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Sam Mikhail, Owner of Prestige Auto Body in Garwood, NJ, Named to AASP/NJ Hall of Fame As he has for the previous 30 years, Sam Mikhail of Prestige Auto Body
Prestige Auto Body in Garwood, NJ
attended the Alliance of Automotive Service Providers of New Jersey
(AASP/NJ)’s annual membership meeting at the Crowne Plaza Hotel of Clark in late October. Mikhail was expecting to appreciate that night’s presentations by Erica Eversman and Larry Montenez, but what Mikhail didn’t expect was the surprise announcement that he was the 28th member of AASP/NJ’s Hall of Fame. “I am honored and thrilled to receive such a prestigious honor,” Mikhail said from his shop in Garwood, NJ. “It really never crossed my mind. To be acknowledged by my
VOL. 1 ISSUE 9 DECEMBER 2011
Voices Heard Amid Revving Engines at SEMA —What Collision Repairers Said and Heard by John Yoswick
When you read a sampling of comments from among the 135,000 people in Vegas during SEMA week—you realize, no matter how you look at it—that SEMA has all the diversity of a small city. A city where, for love or profit, all the citizens share a car obsession, but a city-sized population nonetheless. About 132,000 people flooded into Las Vegas in November for the Specialty Equipment Market Association (SEMA) tradeshow, with about half of those pegged by show organ-
See Mikhail, Page 8
Keenan Auto Body’s First Responder Training Brings Together PA & DE Rescuers, Insurers and Manufacturers
Body South in West Chester, PA, industry trainer Toby Chess helped deliver the latest in vehicle extrication technology to first responders to help them save lives. The events were organized and sponsored by Keenan’s. Keenan VP and COO, Michael LeVFirst responders in need of body work pose with extricated vehicle, asseur introduced one of eight donated by State Farm, Esurance, and 1800 Charity Cars Keenan Auto Body’s First Responder trainOn Tuesday, October 25th at Keenan Auto ing program. Body East in Clifton Heights, PA, and on Wednesday, October 26th at Keenan Auto See Hey Toby! Page 14
See SEMA Heard & Said, Page 46
One of three SEMA Show Halls hosting 2,000 vehicles and 135,000 attendees
INSERT
Shop and Product SHOWCASE
California DOI Meeting Reviews Regulations Affecting Aftermarket Parts and Accountability by Ed Attanasio
In the first major policy meeting directly affecting the collision repair industry, representatives of Insurance Commissioner David Jones called a pre-notice public meeting for discussions on regulations regarding standards for reasonable repairs and the use of aftermarket parts on November 16th in San Francisco.
In preparation for the “pre-notice public discussions,” the Commissioner released a series of proposed revisions to the California Code of Regulations that was discussed and reviewed in depth at the meeting (see sidebar p. 53). Jones and his department plan to issue an official Notice of Proposed Action. The meeting was chaired by Teresa A. Campbell of the DOI’s See DOI Meeting, Page 52
Toby Chess Asks Repairers to Email Details of Parts that Don’t Fit or Appear Substandard in Materials Toby Chess wants repairers to email him the details of ill-fitting or poorquality parts—whether OEM or nonOEM, certified or non-certified. “I’m not against aftermarket parts,” Chess has repeatedly said. “My message is that all that shops want are good quality parts that don’t require margin-eating extra days or hours of returns and refitting. Where they come from is not the issue.” Email him with the details at tcspeedster@ yahoo.com.
At CIC in Las Vegas Chess (l) addressed the Alternative Parts Subcommittee by holding up a certified—but, he contended, mismatching —replacement fender and headlamp assembly. Chess says such parts are underreported.
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2 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
COLUMNISTS Chess - Keenan Auto Body’s First Responder Training Brings Together PA & DE Communities . . . . . . . . . . . . . . . . . . . . . . 14 Franklin - Use Estimator Tactics to Close the Sale . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Gesterkamp - How Lucky Do You Feel? —Durability of Back-Taped Edges. . . . . . . 36 I-CAR - How to Work With Active Grille Shutters on a 2012 Ford Focus. . . . . . . . . 44 Insurance Insider - Industry Undecided Which Show Will Prevail in NACE vs. SEMA . . . . 12 Sisk - Blue Hen Collision Express in Dover, Delaware, Makes Location Count . . . . . . . 48 Sisk - Clarkstown International Collision Credits BASF with Increased Productivity . 61 Weaver - Are We Crossing Into the ‘Outer Limits’ of Automotive Repair?. . . . . . . . . . 35 Williams - Southeast Toyota Distributors (SET) Embraces Industry Changes to Help Dealers Stay Competitive . . . . . . . . . . . . . 63 Yoswick - CIC Committee and I-CAR Respond to Association Statement on ‘Industry Standards’ . . . . . . . . . . . . . . 42 Zurada - How to Prepare, File and Win in California Small Claims Court . . . . . . . . . . 38
NATIONAL ABRA Auto Body and Glass Partners With Investment Firm for Planned National Expansion . . . . . . . . . . . . . . . . . . . . . . . . 10 Aftermarket Associations Complain to FTC About Mazda’s Claims Regarding Warranty Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Aftermarket Legislative Summit Opens Registration . . . . . . . . . . . . . . . . . . . . . . . 62 AkzoNobel Opens Nominations for 2012 ‘FIT’ Sustainability Award, Most Influential Women Awards . . . . . . . . . . . . . . . . . . . . 50 AkzoNobel’s Wanda Waterbase® Announces Successful US Launch at SEMA 2011 . . . 12 ALLDATA Celebrates 25 Years of Business . . 60 ASRW 2011: Attendance Up 18%, Positive Exhibitor Feedback Reported . . . . . . . . . . 43 Audatex Holds 9th Semi-Annual Strategic Advisory Council Meeting . . . . . . . . . . . . . 54 Automotive Service Association (ASA) Approves New Crash Parts Policy. . . . . . . 40 Barrett-Jackson President’s Custom Ford Fairlane Garners $700K . . . . . . . . . . . . . . 60 BodyShopBids.com Processes $1.5 Million in Estimates in 5 mos. . . . . . . . . . . . . . . . 60 Boyd-Gerber-True2Form Group Reports
41% Sales Increase . . . . . . . . . . . . . . . . . 62 Caliber Collision Centers Joins Collision Repair Education Foundation’s Industry Leadership Circle With $10K Donation . . . . . . . . . . . . 51 California Court Grants Joint Motion to Dismiss Perez et al. Aftermarket Antitrust Case, Allows Plaintiffs to Refile . . . . . . . . 41 California DOI Meeting Reviews Regulations Affecting Aftermarket Parts and Accountability . 1 CARSTAR Auto Body Repair Experts Adds Seven New Store Locations to the CARSTAR Nation This Summer. . . . . . . . . 45 Chief Donates Frame Rack to Operation Comfort Automotivation Program for Wounded Warriors . . . . . . . . . . . . . . . . . . 30 CIC Approves New Recommendations for Shop-Insurer Relations . . . . . . . . . . . . . . . 57 CIC Parts and Materials Committee Looks at VIN Tags and Labels . . . . . . . . . . . . . . 57 CIECA Advises on Progress of Total Loss Committee . . . . . . . . . . . . . . . . . . . . . . . . 22 Collision Repairer Wins Welder at SCRS SEMA Booth. . . . . . . . . . . . . . . . . . . . . . . 60 Collision Repair Education Foundation Awards $50K to South Carolina Technical Center for Collision Supplies. . . . . . . . . . . 45 Daimler to Produce Additional Model at the Mercedes-Benz Tuscaloosa, AL, Plant . . . 51 Delphi Goes Public at $22 a Share . . . . . . . . 47 Fix Auto Will Use Verifacts Certification Program. 63 Gerber Collision & Glass Joins Collision Repair Education Foundation’s Industry Leadership Circle With $10K Donation . . . . . . . . . . . . 29 GM Expecting Accelerated December Sales . 63 GM to Revive Former Saturn Plant in Spring Hill, TN, Will Invest $183 Million . . . . . . . . 56 GM to Sell Volt Demo Models, Doubles Inventory . . . . . . . . . . . . . . . . . . . . . . . . . 63 Honda Civic Natural Gas Wins Green Car of the Year Award at the Los Angeles Auto Show in November . . . . . . . . . . . . . . 49 Hot Rod Industry Alliance (HRIA) Sponsored Pinewood Drag Races Light Up 2011 SEMA Show. . . . . . . . . . . . . . . . . . . . . . . 20 Hughes Telematics Partners with AAA Club to Offer In-Drive Connected Services to Members . . . . . . . . . . . . . . . . . . . . . . . . . 26 Maaco Convention Celebrates 6% Increase in Same Store Sales . . . . . . . . . . . . . . . . . 54 Majority No Longer Upset about GM Bailout Says CEO. . . . . . . . . . . . . . . . . . . . . . . . . 62 NABC Gives 13 Las Vegas Families Gift of Reliable Transportation at SEMA With Recycled Rides . . . . . . . . . . . . . . . . . . . . 16 New Aluminum Body Will Slash Weight of 2013 Mercedes-Benz SL by more than 300 lbs . 55 NY's H&V Collision Centers Joins in USMC’s Toys for Tots Program . . . . . . . . . . . . . . . 23 Proposed California Regulations Discussed at DOI Meeting . . . . . . . . . . . . . . . . . . . . . 53 Pro-Spray Unveils Navigator Precision Color Selection System . . . . . . . . . . . . . . . . . . . 55 Rich Evans Updates SCRS at ‘11 SEMA Show . 54 SCRS and Collision Industry Raise over $3,200 for Operation Comfort’s Automotivation Program at the 2011 SEMA Show. . . . . . . 58 SCRS Joins with Leading Collision Repair Organizations to Release Joint Position Statement on Collision Repair Standards. . 23 SEMA Announces New Product Showcase Award Winners. . . . . . . . . . . . . . . . . . . . . 26 Sherwin-Williams Donates $12,000 in Product to Collision Repair Education Foundation 2011 Makeover Applicant Schools . . . . . . 62 Slow Fiat 500 Sales . . . . . . . . . . . . . . . . . . . 63 Social Studies Panel Held at 2011 SEMA Show Highlights Social Media Best Practices for Shops . . . . . . . . . . . . . . . . . 16 Supplier Price-fixing Litigation Plays Out in Detroit . . . . . . . . . . . . . . . . . . . . . . . . . 34 U.S. Auto Parts’ Stock Hits New Low . . . . . . 50 UAW Aiming to Organize Foreign Automakers After Success With ‘Detroit Three’ . . . . . . 10 Voices Heard Amid Revving Engines at SEMA, What the Collision Repairers Said and Heard. 1 White and Silver Most Popular Car Colors in the World . . . . . . . . . . . . . . . . . . . . . . . . . 22 Women Drivers at Greater Risk in Car Crashes, Says Study . . . . . . . . . . . . . . . . 50 Women’s Board Car Care Council Holds Reception at AAPEX 2011, Awards Industry Leaders . . . . . . . . . . . . . . . . . . . 39
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, David Brown, John Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby Chess, Mike Causey, Tom McGee, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia
Amato Agency . . . . . . . . . . . . . . . . 30 Autoland Scientech. . . . . . . . . . . . . 35 Audi Wholesale Parts Dealers . . . . 57 BASF . . . . . . . . . . . . . . . . . . . . . . . . . 9 BMW Audi of Turnersville . . . . . . . . 29 BMW Wholesale Parts Dealers . . . . 46 Cadillac of Mahwah . . . . . . . . . . . . . 4 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 28 Circle BMW . . . . . . . . . . . . . . . . . . . . 7 Classifieds. . . . . . . . . . . . . . . . . . . . 63 DuPont . . . . . . . . . . . . . . . . . . . . . . . 5 Equalizer Industries . . . . . . . . . . . . 14 Ford Wholesale Parts Dealers . . . . 41 Fred Beans Parts . . . . . . . . . . . . . . 64 Fuccillo Auto Group. . . . . . . . . . 24-25 Garmat . . . . . . . . . . . . . . . . . . . . . . 10 GM Wholesale Parts Dealers . . . . . 45 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers . 47 Jaguar Wholesale Parts Dealers. . . 62 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 59 Koeppel VW-Mazda . . . . . . . . . . . . 39 Lazare Kia . . . . . . . . . . . . . . . . . . . . 15 Lexus Wholesale Parts Dealers . . . 60 Lynnes Subaru . . . . . . . . . . . . . . . . 36 Maxon Hyundai. . . . . . . . . . . . . . . . 11 Maxon Mazda . . . . . . . . . . . . . . . . . 17
Serving New York, New Jersey, Pennsylvania, Delaware 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. ©2011 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Northeast
REGIONAL AASP-PA Holds Big E Tool and Equipment Show in October. . . . . . . . . . . . . . . . . . . . 10 Auto Injury Losses in N.Y. Metro Area Rose 70% in Last Decade . . . . . . . . . . . . . . . . . 51 CT Area Nor’easter ‘Most Significant Storm’ for Body Shops . . . . . . . . . . . . . . . . . . . . . 4 DE Regulators Recover $1.8M for Consumers, Commissioner Says . . . . . . . . . . . . . . . . . . 4 Exhibitors Start Early for AASP/NJ’s 35th NORTHEAST™ 2012 Show . . . . . . . . . . . 10 Junk Removal Company, The Junkluggers, Launches New Territory and Website to Accommodate Demand in New Jersey . . . . 6 Keenan Auto Body’s First Responder Training Brings Together PA & DE Rescuers, Insurers and Manufacturers . . . . . . . . . . . . . . . . . . . 1 MA Body Shop Owner Faces Insurance Fraud Charges . . . . . . . . . . . . . . . . . . . . . . 4 MA Right to Repair Coalition Secures 2012 Ballot Spot With Petition . . . . . . . . . . . . . . 59 N.J. Insurance Agent Indicted for Allegedly Stealing Premiums . . . . . . . . . . . . . . . . . . . 6 New York Court Finds Drivers Blinded by Sun Glare May Be Liable in Accident . . . . . . . . . 7 NY Students See Danger of Texting While Driving in Simulator . . . . . . . . . . . . . . . . . 14 PA Senate Approves Statewide Driving-WhileTexting Ban . . . . . . . . . . . . . . . . . . . . . . . . 8 Pa. Senate Approves Red-light Cameras in 19 Cities . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Pennsylvania Collision Trade Guild CCRE Meeting Rescheduled . . . . . . . . . . . . . . . . . 7 Sam Mikhail, Owner of Prestige Auto Body in Garwood, NJ, Named to AASP/NJ Hall of Fame . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Steve Horvath, D.C. Auto Dealer, Passes Away . 4 Washington Metropolitan Auto Body Association to Hold Meeting . . . . . . . . . . . . 8
Indexof Advertisers
Contents
Mazda Wholesale Parts Dealers . . . 43 Mercedes-Benz Wholesale Parts Center . . . . . . . . . . . . . . . . . . . . . 23 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 54 Metric Subaru . . . . . . . . . . . . . . . . . 16 MOPAR Wholesale Parts Dealers . . 37 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 56 Nucar Mazda. . . . . . . . . . . . . . . . . . 21 Plaza Auto Mall . . . . . . . . . . . . . . . . 13 Porsche Wholesale Parts Dealers . 52 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 RealParts.com. . . . . . . . . . . . . . . . . . 8 Safety Regulations Strategies. . . . . 51 Scion Wholesale Parts Dealers. . . . 55 Security Dodge-Chrysler-Jeep . . . . . 6 Shop-Pro Equipment . . . . . . . . . . . 31 Stadel Volvo . . . . . . . . . . . . . . . . . . 20 Star-A-Liner . . . . . . . . . . . . . . . . . . . 22 Subaru Wholesale Parts Dealers DE, NJ, PA . . . . . . . . . . . . . . . 18-19 Subaru Wholesale Parts Dealers . . 49 Thompson Organization . . . . . . . . . 27 Toyota Wholesale Parts Dealers . . . 50 VeriFacts . . . . . . . . . . . . . . . . . . . . . 26 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 58 Volvo Wholesale Parts Dealers . . . . 53
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 3
DE Regulators Recover $1.8M for Consumers, Commissioner Says
Delaware Insurance Commissioner Karen Weldin Stewart said through Department of Insurance interventions, Delawareans recovered $1,827,923 in the first nine months of 2011, according to Insurance Journal. The breakdown of the restituted funds consists of complaints ($580,303); arbitration ($592,930); and market conduct ($654,690). The Commissioner also said businesses participating in the workplace safety program saved $5,619,384 on workers’ compensation premiums. Commissioner Stewart said she credits robust investigations of consumer complaints and modernization of data retrieval. The department utilizes the State Based System (SBS) provided by the National Association of Insurance Commissioners (NAIC). Delaware insurance regulators have been using this system to document and track calls of inquiry and complaints received from Delaware policyholders for all lines of insurance. “Successfully protecting Delawareans is the art of balancing several forces that include keeping premiums minimal, a variety of carriers and products available and the insurance companies viable,” Commissioner Stewart said.
MA Body Shop Owner Faces Insurance Fraud Charges
A Peabody, MA, business owner has been indicted for allegedly collecting tens of thousands of dollars in fraudulent claims, according to Insurance Journal. Robert Giller, age 52, was indicted in connection with collecting over $28,000 in fraudulent insurance claims for work allegedly performed at his automotive and glass companies, according to Attorney General Martha Coakley. He was charged with insurance fraud (20 counts), larceny over $250 by false pretence (18 counts), and attempted larceny (2 counts). The attorney general’s office began an investigation after Giller’s alleged activities were initially investigated and referred by the insurance fraud bureau of Massachusetts. According to authorities, Giller is the owner of Advanced Automotive Concepts in Peabody. Authorities allege that from January 2006 through December 2009, Giller perpetrated a scheme in which he made false statements on invoices and other records that he submitted to insurers to collect payments for work that was not performed on motor vehicles. The insurers then reimbursed Giller’s businesses for the work as allegedly reported by Giller.
CT Area Nor’easter ‘Most Significant Storm’ for Body Shops As the laws of physics brought hulking branches and renegade tree limbs onto cars, Connecticut area auto body shops geared up for overdrive. Thanks to torrential storms body shops in the affected areas now have more work than they could have hoped for, according to Fox CT. “We’re bombarded,” said Howard Weiner, the owner of Woodland Auto body in East Hartford. “We’re putting roofs on cars, windshields on cars. People have suffered tremendous losses. Weiner echoed others in the business, saying the Oct. 29 Nor’easter was “the most significant storm I’ve ever seen in terms of damage to cars.” Weiner said there are 20 damaged vehicles on his lot, with a waiting list seeking his services. Shops are busy not only from damage caused on the night of the storm by falling trees, but also from accidents caused by traffic lights out at major intersections. And the work is leading to hiring right away. Tony Cavallaro, owner of Airport Road Auto Body in Hartford, said he’s putting out word on Craigslist to hire more technicians. “Its really overwhelming, we’re trying to figure out a plan of how to get it all done,” Cavallaro said. “In 28 years I’ve never seen anything like
this. It’s overwhelming.” Cavallaro said his shop has 60 cars on the lot, up from 20 this time of year normally. “Roofs, hoods, windshields, sunroofs and also when we had the power outages, at night, people were running into trees in the middle of the road,” he said. Insurance agents are busily dealing with the auto claims but there are no estimates of the total damage in Connecticut. November is traditionally a slow month in the auto body industry—well after the summer travel season and usually before any measurable snow. “I’ve never seen this, not in my life,” said Doug Fernandez Jr., owner of Turnpike Motors Autobody in Newington. Fernandez pointed to car after car on his sprawling lot with smashed windshields and crumpled rooftops. More than forty damaged autos came in during the three days following the storm, and another 30 were expected in the days following. Turnpike has now started Saturday hours, Fernandez said, which will stay in effect until the work gets done. Profits at the shop will be up as a result of the work. “The added business,” Fernandez said, “is a tremendous opportunity.”
4 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Steve Horvath, D.C. Auto Dealer, Passes Away Steve Horvath, 85, a onetime autobody repairman who became one of the Washington area’s biggest auto dealers, with franchises throughout Northern Virginia, died Oct. 26 at a hospital in Roanoke. He had a stroke, his son Michael Horvath said. Horvath came to the Washington area in 1949 as an auto-body repairman. In 1960, he opened an auto salvage yard, UPAR, in McLean, which he operated until 1988. In 1967, Mr. Horvath opened a Toyota dealership in Arlington County, Calvert Toyota, and soon expanded. His auto businesses in Virginia came to include Tysons Toyota, Fairfax Toyota, Charlottesville Toyota, Winchester Toyota-Mercedes-Benz, Fairfax Hyundai and Manassas Dodge, and he had dealerships in Georgia and North Carolina. Because of overspending on expansion during a weak economy, Horvath’s business empire collapsed in 1989. In a well-publicized bankruptcy, he listed $15 million in liabilities and never regained his prominence in business. He lived in retirement in Great Falls before moving to Staunton, VA, in 2006 and later to Roanoke.
Steve Paul Horvath was born in Ralphton, PA. He served in the Navy during World War II as an aircraft repairman. He belonged to many professional associations and in 1985 was elected chairman of the American International Auto Dealers Association. He was a founder of the Washington Metropolitan Auto Body Association and a president of the Virginia Auto and Truck Salvage Dealers Association. Mr. Horvath was also chairman of the board of the Telecommunication Exchange for the Deaf, a Northern Virginia organization. His first marriage, to Mary Petro Horvath, ended in divorce. His second wife, Dorothy Dorlini Horvath, died in 2000 after 23 years of marriage. Survivors include four children from his first marriage, Steven Horvath and Michael Horvath, both of Sterling, Larry Horvath of Vienna and Joanne Brandes of Ashburn; a son from his second marriage, John Dorlini of Roanoke; and four grandchildren.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 5
N.J. Insurance Agent Indicted for Allegedly Stealing Premiums A Camden County, New Jersey, insurance agent was indicted for allegedly stealing more than $172,000 from insurance purchasers and for allegedly failing to remit insurance premiums worth over $3,200, according to reports made by Insurance Journal. The indictment was announced on Tuesday, Oct. 18, by New Jersey Attorney General Paula Dow and Acting Insurance Fraud Prosecutor Ronald Chillemi. According to the indictment, Reina Morales-Peck, 40, of Cherry Hill, is a licensed insurance producer. She was charged with second-degree theft by deception, second-degree misconduct by a corporate official, and third-degree theft by failure to make required disposition of property received. The state grand jury indictment alleges that between August 2005, and February 2009, Morales-Peck, the owner of New Jersey Insurance Specialists (located in Magnolia, Camden County) fraudulently obtained $172,859 from various insurance purchasers. She allegedly created a false impression to purchasers that she was entitled to charge insurance-related fees when, in fact, she knew she was not en-
titled to charge and receive those fees. The indictment also alleges that Morales-Peck collected $3,217 in insurance premiums from 11 individuals and kept the premium money for her own use instead of remitting it to the insurance companies. Morales-Peck is alleged to have used her position as an officer and owner of her agency for the furtherance or promotion of the thefts. The defendant is presumed innocent until proven guilty. Second-degree crimes carry a maximum sentence of 10 years in state prison and a criminal fine of $150,000, while third-degree crimes carry a maximum sentence of five years in state prison and a criminal fine of $15,000.
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6 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Junk Removal Company, The Junkluggers, Launches New Territory and Website to Accommodate Demand in New Jersey On October 20, the Junkluggers, the country’s greenest junk removal company, launched its New Jersey junk removal service and revamped website, http://www.Junkluggers.com. The site design introduces visitors to a more intuitive navigation system and a richer visual experience overall. The Junkluggers most current news and press information is immediately visible on the landing page with visibility to its social media activities. Visitors can also take a look to see the many charitable partners The Junkluggers works with. The Junkluggers handles everything from basement cleanouts to construction materials to furniture removal and donation, always maintaining an organized approach to keeping the environment and your space clean and serene. In just 7 years, CEO Josh “Shuki” Cohen has led the Junkluggers to become one of the most reliable, eco-friendly businesses in the tri-state area, handling New York junk removal in all of New York Cities 5 boroughs as well as Connecticut, Westchester and Long Island.
“NJ junk removal has been a top priority for The Junkluggers for some time,” said Cohen. Gladly, the growing company now has a website to match, which includes online booking, a simple estimator tool, pricing by the truckload guide which itemizes junk types and real customer reviews. The addition of adding its awards and ratings like the BBB, Customer Trusted and Angie’s List has also helped in letting customers know of the company’s commitment to great customer service. The Junkluggers are excited about the launch of its new website, which will make the company even more customer friendly while simultaneously promoting a healthy environment, thereby furthering its mission to keep our planet and communities sparkling and vibrant. The Junkluggers are leading the pack in eco-friendly practices in the junk removal and hauling sectors, and the larger business sector beyond. For more information please visit www.junkluggers.com.
New York Court Finds Drivers Blinded by Sun Glare May Be Liable in Accident New York’s highest court has ruled that a motorist from Syracuse who struck and killed a pedestrian while being distracted by sun glare cannot invoke “emergency doctrine”, according to Insurance Journal. An attentive driver would have anticipated occasional sun glares considering the time of the accident (4:05 pm on a February day), according to the decision by New York State Court of Appeals on Oct. 13. The high court reversed the lower courts’ ruling. The amended complaint was reinstated and remitted to New York Supreme Court for further proceedings. The court documents state that the common-law emergency doctrine “recognizes that when an actor is faced with a sudden and unexpected circumstance which leaves little or no time for thought, deliberation or consideration, or causes the actor to be reasonably so disturbed that the actor must make a speedy decision without weighing alternative courses of conduct, the actor may not be negligent if the actions taken are reasonable and prudent in the emergency context,
provided the actor has not created the emergency.” The fatal accident took place on February 29, 2000, near MONY Plaza, a large office complex in Syracuse. There is a substantial amount of pedestrian traffic around the area. On that day, Derek Klink, the driver, struck Irene Lifson while she was crossing the street near the complex, causing her death. Plaintiff commenced legal action against Klink and the city of Syracuse, alleging negligence and failure to study/plan for pedestrian traffic. The ensuing trial was limited to the issue of liability. Klink claimed that the accident occurred while he was temporarily blinded by sun glare, according to court documents. Klink testified that he stopped at the stop sign to make a left turn on a street but that his view of oncoming traffic was partially obstructed by parked cars in the lefthand lane of the street. He had to “creep up” in order to see the approaching vehicles. He noticed that there were pedes-
trians crossing the street to his left, but he also asserted that he had looked in that direction and “cleared the road” before making the turn. He testified that he had been looking to his right, toward the oncoming traffic when he started turning. He maintained that, when he looked back to his left, mid-turn, he was blinded by the sun, “all of a sudden.” He reacted by looking down and to his right. When he looked up, the first object he saw was Lifson. Although he applied the brakes, he was unable to avoid hitting her, having seen her only a fraction of a second prior to impact. The Court of Appeals stated that the driver was about to turn to the west at a time of day that the sun would be setting. “This is not to say that sun glare can never generate an emergency situation but, under the circumstances presented, there is no reasonable view of the evidence under which sun glare constitutes a qualifying emergency,” the court stated.
