Northeastern November 2015 Issue

Northeastern Edition New York Delaware New Jersey Pennsylvania

Maryland Connecticut Rhode Island Massachusetts

34

YEARS

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VOL. 6 ISSUE 8 NOVEMBER 2015

Supreme Court Declines to Hear Antitrust Claims of Predatory Pricing in GM Parts Conquest Program

AASP/NJ Executive Director Charles Bryant Speaks Out on Alleged Body Shop P&M Scammer

It is a common refrain in legal opinions on antitrust law that the laws were designed for “the protection of competition, not competitors.” This distinction was recently upheld in the case of Felder’s Collision Parts, Inc—a Louisiana dealer of aftermarket auto body parts that are compatible with GM vehicles—in its suit against All Star Automotive Group and it’s Advertising Subsidiary—a dealer of GM-manufactured parts.

Felder’s filed an antitrust suit against All Star and GM alleging that

“When I read the article about a body shop owner scamming an insurance company on the cost of paint and materials, my blood started to boil. The more I read, the hotter I got, but not for the reasons that one might first imagine.

First, let me be perfectly clear. I have no compassion for anyone who would supply an insurance company with a fictitious invoice in order to be compensated for a part, material, paint or anything else that he does not deserve to be paid for, nor do I condone this type of illegal activity. If this is truly what this party actually did, then he should suffer the consequences. However, on a daily basis, I see insurance companies shortchanging their own insureds, causing collision shops to conduct repairs for less than the cost of the paint materials that are required to properly repair automobiles that are damaged in an accident when the repairs are being paid for by an insurance company.

by Autobody News Staff

GM’s “Bump the Competition” program was an unlawful predatory pricing scheme. The program lowers the consumer price for GM-manufactured parts below the prices of equivalent aftermarket auto parts manufactured by others. It does so by providing rebates to dealers like All Star that sell GM-manufactured parts at the reduced prices.

The rebates ensure that the dealers still make a profit on these sales despite the lower price charged to shops and consumers, however the case hinged on the amount of the rebate and whether it was sufficient to reduce the cost of GM’s See Antitrust Claims, Page 14

Body Shops Await News About MDL After Florida Case Dismissed, Plaintiff Law Firm Comments

See Case Dismissed, Page 28

P.O. BOX 1516, CARLSBAD, CA 92018

After the lead case in the Multi-District Litigation was dismissed by a Florida judge on September 24, body shops across the country are watching closely to see what happens next.

Autobody News spoke to John Eaves, the lead attorney for the consolidated lawsuit, A&E et al v. 21st Century, to find out how this will affect the other cases. “Our best guess is that he (Judge Gregory Presnell) will try to do that in the other states as well,” he said.

In what Eaves referred to as a “delay of games,” he said from an organizational standpoint Judge Presnell

is probably going to send the remaining cases to the appellate court and let them sort out what the law actually is.

However, he said it’s possible that the judge may “cherry pick” and make a different decision in each of the different states involved.

Eaves said that he was surprised and disappointed with the news but Eaves Law Firm plans to file an appeal and shops should not lose hope.

“There is a lot of activity still going on and our commitment is still solid when it comes to customers getting a quality repair,” said Eaves. “This is not the end of our efforts. We’re interpret-

Change Service Requested

by Stacey Phillips, Assistant Editor

by Charles Bryant

Many insurers in the State of New Jersey are currently using an antiquated, outdated formula to determine or limit the amount that they will pay for the cost of paint and materials required to repair damaged vehicles even though there are multiple accurate and computerized cost accounting programs readily available to the insurance companies or anyone else to determine the exact costs.

This paint and material issue was addressed by the NJ Department of Banking and Insurance back in 2007. At that time, the Department issued Bulletin 07-20, which cautioned insurers that traditional methods used for paint and material allowances were inadequate, recessive and were resulting in estimates that do not provide a sufficient allowance to restore vehicles to pre-accident condition. The bulletin put insurers on notice that they must be able to justify their paint and material allowances.

Because of the huge difference in the cost of red paint as opposed to, let’s See Charles Bryant, Page 63

Shops in SC Wade through Water Damage in Effort to Save Vehicles

handful of body shops in the area, all of which were not directly affected by On October 4, South Carolina experithe hurricane floodwaters, but experienced a “thousand-year flood” as Hurenced the surge in demand for their ricane Joaquin ripped by the capital services. For the past 10 days, these shops have been sifting through the wreckage to find the salvageable vehicles, and identify the ones beyond repair.

“Once the vehicle has been completely submerged underwater, it is difficult to repair; but not impossible,” said Dominick Santoro, an estimator at Caliber Collision in ColumA car marked for salvage sinks in floodwaters in Columbia, bia. Although Caliber ColliSC on Monday, Oct. 5, 2015. Credit: @francesncr/instagram sion remained open amidst city of Columbia, dumping 20–30 Joaquin, Santoro experienced damages inches of rain in a 24-hour period. on the homefront.

See SC Flooding, Page 18 Autobody News reached out to a

by Victoria Antonelli and Cass Heckel

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

2 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio - Body Shop Owner in IA Restores Cars Part-Time While Saving Lives Full-Time . . . . 62 Attanasio - Don’t Be Content with Sub-Par Online Content. . . . . . . . . . . . . . . . . . . . . . . 48 Attanasio - What to Do if You Suspect Substance Abuse in Your Shop . . . . . . . . . . 58 Chaney - Determining Cash Values for Vehicles, An Inside Look at Mitchell’s Database Amongst Topics Covered at ABAT Event . . . . . . . . . . . 38 Hey Toby! - Rivets Have Replaced Welding in Many Newer Vehicles — Part 2 . . . . . . . . 54 Yoswick - Lots of Variables to Take Into Account When Welding, But Training Need Doesn’t Vary. . . . . . . . . . . . . . . . . . . . 42 Yoswick - SCRS Survey, Airbag Testing Technology, Total Loss Pandemic, NSF International . . . . . . . . . . . . . . . . . . . . . 52 NATIONAL Alioto’s Garage is the Oldest Body Shop in San Francisco . . . . . . . . . . . . . . . . . . . . . 46 All is Not Lost in Judge’s Dismissal of FL Collision Repairer’s Lawsuits . . . . . . . . . 26 ASA Collision Division Reports on Two New Publications, Operations Committee on Feather Prime and Block . . . . . . . . . . . . . . . 73 ASA Responds to Volkswagen Emissions Investigation . . . . . . . . . . . . . . . . . . . . . . . . 70 Assured Performance Launches Smart App for Accident & Collision Care . . . . . . . . . . . 67 B2B Automotive’s Michelle Nelson to Present at SEMA . . . . . . . . . . . . . . . . . . . . . 62 Body Shops Await News About MDL After Florida Case Dismissed, Plaintiff Law Firm Comments . 1 CA Takes Action Against Insurers for Various

Acts: Capping Labor Rates, Lowballing, Trade Practices . . . . . . . . . . . . . . . . . . . . . . 34 CAA Lobbyist Jack Molodanof to Speak at SEMA 2015. . . . . . . . . . . . . . . . . . . . . . . 30 CARSTAR Expands in PA by Converting Fred Beans Dealership Locations, Refurbishes Vehicle for Veteran in MA. . . . . . . . . . . . . . . . . . . . . 22 Certified Collision Group™ Expands 1stCERTIFIED™ to 26 Shops, 4 States . . . . . . . . . . . . . . . . . 66 Chief Videos Show How to Hold a Vehicle for Sectioning or Pulling. . . . . . . . . . . . . . . . 66 Dave McClelland to Host Final SEMA Awards Banquet . . . . . . . . . . . . . . . . . . . . . 68 DVI BOSS Revolutionizes Aftermarket Automotive Repairs with the New Digital Vehicle Inspection . . . . . . . . . . . . . . . 72 Equalizer Distributor Pilkington Holds Customer Appreciation Event in San Diego . . . . . . . . . 27 GFS to Demo REVO Accelerated Curing System at SEMA . . . . . . . . . . . . . . . . . . . . 68 I-CAR® Adds New Vehicle Technology & Trends Course, Updates Existing Brazing & Measuring Course . . . . . . . . . . . . 73 I-CAR® Welding Training & Certification™ Program Now Available Through Career & Technical Schools . . . . . . . . . . . . . . . . . . 70 If Auto Injury Claims Frequency Is Falling, Why Are Claims Costs Rising? . . . . . . . . . . 70 Ladies of NHRA Racing to Highlight 2015 SEMA Show Breakfast. . . . . . . . . . . . . . . . . 32 Larry Roesel to Retire as Sr. VP at Autozone . . 30 MA Auto Emissions Inspector and Service Station Sued for Conducting Fraudulent Vehicle Inspections . . . . . . . . . . . . . . . . . . . 24 Mike Anderson Outlines ‘Virtual Steering’ Risks for Shops During Talk at Ontario Body Shop. . 67 MSOs, Independent Shops and Businesses Raise Money and Awareness for Breast Cancer. . . 44 PPG Presents Brilliant Colors & Colorful People at SEMA. . . . . . . . . . . . . . . . . . . . . . 73 Shops in SC Wade through Water Damage in Effort to Save Vehicles. . . . . . . . . . . . . . . . 1 State Farm Surveys Teens About What Would Stop Them from Texting While Driving . . . . . 24 Subaru Sees Record Demand, Plans IN Plant Expansion by 100,000 Vehicles. . . . . . 66 Subaru Selects OEC® Collision Parts Ordering and Fulfillment . . . . . . . . . . . . . . . . 72 Supreme Court Declines to Hear Antitrust Claims of Predatory Pricing in GM Parts Conquest Program . . . . . . . . . . . . . . . . . . . . 1 Third Survey Now Open, Asking ‘Who Pays For What’ in Terms of Aluminum Repair, Other Items . . . . . . . . . . . . . . . . . . . . . . . . . 56 Tony Passwater Named Director of Green Service Standards Committee . . . . . . . . . . . 72 U.S. House Passes Federal Vehicle Repair Cost Savings Act. . . . . . . . . . . . . . . . . . . . . 72 U.S. Justices Consider Baltimore Cop’s Kickback Conspiracy Appeal According to Reuters Report . . . . . . . . . . . . . . . . . . . . 11 U.S. Will Need To Adopt European Approach To Achieve MPG Targets . . . . . . . . . . . . . . . 72 Urethane Supply Hires New Instructors for I-CAR Course & New Sales Rep in NE . . . . . 18 Valspar Automotive Executive Talks Strategy at SEMA . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Valspar Automotive Paints a Brighter Future for Artists4Education and CREF. . . . . . . . . . 68 Volvo Breaks Ground on First American Factory in SC . . . . . . . . . . . . . . . . . . . . . . . 56 WIN Announces Record Membership Numbers, End of October Webinar. . . . . . . . . . . . . . . . 74

approved by the Commissioner of the Department of Motor Vehicles in consultation with the Superintendent of the Department of Financial Services.

Currently there are no approved standards from the State of NY, rendering the sale of all salvaged airbags illegal.

The AG’s investigation revealed that Don’s Automotive sold dozens, if not hundreds, of airbags removed from salvaged automobiles to consumers and auto repair shops throughout the U.S. without first having the equipment properly tested. The company agreed to pay a $12,500 civil penalty to New York for the violation. The company also agreed to maintain records of any salvaged airbags for three years.

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 Office Manager: Louise Tedesco Sales Assistant: Cass Heckel Art Director: Rodolfo Garcia

Acura of Westchester . . . . . . . . . . . 35 Amato Agency . . . . . . . . . . . . . . . . 30 Atlantic Hyundai . . . . . . . . . . . . . . . 18 Audi Wholesale Parts Dealers . . . . 65 Axalta Coating Systems . . . . . . . . . 75 Bald Hill Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 20 BASF Corporation. . . . . . . . . . . . . . . 5 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 34 BMW Wholesale Parts Dealers . 60-61 Cadillac of Mahwah . . . . . . . . . . . . 11 Car-Part.com . . . . . . . . . . . . . . . . . . 19 CarcoonAmerica Airflow Systems. . 32 Central Avenue Chrysler-JeepDodge-Ram. . . . . . . . . . . . . . . . . 10 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 41 Cherry Hill Audi . . . . . . . . . . . . . . . . 53 Cherry Hill Porsche . . . . . . . . . . . . . 53 Cherry Hill Volkswagen. . . . . . . . . . 53 Chief Automotive. . . . . . . . . . . . 17, 29 Classifieds. . . . . . . . . . . . . . . . . . . . 74 Clay Auto Group . . . . . . . . . . . . . . . 47 Crashmax Equipment . . . . . . . . . . . 12 Dent Magic Tools . . . . . . . . . . . . . . . 4 Ditschman/Flemington Auto Group . 43 Dover Chrysler-Dodge-Jeep . . . . . . 31 Eco Repair Systems of North America, LLC . . . . . . . . . . 14 EMM . . . . . . . . . . . . . . . . . . . . . . . . 33 Empire Auto Parts . . . . . . . . . . . . . . 24 Equalizer Industries, Inc . . . . . . . . . 27 Fairfield Chrysler-Jeep-Dodge-Ram. . 15 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . . 44 Ford Wholesale Parts Dealers . . . . 66 Fred Beans Parts . . . . . . . . . . . 21, 76 Fuccillo Kia of Schenectady . . . . . . 49 Gary Rome Hyundai-Kia . . . . . . . . . 66 GM Wholesale Parts Dealers . . . . . 52 H & S Autoshot Mfg. Co. . . . . . . . . 35 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 36-37

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. ©2015 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

REGIONAL AASP/NJ Executive Director Charles Bryant Speaks Out on Alleged Body Shop P&M Scammer. . . 1 AASP/NJ Focuses on Aluminum for Sept. Meetings . . . . . . . . . . . . . . . . . . . . . . 11 ABAC Advocates for House Bill 5655 to Eliminate Double Taxation on Paint . . . . . . . . . . . . . . . . 6 ABAC Quarterly Membership Meeting Attracts Over 120 Attendees . . . . . . . . . . . . 20 After Fire and Storms, Mineola’s Olympos Auto Service in Mineola, NY, ‘Not Going Anywhere’ . 12 Axalta Coating Systems Extends Cooperative Relationship with Penn College . . . . . . . . . . . 4 CARSTAR in Bristol, CT, Supports Breast Cancer Research . . . . . . . . . . . . . . . 18 Carubba is Official Collision Repairer for Buffalo Bills. . . . . . . . . . . . . . . . . . . . . . . . . 11 Chicopee, MA, Woman Sentenced for Role in Springfield Car Arsons, Person Who Lit Fire Not Identified. . . . . . . . . . . . . . . . . . . . . . . . 10 Four NJ Residents Charged in Staged Auto Accidents, More Than $48,000 in Payouts. . . 4 LIABRA Holds 14th Annual Golf Tournament Fundraiser . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Newly Formed ASA-CT Opens 2015–16 Season . . 8 NY Attorney General Reaches Agreement with Auto Shop Over Illegal Sale of Salvaged Airbags. . . . . . . . . . . . . . . . . . . . . . 3 Restoration Parts Unlimited, Acquires Corvette in PA . . . . . . . . . . . . . . . . . . . . . . . 10 Toms River, NJ, Car Dealer Sentenced in Tax Scheme . . . . . . . . . . . . . . . . . . . . . . . . 16 UTI Exton Campus Students Troubleshoot Cars Using Virtual Technology . . . . . . . . . . . . . . . 16 VW Fallout Continues, Recall Could Begin in January . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Attorney General Eric T. Schneiderman announced in October that his office reached an agreement with Binghamtonbased Don’s Automotive Mall, Inc. to resolve an investigation that revealed the company was selling salvaged automobile airbags in violation of New York State law.

The Southern Tier area automobile salvage company agreed it would not sell any salvaged airbags without first complying with the law. New York requires anyone attempting to sell inflatable restraint systems salvaged from another vehicle to have it first certified according to standards established by a nationally recognized testing, engineering and research body

Indexof Advertisers

Contents

NY Attorney General Reaches Agreement with Auto Shop Over Illegal Sale of Salvaged Airbags

Hyundai Motor America . . . . . . . . . 13 Hyundai Wholesale Parts Dealers . . 63 Infiniti of Norwood. . . . . . . . . . . . . . 38 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 69 Koeppel VW-Mazda . . . . . . . . . . . . 45 Larson Electronics, LLC.. . . . . . . . . . 8 Lexus Wholesale Parts Dealers . . . 70 Malco. . . . . . . . . . . . . . . . . . . . . . . . 19 Maxon Hyundai. . . . . . . . . . . . . . . . 40 Maxon Mazda . . . . . . . . . . . . . . . . . 46 Mazda Wholesale Parts Dealers . . . 67 Mercedes-Benz . . . . . . . . . . . . . . . . . 9 Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . . . 50 Mercedes-Benz of West Chester . . 50 Mercedes-Benz of Wilmington . . . . 28 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 73 MINI Wholesale Parts Dealers . . . . 58 MOPAR Wholesale Parts Dealers . . 39 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 68 Porsche Wholesale Parts Dealers . . 56 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . . 16 Safety Regulation Strategies . . . . . 42 SATA Spray Equipment . . . . . . . . . 23 Security Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . . 7 Subaru Wholesale Parts Dealers . . 71 Tasca Automotive Group . . . . . . . . 55 Thompson Organization . . . . . . . . . 51 Toyota Wholesale Parts Dealers . . . 72 Urethane Supply Company . . . . . . 26 Valspar Automotive . . . . . . . . . . . . . 25 VIP Honda . . . . . . . . . . . . . . . . . . . . 22 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 59 Volvo Wholesale Parts Dealers . . . . 62 Wagner Auto Group . . . . . . . . . . . . 57 Wheel Collision Center . . . . . . . . . . 48 WyoTech . . . . . . . . . . . . . . . . . . . . . . 6

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 3

Four NJ Residents Charged in Staged Auto Accidents, More Than $48,000 in Payouts

Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) announced on October 15 that a Union County man and three others were indicted for allegedly orchestrating a staged automobile accident in Paterson in 2012 and later seeking more than $48,000 in medical payouts from his insurer.

Jonathan L. Desir, 22, of Elizabeth, Makenson Clermont, 34, of Irvington, Jhonny Volmire, 26, of Newark, and Jana B. Philippe, 32, of Irvington all were charged by a state grand jury with second-degree health care claims fraud, second-degree conspiracy, and thirddegree attempted theft by deception for their alleged parts in the scam.

Additionally Desir and Clermont were charged with secJonathan Desir ond-degree insurance fraud, second-degree conspiracy, and third-degree theft by deception for allegedly agreeing to share the cost of the insurance policy then stage a

bogus accident to split the claim payout. Desir, Clermont, and Philippe were also charged with fourth-degree false swearing for fraudulent statements they allegedly made to investigators.

The indictment, handed up in Superior Court, alleges that Clermont, Volmire, and an unknown female were in Desir’s Honda Civic when he intentionally drove the car into another vehicle. Neither the other driver, nor the occupants of Desir’s car were hurt and the damage to both vehicles was Makenson minimal, according Clermont to the indictment.

Subsequently, the three men and Philippe, who assumed the role of the unknown female passenger, each filed a claim for PIP benefits with Liberty Mutual Insurance Company and received medical treatment for their alleged injuries, according to the indictment.

Liberty Mutual paid Desir’s $5,736 collision claim, but refused to pay the

Axalta Coating Systems Extends Cooperative Relationship with Penn College Axalta Coating Systems has extended its sponsorship of the collision repair technology and automotive restoration technology programs at the Pennsylvania College of Technology for four years.

Axalta moved into College Avenue Labs in 2002, and will continue to provide products for instructional use, assistance with curriculum development, and training of collision repair faculty as a way to build brand awareness and expertise for their products with Penn College students.

Under the agreement, Penn College will offer access to the paint booth and mixing room for Axalta training purposes.

The agreement is effective through Jan. 1, 2019, and is reviewed annually to determine if there is a need for modification.

“We value the longstanding relationship with Axalta. Their support continues to be an asset to our colli-

sion repair and restoration majors,” said Brett A. Reasner, dean of transportation and natural resources technologies. “Donations of their latest technology products and assistance with training for faculty and students help to ensure our graduates are ready to enter the workforce.”

“The faculty at Pennsylvania College of Technology has demonstrated a firm commitment to instructing their students in the proper procedures regarding Axalta Coating Systems products,” said Jeff Klingman, territory sales manager for Axalta. “The instructors work closely with Axalta’s training center facilitators to mirror our guidelines for certification. This commitment enables the students to gain knowledge and expertise to succeed in the automotive collision and restoration industry.”

For information about the college’s two-year collision repair and automotive restoration majors, visit www .pct.edu/TNRT or call 570-327-4516.

For more about the college, a national leader in applied technology education and workforce development, visit www.pct.edu, email admissions @pct.edu or call toll-free 800-3679222.

4 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

$48,550 in claims submitted by health care providers. The insurance company referred the matter to the OIFP which launched an investigation.

“Attempting to cheat insurance companies through staged automobile accidents, as these co-conspirators allegedly tried to do, is both dangerous and costly,” said Acting Attorney General Hoffman.

“These individuals Jana B. Philippe not only put themselves at risk through their alleged scam, they put innocent pedestrians and other drivers at risk as well.”

“Law-abiding drivers bear the cost of staged accidents and bogus claims through increased insurance premiums,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “As long as there are people looking to make a quick buck by scamming insurance companies, drivers cannot participate in a fair marketplace.”

Second-degree crimes carry a sentence of five to 10 years in state prison and a criminal fine of up to $150,000;

third-degree crimes carry a sentence of three to five years in state prison and a criminal fine of up to $15,000, while fourth-degree crimes carry a maximum sentence of 18 months in prison and a $10,000 fine.

Acting Insurance Fraud Prosecutor Chillemi noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurance fraud.org.

The source for timely information that every body shop needs!

CALL 800-699-8251

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 5

ABAC Advocates for House Bill 5655 to Eliminate Double Taxation on Paint

by Chasidy Rae Sisk

In September 2015, the Auto Body Association of Connecticut (ABAC) addressed the State Tax Panel in reference to House Bill 5655, “An Act Concerning the Taxation of Paint Used in Motor Vehicle Repair.” Presenting testimony, the association expressed their support of the bill’s intent, advocating for reform because they feel collision repairers have been unfairly penalized by an interpretation of the law which allows paint and materials to be subject to double taxation.

The law that was established in the 1970s defined which materials were taxable, providing that “integral parts” are non-taxable. Integral parts are defined as a part that maintains a separate identity after use, and at the time, paint was included in this definition in the sense that it was purchased in small quantities for a specific vehicle. However, times have changed, and now, shops purchase paint in bulk, mixing the paint for each individual repair job.

