shop Indicted for Falsifying Emission Test Results Acting Attorney General John J. Hoffman announced the indictment of three men who operate a private auto inspection business in Paterson on October 9 for fraudulently using data simulators to generate false results for vehicle emissions inspections. The men allegedly took payments from customers in return for using the electronic devices to generate passing results for vehicles that had failed emissions inspections, which rely on data from onboard diagnostic systems. One customer of the business also was indicted. The Division of Criminal Justice Specialized Crime Bureau obtained a state grand jury indictment charging these individuals with conspiracy (2nd degree), computer theft (2nd degree), tampering with public records (3rd degree), and two counts of violation of the Air Pollution Control Act (3rd degree: ● Christopher Alcantara, 29, of Paterson, owner of Five Stars ● Auto Inspection, which is located at 34 1st Avenue in Paterson; ● Mariano Alcantara, 52, of Clifton, (an uncle of Christopher Alcantara); ● Lewis Alcantara-Sosa, 22, of Paterson, (cousin of Christopher and nephew of Mariano); and ● Gary Davis, 62, of Rochelle Park, who allegedly knowingly paid the other

defendants to obtain passing emissions results for limousines he drove by fraudulently using the data simulators.

“These defendants allegedly profited at the expense of all of us by fraudulently allowing customers to neglect their vehicles and pump unlawful levels of toxic emissions into the air that we breathe,” said Acting AG Hoffman.

“This was a crime against our health as well as our environment.”

“We will continue to work with the MVC and DEP to safeguard the integrity of the state’s motor vehicle inspection program,” said Director Elie Honig of the Division of Criminal Justice. “As in this case, we will aggressively prosecute dishonest operators who cheat the system and threaten the public’s health.”

“The state’s stringent emissions testing program is designed to enable us to get the offending ‘polluters’ off of our roadways and into repair shops,” said Motor Vehicle Commission Chairman and Chief Administrator Raymond P. Martinez. “These repair shops are meant to be the solution – not the problem – to keeping countless tons of pollutants out of our air.”

“Governor Christie and I are committed to protecting the quality of our air and enforcing the laws and reg-

ulations that protect the health of our residents and our environment,” DEP Commissioner Bob Martin said. “This type of behavior is not acceptable.”

It is alleged that, on numerous occasions during the past year, the defendants temporarily installed OBD simulators in place of the data link connector in vehicles that had failed emissions inspections in order to generate false data that enabled the vehicles to pass inspection. The defendants allegedly charged between $80 and $150 in return for using an OBD simulator to enable the customer’s vehicle to pass the emissions inspection. It is alleged that they frequently installed the OBD simulator at Five Stars Auto Inspection, which is a PIF, but then took the vehicle to central inspection facilities, particularly the Lodi CIF. They also used the Paramus CIF. During the course of the investigation, investigators conducted surveillance of the defendants and Five Stars Auto Inspection. In addition, they allegedly arranged for the defendants to install OBD simulators in two undercover vehicles so that they would pass inspection. On Jan. 15, 2013, investigators executed a search warrant at Five Stars Auto Inspection, where they seized evidence including six OBD simulators

and records. Christopher and Mariano Alcantara were arrested that day and lodged in jail with bail set at $50,000 for each. Lewis Alcantara-Sosa was charged by summons and released.

Davis was employed as a limousine driver and was responsible for maintaining the limos that he drove.

He allegedly paid the Alcantaras to fraudulently obtain passing results for several limousines.

Four-Alarm Fire in NJ Threatens Auto Body Shop

The fire started in a vacant downtown commercial building in Passaic, NJ on Oct. 13, and spread to Auto Body 777 before firefighters contained the flames. An explosion in the building caused part of the roof to collapse, and the building’s owner, who met firefighters as they arrived, was treated for minor burns at St. Joseph’s Regional Medical Center in Paterson, according to reports by Todd South, northjersey.com.

It took almost six hours to get the fire under control. The cause is being determined, but the owner of the building is believed to have been doing work on the water heater and heating unit, according to South.

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Auto Body Association of Connecticut Regroups for Fall 2014

by Chasidy Rae Sisk

After taking a break for the summer, the Auto Body Association of Connecticut (ABAC) gathered on Tuesday, September 9 to begin the fall season with their Quarterly Membership Meeting.

The Country House Restaurant in Foxon was filled with association members, prospective members and guests who gathered for an evening of industry education and networking.

ABAC President Tony Ferraiolo presented the meeting agenda and expressed gratitude to the meeting’s sponsor, Richard Chevrolet, and co-sponsors, Enterprise Rent-A-Car, Paint World and Zephirblue LLC – ZB Negotiations.

Ferraiolo also thanked the supporting advertisers for ABAC news as well as the association’s yearly corporate sponsors.

The evening’s presentations began with Kevin Linsky from Enterprise Rent-A-Car. He discussed the company’s ARMS program, a website application that allows collision repair facilities to communicate electronically with Enterprise’s rental branch.

The program is designed to benefit collision repair facilities by directly sending repair status updates to Enter-

prise, allowing the shop to enter vehicle status information at their convenience, reducing or eliminating the need for multiple status requests via phone or fax, and by ensuring that correct and consistent information is relayed to the insurance companies.

Because the ARMS program is web-based, it relies solely on internet access and does not require additional software to utilize it. Enterprise representatives will train collision repair shops at no cost, and interested facilities should contact their local Enterprise office for more information.

The next presenter was John Walczuk, Director of ZB Negotiations, who provided attendees with a brief introduction to his company and what they do.

As a total loss vehicle settlement negotiator, Walczuk and his company use their knowledge of and experience with the collision repair industry to negotiate for fair market valuation settlements for total loss vehicles. With Walczuk acting as representative, ZB Negotiations will negotiate directly with the insurance company on their client’s behalf; however, this service is offered on a contingency basis only.

Then, CCRE President Tony Lombardozzi discussed the many law-

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describing several of GM’s current programs, specifically Bump the Competition, Collision Link and the new Body Part Patent.

Mickle then took center stage to discuss a wide variety of topics pertaining to collision repair information.

The GM presentation was made possible through the efforts of Ron Vernick, Parts Manager at Richard Chevrolet.

The ABAC is grateful to the presenters and attendees who took time to attend their meeting, and Ferraiolo hopes “the education received will ultimately help you moving forward in your business.”

Next up, the ABAC eagerly awaits the final appeal in The Hartford class action lawsuit, originally filed 14 years ago, which was schedule to be heard in October by the Connecticut Supreme Court. Stay tuned to Autobody News to learn how it all plays out!

For more information, contact ABAC 203-269-2842 or visit their website: www.abaconn.com

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suits currently underway across the nation in his typical no-holds-barred manner that has made him an interesting and welcome addition to industry events for many years.

Lombardozzi was followed by John Parese, Legal Counsel for ABAC, who covered a plethora of topics, including video/phone estimating, safety concerns, underpayments, violation of insurance laws and more.

The meeting concluded with the main presentation, led by the following representatives from General Motors: Jeff Shaw, GM Wholesale Specialist; Tom Seagrave, Wholesale Specialist; Patricia Lukes, DM Wholesale Parts; and Jim Mickle, GM Parts Training.

All attendees received a disc containing the presentation and other information designed to aid the collision repair facility, such as GM Patent Body Parts information and Position Statements.

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www.koeppelmazda.com www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 25

Continued from Cover

Memphis Radio

try that insurance companies often attempt to take control at the accident scene, moving the damaged vehicle against the consumer’s wishes and trying to coerce the vehicle owner to agree to having the repair completed at one of their DRP shops. Although the consumer has the right to choose where their vehicle is repaired and it could easily be argued that the insurers are taking advantage of their customers, it is easier and cheaper for insurance companies when they get their way, as they often do in these situations.

When questioned about why insurers are so adamant about steering despite the possibility of being sued, Eaves noted that insurers profit greatly by this practice as the benefits to them outweigh the risk; this is the reason his pending lawsuit and other lawsuits are necessary. Fowler reminded listeners that this is a battle the collision repair industry has been fighting for 25 years, but it has come to a point where quality repair shops will go out of business if nothing is done to “rectify this travesty.”

Moving on to the topic of aftermarket and OEM parts, Fowler said that his opinion has changed. Previously, he believed it should be the customer’s choice whether or not to use aftermarket parts, but because most consumers don’t understand the differences and implications of using these parts, he now feels that it is the collision repair professional’s responsibility to educate the consumer. He reiterated that “testing proves that aftermarket parts do not always perform the same as genuine OEM parts.”

In response to the radio hosts’ question about whether “imitation parts” have been implicated as the cause of any accidents, Eaves unambiguously stated that the use of poor quality aftermarket parts has caused a multitude of accidents across the country. Unfortunately, few people are aware of this concern because these settled cases included confidentiality agreements to prevent them from becoming public knowledge. Furthermore, as many parts, including windshields, tires and airbags, directly affect the safety of the vehicle, investment in parts is more crucial than ever. According to Eaves, YouTube features many videos on how aftermarket parts affect vehicle safety, and documentaries are currently being filmed on this issue as well.

Eaves is not optimistic that the

lawsuit will go to trial quickly, but he is prepared to fight this battle for quite some time if necessary, noting “this is bigger than just a lawsuit; it’s a campaign!” Part of this campaign includes asking Congress to support legislation to restore the proper balance of power between the insurance industry and the collision repair industry. As precedent for his request, Eaves cited the Consent Decree, a similar situation in the 1960s when insurance companies tried to dictate which parts could be used and how much they would pay for repairs. The U.S. Department of Justice sued the insurance industry, and the resulting ruling was that insurers cannot force collision repair facilities to compromise the quality of their repairs. Thus, the balance of power between these two industries was restored if not enforced.

Eaves said he hopes that his current efforts will yield the same results for the modern collision repair industry.

Directing his attention to what consumers can do to aid in this battle, Fowler reminded consumers that they have the right to choose the facility that repairs their vehicle, and he encouraged them to act on this right by taking their car to whichever shop they prefer. He cautioned that it is a red flag if the insurer insists on dictating where the vehicle is repaired, and this could indicate that the insurer is engaging in other unsavory practices, such as mandating which parts are used in the repair.

Though vehicle manufacturers provide specific repair information to maintain a vehicle’s safety, Fowler said he has experienced firsthand that some insurers will demand used parts be installed, even though both he and the manufacturer warned that such a practice could compromise the vehicle’s safety. Despite insurers’ tendency to use intimidating in their interactions with both consumers and repair facilities, Fowler states, “there are shops that try to do what’s right, but they are vilified, disparaged and essentially squeezed out of business.”

Eaves agrees that it is imperative for consumers to trust the facility repairing their vehicle as their lives are being placed in the hands of these professionals, and a poor quality repair jeopardizes the safety of the consumer, their family and anyone else on the highway. The importance of finding a trustworthy repairer is so great that Fowler founded www.safecars.us, a website that promises to place the consumer’s safety above all else and plans to feature member shops who have committed to this goal.

26 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Although Fowler believes that some insurance agents would like to do the right thing for their customers, the rules are passed down from the insurance companies’ corporate offices, leaving the agents powerless to make changes. Unfortunately, the insurers are the only ones to benefit, and these practices are actually performed to the detriment of the collision repair facilities, the consumers and even lending institutions as an improperly repaired vehicle is apt to create a situation of diminished value.

When radio hosts questioned why some insurance companies have departments that deal in diminished values, Fowler notes, “they pay when they’re forced to pay, but they are never going to voluntarily do the right thing because it’s not profitable, and everything they do is profit-driven.”

In fact, he warns that diminished value can occur to such an extent that the vehicle should have been declared a total loss because it is no longer safe to be driven on the road! Luckily, diminished value is an issue that consumers are becoming increasingly aware of, and Fowler encourages anyone with doubts about the safety or integrity of a repair to get a post-repair inspection.

His shop will gladly inspect repairs and provide objective assessments, as will many shops across the nation. As the show ended, Fowler encouraged consumers to stand up for their rights.

Though he would like to believe that the insurers look out for their customers’ best interests, his observations indicate that they are only concerned with profits. “This war has been going on for a long time, mostly behind the consumers’ backs, but it affects everyone because if a car is unsafely repaired and out of control, it is dangerous to everyone on the highway. The U.S. public needs to be concerned with this issue… You never know what battles you can win until you fight them. Doing nothing only ensures you will lose.”

To access to the radio broadcast, go to http://www.iaba.info/Documents/ Newsletters/Issues/2014/10%20 October/Full%20Stories/Article%207. html (link is at the bottom of the page).

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Historical Snapshot

—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988.

He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

DRPs 20 years ago, Early CCRE, ADP Revises Labor Times with John Yoswick

20 years ago in the collision repair industry (November 1994) Recently I read an article that was critical of industry leaders who had not taken a stand against DRPs. It brought to mind a discussion I once had with (a member) who said there are things associations can do that make some members happy, but that don’t mean anything. He called it “feel good stuff.”

For association leaders to denounce all DRPs when half or more of their membership participate in direct repair programs would be nothing more than “feel good stuff.” It feels good to those who are not DRP shops, but what about those member shops who chose to go DRP? It’s very easy to criticize associations that have a neutral position on DRPs, but what would happen if they came out against them? The best any association can do is to rally against the abuses where they exist; to support legislation that protects a consumer’s right

to choose the repair facility; and to do what it can to advise its members on how to determine if DRPs are a wise business decision for them. There are a number of individuals, some of them leaders, who continue to yell about DRPs without offering any real solutions. But regardless of what they have said, it’s the collision repair professionals who have voted by making the business decision whether to participate in these programs. All the yelling in the world won’t eliminate DRPs. Those of you who can’t accept that reality can keep yelling, or your can roll up your sleeves and go to work on the 65 percent of business that will never be DRP. Learn how to better market your business and sell collision repairs.

Bury the DRP bogeyman and get to work. It’s in your John Loftus

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15 years ago in the collision repair industry (November 1999) Mike Melfi said the Coalition for Collision Repair Equality (CCRE) was founded about three years ago as an organization to help like-minded shops owners around the country “take back control” of their businesses and reduce insurer influence over the industry. It was incorporated as a for-profit company so that it would never have to divulge a list of its members (which the organization refers to as “sponsors” or “clients”). About 80 people – including about a dozen attorneys – attended the group’s recent meeting in Phoenix.

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property damage litigation,” said Ann Spink, a Louisiana shop owner and vice president of CCRE. “We believe that legislation and education is part of the answer but litigation is the bottom line.

The reason CCRE exists is to try to put together the documentation and the expert witnesses to help these attorneys understand how to litigate for us. And because they’re class action attorneys, we don’t have to pay them, just help educate them.”

Shop owner Melfi told CCRE participants he had predicted the first nonOEM parts lawsuit “victory” would take two years. “It took three years,” he admitted. “But now I have another prediction. If steering continues, one day on the 6 o’clock news, you’re going to see an executive of an insurance company in handcuffs being put in a federal marshal’s car being charged with federal racketeering.”

– As reported in Parts & People.

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Melfi referred to was the $1.1 billion judgment against State Farm in 1999, which the Illinois Supreme Court overturned in 2005. A class action lawsuit filed in Illinois earlier this year alleges that seven of the Top 10 insurers violate federal racketeering laws by illegally conspiring to use their direct repair programs and other means to enforce “an artificial market value for collision repairs.”

10 years ago in the collision repair industry (November 2004) A widespread and significant drop in ADP refinish labor times discovered in recent weeks will be corrected in ADP’s November CD update release, which the company says has been sent to ADP customers.

“The operational issues with the refinish times in the October CD are revised in the November CD,” Scott Jenkins, senior director of “Estimating Solutions” for ADP said. “The November CD is consistent with the September CD. If the user did not load the October CD, they were not impacted. We are instructing our customers to load the November CD immediately upon receipt.”

The October CD included many decreased refinish labor times of 10 per-

cent or more. Refinish times for 20002004 Ford Taurus hood, for example, dropped from 3.9 on the September ADP CD to 3.4 on the October CD. Times for a 1999-2004 Pontiac Grand Am fender dropped from 2.4 to 1.9, and the front door time for a 1999-2004 Chevy Cavalier dropped from 3.1 to 2.8.

