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VOL. 3 ISSUE 9 DECEMBER 2013
Collision Repair Classes, Meetings and Exhibitors Attract Shops to Largest SEMA Ever by John Yoswick
The 2013 Specialty Equipment Market Association (SEMA) show attracted more than 126,000 people—attendees and exhibitor representatives—to Las Vegas in November, filling the massive Las Vegas Convention Center and surrounding spaces with all things automotive. Show organizers say that count was up 7 percent over the previous year and was the highest ever. The collision repair and refinish section of the show boasted just over 200 exhibitors, a small but rapidly growing percentage of the more than 2,300 companies and organizations exhibiting at SEMA this year.
Although attendees could easily spend several days on the show floor
pecial SSEMA
Coverage coverage Pages: 1, 10, 14, 18, 20, 28, 40, 46, 49, and 54
(L-R) Barbara Davies, GM at Autobody News, Kenny Youngblood, Fine Art Automotive & Race Car Portrait Artist, Paul Stoll, PPG Technical Sales Instruction Supervisor, and Cristina Fronzaglia, PPG Communications Manager
Right to Repair Bill Passes NJ Consumer Affairs Committee in State Assembly
“This bill frees up car owners to choose between their auto dealer and independent service shops to repair their vehicles,” said Gusciora (D-Mercer/Hunterdon). “Not only does it foster competitive car repair pricing, but it gives consumers the choice where they will bring their cars for servicing. It’s a win-win for car owners and mom-and-pop service stations who want to stay in business.” “As cars have become more technologically advanced, manufacturers have gained an unfair advantage by forcing owners to rely on dealerships for even the most routine mainteSee Right to Repair in NJ, Page 22
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The Consumer Affairs Committee of the New Jersey State Legislature approved Assembly Bill 352, the Motor Vehicle Owners Right to Repair Act. The bill requires manufacturers to provide access to any information necessary to “diagnose, service, activate, certify or install” any motor vehicle equipment. Legislation Assembly Democrats Reed Gusciora and Paul Moriarty sponsored the bill to protect consumers by requiring vehicle manufacturers to provide owners and independent repair shops with access to the repair information and tools given to automotive dealers.
to see it all, there were a number of meetings, events and classes specific
See Biggest SEMA Ever, Page 4
PartsTrader, Insurer Mandates Draw Industry Ire at Collision Industry Conference at SEMA by John Yoswick
Following a panel discussion on parts procurement at the Collision Industry Conference (CIC) in Las Vegas in early November, attendees spent nearly an hour voicing criticism of mandated use of any particular system. Tom McGarry of Axalta Coatings ProfitNet Management System noted that unlike several other systems, PartsTrader interfaces with estimating systems but not management systems. He also said a shop ordering parts might need to use one Tom McGarry electronic system in order to receive an automaker rebate, but the shop’s preferred vendor might use a different system, with State Farm requiring yet another. “It’s not a procurement decision anymore; it’s a marketing decision,” McGarry said. “How do you handle that?” Nebraska shop owner Andy Dingman, who participated on the
CIC panel, agreed that shops could be faced with using multiple systems. “And that’s going to be very efficient,” he added, sarcastically. California shop owner Randy Stabler, also on the panel, agreed. “The challenge here is the insurance community doesn’t understand by and large that when they increase the body shop’s costs, they have to pay for it somewhere,” Stabler said. “Lowering the payout isn’t increasing efficiency. If the insurers could take that Randy Stabler back to their corporations and figure out ways to reduce the body shop’s operating costs, then they can share in it, but reducing the payout doesn’t increase efficiency.” Stabler also said, however, that he’s “kind of perplexed” why the PartsTrader mandate has become “such a lightning rod” for an industry that has been accepting insurer mandates since the early days of computerized estimating. See Industry Ire, Page 6
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COLUMNISTS Franklin - Maintenance Marketing. . . . . . . . . . . 38 Sisk - Georgia Collision Industry Association Looks to the Future . . . . . . . . . . . . . . . . . . . 58 Sisk - Indiana Auto Body Association Spearheads Petition to Stop Insurer Tortious Interference . 60 Yoswick - December Retrospective: NACE Town Hall, CIC, SCRS, FTC . . . . . . . . . . . . . 48 Yoswick - Scaled-down NACE to Replace ‘Glitz And Glamour’ With Renewed Industry Focus . . . 36 Yoswick - Use of E-Signatures is Customer Convenience, Faster Authorization Reduces Cycle Time . . . . . . . . . . . . . . . . . . 44 NATIONAL 3M Says ‘No More Compounding’ with New System . . . . . . . . . . . . . . . . . . . . . . . . 63 3M Wins Top Spot at 2013 SEMA New Products Showcase Awards. . . . . . . . . . . . . . . . . . . . 46 ABRA Auto Body and Glass Names Brent Moen Exec. VP . . . . . . . . . . . . . . . . . 30 Advance Auto Parts Taps Credit to Fund GPII Buy . 30 AkzoNobel and Collision Education Foundation Create First Sustainability Challenge Grant . . 29 Arrowhead Insurance Joins SCRS as Corporate Member . . . . . . . . . . . . . . . . . . . 17 ASA-Michigan Board Objects to Some Insurer Mandates . . . . . . . . . . . . . . . . . . . . 34 Auto Loan Balances and Deliquencies both Favorable . . . . . . . . . . . . . . . . . . . . . . . . . . 30 BLS Says Total Collision Industry Production is Up in June After Declining in April-May . . . . 38 California Most Consumer Friendly in Insurance . 12 California’s Stricter Chemical Rules Include DEHP Say Attorneys at AAPEX Presentation. . . . . . . 8 CARSTAR Makes Top 200 on Franchise Ranking List . . . . . . . . . . . . . . . . . . . . . . . . 29 CARSTAR Expands with 3 Locations: MA, FL, and OH. . . . . . . . . . . . . . . . . . . . . . 63 Chief Automotive Technologies Introduces LaserLock™ at SEMA . . . . . . . . . . . . . . . . . 14
China’s 31st Collision Industry Show to be Held in February ‘14 . . . . . . . . . . . . . . . . . . 49 Class Action Filed in West Virginia Alleges Collusion Between Liberty Mutual and DRPs. . . . . . . . 61 Collision Repair Classes, Meetings and Exhibitors Attract Shops to Largest SEMA Ever . . . . . . . 1 Consumer Federation of America Says Insurance Cost Has Gone Up 43% on Average in the Last 25 Years . . . . . . . . . . . . . . . . . . . . . . . 25 Deer-Auto Crashes Decline, Disease Cut Population . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Elektron Introduces New Aluminum Repair Equipment at SEMA. . . . . . . . . . . . . . . . . . . 28 EPA to Allows Consumer Use of Vehicle Refrigerant . . . . . . . . . . . . . . . . . . . . . . . . . 34 Epicor Adds OE Parts to its PartExpert Parts Catalog . . . . . . . . . . . . . . . . . . . . . . . 30 FIX Auto Holds Conference Featuring “Marketing that Matters” . . . . . . . . . . . . . . . 24 Ford Settles Class Action Over Defective 03-07 Diesels . . . . . . . . . . . . . . . . . . . . . . . 57 Friedlinghaus Unveils Son’s 2013 Scion FR-S Dream Car. . . . . . . . . . . . . . . . . . . . . . . . . . 14 Gene Simmons Brings his ‘Snakebit’ to SEMA, Vehicle is to be Auctioned in 2014 to Benefit a Children’s Hospital . . . . . . . . . . . . . . . . . . 18 GM Customer Care Adds New Loyalty Program . 45 Honda Takes Top Spots as Most Researched, Purchased Used Vehicles in Q3 . . . . . . . . . . 57 Honda’s Attorneys Respond to Amended Class Action . . . . . . . . . . . . . . . . . . . . . . . . 63 Kelley Blue Book Names 2014 Jeep Wrangler and Dodge Challenger Best Resale Value Winners . 21 Mackin’s Auto Body is 2013 IMPACT I-CAR Elite Member of the Year, Award Given at CIC Meeting in Las Vegas . . . . . . . . . . . . . . . . . 14 Mitchell Releases Q4 2013 Industry Trends Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 NABC Gifts Four Vehicles to Nevada Families at SEMA Luncheon . . . . . . . . . . . . . . . . . . . 10 NABC Golf Tournament in Palm Springs is Jan. 15, 2014 . . . . . . . . . . . . . . . . . . . . . . . 34 NHTSA Releases 2012 Highway Statistics, Fatalities Up Over 2011 . . . . . . . . . . . . . . . . 26 OSHA Proposes Major Changes in Injury and Illness Reporting. . . . . . . . . . . . . . . . . . 53 Part 2: A Profile of the Evolving Collision Repair Marketplace . . . . . . . . . . . . . . . . . . . 42 PartsTrader, Insurer Mandates Draw Industry Ire at Collision Industry Conference at SEMA . . . 1 PPG Receives Ford Approval for Three Clearcoats . 34 Puget Sound CARSTARs Present Family with Van . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Saab Auto Parts Rebranded as Orio AB . . . . . . 63 SEMA 2013 Entertains, Informs and Wows the Crowd . . . . . . . . . . . . . . . . . . . . . . . . . . 54 SEMA Supporter Neil Young Talks about his LincVolt Project: Repowering the American Dream . . . . . . . . . . . . . . . . . . . . . 18 Survey: Autonomous Cars OK if it Reduces Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . 26 VeriFacts Automotive Institutes ‘Dale Delmege Award’ at CIC . . . . . . . . . . . . . . . . . . . . . . . 20 Verify Platform Gives Automakers and Parts Suppliers Greater Protection Against Counterfeits . . . . . . . . . . . . . . . . . . . . . . . . 44 WD-40 and Chip Foose Keep Truckin’ at 2013 SEMA Show . . . . . . . . . . . . . . . . . . . . 40 Winner of Chrysler Custom Challenge at SEMA Show is Oriana Schooley. . . . . . . . . . . . . . . 49 WSJ Report: Caliber Collision to be Sold to Private Equity . . . . . . . . . . . . . . . . . . . . . . 3
