November 2021 Northeast Edition by Autobody News

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Survey Data Focuses on Auto Body Shop Employee Recruiting Methods by John Yoswick

Despite the growth in online recruiting sites and tools over a number of years, auto body repair shops continue to find word-of-mouth and referrals as their best source of new employees. In a national survey this past summer, collision repairers were asked how they’d located any new technicians they’d hired in the past 12 months. About one-third credited a referral from a current employee, and even more—40%—cited a word-of-

mouth referral from another source. About 17% found the employee through their paint or equipment

A national survey of auto body shops earlier this year found just over half said they currently had a job opening for at least one body technician. See Recruiting Methods, Page 32

Mitchell, Genex, Coventry Unite to Form Enlyte Mitchell, Genex and Coventry formally announced Oct. 13 the creation of their new parent brand, Enlyte. The three businesses have been moving toward this unification since the merger of Mitchell and Genex in 2018, followed by the acquisition of Coventry in 2020. This combination under the new Enlyte brand creates a one-of-a-kind organization in the Property & Casualty industry with technology innovation, clinical services and network solutions, all backed by an unrivaled collection of expertise across the entire claims continuum.

The Mitchell, Genex and Coventry brands will continue to operate as solution providers, making the entire collection of the companies’ trusted products and services available to all Enlyte customers. This new alignment allows the family of businesses to better serve the industry with a holistic point of view and expanded reach, while remaining focused on the individual needs of clients in the Auto Physical Damage, Auto Casualty, Workers’ Compensation and Disability spaces. “We are so pleased to share the exciting work our people have been See Unite to Form Enlyte, Page 34

Vol. 12 / Issue 8 / November 2021

Michigan to Have Nation’s First Electrified Road to Wirelessly Charge EVs, Governor Says by Eric D. Lawrence, Detroit Free Press

Imagine being able to charge an electric vehicle without stopping to plug in. It’s the kind of technology that could help ease worries like range anxiety and could really boost the transition to electric vehicles. Michigan could have the first wireless charging infrastructure on a public road anywhere in the country, although the state is likely to be challenged to meet that goal because Indiana is already preparing to test such technology. It’s the idea behind a new initia-

tive that Gov. Gretchen Whitmer announced Sept. 21 as she helped open Motor Bella, this year’s alternative for the North American International Auto Show being held this week at the M1 Concourse in Pontiac. A one-mile stretch of road somewhere in Wayne, Oakland or Macomb counties will be picked to host the Inductive Vehicle Charging Pilot. The Michigan Department of Transportation is planning to issue a request for proposal on Sept. 28. It’s not clear how the technolSee First Electrified Road, Page 36

‘Who Pays for What?’ Survey: Many Auto Body Shops Don’t Bill for Labor to Drain, Refill Fuel Tanks, but Most That Do Get Paid Industry trainer Mike Anderson of Collision Advice often suggests an auto body shop wishing to use the results of the “Who Pays for What?” surveys to train estimators or repair planners start by looking at the “not-included” operations listed in the survey reports for which a large percentage of other shops report being paid regularly. One such procedure from this past summer’s survey, for example, is the labor to drain and refill a vehicle’s fuel tank. About 70% of those repairers who charge for this work when it is necessary and performed report being paid “always” or “most” of the time by the eight largest insurers. But almost three in 10 shops (29%) overall acknowledge they have never sought to be paid for this operation. “Repairers should understand that the reason this isn’t included in any of the three estimating systems is because it’s so variable,” said Anderson, who conducts the quarterly “Who Pays” surveys in conjunction

with CRASH Network. “You have a book time to remove and reinstall a fuel tank. But draining, storing and refilling the fuel tank is not included in that time because the estimating system can’t know if a vehicle has five gallons of gas in it or 25 gallons of gas. Obviously, it takes longer to drain and refill 25 gallons of gas than five gallons of gas.” The final “Who Pays for What?” survey of 2021 is now open through the month of October. It focuses on labor operations related to scanning, system calibrations and aluminum repair. Shops can take the survey at https://www.surveymonkey.com/r/XC67NPT Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 to 20 minutes, can be completed by anyone in a shop familiar with the shop’s billSee Who Pays for What? Page 14

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2 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

R a c i n g

P e r f o r m a n c e

M a n u f a c t u r i n g

REGIONAL

AsTech® to Provide OEM Scan Report ��32

AASP/NJ Awards First Young Technician Award

Auto Insurers Confront Rapidly Rising Claims

at NORTHEAST 2021 ��28 AASP/NJ Executive Director Receives James Moy Award at NORTHEAST ��6 AASP/NJ to Host First In-Person Annual Meeting in 2 Years ��16 And They’re Off—NORTHEAST 2021 is First Out of the Gate ��30 Annapolis, MD, Tornado Leaves Businesses, Locals in Need of Donations ��12 ASA Opposes PA Bill to Exempt Certain Vehicles from Emissions Inspections ��15 Auto Theft Ring Linked to Theft of More Than 225 Vehicles Busted in New York ��8 Capital Volvo Cars of Albany Opens New ‘Electrified’ Facility ��10 Gerber Collision & Glass Acquires Center in NY ��6 Industry Groups, MA Legislature Clash Over Auto Body Shop Labor Rates Bill ��24 Kyte Brings its On-Demand Car Service to Brooklyn ��20 LMP to Close on White Plains Chrysler Dodge Jeep Ram Dealership in NY by Oct. 6 ��18 Man Arrested After Shooting at Car Thieves ��29 Maryland Governor Announces $12M in Grants for Highway Safety ��26 PPG, Penn College Partnership Forges Opportunities for Automotive Students ��14

Costs ��72 AutoNation Appoints CEO and Director ��18 Average New-Vehicle Transaction Prices Top $45,000 for First Time ��75 Axalta Expects $40M Less in Net Sales for Q3 Due to Supply Chain Shortages, Raw Material and Logistics Constraints ��71 Cars as Investments on the Rise ��60 CARSTAR 78th on Top Franchise List ��20 CCC Forecasts Future of EVs and How It Will Impact Body Shops ��62 Cox Automotive Forecast: New-Vehicle Sales Stall in September ��74 CREF Grant Applicants Need Help ��24 Elite Body Shop Solutions Has New Site ��60 GM Names Strickland VP, Global Regulatory

Anderson - Auto Body Shops Can Take Control of Credit Card Processing Fees ��40 Chess - Benefits of I-CAR’s Hands-On Spot Welding Class ��65 Phillips - Marketing Effort at Tony’s Body Shop Pays Off ��45 Yoswick - Changes Ahead for Collision Repair Shops Based on AI, New Automotive Finishes �50 Yoswick - Lawmakers in 3 States Tackle Topics Impacting Collision Repairers ��59

‘Who Pays for What?’ Survey: Many Auto Body Shops Don’t Bill for Labor to Drain, Refill Fuel

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2021 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

3M Automotive Aftermarket Division �� 5

Kwik Bench �� 6

Acura of Westchester �� 60

Long Automotive Group �� 24

American Icon Automotive Finishes �� 16

Malco �� 18

asTech �� 16

Markingpendepot.com �� 8

Audi Wholesale Parts Dealers �� 73

Mazda Wholesale Parts Dealers �� 72

Axalta Coating Systems �� 10

Mercedes-Benz of Atlantic City �� 27

BMW Wholesale Parts Dealers ��54-55

Mercedes-Benz of Fort Washington �� 27

Cadillac of Mahwah �� 34

Mercedes-Benz of Paramus �� 58

Carcoon America Workstation Portable Paint

Mercedes-Benz of West Chester �� 27

Booths �� 13

Mercedes-Benz of Wilmington �� 44

CCC Intelligent Solutions �� 33

Mercedes-Benz Wholesale Parts Dealers �� 63

Affairs ��30

Central Avenue Chrysler-Jeep-Dodge-Ram �� 47

MINI Wholesale Parts Dealers �� 52

Certified Automotive Parts Association �� 20

MOPAR Wholesale Parts Dealers ��42-43

HONK Tech Can Reduce Claim Cycle Time ��48

Cherry Hill Nissan �� 50

New Holland Ford �� 28

J.D. Power: New Car Tech Goes Unused,

Circle BMW �� 12

New Holland Toyota �� 68

Classifieds �� 74

Nissan/Infiniti Wholesale Parts Dealers �� 70

Colad/EMM Specialties �� 76

Northstar Kia �� 50

Colonial Automotive Group �� 53

Nucar �� 49

Courtesy Mitsubishi �� 40

Open Road Acura of East Brunswick �� 40

DePaula Chevrolet-Ford �� 65

Open Road Chevrolet �� 26

DeVilbiss Automotive Refinishing �� 15

Packer Norris Parts �� 51

Dynabrade, Inc �� 19

Porsche Huntington �� 56

Eastchester Chrysler-Jeep-Dodge �� 26

Porsche Wholesale Parts Dealers �� 64

Empire Auto Parts �� 32

PPG �� 9

Equalizer Industries, Inc �� 14

Pro Spot International �� 2

Ford Wholesale Parts Dealers �� 69

Rafferty Subaru �� 46

Franklin Sussex Auto Mall �� 36

Rockland Nissan �� 46

GM Wholesale Parts Dealers �� 57

SATA Dan-Am Company �� 17

Hoffman Auto Group �� 41

Schultz Ford �� 59

Honda-Acura Wholesale Parts Dealers �37, 38-39

Sorbothane Soft-Blow Mallet �� 8

Hyundai Wholesale Parts Dealers �� 70

Spanesi Americas �� 21

Infiniti of Norwood �� 48

Steck Manufacturing Company �� 30

Island Clean Air �� 25

Subaru Wholesale Parts Dealers �� 71

Jaguar Land Rover Cherry Hill �� 45

Sunmight USA ��22-23

Jeff D’Ambrosio Chrysler-Jeep-Dodge �� 31

Toyota Wholesale Parts Dealers �� 75

JEN6 Equipment �� 12

Valspar Refinish �� 7

People Don’t Intend to Use It ��4 Jay Leno Joins SEMA Show New Products Breakfast ��34 Kornafel Earns Advocacy Award ��46 LG to Pay for Bolt Recall ��26 Michigan to Have Nation’s First Electrified Road to Wirelessly Charge EVs, Governor Says ��1 NICB Releases Annual ‘Hot Wheels’ Report: America’s Top 10 Most Stolen Vehicles ��75 Proposal Would Give Tax Break to NJ Residents Who Lost Vehicle to Tropical Storm Ida ��35 Retail Spending on Cars and Parts Surpasses All Other Sales ��72 Sedgwick to Use CCC Intelligent Solutions’ AI to Digitize Auto Appraisals ��70 Survey Data Focuses on Auto Body Shop Employee Recruiting Methods ��1 Tesla Asks New U.S. Buyers to Wait Until April 2022 for Model Y Long Range ��4

NATIONAL

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

Hertz Names Interim CEO ��72

Mitchell, Genex, Coventry Unite to Form Enlyte ��1 COLUMNISTS

INDEX OF ADVERTISERS

CONTENTS

Tesla’s FSD Beta 10.2 to Rollout to ~1K New Drivers ��32 To Scan or Not to Scan? CAA Says It’s No

Tanks, but Most That Do Get Paid ��1

Longer an Option ��56

Kelly Jeep-Chrysler �� 29

Volkswagen of Kingston �� 62

ASA Announces New Membership Model ��16

Toby Chess Has Successful Kidney Transplant ��71

Kia Motors Wholesale Parts Dealers �� 61

Volkswagen Wholesale Parts Dealers �� 67

Up to $1 Million in Cars Stolen from PA

Kia of Attleboro �� 40

White Plains Volkswagen �� 68

KSI Auto Parts �� 20

Wrenchers �� 11

Kundert Volvo �� 35

Yonkers Kia �� 66

ASA Charts Next Steps on its Reorganizational Path ��36 ASE Fall Registration Open ��15

Dealership ��35

autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 3

J.D. Power: New Car Tech Goes Unused, People Don’t Intend to Use It While new-vehicle technology is a leading reason why buyers choose one vehicle over another, many new vehicles are equipped with some features that they want no part of, according to the J.D. Power 2021 U.S. Tech Experience Index (TXI) Study, released Oct. 8. This ends up being costly to automakers and buyers alike. “New-vehicle prices are at an all-time high, partly as a result of an increased level of content,” said Kristin Kolodge, executive director of human machine interface at J.D. Power. “This is fine if owners are getting value for their money, but some features seem like a waste to many owners.” The study finds, for more than one in three advanced technologies, fewer than half of owners have used the technology in the first 90 days of ownership. Non-users most often say they don’t need these technologies. For example, 61% of owners say they have never used the in-vehicle digital market technology, and 51% of those saying they have no need for it. Owners feel similarly about the driver/passenger communication technology, with 52% saying they have never used the technology and 40% of those saying they have no need for it. When technology is effectively executed in a vehicle, it positively influences an owner’s decision to purchase another vehicle equipped with that technology. The highest execution scores in the study are for camera rear-view mirror and ground view camera, both of which are ranked among the top three by owners wanting them on their next vehicle. “J.D. Power has a wealth of transactional data showing that automakers suffer a hit to profits and sales velocity if they build the wrong mix of features on their vehicles,” Kolodge said. “The TXI research quantifies the benefits when there is alignment between what owners truly want and what the automakers produce.” Following are key findings of the 2021 study: Dealers can influence how owners feel about value of technology: Dealer demonstrations at delivery are

instrumental in keeping owners engaged with emerging technologies. For example, for safe exit assist technology, owners can get a very strong understanding of the system when they learn it from a dealer. Without dealer education, however, owners often do not fully understand the technology and its value, presenting a challenge for its overall acceptance. Similarly, when a dealer demonstrates trailer assistance technology, satisfaction improves to 8.69 (on a 10-point scale) compared with 7.83 for learning from an outside source. However, owners are more than twice as likely to learn about this technology from an outside source (71%) than from a dealer (30%). Some technologies make driving experience better, while others do not: Many owners indicate poor performance with interior gesture controls technology, which responds to hand motions instead of touch. Owners of this feature indicate an extremely high 41 problems per 100 vehicles (PP100). This technology also has the lowest overall satisfaction score in the study for a second consecutive year. In contrast, one-pedal driving technology offered in some electric vehicles receives very high satisfaction levels and owners cite relatively few problems (8 PP100). Tech desires not always transferable across global markets: J.D. Power TXI studies for the U.S. and China include 21 of the same advanced and emerging technologies, but scores for owner satisfaction vary by country. While camera rear-view mirror technology receives high scores in the U.S., owners in China have the most problems (18 PP100) with this technology. For ground view camera technology, 62% of U.S. owners say they “definitely will” want the technology again, while only 24% of owners in China say the same. Tesla’s unofficial score is highest in study: Tesla receives an Innovation Index score of 668 (on a 1,000-point scale). The automaker is not officially ranked among other brands in the study as it doesn’t meet ranking criteria. Unlike other manufacturers, Tesla doesn’t grant J.D. Power permission to survey its owners in 15 states where it is sells vehicles. Based

4 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

on that limitation, Tesla’s score is calculated based on a sample of surveys from owners in the other 35 states. Highest-Ranking Brands Genesis ranks highest overall and in the premium segment with an Innovation Index score of 634, offering a high level of advanced technologies across its product lineup. In the premium segment, Cadillac (551) ranks second, followed by Volvo (550), BMW (545) and Mercedes-Benz (523). Hyundai ranks highest in the mass market segment with a score of 519. Kia (510) ranks second, followed by Nissan (502), Subaru (499) and GMC (498). Advanced Technology Award Recipients The TXI Study analyzes 36 technologies, which are divided into four categories: convenience, emerging automation, energy and sustainability, and infotainment and connectivity. Only technologies classified as advanced are award eligible. Cadillac Escalade is the premium model receiving the convenience award, for camera rear-view mirror technology. Ram 1500 is the mass market model receiving the convenience award, also for camera rearview mirror technology. Lexus IS receives the premium model emerging automation award, for reverse automatic emergency braking technology. Hyundai

Elantra is the mass market model receiving the emerging automation award, for front cross traffic warning technology. Lexus IS receives the award for infotainment and connectivity in the premium segment, for virtual assistant connectivity to vehicle technology. Kia K5 receives the infotainment and connectivity award in the mass market segment, also for virtual assistant connectivity to vehicle technology. The 2021 U.S. Tech Experience Index (TXI) Study is based on responses from 110,827 owners of new 2021 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from February through July. The TXI Study complements the J.D. Power Initial Quality Study (IQS) and the J.D. Power Automotive Performance, Execution and Layout (APEAL) Study by measuring how effectively each automotive brand brings new technologies to market. The TXI Study combines the level of adoption of new technologies for each brand with the excellence in execution. The execution measurement examines how much owners like the technologies and how many problems they experience while using them. For more information about the U.S. Tech Experience Index (TXI) Study, visit https://www.jdpower. com/business/automotive/us-techexperience-index-txi-study

Tesla Asks New U.S. Buyers to Wait Until April 2022 for Model Y Long Range by Mark Kane, Inside EVs

The disproportion between the demand and supply of the Tesla Model Y Long Range AWD appears to have expanded in the U.S.

According to the online configurator, as of Sept. 27, the expected delivery time for new orders of the entry-level Model Y is now April 2022. It was March a week earlier, and February a week before that. Now we understand why Tesla will start production in Texas with the Model Y, as it’s the most wanted car in the lineup. Those who would like to get the Model Y must spend $7,000 more for the Performance version, which can be delivered in November. The good news is at least the prices stopped increasing over the last weeks. There are also no changes in the case of other models.

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Gerber Collision & Glass Acquires Center in NY The Boyd Group Inc. announced the acquisition of a collision repair center in Clarence, NY. This repair center has operated as Stevens Collision since 1958. Clarence is located approximately 20 miles northeast of Buffalo, the second largest city in the state of New York. “We are excited to welcome this team and expand our footprint in the Buffalo region,” said Kevin Burnett, COO of Gerber Collision & Glass. “This acquisition bolsters our ability to provide outstanding service and high-quality repairs and further assist our customers and insurance partners.” The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair center owners are asked to contact Jason Hope, vice president of business development and strategic projects, at (530) 774-3887 or jason. hope@boydgroup.com. Source: The Boyd Group Inc.