Because paint is no longer purchased for a specific vehicle, it is subjected to taxation at the wholesale purchase and

again at the retail sale.

This double taxation has been imposed since 1999 when auditors found that jobbers were not taxing shops for the wholesale purchase. Jobbers were fined for their failure to tax upfront on paint and materials, so they began taxing shops for the purchase. Tony Ferraiolo, President of ABAC, argued that, “Because the mixed paint is charged to a specific vehicle’s repair, it should be untaxed until it is resold for a specific car. House Bill 5655 was proposed in the 2015 Legislative session, but it didn’t get anywhere since last year was about increasing state revenue, so we hope to revisit the proposal in the 2016 Legislative session.”

Although this situation is not technically considered double taxation, because two separate entities pay the taxes, the product is still being taxed twice. Shops are taxed for the wholesale purchase, and consumers are taxed on the resale on their repair bill. ABAC argued that this is inconsistent with a reasonable regulatory interpretation and years of industry practice and that the wholesale purchase should be considered a “sale for resale.”

6 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Furthermore, the association feels that the current interpretation of the law does not pertain to paint purchased in bulk due to the evolution if industry practices, and since the totals are billed to and taxed on each specific repair job, House Bill 5655 is consistent with the regulation’s original intent.

Ferraiolo explained, “We don’t purchase paint that way anymore, and we want them to change the legislation to encompass the modern way that collision repair facilities do business.”

A letter to ABAC from Thomas Valentino, CPA and Jeffrey Cheney, CPA concurs that the current law is outdated in regards to how modern collision repair facilities do business. In the 1970s, paint was purchased for specific cars, but because it is now mixed in the shop, it is being considered as a consumable item under the current interpretation of the law.

The letter explained, “When paint is mixed for a specific customer and applied to the body of the auto, it is not a consumable when the repair shop is charging the customer separately for that item on the invoice, which at times can be a large dollar amount. Keeping

in line with what appears to be the intent of the statue, it reasons to be that this paint mixture should fall within the meaning of paint being purchased specific to a car and therefore be purchased on resale. We believe the original intent of the statute was to differentiate between consumable paint used by the auto repair shop versus paint used to finish an auto specifically for a customer.

By meeting the other aspects of the statute, ie., separately stating the charge for customers, etc., we believe the auto repair business should be allowed to include its paint mixtures under this law, and the law should be rewritten to conform with current approaches to repairs without losing the intent of the law.”

Their letter concluded, “It appears the Department of Revenue Services would be collecting tax twice on the same item. The purchase of the product should be for resale by the auto repair shop so that the final consumer pays a tax just one time. We believe this is what was originally intended by the law, but the method by which this particular item is purchased and applied has changed over time, and the law needs to address these current circumstances.”

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 7

LIABRA Holds 14th Annual Golf Tournament Fundraiser

by Chasidy Rae Sisk

On September 16, the Long Island Auto Body Repairmen’s Association (LIABRA) held its 14th Annual Golf Tournament at the Baiting Hollow Country Club which features a long, open course and beautiful landscaping.

The comfortable 78 degree weather created the perfect atmosphere for a wonderful day of golfing for over 100 participants.

LIABRA golf fundraiser attendees participated in 18 holes of golf, which included competitions on the green

Sign-in and brunch on the patio began at 10AM, and then golfers were provided with a chance to warm up on the putting green and at the driving range.

At noon, a shotgun start announced the beginning of the four-person full scramble. Golfers enjoyed a variety of skills challenges on the green as well.

The lowest score was 64, achieved by the team comprised of Mike Padula, John Sherry, Cesare Purlo and Pat Napolitano. The women’s longest drive was achieved on the 9th hole by Lisa Dinicolis, while Tom Kehienbeck hit the longest drive for men, also on the 9th hole. Mike Hade won the award for closest to the pin on the 15th hole, and all of these skills challenge winners received gift certificates in recognition of their victories. Competition Infinity offered three hole-in-one prizes: a 2015 Q50S Infinity, a set of Ping irons and a $500 cash prize.

Throughout the tournament, volunteers sold raffle tickets, and each hole offered cold water and beverages to golfers. Golfers were treated to fresh Long Island clams on the half shell at the 17th hole, courtesy of Baiting Hollow Golf Course.

When the rounds concluded at 6PM, participants gathered in the club house for a cocktail hour and appetizers, followed by a buffet-style dinner.

During dinner, LIABRA held a chipping contest, awarding a cash prize to the player nearest the pin. Coffee and dessert were served after dinner as the raffle prize drawing took place with hundreds of prizes being distributed, and nearly everyone walked away a winner. One lucky golfer won a 32”

Newly Formed ASA-CT Opens 2015–16 Season

by Chasidy Rae Sisk

In September, ASA-CT reconvened after summer break to begin their 2015-16 meeting season for both their collision and mechanical divisions. Formerly known as the Connecticut Collision Repair Specialists, the association became an ASA affiliate earlier this year. Lisa Siembab, Executive Director for ASA-CT, says that both meetings enjoyed a great turnout.

On September 17, members of the Collision Division met at Ray’s CARSTAR in Bristol for Part 2 of an Estimatics workshop; Part 1 was hosted in the spring.

According to Siembab, “Members discussed the need for improved documentation on estimates. The importance of starting the process with a thorough disassembly was addressed—with the ultimate goal of lessening supplements. The open forum discussion was received very well by all attendees.”

The meeting also featured special guest Frank Pegnato from OE Connection who updated members on recent enhancements to the program.

Finally, ASA-CT announced a

value-added member benefit to attendees – the association will purchase copies of national quarterly surveys conducted by Collision Advice and CRASH Network regarding which insurance companies pay for specific repair procedures.

On September 30, ASA-CT hosted an informal Dinner Reception to welcome the Mechanical Division to the new ASA affiliate.

“Members discussed the challenges they face within the state, such as employee recruitment, availability of parts, educational opportunities and legislative issues,” Siembab recounted. “The shop owners all share a concern regarding consumer safety inspections of vehicles – it isn’t mandated in Connecticut anymore. Members agreed that this should be addressed for the consumers’ safety.”

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8 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

LED television, courtesy of LIABRA, and three collision center players won a four-day all-expenses-paid golf trip to Myrtle Beach, SC, courtesy of Donaldsons Subaru.

The LIABRA ladies pose for a photo while volunteering at the mid-September golf tournament fundraiser

Golfers referred to this year’s tournament as the best they’ve ever experienced, and Golf Committee Chairman Paul O’Connell has already begun planning LIABRA’s 2016 Golf Tournament.

LIABRA expressed gratitude to the participants, sponsors and volunteers who made this year’s event such a success.

The association will hold their October General Meeting on Tuesday, October 20 at 7PM at Levittown Ford in Hicksville, and LIABRA encourages members and industry professionals to attend this invaluable 2015 Ford Factory Aluminum Repair Workshop, presented by Ford Factory Engineers.

VW Fallout Continues, Recall Could Begin in January

Volkswagen continues to deal with falling sales after they were found cheating on emissions testing, as class action lawsuits from car owners are flooding in. Scott Hauser, a mechanic at Parotta’s Auto Repair in Agawam, MA, said, “It’s going to take a little while but I think it’s going to bounce back. I mean if it’s anything like my father, he loved diesels all his life.” Kelly Blue Book says the average resale value of Volkswagens with two-liter diesel engines is down 13% since mid-September when the company admitted to cheating on emissions tests using software installed on 11 million vehicles worldwide. The price of gas-fueled VW’s dropped 2% in the same period.

VW’s decline is unusually large, and people working in the automotive industry say it will take a lot for the company to gain drivers trust back.

Volkswagen has set aside $7.3 billion to pay for the scandal. VW’s new CEO Matthias Mueller says a recall could begin in January if all goes as planned, and all cars should be fixed by the end of 2016. A software update is expected to fix the problem, but some will need new injectors and catalyzers.

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 9

Chicopee, MA, Woman Sentenced for Role in Springfield Car Arsons, Person Who Lit Fire Not Identified

by Buffy Spencer, masslive.com

In 2014 the Springfield Arson & Bomb Squad was seeking the public’s help as it investigated the torching of a vehicle at an Indian Orchard, MA, car dealer in 2013. The squad released a surveillance video of the suspect at the scene.

The arsonist whose image was caught on the video has never been caught, but a 31-year-old Chicopee woman on September 14 plead guilty to six charges related to her role in the arson.

Kortnie Jarrell Oliver plead guilty to one count of burning a motor vehicle, one count of burning personal property, two counts of attempt to burn a motor vehicle, and a count each of assault and battery and intimidation of a witness.

The blaze at Orchard Auto Sales, of 1307 Worcester St., Indian Orchard, which destroyed a Jeep, was reported about 5:24 a.m. on Oct. 30, 2013.

Assistant District Attorney James M. Forsyth said it appeared the motive was to collect insurance on a Mercedes belonging to the mother of Patrick Oliver—Kortnie Oliver’s husband— which was in the shop for repairs.

But the vehicle destroyed by fire

was a Jeep Grand Cherokee, not the Mercedes belonging to his mother Patrick Oliver had been driving.

The arsonist tried to burn the Oliver car and several other vehiKortnie Oliver. cles, but only the Credit: masslive.com Jeep caught on fire, Forsyth said.

Although defense lawyer Daniel D. Kelly asked for a sentence of probation only, Hampden Superior Court Judge Richard J. Carey sentenced Oliver to six months in jail with 30 days to be served and the rest suspended with one year probation.

Forsyth had asked for a sentence of six months at the Western Massachusetts Regional Women’s Correctional Center in Chicopee followed by a year’s probation.

Kelly said Oliver had led an “overall law abiding life.” He said restitution was not possible because she is unemployed and that is not expected to change anytime soon.

The owners of the auto sales business, which rented space at the 1307 Worcester St. building, were co-

operating with police by providing the vehicles to police during the investigation, Forsyth said.

Kortnie Oliver struck the female owner because she (Oliver) could not get her and her husband’s car back because police had held it, Forsyth said.

He said Kortnie Oliver was the passenger in the car used the day of the arson, but the driver and the arsonist (not the driver) were not identified.

Forsyth said the video at 4:44 a.m. shows a person get out of a car and pour liquid over a Camry and a van. He lights a paper and throws it onto the Camry but nothing catches fire.

The arsonist leaves and gets in a black car, which goes to a gas station about a mile away. Kortnie Oliver gets out and puts $2 worth of gas in a container.

The man is then seen going back into the auto sales lot and pouring gasoline into the Mercedes belonging to Patrick Oliver’s mother and onto the nearby Jeep.

The video shows the Jeep fully engulfed and destroyed by fire, Forsyth said.

Autobody News thanks masslive.com for reprint permission.

Restoration Parts Unlimited, Acquires Corvette in PA

Restoration Parts Unlimited, Inc. (RPUI) announced on October 9 the acquisition of Corvette America.

Headquartered in Reedsville, Pennsylvania, Corvette America manufactures Corvette parts and accessories and joins the RPUI Group of companies that consists of Trim Parts, Parts Unlimited (PUI), SoffSeal, The Right Stuff Detailing, Mr. Mustang, and First Place Auto Products.

“The Corvette market is already an important part of our product range, so this was a natural extension of what we are already doing,” said Mitch Williams, president and CEO of RPUI. “As a group of restoration manufacturers, we felt that the Corvette needed more representation in our group.”

Corvette America will continue to be led by Dave Hall and the current management team. RPUI is sponsored by Dubin Clark & Company, Inc., a private investment firm headquartered in Boston, Massachusetts. Corvette America will be part of the Trim Parts/RPUI Booth #23775 during the SEMA show.

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10 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Carubba is Official Collision Repairer for Buffalo Bills

As of September 9, the Buffalo Bills announced that Carubba Collision will be their official auto collision repair center. The Carubba Collision of the Game in-game video feature will appear on the Ralph Wilson Stadium scoreboard during home games. It has been a staple during the Buffalo Sabres games for more than 30 years.

“Since its inception, Pegula Sports and Entertainment has welcomed us and our marketing concept with open arms. Today, we are excited to begin this new partnership with the Buffalo Bills,” said Joe and Sam Carubba, owners of Carubba Collision. “Our familyowned and operated company has been a part of the fabric of the community for 60 years. Our partnerships with both the Sabres and now the Bills will enhance our relationship with Buffalo sports fans.”

During each Bills home game, fans will have the opportunity to vote for the Carubba Collision of the Game by using the hashtag #CarubbaCollision on Twitter. Fans that use the hashtag will be automatically entered into a contest to win a pair of tickets to a Bills home game.

AASP/NJ Focuses on Aluminum for Sept. Meetings

The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) hosted two meetings at the end of September on aluminum repair. Dave Gruskos of Reliable Automotive Equipment, Inc., discussed what the future of the industry holds with the rapidly changing materials being used today and down the road.

“The association is always working to inform the local industry about topics that are important to our day-today business,” said AASP/NJ President Jeff McDowell. “Aluminum and its impact on how we as repairers work has been the dominant issue for over a year now, and a lot of people are having trouble finding the answers to their questions. By holding these meetings, we hope to get the confusion out of the air so we can move forward in the automotive repair field in New Jersey.”

“Everyone is wondering where the industry is headed,” said AASP/NJ Executive Director Charles Bryant.

“It’s similar to what happened when cars changed over to unibody. It was completely different than what was seen before, but we as an industry got through it. With aluminum, it was just timely to bring the information to those who need it so that we can progress.”

U.S. Justices Consider Baltimore Cop’s Kickback Conspiracy Appeal According to Reuters Report The U.S. Supreme Court considered whether federal prosecutors overstepped their authority when they charged a Baltimore police officer with conspiracy to extort for his role in a kickback scheme involving an auto repair shop.

Samuel Ocasio was one of several police officers who encouraged people involved in car accidents to get their vehicles fixed at Majestic Auto Repair Shop in Rosedale, a Baltimore suburb. In return, the shop owners, brothers Hernan Moreno and Edwin Mejia, paid the officers between $150 and $300 per referral.

After Ocasio was arrested in 2011, he was convicted of four charges, three of extortion and one of conspiracy, and sentenced to 18 months in prison. The two brothers pleaded guilty and testified at Ocasio’s trial.

The nine Supreme Court justices appeared divided as they debated whether Ocasio should have been convicted of the conspiracy charge. Ocasio’s lawyers say the legal definition of the crime does not cover payments or exchanges of property among co-conspirators. In Ocasio’s case, he received payments from the shop owners, who were part of the enterprise, not

from members of the public.

Justice Elena Kagan appeared to back the prosecutors, saying that “in the normal way that conspiracy law works, there is a conspiracy here.”

Other justices seemed to question whether the case against Ocasio was an example of a trend critics have described as “over-criminalization” in which prosecutors stretch the definition of criminal laws to secure more convictions.

Justice Stephen Breyer asked whether people could get prosecuted for apparently innocent conduct under the same theory the government used against Ocasio. Breyer said Ocasio was essentially asking the court: “Don’t make a bad situation worse.”

The National Association of Criminal Defense Attorneys said in court papers backing Ocasio that federal prosecutors interpret the extortion law in such a way that almost anyone accused of extortion could also charged with conspiracy.

The federal extortion law, known as the Hobbs Act, “has been transformed into a vague, expansive criminal statute with draconian penalties,” the association said.

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 11

After Fire and Storms, Mineola’s Olympos Auto Service in Mineola, NY, ‘Not Going Anywhere’

by Noah Manskar, theislandnow.com

Olympos Auto Service has weathered many storms in its 24 years in Mineola.

When a fire destroyed the original location at 449 Jericho Turnpike in August 2007, Mike Maragopoulos and his cousin George Monoyos got a new shop open just down the road, at 400 Jericho Turnpike, three months later.

When Superstorm Sandy hit in 2012, they closed their repair shop to make sure everyone who needed gasoline could get it.

When the Williston Times erroneously published a picture of the shop alongside two articles about a 7-Eleven store proposed for 400 E. Jericho Turnpike, several concerned customers called and asked why they were shutting their doors.

But those customers should not worry about Olympos, Maragopoulos said, because it’s not going anywhere.

Maragopoulos and Monoyos, natives of Astoria, Queens, have both loved cars since they were young.

Along with Monoyos’ brother, they opened their first auto repair shop in Floral Park in 1987.

Taking in people’s broken cars and fixing them gave them a sense of

satisfaction, Maragopoulos said.

“It felt good when a car came in the shop broken and we fixed it,” he said. “A car coming in with an issue and all of a sudden, we fixed it — it just makes you feel right.”

Mike Maragopoulos checks a tire at his Olympos Auto Service shop, located at 400 Jericho Turnpike. The shop is one of three he runs with his cousin, George Monoyos.

Credit: Noah Manskar

Maragopoulos and Monoyos expanded to Mineola in 1991, opening Olympos at the original 449 Jericho Turnpike location. Monoyos’ brother kept running the Floral Park location, but they had to sell it after he was diagnosed with ALS. They continued to expand, though, and they now have three repair shops in the village—two across the street from each other at 397 and 400 Jericho Turn-

pike, and a third at 263 E. Jericho Turnpike, which Monoyos runs.

Customer service is the top priority at every Olympos location, Maragopoulos said.

The shop offers warranties for all its services, and Maragopoulos allows customers to get work done on credit if they cannot afford to pay for it right away.

Even if they don’t pay him back on time, Maragopoulos said he would rather be sure his customers are satisfied and that their cars are safe.

“We make our customers feel like they’re family,” he said. “We friend our customers. We don’t want our customers to feel like we just want them for their business.”

Olympos’s online customer reviews are proof of this, Maragopoulos said.

After seeing a few lukewarm reviews on Yelp and Google two years ago, Maragopoulos partnered with review site SureCritic to survey his customers and get accurate, honest feedback.

Since starting Olympos’s SureCritic profile, the shop has garnered 469 reviews with an average of 4.9 stars out of five.

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Mineola has been very supportive of their business over the years and has become the cousins’ “home away from home,” Maragopoulos said.

They give back to the community by donating to local organizations, such as the fire department and the police auxiliary, sponsoring youth baseball teams. They have also hosted a Boy Scouts car wash fundraiser in the Olympos parking lot.

“It just makes us feel good, the community supporting us for all these years,” Maragopoulos said. “We don’t only take; we also give.”

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 13

Continued from Cover

Antitrust Claim

parts below ‘average variable cost’ and thereby designed to drive competition out of business.

The initial complaint, filed in October 2012, said the program, which requires dealerships to ‘sell OEM parts below dealer cost,’ is a violation of the Sherman Act, the Robinson-Patman Act (which prohibits anticompetitive pricing) as well as the Louisiana unfair trade practices and anti-trust laws. The suit alleged violations of federal and state antitrust and state consumer protection regulations.

Felder’s alleged that GM and original-equipment parts distributors such as All Star Automotive Group engaged in illegal “predatory pricing” practices to undercut aftermarket prices and drive aftermarket competitors out of business.

The U.S. Supreme Court declined to revive the suit accusing GM of trying to monopolize the collision parts market, rejecting the auto parts retailer’s argument that the Fifth Circuit considered the wrong factors when ruling on predatory pricing allegations.

Felders had told the original Mid-

dle District of Louisiana court that its income fell from a peak of about $3 million in 2008 (before the GM program began) to about $2 million because of GM’s program, which, it argued, could drive Felder’s out of business. But Felder’s also acknowledged to the Supreme Court that LKQ subsidiary Keystone has survived despite the GM competitive pressure.

GM originally gave the dealerships a rebate for the difference between cost and the reduced price charged the auto body shop and tacked on a 14% markup on the original price. GM’s parts normally cost more to consumers than aftermarket parts, but GM said that if All Star and others sold the parts for 33 percent less than their competitors, it would send them a rebate that amounted to a 14 percent profit.

Felder’s filed a petition based on the panel’s holding that a GM rebate for name-brand parts had to be considered when comparing its distributors’ prices to generic competitors’, not just day-of-sale pricing. The Fifth Circuit had already ruled that the rebate kept the transaction from falling below the supplier’s average variable cost and thus wasn’t predatory.

“This case presents a purely legal

14 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

issue for predatory pricing claims: whether cost … is measured at the point when the consumer’s participation in the transactions comes to an end, or can incorporate post-sale kickbacks from a conspiring supplier,” the petition states.

Felder’s attorneys urged the high court to rule that the appropriate boundary for determining pricing should be when the consumer transaction ends.

“If, at that point, the predatory competitor’s costs are below the price paid by the consumer, then that prong of a predatory pricing claim is satisfied,” it said. “The sale below cost destroys competition, the protection of which is the essence of the Sherman Act.” A Louisiana federal judge said in April that Felder’s failed to define the effective area of competition and didn’t actually allege below-cost pricing that met the Fifth Circuit’s standards. The retailer brought the suit before the Fifth Circuit, claiming that it had alleged specific Louisiana parishes and Mississippi counties in which it competes with All Star and that it had laid out GM’s alleged illegal scheme in detail.

In unanimously upholding the lower court dismissal, the three-judge Fifth Circuit panel ruled that the rebate should be considered as a ‘reduction in

All Star’s cost of acquiring the parts.’

“The rebate undoubtedly affects that bottom line for All Star by guaranteeing that it makes a profit on any Bump the Competition sale,” Circuit Judge Gregg J. Costa wrote in the opinion. “That undisputed fact resolves the case, as a firm that is selling at a short run profit-maximizing, or loss-minimizing, price is clearly not a predator.”

The Automotive Body Parts Association filed an amicus brief in support of Felder’s in May, arguing that the precedential decision will fetter competition nationwide. The association claimed its members will suffer if the ruling is allowed to stand because the decision created an “open ended” and “unclear” rule on how to evaluate predatory pricing claims and allows competitors and suppliers to conspire to eliminate competition without consequence.

“It is not merely competitors that are being eliminated by GM’s ‘Bump the Competition’ program. It is competition that is being eliminated,” the association said in its brief. “The economic harm petitioner is suffering is not limited to its specific geographic market. Rather, the harm is occurring nationwide.”

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 15

UTI Exton Campus Students Troubleshoot Cars Using Virtual Technology

by Pete Bannan, Daily Local News

Universal Technical Institute hosted the Bosch Xperience allowing students to experience interactive training through a state-of-the-art virtual learning experience.

Upper Uwchlan Universal Technical Institute’s (UTI) Exton campus students participated in a virtual workshop Thursday to troubleshoot a vehicle using virtual technology.

The opportunity included a virtual reality tour that involves step by step process of how the students could diagnosis a problem to see how to effectively solve the problem by electrically using tools and scanning the cars.

The workshop was held in a truck, referred to as a virtual garage, with all equipment provided by Bosch, an appliance manufacturer. The program was known as the “Bosch Xperience” which allowed the students to participate in interactive training through a state-of-theart virtual learning experience.