to fetch more than $500 million in a sale, one of the sources said. At a Sherwin-Williams A-Plus Vison Group event last December, Rex Green who oversees the automotive aftermarket for BB&T Capital characterized the collision industry as a “star perfomer” in the investment world over the last few years, opening the eyes of Wall Street and large equity groups. A couple reasons for that, he said, was an increase in miles driven and new cars sold. He also called the broader automotive aftermarket an “absolute winner” from an investor standpoint over the last 10 years. The sales process was nearing completion and Caliber could announce its new owners soon, they said. It remained unclear who might emerge victorious in the auction—or whether a deal will ultimately materialize—but one of the sources said Blackstone isn’t likely to end up buying the company. There has been a flurry of auto-repair shop deal activity lately, including Advance Auto Parts Inc.’s October agreement to buy General Parts International Inc. for just over $2 billion. The takeover would create one of North America’s largest aftermarket auto-parts providers. Sears Holding Corp. recently said it’s considering selling its Sears Auto Center business.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia Serving New York, New Jersey, Pennsylvania, Delaware and adjacent metro areas, Autobody News is a monthly
Acura of Westchester . . . . . . . . . . . 4 Amato Agency. . . . . . . . . . . . . . . . 50 Audi Wholesale Parts Dealers. . . . 56 Automotive Service Equipment . . . 8 Axalta Coating Systems . . . . . . . . . 5 B & R Associates. . . . . . . . . . . . . . 12 BASF . . . . . . . . . . . . . . . . . . . . . . . 15 Baystate Chrysler-Jeep-Dodge-Ram. 25 BMW Wholesale Parts Dealers . . . 45 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . 17 Certified Automotive Parts Association (CAPA) . . . . . . . . . . 31 Chariot Rent-A-Car . . . . . . . . . . . . 10 Classifieds . . . . . . . . . . . . . . . . . . . 62 Colours, Inc . . . . . . . . . . . . . . . . . . 28 Crashmax Equipment . . . . . . . . . . 20 DCH Family of BMW Stores . . . . . 47 Ditschman/Flemington Auto Group. 51 DJS Fabrications . . . . . . . . . . . . . . 11 Downdraft Systems . . . . . . . . . . . . 24 Empire Auto Parts . . . . . . . . . . . . . 30 Equalizer Industries. . . . . . . . . . . . 13 First Hyundai-Ford . . . . . . . . . . . . 46 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . 41 Ford Wholesale Parts Dealers. . . . 53 Forklift Wrecker . . . . . . . . . . . . . . . 34 Fred Beans Parts. . . . . . . . . . . . . . 64 Future Cure . . . . . . . . . . . . . . . . . . 21 Gary Rome Hyundai-Kia . . . . . . . . 16 Generation Kia . . . . . . . . . . . . . . . 38 Glanzmann Subaru . . . . . . . . . . . . 36 GM Wholesale Parts Dealers . . . . 57 Goyette’s Inc . . . . . . . . . . . . . . . . . 14 Hackettstown Honda. . . . . . . . . . . 52 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 32-33
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Northeast
REGIONAL AAA Rates Rochester, NY, Best of 3 Regions for Repairs . . . . . . . . . . . . . . . . . . . . . . . . . 16 AASP-PA Opposes Insurer Mandated Parts Procurement Programs . . . . . . . . . . . . . . . . 22 Body Tech Daniel Thies, 50, of Irving, NY, Passes Away. . . . . . . . . . . . . . . . . . . . . . . . 16 Boyd and Gerber Open Two New MD Store Locations . . . . . . . . . . . . . . . . . . . . . . 17 Collision Care VP Lou Berman One of “Men of the Year” . . . . . . . . . . . . . . . . . . . . 20 Edgewood, MD, Dealership Seeks Crimestoppers Help. . . . . . . . . . . . . . . . . . . 12 Fire Totals Elmsford, NY, Body Shop, to be Torn Down . . . . . . . . . . . . . . . . . . . . . . . 16 Husband-Wife Owners of NJ Ins. Brokerage Plead Guilty. . . . . . . . . . . . . . . . . . . . . . . . . 17 MA DOI Announces Actions Against Insurance Producers . . . . . . . . . . . . . . . . . . . . . . . . . . 17 NABC Gets Homeless PA Family a Free Recycled Ride . . . . . . . . . . . . . . . . . . . . . . . 16 New Audi Dealership to Open on Cape Cod Late this Year. . . . . . . . . . . . . . . . . . . . . . . . 13 NJ Auto Glass Repair Down Since Inspections Halted. . . . . . . . . . . . . . . . . . . . 12 NY Shop Adds Paintless Dent Repair for Off-Leases . . . . . . . . . . . . . . . . . . . . . . . . . 13 PBES Jobber Conference to be in Baltimore in May, Open to All . . . . . . . . . . . . . . . . . . . 12 Right to Repair Bill Passes NJ Consumer Affairs Committee in State Assembly . . . . . . . . . . . . 1
The owners of Caliber Bodyworks Inc., DBA Caliber Collision Centers, have put the chain of 157 US body shops up for sale, said sources to the Wall St. Journal. Interested buyers include private-equity firms such as Berkshire Partners LLC and Blackstone Group LP. The WSJ story said the sales process was almost over and new owners would be announced soon. Caliber, which is owned by a unit of Canadian buyout firm Onex Corp. and others, has attracted interest from other private-equity firms, including Blackstone Group LP and Berkshire Partners LLC in the past. Its most recent shop acquisition was nine Global Collision locations in Denver, CO. Caliber Collision Centers owns its 150+ body shops in California, Arizona, Nevada, Colorado, Texas and Oklahoma. An active consolidator, Caliber routinely solicits collision repair shop owners in news releases announcing its acquisitions. Caliber recently acquired four Houston-area body shops. In late September, it added 12 locations in the Sacramento, CA market. In June, the company bought three shops around Denver. Onex acquired Caliber in 2008, buying the Lewisville, Texas-based chain from another group of investors for about $170 million. Caliber is likely
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Contents
WSJ Report: Caliber Collision to be Sold to Private Equity
Hyundai Wholesale Parts Dealers. 49 I-CAR . . . . . . . . . . . . . . . . . . . . . . . 62 Infinity 3D Laser Measuring . . . . . 19 J&R Auto Body Supply . . . . . . . . . . 9 Jaguar Wholesale Parts Dealers. . 63 KBS Coatings . . . . . . . . . . . . . . . . 22 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 55 Koeppel VW-Mazda. . . . . . . . . . . . 40 Lexus of Edison. . . . . . . . . . . . . . . 42 Lexus Wholesale Parts Dealers. . . 60 Maxon Hyundai . . . . . . . . . . . . . . . 37 Maxon Mazda . . . . . . . . . . . . . . . . 26 Mazda Wholesale Parts Dealers . . 57 MINI Wholesale Parts Dealers. . . . 44 MOPAR Wholesale Parts Dealers . 39 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 61 Plaza Auto Mall . . . . . . . . . . . . . . . 23 Porsche Wholesale Parts Dealers. 61 PPG . . . . . . . . . . . . . . . . . . . . . . . . . 2 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . 18 Ruge’s Parts Center . . . . . . . . . . . 29 Security Dodge-Chrysler-Jeep . . . . 7 Spanesi Americas Inc . . . . . . . . . . 13 Subaru Wholesale Parts Dealers . 59 TDI Tire Distributors, Inc . . . . . . . . 27 TechZone Airbag Service . . . . . . . 30 Thompson Organization . . . . . . . . 35 Toyota Wholesale Parts Dealers . . 63 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 54 Volvo Wholesale Parts Dealers . . . 58 Wagner Auto Group . . . . . . . . . . . 43 Yonkers Kia . . . . . . . . . . . . . . . . . . . 6 York Kia of Medford. . . . . . . . . . . . 48
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Biggest SEMA Ever
to those in the collision repair industry. Here are some of the highlights.