Pennsylvania Collision Trade Guild CCRE Meeting Rescheduled
The Pennsylvania Collision Trade Guild postponed their first collision industry seminar to March 30 and 31 of 2012, the event was originally supposed to take place in October of 2011. The Coalition for Collision Repair Excellence (CCRE) will be held at the Hilton Airport Hotel in Philadelphia. The CCRE will focus on the legal aspects of running a collision business. Speakers will include attorneys Erica Eversman and John Parese and they will explain the proper use of authorization to repair and repair contracts, blueprinting and damage analysis, eliminating supplements, job costing profit including profit on paint and materials, final billing and collections, and assignment of proceeds. Email the CCRE office at office@theccre.com for more information or visit www.theccre.com or www.pctg.org. The cost of the event is $495.99 per person. After Sept 15 the cost is $595.99. Cost includes breakfast and lunch both days. For accomodations please contact the Hilton at 215-365-4150 ext. 33.
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Pa. Senate Approves Red-light Cameras in 19 Cities
A bill that would authorize 19 of Pennsylvania’s most-populated cities to install red-light cameras in an effort to improve traffic safety won approval from the state Senate on October 27, according to Claims Journal. Senators voted 35-14 to send the bill to the state House of Representatives. The sponsor, Senate Majority Leader Dominic Pileggi, RDelaware, cited an Insurance Institute for Highway Safety report that blamed red-light running for killing an estimated 676 people in 2009 and injuring another 113,000 across the United States. “My legislation will make Pennsylvania roads safer, and it will save lives,” Pileggi said. The cameras are already used in Philadelphia to nab red-light runners and traffic law violators.
Under the bill, Pittsburgh, Scranton, and 17 third-class cities with a minimum population of 18,000, including Erie, Allentown and Reading, could use the cameras if the state Transportation Department approves the city’s plan. Cities as small as New Castle, McKeesport and Johnstown, each of which has 20,000 to 25,000 residents, also would qualify. The maximum fine of $100 would be earmarked for transportation improvements. Half of the money would go to the city where the violation occurred, although total collections in a city would be limited to 5 percent of its annual budget. The rest of the money would go to other areas of the state. The Senate Transportation Committee last year approved a similar bill, but the chamber never voted on it.
Washington Metropolitan Auto Body Association to Hold Meeting
The Washington Metropolitan Auto Body Association (WMABA) will hold their Annual Member Dinner meeting and Board Election on December 1st at 7:00pm. The night’s speaker will be attorney Erica Eversman. Eversman will speak about issues relating to insurer relationships, shop liabilities and business compliance. In addition,she will be discussing her new company venture— Collision Billing Services. Formed by a perceived need, this company will revolutionize repair data information and its availability to the industry. Continued from Front Page
Mikhail
peers this way is very, very gratifying.” Mikhail’s was one of several awards presented during the event. Flemington Auto Body (Flemington, NJ) was named the Stan Wilson / New Jersey Automotive Body Shop of the Year; Edison Generator Tire and Auto Center (Dayton, NJ) was named New Jersey Automotive Mechanical Shop of the Year and Deivy Planco was awarded the Russ Robson Scholarship, which is given each year to an automotive repair student in memory of the late AASP/NJ former president. But the surprise Hall Of Fame announcement was clearly the highlight of the night. “Sammy has been an incredibly dedicated member to the association for what seems like forever,” AASP/NJ President Jeff
Also at the meeting is the annual association report, as well as the annual election of the Board of Directors. There will be a $30.00 per person fee for all WMABA members which includes lunch. ($50.00 for Non-Members). Paypal / Visa, Mastercard, Amex; Cash; Check will be accepted. The meeting will be held at Dave & Buster’s, 11301 Rockville Pike, Ste.300, Kensington, MD 20895. For more information please visit www.wmaba.com.
McDowell says with a laugh. “Seriously, Sam is the kind of guy who is there anytime you need him. I don’t think he’s missed a meeting in decades. Sam’s a fighter. You might not agree with everything he fights for, but he you can’t deny that he has been and always be an asset to our association and our industry. We’re proud to have him in the Hall of Fame. It’s overdue.” For more information onAASP/NJ, please visit www.aaspnj.org.
PA Senate Approves Statewide Driving-While-Texting Ban
A bill to ban texting while driving, amended in October to make it a primary offense, passed the House on November 7 and won concurrence in the Senate November 8 by a vote of 45-5. It now awaits the governor’s signature, according to The Harrisburg Times Herald. Gov. Corbett is expected to sign the bill, pending a final review, Gary Miller, a spokesman for the governor’s office, said. Pennsylvania joins 34 states and the District of Columbia that have banned texting while driving. Of those, 31 enforce the ban as a primary offense, meaning police can pull over a motorist observed texting while driving. Senate Bill 314 bans reading, writing or sending a text message while driving. A provision to ban hand-held cell phone use for calls was previously stripped from the bill.
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The bill initially called for texting to be a secondary offense—a motorist could only be ticketed following an accident or if stopped for a primary offense—but an amendment making texting a primary offense, sponsored by state Rep. Josh Shapiro, D-153, passed in the House Oct. 25 by a vote of 128-69. The full bill with the amendment attached passed the next day in the House 16429. The final House vote on the bill November 7 was a near-unanimous 188-7. Shapiro, who has sponsored several bills to ban the use of hand-held cell phones, termed S.B. 314 “a big win for safety in Pennsylvania.” “After seven years of fighting we finally passed a ban on texting while driving in Pennsylvania and made it a primary offense,” Shapiro said. “This is the strongest bill possible.”
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ABRA Auto Body and Glass Partners With Investment Firm for Planned National Expansion Palladium Equity Partners, LLC, a private investment firm, announced November 7 that it has partnered with management to recapitalize ABRA Auto Body & Glass , a leading national provider of vehicle damage repair services. Terms of the transaction were not disclosed. Founded in 1984, ABRA is a recognized leader in collision repair, paintless dent removal, and auto glass repair and replacement with 75 company-owned vehicle damage repair centers and 38 franchised centers in 12 states. ABRA distinguishes itself by providing a solution that seeks to enable its insurance company partners to substantially improve customer satisfaction and drive policyholder retention, while simultaneously reducing repair costs and realizing substantial efficiencies in
the claims management process. ABRA’s commitment to operational excellence allows it to consistently offer high quality service to its customers and insurance partners. Rollie Benjamin, ABRA’s founder, will remain Chairman of the Company and Tim Adelmann and Scott Krohn will continue in their senior executive roles. Duane Rouse, ABRA’s President and Chief Financial Officer, was appointed Chief Executive Officer in connection with the transaction. Rouse said, “We are extremely pleased to be working with Palladium, a firm with a strong track record as an investor and many years of experience helping companies grow. With this partnership in place, we are well-positioned to accelerate our national expan-
sion plan, and to further our mission of becoming the leading auto body and glass company in America.” Luis Zaldivar, a Managing Director at Palladium, said “ABRA is well-known throughout the industry as a premier provider of auto body, auto glass and paintless dent repair services. But it is ABRA’s innovative service model and deep insurance industry relationships that truly set it apart. The Company has a terrific management team that has guided its organic growth over the course of nearly three decades—including through the establishment of a highly successful franchise program. Palladium looks forward to partnering with ABRA on a range of new market opportunities in the months and years ahead.”
The United Auto Workers has shifted its focus to organizing foreign automakers and is training members for action at the regional level, now that contracts have been secured with Detroit’s Big Three, according to the Detroit News. UAW President Bob King has
made it clear that his agenda includes organizing Asian and European automakers with plants in the United States. He used an event November 21 celebrating the reopening of General Motors Co.’s Spring Hill, TN, plant, to tout the merits of collective bargaining in adding jobs.
UAW Vice President Joe Ashton, also in Spring Hill, said the union is moving forward with previously announced plans to organize workers at transplant factories. The UAW has yet to pick a tar-
UAW Aiming to Organize Foreign Automakers After Success With ‘Detroit Three’
AASP-PA Holds Big E Tool and Equipment Show in October
nology Standards, Automotive Aftermarket Industry Association. He spoke from 8:00 AM to 9:15 AM in the Waterford Ballroom on the topic of ‘Who Will Service the Vehicles of Tomorrrow?’
The Association of Automotive Service Professionals of Pennsylvania (AASP-PA) held their annual Big E Trade Show on Friday, Oct 14 from 4:30 pm to 10:00 pm and Saturday, Oct 15 from 9:30 am to 3:30 pm at the Valley Forge Convention Center in King of Prussia. The Breakfast Keynote Speaker was Scott Luckett, MAAP, Vice President, Tech-
Seminars and Demostrations also went on during the tradeshow both days. For more information please visit www.aasp-pa.org.
10 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
See UAW, Page 58
Exhibitors Start Early for AASP/NJ’s 35th NORTHEAST™ 2012 Show
ALLDATA, Future Cure, Hunter Engineering, Metropolitan Car-O-Liner, Mitchell, SAIMA/Accudraft and Subaru are among the exhibitors already signed up for the Alliance of Automotive Service Providers of New Jersey (AASP/NJ)’s 35th annual NORTHEAST™ Automotive Services Show at the Meadowlands. NORTHEAST™ 2012 will take place March 9-11 at the Meadowlands Expedition Center in Secaucus, NJ. “We’re pleasantly surprised with the early sign-ups,” says AASP/NJ President Jeff McDowell. Early exhibitors include Aeromotive, Audatex, Flemington Car & Truck Country, Hella, Integrity Security Systems, LKQ, Procut USA, Steck Manufacturing, Suburban Manufacturing Inc. / Tsunami Industries, Team PRP and the Radiator Store. “Our show is kind of like the working man’s show,” McDowell said. For more information on the show and AASP/NJ, please visit www.aaspnjnortheast.com.
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Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Industry Undecided Which Show Will Prevail in NACE vs. SEMA with The Insurance Insider
You can ring the bell as Round 2 of the “Battle of the Century” has ended. Yes, “NACE vs. SEMA, Part 2” was very different from the prior year. The battleground changed from a Las Vegas faceoff to an Orlando vs. Las Vegas showdown. This year’s winner is in the eye of the beholder. NACE (the International Autobody Congress and Exposition) and its sponsoring organization, the Automotive Service Association, have staked their claim as the undisputed “Collision Industry Trade Show Champion.” Meanwhile, the Society of Collision Repair Specialists has teamed up with SEMA and announced their contention to be the new “Heavyweight Champion.” So who was this year’s winner? I personally think it was a draw—with one exception: There was a clear loser. I’ll give you a hint. It’s an eight letter word that begins with an “I” and ends with a “Y.” The collision industry is divided and stuck supporting two trade shows. The NACE and SEMA divide is all about “I” (rather than “we”) and the industry is holding the bag and left asking “Y?” So how and why is the industry losing in a fight it never asked for? I was one of a small percentage of people who had the good fortune and fortitude to attend both shows. I experienced both the aging NACE and the upstart SEMA show. I was forced to dedicate two-plus weeks to accomplish what normally would take me one week. I successfully met with all the individuals and companies that requested my presence and knowledge. If you took a poll tomorrow, I’m convinced the industry-at-large would
vote for one trade show. And if you asked if there was a need for any trade show, those results may even be more astounding. Have trade shows gone the way of the dinosaur? Has SEMA, by virtue of adding a collision repair section, redefined the scope of trade shows to a circus-like atmosphere devoid only of the bearded lady and elephant man?
In comparison, NACE had less eye-appeal but maybe a lot more buyappeal. NACE was significantly smaller but the content, direction, and focus was clearly different. The discussion around quantity vs. quality is certainly one aspect that shouldn’t be overlooked. More attendees doesn’t automatically translate into a more successful show. That’s why I say
I’m not sure if I can answer those questions. I will tell you that if you have never attended SEMA, it is definitely worth it if only for the entertainment value. The collision industry section of SEMA is really of no consequence when you constantly find your head spinning around to catch a glimpse of eye-popping and jaw-dropping vehicles, booth celebrities and spokesmodels. At times, as you walk around on the show floor, you may wonder which Vegas trade show you are actually attending.
beauty is in the eye of the beholder. It all depends on your purpose for attending: entertainment and personal vacation, business and purchasing, fact-finding—or simply just to get away from your shop or spouse. Of the few thousand avid readers of my column, several recently responded to last month’s article about NACE. I want to thank them for taking the time to share their thoughts, and I’d like to address several of their points. I agree with some that NACE, for many years, was a beacon for the col-
lision industry. There was a period of time when the industry was changing so quickly that NACE was an absolute can’t-miss event. It was a time prior to the Internet, a time when the industry was growing at an accelerated pace and becoming more technologicallyadvanced as well as professional in all aspects of the business. NACE was needed, and as a result, it thrived. As years passed, attendance slowly dwindled and the industry called for change. NACE organizers didn’t respond or act as quickly as many had hoped. As a result, it opened the door for competition. In a changing market, you need to be able to adapt or you lose the sale. NACE lost the sale, and Round 1 of the “Battle of Century” last year went to SEMA. Round 2 this year, by my card, was a draw. For all my criticisms of NACE, SEMA is not yet the clearly better show for the industry. And unlike “Rocky 3,” “Jaws 3” or “Fried Green Tomatoes, Part 3,” (in which Jessica Tandy is reincarnated), I’m actually looking forward to “NACE vs. SEMA, Part 3.” SEMA’s size has sustained it, but NACE’s multiple locations will support it as well. Eventually, this fight is going to end and there is going to be a winner. The industry will eventually prevail and have an undisputed champion of an annual collision trade show.
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S. Got a comment or question you’d like him to address in a future column? Email him at Auto.Insurance.Insider@gmail.com.
AkzoNobel’s Wanda Waterbase® Announces Successful US Launch at SEMA 2011 Car enthusiasts and collision repair professionals joined AkzoNobel’s Wanda brand in celebrating the recent US launch of the new Wanda Waterbase® basecoat system during the 2011 SEMA show November 14, at the Las Vegas Convention Center. Show attendees learned about the new Wanda Waterbase products at the Wanda Refinish booth located in the Racing & Performance area in-
12 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
side the Central Hall. The exhibit featured two Lingenfelter Performance Engineering Camaro concept cars both painted in Wanda with special finishes and styling effects. A live Wanda brand representative was also be on hand to greet visitors and provide valuable information on how the
Ken Lingenfelter, owner of Lingenfelter Performance Engineering, with live Wanda brand representative
Wanda brand’s simplicity, color and value proposition is shifting performance and compliance into high gear. “AkzoNobel designed Wanda Waterbase around the brand proposition to meet the needs of the industry’s value segment,” said Mark Rapson, AkzoNobel’s Business Manager of Trade Brands, North America. “We’ve simplified the comSee Wanda, Page 39
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Hey Toby!
Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
Keenan Auto Body’s First Responder Training Brings Together PA & DE Communities with Toby Chess
I’ve long supported and done my best to contribute to first responder training. These brave and dedicated public servants have a lot to deal with and a lot to prepare for. Whether it’s a building fire, hazmat situation, medical emergency, or vehicle extrication, they can’t prepare without the training, tools, and equipment necessary to get the job done. I was happy to be able to contribute some skills to training conducted recently in Pennsylvania, which drew first responders from two states. With over 5.8 million car crashes per year it’s imperative that first responders are equipped with the knowledge to extract vehicle occupants in the quickest most efficient manner, especially in crashes when the difference between life and death is on the line. Collision repairers have the vehicle expertise that first responders need and can contribute to the cause.
Recently, however, it’s become evident that vehicle responders need more experience with modern vehicles, which have otherwise unfamiliar and even dangerous features to contend with. “First responders such as firemen require the most current vehicle information to be effective and save lives at
the scene of an accident,” said Craig Camacho, Keenan’s Marketing Director.
“This type of training is more important than ever given the rapid onslaught of advancements in vehicle design such as high-strength steels, advanced restraint systems, and multiple air bags. The growing popularity of high-voltage hybrid vehicles also makes a class like this a necessity.” State Farm Insurance Co, Esurance and 1800 Charity Cars donated eight late model vehicles for first responders to practice on. This is a real strength of the program since most fire departments don’t have access to such modern vehicles. “Local fire departments have indicated this kind of knowledge is much needed and we are honored to be able to deliver critical information to those who need it most,” added Camacho. I instructed the class as I’ve done in many previous hands-on demonstrations. We covered air bag deployment and other dangers first responders encounter every day. M.E.S., a distributor of Hurst res-
NY Students See Danger of Texting While Driving in Simulator Students in suburban New York got a chance to learn the perils of distracted driving without having to worry about an accident or a traffic ticket, according to Insurance Journal. A texting-while-driving simulator that resembles an old-fashioned video game was demonstrated at nine Westchester County high schools November 14 through 18, District Attorney Janet DiFiore said. The simulator features the voice of an annoying passenger who doesn’t wear her seat belt, asks the driver to speed up and then has him make a
phone call and send a text message to her brother. The driver tries to maneuver local streets and then highways while using a real cellphone or the one on the video display. During a demonstration November 14, test subjects including Scarsdale police Chief John Brogan quickly got into fake accidents while trying to multitask. The simulator is part of a plan to teach and enforce a state law that went into effect in July. The new law allows police to stop and ticket drivers they see texting while driving.
14 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
cue tools, including the Jaws of Life line of tools, provided all of the equipment needed for the hands-on cutting. Enterprise Rent-A-Car sponsored the catered dinner for Clifton Heights and Hertz Local Edition sponsored the dinner for West Chester. Both dinners were excellent and well appreciated by the hungry first responders. Keenan Auto body, Inc. owns and operates nine state of the art collision repair centers throughout Philadelphia, Delaware, Montgomery counties, and New Castle County in Middletown, Delaware and is currently opening their two newest facilities in Avondale and Kennett Square in Chester County, PA.
For additional information visit: www.KeenanAutoBody.com and www.jawsoflife.com. This latter website provides an introduction to the Crash Recovery System, which is a software application through which important updated information with regard to safety systems in almost all current vehicle models can be accessed directly. Specially developed for rescue workers, it provides an invaluable
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Social Studies Panel Held at 2011 SEMA Show Highlights Social Media Best Practices for Shops One of the educational panels held during the 2011 SEMA Show at the Las Vegas Convention Center concentrated on how social media can best be used by collision repairers. The panel was held on Thursday, November 3 at 10 a.m. and brought together leading social media experts in the collision repair industry. Collision Hub’s Kristen Felder, Jonathan Barrick, Marketing Manager for Global Finishing Solutions, and Frank Terlep, owner of Summit Software Solutions, came together on this panel to answer collision repairers’ questions about how social media can help their businesses. Jordan Hendler, executive director of the Washington (D.C.) Metropolitan Auto Body Association, moderated the panel. Hendler started off the session by asking panelists how collision repairers know that their customers want social media from them. A collision repairer’s customers are already on various forms of social media, says Felder, “If you’re not already there, hurry up!” Hendler continued by asking the panel how collision repairers can start
being active in social media. Terlep stated that repairers should start with the ‘big 4’in social media marketing; Facebook, Youtube, Twitter and LinkedIn. “Have a plan,” said Terlep, “Sit with other shops and put a plan together.” Felder said a good, low-cost way to start a social media repoire could be to look at local colleges for students
and can’t do on the page should they decide to allow them to post. Barrick suggested that repairers spend some time researching and watching other shops’ pages to see what types of posts garner the most attention and responses from followers. Hendler then went on to ask the panelists what some ‘dos’ and ‘don’ts’ were for shops just starting out in social media. “People will read your posts for three reasons; education, entertainment and exclusive offers,” said Barrick. He encouraged shops to stay away from posting just random facts. “They will follow you for what they can’t get Frank Terlep, Kristen Felder, Jonathan Barrick and Jordan Hendler discuss social media trends and anywhere else,” he said. tips at the 2011 SEMA show Felder warned shops to be who need to create an online portfolio wary of what they post online, “don’t for a class project. This way the student post the politics of the industry.” can set-up the social media at no cost She encouraged shops to seem to the business. Felder also warned open and approachable online and to shops to set up a policy when it comes post helpful things for customers, like to who will post on the company page. tips to get them winter-ready in the ap“Are you going to let employees propriate climates and texting and post?” asked Fedler, she encouraged driving news reports. shops to define what employees can Hendler then asked the panel
NABC Gives 13 Las Vegas Families Gift of Reliable Transportation at SEMA With Recycled Rides The National Auto Body Council (NABC) awarded refurbished vehicles to 13 Las Vegas families this year on Thursday, November 3, at 2:30 p.m. outside of the Las Vegas Convention Center in conjunction with the SEMA Show. Family Promise, the charity who assisted these families, also received a vehicle at this event to further help them assist hundreds of families in crisis in the Las Vegas area. Each of the families received the gift of a refurbished vehicle from NABC members through the organization’s Recycled Rides® program, a national initiative through which NABC members refurbish donated vehicles and gift them to families in need and organizations dedicated to assisting others. Through their generous support, the following NABC Diamond Members donated vehicles: State Farm, Allstate and EnterpriseRent-A-Car. Additional vehicles were donated by GEICO, American Family, AAA of Northern California, Nevada and Utah Insurance Exchange. NABC members Sterling Collision
Centers, 911 Collision, Caliber Collision Centers, Gerber Collision & Glass, Collision Authority, Collision Masters CARSTAR East and two area Vo-tech schools, Southeast Career Technical Academy and the College of Southern Nevada, repaired the vehicles. Each recipient family is a graduate of Family Promise of Las Vegas, a non-profit interfaith network that provides support to families in crisis. The NABC has made it a point to give away Recycled Rides vehicles at Las Vegas industry events each year of the program’s existence. “We’re happy to be back in Las Vegas to give these families the reliable transportation that can help provide them a fresh start,” states Recycled Rides Co-Chairman Michael Quinn, of 911 Collision Centers, a Caliber Company. “I am grateful to be part of a project that clearly illustrates the giving nature of NABC members and the collision repair industry at large.” Please visit www.autobodycouncil.org for more information.
16 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
how collision repairers can fit yet another task in their already busy days. Felder said some shops may be tempted to hand off their social media to a consulting company. She said this can be a good idea if the third party gives the shop options for how and what will be posted, tailored to the size and scope of their business, otherwise these posts can come off generic and uninteresting to customers. Barrick agreed with Felder, he said a third party can be a good way for a shop to initially set up their profiles, but they should not end up being the permanent voice of the company. He encouraged shops to have multiple people in their businesses participate in the profiles so they don’t turn into a one-man show. Lastly, Barrick and Hendler said be wary of getting caught up with hoarding “page likes.” Barrick said that although a page may only have 3,000 fans, they may generate 5,000 page views per month. So, although they may not have fans subscribing to their posts, people are still using the page to get information about the business.
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Trenton (609) 883-6447
Wexford (412) 364-2800
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Subaru of Cherry Hill Cherry Hill (888) 505-1184
Coleman Subaru Mon.-Fri. 8-5; Sat. 8-12 parts@colemancars.com
Miller Subaru Lumberton (609) 261-7844
Mon.-Fri. 8-5; Sat. 8-12 dseward@millertransgroup.com
York (888) 258-5512
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Day West Liberty Subaru Pittsburgh (412) 343-2142
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Harrisburg (717) 213-3446
Moosic (800) 982-4054
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New Motors Subaru
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Glanzmann Subaru Jenkintown (800) 440-0130
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Kerven Subaru Butler (800) KERVEN-9
Erie (877) 732-2478
Rafferty Subaru Newton Square (610) 353-6906
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Steve Moyer Subaru Leesport (800) 995-2627
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East Petersburg (800) 215-5644 Ext. 2002
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W&L Subaru Mon.-Fri. 8-4:30 wlparts@ptd.net
Welsh Subaru Limerick (610) 489-4198
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 19
Aftermarket Associations Complain to FTC About Mazda’s Claims Regarding Warranty Policy
The Automotive Aftermarket Industry Association (AAIA) is again calling on the Federal Trade Commission (FTC) to take action against a carmaker—this time Mazda—for its policy statements relating to the use of aftermarket parts for vehicle repairs. Similar complaints were made by AAIA against Honda in 2010 when the FTC sided with the carmaker. In a letter to the FTC’s Associate Director for Marketing Practices, Lois Greisman, the AAIA—along with the Automotive Oil Change Association (AOCA), the Service Station Dealers of America, and the Tire Industry Association—argue that Mazda’s claim in a recent brochure that “aftermarket parts are generally made to a lower standard” is unsubstantiated. The groups say this is misleading consumers and are calling on the FTC to require Mazda to either to provide substantiation of their claim or issue a retraction. The letter states that “The wording in the Mazda release totally contradicts FTC’s alert by making the assumption that the aftermarket part would cause the warranty not to be honored rather than the fact that the use of the aftermarket part is permissible unless proven otherwise. Therefore, AAIA and AOCA further request that the Commission take immediate action to require Mazda to withdraw the release and issue a correction: that use of non-Mazda parts are permissible, and that it would be Mazda’s burden of proof to prove a non-Mazda part caused any alleged damage before denying warranty coverage. The AAIA claims that statements made by Mazda are misleading consumers about the use of aftermarket parts and those statements are a violation of the Magnuson-Moss Warranty Act, a law that says companies may not condition warranty coverage on the use of only original equipment parts. The letter also takes issue with a statement by Mazda that “Only Genuine Mazda Parts purchased from an authorized Mazda dealer are specifically covered by the Mazda warranty. The original warranty could become invalid if aftermarket parts contribute to the damage of original parts.” The aftermarket groups contend that the wording of this paragraph, combined
with the statements regarding the quality of aftermarket parts, is intended to misinform consumers about their vehicle warranties and are in violation of the Magnuson-Moss Warranty Act.
Previous Complaint Against Honda Last year, the FTC received a similiar complaint regarding a release from Honda and Acura. The AAIA complaint stemmed from a Honda statement that said the carmaker “will not be responsible for any subsequent repair costs associated with vehicle or part failures caused by the use of parts other than genuine Honda/Acura.” However, in a December 2010 response to the AAIA, the FTC disagreed with AAIA’s claims. The FTC explained in its response to AAIA that while the MagnusonMoss Warranty Act does prohibit warrantors from conditioning warranty coverage on the use of only authorized parts, warrantors are permitted to exclude liability for damage or defects caused by the use of unauthorized parts. The commission explained that a warrantor may expressly exclude liability for defects or damage caused by ‘unauthorized’ articles or service; and may deny liability where the warrantor can demonstrate that the defect or damage was caused by those unauthorized parts. The FTC concluded, “While we appreciate your view to the contrary, we interpret the American Honda position statements to state that American Honda will not deny warranty coverage for the mere use of an unauthorized part, but rather for damage or defects caused by those parts,” and that, “American Honda does not appear to be in violation of the Act’s tying prohibition.” In response to the FTC’s interpretation, the AAIA said in its Mazda complaint that, “it appears that the absence of action as we requested by the Commission on the Honda release is leading more and more car companies to not only engage in similar misleading tactics regarding the use of nonoriginal equipment parts by consumers, but also to ratchet up the unlawful rhetoric. Immediate action is needed to both protect consumers from Mazda in the short term, and to stop other automakers from jumping on this anti-consumer bandwagon.”