While in the virtual workshop, the students wore goggles and headsets to participate in the tour and the challenge of fixing the virtual cars. The concept of the program is to allow the students to work through a series of real-world

scenarios of vehicle problems that they may experience during their careers.

UTI instructor Steven Charsha said that because cars come to shops with an unknown problem, the technicians would need to listen to what the customers say are the complaints about the vehicle not working properly.

He said the students learned about new systems, how they work and then they apply what they learned to the cars used in class. The virtual program was another way for them to learn which tests to perform on the vehicle.

By a process of elimination, they could narrow down the likely causes of any issues. He said the innovative tools help the technicians with how modern cars have evolved.

Charsha said this program helps students to gain knowledge of the car systems and the STEM – science, technology, engineering and math – skills needed to use the new technology. The program at UTI is designed to help students who have no knowledge or general knowledge of the newer systems used for troubleshooting cars.

He noted the difficulty in the program. The instructors encouraged the students to participate in the class activities, listen carefully during lectures and then apply what they have learned when they perform the hands-on portion.

Toms River, NJ, Car Dealer Sentenced in Tax Scheme Acting Attorney General John J. Hoffman announced on October 16 that a used car dealer from Toms River was sentenced to state prison for collecting $156,564 in state sales tax from customers that he purposely failed to turn over to the State of New Jersey.

Gennaro Dicecilia, 58, of Toms River, was sentenced to three years in state prison by Superior Court Judge Timothy P. Lydon in Mercer County.

He pleaded guilty on July 14 to a second-degree charge of failure to turn over collected New Jersey sales tax.

He must pay restitution to the New Jersey Division of Taxation of $220,797, representing the sales tax he failed to remit, plus penalty and interest.

Dicecilia was charged in a Nov. 14, 2013 indictment stemming from an investigation by the Division of Taxation Office of Criminal Investigations and the Division of Criminal Justice.

In pleading guilty, Dicecilia the owner of Automotion LLC on Route 9 in Toms River, admitted that he collected $156,564 in sales tax from car buyers that he purposely failed to turn over to the State of New Jersey. In November 2011, the Division of Taxation was conducting a routine canvass of used car dealerships in Ocean County to identify dealerships that were not

properly registered or licensed. During the canvass, it was determined that Dicecilia had failed to file any sales tax returns or remit any sales tax for Automotion since the dealership opened in 2007. The Division of Taxation demanded payment of the dealership’s outstanding sales tax, and Dicecilia subsequently filed sales tax returns.

However, an audit by the Division of Taxation revealed that he deliberately hid information about the number of cars sold and the sales tax that he collected. Further investigation based on vehicle title transfer records kept by the New Jersey Motor Vehicle Commission determined that Dicecilia had collected $205,157 in sales tax, while he remitted only $48,593 during the civil audit.

“Even after the Division of Taxation confronted him about his failure to turn over sales tax, Dicecilia tried to deceive the state about how much he had collected,” said Acting Attorney General Hoffman. “We won’t tolerate dishonest merchants who defraud the State of New Jersey and its honest taxpayers.”

“Working with the Division of Taxation, we are aggressively targeting tax cheats,” said Director Elie Honig of the Division of Criminal Justice.

16 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

“They take what they learn and take it to the truck,” Charsha said the virtual workshop.

Students in the Automotive Technology program learn how to diagnose the problems, service and repair automobiles. The graduates of this program are qualified to work as entry-level service technicians in automotive dealer service departments and automotive repair facilities.

Bosch representative, Robert Esterbrook, assisted the students and discussed what they would see when they wore the goggles. He talked to the students after they worked on the cars to discuss how they knew which tests to perform and what the results meant.

UTI student Greg Moran of Barnegat, New Jersey said the virtual training was “very different” compared to using a computer. He said it was different to move the direction of your head rather using your hands in the virtual workshop. He said it was “hard to get a hang of” the concept instead of using a mouse to click the options on a computer program.

UTI student Dave Mullins of Newark, Delaware said the new technology helps with the newer cars that use computer systems. He said this system listed what the specs were supposed to be and showed what it actually was.

Normally the students would have to look up this information on the computer, he noted.

“It was a really good experience,” Mullins said.

They both said that they would love to participate in the virtual workshop again. They both said that they would have liked more time to use the newer technology in the workshop, including more time to get used to how to use the technology without using their hands.

Students were rewarded with prizes if they fixed the most vehicles in the fastest time by correctly identifying and solving the problem. During the repair process, students identified faults. This experience helped students to learn how to troubleshoot vehicles for repairs and to follow the proper procedures to do so.

Students were also able to participate in a hands-on clinic that focuses on new technologies in the automotive industry, such as gasoline direction injection (GDI), start-stop, diesel systems and braking.

Universal Technical Institute Caption: Universal Technical Institute student Caleb Coldiron of Elisabethtown takes part in the Bosch Xperience allowing students to experience interactive training through a state-of-the-art virtual learning experience.

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CARSTAR in Bristol, CT, Supports Breast Cancer Research

During breast cancer awareness month, CARSTAR Ray’s Auto Body is sponsoring a “Sign the Beetle Campaign” to raise money and awareness for the Susan G. Komen foundation. With every vehicle the shop repairs throughout the entire month of October, a donation will be made by CARSTAR Ray’s in each customer’s name. In addition, every customer will sign the shop’s promotional pink vintage Volkswagen Beetle. The retro Beetle is custom painted in a rubberized Plasti Dip® coating to represent the signature pink color for breast cancer awareness. “Our goal is to have the entire car covered in signatures,” said shop manager Michael Ferrucci. “We hope the pink Beetle will draw a lot of attention to Breast Cancer Awareness Month, and look forward to making a donation on behalf of our customers.” Open donations will also be accepted throughout the month of October at CARSTAR Ray’s Auto Body, located at 137 Terryville Road, Bristol, CT, 06010. People are also invited to help cover the ENTIRE beetle from top to bottom in support of Breast Cancer Awareness and put a big “DENT” in the rising costs of treating breast cancer!

Urethane Supply Hires New Instructors for I-CAR Course & New Sales Rep in NE

Urethane Supply Company announced three new instructors for its I-CAR® Industry Training Alliance® course on plastic repair as well as a new full-time sales representative in the Northeast.

Urethane Supply Company hired three new instructors for its I-CAR Industry Training Alliance course. (l to r) Adam Fulton, Kurt Zimmerman and Ray Cahill

“Introduction to Nitrogen Plastic Welding” is a three-hour course delivered in the customer’s shop for up to three technicians. Each technician receives hands-on training with five common bumper repair scenarios, including on thermoset polyurethane, a.k.a. the “yellow plastic.”

Kurt Zimmerman and Ray Cahill, both of Upstate Auto Body Warehouse of Rochester, NY, and Adam Fulton of BASF Body Shop Mall of Toronto, Ontario, were all trained to provide the course in September. Zimmerman will cover eastern upstate NY and VT, while Cahill will cover western up-

18 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

state NY. Zimmerman and Cahill each have over 25 years of experience in the industry as technical reps for Upstate Auto Body Warehouse.

Fulton is a new technical rep for BASF and has over a decade of experience in the body shop as a technician and painter. He will cover the greater Toronto area from his home base of Grafton, ON. “Technician training on the nitrogen plastic welding system has been a recent challenge for the company and this I-CAR Industry Training Alliance initiative is a big part of the company’s efforts to meet the demand,” said Kurt Lammon, president of Urethane Supply Company.” The company is actively seeking other instructors across the country to deliver this new course in shops.

Michael Koren is the company’s new full-time sales representative in Virginia, Maryland, Delaware, Pennsylvania, New Jersey and New York.

He will expand his territory into the New England states in the near future.

Koren has over 35 years of experience in the automotive collision repair industry, mainly in aftermarket parts.

His experience includes domestic and international purchasing, financial reporting, profitability analysis, resource and facilities management, sales and

marketing management, freight and transportation operations and multi-site operations management.

“With extensive knowledge of managing plastic bumper recycling facilities for 25 years, Michael has a strong understanding of what it takes to produce high-quality recycled plastic bumpers with a strong focus on providing premium service to the coMike Koren, llision repair shops,” Urethane Supply said Lammon.

Company’s new “Koren recently full-time company received factory sales representative training on Urethain Northeast U.S. ne Supply’s I-CAR Industry Training Alliance course and is ready and able to provide that training across his territory,” said Lammon.

Warehouse distributors and jobbers in Koren’s territory can call him at 732580-7921 for support.

In business since 1981, Urethane Supply Company has focused exclusively on plastic repair and refinishing products.

Their airless and hot-nitrogen welders are industry standards for automotive plastic repair across North America.

Questions? Contact Kurt Lammon at 800-633-3047

Safeco, had a State Farm agent on the premise helping to assess vehicles.

“You have to press a little bit more,” said Santoro. “Instead of getting “Half of the road I live on was off work at 6 pm, you have to work till washed away,” he said. “The state is 7 pm. You come in at 8 am instead of saying it may not be restored until 8:30 am; we got to get the vehicles March or April.” done and get them out. These people When we spoke with Santoro on need their cars back and get back to the October 8, the shop was waiting to get rhythm of their lives.” claims processed for the flood damHe said he can’t put a number on aged vehicles. how long it will take for the Palmetto State to make a full recovery, but it’s safe to say things won’t be back to normal for a while.

“The State of South Carolina is doing the best they can,” said Santoro. “About 300 roads have been washed out; right now it’s important to get the infrastructure together in the city; without infrastructure, people can’t get to us to get Cars are stranded in the floodwaters in Columbia, S.C. their vehicles fixed.” on Monday, Oct. 5, 2015 Santoro owned a repair shop “We have about seven to eight in New York for 25 years, so he is no vehicles here that we are working on stranger to weather or how unforgiv[post flood], but we also have our own ing Mother Nature can be. work that we had in before the flood“Predicting weather is not an ing started,” he added. exact science, but we were warned that Caliber Collision, which is a DRP there would be flooding of epic profor State Farm, Liberty Mutual, and portions,” he said. “Some took those

Continued from Cover

SC Flooding

warnings with a grain of salt, others took them to heart. The ones who took them to heart are the ones who are doing okay.”

Santoro said there were barricades all over the city.

Credit: @chrys_z/instagram

“Right now it’s like a mouse in a maze,” he said. “You’re trying to get him in one end and out the other.”

Santoro said if there is one thing South Carolina residents can take away from this natural disaster, it’s to “listen; heed the warning.”

Broad River Paint & Body Shop, also in Columbia, reported no damage. Despite the fact that most of the staff was unable to make it to work, they stayed open during the hurricane,

and were able to repair a few wrecked vehicles.

St. Andrews Express Body Shop reported no damage to the shop itself.

However, the vehicles that did come in went straight to salvage due to water rising all the way up to the dashboard.

Jimmy Rivers at Used Foreign Car and Summit Collision Ctr Inc. reported no damage.

Autobody News also reached out for comment to State Farm’s South Carolina media representative, Justin Tomczak, who submitted the following statement: “Body shops and car dealerships can expect State Farm to deliver the highest level of service to our customers as we help South Carolina recover from this event. State Farm has deployed estimating and claim handling resources to deliver the highest level of service to our customers as we help South Carolina recover from this event. State Farm agents, agent’s staff, and local employees are also helping customers as we begin the recovery from this event.”

For more information on state road conditions, or other vehicle-related inquiries, please call 1-855-4672368, or visit www.scdot.org.

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 19

ABAC Quarterly Membership Meeting Attracts Over 120 Attendees

by Chasidy Rae Sisk

On September 15, the Auto Body Association of Connecticut (ABAC) held their Quarterly Membership/Educational seminar at the Country House Restaurant, drawing over 120 collision repair industry professionals for an evening of powerful informaTony Ferraiolo tion and educational training. President Tony Ferraiolo started the evening by expressing gratitude to attendees and sponsors for their interest and continued support of the association.

The first speaker of the evening was Dave Kapitulik, Educational Consultant for Transportation Technologies for the Connecticut Technical High School System. As overseer for the state’s automotive programs, he reported that all 18 technical highschools in Connecticut provide automotive technology repair programs, but only Dave Kapitulik half offer collision repair training programs. While 1000 students are learning automotive mechan-

ics, only 450 are learning collision repair.

Leaving shop owners with contact information for all 18 technical schools, he warned, “Not all of these students will want to stay in the trade, and not all if them will want to go into the trade after graduation. You will need to find those who really have a passion for cars, really have a passion for the industry.”

Kapitulik also encouraged attendees to get involved with the Technical Training Advisory CommiJohn Parese ttee (TTAC) established at each trade school. These committees seek interaction and advice from participating industry professionals in regards to curriculum, proper training and tool/equipment purchases at their semiannual meetings. Although several attendees are already engaged with TTAC, Kapitulik stayed to answer questions and is available at 860-807-2090 for those requesting additional information.

Next, ABAC’s Legal Counsel John Parese summarized the Hartford Lawsuit decision recently made by the Supreme Court.

Ferraiolo noted, “The review was informative and gave a great example of why the ABAC board encourages as much participation as possible at the quarterly

20 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

meetings. There’s no substitute for hearing something like this firsthand and knowing what you, as a shop owner, need to know going forward.” Although he was not an attorney on the Hartford case, Parese lingered to answer attendees’ questions.

After reminding everyone to keep copies of the “Conduct of a Motor Vehicle Physical Damage Appraiser” in their shops and stressing the importance of consumer protection laws, Ferraiolo introduced the evening’s main presenters: Jeff Shaw, GM Wholesale Specialist, and George Tuchman, GM Service TrainerWholesale. Their presentation was sponsored by Richard Chevrolet and facilitated

by Parts Manager Ron Vernick.

Shaw began his presentation on RepairLink, a VIN-driven solution offered through Richard Chevrolet and GM that provides accurate, up-to-date parts information and replicas of the exact illustrations dealers use.

Ferraiolo recaps, “It gives you, the collision shop, the ability to get retail prices, along with your price, at participatJeff Shaw ing dealers. There is no cost to the collision shop since the participating dealer incurs the expense of the program. It allows you the opportunity to schedule your time better so you

can use it when you want or need to.”

Tuchman followed Shaw with a discussion on the specifications and repair procedures for replacing structural body components on 2014-2015 vehicles. He warned of the safety ramifications associated with improper repairs, discussed different metal /steel construction, and touched on the challenges of acquiring the proper George Tuchman repair equipment.

Shaw also provided information on proper mounting requirements for frame and unibody repairs, how to correct OEM service information and welding/cutting updates.

ABAC is grateful for the support of the meeting’s sponsors: Richard Chevrolet, Enterprise Rent-a-Car and Albert Kemperle, Inc. Ferraiolo also welcomed new association members Harte Infinity and Middletown Nissan, and he thanked new ABAC News Advertisers Jackson Chevrolet, Gates GMC, Buick and Nissan, and Tasca Dodge-Chrysler, Jeep, Buick, Chevrolet, GMC, Nissan and Hino Trucks.

ABAC remains at the forefront in providing members with educational information and state laws to help show owners and protect consumers. Their next meeting will be held in November in Groton, CT.

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CARSTAR Expands in PA by Converting Fred Beans Dealership Locations, Refurbishes Vehicle for Veteran in MA During the end of September and month of October, CARSTAR added five collision repair centers to its Philadelphia market and donated a vehicle to a veteran in MA. The MSO converted five Fred Beans Family of Dealerships locations.

It will eventually expand the CARSTAR network to nearly 15 locations in the Philadelphia region.

Mr. Gonzales receiving the key to his 2004 Honda Accord. (l to r): Steven Gonzales, U.S. Navy Veteran; Linda Sulkala of the National Auto Body Council; John Person of Veterans Inc.; and Bob Waldron of CARSTAR Thomas Waldron Auto Body

From CARSTAR’s proprietary EDGE Performance Groups to extensive Operations training, technology solutions and platforms, branding and marketing programs and experienced operational support, Fred Beans can now focus on future growth with a more efficient operations and business model. “We are excited to be part of the

strongest franchised collision network in our industry,” said Beans.

“We have seen how CARSTAR is outpacing the industry in same store sales growth. We also know that stron-ger relationships with insurance partners and the ability to stay up to date with the latest trends in the industry will help to build a better collision repair experience for our customers.” The new CAR-STAR locations can be found at the following Fred Beans dealerships: CARSTAR Fred Beans Doylestown – 1100 Airport Blvd, Doylestown, PA 18902 CARSTAR Fred Beans Boyertown – 525 Route 100 N., Boyertown, PA 19512 CARSTAR Fred Beans Flemington – 172 U.S. Hwy 202, Flemington, NJ 08822 CARSTAR McCafferty Mechanicsburg – 6320 Carlisle Pike, Mechanicsburg, PA 17050 CARSTAR McCafferty Langhorne – 1939 E. Lincoln Hwy, Langhorne, PA 19047 “We are seeing a growing trend of car dealerships aligning their body shops with MSOs like CARSTAR,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “Many multi-location dealerships are consolidating their vehicle repair centers for efficiency. We can help them maintain

training, OEM certifications and the high levels of customer service expected in today’s collision industry.

And, we can provide the resources and best practices to help them deliver bestin-class KPIs.” Beans entered the dealership business in 1972, and by 1975 had opened is first location. All three of his daughters hold important positions within the company, and customers and employees alike agree that the entire organization feels like one big happy family, according to a CARSTAR press release.

United States Navy veteran, Steven Gonzales, received his very own vehicle on October 9, thanks to a collaborative effort from the NABC Recycled Rides program and CARSTAR Thomas Waldron Auto Body in Worcester, MA. Gonzales is also working toward a Manufacturing Tech Associate’s Degree at Quinisgamond Community College in Worcester and is the Treasurer of the Veterans Club at Quinisgamond Community College.

The 2004 Honda Accord was donated by Esurance. Gonzales was selected to receive the vehicle by Veterans Inc., a 501(c)3 non-profit serving veterans in need and their families.

“Today’s Recycled Rides event again demonstrated that the recipient is not the only one affected by this program,” said Linda Sulkala, Recycled Rides Program

Manager for the National Auto Body Council. “This is a life-changing experience for everyone who participates or contributes to the vehicle donation. We are very proud that through our Recycled Rides program, members of the National Auto Body Council demonstrate the professionalism and integrity of our collision repair industry by providing many struggling families with the keys they need to help improve their quality of life. It is especially gratifying to have the opportunity to give back to a veteran as we did today.”

“We were glad participate in today’s program. Many people put a great deal of time and effort into making this happen, and I’m just glad that we were able to be a part of it and make a positive change in a veteran’s life,” said Bob Waldron, owner of Thomas Waldron Auto Body CARTSAR. “Veterans Inc. is deeply grateful to the National Auto Body Council, Thomas Waldron CARSTAR, Esurance, and all of the businesses and employees that made this vehicle donation a reality,” said John Person, Director of Operations for Veterans Inc. and head of the organization’s Vehicles for Veterans Committee. “We work with so many deserving veterans who are working hard to get back on their feet, and to be able to provide them with a vehicle to help out as they pursue higher education and careers make a difference that can’t be put into words.”

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MA Auto Emissions Inspector and Service Station Sued for Conducting Fraudulent Vehicle Inspections

A Newburyport motor vehicle inspector and a service station have been sued for allegedly issuing passing inspection certificates to motor vehicles that underwent fraudulent emissions inspections.

According to the complaint, filed October 1, Randy L. Currie of West Newbury allegedly conducted at least eight fraudulent inspections of cars that were subject to on-board diagnostic tests (OBD) at Compass Autoworks, a licensed inspection station owned by R L Currie Corp.

During an OBD test, an inspector downloads the engine and emissions control data to a computer to be analyzed.

“Service stations and their hired vehicle inspectors must realize that they cannot ignore critical laws that protect public health and our environment,” AG Healey said. “Our office will aggressively pursue those who fail to comply with the Massachusetts Enhanced Emissions and Safety Test Program designed to protect people from these illegal practices.”

“Promoting clean air for all citizens includes enforcing the important laws related to vehicle emission testing,” said Commissioner Martin Suuberg of the Massachusetts Department of Environmental Protection (MassDEP). “MassDEP will continue to investigate those who engage in deceptive practices that result in unfair competitive advantage, illegal profit and that intentionally avoid accurate emissions detection.”

According to the complaint, for each of the fraudulent inspections, the defendant conducted a test on a substitute motor vehicle that he knew would pass and then used the results to issue passing inspection stickers to different vehicles.

This illegal practice is known as “clean scanning.” The Currie case is one in a series of closely coordinated inter-agency phony emission sticker cases that have been identified and developed by the Environmental Strike Force of the MassDEP, working in tandem with the Department’s

Vehicle Inspection and Maintenance program, and officials from the Registry of Motor Vehicles.

The lawsuit also alleges that Currie conducted at least 40 fraudulent emissions inspections of heavy-duty diesel powered vehicles (weighing more than 10,000-pounds) at R L Currie Corp.’s Truck Fixer station that were subject to a smoke opacity test because they are not equipped with an OBD system. The smoke opacity test, which measures the density of black smoke in a vehicle’s exhaust, is administered in accordance with MassDEP regulatory guidelines under the Massachusetts Clean Air Act. These guidelines establish standards for smoke opacity levels that a vehicle must not exceed to pass the inspection.

According to the complaint, the defendants used three different illegal methods to falsify passing results for the vehicles. They then used the fraudulent results to print out and issue passing inspection stickers to the vehicle that was subject to the inspection when it was in fact not properly inspected.

Diesel engines emit a toxic mix of pollutants, causing adverse health impacts, such as asthma, increased risk for cardiovascular disease, increased emergency room visits, birth defects, premature births, and other respiratory illnesses.

The lawsuit seeks civil penalties up to $25,000 per violation of the Massachusetts Clean Air Act, and civil penalties up to $5,000 per violation of the Massachusetts Regulation of Business Practices Consumer Protection Act. In addition to these violations, the complaint alleges that R L Currie Corp. violated the Massachusetts Hazardous Waste Management Act by failing to register with the MassDEP as a “large quantity generator” of waste oil, illegally transporting hazardous waste, and failing to comply with several safety storage requirements. The complaint seeks civil penalties up to $25,000 for each of these violations.

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State Farm Surveys Teens About What Would Stop Them from Texting While Driving

In observance of National Teen Driver Safety Week, State Farm released the results of a recent survey of young drivers ages 16-19. The focus of the survey was to learn more about their attitudes and behaviors when it comes to distracted driving.

The survey revealed that nearly all teens, over 90 percent, say they understand texting while driving is distracting, yet 44 percent say they do it. When asked to choose the top three things that would deter them from reading or responding to text messages, concern about crashing was the number one answer (51 percent), followed closely by getting caught by police (50 percent).