SCRS Holds Open Meeting The Society of Collision Repair Specialists’ (SCRS’) partnership with SEMA, which began in 2010, has proven beneficial for the show as well as the association. As it has in the past, SCRS held an open meeting on the show floor one evening to highlight both some industry news and some of the association’s recent activities. A year after Toyota used the meeting to introduce its concept of “predictive estimating,” the automaker announced at this year’s SCRS meeting a partnership with Mitchell International to deliver Toyota recommended procedures and bulletins within Mitchell’s new mobile/online estimating system in early 2014. Toyota’s Rick Leos explained that when a user adds a part to an estimate, all of the appropriate Toyota vehicle information will automatically appear, including related Toyota bulletins or Rick Leos procedures, and information on such things as one-time use fasteners. Leos said that by the end of 2014, the information will be available for all 2012 and newer Toyotas. He said he expects other automakers to make similar announcements early next year. “Will we be with other information providers? I have every intention of sharing all the same data with every one of them,” Leos said. “I’m not trying to hold it from anybody, and nobody has exclusive rights to it.” Also during the meeting, Tony Passwater, executive director of the Indiana Auto Body Association, urged shops to sign its online petition (http://tinyurl.com/lk8cuds) calling for an end to insurer mandates “that change our well-established business relationships, place vehicle owners in jeopardy and interfere with the free market system.” More than 460 people have signed the petition, which calls for state and federal authorities to investigate and prosecute “the tortious interference actions of property and casualty insurance companies that have been repeatedly
performed over the last 70 years,” calling insurer actions “as aggressive as a modern day mafia.” Passwater said he’d like to see the signature count hit 10,000, and suggested that shop owners also encourage their employees to sign. Also during the meeting, industry trainer Toby Chess used photos and actual parts removed from “reToby Chess paired vehicles” to highlight the more than 20 cars he inspected over the previous two months that had improper or incomplete repair work. “The reality is this is going on a lot out there,” Aaron Schulenburg, SCRS executive director, said following Chess’ presentation. “Sometimes it may be being improperly equipped or trained shops, but often times it’s a matter of dollars and sense on the repairs, and the pressures that are put on, and how people are being asked to do repairs. That’s not an excuse, but it’s the reality of one of the causes of these types of repairs.”
Attorney outlines lawsuits John Eaves Jr., the personal injury attorney representing Mississippi shops and parts vendors suing State Farm over its mandated use of PartsTrader, held several meeting in Las Vegas during SEMA to explain the suit. He was also signing up inJohn Eaves Jr. dividual shop clients looking to sue insurers for “unjust enrichment” based on procedures performed as part of vehicle repairs for which the shop was not paid. Eaves said he is working with an economist to determine the likely damages in such cases, but he said an initial list of 62 such procedures has been developed, and preliminary analysis indicates a minimum loss of $675 per $3,500 repair. He said the suits could cover claims against an insurer over however long the statute of limitations allows (six years, in some states). Eaves said that while he is not being paid for the PartsTrader case— which he said will likely soon be replicated in other states—the unjust enrichment suits are being done on a contingency basis with a 40 percent
4 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
fee of any collected funds. The PartsTrader suit, filed in Hinds County Chancery Court, alleges that State Farm’s implementation of PartsTrader tortiously interferes with existing business relationships shops have with their parts vendors. In addition to an injunction halting State Farm’s implementation of PartsTrader, the suit seeks a ruling that State Farm is violating the terms of the 1963 Consent Decree, which placed limits on more than 260 insurer’s activities related to auto insurance and claims. See the October issue of Autobody News for more on the Consent Decree.
Advice On Selling Your Shop SCRS offered about 20 training classes during SEMA, focusing on subjects from marketing and using social media, to cycle time reduction and new bonding and riveting techniques for vehicle repair. Among the classes attracting the most attendees was a panel discussion featuring four former shop multi-shop owners offering insights into the lessons they learned selling their businesses. Industry consultant and trainer Mike Anderson, who sold his two Virginia shops in 2010, cautioned
against revealing too much information about your business—sources of work, for example—to a potential buyer too early in the process. “I’ve seen MSOs come in to buy a shop from certain individuals who are too free with their information,” Anderson said. “The deal falls through and then those other people open a shop right next door. It’s not a done deal until the money in the bank.” Pat O’Neill, a former owner of seven 9-1-1 Collision Centers who sold to Caliber Collision Centers in 2011, recommends talking to a consultant or others who can help you know Aaron Clark what you can do to increase the value of your business. “And remember that it’s a negotiation until the very last day,” O’Neill said. “Stuff will come up on their side and stuff will come up on your side.” “It redefined ‘coming down to the wire,’ that’s for sure,” agreed Aaron Clark, who sold his five Collision Solutions shops in Indiana to ABRA Auto Body & Glass in 2012. See Biggest SEMA Ever, Page 8
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www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 5
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Industry Ire
“That was then. Today it’s parts. Tomorrow it’s paint materials. What happens the day after?” Oklahoma shop owner Gary Wano responded. “If we don’t stop the mandates at some point in time, what are we doing?” Janet Chaney, who serves as the executive director of several state body shop associations, said it clearly comes down to the role parts play in a shop’s profit. “How many times have we been told what to do and we’ve agreed to it and it’s turned on us,” she said, drawing applause. Tony Passwater, executive director of the Indiana Auto Body Association, said he was struck by how often insurer specific mandates are about business processes, like parts ordering, that really have no benefit for customers, rather than on things like equipment, training and certifications that affect the repair quality a customer receives. Scott Biggs of Assured Performance Network said that when the federal government sets fuel-economy standards for new vehicles, it doesn’t tell the automakers how they have to go about meeting those goals. “If an insurer said we can’t sit idly by and let you continue to order parts via phone and fax when that’s such an incredibly inefficient process, they could say instead, ‘You have to use electronic parts order and procurement,” Biggs said. “But they don’t have to name the exact brand because it kills competition.” Similarly, Nick Bossinakis of Overall Parts Solutions, which offers a electronic parts ordering system, said one of the reasons this mandate is frustrating shops is that they may alNick Bossinakis ready be using an electronic parts procurement system that for them works better than PartsTrader. “You have (shops or parts vendors) that are out there listening to digital music on their iPod, and instead are now bringing them an 8track tape,” Bossinakis offered as an analogy. Aaron Schulenburg, executive
director of the Society of Collision Repair Specialists (SCRS), also noted that a mandate to use a particular system can elevate that system above other systems that shops find more efficient to use. “And why is the expectation that we as (shops) are forced to embrace things whether or not we believe they are good for us,” Schulenburg asked. “What I think is a more appropriate expectation is that the insurance industry embrace open platforms and choice. In instances where they’ve done that, it’s been more successful.” John Mosely, owner of one of the Mississippi shops suing State Farm over its PartsTrader mandate, said he has yet to find a single shop owner anywhere in the country who says he or she likes PartsTrader. John Mosley He said the industry “knows how to adapt and we’re not against parts procurement,” but opposes being required to use a particular system. He addressed his comments directly to George Avery of State Farm (also the chairman of CIC), who was sitting in the audience during the panel discussion. “George, I’ve had two conversations with you on the phone, and I appreciate your sincerity,” Mosely said. “You’ve always been, I feel, very honest. But this isn’t working. Is there anything you can do to please take this back to your company and tell them this is just another bad idea out of Illinois, kind of like ObamaCare.” Virginia shop owner Barry Dorn also addressed some of his comments directly to Avery. “George, your folks need to talk to your partners. I’m one of them,” Dorn said. “You need to explain to them why, at the end of the day, one stakeholder is taking away from the other two – how that’s fair, how that’s efficient, how that’s right and frankly, George, how that’s not corporate greed. I don’t blame your company or any insurer from wanting to make more profits. That’s why every one of us came in this room, for more profit. I get that. But if we are partners, we need to sit down and talk, and not just mandate to me how it’s going to be.” Dan Risley, executive director of the Automotive Service Association (ASA), said State Farm has not closed the door to discussions about Part-
6 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
sTrader, and that he feels they have “gotten the message.” But, he said, the association is also pursuing other avenues, including asking states if State Farm’s PartsTrader mandate is legal, and if so, considering legislation to make it illegal. Risley said, in his opinion, litigation should be only the last option because it shuts down communication. “You don’t see PartsTrader up there,” Risley said, pointing to the panel at CIC. “You don’t see State Farm up there. It’s for that reason: litigation.” Indeed, panel moderator Rick Tuuri said every effort was made to get State Farm and PartsTrader to participate on the panel. “The reality is once there’s litigation, everyone that’s involved has a tendency to move away from public discussion,” Tuuri said. “People stand down and cannot speak without their attorney present.” Consultant and former CIC Chairman Lou DiLisio was among the last to speak during the discussion. He circled back to an earlier comment Tuuri had made about how employees can inadvertently end up wasting company time working on something when the
OURCE PARTS S YOUR KIA
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actual goal of the assignment they were given isn’t clear. DiLisio reiterated that a mandate to use a particular system may be less effective than conveying the big picture and working together to find the best way to get there. “Maybe if these companies that have a desire to achieve a goal shared what that goal is, collectively we could come up with a better solution,” DiLisio said, drawing applause at CIC.