Hot Rod Industry Alliance (HRIA) Sponsored Pinewood Drag Races Light Up 2011 SEMA Show The Hot Rod Industry Alliance (HRIA) sponsored Pinewood Derby Races took place during the 2011 SEMA show; the 13 custom
Derek White of Street Vizions won first-place in the pinewood derby for the second year in a row with this model vehicle
pinewood cars were also up for auction on eBay following the show to benefit the children’s charities Childhelp and Victory Junction Camp. Participating pinewood builders included Art Morrison, Fatman Fabrications, Fesler Concepts, Hollywood Hot Rods, Hopperstad Customs, Johnny’s Auto Trim, Kaucher Kustoms, No Joke Upholstery, Rich
Evans Designs, Santini Paint and Body, Spanky’s Hot Rods, Spitzer Concepts and Street Vizions. Derek White of Street Vizions successfully defended his first-place title this year, his second consecutive win. Rich Evans Designs was the runner up again this year as well. Each contestant was given four months to complete the car; no design limitations were given except that the car had to fit the track’s dimensions and no propulsions systems were allowed.
Rich Evans Designs took second place for the second year in a row with this model car
The eBay auction took place November 1 through 10, search HRIA Pinewood on eBay to find the bidding pages.
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Mazda Wholesale Parts Distributors “Professionals Servicing Professionals” www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 21
White and Silver Most Popular Car Colors in the World White/white pearl has emerged as the fastest growing color to tie with silver as the world’s leading automotive color choices, according to the 2011 DuPont Automotive Color Popularity Report just released. A substantial increase in the popularity of white/white pearl globally in 2011 has enabled it to surpass longstanding rivals black and gray, to join silver at the top of the world color ranks in this year’s report. The DuPont report, in its 59th year, is the longest running and largest of its kind in the industry, includes automotive color popularity rankings and regional trends from 11 leading automotive regions of the world. In 2010, white/white pearl was tied for third with gray in the world color ranks with just 16 percent share, but its ongoing popularity in North America, combined with a surge in popularity in Europe, China, Korea, South America and South Africa, has helped to increase its position in 2011 to 22 percent globally. Black and gray dropped to third and fourth, respectively, in this year’s report with red and blue strengthening and holding positions in fifth and sixth place. The top global vehicle colors in DuPont’s report are as follows: 1. White/White Pearl and Silver – tie, 22 percent
3. 4. 5. 6. 7. 8. 9. 10.
Black/Black Effect – 20 percent Gray – 13 percent Red – 7 percent Blue – 6 percent Brown/Beige – 5 percent Green – 2 percent Yellow/Gold – 1 percent Others – 2 percent “While white/white pearl has historically been a popular color for vehicles, we’ve seen a bigger shift in its popularity this year than DuPont expected,” said Nancy Lockhart, DuPont color marketing manager. Silver and black have long been recognized in the top two for color popularity. However, in the past few years, white/white pearl has been steadily growing in popularity outside of North America. In 2011, it jumped by more than four percentage points, according to Lockhart. “There has been increased consumer acceptance for white, and our OEM customers are meeting consumer demand for the clean look it brings to vehicle design,” she said. “Silver and black were once the top colors of luxury, but white has increased in this area. The overall trend for casual luxury has spread to numerous vehicle types. The expectation to have a luxurious feel to the vehicle is globally sought. Classic white and pearlescent white effects are inspiring luxury design.
22 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
CIECA Advises on Progress of Total Loss Committee The Collision Industry Electronic Commerce Association (CIECA) says that the Total Loss Committee has now completed approximately 70–75% of its estimate messaging and is currently working to complete the options and features portion. The latest release added over 300 vehicle option codes. The goal of the committee is to improve communication between repairers, insurers, and salvage providers. Earlier efforts led to the ability to attach a Vehicle Inspection Report (VIR) to the Estimate Message, but failed to provide for a total loss valuation prior to the disbanding of the Total Loss Committee. CIECA staff resumed the work of the committee two years ago. The biggest hurdle in the process was finding a neutral territory for the messaging. CIECA worked with the information providers CCC, Mitchell, and Audatex, and—when working through the code lists, vehicle parts and options, the detailed valuation amounts and methods—finding that the information providers all defined things differently, particularly with condition ratings on vehicle parts. All had their own systems for condition ratings. After taking time to understand their process, the data needs were deemed quite similar. The committee worked to form a neutral territory so
that each provider would have the freedom to infer condition descriptions their own way but using the same language and codes developed in concert, in the committee webinars. This is where the previous attempt failed. Another major time solver provided by the committee was the elimination of a laborious handwritten step in the vehicle assessment. Prior to the CIECA committee, when a vehicle reached the “fix it or scrap it” stage, in order to transmit the information about that vehicle, one had to manually hand write an evaluation form (the Vehicle Inspection Report or VIR) and submit that to the insurance company for evaluation, who then had to look into the salvage value of the vehicle, the replacement value and the repair estimate to determine the vehicle’s fate. The process is now streamlined from the time the vehicle first enters the insurance company system when a policy is written on down to that moment of “fix it or scrap it.” If a vehicle looks to be a total loss, the estimator can document the vehicle condition, vehicle options, estimate the salvage value, determine actual cash value, complete the VIR, and submit it with the repair estimate for valuation electronically.
SCRS Joins with Leading Collision Repair Organizations to Release Joint Position Statement on Collision Repair Standards The Society of Collision Repair Specialists (SCRS) joined with the most prominent collision repair organizations representing the voice of the collision repairer nationally, to issue and sign a joint statement officially recognizing OEM vehicle manufacturer published repair procedures as the industry’s repair standards. The organizations making the declaration with SCRS include the Alliance of Automotive Service Providers (AASP), Automotive Service Association (ASA), and Assured Performance Network. The statement was presented on Wednesday, November 3, 2011 to those attending the Collision Industry Conference (CIC) in Las Vegas, Nevada. Their statement reads as follows: “The undersigned organizations continue to be the leading voice of collision repair businesses and technicians across the United States, just as they have for decades. Representing their interests, we hereby recognize published repair procedures, as provided by auto-
motive original equipment manufacturers (OEM), as the official industry recognized “Repair Standards” for collision repair. These standards, where they exist, shall be the basis for the establishment of training, testing, repair practices, and documentations. “Whereas, we acknowledge that OEM repair procedures are incomplete in comparison to the full scope of vehicles and repair operations which exist in the marketplace; the OEM published repair procedures shall serve as the baseline for industry repair standards, with the recognition that further development of procedures will be necessary in areas not covered by published procedures. “Therefore, we officially ask the board of directors for the Inter-Industry Conference on Auto Collision Repair (I-CAR), to establish within their overall organizational structure, an industry council to identify gaps in existing OEM procedures and develop processes to close gaps, vet industry proposed alternatives, modifications,
and additions to OEM procedures. The Council will include volunteer representatives serving at least ASA, SCRS, AASP, and I-CAR.” While most assume OEM repair procedures are standards by default, it has never been officially established until now. As these groups collectively represent collision repair businesses and technicians across the United States, their official adoption and declaration provides a much needed foundation and focus to the industry’s effort to establish collision repair standards.
To advertise call Sean Hartman at:
800-699-8251 e-mail:
shartman@autobodynews.com
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NY's H&V Collision Centers Joins in USMC’s Toys for Tots Program
H&V Collision Centers announced on November 16 it partnered with the U.S. Marine Corps’ Toys for Tots program to collect toys for families nationwide during the 2011 holidays. Toys will be collected through December, and then given to the Marines in time for holiday distribution, H&V said. Toys can be dropped off at any of H&V’s three facilities, located in Troy, Colonie and Queensbury, NY. H&V said the company’s effort is a reflection of the challenges faced by many local families this holiday season due to the tough economy. “Those of us at H&V Collision Centers want to do our part to make the holidays brighter for families in need, and are honored to participate in the Marine Corps’ Toys for Tots program,” said Vartan Jerian Jr., vice president of H&V. “We are hoping to help collect and give presents that will be remembered for many years to come.” For more information about H&V Collision Centers, visit handvcollision.com. For more information about the Marine Corps’ Toys for Tots program, visit toysfortots.org.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 23
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1974 Alvin Road, Grand Island, NY 14072 24 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 25
SEMA Announces New Product Showcase Award Winners SEMA, the Specialty Equipment Market Association, announced on November 1 the winners of the New Products Showcase Awards held at the 2011 SEMA Show. The event recognizes the most cutting-edge automotive products either on the market or about to hit the market. This year, nearly 2,000 new products were submitted for consideration. Criteria that ranked high on the judges' selection for the New Product Showcase Awards included superiority of innovation, technical achievement, quality and workmanship, consumer appeal and marketability. The 2011 New Product Award Winners include: Best Engineered New Product Winner: Baer Brake Systems, Full Floating Rear End Conversion Runner Up: Aeromotive Inc., Camaro Stealth Fuel System Runner Up: Fuelab, Electronic Fuel Pressure Regulator Best New Exterior Accessory Product Winner: Cargo Ease Inc., Cargo Ramp / Brake System Runner Up: Bestop Inc., TrekStep Side Mounted Step Runner Up: Rhino-Rack USA, Roof Mounted Cargo Basket Best New Interior Accessory Product Winner: Auto Meter Products, Universal 3 Gauge Mounting Solution Runner Up: LOKAR Performance Products, Billet Aluminum Tremec Shifter Levers For TKO 500 and TKO 600 Runner Up: Bully Dog Technologies, RAM Mounting Systems for Bully Dog GTs and WatchDogs Best New Merchandising Display Winner: MacNeil Automotive Products Ltd., TechFloor™ Retail Display Runner Up: Flex-a-lite Consolidated, Flex-a-chill - Radiator Coolant Additive (POP) Runner Up: Access Roll-Up Covers, Access Truck Bed LED Light Display Best New Mobile Electronics Product Winner: Escort/Beltronics Radar Detectors, ESCORT Live! Runner Up: Del City, Sealed Window Crimp Connector Runner Up: Metra Electronics Corp., ASWC Best New Off-Road/4-Wheel Drive Product Winner: MSD Ignition, Atomic EFI
Runner Up: Daystar Products International, Can Cam Fuel and Water System Runner Up: ProRYDE Suspension Systems, SuperBLOK 3-in-1 Leaf Spring Blocks Best New Packaging Display Winner: MacNeil Automotive Products Ltd., TechCare™ Runner Up: Auto Meter Products, Auto Meter Custom Shop Gauge Set Runner Up: Preval, vFan Portable Airbrush System Best New Collision Repair & Refinish Product Winner: Eagle Abrasives Inc., Super Assilex Runner Up: Plio Grip by Valvoline, Like90 Turbo Pad for Bumpers Runner Up: Gema, OptiFlex®2 Best New Performance-Racing Product Winner: COMP Performance Group, COMP Cams Sprint Car Front Drive Kit For LS Applications Runner Up: Auto Meter Products, Ultimate DL Playback Tach System Runner Up: Ace Fuel Systems, Adjustable Fuel Injector Best New Performance-Street Product Winner: SCT Performance, SCT iTSX for iPhone Runner Up: COMP Performance Group, Inglese EFI Throttle Body Insert Hidden Metal Screen Filters Runner Up: COMP Performance Group, FAST EZ-EFI Jeep 4.2L/6 Cylinder Kit Best New Powersports Product Winner: Auto Meter Products, Universal GPS Speedometer Interface Runner Up: Skyjacker Suspensions, 10-12 Polaris Ranger Crew Rear Winch Mount Kit Runner Up: Warn Industries Inc., 1700 XT Portable Winch Best NewStreet Rod/Custom Car Product Winner: Classic Instruments Inc., SkyDrive Runner Up: Billet Specialties Inc., Billet LS Valve Covers Runner Up: Eddie Motorsports, Billet aluminum Under-hood kit for 19551957 Chevys Best New Tire and Related Product Winner: Continental Tire the Americas LLC, Continental Cross Contact LX20 Runner Up: Cooper Tire & Rubber Co., Discoverer A/T3 Runner Up: Continental Tire the
26 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Americas LLC, General Tire G-MAX AS-03 Best New Tools & Equipment Product Winner: PH2 Solutions Inc., PH2 Validator Runner Up: Las Vegas Tool LLC, EASYPULLER by Las Vegas Tool LLC Runner Up: Schley Products/SP TOOLS, Air Hammer Ball Joint R&R Tool Best New Van/Pickup/Sport-Utility Product Winner: EZ Connector Inc., EZS7-02 Runner Up: Daystar Products International, Shock and Steering Stabilizer Armor Runner Up: Specialty Products Co., Leaf Spring Silencer™ Best New Wheel and Related Product Winner: Topline Products, Verde Custom Wheels | V39 - Parallax Runner Up: iForged Performance Alloys/Forgestar Wheels, CF10 Rotary Forged Carbon Fiber Edition Runner Up: MGP Caliper Covers, MGP Caliper Covers.
Hughes Telematics Partners with AAA Club to Offer In-Drive Connected Services to Members
Hughes Telematics is partnering with AAA Club to offer In-Drive-connected services to the automobile club’s 12 million drivers in 20 states. As previously announced with State Farm Insurance, the In-Drive system operates similarly to GM's aftermarket OnStar system. InDrive connects the vehicle and its driver to Hughes operators in the event of an emergency or accident. Devices plugged into the vehicle’s On-Board Diagnostics port and mounted on the visor connect the driver and the vehicle to Hughes’ team of operators, who are available to help drivers coordinate emergency response and detect when a vehicle has been in a crash. AAA hasn’t finalized its offerings or come up with pricing, but indicated it would like to offer members roadside assistance, auto crash notification, emergency calling, diagnostics, and stolen vehicle location, said Kevin Link, senior vice president of marketing for Hughes Telematics. The automobile club may also use different In-Drive device models. ACP will release more information when its In-Drive program launches in the first half of 2012.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 27
On Creative Marketing
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Use Estimator Tactics to Close the Sale with Thomas Franklin
Recently I was in a shop where business was kind of slow. And yet a couple of estimators were sitting back “shooting the bull.” Although some shops employ a marketing person, the fact is the estimators are still the real sales personnel in a body shop. In the past, all most estimators had to do was write an estimate when a car comes in and then sell the customer on leaving the keys and the car to be repaired. In these difficult times, few shops can afford that kind of limited job description for their primary selling people. From what I’ve been able to see, a major failing in ineffective estimator salespeople is inertia and reluctance to reach out for new business. More progressive shops are moving away from the old model where the estimator simply sat around and waited for a vehicle to come in to estimate.
Estimators are selected for their ability to communicate to a specific marketing target. One shop always has one estimator who can speak Spanish and another who can speak an Asian dialect that’s common in the area. Also one estimator is dedicated to write estimates at a local dealership, and each estimator is assigned to specialize in one of the shop’s DRP relationships. But is this enough to bring in new business? Sadly, many estimators are not really salespeople. In a retail store they would be called “order takers.” One shop owner, who had been in business for more than twenty years, finally got a drive-in arrangement with a top insurance company. He was so happy about it, he wrote the estimates for the drive-in himself for the first couple of months. He convinced 80% of drive-in prospects to leave the keys and get their car repaired. But
28 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
when the task was turned over to several different estimators, most didn’t even manage to convert 50%. What made the difference? Obviously the owner had real selling skills. The others didn’t. Some of the consolidator shops and dealership shops I’ve visited seem to have estimators with better selling skills. I’ve asked a few what they do that closes the sale for them. Here is a brief list of some of what I was told: ● Maintaining a professional appearance, often with shirt-and-tie for men, and comparable professional attire for women. ● Sincerely complimenting a prospective customer early on, to try to establish an early emotional bond. ● Building rapport by drawing on comparable stories of accidents that happened to friends and family members. These salespeople took the time to contact many friends and family
members so they would have a ready arsenal of stories to tell. ● Building rapport by stimulating a more personal level of communication. A common strategy is have photos of the estimator’s children on the desk (even if the photos are many years old, showing the children as tiny tots). ● Keeping novelty items and items of interest on the estimating desk to stimulate personal conversation or having a special toy available to occupy a child who accompanies a prospective customer. ● Posting I-CAR and other certificates of achievement near the desk to show competence and professionalism. ● Keeping an album at hand with a selection of worse wrecks than the one at hand, that were successfully restored to perfect pre-accident condition. ● Having ready explanations of technical problems in language most people can understand without becoming
confused or feeling put down. ● Taking on the problems of the prospective customer, in dealing with the insurance company, providing a ride, getting a rental car if needed and helping to arrange a convenient schedule for the customer. ● Involving the prospective customer in the writing of the estimate, explaining each line, showing illustrations on the computer (if available) and generally demystifying the estimating process. ● Being well informed of what giveaways will be acceptable in a tight negotiating situation. The usual elements are car-wash, free detail, color sand and buff, or repair of minor unrelated damage. There was one more tactic that interested me: Showing prospective customers comparable cars in the shop in the process of being repaired or beautifully completed to reassure them that the shop is capable of restoring their car to perfect, pre-accident condition. It reminded me of an article about Marie Callender who had just died. Yes, there really was a Marie Callender. She worked in a little deli in Long Beach, California, right
around the turn of the century. She started baking pies for the deli and, with her husband, soon opened a little coffee and pie shop to sell some of her pies directly. Her pie shop was very successful because she did something no one else ever did: She put her ovens right in the front window of the pie shop so people could see her baking those pies. Today this is common practice, from pizza to sushi, but Marie was one of the first to see it had great potential marketing power! This is just one of the many strategies and tactics effect estimatorsales people have used. But given the emotional upset most people experience after an accident, perhaps this one provides very visible and tangible evidence that this is the best place to have their vehicle repaired. Even an estimator with few selling skills can use a tactic like this to advantage.
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Gerber Collision & Glass Joins Collision Repair Education Foundation’s Industry Leadership Circle With $10K Donation Gerber Collision & Glass has joined the Collision Repair Education Foundation’s Industry Leadership Circle donor designation through their recent $10,000 donation. This donation supports the Education Foundation’s Collision Repair Education Campaign fund which allows the organization to support secondary and post-secondary collision students through their annual student scholarships, tool/equipment grants, and the Ultimate Collision Education Makeover $50,000 school grant. “This donation is a display of Gerber’s commitment to the future professionals of the collision industry and is an investment in their technical education,” said Gerber Collision & Glass President and COO Tim O’Day. “We are very pleased to be able to support the Collision Repair Education Foundation and look forward to partnering with them in the future to assist secondary and postsecondary collision students.” Collision Repair Education Foundation Executive Director Scott Kruger commented, “Thanks to Gerber Collision & Glass for joining the Collision Repair Education Founda-
tion’s efforts to support collision school programs and their students. By increasing educational opportunities for these students, who are tomorrow’s industry professionals, the future will be brighter for all collision repair businesses. The Collision Repair Education Foundation would also like to thank Gerber Collision & Glass President Tim O’Day for participating on our Board of Trustees, providing focus and direction for all our efforts in support of collision students and school programs.” Additional information about Gerber Collision & Glass can be found at www.GerberCollision.com. Inter-industry organizations and individuals who are interested in supporting the Education Foundation and increasing the amount of assistance provided to collision schools and students should contact Education Foundation Associate Director of Development Brandon Eckenrode at Brandon.Eckenrode@ed foundation.org.
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Chief Donates Frame Rack to Operation Comfort Automotivation Program for Wounded Warriors Chief Automotive Technologies has donated a new frame rack valued at $50,000 to the Operation Comfort Automotivation program for wounded U.S. military service members. Chief distributor English Collision Equipment, Inc. installed the rack at no charge. “We are honored to have the opportunity to help these wounded warriors recover from the injuries they sustained while defending and protecting our country,” explains Mike Cranfill, vice president of collision for Chief’s parent company, Vehicle Service Group (VSG). “It is our hope that this equipment will aid in their rehabilitation and perhaps even ignite an interest in joining the collision repair industry once they are discharged.” Operation Comfort is a nonprofit, philanthropic organization focused on helping service members from all branches of the U.S. military who were wounded in Afghanistan and Iraq and are rehabilitating at Brooke Army Medical Center (BAMC) in San Antonio, Texas. Depending on the severity of their injuries, these men and women will stay at BAMC from one to four years or longer. Operation Comfort provides financial assistance to service members and their families, helps refurbish and equip waiting rooms at the medical center, and offers a number of rehabilitative and therapeutic programs in non-clinical environments. These programs include hand cycling, sled ice hockey, amputee surfing, softball, river rafting and Automotivation. “Operation Comfort is structured to improve the soldiers’ spirits, so their rehab is faster and more effective,” explains Janis Roznowski, Operation Comfort executive director and founder. “Their lives now are a cycle of medical appointments, surgeries, therapy, rehab, more appointments, more treatments, more surgeries, more rehab… That’s why it’s so important to give them relief. I believe that if they’re working on something they really love, they forget all the trauma going on in their lives. When they’re working on a car, they’re focusing on that car and enjoying the process. By fixing a car, somehow or other, they fix something inside of themselves.” Automotivation was developed at the request of service members
who were reluctant to participate in conventional rehabilitative activities
participants on how to properly use Current needs include: the equipment. ● Chief accessory package and tool “We’re so appreboard ciative that Chief un● Frame measuring system derstands the value ● Brake lathe of what we do and ● Small lathe that they jumped in ● Alignment rack and equipment to help,” Roznowski ● Complete socket sets says. “This was an ● Soda blaster incredibly generous ● Portable diesel-powered air comdonation. With the pressor (125 cfm) Chief rack, we’ll be ● Bead roller able to teach the guys ● Spot welder new skills that they ● Metal brake may also be able to ● Sheet metal shear use when they return ● English wheel to civilian life.” ● Shrinker/stretcher The soldiers have ● Creepers a long wish list of ● Wheel dollies Chief Automotive Technologies donated a frame rack to the Operation additional tools and ● Hydraulic floor jacks Comfort Automotivation program for wounded U.S. military service equipment the pro● Air tool kit members. Pictured on the recently installed rack are (from left to right): Sgt. 1st Class Vic Hash; Sgt. Chris Leverkuhn; Mike Cranfill, gram could use. OpFor more information about vice president of collision for Chief’s parent company, Vehicle Service eration Comfort does Operation Comfort, visit www.opGroup (VSG); Spc. Michael Baird-Kelly; Petty Officer Andrew Johnson; not have funding to erationcomfort.org or call (210) Janis Roznowski, Operation Comfort executive director and founder; buy equipment, so it 826-0500. To learn more about Robert Rodriguez, president of Lay’N Color (which shares space and relies on industry doChief collision repair equipment, resources with the Operation Comfort Automotivation program); Jeff English, manager of English Collision; and Sgt. Robert Dickey nations of tools, contact your local Chief distribuequipment and contor, call 877-644-1044, or visit or sports, but were interested in re- tacts for mentoring and training. www.chiefautomotive.com. building and restoring cars, trucks and motorcycles. Participation is voluntary. The program is housed in donated space in a professional • We are the authorized insurance garage on Lonesome Dove Ranch vendors for the AASP/Alliance of south of San Antonio. It includes Automotive Service Providers of NJ. four service bays, a paint booth and • Call us for competitive quotes. break room. • Member only dividend & discount programs. Many soldiers who are injured and then sent to BAMC to heal feel • The Amato Agency is a full service agency cut off from their units, explains Vic representing most major insurance companies Hash, Army sergeant first class and a for all your insurance needs. member of the Warrior Transition Unit Our goal is to reduce your insurance costs, without at Fort Sam Houston. “They tend to sacrificing the coverage you need. want to cocoon. This gives them something to do to take their minds off We will review your current program, check for their injuries.” adequacy and provide competitive alternatives. Automotivation participants are www.amatoagency.com building a 1966 Shelby Cobra replica kit car and are finishing a World War II weapons carrier body that they restored and installed on a 1984 Ford Bronco chassis. The group displayed both vehicles at the SEMA Show at Call Us Today at: the Las Vegas Convention Center from November 1 through 4. The Fuzion pulling system that to see how Chief donated was installed in what much $ we had been a flat bay. The heavy-duty can save you! rack is equipped with two pulling towAgency President Agency Manager & VP 4900 State Route 33 #103 Joseph Amato Sr. Joseph Amato Jr. ers and universal anchoring stands. It Neptune, NJ 07753 offers 12,000 lbs. of lifting capacity for maximum versatility. Chief is also Your Guarantee of Protection and Exceptional Service for Over 40 Years. arranging training for Automotivation
30 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
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The Honda and Acura Dealers Listed Here are HO N D A NE W Y O R K
NEW YORK
N EW JERSEY
P ENN S Y LVA N I A
Babylon Honda
Lia Honda of Williamsville
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We s t B a by l o n
Wi l l i a m s v i l l e / Buffal o
West New York
Montgo mer yville
631-669-5800
877-659-2672 716-632-3800
866-483-6917 201-868-9500
215-855-3587
Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com
Dept. Hours: M-F 7-7; Sat 7:30-5; Sun 8-3 anthony.perrone@hudsonhonda.com
Ray Laks Honda
Rossi Honda
We s t S en eca
Vine lan d
716-824-7852
800-893-3030 856-692-4449
Dept. Hours: M-F 7-7; Sat 7:30-3:30 babylonparts@aol.com
Brewster Honda B re w s t e r
845-278-4177 Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com
Dick Ide Honda R o che s t e r
Dept. Hours: M-F 7:30-8; Sat 7:30-5:30 ekuznicki@raylaks.com
Dept. Hours: M-F 6:30-5; Sat 7:30-3 dave@rossihonda.com
NEW JERS EY
800-462-0056 (N.Y.) 585-586-4919
Coast Honda
Route 22 Honda Hills ide
Dept. Hours: M-Thur 8-8; Fri 8-5:30; Sat 8-5 parts@dickide.com
Sea Girt
732-974-8960 732-974-2211 Ext. 3
Lamacchia Honda Syra c u s e
315-471-7278 Dept. Hours: M-F 7:30-5:30; Sat 9-1 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 tmorris@liacars.com
Dept. Hours: M-F 7-5:30; Sat 7:30-4 jferrara@coasthonda.com
Dept. Hours: M-Thur 8-6; Fri 8-5; Sat 8-1 joseph.sciacca@jlfreed.com
Mike Piazza Honda Lang hor ne
215-702-2614 215-702-2615 Dept. Hours: M-Thur 8-8; Fri 8-5; Sat 8-4 ebayparts@piazzahonda.com
Shadyside Honda Pitts burgh
973-705-9100
800-468-2090 412-390-2908
Dept. Hours: M-F 7-7:30; Sat 8-5 rt22hondaparts@route22honda.com
Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com
PENNSYLVANIA
Honda of Princeton
Apple Honda
P r i n c e to n
York
800-682-5941 609-683-5941
800-960-9041 717-848-2600
Dept. Hours: M-F 8-4:30 kphillips2@princetoncars.com
Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com
Honda of Turnersville
Baierl Honda
Tur ne r s v i lle
Wexford
800-883-0002 856-649-1584
724-940-2006
Dept. Hours: M-F 8-6; Sat 8-4 sbaptist@penskeautomotive.com
J.L. Freed Honda
Sussman Honda Roslyn
800-682-2914 215-657-3301 Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
Dept. Hours: M-F 8-5; Sat 8-4 johnryan@baierl.com
AC U R A NEW Y O R K
NEW YORK
PENNSYLVANIA
P ENN S Y LVA N I A
Acura of Westchester
Smithtown Acura
Apple Acura
We s t ch e s te r
S t . J a m es
York
Emmaus
914-834-8887
888-832-8220 631-366-4114
877-5APPLE5 717-849-6639
877-860-3954 610-967-6500
Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com
Dept. Hours: M-F 7-5:30; Sat 7-3 parts@appleacura.com
Dept. Hours: M-F 7-5; Sat 8-5 mustafa@vinart.com
Baierl Acura
Smail Acura
Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com
Curry Acura S c a r sd a l e
NEW JERS EY
800-725-2877 914-472-7406
Acura of Turnersville
Dept. Hours: M-F 8-6; Sat 8-5 parts@curryacura.com
888-883-2884 856-649-1884
Paragon Acura Wo od s id e
718-507-3990 Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com
Tur n er s v i lle
Dept. Hours: M-F 8-5; Sat 8-4 egreger@penskeautomotive.com
Elite Acura M a p l e S h ade
856-722-9600 Dept. Hours: M-F 8-5; Sat 8-4 bmartinsen@group1auto.com
Lehigh Valley Acura
Wexford
Greensburg
800-246-7457 724-935-0800
866-261-4999 724-219-1476
Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com
Dept. Hours: M-Thur 7-5; Fri 8-5; Sat 8-4 acuraparts@smailauto.com
Davis Acura
Sussman Acura
Langhor ne
Jenkin town
866-50-ACURA 215-943-7000
800-826-4078 215-884-6285
Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com
Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 33
Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca
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Supplier Price-fixing Litigation Plays Out in Detroit Autobody News
Detroit is likely to remain center stage in a legal drama now playing out around the country over price-fixing collusion among automotive wire harness suppliers, long after two former executives of Furukawa Electric Co. pleaded guilty in federal court on October 24, according to reports made by Automotive News. Hirotsugu Nagata, former CFO of Furukawa’s U.S. subsidiary, American Furukawa Inc., from 2004 to 2009; and Junichi Funo, assistant general manager of Honda sales at American Furukawa until 2009, appeared October 24 before U.S. District Judge George Steeh in Detroit and pleaded guilty to one count each of conspiracy to restrain trade in violation of the Sherman Antitrust Act. Nagata is expected to serve 15 months and Funo one year and one day in U.S. prisons in the U.S. Department of Justice case. The company itself and another former executive, Tetsuya Ukai of the parent company’s Honda sales division, have separate court dates in mid-November to enter their own pleas. Furukawa agreed in late September to plead guilty and pay a $200 million fine in the case. The $29 billion U.S. automotive wire harness industry has come under assault in five states, where 10 new lawsuits filed since Oct. 5 allege the suppliers engaged in false and deceptive trade practices, fraudulent concealment, violation of federal antitrust law and unjust enrichment. The 10 civil suits all name, in addition to Furukawa: • Yazaki Corp. of Iwata, Japan and/or U.S. subsidiary Yazaki North America Inc. of suburban Detroit, the industry market leader. • Sumitomo Electric Industries Ltd., No. 2 in size and the fastest growing, which has an administrative head-
NEW YORK • NEW JERSEY • PENNSYLVANIA • DELAWARE
quarters in Kentucky and offices in suburban Detroit. • Delphi Automotive LLP, the onetime General Motors parts unit based in suburban Detroit. • Lear Corp., the seating and electronics supplier based in suburban Detroit. • Leoni AG, a wiring and cable products supplier based in Nuremberg, Germany. • S-Y Systems Technologies GbmH, Regensberg, Germany, which Yazaki acquired in 2005. S-Y has an office in suburban Detroit. Some of the new lawsuits also go on to target Denso Corp., Tokai Rika Co. Ltd. and Fujikura America Inc., which are based in Japan but have U.S. offices as well. Denso and Tokai’s U.S.-based subsidiary Tokai Rika Group North America was raided by FBI agents last year along with Yazaki North America as part of the global pricefixing probe. “The price of cars is already high anyway, and we’re fighting every day for business share without the added burden of what the (suppliers) have done to competition,” said Steve Landers, president of Little Rock, AR-based Landers Auto Group No. 1 Inc. and owner of Landers Toyota and Steve Landers Chrysler Dodge Jeep Ram, who brought one of three dealership lawsuits. “In a way, it’s really a double-punch to the dealer, though it also gets passed along to the consumer. Hopefully, doing this (the lawsuit) can get them to adjust the prices on future harnesses, to offset the overcharging.” The lawsuits—three on behalf of dealerships and seven on behalf of consumers who bought Honda, Toyota and other cars during 20002010—all followed days after the Furukawa plea agreement became public and seek to certify a class action on behalf of harness buyers in
34 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Michigan, California, Minnesota, Arkansas and Mississippi. Detroit area attorneys expect the suits will coalesce soon into one by order of the U.S. Judicial Panel on Multi-district Litigation—possibly before Steeh, or another judge in Detroit. “It does seem like Detroit would be the center of gravity for those cases, because Michigan is home to a lot of the firms and (witnesses),” said Patrick Cafferty, founding partner of Cafferty Faucher LLP in Ann Arbor, MI, which is handling two of the five buyer lawsuits in Michigan. “But then the MDL (multidistrict litigation panel) is not always predictable with those decisions.” The global automotive wiring harness market grew 32.2 percent to $29 billion last year from $21.9 billion in 2009, and could grow to $32 billion by 2012, according to the Global and China Automotive Wiring Harness Industry Report, 2010-2011, released by Dublin, Ireland-based tech analyst firm Research and Markets earlier this year. Yazaki accounts for nearly 30 percent of the global wire harness market. Sumitomo was fastest-growing with 24 percent, while Delphi was third with about 16.7 percent global market share. Local suppliers contacted by Automotive News downplayed the lawsuits. Lindsey Williams, director of corporate relations at Delphi, said the allegations against the company are without merit and Delphi will seek to be dismissed from the suits. Lear said in a statement that it also believes the claims to be without merit, and Misty Matthews, manager of communications for Yazaki North America, said its legal team is reviewing them. Robert Calo, shareholder and co-chair of the white-collar criminal
December 2011 defense practice at Portland, Ore.based Lane Powell PC and attorney for Furukawa in the criminal case in Detroit, did not return two phone calls seeking comment. Attorneys Thomas Gallagher and Matthew Lund of Pennsylvaniabased Pepper Hamilton LLP represent Ukai in the Furukawa criminal case. It was unclear who represents the other executives. David Ettinger, partner and chairman of the antitrust and trade regulation practice group at Detroitbased Honigman Miller Schwartz and Cohn LLP, said it’s possible that two classifications of lawsuits against the suppliers could emerge: one for “direct purchasers” or OEMs that allege they overpaid for components, and another for “indirect purchasers” like dealers and consumers who may have paid a markup. John Barrett, president of the Barrett Law Group PA in Lexington, MS, who brought another proposed class action on behalf of Hammett Motor Co. Inc. in Durant, MS, said dealerships would likely have two sets of legal claims against the suppliers, since they purchase both vehicle inventory from OEMs and replacement wire harnesses for warranty and other repair work in their service divisions. But John Youngblood, chairman of the automotive dealer practice at Abbott, Nicholson, Quilter, Esshaki & Youngblood PC in Detroit, said he is not sure dealers have the best claims since their markups are passed along to consumers. The most likely plaintiffs, he said, would either be large dealerships who stock inventories of replacement harnesses or move a sizable volume of marked-up vehicles each year, or smaller dealers who can be swayed by eager plaintiff law firms into joining class actions.