Although some have looked for some sort of intent behind the widespread reductions, ADP, while avoiding using the term “mistake,” maintains that the problem was an “operational issue,” not an attempt to shave labor times.

“Some of our clients have experienced an operational issue regarding refinish labor on hoods, doors, fenders, roofs, decklid/tailgates and back doors,” Peggy Adams, operations manager for client services for ADP, wrote in an email response to questions about the October CD. “All new estimates created with the November CD reflect the updated refinish labor. We apologize to our clients for any inconvenience we may have caused.”

The issue has resulted in a flurry of email activity between shops and industry organizations since it came to light in early November. Part of the concern was fueled by the fact that various ADP personnel were giving conflicting - or,

at a minimum, ambiguous - responses to questions about the labor time changes. An ADP tech support employee, for example, told one ADP shop customer in the Pacific Northwest that the revised times were based on “new time studies” ADP had done.

– As reported in Autobody News.

Prior to shops accessing the estimating database information over the Internet, the system providers sent monthly updates to the data to shops on compact discs. ADP’s Claims Services Group (including its estimating system) was acquired by Audatex (now AudaExplore) in 2006.

5 years ago in the collision repair industry (November 2009) In the transcript of a small claims appeal trial involving two of customers of G & C Auto Body of Santa Rosa, Calif., California Superior Court Judge James Bertoli took State Farm to task for its rate survey process and arguments regarding reasonable repair costs.

Shop owner Gene Crozat’s customers had won after filing small claims court cases against State Farm insureds when the insurer refused to pay all of G & C’s charges. The insurer appealed both cases, and the court heard the two

appeals together over two days. Bertoli said State Farm could use whatever method it specified in the insurance contract to determine a reasonable price in first-party claims, even if they determined that price, “by reading chicken entrails, and consulting with the three witches from MacBeth (which is) just about as accurate as the survey itself is.

I think that survey from a statistical standpoint would get a first-year college student a flunking grade.”

But in a third-party case, the judge said, a reasonable charge “implies a range of charges” and “no particular charge can be said to be the only reasonable charge.” He said State Farm did not try to establish that G & C’s rate was unreasonable, and it appears to fall within a reasonable range of prices.

“Quite frankly with regard to the third-party claims, this Court does not believe they should have been litigated,” Bertoli said in finding for Crozat’s customers. “I think the answer is clear, and I quite frankly see it as an effort on behalf of the insurer to try and suppress the price charged by someone outside of their range.”

– As reported in CRASH Network (www.CrashNetwork.com), November 16, 2009.

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Social Media for Shops Body Shops are Tapping into the Persuasive Power of Video with Ed Attanasio

In a world where we are constantly bombarded by texts, tweets, status updates, and emails, it’s no surprise that many people read fewer books and seem to have some form of ADD. A young person recently told me with pride that he hasn’t read a book since high school.

“I like pictures,” he said.

So, on a planet where almost everyone has a short attention span, how do we communicate effectively with the masses? The answer for some is through video—short, sweet and to the point. Several body shops have experienced great success by working with the same video production/marketing company and the videos they’re producing are creating a buzz throughout the collision industry nationwide.

Absolute Perfection Media (AP Media) in Sykesville, MD, is the company producing these attention-getting videos for body shops. They’re the hottest new video production company serving the collision industry and shops are clamoring to work with them. President Lee Emmons is now working with more and more shops owners who have seen his past productions for Mark’s Body Shop in Baltimore City, MD, and K & M Collision in Hickory, NC. The appeal stems from their direct, no-nonsense approach. Emmons has learned the collision industry along the way, he said, and now he’s known as the “body shop video guy.”

“The power of video and YouTube has become apparent and now collision shops want to tell their stories using this format,” Emmons said. “These shops are willing to take on the insurance companies and this is the way they’re doing it. We’re also producing videos to educate their customers about things like certifications and the use of OE parts.

These shops have learned that these videos are highly effective and very affordable and we can turn them out rather quickly. Once a shop does a few of these videos and sees the response, they want to do more. I’m traveling to K & M next week to produce a series of videos about their manufacturers’ OE certifications.

Some of the videos I’ve produced for body shops have gone viral and gained a lot of national attention, so we’re getting new collision clients all the time.”

The Vice President of Operations at K & M Collision, Michael Bradshaw, has produced a series of videos with AP Media and posts them all on his YouTube Channel.

“We have approximately 10 on there right now and maybe five more in production. We take an educational

great feedback about them from our customers,” Bradshaw said. “Insurance adjustors also tend to see them too!”

Mark Schaech, Jr., is the second-generation owner of Mark’s Body Shop in Baltimore City, MD. He started working with Emmons at AP Media several years ago.

Lee Emmons of AP Media shooting a video for K & M Collision in Hickory, NC, featuring their receptionist, Caitlin Adams

approach to many of the consumer-related issues in this industry, including titles such as, Has Your Car Been Repaired Safely (Watch this case and stay safe after an accident)?; Do You Qualify for Diminished Value? (The Insurance Company May Owe you Money); An Epidemic of Unsafe Collision Repairs; Post Repair Inspections; What is Steering?; Who Guarantees Repairs?; and An Open Letter to the North Carolina Attorney General.

Short videos with a succinct message have proven to be highly effective, Bradshaw explained, although in some situations longer, in-depth videos also work well.

“We were doing longer videos at first, mostly 4–6 minutes in length, but now we’re trimming them down to two minutes and our most recent ones are coming in at 90 seconds. When we’re dealing with certain subjects, the longer videos work just fine, but we also produce shorter ones to convey the message quickly and present the topic in a way that the viewer can absorb easily.”

If you’re getting your car fixed

by K & M Collision, you’ve probably seen one or more of the shop’s videos.

“We loop all of them together and show them on a monitor in our reception area at the shop and we’ve gotten some

30 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

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

“We have now produced at least five videos with AP Media and they’re being seen by shops all over the country,” Schaech explained. “We let shops use them, as long as they give us an outbound link. These other owners are realizing that these short videos are effective, because they can easily convey the information that we want to communicate, because this is a very complex industry and the average person doesn’t really know what’s going on.”

Schaech, 41, took over the business from his father in 2000 and back then they had six DRPS. But, today they have none and some of their videos document why.

“The first one we did with AP Media was about a post repair inspection video and it had immediate impact,” Schaech said. “A Mazda had been repaired by another shop under an insurance company’s DRP and it was completely hacked and butchered. It See Power of Video, Page 35

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 31

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Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com

Dept. Hours: M, T, W, F 7:30-5:30; Thur 7:30-8; Sat 8-5 apersaud@liacars.com

Sussman Honda

Lia Honda of Williamsville

800-682-2914 215-657-3301

Williamsville/Buffalo

877-659-2672 716-632-3800

N o r t h P l a i n field

908-753-1680

Ray Laks Honda

Dept. Hours: M-F 7:30-6; Sat 8-3 kevinh@viphonda.com NEW YORK

Babylon Honda We s t B a bylon

631-669-5800 Dept. Hours: M-F 7-7; Sat 7:30-3:30 babylonparts@aol.com

Brewster Honda B re w s t er

845-278-4177

Pittsburgh

800-272-6741 518-482-2598

Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com

VIP Honda

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Roslyn

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West Seneca

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Apple Honda York

800-960-9041 717-848-2600 Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com

For more collision info, go to: collision.honda.com airbagaware.honda.com crashrepairinfo.com

Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com

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Dept. Hours: M-F 8-5; Sat 8-4 egreger@penskeautomotive.com

Dept. Hours: M-F 8-6; Sat 8-5 parts@curryacura.com

Dept. Hours: M-F 7-5:30; Sat 7-3 parts@appleacura.com

Dept. Hours: M-F 7-5; Sat 8-5 mustafa@vinart.com

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800-246-7457 724-935-0800

800-826-4078 215-884-6285

Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com

Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com

NE W Y O R K

Acura of Westchester We s t ch e s t e r

914-834-8887 Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com

Smithtown Acura S t . J a m es

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Lehigh Valley Acura

Davis Acura Langhor ne

866-50-ACURA 215-943-7000 Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 33

John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the collision 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.

Industry Insight with John Yoswick

Energy Transfer in Today’s Vehicles Makes Measuring, Multi-Point Pulling More Important Some industry observers estimate that only about 20 percent of vehicles in collision repair shops are actually being measured as part of the repair Richard Perry process. Richard Perry, who oversees training for Chief Automotive, believes that changes in vehicle materials and structure mean

that at least four times that percentage should be measured.

“If that vehicle is impacted, it should be measured,” Perry said. “We usually know what’s going to happen with the damage; we just don’t know the extent of it, where all it’s gone, how far did it travel through the vehicle. You’ve got to be able to find it to fix it. So before the repair we need to analyze what’s wrong to develop a repair plan. During repair, we need to

Richard Perry of Chief Automotive discusses the value of multiple-point pulling during a recent demonstration in the shop at Chief’s headquarters in Madison, Ind.

provide, almost half of our business is there,” Cranfill said.

Vehicle Services Group (VSG) is itself a segment of Dover Corporation, a global producer of equipment, systems and services in a variety of businesses. In addition to Chief, VSG brands include Rotary Lift and Elektron welders. It has about 1,200 employees in the U.S., Germany and China.

Its measuring, pulling and welding equipment sales each account for about

21 percent of its overall revenue, but its single biggest revenue source is the vehicle measuring data it sells directly to collision repairers and also to the estimating system providers.

Does Chief collect data on the vehicles that shops are measuring with its equipment?

“We do not collect it,” Bob Holland, VSG collision director for North America, said. “With our licensing agreement, we

Chief Automotive Sees Itself as Source of Information As Much As Equipment

If you still think of Chief Automotive as primarily a pulling equipment company, think again. Mike Cranfill, vice president of global collision and new business development for the Vehicle Services Group (which includes Chief Automotive) said changes in the company’s revenue sources reflect changes in the industry itself.

“I like to think we’re an information company, because if you take the training, the measuring equipment and the data we

measure multiple points, and monitor those during repair because as you start to make repairs, more than one point is going to move at a time. We need to monitor all those points.”

Perry said in the past, technicians might gauge the extent of the damage by checking to see if the vehicle’s doors open and close; if they did, they felt it was safe to presume the damage had not extended beyond the passenSee Energy transfer, Page 36

have the right to collect it, but we do not.”

Cranfill some companies, such as those that offer vehicle history information, may seek that information, but Chief doesn’t share it because the information tells only part of the story.

“The risk is: What does it mean?”

Cranfill said. “Even if the data shows the car measurers to factory specs, can you guarantee the repair was proper? Maybe you used heat when you’re not supposed to.”

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Power of Video

was a death trap and it eventually got totaled and the driver got paid off. Our video told the story and showed the evidence clearly, and that was why it worked so well. Since coming out, the Maryland Attorney General and the Insurance Commissioner has seen the video and body shops show it to their customers all the time. We get great feedback about it and it’s also helping us to get higher rankings on Google.�

Currently, AP Media is producing a series of four automotive certification videos for Mark’s Body Shop. “K & M has done a few OE certification videos and they’re powerful, to say the least, so we’re doing the same,�

Schaech said. “They did a Porsche certification video and now they’re on top of all the search rankings as a result.

We use video to inform and educate our customers, but enhanced SEO is also a big part of it. Years ago, we spent a lot of money on cable advertising and the response was weak, but these videos cost us less and they get us more response. We’ll be making more all the time, because we can new see they pay for themselves in the end.�

Continued from Page 13

MSO Consolidations

“Fixing cars is become more and more challenging than ever before,� said Afshar. “The vehicles are so different now and they may look the same outside but what’s inside is not the same.� With the standards set by the Insurance Institute for Highway Safety (IIHS) and the Corporate Average Fuel Economy, cars need to be lighter but still pass safety requirements.

Afshar said another challenge for those in collision repair is employing proper technicians with the right mind set. Afshar, who sold his MSO Sterling Automotive Group in 1998, said technology is moving so rapidly that detailed knowledge, training and equipment is becoming even more necessary for shops to be successful and he encourages technicians to be open-minded and learn new techniques that they’ve never used before.

Update: Fire Destroyed Established PA Auto Body Shop

left on a rollback near the side of the building and the vehicle had been in After a fire destroyed Jim Weiss Auto a crash,� he said. The official cause Body & Towing in East Stroudsburg, of the fire is still undetermined, acPA on August 22, friends are helping cording to Sgarlat. with a massive clean up effort so Jim Weiss took some time off to deal Weiss can rebuild the business he with insurance matters and is now getting back to business. “We are doing what we can,� he said. “It took 30 years of work to get where I was and now it’s like starting again.� A temporary office was set up out of a camper on site and some of the neighboring shops are letting him use space in their garages for auto body There were 13 cars lost in total, including a police car, work. high-end lines such as a Mustang and vintage vehicles Weiss said his own shop should be operational in apstarted more than 30 years ago. “I’m thankful that the cleanup is proximately two months. “Our busigoing well,� said Weiss. “A lot of my ness is all word of mouth,� he said. friends who are retired are helping “We’ve done very well managing to everyday. I have a lot of support right keep our doors open and managing during a difficult economy. This is a now and it means a lot to me.�

The Monroe County shop huge blow and we’re going to try and caught fire around 4am on August 22. keep our doors open and survive this Trooper Jamie Sgarlat from the situation.�

Pennsylvania State Police said the fire originally initiated in a Jeep that Jim Weiss Auto Body & Towing can had been towed to the shop. “It was be reached at 570-421-1225.

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Continued from Page 34

Energy transfer

ger compartment. But vehicle manufacturers have strengthened both the lower and upper structures of vehicles, further reducing the impact of visible damage to the passenger compartment.

“I’ve seen some vehicles that had straight-on impacts at 50 mph, yet you can open and close the doors like factory,” Perry said. “The passenger compartment does not react they way it used to. But that energy is still going

Lee Daugherty, global data product manager for Chief Automotive, points out the type of measuring data available through the company’s LaserLock system

somewhere; something further back in the vehicle has to give to absorb that energy. So that old way of thinking, of not measuring everything, results in overlooking something. That’s why we need to measure the entire vehicle each time.”

Perry believes eight measuring points is the minimum that should be used to ensure all the damage is located,

though the total number will depend on the severity of the impact. Start with four on the center structure of the vehicle, he suggests, then one on each of the

Jerry Ralston explains the final assembly processes that Chief frame equipment undergoes at the company’s Madison, Ind., headquarters

front and rear corners of the vehicle.

When it comes to pulling, multiple towers allow more precise movement, he said, given that damage can be in three directions: lateral, vertical and length-wise.

“The more hook-ups you can put on at your initial pull, the more that damage is going to come out the way it went in,” Perry said. “But you need to be monitoring it as you pull so you know you’re going in the right direction.”

Multiple pulling also reduces the amount of force used at any single point.

“If you put more combined force on a vehicle but less at each location by doing multiple simultaneous pulling with equalized pressure, you can repair a lot of things that you couldn’t before because you’re not going to rip and tear it,” he said. “You’re not going to damage and distort it because you’re not put-

‘iEstimator’ and ‘iTechnican’ Apps Now Available Startup My Business is a Wreck announced on October 21 the launch of two first-of-its-kind mobile apps, the ‘iTechnician’ app and the ‘iEstimator’ app.

Both apps are free and available on the App Store for iPhones, iPads & Google Android Devices.

The ‘iTechnican’ app will allow technicians to log, track and the status of their flagged and/or unflagged hours right from their smartphone. iTechnician Features: ● Log assigned repair order numbers ● Record rate of flat rate ● Track weekly or bi-weekly pay cycles ● Track paid labor hours ● Track unpaid labor hours ● Calculate expected pay amount ● Record a weekly or bi-weekly work history report The ‘iEstimator’ app will allow Collision Estimators to improve their customer’s service experience and perform necessary daily duties right

from their smartphone.

iEstimator Features: ● Log customer info and repair order numbers ● Create a personal daily customer arrival calendar ● Create a personal daily customer departure calendar ● Customizable customer authorization form with signature and email Capability ● Vehicle no longer safe to drive notice form with signature and email capability ● Customer belongings left in vehicle inventory form ● Existing AM and FM radio pre-set stations ● Vehicle old damage check-in form ● Maintenance upsell opportunities form ● Tires depth gauge form ● To do list ● Capability to email all info above in a single report

36 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

ting as much pressure at each location.”