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www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 7
California’s Stricter Chemical Rules Include DEHP Say Attorneys at AAPEX Presentation California continues to enact stricter rules on the use of chemicals, including some that are used in automotive repair. Attendees at the Automotive Aftermarket Products Expo (AAPEX) in Las Vegas heard that automotive aftermarket companies have already suffered from existing state regulations and will likely be encountering more restrictive regulations. Lawyers from the Washington, DC-based Arent Fox LLP presented an overview of California’s chemical management rules. Under the state’s Proposition 65 law, which is intended to protect consumers from hazardous chemicals, there are 800 chemicals identified which are believed to be harmful. Companies using these chemicals are required to have warning labels on them. According to Debra Albin-Riley, one of the Arent Fox lawyers, a company can use a listed chemical if the potential exposure to a person poses no significant risk. Proposition 65 allows the attorney general or private citizens to sue companies to enforce the law. She said there have already been 2,000 such actions. “Oftentimes, these lawsuits really don’t have merit,” she said. Defendants have 60 days to comply with the law or to respond.
One such chemical is DEHP, which Victor Danhi—one of the attorneys on the panel—described as a “plasticizer” that is used in 60 percent of all plastic products. Danhi noted that in June of 2013, an oil filter wrench contained DEHP. This past October, a manufacturer, distributor and retailer received a notification about a steering wheel containing DEHP. In 2012, a manufacturer and retailer were sued because an auto crimping tool kit allegedly contained DEHP in its vinyl handle. In such cases, defendants can seek “injunctive relief,” pay a civil penalty which can be as high as $2,500 per day, or agree to a settlement, Danhi said. “Most of these cases result in settlement,” Danhi said. Danhi said it’s important to address lawsuits as soon as possible. Defendants have the option of asking the state attorney general to negotiate a settlement. In California, defendants have the option of seeking to join an “opt in” settlement. Defendants can choose to “opt in” to a settlement agreed to by the state attorney general. There is usually a limited time period for opting in. Maureen Gorsen, another attorney, offered an update on the California Green Chemistry Initiative, passed
in 2008. The law calls on the state department of substance control to determine if products can be made with more sustainable materials. “There is absolutely nothing in this with merit to businesses,” Gorsen said. Under this law, which became effective in October of 2013, the state will be asking businesses for lists of chemicals used in their products. She noted that manufacturers, importers, assemblers and retailers will all be affected. Companies using listed chemicals will be asked to identify “potentially viable alternatives.” Gorsen said rules governing the use of five products will be announced in April of 2014. The state expects to have a list of 2,354 chemicals covered by 2016. Gorsen said anyone can petition the state to add chemicals to this list. Once a chemical is added to the list, it cannot be delisted for three years. “The subjectivity in how they list is going to be amazing,” Gorsen said. Manufacturers of listed chemicals will have 180 days to submit a compliance plan. Once the state receives the plan, they will decide what the regulatory response will be. Gorsen said the state will have a “web of shame” on its website for companies failing to comply with the law.
Continued from Page 4
Biggest SEMA Ever
Former CARSTAR executive Dan Bailey, who has been involved both as a buyer and seller of shops over his career, said it’s never too early to start preparing for the sale of your shop. “It’s very emotional,” he said. “When you grow up in this business, there’s something that makes it feel almost shameful to sell your business. ‘What am I going to tell my friends? What am I going to tell my relatives?’ But the reason you’re building a business is to sell it. It’s very emotional so you need to talk it over with whoever is involved in the business with you, whether a spouse or sibling, and make sure you’re prepared to sell the business before you spend a lot of money working on a sale.” John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at: jyoswick@SpiritOne.com.
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www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 9
NABC Gifts Four Vehicles to Nevada Families at SEMA Luncheon nated vehicles refurbished by Gerber Collision, Caliber Collision, Sterling The National Auto Body Council Auto Body Centers and Collision Au(NABC) presented four vehicles to thority. Las Vegas area families through its NABC Vice-President Liz Stein Recycled Rides program on Nov. 7 at knows that without the support of the Las Vegas Hotel & Casino during body shops, insurance companies and the 2013 SEMA Show. At a luncheon other sponsors, the NABC Recycled attended by 200 collision professionRides would never happen. “This proals, including insurance companies, gram offers a lot of people in this inmanufacturers, vendors, body shops, dustry an opportunity to really impact parts manufacturers, recyclers and disthe community and change peoples’ tributors, NABC celebrated its Recylives. How many times does that hapcled Rides giveaway for yet another pen, where we can really improve the daily lives of families that really need it and deserve it?” In addition, Family Promise received a 15passenger van donated by Enterprise Rent-a-Car and repaired by Gerber Collision in a surprise presentation. “We were so happy to find this van for Family Promise of Las Vegas, because these larger vans are always in demand and From left, NABC President Nick Notte, Stacy Spear, former recipient of a Recycled Rides vehicle and NABC Executive very hard to find,” Chuck Director Chuck Sulkala at the annual NABC Recycled Rides Sulkala, Executive Direcluncheon during the 2013 SEMA Show tor of the National Auto year during SEMA. By refurbishing Body Council said. “Family Promise and recycling cars donated by insurdoes a tremendous job by enabling so ance companies, Recycled Rides has many families to regain their stability been praised for its green approach and independence. We recognize that and for gifting a total of 48 vehicles owning a car they can count on could to-date. be the key to regaining both their finanThe recipient families this year cial well-being and their self-respect. were chosen by Family Promise of Las Vegas, an organization that helps homeless and low-income families to transition from homelessness to stability and independence. “Without a car, life can be very difficult and tiring,” said Terry Lindemann, executive director of Family Promise of Las Vegas. “Daily tasks like going to the grocery store or the doctor’s office are not easy for people without reliable, safe transportation. Recycled Rides is a wonDevlin, the son of recipient Michael Antongnazzi derful program and the people at seemed to enjoy his new, recycled ride NABC are incredible. We’re so thankful to the NABC and all of the local Recycled Rides is a wonderful program body shops and insurance companies that enables so many of us in the collithat helped. Every year NABC reaches sion repair industry to partner with our out to us and helps our member famicolleagues and make a positive impact lies by providing these vehicles and in peoples’ lives.” every year it’s very emotional.” Diamond Clark, a single mother Participants in this year’s multi- of six children, received a van from the car gifting at SEMA included EnterNABC Recycled Rides program this prise Rent-A-Car, State Farm year. She looked both relieved and exInsurance, Allstate Insurance Com- cited, but most of all-very grateful. pany, Esurance and Hertz, which do“Last summer, my vehicle died by Ed Attanasio
10 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
and I could not get to work, so I lost my with sustaining an independent future. job,” Clark said. “As a result, we got Family Promise of Las Vegas serves evicted from our house because I couldup to 25 families daily in one of three n’t afford the rent. We've been riding the housing programs designed to assist bus this entire time, having to leave at families achieve sustainable futures four in the morning to deliver the kids and lasting independence. to school and getting home really late every evening. Now I have a job and a car, so things are turning around for me.” Family Promise is a non-profit organization with 177 networks nationwide that organizes houses of worship, community agencies, and social service agencies into a community-based inter- From left, Howard Putterman of Enterprise Rent-a-Car; Terry faith hospitality network. Lindemann, the Executive Director of Family Promise and Tom Family Promise’s Family Csekme with Gerber Collision celebrated another successful Mentoring Program is a year of the NABC Recycled Rides program The National Auto Body Council homelessness prevention initiative that trains volunteers to act as advisors is a non-profit organization dedicated and advocates for at-risk families, to enhancing the image of the collision helping them achieve goals and main- industry and for more information visit tain self-sufficiency. Families that www.NationalAutoBodyCouncil.org; graduate from the program’s transi- Facebook at facebook.com/Nationtional sheltering program are enrolled alAutoBodyCouncil or its Twitter feed in a mentoring program to assist them @AutoBodyCouncil.
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www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 11
California Most Consumer Friendly in Insurance
California has the most consumerfriendly auto insurance industry in the US due to state regulations, the Consumer Federation of America (CFA) says in a report released this month. Twenty-five years after California voters passed Proposition 103, which imposed regulations and rate controls on auto insurance companies, the measures have been declared a huge success by the CFA, which recommends other states adopt similar measures. California is the only state that has seen a decrease in insurance rates since 1988, when Prop 103 was passed. Other states have seen an average increase of 43.3 percent, according to the report, What Works. Wisconsin is at the median for rate increases over the 25-year period, with a 56-percent jump, and Nebraska registered the largest increase at 108 percent. In California, rates have declined slightly since 1988, with a 0.3-percent decrease. Seven million consumers in California received more than $1.43 billion in premium refunds under Prop 103, according to the report.
Edgewood, MD, Dealership Seeks Crimestoppers Help
The Harford County Sheriff's office is asking for help identifying a burglary suspect wanted for breaking into an auto dealership last month in Edgewood, MD. Police said the incident took place on Oct. 9 when someone broke into Thompson Automotive located at 1105 Business Center Way. The burglar took off with an undisclosed amount of auto parts. Anyone with information regarding the crime is eligible for up to $2,000 in rewards and report information through Metro Crime Stoppers at www.metrocrimestoppers.org.