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.
Are We Crossing Into the ‘Outer Limits’ of Automotive Repair? with Gonzo Weaver
“Don’t try adjusting the throttle cable—there isn’t one. I can tell when it’s dark enough for the headlights. Your Air Conditioner is under my complete control, along with steering, windows, stereo volume and braking. Don’t be alarmed, I’m here to help assist in operating your vehicle. Who am I? Why, I’m your friend, I’m your PCM. Some people may call me a “Human Assistant Logistic” device— call me ‘Hal’ for short. I like that name.” I live in your main frame computer. Don’t try to over-ride me. I’ll reduce the power level. Program me without the properly dated software and I may never speak to you again. Push an amperage load in the wrong direction, and I’ll make smoke appear where you don’t want to see smoke. I’m tough as nails, but at the same time, as delicate as a flower. So be careful with me. Now, does that sum up today’s
PCM’s? I think it does. With all the information being passed back and forth we’re no longer fixing cars, but doing advanced electronics caretaking. Hal has a lot of control these days. He’s everywhere in the car, from the glove box to the transmission. We haven’t lost control of the cars we drive, but there’s no doubt Hal has taken over. We are approaching that Space Odyssey of self awareness in computer systems. We’ve accomplished a lot with the advanced electronics on today’s vehicles. The ability to control the exhaust emissions to a point where there is very little in the way of harmful gasses leaving the tail pipe (compared to the 60’s and 70’s) is a scientific and engineering accomplishment that should be applauded. But, doesn’t it sound a little sci-fi
to have this electronic nightmare attached to a combustion engine, pounding out a level of torque and performance that has never been seen before in the realm of automotive history? I think of it this way, these days you don’t turn ON the A/C, you merely ask the PCM for permission to turn it on. Seems strange to ask permission to turn on the A/C, but it’s pretty much what you do these days. If all the parameters are correct then the A/C will turn on. If something is out of place, well then, Hal will not allow it to come on until you have corrected the problem. Same thing with the electronic throttle, if the PCM thinks there is any reason for you NOT to be in charge, it will take over and reduce the power level and send you home at a speed of 30 mph or less. What happened to the days when bailing wire, an old piece of hose and a hair pin could get ya back on the
road? Gone for sure; I guess we are moving into that unknown future we’ve heard about. It makes me think of the old science fiction movies of days past. What’s next, Mr. Spock’s “Tri-Corder”? I wouldn’t laugh too hard. I’m waiting for a phone app that will allow you to diagnose the car without leaving your driveway. Oh, it’s out there, and it’s coming our way. Keeping all this in mind, it’s a good time to think about how auto repair is going to be for the future generations. I don’t want to think of myself as an old school fuddy-duddy, so I’ve got to think about adopting some of the new methods of communication as part of my ongoing advertising and community awareness. You just can’t miss the opportunities available on the internet these days. It’s all part of the fast paced communication and information society we See Outer Limits, Page 36
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 35
Paint Management
Stefan Gesterkamp is a Master Craftsman and BASF representative who has been in the automotive paint industry for 27 years. He started his career in a custom shop before turning to collision repair. Stefan graduated from the University of Coatings and Colorants in Germany and is the author of “How to Paint Your Show Car.”
How Lucky Do You Feel?—Durability of Back-Taped Edges with Stefan Gesterkamp
One of my customers asked me to provide feedback on an issue that I feel most collision repairers and insurance professionals would be interested in. There was a three way discussion between two shops and an insurer concerning back taping along body lines on a vehicle’s roof. The question I received was concerning durability of the back-taped edge and/or should the shop clear up and over to the other side? Everybody reading this likely agrees that the technique of back taping a roof is common place and practiced industry wide. Most will likely not think twice about doing it. To set the stage, I also assume that most people in the industry today have accepted that open solvent blends along the sail panel are not an acceptable repair and should not be performed. And those roofs without a well contoured edge to tape along should be cleared up and over.
So what about the rest? My answer to this comes in the form of another question. How lucky do you feel? The reason for my question is that this technique is a calculated risk assessment. If the surface is cleaned and prepped expertly and no shortcuts are taken, back taping will result in a long lasting repair. The questions that are impossible to answer are how long a long time is and will this edge hold up longer then the vehicle is owned by your client or remains in active service? Given just enough time, the edge ultimately will deteriorate and break down. High, long-term exposure to ultra violet rays, wear and tear, chemical exposure, as well as too much, or too little maintenance, all contribute to the unknown time before it will happen. Doing this type of repair is a judgment call that needs to be openly discussed
Continued from Page 35
I’m waiting for the time when you drive past a billboard on a lonely night’s drive and the billboard recognizes you, and tells you in big bold letters: “You are due for an oil change. Make an appointment with: (insert name of a shop here).” Why not? It could happen. In a way it is like we have reached the outer limits. Except there really isn’t any limit to what the human mind can dream up. We’ve only started to explore what we can do with a vehicle’s electrical and mechanical systems. Who knows what will be next. Right now, the near future is definitely the smaller displacement engines, which are more than likely going to be turbo charged. With a touch of the hybrid still in the mix, perhaps even the full electric vehicle hanging in there. It wouldn’t even surprise me if the cars ran strictly on a GPS system, and the driver didn’t do a thing but sit there. So can Hal take over the automotive industry? It’s possible. Since money is always involved in the future of the automotive world, there is no doubt that if there is a way to control a vehicle after the sale, I’m sure they’ll find a way to accomplish it.
Outer Limits
are a part of. A good example of this is my latest intern at the shop. I was showing him how the IDS (Ford diagnostics and scanning machine) runs on a laptop based program. He already had the whole thing figured out; before I even got into the diagnostics part of it he was showing me short cuts with key strokes and things I never knew about. But, this is the generation that has grown up with computers. This is their world of PC’s and video games. Me, I’m lucky I can get through a round of Ms. PacMan without screwing it up. My point: cars and transportation are taking on a whole new era of sophistication. The likes of which, we as the older generation of techs read about years ago but never thought would come to pass. Well it’s here now, and even though a timing belt still doesn’t come off of its tensioner without a human hand doing the job, it might take a PC to recalibrate certain issues after it’s installed.
36 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
between collision repairer and insurance provider. I don’t have the latest numbers on how long the average American driver holds on to their vehicle before it is traded in for a replacement in the present economy, but I believe the odds are very much in the repairers and insurance favor. Although the odds may be favorable, the question that comes to my mind is concerning warranty. From a fiscal standpoint this type of repair approach makes perfect sense, but from a manufacturer’s prospective, this repair doesn’t qualify for lifetime warranty coverage, as it is still technically considered an open blend. I don’t claim to have a good answer to this debate. From a purely quality driven point of view, I have to side with the up and over crowd. From a practical, fiscal point of view, the tapers also make a strong case for themselves.
Are you taking a risk when you back tape along a roof line? Yes, but compared to elective risks some collision repair shops willingly take, like mixing and matching different brand’s paint products into a single paint repair for example, taping the edge will let me sleep well tonight. It all comes down to how you feel about this issue and let your best judgment guide you.
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Body Shop Law
Martin Zurada is a San Francisco-based attorney who regularly advises and litigates on behalf of California’s auto body repair businesses. Contact him at: m.zurada@sflawyer360.com
How to Prepare, File and Win in California Small Claims Court with Attorney Martin Zurada
Sooner or later you will pay for a faulty product, deliver a product or service that you did not get paid for, or have a dispute with another business. Regardless of how the dispute occurs, someone will owe you money but will refuse to pay. If the dispute is over a large sum of money, you will typically need to file a regular lawsuit which tends to be complex, cumbersome, and expensive. However, there is a special division within each California court devoted entirely to resolving smaller disputes in a speedy, informal, and inexpensive manner—it is called the small claims court. This article explains the basics of how to sue in small claims court, and the steps you need to take to maximize your chances of winning. Keep in mind that this article provides general guidance only, and is not a substitute for legal advice. There may be facts specific to your situation that must be addressed by a lawyer or a small claims legal advisor.
Who can sue in small claims court? Generally anyone who is at least 18 years old and mentally competent can sue in small claims court regardless of their citizenship. Suing in small claims court is called making a claim. The person making the claim in small claims court is called a plaintiff, and the person against whom the claim is made is called a defendant.
How much money can I get? As an individual plaintiff, you can make a claim for up to $7,500 in small claims court, and as a business plaintiff (partnership, limited liability company, or corporation) you can make a claim for up to $5,000. If you are owed more than that, you can still sue in small claims court as long as you reduce your claim to the maximum allowed. There are some limits designed to prevent abuse of the small claims court system. You can file as many claims as you want for up to $2,500 each, but you cannot file more than 2 claims per calendar year for more than $2,500. The limitation is applied only if the same person or legal entity is making mul-
tiple claims within the same calendar year.
How do I file a small claims action? If you decide that you want to go ahead with your small claims action, you need to complete all of the steps described below. Make a demand for payment: You must demand payment from the other person, and that person must refuse to pay or ignore you. It is best that this demand be a letter that states how much money is owed, why the money is owed, and that you will go to court if the money is not paid by a certain date. If you are a business attempting to collect debts from consumers, you need to consult a lawyer to make sure that you are obeying special state and federal laws protecting the consumer. Decide the proper small claims court in which to sue: You need to make sure that you choose the right small claims court to sue the defendant. You may be able to sue where the dispute took place, where the person you are suing lives, where the firm you are suing does business, or where the contract you made was supposed to be performed. If there is more than one proper place to sue, you can choose the court that is most convenient for you. Determine the full name and address of the defendant: You also need to make sure that you know the defendant’s full legal name and address. Information about businesses registered to do business in California can be found on the website for the California Secretary of State at www.sos.ca.gov. Each county also keeps track of businesses in the county through its local fictitious business name registry. If the business is registered as a corporation or a limited liability company with the Secretary of State, it should be sued under its full and correct legal name. If the business is not registered it means that it is a partnership or a sole proprietorship, and the actual owners of the business need to be sued under their names with a “d.b.a.” (short for “doing business as”) notation that states the name of the busi-
38 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
ness. For example “John Smith and Jane Doe d.b.a. ABC Flower Shop.” If you put an incorrect name for the defendant on your small claims complaint, the case may be dismissed or you may have trouble collecting from the defendant. Determine how much you are owed and why: You need to know exactly how much money you are claiming, the reason why you are claiming the money, and the date and place where the dispute started. Obtain the proper form and complete it: You need to obtain Plaintiff Claim and ORDER to Go to Small Claims Court form SC-100 from the court or on line at www.courtinfo.ca.gov (this website also contains the other forms mentioned in this article). Fill the form out completely and sign it. File the Plaintiff’s Claim: You need to bring an original and one or more copies of Plaintiff’s Claim form to the proper courthouse and file it with the clerk. Make sure that the clerk gives you back a stamped copy of the Plaintiff’s Claim you just filed because the defendant will need to receive a stamped copy of this form (see next step). When you are filing the form, the clerk will ask you to pay a fee which can generally range between $30 to $100 depending on the amount of your claim, and on the number of small claims actions you filed in the past. The court where you filed the small court claim will set a date when the case will be decided—this is called the “hearing date.” The hearing date can be between 20 and 70 days after you file your claim. As a plaintiff, if you are doing business under a fictitious name, and the claim arises out of the operation of the business, you must also file Fictitious Business Name form SC-103 with the court stating that you have complied with the fictitious business requirements of your county. Serve defendant with the Plaintiff’s Claim: You need to notify each defendant about your claim by “serving” him or her with a copy of the stamped Plaintiff’s Claim that you filed with the court. There are a number of ways to serve a defendant, but
to make sure that the service is done properly it is best to hire a professional “process server” to do this for you. Service must be done fairly quickly after you file your claim. If the defendant lives in the county where your claim is filed, you must serve him at least 15 days before the hearing date. You should ask the server to complete and sign Proof of Service form SC-104 for each defendant. The completed and signed Proof of Service form must be filed with the court at least 5 days before the hearing. Defendant can file a counterclaim against you: After defendant is served with your claim, he or she may file a counterclaim against you. This is called a “counterclaim” because it is a claim made by the defendant in response to a claim by the plaintiff. A defendant’s counterclaim is also limited to the maximum claim amounts allowed in small claims court. This means that in addition to defending against your claim, the defendant may also sue you for a dispute relating to your claim, or to any other dispute between you. Your claim and the defendant’s counterclaim will be resolved together at the hearing.
How do I prepare for the small claims hearing? The court will set a date and time for the small claims hearing. The hearing will be your opportunity to prove to the judge that you are owed money by the defendant, and, if there is a counterclaim, to prove that you do not owe any money to the defendant. Collect documents: The best way to prepare for the hearing is to collect all of the physical evidence in your possession—letters, contract, emails, pictures and any other relevant documents to support your case. In small claims cases there is no opportunity to discover what documents and witness the other side will bring with them, until the actual hearing. Talk to witnesses: You will also need to decide whether there are any favorable witnesses who are willing to testify for you at the hearing. Generally only witness who heard converSee Small Claims, Page 40
Women’s Board Car Care Council Holds Reception at AAPEX 2011, Awards Industry Leaders
Continued from Page 12
Wanda
plexity associated with waterborne systems and coupled it with incredible color match accuracy and application ease all combined to create an unbeatable value.” The uniquely formulated VOCcompliant system including Low VOC Clear, Low VOC Primer and Waterborne Basecoat, was launched earlier this year in the Canadian collision repair market with great success due to its exceptional easeof-use, color matching capability, and affordable pricing. With the debut of Wanda Waterbase in the US market this summer, the Wanda brand is ready to celebrate the yearlong achievements in both markets and share those success stories with show goers. For more information about Wanda Waterbase and the full range of Wanda products and color tools, visit www.wandarefinish.com. Check out Facebook and Twitter for details and activities about Wanda Waterbase at SEMA.
The Car Care Council Women’s Board held their14th Annual Car Care Council Women’s Board Reception on November 1 from 5 p.m. to 6:30 p.m. at the Sands Expo Center in Las
and accessories to the auto equipment industry. Since Bjorklund purchased the company in 2005, it has doubled in size. Prior to TMR, she worked at Will-Fix Automotive for 17 years.
Ruth Ehlinger, the Car Care Council Women’s Board President, and Aftermarket Woman of the Year Deborah Bjorklund
Ruth Ehlinger and Audra Fordin, owner of Great Bear Auto Shop, winner of the Best Shop Award
Vegas, Nevada during the annual Automotive Aftermarket Products Expo (AAPEX) tradeshow. The reception awards many companies and industry leaders. Deborah Bjorklund was awarded the Aftermarket Woman of the Year Award. Bjorklund is president of The Main Resource (TMR), a manufacturer and distributor of aftermarket parts to repair shops. TMR also provides parts
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Audra Fordin, owner of Great Bear Auto Shop Flushing, NY, was awarded the Best Shop Award. “What an honor it was to just be nominated. Wow! But to actually win! It is a very profound feeling I am experiencing; I feel stronger in my stride and I am going to keep driving forward and resist obstacles that are always trying to push me off road from my ultimate destination... ‘women
AUTO know!’ To be the first recipient of this award is pretty darn cool too!” said Fordin of her big win. The council also awarded a $2,500 scholarship award to Michelle Perez, a collision repair student at Skyline College in CA. “Our Women’s Board ‘Aftermarket Women of the Year’ awards are a way for us to applaud exceptional women in the aftermarket for their dedicated service, as well as to recognize women who are going above and beyond to make a difference in the industry,” said AAA’s Ruth Ehlinger, president of the Car Care Council Women’s Board.
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reasonable, civilized and trustworthy person. Be on your best behavior, no matter how angry you are at the defendant. Some facts may be important to you but have nothing to do with the claim: Sometimes you may tell facts to the judge, and he or she may interrupt you telling you that the facts you are trying to explain are not relevant to the case. If you disagree and believe that the fact are relevant, politely tell the judge why the facts you are bringing up are important, and ask the judge to give you a few minutes to explain them. Oftentimes, you will have negative information about the defendant, which you may want to tell to the judge but which is not important to the case. Consulting an attorney may help you determine which of the facts may be relevant and the best way to present them to the judge. Do not expect a decision right away: The judge may make a decision in court after hearing all of the evidence or may mail the decision to your home. Most likely, the clerk helping the judge will mail to you a Notice of Entry of Judgment informing you of the judge’s decision after you leave court.
What do I need to do at the small claims hearing to maximize my chances of winning? You prepared carefully for the hearing beforehand, and brought relevant evidence and witnesses with you.
Now you must know how to behave in court to make sure that the judge understands your evidence and likes you. Come early and come prepared: At least half of the battle is proper preparation. Be at the courthouse at least 30 minutes early. That way if you get delayed you will still make the hearing, and if you are on time you will have time to collect your thoughts and go over your argument. Bring all of your documents and witnesses with you. Be ready to explain your case: The judge may let you talk freely, ask you questions, or periodically interrupt your story with questions. The hearing is informal which means that, even though you will be in court in front of the judge, you will only need to explain and prove the facts. You do not need to know evidence rules or legal theories. It is normal to be nervous in court, and the judge will expect you to be nervous. Take a few deep breaths and try to relax. If you are able to talk freely, tell the judge why you are in court, explain what the defendant did to you, why it was his fault and not yours, and how much money you are owed. If the judge asks you questions, listen carefully and answer them fully. Give the judge copies of all documents that support your case. Be respectful towards the judge and the defendant: Do not get discouraged if the judge is unfriendly or asks you tough questions. This is normal because judges tend to be stern and tough on both sides. Be polite to your opponent and do not interrupt your opponent or their witnesses while they are explaining their side of the story to the judge. It is fine to correct the judge if they get a fact wrong or misunderstand something you said, but you must be very respectful. If the judge starts talking, you must stop talking immediately and listen. Remember the judge has never met you, and will be watching carefully how you behave in court to see if you are a
The Automotive Service Association (ASA) Board of Directors met this past month and discussed changes to the ASA policy on replacement crash parts. The board voted unanimously to approve a new policy for crash parts. With reference to the new policy, Dan Stander, AAM, ASA Collision Division director and co-owner of
Jerry Stander’s Collision Works, Littleton, Colo., said: “ASA’s replacement crash parts position statement is in response to today’s parts usage and market conditions. With an increasing number of part types with various levels of quality, and an increase in the number of processes used to validate – or not val-
idate – these various lines of quality, it is confusing at best to most repairers. “ASA’s position better defines its goal to provide the highest level of repair by requiring full disclosure of all part types by all parties, and having the standard for replacement crash parts that are certified and verified to be the equivalent of the OEM part.”
Continued from Page 38
Small Claims
sations or saw the events you are complaining about will be helpful to your case. You may be able to force a witness, other than the defendant, to come to the hearing by serving them before the hearing with a special court order called a “subpoena.” However if a witness is unwilling to help you voluntarily, forcing them to come to small claims court with a subpoena may cause them to say things damaging to your case. Prepare in advance what you will say and show to the judge: Your hearing may last as little as 10 to 20 minutes, and plaintiffs often lose cases because they are unable to explain their story to the judge in a calm and organized way, or do not support their story with documents. You need to carefully plan what you are going to say, and what documents you will show to the judge. Most people prefer to write down some bullet points, and rehearse what they will say in front of others. Make at least one extra copy of all important documents and bring the copies and originals with you. Think of what the other person will say, and how you will answer. Remember, it is your job to prove your case to the judge, so come to court prepared. Consider meeting with a lawyer: Even though you cannot be represented by a lawyer in your initial small claims hearing, it is generally a good idea to meet with a lawyer prior to the hearing, because he or she will be able to help you focus on the legal theories and evidence that is crucial to the case.
What to do if I am unhappy with the judge’s decision? You cannot appeal the judge’s decision if he or she denies your claim or awards you less than the amount of money you were asking for. You can appeal only if you are ordered to pay money or to do something. This will only happen if you are a defendant who loses on a claim filed by the plaintiff or a plaintiff who loses on a counterclaim filed by the defendant. To appeal, you will need to file Notice of Appeal (Small Claims) form SC140 in court within 30 days from the date the court clerk mails to you the Notice of Entry of Judgment. It costs about $90 to file an appeal, but the fees change from time to time. The
court will mail the Notice of Appeal to the other party and set a new hearing date. There will be a new judge hearing the case on appeal who will not take into consideration the decision in the original case. The new hearing will be similar to the first one, except that you will be able to bring a lawyer with you, and you may have more time to present your case.