AASP/NJ Executive Director Receives James Moy Award at NORTHEAST At a special ceremony during the 2021 NORTHEAST® Automotive Services Show, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) surprised Executive Director Charles Bryant by presenting him with this year’s James Moy Award for Dedication to the Automotive Industry. Bryant was “shocked and honored” to be recognized for his many contributions to the collision repair industry. When Moy, a beloved figure in the automotive repair industry, passed away in 2016, AASP/NJ partnered with Moy’s longtime friend and colleague Larry Montanez of P&L Consultants to create this award as a way to honor a collision repair professional annually who has worked tirelessly to improve the industry for all. “The James Moy Award was established after James’ passing for the sole purpose of honoring those who’ve gone above and beyond for our industry,” Montanez said. “Each year, we only consider people that we feel James would want

to recognize, and we always select someone who is so outstanding that it’s beyond question why they’re being recognized. That’s certainly the case with choosing Charlie.” Bryant was chosen for a plethora of reasons, according to Montanez. “We picked Charlie based on his years of advocating for consumers while working in a shop, as well as his success in expanding AASP/NJ since he became executive director; it’s mind-blowing what he’s been able to do with that association,” Montanez said. “He also created a handbook of state laws, rules, regulations and forms that is very beneficial for shops. Charlie has been a vital part of this industry for a long time, and he’s spent that time doing a lot of good for AASP/NJ and the industry as a whole.” AASP/NJ Past President Jeff McDowell agrees: “Given that James Moy dedicated a good part of his life to excellence in the collision repair industry and trying to bring the standard of repair up, there’s nobody better or more de-

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serving than Charlie who has spent most of his adult life trying to do the same thing.” “Receiving the James Moy Award means more to me than words can express,” Bryant said. “James was a fun-loving guy, other than when he was explaining the importance of restoring modern vehicles to their pre-accident condition. He was extremely passionate about helping other collision repair professionals do a better job for their customers! I will always remember James as a talented guy who constantly had a smile on his face, even in some quite difficult times. “To be selected as the person to receive the James Moy Memorial Award makes me feel like all the work that I do to make things better is appreciated,” he added. “In short, I am truly honored to be the one chosen to receive this award, and I will cherish it forever.” For more information on AASP/ NJ, visit aaspnj.org. Source: AASP/NJ

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Auto Theft Ring Linked to Theft of More Than 225 Vehicles Busted in New York Ten members of an auto theft and distribution operation were indicted for their roles in the theft and/or criminal possession of 45 vehicles during a six-month period and their roles related to the theft and resale of more than 225 vehicles throughout New York City and Westchester. New York Attorney General Letitia James and New York Police Department (NYPD) Commissioner Dermot Shea announced the indictments Sept. 21. The 303-count indictment is a result of a two-year joint investigation by the Office of the Attorney General’s Organized Crime Task Force (OCTF) and the NYPD’s Auto Crime Division. “For two years, these individuals have fueled fear in our communities and taken some of peoples’ most valuable assets,” said James. “During the pandemic, they moved this operation into high gear, taking advantage of New Yorkers’ staying at home to allegedly stealing more than 45 cars in six months. “We exhausted every avenue to

track down these thieves, and today, we send a loud and clear message that we will not stand idly by as New Yorkers are burglarized. New Yorkers deserve to feel safe in their neighborhoods, and we thank the NYPD for their partnership and support in this effort.”

“This was a complex, high-tech operation that sought to weaponize every hidden vulnerability in the automotive industry from creating keys based on bootleg code lists to altering computer settings to creating a mill that furnished false regis-

trations for altered VIN numbers,” said Shea. “Being an operation that never missed a chance to exploit vulnerability, it also turned up the volume of thefts during the pandemic, knowing that people were homebound or sick.” The investigation—dubbed “Operation Master Key,” due to the ability of the theft crews to create keys to gain access to vehicles—revealed auto theft crew members Norberto Pena Brito, 35, of Bronx; Jose Lebron Pimentel, 39, of Bronx; Edwin Hidalgo Estevez, 31, of Bronx; Dariberto Fernandez Perez, 30, of Bronx; and Hector Rivera, 52, of Bronx; were responsible for locating, stealing, altering and reselling stolen vehicles throughout New York City and Westchester. From April 2020 to October 2020—during the months the state was shut down due to the pandemic and New Yorkers stayed at home

and parked their cars for days at a time—this crew scoped out and targeted cars to steal, obtained key code information for these vehicles from unlawful websites, and created keys that allowed them to breach and steal the vehicles. Once inside the vehicle, they reprogrammed the vehicle’s computer system to gain control of the vehicle, disable alarms and start the engine. In a matter of minutes, the theft crew was able to steal a vehicle without sounding alarms or drawing any attention, even in a dense urban setting. The theft crew was also able to reprogram the vehicle to stop recognizing the true owners’ electronic keys, so the owners’ keys stopped working. Members of this organization then transported the vehicles back to one of several lots located in the Bronx, where the vehicles were altered and the vehicle identification numbers (VINs) were changed in order to give the stolen cars a new identity. Jesus Cabral, 55, of Water-

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bury, CT, was hired to remove and replace windshields and to change vehicle VINs assigned by the manufacturer. At times, Pena Brito and Lebron Pimentel would also buy stolen cars from Carlos Valverde, 33, of Bronx. Afterwards, crew members sold the stolen cars to their customers, including to Willy Abreu Martinez, 39, of Bronx, and Abdul Khan, 35, of Bronx, who were two of the high-volume customers purchasing the stolen cars for resale in the U.S. and in the Dominican Republic. Leticia Saldivar, 37, of Waterford Works, NJ, the owner and operator of Carmela’s Multiservice and Auto Tag in Philadelphia, was recruited to obtain, organize and file fictitious vehicle documents with the Pennsylvania Department of Transportation, and obtained clean registrations and titles for stolen vehicles. This joint investigation included hundreds of hours of physical and covert surveillance, court-authorized wiretapping of numerous targeted phones, execution of search warrants and the recovery of sur-

veillance video capturing the thefts of numerous vehicles. The 303-count indictment, unsealed Sept. 21 in Bronx County State Supreme Court, charges the 10 individuals with numerous counts of second- and third-degree criminal possession of stolen property, third-degree grand larceny, first-degree offering a false instrument for filing, second-degree criminal possession of a forged instrument, fourth- and fifth-degree conspiracy, and related charges for conspiring to steal, possess and sell 45 stolen vehicles, and also conspiring to register stolen cars in the Commonwealth of Pennsylvania by filing forged vehicle documents. If convicted, Valverde and Saldivar each face a maximum of seven years of prison. The remaining defendants face a maximum of 15 years in prison. The charges against the defendants are merely accusations and the defendants are presumed innocent unless and until proven guilty. Source: Office of the New York Attorney General

Capital Volvo Cars of Albany Opens New ‘Electrified’ Facility Capital Volvo Cars of Albany on Sept. 24 celebrated the grand opening of its new dealership in Colonie, NY. Volvo Car USA President & CEO Anders Gustafsson, Capital Luxury Cars and Friendly Auto Group President and CEO Eric Kahn, Albany County Executive Dan McCoy, Colonie Mayor Tom Tobin and LeChase Construction Services led the ribbon cutting ceremony. “We [Volvo] applaud our retailers that invest in our beautiful brand and join us on our transformational journey,” Gustafsson said. “Congratulations to the entire team at Capital Volvo Cars of Albany on their investment in our collective future in one of our most important markets.”The new 19,261-square foot dealership is located on approximately 4.3 acres at 350 New Karner Road, across the street from the 2.5-acre site it previously shared with Capital Luxury Cars’ Jaguar and Land Rover franchises. The state-of-the-art facility includes a five-vehicle showroom

and 15-bay shop. Reflecting Volvo’s leadership in electrification and sustainability, it also includes eight electric charging stations with the infrastructure to add more. “Similar to when Volvo took a leadership role in safety years ago, Volvo is taking a leadership position in electrification and sustainability through Volvo Recharge, a full line of hybrid or electric offerings,” Kahn said. “Now consumers can experience luxury recharge technology and get the excellent ownership experience offered by the Volvo dealership network.”LeChase was the construction manager on the project, which was designed by Cotler Architecture. Hershberg and Hershberg provided site engineering services. Source: Capital Volvo Cars of Albany

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Annapolis, MD, Tornado Leaves Businesses, Locals in Need of Donations The eatery has been open for more than 40 years. Annapolis businesses and residents That success was disrupted asked for donations to help them re- when a twister spawned from Tropicover from September’s tornado and cal Depression Ida on Sept. 1, batterstorm. ing Annapolis and Edgewater. At Chris’s Charcoal Pit, the front windows are boarded up. Wires dangle from the ceiling of the once-buzzing establishment. Customers now want to step up for one of their favorite dinner spots. Community member Jeanne Poole organized a GoFundMe to aid restaurant owner Stavroulla Herodotou and her workers. The campaign has already Annapolis residents and businesses asked for donations raised $28,658, exceeding to help them recover from the tornado spawned Sept. 1 its $25,000 goal. from Tropical Depression Ida. Chris’s Charcoal Pit, a Greek “It will take time to rerestaurant pictured above, has a GoFundMe raising money build, and in the meantime, for its workers. Credit: Jacob Baumgart/Patch we are setting up a fund to support and provide lost Shops seeking assistance in- income to their loyal and longtime clude Chris’s Charcoal Pit and Pan- kitchen staff,” Poole wrote on the ther Auto Body. One local also needs listing. “When I reached out to their owners, their sole concern was their money to repair his roof. Chris’s Charcoal Pit is a Greek wonderful staff.” restaurant located at 1946 West St. Panther Auto Body, located at by Jacob Baumgart, Patch

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31 Lee St., faces similar damage. The auto body repair shop reported a leaking roof and a collapsing wall. The owners, Pete and Mary Sellers, explained they lost both their cars to the storm. “Panther took a devastating hit,” the company posted on Facebook. “The tornado went right over our building [and] took everything out.” David Zorn set up a fundraiser to benefit his friends at Panther Auto Body. The initiative has collected $4,480 to “cover unexpected income loss and property damage.” Good samaritans can help the business reach its $5,000 goal. “Pete and Mary have always been there for the community,” Zorn said on the campaign page. “I am hoping the community will be there for them.” Annapolis resident Lewis Woodward also asked for assistance. Woodward noted the tornado missed his house, but lightning struck a neighboring tree. A large limb then shattered and crashed into his roof. Donors have contributed $1,570

to Woodward’s repairs. That is $70 more than the goal. “My friend Lew is one of the good ones,” Melissa Lauren shared on Facebook. “Please help if you can. Even small amounts add up. Thank you!” These stories reflect the widespread destruction that Ida cast across the northeastern U.S. GoFundMe created a centralized hub that lists all of the region’s fundraisers related to Ida relief. The donation website also sponsors a general Hurricane Relief Fund that lends a hand to all summer storm victims. “Our hearts go out to everyone impacted by the remnants of Hurricane Ida,” GoFundMe spokesperson Meghan Kee told Patch in an email. “In the wake of this unimaginable tragedy there are many families who need support, and through GoFundMe they are able to safely receive help from the community as they move forward.”

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autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 13

Continued from Cover

Who Pays for What? ing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online (https:// www.crashnetwork.com/collisionadvice).

PPG, Penn College Partnership Forges Opportunities for Automotive Students PPG Industries Inc., a Pennsylvania College of Technology partner for more than 35 years, is continuing its support of student instruction in the collision repair and automotive restoration programs at the college. PPG provides paint annually for those programs in an official

Source: CRASH Network

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PPG Industries Inc., a longtime Penn College partner, is continuing its support of student instruction in the collision repair and automotive restoration programs. The company provides paint annually for those programs in an official sponsorship that began in 2003 and continues in a current five-year agreement. Credit: Pennsylvania College of Technology

paint sponsorship that began in 2003 and continues through a fiveyear agreement. In addition to this material support, students benefit from PPG’s

“Partners in Education” program, which offers access to all of the company’s training programs at no charge. This training enables participants to become industry-certified by completing written and hands-on testing administered by PPG. After successfully completing the tests, students receive a two-year PPG certification. PPG also helped the college launch the programs’ overseas trips to France and Italy. This global experience provides Penn College students and faculty with the opportunity to visit and learn from renowned automotive companies like Alfa Romeo, Lamborghini, Ferrari and Maserati. The program’s leadership at PPG and Penn College offered reflections on the 25 year partnership. “A great deal has changed in the past 25 years, but what has not changed is PPG’s commitment to Penn College educating tomorrow’s workforce,” said Todd Warren, territory manager for PPG Industries. “It has been a great personal experience working with the good people over the years at PCT, and I’m look-

ing forward to many more years of continued success.” “Penn College is fortunate for the industry partnership with Todd Warren and PPG Coatings Services,” said Shaun D. Hack, instructor and co-department head, collision repair technology. “Through generous material donations, faculty and student industry-training opportunities, and the Partners in Education curriculum, we can share the latest auto refinish technology PPG has to offer with our collision repair and automotive restoration students.” “Penn College is proud to have such a long-standing partnership with PPG Industries Inc.,” said Chris S. Macdonald, the college’s assistant director of corporate relations. “We greatly appreciate their support through the paint donations, as well as the access for our students and faculty to gain more advanced training and PPG certification. PPG’s commitment to our programs has allowed the college to provide students with the necessary resources to achieve success in their degrees and in industry.”

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ASA Opposes PA Bill to Exempt Certain Vehicles from Emissions Inspections The Pennsylvania State Senate is considering Senate Bill (SB) 777, a bill that would exempt vehicles five years and newer from the requirements of emissions inspections. This legislation would have a significant negative effect on the Pennsylvania vehicle emissions inspection and maintenance (I/M) program that serves to keep Pennsylvania’s air cleaner. In addition to harming air quality, the legislation would hurt the approximately 7,000 emissions stations in Pennsylvania, many of which are small, independent businesses that provide jobs across the state. The Automotive Service Association (ASA) is encouraging Pennsylvania shops to take action by contacting their state senators opposing SB 777. ASA asks that Pennsylvania repair shops go to cqrcengage.com/ asashop/app/write-a-letter?0&engagementId=512999 and send a letter in opposition to SB 777 to their state senators. In a letter to the state senate, Ross Colket, president of ASA Pennsylvania, said:

“This legislation would decimate the Commonwealth’s Vehicle Emissions Inspection and Maintenance program, adversely impact hundreds of Pennsylvania small business owners, and threaten compliance with the federal Clean Air Act. The proposed changes in SB 777 not only put the health, safety and welfare of all Commonwealth residents at risk, but likewise jeopardizes hundreds of millions of dollars of federal funds for violating federal law.” Not only does the proposed bill harm small businesses across the state, it potentially places an unfair burden on the consumer. Annual vehicle inspection and testing of all vehicles ensure emissions control systems are working properly. Without mandatory emission testing, vehicle owners can go unaware that their car is malfunctioning— harming air quality and increasing the possibility that they will have to pay costly repair fees. The changes in SB 777 would create one of the longest exemptions of any inspection program in the nation. While some states ex-

empt new vehicles from emissions testing for two, four and now five years, industry data on actual vehicle deterioration indicates that from age four and longer, the need for repair grows substantially. The five-year exemption proposed in SB 777 potentially violates compliance with Clean Air Act federal air quality standards and jeopardizes millions of dollars in funds for violating federal law. There is general acknowledgment throughout the automotive repair industry there is room for improvement and modernization of the Commonwealth’s Vehicle Emissions I/M program. However, if enacted, SB 777 could result in the Commonwealth not meeting statutory mandates rather than improving upon them. Considering the negative impact this bill could have on the Commonwealth’s air quality, constituent health and small business owners, it is imperative shop owners in Pennsylvania act by communicating to their state senator opposing SB 777. Source: ASA

ASE Fall Registration Open The National Institute for Automotive Service Excellence (ASE) reminds service professionals fall registration for certification testing is open now through Dec. 31. More than 50 ASE certification tests are offered for automotive, collision, medium/ heavy duty, school bus, transit bus and truck equipment repair, and more. ASE tests are conducted days, nights and weekends at nearly 450 secured, proctored test centers. It is recommended service professionals coordinate testing with their employers and check test center availability before registering. To register, sign into myASE at https://my.ase.com/ or call Prometric at 877-3469327. Those with active automobile certifications (A1-A9) can also use the ASE Renewal App for recertification. Source: ASE

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AASP/NJ to Host First In-Person Annual Meeting in 2 Years After 18 months of virtual-only membership events, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) is excited to host its Annual Meeting in person at 6:30 p.m. Oct. 20 at Gran Centurions in Clark, NJ. AASP/NJ President Jerry McNee feels positive about the opportunity to get people away from

you need to get back to in-person to get the most of out of the experience. Nothing can beat face-to-face interaction.” AASP/NJ has put together an extensive program for this first face-to-face event in nearly two years. First off, the association will conduct its annual Board of Director elections.

“I’m really looking forward to getting together and seeing everyone’s faces again,” — Jerry McNee their computer screens and back to a meeting setting for the first time since the end of 2019. “I’m really looking forward to getting together and seeing everyone’s faces again,” said McNee. “Zoom meetings were great in the beginning, but they got monotonous in the end. You can find yourself consumed with other things at your fingertips like another computer or laptop. To fully concentrate on what is being said and learn about what is new in the industry,

The association will also honor the recipient of this year’s Russ Robson Scholarship Award, given to a promising young worker employed by a member shop. It’s named in honor of the former president who was well recognized in the industry for his dedication and training of others. The evening will also include a featured presentation from CCC Intelligent Solutions’ Neal Bobzin and Craig Stevens. “The Annual Meeting will

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provide a great opportunity to interact with fellow members and stay up to date with industry issues after being locked down at home for so many months,” said AASP/NJ Executive Director Charles Bryant. “There is no better place to gain an informational advantage than a meeting where likeminded members are gathered. With the changes taking place in the industry today, this is a meeting that you don’t want to miss. See you there.” In addition, any member shop that attends will receive a free calibration from Union Collision ($400 value). This meeting is free only to members in good standing; non-members pay $75 per person. To register for this meeting or to become a member of AASP/NJ, call Bryant at (732) 922-8909 or the AASP/NJ Administrative Office at (973) 667-6922. For more information on AASP/NJ, visit aaspnj.org. Source: AASP/NJ

ASA Announces New Membership Model The Automotive Service Association (ASA), the oldest and largest association representing the independent automotive repair industry, announced Sept. 27 it is transitioning to a new and innovative association model leveraging its expansive history to create a single, unified industry voice. Insights from industry innovation, technology transformations and public policy continue to impact the businesses of ASA members, making it imperative for the association to refine its membership offering to better meet members’ needs. Implementing a new model not only simplifies and expands member benefits around advocacy, education and communication, but will also help drive the association’s impact and influence. Under the new model, existing state affiliate agreements will be dissolved, and a 50-state regional structure will take their place. Source: Automotive Service Association

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AutoNation Appoints CEO and Director

LMP to Close on White Plains Chrysler Dodge Jeep Ram Dealership in NY by Oct. 6 LMP Automotive Holdings, Inc., an e-commerce and facilities-based automotive retailer in the U.S., on Oct. 1 announced the closing of its acquisition of White Plains Chrysler Dodge Jeep Ram Dealership in New York is expected to be completed by Oct. 6. The acquisition was initially expected to close Oct. 1.