Besides texting, teens reported searching for music, interacting with a navigation system/GPS, talking with passengers while behind the wheel and other activities that could potentially divert a young driver’s attention away from the road.

“As nearly all teenage drivers now own smartphones, we must continue our work to understand and address the wide array of distractions that young people face,” said Chris Mullen, director of technology research at State Farm.

The State Farm survey revealed that distracting behaviors become more

common among older teens, with those ages 18-19 much more likely than those ages 16-17 to report participating in the activities listed in this study.

Driving situations can play an important role in teen drivers’ decisions to participate in cellphone-related distracted driving behaviors that involve looking at the cellphone and interacting with the screen and/or buttons.

Sixty-seven percent of teen drivers who use their cellphone while driving reported that being stopped at a red light makes them more likely to use their cellphone compared to when the vehicle is in motion.

Three-quarters of teens said they were less likely to use their cellphone when adult passengers were in their vehicle compared to 58 percent who were less likely to use their phone when other teens were present.

At least two-thirds of teen drivers reported being “a lot less likely” to use their cellphone when driving in poor weather conditions such as rain, fog, snow, or ice.

A copy of the full report, and infographic and other resources can be found at: http://www.multivu.com/ players/English/7292859-state-farmdistracted-driving-teens/

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‘All is Not Lost’ in Judge’s Dismissal of FL Collision Repairer’s Lawsuits

Barrett Smith of Auto Damage Experts, Inc. (ADE) shared his thoughts regarding the news of the Florida’s Court dismissing the collision repairer’s Multi-District Lawsuit against dozens of insurers: “While this is certainly not the news that many quality-minded repairers were hoping for, it may not be a total ‘defeat’ or ‘the end’ as some may suggest or believe. There are still remedies that plaintiff counsel will likely pursue to keep the litigation alive, and even if not, the insurer’s less than appropriate activities have been exposed and more and more state legislators across the country are watching and listening. More importantly perhaps, consumers are being educated.

Unfortunately, what may appear to be a set-back for the collision repair industry will no doubt provide some claims-people the incentive to conduct themselves even more aggressively and egregiously in their day to day dealings with consumers and body repairers under the guise of reducing claims costs.”

Smith was asked: For what many see as potentially devastating, you

seem to be fairly optimistic. Do you not see this as a defeat for the collision repair industry?

“No,” said Smith. “I see this as an opportunity for repairers! This recent news merely illustrates that it is time that quality-minded repairers and the industry at large stop waiting, hoping and relying upon others to fix their problems.

“It’s time for repairers to seek methods of conducting business in a more effective manner, that not only better edifies and serves their true customers, but also properly addresses the many liabilities often associated in the business of collision repair. Repairers need to begin shifting avoidable liabilities to those they belong... unless of course the repairer is properly and fully compensated to accept them.”

Smith went on to state, “The following recent comment from an independent shop owner sums up one of the problems collision repairers have.”

“We have to show documentation and proof that they owe us for procedures, and all they have to do is say, ‘We don’t pay for that and no one else

26 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

asks for it.’”

“Of course the comment is in reference to insurers and while the insurer owes the repairer nothing...who is explaining the issues and the refusal of payment, the potential outcome and associated liabilities to the consumer... their true customer?

“It’s imperative for quality-minded repairers to understand that when a repair involves insurance it is the consumer’s claim and repair professionals should be there; not only to offer and perform quality repairs, but also to properly inform and educate their customer when that level of repair cannot be met.

“Whether it is due to the consumer’s desire to save money and/or a result of the failures and/or denials of involved third-parties, consumers have a right to know and repair professionals have a professional duty and moral obligation to advise them.

In some states, such as Florida, the repairer is legally obligated to get permission from the customer to perform a repair in a manner that do not meet the original manufacturers’ (OEM) specifications! This could in-

volve procedures, parts and materials,” Smith stated.

When asked: So what are repairers to do? Smith responded: “Repairers need to adopt and employ proven business activities such as marketing, branding and educating their community members to pro-actively combat and nullify the thirdparty’s efforts to steer. Simply stated, those who would steer against you must be viewed and dealt with as direct competitors. Our ADE Coaching/Consulting clients have learned how to properly position themselves as to edify and empower their customers to combat insurer refusals and short-pays.

Even those who have DRP relationships are using the systems to increase profitability. Many ADE clients have found it beneficial to divest themselves from such referral programs altogether.

“All across the country there are numerous repairers who are learning to successfully implement key philosophies, processes and procedures and doing so with great success!”

Smith continued, “Each of these quality-minded shop owners has taken

back control of their businesses while providing the utmost in service and quality and generating greater sales through referrals of satisfied clients; all the while enjoying greater profit margins and perhaps most importantly... once again enjoying what they do.

“It’s not rocket science” Smith goes on to say, “and most any honest and ethically-minded repairer can master it and do so at their-own pace.

“The sky has not fallen...unless of course you believe all hope is lost... and those who would believe that... than they would probably be right!

“Generally speaking, collision repairers are a tough breed and fiercely independent and ‘when the going gets tough’ they’ll find a way, not merely to cope, but to use it to their advantage.”

‘The More the Merrier!’ The more repairers who adopt such management philosophies and ‘get it,’ the easier it will be for others in their marketplace to get on-board and the more accountability will be placed on those who don’t. If they are not part of the solution, they may very well become part of the problem!”

As Benjamin Franklin once stated, “If we don’t hang together, by Heavens,

we shall hang separately.”

“I believe things happen for a good reason,” Smith stated. “We merely need to seek the opportunities that situations offer us, and as the old saying goes: “When given lemons...make lemonade!”

“Regardless of the ultimate outcome of the litigation, my hope is that repairers realize that there will be no ‘White Knight’ riding in to save the day and that any positive change will be up to them, individually...which hopefully will one day turn collectively.”

For more information, contact Barrett Smith, AAM and president and founder of Auto Damage Experts, Inc. Barrett @AutoDamageExperts.com or (813) 657-6705

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Equalizer Distributor Pilkington Holds Customer Appreciation Event in San Diego

Pilkington North America manufactures and markets glass and glazing products for the architectural and automotive markets. The company held a customer appreciation event in September.

During the event, Pilkington set-up tables for auto glass industry vendors to showcase their current products. Pilkington’s customers in San Diego and sur-

Shauna Davis of Equalizer removed a windshield on a 2014 Chevy Malibu using the company’s latest cut out tool, the Viper

rounding areas had the opportunity to visit each table and interact with vendors.

Pilkington brought in a caterer for dinner, and three vendors conducted live demonstrations. Shauna Davis with Equalizer Auto Glass Tools, removed a windshield without damage to the car or glass on a 2014 Chevy Malibu using Equalizer’s latest cut-out tool, the Viper.

Lisa Deuster, with Lil-Buddy,

performed a demonstration of their oneman setting device, Lil-Buddy Pro. Aegis’, Mark Daniels, also performed a demonstration on Aegis’ one-man setting device, the SOLO Neo. To conclude the event, Pilkington chose the winning customer tickets for the door prizes that were donated. Door prizes consisted of tools, adhesive, gift cards, and a big screen television.

Equalizer was founded by a single auto glass tool invention from Ray Asbery in 1987. “To date, we now have more than 1,000 products that make a technician’s job easier,” said Davis. The company has also coordinated a great inventors program that allows technicians to design tools that Equalizer can bring to market. Davis said that Equalizer is always working on new products, and recently brought to market an updated reusable Cord, RipCord, to be used with the company’s Viper Cut Out Tool. Other products include a Ford backseat release tool, and new square wire that, like the RipCord, is also strong enough to cut the factory setting clips.

For more information on Equalizer products, visit www.equalizer.com or contact Shauna Davis: Sales@equalizer .com or 800-334-1334. To contact Pilkington, visit: www.pilkington.com or call 614-801-5900.

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 27

they were dismissed “with prejuidice,” meaning they cannot be refiled as they were before.

“Based upon a review of the pleadings in this and the other 20-odd cases… the Court finds that giving the Plaintiffs another opportunity to state a claim would be an exercise in futility,” Judge Presnell wrote in the most recent court document.

Eaves said the silver lining is that they will get more clarification from the appellate judge on the other issues of law.

The first step is to file a motion to reconsider, which Eaves said will be done in 10 days. Then the law firm will have 30 days to file a notice that they will appeal, which will most likely take a year.

In the meantime, Eaves Law Firm has submitted amended complaints for the first six lawsuits that were filed, including Florida, Indiana, Louisiana, Mississippi, Tennessee and Utah. (Autobody News will share details about the amended complaints in a followup article) “We think the judge is mistaken, especially about tortious interference, so we are appealing that ruling,” said Eaves.

Continued from Cover

Case Dismissed

ing this as a delay in the process.”

The Florida lawsuit, including 20 auto repair shops and 39 insurance companies, was filed February 24, 2014. It was the first action filed in the Multi-District Lawsuit, which grew to include two dozen lawsuits and were consolidated for pretrial purposes.

In the case, the Plaintiffs allege that the Defendants, “engaged in an ongoing, concerted and combined intentional course of action and conduct to improperly and illegally control and depress automobile damage repair costs to the detriment of the Plaintiffs and the substantial profit of the Defendants.”

The Plaintiffs also assert that the Defendants engaged in price fixing, compulsory use of substandard parts and boycotting shops that refuse to comply.

Eaves Law Firm filed a Second Amended Complaint Feb. 11, 2015, alleging price fixing in violation of the Sherman Act, boycott in violation of the Sherman Act, tortious interference with business relations, and quantum meruit.

This is the third time the claims were dismissed; however, this time

Tortious interference occurs when a person intentionally damages the plaintiff’s contractual or other business relationship.

According to court documents, “Tortious interference may be justified where the interfering defendant is not a stranger to the business relationship with which it is interfering…

The defendants in this case were not strangers to any business relationships between their insureds and auto repair shops, as the defendants would be paying for the repairs to be performed.

In court documents, Judge Presnell wrote that the plaintiffs relied on the same incidents as demonstrating that the defendants were engaging in a boycott. “However, those incidents are not sufficient to state a claim for tortious interference with a business relationship,” he said.

Another claim involved quantum meruit. Quantum meruit refers to a reasonable sum of money to be paid for services rendered or work done when the amount due is not stipulated in a legally enforceable contract.

Judge Presnell dismissed the claim for quantum meruit, saying “One person should not benefit from the work efforts

of another under circumstances where the person doing the work has the reasonable expectation of being paid by the person benefitted, and the person benefitted has a reasonable expectation of paying for the work.”

He added that, “With foreknowledge of the amounts the Defendants were willing to pay, the Plaintiffs could not have had a reasonable expectation of receiving more.”

Eaves said, “We think that shops have the right to get paid for work and have a reasonable expectation to get paid for work that they do.”

The law firm encourages all shops, whether or not they are involved in the lawsuit, to send evidence for the case.

“This industry didn’t get in this shape overnight and it won’t get out of it overnight,” said Eaves.

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CAA Lobbyist Jack Molodanof to Speak at SEMA 2015

by Ed Attanasio

Body shop owners and managers wear a lot of hats, including those normally worn by psychiatrists, motivational speakers, teachers, mentors, financial planners and a whole wide range of other professional roles. But one thing that body shop people will agree on is that they surely are not lawyers and don’t want to be.

With laws that affect the collision industry changing all the time, an experienced, savvy attorney with a background in defending body shop owners and helping them to adhere to the varied laws that impact them every day is instrumental.

Jack Molodanof, a California attorney and lobbyist who has distinguished himself in areas of automotive legislative and regulatory law over that past 30 years, will be speaking at this year’s SEMA show as part of the SCRS Repair Driven Education Series on Friday, November 6 from 9:30 a.m. to California attorney 11:30 a.m. in the and lobbyist Jack Las Vegas ConvenMolodanof will tion Center’s Upper speak at SEMA on Friday, November 6 North Hall, room N233. The title of this California-specific seminar is “Protect Your Business from Fines and Disciplinary Actions by the CA Bureau of Automotive Repair.”

Molodanof is the go-to lawyer/ lobbyist in California for the automotive repair industry and represents several statewide automotive associations, including the California Autobody Association (CAA) and Automotive Service Councils of California (ASCCA).

Molodanof also serves on the California Bureau of Automotive Repair (BAR) Advisory Group, which provides input on BAR programs.

Although he is a veteran of the SEMA show, this will be Malodanof’s first presentation. “It’s an honor to be invited and I’m excited to be able to offering this two-hour class,” he said.

“It is designed to educate, inform and provide California auto body repair shops with an overview of the Bureau of Automotive Repair (BAR), and a working knowledge of BAR laws and regulations. It will help you figure out if you are following BAR requirements that apply to your business. It also covers other important auto body laws and requirements that shops need to know.”

Molodanof’s seminar is geared for California body shop owners, managers and estimators who work with customers one-on-one, prepare estimates, invoices and obtain authorizations. However, auto body shops in other states may also benefit by best practices and what may becoming to their state soon. It will cover the basic laws/rules and best practices necessary for BAR compliance, so that you won’t be cited or worse fined by the BAR or any other regulating organization.

Molodanof said he will clear up a wide range of misconceptions about the BAR and how it operates. “Unfortunately, many of the automotive repair software programs available in the market were designed by computer/software people, not necessarily car guys,” he explained. “Compounding the problem is the fact that these software programs were not specially designed to comply or address the multiple nuances of California's complex BAR laws and regulations.”

The takeaways from Molodanof’s seminar will allow body shops to stay on the good side of the law and stay off the BAR’s radar, something no shop ever wants.

“After this seminar, body shop professionals should be more informed as to whether their current business

practices, documentation and procedures are BAR compliant and have a better sense of the risks they face with regard to disciplinary actions and measures necessary to achieve and maintain effective compliance,” Molodanof said.

“Ignorance of the law is never a suitable excuse and information is empowering, so we will be providing answers and solutions that shops will be able to use almost immediately.”

Although the seminar will deal specifically with California laws and regulations, Molodanof said that the information imparted can be useful to shops in other states.

“California seems to lead the way when it comes to new laws and regulations directly affecting the collision industry. If there is a new law or proposed regulation in California, you can be certain that other states will at least take a look at them at some point.

Much of what I will be teaching in this seminar will apply to body shops all over the country, so we’re hoping to see some non-California people in the class on Nov. 6.”

Aaron Schulenburg, the executive director of SCRS, sees real value

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Larry Roesel to Retire as Sr. VP at Autozone

AutoZone, Inc. announced that Larry Roesel, Senior Vice President, Commercial, Customer Satisfaction has made the decision to retire from AutoZone later this fall. Larry joined AutoZone in 2007 and has been a key contributor in designing and building the Commercial business at AutoZone.

Under Larry's leadership, AutoZone's Commercial business has grown from $700 million to $1.8 billion. "It's been a

fantastic experience over the past 8 1/2 years," said Roesel. "AutoZone is truly a unique and incredible organization driven by our strong 'Customers First' culture, exceptional leadership and the dedication and passion our 80,000 AutoZoners demonstrate every day. I'm extremely proud of the results we've delivered and the progress we've made with our Commercial business. I wish the team continued success.”

30 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

in Molodanof’s timely presentation, for several reasons. “This is the very first time where we’ve dedicated a full day at SEMA dealing specifically with laws in California that can impact collision repairers throughout the entire state,” Schulenburg said. “The things that Jack will be teaching will help shops to know the laws and how to follow them, thereby saving them money in fines, etc. Proper estimating and invoicing is a big issue in this industry and this seminar will address every aspect of this topic, so that those taking the seminar can avoid problems before they happen.”

If you ever have any legal questions about your shop, BAR compliance and/or California automotive repair laws, feel free to contact Jack Molodanof at jack@mgrco.org.

During the same time of Molodanof’s seminar takes place there will be another California-focused seminar presented by Cory King of Fine, Boggs & Perkins LLP, entitled “U.S. Wage/Hour Compliance Under the FLSA - Are Your Pay Systems Legal?”

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 31

Ladies of NHRA Racing to Highlight 2015 SEMA Show Breakfast

The 2015 NHRA Breakfast at SEMA will celebrate the success of women in drag racing. Featured drivers will include Erica Enders, Courtney Force, Alexis DeJoria, Leah Pritchett and legendary Shirley Muldowney.

The popular annual event has showcased many of NHRA’s legendary drivers, team owners and other characters within the sport. NHRA will bring together some of its most successful women in the NHRA Mello Yello Drag Racing Series and they will discuss Shirley Muldowney their memories and legacies.

Enders is the defending Pro Stock world champion, having won her title in over Jason Line at the season-ending Auto Club NHRA Finals. The win made her only the third female driver to win an NHRA professional championship. She has 19 career victories, including this year’s Chevrolet Performance U.S. Nationals at Indianapolis, which puts her second on the all-time wins list by women behind only Pro Stock Motorcycle’s Angelle Sampey.

Force, the youngest daughter of 16-time Funny Car world champ John Force, is creating her own legacy in Funny Car. She has seven career victories, making her the winningest female Funny Car driver ever. Force is also the only female Funny Car driver to record four wins in a season. Her biggest win came in 2013 when she won the season-opening Circle K NHRA Winternationals. Force was also the 2012 Automobile Club of Southern California Road to the Future Award winner.

DeJoria has also made a name for herself in the Funny Car ranks. The daughter of Paul Mitchell Hair Care Products and Patron Tequila owner John Paul DeJoria, DeJoria is a threetime winner in the Mello Yello Series.

She made history in 2014, becoming the second female in Funny Car to win the Chevrolet Performance U.S. Nationals in Indianapolis. DeJoria also became the Alexis DeJoria first Funny Car female to run a sub-three-second pass, achieving the feat at the season-opening event in Pomona in 2014.

Pritchett is a name to watch in the future in Top Fuel.

She has started to make consistent runs on her parttime team. She reached her first career final this year in Atlanta and was narrowly Leah Pritchett defeated. A former Nos-talgia Funny Car world champion and a junior dragster racer, Pritchett is on track to become a major player in NHRA Drag Racing.

Muldowney is a name that will forever be etched in the history of motorsports. Racing in a time when a woman in drag racing was nonexistent, Muldowney rewrote the rule book of successful women in racing. She scored Erica Enders three world championships and 18 career victories, cementing her legacy alongside the greats of “Big Daddy” Don Garlits, Don “The Snake” Prudhomme and Kenny Bernstein.

The NHRA Breakfast at the

SEMA Show will be held Wednesday, November 4, from 7:30 – 9:00 a.m. at the Westgate Las Vegas Resort and Casino (formerly the Las Vegas Hotel and Casino [LVH]) Paradise Events Center South. The NHRA Breakfast is open to all registered SEMA Show attendees. A continental breakfast will be served.

The panel will be moderated by Courtney Force longtime NHRA announcer Bob Frey. Following breakfast, all panel guests will be at the NHRA Booth signing autographs and handing out limited-edition autograph cards from 10:00 – 11:00 a.m.

DeJoria’s Patron XO Cafe Incendio Toyota Camry Funny Car will also be on display at the booth.

This event is open to all registered SEMA Show attendees at no cost; however, tickets are required. To order your event ticket or register for the show, visit the SEMA Show website and click “Add Event Tickets.”

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 33

CA Takes Action Against Insurers for Various Acts: Capping Labor Rates, Lowballing, Trade Practices

by Ed Attanasio

The California Department of Insurance (CDI) recently took action against Allstate Insurance, Sterling Casualty and Alliance United Insurance based on allegations listed in three separate statements of charges and accusations concerning illegal labor rate practices that were allegedly unfair and/or deceptive and based on complaints from body shops throughout the state.

These actions are based on investigations that revealed violations including “Engaging in unfair methods of competition or unfair acts or practices, and other unlawful acts, including arbitrarily capping and denying labor rates without support; failing to send a written denial of a claim; making an offer that is unreasonably low to settle a claim; failing to prepare estimates for an amount that will allow for repairs to be made in accordance with accepted trade standards for good and workmanlike repairs and failing to pay the difference,” based on the statements filed by CDI Attorneys Ramon Cintron and Kevin Bush.

In the action taken against Sterling

Casualty Insurance, at least one complaint was received against the company from an unnamed shop in Oxnard, CA. The action against Allstate was based on at least five complaints from body shops, including Collision Concierge in Upland, CA, Autotrends in Oakland, CA, an unnamed shop in Santa Clara, CA and two separate complaints from A&B Collision in Clearlake, CA. The action taken against Alliance United is based on two complaints from one or more unnamed body shops in Oxnard, CA. Co-owners Alvaro Valencia and Bill Stone of A&B have been filing labor rate complaints for more than two years and are pleased to see that action has been taken by the CDI. In two cases, Allstate objected with A&B’s labor rate of $95 and stated that they were not willing to pay more than $75. After the CDI intervened, Allstate increased the labor rate to $82, still $13 below the shop’s stated labor rate. Allstate had no documentation to justify the lower rate simply saying that it was “over inflated” and that most shops in the area accept the lower rate as reasonable and competi-

34 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

tive, according to the Statement of Charges/Accusation filed by the CDI. Bill Stone at A&B Collision hopes that these actions will change the industry for the better. “David Jones is stepping up and representing us, which is excellent,” Stone said. “It took quite a while for these to be filed, because the CDI needs to investigate and build a case, which I understand. We have filed more than 100 complaints with them, because every time it happens, we’re going to complain. 96% of all the insurance companies we work with play fair and that’s all we want. We’re in the only business in this country where someone can walk in and say we’re not going to pay your rate and here is what we’re going to pay. The insurance companies have all the clout and the power and we’re just one shop in a small town. It’s always been a David vs. Goliath situation, but now we have someone on our side, finally.

It’s a big deal, that’s for sure.”

Stone says he is tired of wrestling with insurance companies over what he feels is a very fair labor rate. “We’re not trying to make a killing, we just want to be paid what we deserve,” he said.

“They try to cut costs and question our rates for being inflated. They have no survey information to back it up, they just push it on us and what can we do?

They will claim things like a ‘basecoat reduction’ and things like that—which I think must be a phrase that was created by the insurance industry.”

Another complainant in the action vs. Allstate is Douglas Marshall of Autotrends in Oakland, CA. He has filed approximately 50 complaints in the last three years and is also happy to see these charges.

“This is a one step in the right direction and something that has been needed for many years,” Marshall said.

“We’ve been filing complaints every week, and now we’re seeing the results.

By keeping good records and documenting everything, we’re able to make our case in every situation. Commissioner Jones is doing all of the things he promised he would and that’s why he’s the best we’ve ever had in that office.”