What do I do if I need more help? Even though the small claims process is simpler than ordinary court proceedings, it is still a fairly complicated and often intimidating process. In theory, you are supposed to provide the small claims judge with facts and documents at the hearing, and the small claims judge is supposed to weight the evidence and apply the law. However, it often helps to educate the judge about the law, especially if the matter is unusual or complicated. While this general article may be a helpful guide, it cannot serve as substitute for legal advice tailored specifically to your situation. If you are suing as a business in small claims court, there may be state and federal laws that apply to you. Free small claims advisors are available to help with your small claims questions, and you can obtain their contact information by calling or visiting the website of your local courthouse. These advisors can be very helpful in guiding you through the different steps required to file your claim. However, they tend to be very busy and may not have time to get into the facts and law of your case. You can also consult a lawyer at any point in the small claims process. Attorney Martin Zurada has assisted numerous individuals in preparing for small claims court and appealing small claim judgments. He can be reached at (415) 637-8483 to answer your specific questions. In states other than California, consult an appropriately qualified local attorney.
Automotive Service Association (ASA) Approves New Crash Parts Policy
40 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
The new crash parts policy reads: ASA supports requiring insurers and auto collision facilities to provide disclosure of part type, description and warranty information to the consumer for all part types including, but not limited to, original equipment manufacturer, aftermarket, recycled, reSee ASA, Page 44
California Court Grants Joint Motion to Dismiss Perez et al. Aftermarket Antitrust Case, Allows Plaintiffs to Refile A California federal judge granted a joint plaintiff and defendant motion to dismiss an antitrust class action against State Farm Mutual Automobile Insurance Co. and other insurers Nov. 15, saying the plaintiffs do not have standing to sue several wholly owned subsidiaries of the insurance companies. The plaintiffs had filed a fourth amended complaint in July against State Farm, Allstate Indemnity Co., Geico General Insurance Co., Liberty Mutual Fire Insurance Co. and the Certified Automotive Parts Association (CAPA), a purported independent regulatory body created by the auto insurers. The complaint added the subsidiaries as named defendants and alleged that the auto insurers set up a sham organization to prevent competition over auto repair parts. U.S. District Judge James Ware said in the ruling that because the plaintiffs never paid insurance premiums directly to the wholly owned subsidiaries, they did not suffer any financial injury at the hands of the subsidiaries, and therefore have no standing to bring a
class action against them under Article III of the U.S. Constitution. The plaintiffs filed suit against the insurance companies and CAPA in 2006. Named plaintiffs Sarah Perez, Michelle Lackney, Rachel Stewart and Rachel Hardyck alleged that the auto insurers violated California competition and antitrust laws because they exclusively offered policies that provided inferior repair parts, as well as boxing out other insurers. They further alleged that CAPA was created by the defendants to advance the scam and that it promoted inferior crash parts as acceptable substitutes for those from the original manufacturers. Judge Ware dismissed the suit on two separate occasions, but the ruling was overturned on appeal by the Ninth Circuit both times. The appeals court ruled in April 2009 that the plaintiffs had Article III standing to proceed with their claims and said in August 2010 that the antitrust claims did not fall under the California insurance commissioner’s exclusive rate-making authority. Judge Ware
based his decision on the Ninth Circuit’s 2001 ruling in Lee v. American National Insurance Co., which says class action plaintiffs lack Article III standing in insurance suits if they did not buy a policy from a named defendant. The plaintiffs had claimed in earlier filings that Lee is not pertinent to the case because it focused on whether a plaintiff had standing to bring an insurance class action, not whether a subsidiary of a defendant could be sued. In rejecting the plaintiffs’ argument, Judge Ware said that under Lee, plaintiffs can be barred from litigating a class action in federal court if they cannot establish injury. The judge dismissed the complaint without prejudice and granted leave for the plaintiffs to refile their
complaint against only the insurance companies by Nov. 22. The subsidiaries named in the amended complaint were State Farm Fire and Casualty Co., State Farm General Insurance Co., Allstate Insurance Co., Allstate Property and Casualty Insurance Co., Geico Casualty Co., Geico Indemnity Co., and Government Employees Insurance Co., according to court documents. The defendants include State Farm Mutual Automobile Insurance Company, Geico General Insurance Company, Liberty Mutual Fire Insurance Company, and Allstate Insurance. Background on the case, including a legal analysis, can be read in June 2011’s Autobody News, or online at: www.autobodynews.com, search “Perez.”
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Industry Insight with John Yoswick
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
CIC Committee and I-CAR Respond to Association Statement on ‘Industry Standards’ In response to ongoing efforts over six years by the Collision Industry Conference (CIC) to develop a set of formalized repair standards, four national repairer groups have jointly issued a statement calling the published automaker repair procedures the “official industry-recognized repair standards for collision repair.” At CIC in Las Vegas in early November, the Alliance of Automotive Service Providers (AASP), the Assured Performance Network, the Automotive Service Association (ASA), and the Society of Collision Repair Specialists (SCRS), jointly read a statement that said where OEM procedures exist, they should “be the basis for the establishment of training, testing, repair practices and documentations.” The groups said they recognize OEM repair procedures are “incomplete in comparison to the full scope of vehicles and repair operations that exist in the marketplace,” but they should serve as a baseline from which further development of procedures occur. Although a CIC Repair Standards Advisory Committee has explored the idea of a new industry organization being formed to finalize and implement industry standards, the four groups issuing the statement instead called on I-CAR to create an industry council “to identify gaps in existing OEM procedures” and to develop processes to close those gaps, vetting any industry-proposed alternatives, modifications or additions to OEM procedures. Following the announcement, ICAR CEO John Van Alstyne said that he sees some potential merit in the proposal. “We see that ICAR is positioned uniquely to engage in that dialogue with the OEMs on John Van Alstyne behalf of the industry,” he said. “But that said, we have a lot of stakeholders associated with I-CAR. We have a mission and vision, and need to see if this is a fit. So I’m taking on the challenge of tak-
ing this request back to our board. That process will start this afternoon actually. So we will be getting back to you with our response.” Although the statement by the four organizations made no specific reference to the standards work being done at CIC, AASP and SCRS last summer at CIC raised concerns that “other industry segments and participants who don’t necessarily support (OEM repair recommendations) as the standard are involved in this activity and committee.” But at CIC in November, Russell Thrall of CollisionWeek, who cochairs the CIC-formed Repair Standards Advisory Committee, said he views the associations’ new statement as a positive sign of their engagement in the process. He said it fits with what the committee has seen as its charter, namely to “develop and publish nationally recognized collision repair standards which follow the manufacturers’ recommended procedures for safety and reliability.” He also provided an update on the committee’s work, saying it will now be the first quarter of next year before a consultant’s report is released on what consensus exists within the industry about standards and a possible new organization to oversee the development and implementation of them. “That position statement (announced today) certainly is going to inform a lot of what appears in the research work,” Thrall said. The consultant has conducted more than 40 interviews with repairers, insurers and industry vendors, Thrall said, and held a conference call to gather input from 18 state and local repairer trade groups. About 43 percent of those individually interviewed were repairers (another 17 percent were shop network or association representatives), including both singleand multi-shop businesses; Thrall said he wasn’t sure how many shop locations in all those companies represented, but he said their combined annual sales exceed $1 billion. The consultant’s report will consist largely of the opinions expressed in those interviews, Thrall said.
42 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
“There is some consensus in broad areas, and there’s a lot of areas where there isn’t consensus,” he said, as a preview of the findings. Thrall said funding for the $60,000 research project is being raised through industry donations, which as of early November totaled about $46,750 from 35 sponsors. (An additional $7,500 was raised at that CIC meeting following Thrall’s presentation.) The names of the sponsors are included in the committee’s report on the CIC website (www.CIClink.com). Thrall said the bulk of the donations have come from repairers and suppliers, though there has been “some significant insurance company and OEM representation.”
‘Data leaks’ explainable so far Also at CIC in Las Vegas, the Data Privacy Committee reported that it has yet to find a valid example of a consumer’s accident or estimate data “leaking” from a shop’s estimating system, for example, to a vehicle history service such as CARFAX. The committee announced a survey last July seeking examples of such occurrences, but Tony Passwater, chairman of the committee, reported in Las Vegas that not a single response to the survey had been received. Passwater did, however, receive several reports of apparent data privacy issues, which he then investigated. In one, for example, a shop owner’s son was in an accident but did not submit an insurance claim. The shop wrote an estimate and fixed the vehicle, and about a month later when the vehicle was traded in, the accident appeared on the CARFAX vehicle report. The family presumed the information could only have gotten to CARFAX through the estimating system. “But the information on the CARFAX report came from the police report, which is public information,” Passwater said. He said he’s heard at least five variations of that type of story, but none have seemed to indicate a real data privacy concern.
“If there really is an instance where this actually takes place, we’d love to know about it and be able to document it,” he said. “I’m encouraged to hear that the gossip and stories that after all we’ve heard about various organizations getting information about an accident that was leaking out of shop’s computers and from frame machines software or estimating software, that there’s nothing to this point showing proof of that,” CIC Chairman Mike Quinn said, following Passwater’s presentation.
Words matter The CIC Definitions Committee generated some discussion at the Las Vegas meeting with its proposed definitions for multiple words used in the industry to describe used parts. The committee, for example, has proposed calling a “recyclable” part (or a “used” or “salvage” part) one that has been removed from a donor vehicle, while a “recycled” part is one that has been removed from a donor vehicle and reused on another vehicle. The committee has proposed defining “like kind and quality (LKQ)” as “a generic term used to describe any part that may be used to replace another part (typically assumed to be a used part).” Ron Guilliams, who chairs the committee, was asked why there was a need for definitions for multiple terms for the same thing, and why the committee was including the “LKQ” term, which could be confused with parts distributor LKQ Corporation. Guilliams said all of the terms are used within the industry, and therefore the committee felt its charge is to define them. “The committee doesn’t have the authority or reach to be able to change what people are describing things as out in the industry,” Guilliams said. “As long as these terms are being used by different databases and by insurers, we felt that we needed to define them.” But Dusty Womble of Roger Beasley Collision Center in Austin,
Texas, said he’s concerned that the term “recycled” could be misleading to a consumer. The public, Womble said, generally thinks of recycling as breaking something down into its core substance to be used in a remanufacturing process. Paper Dusty Womble isn’t recycled by just erasing the print on it, he said; it’s turned into pulp and reformed into paper. Plastic bumpers are “recycled,” he said, only when they are cut into tiny chips to be melted down and reformed into another product. “Most used parts aren’t really being recycled,” he said. “You’re not tearing it down and remanufacturing a product. You’re cleaning it up and reselling it.” Guilliams said the committee would take that into consideration, but also is developing definitions for “rebuilt,” “reconditioned,” and “remanufactured” that may help clarify the issue. CIC’s next meeting will be held January 12-13 in Palm Springs, Calif.
ASRW 2011: Attendance Up 18%, Positive Exhibitor Feedback Reported Automotive Service & Repair Week (ASRW, held by ASA) 2011 was held October 5 through 8 in Orlando, Fla., and ASA deems this year’s event the most successful in recent years. There was an 18% increase in overall attendance and reportedly good initial sales for the 2012 event. ASRW 2012 is scheduled for Oct. 11–13 at the Morial Convention Center in New Orleans, LA. (Educational sessions will begin Oct. 10, 2012.) Ron Pyle, ASA president, commented on the event’s outcome saying, “Since we’ve returned from the show, we’ve been inundated with an outpouring of positive feedback, success stories and personal testimonies of the impact of this year’s event. It’s evident a tremendous amount of business was transacted in Orlando last week, and we could not be happier with the upswing of ASRW 2011.” Total attendance for the 2011 event was 19,221, of which a third of the participants were from the east coast and another third were new attendees.
Mazda 3 ‘11
“By far the best NACE in our 11 year history. We expected we would have a good number of new shops stop at the booth and that was for sure what happened. We gathered twice as many leads as last year, and we closed 3 times as many sales on the floor as last year. Overall a fantastic NACE, and we can't wait for New Orleans,” said Dave Henderson, AutoWatch. “Congratulations to NACE. Great turnout. Manufacturers are jumping at the bit about New Orleans. Been a fabulous surprise,” commented Bruce Mather, Dir. of Marketing HMS Warehouse (ChemSpec). Additionally, advance exhibit space sales for ASRW 2012 began onsite and to date 20% of the show floor is already sold. Many verbal commitments have also been received and are expected to become firm commitments by the early-bird deadline of Nov. 15, 2011. For a complete listing of 2012 ASRW exhibitors, visit www.NACEexpo.com or www.CARSevent.com. “Whatever you did—it’s working. We’re local and we had a lot of people coming up to us thanking us
for the invite to the show this year. It’s been really good,” said Ron Andress, R.M. Andress/Evercoat. “What a great expo! We talked to a whole new group of collision repair owners at this expo and we look forward to next year in New Orleans to see a different group of collision repair professionals,” stated Scott Saal, Auto Data Vin Labels. “NACE allowed us the opportunity to showcase our services in a well-organized and exciting environment. Everyone was upbeat and enjoyed very engaging conversations. The networking opportunities for any exhibitor are great. We were glad to have this opportunity and are already getting excited for New Orleans next year!" said Matt Broyles, Operations Director, CARS. “Autoshop Solutions experienced yet another spectacular year at CARS and NACE this year—a remarkable event. One that I hope you benefited from. If you missed attending this year, I hope to see you next year in New Orleans!” said Danny Sanchez ofAutoshop Solutions.
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I-CAR Tech
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
How to Work With Active Grille Shutters on a 2012 Ford Focus When making collision repairs to the 2012 Ford Focus, be aware that the vehicle may be equipped with an active grille shutter system (see Figure 1). This motorized system is located in front of the radiator, which places it in a vulnerable position during frontend collisions. The active grille shutter system consists of a shutter assembly and an actuator motor. The assembly includes the housing, shutters, retainer, and a wiring harness. Active grille shutters are serviced as an assembly, the shutters are not serviceable individually. The actuator can be serviced individually.
The shutters are linked together, with one of the individual shutters attached to the actuator by the retainer. When the grille shutter actuator moves, it moves the attached shutter, which in turn, causes the other linked shutters to move. The shutters are regulated by the powertrain control module (PCM), and can be set into 16 different positions, from fully closed (see Figure 2), to fully open (see Figure 3), depending on the amount of cooling air required. The grille shutter actuator receives the position commands from the PCM. The PCM determines the required positions based on inputs such as vehicle speed, coolant temperature, ambient air temperature, and air conditioning system pressure. During normal operation, the grille shutters are fully open when the engine is off. When starting the engine from cold, the grille shutters will remain closed as long as possible to help reach the most efficient Figure 1 - This 2012 Ford Focus is equipped with the operating temperatures more active grille shutter system quickly. This also helps reduce fuel consumption and emissions. Operation This controlled vent system is primarily designed to maximize fuel econDamage Analysis omy by reducing drag on the vehicle. The grille shutter assembly is located The grille shutters automatically close at the front of the vehicle behind the to block airflow through the cooling boron-alloyed steel bumper reinforcesystem when not needed. Closing the ment (see Figure 1 again). The active grille shutters helps to improve bumper reinforcement has crushboxes aerodynamics at high speeds. The that attach to the front lower rails. If shutters open to reduce underhood the crushboxes collapse during a coltemperatures when needed. The grille lision, the bumper reinforcement shutter system is also used to control could be forced into the grille shutter coolant temperatures, HVAC perassembly. formance, and exhaust emissions deWhen analyzing damage, look pending on the vehicle speed. for obstructions in the shutters that
would prevent proper operation of the system. Since all of the shutters are linked together, all it would take is one obstruction to cause a bind. This could be a broken piece of a part or a foreign object. The grille shutter system has a dedicated fuse, and an obstruction
quality verification and testing related to metallurgy, fit, functionality and responsiveness. ASA believes a competitive parts marketplace, of tested and verified quality parts, is in the best interest of the motoring public. ASA continues to oppose parts policies that focus solely on cost efficiency without regard to certification, verifiable quality and safety.
Roy Schnepper, AAM, ASA Government Affairs Committee chairman and owner of Butler’s Collision Inc. in Roseville, Mich., said, “We are seeing a changing market in the collision industry, especially in reference to the growing use of aftermarket crash parts, which we, as shop owners, are being asked to use in repairing vehicles. “ASA believes collision repairers should have confidence that replace-
Continued from Page 40
ASA
manufactured, reconditioned and rebuilt crash parts. ASA supports quality parts, certified and verified in which the quality is determined based on empirical and measurable evidence equal to the standard of OEM parts. ASA recommends
44 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
calibration is successful, or a fault is detected. Any failure of the system for over 10 seconds continuously will result in the actuator positioning the shutters fully open. There is no indication to the driver when a grille shutter system fault is present, however, a diagnostic trouble code is set in the PCM.
Conclusion The 2012 Ford Focus may be equipped with the active grille shutter system. Located in the front of the vehicle, the system is in a vulnerable position during frontal collisions. Except for the actuator, no parts of the system can be Figure 2 - This is how the active grille shutter system serviced individually. When looks fully closed repairs are required, the acmay cause the fuse to blow. Also, tive grille shutters, housing, retainer, check that the grille assembly is propand wiring harness must be replaced erly aligned in the opening. as an assembly. The Ford Focus and the active grille shutter system is one of many 2011-2012 vehicles and systems featured in I-CAR’s instructor-led (live) course, Collision Repair for Ford and Lincoln Vehicles (FOR05). This course will provide you with an understanding of several of Ford’s vehicle-specific parts and procedures and help Figure 3 - This is how the active grille shutter system you gain an understanding of looks fully open how maintaining Ford quality repairs can be key to customer satisAutomatic Calibration When the engine is started, an autofaction and achieving a complete and matic calibration of the grille shutter safe repair. Visit the I-CAR website to system takes place. This calibration find a class near you. process cannot be initiated manually. For comments or suggestions on Calibration typically takes about 15– the Advantage Online, please contact 20 seconds. The process occurs until I-CAR at advantage@i-car.com. ment crash parts will respond equally as well in a secondary collision as the parts originally placed on the vehicle. Collision repairers, insurers, parts distributors and manufacturers must work together to ensure the testing and verification procedures are the best possible to protect consumers and repairers. When this happens, consumers can have confidence that the parts they are receiving meet OEM standards.”
CARSTAR Auto Body Repair Experts Adds Seven New Store Locations to the CARSTAR Nation This Summer This spring and summer, seven of the country’s top independent collision centers around the country have joined the CARSTAR Nation to provide their customers and community members even better service and support. CARSTAR Auto Body Repair Experts are North America’s largest group of auto body repair experts with some 400 stores in the United States and Canada—and growing. As a member of CARSTAR, these new franchisees will offer a new array of services and products for collision repair, including the latest in repair technology, rental vehicles, national warranties on repairs, and turnkey service for their customers. As part of CARSTAR’s commitment to customer service, it will take care of the entire process of repairing the car for the car owner, from getting the vehicle towed to the facility to coordinating with the insurance company to restoring it to pre-accident condition. The new CARSTAR franchisees will benefit from the CARSTAR Management Systems, which provide resources to improve key business metrics such as cycle time, participation in CARSTAR’s 17 corporately managed DRP programs, and im-
proved purchasing power from 44 corporately managed purchasing programs. The seven newest members of the CARSTAR Nation include: ● Premier Collision CARSTAR in Tacoma, WA ● Bailey’s CARSTAR Auto Body & Glass in Poplar Bluff, MO ● Miller’s CARSTAR Collision in Houston, TX ● CARSTAR Collision Pros in San Antonio, TX ● ProCare CARSTAR Northeast in San Antonio, TX ● ProCare CARSTAR Southside in San Antonio, TX ● Galles CARSTAR Collision Repair in Albuquerque, NM “We are extremely pleased to welcome these new members to the CARSTAR Nation,” said David Byers, Chief Executive Officer of CARSTAR. “They all run great businesses and have strong histories of quality customer service. We’re looking forward to building their business together, helping local car owners get back on the road with fast, reliable collision repairs, and giving back to the community at the same time.”
Collision Repair Education Foundation Awards $50K to South Carolina Technical Center for Collision Supplies The Collision Repair Education Foundation awarded the Collision Repair class at the Applied Technology Center in Rock Hill, SC, a $50,000 grant to make some upgrades this month. “People believe in it, so-tech career education and technical has made a turn,” said Mark Dellinger. Dellinger teaches the auto body collision repair class. He says more than 70 schools including colleges across the nation applied for the grant. He says the money goes to teach high school students how to sand, buff and paint cars, but it not that simple. “It’s extremely, extremely technical it’s not something anyone can pick up and do,” said Dellinger. For example one reason ATC won the grant is because they’re the only school in South Carolina that teaches the waterborne paint process, which is a new green way of painting cars. Dellinger is going to use the 50 grand to buy new equipment to train his students on. The first on his wish list came in this week—a “sun gun” that makes artificial sun light to match paint colors “It’s about a four or five hundred
dollar flash light but it’s more technical than that,” said Dellinger. However it’s the type of equipment body shops use right now, and the same shops are looking for qualified people who know how to use it. “Painters and body men in Charlotte the good ones they’re making 70 to 80 thousand (per year) easy, I know some painters making over 100 thousand in Charlotte,” said Dellinger. And those salary ranges are reason why Dellinger feels the number of students he teaches has gone up this year to more than 100 students. “There’s nothing wrong with being a blue collar worker,” said Dellinger. “You can make plenty of money, make a good living and be proud of what you do.” Student Brad Spradley is due to graduate next month. He’s wants to be an electrician for a career but from the skills he’s learned in class this year gives him something to fall back on. The $50,000 grant honors a highperforming school that has been doing an outstanding job in educating students in collision repair but is in need of financial assistance to improve teaching materials and equipment.
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SEMA Heard & Said
izers as “buyers.” That’s about a 17 percent jump in show attendance over last year. They could have spent a day just checking out the approximately 2,000 cars on display in and in front of the Las Vegas Convention Center
new R-1234yf automotive refrigerant now in use in Europe and expected in some 2013 model year GM vehicles. “Under Illinois law, to reverse a case at the (state) Supreme Court level, you must have a minimum of four Justices. There was already one judge who had recused himself, and so the decision on the important issues, the issue whether to reverse, came down to a 4-2 vote. If you take out Karmeier, the decision [against State Farm] stands. So it’s going to be really interesting to see what the Illinois Supreme Court does because they’re
Rich Evans talks with Aaron Schulenberg at SCRS’ SEMA booth
for the event. The Society of Collision Repair Specialists (SCRS) said it too saw growth in the training and other events that it held, for the second consecutive year—in conjunction with SEMA. Of the 2,100 total exhibitors—filling a mind-boggling 1 million square feet of space—153 chose to be located in the newly retitled “Collision Repair and Refinish” section of the show, which included about two dozen more companies than last year. Peter MacGillivray, vice president of events and communications for SEMA, said there was a 44 percent increase over last year in the number of buyers who listed themselves as interested in collision repair and refinish. In addition to the collision repair industry vendors, SEMA offers a multitude of tires and wheels and ways to soup-up and trick-out cars and trucks. But for those looking for information and discussion related to the collision industry, there were classes and meetings throughout SEMA week as well. Here’s a sampling of some of what was heard within SEMA week classrooms and meetings spaces. “What does new automotive refrigerant mean to you? —It means all new equipment. They’re Toby Chess, not interchangeable. Trainer You’re going to have to buy new manifolds and a new recovery system.” —Industry trainer Toby Chess on the
Erica Eversman, Attorney
under a microscope.” —Ohio attorney Erica Eversman, during her class on “A New Legal Era in the Collision Industry,” describing the latest legal effort to get the Illinois Supreme Court to review its 2005 decision throwing out a $1 billion judgment against State Farm related to its use of non-OEM parts. Plaintiffs attorneys argue Justice Lloyd Karmeier, who voted in favor of State Farm, should have recused himself from the case because of what they say was the level of the insurer’s backing of Karmeier’s election campaign.
“I just love this industry and the people in it. I’ve been in for 36 years and hope to be in it another 10 or so.” —Dan Bailey from A & B CARSTAR in Kansas City, Missouri, upon being the latest to be inducted into the collision industry’s “Hall of Eagles.” Bailey, the former president of Dan Bailey, CARSTAR’s naCARSTAR tional corporate organization, was recognized for a career that has included serving on many industry boards and advisory groups. “During the week of October 10, my company attended salvage pools in the United States where there were 65,000 vehicles up for bid. Of those, 25 percent, or about 16,250, were sold for export out of the
46 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
United States. My company—which only buys total loss vehicles for end-of-life processing—that week bought 7 percent, or about 4,500 vehicles. Another 20,000 were sold to our competitors for processing in the United States. So that leaves 24,250 vehicles left in the United States from that single week’s sale. I ask you, ‘what happens to those vehicles?’ How many of those vehicle should have remained in your shops for repair for the consumer? This is an issue I think we really need Herb Lieberman, to address. Maybe LKQ we can work together to do something. As I see this, if we could have repaired those vehicles, there were over 1 million opportunities [we could have gained] in one year.” —Herb Lieberman of LKQ Corporation, urging repairers and insurers to work together to reduce the number of vehicles being declared total losses and not being repaired by the industry. “Customers are looking for more value through the entire transaction. If you look at the insurance (process), typically you get an
appraisal inspection, someone hands you a check, and you’re done. We’re starting to toy with the idea of whether post-repair inspections makes sense… I think it opens another dimension in terms of what you can bring the customer. OutRandy Hanson, side of their home, Allstate their automobile is the most expensive investment they make. I think customers are demanding more from that (insurance claim) transaction, and I think we’re going to be charged with finding ways to provide that. Post-repair inspections are something that J.D. Powers highly recommends. Not a lot of folks are doing it. It’s time-intensive. It’s expensive. But the customer has an expectation that it adds value BMW Parts to theirOriginal insurance and repair transaction.” North C —Allstate’s Randy Hanson
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and more OEMs getting involved in shop certification. That (certification) doesn’t mean you’re going to get 100 percent correct repairs, but it increases the opportunity thatus thatyour will happen. And on auGive opinion tomakers can steer their customers to those shops.” —Ford’s Steve Nantau
Delphi Goes Public at $22 a Share
Delphi Automotive went public Noseveral private equity firms, including: vember 17—two years after the comElliott Management, Silver Point Cappany exited bankruptcy. Inc., the in- to matters affecting the industry. ital and Paulson Want&toCo. Contribute The Troy-based auto supplier vestment arm of billionaire investor raised nearly $530 million in its initial John Paulson. Most of the stock—20.6 public offering, as it sold 24.1 million million shares—was sold by Delphi’s shares at $22 each. largest private equity owner, Paulson publisher@autobodynews.com publisher@au The price was at the low end of & Co., which held a 22 percent stake “We used to say ‘repaired to pre-accident or the $22 to $24 range and gives Delin Delphi before the IPO. pre-loss condition.’ Here’s the reality of that: phi’s an initial market capitalization The IPO is reducing its holdings A laser-braised roof. You cannot do that in Promote your busines of $7.2 billion. to 51.7 million shares. the field. It’s impossible. So the procedures In early trading on the New York The sale represents about aarticle 7 per- fe are to weld and glue an exclusive Stock Exchange, Delphi was down cent stake in Delphi—or 24.1 million that roof. You get the your products or ser To advertise about 2 percent to $21.69. of the 328.2 million shares. same usefulness out The source for timely Joe Momber Delphi wascall a former unit of Gen-at: The underwriters—which inof the vehicle. is information that But every eral Motors until 800-699-8251 it was spunoff in 1999. clude Goldman, Sachs & Co., JP Morthat vehicle ‘pre-accibodydent shop needs! Delphi led by CEO Rodney gan and Citigroup—could still or pre-loss cone-mail: O’Neal mounted a “road show” to sell exercise an option to sell shares for dition’? Our focus is CALL: Joemore Momber jmomber@autobodynews.com 800-699-8251 Doug CALL Craig, the offering to investors over the last based on demand. Delphi is trading to restore the crashChrysler 800-699-825 two weeks.www.autobodynews.com just more than six years after the comand usStartworthiness Your FREE Once the world’s largest auto suppany filed for bankruptcy in October ability of theMail product. You’re going to see Subscription. plier, Delphi is owned primarily by 2005. more verbiage like that. —Chrysler’s Doug Craig
write us!