PBES Jobber Conference to be in Baltimore in May, Open to All
For the first time in over a decade, the annual Paint, Body & Equipment Specialists (PBES) May Conference, May 13–15, 2014, will be held on the east coast at the Embassy Suites Inner Harbor in downtown Baltimore, MD. This year’s conference will include the very popular roundtable sessions, a full day-and-a-half of speakers and two evening receptions. Online registration and hotel reservations will be open in mid-December. For more information, visit www.aftermarket.org/Segments/PBES.
NJ Auto Glass Repair Down Since Inspections Halted
It’s been about 3 years since the New Jersey Motor Vehicle Commission (MVC) instituted an “emissions only” inspection procedure for cars registered in NJ. The state became the 30th state to no longer require inspections for mechanical defects in cars in Aug. 2010. Emissions testing starts when vehicles turn five years old, instead of four. However, NJ auto glass repair and replacement companies say business is down after the state changed its policy to end mechanical inspections for license renewal. As was the case in Memphis (for city-wide inspections), NJ officials cut the program to save money—meaning no more inspections of auto glass. MVC Chief Administrator Raymond P. Martinez said at the time that the change would save the state approximately $17M per year mostly from scrapping the 2.4 million inspections and re-inspections performed each year. “I believe it’s had a really big effect on us,” says Tommy Aciz, owner of All County Glass in Jersey City, NJ. “You see people driving around with cracked windshields. Police are supposed to pull over drivers who have obstructed vision because it can
cause accidents, but they aren’t doing it. “We used to do 20 to 25 vehicles a day,” he added. “Now we are down to five to seven vehicles a day. Business has really gone down. Our residential work is what’s keeping us here and in business. If we relied on auto we’d be out of business.” Frank Mo, owner of Sun Auto Glass in Englewood, NJ, says the lack of mechanical inspections has not just hurt the auto glass companies, but it’s impacted auto body businesses as well. “This has hit us pretty hard,” he explains. “It’s a very bad decision by politicians who want to save money. It not only impacts glass shops but it impacts repair shops as well. It’s an all over impact [in the state]. The downfall in our business is significant. We’ve lost between 15 to 20 percent of our gross profit.” A customer service representative who answered the phone at Valley Glass Service in Woodland, NJ, says his company has ended most of its auto glass work. “It’s not a big part of our business anymore,” he points out.
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New Audi Dealership to Open on Cape Cod Late this Year
Premier Companies runs several car dealerships on Cape Cod and Rhode Island and expects to open an Audi dealership on North Street in Hyannis by early December. Owner Joe Laham declined to comment on whether he bought or is buying the dealership from Tracy Audi according to local media. Premier is looking for a range of staff, such as drivers, technicians and parts advisers. The Cape’s Audi franchise has been held by Tracy Volkswagen-Audi for years. The Premier dealership at 460 Yarmouth Road includes Chrysler, Jeep, Dodge and Ram. The property next door at 440 Yarmouth Road has been leveled and Laham plans to move his BMW dealership to that location. Premier currently houses its BMW and Volvo dealerships at 25 Falmouth Road. Volvo is expected to remain on Falmouth Road. Those dealerships were bought by Viti, a Rhode Island luxury car dealer that had bought out longtime Hyannis dealership Trans-Atlantic Motors, in early 2011. Premier bought the former Trans- Atlantic dealership and the two lines about a year later. Laham said Premier is renovating at the former Balise Nissan dealership on North Street and expects to open as the Audi dealership in a month.
NY Shop Adds Paintless Dent Repair for Off-Leases
October through to the end of December is the most popular time of year to turn in a lease for a new model or to purchase a vehicle. Erie Collision in North Tonawanda, NY, says it is promoting paintless dent repair on known late lease vehicles to help avoid additional fees when turning in those leases. Customers may be caught off guard by chargebacks for dents and dings on their vehicle and and the expense for that damage. It’s in the customers’ best interests and a benefit if they have these dents and dings repaired beforehand, reasons the shop. Paintless Dent Removal can put money in the customer’s pocket when selling, trading in, or off-leasing. A vehicle with a clean exterior always commands a higher selling price, displays to a potential buyer that the car has been well cared for, and will sell faster. The shop suggests customers stop for a Free Estimate and get their vehicle ready to pass that “Turn In” inspection for the Lowest Price Possible. Located at 707 Erie Ave., North Tonawanda, NY, 14120, owner Mike Zwelling has been performing fullservice auto body repairs for over 30 years.
www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 13
Mackin’s Auto Body is 2013 IMPACT I-CAR Elite Member of the Year, Award Given at CIC Meeting in Las Vegas
Mackin’s Auto Body in Vancouver, WA, was chosen as the 2013 IMPACT I-CAR Elite Member of the year, exemplifying excellence in the collision industry. IMPACT is the marketing arm of RDA. IMPACT provides programs to keep the collision shops competitive and I-CAR provides the education to repair the vehicles properly. Mackin’s Auto Body is third generation family owned and operated business. Makin’s has been in business for 86 years with 8 locations in Oregon and Washington. They employ 100 people. Owners Suzanne and Larry Mackin know how to give their customers professional and reliable auto body service. They joined as an IMPACT Elite member because they see value in the many benefits the program offers. Makin’s “Does it right” every time and we are proud to call them the 2013 IMPACT I-CAR member of the year. RDA/IMPACT is the largest national group of refinish jobbers
dedicated to providing quality services and products to their collision shops. RDA has 19 members, representing 185 locations. Members
service over 3,600 collision centers throughout the US and do over $400 million in sales as a group, comprising around 15% of the refinish business nationwide. Those interested in RDA/IMPACT should contact Robert McKenzie, Jr. directly at 731-217-9081 or via email at robertemckenzie@me.com. Visit their web site at www.impactcollisionsolutions.com or contact Melisa Jolls at 908-251-5713.
Chief Automotive Technologies Introduces LaserLock™ at SEMA, “A Product Category of its Own”
Chief Automotive Technologies introduced its LaserLock™ live mapping™ system at SEMA. Chief’s LaserLock system includes a new laser scanner with out-of-level measuring capabilities; 45 targets and a wide range of attachments; a lockable, portable workstation equipped with dual flat screen monitors, computer and color printer; and exclusive Chief software. “The LaserLock measuring system is so advanced, it is in a product category of its own,” explains Lee Daugherty, Chief global data product manager. “LaserLock precisely measures up to 45 individual points on a vehicle simultaneously in real time. This live, multipoint mapping enables technicians to measure and monitor dimensional changes as they occur during pulling, so there’s no need to recalibrate after every pull, and there is less risk of accidentally putting more damage into a vehicle. LaserLock live mapping is computerized measuring for the next generation.” The lightweight, durable new LaserLock scanner features an ergonomic design with easy-to-reach handles and a compact profile that maximizes the laser’s line of sight. As a result, LaserLock can simultaneously measure more reference points than any
Friedlinghaus Unveils Son’s 2013 Scion FR-S Dream Car
other system on both full-frame and uni-body vehicles. In fact, LaserLock can map an entire vehicle at once, making it possible to repair vehicles with diamond or twist damage, as well as frames that have both front and rear damage. LaserLock’s stateof-the-art design allows for vehicles to be measured even when they’re not level, so set-up time is reduced. This also makes LaserLock a natural choice for the estimating bay, where it can be used with a simple twopost lift to measure every vehicle, resulting in better scheduling, more efficient repair plans, improved cycle times and happier customers. Recognizing that modern vehicles are increasingly complex to repair, LaserLock includes a step-by-step tutorial program to help technicians make higher quality repairs quickly, accurately and profitably. The system includes on-screen photos of recommended targets and attachments, as well as where they should be placed. Chief also includes free interactive live support.
14 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Ryan Friedlinghaus and the team at West Coast Customs unveiled the sweet 16 dream car for Friedlinghaus’ son ‘Lil Ryan’ at the BASF booth during the 2013 SEMA Show. Lil Ryan has grown up in the West Coast Customs shop and has seen his father transform ordinary vehicles into extraordinary works of art. The Scion FR-S features a custom paint blend of BASF R-M Onyx HD Low VOC Productive Systems paint called “WCC Whitegold”; a 2.0 4-Cyl Boxer DOHC 16V 200Hp;
a 6-speed sequential automatic transmission with paddle shifters; TEIN suspension; 5 piece Five-AD Aero Lip Kit; custom Roadwire and Ultrasuede interior; and Giovanna wheels wrapped in Continental tires. This Scion will send Lil Ryan onto the LA streets in West Coast Customs style. BASF hosted various celebrity autograph sessions and presented the latest in car color technology from its Glasurit, R-M and Carizzma Colors paint lines at its SEMA booth.