Tony Cignarale, CDI Deputy Commissioner of Consumer Services and Market Conduct weighed in about the three enforcement actions. “CDI is not able to comment on any ongoing

investigations or complaints. However, in general, the department investigates and attempts to resolve each complaint it receives. Each case has a different set of facts and involves different insurance companies and different types of disputes. Therefore, each case may have different results. CDI has been able to resolve many of the complaints filed with additional payments to consumers and to repair shops. In 2014 the Department received more than 175,000 calls from consumers and helped recover over $54 million in claims and premiums.

“In some cases, where insurer practices caused the dispute, we were successful in getting insurers to make changes to the systems, processes, or labor rate surveys so that future claims are handled reasonably and in a fair and equitable manner, Cignarale explained. “In those cases where CDI alleges that insurer practices are

Free

in violation of law, each case must be investigated and evidence must be obtained that would support taking enforcement action. The three cases noted were examples of the result of these types of investigations.”

Penalties in each action are the same—an Order to Cease and Desist from engaging in unfair acts in violation of CIC Section 790.03, including civil penalties not to exceed $5,000 for each act or if the act or practice is willful, not to exceed $10,000. For acts in violation of CIC Section 704(b), suspension of each insurer’s certificate of authority for up to one year, or a $55,000 fine in lieu of suspension.

Each insurance company in question can either accept the monetary penalties associated with each alleged action or a have their case heard at a hearing held at a date to be determined in the CID’s Office of Administrative Hearing in Los Angeles.

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H OND A C ON NEC TI CU T

Lia Honda of Enfield E nf ield

800-221-3131 860-741-3401 Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com

Schaller Honda New Britain

800-382-4525 860-826-2080 Dept. Hours: M-F 7:30-5; Sat 8-1 jkiniry@schallerauto.com MAR Y LA ND

Criswell Honda Ger m an t ow n

866-738-2886 Dept. Hours: M-Thu 7-9; Fri 7-7:30; Sat 8-6 hondaparts@criswellauto.com

O’Donnell Honda E llicot t City

410-461-5000 410-461-9654 Dept. Hours: M-F 8-6; Sat 8-5 bshortt@odonnellhonda.com

Ourisman Honda of Laurel Lau rel

800-288-6985 301-498-6050 Dept. Hours: M-F 7:30-7; Sat 7-4 ron.malitz@ourismanautomotive.com

AC URA MAR Y LA ND

Tischer Acura Lau rel

800-288-6983 301-498-3322 Dept. Hours: M-F 7-6; Sat 8-4 wholesaleparts@tischerauto.com MAS SAC HUSET T S

Acura of Boston Brig ht on

800-254-1169 617-254-5400 Dept. Hours: M-F 8-5:30; Sat 8-5 bruce.fisher@acuraofboston.com N EW JE RSEY

Acura Turnersville Tu r ners ville

888-883-2884 856-516-6060 Dept. Hours: M-F 8-5; Sat 8-4 kristen.powell@penskeautomotive.com 36 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs.

M AS S AC H U SE T T S

Herb Chambers Honda of Seekonk Se ekon k

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NE W J ERSE Y

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Wes t Ne w Yo r k

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York

866-483-6917 201-868-9500

845-278-4177

800-960-9041 717-848-2600

Dept. Hours: M-F 7-7; Sat 7:30-5; Sun 8-3 anthony.perrone@hudsonhonda.com

LIA Honda Northampton

M a di so n

800-369-7889 413-586-6043 Dept. Hours: M-F 7:30-5:30; Sat 8-4 dstanisewski@liacars.com NEW JERSEY

Clinton Honda An n a n d ale

Madison Honda 800-648-0293 973-822-1710

Ro che s te r

800-462-0056 (N.Y.) 585-586-4919

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800-682-5941 609-683-5941

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Honda of Princeton

P EN NSY LVAN IA

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Dept. Hours: M-Thu 7-8; Fri 7-6; Sat 8-5; Sun 9-5 Tespinola@herbchambers.com N or t ha m p t o n

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315-471-7278 Dept. Hours: M-F 7:30-5:30; Sat 9-1 parts@lamacchiahonda.com

Lia Honda of Albany A lba n y

800-272-6741 518-482-2598 Dept. Hours: M, T, W, F 7:30-5:30; Thur 7:30-8; Sat 8-5 apersaud@liacars.com

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908-753-1680

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Tu r n e rs vil le

800-883-0002 856-649-1584 Dept. Hours: M-F 8-6; Sat 8-4 sbaptist@penskeautomotive.com

NE W YO RK

Babylon Honda Wes t B a by lo n

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

NEW JERSEY

NE W YO RK

877-659-2672 716-632-3800

Apple Honda Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com

Baierl Honda Wex f ord

724-940-2006 Dept. Hours: M-F 8-5; Sat 8-4 johnryan@baierl.com

J.L. Freed Honda Mont g omer yv ille

215-855-3587 Dept. Hours: M-Thur 8-6; Fri 8-5; Sat 8-4 joseph.sciacca@jlfreed.com

Shadyside Honda Pit ts b urgh

800-468-2090 412-390-2908 Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com

Sussman Honda Ros ly n

800-682-2914 215-657-3301 Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com

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

Ray Laks Honda We s t Se ne c a

716-824-7852 Dept. Hours: M-F 7:30-8; Sat 7:30-5:30 ekuznicki@raylaks.com

PEN NS YLVANIA

P EN N SY LVA NI A

Elite Acura

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Park Ave Acura Ma ywoo d

888-690-7621 201-587-0028 Dept. Hours: M-F 8-6; Sat 8-3 jon.tangen@parkaveacura.com N E W Y OR K

Acura of Westchester We st che s te r

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

Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com

Smithtown Acura St. James

888-832-8220 631-366-4114 Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com

Lehigh Valley Acura

Davis Acura L a ngho r ne

866-50-ACURA 215-943-7000 Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 37

Industry Overview with Janet Chaney

Janet Chaney has been a long-time contributor to Autobody News. She is a former body shop owner and now owns and operates Cave Creek Business Development. Chaney supports many body shop associations and looks after her clients from the Bitterroot Valley in Montana. She may be reached at jchaney.cavecreek@gmail.com

Determining Cash Values for Vehicles, An Inside Look at Mitchell’s Database Amongst Topics Covered at ABAT Event The Auto Body Association of Texas is focused on their future and saw close to 100 attendees participate in their Collision Industry Day, September 25 in downtown Fort Worth, Texas. The meeting room was lined with sponsors providing support to the

A full house for the Auto Body Association of Texas

Texas collision industry and there was not an empty seat to be had in the classroom. The group was highly energized and welcomed the speakers with rapt attention.

“Our main objective in an event

like this is to ensure that everyone who attends gets valuable information they can take back with them,” said Burl Richards, ABAT’s president. “I asked for a ‘show of hands’ from everyone that felt this was a worthwhile event and it was instant and

unanimous; everyone immediately raised their hands!”

Mike Anderson of Collision Advice opened the day with, “It is the intent of my heart to help you win.”

Anderson’s four-hour presentation hit

the hottest industry trends and critical basic management tools. His message spoke loudly of making more gross profit by: ▪ Zero to Hero – train people faster by developing a training matrix and calendar ▪ Make your customer experience an event—using extraordinary service, speed and accuracy Always ask yourself these four questions: • Is it required?

• Is it included in any other labor operation or is it a separate operation?

• Is there a pre-determined operation in the database?

• If not, what is it worth?

He showed shops where to get substantive data to answer these questions.

“We cannot use the insurance company as an excuse for our ignorance,” he emphatically said. In closing, Anderson gave his business card and contact information to everyone

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in the room and said, “TAN – Take Ac-tion Now!” After a Texas barbecue networking lunch, Robert McDorman of Vehicle Value Experts from Beaumont, Texas spoke about helping the con-

(l to r) Body Association of Texas President Burl Richards speaks with Mike Anderson at the September 25th event in Fort Worth

sumer. McDorman is a third-party appraiser who assists Texas consumers in finding the actual cash value for their vehicle after an accident. This may save vehicles from being a total See Cash Values for Vehicles, Page 40

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 39

loss when they are economically repairable by confirming the value of the vehicle. His consumer-based business focus is on diminished value claims, total loss value assessments and auto appraisals.

Auto Body Association of Texas Vice-President Brandon Dodd talks with a seminar attendee

“My message was designed to help shops realize that the value of the vehicle can be adjusted upward to the proper fair market value through the appraisal clause,” said McDorman.

“When the proper fair market value is used by the insurance company there will be less vehicles totaled out and more vehicles repaired, thus increasing body shop profit.”

He said that he wanted to share information with shops about pre-

sumptive value versus factual vehicle value, diminished value and how the two will build more net profit to a shop’s bottom line and stronger customer satisfaction and loyalty.

Wayne Krause, Mitchell International’s manager of editorial content, gave the crowd a great inside look at the database that fuels their estimates. His industry knowledge and estimating expertise brought a deeper understanding to this audience of the inner workings of creating the database that is so important to their business. Krause showed a multitude of resources that Mitchell uses to keep their database current.

They are actively working with manufacturers, “We are writing our database as the manufacturers are building the cars,” Krause said. The audie-nce also learned that Mitchell is the only information provider that does time studies, inviting Texas shops to be part of the time study process. Krause’s presentation opened the eyes of many in the audience as to the technical information and accuracy of times provided in the Mitchell database. “If you don’t think a time is correct,” Krause states, “Call me and let’s talk!” He

gave his phone number to the crowd and is looking forward to great conversation coming from Texas.

“This is the last of the great American family industries,” opened Frank LaViola of Enterprise Rent-A-Car. “There are over 90,000 employees in this industry today.” LaViola spoke to the history of Enterprise Rent-A-Car

(l to r) Speakers Frank LaViola, Enterprise RentA-Car, Wayne Krause, Mitchell International, and Mike Anderson, Collision Advice smiles reflect the enthusiastic day

and its commitment to the collision industry. He introduced the Enterprise ARMS system, which offers statistical data to shops regarding cycle time and length of rental. LaViola showed shop owners how Enterprise’s length of rental can be used as an industry KPI. Using the length of rental data offers industry comparison by region, state,

or nationally by Enterprise. LaViola’s presentation showed true benefit to this KPI: more cars in and out of the shop; more or new DRPs—or NOT; more profit for the shop; higher pay for techs and employees and happier customers!

This was a high-energy, positive and meaningful day for the Texas collision industry. “Texas is a large state and we have an opportunity to help grow not only our association but the knowledge and education that can be shared to shops around the state,” said Richards. “This will make each of us better, stronger and more profitable as it relates to our business and safer repairs for our customers’ vehicles.”

The meeting was held at the Historic Fort Worth Hilton, where President John F. Kennedy spent the last night of his life, November 21, 1963.

He spoke the next morning in the Crystal Ballroom before he left for Dallas. This was exactly the same ballroom where the Auto Body Association of Texas held this meeting. The Texas spirit is alive and well with the Auto Body Association of Texas and continues to resonant in the halls and with the message John F. Kennedy left the city with, “There are no faint hearts in Fort Worth.”

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Industry Insight

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

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

Lots of Variables to Take Into Account When Welding, But Training Need Doesn’t Vary with John Yoswick

When most collision repairers think of Chief Automotive, they likely think first about frame racks and measuring systems. But “Vehicle Services Group” includes not only Chief, Chassis Liner and the Rotary Lift brands, but the Elektron line of welders as well.

During a recent training session at Chief’s headquarters in Madison, Ind., Richard Perry, who oversees training for the company, offered some insights into the variables that technicians needs to keep in mind when welding, particularly as the range of materials used in vehicle construction continues to expand.

“Anytime you’re welding or bonding, preparation is the biggest part of it,” Perry said. “Making sure the panels are ready, the surfaces are clean. Whether they need to be scuffed. Whether you need to take the oxidation off the aluminum. Whatever needs to be done.”

The amperage, voltage and other settings on the welder need to be properly dialed in as well, he said.

“If the voltage is too low, the wire is going to come out further and start hitting the material before it melts,” Perry said. “If the voltage is too high, the wire is going to start to burn off before it gets to the material and that’s when you get a burn-back and the wire stuck to the welding nozzle.”

“That’s the one great thing about new welders; we have engineers who will establish these settings as a program in the welder,” Perry said. “They do testing with the actual wire and thickness of materials, then program it.

So on these new welders, the program will give you the numbers based on the wiring you’re using and what you’re welding. You just dial that system to that number and you’re ready to start welding.”

Bob Holland, Chief’s collision director for the Americas, said the process of creating these latest welders includes interaction with the automakers.

“Our engineers do the programming, but we have to actually take those programs to the OEMs and have them test them to make sure they have repeatable results that are within the range that they require,” Holland said.

Perry said experienced welders may make some adjustments to those

programmed settings based on their welding style.

“If he’s a real fast welder, he may increase the voltage,” Perry said. “If he’s a slow welder, he can decrease it. If he likes to be up close, he can decrease the arc. If he likes to be further away, he can increase the arc. So there’s a lot of things that can be done specific to each person, but the program gets you right to where you need to be.”

A nice thing about the new welders, Perry said, is the machines respond to any adjustments synergistically.

“So if you change the amperage, it’s going to adjust your wire speed, etc., so that everything works together,” he said.

Other variables that welders need take into account are panel fit-up and alignment, Perry said.

“Make sure you have good contact, no gaps,” he said.

Welding technique, including gun angle and travel speed, is also critical for proper welding.

“The angle of the gun determines the amount of wire and shielding gas that comes out,” he said. “If you have it tilted too much, for example, your shielding gas is not protecting the weld area as well. That’s how you get contamination into the weld.”

Perry was asked what he sees as the biggest issue for shops related to welding or other joining. He said that too often he sees technicians who think they have 20 years of experience, but really have just one year of experience 20 times.

“What he did that first year that he learned, he’s been doing that same thing over and over and over,” Perry said. “In the last 5 to 7 years, there’s been so much change in vehicles. But the average technician is 48 and has been doing it for quite some time and it’s harder to get somebody like that to make the needed changes.” (The Collision Repair Education Foundation pegs the average age of technicians in the industry at 39, though that does not negate Perry’s point.)

Perry said shops and technicians need to look to the automakers for vehicle-specific repair information.

“The OEMs were on the sideline

42 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

for a long time; the real expert repairing the vehicle was the technician,” he said. “They knew more about it than anyone else. That’s flip-flopped. The one that knows the most about the vehicle repair today is the OEM.” Perry said the automaker information seems to be getting to shop management and insurers.

“But then the technician who is actually repairing the vehicle may not get any of that information,” he said. “So he’s going to repair it the same way he’s been doing it.”

Getting shops and technicians to understand the need for the ongoing training offered by I-CAR and companies like Chief can be a challenge, Perry said. He recalls visiting a Ford dealership body shop in Texas in 2010, right after Ford introduced the 2009 F-150 which had seven different types of steel in the cab. A technician had one such pick-up on jack stands with the outer rocker cut off, trying to repair the bent

inner reinforcement.

“He had a slide hammer and was just wailing on this thing, trying to straighten it,” Perry said. “He’s sweating and saying, ‘What is this made out of?’ I said, ‘You don’t know?’ He said, ‘No. They changed something.’ ‘Yeah, they did,’ I told him.”

Perry said he explained the steel the reinforcement was made of, and the technician realized the vehicle should be up on a rack.

“I said, ‘Yeah, and you’re going to have to replace the whole piece. You can’t just straighten it,’” Perry said he told the technician. “He had no idea.

They’d been doing the same thing over and over. Understanding that they do need training is a big thing.”

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MSOs, Independent Shops and Businesses Raise Money and Awareness for Breast Cancer

by Stacey Phillips, Assistant Editor

The collision repair industry is demonstrating its support of Breast Cancer Awareness month this October both locally and nationally by raising money and increasing awareness. This includes holding fundraisers, buying t-shirts and spreading the word about early detection.

Service King is partnering with the National Breast Cancer Foundation (NBCF) for the second year in a row and has themed its campaign, “Eliminate Breast Cancer.” “Service King has always been active in supporting local communities,” said Danny Briones, Service King’s director of advertising.

“This particular effort is something that allows our entire organization to unite in support of the National Breast Foundation and its mission of Helping Women Now.” Last year, Service King employees raised $112,000 in support of breast cancer by purchasing pink “Eliminate Breast Cancer” t-shirts. Service King then matched each donation.

In addition to selling t-shirts this year, the company is raising funds

Service King helped promote the National Breast Cancer Foundation’s Early Detection Plan mobile app, which is available for the iPhone and Android in both English and Spanish

through four high school football tailgating events themed Friday Night for the Fight.

Part of the campaign also includes promoting the NBCF’s early detection app to help spread the word about the importance of early detection. “This was inspired when we learned that the five-year relative survival rate of breast cancer patients is 100 percent if the disease is detected early in the localized stage,” said Briones. “This mobile app is an incredible tool to help build an early detection plan.”

“The Eliminate Breast Cancer campaign illustrates our teammates’ remarkable passion behind this cause,” said Chris Abraham, CEO of Service King. “The response each year has been nothing short of inspirational as we’ve been able to support the National Breast Cancer Foundation and its mission to help women now. Service King’s purpose through this has been to do our small part in spreading hope to those who need it most.”

In Bristol, CT, CARSTAR Ray’s Auto Body is sponsoring a “Sign the Beetle Campaign.” Proceeds will go to the Susan G. Komen Foundation.

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With every vehicle the shop repairs in October, CARSTAR Ray’s will make a donation in that customer’s name.

Customers will be asked to sign the

As part of its awareness campaign, CARSTAR Ray’s Auto Body in Bristol, CT is asking customers to sign the shop’s promotional pink vintage Volkswagen Beetle

shop’s promotional pink vintage Volkswagen Beetle. The retro Beetle is custom-painted pink in a rubberized Plasti Dip Coating to represent the signature pink color for breast cancer awareness.

“Our goal is to have the entire car covered in signatures,” said Michael Ferrucci, manager of CARSTAR Ray’s Auto Body. “We hope the pink Beetle will draw a lot of attention to Breast Cancer Awareness Month and look forward to making a donation on behalf of

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our customers.”

The shop will also be accepting donations throughout October.

More than 200 independent shops across 34 states are taking part in “Brakes for Breasts.” Established by Leigh Anne Best and Laura Frank in 2011 with 10 shops in Ohio, the initiative has raised a total of $224,585 over the last four years. The first year, the 10 shops raised $10,000 and the organization has doubled its growth every year for the last four years.

All shops run the same program.

“They get their parts supplier to provide free brake pads or shoes and in return promise to increase the business they send to their supplier exponentially that month,” said Best. “The extra business for them helps to offset the cost of the brake pads.”

The shop then passes on the free brake pads or shoes to the client and he or she pays for the labor and costs to complete the job. The shop then donates 10 percent of the parts and labor total to The Cleveland Breast Cancer Vaccine Fund.

All proceeds go directly to this fund to pay for research by Dr. Tuohy and his team. “After 13 long years, we are less than a year away from beside

trials for the triple negative breast cancer gene, the gene that leaves one with little or no hope,” said Best. The research also helps develop vaccines for other breast cancer genes, ovarian and prostate cancer.

This is the first year Clovis Auto Shop, located in Clovis, CA, is participating in Brakes for Breast. “We chose Brakes for Breasts because it is different from all other Breast Cancer Awareness campaigns,” said Rob Porcella, the owner of Clovis Auto Shop.

“Our hope and vision is to no longer have Breast Cancer Awareness Month, but instead have a vaccine available for women that prevents breast cancer altogether.”

Porcella said his shop’s goal is to perform 30 brake jobs during October with a total revenue of $7,500. Employees have been spreading the word throughout the community by sending out press releases, email blasts, posting on social media sites and exposure through KMJ radio and KSEE24 News.

“God has blessed me with a healthy and prosperous business and I chose to honor God by staying involved in the community and helping those in need,” said Porcella. “My staff and I work diligently for the future success of Clovis

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Top fuel driver Doug Kaltita and his crew will wear matching breast cancer awareness crew shirts and unveil a pink dragster displaying Mac Tool’s Wrenching for a Cure branding.

The MB1000A-BCA is a tech series box featuring a carbon gray cabinet with BCA pink drawers, which includes the Wrenching for a Cure Bran-ding.

“So many people are impacted by cancer every day,” said Shaw. “This is our way of giving towards research so hopefully there will be a day when ‘so many’ become ‘so few.”

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Auto Shop and the ability to continue blessing the lives of others.”

In addition to collision repair shops, businesses throughout the industry are also showing support during Breast Cancer Awareness Month.

MacTools, based in Westerville, Ohio, has supported The Stefanie Spielman Fund for Breast Cancer Research in the United States and the Breast Cancer Society of Canada since 2012 through the company’s own “Wrenching for a Cure” program.

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www.koeppelmazda.com www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 45

Alioto’s Garage is the Oldest Body Shop in San Francisco

many employees can’t afford to live in SF. Lastly, watch out for all of the San Francisco may be the perfect rules and regulations, because Caliplace to own a body shop; the city is fornia isn’t known for being businesssmall (seven miles by seven miles), friendly, to say the least.

Despite all of the obstacles that crowded and the traffic laws are nearly non-existent. I tell people that exist in San Francisco, one shop has the only way to get a ticket in SF is by outlasted them all, by doing quality work, treating their people right and actually hitting a police car. going way over the top when it comes to customer service.

It’s called Alioto’s Garage, a business that has been flourishing in the City by the Bay for the past 76 years.

It all began in 1939, when Frank “Babe” Alioto Sr., the first American born child of Sicilian immigrants, opened his doors at Alioto’s Garage in Daly City, CA. With busiFrom left, General Manager Chris Diaz, VP Matt Alioto ness booming, Alioto moved and President Chris Alioto run Alioto’s Garage, the oldest shop in San Francisco and currently fixing over 500 cars the auto body shop to San monthly Francisco’s Marina District in But, in other ways, San Francisco 1946. The business grew as the councan also be a tough place to run a body try rebounded from World War II and shop. Parking is scarce in most cases the shop started working on all of the and many shops spend countless hours new Packards, Chryslers and Plymoving cars around due to a lack of mouths that started hitting the roads in space. Rent is through the roof, so the Bay Area.

by Ed Attanasio

Babe raised his son, Frank, Jr. in the shop and taught him the ins and outs of collision repair and refinishing.

When Babe passed away in 1962, the

President Chris Alioto is proud of his family business of 76 years. Here he is pictured with his wife Patricia, the twins and his son, Santino

torch was logically passed on to Frank, Jr. Frank Alioto eventually moved the business to Folsom Street in 1972, still home to their main location.

A father of two boys, Frank Alioto Jr. continued the family tradition by raising Matt and Chris essentially in the shop. Matt and Chris slowly took control of the business, and as it grew,

they decided to expand their Folsom Street store. They first added a parking lot, then in 2007, another building was added to the shop and increased capacity by another 18,000 square feet.