“It’s certainly not the place for an insurance company to steer a customer to John Yoswick is a freelance writer a shop. See But I the do NEW think the manufac- based in Portland, Oregon. He is also the editor of the weekly CRASH Netturer should play a work (for a free 4-week trial subscriprole in that. I think www.autobodynews.com tion, visit www.CrashNetwork.com). you’re seeing more
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Shop Showcase
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Blue Hen Collision Express in Dover, Delaware, Makes Location Count with Chasidy Rae Sisk
Blue Hen Collision Express in Dover, Delaware, prides itself on customer service and reputation. They are the longest established independent body shop in central Delaware with revenue exceeding $2,000,000 annually. Blue Hen’s mission statement is we solve customers’ problems and that is
Carl and Chuck Cimino commute from Pennsylvania and New Jersey to work in Delaware every day
reflected in their focus on customer satisfaction which owners Carl and Chuck Cimino say they have greatly improved since they purchased the business in 1997. The shop works on between ninety and one hundred cars each month, a significant number for the sparsely populated area in which they are located. Cimino’s Collision Express was opened in 1983, and Chuck and Carl purchased Blue Hen Collision Express in November, 1997. Both had been involved in the industry for years prior to the purchase. Their uncles owned an auto body shop where Chuck worked during the summers as a teenager. Armed only with an interest and aptitude for the business, Chuck rented two bays at a dealership owned by a friend of his aunt and opened his own shop when he was seventeen years old. Carl owned a shop in the Philadelphia area, and after he became involved with the CARSTAR franchise in 1989, he met the thenowner of Blue Hen Collision. The Cimino brothers purchased Blue Hen Collision when the owner decided to sell in 1997 because the shop already had a great reputation for producing quality repairs and the location was not saturated with competing shops, which they experienced in the Philadelphia suburbs. Since acquiring the shop fourteen years ago,
their revenue has increased by 250%. Carl and Chuck note that customers in their market are very particular about their vehicles, but they are also very appreciative of quality repairs; therefore quality is essential to getting repeat business. Carl lives in Pennsylvania, and Chuck lives in New Jersey, but they each make the long drive to Dover, DE, every day. They appreciate that their shop is in a great location without many competitors, but also because they love being in an area where the consumer knows and appreciates the difference between a poor and quality repair. The Ciminos also own an auto body shop in Feasterville, PA. They previously owned as many as four shops, but they have sold two of them in recent years. Though their Feasterville shop requires additional resources to sustain itself, there is enough auto body work in Dover for Blue Hen Collision to focus solely on collision. In fact, customers are often willing to wait weeks to use the shop of their choice which sometimes creates a challenge for Blue Hen as they are forced to remind the customer that they have the option of using a competing shop in order to meet the cycle time guidelines imposed by their DRPs. Currently, the shop is anticipating the addition of an Enterprise Rent-A-Car outlet in another part of their building by the end of the year to make rentals more convenient for their customers. Blue Hen Collision Express is a CCAR Greenlink Certified shop, and they recently converted to Dupont’s Cromax waterborne paints. The shop began preparing for the conversion in January 2011, and it took place in May 2011. The Ciminos made this conversion when it became mandated by the EPA and the State of Delaware. They note that some of Delaware’s standards are more restrictive than the EPA’s. As part of these new regulations, regular filter type respirators have been replaced by full face hoods with grade “D” breathable air and CO monitors. An additional EPA requirement mandates that they take daily
48 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
readings of the pressure on their paint booths and note filter replacement dates to comply with new regulations regarding the filters. The Ciminos well appreciate that low humidity and increased air movement in the booth decreases their dry-time for waterborne paints. Waterborne paint must also be treated as hazardous waste, so the shop must maintain waste receptacles for both waterborne paints and their solvent-based primers and clears. Carl and Chuck say that the conversion was very labor-intensive and required a great deal of retraining. They are currently redirecting their
surance companies control the flow of work, Carl says it’s necessary to participate in DRPs in order to produce revenues over $1,000,000. But due to relatively few body shops in the area and a great local reputation, insurance companies solicit Blue Hen Collision to participate in their DRPs, so they can concentrate on providing a quality repair in a timely manner, satisfying the expectations of the both the customer and the insurance companies. As far as Chuck knows, Blue Hen Collision is the only shop in the area that pays employees hourly. Chuck also notes that there is a current shortage of technicians, making it difficult to locate new employees. When asked his opinion about the current trends in the collision repair industry, Carl noted “Insurance pressure to keep repair costs down forces labor rates and materials allowances to stay stagnant while costs conCars line the bays and lifts at Blue Hen Collision Express tinue to escalate with no way in Dover, DE to recoup. Good technicians resources as they adjust to the new are being paid the same money they system which is the first to affect the were 10 years ago with very little entire shop, unlike changes between chance of growth.” solvent-based paint systems. So far, Carl also believes that, in the futhey have found that the color match- ture, it will be difficult for many small ing is more accurate, but unlike sol- shops to keep up with the training, vent-based products, the tints have a technology and equipment costs necshelf life and must be maintained essary to meet new challenges conabove 45 degrees Farenheit. That cerning EPA governances and future made it necessary to add heat to their vehicle designs. mixing room, as well as a rider to Blue Hen Collision Express emtheir insurance policy to cover their ploys fifteen people, including a repaints in case a power outage causes ceptionist, bookkeeper, general the temperature to drop below 45 de- manager, and estimator, in addition to grees. Since converting to water3 unibody and frame technicians, 2 borne, they have noticed better air repair technicians, 1 mechanic, 2 quality in the painting area of the painters, 2 helpers and 1 detailer. shop. They recently added an additional Blue Hen Collision Express re- technician to try to increase sales and pairs mostly late-model vehicles and decrease their cycle times. The shop Carl Cimino says “so far, with is located in a 9,700 square foot Dupont’s Cromax Waterborne sys- building. They are equipped with Cartem, we have only had a few minor Liner and Chief EZ-Liner frame color match problems. They are con- benches, 2 Shark Electronic Measurstantly updating their color tools to ing Systems, and a Clean Shop overcome these issues.” Downdraft prep station. For estimatCarl notes that there is a tougher ing, they use CCC One and Audatex business climate today. Because in- systems. Both their Spraybake Down-
draft and Accudraft Semi-Downdraft booths are equipped with Kayco AirJet Air Movement Systems to aid in force drying the new waterborne paint system. Before painting, they use a EuroVac system to vacuum their booths, and Carl estimates that this has eliminated 75–80% of their dirt problems. Blue Hen Collision is I-CAR, ASE and DuPont certified. They participate in direct repair programs with State Farm, USAA, Safeco, Horace Mann and other insurance companies. The shop sponsors several local little league teams. Their focus, however, remains on quality and providing customers with a positive experience by staying on top of the industry. According to Carl, “the most important thing that we do is read and research everything we can. Any new product or procedure that we read
about in Autobody News or one of the other trade publications, we investigate and try. Also, staying on top of the ‘art’ of estimating is crucial to our success.” Chuck concurs that they like to be flexible and stay current with their training, maintaining consistency in their dealing with insurance companies and in their repair work. Carl and Chuck Cimino have not attended NACE in several years because they saw a decrease in exhibits. Though they were interested in attending this year, they were too preoccupied with the waterborne conversion going on in the shop. Blue Hen Collision Express 5825 W Denneys Road Dover, DE 19904 302-674-4525 www.collisionexpress.com
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Honda Civic Natural Gas Wins Green Car of the Year Award at the Los Angeles Auto Show in November
The Honda Civic Natural Gas took less than gasoline,” the statement home Green Car Journal’s 2012 said. Green Car of the Year award at the It retails for just over $26,000 L.A. Auto Show on November 17, ac- and was selected from a field of five cording to reports made by CNN finalists that also included the Ford (F, Money. Fortune 500) Focus Electric, the MitThe Civic was lauded for being subishi i, the Toyota (TOYOF) Prius v the cleanest running internal combus- and the Volkswagen (VLKAF) Passat tion vehicle as certified by the EPA TDI. and the only assembly-line produced Only cars that were newly intronatural gas passenger model for sale duced or completely redesigned in the on the U.S. market. past year are eligible for the award. “There is no other vehicle on Last year’s winner was the Chevrolet American highways like the Civic Volt. Natural Gas, and this recognition has The award comes a day after the been a long time coming for Honda proposal of new federal gas mileage (HMC),” Ron Cogan, editor and pub- rules aimed at improving fuel effilisher of Green Car Journal, said in a ciency and reducing U.S. dependence statement. on foreign oil. The rules aim for an “The new generation Civic average gas mileage of 54.5 miles per Natural Gas features greater fuel ef- gallon by the 2025 model year. ficiency, a handsome and roomier The new rules would add thounew design, and tailpipe emission sands of dollars to the cost of new levels untouched by any other in- cars within the next few years, but in ternal combustion production vehi- the long run, regulators say, drivers cle.” will spend less on gas, outweighing Want Contribute to this Southwest Edition? The 2012to Civic Natural Gas is the additional cost at the dealership. a fifth generation model, running on “a clean fuel that is almost excluwww.autobodynews.com sively domestically sourced and typically priced about 30 percent publisher@autobodynews.com CHECK IT OUT!
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AkzoNobel Opens Nominations for 2012 ‘FIT’ Sustainability Award, Most Influential Women Awards AkzoNobel Automotive & Aerospace Coatings Americas is now accepting nominations for the FIT Sustainability Award and the Most Influential Women Awards; FIT brings visibility to businesses, organizations and other entities that are delivering sustainable and environmentally-focused solutions to the collision repair industry. AkzoNobel’s Most Influential Women (MIW) awards program honors the contributions of exceptional leaders who are having an impact on the industry with their leadership, vision, commitment to excellence, and willingness to give back to their communities. “FIT” is an acronym for the three key measurement criteria of the award: Focus, Innovation and Talent. Introduced in 2009, the award was launched to complement the advancement of waterborne technology and promote the many contributions that the collision repair industry is making to generate a sustainable future. “Whether a business or organization is large or small, it’s so important to consider how today’s practices and
processes will impact the future of our industry and our environment,” said Mark Milacic, Mark’s Auto Body, Ltd. a FIT winner in 2011. The family-owned business has two locations in Burnaby and Port Coquitlam, British Columbia. “Each of us has a responsibility to incorporate sustainable practices; by working together we have the ability to make a positive impact on the world we leave for generations yet to come.” Honorees for the 2012 program will be announced on July 19, 2012 in San Antonio, Texas in conjunction with the 13th annual Most Influential Women in the Collision Repair Industry. This year’s award recipients will also participate in AkzoNobel’s second Sustainability Leadership Symposium on July 20, 2012. These symposiums are being established in an effort to bring greater industry focus, understanding, and action regarding the subject of sustainability. Nominations can be placed at sikkens.net. They will be accepted through February 28, 2012.
U.S. Auto Parts’ Stock Hits New Low Shares of U.S. Auto Parts Network hit a new 52-week low on October 26. The stock traded as low as $3.66 during mid-day trading and last traded at $4.06. The stock previously closed at $5.10. A number of equities research firms have also recently weighed in on the stock. Analysts at RBC Capital (NYSE: RY) cut their price target on shares of U.S. Auto Parts Network from $10.00 to $8.00 in a research note to investors on October 26. They now have an “outperform” rating on the stock. Analysts at Craig Hallum downgraded shares of U.S. Auto Parts Network from a “buy” rating to a “hold” rating in a research note to investors on October 26. Also, analysts at Barrington Research reiterated an “outperform” rating on shares of U.S. Auto Parts Network in a research note to investors on October 31. U.S. Auto Parts Network, Inc. (U.S. Auto Parts) is an online provider of aftermarket auto parts, including body parts, engine parts, performance parts and accessories. The Company sells its products, identified
as stock keeping units (SKUs), to individual consumers through its network of Websites and online marketplaces. U.S. Auto Parts Websites provide customers with a selection of approximately 975,000 SKUs with detailed product descriptions and photographs. It has developed a product database, which maps its SKUs to product applications based on vehicle makes, models and years. The Company’s principal Websites are located at www.autopartswarehouse.com and www.partstrain.com, and its corporate Website is located at www.usautoparts.net. The body parts category is primarily comprised of parts for the exterior of an automobile. The engine parts category is comprised of engine components and other mechanical and electrical parts, which are often referred to as hard parts. U.S. Auto Parts Network has a 52 week low of $4.17 and a 52 week high of $9.97. The stock’s 50-day moving average is $5.26 and its 200day moving average is $6.49. The company has a market cap of $123.8 million.
Women Drivers at Greater Risk in Car Crashes, Says Study A new report by the American Journal of Public Health finds that female drivers are at a greater risk of injury or death when involved in car crashes, because seatbelts and other lifesaving devices installed in cars are not designed for their bodies, according to reports made by ABC News. The report said that on average, women are shorter, lighter, tend to sit in different positions and drive newer passenger cars when compared with men. Because of these factors, the odds of a woman sustaining an injury while wearing a seatbelt were 47 percent higher than for men wearing seatbelts. One reason safety systems are designed more for the male population is that men are three times more likely to be involved in a car crash that leads to serious or fatal injuries. In recent years, however, there has been an increase in female drivers getting into these types of accidents. Although Clarence Ditlow of the Center for Auto Safety says that the study had the right concept, it doesn’t apply to today’s vehicles. The researchers focused on crashes (and cars) between 1998 and 2008. All of the cars used in the study were an average of six years old. “The average life of a car is around 12 years,” said Ditlow. “The study would have a lot more value if it
were limited to 2000 and later model year vehicles to make sure all vehicles had female friendly airbags,” he said. Since new 2012 models are coming out now, some of the cars used in the study are almost 20 years old. “There wasn’t even a dynamic side impact test standard in effect in 1992,” said Ditlow. Ditlow also said that while the study did highlight the disparity between the risks for male and female drivers, that’s something the government and industry have been working on over the past three decades. The authors of the study said in a statement that “female motor vehicle drivers today may not be as safe as their male counterparts; therefore, the relative www.autobodynews.com higher vulnerability of female drivers … CHECK IT OUT! when exposed to moderate and serious crashes must be taken into account.”
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Daimler to Produce Additional Model at the Mercedes-Benz Tuscaloosa, AL, Plant Daimler will further expand its US plant in Tuscaloosa, Alabama, the automaker announced; as of 2015, an entirely new Mercedes-Benz model will roll off the production line as its fifth product. The plant has been the traditional production site of the brand’s M-, GL-, and R-Class SUVs and will also build the C-Class for the North American market beginning 2014. For the production of the new model, Daimler will additionally invest $ 350 million, and will create some 400 further jobs at the plant. Dieter Zetsche, Chairman of the Daimler Board of Management and Head of Mercedes-Benz Cars said, “This new model from the Tuscaloosa plant is an important element of our growth strategy. It is one of the ten additional models which we will introduce within the next four years alone across all segments.” Referring to the Tuscaloosa plant’s role within the global production network of Mercedes-Benz Cars, Zetsche added: “At the same time, we are systematically broadening our manufacturing footprint in the NAFTA region.”
Robert Bentley, Governor of the State of Alabama said, “Since the time Mercedes-Benz chose Tuscaloosa County for its first US assembly plant 18 years ago, the company has proven to be an outstanding partner for the state. We join MBUSI in celebrating this milestone, and welcome the hundreds of jobs this announcement brings to Alabama.” Just earlier this year, on the occasion of the Job #1 ceremony of the new Mercedes-Benz M-Class in July, Daimler had announced the decision to invest more than $2 billion in the Tuscaloosa plant. In total, investment in the plant between 2010 and 2014 will thus amount to $2.4 billion, while the number of newly created jobs will add up to 1,400. Markus Schaefer, President and CEO of MBUSI, commented on these decisions: “The entire MBUSI team is proud of its role in the success of the models made in Tuscaloosa. We are looking forward to making further important contributions to the product offensive of Mercedes-Benz.”
Auto Injury Losses in N.Y. Metro Area Rose 70% in Last Decade Personal injury protection (PIP) claims closed in 2010 show that claimed losses for medical expenses, lost wages, and other expenses from auto accident injuries in the New York City area rose 70 percent over the past decade, according to Insurance Journal. This surpasses the 49 percent hike in medical care inflation over the same period. The findings were reported by the Insurance Research Council in Malvern, Pennsylvania. The average claimed loss per PIP claimant in the New York metro area was more than double the average loss among claimants from the rest of the state, $15,086 compared with $6,870, the study found. The report says underlying this disparity are dramatic differences in claiming behavior between upstate and downstate claimants. Claimants from the New York City metro area were much more likely to visit chiropractors, physical therapists, and acupuncturists, to receive expensive diagnostic procedures, to report durable medical equipment expenses, to be treated in pain clinics, and to hire attorneys. Statewide, nearly one in four (23 percent) claims in the study involved the appearance of claim abuse—either fraud, material misrepresentation of the facts of the claim; or buildup, inflated medical or other expenses in an otherwise legitimate claim. Claims from the New York City metro area were more than four times as likely to involve apparent abuse, 35 percent compared with 8 percent in the rest of the state.
The study identified Brooklyn and Queens as particular hotspots for abuse. More than half (52 percent) of apparent abuse claims stemmed from accidents occurring in either Brooklyn or Queens even though these two boroughs accounted for only 28 percent of all claims in the study. The study also highlighted the role medical providers play in the current wave of no-fault fraud affecting the state. In addition to detailing the claimants’ treatment patterns, the study also looked at the percentage of medical providers who produce bills with charges in excess of the state’s fee schedule, hire attorneys, and file lawsuits. “This report further details the problem of claim abuse in New York, especially unscrupulous medical providers who overtreat and overcharge claimants and their insurers,” said Elizabeth Sprinkel, senior vice president at the Insurance Research Council. “Even when the excessive charges can be mitigated, the costs of combating these fraudulent activities are further driving up the price of insurance for all consumers in the state.” The study examined detailed claim information from over 4,500 claims closed in 2010. Ten insurers, representing 70 percent of the private passenger auto insurance market in New York, participated in the study. The Insurance Research Council is a non-profit division of the American Institute for Chartered Property Casualty Underwriters and the Insurance Institute of America.
Caliber Collision Centers has joined the Collision Repair Education Foundation’s Industry Leadership Circle donor recognition group through a $10,000 donation. This donation will help provide educational support to post-secondary collision students at Universal Technical Institute in Houston and Sacramento this spring. “We are proud to support collision repair students at Universal Technical Institute in Houston and Sacramento who will become the future leaders of the collision repair industry,” stated Mark Sanders, Caliber Collision Centers Chief Operating Officer. “Through the Collision Repair Education Foundation, we are committed to becoming a leader in supporting collision repair students throughout California, Arizona, Nevada and Texas as we continue to grow into the collision repair provider of choice in every community we serve.”
Collision Repair Education Foundation Executive Director Scott Kruger said, “Thanks to Caliber Collision Centers for supporting the Collision Repair Education Foundation and joining our efforts in supporting collision repair school programs and their students. Through Caliber’s donation, educational opportunities for local collision students will be enhanced. The Industry Leadership Circle donor recognition designation highlights the extraordinary commitment of industry organizations and individuals to investing in the future of the industry. We welcome Caliber Collision Centers to this group of industry leaders.” For more information please visit www.calibercollision.com.
Caliber Collision Centers Joins Collision Repair Education Foundation’s Industry Leadership Circle With $10K Donation
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 51
Continued from Front Page
Calif. DOI Meeting
Legal division and attended by 50–60 invitation-only repairers, insurers, and representatives of both OE and Aftermarket parts manufacturers. In a letter to invited participants sent to body shops, insurers and aftermarket parts vendors and manufacturers, the Commissioner’s office wrote: “The purpose of these discussions is to permit certain interested and affected persons an opportunity to present statements or comments with respect to the attached draft regulations text.” The draft regulations largely pertain to the specification and use of aftermarket parts, but also include new requirements for adjusting estimates as well as consumer disclosures and remedies in the event that a defective part is used for a repair. See sidebar. At times heated, comments made at the meeting reflected clear differences between aftermarket advocates and those representing the OE manufacturers. At one point parts certification was introduced, but it was pointed out that the issue at hand was not certification, but insurer accountability. Gene Crozat, the owner of G&C Auto Body with seven Northern California locations, attended the meeting and offered his perspective prior to the presentation. After reviewing the proposed changes, Crozat recognizes that the Commissioner is addressing a volatile subject and questions some of the language within the contemplated revisions. “I fix 1,000 cars every month and at least 70% of them contain aftermarket parts, prescribed by the insurance companies,” Crozat said. “In many cases, the aftermarket parts are equal in quality when compared to factory parts and price is always a huge issue. By using aftermarket parts many cars that would have been totaled can be fixed. For example, a bumper on a 1998 Toyota Corolla from the factory costs $239, but I can get a comparable set for $74 from the aftermarket. We need the aftermarket to provide competition for the OEMs. Can you imagine what factory parts could cost if there was no aftermarket?” Crozat questions the word “defective” in the proposed revisions, he said. “They need to be more specific there, because it’s too loose and open to interpretation. Who is going to determine that these aftermarket parts are defec-
tive and what does defective mean? There is just too much wriggle room here and that needs to be addressed.” Overall, Crozat lauds the Insurance Commissioner’s efforts toward clarifying the factory vs. the aftermarket dilemma, he said. “The 500-lb. gorilla in this industry is the labor rates issue, but this is a good start and we’ve needed a meeting like this for quite some time. Opening up dialog and sharing ideas is always important and the DOI is doing it the right way.” Son Sean Crozat, manager of G&C’s Santa Rosa location, said that it all comes down to the consumer. “The market will take care of itself. If the majority of the aftermarket parts out there were truly defective or inferior, body shops wouldn’t use them. If all these damaged cars were totaled by the insurance companies, rates would go up and the customer would suffer the most.” Gigi Walker—owner of Walker’s Auto Body and Fleet Repair in Concord, and the Past President of the CAA and former president of the East Bay CAA’s chapter, said prior to the meeting that she was enthused about the positive things that could result. Before the meeting she told Autobody News: “I hope these new regulations proposed by Commissioner Jones will better hold accountable the parts that don’t work to the insurers,” she said. “As you know, many shops don’t get reimbursed for parts that don’t fit properly. These proposed revisions just might help the collision repairer to recoup the costs associated with ill-fitting aftermarket parts. These might not cover a DRP contract position with an insurer/collision agreement, but by Commissioner Jones opening up the conversation it’s definitely good for both sides of the industry. I’ve never seen this before, so it’s very promising. “The OEMs have procedures in place for the replacement/welding of certain components on vehicles and to make sure that these are mandatory in the written estimate and in the repair process are crucial in delivering a quality repair to the consumer. I hope some of the changes make the repair process for the collision repairer and consumers better, because that’s what it is all about. The first change adds more specific requirements for estimates written by insurers. Current law simply requires insurers to write an estimate that will allow the repairs to be made in ‘a workmanlike manner.’” Taking a more forceful position
52 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
was industry trainer and Autobody News columnist, Toby Chess, who continues to maintain that the return rate on even certified aftermarket parts is unacceptably high. Chess maintains that shop owners are too intimidated by insurers and parts suppliers to complain about any parts that don’t fit correctly. At the meeting he asked those in attendance to blink their eyes to graphically demonstrate the time required for an airbag to detonate in what may be a life saving instant. His implication was clear—any mismatched component may impact the millisecond timing of an airbag deployment. The proposed DOI regulations would require an estimate to be written “which will allow for repairs to be made in accordance with trade standards for good and workmanlike, mechanical, autobody and frame repairs and shall include, but not he limited to, repair procedures performed in accordance with original equipment manufacturer service specifications or, if manufacturer specifications and procedures are not available, nationally distributed and periodically updated service specifications that are generally accepted by the auto body repair indus-
try. No insurer shall willfully depart from or disregard accepted trade standards for good and workmanlike repair in the preparation of claim settlement offers or estimates prepared by or for the insurer. Insurers shall not prepare an estimate that deviates from the collision repair estimating software guidelines for use and repair.” “In addition, if an insurer should choose to adjust a shop’s estimate, newly proposed regulations would require the insurer to detail each adjustment made to the shop estimate along with the cost associated with each adjustment.” In the proposed rules dealing with aftermarket parts, insurers would be required to communicate in writing that it will warrant any aftermarket parts used to be of like kind, quality, safety, fit and performance as original equipment parts. Should a part be found to be defective or unsafe, the proposed rules would require insurers to “immediately cease requiring the use of these parts” and notify the estimating software provider and request the part be removed from the estimating software. See Calif. DOI Meeting, Next Page
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Proposed California Regulations Discussed at DOI Meeting
STATE OF CALIFORNIA DEPARTMENT OF INSURANCE 45 Fremont Street, 21st Floor San Francisco, California 94105 October 20, 2011
REGULATION FILE: REG-201100024 Amend Article 1 of Subchapter 7.5 of Chapter 5 of the California Code of Regulations, as follows: Amend FCSPRs Section 2695.8(f): (f) If partial losses are settled on the basis of a written estimate prepared by or for the insurer, the insurer shall supply the claimant with a copy of the estimate upon which the settlement is based. The estimate prepared by or for the insurer shall be of an amount which will allow for repairs to be made in accordance with trade standards for good and workmanlike, mechanical, auto body, and frame repairs and shall include, but not be limited to, repair procedures performed in accordance with original equipment manufacturer service specifications or, if manufacturer specifications and procedures are not available, nationally distributed and periodically updated service specifications that are generally accepted by the autobody repair industry. No insurer
shall willfully depart from or disregard accepted trade standards for good and workmanlike repair in the preparation of claim settlement offers or estimates prepared by or for the insurer. Insurers shall not prepare an estimate that deviates from the collision repair estimating software guidelines for use and repair. a workmanlike manner. If the claimant subsequently contends, based upon a written estimate which he or she obtains, that necessary repairs will exceed the written estimate prepared by or for the insurer, the insurer shall: (1) pay the difference between the written estimate and a higher estimate obtained by the claimant; or, (2) if requested by the claimant, promptly provide the claimant with the name of at least one repair shop that will make the repairs for the amount of the insurer’s written estimate. The insurer shall cause the damaged vehicle to be restored to its condition prior to the loss at no additional cost to the claimant other than as stated in the policy or as otherwise allowed by law. The insurer shall maintain documentation of all such communications; or, (3) reasonably adjust any written estimates prepared by the repair shop of the claimant’s choice and provide a
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copy of the adjusted estimate to the claimant and the claimant’s repair shop. The adjusted estimate provided to the claimant and repair shop shall be either an edited copy of the claimant’s repair shop estimate or a supplemental estimate. The adjusted estimate shall identify each adjustment and the cost associated with each adjustment made to the claimant’s shop’s estimate. Amend FCSPRs section 2695.8(g) as follows: (g) No insurer shall require the use of non-original equipment manufacture replacement crash parts in the repair of an automobile unless: (1) the parts are at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit, and performance; (2) insurers specifying the use of nonoriginal equipment manufacturer replacement crash parts shall pay the cost of any modifications, inspections, and tests to the parts which may become necessary to effect the repair; and, (3) insurers specifying the use of nonoriginal equipment manufacture replacement crash parts warrant that such parts are of like kind, quality, safety, fit, and performance as original equipment manufacturer replacement crash parts. The insurer must disclose in writing, in any estimate prepared by or for the insurer, the fact that it will warrant that such parts are of like kind, quality, safety, fit, and performance as original equipment manufacturer replacement crash parts ; and, (4) all original and non-original manufacture replacement crash parts, manufactured after the effective date of this subchapter, when supplied by repair shops shall carry sufficient permanent, non-removable identification so as to identify the manufacturer. Such idenContinued from Previous Page
Calif. DOI Meeting
Likewise, if a CAPA part is found to be defective the law would require CAPA to be notified. Finally, the proposed regulations contain language requiring that “insurers specifying the use of non-original equipment manufacturer replacement crash parts that are found to be defective, unsafe, or do not otherwise comply with this section, shall pay for the costs associated with loss of use or rental car expenses caused by the use of such part.” After the meeting, David McClune, Executive Director of the CAA
tification shall be accessible to the greatest extent possible after installation; and, (5) the use of non-original equipment manufacturer replacement crash parts is disclosed in accordance with section 9875 of the California Business and Professions Code. (6) insurers specifying the use of nonoriginal equipment manufacturer replacement crash parts that are found to be defective, unsafe, or do not otherwise comply with this section, shall immediately cease requiring the use of these parts and shall notify the collision repair estimating software provider, or other estimating entity it contracts with, of the part and request this part be removed from the collision repair estimating software. (7) insurers specifying the use of nonoriginal equipment manufacturer replacement crash parts, which are certified by the Certified Automotive Parts Association (CAPA) and are found to be defective or unsafe, shall file a Quality Complaint Report with the Certified Automotive Parts Association (CAPA); (8) insurers specifying the use of nonoriginal equipment manufacturer replacement crash parts that are found to be defective, unsafe, or do not otherwise comply with this section, shall pay for the costs associated with returning the part and the cost to remove and replace the non-original equipment manufacturer part with an original equipment manufacturer part. (9) insurers specifying the use of nonoriginal equipment manufacturer replacement crash parts that are found to be defective, unsafe, or do not otherwise comply with this section, shall pay for the costs associated with loss of use or rental car expenses caused by the use of such part.
released the following statement: “The California Autobody Association supports the California Department of Insurance’s efforts to clarify and improve current laws and regulations that protect consumers from some insurers who prepare estimates that do not meet standards for good and workmanlike repairs, and those insurers that require poor quality and unsafe aftermarket replacement crash parts in a repair of a vehicle. The CAA will continue to work with the DOI to further these improvements.” Inquiries about the meeting should be directed to the department’s Teresa R. Campbell; Phone number: 415538-4126; E-mail: teresa.campbell@insurance.ca.gov.