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www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 15
AAA Rates Rochester, NY, Best of 3 Regions for Repairs
AAA Western and Central New York rates the Rochester region as a good place to get your car fixed. The agency, which provides a range of automotive-related services to members, has announced its 2013 “Top Shop’’ winners covering repair businesses as well as collision shops. Twelve regional businesses were named to the list in the repair category. Four were honored in the collision or body shop category. “Rochester had the most of the three regions we cover,’’ AAA spokesperson Steve Pacer said. The Western and Central AAA covers the Buffalo and Syracuse areas as well as Rochester. The local collision shop winners were: Gates Automotive Center, Gates; Gates Automotive Center, Henrietta; Patrick Buick GMC, Henrietta; and Piehler Buick GMC, Webster. The ratings are based on customer evaluations received by AAA between September, 2012, and August, 2013. The agency also conducts its own on-site inspections before naming businesses to the “Top Shop” lists. There are approximately 150 AAA-approved repair shops in the Rochester area.
NABC Gets Homeless PA Family a Free Recycled Ride
Juwan Levine (left) of East Stroudsburg chats with Craig Camacho (center) of the National Auto Body Council and Matt DeWalt of Scott’s Collision in Stroudsburg at the Family Promise of Monroe County office in Stroud Township, PA. Family Promise recently helped Levine and his formerly homeless family find a new permanent home while, through the national Recycled Rides program, got him the free 2003 Hyundai Sonata in the background. Scott’s Collision repaired the car with parts and materials donated by the NABC and National Coating and Supplies.
Body Tech Daniel Thies, 50, of Irving, NY, Passes Away
Daniel C. Thies, 50, of Irving, NY passed away Oct. 13, 2013, at ECMC in Buffalo, NY. He was born June 28, 1963 in Dunkirk, NY, son of the late Charles and Audrey Thies. Daniel graduated from Fredonia Central School in 1981 and Erie 2 BOCES, Autobody and Collision. He served in the U.S. Air Force and was a member of the SNI (Deer Clan). He worked as a First Mate on the Helen S. charter boat in Florida, an auto body collision technician for Part Time Automotive in Silver Creek, and recently was a fleet maintenance mechanic for H. Olsen and Sons in Forestville, NY. He was an avid outdoorsman, who enjoyed hunting, target shooting, fishing, camping, carpentry, home remodeling and building wooden model airplanes. He received numerous prizes for his auto body work on show cars. Daniel participated in demolition derbies for several years. His memberships included the Lake Shore Marine Corps, Sheridan, NY; Silver Creek VFW Post 6472 and the Sheridan VFW Post 6390.
Fire Totals Elmsford, NY, Body Shop, to be Torn Down
A fire ripped through an auto body shop early Nov. 9 in Elmsford, causing extensive damage, though police said that no injuries were reported. Firefighters had to cut their way in and avoid a collapsed roof. Officials said the cause of the blaze, which was first reported around 5:30 a.m., was not believed to be suspicious, though an investigation into the cause is ongoing. Several fire departments responded to the burning building at 55 Nepperhan Ave. within minutes of the first call, extinguishing the flames in under an hour. The one-story building near the corner of Havens Street sustained heavy damage, much of it from the water used to put out the blaze. Inside, the shop was almost completely blackened, and firefighters at the scene said that the building had been deemed unsafe. The building’s owner has since said it will be torn down.
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16 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
MA DOI Announces Actions Against Insurance Producers
The Massachusetts Division of Insurance recently published a list of enforcemtent actions taken against producer licensees for the 2013 third quarter. The DOI’s special investigations unit examined a number of alleged violations and reached settlements in nine cases and levied fines totaling $11,750. The following are individual allegations and the settlement results. • Four producers were investigated for alleged misrepresentations on license applications. Individual fine amounts ranged from $250 to $1,000. • One case was investigated for an alleged misrepresentation in the sale of insurance, resulting in a settlement agreement with regulators and a $5,000 fine. • Two cases involving allegedly placing or renewing policies while unlicensed reached settlement agreements with regulators, with one producer paying a $4,000 fine. • One non-resident producer who was unlicensed in home state and allegedly failed to report administrative actions received a permanent license revocation. • One case with an alleged violation of privacy regulation reached a settlement with regulators with no fine.
Husband-Wife Owners of NJ Ins. Brokerage Plead Guilty
A central New Jersey husband and wife who ran a now-defunct insurance brokerage firm have pleaded guilty to their roles in a scheme to steal more than $770,000 by failing to remit insurance premiums to seven insurance companies. Brian P. Mohen pleaded guilty to seconddegree misapplication of entrusted property and two counts of third-degree failure to file an income tax return. His wife, Lisa A. StankoMohen, pleaded guilty to one count of third-degree misapplication of entrusted property and two counts of third-degree failure to file an income tax return. Under the plea agreement, prosecutors agreed to recommend that Mr. Mohen be sentenced to eight years in state prison and that Ms. Stanko-Mohen be sentenced to five years of probation. In addition, the defendants will execute consent judgments that will require them to pay a total of $660,446 in restitution and $116,451 in unpaid taxes, including interest and penalties. The defendants were the managing directors of Arden Financial Services, Inc., located in Far Hills Borough, New Jersey.
Boyd and Gerber Open Two New MD Store Locations
The Boyd Group has opened two new repair centers under the Gerber Collision & Glass name in Maryland. One of the new centers is located in Catonsville, situated just west of the Baltimore, while the other is in Ellicott City. The Catonsville and Ellicott City repair centers are approximately 12,500 square feet, and previously operated as Pie’s Body Shop and Pie’s Auto Collision Experts, respectively. With these two new additions, the Boyd Group now owns and operates nine repair centers in Maryland, which brings the total current number of U.S. locations in operation to 216 including those branded as Hansen Collision and Glass. “The opening of these two wellsituated centers shows our strong commitment to further grow our business,” says Tim O’Day, president and chief operating officer of the Boyd Group’s U.S. operations. “We are within our stated range of 6 to 10 percent growth in single-location additions this year and expect to continue with this momentum.” Contact Kim Allen (847) 410-6003; kim.allen@gerbercollision.com for more information.
Arrowhead Insurance Joins SCRS as Corporate Member
The Society of Collision Repair Specialists (SCRS) has welcomed Arrowhead General Insurance Agency Inc. as its newest Corporate Member. The announcement was made at SEMA during the SCRS Association Address on Nov. 5 by Gerry Cecil, vice president of sales and marketing for Arrowhead's Automotive Aftermarket program. “Our relationship with SCRS dates back to the early 1990s, and we are extremely proud to once again be working with the association,” Cecil said. “We have always recognized and revered SCRS' footprint and what they bring to their members, from advocacy to the sharing of pertinent industry information. We are greatly looking forward to fostering a relationship that benefits all members of the collision repair industry.” Arrowhead provides an extensive range of insurance products nationwide that are specialized in serving the automotive aftermarket. Arrowhead offers: Garagekeeper's liability ● Used car sales ● Fleet auto exposure ● Pollution liability ● Accessibility to worker's compensation ● Consultation on health care reform options.
www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 17
SEMA Supporter Neil Young Talks about his LincVolt Project: Repowering the American Dream
Neil Young has launched a second career as an alternative fuel activist. Now he’s put his fame to work addressing media with a Green Performance Keynote at SEMA which featured his unique and still evolving LincVolt, a 1959 Lincoln Continental convertible powered by the UQM PowerPhase motor and controller system. The 59 Mark IV is an E85-burning plug-in hybrid. The technology under the giant hood is similar in concept to that in the Chevrolet Volt, an extended-range electric vehicle, but with a few significant differences. A self-confessed lover of big cars, Young explained that his proto-
type was designed to show that you can still be enviromentally conscious and reduce CO2 emissions while you enjoy classic car comforts. Speaking without notes, which he disdains, Young described his LincVolt as the fastest comparable car in its weight class, although he declined to say how fast or how much it cost. The LincVolt made its debut at SEMA in 2010 and, as Young has said since, it’s designed “to inspire a generation by creating a clean automobile propulsion technology that serves the needs of the 21st century and delivers performance that is a reflec-
Gene Simmons Brings his ‘Snakebit’ to SEMA, Vehicle is to be Auctioned in 2014 to Benefit a Children’s Hospital
You may not recognize Gene Simmons without his KISS make-up but his truck was a star of the Ford Blue Oval’s SEMA stand. Somehow he and his team managed to combine a 1956 F-100 with styling cues and the heart of a Shelby Mustang with a silver-onsilver custom paint job. The Snakebit uses the same grille as the Shelby ‘Stang at the front but has the tray of the F-100 at the back. The Snakebit 1956 Ford F-100 is a massive 5.4-liter V8 that pumps out an immense 550 horsepower. The supercharged V8 is mated to a six-speed manual gearbox. The wheelbase has been stretched 12.7 centimetres, while the box has been widened and dressed with a billet
machined floor to mimic wood. It is topped with a custom tonneau cover. The headlights and sequential taillights are custom-built, while 18-inch front and the 20-inch rear wheels are also inspired by Shelby Mustangs. It rides on Shelby-inspired 18-inch front alloys and 20-inch rear rims. The project truck is called Snakebit and it is the brainchild of Tom Foster of Industrial Machine & Manufacturing, a car builder based in Saskatchewan. The truck will be auctioned by Barrett-Jackson, and the proceeds will go to fund a children’s hospital in Saskatoon, Canada, the hometown of Simmons’ wife Shannon Tweed. That’s her on the left.