AutoNation, Inc., America’s largest automotive retailer, on Sept. 21 announced it has appointed Mike Manley as CEO and as a member of its Board of Directors, effective Nov. 1. Mike Jackson will retire from AutoNation on Nov. 1 as CEO and as a member of the Board of Directors. Manley currently serves as head of Americas for Stellantis and sits on the group’s Executive Council. Stellantis is among the largest automotive OEMs in the world, formed in January by the merger of Fiat Chrysler Automobiles and the PSA Group. Most recently, Manley served as CEO of Fiat Chrysler Automobiles N.V. from July 2018 to January of this year. Manley holds an MBA from Ashridge Management College and a bachelor’s degree in engineering from Southbank University.

forward to working with him. “This acquisition will further expand our management team and Northeast footprint,” Aldahan continued. “We intend to partner with Jonathan upon closings in several more of our contracted acquisitions in the Northeast along with their respective senior managers as well as continuing to expand aggressively

“This acquisition will further expand our management team and Northeast footprint,” — Richard Aldahan The Chrysler Dodge Jeep Ram franchises are located at 70 Westchester Avenue, White Plains, NY 10601. “First, in advance of the close I would like to welcome Jonathan Grant to the LMP organization,” said Richard Aldahan, LMP’s COO. “Upon the closing of the acquisition, Mr. Grant will be regional vice president at LMP, partner, as well as dealer operator of the acquired dealership. I look

Source: AutoNation

in this region as we are seeing continued interest in our dealer partner model. “The operating assets to be acquired include four new vehicle franchises consisting of: one Chrysler, one Dodge, one Jeep and one Ram.” “This acquisition marks the beginning of our rolling close process in the Northeast as previously announced,” said Sam Tawfik, LMP’s CEO. “I also would like to

welcome Jonathan Grant and his team to the LMP organization. In working with Jonathan during the course of this year and witnessing his management skills, he is clearly a strong addition to LMP’s management team. We are pleased to have Mr. Grant as regional vice president of LMP upon the closing of the acquisition.” Grant is a 30-year auto retail executive with CEO experience at large high-performing dealerships in the Northeast. Grant received his MBA from Emory University in Atlanta in 1980 and worked 10 years in the corporate world prior to entering the retail auto business in 1990. The dealerships under his management have long been considered model dealerships in the Northeast region providing outstanding customer service, high volume and numerous awards. Source: LMP Automotive Holdings, Inc.

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Kyte Brings its On-Demand Car Service to Brooklyn Kyte, the company that brings cars to people’s doorsteps, launches Oct. 1 in Brooklyn, the newest area where customers can get a car delivered right to their door following the company’s Manhattan launch just four months ago in May. The service will now be available to Brooklynites in Bedford-Stuyvesant, Brooklyn Heights,

Bushwick, Carroll Gardens, Clinton Hill, Crown Heights, Fort Greene, Greenpoint, Ocean Hill, Park Slope, Prospect Heights, Red Hook, Weeksville, Williamsburg and Windsor Terrace. “After our successful Manhattan launch in May, we’ve been looking forward to the day more New Yorkers can drive Kyte,” said

Spencer Smith, launch manager at Kyte. “With the city’s commitment to efficient, sustainable transportation, Brooklyn is the perfect place to expand our network to help people get cars easier.” Kyte offers on-demand cars delivered to customers for as long as they need them—bypassing the inconveniences of long in-person lines and paperwork associated with traditional car rental services, the inconsistencies of peer-to-peer car sharing services, and the inflexibility and long commitments of traditional car leases. Kyte’s expansion to Brooklyn marks the company’s 10th major U.S. city launch. How it Works Brooklyn residents and visitors can book a car for a day, multiple days, multiple weeks, months or however long they want through the Kyte mobile app or website. To begin, customers choose a specific time and location for their vehicle delivery and return. Then, the company dispatches a delivery driver—known as a “Kyte Surf-

er”—to deliver a clean, sanitized car at the time requested. When the vehicle is ready to be returned, a Kyte Surfer retrieves the vehicle from the customer at the requested time and location. Kyte is offering a 15% discount for new customers in Brooklyn. Firsttime users can apply promo code “HELLOBROOKLYN” at checkout on drivekyte.com (valid until Oct. 31). Along with the Brooklyn expansion news, Kyte also launched a complete redesign of its iOS booking experience, implementing a cohesive design system that allows the user’s app and web experience to be coherent and efficient across all platforms. New features include better optimized in-app support chat, dark mode capability, service area maps and improved live notification updates. Kyte will launch on Android soon. Source: Kyte

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CARSTAR 78th on Top Franchise List CARSTAR, North America’s premier network of independently owned collision repair facilities, has risen in its rank among the top 100 in Franchise Times magazine’s Top 400, the most comprehensive ranking of the 400 largest U.S. franchise systems. Recognized by entrepreneurs and franchisors as a top competitive tool of measurement, the Franchise Times Top 400 placed CARSTAR 78th on the list, up from the 92nd position in 2020. CARSTAR was the top collision repair company for the overall automotive category. For more than 30 years, CARSTAR has been known for its premier reputation fueling the growth of its strong North American footprint to more than 700 locations in 35 states and 10 provinces. The Franchise Times Top 400+ is an annual ranking of the 400 largest franchise systems in the U.S. by global systemwide sales, based on the previous year’s performance. Source: CARSTAR

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CREF Grant Applicants Need Help For the 12th year, the Collision Repair Education Foundation (CREF) invited collision repair instructors to apply for Benchmark Grant funds to support their programs and their students with the tools, equipment and supplies needed to properly educate the next generation of collision repair professionals. Instructors from all over the country completed the application process, representing 124 schools in 37 states. Collision repair shops and other industry supporters interested in directing a monetary or in-kind donation to a specific school in their market area can get more information at www. collisioneducationfoundation. org/directed-purpose-gifts/ CREF will announce the 2021 Benchmark Grant winners later this year. To direct a donation to a specific school on the list of 2021 Benchmark Grant Applicant Schools, email info@ ed-foundation.org. Source: CREF

Industry Groups, MA Legislature Clash Over Auto Body Shop Labor Rates Bill by Kim Jarrett, The Center Square

Two industries have opposing perspectives on a bill that would set the amount paid for auto body shop labor rates. The current average labor rate paid by insurance companies is $40 an hour, one of the lowest in the country, according to members of the auto collision industry. H 1111 would set a minimum labor rate. The rates are affecting automobile service providers who have a difficult time retaining skilled workers, Lucky Papageorg, executive director of the Alliance of Automotive Service Providers of Massachusetts, said at a joint hearing of the Massachusetts Joint Committee on Financial Services. Consumers also are impacted by current rates as many collision repair shops have closed over the past few years, Papageorg said. “Because of the dwindling number of qualified collision repair shops, there is an increasing period of time that people are forced to be in their vehicles that are particular-

ly unsafe to be on the roads in the first place,” Papageorg said. “And then once the vehicles end up in a collision repair shop facility, the repair times have been extended significantly.” The issue also affects body shops at dealerships, according to Robert O’Koniewski, executive director and general counsel of the Massachusetts State Automobile Dealers Association. About 50% of body shops at auto dealerships have closed, he said. “Right now, the insurance companies have had a stranglehold on the reimbursement process for decades and as you’ve heard eloquently from other individuals, it’s managed to tamp down the rate over the years so that the rate that’s being paid for the repairs does not reflect the true economics of the industry,” O’Koniewski said. Christopher Stark, executive director of the Massachusetts Insurance Federation, countered their claims, calling the bill “government price-fixing on the auto insurance market.” Legislators need to look at

total claims costs for labor, Stark said. For example, New York has one of the highest costs at $1,572 per claim, about $400 higher than the cost in Massachusetts. But the take-home wages of a skilled worker were $971 per week in New York, compared to $995 in Massachusetts, Stark said. “We can’t believe falsely that an increase in the labor rate is going to result in an increase in wages,” Stark told the committee. The legislature is establishing a committee to study the issue, according to Chairman James F. Murphy, but he asked industry executives to come to legislators with solutions. “You have the knowledge and expertise to tell us how to fix things,” Murphy said.

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Maryland Governor Announces $12M in Grants for Highway Safety by Brent Addleman, The Center Square

More than 90 agencies in Maryland will receive more than $12 million in federal highway safety grants, Gov. Larry Hogan announced. The grants are part of the state’s focus to prevent motor vehicle crashes and eliminate roadway fatalities, the governor said in a news release. “With traffic already back to pre-pandemic levels, it is even more important that we continue working to make our streets and roadways safer and more accessible,” Hogan said in the release. “This critical funding will help us prevent crashes and fatalities all across the state and ensure highway safety remains a top priority.” The state’s Department of Transportation Motor Vehicle Administration’s Highway Safety Office will begin dispersing the funds Oct. 1, according to the release, coming on the heels of the Hogan announcing the distribution of nearly $1 million in funding to focus on pedestrian and bicycle safety measures earlier this year.

Last year, 573 people were killed on the state’s roadways, a significant increase from 2019’s 535 fatalities, the release reads. Last year, 138 pedestrians and 15 bicyclists were killed, compared to 125 pedestrians and 10 bicyclists killed the previous year. The governor said in the release “the fatalities occurred despite average vehicle traffic volumes dropping as much as 50%” during the peak months of the COVID-19 pandemic. The highway safety funding will support efforts to increase the use of seat belts in all seats; prevent impaired, aggressive and distracted driving; and increase safety for pedestrians, motorcyclists and bicyclists, the release reads. Funding, according to the release, will also be used to promote the correct use of child passenger safety seats, police training for highway safety and traffic enforcement, fund overtime enforcement for Maryland’s traffic laws and increase the efficiency and capability of the state’s traffic data systems. Gregory Slater, secretary of the Maryland Department of Trans-

portation, said his organization is “committed to eliminating fatalities” in the state’s network of roadways. “That starts with working as a team with law enforcement agencies, traffic-safety partners and the public in a multi-faceted approach,” Slater said. “The safety of Marylanders and visitors is MDOT’s top priority, and the distribution of these grant funds will help us move toward the goal of zero highway deaths.” The state enacted Vision Zero in 2019, following the passage of legislation setting an overall goal of zero fatalities and serious injuries on Maryland roadways by 2030, the release reads. Vision Zero is part of the state’s 2021-25 Strategic Highway Safety Plan aimed at education, engineering, enforcement and emergency medical services as an approach to reduce fatalities and injuries. Funding from these grants can only be used for traffic safety initiatives, the governor said.

LG to Pay for Bolt Recall General Motors Co. announced Oct. 12 it has reached an agreement under which LG Electronics Inc. will reimburse GM for costs and expenses associated with the recall of Chevrolet Bolt EVs and EUVs due to manufacturing defects in battery modules supplied by LG. As a result of the agreement, GM will recognize an estimated recovery in its third-quarter earnings that will offset $1.9 billion of $2.0 billion in charges associated with the recalls. “LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” said Shilpan Amin, GM vice president, Global Purchasing and Supply Chain. “Our engineering and manufacturing teams continue to collaborate to accelerate production of new battery modules and we expect to begin repairing customer vehicles this month.” Source: GM

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AASP/NJ Awards First Young Technician Award at NORTHEAST 2021 The Alliance of Automotive Service Providers of New Jersey (AASP/ NJ) recently debuted its new Young Technician Award, bestowed upon a promising young technician who has worked in a member shop for less than five years. On the first night of the 2021 NORTHEAST® Automotive Services Show, AASP/NJ Allied Board Member Joe Amato Sr., president of the Amato Insurance Agency (a division of World Insurance Associates, LLC), presented Casey Dombroski of Rico’s Auto Body in Robbinsville Township, NJ, with a personalized plaque commemorating the honor, as well as a $5,000 Snap-on tool grant funded by a generous donation from the Utica National Group Foundation. Presenting the tool grant to an industry up-and-comer was a definitive event highlight for Amato. “We awarded the first-ever Young Technician Award to a deserving young man,” Amato said. “We were really excited about giving this opportunity to support someone

who has recently committed to the industry and needs some help filling their tool chest. I was honored to sit on the selection committee.” Debbie Tallman, office manager at Rico’s Auto Body, nominated Dombroski for the inaugural Young Technician Award. “Casey is a hard worker who is eager to learn new things,” Tallman explained. “He’s a polite young man and is always willing to help—he’s more than happy to do whatever we need. Although he has a few tools, he would love to augment his toolbox as he plans to continue working in the industry; however, tools are expensive, so I thought he’d appreciate the chance to win some tools through AASP/NJ. It’s awesome that the Young Technician Award exists, and I’m so excited that Casey won!” Excitement was just one of the emotions Dombroski expressed upon receiving the award: “I’m very grateful to have been given the Young Technician Award. The fact that my employer took the time to

enter me in recognition of the hard work I’ve been doing is an honor in itself.” Although Dombroski has always been a car hobbyist, he began working at Rico’s Auto Body a year and a half ago. “When I chose collision repair, I actually found a career that I love,” he said. “The tool grant has been very helpful; I now have all the tools I currently need to make my job a little easier. Being able to continue the job, without needing to stop and borrow a tool, means the work gets completed faster and our customers are happier. I’ve never really won anything before, so I appreciate being chosen and want to say a huge ‘thank you’ to AASP/NJ for selecting me!” Once Utica National Insurance Group expressed interest in providing a benefit to AASP/NJ through its charitable foundation, AASP/NJ’s Scholarship Committee consulted with Snap-on, which provided the association with a generous discount on tools to be purchased with the $5,000 award money.

“The automotive industry is experiencing a serious technician shortage, and AASP/NJ’s Scholarship Committee was created with the intention of helping young aspiring technicians continue with a career in the automotive industry,” said AASP/NJ Scholarship Committee member Ken Miller of 821 Collision in North Haledon, NJ. “Filling your first toolbox with the needed tools can be difficult and very costly for a young technician. The committee felt that providing the necessary starting tools would be a great ‘head start’ for a young technician. “Thanks to Utica’s generous grant, we were able to make this a reality,” Miller continued. “Several great candidates applied for the award, and although we had a difficult decision, we chose Casey because we felt it would most benefit his work situation and help to keep him in the automotive repair field. We look forward to continuing this program in the future and growing the technician base for the industry.” “No one has to tell me how

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difficult it is for a young technician to get started in the industry, never mind how difficult it is to obtain the tools necessary to perform the work safely and properly, as I actually lived it when I first started,” said AASP/NJ Executive Director Charles Bryant. “It was a struggle to buy my first paint gun, and I can’t even begin to tell you the joy I felt when I got it. “With that said, I cannot even imagine how great Casey must have felt to be the one chosen to receive the Young Technician Award. At the same time, I feel so honored to be part of the group that presented the award,” Bryant continued. “Thank you so much to the Amato Insurance Agency and Utica National Insurance Group for making it possible for AASP/NJ to present such a great award.” For more information on AASP/NJ, visit aaspnj.org. Source: AASP/NJ

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Man Arrested After Shooting at Car Thieves by Steven Symes, Motorious

Evan Wexler, CEO of Meat Innovations Inc. and COO of Steakhouse Elite, has caused waves in Fort Lee, NJ, after car thieves targeted his exotic and luxury car collection for the 18th time in the past two years. Wexler was awoken in the middle of the night March 25, 2020, to see the would-be thieves at work outside. Before dashing out of his mansion in the nude, he grabbed a loaded AR-15. He confronted the men who had broken into and started his Mercedes G-Wagon, apparently in an attempt to open the security gates for accesss to his Lamborghinis, McLarens and Ferraris. Wexler fired a warning shot as the thieves put his luxury SUV into drive and began to pull forward, a move which worked since they stopped the vehicle, got out and fled. However, when the police arrived, Wexler said they were more concerned about his firing a round into the air than tracking down the would-be thieves.

Wexler said he has called police 25 times since August 2019 for attempts on his car collection, yet thieves have only been caught once. His action picked him up citations for aggravated assault and possession of weapons for unlawful purposes. As reported by the New York Post, the man “grudgingly” made a deal where he pled guilty to possession of a deadly weapon so authorities would drop the matter. According to Wexler, the police don’t seem that interested in helping him solve the problem of thieves consistently targeting him. Instead, he had to sell all his guns and is serving two years of probation which includes needing permission to travel. Last August, thieves were suc-

cessful in stealing Wexler’s Lamborghini Aventador SVJ, worth more than half a million dollars. When the supercar was located a week later at a house in Newark, it had $80,000 in damages. Despite one of the Fort Lee police officers acknowledging there’s been a persistent problem with car theft attempts on Wexler’s property, the only thing they’ve done is increase patrols in “affected areas.” Officers are also reminding residents to lock their car doors. According to Wexler, people sneak onto his property about every two weeks and try to take his vehicles. He has invested heavily in security measures but feels vulnerable if any of the thieves decide to break into his house since he has no weapons to protect himself.