In 2011, they purchased another shop on the northern side of San Francisco. “Many customers drove across the city to see, so it was a logical expansion in that area,” Matt Alioto said. “We were nervous but decided to take a chance and it paid off.” In 2013, Alioto’s opened a brand new facility on the southern side of San Francisco.

Vice-President Matt Alioto, 43, is the father of two boys, and company President Chris Alioto, 41, has one son and two daughters. As third-generation owners, Matt and Chris almost didn’t enter the family business as the two decided to pursue other careers.

The two brothers decided not to work in the family business initially. “I went to school for IT and Chris went to work for a mutual fund company after college, so we were not going to take over the business, at least at first,” Matt Alioto said. “We worked at the shop growing up, so we knew basically how

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Media and Publicity for Shops Don’t Be Content with Sub-Par Online Content with Ed Attanasio

Most body shop marketing types know that well-written content is an important part of any successful marketing campaign. It’s like anything else, just doing it isn’t enough and content creation and management isn’t a “check box” type of thing.

For many years, body shops, from small independents all the way to massive MSOs, were reluctant to jump into the Internet game, hesitating to design top-notch sites, creating apps and committing to blogs for the long-term.

Now, shop owners and managers who previously didn’t know SEO from the CIA are 100 percent in it to win in the online game, because they’ve seen the results and benefits of having a strong Web presence.

Here are a few sage suggestions from someone who has made a living out of helping body shops and other companies and trumping their competition online. By figuring out how to create content that is getting the results they want and with numbers that are climbing all the time, WSI Connect in Concord, CA uses targeted content strategies that just plain work.

WSI Connect President Luke Middendorf’s mantra when it comes to online content is: Stay in the game and never rest on your laurels once you experience a modicum of success.

“Curating and distributing content is part of a longterm strategy,” MidWSI Connect’s dendorf said. “You President Luke should not ex-pect Middendorf uses his content creation one good blog post strategies to help to instantly lead to a body shops and new sale. Developother businesses ing good content online helps you build a relationship with your customers and prospects, as well as strengthening your alliances with your insurance companies and vendors. Over time you foster this relationship by continually producing quality content that is relevant to your line of business. Good content will encourage more people to follow your brand and then when it’s time for them to make a purchase, your business will immediately come to mind.”

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

One mistake many small compaget quickly discouraged and stop pronies make is that they don’t create conducing content. Once you have detent that connects them to their veloped a strategy for curating and customers, according to Middendorf. distributing content, stick with it.

“Your marketing content should focus Map out your editorial calendar for on your customers and solving any problems or issues they may have that relate to your business. The best thing you can do to get started is to fix your unique selling proposition (USP). Why should customers buy your products and services? What can your company provide them?

Make your content more about problem-solving than This chart illustrates the importance of having a blog featuring new, fresh content all the time about self-promotion.”

Content should vary depending on where you’re posting it, six months and then continually reMiddendorf said. “Your blog’s content view it to ensure accuracy, timeliness should be informative and less sales- and relevance. If Google sees that oriented. People who read blogs don’t you’re adding and changing content want to be sold, but you can be a little all the time and updating it regularly more direct with the content for your as well as posting it on social media, site. It’s all about the customer’s expectations and how to deliver that to them.”

Frequency is important when it comes to web sites, blogs and e-mail newsletters. “If you put out a blog post once a month, you are not going to draw much of a following,” Middendorf explained. “Another mistake in content marketing is not being consistent and planning ahead. Your company should be producing content regularly.

To ensure that you do this, you need to develop a strategy for marketing your content and then put it into motion.

What topics will you write about? Who will write the blogs? How often will you blog? All of these questions should be answered as you are preparing your strategy. There is a definite shift now towards inbound marketing. This involves drawing customers to you instead of your company having to go and get them. Good content is the cornerstone of an inbound marketing campaign.”

Most marketers and businesses give up on content marketing too quickly. “If you set up a plan and stick to it, you will see significant results, but it may take time,” Middendorf said. “When they don’t understand the reality of the process, it is easy to

48 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

for example, they will reward you with better rankings.”

Rick Rehm is the IT Director and Compliance Manager at Mike’s Auto Body, with 13 locations in northern California. He has been working with Middendorf for the past year or so and the results have been phenomenal, he explained.

“The most intriguing part to Luke’s approach to our revamped website was his approach to create a single website for our end consumers and 13 locations websites built in the single website for location SEO,” Rehm said. “This way, we could create content that specifically addressed the customers at each of our locations.

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Continued from Page 46

Alioto’s Garage

each other out and they both share a passion for this business. My late husband was so proud of these kids, because they took what he did and made it better. He passed shortly before they obtained their Tesla and Porsche certification; I know he’s looking down at them and smiling.

Many family businesses flounder during the third generation, but with Matt and Chris, it is growing every year.”

it worked, but we wanted to do our own things.”

Then, one day Frank Alioto, Jr. made a phone call to his sons that would forever change their lives. “He told us he wanted to retire, so if we weren’t interested in getting involved, he would close the doors and sell the shop,” Chris Alioto said. “I saw some real potential there, because my father and my grandfather had built up a solid business, so I decided to join the company and Matt followed shortly thereafter. Dad taught us the business he knew.

But he also knew times were changing and over time was supportive of the changes we The estimating crew at Alioto’s Garage has more than 100 years of total experience. Sitting in the middle is wanted to make.”

The two brothers work GM Chris Diaz well together because they have differBy assembling a winning team, ent skills and that’s why they make an Alioto’s is now fixing 500 cars on aveffective team, according to their erage. The day-to-day operations are mother Carolyn Alioto. handled by General Manager Chris “Matt is the technical one and Chris Diaz, 30, who supervises and motihas a great mind for business and relavates approximately 70 employees as tionships,” she explained. “They balance the shops balance 10 DRPs.

With a track record spanning seven decades, the Alioto family has seen the collision industry change in many ways.

“I remember our first DRP with State Farm,” said Chris Alioto. “It was new to us. We were happy to have regular work coming in, back then they just let us fix the cars. Now it takes knowledge of OEM procedures, special training and tools to ensure the repairs come out right. Our insurance partners rely on us and trust us to stay up to date; it’s our responsibility.”

Matt Alioto is most excited about the technical advancements that have taken place in the industry. “The technology and the computers are probably the most significant things,” he said. “With the Internet, shops are more transparent and the customers are more educated about what we do.

Aluminum and all of the new repair techniques on these newer vehicles are also big changes.”

Alioto’s was fortunate to see the wave of the future and pushed hard to be at the forefront. By embracing the rush to aluminum, Alioto’s acquired OEM certifications from Tesla, Porsche, Infiniti, and Ford F-150. The Alioto brothers show they are not afraid to invest in equipment and training to get to

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the next level. “We want to repair these cars right, so we make sure that we’re using OE procedures and have the proper training for our people,” GM Chris Diaz explained. “We want to be a top-tier shop, so that customers will go out of their way to bring their cars here.”

Is there any chance that Alioto’s will one day become a fourth-generation business?

“We’ll see, but right now our children are a little young,” Chris Alioto said. “Our children are enjoying just being kids. If any of our children want to enter the business, we’ll be happy, but if they want to pursue anything else, we’ll be 100 percent supportive.

We want them to be happy and find something they love to do, whatever it is. My brother and I didn’t think we’d be working in the family business either, but look at us now!”

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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.

SCRS Survey, Airbag Testing Technology, Total Loss Pandemic, NSF International with John Yoswick

20 years ago in the collision repair industry (November 1995) A recent national survey of collision repair shops found that the suppliers of computerized estimating and shop management software still have a huge untapped market.

The survey of 801 collision repair shops, conducted by the Society of Collision Repair Specialists (SCRS) found that about 64 percent of shops have an estimating system capable of producing “P-page logic” estimates.

Why haven’t four out of 10 shops entered the computer market? A lack of understanding of computers, concerns about cost, and a lack of time for choosing a system and getting trained are the reasons “computer-less” shop owners cite.

All these arguments are valid to one degree or another. And it is by no means necessary to computerize to succeed in the industry. But computer systems are increasingly affordable and

easy to use. You don’t have to really understand how they work or learn a lot of terminology. And most importantly, shop owners say, the right computer system is perhaps the single most important tool a shop can use to increase sales, productivity and profit.

– As reported in Automotive Journal. Twenty years later no one would probably argue that “it is by no means necessary to computerize to succeed in the industry.”

15 years ago in the collision repair industry (November 2000) A new company plans to be testing and certifying salvage airbag modules for reuse in vehicles by early next year.

Peter Byrne, president of Airbag Testing Technology, speaking at the Collision Industry Conference (CIC) in Nashville, TN, said his Ohio-based company verified its testing process this past summer and will begin certifying salvage airbag modules in one

or more Canadian provinces in 2001.

He said the company plans to later move into other markets – including the United States.

Byrne said the testing process includes checking for proper electrical integrity and resistance; checking the mechanical fasteners and cosmetic appearance of the module; ensuring that no foreign matter (such as glass) has entered the cushion cavity; and checking for surface levels of sodium or calcium that would indicate the module had been immersed in water and is thus unusable. Byrne said it is only immersion in water – not exposure to atmospheric humidity or rain – that impacts a module’s performance. His company’s test, he said, can detect immersion even if it occurred years previously.

The company conducted tests on 68 Ford Taurus airbag modules (58 salvage modules, and 10 new modules used for comparison) this past sum-

mer at a research facility in British Columbia, Canada, to verify its testing procedures. All of the modules were successfully deployed following the certification testing.

Byrne said the company expects the initial market for its certified modules to be in the three Canadian provinces with government-run insurance monopolies – followed by the non-insurance-paid repair market in the United States.

“We recognize that it will take a long time for the insurance-paid section of the marketplace to come around to this,” Byrne said, acknowledging the liability concerns for shops and insurers.

– As reported in Autobody News.

Byrne was right that use of salvaged airbags has been adopted by some Canadian insurers that largely have control of the vehicle from the time it is totaled to when it is dismantled. But no U.S. insurers are calling for the use of such modules.

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10 years ago in the collision repair industry (December 2005) For Jim Watson, the solution to the rising percentage of vehicles being declared total losses is relatively simple: Non-repairable vehicles shouldn’t be repaired.

“Repair the repairable vehicles at a facility that has the training, technology, tools and accountability to do so,” said Watson, an Illinois auto recycler and current president of the Automotive Recyclers Association. “And require those vehicles that could not or should not be repaired to be disposed of with a federal certificate of destruction to be sold for parts or scrap only.”

Watson said this would solve what he calls “the total loss pandemic” by addressing two parts of the “total loss” equation. First, it would make more recyclable parts available to shops, thus reducing costs to repair. Second, it would reduce competition for salvage vehicles – because more of those vehicle could not be purchased to be rebuilt – lowering the salvage values that are a key component in determining if a vehicle will be declared a total.

Watson’s comments came during the Collision Industry Conference (CIC) in Las Vegas in November, dur-

ing which several CIC committees focused attention on the issue of total losses.

One committee, for example, compiled a variety of statistics from estimating system providers and insurers to gauge whether the common perception that the number of total losses is increasing is actually true.

In 2005, Illinois CCC reported the Auto Recycler percentage of total Jim Watson was national president losses among estiof the Automotive mates written by inRecyclers surance appraisers Association in 2004 was nearly double the annual percentage of total losses in 1997 through 2000.

– As reported in Parts & People.

CCC has since reported that the percentage of total losses has hovered between 12.9 percent and 14.2 percent each year since 2005.

5 years ago in the collision repair industry (November 2010) At the Collision Industry Conference (CIC) this month, Bob Frayer of NSF International spoke about his com-

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pany’s non-OEM parts certification program launched in February.

Like the Certified Automotive Parts Association (CAPA) program, NSF certification requires the parts manufacturer to meet quality control requirements, and that parts undergo testing to determine they match OEM in terms of content, fit and function.

But unlike CAPA, NSF does not require that its labs conduct the actual testing of the parts; NSF merely audits that the parts manufacturer has had testing done by a qualified facility.

“The manufacturers control testing,” Frayer said. “We can do the testing, but we only require the testing be done at an ISO 17025 accredited facility.”

NSF-certified parts bear the NSF mark, Frayer said, and certification requires the manufacturer to have a system in place to conduct a part recall if there is a safety concern. Although CAPA accepts and investigates complaints about parts it certifies, under the NSF program the parts manufacturer must have a system in place to accept and respond to complaints.

How does a shop know how to file such a complaint? Frayer said a phone number or email address for the man-

ufacturer must be included on either the part or packaging.

NSF’s Frayer and CAPA’s Jack Gillis were asked how the industry should view the fact that there are now multiple standards and certification programs for non-OEM parts. Gillis said he doesn’t see it as a good thing, and could create confusion, just as it would if competing drug stores had different standards for aspirin that consumers had to try to sort through.

“Multiple standards often signify a diminution of the concept of standards,” Gillis said.

Frayer said he doesn’t see multiple standards as a bad thing.

“If we were interested in only one standard, we would probably be buying only OEM parts and say that’s the standard and why don’t we stop there,” Frayer said. “I’d argue that both CAPA and NSF are not the first standard but the second and third in the industry (after OEM). I don’t personally think that’s a bad thing.”

– As reported in CRASH Network (www.CrashNetwork.com), November 22, 2010. Both CAPA and NSF continue to certify non-OEM parts, and NSF recently launched a body shop certification program.

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 53

Hey Toby!

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator.

Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

Rivets Have Replaced Welding in Many Newer Vehicles — Part 2 with Toby Chess

etsinstock.com.

The counter sunk rivet is designed to sit flush on the panel. It is necessary to counter sink the hole with either a 100 degree or 120 degree counter sinking tool depending on the rivet speci-

Fig. 11. Cross section of a solid rivet. Courtesy of I-CAR

For part 1 of this article see last issue of Autobody News.

Viewing Fig 11, you will see that the rivet is solid. Like the SPRs, solid rivets need to have access to the backside of the panel. Unlike SPRs, a specific size hole is needed. Solid head

Fig. 15. 100 degree counter sink tool

It is extremely important that when installing rivets, that you follow the OEM procedures. If the wrong size rivets are used, it could lead to a huge failure if the vehicle is involved in another collision. To all you shop owners and managers. How many of your techs have a caliper or a micrometer? A side note. I conduct the I-CAR WCS 03 welding test and with the new test standards, the tech has to determine the size of the metal coupons to properly set their welders. Nearly 100 percent of the techs have no idea why it is necessary to know the metal thickness or even how to measure it. I bought this inexpensive gauge from Miller (See Fig. 17) and give it out to the techs that are taking the test. It is amazing to watch the techs after you show them the proper procedures. It may sound corny, but there is a sparkle in their eyes that they have this new and valuable knowledge.

Mike Hubbard is a Tesla, Aston

Santa Ana, CA. His first operation when installing a new panel that will be bonded and riveted, is to identify and mark the position of each rivet. See Fig 18.

Still on the subject of installation, here is another tool that is necessary when riveting on aluminum.

When you punch or drill a hole in aluminum, there is a sharp raised edge

Fig. 19. Deburring Tool

Fig. 12. Counter-sunk head Fig. 20. Deburring a hole in aluminum

Fig. 16. SPR & Blind Rivet Diagram. Courtesy of Reliable Automotive Equipment

Fig. 13. Round Head

Fig. 14. Flat Head

shape for solid rivets comes in many forms. See Fi 12,13 & 14.

Diagrams taken from www.riv-

fied by the OEM. See Fig 15.

Rivets must be matched to the job.

(L) The length of the ‘Body’ is determined by the stack total thickness plus 2mm. Therefore if the stack is 4.5mm then add 2mm so the rivet length will be 6.5mm.

Sizes range from 3.5mm – 8mm in length.

The 2mm is for the correct depth in the stack and it ensures the correct profile (“mushroom”) for the joint (D) Two main sizes of the ‘Head’ 3mm and 5mm in diameter but there are other sizes. In repair Jaguar do use a slightly bigger head.

3mm is used on the Mini quarter panel for example whilst 5mm is used in Audi on certain parts of their repair sections. (Taken from Dave Grusko’s presentation.)

54 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Fig. 17. Miller Metal Thickness Gauge

Martin, Jaguar aluminum certified tech from European Motor Car Works in

that needs to removed prior to installing a solid or blind rivet. See Fig 21 for a cross section on a hole in aluminum.

If the lip or the burr is not removed, the head of the rivet will not

Fig. 21

Fig. 18. Size and location for SPRs to be installed

make full contact with the panels that are to be joined. The rivet could become loose and overtime the adhesive could See Rivets Part 2, Page 64

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 55

Third Survey Now Open, Asking ‘Who Pays For What’ in Terms of Aluminum Repair, Other Items

The third of Collision Advice’s quarterly “Who Pays For What? surveys is taking place throughout October, asking shops about their billing practices (and insurer payment practices) related to aluminum repair, shop materials (like panel bonding adhesive) and shop (or sublet) services and fees.

“Our previous two surveys earlier this year, looking at refinish and structural repair operations, had great participation and are providing the industry with what I think is the most comprehensive data ever on ‘who pays for what,’” Mike Anderson of Collision Advice said. “This latest one looks at a variety of important topics, so while I’m intrigued to see what we learn about aluminum repair rates,

there are also just as many questions in the survey for shops not yet offering aluminum repair.”

Every shop that completes the survey (and provide optional contact information) receives the survey findings at no charge.

Shops can get the survey (during the month of October) by going to Autobody News to download it.

Anderson said the survey, which will take about 15-30 minutes, should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each individual shop location (whether a stand-alone business or part of a multi-shop operation) may submit one response to the survey. Each shop’s individual responses are held in the strictest confidence and are not released in any way; only cumulative data is released.

More details about the quarterly “Who Pays for What?” surveys, including the findings of the previous two surveys, are available here (www

.CollisionAdvice.com/survey).

A 62-page report on the first survey, for example, details shop billing and insurer payment practices related to 26 refinish-related “not-included” items. The most-recently published report focuses on 20 “not-included” repair procedures related to structural/frame and mechanical operations.

The results are broken down by insurance company and region. The reports also each include a set of resources shops can use to help put the data to use in their shop.

“The surveys will help shops understand what these operations are, and whether other shops seek and receive compensation for them – or if they truly are ‘the only one,’” Anderson said.

Collision Advice (www.Collision Advice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry.

Mike Anderson and his team offer real-world, cutting edge training and guidance both in the classroom and one-on-one in the shop.

Volvo Breaks Ground on First American Factory in SC

Volvo Cars of North America President and CEO Lex Kerssemakers, South Carolina Governor Nikki Haley and other key public officials officially broke ground on Volvo Cars’ first American factory in Berkeley County, South Carolina. Construction has now begun on the factory site, which will be capable of producing up to 100,000 cars per year.

Upon opening, the Berkeley County, SC factory will be the global production home of the all new S60 Sedan, which is currently under development at Volvo Car Group headquarters in Gothenburg, Sweden.

American-built S60s will be exported around the world through the Port of Charleston, along with another model yet to be determined. The first South Carolina-built Volvos are expected to roll off the assembly line in late 2018.

Volvo Cars estimates that the factory will employ up to 2,000 people over the next decade and up to 4,000 people in the longer term. An economic impact analysis compiled

by Dr. Frank Hefner at the College of Charleston estimates that, for an initial 2,000 direct jobs, more than 8,000 total jobs would be created as a result.

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What to Do if You Suspect Substance Abuse in Your Shop

by Ed Attanasio

If you’ve owned or managed a shop for more than a decade, you’ve likely encountered one or more employees who had issues with alcohol or drugs. Discovering the problem and then figuring out the right strategy to deal with it can be tricky.

Candy Finnigan is one of the interventionists featured on the Emmynominated reality show Intervention (A&E) and the author of When Enough is Enough. In this interview, we discussed the effectiveness and success rate of interventions while she provided her insights into drugs in the workplace.

Q:

Of all the interventions you’ve done on the show, have there been any people associated with the collision repair industry?

A:

Yes, we had one individual a few years ago who lived in the San Diego, CA area and his entire family was in the body shop business in some capacity. The father was working at a shop and going down to Tijuana, Mexico to get parts to re-sell, but he was also picking back more than just parts. He was using the money from the parts to feed his addiction and keep it going.

What addictions are you norQ: mally finding in the automotive repair industry?

Well, drinking has always been an accepted thing, whether it’s A: getting a six-pack after work when the

shop is closed or everyone going to a bar after hours. It’s been ingrained in this industry and many people don’t see it as a problem. The bigger companies, such as the car dealerships and the larger shop chains do regular drug testing, but with a lot of these smaller, independent shops, these types of things can easily fall through the cracks.

Some companies also check their employees’ credit scores, because if someone has a bad credit rating, they sometimes have been involved in something illegal.

Booze and pot are everywhere and one body shop owner told me that they’re not as concerned about marijuana, except for the fact that employees smoking weed are more apt to take naps and snack all the time. Opiates have never been a big concern for the

collision industry, because a pill popper wouldn’t even be able to function in a shop. So speed is the real offender and the most common drug we find in the automotive repair industry as a whole.

Drugs can be a Candy Finnigan part-time problem is one of the interventionists for a while and at featured on the first maybe they Emmy-nominated work with a couple reality show of beers or on the Intervention (A&E) weekends for most and the author of When Enough people. Users are is Enough attracted to many of these drugs, because they can allow them to stay up late and either party more or work more, depending. But, then it usually escalates and becomes a full-blown addiction.

What should a body shop Q: owner or manager do when he or she notices that drugs are in their shop?

It’s a gradual thing and this is how it usually happens. First, A: people will start showing up late for

work. That seems to be the first sign, especially if someone who used to come in on time, but now they’re chronically coming in late. This is a problem, because that means they will rush through jobs to make up for the lost time and of course they start making mistakes. Two things will likely become apparent here, because they will either start doing bad work or they get so obsessed with a job that they don’t get it done on time. They get hyper focused on the job and will sand or buff one hood for hours and hours, for example. They spend so much effort and time on a job that the shop loses money and rather quickly it can affect the bottom line. It can also impact the shop’s safety, because if you’re under a car and relying on a drugged employee to help you, that’s obviously a very potentially dangerous situation to be in. That’s when the body shop managers and/or owners need to step in, because they should see that this individual is bringing the entire shop down.

Once a shop owner or manager Q: knows that an employee is on drugs, what is the next step?

58 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

The first thing is to sit them A: down and tell them they need to get help. If they refuse the help, then

you have the right to fire them. If they do agree to get the help, you may or not be forced to pay for their rehab (depending on the laws in your state). You may also be covered by your insurance, because more and more insurance companies are back in the rehab business after many years of being out. If the employee in question goes to rehab, you have to hold their position and their pay for 60 days. And it needs to be documented by the rehab people, to make sure they’re actually getting help.