Perry shared his measuring and pulling concepts while working on an actual damaged vehicle during a recent demonstration in the shop at Chief’s headquarters in Madison, IN. Among the features of the company’s “LaserLock” measuring system he pointed out was the dual monitors that allow a technician to have both measuring information and OEM repair information readily accessible.

“The OEMs used to sit on the sidelines because who knew better about repairs than anybody else? The technician,” Perry said. “After all, he’d been doing it for 20 years, and things hadn’t changed that much. But with the many changes to vehicles today, who knows most about a vehicle now? The OEMs. They designed it. They engineered it.”

That said, Perry believes another advantage of using Chief measuring data is that the company doesn’t just use OEM build data but actually measures vehicles off the tires and in clamps just as is done in shops. That ensures the system offers more accurate, realworld measuring data, he said, because such a set-up takes into account the slight sagging the front and rear of a

vehicle does when it is up in clamps.

Perry said another key message to technicians in his training is that measuring is almost always the solution to challenging repairs.

Bryan Brown demonstrated the newest Elektron welder during a recent media tour of Chief Automotive’s headquarters. Elektron and Chief are among the brands owned by Vehicle Services Group, based in Madison, Ind.

“If you can’t figure out what the problem is, take more measurements,” Perry suggests. “You’ll find it eventually. You’re just not measuring far enough. You’re not taking enough points to identify all the damage.”

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 37

Continued from Cover

Congress Support

their body shops.

“We wanted to make the legislators aware of what the insurance companies are doing to the consumer,” said Matt Parker, owner of Parker Auto Body in Louisiana who is part of the lawsuit. “The insurance industry should not tell us how to repair cars.

We’re the professionals here, not them.

We have all the liability, they don’t,” he said.

Tony Passwater, Executive Director of the Indiana Autobody Association and President of AEII Consulting Services, said that what started as multi-district litigation in April with just five states, including Mississippi, Florida, Tennessee, Indiana and Utah, and later by Louisiana, is now part of a much bigger action to regain control that he termed “The Movement.”

He said, as part of “The Movement,” shop owners representing a dozen states went to Capital Hill “…to discuss the growing concerns for consumer safety, the mandating by insurers to require repair shops to use untested and unsafe parts on vehicles, and the intimidation tactics the insurers use when a repairer refuses to do so.”

“Most [members of Congress] have had their car repaired and were very empathetic and were already concerned about the issue, so we were very encouraged by the response,” said the lead attorney John Arthur Eaves, Jr. of Eaves Law Firm in Jackson, MS. Eaves said many were still not aware of the Robert Kennedy-era 1963 Consent Decree and now is an excellent opportunity to ask them to help enforce what is the official public policy of the United States government.

He said the body shops plan to visit Washington D.C. again in November when congress comes back into session and the hope is that a bill will be introduced at that time. “The law will really be a codification of the policy of the United States that was set in 1963.”

It was that year that the U.S. Department of Justice, under the direction of Attorney General Robert Kennedy, investigated the concerns of the collision repair industry and found 265 insurance companies, and the three major trade associations that represented insurers, were in violation of the Sherman Antitrust Act. An An-

chanical rate with no justification. He have the resources necessary to invest said this is due to insurance companies in all of this technology,” said Eaves. that have artificially suppressed the “That’s basically what the lawsuit rate and is a clear violation of the Concomponent is all about… making sure sent Decree. that people who do the work and do it Another main component of the right get paid for it so they can conlawsuit is against steering. “Most tinue to provide that service to the states in the country say it is illegal for American customer.” insurance companies to purposely inThe next court date is set for Noterfere in the business relationship of vember in Orlando, FL. “The allegathe customer and the body tions that are part of the multi-district shop,” said Eaves. Howlitigation being heard in Florida are not ever, insurance companies in line with State Farm’s mission to do it regularly, telling cusserve the needs of its customers, and tomers they have to go to our long, proud history of achievetheir DRP body shops or se- ments in advancing vehicle safety,” lect service shops. “That’s a said Dick Luedke, spokesperson for big part of our lawsuit and State Farm Insurance. one of the things we think is “A vibrant, profitable auto collipure violation of the proper sion repair industry is in the interest of balance between the two inState Farm,” said Luedke. “At the dustries,” said Eaves.

“By same time, we are advocates on behalf (l to r) Joe and Karen Enneking of Enneking Body Shop in Indiana, Congressman Luke Messer and Tony Passwater, having the same practices of our customers for reasonable repair Executive Director of the Indiana Autobody Association in exposed by all body shops costs. We believe repairer profitability Washington D.C. in one litigation, the judge and quality auto repairs that are reacan more clearly see that this is a patsonably priced can both be achieved. in connection therewith, whether by tern of practice,” said Eaves.

“Our customers choose where coercion, boycott or intimidation or by Eaves said that in addition to their vehicles are going to be rethe use of flat rate or parts manuals or these challenges faced by shop ownpaired. We provide information about otherwise.” ers, the industry also has to adapt to our Select Service program while at “If you look at the Consent Denew technology. “Only the shops that the same time making it clear they can cree and read it, it would look like somebody from today wrote it because actually get paid for what they do will See Congress Support, Page 43 all the things they’ve been doing since the 40s they are continuing to do,” said Parker. “To be honest with you, every• We are the authorized insurance thing they’re doing is against the law.” vendors for the AASP/Alliance of Parker, who has been in the busiAutomotive Service Providers of NJ. ness for 30 years, said the Consent De• Call us for competitive quotes. cree mandates that insurance • Member only dividend & discount programs. companies are supposed to be in the business of insurance, “not telling us • The Amato Agency is a full service agency how to repair cars, not writing estirepresenting most major insurance companies mates, not telling people where to get for all your insurance needs. glass put in their car. We’re the only Our goal is to reduce your insurance costs, without business in the world that has to try to sacrificing the coverage you need. figure out how to make a profit when we can’t even set our own rates.”

We will review your current program, check for Eaves originally filed the lawsuit adequacy and provide competitive alternatives. in April on behalf of more than two dozen body shops that claimed 16 inwww.amatoagency.com surance companies manipulated labor rates and other charges and weren’t compensated for their work.

The Mississippi lawyer said the lawsuit is largely based on antitrust isCall Us Today at: sues that surface when insurance companies get involved with body shops by telling them what labor rate they to see how can charge, what percentages they’re much $ we not going to pay for, and what parts can save you! they have to put on a car. In the 1970’s, Agency President Agency Manager & VP 4900 State Route 33 #103 Joseph Amato Sr. Joseph Amato Jr. the labor rate was $16 and the meNeptune, NJ 07753 chanical rate was $15. Currently, Eaves said the body shop rate across Your Guarantee of Protection and Exceptional Service for Over 40 Years. the nation is usually half of the metitrust Consent Order was signed by these companies on October 23, 1963, requiring that insurers must refrain from “fixing, establishing, maintaining or otherwise controlling the prices to be paid for the appraisal of damage, or to be charged by independent or dealer franchised automotive repair shops for the repair of damage to automotive vehicles or for replacement parts or labor

38 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

800-763-6574

Social Media for Shops Chicago Body Shop’s Anti-Texting Campaign Catches Fire with Ed Attanasio

Admittedly, the owner of a wellknown 80-year-old body shop in Chicago was guilty of texting in his own vehicle himself for several years until he saw more than a few damaged cars in his shop caused by his customers’ lapses in attention while texting. Rather than ignore what is now an national epidemic that causes 1.6 million accidents annually, Bob Gottfred, the owner of Erie-LaSalle Body Shop, decided to start his own antitexting campaign.

Erie-LaSalle Body Shop was founded in 1934 and over the years it has become a neighborhood institution in downtown Chicago. “We’re the longest continuously owned auto body of its kind in Chicago and Illinois,” Gottfred explained. “We now have a handful of third-generation customers coming in here and it’s great to hear their stories about when their grandfather or even great grandfather brought his car here decades before. Addition-

ally, we have expanded our service area by acquiring a 30-year body shop on the southwest side of Chicago.”

Erie-LaSalle started getting involved in an antitexting campaign after creating this fire hydrant to raise money for 51 Club, an organization that raises money for families of firemen killed in the line of duty

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

Gottfred, 64, had what he described as a “marginal interest” in cars as a kid, so his path to owning a body shop wasn’t part of his life plan, he said. “I grew up working here in the shop as a teenager and to be honest, I wasn’t crazy about it. I had no intention of taking over the shop, but when I came home around Christmas time in 1975, my stepfather told me he couldn’t do it anymore. His health wasn’t very good so he said, ‘If you’re interested -- hop in” or he was going to sell it. So, in January 1976 I started running the business full-time and then eventually bought out my stepfather in 1995.”

Today, both of Gottfred’s sons work with him at the shop and eventually the business will belong to them – but not tomorrow, Gottfred said. “Jim (36) and Jay (34) could take over right now and do a great job, because they’ve learned the business and they’re ready.

They’re right at the hand-off point now and I know it would be a seamless tran-

sition, but I’m not quite ready to retire.

I currently work on customer acquisition and foster the great relationships we have with the insurance companies and agents, so it works well right now.

Opening the new shop in a very different market has also been a challenge. I like to be the rainmaker around here and take a lot of the administrative stuff off my sons’ radar, so that they can concentrate on the most important things, such as quality and customer service.”

New proposed anti-texting laws have gained more momentum in this country, most recently led by a documentary called “From One Second to the Next,” a cautionary tale about the dangers of texting while driving. The film was funded by mobile providers AT&T, T-Mobile, Sprint and Verizon and has received major awards and accolades.

The genesis of Gottfred’s anti-texting campaign began when he decided See Anti-Texting Campaign, Page 47

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On Creative Marketing

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

Are You Marketing to Merely Survive or Are You Trying to Grow with Thomas Franklin

By now most shop owners and managers have realized that when it comes to marketing, one size does not fit all.

Franchises and multiple shop operations that account for about 15 percent of the shops in the U.S. are in a position to approach marketing from an entirely different perspective from the independent shop owner. But 72 percent of the shops are still independent, single-location shops and many of these shops market just to keep surviving. The question then becomes, what do you mean by “grow?” Growth by cloning or opening other locations is more of an operational strategy than a marketing proposition. Real growth for an independent shop is simply about getting more vehicles in the door and enjoying more profit on every job.

Franchises and MSOs can afford to advertise just to build name recognition to try to drive business to any shop in the group. But few independents can afford to spend marketing dollars solely on building name recognition. A marketing plan has to differentiate a shop from the competition and provide a strong reason to select that shop over all the others. A recent article in Inc. Magazine might suggest one way to do that. A software company originally called “37 Signals” changed it’s operating philosophy and changed its name to “Basecamp,” the name of a project management product that represented 87 percent of their sales and 90% of their recent growth.

This reminded me of a strategic move made by Colonel Harlan Sanders

when he was operating a small chain of fast food operations with about 100 items on the menu. He was having serious trouble trying to grow so he hired a consultant named David Thomas.

The first thing Thomas did was cut the menu down to a handful of items and renamed the franchise operation, “Kentucky Fried Chicken.” From there on, the growth was phenomenal. Now obviously most shops can’t eliminate any of the steps needed to restore a vehicle back to pre-accident condition, but they can always choose what they want to emphasize in their marketing. And this may be the key to convincing the buying public that this shop is the right one for them.

If you decide to try this approach to marketing, the next question is “what to emphasize?” Paint specialty shops like Maaco have already begun to capture some of the body work that independent shops rely on, but they keep paint as their central focal point.

While any shop is free to make refinishing quality their main marketing emphasis, there may be reasons to choose a different emphasis. One big advantage an independent shop has over franchises and MSOs is the very fact of their uniqueness. While these other shops may have a cookie-cutter sameness look, the independent shop owner can individuate any way he or she chooses. I’ve seen a number of shops that emphasize the family aspect of their business. Photos of several generations of owners adorn the walls, the website and any ads. The

Car-O-Liner Receives Award for New Software, Vision 2

During the recent Automechanika 2014 show in Germany, Car-O-Liner received the Automechanika Innovation Award for their new measuring software, Vision2.

During the five-day show new, innovative products designed to speed up the collision repair process and increase workshop profits were presented.

“We are very proud to receive this prestigious award honoring our leadership in state-of-the-art measuring software for the vehicle collision repair market,” said Jonas Gunnarsson, VP and Business Unit

Manager. “I would like to thank our employees for their dedication to the pursuit of quality and excellence at Car-O-Liner.”

New products demonstrated were the PointX Diagnostic Measuring Tool, CTR7, the new semi-automatic midrange spot welder and improvements and accessories for their Speed alignment system. Other products shown were the Car-O-Tronic measuring system driven by Vision2 software, CarO-Liner SMART Repair, Aluminum Repair Solutions, EcDesign Workshop Planning, Workshop Solutions and Training.

40 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

emphasis, of course, is “we care more because for us it’s personal.”

Another key factor in marketing emphasis choice is shop location. A shop in Silicon Valley or other hightech region may thrive best with an emphasis on the technical aspects of collision repair. A contemporary focus on hybrids and exotic metal repair specialties could communicate well in an area like this. In an entirely different direction, I ran across a shop in horse country that emphasized a specialty in working on horse trailers and larger transport vehicles. In an age like ours where big box stores have become the norm, a lot of people choose to look for vendors who understand their particular niche in life.

Choosing which of these to focus on brings us back to the question, do you want to market to just survive, or do you want to really grow?

Whatever you decide to emphasize in your marketing, to make it a

growth proposition calls for an all out effort. For example, a shop located in an area where campers and large SUVs are commonplace might choose to emphasize oversize frame machines and larger spray booths able to accommodate them. To make this a growth move, the shop would have to display these capabilities more prominently with colorful photos and stories of exceptional jobs on the website and literature. But they would have to go beyond this to go out and be involved in trade shows, vehicle shows, club presentations and more. Choosing an emphasis that encompasses a lot of people opens up an entire horizon of opportunities to get out and connect with prospective customers. Not every shop owner is comfortable with this kind of glad-handing, but if the real growth is out there to be gotten, it’s worth while hiring someone with the skill to go out and get it.

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Northeast Associations 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.

SafeCars Hosts Meetings Around the Country to Discuss Insurer Interference and National Lawsuits Though Halloween is just around the corner, witches, ghosts and vampires aren’t the scariest things on the minds of collision repair professionals across the nation this October; what these experts find terrifying is the amount of undue influence the insurance industry, a third-party entity, exerts on their repair practices and their businesses as a whole. Given the number of lawsuits that have been filed against insurers in 2014 alone, this isn’t anything new, but the collaboration of a group of industry professionals in order to combat this issue has led to the creation of SafeCars, an organization dedicated to the premise that “every vehicle owner deserves a safe and complete repair.”

As such, SafeCars has organized a series of meetings across the country to engage other collision repair professionals in the discussion to determine the best way to combat insurer interference in their industry. Ron Perretta, owner of Professionals Auto Body in Altoona, PA, and one of SafeCars’ organizers, took time to explain their goals and what they have next on the agenda. “The purpose of these meetings is to discuss the issue of insurer interference in general, but it is also about bringing shops together to answer any questions they have on the current litigation.”

SafeCars hopes to explain the differences between several national lawsuits that are currently pending. The first is a class action lawsuit. The second, the complaint Attorney John Eaves Jr filed against multiple insurers on behalf of 21 shops in January 2014, is the pending MDL litigation which Perretta hopes shops will be inspired to participate in. Perretta and other members of SafeCars believe that the collision repair industry has been badly suppressed over the years. Some of the issues they hope to address are static labor rates, the improper use of procedure pages in estimating systems, the prevalence of insurer steering, and the overall influence of the insurance industry in collision repair businesses across the country.

On September 20, SafeCars hosted a meeting at the Holiday Inn in Fort Washington, PA, and Perretta says, “the meeting went extremely well. At this

point, PA has more people involved with this litigation than any other state.”

SafeCArs also held a meeting in San Diego, CA on October 11, and they have scheduled a meeting for October 18 at the DoubleTree Hotel in Linthicum Heights, MD to run from noon until 4PM. Speakers for the MD meeting include Perretta, Attorney John Eaves Jr and Tony Passwater of the Indiana Auto Body Association.