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And They’re Off—NORTHEAST 2021 is First Out of the Gate On Sept. 10-12, the NORTHEAST® Automotive Services Show continued its leading-edge reputation by being the first event of its kind to return to a live setting. Hosted by the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) at the Meadowlands Exposition Center (MEC) in Secaucus, NJ, NORTHEAST 2021 provided automotive and collision repair professionals with an opportunity to re-educate with leading trainers and re-engage with industry peers in a relaxed setting. “Starting anew after COVID-19 was groundbreaking, but NORTHEAST provided an ideal opportunity to get together in one place yet again,” AASP/NJ Past President Jeff McDowell said. “We all had a great time being back in person— reconnecting with old friends and gathering with the suppliers who take care of us all year—and exhibitors enjoyed connecting with quality customers in person once again.” Many exhibitors agree with McDowell’s assessment. “The NORTHEAST Automotive Services Show presents an opportunity to engage in very open conversations about our industry with key players,” BASF Business Development Manager John Shoemaker observed. “The quality of attendees at this year’s event was above the scale expected; it was apparent that attendees were truly interested in being here by the way they asked the right questions to get the answers necessary to help advance their businesses.” Simone Mazzon, sales manager at USI of North America, noted, “It feels good to move forward with

being back and meeting customers in person again. It’s wonderful to leave the virtual world and return to the real one! NORTHEAST is the first show to return, and it’s building momentum for the rest that will follow, like the Texas Auto Body Trade Show this week, SEMA in November and hopefully more in 2022.” Reliable Automotive Equipment President Dave Gruskos added, “It was exciting to have our team together at NORTHEAST. Reliable decided to be among the exhibitors on the forefront of returning to live events because we are truly passionate about being leaders in the collision repair industry. It felt very exciting to return to a live event and get to see the industry in person again. As always, it was managed second to none, and we had a great time.” “AASP/NJ has always been an industry leader, and we’re very proud to be the first to come back with a show of this kind after 18 months of doing everything virtually,” said Thomas Greco, AASP/NJ secretary and president of NORTHEAST event managers Thomas Greco Publishing. “We felt it was time to get back to some sense of normalcy. Since we moved back to New Jersey over a decade ago, NORTHEAST has shown amazing growth every year. Of course, due to the pandemic and several other factors, it wasn’t a surprise that the numbers were down at this year’s show. But those who attended were the ones our exhibitors wanted to see. “Most trade shows that have come back have been seeing an average of 60% returning exhibitors,” Greco continued. “We were ecstat-

GM Names Strickland VP, Global Regulatory Affairs General Motors on Sept. 22 named David L. Strickland as vice president, global regulatory affairs, effective Oct. 1. Strickland will report to Omar Vargas, GM vice president and head of global public policy. Strickland is currently the staff director of the U.S. Senate Committee on Commerce, Science and Transportation (Senate Commerce.) Strickland also served as the administrator of the National Highway

Traffic Safety Administration (NHTSA) in the Obama Administration, from 2010–2014. Strickland replaces Bob Babik, who has elected to retire from GM, effective Jan. 1, after 20 years of service. In his new role, Strickland will lead a team responsible for working with regulatory agencies at the local, state, national and international levels on issues impacting GM and the auto industry. Source: General Motors

30 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

ic to see 82% of ours return to fill the MEC. We also want to thank the industry experts who presented amazing seminars and the attendees who made the effort to get back to a live setting. We think the industry is ready and hope that the Auto Body Association of Texas’ [ABAT] Texas Auto Body Trade Show and SEMA will benefit from our willingness to get our feet wet and start the ball rolling.” As AASP/NJ Treasurer Tom Elder pointed out, “NORTHEAST was the first show to come back out of the box. Regardless of anything else, the industry gathered together and had a meeting of the minds for the first time since the pandemic.” “AkzoNobel is thrilled to finally be returning to live events after a year and a half,” AkzoNobel Marketing Communications Manager Jen Poliski said. “We entered this weekend with a ton of excitement and anticipation, with proper consideration given to all safety precautions. It’s great to have our team

together again, visiting with customers on the trade show floor. We’re already eagerly looking forward to returning to NORTHEAST in March 2022!” NORTHEAST 2021 was made possible through the generous support of the following sponsors: Platinum Sponsor: BASF; Gold Sponsor: Ford; Silver Sponsors: PPG, NJ Parts of Flemington; Lanyard Sponsors: Innovative Solutions and Technology, Spanesi; Attendee Prize Sponsor: Axalta Coating Systems; and General Sponsors: Harbortouch and Sherwin-Williams Automotive Finishes. The 2022 NORTHEAST Automotive Services Show will be held March 18-20 at the Meadowlands Exposition Center in Secaucus, NJ. Upcoming details and announcements will be available at aaspnjnortheast.com. For more information on AASP/NJ, visit aaspnj.org Source: AASP/NJ

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Recruiting Methods vendor. Less than 8% said they’d recently recruited a new employee from a local high school; even fewer said they’d recruited from a post-secondary school either in their area (less than 6%) or outside their market (also less than 6%). Among online recruitment methods, more than one in four shops said they’d successfully used Indeed, about 18% cited Facebook and 15% used Craigslist. About 4% used LinkedIn—the same percentage using an ad in a local newspaper. “We are advertising everywhere,” the manager of an independent shop in Pennsylvania said. “Our last hire is a kid in high school on co-op.” “I’ve talked to everyone I meet, and only found two unskilled trainees,” a shop owner in Michigan commented. This summer’s survey comes on the heels of one three months earlier that found about four in five auto body shops said they would

hire a qualified candidate right away; 29% said they would hire two new employees if they could. Only 21% of shops said they were fully staffed and had no job openings for any position. Six months earlier, by comparison, 37% said they were fully staffed. When asked about specific job positions, half of the shops responding (51%) said they currently have a need for at least one body technician, and almost one-third (31%) had an opening for a body helper. The other most in-demand job positions were detailers, needed by 22% of shops, and front office estimators and painter’s helpers, both positions cited by 19% of shops. Lowest in demand in terms of production positions was a structural or frame technician, currently needed by just 11% of shops. About 12% of shops said they had paid a hiring bonus to a new technician within the past 12 months. More than half of those bonuses were less than $2,000, but a quarter of them (26%) were $3,000

Tesla’s FSD Beta 10.2 to Rollout to ~1K New Drivers by Simon Alvarez, Teslarati

Tesla CEO Elon Musk posted a key update to Tesla’s FSD Beta 10.2 rollout, saying the new iteration of the company’s advanced driver-assist system is poised for release Oct. 8. Musk also said the program would be expanding to about 1,000 new Tesla owners who have registered a perfect 100 rating on their Safety Score. Musk said the rollout of FSD Beta 10.2 would be put on hold for several days to evaluate the expanded program. If the results of the FSD Beta 10.2 expansion prove successful, then Tesla would start to gradually roll out the advanced driver-assist system to owners who have posted a 99 rating on their Safety Score. Rollouts to owners with Safety Scores of 98 and below should follow. Tesla’s strategy for the rollout of FSD Beta 10.2 is arguably cautious, but necessary. The company’s Full Self-Driving system, even in its Beta form, is designed to be a key safety feature, after all. For Tesla to be able to release FSD to its greater fleet, the advanced driver-assist system needs to be

validated and refined. Tapping into electric vehicle owners who wish to take part in the FSD Beta program could then be a key strategy that could eventually help Tesla achieve true autonomous driving in the future. In later posts, Musk confirmed the FSD Beta 10.2 expansion Oct. 8 would be a nationwide rollout. Musk explained, however, the quality of experience among Tesla owners operating FSD Beta 10.2 would likely “vary dramatically” as the company’s neural networks simply have far more training data in some parts of the country more than others. This disparity should be addressed as the FSD Beta program expands further. The Tesla FSD Beta program has so far been extremely successful. Since starting almost a year ago, the roughly 2,000 or so Tesla owners who are part of the company’s initial FSD Beta program have not met a single accident to date. While these statistics will likely be impossible to maintain in the long run, Musk has noted in the past Tesla would do everything it can to keep the FSD Beta program and its expansion as safe as possible.

32 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

or more. Perhaps making the market even more competitive for auto body shops looking to find an experienced technician are job openings outside of shops—such as with remote diagnostic and calibration companies—that require a body technician’s skill set but don’t involve actual body work. Those jobs didn’t even exist 15 years ago. The data comes from two “Who Pays for What?” surveys from this year. The latest of the quarterly surveys, conducted by Collision Advice and CRASH Network, is taking place through the month of October. Shops can visit https://www.surveymonkey.com/r/ XC67NPT to take the survey.

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Continued from Cover

Unite to Form Enlyte doing to bring our family of businesses even closer together,” said CEO Alex Sun. “Uniting our teams under Enlyte will make it easier for us to help customers manage costs while delivering quality service with an expansive collection of Mitchell, Genex and Coventry solutions from first-notice-of-loss to recovery.” The launch of Enlyte includes the creation of a Customer and Market Operations team, which will bring together the casualty sales, client services and marketing teams from all three organizations. The new team will be led by Nina Smith, who currently serves as executive vice president and general manager of Mitchell’s Casualty Solutions Group (CSG). “I am excited about the opportunity to work with my colleagues to create unprecedented value for our clients and the P&C market,” Smith said. As the casualty Customer and Market Operations team from all three businesses is organizing under a

single group, the Mitchell Auto Physical Damage group will continue to develop and offer the Mitchell-branded suite of solutions as they do today, dedicated to superior service and expertise in collision repair and claims. “We are proud of our legacy brands and the teams behind them,” said Sun. “Each of the three companies will continue to develop and grow the branded solutions that our customers know, with the same collaboration and quality they trust.” The changes were shared Oct. 12 with an invite-only audience of Mitchell, Genex and Coventry customers at the 2021 Virtual mPower Conference. Attendees were given a first-look at the new brand, and heard directly from Sun and other leaders about the new organization and the promise of a future united. “Aligning under a single, unified brand, while keeping the greatness of our legacy companies, reminds us that we must continue to deliver on our strategic vision of bringing an ever-expanding set of capabilities that positively impact claims outcomes,” Sun said. Source: Enlyte

Jay Leno Joins SEMA Show New Products Breakfast Jay Leno will kick off the 2021 SEMA Show as the featured guest of the New Products Breakfast on Nov. 2. Taking place before the SEMA Show floor officially opens that same day, the New Products Awards Breakfast is akin to an opening ceremony for the four-day event, where automotive innovation, technology and advancement take center stage. As the featured guest of the New Products Breakfast, Leno will inspire and motivate show attendees as the best new product award winners are announced. “Leno is an automotive expert whose high energy and passion represents that of the industry’s,” said Tom Gattuso, SEMA vice president of events. “Like the exhibitors at the SEMA Show, Leno pushes the boundaries and continually raises the bar. We’re thrilled to have him join us for the opening breakfast of what is likely to be one of the most iconic SEMA Shows ever.” Tickets to the New Products Breakfast are available to all SEMA Showgoers at no cost by visiting www.semashow.com/banquet. Tickets are free to all credentialed attendees, but must be reserved in advance

as seating is limited. In addition to a sit-down breakfast served beginning at 7:30 a.m. at the Westgate Las Vegas Resort & Casino, the event includes announcements and introductions of the best new product winners. Awards are presented in 16 categories and will be showcased in the New Products Showcase throughout the week of the SEMA Show. The New Products Showcase, voted on by buyers and media as the No. 1 SEMA Show destination, includes exhibitors’ new and featured products displayed in a single location. All exhibitors may enter an unlimited number of products into the Showcase, with the first entry offered at no cost. The SEMA Show takes place Nov. 2-5 in Las Vegas, NV, with the Show floor opening at 9 a.m. More than 1,300 exhibiting companies are set to participate throughout the Las Vegas Convention Center. To date, more than 40,000 buyers have signed up to attend. To learn more, visit www.semashow.com/banquet. Source: SEMA

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Up to $1 Million in Cars Stolen from PA Dealership by Steven Symes, Motorious

Police in Wexford, PA, are astounded after up to $1 million in Bentleys were stolen. The chief of police is calling the thieves professional criminals. They were able to swipe six Bentleys from a dealership in the Pittsburg suburb using smooth coordination, something amateur thieves could not have pulled off. This all went down early in the morning of Sept. 16. How this crime started might seem odd at first, but it makes sense once you see what they were thinking. These thieves began across the street from the Bentley dealership at an Enterprise car rental lot. They didn’t bother trying to swipe Hyundais or Subarus, but instead took the license plates off those rental cars. Then they put those plates on the Bentleys they stole, helping them to drive away without raising suspicion from any police who might have seen them on the road. Many criminals are dumb and just drive off with new cars from dealerships without any li-

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cense plate present. That can lead to their getting pulled over or a chase, which likely means they’re caught and thrown in jail. These guys thought of that in advance and planned ahead by using plates which couldn’t be traced to them if things went sideways. Next, the thieves “manipulated” the key lock box attached to each of the Bentleys. How they knew to do that isn’t clear, but it would take someone quite knowledgeable and practiced to pull that off. That meant leaving little to no damage on the luxury cars, although three damaged Bentleys the thieves likely failed to take were left in the dealer lot. Now police believe the Bentleys are no longer in Pennsylvania. One car was already found abandoned in West Virginia, but nobody is saying why that might have been. The chief did say he can’t remember such a pricey car theft operation ever having been conducted in his entire career. There are zero suspects, but an investigation is ongoing.

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Proposal Would Give Tax Break to NJ Residents Who Lost Vehicle to Tropical Storm Ida by Todd DeFeo, The Center Square

A state lawmaker wants to give New Jerseyans who lost a vehicle due to Tropical Storm Ida a break on their taxes. Assembly Republican Leader Jon Bramnick, R-Union, proposed giving a sales tax break to anyone buying a vehicle to replace one totaled by Tropical Storm Ida’s flooding. “Many people lost their means of transportation due to flooding from Hurricane Ida,” Bramnick said in a news release. “Replacing their car is already expensive, the least the state could do is waive the sales tax for the replacement of their vehicle.” A spokesperson for Bramnick did not immediately respond to a request for how much the state might forego in tax revenue or how car buyers would verify they lost their vehicle in the storm. A spokesperson for the state Treasury department did not immediately return a call seeking clarification on revenue numbers. Currently, there is a shortage of cars nationally due to a chip short-

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age that has resulted in slower production. According to J.D. Power and LMC Automotive, the average price of a new car was $41,044 in July. That is 17% higher than it was in July 2020. New Jerseyans pay a 6.625% state sales tax rate in motor vehicles in the state. Based on the J.D. Power numbers, that equates to roughly $2,719.17 in state sales tax per new vehicle, but that does not consider the many possible variables. Additionally, it is not immediately clear how many vehicles were totaled in New Jersey because of Ida. On Sept. 13, state officials revised the tally to 30 the number of New Jerseyans killed during the storm.“I am deeply saddened to report one additional fatality, bringing our total to 30 New Jerseyans who have lost their lives to this storm,” Gov. Phil Murphy said in a statement. “Our thoughts and prayers are with every family and community mourning a loved one and of those who remain missing.”

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Continued from Cover

First Electrified Road ogy would work, how soon the pilot project would be operational or how much it might cost, although this type of advance has been discussed by experts as one possible future for EV charging and testing has been tried in Europe. The Indiana project would use magnetizable concrete to enable wireless charging of electric vehicles, according to an Indiana Department of Transportation news release. Scott Manning, an INDOT spokesman, said the in-pavement wireless charging project in that state was launched in July, and is currently being installed at a research facility in West Lafayette, IN. “We expect to reach the second phase of the project, testing on a public roadway within one to two years,” Manning said, noting officials there were not aware of any other similar projects under way in the U.S. when they were researching it. When asked about Indiana’s project, Shelby Austin, a public relations official helping with the Whitmer announcement, said Michigan’s request for proposal would effectively jump ahead of Indiana’s plans, directly to the public road phase.

The potential to charge electric buses, shuttles and other vehicles on the road without having to stop could do more than just help with electric vehicle deployment, according to Trevor Pawl, chief mobility officer with the state’s Office of Future Mobility and Electrification. “This electrified roadway has the potential to accelerate autonomous vehicles at scale and turn our streets into safe, sustainable, accessible and shared transportation platforms,” Pawl said in a news release. Whitmer’s announcement came during remarks Michigan Gov. Gretchen Whitmer learns about the features as Motor Bella was openin the F-150 Lightning from Ford’s Dapo Adewusi at Motor ing. The event, although Bella in Pontiac, MI, on Sept. 21.Credit: Eric D. Lawrence/ Detroit Free Press connected to Detroit’s auto shows of the past, is a siging it in a resilient way that supports nificant departure from the show advanced technology,” Whitmer that used to be held downtown told reporters, noting the wireless every January. There are vehicles charging project is crucial to meet- on display, but the highlights are ing the needs of fleets. more experiential with various ride In a statement later, Whitmer events. pointed to Michigan’s past as well Press and industry events were as its future. being held the next two days, and “Michigan was home to the first mile of paved road, and now we’re paving the way for the roads of toThere’s Nothing morrow with innovative infrastructure [that] will support the economy and the environment, helping us achieve our goal of carbon neutrality by 2050,” Whitmer said. Following her announcement Sept. 21, Whitmer noted the significance for this type of project. “We’re rebuilding infrastructure in Michigan. Orange barrels are everywhere. It’s important that we’re rebuilding, but we’re do-

then the show opened to the public Sept. 23-26. After the opening, Whitmer, along with Oakland County Executive Dave Coulter, toured display areas set up by General Motors, Stellantis, Toyota and Ford, checking out various rides and learning about some cool features. Whitmer sounded disappointed when an aide told her liability concerns would keep her off the dramatic Ford Bronco ride that features a Bronco rolling up a track that appeared to be lifted by hydraulics to simulate a large hill, part of the effort to show off the vehicle’s offroad chops. At the Stellantis area, she also got a look at the new 2022 Jeep Grand Wagoneer, being built at the company’s Warren Truck Assembly. Hearing the front seats in a model featuring the Blue Agave interior include a massage function, she said she “might just take a nap.” She also let it be known she’d wrecked her parents’ Wagoneer when she was 17, and unlike this bright white, modern version, it was, in fact, a woody.

Like the Original.