Is there any way that a conQ: sumer can know if a body shop fixing their car has a substance prob-

lem amongst their crew?

If you see the lights on late at A: night at a body shop, there is likely something sketchy going on.

They’re actually called “tweaker shops” and there are more than just a handful of them all over the country. One addict told me that you can get your car fixed in just 12 hours at those types of shops!

In some areas, consumers have the drug problems as well and you’re having addicts getting cars fixed by addicts. The problem is that the work is not guaranteed and there is really nothing you can do if the work is shoddy.

Q: Do interventions really work?

Yes, definitely. I tell people that an intervention is one of the A: most profound acts of love that any-

one can do for someone else. This is what we see and that’s what we know.

Whatever the person has done before to get clean hasn’t worked and that’s why we do the interventions. Interventions don’t fail; people fail, but it is very rare. We have a 98 percent success rate with interventions, so yes I would say they do work.

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 59

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60 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 61

Day Job/Night Job

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

Body Shop Owner in IA Restores Cars Part-Time While Saving Lives Full-Time with Ed Attanasio

As a paramedic for Ottumwa Regional Health Center in Ottumwa, IA, Steve West, age 74, could be one of the oldest active emergency medical technicians in Iowa. For the past 34 years, he has been saving lives three days a week and during the rest of the week he restores primarily classic cars at his small body shop.

After working at body shops as a teenager, West decided to go back to school and become a certified paramedic to serve the community and make a difference. “My brother died in a car accident many years ago, and I have always wondered if things could have been different if someone with this kind of training had been present,” he said.

“We work with people in emergency situations and in many cases they are lives on the line. Being able to make a personal connection to patients quickly is important to build trust and be able to help them.”

West encounters people all the time

only 40,000 people here in Ottumwa, so it’s not a big place. One man had no pulse and we brought him back and then later he thanked me personally. It meant a lot.”

B2B Automotive President Michelle Nelson has been selected to present “Don’t Let Consolidators & MSOs Steal Your Insurance Work” at the Society for Collision Repair Specialists’ Repairer Driven Education (RDE) series during SEMA. Nelson’s presentation is scheduled from 12:30-2:30 p.m., Wednesday, Nov. 4. The session will focus on helping independent auto collision repair shops successfully grow their insurance work and customer base.

“Many independent shops assume that DRPs are no longer attainable due to the market dominance of consolidators and large local MSOs. That is not the case,” Nelson said.

“Understanding what is most valued by your local insurance partners is critical to positioning yourself as a unique business partner to take back control of your DRP business.”

Nelson brings to SEMA participants more than 25 years of experience in marketing and a family tradition in the auto body industry.

To register, visit www.scrs.com/ rde. For information, contact Michelle Nelson at michelle@btobauto motive.com or 888-222-5128.

For those who own or operate a body shop and want to know how to make more money on existing sales, Valspar Automotive’s Charlie Whitaker will be talking during the SEMA show about understanding profit centers.

Whitaker will present “Optimizing Your Shop Sales Mix” on Nov. 6 from 9:30 a.m.-11:30 a.m. in Upper North Hall, N237, of the Las Vegas Convention Center. His presentation is one of the Society of Collision Repair Specialists (SCRS) Repairer Driven Education (RDE) programs being offered at the show.

Whitaker, the Quality First Technical Advisor for the U.S. market, has worked for shops and manufacturers for more than 20 years and has numerous industry accreditations and certifications. He will explain: ● How to produce a profit and loss statement that allows you to understand and adjust your sales mix; ● How financials correlate to operations and profits; and ● How to build an optimized chart of shop accounts to measure business performance.

Register at www.semashow.com. For information about Valspar Automotive, visit www.valsparauto.com.

B2B Automotive’s Michelle Nelson to Present at SEMA

who are grateful for his role as one of Ottumwa’s four paramedics. “I’ve saved a few lives over the years and I see some of them here in town, which is obviously satisfying,” he said. “There are

Steve West, 74, is a paramedic for Ottumwa Regional Health Center in Ottumwa, IA who also owns a small body shop where he restores classic cars. He is likely the oldest emergency medical technician in the state of Iowa

Valspar Automotive Executive Talks Strategy at SEMA

62 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

West is proud of both of his jobs and what he has achieved in his life.

“I’ve been painting cars my entire life pretty much and I worked for numerous shops around here over the years. I’ve painted murals and worked on some amazing vehicles and I still have a passion for it. Being able to balance both jobs, as a body shop guy and a paramedic—it’s a great life and I would not change it for the world.”

Today, West runs a small car restoration company called Colorgraphics, located in Blakesburg, IA, 20 miles outside of Ottumwa, where he does just everything except mechanical repair and upholstery. “I can do the entire car or sub out different aspects of the restoration. I really enjoy doing the graphics; using multiple colors and spraying PPG.” Some of West’s restorations and paint jobs have appeared in national magazines and he has had a few celebrity clients over the years too, he said.

“I’ve done some really classic cars and right now I am working on a 1968 Ford Mustang. A few years ago, I did a few vehicles for local drag racer Tommy Johnson, Sr. and he was great to work with.”

West works three, 12-hour days as a paramedic and then uses the other four days to work at Colorgraphics, in Blakesburg, IA

West’s work schedule as a paramedic allows him to take off four days every week, which gives him ample time to restore cars and make a few repairs, on occasion. “I work 7 a.m. to 7 p.m. three days every week as a paramedic and then I use the other four days to work on cars,” West said. “It works

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out well, because I can get into a job and I don’t have to start and stop.”

West’s wife Peggy is also a paramedic, so they work a lot together, he explained. “We work in teams of two and Peggy is usually working with me. It’s nice, because we get along well and enjoy working with each other.”

West has seen a few shootings and a few serious car accidents, but he is happy to say that fatal collisions are less frequent than when he started. “More and more people walk away, primarily because of the fact that these newer cars are so much safer than say a decade ago,” he said. “Most of the accidents we see now are not critical and that’s a major deal. Our job is to help people and save their lives, so fatalities are something we want to avoid for obvious reaContinued from Cover

Charles Bryant

say white paint, insurers cannot justify an allowance for paint and materials based on dollar figure per paint hour, PERIOD! Yet, the NJ Department of Banking and Insurance either looks the other way or supports the insurer’s position, essentially ignoring the bulleting that they them-

sons. No one wants anyone to die on your shift, that’s sure.”

Eight years ago, West got a scare when he found out that he had cancer.

But today he is cancer-free and has no plans to retire. “It was a lucky thing, because the hospital gives us a complete physical every year as one of the re-

quirements of the job and in 2007, they found prostate cancer just in time. Some people have told me that I probably built up some good karma working as a paramedic, and maybe that is true, who knows?”

A large number of all the car accident calls that West and Peggy respond to are often deer-related, he said. “Iowa has a lot of deer and that’s why we’re number four in the country when it comes to accidents involving deer. They’re like cattle, but they move faster and they don’t look both ways before they cross the road.”

Doing restorations when he isn’t saving lives at a paramedic is a nice situation for West. While most people are

already retired or considering it, West is happy to be right where he is. “I like the fact that I don’t have to deal with the insurance companies, in most cases.

Every once in a while I will get a collision repair in here, and that’s fine, but my main focus is restoring cars for people. With collision repairs, the insurance companies want it now, but with restorations, the customers aren’t usually breathing down my neck to get it done.”

What does the future hold for West? “I may cut back my paramedic schedule when I turn 75, but really I have no plans to retire completely,” he said. “I love helping people and I know I can work on cars as long as I want, so why change anything. Many people don’t like their jobs, but I have two and I like them both… a lot!”

selves issued. Therefore, if the prosecutor is going to go after a fellow like this guy, who apparently provided false documentation in order to get paid or overpaid for the cost of paint and materials, then the prosecutor should also be going after the insurance companies that are utilizing an outdated system that does not provide proper and accurate information on the cost of the paint and materials required to

repair the damaged vehicle being repaired and paid for by the insurer. Again, for the record, I in no way support or even feel bad for a body shop owner who would create a false invoice or provide false documentation. However, in my opinion, this guy is no worse than an insurance company that is coming out to the collision shops and doing basically the same thing, but in reverse. The law

should not be one-sided. If this guy is going to be charged with fraud or charged with a crime for supplying false documentation in order to get paid for more than he is entitled, then the prosecutor should be willing to charge insurers that are using false information to support their denial of the actual cost of the paint and materials they owe for on an insurance claim.

West is currently restoring this 1968 Mustang

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 63

Continued from Page 54

Rivets Part 2

also loose some of strength due to vibration and movement. If the vehicle is again in another collision, this area could become a weak point in the distribution of the collision energy. Finally on solid rivets, the same tools for installing SPRs can be used for solid rivets, but you will need to change the madrels. The same holds true for removal. Moving on to the blind rivets.

The correct blind rivet is paramount in a proper and safe repair. Take a look at the next set of pictures to see what I mean.

You will notice that there is no much difference on the front side.

Fig. 22. Showing the front side of the panels using a Hemlock Blind Rivet and Garden variety pop rivet (these came from Home Depot)

Now look at Figs 23 &24 which are the back side of the panels.

You don’t have to be a rocket scientist to see the difference. These pic-

for installation and it is not necessary to have access to the backside. A repair shop called one my contacts who furnish riveting tools. The shop was complaining that his rivet gun did not work on the back panel of the bedside of the F150. It seems that the A-arm on the gun would not reach all of the attachment points for installing the SPRs. You will notice that the front panel is install with 3 different blind rivets and not with SPR. As I previously stated, you can not repair these new vehicles without the OEM recommend procedures, specific training and correct

Fig. 28. Problems that occur with the wrong rivet used http://electricalequipment.tpub.com

against the backside of the panel. This rivet has high shear and tensile properties and fills the hole. This rivet is excellent for holes that are slightly larger than the recommended hole. See Fig 26.

These are used where there is no access to the inner panel, so the rivet gun must work from one side only. A hole has to be drilled the size of the rivet head, eg for a 6.5 mm rivet, a 6.7 mm hole must be drilled.

The length of the headform must be long enough, 2mm longer than the overall thickness of the stack and be long enough to clamp the panels together. The shape of the headform will be decided by the job required. A countersunk headform will fit into a countersunk hole. The breaking point of the Fig. 25. Furnished by I-CAR as part of their FOR 06 Class mandrel must be correct. e.g. tools and proper use of those tools.

This is a disaster in the making and you better be ready. Enough on my soap box. Lets look at the Monobolt.

A monobolt is a specific type of blind rivet. The mandrel is pulled into the cylinder and expands the cylinder

used. (Recommended RIBE). This is dictated by the car manufacturer.

(Taken from Dave Grusko’s presentation.)

Again, you need to look at the OEM repair data to determine the proper blind rivet. In Fig 28, you can see the problems that occur when the wrong blind rivet is used.

The other type of blind rivet that is being used in the collision repair process is the hemlock rivet. Fig 29.

This rivet also need a hole for installation and does not need access the backside of the panel. The mandrel is pulled over the rivet body and the entire rivet is compressed against the rear

Fig. 29. Cross section of a Hemlock Rivet.

Courtsey of I-CAR

panel. See Fig 30 for the sequence.

There is a large footprint on the back panel and this rivet has superior tensile and shear strength. Moreover,

Fig. 23. Back side of the panel with Hemlock Rivet Fig. 30. Diagram on how a monobolt works.

Coutesy of www.ejot-avdel

Fig. 26. Monobolt cross section. Courtesy of I-CAR Fig. 24. Back side of the panel with pop rivets installed

tures are self-explanatory. We will look at the Monobolt and Hemlock blind rivets.

It should be noted that a proper hole as specified by the OEM in needed

Fig. 26a. Diagram on how a monobolt works.

Coutesy of www.ejot-avdel

64 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Fig. 27. Terms used for blind rivets. Courtsey of Dave Gruskos

On the repair of a MB Sill section, rivets with 1.9 ton breaking point must be

this rivet is highly recommended for thinner pieces of sheet metal.

The third part of this article will discuss the various types of rivet guns, advantages of FFR rivets, adhesive preparation and a few of the vehicle repair procedures for replacing parts with adhesives and rivets. Did you think this article was a riveting experience?

www.autobodynews.com C

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Subaru Sees Record Demand, Plans IN Plant Expansion by 100,000 Vehicles

Subaru is experiencing record U.S. demand and will expand annual production capacity by 100,000 vehicles at its sole U.S. plant. The company will invest $140 million to do so. The Subaru of Indiana plant in Lafayette, one of the automaker’s three plants worldwide, will gain 1,204 jobs by 2017.

The factory currently employs more than 3,800 workers and produces about 300,000 vehicles per year, according to a press release.

The announcement comes after Subaru had said it will begin production of a seven-seat SUV at the Lafayette

plant after 2017. The SUV will be exclusively sold in the North American market, Yoshinaga said. Subaru’s Outback and Legacy and the Toyota Camry are currently produced at the plant.

Fuji Heavy Industries, which owns Subaru, said previously that it would halt Camry production at the plant, which has been building the sedan since 2007. Toyota has confirmed it will end Camry production will end in fall 2016 and shift output to its Georgetown, KY, plant. The Camry's departure would free up capacity of 100,000 vehicles, on top of the additional 100,000 announced.

The hiring and investments will “enable SIA to build more Subarus to help meet the growing demand,” said Tom Easterday, Subaru of Indiana executive vice president, in a statement. “The substantial increase in production volume at SIA will also result in new jobs and investment by many of our suppliers across Indiana.”

This is the second major investment in Subaru’s Indiana plant in recent years. The plant is undergoing a $400 million expansion, designed to allow Subaru to begin production of the Impreza model by the end of 2016.

Certified Collision Group™ Expands 1stCERTIFIED™ to 26 Shops, 4 States

Certified Collision Group™ (CCG) announced its 1stCERTIFIED™ initiative last week, now announces nine (9) additional facilities, to total 26, as CCG expands from California into Idaho, Washington and Oregon.

One of the new Affiliates joining CCG is Parks Royal Body Works of Boise, Idaho. Almost 40 years ago, Ted Thornton and a partner took the opportunity to purchase their facility. His son, Matt Thornton grew up in the family business and eventually became its owner in 1999. Their family, employees, and community have depended for

almost 7 decades on Parks Royal and its commitment to craftsmanship, exceptional service and professionalism.

Parks Royal’s OE Certifications, CSI scores and cycle time make them a great fit for CCG. “Having 1stCERTIFIED™ brand complement our current values and partners is crucial to us in today’s marketplace,” commented Thornton. “The ability to participate in a larger network—while maintaining our individual identity—is the kind of support we’ve been looking for. My family and our staff are excited to grow into

the future with the Certified Collision Group.”

Thomas Adams, CCG’s Managing Director notes, “Parks Royal is a prime example of how CCG will grow its 1stCERTIFIED™ initiative; adding unique value for well branded, owner operated, performance-driven organizations.

“Our ability to quickly expand into multiple markets is based on the value of our non-intrusive, high performance solutions to both qualifying collision repair businesses and the auto insurance community.”

Chief Videos Show How to Hold a Vehicle for Sectioning or Pulling

With more than 50 components, the Chief Automotive Technologies Structural Holding Package offers many ways to secure a collision-damaged vehicle to a frame rack for repair. In order to show users some of the possibilities, Chief has created a video series hosted by Richard Perry, OEM and strategic account sales manager.

The videos can be viewed at www .chiefautomotive.com/FixtureHolding/Structural-Holding and on Chief’s video library page.

“No matter if you are sectioning or pulling, it is imperative that the vehicle is securely held during the repair,” says Perry. “Supplemental holding points on the frame rack keep the vehicle from moving out of place, and also facilitate the multipoint pulls that may be required to return a vehicle to OEM specifications. Chief’s Structural Holding Package is effective with body-onframe and unibody vehicles, and our new video series shows how to create holding points for each type.”

To watch the video series or learn more about the Structural Holding Package, visit www.chiefautomotive .com/Fixture-Holding/StructuralHolding.

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Assured Performance Launches Smart App for Accident & Collision Care

Assured Performance Network, the country’s largest Certified Collision Repair Network, announced the official launch of their consumer-facing smart phone App–Accident & Collision Care. The Assured Performance consumer-facing smart App instructs vehicle drivers to properly document the details of an accident including: photos, other driver’s information, a comprehensive accident description and all the critical information needed to create a complete detailed accident report.

Consumers may also select a Certified Collision Repair Provider of their choice, set an appointment and send the entire report to the shop or any other interested parties. The free consumer smart phone App is now available on Apple App Store and Android Google Play.

What makes this app unique and a game-changer is its ability to automatically set an appointment with an OEM Certified-Recognized Collision Repair provider in their community much like an insurer Direct Repair Program (DRP) assignment works today. The App identifies Certified shops based upon the VIN or year, make, and model of the vehicle and geo-location, or the consumer can pre-select their preferred Collision Repair Provider. The App even uploads the entire accident report including the critical insurance and vehicle information and confirms the connection between the Certified shop and the vehicle driver.

The foundation of the smart Apps and shop locators alike is the network of thousands of Certified-Recognized body shops

located in nearly every community. All of the Certified Collision repair providers have met or exceeded standards for tools, equipment, training and facilities required by the participating Automakers to properly repair their vehicles to manufacturer specifications helping to ensure the fit, finish, durabiity, value and safety.

In addition to the Assured Performance consumer App, the participating Automakers already have, or soon will have, smart Apps and online Certified shop locators specific to their vehicle models that leverage the same database of Certified Repair Providers. Combined these are creating an OEM customer referral program supporting the shops that are Certified. This approach further delivers on the Assured Performance claim,

“Certified Once, Recognized by Many.”

“Now that our network of Certified shops blanket nearly the entire country, we can actively educate the consumer and provide them with a Certified Repairer choice almost anywhere they might need and want one” stated Assured Performance Chairman and CEO, Scott Biggs. “Our mission is to ensure that all consumers receive an exceptional repair experience delivered by exceptional businesses.”

The Accident & Collision Care App is free with no in-store purchases.

This smart App can be utilized as an emergency tool in the moment of crisis or downloaded ahead of time (recommended). For additional information, visit http://app.collisioncare.org/.

Mike Anderson of Collision Advice foresees a day when virtual steering is the norm. Anderson spoke at a recent event hosted by Pfaff Autoworks in Vaughan, Ontario, as reported by Canada’s Collision Repair Magazine. During his presentation, Anderson outlined coming trends in the industry. One of the important trends he highlighted was a coming shift in the way the industry operates in terms of the way cars are directed from

the scene of an accident into a shop. “Get ready for the era of ‘virtual steering’, ” said Anderson.

The term virtual steering refers to a coming era in which cars can be directed to certified repair centres through services like GM’s OnStar.

It seems likely that in the years ahead, services like OnStar, which provide communication links between a call centre and individual vehicles, will ex-

pand and evolve. As these communication links evolve, in-car communication services will ask drivers involved in an accident what collision repair centre they want their vehicle delivered to.

Anderson played a video during his presentation that dramatized how the immediate moments after a fender bender will play out in the coming era of connected cars. If a vehicle gets in an accident the driver will be contacted. The

call centre will confirm the driver is okay. If they are, but the car is damaged, the driver will be asked which collision repair shop they want their vehicle directed to. The call centre will text a list of local certified repair shops. The driver chooses one. The call centre makes the initial contact with the insurance company for the driver. This new system will be driven by OEMs. “It’s not far away,” says Anderson.

Mike Anderson Outlines ‘Virtual Steering’ Risks for Shops During Talk at Ontario Body Shop

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 67

Dave McClelland to Host Final SEMA Awards Banquet

Dave McClelland, the renowned announcer who began emceeing the SEMA Awards Banquet in 1976 when the SEMA Show was in Anaheim, California, is stepping down from the podium and will host his final SEMA Awards Banquet, Thursday, November 5. Known by many as the golden voice that presided over the NHRA races for decades, McClelland entertained thousands for 40 continuous years as he in-

Dave McClelland will host his final SEMA Awards Banquet, Thursday, November 5, 2015, in Las Vegas

troduced leaders, legends and icons during the SEMA Awards Banquet.

“It’s very difficult to make this decision [to stop announcing the SEMA Awards Banquet] because I have the utmost respect for SEMA,” said McClelland, who compares his 40-year stint with SEMA to that of Vin Scully with the Dodgers. “Announcing the SEMA Banquet has become a very personal

thing. I take great pride in doing the best job that I can do.”

While McClelland stopped announcing for the NHRA in 2003, he continued to emcee the SEMA Awards Banquet and never missed a single year.

As host, he introduced and stood alongside the industry’s most celebrated leaders, including SEMA Hall of Fame members, SEMA Persons of the Year and entertainers, such as Jay Leno, Sinbad, the Beach Boys and Willie Nelson.

“Every once in a while, we get to be a part of the magic that happens when exactly the right person is performing in a particular role. So it has been for all of us in the SEMA community who have enjoyed Dave’s special talent, blended with his deep familiarity and involvement with the people in our industry,” said Chris Kersting, SEMA president and CEO. “Dave has always imparted a level of care and excellence befitting the many folks he has helped SEMA honor over the years. He is deserving of our deep appreciation.”

Tickets to the SEMA Awards Banquet are available online. More than 3,000 are expected to attend the event, An autograph signing will take place, Tuesday–Wednesday, November 3–4, from 10:30–11:30 a.m., and 1–2:00 p.m., in the Grand Lobby of the Las Vegas Convention Center.

Valspar Automotive Paints a Brighter Future for Artists4Education and CREF Valspar Automotive is bringing its brand family of performance coatings and products together with the creative talents of top custom artists

to SEMA to raise money through Artists4Education and help fund the Collision Repair Education Foundation (CREF).

Artists including Ryan Evans of Count’s Kustoms and The History Channel’s Counting Cars, Josh Culver of Culver’s Customs, Ron ‘Flea’ Fleenor, John Wargo of The Custom Shop, Nub of NubGrafix, Jon Kosmoski of House of Kolor, KC Mathieu of KC’s Paint Shop, Jason Jewett of Red House Custom Paint and more are offering their time and creative skills by painting and donating items to be auctioned off dur-

ing the SEMA show. The funds received will go directly to benefiting CREF, which gives future technicians the proper education and training for a successful collision repair career.

“This is the very heart of what we love about how car and motorcycle culture and art come together—the unleashed creativity, and generosity, is simply mind blowing!” said Laura Yerkey, marketing director, Americas, at Valspar Automotive.

By purchasing the auction items, at the SEMA trade show or online, fans of these artists have a chance to own a unique piece of American history. Monetary donations are being accepted on the Artists4Education website, www.artists4education.org.