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 53
Audatex Holds 9th Semi-Annual Strategic Advisory Council Meeting Audatex North America, Inc., a global provider of software and services to the automobile insurance claims processing and collision repair industry, hosted its ninth semi-annual Strategic Advisory Council meeting in Las Vegas on November 1. The one-day conference, which included presentations on industry trends, new products and future strategic directions for technology, was attended by a rich cross section of leaders from the automotive insurance claims and collision repairer sectors along with the Audatex senior management team. “Our goal is to develop innovative technologies that increase the efficiency and accuracy of the automotive insurance claims and collision repair processes—and an important part of our product development initiative is ongoing customer feedback,” said Wolfgang Ahrens, Managing Director, Audatex U.S. “The Strategic Advisory Council provides us with the right forum to accomplish this goal. At these meetings, we give customers the opportunity to discuss their business concerns, and we also focus on presenting ideas and resolutions, and gaining alignment on priorities.” “The Council provides an excellent opportunity for its members to share ideas and discuss current issues. We get an opportunity to learn more about Audatex’s products and services and help mold the future of our indus-
try,” added Ed Weidmann, Property and Casualty Claims Consultant, State Farm Insurance Company. According to Rick Tuuri, Vice President of Industry Relations, Audatex, U.S., recent Audatex technology additions in the areas of body shop management and repair tracking, resulting from the company’s NewEra Software and See Progress, Inc. acquisitions, were driven by strategic input from members.
The Ninth Audatex Semi-Annual Strategic Advisory Council Meeting drew in leaders from the automotive insurance claims and collision repairer industries along with the Audatex senior management team.
“It is critical for us to engage in meaningful discussions with our customers as well as industry thought leaders. In addition to spending time focused on the voice of the customer, the November meeting emphasized hot technology topics such as repair tracking, first-touch resolution and performance and business management solutions,” said Tuuri. The next Audatex Strategic Advisory Council meeting will be held in Spring 2012. As part of an ongoing di-
alog with industry stakeholders, Audatex also hosts a Technical Advisory Council - comprised of insurance and repair leaders - for which the primary focus is to get technical industry and customer input on the Audatex Estimating database and product suite. Active today across six continents, Audatex provides world-class claims solutions that help customers automate their processes; managing millions of claims each year efficiently and effectively, and resolving billions of dollars in claims settlements. Audatex’s growing footprint also extends into the automotive-related financial services and medical claims solutions markets. As part of the Solera group of companies, Audatex, AUTOonline, Explore, Market Scan, Sidexa, Informex, Inpart, ABZ, Hollander, HPI and IMS draw on unique global experience to develop and deliver the latest technologies, market intelligence and best practices on a local level. For more information, please refer to the Company’s website at www.audatex.us .
Maaco Convention Celebrates 6% Increase in Same Store Sales
Maaco Collision Repair & Auto Painting franchisees celebrated at their annual convention with 2011same store sales more than 6% higher than the prior year. “This has been an exciting time in the growth of Maaco as evidenced by the success of our new merchandising system, the continued enhancement of a strong ad campaign and sales performance that confirms we are really onto something great,” Chairman and CEO Ken Walker said during the gathering at the Atlantis resort in the Bahamas. Maaco President David Lapps said, “A major focus of our advertising and merchandising efforts is to inform the public that Maaco is North America’s Bodyshop for all of their collision, body repair and auto painting needs.” “One way Maaco centers demonstrate their competence is through CSi Complete, the same customer satisfaction indexing company relied upon by insurance companies and major fleets.” Maaco Collision Repair & Auto Painting (http://www.maaco.com) repairs close to 500,000 vehicles annually. The 450 franchises have restored all types of vehicles for nearly 40 years.
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Rich Evans Updates SCRS at 2011 SEMA Show
The already dynamic atmosphere pervading the Society of Collision Repair Specialists’ (SCRS) booth at the 2011 SEMA Show was kicked up a notch with a very special appearance by custom fabricator and TV personality Rich Evans. In an exclusive interview with SCRS Executive Director Aaron Schulenburg (see www.autobodynews.com), Evans-owner of Rich Evans Designs and Huntington Beach Bodyworks known nationally for his custom hot-rod designs and automotive builds, distinctive custom painting and airbrush techniques and his work on television shows on the SPEED Channel-held forth on a number of topics relevant to collision repairers. In front of an attentive audience, Evans spoke about his journey from successful collision shop manager to television personality; what
it takes to be a successful collision repairer; and his own beginnings in the business, a subject that kicked off the interview. A third generation repairer literally born and raised in the industry, it all came together for Evans when Dave Popkins, a friend of his father that ran a collision repair facility in Sacramento, California, took him under his wing. “Dave was the first person to let me know just how good I was and how good I could be if I kept at it,” Evans recounted to Schulenburg. “That’s why I feel so strongly about the importance of training and mentoring in the industry. Good technical training is essential to quality collision repair. One of the reasons the SEMA Show is impressive are the training opportunities and exposure to ideas it provides. SCRS’s Repairer Driven Education (RDE) is a good example.”
54 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
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New Aluminum Body Will Slash Weight of 2013 Mercedes-Benz SL by more than 300 lbs els. And while steel isn’t being abandoned entirely, German engineers have shifted to the use of extremely
Mercedes-Benz says that in the planned launch of an all-new version of the SL line, the 2-seater will migrate to a new, lightweight aluminum body. That should shave nearly 250 pounds off the weight of the sports car, but the maker plans additional efforts that will bring the overall curbweight of the 2013 Mercedes-Benz SL550 model down by as much as 310 pounds. “The effect is rather as if a heavyweight-class passenger had got out of the car and taken his heavy flight luggage too,” explains Mercedes engineer Dr Thomas Rudlaff. The overall weight of the next SL is expected to drop by more than 300 pounds. Along with the extensive use of aluminum in the next-gen SL’s body and chassis, Mercedes is integrating other lightweight materials, such as the magnesium used in the rear pan-
high-strength alloys—for components such as the A-pillars—that allow further weight reductions while still improving the strength and stiffness of the overall body and chassis. The new SL will reverse the trend Mercedes, like many of its competitors, has followed in recent decades, each new model getting bigger and
Pro-Spray® Automotive Finishes, a European color, coatings and technology company for the automotive aftermarket, recently introduced a tool
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Mercedes will slash the weight of its 2013 SL roadster by using a lightweight aluminum body.
heavier as new content is added to the SL which must also meet ever more stringent government safety regulations. But with new fuel economy standards going into effect in the U.S., Europe and other key markets cutting weight has become critical. Porsche has cut about 100 pounds out of the new 911 it recently introduced. “The result is perceptible and measurable. Less weight means more dynamism and less consumption. In other words: the motoring enjoyment increases and the environmental burden sinks,” said Mercedes’ Rudlaff. There are other big changes in store for the 2013 Mercedes-Benz SL, the company has revealed, including the new Magic Vision Control which it describes as an “adaptive windscreen washing system.” Instead of the usual spray of water the cleaning
fluid will be channeled through lasercut openings on the wiper blades themselves.
ular domestic and import colors, sprayed in Pro-Spray paint, and available in both solvent and waterborne. As part of the industry’s most complete and convenient color-matching system, Navigator is integrated with more than 282,000 custom blended formulas available on the PaintXpert Coatings Management Software. “Navigator is the answer to variances,” said Tom Gardner, director of business development. “Jobbers and shops will find that Navigator makes color selection easier, faster and more accurate than ever before.” The Navigator precision color selection system includes a stylish, slimprofile color box featuring more than 5,100 swatches sprayed with ProSpray paint and arranged in chromatic order. Users who don’t know a vehicle’s color code start by selecting a deck of swatches from the box. The user then compares the swatches against the vehicle to find the best match, locates the number on the back of the swatch and enters it into PaintXpert. The software generates a paint mix formula, enabling the user to create a sprayout to compare to the vehicle for accuracy. In cases where the user already has the vehicle color code, the process
is even simpler. Users enter the color code into the PaintXpert software search box and, if there is a corresponding Navigator swatch, they can choose either the solvent or waterborne formula. The result is increased productivity, less waste and greater color
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The overall weight of the next SL is expected to drop by more than 300 pounds.
And for those who like the boom of a good audio system, the maker says the new body shell will allow it to mount its new FrontBass subwoofers in front of the footwell, rather than in back as is typical with today’s cars. That approach, Mercedes claims, will make it easier to enjoy good audio even with the SL’s top open.
accuracy resulting in a better-looking finished product. In addition, the easy-to-use Navigator system was designed with scalability and future updates in mind. “This system is just the latest offering from Pro-Spray that supports our customers’ ability to provide outstanding automotive finishes while improving the quality and efficiency of their own operations,” said Laura Yerkey, marketing manager. To order a Navigator Precision Color Selection System, contact a ProSpray® Automotive Finishes representative or visit www.ProSprayFinishes.com.
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 55
GM to Revive Former Saturn Plant in Spring Hill, TN, Will Invest $183 Million General Motors Co. announced on November 21 that it will begin producing the Chevrolet Equinox, the automaker’s midsized SUV, at its Spring Hill, TN, plant next year, according to the Shelbyville TN Times-Gazette. An event attended by local politicians including TN Gov. Bill Haslam, both of Tennessee’s U.S. senators and United Auto Workers president Bob King was held November 21 at the plant to make the vehicle announcement; officials pressed a button to symbolically restart the production line. The Detroit-based automaker will invest $61 million and create 685 jobs to turn the assembly plant—idled in fall 2009—into an “ultra flexible” factory capable of building a range of models, said Cathy Clegg, GM’s vice president of labor relations; a second phase of work will invest $183 million and create 1,200 jobs producing a yetto-be-named mid-sized GM vehicle starting in the 2015 model year. The plant will augment production at other factories for popular cars and trucks in short supply. It will start building the Chevy Equinox in the second half of 2012, supplementing output of the crossover that is currently built at two plants in Canada, according to the Detroit News. Despite adding shifts and overtime, GM has struggled to meet demand for the Equinox, a shortfall that has frustrated some buyers. Through October, GM has sold 162,283 Equinoxes, up 45 percent over last year, according to AutoData Corp. The re-opening of the plant was announced earlier this year, but it was unclear exactly what the plant would produce. “This is a big deal to us,” said Haslam, praising the original recruitment of GM to Tennessee by Lamar Alexander, who was then governor and who now serves as U.S. Senator. Alexander said the plant’s location, technology and workforce are conducive to automobile production. “Tennessee has become the new hub for the American automobile industry,” said Alexander. Gary Casteel, of United Auto Workers Region 8, said he told his wife about the announcement and she remarked that it was appropriate that a job announcement take place right before Thanksgiving. “Thanksgiving’s been changed to today,” responded Casteel.
Casteel praised the government assistance, which he referred to as bridge loans, which allowed the company to survive. He said that if GM and Chrysler had been allowed to fail in 2009, they would have brought the third major U.S. automaker, Ford, down with them. The Spring Hill facility was originally opened in the 1980s as the headquarters and first assembly plant for GM’s newly-created Saturn division. GM opened the factory with a different set of work rules to establish what it described as a “different kind of car company.” Eventually, workers at the plant were reabsorbed into the union’s national agreement and the plant started building Chevys. A 2004 labor agreement brought the Saturn employees under the same contract as their counterparts in other GM divisions and opened the door for changes at the plant, with Saturn production moving elsewhere and other GM models moving to Spring Hill. Assembly operations were shut down at Spring Hill in 2009, the same year that GM entered bankruptcy protection and received federal assistance. The end of assembly operations at Spring Hill resulted in layoffs for more than 2,000 workers. Another 800 workers relocated to GM plants in other states, including many who followed production of the Chevy Traverse to Lansing Delta Township in Michigan. About 280 workers still have recall rights to the Spring Hill factory, located south of Nashville. Remaining slots will be filled by new hires earning the entry-level wage of $14 an hour. Hiring will begin in mid-December. Clegg said the Equinox’s addition to Spring Hill won’t affect production at GM’s two Canadian plants. The Saturn brand, long since moved away from Spring Hill, was discontinued by GM a year ago. Even so, area residents often still refer to the GM facility as “the Saturn plant” out of force of habit. Clegg said the plant’s ability to quickly shift from producing one model to another will be a key to GM’s strategy of speed and flexibility. “It’s the only way that we can compete in a very global economy,” said Clegg. Haslam acknowledged that the
56 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
popular Equinox is also being produced at other GM plants. “When it’s rolled out here in Spring Hill, it will be the very best Equinox ever made,” said Haslam. Both GM and UAW officials praised the agreements between the company and the union that made the re-opening of the plant possible. “We have permanent workers, permanent wages and permanent benefits,” said Casteel. Union officials boasted that manufacturing jobs were being preserved in America rather than sent abroad. “This company is about what Spring Hill is about,” said UAW vice president Joe Ashton, “the middle class.” The union pushed to bring new work to Spring Hill as part of this year’s contract talks between the UAW and GM. The four-year agreement reached in September secures 6,400 new or saved jobs for GM’s unionized workers, and bumps pay for entry-level workers by about $3-anhour during the life of the contract. In exchange, UAW members
gave up cost-of-living increases and yearly pay raises for veteran workers. That helped keep the company’s labor costs growing at 1 percent annually, its lowest rise in decades. “We’re showing the world that collective bargaining does work when people have a voice in the decisions,” King said. “You come out with better decisions.”
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CIC Approves New Recommendations for Shop-Insurer Relations CollsionWeek has reported that articipants at the Collision Industry Conference (CIC) this month in Las Vegas voted to adopt a set of recommendations for “beneficial and productive” repairer-insurer relationships. The recommendations were drafted by the CIC Insurer-Repairer Relations Committee. Said Chris Andreoli of Progressive Insurance, “I’ve already used this internally to say, ‘Hey, look, this is the direction things are going; are we acting in this sort of manner?’ ” Andreoli participates on the committee that crafted the document, and said during a panel discussion on the draft document at the Las Vegas meeting, “No, it’s not law, but these things make sense for business relationships.”
The document lays out about a dozen suggestions for what CIC views as key elements of a productive shop and insurer relationship. Some of the elements apply solely to direct repair relationships; the document, for example, states that both shop and insurer should each know what is expected from each other in order to participate in a referral program, and each side should inform the other of the reasons why participation in the program is being terminated. Other elements listed apply equally to shop-insurer relationships outside of a DRP. These include “a streamlined, electronic communication process between the insurer and repairer,” and communication with the consumer to ensure the consumer
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understands the relationship between the shop and insurer and is aware of his or her repair options. Rick Tuuri, chairman of the Insurer-Repairer Relations Committee, said the elements in the document were based on “trade practice proposals” crafted by another CIC committee and passed along to his committee for further action. Tuuri said the approved document has yet to address some of the earlier proposals, including key issues related to vendor selection, indemnification language in DRP agreements, and adherence to repair standards. “We’ve kind of defined this as a starting place,” Allstate’s Randy Hanson said of the document. “It’s not perfect. It’s not what everyone wants it to be. But in my mind it’s a place to start.” Another committee member, toState Contribute GeorgeWant Avery of Farm said heto
likes the document because while most people, including those within his own company, would look at it and see common-sense guidelines that are already in place, he knows from his involvement in CIC and other industry groups that such practices are not always followed. “I think the company that I work for will say, ‘Yeah, that sounds reasonable. I don’t have a problem with that,’” Avery said. “The real question is: Is it happening or is there any deviation from that? We need to reach out and make sure it’s happening.”
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CIC Parts and Materials Committee Looks at VIN Tags and Labels
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At CIC in Las Vegas, the CIC Parts tomaker’s logo. publisher@autobodynews.com publisher@autobodynews.com and Materials Committee gave a presNantau pointed out that for auentation on VIN tags, emissions-re- tomakers the labels represent copylated labeling and some other labels rightable content. that collisionPromote repairers are tasked with with“There are other companies out your business Promote your business replacing on repaired vehicles. there that also reproduce these laan exclusive featuring exclusive Committee memberarticle Steve bels,” Nantauan said. “They arearticle not li- feat Audi Nanta, Collision and Light Repair censed to do so. They don’t use Genuine Parts your products or services. your products ortheservi Engineering Supervisor at Ford logos, in most cases. But in some of To advertise The source for timely Motor Company, said label replace- these cases, the logos are required to call Joe Momber at: information that every ment requirements can vary based on be on the labels. I can’t speak for all Nothing else measures up.800-699-8251 state law. Nantau said most federal the OEMs, but in the case of Ford body shop needs! regulations require only that au- Motor Company, we think reproduce-mail: CALL: Joe Momber for details! for details! the labels on new ing these labels is Call a trademark injmomber@autobodynews.comtomakers include CALL 800-699-8251 cars, not that they be replaced on re- fringement, regardless of whether www.autobodynews.com paired vehicles. 800-699-8251they have a logo or800-699-8251 not. So it would Start Your FREE However, California does re- be our position that it’s something Mail Subscription. quire the replacement of some emis- that should be sourced from the OEM sions-related labels. Although in or from a licensed source only.” many cases the labels provide information can be helpful for vehicle Additional Comments by Nantau NEW Register Your Email forthat Our owners, replacing them can be a cus- Ford’s Nantau offered additional pertomer service issue for repairers as spective from the OEM side, stating well. that their main focus is to sell vehiPolicies regarding replacement cles. ynews.com at www.autobodynews.com labels vary by automaker, Nantau “Repairability comes way down said. He cited the vehicle certification on the list,” said Nantau. “There is a label, which is required on new vehi- major effort to reduce the cost of Order Audi Genuine Parts from these select Dealers cles by the National Highway Traffic ownership. For example, bolt-on Safety Administration, and which cer- parts versus welding. You will see a New Jersey Pennsylvania tifies that the vehicle meets all safety lot more parts that can’t be repaired and anti-theft requirements. It often because of the reduced weight in veincludes information like gross vehi- hicles. This doesn’t mean they won’t Audi Turnersville Audi Warrington cle weight, tire size and trim codes. be repairable, just that the repair cost TURNERSVILLE WARRINGTON Replacement certification labels for will be less.” 877-826-2558 215-343-4810 some vehicles are available though Nantau also noted that while the dealer, but Chrysler, Ford and most shops spend 20 percent of their 856-649-7185 Fax 215-343-5352 Fax General Motors have also authorized time writing the estimate and 80 perHours: M-F 8am - 5pm www.1800THOMPSON.com ECS Automotive Concepts to manu- cent on the actual repair, the need www.auditurnersville.com facture and sell replacement labels now is for 80 percent of the time to be that, like the originals, include the au- spent on building a “repair plan.”
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 57
SCRS and Collision Industry Raise over $3,200 for Operation Comfort’s Automotivation Program at the 2011 SEMA Show At the 2011 SEMA Show, taking place from November 1-4 at the Las Vegas Convention Hall, the Society of Collision Repair Specialists (SCRS) put its own unique spin on the tradition by “passing the helmet” for Operation Comfort’s Automotivation initiative; the overall fundraising effort resulted in the collection of over $3200 for the non-profit organization. Operation Comfort, located in San Antonio, Texas, provides support to U.S. service members who have been wounded in Afghanistan or Iraq and are receiving treatment at the Brooke Army Medical Center (BAMC). As a form of occupational therapy and career replacement, Operation Comfort runs a program entitled Automotivation where wounded service members rehabilitate through automotive-related activities such as rebuilding and restoring cars, trucks, and motorcycles on a ranch outside of San Antonio. Two vehicles the soldiers worked on as part of the Automotivation program, a 1957 Dodge Power Wagon used by the Army as a weapons carrier and a 1966 Cobra kit car, were on display at the SEMA Show. “Operation Comfort provides a great place to work with lots of space and tools I wouldn’t otherwise have access to, like a lift, power tools and a compressor,” said Sergeant Robert Dickey, an Automotivation participant who was at the SEMA Show. “It’s an opportunity to get out and do something I enjoyed doing before I got injured, plus it gives me the opportunity to consider doing something that I love for a living. I’m very thankful for that.” In an exclusive interview conducted by CollisionHub with SCRS Executive Director Aaron Schulenburg at the SCRS booth, Operation Comfort Executive Director Janis Roznowski expressed her gratitude for the industry’s efforts on behalf of the program. “A lot of our guys are gear heads, and Automotivation gives them a chance to leave the hospital and the barracks to do something they love,” Roznowski explained. “In the process, they may find a new career path opening up in front of them. We thank SCRS and the collision industry for their generosity. The money collected at this show is going to go to our next project, the restoration of a 1934 Ford Cabriolet.” Visitors to the SCRS booth on the SEMA Show floor couldn’t help but notice the upturned military helmets stuffed full of bills of various denominations; donations from visitors wishing to give back to those who are there to defend our country.
The helmets were also passed at Collision Industry Conference (CIC) and were visible in the hands of volunteers standing at the exit doors after the stirring Repairer Driven Education (RDE) Flawless Executions keynote by Afterburner Inc.’s Patrick “Lips” Houlahan. In addition, as part of a special tie-in with Afterburner’s military aviation inspired headline presentation, SCRS held a silent auction throughout the week at their booth for a set of three “Flawless Execution One-on-One” DVDs produced by Afterburner. “I was enthralled by the content of the RDE Afterburner presentation,” shared Boyd Dingman, Owner of Dingman’s Collision Centers in Omaha, Nebraska. “The message points were so relevant, and the simplicity of the practical application of the process really highlighted opportunities we may have been missing in the shop, and how we could start taking advantage of them when we got back home. I’m thrilled that I placed the winning bid on the DVD set. Since our business is comprised of multiple locations, I’m looking forward to utilizing the training in all three of my stores, to bring everyone up to speed on some of the process adjustments we are going to make; plus, it’s an honor to know the money is supporting such a great cause like Operation Comfort. I got to meet some of the soldiers in the program while at the SEMA Show, and it is great to know there is a program like that to help.” “This year’s SEMA Show was an unforgettable event for a lot of different reasons, but nothing really compares to the feeling you get when you help rally support around a worthwhile cause,” stated SCRS Chairman Aaron Clark. “Collision repairers have demonstrated time and again that the industry believes in community support and philanthropy, and it was great to see that on display yet again. Good luck to Operation Comfort, and thank you to the many industry professionals that contributed. Like those who serve our country in the military, you make us all proud.” If you have any questions or would like to speak with an Operation Comfort representative regarding their service, please e-mail info@operationcomfort.org or call 210-8260500. Additional information about SCRS is available at the SCRS Web site: www.scrs.com. E-mail SCRS at the following address: info@scrs.com.
58 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Continued from Page 10
UAW
get. Rather, the union has begun training organizers at the regional level for “informational picketing” at foreign dealerships. “We know it’s going to be a big process to organize the transplants,” Ashton said. The dealership action won’t involve actual picketing. Organizers will hand out leaflets extolling the benefits of union membership. Ashton declined to elaborate on the effort. King had hoped to launch a campaign to organize a transplant by the end of this year. But the efforts took a back seat this fall as the UAW negotiated new contracts with GM, Ford Motor Co. and Chrysler Group LLC. After reaching the final deal with Chrysler, King told reporters he doubted he would meet his year-end deadline. While the union has earmarked a portion of its $60 million strike fund for organizing, satisfactory discussions with workers at various
plants in Southern states have made it unnecessary to target any one company yet, King has said. In March, at its national bargaining convention, the UAW said it was enlisting a global army of activists to demonstrate against nonunionized U.S. plants perceived as violating workers’ rights. Union officials said the army will be unleashed when the union’s board targets a company. The union has not said when lobbying or picketing might begin. When that happens, union leadership said demonstration tactics will include protests at dealerships, corporate headquarters, major events and auto shows. The union created the Global Organizing Institute to recruit and train activists. According to King, the next step is already under way: regional training.