ASA Charts Next Steps on its Reorganizational Path At the end of September, the Automotive Service Association (ASA) announced it is transitioning to a new and innovative association model leveraging its expansive history to create a single, unified industry voice. Under the new model, a 50-state regional structure will take place to represent every member with one voice. As the next phase in that announcement, ASA unveiled its new organizational map of the U.S. To see the new regional map, visit https://www.asashop.org/asa-re-

gions/ In addition, ASA accepted resumes for the various regional director positions through Oct. 8. “We’re extremely excited about the new direction, the future of ASA and the opportunities it will provide for our members,” said Ray Fisher, AMAM, president and executive director. “We are seeking successful leaders who will provide excellent servant-leadership to our members.” Source: Automotive Service Association

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

MASSACHUSETTS

NEW JERSEY

NEW YORK

Curtiss-Ryan Honda

Boch Honda

Madison Honda

Lamacchia Honda

800-523-4190 203-929-0635

833-319-6270 781-619-6791

800-648-0293 973-822-1710

315-471-7278

Shelton

Norwood

Dept. Hours: M-F 7-5; Sat 7-4 callen@curtissryan.com

Dept. Hours: M-F 7:30-5 bh-wholesale@boch.com

Lia Honda of Enfield

LIA Honda Northampton

Enfield

800-221-3131 860-741-3401

Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com MAINE

Northampton

800-369-7889 413-587-2900

Dept. Hours: M-F 7:30-5; Sat 8-3 dstanisewski@liacars.com NEW JERSEY

Berlin City Honda

Clinton Honda

800-640-6685 207-774-6685

877-657-2787

South Portland

Dept. Hours: M-F 7:30-5:30 mmmparts@berlincity.com

Prime Honda

Annandale

Dept. Hours: M-F 7:30-6; Th. 7:30-7; Sat 7:30-4 klavalle@driveprime.com

240-864-0880

Vineland

800-893-3030 856-692-4449

Dept. Hours: M-F 7:30-5 (W until 7); Sat 7:30-3 dlyons@rossihonda.com

Route 22 Honda Hillside

973-705-9100

Honda of Turnersville

Sussex Honda

800-883-0002 856-516-6262

800-842-0557 973-579-3500

Turnersville

Dept. Hours: M-F 8-6; Sat 8-4 mbivario@penskeautomotive.com

Hudson Honda 866-483-6917 201-868-9500

MARYLAND

Germantown

Rossi Honda

Dept. Hours: M-F 8-5; Sat 8-2 abdulc@clintonhonda.com

West New York

Criswell Honda

Dept. Hours: M-Thu 7-7; Fri 7-6; Sat 7-5; Sun 8-4 jay.madisonhonda@gmail.com

Dept. Hours: M-Sat 8-5 rt22hondaparts@route22honda.com

Saco

207-391-7910 207-282-0900

Madison

Dept. Hours: M-Sat 8-5 mdasilva@hudsonhonda.com

Dept. Hours: M-Fri 7-7:30; Sat 7-6 hondaparts@criswellauto.com

Newton

Dept. Hours: M-F 8-5 realhondaparts@sussexhonda.com NEW YORK

Ide Honda Rochester

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

Syracuse

Dept. Hours: M-F 7:30-5:30 parts@lamacchiahonda.com

Lia Honda of Albany Albany

800-272-6741 518-482-2598

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

Lia Honda of Brewster Brewster

845-278-4177

Dept. Hours: M-F 7:30-5; Sat 8-4 cpaulson@liacars.com

Lia Honda of Williamsville Williamsville/Buffalo

877-659-2672 716-632-3800

Dept. Hours: M & W 7:30-7; Tu & Thur 7:30-6 Fri 7:30-5; Sat 8-5:30 mmiller@liacars.com

Ray Laks Honda Orchard Park

716-824-7852

Dept. Hours: M, Tu, Th 8-8; W, F 8-6; Sat 8-5 jmaybee@raylaks.com

Dept. Hours: M-Thur 8-8; Fri 8-5:30; Sat 8-5 parts@idehonda.com

ACURA MASSACHUSETTS

NEW JERSEY

Acura of Boston

Acura Turnersville

Elite Acura

Park Ave Acura

800-254-1169 617-254-5400

888-883-2884 856-516-6060

856-722-9600

888-690-7621 201-587-0028

Brighton

Turnersville

Maple Shade

Dept. Hours: M-Sat 7:30-6 bmartinsen@eliteacura.com

Dept. Hours: M-Thur 8-7; F 8-6; Sat 8-4 manny.aliagra@bernardiauto.com

Dept. Hours: M-F 7:30-5; Sat 7:30-4:30 sbaptist@penskeautomotive.com

Acura of Peabody

Autosport Acura

Open Road Acura of East Brunswick

973-361-3117

732-238-0777 732-238-5466

Peabody

800-878-3600 978-532-9110

Dept. Hours: M-Sat 8-5 dbritt@acurapeabody.com

Denville

East Brunswick

Dept. Hours: M-F 7-6; Sat 8-4 erin@theautosportgroup.com

Dept. Hours: M-F 8-5; Sat 8-4 robert.talbot@openroad.com

Bill Vince’s Bridgewater Acura

Open Road Acura of Wayne

908-704-0307

973-696-5151

Bridgewater

Dept. Hours: M-F 8-7; Sat 8-4 mattn@bridgewateracura.com 38 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

Wayne

Dept. Hours: M-F 7:30-6; Sat 8-4 jonathan.tangen@openroad.com

Maywood

Dept. Hours: M-F 8-6; Sat 8-3 ron@parkaveacura.com NEW YORK

Acura of Westchester Westchester

914-834-8887

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

PENNSYLVANIA

VERMONT

Apple Honda

802 Honda

800-960-9041 717-848-2600

802-223-9700

York

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

Berlin

Dept. Hours: M-F 7:30-5; Sat 8-Noon hondaparts@802cars.com

Baierl Honda Wexford

818-332-7351

Dept. Hours: M-F 8-5; Sat 8-4 markludwig@baierl.com

Shenango Honda Hermitage

800-858-0849 724-981-7106

Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@shenangoauto.com

Sussman Honda Roslyn

800-682-2914 215-657-3301

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

NEW YORK

PENNSYLVANIA

Curry Acura

Baierl Acura

800-725-2877 914-472-7406

800-246-7457 724-935-0800

Scarsdale

Wexford

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

Dept. Hours: M-F 8-5; Sat 8-4 cameronegerter@baierl.com

Paragon Acura

Davis Acura

718-507-3990

267-296-1000 215-943-7000

Woodside

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

Smithtown Acura

Langhorne

Dept. Hours: M-F 7-7; Sat 8-4 frankp@davisacura.com

St. James

Sussman Acura

Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com

800-826-4078 215-884-6285

631-366-4114

Jenkintown

Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 39

From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Auto Body Shops Can Take Control of Credit Card Processing Fees It came as no surprise to me our “Who Pays for What?” surveys have found the vast majority (95%) of collision repair businesses accept payment from customers by credit card. All of us as consumers have become accustomed to the convenience of using credit cards, and enjoying the rewards—cash back, travel points, etc.—we can receive by paying our bills with them. But have you stopped to look recently at what it’s costing your business to offer that convenience to your customers? Have you looked into what your options are for reducing or eliminating those costs? Now you might think I’m talking about shopping around among the hundreds of merchant processing options out there, most of which are all too eager to assure you they will meet or beat your current processing fees.

That is one option. But let’s look at some ways you might be able to trim your card processing costs without switching vendors. It’s a project one of my Collision Advice teammates, Mark Head, spearheaded this year. He’s a true financial specialist, working with our Collision Advice clients to dig into their profit-and-loss statements and really make sure they understand how to maximize their profitability and where they need to focus their attention. Mark first contacted our clients who are members of our “20 groups” to find out what the true cost was of their card processing, meaning the fees they were incurring monthly. As you’re probably aware, card processing fees can vary significantly. Some are based on a flat percentage. Some include a percent-

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age plus a per-transaction fee. Some vary based on the type of card (Visa, MasterCard, Amex, etc.). Some differ based on whether the card was present at the time of the transaction versus a remote transaction. Did you know that? I sure didn’t! So Mark had our clients tell us which processing service they use—there were almost two dozen different vendors—and had them all use the same basis to determine their processing costs: divide the total fees paid in a given month, by the total sales dollars paid via credit card for that month. The bottom line on processing fees? “It ranged from a low of just above 1.5%—1.64%, to be exact--to more than 4%—4.2%, in fact,” Mark told me. “This is often an ‘unknown cost’ for a lot of shops. They know they pay something, but have

never really taken a close look at what it’s costing them to offer their customers that convenience. That’s what I wanted to point out to them: is it worth giving up 3 or 4% of the bill to allow customers to pay with a credit card versus cash or a check.” Remember this percentage erodes your bottom line! So what can auto body shops do about this cost? First, they may want to place a limit on the dollar amount a customer can pay using a credit card. Say a customer’s vehicle is in for a $3,500 repair, including their $1,000 deductible. Do you allow the customer to put the insurance payment into their own account and pay the whole $3,500 on their credit card? If so, you just paid $105 (if you pay a 3% processing fee) for that transaction. But what if you placed a cap of $1,000 on the amount the customer

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Hoffman Ford Lincoln

600 Connecticut Blvd., East Hartford, CT 06108

860.282.0861

860.290.6336 Fax

fordparts@hoffmanauto.com M-F 7am - 5:30pm Sat 7:30am - 3:30pm

Hoffman Toyota 46 Albany Turnpike West Simsbury, CT 06092

750 Connecticut Blvd. East Hartford, CT 06109

860.651.3393

860.290.6121

860.658.6801 Fax toyotaparts@hoffmanauto.com

lexusparts@hoffmanauto.com

M-F 7am-5:30pm Sat 7:30am-3:30pm

Hoffman Honda 46 Albany Turnpike, West Simsbury, CT 06092

860.651.3747

860.658.6210 Fax

hondaparts@hoffmanauto.com M-F 7am-5:30pm Sat 7:30am-3:30pm

Hoﬀman Audi of East Hartford 700 Connecticut Blvd. East Hartford, CT 06108

860.290.6309 Fax

M-F 7am-5:30pm Sat 7:30am-3:30pm

Hoffman Nissan 46 Albany Turnpike West Simsbury, CT 06092

860.658.3370

860.651.9642 Fax

nissanparts@hoffmanauto.com

M-F 7am-5:30pm; Sat 7:30am-3:30pm

Hoffman Porsche 630 Connecticut Blvd., West Simsbury, CT 06108

860.290.5536 860.290.6101 Fax

860.282.0191

michael.belvedere@hoffmanauto.com

860.290.6355 Fax audiparts@hoﬀmanauto.com M-F 7-5:30 Sat 7:30-3:30

M-F 7am-5:30pm Sat 7:30am-3:30pm

BMW of Waterbury

Audi New London

133 Schraffts Drive Waterbury, CT 06795

490 Broad Street New London, CT 06320

860.274.5471 860.274.0671 Fax jason.herndon@hoffmanauto.com

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Hoffman Lexus

860.447.5090 860.447.5099 patrick.brady@hoﬀmanauto.com M-F 7-5:30, Sat 7:30-3:30

M-F 7am-5:30pm Sat 7:30am-3:30pm

autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 41

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can pay by credit card? They still get the convenience of paying their deductible by credit card, but you paid only $30 in credit card processing fees because the insurance portion of the bill wasn’t included in the credit card transaction. In this example, the shop saved $75; multiply that by the number of credit card transactions you have per month, and it adds up to real money. There’s some indication a growing number of collision repair shops are placing such limits. One of our “Who Pays for What?” surveys in 2020 found 76% of shops had no such limit. This year, the survey found that had fallen to 61%. Limits of either $1,000 or $2,500 were the most common. But you might also consider under what circumstances you accept payment by credit card. Some insurance companies have pressed their direct repair shops to accept payment from the insurer by credit card. Shops that recognized what that 2% or 4% off the bottom line could mean for their business often found they were successful in requesting other forms of payment from the in-

surer. Some of those shops also said the insurance company allowed them to add the credit card fees to the amount they were being paid. I’ll discuss this later in this column, but I want to note here that is not something we confirmed ourselves, and neither Mark nor I are offering any legal advice here. But here’s another scenario Mark and I have been hearing about: tow companies who want to pay the bill at the shop by credit card when picking up a total loss vehicle. I just have to scratch my head thinking about any shop agreeing to that, particularly when our “Who Pays for What?” surveys consistently show more than half of shops are not marking up tow bills—that’s a topic for another column. When that tow truck driver pays that bill with a credit card and you’re not marking up the sublet tow charge, you’re not only not making any money on that tow, you’re actually losing money—the 2% or 3% or 4% you’re paying in credit card processing for that transaction. That just makes no sense.

So those are some ways—aside from shopping for lower processing fees—to limit or reduce how much accepting some payments by credit card is costing your business. But Mark also did some more digging into some other cost-saving possibilities for shops. “We found some processors allow a shop to offer what’s called a cash-discount program,” Mark said. “It implements a service fee on all customers, while giving a discount to the customer who pays in cash or check.” There’s an important caveat, Mark said: such a surcharge is not legal in 10 states, including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, Oklahoma, Texas and New York, though we heard recently that may change in New York. But here’s how it can work in the other 40 states. “First, you have to post signage in your office or lobby or customer area explaining that all final bills include a 4% surcharge, for example, on top of the total bill,” Mark said. “The surcharge should be whatever percentage you actually pay in fees.

And you need to tell the customer up front. That’s very important.” It’s easy for a customer to avoid paying that surcharge: they just need to pay their bill with cash or a check. Basically, the credit card fee shows up on the customer’s end, not the shop’s; therefore the shop isn’t paying a fee. Mark’s presentation on this was a real eye-opener for a lot of our auto body shop clients who really hadn’t realized, first, how much credit card fees were eroding their bottom line, and second, that they had options. I’m so grateful to him for doing this research and being able to point our clients to some of the processors offering the cash-discount program if they are eligible to use it in their state. “As shop owners, you always want to grow sales, but you need to keep an eye on costs as well,” Mark told them. He’s the kind of “numbers guy” I’m thankful to have on my team.

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Shop Strategies

Stacey Phillips is an award-winning freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at stacey@radiantwriting.com.

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Marketing Effort at Tony’s Body Shop Pays Off

Body Shops Giving Back

Tony and Isabel Flores opened To- es face and how Tony’s Body Shop derstand their true costs to operate ny’s Body Shop in Oxnard, CA, in has been successful through its mar- so they may be giving the farm away and not even know it. keting efforts. 1965. Considered to be hard-workwith Stacey Phillips About 20 years ago, I joined the ing business people by their friends What challenges are small AkzoNobel Acoat Selected program and family, the couple taught their businesses facing right now? to learn about financials. I was edchildren good work ethics from an ucated about profit and loss stateearly age. One of the biggest issues ments, balance sheets and writing Their son, Jay, found they were struggling financially and began with Stacey Phillips I see in the industry is that a business plan and marketing plan. working at the small mom-and-pop business owners truly don’t under- The program really helped me and shop after graduating from college. stand financials and know if the boat I’m still part of it today. It allows me He now operates the family business is sinking or floating. They don’t un- to meet with other shop owners and talk about what’s happening with his wife, Evelyn, their children, with the industry so I know Jayson, Jaycob and Jasmine, Jay’s what I need to do to stay older sister, Maria, and his cousin, current. Adrian. with Stacey Phillips I also participated in the The family business is located 3M ARMS course, which about two miles from where it origiis an older class that talked nally opened more than 50 years ago, about capturing jobs when and the Floreses pride themselves on they come to your door and providing a quality repair to custombasic business practices. It ers by following OEM procedures. was awesome and I learned Autobody News talked to Jay Tony’s Body Shop is located in Oxnard, CA, about two miles withsmall Victoria Antonelli from where it originally opened more than 50 years ago a lot. about the challenges business-

Q: Tips for Busy Body Shops A: My SEMA

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I encourage people to leave their cubby or shop and go somewhere to sit in a classroom and learn. By talking to industry participants and touring shops, it helps you build a better business. Business is business; it doesn’t matter if you sell pizza, work in a janitorial company or in collision repair, you need to understand basic accounting.

Q: A:

Why is it important to create a business or marketing plan?

Many businesses struggle because they have no business plan or marketing plan. They haven’t sat down and thought things through and don’t have accurate knowledge about what it takes to operate a successful business. In order to survive in business, you need a marketing plan. How else are you going to bring people

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to your front door? There is no such thing as luck. It’s hard work and planning. You’ve either written a marketing plan and are successful, or you failed the plan and are struggling. I recommend writing a twopage marketing plan outlining how you are going to get customers to the front door. Marketing is like a diamond that has many facets.

What types of marketing have you implemented at Tony’s Body Shop?

I started using television as part of my marketing plan a long time ago. When I moved to this building 15 years ago, it was twice the size of my prior location and I wanted to ensure all of my past customers knew we moved. I didn’t want to lose my customer base. I’m no different than an insurance company that wants customers to renew and re-sign their policy. I’m looking for customers to come back and tell their family and friends about us. I’ve been successful with it so I’ve kept it going. My father was

once told by a man in Argentina that if you do the best job you can for the car you are working on today, don’t worry about where the next car is going to come from. In essence, he meant that if you do a good quali-

catches the most flies.” In marketing terms, it simply means that the shop that “weaves the largest web” will capture the most business. One area where the majority of shops get an “F” is having a really good website. It seems everyone you know can build a website but people who truly understand SEO are hard to find. A professional website should include a blog or content about your business, make it easy to find the address and phone number and look good on a phone, tablet and computer. The family business is run by Jay Flores, his wife, Evelyn, I found it really helpful to their children, Jayson, Jaycob and Jasmine, Jay’s older have access to my website sister, Maria, and his cousin, Adrian so I can fix an error and add ty job, you’ll always be busy. It’s a content without being held hostage very basic concept but so true. by a company. Marketing your business can In addition to television, what even include simple things like other types of marketing have writing thank-you notes to customyou found helpful? ers, spending time doing follow-up phone calls to ensure they had a There’s no silver bullet. good experience and giving them a There are many facets. As treat when you deliver the car. We the writer Tom Franklin said, “The give customers a bag of peanuts with spider that weaves the largest web a tag that says, “Courtesy of Tony’s

Body Shop.” We take a proactive approach because we want our customers happy and coming back. Having good reviews is very important. People looking for a body shop are going to Google you and my business philosophy is that customers are always right even if they are wrong. You want customers coming back to your business and telling others about it. Of course, there are exceptions when a customer is too hard to deal with but that doesn’t mean you have to fix that car the next time. Overall, it’s important to make customers happy so they tell others about the great service they received and write a good review about it. The majority of time customers are good people and if you do a good job and make sure the car is repaired correctly, that customer will tells his or her family, friends and coworkers about their experience. I have built a tremendous following in Ventura County where I am located. In one of my commercials, we say, “Ask around. Ask your friends and neighbors where the best place is to repair your car.” I

Kornafel Earns Advocacy Award The University of the Aftermarket Foundation (UAF) has presented Pete Kornafel with the UAF Educational Advocacy Award, recognizing an aftermarket leader for his dedication to the pursuit of excellence in education. For the past 25 years, Kornafel has led the industry’s scholarship program, first through the Global Automotive Aftermarket Symposium (GAAS) and then as chairman of the University of the Aftermarket Foundation’s scholarship committee. His dedication throughout the years has led to more than 5,700 scholarships being awarded to students pursuing aftermarket careers. In 2018, Kornafel partnered with Danielle Sonnefeld as co-chairs of the committee, overseeing the foundation’s ever-growing scholarship program. Recently, he transitioned to the role of past chairman of the scholarship committee and will continue to serve on the UAF board of trustees. Source: UAF

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can pretty much guarantee if not all three, two out of the three will point you in my direction. That doesn’t

ture rate and ensure they are spending time with customers up-front to make sure all their questions and needs are handled. A lot of people fail to write a marketing plan because they are on DRPs that refer work to the shop. The challenge is that DRPs have evolved. In my experience, DRPs used to allow shops to provide a safe and proper repair. However, with cars like Tesla and all of the ADAS features in new The team understands the importance of assisting vehicles, the cost of repairs customers with the claims process has skyrocketed. happen overnight. It takes years of I’ve found that the goal of most effort and includes everything from insurance programs is to minimize how you answer calls, to how you repair cost. That can be challenging repair and deliver the car. with you have a car with ADAS features. Inherently, it can be viewed What advice do you have as two competing goals: lowest cost for shops as future vehicles possible versus highest safety posevolve? sible when OEM guidelines are followed. For this reason, Tony’s Body As time passes and a totaled Shop has removed itself from most car is replaced with an ADAS insurance programs that do not comvehicle, I believe the claim count is mit to OEM guidelines. going to be less. As a result, shops The John Eagle Collision Cenowners need to focus on their cap- ter lawsuit in 2017 changed how

auto body shops do business. We are held liable for all the repairs we perform, even after the car is sold and ownership transfers. In today’s world of complex cars geared to crash avoidance and occupant safety, a safe and proper repair following OEM repair procedures is the only way to continue to stay in business. Returning a car to its pre-accident crash worthiness for the safety of the customer and their family is our only option. This is why Tony’s Body Shop has chosen to be certified by many different vehicle manufacturers. I often ask people if they would repair an airplane or rebuild its engine without following the manufacturer’s repair procedures. Of course not; people’s lives are at risk. Then why is a car any different?