These are only a few of the meetings that SafeCars intends to hold around the U.S. as they travel “up the East Coast and down the West Coast to inform industry professionals of these issues and collaborate to find a solution,” Perretta states, adding “these efforts are way past due.”

These free meetings are open to collision repairers and OEM industry vendors. Pre-registration is required, and attendees must provide a business card and photo ID to verify their identify as SafeCars has prohibited insurers from attending these meetings in order to encourage honest dialogue amongst collision repairers and to prevent retaliation against attendees.

Explaining why this level of security is necessary, Perretta shares, “I received a phone call from a woman who runs a shop and wants to attend our MD meeting, but she asked if any insurance people will be there because she’s worried they’ll find out she was there getting information. It’s sad when collision repair professionals are so scared that you can’t go where you want to go, be with the people you want to be with, and talk about the things you want to talk about… The last time people acted like this was before Lincoln freed the slaves. This is America, not the Mafia, yet it’s almost like the insurance industry is the Mafia offering their protection to shops but only if we do what they say.

We all rely on insurers for business, but if we continue to be scared, our businesses will just get worse. It’s ridiculous for our industry to be at this point, but it’s exactly where the insurers want us.”

Ironically enough, Perretta suggests it was “actually a good thing when State Farm tried to jam PartsTrader down people’s throats. It was

42 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

the straw that nearly broke the camel’s back, and it got a lot of shops up in arms, so State Farm kind of did us a favor by introducing PartsTrader.”

SafeCars has also released a video on YouTube, featuring Perretta, to address the “pressing industry issues dramatically affecting you, your technicians, your business, and the safety of your customers.” He explains how both the class action and MDL lawsuits will have a positive effect on the industry and how business is done in the near future. Claiming that collision repair professionals across the country are faced with the same issues, Perretta lists these concerns as follows: suppression of labor rates, steering, manipulation of databases, not using procedure pages as designed, refusals to pay for required procedures, refusals to follow manufacturer guidelines, pressure from insurers to cut corners and use inferior parts that could jeopardize consumers’

safety, intervention into collision repair businesses, interference with agreements shops have with their customers and their vendors, and insurers’ efforts to use intimidation to force shops to comply with their demands lest they be blackballed and targeted.

In the imminent future, SafeCars plans to host webinars and teleconferences to explain the benefits to a wider audience of collision repairers, but in the meantime, Perretta encourages anyone who is interested to contact him so he can explain how you can help in more detail. In closing, Perretta pleads, “Please don’t sit on the sidelines and do nothing! Help us take back our industry so we’re able to fix vehicles properly and safely for our customers.”

Perretta can be reached on his cell phone at 814-931-7669 or via email at ronperretta@aol.com. For more information on SafeCars, visit: www.safecars.us.

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need to take their businesses back and they need to run their own businesses.”

When Autobody News went to press this month, an additional 25 states were in the process of filing lawsuits to meet an Oct. 31 deadline before returning to court in November.

Continued from Page 38

Congress Support

select which shop will do the work,” he said.

Parker Auto Body was part of State Farm’s Select Service DRP until earlier this year.

Since the business owner left the program in April, he said they have steered a substantial amount of business away from him. “Just in short pays alone I have over $150,000 worth of claims they won’t pay,” he said. “Operations (l to r) Tony Passwater, Executive Director of the Indiana Authat we actually do the vehi- tobody Association; John Arthur Eaves, the lead attorney for cles to make the vehicles safe the case; and Karen and Joe Enneking from Enneking Body Shop in Indiana, during their trip to Washington D.C. that they won’t pay us to do.

“These shops need to stand up for “What we want to achieve is number what’s right and quit letting the insurone, that the safety and the quality of ance industry run their business for repairs for the American public is rethem,” said Parker. “They are just terstored,” said Eaves. “The industry will rified that the insurance companies are never be the same after this.” going to steer the work away.”

When contacted by Autobody Parker acknowledges their conNews, Allstate Insurance Company cerns but said, “We’re just as busy now and Progressive both said that due to as we were because we’re educating company policy, they do not comment consumers.” He has found it beneficial on pending litigation. to explain to consumers what the inStay tuned to Autobody News for surance companies are doing. “They more developments.

Nationwide Ray Gunder Labor Rate Surveys Announced

“Any kingdom divided against itself is laid waste; and any city or house divided against itself will not stand.”

In this Biblical truth lies the power behind Ray Gunder’s passionate drive—to unite the collision repair shops of America, according to National AutoBody Research.

In the past, the collision industry has been fragmented and divided, making it vulnerable to the suppression of labor rates. The Nationwide Gunder Surveys will serve to unite shops as one national body to reveal the toll that the stagnation and suppression of labor and material rates has taken on auto body shops across America.

The surveys coupled with National AutoBody Research’s (NABR) Variable Rate System provide collision repairers an opportunity to reverse the past trends of seriously deficient levels of labor and material rates. As a result, NABR has contracted with FL body shop owner Gunder to conduct a series of nationwide real-time labor and material rate surveys beginning Oct. 2014. The surveys will originate in the states of Florida and Georgia and shortly thereafter extend to every state in America.

’

SEMA Line-up for Valspar Automotive & House of Kolor

The Valspar Automotive and House of Kolor teams are geared up for SEMA.The displays will include celebrities, demonstrations and the latest in automotive coating technology.

Celebrities will be featured in the House of Kolor/Valspar Automotive booth #23513 in Central Hall. Appearances include Richard Rawlings, Aaron Kaufman and KC Mathieu from Gas Monkey Garage, Gear Boxxx from Skin Wars, Craig Fraser from Air Syndicate/Kal Koncepts, Mike Lavallee from Killer Paint and demonstrations from other popular custom painters.

Also featured will be the House of Kolor wall that features the colors and effects of the new Shimrin2 series. There will be experts on hand to demonstrate the mixing and versatility of this product line.

Valspar Automotive will have a satellite booth in the PBES section, North Hall #11066. This booth will highlight the capabilities of the new DeBeer Air Dry Clear Coat along with the refinish systems of DeBeer and Valspar Refinish.

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Pull-A-Part Recognized for Multiple Environmental Achievements in TN Pull-A-Part, the award-winning family business serving the do-it-yourself, used auto parts market, earned four 2014 environmental awards from the Tennessee Chamber of Commerce & Industry. Based in Atlanta, Georgia, Pull-A-Part provides affordable used auto parts to do-it-yourself consumers, while also providing high quality scrap metal, fluids and plastics for recycling.

Pull-A-Part received the following awards on Oct. 2: the 2014 Award for Water Quality; the 2014 Award for Air Quality; a Certificate of Recognition in Solid and Hazardous Waste Management; and a Certificate of Recognition for Environmental Excellence. These awards recognize businesses that have demonstrated outstanding achievement toward environmental protection and enhancement as well as proactive and innovative energy projects.

Pull-A-Part was acknowledged for preventing water and air pollution, reducing waste sent to landfills, conserving resources, and overall environmental excellence at its locations in Knoxville, Memphis and Nashville. The company earned its first Tennessee environmental award from the Tennessee Chamber of Commerce & Industry in 2006.

By developing a unique operating system based on customer service and

Caliber Acquires AutoPride

Caliber Collision Centers announced their expansion in Florida with the acquisition of AutoPride Collision Repair Centers on Sept. 19.

AutoPride Collision has been an industry leader for more than 15 years in FL and has six locations in Southwestern FL. Steve Grimshaw, Caliber Collision CEO announced, “AutoPride has consistently delivered unparalleled customer satisfaction and industry-leading operational consistency in Florida for many years. We are very excited to add these new members to the Caliber family.”

“Our teammates have delivered high quality service while giving back to the people and communities they’ve served. We are pleased that Caliber Collision will offer our associates a bright future, with continued involvement in our local communities,” said Joseph M. Formica, Jr., President of AutoPride Collision.

Wth the addition of the six centers, Caliber will now operate 10 locations in FL. “Our acquisition of AutoPride Collision increases Caliber’s network to 197 locations as we continue to grow into the collision repair provider of choice throughout the nine states that we serve,” said Mark Sanders, Caliber Collision Centers’ President and COO.

environmental responsibility, Pull-APart has transformed what was once thought of as the junkyard into a sustainable recycling business. Since its founding in 1997, the company has made an exceptional commitment to resource conservation, waste reduction and pollution prevention, earning acclaim for outstanding corporate and environmental citizenship from a number of federal, state and local organizations.

“The management of end-of-life vehicles in Tennessee directly affects air quality, water purity and the volume of waste in state landfills, and Pull-A-Part, at its three Tennessee locations, prevents water pollution, reduces waste sent to landfills and conserves resources,” said Amy G. Martin, Associate Vice President, Environment & Energy Tennessee Chamber of Commerce & Industry Tennessee Manufacturers Association. “PullA-Part sets the standard for handling and recycling end-of-life vehicles because of its intentional commitment to resource conservation, waste reduction and pollution prevention.”

Automobiles are the leading recycled product in the United States, and Pull-A-Part developed an innovative reclamation and recycling process that reduces the amount of waste from each end-of-life car by 21 percent when

SE Tops List of States With Most Energy Efficient Cars

compared to typical shredded vehicles.

In addition, since the beginning of its operations in Tennessee, the company has recovered more than 40,000 mercury switches from old cars in Tennessee and delivered them for recycling. This figure represents 54 percent of all mercury switches recovered in the state. Each switch, if not recycled, has the potential to contaminate 132,000 gallons of water above the U.S. EPA drinking water standard. Pull-A-Part’s mercury switch recovery in Tennessee, alone, has prevented the potential contamination of more than 5.5 billion gallons of the state’s water equivalent to a 170 acre lake, 100 feet deep. As part of its process, Pull-A-Part also saved approximately 200,000 tons of CO2 equivalent in Tennessee.

“Pull-A-Part traces its roots to a business begun 106 years ago, when our family member, Morris Cohen, began buying used appliances and scrap, cleaning them up and selling them or their components for a modest profit.

Even then, our business was based on the value of reclamation,” said said Ross Kogon, President and CEO of the company. “Pull-A-Part is proving that in the 21st century, environmental stewardship, customer service and financial sustainability are equal components of a successful business.”

According to a new study from personal finance website WalletHub.com, Florida ranks as the most energy efficient state when it comes to cars.

The study, conducted in light of National Energy Awareness Month, compiled data from the U.S. Census Bureau, the National Climatic Data Center, the Energy Information Administration and the Federal Highway Administration to determine the “carrelated energy efficiency for each of 48 states,” according to reports by Matt Mauney, orlandosentinel.com.

Alaska, Hawaii, and the District of Columbia were excluded due to a limited amount of data. According to Mauney, the rankings were determined by comparing the annual vehicle miles driven in each state with the amount of gasoline (in gallons) consumed.

Southeastern states lead the U.S. in this category, with Florida in the number one spot, followed by North Carolina and Alabama. However, in other energy efficiency departments, Florida doesn’t do so hot. The Sunshine State is ranked 17th for overall energy efficiency, 37th for home energy efficiency, and 27 out of 48 for least energy expensive states.

Brevard, FL Dealerships Renovate and Expand

Brevard County, FL residents will be seeing new and improved car dealerships popping up around every corner within the next few weeks to months.

Locals no longer have to travel outside their county to find a Subaru dealership because of the new Subaru of Melbourne in West Melbourne that opened Oct. 18.

Kelly Ford, Rosner Automotive Group and the Boniface Hiers Automotive Group in South Brevard are all making upgrades and additions.

These grand openings and renovations at the end of the year are just in time for 2015 arrivals and 2014 sales.

On October 1, Indian Motorcycle of Melbourne opened in a former showroom on the Rosner Chevrolet property. New and old Indian motorcycle models as well as pre-owned cycles from other manufacturers will be sold. The grand opening is planned for November.

In North Brevard, the Pat Fischer Nissan dealership in Titusville just started a long-term renovation project that will involve an overhaul of both its used-car facility and its new-car facility, according to reports by Wayne T. Price and llana Kowarski, floridatoday.com.

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Bar’s Leaks Debuts All-inOne Stop Leak at AAPEX

Bar’s Leaks will debut its One Seal™ Stop Leak at AAPEX providing attendees with an opportunity to check out the first additive specifically designed to stop engine, transmission and power steering fluid leaks. One Seal Stop Leak will be shown alongside the full line of Bar’s Leaks and Rislone® chemical tools in the Bar’s Products booth (#3616) at the event, held Nov. 4-6 at the Sands Expo Center in Las Vegas.

“We’ve been busy this summer developing One Seal Stop Leak and are excited to introduce it at AAPEX,” says Clay Parks, Vice President of Development for Bar’s Leaks. “One Seal Stop Leak offers maximum convenience, since one bottle can fix three different problems. At AAPEX, attendees can learn how it and other Bar’s Leaks and Rislone products can help their customers in the coming year.”

One Seal Stop Leak’s formula is compatible with all engine, transmission and power steering fluids, and works in gasoline, diesel and turbo engines. Bar’s Leaks will provide a refund by mail for any customer not satisfied.

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AudaExplore’s Annual Total Loss Summit Held in Boston, MA The focus – improving the customer experience.

Other takeaways focused on how the customer experience is impacted by: ● Digital empowerment ● Salvage trends ● New valuation and identification solutions ● Proposed regulations ● Data and analytics That was the main takeaway from insurance executives at AudaExplore’s annual Total Loss Summit on September 24 in Boston, MA. That focus is now enhanced by rapidly developing technology, a prime topic of discussion at the conference presented by the US business unit of Solera Holdings Inc. (NYSE:SLH), a leading data-driven solution provider to insurance carriers, repairers, dealerships, fleet owners and suppliers.

For example, AudaExplore unveiled its Driver Experience Platform solution focused on changing the way consumers are digitally empowered throughout the total loss process. The new total loss offering makes it easier for insurance carriers to share critical claim updates and details on vehicle inspections and market valuations.

Quest Donates $280,000 in Paint & Abrasives to CREF Quest Automotive Products (QAP) donated $280,000 in paint and abrasives to high school and post-secondary collision school programs across the country through the Collision Repair Education Foundation.

The products donated by QAP will allow students the opportunity to practice their collision repair and refinishing skills. QAP is committed to bringing awareness of the shortage of technicians within the collision industry and acknowledge that many collision school programs have budgets that are shrinking each year.

“QAP strongly believes in supporting the future professionals within our industry and ensuring they obtain the education that they deserve in order to be successful in the automotive profession,” said David Brunori, President of Quest Automotive Products.

“QAP has recently been involved with supporting the Collision Repair Education Foundation through donating product and raising money with its first Artists 4 Education auction, held in the Matrix Automotive Finishes booth during SEMA last year, which raised $25,000 for the Education Foundation. We are proud to be working to-

gether with them again in 2014 with the second annual auction at SEMA this year (booth 10669).”

Collision Repair Education Foundation Director of Development Brandon Eckenrode noted, “This product donation from QAP will have a significant impact on the collision school programs by providing instructors with the needed material in order to provide a quality technical education for students.

We look forward to working together with QAP to raise additional funds through the second annual Artists 4 Education auction at SEMA this year. I would also invite collision industry businesses to follow QAP’s lead in providing both product and monetary donations to the Education Foundation so that we can work towards ensuring that the graduating collision students are ready for entry-level employment within the industry.”

Industry members interested in helping high school and/or college collision school programs through the Collision Repair Education Foundation should contact Brandon Eckenrode at: Brandon.Eckenrode@ed-foundation.org or 847-463-5244.

46 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

“Technology is bringing tremendous change to the total loss space.

Trends like big data, connected cars and digitally-empowered consumers represent both a threat and an opportunity for insurers,” said Tanya Elkins, Vice President of Valuation & Identification Solutions at AudaExplore. “Attendees agreed that data and technology tools are key to driving loyalty by providing transparent, actionable and timely communications. With more than 25% of total loss claims ending in the loss of the customer to another carrier, these differentiators ultimately earn the customer’s business in real time.”

Other topics discussed included salvage trends, new valuation and identification solutions, proposed regulations, data and analytics, and how together they are all impacting the customer experience. From there, attendees discussed how insurance companies can maintain customer loyalty in this new environment. Sessions included Salvage Trends, Technology and Economics, Ways to Disrupt with Customer Experience, and Current State of Total Loss.