18 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
tion of the driver’s spirit.” The Lincvolt has an E85-capable Ford Atkinson-cycle four-cylinder engine that works with an onboard UQM 145-KW generator to charge the 21.4-kWh battery pack. From a Level 2 wall socket, the pack charges in about six hours, but the cellulosic ethanol in the tank can apparently charge the battery in approximately 60 minutes when the Lincvolt is idling. With a full battery, the car has a range of 50 miles and, thanks to a fuel economy rating of around 23.5 miles per gallon, the Lincvolt can go the distance: 400 miles without stopping. “LincVolt focuses on ultra-low carbon emissions as value, not mpg,”
says Young. Young took the car on a crosscountry trip in August, traveling
from San Francisco to Washington, DC, with a stop at the tar sands in Ft. McMurray, Alberta, to raise awareness about the car, the technology and the dangers faced if alternative fuels aren’t adopted more widely. Although he’s proud of his Canadian heritage, Young ignited a firestorm of controversy after his trip to the tar sands. It was perhaps to be expected when he was quoted as having said, “Fort McMurray looks like Hiroshima. Fort McMurray is a wasteland.” He talks about his work on the project in last year’s New York Times’ best-selling book, Waging Heavy Peace.
www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 19
Collision Care VP Lou Berman One of “Men of the Year”
Collision Care Auto Body Centers proudly announced that the company’s vice president of sales, Lou Berman, was chosen as one of the recipients of the “Men of the Year” award from South Jersey Magazine. Lou’s career began with Collision Care, starting at the bottom. Lou has served in practically every capacity within the Lou Berman company, from management, to sales and marketing, to customer service and production management. Lou has two children, Bianca, and Louie Jr. In 1999 Louie Jr. was diagnosed with autism. Much of Lou’s spare time goes advocating for Louie’s Voice Foundation, a non-profit he set up to benefit to benefit autistic children and their families in the South Jersey area, as well as other Autism related charitable organizations. “Our mission is to help families go down the roads I have gone,” he says. “Whether they’re hiring attorneys or battling school districts or need help with referrals, we’re the place to go to when your child is in crisis.” “We support Lou in his endeavors to lighten the load for so many special
needs families. Lou’s tireless efforts for so many autistic families is reflective of Collision Care’s commitment to our communities we serve, and our belief that it is our duty to give back” said Val Fichera, CEO of Collision Care Auto Body Centers. Upon graduation from West Chester University with a BA in Communications, Lou was a coveted pro football prospect and upon the conclusion of his football career, Lou’s area of expertise is wide ranging within the sales and marketing field. He has cultivated many relationships within the local marketplace that have stood the test of time to this day, for which he modestly credits the stability and efforts of the company, which he believes enables him to be successful. “It’s easy to make promises when the Collision Care family has been keeping them for over 80 years,” Berman says. Berman has become what he calls an “amateur expert” in areas he never dreamed he would. From child support to insurance claims and everything in between, Berman says any parent with a child with a disability knows how difficult it can be to navigate their world, including those at Bancroft in Haddonfield, who Berman hopes to throw a Christmas party for this year.
VeriFacts Automotive announced the winner of its inaugural Dale Delmege Award, a segment of its Achievement in Collision Repair Excellence (ACE)
“The fact that Craftsman Auto Body continues to grow and maintains their level of performance speaks directly to the leadership shown by the entire operation.” The Dale Delmege Award recognizes the significant and lasting contributions of Dale Delmege throughout each segment of the collision repair industry, and will recognize a collision repair center consistently producing and delivering verified repair quality. “I know of few people as committed to, and influential in, their pursuit of the long term betterment of our industry than Dale Delmege,” said Farzam Afshar, Dale Delmege presents his eponymous award to CEO of VeriFacts. Paul Krauss (r) CEO/President of Craftsman Auto “I am pleased to be able to Body of Chantilly, based in Sterling, VA recognize the scale of Dale’s conAwards, on Nov. 6 at CIC in Las Vegas. tributions over the years by naming our Dale Delmege spoke briefly and pre- ACE Award for the exceptional collisented the award to Paul Krauss, owner sion repair center the Dale Delmege of Craftsman Auto Body of Chantilly, Award.” based in Sterling, VA. Craftsman is a a Dale Delmege has been Collision third generation, family-owned collision Industry Conference Chairman 1999– repairer with multiple locations across 2000, and a Lifetime Member (since Virginia. 2001) of the Society of Collision Repair In presenting the award, Delmege Specialists (SCRS). He is a Hall of Easaid, “I have known Paul Krauss for gles member and a National Auto Body many years and have always known the Council Founding Member and Direccommitment to excellence he has in- tor, as well as a CIECA Founding Memstilled in his people,” said Delmege. ber, Director, and Chairman.
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Kelley Blue Book Names 2014 Jeep Wrangler and Dodge Challenger Best Resale Value Winners
Kelley Blue Book has named the 2014 Jeep® Wrangler and 2014 Dodge Challenger winners of its 2014 Best Resale Value Awards. For the fourth consecutive year, Jeep Wrangler has been named Best Resale Value in its class and ranked on the Top 10 list for the third year in a row. With record setting sales numbers month-over-month this year, Dodge Challenger also earned a spot on this year’s Top 10 list of vehicles with the best resale value. “Jeep continues to dominate in its segment and among the top 10 list, increasing its residual value 3.9 percentage points from just last year,” said Eric Ibara, director of residual consulting for Kelley Blue Book. “New to this year’s list is the Dodge Challenger, which heavily contributes to Dodge’s success for the 2014 model year, along with other strong
vehicles from the brand.” Kelley Blue Book’s KBB.com Best Resale Value Awards are based on projections from the Kelley Blue Book® Official Residual Value Guide and determined by a skilled staff of automotive analysts. These prestigious awards honor vehicles expected to maintain the greatest proportion of their original list price after five years of ownership. “Chrysler Group is honored that Kelley Blue Book has named the 2014 Jeep Wrangler and 2014 Dodge Challenger winners of its Best Resale Value Awards,” said Reid Bigland, Head of U.S. Sales, Chrysler Group LLC. “These prestigious awards serve as great recognition of our commitment to producing quality, reliable, and desirable products, all while maintaining great resale value.”
Mitchell Releases Q4 2013 Industry Trends Report
Mitchell announced the availability of its Industry Trends Report (ITR) for the fourth quarter of 2013. Providing deep analysis of alternate parts use and actual cash value trends in auto physical damage, along with education on eBilling and ePayment trends, technology solutions and implementation strategies, the latest ITR offers valuable data to insurance carriers and payers, collision repair centers and key constituents in the P&C market.
continued to fluctuate while labor cost increased. For the first time, the Mitchell ITR includes a section from J.D. Power that analyzes actual cash value trends for vehicles in the United States and Canada. They report that more lease trade-ins and gently used vehicles will enter the market, providing some relief to the high values seen in the used car market.
The Casualty edition Healthcare regulations drive change in many areas including the electronic exchange of health information. As such, the newest casualty edition of the ITR focuses on beneficial technologies such as eBilling and ePayment, two solutions that allow P&C payers to improve operational efficiency and reduce costs. The feature article provides background on the regulatory landscape affecting eBilling, the benefits to P&C carriers and payers, and proper methods for electronic payment preparation and implementation. A bonus article by Ryan North, Senior Director of Information Systems, highlights DevOps, emphasizing the importance of internal collaboration between product delivery and operations teams to ensure customers receive the best possible experience.
The Auto Physical Damage edition Mitchell Vice President of Industry Relations Greg Horn builds on the last ITR article that looked at the drivers of severity for repairable estimates. The Auto Physical Damage edition of the report dives deeper into the model-specific data, analyzing whether vehicle age and the correlating increase of alternate parts availability affects repairable estimate cost. "A look at the average repairable estimate cost for a three-year-old Camry shows a spike in the cost of the overall repair from 2010 onwards," said Horn. "My first assumption was that the cost of the repair would be driven by more complex vehicles that have more expensive components." Detailed analysis revealed that alternate parts use was found to keep costs down but
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nance,” said Moriarty (D-Gloucester/Camden). “Every motorist should have access to the array of diagnostic codes locked into a vehicle’s computer and decide for themselves who they want to service their vehicle.” Under the bill (A-4336), for motor vehicles model year 2002 and newer, a manufacturer of motor vehicles sold in the state must make available for purchase the same diagnostic and repair information provided to its dealers. The information would be made available to owners and independent repair facilities. A manufacturer that currently sells diagnostic, service or repair information to owners or independent repair facilities in a format that is standardized would not be allowed to require a dealer to purchase such information in a proprietary format, under terms and conditions that are less favorable to the dealer than to the other purchasers. The bill also requires that manufacturers must provide diagnostic tools to owners and independent repair fa-
cilities in a similar fashion, including the provision that dealers may not be disadvantaged. Commencing in model year 2018, under the bill, manufacturers must begin providing access to their onboard diagnostic and repair information systems using an off-the-shelf personal computer, and: ● A non-propriety vehicle interface device that complies with industry standards; or ● An on-board diagnostic and repair information system integrated and entirely self-contained within the vehicle including, but not limited to, service information systems integrated into an onboard display; or ● A system that provides direct access to on-board diagnostic and repair information available to their dealers, including technical updates to such on-board systems. The bill provides an exception to this requirement for information related to immobilizer systems and security-related electronic modules as such information is accessible in other ways. A violation would be an unlawful practice under the Consumer Fraud Act, punishable by a monetary penalty of not more than $10,000 for a first of-
The Alliance of Automotive Service Providers of Pennsylvania (AASP-PA) is the latest collision repair association to add its voice in opposition to insurance company requirements for their direct repair facilities to use specific parts procurement programs specified by the insurer. In an open letter to the industry, Gregory C. McVicker, Collision Division director for AASP-PA, explained, “The Alliance of Automotive Service Providers of Pennsylvania firmly agrees that the free market of automotive parts sales in the Pennsylvania collision repair industry is best left in the hands of the professional repairers across the state.”