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Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who 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.

Changes Ahead for Collision Repair Shops Based on AI, New Automotive Finishes

Shop Showcase

The impact for collision repairers tated as to what an appraiser needs of artificial intelligence (AI) and to review—while the balance will changes in automotive finishes were require being handled “old school: with Ed Attanasio among the topics discussed by pre- have it towed, take the car apart and senters at the Collision Industry go classic blueprinting.” Electronic Commerce Association (CIECA) conference held in September in Nashville. Jimmy Spears, head of automotive for Tractable, said the with Edcompany’s Attanasio AI (machine-learning) system has become adept at quickly determining from photos if a vehicle is a total loss. “One of things that AI does a wonderful job on is triage,” Spears said. “We’re in the high 90s of callPaint company representatives say auto body shops will increasingly need to take potential ing balls and strikes: Is this car rewith Ed Attanasio refinish issues into account early in the repair pairable or is this car not repairable.” planning process For insurers, he said, the system can produce 40% of initial estimates About a year ago, Tractable “without any further line items” announced it was working with an needing to be added. An equal per- insurer in Spain to offer “straightcentage require review of one or two through processing” of some claims, with Ed Attanasio line items---with the estimate anno- such as single-car accidents with no

Social Media for Shops

SEMA Show Goes On

injuries; the customer uploads images, the Tractable system prepares an appraisal and “between eight and 15 minutes later,” the claim is paid and “as far as the consumer knows, is closed.” Spears compared it to ordering and paying for a drink at Starbucks via an app and just picking it up, versus going in to order and pay and then waiting for the coffee drink to be made. “I’d really like to see the U.S. start to do more of that” type of auto claims processing, Spears said. He acknowledged while AI may be reducing upfront time for insurers to produce initial estimates, it isn’t resulting in more accurate estimates. “Supplement rates are still the same. That doesn’t change,” Spears said when asked about even those single-car accident claims. “That’s probably one of the things to think

Media and Publicity for Shops

about: just because you have AI, it doesn’t mean that you’ve managed to make a supplement go away. If there’s something behind that [bumper] cover that’s damaged, it’s going to be damaged. But it’s better not to write [for that] and assume it. But no, supplement percentages aren’t any lower.” During another panel discussion at the CIECA conference, paint company representatives laughed when asked if the industry is close to AI helping with refinish color matching. “It’s a fair question,” said Dan Benton, global product director of color marketing at Axalta Coating Systems. “We’re chuckling because no, we’re not. There’s just so many variables.” Jeff Wildman, the North American manager of OEM and industry relations for BASF Automotive Re-

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finish Coatings, agreed, noting even just spray technique, let alone paint formula, can influence color match. “I can give three people the same exact paint, and the same exact gun, and they’ll spray and we’ll get three different colors, because of that human variable,” Wildman said. Colors are not going to get easier for shops to match, Wildman predicted. Some new vehicle manufacturers, for example, seem less concerned about addressing refinish issues upfront. “I can tell you they are looking at colors…that are not easy to spray at the OEM level or at the refinish level,” Wildman said. “But their designers want these colors. As they’re now starting to paint some of these at the factory, they’re learning: ‘You aren’t kidding, these are difficult to paint.’ So they’re struggling at the factory, and we’re going to struggle in refinish with them. But they want these colors because color sells cars.” Even some “legacy” auto manufacturers, “trying to differentiate themselves using color,” sometimes haven’t shared enough information

ahead of a vehicle’s launch to allow all the refinish systems to be prepared. “Mazda beat us all up pretty badly a couple years ago with some really tough colors, a red and a gray,” based on innovations in pigments and application, Benton said. “With U.S. and Western European auto manufacturers, there’s typically dialogue going on as colors are being developed so that everyone can formulate refinish match. In this case, it was Nippon working with Mazda, and the rest of us weren’t aware of it right away. That caught us by surprise. That doesn’t happen very often. “But Mazda was able to move the needle. They actually had great success with those colors, and it really drove some market share growth. So good for them. That’s how it should be. That’s what we should be doing as manufacturers: innovating in areas of color and that type of thing.” It’s another indication, however, Benton said, color match issues for shops won’t be ending any time soon. He said auto body shops also

should be aware of the increasingly functional role automotive finishes are playing, such as coatings that dissipate heat, or those that include anti-fouling properties to make them easier to clean and more mar resistant. “We’re all still trying to get more volatile organic compounds out of our systems, and we’re trying to do more to create low-energy cure technologies,” Benton said. Wildman said ADAS is impacting refinishing as well. “Today we talk a lot about repainting bumpers with sensors behind them, and how much paint can go on those, but it’s not just about the amount of paint,” Wildman said. “It’s what’s in that paint. What are the pigments? What are the metallics?” He joked Henry Ford today would tell customers they can have any color they want as long as it’s white, because lidar can’t see black. “You’re already starting to see more transparent colors, and you’re going to see reflective pigments and primers, with transparent pigment so we can see that primer with lidar,”

Wildman said. “So it’s going to become a more and more important part of how you repair that vehicle.” His advice to the industry will sound familiar: “The biggest thing is you’ve got to follow the OEM repair procedures,” Wildman said. “Typically when do you think about painting the car? When it’s in the booth. You can’t do that anymore. You’ve got to think about it upfront.” The repair planner needs to know if the bumper can be refinished, he cited as one example. None of the estimating systems have a line item for a quad coat, so you need to know upfront how to document and explain that. If the right color primer isn’t used, that could impact color matching. If a specialized toner is needed, one that might only be needed once a year, it’s not something you’re likely to have on hand—and your distributor may not either, which means it could be days away. “You’ve got to think of paint not just as an afterthought once the car is in the booth,” Wildman said. “That’s where a lot of shops run into issues.”

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To Scan or Not to Scan? CAA Says It’s No Longer an Option by Ed Attanasio

A car equipped with Advanced Driver Assistance Systems (ADAS) comes into your auto body shop. You keep hearing about the importance of pre- and post-repair scanning and re-calibrations, but you avoid them like COVID. You have had to take a few vehicles to the dealership to clear codes and in most cases, it simply delays the process and impacts your cycle time. You didn’t perform a prescan and then get stuck at the end of the repair because you can’t clear a code, and you don’t even know if it was from the accident. Auto diagnostics wasn’t something to worry about a decade ago, but now it’s the hottest topic on every shop floor in the country. So many questions. Do we have to scan every car and why? Will the insurance company pay us for them? If we opt out, can we get in trouble with the California Bureau of Automotive Repair (BAR)? Should we do the diagnostics in-house or job them out? And finally—what are the OEs saying about these scans? A recent video produced as part of I-CAR’s Repairers Real series focused on these questions and searched for answers. In short, some insurance companies have agreed to pay for pre- and post-scans and programming while a small handful are still refusing to join the party. People often describe today’s cars as “computers on wheels” and every year the cost of these systems—the software, cameras and sensors—comprise more of the vehicles’ total cost. Electronics are responsible for 40% of a new car’s total cost, according to a Deloitte analysis, up from 18% in 2000. Computing technology has impacted every aspect of automotive design, engineering and manufacturing. Car designers have a wide range of digital tools and processes that enable the OEs turn out cars much faster and with more precision than ever. CAA Executive Director Rick Johnson recently browsed through position statements by 15 major carmakers and although the language differed the message was universal.

“They all state that if you want to repair a car properly, shops have to perform all of the diagnostics required—pre and post scans and re-calibrations at the conclusion of the repair,” he said. “The fact that we’re having this conversation now is a little ridiculous because this stuff should be part of the process with every car without question.” Johnson describes a wrestling match over diagnostics that will likely end up in the customer’s lap.

County, and chairman of CAA’s Legislative Committee, said, “An auto insurer denying payment for a pre- or post-scan that doesn’t contain Diagnostic Trouble Codes (DTCs) is like your health insurer denying payment for an X-ray because it didn’t show any fractures.” Etherton was denied payment from an insurance company in June, so he filled out a Request for Assistance (RFA) with the California Department of Insurance (CDI).

“During repairs, a DTC may be set in one of the vehicle’s computer modules by common operations such as removing a headlamp, a door handle or any component that is connected to the car electrically.” — Monte Etherton “Our position at CAA is if an insurer denies payment for any diagnostic procedure, the shop needs to explain the situation to the customer and then it’s up to them to pursue it,” he said. “You need to pass the cost onto the customer rather than eating it yourself or not doing it altogether. If the insurance company isn’t willing to pay, the shop still has to do the work because in the end they’re liable.” Without a pre-scan, shops are operating in the dark, Johnson said. “If the shop doesn’t do a prescan, how will they know what was wrong with the car’s electronics before the accident, or from it? Even if there aren’t any codes in the car, the shop is going create a bunch when they fix it, unplugging headlights and airbags, etc. So, if they don’t do a post-scan at the other end, they can’t clear the codes before it leaves the building.” Some insurers say if the car does not contain—or was not impacted near—ADAS, scans are not required, but Johnson said that’s not the case. “Cars have had computers on board since the late 1990s, so they need to be scanned whether they have ADAS or not. Some insurance companies are trying to say that cars made prior to 2010 don’t need to be scanned, which is obviously false.” Monte Etherton, owner of Fender Mender Collision Repair Specialists in North San Diego

56 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

He believes his explanation letter and included documentation allowed the CDI to fully investigate the problem. In this case the CDI was able to resolve it—during the investigation, Fender Mender received full payment from the insurer for the denied scanning operations.

In his explanation letter, Etherton first described the entire issue succinctly. “‘Scanning’ (testing for Diagnostic Trouble Codes, or DTCs) is the process of using an electronic scanner (scan tool) to access and interpret computer module information within a vehicle,” Etherton wrote. “The diagnostic software in the scan tool checks the vehicle systems for fault codes or DTCs, and can even monitor systems while the vehicle is running to check performance. “(Unnamed insurer) has recently taken the position that they do not owe for ‘scanning’ unless damage has affected ADAS components. Examples of ADAS components are blind spot monitors, or collision avoidance sensors. This position contradicts industry standards. “Scanning with any repair is both an accepted trade standard for good and workmanlike repairs, and a recognized OEM service specification. All major vehicle manufacturers state that any vehicle being repaired by a body shop must be pre-scanned

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and post-scanned at minimum. “Why? Pre-scans are required so the shop knows what DTCs exist before they work on the car. DTCs that show in a pre-scan may or may not be related to the repairs at hand. In some cases, there may not be any DTCs on a pre-scan, but it still must be completed to create a baseline. “During repairs, a DTC may be set in one of the vehicle’s computer modules by common operations such as removing a headlamp, a door handle or any component that is connected to the car electrically. “After reassembly, a post-scan is required. This will show if any DTCs are still stored in the vehicle’s computers. Codes that were set from the damage (or the repair) are then cleared with the scan tool. A final-scan is needed to prove the DTCs are cleared, thus restoring the vehicle to pre-loss condition. “The laws are clear. The shop and insurer must follow OEM service specifications, and the OEM service specifications require scanning: “1. § 2695.8(f) Insurance Fair Claims Regulations: The estimate

prepared by or for the insurer shall be of an amount that will allow for repairs to be made in accordance with accepted trade standards for good and workmanlike automotive repairs by an ‘auto body repair shop’ as defined in section 9889.51 of the Business and Professions Code, and in accordance with the standards of automotive repair required of auto body repair shops as described in the Business and Professions Code and associated regulations, including, but not limited to, Section 3365 of Title 16 of the California Code of Regulations. “2. § 3365. BAR Regulations regarding Auto Body and Frame Repairs: The accepted trade standards for good and workmanlike auto body and frame repairs shall include, but not be limited to, the following: Repair procedures including but not limited to the sectioning of component parts, shall be performed in accordance with OEM service specifications or nationally distributed and periodically updated service specifications that are generally accepted by the autobody repair industry.

58 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

“3. Excerpt from GM Position Statement on Scanning: General Motors takes the position that all vehicles being assessed for collision damage repairs must be tested for Diagnostic Trouble Codes (DTCs) during the repair estimation in order to identify the required repairs. Additionally, the vehicle must be retested after all repairs are complete in order to verify that the faults have been repaired and new faults have not been introduced during the course of repairs. “In their denial (unnamed insurer) attempts to put the burden on the shop by stating, ‘Shop Did Not Provide Documentation of Loss Related DTCs.’ (Unnamed insurer) is not only in violation of the law, it is doing a disservice to its customers by not paying for this legitimate and necessary process which allows the repair shop to make sure the customer’s vehicle is restored to its pre-loss condition to the highest degree possible.” Etherton is hopeful but cautious about getting compensated for scans in the future, he said.

“Everyone is on the same page with this—including I-CAR, the BAR, the CDI and all of the OEs,” he said. “Now if we can convince all of the insurance companies to come onboard, this can hopefully become a non-issue.” CAA Lobbyist Jack Molodanof has been working with the BAR and monitoring the issue carefully. “The BAR is definitely moving into the direction of citing and fining auto body shops that don’t perform work according to OEM service specifications including pre- and post-repair scans and calibrations,” he said. “They’re considering up to a $5,000 fine per citation, if they believe it’s something that is safety-related.”

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Industry Insight

with John Yoswick

Lawmakers in 3 States Tackle Topics Impacting Collision Repairers

Shop Showcase

vehicles” that currently only require “a brake and lamp inspection, smog check and CHP inspection to make sure there are no stolen parts—nothing else.” At the other end of the country, Massachusetts legislator comments during a committee hearing in Septmeber could indicate repairers there are finally getting their message across about the need to address collision repair labor rates in the state. The state legislature’s Joint Committee on Financial Services held the hearing to collect testimony on a number of auto repair-related bills that propose setting a minimum reimbursement rate for labor by insurers to claimants. “Massachusetts has the lowest labor rate reimbursement in the nation,” Evangelos “Lucky” Papageorg, executive director of the Alliance of Automotive Service

Lawmakers in multiple states have violations, similar to traffic school,” taken action in recent weeks on leg- as a means to avoid having such ciislation impacting auto body shops, tations made public. with Ed Attanasio including new regulations related to The new law also calls for addilabor rates, non-OEM parts and pub- tional safety inspections in order for lic disclosure of regulatory citations a salvage vehicle to be registered. against shops. California Gov. Gavin Newsom, for example, has signed into law a bill callingwith on that BuEdstate’s Attanasio reau of Automotive Repair (BAR) to create a system to give businesses receiving minor BAR citations not involving fraud a way to avoid having those made public. The California Autobody AssoLegislatures in three states in recent weeks ciation and the Automotive Service with Ed Attanasio have taken action on proposed laws related Association were among 11 trade to auto body shop labor rates, dealerships’ groups supporting the bill, which sale of non-OEM parts and public disclosure of regulatory citations against shops creates an independent panel to review BAR citations, and would allow “shops to attend compliance and The industry associations say that remedial training for minor record will help “protect consumers from with Ed Attanasio keeping and documentation citation unsafe, revived total loss salvage

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Professionals (AASP) of Massachusetts, told the committee members. “The number of shops has dwindled by 1,000. But there’s also been an increasingly fewer number of individuals getting into the collision repair industry as [technicians] because they can make more money working as an unskilled laborer than they can [as a] skilled repairer in a collision repair facility. Working at labor rates that are 30 years old is absolutely ludicrous.” Also testifying in favor of the bill was Brian Mountain, body shop director at Collision 24 in Brockton, MA. “The hourly rate of reimbursement in 1988 was an average of $30,” Mountain said. “Today it is an average of $40. The rate has gone up approximately 33% in 33 years while my other business costs have skyrocketed. I’ve seen insurance

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premiums go up 261%, the minimum wage increased 270% and the consumer price index increased 124% during the same period of time.” “You cannot repair today’s vehicles based on the rates that were being paid 30 years ago,” Papageorg told the committee. Frank O’Brien, vice president of state government relations for the American Property Casualty Insurers Association of America (APCIA) represented the insurance industry at the hearing. He followed up Papageorg’s testimony by telling the committee, “There is no free lunch…If you add cost to a system, it puts price pressure on the product…It’s common sense. If you add cost to the system it’s going to have an impact on price, and that impact is not going to be to lower prices.” Before moving forward with passing new legislation, the joint committee is in the process of establishing a commission to study the issue, “whether that means more hearings or visits around the commonwealth,” said Rep. James M.