AudaExplore also unveiled “The State of the Total Loss Customer Experience” study, which found that customers are searching for simple and convenient ways to understand and

manage the total loss claims process.

Demonstrating the importance of communication and transparency, the survey reported that two elements of the insurance claims process that consumers were not satisfied with include processes taking too long and decisions that were not properly explained.

In fact, there was a strong correlation between the satisfaction with the explanation of the valuation and claims process and overall satisfaction and the frequency of switching carriers.

Forty-one percent of the people who switched carriers after reporting a bad total loss experience said they were not given an explanation of how the number was calculated.

“While technology may change, one thing remains the same: the importance of the customer experience,” explained Adam Vasquez, Senior Vice President, Marketing, AudaExplore.

“Customers who had access to open communication and a transparent valuation system reported being more satisfied throughout the total loss process.

In order to thrive in this changing landscape, carriers must continually improve their processes by investing in new technologies that leverage mobile and big data to meet the evolving needs of their customers.”

in the Windy City.

As part of his company’s ongoing Anti-Texting Campaign philanthropy, Gottfred decided to participate in the project. “We purchased to participate in the Great Chicago Fire a five-foot fire hydrant made out of Hydrants Project, a public art exhibition fiberglass for the project to decorate,” that celebrates the heroism of Chicago’s Gottfred explained. “We painted the firefighters. This citywide public art inwords ‘Texting & Driving, It Can Wait’ stallation features oversized replicas of on the fire hydrant and then decided to Chicago’s iconic standard fire hydrants, take the whole thing one step further. designed, painted, decorated and/or We had purchased a little Smart Car a dressed by local artists, architects, and while back and we have our logo on the even fashion and interior designers. side of it. We use it to shuttle customers These colorful sculptures are placed around or pick up parts and we love it. throughout the city in tribute to the We thought maybe we can use the work and heroism of Chicago’s beloved Smart Car and the hydrant together to firefighters. At the conclusion of each get our anti-texting message out there. year’s exhibition, the hydrants are gathWe disassembled the front end of the ered for a final exhibition before being Smart Car and parked it out front of our shop and made it appear as though the Smart Car had just bashed into the fire hydrant.

We get 40,000 people driving by our shop every day and so pretty quickly everyone was talking about it.”

Then last October, Gottfred Erie-LaSalle Body Shop was founded in 1934 and over the decided to use Halloween as years its iconic neon sign has become a Chicago landmark an opportunity to take his antiauctioned, with net proceeds benefiting texting message to another level, he charities that support the families of fire said. “We put a dummy in the front victims and other fire safety programs seat of the Smart Car and deployed an Continued from Page 39

old airbag we had sitting around and strapped it to the steering wheel. Later, I went out there and the local police and fire department were out in front of the shop. Someone had reported a

Bob Gottfred (center) has been running ErieLaSalle Body Shop since 1975 and soon his sons Jim (left) and Jay (right) will be taking over the reins

car accident with serious injuries, and after we explained what was going on, we all laughed about it and they took a few photos. We left it there until the end of November and then the hydrant got auctioned off, raising $500 for the 51 Club. We bought it originally for

$1,500 and that money went to Club 51 too, so we donated $2,000 total, which was nice.”

Once Gottfred got involved in his anti-texting campaign, he stopped texting altogether. “When people use their cell phones while driving, the bottom line is that they’re distracted,” he said.

“I was doing it too, because you get a text message and your first reaction is to respond to it. But in the end it can really wait. We get damaged cars in here all the time and the customers will never admit that they were texting when it occurred, but I know many of these accidents are the result of texting.”

Gottfred teaches CE (Continuing Education) classes to insurance agents and now he has created a class dealing with the topic of texting. “We discuss how to insure teenage drivers and what can happen when they text,” he said. “I show some gruesome videos to get their attention and to raise their consciousness about texting.”

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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 47

Honda and SolarCity Partnership Will Create $50 Million Fund for Solar Projects

At the SXSW Eco conference in Austin, TX, SolarCity® and Honda renewed their partnership with a new fund expected to finance $50 million in solar projects. The new commitment will make solar power more affordable and available to Honda and Acura customers and dealerships in the U.S. The companies have completed or initiated a range of solar projects for homeowners, dealerships and corporate facilities that total more than 12.5 MW of solar generation capacity. The two companies have already brought enough solar capacity online to offset more than 400 million pounds of CO2 over a 30-year lifecycle. The $50 million fund is a follow-up to a $65 million fund the companies created in 2013.

The partnership, which is aimed at addressing air pollution and global climate change by reducing CO2 emissions and particulate emissions from home, business and transportation energy use, covers the cost of solar equipment and installation and makes it possible for many homeowners to pay less for solar electricity than they pay for electricity from utilities, with insurance, repairs and monitoring service included.

Envisioning a future in which personal mobility products will be pow-

ered in large part by renewable energy, the two companies have begun implementing co-marketing programs that specifically encourage owners of either solar powered homes or plug-in electric vehicles to adopt the complementary product. The companies have also collaborated on advanced projects that demonstrate the full potential of distributed renewables combined with plug-in electric vehicles, including Honda Smart Home US. SolarCity (SCTY) installed the high-efficiency and cost-effective solar system used in this project.

SolarCity has developed a proprietary system that has greatly simplified the process by which homeowners can go solar. From an initial phone call or Web consultation, SolarCity can quickly assess whether a homeowner is a good candidate for solar, and can design a custom solar system to meet a customer’s specific energy needs.

Honda and Acura customers and dealers interested in solar can find more information at: www.hondasolarcity.com.

“The first phase of this partnership has proven that Honda drivers have a high affinity for solar power, while owners of solar-powered homes have a high affinity for Honda products,” said

Steven Center, Vice President of the Environmental Business Development Office of American Honda Motor Co., Inc. “As we look toward a future in which renewable energy will be an increasingly pervasive fuel source for personal mobility products, we are excited about capitalizing on the technological, environmental and market opportunities available through partnerships of this nature.”

“Our partnership with Honda is creating local jobs and helping to address air pollution, water pollution and climate change,” said SolarCity CEO Lyndon Rive. “Honda’s commitment is making a difference for the economy and the environment.”

Based on its vision of “Blue Skies for our Children,” Honda is working to advance technologies that address society’s environmental and energy concerns through a diverse lineup of products and technologies, including more fuel-efficient gasoline engines, natural gas, hybrids, plug-in hybrids, battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs).

Honda is targeting a 30-percent reduction in CO2 emissions from its U.S. automobile product lineup by 2020, compared to 2000 levels. In pur-

Aleris to Add Aluminum Automotive Body Sheet Capabilities in North America Aleris announced on Sept. 24 that it will invest $350 million to upgrade capabilities at its aluminum rolling mill in Lewisport, Kentucky. The investment positions Aleris to meet anticipated significant growth in North American automotive demand as the industry pursues broader aluminum use for the production of lighter, more fuel-efficient vehicles.

Aleris is currently a leading supplier to the European premium auto industry, which has led the transition to aluminum driven by tighter emissions standards.

“We have partnered with customers in the premium automotive segment from our Duffel, Belgium facility for years to develop and produce some of the most technically advanced lightweight aluminum solutions available today,” Steve Demetriou, Aleris Chairman and CEO said. “We are excited to bring these capabilities to our Lewisport, KY facility to serve automotive customers in North America as they shift toward significantly greater aluminum use.”

The company expects to begin construction on the project this fall, with a goal of shipping automotive body sheet material to customers by early 2017. When fully operational,

the new facility will allow for the production of 480 million pounds of aluminum auto body sheet annually.

The company’s investment will include the addition of heat treatment and finishing capabilities, including a new wide cold mill, two continuous annealing lines and an automotive innovation center.

“The key to our success in Europe has been our strong partnership with customers on research and development,” Demetriou said. “We will take a similar approach with our customers in North America, ensuring they have the aluminum innovation that meets their specific needs.”

A recent study of North American light vehicle aluminum content released by Ducker Worldwide, stated that the use of aluminum sheet for vehicle bodies is expected to increase to 4 billion pounds by 2025, from 200 million pounds in 2012.

The properties of aluminum, which include its formability, recyclability, and high strength-to-weight ratio, make it an excellent solution for automotive manufacturers as they work to produce lighter vehicles that will meet more stringent fuel emissions in the United States.

Aleris has served the automotive

48 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

industry from its facility in Duffel for many years. Including Lewisport, the company has 11 rolled aluminum products facilities in North America, the majority of which serve building and construction, truck-trailer, and metal distribution customers. Upon completion of the facility’s upgrade, Lewisport will be the company’s first site in North America that is equipped with aluminum auto body sheet finishing capabilities.

Aleris is a privately held, global leader in aluminum rolled products and extrusions, aluminum recycling and specification alloy production.

The company serves a number of diverse industries including aerospace, automotive, defense, building and construction, industrial, and commercial transportation. Headquartered in Cleveland, Ohio, Aleris operates more than 40 production facilities in North America, Europe and Asia. For more information, visit www.aleris.com.

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suit of its vision for a zero-carbon future, the company is advancing electromotive technologies in many forms, and will introduce an advanced new fuel cell electric car in 2015.

In keeping with its commitment to produce vehicles with the lowest CO2 emissions at plants with the smallest environmental footprint, the company is broadly addressing emissions, energy, water use and waste in all phases of its products life cycles.

In the manufacturing realm, this includes a 95 percent reduction in waste sent to landfills in North America.

Honda is working to extend its “green factory” and “green purchasing” initiatives to its more than 650 parts suppliers in North America and is also pursuing more environmentally responsible business practices among its U.S. dealers through the company’s “Green Dealer” program.

Honda is also demonstrating its vision for zero-carbon mobility and living with the creation of the Honda Smart Home US, in Davis, California, which was opened in early 2014 and is capable of producing more energy on-site from renewable sources than it consumes annually, including enough energy to power a Honda Fit EV for daily commuting.

Initiative to Prevent Exposure to Hazardous Chemicals

The U.S. Department of Labor’s Occupational Safety and Health Administration announced it is launching a national dialogue with stakeholders on ways to prevent work-related illness caused by exposure to hazardous substances. The first stage of this dialogue is a request for information on the management of hazardous chemical exposures in the workplace and strategies for updating permissible exposure limits.

OSHA’s PELs, which are regulatory limits on the amount or concentration of a substance in the air, are intended to protect workers against the adverse health effects of exposure to hazardous substances.

Ninety-five percent of OSHA’s current PELs, which cover fewer than 500 chemicals, have not been updated since their adoption in 1971.

The agency’s current PELs cover only a small fraction of the tens of thousands of chemicals used in commerce, many of which are suspected of being harmful. Substantial resources are required to issue new exposure limits or update existing workplace exposure limits, as courts have required complex analyses for each proposed PEL.

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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 49

AkzoNobel Hosts Sustainability Media Briefing in Washington D.C.

Collison repair industry editors gathered for an exclusive media briefing hosted by AkzoNobel Automotive & Aerospace Coatings (A&AC) North America. The event was held in conjunction with the company’s 2014 summer Acoat Selected® North American Performance Group meeting, September 17-19, at the Ritz-Carlton Hotel Pentagon City.

The primary theme of the briefing centered on the need for the collision repair industry to no longer view sustainability as an option, but as a critical imperative to “future proofing” the industry’s long-term growth. Several key insights were presented for how the industry can achieve sustainability through a “triple bottom line” approach that results in greater efficiency, lower negative environmental impact, and cooperative social engagement in the work place.

Guest speakers at the briefing included: Dr. Manish Mehta, Director of · Strategic Projects & Sustainability at The National Center for Manufacturing Science, who offered a 360° view of what he calls “co-opetition.” Dr. Mehta provided meaningful recommendations for how the collision repair industry can leverage what other

industries are doing to achieve sustainability. · Mr. Rocco Neglia, Vice President of Claims at Economical Insurance Group, shared his company’s journey to building sustainability into their corporate strategy, and how the implementation of effective, function-specific processes into the work environment has improved the performance, professionalism and “team vision” of their body shop network in Canada.

A featured highlight of the briefing was the debut of AkzoNobel’s new online sustainability assessment tool specifically developed for helping body shop owners determine their level of sustainability, benchmark current performance against other collision repairers, and provide a path for boosting their competiveness in the marketplace. A&AC’s Commercial Services Leader, Barry Rinehart, demonstrated various features of the assessment tool and creative ways for how industry stakeholders can utilize this innovative resource.

“The online sustainability assessment tool is the result of a unique collaborative effort with Economical Insurance Group of Canada, and is a great example of how powerful col-

Lamborghini and IMSA Extend Partnership

Automobili Lamborghini and the International Motor Sports Association (IMSA) have extended their partnership for the next four years, with the Lamborghini Blancpain Super Trofeo North America championship being contested under IMSA sanction through the 2018 season.

As part of the extended partnership, the 2015 Lamborghini Blancpain Super Trofeo North America event calendar was unveiled. The schedule features 10 rounds at five venues at some of the most iconic, exciting circuits in the United States. Races will take place in conjunction with IMSA’s top sports car series, the most prestigious in the U.S. Lamborghini Blancpain Super Trofeo North America competitors also will race in the World Final, which features top drivers and teams from the three global Blancpain Super Trofeo Series –Europe, Asia and North America. The location of the 2015 World Final will be announced in November.

Each Lamborghini Blancpain Super Trofeo North America event will feature two rounds. The season will open May 1–3 at Mazda Raceway Laguna Seca in Monterey, California. The next round will take place June 26–28 at Watkins Glen Interna-

tional in Watkins Glen, New York, followed by Aug. 21–23 at Virginia International Raceway in Danville, Virginia.

The season will continue Sept.

17–19 with the series’ first visit to Circuit of the Americas in Austin, Texas, with the next event Oct. 1–3 during Petit Le Mans week at Road Atlanta in Braselton, Georgia.

The Lamborghini Blancpain Super Trofeo North America championship debuted in 2013, with drivers competing in the Lamborghini Gallardo LP 570-4 Super Trofeo car, powered by a 570-horsepower V10 engine and featuring permanent fourwheel drive.

The series ran in conjunction with IMSA events starting with its second season in 2014 and enjoyed tremendous growth, with grid sizes increasing 50 percent through the season.

Lamborghini also plans to expand its racing program in North America by participating in GT Daytona (GTD) class sports car competition with the Huracán GT3 starting in 2016.

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50 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

lective thinking and actions can be in bringing tangible solutions to collision repair,” said Rinehart. “We are very excited at the initial test feedback we’ve received about the online assessment tool and look forward to seeing how it can be leveraged across the industry in the U.S.” The briefing concluded with a rallying call by event facilitator, AkzoNobel North America Communications Manager, Bill Orr, for collision repair professionals to pro-actively join forces in advancing sustainable principles and practices that both ensure a thriving industry long-term, and provide real-time solutions to the industry’s most critical issues today.

In closing comments, Orr stated, “We were extremely pleased with the depth of content presented by our guest speakers and the enthusiastic participation of industry media. After leading the sustainability ‘charge’ for more than a decade through numerous sustainability-focused programs, AkzoNobel is clear on the fact that it will take a coalition of commited industry leaders to secure the future of collision repair.”

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Ferrari Recall of 458 Italia and Spider Models

Ferrari is recalling 3,000 458 Italia and Spider models for trunk safety issues. The new models' trunks will be able to be opened from the inside to decrease the possibility of injury. The previous cars lacked this feature, and were found in violation of federal safety mandates.

Ferrari owners will be notified by the company and will need to return their car to the local dealer for modifications.

Chrysler Recall of SUVs

Chrysler Group is recalling an estimated 184,215 SUVs because a possible short circuit in a part could disable airbags and seat belt pretensioners. The same part was responsible for a Sept. recall of more than 850,000 Ford vehicles. Chrysler said an electrical short circuit may occur in the occupant restraint control module in certain 2014 Dodge Durango and Jeep Grand Cherokee SUVs. The automaker said it is unaware of injuries or accidents related to the issue.

The recall covers 126,772 vehicles in the U.S., 8,106 in Canada, 3,722 in Mexico and 45,615 elsewhere.