To view many of the items as they are painted live during the SEMA trade show, visit Valspar Automotive booths #10851, #10655, and #23513.

www.autobodynews.com CHECK IT OUT!

68 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

GFS to Demo REVO Accelerated Curing System at SEMA Global Finishing Solutions (GFS) will feature REVO accelerated curing systems for the North American collision repair industry during SEMA. “GFS is excited to be featuring the REVO products at SEMA. We carefully researched accelerated cur-

increase in paint shop throughput and high-quality results. All REVO systems integrate into existing paint shop footprints and are backed by GFS’s extensive distributor network and warranty.

With consolidation in the repair industry, Lowder said body shops need to improve repair efficiency without sacrificing quality. He added that the REVO systems can improve paint shop throughput up to 80%, work within a paint shop’s current footprint and produce high-quality results.

GFS will show the Speed, Spot and Handheld models from the comprehensive REVO product line Global Finishing Solutions’s REVO equipment line at Booth 11123.

Additionally, GFS has teamed up ing technology before deciding to bring the REVO brand to North Amer- with Axalta Coating Systems to inteica,” said Brandon Lowder, GFS VP grate the REVO Speed model into of auto refinish. “We believe that the Axalta’s live paint demonstrations.

REVO technology is the safest, fastest Axalta will be demonstrating the latway to cure filler and coatings in order est in innovative coatings technology to improve both paint shop efficiency and rapid production with the REVO Speed in the Axalta “Engineered for and quality.”

REVO systems use electric in- Speed” paint booth, a GFS Ultra XR frared technology, which generates semi-downdraft booth located just short wave energy that quickly cures outside of the central hall front enthe repair from the inside out. The ac- trance. Registration for Axalta classes celerated complete cure allows for an can be found at Booth 61009

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If Auto Injury Claims Frequency Is Falling, Why Are Claims Costs Rising?

Auto insurance bodily injury claims costs are still increasing in the United States, even though better vehicle safety has helped reduce claims frequency, according to the Insurance Research Council (IRC), as reported by InsuranceJournal.com.

The insurance organization said improved vehicle safety, graduated licensing laws and other safety factors have not been enough to offset substantial increases in the cost of injury claims.

The average cost per paid liability claim has jumped more than 30 percent from 2005 to 2013, the researchers found.

The IRC said the results point to a need for further scrutiny of what is driving these costs.

“Documenting the specific drivers

of cost in the states where cost growth is greatest will be a priority for the IRC in the years ahead,” Elizabeth Sprinkel, an IRC senior vice president, said in prepared remarks.

Bodily injury liability claims frequency fell nationally by 14.5 percent from 2005 to 2013, the IRC determined in “Trends in Auto Injury Claims, 2015 Edition.” That translates to a dip from 0.94 paid claims per 100 insured vehicles to 0.81 paid claims.

At the same time, however, the average cost per paid liability claim grew from $11,738 to $15,506, a jump of 32.1 percent.

The same thing happened with personal injury protection (no fault) claims, which dropped in frequency from 1.49 to 1.25 paid claims per 100 insured vehicles

over the same period. But, according to IRC, the average cost per claim jumped in this category from $5,802 to $8,017, a 38.2 percent hike.

The IRC said that every state except for Florida, Kansas, Kentucky and Maryland saw a decline in bodily injury claim frequency from 2005 through 2013. Also, every state with personal injury protection coverage (PIP), except for South Carolina, had a drop in PIP claim frequency.

Meanwhile, every state except for West Virginia experienced a jump in bodily injury claim severity from 2005 to 2013. All U.S. states save for Pennsylvania experienced an increase in PIP claim severity.

Some states saw jumps that were worse than others. Michigan, for exam-

ple, had the average payment per personal injury protection claim soar from $25,997 to $44,756 over the studied period, a 72.2 percent jump. New York and Washington saw increases of more than 40 percent, the IRC noted.

The IRC suggested that reports of a jump in traffic deaths could signify “a change in the beneficial long-term trend of declining claim frequency,” something that could make costs trends more severe.

The IRC is a division of the American Institute For Chartered Property Casualty Underwriters (The Institutes) and is supported by property/casualty insurers.

The IRC report is based on claim data from national and state-level statistical reporting agencies.

Last month, the Environmental Protection Agency (EPA) issued a notice of violation (NOV) of the Clean Air Act (CAA) to automaker Volkswagen and its affiliated companies.

The NOV came as a result of allegations that Volkswagen had knowingly installed emission-test defeating software in its four-cylinder Volkswagen and Audi diesel cars from model years 2009-

2015. According to the EPA, this resulted in the cars emitting up to 40 times the amount of mono-nitrogen oxides (NOx) emissions that the standards allow.

In response to inquiries from ASA’s members and the media, Dan Risley, ASA’s president and executive director, released the following statement: “The Automotive Service Association (ASA) works with state and federal air

quality administrators through emissions testing and maintenance programs as well as other state and federal programs. We have offered to provide assistance to Volkswagen. ASA is interested in helping them enhance their efforts as they work through the process of resolving the current situation for the vehicle owner.

“It is our desire to assist Volkswagen in notifying independent service repairers

of the information needed to properly repair our mutual customers’ vehicles. ASA will continue to monitor the situation and report any developments that may impact the service repair industry.”

For additional information about ASA, including past media releases, go to www.ASAshop.org or visit ASA’s legislative website at www.TakingThe Hill.com.

ASA Responds to Volkswagen Emissions Investigation

I-CAR® Welding Training & Certification™ Program Now Available Through Career & Technical Schools

I-CAR® now offers their industry-recognized Welding Training & Certification™ program as a curriculum option for career & technical schools. I-CAR approved and licensed Educators can deliver the courses in an academic setting.

The Welding Training & Certification for Educators is based on the same training curriculum that I-CAR offers to the Collision Repair industry.

Students that successfully pass the skills portion of the curriculum will earn I-CAR’s professional welding certificate, and is valid for five years.

Taught in conjunction with the PDPEE, approved Educators are authorized to deliver the I-CAR Welding Training & Certification program in their career & technical schools.

“The Welding Training & Certification for Educators creates a more robust collision repair training program for schools,” said I-CAR senior director of segment development, Bill Stage. “It enables career & technical schools to fuel the industry with highly-qualified entry-level non-structu-ral technicians.

Today, 64 percent of professional technicians have not completed I-CAR’s steel welding training. The Educator program will contribute to getting every

technician that welds properly trained, something the industry desperately needs.”

The Auto Collision Repair and Refinishing program at Fox Valley Technical College is the first of its kind to expand the program to include the ICAR Welding Training & Certification program. Launched in the the 2015/ 2016 academic year, the college offers both the steel and aluminum welding options. To date, 75% of the students enrolled in the collision repair program are also enrolled in welding.

“Fox Valley is proudly teaching the I-CAR Education Edition curriculum.

With the addition of the welding program, students at Fox Valley wishing to pursue a career in collision repair will benefit from a more complete program geared toward development in soughtafter skills, including welding of both structural and non-structural vehicle components.” said Jerry Goodson, collision repair and refinishing instructor.

Career & technical schools that wish to become approved to deliver the program for Educators can apply on the I-CAR website or call 888-422-7211.

Program information will also be available at SEMA 2015 at the I-CAR booth #10873.

70 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 71

U.S. House Passes Federal Vehicle Repair Cost Savings Act

The U.S. House of Representatives passed S. 565, the Federal Vehicle Repair Cost Savings Act, on Sept.

28th, requiring federal agencies to consider using remanufactured parts for vehicle fleet repairs. The Motor & Equipment Manufacturers Association (MEMA) and its remanufacturing division, the Motor & Equipment Remanufacturers Association (MERA), applauded the vote. “We thank the House of Representatives for passing this important legislation,” said Steve Handschuh, MEMA president and CEO. The legislation requires all federal agencies to consider using remanufactured parts in maintaining the federal vehicle fleet, which numbers more than 588,000 vehicles. A 2013 GAO study found that the federal government spends nearly $1 billion per year on fleet maintenance, but there is no uniform policy among agencies about using remanufactured parts.

Tony Passwater Named Director of Green Service Standards Committee The Green Service Standard “GS2” committee announced that Tony Passwater will take the reins as Director.

The GS2 committee was launched last year in Las Vegas to organize an industry standard for shop operators to certify vehicles according to the fueleconomy.gov rating system.

GS2 Committee Chairman, Steven Schillinger said that Tony brings over 40 years of automotive service and repair experience as an organizer and leader. As director, Passwater will oversee the criteria for the knowledge areas required to attain GS2 accreditation, which serves as a public registry of individuals with the experience and understanding of how to evaluate a vehicles FuelEconomy.gov efficiency rating and climate score.

“It will be an honor to serve as director of the Green Service Standard committee and build upon all the good work that has been done since its launch,” said Passwater. “Most auto shop employees are products of their

DVI BOSS Revolutionizes Aftermarket Automotive Repairs with the New Digital Vehicle Inspection

Utilizing cutting-edge, web-based technology, DVI Boss enables automotive repair shops to complete Digital Vehicle Inspections that provide customers with a complete inspection of their vehicle, including photographs, videos, and technician notes.

This Digital Vehicle Inspection application interactively shows the condition of the different components of a vehicle. With DVI Boss, auto repair shops can provide better service to customers and improve profits by not only reducing costs of paper inspections but also technician time.

Once a DVI Boss Inspection is completed by the automotive repair shop, a link to the DVI is sent to the vehicle owner via text message or email.

By clicking the link, owners can view the inspection notes, photos and video right on their computer, tablet or smartphone.

Chris Boshaw, President of CSB Technologies, suggests that both customers and the repair shop will see the

value of this easy-to-use application.

He states, “Once drivers can see the actual photos and videos of the needed repairs, they will generally have a higher level of confidence that the recommended repairs are both necessary, and can be performed by the repair shop.”

DVI Boss is available as a standalone application and does not require any specialized hardware. An automotive repair shop only needs the ability to access the internet to upload photos and/or videos captured on their tablet, smartphone or camera. DVI Boss can also be integrated with a repair shop’s existing Shop Management Software and is also fully integrated with Shop Boss Pro, the flagship Shop Management Software application from CSB Technologies. DVI Boss is an affordable option to increase customer service and satisfaction as well as improved profitability for the shop. A subscription to DVI Boss is priced at just $98.00 per month to the auto repair shop with no long term contract.

Global auto manufacturers have made considerable progress in increasing fuel economy and reducing nitrogen oxide (NOx) emissions. Experts at Emissions Analytics see the U.S. getting closer to 2025 federal fuel economy targets by adopting approaches from Europe. The Corporate Average Fuel Economy (CAFE) target of 54.5 miles per gallon by 2025 is actually the equivalent of an EPA sticker fuel economy of about 41 mpg, (nearly 20 percent lower because

of the manner in which they are calculated). U.S. passenger cars and light trucks tested by Emissions Analytics currently achieve 24.9 mpg in realworld driving, which will require a two-thirds increase to get to the target.

By contrast, Europe already is achieving 36.8 mpg. Adopting more fuel-efficient European technologies such as direct injection and variable cylinder technology could add a further 3.7 mpg to reach 33.2 mpg.

U.S. Will Need To Adopt European Approach To Achieve MPG Targets

72 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

experience, and the core of our mission will be to connect technicians, estimators and service writers to the most rewarding state-of-the-art challenges we can find.”

As a consultant, Passwater has worked for many leading Industry organizations over the years, as well as many volunteer committee positions.

He has actively been involved in the ASA, Automotive Management Institute (AMI), I-CAR, CIC, and SCRS. In 2014, he achieved the Automotive Management Institute’s Accredited Automotive Managers (AAM) designation. He is also ASE Master Certified and serves currently as director of the Indiana Auto Body Association (IABA).

“Tony Passwater is a leader, educator and award-winning journalist. He has enjoyed distinguished careers in industry and academia, and will expand GS2’s partnerships with ASE, I-CAR and its industry presence nationally,”

said Steve Leal, President at Fix Auto Canada. “I look forward to working with him as we educate and train specialists for multi-platform technologies in today’s rapidly changing auto industry,” Steve added. “He will make an impact on student careers and lives, and will reinforce the committee’s commitment to being at the forefront of tomorrow’s automotive standards and practice.

The Green Service Standard (G2C) is an eco-friendly technology group for the automotive aftermarket, representing 10 vehicle service and repair industry segments in the United States and Canada, including Motor Vehicle Dealers, Automotive Stores, Gasoline Service Stations, Collision Shops, Exhaust System Service, Tire Shops, Glass Replacement Business, Transmission Repair Shops, Car Washes and Automotive Oil and Lube Shops.

For More Information about GS2, contact Tony Passwater at: Tony.Passwater@aeii.net.

Subaru Selects OEC® Collision Parts Ordering and Fulfillment OEConnection LLC (OEC), a parts ecommerce technology leader for original equipment manufacturers’ (OEM) distribution networks, announced that Subaru of America has selected Colli-

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I-CAR® Adds New Vehicle Technology & Trends Course, Updates Existing Brazing & Measuring Course

I-CAR has announced its fourth quarter product launch, which includes new and updated courses designed to help technicians and repair facilities prepare for today’s rapidly evolving collision repair industry. A new version of one of I-CAR’s most popular classes takes an in-depth look at 2016’s emerging vehicle technology and trends, while two updates add important new content to I-CAR’s existing foundational MIG brazing and measuring courses.

Vehicle Technology & Trends 2016 (NEW16) shines a spotlight on the new developments that repair facilities can expect to see in 2016 and beyond. The Technical Tsunami™ facing our industry is real and NEW16, which continues the popular “New” series, covers what’s changing on the cars that will soon be arriving in collision repair facilities across the country. The live course includes interviews with OEMs as well as a detailed look at new vehicle features, materials and more. Be aware and be prepared!

Course updates include expansions to MIG Brazing Theory (BRZ01e), an online course that helps technicians fully understand the applicability and uses of MIG brazing. MIG brazing has become

a required repair method for a growing number of popular vehicles, and this course prepares technicians to perform complete, safe and quality repairs when MIG brazing is one of the required attachment methods. The course now includes updated repair procedures and new and improved graphics and videos.

I-CAR has also updated Measuring (MEA01/v) to include newly refreshed vehicle examples, practice activities, graphics, animations and videos. All of this enhances the learning experience, contributing to better student learning retention and application when back on the job. The course is conveniently available in both a live classroom and virtual classroom format.

“I-CAR is committed to helping collision repair technicians and facilities stay on top of industry trends and evolving repair processes,” explained Josh McFarlin, I-CAR Director of Curriculum & Product Development.

“We are continually developing and updating our courses to reflect the mix of repair skills and knowledge that is required to produce complete, safe and quality repairs both today and tomorrow.” Visit i-car.com/newcourses.

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• The ASA Collision Division Operations Committee has been busy. Since its last report, it has compiled, organized and launched two new ASA publications to assist collision shops in writing a complete estimate. The ASA “Documented Collision Repair Operations” and “Reference Chart of NotIncluded Operations when Installing New Replacement Parts” are available for download on the ASA website.

These helpful guides are offered by ASA (www. asashop.org) as a service to the industry. We’d also like to offer special thanks to Mike Anderson for doing a lot of the heavy lifting on this project.

Committee Continues Efforts on Feather Prime Block Issue • The Collision Division Operations Committee continues its efforts with the information providers on the Feather Prime & Block issue. FP&B has already been incorporated into the Audatex estimating system, and we will continue to encourage all information providers to do the same. We also have reached out to the Database Enhancement Gateway for its help with a project involving unpainted parts to provide a listing of raw plastic parts for inclusion

with other ASA documents available free to the industry to aid in the estimating process.

• The Ops Committee met at NACE, which provided the opportunity to invite industry partners for a productive meet-and-greet discussion on a variety of topics. It was a great way to continue our industry dialogue into 2016 and to thank them for their support of the committee’s mission. ASA Chairman Donny Seyfer, AAM, brought them up to speed on the telematics issue, while Robert L. Redding Jr., ASA’s Washington, D.C., representative, outlined the legislative picture for the rest of the year and into 2016.

The committee members also discussed and approved a more streamlined approach to the subcommittee structure.

• While at NACE, Ops Committee Chairman Scott Benavidez, AAM, presented Dan Stander, AAM, with the 2015 ASA Phoenix Award. “Dan has demonstrated consistent commitment and support for our industry and ASA,” Scott said in his presentation.

“He has been a great friend and mentor to me and many others in the industry. He is truly one of our industry heroes!”

PPG Presents Brilliant Colors & Colorful People at SEMA

Finish it like a Masterpiece

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ASA Collision Division Reports on Two New Publications, Operations Committee on Feather Prime and Block

During the SEMA show, PPG is bringing in the builders and painters who turn their imaginations loose to create designs and make them come to life with PPG brands. This group includes Bobby Alloway (Alloway’s Hot Rod Shop), Charley Hutton (Charley Hutton’s Color Studio), Dave Kindig (Kindig-It Design) and Tom and Mitch Kelly (Kelly & Son Crazy Painters).

These painters will be in the PPG booth, ready to answer questions, sign autographs and talk about PPG products. In addition, popular graphic artist Kenny Youngblood (Youngblood Art) and racer Joey Logano, one of the fastestrising young drivers on the NASCAR circuit, will also be at the booth. Logano currently drives the Team Penske PPGpainted No. 22 Ford Fusion in the NASCAR Sprint Cup Series.

“SEMA is a great time to see some remarkable cars, meet some outstanding painters and learn about what’s happening in our industry,” said Cristina Fronzaglia-Murray, manager, marketing communications, PPG Automotive Refinish.

Schedule for celebrity appearances at PPG booth #24601: Tuesday, November 3 10:00 – 11:00 a.m. Charley Hutton,

Charley Hutton’s Color Studio 12:00 noon – 1:00 p.m. Kenny Youngblood, Youngblood Art 2:30 – 3:30 p.m. Tom and Mitch Kelly, Kelly & Son Crazy Painters

Wednesday, November 4 10:00 – 11:00 a.m. Dave Kindig, Kindig-It Design 11:00 a.m. – 12:00 noon Bobby Alloway, Alloway’s Hot Rod Shop 1:00 – 2:00 p.m. Charley Hutton, Charley Hutton’s Color Studio 3:00 – 4:00 p.m. Kenny Youngblood, Youngblood Art

Thursday, November 5 10:00 – 11:00 a.m. Kenny Youngblood, Youngblood Art 12:00 noon – 12:30 p.m. Joey Logano, Team Penske 1:00 – 2:00 p.m. Bobby Alloway, Alloway’s Hot Rod Shop 3:00 – 4:00 p.m. Tom and Mitch Kelly, Kelly & Son Crazy Painters

Friday, November 6 10:00 – 11:00 a.m. Dave Kindig, Kindig-It Design 11:00 a.m. – 12 noon Charley Hutton, Charley Hutton’s Color Studio For information, call (800) 6476050 or visit www.ppgrefinish.com

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 73

WIN Announces Record Membership Numbers, End of October Webinar

The Women’s Industry Network reThe Collision Repair Education ported on September 18 that record Foundation (CREF) hosted an open membership numbers have been achie- house event at Thaddeus Stevens Colved in 2015. The organization revealed lege of Technology (Lancaster, PA) that the group is now comprised of Friday, October 2 in recognition of over 400 women and men from vari- their 2014 Ultimate Collision Educaous segments within the collision re- tion Makeover school grant award. www.autobodynews.com pair industry.

Denise Caspersen, current WIN CHECK IT OUT! Chair, attributed the growth to an increase in industry outreach, last year’s #ALLIN4WIN membership drive and the dedication of the organization’s members.

“We are fortunate to have a group of individuals within WIN who are not only members, but are also advocates The WIN board during their strategic for the group and share the WIN mesTosession advertise planning sage frequently and enthusiastically,” call Advertising Sales at: stated Caspersen.

Thaddeus Stevens College of 800-699-8251 The 2016 membership drive Technology President William Grisplanned for October is spearheaded by com, said, “Our Collision Repair e-mail: Mary Kunz, chair of the Membership Technology program is celebrating its advertising@autobodynews.com Committee and marketing director for 50th anniversary at college this year Professional Parts Group. and to have this grant bring our shop www.autobodynews.com “As a 10-year member of WIN, I in to the 21st century is greatly appream thrilled to see the steady growth in ciated. In addition to our students our membership numbers and excited learning from the I-CAR curriculum, to watch WIN surpass the 400 mark we can now ensure they are being this year,” stated Kunz. “It is encour- trained on state-of-the-art equipment, aging to see so many women and men which strongly enhances their chances taking advantage of all that WIN has to of finding employment after graduaoffer including our one-of-kind annual tion.”

Our Readers! education conference; our many schol- Be Seen Theby WIN Board of Directors rearship opportunities; and our support- CALL cently completed its semi-annual Advertising Sales at: straive networking/mentoring culture.” tegic planning session during their

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advertising@autobodynews.com

AUTOBODY www.autobodynews.com

meeting October 1 and 2, at the Berk- industry has shown and look forward shire Hathaway Offices in Dallas, to cultivating new sponsor relationTexas. ships this year.”

“Our strategic planning meetings WIN expanded scholarship Promote your its business with require all hands on deck and are es- program in 2015, and awarded five an exclusive article featuring sential in keeping WIN moving forward College Student Tuition and three or services. as we grow and accomplish goals,” said High your Schoolproducts Tuition Scholarships to Caspersen.

“Our membership, educaeight young women who have chosen The source for timely tional conference attendance and pres- to study in the collision repair indusinformation thathave every ence at industry events steadily try. bodyThe shop needs! increased. session focused on our Contact Gotsch (sgotsch@cccis strategy to continue these successes and .com or 312-229-2952) for more inCallsponsorship for details! prepare the 10-year anniversary in formation about opportuCALLfor800-699-8251 2016.” nities.

800-699-8251 WIN started celebrating their 2016 WIN hosted a 30-minute informa10-year anniversary early by kicking off tional webinar called “Choice ManageMail Subscription the 2016 sponsorship campaign on Oc- ment (Make the Shift)” on Wednesday, tober 16. The campaign will run until October 28. Building on her recent WIN January 10, 2016.

Educational Conference pre-sentation, Susanna Gotsch, chair of the “Time Management – There’s No Such Sponsorship Committee, commented Thing,” Ruth Weniger, CEO of Airbag on the importance of industry sponsor- Solutions and 2015 Most Influential ship, stating, “As an all-volunteer non-Your Woman Awardfor recipient, Register Email Ourhighlighted the profit network, our ability to develop three most important things industry programs to support our members, and members can do to shift from ineffecultimately our industry, depends upon tive “time management” to high perthe support and generosity of our spon- formance; choice management. www.autobodynews.com sors across diverse industry segments.

For information, visit http://www We are grateful for the confidence the .womensindustrynetwork.com

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