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MA Right to Repair Coalition Secures 2012 Ballot Spot Via Petition The Right to Repair Coalition announced October 21 that it has collected 106,658 voter signatures, exceeding the 68,911 required for the initiative to appear on the 2012 ballot in Massachusetts. Said Kathleen Schmatz, president and CEO of the Automotive Aftermarket Industry Association (AAIA): “We are very pleased with the growing support for Right to Repair on both the federal and state levels. The momentum building in Congress, coupled with the groundswell of support from voters in Massachusetts, demonstrates how important Right to Repair is to consumers, especially in a tough economy,” said Schmatz. “Right to Repair will help alleviate motorists’ financial burden by ensuring a competitive vehicle repair marketplace, allowing car owners to patronize the repair facility of their choice.” According to the Right to Repair Coalition, the voter initiative would, for the first time, allow consumers to access all of the non-proprietary repair information required to have their ve-
hicles repaired where they choose, at a new car dealership or an independent shop. The proposed law would level the playing field between the big car manufacturers’ dealerships and independent, neighborhood repair facilities, allowing the latter to finally be able to access the same non-proprietary automobile diagnostic and repair information that is currently only available to the manufacturers’ dealers and their new car dealerships. “It’s time that car owners have the right to get our vehicles repaired wherever we choose,” said Jeff McLeod of Marshfield, one of the signers of the ballot petition. “The growing support for this issue shows how important it is for consumers, especially in a difficult economy.”
Opposition from Automakers and Some Associations In September, when the Massachusetts Attorney General certified the proposed ballot question, the Association of Global Automakers (formerly the Association of International Automobile Manufacturers) said they were
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disappointed that the Right to Repair supporters have resorted to circumventing the Massachusetts legislature for passage of their bill. Association of Global Automakers President and CEO Michael J. Stanton said, “Efforts to promote this legislation have failed numerous times at the federal level, in several states and last year in the Massachusetts legislature. Today, Massachusetts Attorney General Martha Coakley certified all four Right to Repair petitions, permitting this legislation to move forward by way of the State’s public ballot initiative process. “Right to Repair legislation does not benefit the consumer, as proponents suggest, and has proven unnecessary time and again over the last 20 years. Access to the same diagnostic repair information auto manufacturers currently provide to their dealers already exists,” said Stanton. “We regret that advocates of the legislation are using the petition process as a last resort for bill passage after so many failed attempts.” The ASA continues to oppose Right to Repair legislation, saying adequate consumer protections already exist.
Consumer Groups Generally in Favor The Right to Repair Coalition includes consumer advocates like AAA and more than 2,000 independent repair shops, small businesses and retailers in communities across Massachusetts. The proposed Right to Repair law would keep vehicle repairs affordable for consumers by ensuring competition among repair facilities, say proponents. By leveling the playing field and increasing consumer choice, Right to Repair can save families an average of $300-$500 each year, according to an industry study. A recently released AAA Financial Automotive Repair Survey highlighted that many car owners can’t afford to pay for their repairs, thus, often forgoing having them done. This creates a safety hazard for themselves and others on the road. Right to Repair would help alleviate their financial burden by increasing competition and allowing motorists to choose the less expensive repair. Support for the ballot question continues to grow across the state as more car owners recognize that this law would directly benefit them by making it easier to access repair infor-
mation electronically, increasing their safety and convenience in obtaining affordable repairs. In addition to the rapid signature gathering, the Right to Repair coalition’s Facebook page continues to grow and has over 10,000 supporters. “Both parties are talking about jobs and the economy. Right to Repair is a jobs and affordability bill during this economic downturn,” said Sandy BassCors, executive director of the Coalition for Auto Repair Equality (CARE). “The automotive aftermarket employs nearly five million people nationwide and, unless the Right to Repair Act passes, many of those jobs could be downsized. And, as more Americans choose to keep their vehicles longer for financial reasons, Right to Repair is even more of a fiscal necessity for them.” Federal Legislation On the federal level, the Right to Repair Act was introduced into the 112th Congress by Reps. Edolphus Towns (D-NY) and Todd Russell Platts (RPA), and currently has 40 co-sponsors.
What the Act Says The Motor Vehicle Owners’ Right to Repair Act claims to protect “motoring consumers from a growing and potentially hazardous vehicle repair monopoly by requiring that vehicle manufacturers provide full access at a reasonable cost to all non-proprietary service information, tools and safetyrelated bulletins needed to repair motor vehicles. The legislation provides car companies with strong protections for their trade secrets, only requiring them to make available the same diagnostic and repair information they provide their franchised dealers to the independent vehicle repair market.” www.autobodynews.com For more information, visit CHECK IT and OUT! www.righttorepair.org www.massrighttorepair.com.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 59
BodyShopBids.com Processes $1.5 Million in Estimates in 5 mos. BodyShopBids, an online and mobile platform that enables consumers to solicit custom car repair estimates by uploading a photo, announced on Nov. 10 that it has written $1.5 million in body repair estimates within its first five months of service. The Lightbank-funded company launched in June 2011. Since then, BodyShopBids has partnered with more than 160 body shops in Chicago and saved its customers an average of 60 percent on each car repaired, the company claims. Accessible for free via iPhone, Android and the Web, BodyShopBids is the first of its kind to connect consumers who need auto body repairs with body shops through a unique bidding system. Consumers upload a photo of their damaged vehicles and receive custom quotes from nearby body shops within 24 hours. A personal concierge also educates consumers on the repair process. From there, the consumer chooses an estimate and books an appointment with the body shop. “We’re excited to experience such tremendous growth in a short period of time, and our goal is to continue to build on that success,” said Brad Weisberg, founder and president of BodyShopBids. “We’ve seen that
ALLDATA Celebrates 25 Years of Business
ALLDATA LLC, provider of automotive business solutions to professional mechanical and collision repair shops, is celebrating its 25th anniversary. “In 1986 our founders had a vision,” said ALLDATA President Jeff Lagges. “Since then, we have continued to lead the industry with innovative products that drive efficiencies and profitability throughout a shop’s operations. We like to say that we offer ‘counter-to-fender’ solutions, and it’s true. Our growth has been a direct result of anticipating needs and listening to our customers. We owe a great debt to our customers for helping us develop products that have a positive impact on their businesses.” In 2008, ALLDATA celebrated its 70,000th product subscriber, and just three years later the company announced a record 80,000 subscribers. Long-time ALLDATA employee, Patti Collins, said, “I have been with ALLDATA for 20 years, and I have seen many changes. Over the years, the one thing that remains the same is our commitment to our customers. We have never stopped developing products to meet their needs and continue to explore new ways to help them. That’s why I’m still here.”
there’s a demand for a service like ours-people want to be able to find reputable body shops nearby, choose the fairest price, understand what’s actually wrong with their car and book an appointment, all from the comfort of their own home. We want to expand what we’ve started in Chicago to other cities in the very near future.” Unlike other companies that provide auto repair estimates, BodyShopBids does not require detailed information on damage to the consumer’s car. The company works with local body shops to ensure they honor estimates and provide reputable service. BodyShopBids is currently active in Chicago, with plans to expand to Los Angeles and other U.S. cities in the upcoming months. BodyShopBids is a Chicago-based startup, funded by Lightbank, which provides a web and mobile platform to connect consumers who need auto body repairs with body shops through a unique bidding system. The company’s technology allows users to easily upload photos of damage vehicles and receive custom quotes from local body shops, all for free. To learn more about BodyShopBids, visit their YouTube demo video or website: www.BodyShopBids.com.
Collision Repairer Wins Welder at SCRS SEMA Booth
SCRS and its Repairer Driven Education (RDE) series created plenty of excitement on their own from November 1-4 at the Las Vegas Convention Center. One of the many reasons the Society’s booth was crowded with enthusiastic collision repair professionals was a series of prize drawings made possible through the participation of SCRS and its sponsors. One such prize was the CM253 MIG/MAG Welder donated by Car-OLiner®, and the lucky winner of the raffle for it was Glen Caudle, Owner of Glendale Collision in Saskatoon, Canada. “I couldn’t believe it when I received the call,” Caudle shared. “I’ve been coming to the SEMA Show for the past four years, but I’ve never won anything like this. I’m so happy to have won this from SCRS, and what makes it great is I already use Car-OLiner equipment in my shop. We can’t wait to put it to work!” To become eligible for the drawing, visitors to the SCRS booth had to pick up a “report card” listing all RDE sponsors and their booth locations within the show. The participant then had to visit each RDE sponsor’s exhibit, have a company representative stamp the card, and return the completed card to the SCRS booth for entry into the drawing.
60 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Barrett-Jackson President’s Custom Ford Fairlane Garners $700K
Back-and-forth bids escalated furiously on the 1964 Ford Fairlane at the recent Barrett-Jackson’s 4th Annual Las Vegas auto auction. Boldly painted in the striking “Red Hot Chili Pepper” hue from the Sherwin-Williams® Planet Color® Barrett-Jackson® Collector Color Series, the car was the top-selling vehicle of the event, garnering $700,000—and all going to one, very important charity.
The winning bidder showed his gratitude to those serving in the American military and their families, with one-hundred percent of the sale’s proceeds benefiting the Armed Forces Foundation, a national non-profit organization that provides support for wounded service members and their families, through Project American Heroes. Additionally, Barrett-Jackson waived its commissions on the sale, as it has on all charity sales in recent years. “Our men and women in uniform are on the front lines every day, and their families are continually called upon to put oth-
ers first. We at Barrett-Jackson feel strongly about this incredible group of people and amazing charity, and that’s why I am willing to give up one of my prized possessions to show how thankful I am,” said Steve Davis, President of Barrett-Jackson, and (previous) owner of the Fairlane. The car underwent hundreds of hours of restoration and detailing, and was a showstopper at the 2009 SEMA convention, where it was displayed at the Sherwin-Williams Automotive Finishes booth. It features a Roush Performance 427IR, 8-stack fuel injection 560 HP engine with a torque of 540 ftlbs and a Tremec TKO 6 speed. Its custom finish comes from the Sherwin-Williams Planet Color BarrettJackson Collector Color series—a line of optically enhanced automotive paints containing special combinations of highly reflective additives. The color, “Red Hot Chili Pepper” (#PCFP2), is one of 25 colors in the factory package, custom paint line. Planet Color Custom Paints and Finishes, including the Sherwin-Williams Planet Color Barrett-Jackson Collector Color series, are available at SherwinWilliams Automotive Finishes branches and other participating distributors throughout North America. For more information visit www.planetcolor.com or www.sherwin-automotive.com. Lexus IS 2011
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Clarkstown International Collision Credits BASF with Increased Productivity Clarkstown International Collision in Nanuet, NY, works hard to be an asset to their community. Their focus on customer service extends beyond community and environmental conscientiousness. Their concern for protecting the environment led to their decision to convert to BASF waterborne paints in early 2011, a decision that owners, Gene and Anna Cortés, have not regretted. Clarkstown stays up to date with all EPA and OSHA regulations, for their own preservation in addition to
the environment’s. In addition to recycling all metal, cardboard, headlights, bumpers, aluminum and alloy wheels, they have also gone completely paperless—all filing and paperwork is done electronically. Recently, the shop also made the change to BASF’s Glasurit line of waterborne paint. Clarkstown converted to Glasurit in March 2011, and Gene Cortés is very pleased with the results. He decided to convert because of environmental and health concerns, not because of any local mandate. Additionally, the new paint is easier to use and allows for better color matching. Most of the vehicles Clarkstown deals with ale newer models, and they have not encountered problems with color matching because, according to Gene, “we work with a paint company that offers a lot of training and support, which all of our painters have participated in.” He praises the trainers at BASF for making the transition very easy. “They made the process painless and their support is excellent. They answer any and all questions promptly and effectively.” Within four weeks of making the conversion, the shop began seeing positive results. Color matching has become easier, there is better air quality in the shop, and they have been
able to increased productivity by fifteen cars per month—now repairing over two hundred cars every month. Cortés says “my detailers say that this paint has made it easier for them to completely detail the car, spending less time wet-sanding and buffing. The paint flows better, and they see less dust in the paint,” reducing denibbing and other post-application problems. Clarkstown prides itself on customer service, cleanliness and professionalism. According to Cortés, “we are often compared to a lawyer’s office, both for our appearance as well as our office staff.” As part of their dedication to customer service, they utilize a car scanning and tracking system called “My CIC” which allows them to scan cars at each stage of the repair process using a barcode with which each car is labeled upon entering the shop. This information allows office staff to update customers easily when they call to check on the status of their repairs. According to Gene Cortés, it also “helps to speed up the repair process, cuts back on phone calls, and increases our productivity.” Gene believes “customer service is dying and that is one area I’ve never compromised. Even in this digital age, I believe in face-to-fact contact, greeting the customer and hearing a friendly human voice on the phone. From the first day I opened my doors, I’ve had a friendly, professional person at the front desk and answering the phones. We refuse to have an electronic answering system during our open hours of operation. If the phone rings more than twice before it is answered, someone is not doing their job.” Clarkstown International Collision also uses the Customer Service Index to obtain customer feedback on their service and performance, and they react immediately to any negative feedback. Clarkstown International Collision is also dedicated to staying current with technological advances. According to Gene, “computerized es-
timating, management, paint mixing, and Unibody measuring systems are all must-have programs for a 21st century shop. I still see shops doing it the old way… and those won’t make it unless they change their ways”. Gene believes shop owners need to educate themselves constantly in order to stay up to date. “It is no longer a matter of just knowing a trade. You have to school yourself and be willing to spend the money in training for yourself and your staff.” This is important since the computer systems in vehicles are constantly becoming more challenging, especially in Hybrid cars. Also, he believes modern customers are more educated about repairs than they were twenty years ago. Because customers are aware of aspects such as the differences between aftermarket parts, manufacturer parts and junkyard parts, shop owners and employees must be even more educated in order to deal with potential questions. At the same time, Gene points out that “insurance companies are now more than ever pushing aftermarket parts and more insurance companies are refusing to raise their labor rates, but they are requesting more from the body shop which cuts into our profit margin”.
Cars line the bays at Clarkstown International Collision
Clarkstown International Collision was founded in 1992. Gene was an insurance adjuster before opening the shop, but as he felt had experience on both sides and the desire to own his own business, he and his wife opened the shop with a bodyman, a painter, and only $100 in the bank. After visiting many shops and analyzing how each operated, Gene applied the best practices of what he saw at each shop he visited. True to his belief of learning as much as possible, Cortés plans to at-
tend NACE 2011 and SEMA. Though he has not attended in the past because he was too busy to leave the shop, he is looking forward to the events this year. The shop is active in their community of Nanuet, NY. They are members of various non-profit organizations, including the Rotary Club, the Knights of
Parts dry inside Clarkstown’s spray booth
Pythias, Rockland Business Association and the Nyack Chamber of Commerce. Clarkstown also donates funds to the Jesse J. Kaplan School for Special Needs and to local churches, in addition to hosting an annual community Christmas party for families to bring their children for a day of fun with Santa. Clarkstown International Collision supports and is supported by thirty employees, eight of which are office personnel. They employ three frame technicians, two painters, one production foreman and four bodymen while the remainder of their employees work in preparation, detailing, maintenance and parts. The shop encompasses 12,000 square feet with an additional 2,000 square feet used for the office, and utilizes six Uni-Body benches, three MIG welders, an aluminum welder, two prep stations, two spray booths, and one paint mixing room. Besides auto body work, Clarkstown also offers towing, paintless dent repair, glass repair and detailing. The shop is I-CAR certified, as well as Mercedes-Benz certified, and they are certified in aluminum repair. They do not participate in any direct repair programs by choice. Clarkstown International Collision 95 Route 304 Nanuet, NY 109554 845-627-3100 www.cicautobody.com
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 61
Aftermarket Legislative Summit Opens Registration
Registration is now open for the annual AAIA Aftermarket Legislative Summit, scheduled for March 14–15 in Washington, D.C. The event provides an opportunity for members of the automotive aftermarket from across the country to fly in for meetings with their elected officials and discuss issues of importance to their company and the industry. The summit will be kicked off with a briefing session at 3 p.m. on Wednesday, March 14. The briefing session will feature speakers from both the public and private sectors who will touch on everything from aftermarket-specific issues to the overall political climate in Washington. On Wednesday evening, the congressional reception will be held in Rayburn House Office Building and will provide an opportunity to network with fellow aftermarket professionals and congressional staffers. The following day, Thursday, March 15, will be entirely dedicated to appointments with the individual congressional offices. Registration is free and the summit staff will make legislative appointments. Those attending need only to take care of travel and hotel arrangements.
Majority No Longer Upset about GM Bailout Says CEO
A public opinion poll by Peter Hart Research Associates found more than 70% of Americans had a positive attitude towards GM, a turnaround from the 70% negative opinion recorded two years earlier, right after the $50 billion GM bailout. So said GM CEO Dan Akerson during an appearance before the Detroit Economic Club during which he cautioned that the remaining 500 million shares of the automaker held by the U.S. Treasury won’t be sold off anytime soon. “I do think we’ve kind of gotten over that,” Akerson said, in reference to the raging debate over the 2009 bailout that pulled GM out of bankruptcy but left taxpayers holding a majority stake in the automaker after it emerged from Chapter 11 protection. But since it emerged from bankruptcy in July 2009, suggested Akerson, attitudes have improved. “I think America loves a competitor. I think General Motors, Chevrolet in particular, is part of Americana,” said Akerson. To break even would require a share price of around $53. The price is now below $22, though that was up from a recent $19.65 low.
Sherwin-Williams Donates $12,000 in Product to Collision Repair Education Foundation 2011 Makeover Applicant Schools Sherwin Williams Automotive Finishes has come to the aid of three school collision programs by donating $12,000 in product through the Collision Repair Education Foundation. Applied Technology Center (Rock Hill, SC), Freedom High School (Freedom, WI) and Sarasota County Technical Center (Sarasota, FL) all applied for the 2011 Ultimate Collision Education Makeover $50,000 school grant and within their wish lists, specifically requested Sherwin-Williams® products. The Collision Repair Education Foundation forwarded these requests to The Sherwin-Williams Company for consideration of donation and they have come through for the schools. Freedom High School Technology Education Instructor Jay Abitz said, “Sherwin-Williams has fulfilled a large need for my school. Their generous donations have taken a huge burden off of my shoulders and my budget. I cannot thank them enough!” Applied Technology Center and 2011 Makeover school grant winning instructor Mark Dellinger said, “This donation is huge! With a shrinking budget that is tightening everyday, it is next to impossible to let my students just blow through waterborne basecoat. This is a quality waterborne
line that all students need to be exposed to on a regular basis.” Sarasota County Technical Center Program Manager Kristey Richardson said, “Sherwin Williams is an active and valued partner to our Sarasota (SCTI) Automotive Collision Repair and Refinishing Program. Without Sherwin Williams’ involvement on our program advisory committee and occasional donation of product we would not have the program success we enjoy at this time.” Collision Repair Education Foundation Executive Director Scott Kruger said, “Sherwin-Williams Automotive Finishes not only assisted our 2011 Makeover winning school but they also helped the two other applicant schools that specifically requested product from Sherwin-Williams through their Makeover grant application. It is a true testament of The Sherwin-Williams Company’s commitment to the future of the industry when it can be stated that they fulfilled all of the schools requests from the 2011 Makeover grant.” Information about SherwinWilliams Automotive Finishes can be found at www.sherwin-automotive.com. For information about the CREF contact Brandon Eckenrode at Brandon.Eckenrode@ed foundation.org.
62 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Boyd-Gerber-True2Form Group Reports 41% Sales Increase
Boyd Group Income Fund, operator of 166 North American auto body shops, reported its financial results for the three-month and nine-month periods ended September 30, 2011. Highlights: ● Record sales and Adjusted EBITDA when compared to previous third quarter results ● Sales increased by 41.1% to $97.3 million from $69.0 million in Q3 2010; True2Form Collision Repair Centers, Inc. (“True2Form”), Cars Collision Center of Colorado, LLC and Cars Collision Center, LLC, (collectively “Cars Collision”), and seven other new locations contributed $26.3 million of sales ● Same-store sales increased by 8.7%, excluding the impact of foreign exchange translation ● Gross margin increased to $43.5 million or 44.7% compared with $31.5 million or 45.7% in Q3 2010 ● Adjusted EBITDA totalled $6.4 million compared with $5.0 million in Q3 2010 ● Payout ratio was 24.9% compared with 16.9% in Q3 2010, due in part, to a higher level of distributions ● The Fund completed a bought deal public offering, issuing 1,300,000 units out of treasury at a price of $10.75
● On September 16, 2011, the Fund was added to the S&P/TSX SmallCap Index ● Fund Trustees approved a 7.1% increase in distributions to $0.0375 per unit “Results for the third quarter of 2011 are solid, driven by positive growth in same-store sales despite continued challenging market conditions,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “Although unemployment and gas prices remained elevated and miles driven has continued to trend downwards, we have been able to grow revenue as a result of successful operational execution and superior industry position. The completed acquisitions of Cars Collision and True2Form have proven to be incrementally positive to our business, meeting and exceeding our expectations. As the largest multi-location collision operator in North America, both in annual sales and number of locations, we continue to look to leverage our scale to capitalize on attractive opportunities going forward. The equity injection of approximately $12.7 million, net of costs, this quarter strengthens our balance sheet and puts us in an excellent position to execute on future opportunities.”
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Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com. To read all his columns go to http://www.autobodynews.com/columnists/williams-larry.html
Southeast Toyota Distributors (SET) Embraces Industry Changes to Help Dealers Stay Competitive with Larry Williams
There is a better way. This month’s article is about Today’s inventory management changes—changes which I believe are is completely different, and much imfor the better. One change I want to proved. Yes, it is great to have all the talk about is inwith inventory manageJeremy Hayhurst parts “on hand,” but isn’t next-day ment. In the 1970s, automotive dealers needed to be warehouses. Stock good enough? Does the difference justify the added investment? Manufacorders came weekly; or even monthly. turers now have daily stock orders as Special orders took three days, unless routine, eliminating the need for a you paid extra for the overnight surwarehouse system. The manufacturer charge. If a dealer to have withwanted Jeremy Hayhurst has assumed the responsibility of cusgood Customer Satisfaction scores, he tomer satisfaction. Almost any part did his best to always have the needed which is needed can be obtained the part on hand. This dumped the renext day. This has leveled the playing sponsibility of customer service on the dealer’s parts department. They field between large and small dealers. needed to carry, on the shelf, massive Now, they can both deliver fast service, and get great customer satisfacinventories of 5,000 numbers, or more. Manufacturers promoted this tion scores! I see another positive change in system, and the belief that large inthe wholesale marketing area. Once ventories promoted better scores. Of course, dealers absorbed the cost of upon a time, the manufacturers conthese slow moving inventories; in the sidered the dealers to be their cusnever ending search for better cus- tomers, and stopped right there. A parts representative was concerned tomer satisfaction scores. about accessory sales, not body parts. Now, that a few manufacturers have gotten serious about wholesale sales, AUTOBODY they have started to actively help their MARKETPLACE dealers in this market. with Lee Amaradio Jr.One such company is Southeast Toyota Distributors LLC, (SET). This is the world's largest independent distributor of Toyotas and Scions. SET is based in Deerfield Beach, FL. The company's vehicle processing facilities distribute cars, trucks and vans,
parts and accessories to 173 independent Toyota dealers in Florida, Georgia, Alabama and the Carolinas. SET is the leading distributor of Toyota parts in the United States. Located inside a facility the size of eight football fields in Jacksonville's Baymeadows area, SET Parts Sales has the best supply record of all Toyota regions or distributors, shipping more than $1.7 million in parts per day to SET dealerships, providing that “next- day” service. SET is serious about helping their dealers compete in the aftermarket business. I talked to Wayne Crater, Assistant Vice President, Parts Supply & Distribution at SET about their dealer support. He was extremely enthusiastic and proud of their dealer programs, and he told me about some of them. SET Field Support consists of six dedicated Wholesale Collision Specialists. Their responsibility is to work directly with dealers to assist in growing wholesale collision business. In addition to routine dealer contacts, they conduct week-long, wholesale dealer consultations; focusing on every needed aspect in order to create a more efficient and profitable wholesale operation. STAR Program, also know as Toyota STAR Program (Support to Aftermarket Repair), is a marketing support program sponsored by Toyota
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GM to Sell Volt Demo Models, Doubles Inventory
General Motors is telling Chevy dealers that they are now free to sell Volt demo models, doubling the availability of the plug-in hybrid. This move frees 2,300 Volt demo models on dealer lots as GM attempts to sell its closely-monitored target of 10,000 Volts this year. Through October, GM had only sold 5,003 Volts.
GM Expecting Accelerated December Sales
Industrywide U.S. auto sales may accelerate in December to a seasonally adjusted annual rate of about 14 million, the Call or e-mail now best pace this year, a General Motors Co. executive said last month. for rates: “We’re expecting to get close to that with Dan Espersen14 million” 800-699-8251 rate, Don Johnson, vice president of U.S. sales, said at a Barclays Capor ital investor conference in New York. kmangum@autobodynews.com The estimate includes medium- and
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heavy-duty truck deliveries, which the Detroit-based automaker has said usually adds 200,000 to 300,000 sales to monthly annualized sales rates. Light-vehicle sales in October rose to a seasonally adjusted annual rate of 13.3 million, matching February’s pace that was the best since August 2009 when sales were boosted by the U.S. government’s “cash for clunkers” program, according to Autodata Corp.
Motor Sales to promote wholesale business. Collision Parts Price Support offers two different web-based price support programs to their dealers; Auto Parts Bridge, sponsored by Toyota Motor Sales, and SET Parts Edge, sponsored by SET and managed by OE Connection. Both programs provide participating dealers with the tools, training, and funding to support increased sales and market share through “conquest sales,” a process where the dealer has the opportunity to sell a Genuine Toyota Part over an alternative part using SET price support funding. This program allows dealers to be competitive in the marketplace and increase parts sales profitably. I believe Southeast Toyota Distributors are distinctive because they have demonstrated to me that they care. They care about their dealers and their customers. They care about the quality of a Toyota, even after the warranty has expired. They will do everything they can to assure that the customer still has a quality product even after the damage. SET wants every Toyota to be repaired with genuine parts, every time. SET makes sure that its dealers can offer fast service; complete with competitive prices. This qualifies them for my Autobody News list of Distinctive Dealerships.
Slow Fiat 500 Sales
Chrysler Group has suspended production this month of the 1.4-liter FIRE engine that powers the Fiat 500 in North America because of slow U.S. sales of the subcompact, a top UAW local official said. More than 100 of about 400 hourly workers at Chrysler’s Global Engine Manufacturing Alliance Plant in Dundee, Mich., were laid off at the start of the month and don’t know yet when they might be back on the job, said Tom Zimmerman, the plant’s unit chairman for UAW Local 723. Chrysler spokeswoman Jodi Tinson said the plant “is moderating its schedule to adjust for the current bank of engines.” She disputed Zimmerman’s numbers, however, saying that about 30 employees at the plant are currently laid off and another 35 are “redeployed” to other parts of the facility.
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 63