Murphy, the House chairman on the committee. “Evidently there is an issue because the body shops are all saying the same thing.” At the conclusion of the testimony, Murphy sounded skeptical about insurance industry arguments against the legislation. “I’ve heard today, and I’ve heard in the past, that any increase to the cost of the labor rate is going to automatically increase premium costs,” Murphy said. “I don’t necessarily accept that. You’re going to have to show me why increasing a labor rate is going to increase premiums, because there are other ways that money can come out of the system to not increase premiums. “The goal is not to raise premiums for consumers in the commonwealth,” Murphy concluded. “The goal is to make sure these body shops are still there to support all of the insurance companies that need these cars fixed…I think now is the time to really roll up our sleeves and get to the bottom of this issue before the industry itself, in regard to the repair facilities, actually collapses. Then you’ll have no one to fix the

cars.” In Illinois, Gov. J.B. Pritzker has signed House Bill 2435 into law, prohibiting an auto manufacturer from either requiring or prohibiting a dealer to sell any “secondary product,” defined to include non-OEM parts. The bill initially also prohibited an automaker from requiring dealers “to provide a customer with a disclosure not otherwise required by law,” but a later amendment removed that clause. “It is important that consumers are properly informed about the parts to be used on their vehicle,” said Wade Newton of the Alliance for Automotive Innovation, which represents automakers. “This legislation with our amendment will continue to allow an automaker the ability to require such disclosure to help ensure transparency.” Pritzker just three weeks earlier signed into law another measure, House Bill 3940, requiring automakers to pay a dealer for warranty repairs an amount no less than the amount a retail customer pays the dealer for the same services.

Cars as Investments on the Rise by Steven Symes, Motorious

Wealthy people don’t just stick all their piles of cash in bank accounts and in a house. They often invest in tangible objects, be it real estate, a business or collectable cars. A new Knight Frank Luxury Investment Index (KFLII) sheds light on why we’re seeing the value of certain collectable vehicles shoot through the roof. In the KFLII, wine and watches do come before cars, thanks to the two top items boasting a 13% and 5% 12-month increase in value, respectively, versus 4% for cars. However, when looking at the 10-year figures, cars boast an enviable 180% increase versus 119% for wine and 87% for watches. This doesn’t mean the good times will roll on indefinitely. After all, some items which used to be hot have fallen out of

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fashion. According to Andrew Shirley, editor of the KFLII, there are two items which were at the top but have fallen from those spots: rare bottles of scotch and Hermes handbags. Still, it’s important to note handbags enjoy a 91% 10-year growth rate and rare whiskey sits better than anything else in the top 10 with 483% increase in the past decade. Those two items have seen a negative 3% and negative 4% growth in the past 12 months, showing the market can be volatile. We understand that for enthusiasts who don’t have piles of cash, seeing the value of a dream car skyrocket well beyond anything they can ever afford is maddening. Many hold ill feelings for those who, through prospecting, have caused what used to be within reach to become unattainable. In other words, while some are celebrating this trend there is a downside.

UPDATED DAILY

60 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

Elite Body Shop Solutions Has New Site Elite Body Shop Solutions has launched a new website at www.elitebodyshopsolutions. com—a place for the finest in this industry to discover the latest news, updates, actionable tips and downloadable resources. More than a website, the new Elite digital platform is filled with free, yet invaluable resources for collision shop owners. Get access to an abundance of practical guides to help with business management, financial stability and reputation building; free training videos; mastermind groups to exchange ideas, solutions and industry innovations; news about upcoming live events; and regularly updated blog posts with advice from Dave Luehr. Check out www.elitebodyshopsolutions.com today. Source: Elite Body Shop Solutions

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CCC Forecasts Future of EVs and How It Will Impact Body Shops change things like frequency, costs, cycle time and repair requirements is important. The simple fact is EVs are here to stay, despite all of the misinformation out there. The No. 1 complaint is EVs do not have sufficient range. Americans drive an average of 40 miles a day,

by Ed Attanasio

When it comes to repairing EVs, there are auto body shop owners out there who look at them differently. Some view EVs as something to invest in with little chance of making a profit. Others believe they represent a golden opportunity for shops to differentiate themselves from the pack. With any new technology, there will be those shops that will embrace it, but many will drag their feet or reject it altogether. The time to decide whether or not to jump into the EV game is now. Despite a recent ramp up in sales in the U.S., there are still only a small number of EV auto claims and repairs out there, with the maSenior Director/Industry Analyst Susanna Gotsch jority being in California and other from CCC Intelligent Solutions Inc. recently pubWestern states. lished a report, “Electric Vehicles Go Mainstream, The latest CCC Intelligent Implications for the P&C Insurance Economy Solutions Trends Report, “Electric Vehicles Go Mainstream, Implica- according to the U.S. Department of tions for the P&C Insurance Econ- Transportation, so range is not going omy,” analyzes emerging trends in to be an issue, according to experts. Even the shortest-range electric veelectric vehicles. Senior Director/Industry Ana- hicles can travel more than twice Order lyst Susanna GotschSpec fromAd CCC is that distance before needing to be the keeper of invaluable data and tethered to the power grid. this report is surely no exception. The Nissan Leaf can run for Sales Rep: Norman Morano This year, the U.S. has joined an average 150 miles on a charge, numerous countries using the pan- while the Chevrolet Bolt EV can demic as an impetusAdvertiser: to shift their cover 238 miles, Hyundai Kona 258 vehicles in operationKen from internal miles, Tesla Model 3 310 miles and Vangorder combustion engine vehicles to electhe Tesla Roadster 620 miles. Volkswagen of Kingston tric vehicles (EVs). Driven by new 1249 Ulster Ave With battery prices reportedfederal requirements from the Biden ly falling 73% since 2010, electric Kingston NY 12401 Administration, as well as competicars are expected to cost the same Phone: 845-336-5300x4 Fax: 845-336-7436 tion with China’s aggressive goals or even less than fuel-powered cars to move to an electricToday’s vehicleDate: fleet,2/15/2021 in the foreseeable future. The Interautomakers and many of their sup- national Energy Agency reported pliers have announced will be page by 2020, there up to 20 milAdthey type: quarter w/ VW DLPwere listing making significant investments in lion electric vehicles on the road, a numberDesigner: expected to go up to 70 milelectric vehicles andInstructions battery techto Graphic nologies. lion by 2025. Consumer acceptance of the EVsinformation People believe EVsspec are slower 1)Use all in his 8th page ad. is expected to grow, and sales in the than gas-powered vehicles, but in U.S. have already begun to ramp up, fact, they’re quicker than 2)Use the Liberty VW Qtr pagegenerally ad template according to CCC’s Trends Report. their gasoline-powered counterparts. EVs are only a 3)Include small partthe ofnetwork Others EVs are logos: claim Parts Trader, OEtoo exour national fleet, but Connection, those numbersOPS pensive, but if you live Trax and Collision Link in a state are climbing. Over the four quarters that’s offering an income state credit ending Q2 2021, EVs4)Use accounted for bullet or other incentives, they’reVW definitethe same points in the Liberty only 0.54% of CCC’s national in- ly price competitive. ad. Please don’t use the bullet point in the dustry repairable appraisal volume. Some folks say EVs are unsafe, existing 8th page spec ad. However, as sales ramp further, but those that have been tested by claim and repair volumes will grow, the National Highway Traffic Safety Thanks, so understanding how EVs will Administration (NHTSA) generally 62 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

Norm

get good marks. Many assume EVs are greener than gas-powered autos, but some people say no. In fact, EV motors convert 75% of the chemical energy from the batteries to power the wheels, while internal combustion engines (ICEs) only convert 20% of the energy stored in gasoline. Other doubters claim EVs are expensive to fix and maintain, but that’s another misnomer. It costs less because EVs don’t require regular oil changes or tune-ups, and there are far fewer moving parts to eventually fail and need replacing. They also use a simple one-speed transmission and eschew items like spark plugs, valves, a fuel tank, muffler/tailpipe, distributor, starter, clutch, drive belts, hoses and catalytic converter. Will EV batteries end up in the landfill, people ask? The answer is a definitive no. Once depleted, EV batteries, like 99% of the batteries found in conventional cars, can be recycled. For example, used EV power cells can be used to store solar and wind energy, or they can be

broken down with their more-valuable elements reused. And finally, will EVs suck up all of the available electricity once they start dominating the market? That’s another urban tale because the U.S. can add millions of electric cars to the current power system without having to build any new power plants. Much of this has to do with the fact most electric vehicles tend to be charged at night during off-peak hours when power demand tends to be the lowest. Up until now, most of the data about EVs has been derived from one OE—Tesla—but that is changing at a rapid rate, Gotsch said. “Many OEs are going to introduce EVs to the public within the next few months and others are going to step up their production, such as the Chevrolet Volt and Bolt EV, as well as Nissan’s Leaf. There are 40-plus different companies currently in production of EVs, including Ford, Volkswagen and Kia. “In states [like California], where there is a large number of

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EVs being sold, driven and crashed, body shops working on EVs will experience a return on their investment obviously quicker than in those states where EV sales will be slower,” she said. “It’s going to be very much like the advent of aluminum vehicles that happened back in 2015 when Ford released the F-150. Body shops at that time had to decide whether or not to pursue aluminum repairs. The challenge is how will this pay off over time and will it justify the investment?” As repairers consider when they should make the investments in tooling and training to be able to repair EVs, it will be important to consider both the ramp in sales in their markets and how long it will take to ramp up capabilities to repair EVs. These are tough decisions for any auto body shop, especially when you consider all of the other rapid evolution happening in our cars today, Gotsch said. “We’re at a juncture where the technology is moving faster than ever before, with ADAS, autonomous vehicles, aluminum vehicles—EVs are just another challenge for the repair-

ers,” Gotsch said. “You’ve got to think about automotive diagnostics and re-calibrations now more than ever. Do you do it all in-house or contract with a company to outsource them? Keeping up with the technology is going to accelerate, and involves new tools, equipment and training. Also, with new technology comes the potential for increased liability.”

California Gov. Gavin Newsom issued an executive order requiring sales of all new passenger vehicles to be zero-emission by 2035 and additional measures to eliminate harmful emissions from the transportation sector. The transportation sector is responsible for more than half of all of California’s carbon pollution, 80% of smog-forming pollution and 95% of toxic diesel emis-

“We’re at a juncture where the technology is moving faster than ever before, with ADAS, autonomous vehicles, aluminum vehicles—EVs are just another challenge for the repairers,” — Susanna Gotsch Nearly 40% of the total number of EV auto claims nationally for the four quarters ending Q2 2021 were in California, where EVs accounted for only 1.5% of its overall repairable volume. Only one other state saw a larger share of its repairable volume from EVs: Hawaii at 1.6%. California will be the country’s poster child or its guinea pig—depending on how you look at it— when it comes to the future of EVs.

sions—all while communities in the Los Angeles Basin and Central Valley see some of the dirtiest and most toxic air in the country. “California has more EVs than any other state and a large concentration of non-domestic vehicles,” Gotsch said. “When we look at things like registrations and insurance claims, we can clearly see that more and more consumers in California are buying EVs.

“For body shops in California, gearing up to work on EVs is more immediate than with other states. But the payoff is better with a faster return on investment. The shops that are looking to expand their businesses have likely already made the investment in aluminum repairs and EVs, so they will obviously have a distinct advantage.” For auto body shops that don’t have the tools, equipment and training to repair EVs, potential challenges will await them. “We found out that there is definitely going to be a learning curve with EVs,” Gotsch said. “Some shops report that it’s taking longer to fix these cars, when you include diagnostics, for example. Getting paid for the added procedures will also be more universally accepted over time. Once shops become more comfortable repairing EVs, their cycle time will go down and make these repairs more profitable.” So, if you’re an auto body shop owner and sitting on the fence when it comes to repairing EVs, maybe this report from CCC will inspire you to plug in.

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Hey Toby! with Toby Chess

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

Benefits of I-CAR’s Hands-On Spot Welding Class Answer this question: why should I 6. What are edge distance and send my techs to an I-CAR hands-on pitch? spot welding class? 7. What are some of the reasons Most of you will say this class for sparks when spot welding? is needed for Gold Class renewal. 8. What are shunt pliers? True, but this should not be your an- 9. Why is pressure needed at the tips when welding? swer. with DavidquesMcClune 10 . What is the basic spot welding Answer the following tions. If you get 100%, fantastic, but principle? if you don’t, you need to look at the I-CAR resistance spot welding class The reasons to use squeeze type rein a different light. sistance spot welding (STRSW) are as follows: 1. What is the temperature at the • Smaller heat affect zone comspot welding site? pared to MIG spot welds 2. Why are the arms and elec- • Easy to learn trodes made from aluminum and • Duplicates OE applied spot copper respectively? welds John 3. What is thewith voltage at theYoswick tips • Less corrosion protection materials destroyed when welding? 4. Which electrode is positive, the • No added filler materials used stationary or fixed? 5. Why are vise grip pliers jaws The resistance welding working principle is the application of current and isolated?

force through the welded parts develops resistance and thus creates a nugget in the melt joint.

California Autobody Association

Year in Quotes

the tips forces the molten metals together and the electrodes are held in place by the computer until the weld nugget solidifies. This whole process takes less than two seconds. Preparation of the panels is very important. First, the inside mating surfaces need to be cleaned entirely, but there are a few exceptions that

Fig. 1

There are no negative or positive electrodes. Electricity flows as a loop. With the arms made from aluminum and the electrodes from copper alloy, electrons flow through those parts fairly easily. When the steel panels are placed between the electrodes, resistance forms at the site and pressure is relieved in the form of heat, more than 2000 degrees Fahrenheit. The pressure at

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will be discussed later in the article. A best practice is to use a ScotchBrite on a die grinder, followed by a cleaning with a good wax and grease remover. See Fig 2 & 3. I am going to use pictures from the I-CAR STRSW course I conducted at Tony’s Body Shop in Oxnard, CA.

ant, how to conduct destructive weld testing. The first thing is to gather all the necessary equipment and materials, such as a Scotch-Brite, weldthrough primer, wax and grease remover, two-part adhesive, acid brushes, extra mixing tips, gloves and paper towels. (Fig 4) Next, read the repair manual before starting. (Fig 5)

tions are transferred to the backside of the prop. (Fig 8) The next item in the process is the removal of the E-coat from the flanges. It should be noted Chrysler does not want the E-coat removed from the mating surfaces on its vehicles. I explained to the students they should only remove E-coat from the spots where the electrodes will touch the metal and not all the coatings on the flanges. The more E-coat left on the flanges, the better the repairs (Fig 9).

ing surfaces, where adhesive will be applied, followed by a cleaning with a wax and grease remover (Fig 2).

Fig. 10 Gio Astudillo

Fig. 3

Before moving on, I want to talk about the I-CAR STRSW hands-on class. The class starts out with a number of different scenarios designed to teach the students the proper procedures for STRSW. The techs learn how to weld different thicknesses of metal, how to weld using adhesives, pitch (distance between welds) and edge distance (distance from the leading edge inward), how different arm sets work, machine operation and most import-

Fig. 6 Jaysen Estrada Fig. 9 Fausto Reynoso

The next step in the repairs is to remove all the coatings on the mat-

Fig. 11 Gio Astudillo

Yonker s Kia

Fig. 7 Gio Astudillo

Your Kia Pa Source rts

After all the parts are marked for proper alignment, the prop is dry assembled and the location on each spot weld is carefully marked (pitch and edge distance). Figs 6 & 7

Fig. 4

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Next, the front spot weld loca-

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The next item in the repair process is the adhesive. I have tested 51 students for the spot welding class, April to July, and not one read the label to determine the work time of the adhesive. On five of the tests, the work time for the glue was only 15 minutes. Now if you are doing a large panel, you had better find a slow-setting glue. Virtually all the techs would equalize a new twin tube of adhesive, but not after it had been opened. Again, I stressed to the techs the proper method: every time you change the tips, the adhesive needs to be equalized and after the tip is installed, run out about 3 inches bead of adhesive, to ensure the adhesive applied to the panel is totally mixed. See Figs 10 & 11. The adhesive is applied to both mating surfaces and an acid brush is used to coat the entire flanges with adhesives. See Figs 12 & 13

by two and set the machine for that thickness (see Fig 17).

Fig. 14 Edgar Andrade

A regular locking plier is not recommended as a shunt because they do not have the ability to pass a large amount of amps the welder puts out, which will reduce the strength of the spot weld. You will notice the shunt pliers use copper feet and No. 2 gauge wire to handle the extremely high amps (Go to Dentfix.com for more details).

Fig. 17

structive testing. When everything is ready, begin the welding process (Fig 19). Note in the picture the number of clamps used. By clamping on both side of the weld site, the weld process will greatly improve. I find a lot of techs use the pressure at the tips to draw the metal together. This is wrong because it creates larger air gaps in the weld site and the resistance in the weld site increases, causing more heat, which explodes out. Sparks will fly and if the gap is too large, a hole may occur. Fig 18

Determine the type of weld. In this case, the machine was set for weld bonding. Next the tips (cleaned with a Scotch-Brite) were checked for alignment and adjusted accordingly. The tip pressure was adjusted to the recommended pressure (80 psi for a standard gun and 60 psi for a high pressure gun). Too much pressure will cause deep indentations in the weld, and not enough pressure will cause metal throw out. Perform test welds and do de-

Some of the other major defects I have encountered are welds too close to the edge (sparks will fly) and welds on top of other welds.

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Fig. 18

Fig. 15 Fig. 12 Jaysen Estrada

This body shop has two spot welders, an I-4 (tech needs to set the parameters) and an I-5 (fully automatic). To set the non-automatic machine, the first thing is to measure the total thickness of the pieces of metal that will be spot welded. A caliper is used to accomplish this task (see Fig 16). You will divide that number

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Fig. 13 Gio Astudillo

The prop is assembled and a shunt pliers is needed for the first spot weld. (See Fig 14) Adhesive and E-coat are not electrically conductive and an electrical path needs to be established. A shunt pliers creates that path for the first weld (See Fig 15).

Fig. 16 Edgar Andrade

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autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 69

The wheelhouse arm was then installed and

The tip alignment checked (Fig 20). A test weld was performed and the final welds were done. Jay Flores, second generation owner of Tony’s Body Shop, was so impressed with the knowledge his techs had gained, he signed up his remaining four technicians for the same class. I hope when you need to take the I-CAR STRSW course, you will consider sending all your techs. It is well worth the cost to know a vehicle is being repaired properly.

Fig. 19 Jaysen Estrada

(l to r) Jay Flores, Edgar Andrade, Fausto Reynoso, Gio Astidillo, Jaysen Estrada, Martin Perez Jr.