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Collision Repair Instructor Inspires Students, Paves Way for SEMA Snook. “It took some prodding to find that their interests were in the custom Inspirational teachers can be hard to end of the industry. After completing the come by, but their impact lasts a lifetime. normal curriculum, the brothers would Dan Snook, Department Coordi- stay after and mix all these wild colors nator of Collision Repair Tech at Cy- and come up with unique paint designs. press College in CA, fulfilled that role That is where they excelled.” in the lives of former students CuuCuulong and Jim opened Buddha long and Jim Le. Concepts Design in 2008, but had been “After graduation, our teacher/stu- receiving attention since they started dent relationship with Dan turned into a working out of their garage in 2005. friendship, and eventually we became Their unique custom fabrication painting like family,” said Cuulong. skills have landed their finished products in Super Streetbike, Hotbikes, Baggers, Import Tuner, Super Street, Face Off, Performance Bike Japan, and Street Fighter UK magazines, a T-Mobile commercial, Hawaii 5.0, and in three music videos with artists Chris Brown, Calvin Harris and Nero.

Seventy-percent of the shop’s profit has come from motorcycle projects, but a Dan Snook poses with his newly designed Harley. recent partnership with a Photo Credit: Dan Snook & Cuulong Le luxury wheel company has The three met on Snook’s first day brought their focus back to cars.

“It’s nice to get noticed, but it’s not of teaching, which happened to be the about the money, it’s about doing what Le brothers’ first day at Cypress.

“They were typical college kids we love,” said Cuulong. “As long as we who weren’t sure what they wanted to are making enough to support ourselves do, but shared a love for cars,” said and our families, we’re happy.”

by Victoria Antonelli

Even with international notoriety, the Le brothers remain humble, crediting success to their former instructor, as well as Frederick B., renowned airbrush artist in Orange County.

“Dan is the reason we do what we do; he taught us how to paint,” said Cuulong. “He has been a major contribu-

Close-up of the intricate designs by Cuulong and Jim Le. Photo Credit: Dan Snook & Cuulong Le

tor to our success, and without him our dream wouldn’t be possible.”

That is why the Le brothers were eager to give back when Smith’s girlfriend, Michelle, came to them with an idea for his 50th birthday.

Snook thought his Harley was being detailed, when in reality, it was at Buddha Concepts Design, receiving an over 50-hour-long makeover.

“The story kept changing, and the process was taking longer than usual, but I honestly didn’t think twice about

it at the time,” said Snook.

Upon entering the birthday party, Jim introduced Snook to his now burntorange Harley, varnished with paintings of their beloved teacher, while Cuulong stood back to watch the reaction.

“He had tears in his eyes,” said Michelle.

“I was floored and deeply touched,” said Snook. “It’s not a feeling you can put into words.”

Snook and the Le Brothers will be heading to Las Vegas for the 2014 SEMA Show. This is Buddha Concepts Design’s fifth year of attendance. Their features for this November include a full-custom Lexus GS 350 for AirRex Suspension, a Lexus LS 460 for the air runner’s booth, a Lexus LS 430 for R1 Concepts and a Nissan 240sx for the VIP Modular Wheels.

“We are expecting a last minute addition before the show, but we’d prefer to not have a repeat of our first SEMA experience,” said Cuulong. “We worked 20 hour days, redesigning three cars in six weeks. I lost 35 pounds.”

Snook said he is proud of his former students and all their hard work. He stresses the importance of “success that can’t be weighed by a paycheck,” and the need for more stories, like this one, that highlight industry achievements.

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Omix-ADA to Give Away 2014 Jeep Wrangler at SEMA

graded rear tire carrier, making it not only look good but also ready to tackle any off-road excursion, according to reports by Scott Rousseau of off-road.com.

Off Road Success Center OmixADA will also host several civilian Jeeps, including pre-WWII prototypes to the modern day JK Wrangler.

The Off Road Success Center will also exhibit a custom 2015 four-door Jeep Wrangler built for SEMA Cares; a committee dedicated to supporting the education of students pursuing careers in the automotive aftermarket. The SEMA Cares Jeep is designed to raise awareness about the committee’s Anvil Blue 2014 Jeep Wrangler Unlimited Rubicharitable efforts as it tours the con. Photo Credit: www.offroad.com United States. It will be outfitForty semifinalists will be se- ted with one of Omix-ADA’s exclulected over the course of November sive Rugged Ridge restyling 4-6, and the winner will drive away packages and later auctioned as part in a brand-new, fully-equipped Anvil of SEMA Cares’ fundraising efforts Blue 2014 Jeep Wrangler Unlimited in 2015, according to Rousseau.

Rubicon on the last day.

The winning Jeep will be outfitted with Rugged Ridge’s new Summit restyling package, which includes the company’s XHD Modular Bumper, grille inserts, and an upOmix-ADA, a manufacturer of Jeep, truck and off-road accessories, announced on October 7 that it will use its Off Road Success Center (Booth #34000) at SEMA to give away a fully-loaded Jeep.

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SEMA: Sales of Auto Parts & Accessories Reach $33B C

Sales of automotive specialty-equipment products continue to climb, reaching $33 billion in 2013. The number represents a 6.7 percent increase over the previous year and marks the fourth consecutive year of growth, according to the SEMA Annual Market Study that is available at www.sema.org/2014samr.

“The Specialty Equipment Market produced the highest growth since the recent recession,” said Chris Kersting, SEMA president and CEO. “There are a number of factors that figure into this upward trend.”

The special-equipment market includes products that enhance a vehicle’s performance, styling, comfort, convenience and safety. Among the factors driving the industry’s growth are: ● Street performance products accounted for 26% of sales. The renewed focus on performance models by the OEMs has helped drive interest in this segment. New models such as the Scion FR-S, redesigns like the 2015 Mustang, and high-performance packages such as the Hellcat Challenger have inspired the industry and consumer alike to aim for increased performance. ● There was a healthy upward tick for the truck market. Sales of specialty equipment for light trucks grew 8% in 2013 to post the market’s best sales year

since 2007. New truck sales continue to climb amid anticipation for major redesigns to several flagship pickups. As the SUV/CUV sector continues to grow nine of the top 30 sellers in the US), crossover products present an opportunity to diversify and expand light-truck product offerings. ● The 2014 SEMA Show is shaping up to be the biggest yet as industry optimism continues to build. New this year is SEMA Ignited, a special consumer and media attraction on Friday night after the Show. SEMA Ignited meshes with other consumer-facing association projects, all part of a long-term plan to enhance awareness of specialty products. ● The US economy continues to show positive signs for industry growth, with gross domestic product rising and unemployment rates dropping. Forecasters are generally predicting sustained moderate growth for the US economy over the next few years. Meanwhile, car buyers have shown renewed enthusiasm, pushing new-vehicle sales upward toward pre-recession levels.

The SEMA Annual Market Report is conducted yearly to help SEMAmember companies understand the industry and make informed business decisions.

52 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

PPG Waterborne Shop Conversions Exceed 10,000

PPG Industries’ (NYSE:PPG) automotive refinish business has now converted more than 10,000 collision centers in the United States and Canada to its waterborne systems, with the majority of these conversions taking place in National Rule areas rather than in low-VOC (volatile organic compound) compliant regions.

According to Tim Jones, PPG waterborne segment manager, more than 10,000 collision centers in North America are now using PPG waterborne products, with more than 50 percent of these shops in National Rule markets. This means most PPG customers choose to use waterborne products and systems even though they are not required to do so to meet low-VOC regulations. They do so voluntarily because they want to improve their productivity, he said.

“Waterborne is not just a compliance solution anymore,” Jones said. “More than 10,000 PPG customers in the U.S. and Canada see the value in superior color matching, excellent throughput and performance, consistent color mixes and other key qualities that our waterborne products provide. PPG has a long-standing commitment to the collision repair industry to deliver high-quality and time-saving products. ENVIROBASE® High Performance and AQUABASE® Plus products are easier to blend and apply; our customers ap-

preciate this and see a real difference in their shops’ productivity.”

Jones attributed the success of PPG’s waterborne products to factors such as a highly-effective and easy CONVERT WITH CONFIDENCE® transition process and the service and support customers receive from PPG and its bestin-class distributor partners. “Collision centers are converting to PPG’s waterborne with great results,” he said. “Shops are finding the actual conversion to waterborne is simple. They’re also finding that we support them and view their productivity as a measure of our mutual success.”

Envirobase High Performance and Aquabase Plus products are now in their third generation. PPG introduced its waterborne technology to the international OEM (original equipment manufacturer) market in 1986 and brought the world's first commercialized refinish waterborne basecoat to market in 1992.

Since then, PPG has added new primers and clearcoats to the two brands and will, according to Jones, continue to expand the product lines’ offerings.

For more information about PPG and Envirobase High Performance and Aquabase Plus waterborne products, call 800-647-6050 or visit www.ppgrefinish.com.

2015 Hyundai Genesis Preview Before SEMA Debut

changes.

ARK installed a front strut reinforcement bar and front/rear stiffened sway bars along with an AirREX air suspension. Other changes include beefier Brembo front & rear brakes, ARK knuckles and control arms as well as custom lightweight forged wheels wrapped around in Nitto Tire NT05 summer tires.

The most significant upgrades can be found under the hood where the V8 5.0-liter engine has received a Rotrex supercharger, high-flow catted test pipe and downpipes.

In addition, ARK installed a performance in2015 Hyundai Genesis. Photo Credit: automobilemag.com take system, race-spec Exterior advancements to the driveshaft, GRiP exhaust and a car2015 Hyundai Genesis include an bon fiber engine cover. All these aerodynamic kit developed by Infinite changes have bumped output from Auto Design, encompassing wider the series 420 bhp (313 kW) to 550 bumpers made from carbon fiber, bhp (410 kW). beefier front & rear fenders, carbon The 2015 Hyundai Genesis fiber side skirts, rear trunk decklid, Sedan by ARK Performance will be different headlights and exterior wel- revealed on November 4 at SEMA. come lighting.

Katzkin diamond door panels and stitched seats make up the interior

ARK Performance is providing a sneak preview of their upgrade package for the 2015 Hyundai Genesis Sedan which will be revealed in full at SEMA.

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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 53

World Steel Dynamics Predicts Short Gains for Aluminum Before High-Strength Steels Take Over

World Steel Dynamics’ (WSD) report AutoBody Warfare: Aluminum Attack, based on its independent consultation with steel, aluminum and automotive experts, concluded that steel can easily deliver the weight savings required to meet federally-mandated fuel economy targets for most vehicles. The report was presented to steel executives Oct. 6 at the worldsteel Annual Conference in Moscow.

“This timely analysis demonstrates the value of advanced highstrength steel designs in meeting the needs of automakers while exposing the cost penalties of switching to aluminum,” said Lawrence W. Kavanagh, President of the Steel Market Development Institute (SMDI), a business unit of the American Iron and Steel Institute (AISI). “We are enthusiastic about the findings, which confirm our extensive research showing automakers can meet their weight reduction goals with advanced high-strength steels. The report’s conclusions, and forecast for steel, are good news for customers and consumers as they demonstrate that automakers can and will continue to depend on the performance of steel and the safety, fuel efficiency and sustainability it provides.”

Mercedes Will Train 26,000 in the Brand’s New Culture

Mercedes-Benz USA and its dealers are spending about $30 million over the next four years to train 26,000 employees and immerse them in the brand’s culture.

Later this year, the first wave of employees will go through a two-day program called the Brand Immersion Experience at the Mercedes-Benz factory in Vance, Alabama, near Tuscaloosa.

The investment includes a $6 million revamp of the visitor center at the factory for classroom training, including digital interactive displays.

“We have been driving hard for the last few years on the customer experience,” said Gareth Joyce, vice president of customer services at Mercedes-Benz USA. “It is not just about the product; it is all about the package and how you look after the customers as well.

“This is just one of the building blocks in our portfolio to drive that program forward through our dealer network.”

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Other key findings of the WSD study include:

● Advanced high-strength steels will offer more than sufficient lightweighting opportunities to automotive companies in the next decade, and from 2021-2025, automotive designers will be implementing an array of higherstrength steels; ● Once engineers decide to redesign steel-intensive vehicles from the ground up, they will implement sizable and relatively low-cost weight savings with advanced high-strength steels, enabling continued supply of steel closures; ● Advanced high-strength steels, even if priced substantially higher than other auto sheet, are quite attractive given their weight savings relative to aluminum, and will rise to 23.7 million tonnes in 2025, a 330 percent gain displacing mild steel and alternative materials; and, ● Automakers will not widely adopt aluminum or other alternative materials during their next round of design, and the growth in aluminum sheet in cars, SUVs and light trucks will peak about 2018.

A summary of the report can be found at www.autosteel.org.

Takata Airbag Recall May Include GM Vehicles

The regional recall of millions of U.S. vehicles with potentially defective airbags made by Japan’s Takata Corp. may expand to include General Motors models, according to documents filed in Sept. with U.S. regulators.

More than 4.3 million cars produced by automakers, including Honda Motor Co., Fiat’s Chrysler Group and Toyota Motor Corp., are affected by the regional recalls. They began in June in certain high-humidity areas of the United States after the National Highway Traffic Safety Administration started investigating reports of airbag explosions in Florida and Puerto Rico.

The regional recalls initially affected nine automakers, but documents filed by Takata for a Sept. meeting with NHTSA and the affected companies listed GM for the first time as being potentially affected. The Takata documents, posted online by NHTSA, said the number of vehicles produced by the largest U.S. automaker was undetermined.

GM declined to comment.

54 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Daimler Chairman Dr. Dieter Zetsche to Deliver Keynote Address at 2015 Consumer Electronics Show

The Consumer Electronics Association (CEA)® announced on Oct. 6 that Dr. Dieter Zetsche, chairman of the board of management of Daimler AG and Head of Mercedes-Benz Cars, will deliver a 2015 International CES® keynote address focused on the latest advances in autonomous vehicle technology. Owned and produced by CEA, the 2015 CES, the global gathering place for all who thrive on the business of consumer technologies, will run January 6-9, 2015 in Las Vegas, Nevada.

Dr. Zetsche will discuss autonomous vehicle technology and its impact on society, mobility and the environment, as well as raise ideas and questions for the future. In addition to his insights on the future of Daimler Intelligence Drive, Dr. Zetsche’s 2015 CES keynote will feature the worlddebut of a new car concept. His address is slated for Monday, January 5 at 8 pm at the Chelsea Theater in the Cosmopolitan.

“With a passion for technology innovation, Dr. Zetsche has led Mercedes-Benz to a top perch in the automobile industry, constantly re-inventing technology offerings and perfecting the driver experience,” said Gary Shapiro, president and CEO of

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CEA. “Cars are becoming the ultimate mobile devices, and Mercedes-Benz’s presence at 2015 CES will definitely create synergy with other platforms and mobile technologies on the show floor.

We welcome Dr. Zetsche to the 2015 CES keynote stage and look forward to hearing his views on the future of autonomous driving.”

The automotive market remains a driving force behind the strength of the global consumer technology industry.

The growth of new vehicle sales in 2014 will propel factory-installed systems to reach $11 billion in revenue, an increase of 20 percent over the past year.

Dr. Zetsche served as a member of the Board of Management of Daimler AG since December 1998 and as Chairman of the Board of Management of Daimler AG since January 2006. He is also Head of Mercedes-Benz Cars Division. Since joining the research department of then Daimler-Benz AG in 1976, Dr. Zetsche has served the company for more than three decades.

The 2015 CES will feature more than 3,500 exhibitors unveiling the latest consumer technology products and services. For more information on the 2015 CES, visit CESweb.org.

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Toyota Produces Urban Utility Concept Vehicle

Toyota revealed the Urban Utility concept vehicle—or U2—on September 10 at a private panel discussion hosted by Make: magazine in San Francisco, CA. The car design reflects the growing need for innovation in urban areas, which was discovered through interviews with Maker Faire participants and internal Toyota market research.

The Toyota U2 concept, developed

by Toyota’s Calty Design Research in Newport Beach, CA, features a new, open architecture and purposeful materials. This vehicle sports a roof that can be rolled back, a foldable tailgate that transforms into a ramp, and a customized interior.