Fig. 20 Edgar Andrade

Did you find all the answers to the questions? If no, read the article again. Still lost? Email me at tcspeedster@gmail.com and I will send them to you.

Genuine NISSAN & INFINITI OEM Wholesale Parts are Superbly Crafted to Strict Quality Standards. THE FOLLOWING DEALERS PROUDLY STOCK GENUINE PARTS FOR YOUR NISSAN OR INFINITI REPAIRS.

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Sedgwick to Use CCC Intelligent Solutions’ AI to Digitize Auto Appraisals Sedgwick, a global provider of technology-enabled risk, benefits and integrated business solutions, and CCC Intelligent Solutions Inc. (CCC), a SaaS platform for the property and casualty insurance economy, announced a multiyear agreement whereby CCC’s mobile and artificial intelligence (AI) claims capabilities will power Sedgwick’s auto appraisal offering and related workflows. The agreement will help redefine Sedgwick’s auto appraisal capabilities, enabling the auto claims services provider to offer clients the next steps towards a digital end-toend automobile physical damage evaluation experience, streamlining and improving their policyholder experiences. “Working with CCC to bring proven AI and mobile innovation into our process marks the next milestone in the strategic growth and advancement of our auto physical damage management solutions,” said Chris Bakes, Sedgwick managing director for auto appraisals. “On the heels of several key acquisitions, the CCC cloud will help

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scale our auto business by extending our reach and our technology capabilities, allowing us to elevate the appraisal process in this industry to a new standard of excellence.” Sedgwick will leverage CCC’s suite of cloud-based AI solutions, helping its clients deliver an enhanced digital experience from first notice of loss to resolution. “Digital and AI-first experiences are being activated across the industry and CCC is proud to be powering this transformation, improving the lives of millions of drivers,” said Shivani Govil, chief product officer, CCC. “The CCC advantage combines leading AI and vast network connections to help our customers scale their business, deliver differentiated value, and achieve better business outcomes. We’re excited to provide Sedgwick with the technology and tools to support its next phase of growth in the auto appraisal space.” More about Sedgwick’s auto solutions can be found at sedgwick. com/autoappraisals. Source: Sedgwick, CCC

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Axalta Expects $40M Less in Net Sales for Q3 Due to Supply Chain Shortages, Raw Material and Logistics Constraints Axalta Coating Systems Ltd., a leading global coatings company, provided an update to third quarter and full-year 2021 financial guidance given the ongoing supply chain issues its Mobility customers are experiencing, as well as continued raw material inflation and supply chain and logistics constraints. Axalta expects net sales for the third quarter to decrease by approximately $40 million relative to volume levels assumed in previously communicated guidance, and for adjusted EBIT to be reported between $130 million and $140 million, benefiting from positive business mix, ongoing price increases and continued cost actions. The prior guidance for Q3 adjusted EBIT (noted as ~20% of the full year target) was $138 million at the midpoint of the range. For full-year 2021, Axalta is withdrawing its previously communicated guidance due to the uncertainty related to these factors and expected financial impacts during the fourth quarter. Since Axalta provided its third

quarter and full-year 2021 guidance on July 26, net sales volumes have continued to be impacted by customer supply chain disruptions, most notably in the light vehicle end-market, where semiconductor chip and other supply shortages have continued largely unabated. Industry forecasts for light vehicle production now call for these disruptions to continue into 2022, and Axalta now anticipates global production impacts to total approximately 11 million units for the full year 2021, compared with the previous assumption of 7 million units. In addition, recent weather events in the Southeast U.S. and ongoing global raw material supply and logistics constraints have resulted in continued cost inflation and supply constraints in excess of that anticipated in previously provided guidance.

Despite the impact of Mobility customer component shortages and supply chain challenges, underlying demand in Performance Coatings end-markets remains strong. Inventory on hand in customer channels remains below normal levels, which Axalta expects will support a net sales recovery as COVID-19-related impacts and supply chain dynamics ease over time. Axalta expects net sales volumes in both Refinish and Industrial end-markets to remain consistent with previously communicated guidance. On a consolidated basis, Axalta believes strong global demand, supported by active growth initiatives, and a focus on addressing inflationary pressures with price increases, will support a continued recovery in both net sales and profit during 2022 and beyond. Source: Axalta

MASSACHUSETTS

Toby Chess Has Successful Kidney Transplant

Our well-known collision consultant Toby Chess underwent a successful kidney transplant on Oct 12 at UCLA

Ronald Regan medical center, courtesy of his brave daughter Stacy Nicole Torres, 40, who donated an organ to her father based on their compatible genetic profile. The operation required 2.5 hours of surgery for her, and 4 hours for Toby. Both are doing well and Toby no longer has to endure weekly dialysis. For more information contact https://www.kidneyfund.org/.

Pictured: Hayley Torres, granddaughter (l); Hunter Torres, grandson, (c) ; and Stacy Torres daughter and donator (r)

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The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today! autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 71

Hertz Names Interim CEO

Auto Insurers Confront Rapidly Rising Claims Costs

Hertz announced Oct. 5 it has named Mark Fields as interim CEO and Paul Stone as president and chief operations officer, as the company accelerates its commitment to lead the future of mobility and travel. The moves, effective immediately, are part of a vision for an all-new Hertz that combines the iconic company’s brand strength and global fleet management expertise with new technology and innovations charting a dynamic, new course for travel, mobility and the auto industry. Fields joined Hertz’s Board of Directors in June. He also is a senior advisor at TPG Capital and former president and CEO of Ford Motor Company, where he served for 28 years. In addition, he is lead independent director of Tanium and serves on Qualcomm’s Board of Directors. Stone, who formerly was Hertz’s CEO, will partner as the company’s president and chief operations officer. He will ensure a strong focus on operations and customer service excellence. Source: Hertz

Sharply higher costs to repair and replace vehicles will cause insurance companies’ underwriting profit margins to narrow significantly, projects S&P Global Market Intelligence’s annual US Auto Insurance Market Report. Published by S&P Global Market Intelligence’s Financial Institutions Group (FIG) Research team, the report spotlights the unprecedented effects of COVID-19 on the personal and commercial auto insurance business. The analysis finds the benefits fromlower levels of motor vehicle travel may be as fleeting as they were significant. The number of automobile crashes is rebounding toward pre-pandemic levels, and the average cost to settle claims is rising as costs for motor vehicle body work and used vehicles increase rapidly. “Auto insurers provided estimated premium relief of as much as $16.4 billion to their customers in 2020 as COVID-19 curtailed commuting and leisure travel,” said Tim Zawacki, principal analyst for FIG at S&P Global Mar-

ket Intelligence. “In 2022, some of those customers may face higher auto insurance rates as carriers respond to a return to normal driving patterns and claims costs continue to climb.”

industry underwriting profitability, will normalize in the personal and commercial auto insurance businesses in 2021 due to inflationary pressures and the year-over-year increase in the number of vehicles

Key highlights from the report include: Greater use of technology favors more stable and predictable auto insurance results over the long term. The various ways technology will benefit the industry include increased consumer and trucker acceptance of telematics and the continued deployment of advanced safety equipment across the domestic vehicle fleet. But the industry must first navigate near-term volatility related to the pandemic. Combined ratios, the key measure of property and casualty

on the road. Over time, the outlook assumes resolution of the underlying supply chain disruptions that are driving the rapid inflation. Some auto insurers will continue to pursue sizeable rate increases in response to the adverse claims trends. The report projects growth in personal auto direct premiums written of 3.1% in 2021 and 5.4% in 2022. Commercial auto premiums are projected to rise 14.2% in 2021 before slowing to 8.4% in 2022. Source: S&P Global Market Intelligence

“In 2022, some of those customers may face higher auto insurance rates as carriers respond to a return to normal driving patterns and claims costs continue to climb.” — Tim Zawacki

Retail Spending on Cars and Parts Surpasses All Other Sales Automotive is the single biggest retail segment in the U.S., accounting for 20%—more than $1.2 trillion— of retail spending in 2020, according to the new Retail Trends Report from SEMA Market Research. The report highlights U.S. retail spending and includes new findings on the retail side of the specialty-equipment market, including specialty-automotive shopping behavior and trends. Retail is a huge part of the U.S. economy, representing more than $6.2 trillion in 2020. While online sales are growing, it is a small slice of the total, growing to roughly 14% of total retail sales, up from 11% in 2019. To help businesses understand automotive aftermarket retail trends by product and retail channel, as well as consumer and shopping behavior, the SEMA report contains additional findings, including: The specialty-automotive aftermarket is ahead of the curve on online sales, with just over half of the $47.89 billion spent on specialty parts in 2020 going through online retail channels. SEMA expects the share of online retail sales will level off, then return to its historical trend

of gradual growth over the next couple years. In the longer term, retailers should keep an eye on how the vehicle population evolves. Light trucks like pickups, SUVs and CUVs are expected to represent 80% of new vehicles sold through 2028. Alternative-fuel vehicles (e.g., hybrid and electric) are a small but growing share of new vehicles sold, expected to account for 25% of new vehicle sales by 2028 and 45% by 2035. In recent years, specialty-automotive consumers have most-commonly bought parts in a “mixedmode” fashion—i.e., buying both in-person and online, with smaller portions favoring exclusively in-person or exclusively online. For many consumers, high-performance chemicals along with specialty wheels and tires represent the “gateway drugs” that can lead to more ambitious modifications to the vehicle’s appearance, performance and handling. For more data on the state of U.S retail and retail in the automotive specialty-equipment market, download the 2021 SEMA Retail Trends Report for free today at www.sema.org/research. Source: SEMA

72 NOVEMBER 2021 AUTOBODY NEWS / autobodynews.com

The Right PARTS. A PERFECT Fit. Order Genuine Mazda Parts From These Parts Specialists in Your Area.

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Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers and are supported by a nationwide network of distribution centers to help ensure non-stocked parts are delivered the next day.

autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 73

Cox Automotive Forecast: New-Vehicle Sales Stall in September September U.S. auto sales are forecast to be significantly hampered by an ongoing lack of new-vehicle inventory. According to a forecast released Sept. 27 by Cox Automotive, the pace of auto sales, or seasonally adjusted annual rate (SAAR), is expected to finish near 12.1 million, the slowest pace since May 2020, when much of the country was closed during the first wave of the COVID-19 pandemic. The September sales pace will be down from August’s 13.1 million pace and down from the September 2020 pace of 16.3 million. Sales volume is forecast by Cox Automotive to come in near a notably low 1 million units. The low volume expectations for September put the month on course to be among the worst in the past decade. Sales volume is expected to be down nearly 26% from last September and down 8.5% from last month. The sales pace in the U.S. market has fallen every month since reaching a peak of 18.3 million in April. “After a strong spring selling season, the supply situation has wors-

ened precipitously and is dragging sales down with it,” said Cox Automotive Senior Economist Charlie Chesbrough. “The monthly declines have been large—the sales pace has declined by more than a million units in each of the past five months. Available supply on dealer lots is now 58% lower than last September, down nearly 1.4 million units.” The new-vehicle supply shortage is impacting the market in many ways. Manufacturers have cut back significantly on incentives, and transaction prices have risen as a result. In addition, the lack of new-vehicle inventory is steering many dealers and consumers into the used-vehicle market, resulting in higher prices for both wholesale and retail used vehicles. Q3 2021: The Auto Industry Finds the Bottom With lower sales forecast for September, the third quarter of 2021 is forecast to finish with auto sales down 14% versus Q3 2020 and down 22% compared to the same period in 2019. Cox Automotive will officially revise its full-year forecast, with new projections scheduled to be released

Sept. 30. The underlying economic conditions in the U.S. are currently healthy enough to support higher new-vehicle sales levels. The demand is there. Inventory levels, however, are the unique problem facing the automotive market right now, with disruptions to the global supply chain challenging all automakers, severely impacting available inventory, and pushing many would-be buyers out of the market. In recent research by Cox Automotive’s Kelley Blue Book team, nearly half of would-be buyers indicated in August they will likely step back from the market, many for three months or more. Inventory conditions, however, are anticipated to improve in the coming months. “The expectation is that OEM supply issues will improve such that Q4 should have better selling SAARs than the September rate, but that doesn’t mean good selling rates,” said Chesbrough. “Vehicles are getting produced, and some OEMs have improved their supply situation. In recent months, OEMs seem to be

managing the situation better now that they’ve had time to adjust. For example, automakers are improving their ability to redirect existing chips to the most important vehicles in their portfolios. This strategy should support better sales in the fourth quarter compared to the third quarter.” September 2021 Sales Forecast Highlights New light-vehicle sales are forecast to fall to 1 million units, or down 357,000 units, nearly 26% from last year. Compared to last month, sales are expected to fall 92,000 or nearly 8%. The SAAR in September is estimated to be 12.1 million, down from last September’s early COVID recovery pace of 16.3 million and down from August’s 13.1 million supply-constrained level. No segment saw a sales increase in September with the Mid-Size Cars and Compact SUV/Crossover segments seeing the largest year-overyear decreases at -41.0% and -33.7%, respectively. Source: Cox Automotive

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NICB Releases Annual ‘Hot Wheels’ Report: America’s Top 10 Most Stolen Vehicles The National Insurance Crime Bureau (NICB) on Oct. 12 released its annual Hot Wheels report identifying the top 10 most stolen vehicles in the U.S. in 2020. For the second year in a row, the Ford full size pick-up was the model most targeted by thieves, followed by the Chevrolet full size pick-up, which supplanted the formerly second-place Honda Civic. “Auto thefts saw a dramatic increase in 2020 versus 2019 in part due to the pandemic, an economic downturn, law enforcement realignment, depleted social and schooling programs and, in still too many cases, owner complacency,” said David Glawe, president and CEO of the NICB. “For many people, a car is the second largest investment they will ever make behind a home. No matter what kind of vehicle you have, take steps to protect your investment—lock your car and take your keys.” Thefts for all models in the top 10 were up in 2020 compared to 2019, but only Ford, Chevrolet and GMC full size pick-ups and the Honda CR-V saw double digit theft

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increase percentages. In this year’s list, six of the top 10 most stolen vehicles were Japanese models. Top 10 Stolen Vehicles in 2020 (number of thefts, most common model year stolen) 1. Ford full size pick-up: 44,014; 2006 2. Chevrolet full size pick-up: 40,968; 2004 3. Honda Civic: 34,144; 2000 4. Honda Accord: 30,814; 1997 5. Toyota Camry: 16,915; 2019 6. Nissan Altima: 14,668; 2020 7. GMC full size pick-up: 13,016; 2005 8. Toyota Corolla: 12,515; 2020 9. Honda CR-V: 12,309; 2000 10. Dodge full size pickup:11,991; 2001 The annual Hot Wheels report examines vehicle theft data submitted by law enforcement to the National Crime Information Center (NCIC) and determines the vehicle make, model and model year most reported stolen in 2020. To guard against thefts of vehicles, NICB recommends drivers

follow these four layers of protection to guard against vehicle theft: Common sense—the common-sense approach to protection is the easiest and most cost-effective way to thwart would-be thieves. You should always remove your keys from the ignition, lock your doors/close your windows and park in a well-lit area. Warning device—the second layer of protection is a visible or audible device which alerts thieves that your vehicle is protected. Popular devices include audible alarms, steering column collars, steering wheel/brake pedal lock, brake locks, wheel locks, theft deterrent decals, identification markers in or on vehicle, VIN etching and micro dot marking. Immobilizing device—the third layer of protection is a device which prevents thieves from bypassing your ignition and hot-wiring the vehicle. Some electronic devices have computer chips in ignition keys. Other devices inhibit the flow of electricity or fuel to the engine until a hidden switch or button is activated. Some examples

are smart keys; fuse cut-offs; kill switches; starter, ignition and fuel pump disablers; and wireless ignition authentication. Tracking device—the final layer of protection is a tracking device which emits a signal to police or a monitoring station when the vehicle is stolen. Tracking devices are very effective in helping authorities recover stolen vehicles. Some systems employ “telematics” which combine GPS and wireless technologies to allow remote monitoring of a vehicle. If the vehicle is moved, the system will alert the owner and the vehicle can be tracked via computer. Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422) or submitting a form at www.nicb.org/how-wehelp/report-fraud Source: NICB

www.autobodynews.com

Average New-Vehicle Transaction Prices Top $45,000 for First Time New-vehicle prices hit another alltime high in September 2021, marking the sixth straight record-setting month and surpassing $45,000 for the first time, according to a new report from Kelley Blue Book. At $45,031, the average transaction price (ATP) for a new vehicle was up 12.1%—or $4,872—from one year ago in September 2020 and up 3.7%—or $1,613—from August. The all-time-high prices accompanied the fifth straight month of a slowing sales pace. Total sales last month numbered just 1,012,797, a 7.3% month-overmonth decrease and one of the lowest volumes in the past decade. On top of supply dynamics, the vehicle mix shifted in September away from lower-priced sedans, compacts and entry-level segments toward more-expensive pickups, SUVs and the luxury market. “The record-high prices in September are mostly a result of the mix of vehicles sold,” said Kayla Reynolds, analyst for Cox Automotive. “Midsize SUV sales jumped in September compared to

August and full-size pickup share moved up as well. Sales of lower-priced compact and midsize cars, which had been commanding more share during the summer, faded in September. As long as new-vehicle inventory remains tight, we believe prices will remain elevated.”

Incentive spending fell in September to another record low, dropping to 5.2% of ATP last month, a decrease from 5.6% in August and well below the 10.0% of ATP recorded in September 2020. Porsche, Land Rover, Genesis, Subaru and Toyota had among the lowest incentive spend last month,

all 3% of ATP or lower. On the other hand, Alfa Romeo, Buick, Fiat and Infiniti each had incentive levels above 10% of ATP. ATPs in September continued to be driven higher by strong luxury vehicle sales. Luxury sales accounted for 16.6% of total market sales, up from 15.1% in September 2020. Luxury share in September was among the highest in the past decade, and luxury buyers paid an average of $60,845 for a new vehicle last month. Further, many luxury brands, notably Acura, Cadillac, Genesis and Mercedes-Benz, achieved year-over-year ATP gains in excess of 20%. Cadillac, for example, saw ATPs jump up more than 32% in September, reaching $81,939. Consumers continue to pay nearly $100,000 for a new Cadillac Escalade. More than 3,500 were sold in September, a jump of more than 50% from August. Source: Kelley Blue Book

autobodynews.com / NOVEMBER 2021 AUTOBODY NEWS 75

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