The concept car made its first public appearance at World Maker Faire in New York on Sept. 20 and 21.

“Toyota saw an opportunity for a new approach to an urban vehicle based on increasing re-urbanization of our cities and urban drivers’ desire for flexibility, fun and maneuverability,” said Kevin Hunter president of Calty, Toyota’s North American design studio.

“Calty keeps a number of projects concealed while exploring ideas and products. Revealing a project like the U2 gives people a window into the constant innovation that happens inside Toyota and our Calty studios and one possible

future for urban mobility.”

Bringing the concept to a Maker community event allowed Toyota to gain feedback from a key audience. “As more products are developed expressly to appeal to Makers and their deep appreciation of design esthetic combined with open architecture and practical utility, we expect to see more trusted brands like Toyota take an unconventional approach to not only product development but their marketing and launch strategies,” said Sherry Huss, VP and cofounder of Maker Faire. “Leveraging the growing Maker movement and Makers’ broad sphere of influence can impact the success of consumer brands and future products.”

The Toyota U2 concept is a flexible, functional gadget that owners can customize according to individual, onthe-go needs. The retractable utility bar can serve unique uses, such as holding a desk or grocery bag hooks. Side windows flip up for easy access from roadside.

It has a durable underbody and tool-like exterior with a customizable side panel. The box-like design at the rear emphasizes the storage capabilities.

Other highlights include roof panels that retract, rear glass that can slide into the tailgate and a tailgate that folds down.

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Mike Miller Appointed National Director of Certified Network Development for Assured Performance

Assured Performance announced the appointment of Mike Miller as National Director of Certified Network Development. Mike will be developing and managing Assured Performance’s national network of on-site business analysts, business coaches, and body shop Inspector-auditors.

Mike Miller has 27 years experience serving the insurance and collision repair industries. His career began in the insurance arena including helping to start up and manage a direct repair program. Mike then moved to the shop world becoming a shop manager. Later, he became an I-CAR instructor and eventually Regional Manager and Zone Manager.

For the past several years, Miller has been I-CAR’s National Field Support Manager developing and managing the I-CAR instructor network. Mike has been instrumental in course development, network management, and effectively training more than 450 part-time instructors and over 2,000 volunteers. Mike was also in the United States Army where he attained the rank of Captain.

Scott Biggs, CEO of Assured Performance said, “We are very proud to have Mike’s proven management

capabilities added to our team. He is exactly the kind of leader and technical expert we need to refine and improve our business development and onsite inspection capabilities strengthening our national Certified Repair network of dealer and independentlyowned body shops. He also provides a natural liaison with I-CAR, an organization with which we work closely.”

He said Miller’s proven abilities in managing large-scale networks and providing instructor training will be instrumental in helping deliver a series of business development and shop certification services to dealer and independently-owned collision repair businesses. The business development services are essential for the shops that have or want to become part of the national shop network, officially certified and recognized by a growing list of top automakers including Ford, Chrysler, Nissan, and General Motors. The business analysts and on-site inspectors are key to helping the network shops perform at the highest level of profitability and efficiency while delivering an unparalleled level of customer service.

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Iowa Pulls Plug on Tesla Test Drives

Tesla Motors Inc. cut short a testdrive event in Iowa earlier this month after state regulators said the electricvehicle maker was improperly acting as a dealer.

According to the Des Moines Register, Tesla began offering test drives in its Model S on Sept. 9 at a hotel in West Des Moines. The company canceled the third and final day of its program at the request of the Iowa Department of Transportation.

Paul Steier, director of the department’s Bureau of Investigation and Identity Protection, told the Des Moines newspaper that state law requires auto dealers to be licensed.

By offering test drives, Tesla was acting as a dealer, Steier said. Steier did not immediately return a call from Automotive News.

A Tesla spokeswoman told the Register that the company did not believe the statute applied because it was not selling cars, only providing test drives. No other test-drive events are planned in Iowa, the paper reported. Tesla does not have a store in Iowa.

Bruce Anderson, president of the Iowa Automobile Dealers Association, said he notified state regulators about the test drives after he saw

Ford Recalls 850,000 Cars for Airbag & Seat Belt Glitch

Ford Motor Co. is recalling 850,050 2013 and 2014 vehicles for an electrical flaw that could cause airbags and seat belt pretensioners to malfunction in the event of a crash, according to reports in Automotive News.

The affected vehicles include the 2013-14 Ford C-Max, Fusion, Escape and Lincoln MKZ. Ford said in a statement on Sept. 26 the restraints-control module in the vehicles could short circuit, causing the airbag warning indicator to illuminate.

This is the 12th recall of the 2013 Escape, although a spokeswoman said in August that no single Escape has been involved in all the recalls.

Flaws that other recalls on the Escape have addressed include fluid leaks that could cause an engine fire, doors that can open while the vehicle is moving and rollover airbags that may not deploy quickly enough.

Tesla promoting the event online.

Test drives are a regulated activity in Iowa, Anderson said, according to a 1970 statute that requires anyone engaged in the business of auto retailing to be licensed. The state wants to make sure a retailer is insured and bonded, he said. “It’s really a customer protection issue,” Anderson said.

Of Tesla, “I’ll take them at their word that they didn’t know” a license was needed to offer test drives,” Anderson said.

Tesla has tussled with dealers in a growing number of states over whether its factory-owned stores violate state laws on direct sales. In some states recently, including Pennsylvania and New York, compromises were reached, allowing Tesla to operate factory stores but with a cap on the number of locations allowed.

Anderson said Iowa’s statute prevents direct sales by a manufacturer with narrow exceptions for uses such as minority dealer development.

New Legislation Introduced to Simplify Loan Applications

U.S. Rep. Sam Graves (R-Mo.), chairman of the House Small Business Committee, introduced a bill to simplify the loan application process with the Small Business Administration (SBA). Under the bill, the SBA would be required to accept e-signatures and electronic records for the certification of all documents associated with the management of its financing programs.

Referencing this legislation, Graves said, “A lengthy and complicated loan application process is often a great impediment for many small businesses to secure the capital they need to get their products or services to market. The majority of the time spent during the SBA loan application process consists of lenders collecting required documentation and having to seek out the ink signatures of borrowers. The Small Business Loan Simplification Act of 2014 will employ widely used and proven esignature and records technology to reform the SBA loan process. This will likely cut the application process by an average of two to three days.”

See the full text of this bill at: http://smallbusiness.house.gov/uploaded files/small_business_loan_simplification _act_of_2014.pdf

Auto Glass Safety Council Updating Certification Exam

The Auto Glass Safety Council™’s (AGSC) Education Committee met October 7 during Auto Glass Week in Baltimore, MD to review its plan to update the exam technicians must take to become AGSC accredited. Jeff Olive, chair of the education committee, opened the meeting with a discussion about whether the association should publish the questions.

Bob Beranek of Auto Glass Consultants, who chairs the AGSC AGRSS Standards Committee and is a member of the board of directors, proposed waiting until the AGSC has developed 500 questions. The group agreed. The exam will feature 70 questions.

Members also discussed ways technicians can challenge questions they might have an issue with. Mitch Becker of Abra Auto Body & Glass, recommended adding a “challenge” option as a selection for each question.

Once a technician completes the timed exam, he would have the opportunity to explain why he challenged a certain question. The test results would be on hold until the AGSC Education Committee has a chance to address the challenge. The committee members voted in support of this proposal.

56 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Toyota Moves to Aluminum Hood for Camry in 2018

Toyota Motor Corp. is set to become the next global automaker to begin making the expensive shift from steel to aluminum for a high-volume vehicle, according to reports in Automotive News.

The U.S.-built Camry, the country’s best-selling car, is slated to get an aluminum hood in 2018, according to a source familiar with the plans.

Toyota’s first foray into aluminum closures in North America will come next year when the 2016 Lexus RX 350 crossover, which is made in Cambridge, Ontario, gets an aluminum hood and liftgate, the source said.

The aluminum sheet for the Camry hood likely will come from a joint venture between Toyota Tsusho Corp., a trading company affiliated with Toyota Motor Corp., and Kobe Steel to produce more aluminum sheet metal in the U.S. Toyota will be among the venture’s first customers, several sources confirmed. Production is expected to begin in 2017 and ramp up to full output at the beginning of 2018.

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Roush-Modified 2015 Ford Mustang To Be Revealed at SEMA

Aerodynamics will improve the new body pieces. A set of upgraded The Roush-tuned 2015 Ford Mus- Brembo brakes peek out from behind tang, featuring body, interior, han- the new Roush 20-inch wheels with dling, and powertrain upgrades, will Cooper RS3 tires. Two types of adbe making its first appearance at the justable coilover shocks are said to 2014 SEMA show. be available, according to reports by Roush 2015 Ford Mustang Jason Udy, motortrend.com. models feature a more prominent Previous iterations of the Roush grille and front fascia with splitter Mustang came in Stage 1 (cosmetic) and grille, accompanied by new hood and Stage 2 (handling) kits for V-6 and GT models, and Stage 3 (performance) kits for the GT model only. With the new 2015 Ford Mustang, Roush will offer RS for the V-6 model, RS1 for the Mustang EcoBoost model, RS2 for the GT, and an RS3 version that adds a supercharger to the GT’s 5.0-liter V-8. Supercharged versions could offer more than one power Roush-modified 2015 Ford Mustang. Photo Credit: level with as much as 674 www.horsepowerkings.com hp possible, according to vents and an available hood scoop, reports by Jason Udy, motortrend.com. moving the fog lights to the center air Roush is also expected to offer intake. The doors now feature side, many of the parts al a carte for ownand the rear sports a deck lip spoiler ers who want to modify their vehicles and a redesigned fascia. This latest after purchase. More details will be version features quad exhaust tips revealed at the SEMA show in Nopeeking out of the new rear diffuser. vember.

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Chevrolet Debuts Pickup Concept Trucks for SEMA

For the last few years, Chevrolet has used the annual State Fair of Texas in Dallas to preview its plans for SEMA, according to an article written by Mark Williams on pickuptrucks.com. This year, the focus of the state fair and SEMA is pickup concept truck parts.

The Silverado “Toughnology” reminds customers that aluminum, the latest material-fad of the auto work, cannot compete with the highstrength of steel, which is located throughout this pickup truck’s frame, cab, body and interior, which, GM has always noted, is “much less cost intensive than more exotic materials.”

This concept also showcases GM accessories like unique grille inserts, sidesteps, a hard tonneau cover, a carpeted bedliner, fenderflare accents and tinted headlights.

A graphic package, including 20inch wheels and tires, OnStar 4G LTE with Wi-Fi hotspot capability, a wireless charging mat and Siri Eyes Free, is also included.

Read the entire article: http://news.pickuptrucks.com/2014/ 09/chevrolet-debuts-a-pair-of-pickup -concept-trucks-for-sema.html

Cadillac to Introduce New Technology on 2017 Models

Cadillac will begin offering advanced “intelligent and connected” vehicle technologies on certain 2017 vehicles, General Motors CEO Mary Barra said on Sept. 7 during her address at the Intelligent Transport System (ITS) World Congress in Detroit. In about two years, a new 2017 Cadillac vehicle will offer customers an advanced driver assist technology called Super Cruise and the 2017 Cadillac CTS will be enabled with vehicle-to-vehicle (V2V) communication technology.

Super Cruise, the working name for GM’s automated driving technology, will offer customers a driving experience that includes hands-off lane following, braking and speed control in certain highway driving conditions.

The system is designed to increase the comfort of an attentive driver on freeways, both in bumper-to-bumper traffic and on long road trips.

Barra said the technology could mitigate many collisions and improve traffic congestion by sending and receiving basic safety information such as location, speed and direction of travel between vehicles approaching each other. It will warn drivers and can supplement active safety features, such as forward collision warning, already available on many production cars.

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Alcoa Forecasts Record Auto Sheet Shipments Q4

Alcoa Inc, the largest US aluminum producer, forecast profit from auto and aerospace components will increase in the Q4 as it sells a record amount of the metal to carmakers.

Alcoa, which is shifting its focus to manufacturing components and alloys, said it would deliver a record amount of aluminum sheet to automakers this quarter as car and truck manufacturers use more of the lightweight metal. Earnings in the company’s rolled products segment, a supplier of aluminum sheets to car, airplane and packaging manufacturers, will more than double from a year earlier.

Alcoa is benefiting from higher commercial-jet orders and a shift to aluminum components instead of steel among automakers such as Ford Motor Company, which plans to make its F150 pickup truck with aluminum body panels.

Mr Lloyd O’Carroll, a Richmond, Virginia based Analyst at Northcoast Research Holdings LLC said that “Auto body sheet has a much higher margin than anything except aircraft. I think 2015 is going to get a pretty big lift of usage on the F-150 and of course all of the margin benefit of that.”

Quotes Pros Website Offers Insurance Rates Information

The Quotes Pros website has a capability that allows users to research for collision insurance rates with its open tool at: http://quotespros.com/auto-insurance.html.

When comparing agencies in order to find the top policies and lowest pricin, entry can be gained to the QuotesPros.com database by using zip codes.

An instant quote is available to prepare once a provider is selected while using the formatted database for collision providers in the U.S. The rates details that the public has access to using the open portal are tied to more than standard collision type policies from agencies.

Collector, full coverage, high risk and state minimum protection plans can all be searched for in the location system once a provider has been selected.

The Quotes Pros company has positioned its open tools on its homepage to make it faster for a person to interact with an insurer without having to call companies by phone.

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Chevrolet Brings Back the Corvette Stingray in Time for SEMA The SEMA Auto Show isn’t just an event for established aftermarket companies to showcase their latest

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creations. It’s also a chance for new players in the business to introduce themselves to the industry. This year, Revorix falls under the latter category, and it’s prepared a special program for the Chevrolet Corvette Stingray. The new aftermarket company has just set up its business in Anaheim, California with the sole purpose of creating aftermarket

products that highlights a car’s “functional beauty.” Seeing as it’s still a relative neophyte in the industry, you can’t fault Roverix from enlisting the help of Rowen Japan, considered as one of the best aftermarket car body specialists in Japan.

Together, the two companies created the Revorix Corvette Package, which features a comprehensive list of new aerodynamic components designed to give the Corvette Stingray a sportier look and improved dynamics.

There are no performance upgrades but that’s not overly important when you’re a new entry to the market looking to make a name.

The important thing is to establish yourself first, and one way to do so is to build a body kit that will catch peoples’ attention, which is exactly what it has with the Revorix Corvette Package. It’s a tough task catching some eyes at the SEMA Auto Show, but Revorix, with the help of Rowen Japan, might have the kit to pull it off.

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58 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Car-O-Liner Participation Enhanced by Social Media

Car-O-Liner has entered the social media realm, and is now offering a variety of news ways for consumers to connect with the company. These channels include Facebook, LinkedIn, Google+, Twitter, Instagram, YouTube and Pinterest. Car-O-Liner President Jeff Kern, said he is excited about the new social media communications and anticipates these activities will benefit business relations through technical knowledge sharing.

“Our social media connection allows us to not only share our activities, but also join the conversation through communication with both our customers and the industry,” he said. “It is important to listen and be heard as we extend our reach through these interactive tools.”

Follow Car-O-Liner at: Facebook: facebook.com/caroline rcompany LinkedIn: https://www.linkedin.com/ company/car-o-liner?trk=top_ nav_home Google+: https://plus.google.com/ 102972787963006534481/posts Twitter: @car_o_liner Instagram: @car_o_liner Youtube: https://www.youtube .com/channel/UCFZEhZcZS4Xo4C wannUGcEQ Pintrest: http://www.pintrest.com/ carolinerauto/

I-CAR Launches Two New Refinish Courses

I-CAR announced that two new courses are now available to Refinish Technicians: Refinish Materials and Application Blending (REF08e) and Color Theory, Mixing Toners, and Tinting (REF09). These courses have replaced Color Theory, Application, Tinting, and Blending (REF03).

Josh McFarlin, I-CAR Director of Curriculum & Product Development stated, “Nearly all repairs require some level of refinishing and typically, refinish work gets noticed first by the customer. Refinish Technicians who take these courses will learn how to correctly prepare and refinish a vehicle to ensure proper overall appearance, which can help improve customer satisfaction and increase productivity through better cycle times and reduced rework.”

Refinish Materials and Application Blending (REF08e) is an interactive online course, worth 2 credit hours. It is complete with demonstrations on conventional blending and reverse blending, as well as discussions on using a blending additive and a blending bed.

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Senate Subcommittee Looks Into Effectiveness of the National Highway Traffic Safety Administration

The U.S Senate Committee on Commerce, Science and Transportation’s Subcommittee on Consumer Protection, Product Safety and Insurance recently held a hearing titled, “Oversight of and Policy Considerations for the National Highway Traffic Safety Administration.”

The purpose of this hearing was to evaluate the efficiency of the National Highway Traffic Safety Administration’s (NHTSA) highway and vehicle safety programs. The hearing was the latest in a series of congressional reviews that stemmed from NHTSA’s handling of General Motor’s ignition switch failures.

Deputy Administrator David Friedman served as NHTSA’s witness. Other witnesses included Joseph Comé from the U.S. Department of Transportation, Jacqueline S. Gillan of the Advocates for Highway and Auto Safety, Kendell Poole of the Governors Highway Safety Association, and Robert Strassburger of the Alliance of Automobile Manufacturers.

During the hearing, subcommittee members from both political parties had sharp criticism for NHTSA. Sen. Claire McCaskill

(D-Mo.), subcommittee chairman, said: “Nobody on this subcommittee believes that there aren’t people [at the agency] trying to do the right thing … but it’s hard to sit here and listen to you …You want to obfuscate responsibility rather than take responsibility.”

The remarks echoed the tone of the House Committee on Energy and Commerce Committee’s report released earlier that same day, detailing NHTSA’s perceived shortcomings in regard to the GM ignition switch recall.

Rep. Fred Upton (R-Mich.), committee chairman, said: “It is tragic that the evidence was staring NHTSA in the face and the agency didn’t identify the warnings.

NHTSA exists not just to process what the company finds, but to dig deeper. They failed. We’ll keep looking for answers, and keep working toward solutions – whether it means changing our laws or pressing for change at the companies that follow them and the agencies that enforce them – but we know for sure that NHTSA was part of the problem and is going to have to be part of the solution.”

Car Donation Helps Army Veteran Get Back on the Road

Caliber Collision teamed up with Travelers to help a U.S. Army veteran get back on the road by providing him with a newly refurbished vehicle in September as part of its nationwide Recycled Rides program.

Conley joined the Army in 1965 when he was 17 and served his six-year enlistment as an intelligence and security specialist. After leaving the Army, he worked as a pilot for corporations including General Motors, federal contractors and state and local police SWAT units. His responsibilities ranged from flying VIPs in jets to dealing with hostage and crisis negotiation. About 10 years ago, he began to suffer from a series of medical conditions, including cancer and liver disease, which took a toll on him both physically and financially.

“We hope this Recycled Rides gift will help Richard out of his ‘catch-22’ situation in which he is unable to afford to purchase a car but without transportation, he is unable to find employment,” said Rusty Barsanti, Caliber Collision’s VP of Operations.

The company plans on gifting more than 20 vehicles during 2014 to military and first responders.

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The Women’s Industry Network (WIN) is kicking-off their 2015 Membership Drive. WIN membership is annual and based on a calendar year. Their goal is to reach 400 members by 2015.

WIN is focused on engaging women in the collision repair industry through education, networking and sharing of resources. This year’s drive will include several outreach opportunities. A membership drive drawing for new members, renewing members and referrals, and an added grand prize of one free 2015 WIN Education Conference Registration Fee will all be part of the festivities. ● NEW MEMBERS Drawing - for all new members who join before December 31st; ● RENEWING MEMBERS Drawing - for all current & past members who renew before December 31st; ● REFERRALS - for all new, current and past members who refer a new member who joins before December 31st.

All entries will be combined into a single drawing for the grand prize, which does not include travel expenses. For more information, visit: http://thewomensindustrynetwork.ni ng.com/page/join-win-1.

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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 59

Southeast Associations

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.

LaCIA Holds September Member Meeting, Hosts AG Caldwell with Chasidy Rae Sisk

On the evening of Tuesday, Septem- ited and inspected by OSHA within the next three years. LaCIA will post ber 16, the Louisiana Collision Induslist to their website for future use. try Association (LaCIA) gathered in with Chasidy Raethis Sisk

Northeast Associations

scheduled for Thursday, October 16 at the Marriott in Metairie, and Alysia Hanks, Executive Director of LaCIA,

Lafayette/Alexandria area, and she emphasizes, “it is so important that all of our members attend this meeting so

is excited to announce that renowned industry speaker Mike Anderson will be in attendance to present to attendees. Hanks has also tentatively scheduled the last meeting of the year for Saturday, November 15 in the

we can discuss the board and agenda for next year.”

Midwest Associations with Chasidy Rae Sisk

National Associations with Chasidy Rae Sisk

Northwest Associations

Next, Attorney General Caldwell Baton Rouge for their first meeting and several members of his staff prosince July. Speakers at the meeting inwith Chasidy Raevided Siskan update on the status of their cluded Billy Easterling of ERS, Inc. lawsuit against State Farm. Caldwell who presented on OSHA compliance informed the group that State Farm is requirements and Attorney General attempting to get their lawsuit consolBuddy Caldwell who updated attenidated with the others currently in dees on the status of the lawsuit he reFederal Court, but Stacie deBlieux, cently filed against State Farm regarding Assistant Attorney General, believes the insurer’s steering practices. that they will be successful in their efThe eveningwith beganEd withAttanasio Easterforts to return the suit to the state of ling’s presentation on OSHA compliance. He handed out an informative Louisiana where it belongs.

The Attorney General’s office is packet which contained a helpful checklist for shops to use as a guideline. He still in the discovery phase of gatheralso offered a free walkthrough to the ing information and has promised to shops present, andwith severalEd shops signed provide the association with a list of Attanasio up to have ERS, Inc. visit their facilities the information needed to help them to ensure that they are not engaging in prepare for the case. They have also any OSHA violations that could result established an online complaint form for shops to complete and submit; this in fines or employee injuries.

Easterling also distributed a form can be found at: www.ag.state.la. safety and compliance alert contain- us/InsuranceComplaints.aspx.

Ed Attanasio scheduled to be visLaCIA’s next meeting has been ing a list of shopswith

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Associations Assembling

Students Gain Practical Experience at NC Body Shop

Thanks to a new agreement between of-the-art automotive training center, Randolph Community College (RCC) named the Richard Petty Education and Petty’s Garage in Asheboro, NC Center, opened in 2009.

Richard Petty’s highThomas performance with FranklinAccording to the RCC instrucspeed shop in Level Cross, five Ran- tors, Jacob Garner of Robbins, Jacob dolph Community College students Brown of Ramseur, Jake Flinchum were able to participate in a unique of Seagrove, Justin Lackey of Trinity, and Israel Velazquez of Asheboro job-shadowing experience.

Petty’s Garage technicians spent a were selected based on interest, availweek training three Automotive Sys- ability, and grade point average. tems Technology students and two ColGreg Steadman, shop foreman with EdTechnology Attanasioat Petty’s Garage, said the students lision Repair & Refinishing students. RCC has been affiliated with work on whatever current jobs are in the Richard Petty brand since its state- the shop at the time of the internship.

Association Meetings

Old School Know How

60 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

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Berkshire Hathaway to Acquire Van Tuyl Group, Largest Privately-Owned Auto Dealership Group

Berkshire Hathaway Inc. and Van Tuyl Group announced on October 2 that they have entered into a definitive agreement in which Berkshire Hathaway will acquire the Van Tuyl Group, the nation’s largest privatelyowned auto dealership group, ranking fifth among all U.S. auto dealership groups.

After becoming a part of the Berkshire Hathaway family of businesses, the company will be known as Berkshire Hathaway Automotive. The company will continue to be led by Larry Van Tuyl, who will become Chairman, and Jeff Rachor, who will assume the role of CEO, as well as its experienced senior management team. Berkshire

Hathaway Automotive will be headquartered in Dallas, Texas and continue to pursue its strategy of operational excellence and disciplined acquisition growth, which is the business model the company has pursued for the last 62 years.

“The Van Tuyl Group fits perfectly into Berkshire Hathaway from both a financial and cultural viewpoint. Larry Van Tuyl along with his father, Cecil, spent decades building outstanding dealerships operated by local partners. In recent years, he has shared management with Jeff Rachor, a seasoned auto retailer who will retain a financial interest in all dealerships. The Van Tuyl Group enjoys

excellent relations with the major auto manufacturers and delivers unusually high volumes at its 78 locations. This is just the beginning for Berkshire Hathaway Automotive,” said Berkshire Hathaway’s Chairman and CEO, Warren Buffett.

“We are proud of all that has been accomplished with the support of our dealer partners, our employees and the manufacturers that we represent. We are very pleased to have one of the world’s most respected companies, Berkshire Hathaway, assume ownership of our company with the commitment to preserving our unique culture, business model and philosophy,” said Van Tuyl. “I cannot think of a better

Aftermarket Auto Parts Alliance Joins CC TRU Parts Network CCC Information Services Inc. announced the addition of the Aftermarket Auto Parts Alliance (Alliance) as a supplier to the CCC TRUE™ Parts Network on October 16.

The Alliance, which goes to market under a variety of store brands including Auto Value and Bumper to Bumper, becomes a significant contributor of mechanical parts and repair supplies to CCC TRUE Parts Network.

“Providing our customers with ac-

cess to the Alliance’s extensive offering of repair parts and related supplies via their robust MyPlaceForParts™ network extends our footprint and provides our repair and insurance customers with even greater choice and flexibility in their parts options,” said David Boden, VP, CCC’s Parts Services Group.

“We look forward to working with the Alliance and integrating its parts inventory with CCC TRUE Parts Network.”

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steward to continue the legacy of what my father and I have built over the last 62 years, and I am confident this transaction will position the company on a course of continued success.”

The transaction is expected to be completed in the first quarter of 2015 and is subject to obtaining approvals from the major auto manufacturers as well as certain customary closing conditions, including various regulatory approvals.

Stephens Inc. is serving as financial advisor to Van Tuyl Group. DLA Piper is providing legal advice to Van Tuyl Group, and Munger, Tolles & Olson LLP is providing legal advice to Berkshire Hathaway.

“Collision repair shops have a tremendous need for easy access to mechanical repair parts and supplies,” said Jon Owens, Vice President of sales and market development for the Alliance. “Streamlining that access was the purpose of our participating in the CCC TRUE Parts Network and we could not be more delighted with the opportunity to bring our extensive inventory to CCC’s customers.”

CCC ONE® Workflow users will

now have access to the Alliance’s network of over 2,200 locations that stock nearly 2,000,000 repair parts and supplies for both import and domestic vehicles.

Axalta Program Provides Shop Owners With More Data

NITROHEAT Launches New Product at SEMA

Axalta Coatings Systems announced on Oct. 3 that its ProfitNet™ Collision Shop Management System is now interfaced with Dealertrack Technologies Dealer Management System (DMS).

ProfitNet is a software program designed to measure and manage all aspects of the collision repair business.

The program provides collision shop owners with access to information that they may need to help make decisions regarding the productivity and profitability of their business.

The new interface, approved via Dealertrack’s Opentrack Certification Program, is an electronic bridge between ProfitNet and the DMS to help car dealerships to streamline and create greater efficiencies in managing parts, labor, and production processes within their collision repair centers.

“Dealertrack is proud to partner with Axalta Coating Systems to create an interface with their ProfitNet offering that is certified by our Opentrack Certification Program,” says Sharon Kitzman, Vice President and General Manager, DMS, Dealertrack.

The interface is designed to save hours of double-entry of data that is used by both systems.

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NITROHEAT announced on October 20 that it will be launching a new product range of high performance compressed air filters, dryers and heaters at SEMA. This new product range incorporates NITROHEAT’S new patent pending tablet and smart phone controlled heaters, the first of its kind in the industry. This technology allows users to remotely control and monitor temperatures of the compressed air and nitrogen heaters used in the spray painting process.

Clean dry air has always been a fundamental requirement for spray painting as well as pneumatic tool usage. This technology from NITROHEAT will supply the cleanest, driest air possible for optimal benefits to compressed air requirements and maximum return on investment.

Nitroheat’s proven technology in the process of “Nitrogen on Demand” has been widely used since inception. This additional technology opens up a broader market in the painting and compressed air sector.

The product can be seen at the SEMA expo in Las Vegas from Nov. 4-7 at booth 11421.

www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 61

Father and Son Indicted in Counterfeit Scheme Out of Their MA Body Shop A father and son have been indicted in connection with running a counterfeit motor vehicle inspection sticker scheme out of their Dorchester, MA body shop, Attorney General Martha Coakley announced on September 30.

Jose Sostre, age 61, of Avon, and his son, Tommy Sostre, age 28, of Brockton, were arraigned on September 29 by a Suffolk County Grand Jury.

Jose Sostre was accused of Counterfeiting Motor Vehicle Inspection Stickers (4 counts), Uttering or Publishing as True Counterfeit Motor Vehicle Inspection Stickers (4 counts), Conspiracy to Counterfeit Motor Vehicle Inspection Stickers, Conspiracy to Utter or Publishing as True Counterfeit Inspection Stickers, and Possession of a Firearm without an Firearms Identification (FID) Card.

Tommy Sostre was indicted on charges of Counterfeiting Motor Vehicle Inspection Stickers (20 counts), Uttering or Publishing as True Counterfeit Motor Vehicle Inspection Stickers (20 counts), Conspiracy to Counterfeit Motor Vehicle Inspection Stickers, and Conspiracy to Utter or Publishing as True Counterfeit Inspection Stickers.

Both defendants were arraigned in Suffolk Superior Court on October 20.

“We allege that these defendants created and issued counterfeit inspection stickers to vehicles that otherwise would not pass safety or emissions inspections, violating laws intended to keep our roads safe and our air clean,” AG Coakley said.

“This was an egregious phony sticker scam developed and painstakingly investigated by working collaboratively with our sister agencies and our law enforcement partners,” said MassDEP Commissioner David Cash. “Together we are able to leverage enforcement resources, hone in on suspected fraud and ferret out perpetrators so that consumers are protected and everyone plays on a level playing field.”

In the spring of 2013, the AG’s Office began an investigation after the matter was initially investigated and referred by MassDEP and the Massachusetts Registry of Motor Vehicles (RMV).

Between Aug. 2013 and Oct. 2013, Jose and Tommy Sostre allegedly created and issued a large number of counterfeit inspection stickers at Tony’s Auto, which at the time was a licensed motor vehicle inspec-

tion station in Dorchester owned by Tommy.

Authorities allege that Jose and Tommy created a large number of counterfeit inspection stickers by using official inspection sticker stock on to which they cut and pasted various pieces of fraudulent information.

They then allegedly affixed those “passing” counterfeit stickers on to numerous vehicles that did not pass safety or emissions inspections, or on to vehicles that weren’t inspected at all. According to authorities, Jose and Tommy would charge customers more for these counterfeit passing inspection stickers.

Investigators found physical evidence at Tony’s Auto that supported the charges. Investigators also discovered an illegal firearm allegedly belonging to Jose, who did not have a FID card.

Tony’s Auto is not currently authorized to provide motor vehicle inspections.

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Millsboro Automart Hosts Grand Opening in DE

Millsboro Automart hosted a grand opening celebration Oct. 22, at the new facility at 28362 DuPont Blvd., Millsboro, De. Millsboro Automart has long been a part of the Preston Automotive Group and first opened in Nov. 1987, according to reports in stardem.com.

This past year, Preston Automotive President Dave Wilson Sr. decided to tear down the old building and build a whole new facility that would reflect the mission of the group. It is to provide a superior workplace for its associates so that as a team it can provide its customers with a superior consumer experience, according to a news release from Preston Automotive.

“We will express our love for every customer daily, and create an experience that will result in our customers choosing the Preston Automotive Group for all the services we provide,” Wilson said in the release.

Now open to the public, the allnew used car and service facility accommodates more than 120 used cars and trucks on the lot and five new service bays that are available for oil changes, tire rotations and all other car repairs or service.

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