McVicker continued, “This type of oversight by the insurance industry is not only detrimental to the longterm viability of the 2000+ collision repair businesses in the state of Pennsylvania, but will have a negative impact on the overall efficiency of the parts process for the consumer in PA as well.” The letter concludes, “Ultimately, due to the negative impacts on the collision repair business and the consumer from increased cycle-times and lost efficiency and profitability caused by such insurer mandated parts programs, the AASP-PA officially opposes any such program being forced on the collision repair shops in PA.”
Continued from Cover
Right to Repair in NJ
AASP-PA Opposes Insurer Mandated Parts Procurement Programs
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fense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages and the awarding of treble damages and costs to the injured. However, the bill also provides that an owner or independent repair facility who believes that a manufacturer had failed to provide information or a tool required by this act must notify the manufacturer in writing through the National Automotive Service Task Force Service Information Request process. Upon receiving the complaint, the manufacturer has 30 days to comply with the provisions of this act. If the manufacturer complies within 30 days it shall be liable to the owner or independent repair facility only to the extent of the actual damages sustained.
The bill specifies that if the manufacturer fails to respond or the owner is not satisfied with the manufacturer’s compliance, the independent repair facility or owner may then file a complaint with the Division of Consumer Affairs. “This is about promoting fairness and equality in the marketplace for both automotive service providers and consumers,” Gusciora said. “Enhancing competition in the auto repair industry will drive down prices and give car owners greater options in choosing who they want to work on their vehicles” “At its most basic level, this is a consumer rights bill,” Moriarty said. “Consumer choice is crucial to reasonable prices and competitive services. This is step to promote that basic premise.” The bill was released 3-1 by the Assembly Consumer Affairs Committee chaired by Moriarty.
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FIX Auto Holds Conference Featuring “Marketing that Matters” The 11th Annual Fix Auto USA National Conference hosted nearly 200 collision industry members at the Boulders Resort in Scottsdale, AZ. The event took place Sept. 15–18, 2013, and featured the theme “Marketing that Matters.”
Fix Auto said the main purpose of the conference was to foster professional growth in its attendees, a community that included not only Fix Auto collision repair members, but the insurance representatives and vendors with which they partner during the course of daily business. The keynote speaker, former major league pitching standout Jim Abbott, discussed his ADAPT concept, which illustrated how repairers can change and mold themselves to
meet and overcome any obstacle. In addition, author and consultant Scott Deming illustrated how attendees can capitalize on brand loyalty to drive business to their doors. Other speakers included Michael Bennett, North America marketing director for Axalta Coating Systems; Susanna Gotsch of CCC Information Services Inc.; Fix Auto member Richard Fish; and a panel of industry veterans who discussed the role parts play in collision repair today and in the future. The conference also granted professionals in attendance to display their giving side through the Bike
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Fix Auto participants worked in teams to build the bikes by competing in bike-related team activities that were both physically and mentally challenging. A group of children associated with the StarShine Academy in Phoenix, a school specializing in the education of students from at-risk communities, were the designated recipients of the assembled bicycles, which they received in person. Safety helmets were part of the donation as well. “One of Fix Auto’s underlying principles is giving back to the com-
munities we serve,” said Fix Auto President and COO Paul Gange. “The Build a Bike Charity was a nice variation on this philosophy and was a great way to wrap our general sessions. “Throughout the year we focus on our mission of enhancing the opportunities for independent repairers through collective marketing, robust resources and the benefit of shared knowledge and connectedness that is uniquely available through the Fix Auto network. We challenge our team
to raise the bar at our annual conference, and this year’s conference set a new standard. We thank everyone who participated and look forward to the opportunity to enhance our program even further next year.”
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Consumer Federation of America Says Insurance Cost Has Gone Up 43% on Average in the Last 25 Years
Holding automobile insurance regulation in California as an example, the Consumer Federation of America issued a report on showing that auto insurance expenditures in America rose by 43 percent on average over the past quarter century. The report holds that the median state, Wisconsin, rose 56 percent over that time, while in Nebraska rates rose by as much as 108 percent–increases that occurred despite increased automobile safety and the arrival of several new carriers in the insurance markets. “These escalating rates, which are made worse by the use of non-driving rating factors by major insurance companies, limit the ability of lowand moderate income drivers to comply with state insurance requirements,” the report states. The report’s authors called for prior approval regulation similar to California to be considered for the rest of the nation. The Property Casualty Insurers Association of America promptly issued a statement in an effort to debunk the report: “Opponents of competition-based rating systems such as the Consumer Federation of America have the misguided impression that prior
approval systems keep insurance rates down. However, National Association of Insurance Commissioners (NAIC) data demonstrates that on average states with competitive-based regulatory systems have the lowest average annual premiums when compared to the countrywide average and states with prior approval systems.” The CFA report analyzes the auto insurance regulatory systems of each of the 50 states from 1988 through present. The report singles out California and the landmark insurance reforms in Proposition 103 just days after the 25th anniversary of the ballot initiative. Prop. 103 passed on Nov. 8, 1988, and made sweeping changes in the oversight of auto insurance in California, including requiring prior approval for rate hikes and establishing an intervenor process in which people who challenge rate hikes can get compensated for doing so. Based on estimated savings to California drivers outlined in the report of $100 billion since 1988, or $8,125 per household, the authors called for prior approval regulations similar to Prop. 103 for the rest of the states.
Deer-Auto Crashes Decline, Disease Cut Population
Deer-related vehicle crashes totaled 1.22 million in the 12 months ended June 30, according to a statement Monday from State Farm Mutual Automobile Insurance Co., the biggest U.S. car and home insurer. There were “fewer deer to hit this year,” Kip Adams, a director at the Quality Deer Management Association, a group that promotes sustainable hunting, said in an interview before the report was released. The population had been cut by car accidents in prior seasons “plus a lot of deer dying of disease,” Adams said. Crashes are most common in October and November, which are in the mating season for deer, the Bloomington, Illinois-based insurer said. Collisions cost an average of $3,414 in property damage nationwide, a 3.3 percent increase from a year earlier. “We've seen up to $6,000,” said Dave Huskey, who manages Minor Wreck Express, an auto repair business in Iowa. He said engineering advances have helped protect people inside the cars, though vehicles are still vulnerable to damage, often involving bumpers, side panels and windshields. “The cars look worse because they're absorbing the impact rather than passing it on to the passengers,”
Huskey said in a telephone interview. “It takes a lot of damage to get inside the frame.” Reports of Epizootic Hemorrhagic Disease spiked in 2012 for deer from Louisiana to Montana. The virus spreads through biting flies, or midges, and causes fever and internal bleeding. “With the tendency toward warmer, shorter winters, the midge is reaching higher levels,” said Brent Rudolph, a wildlife research specialist with Michigan's Department of Natural Resources. The heat “creates conditions that are really good for the midges.” Rudolph said there were about 15,000 deaths reported from the disease in Michigan in the summer. That compares with “a few thousand” in prior years, he said. West Virginia led the country for the seventh straight year as the state where motorists are most likely to hit a deer, according to the report. One in 41 drivers there will probably strike a deer in the next 12 months, the insurer said. Montana drivers are next most likely to crash, followed by vehicle operators in Iowa, South Dakota and Pennsylvania. Hawaii has the lowest chance of collisions, with odds of about 1-in-6,787. New York drivers are the 24th most likely to have deerrelated mishaps.
www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 25
Survey: Autonomous Cars OK if it Reduces Insurance
Nine of 10 licensed drivers would consider buying a self-driving car if it meant paying a lot less for insurance, a new survey by CarInsurance.com says. The survey asked consumers if they would buy—or consider buying—an autonomous vehicle if they could get an 80% discount on their auto insurance. 34% of respondents said they “very likely” would buy a self-driving vehicle and 56% said they would consider it if such an insurance discount was offered. About 20% said they would buy a self-driving vehicle if one was available with or without an insurance discount. Despite nonautomotive companies such as Google working to develop autonomous vehicles, most respondents (54%) said they were more inclined to trust an automaker than a software company to develop the vehicles. 18% said they would trust electric vehicle maker Tesla Motors, 15% said they would trust Google or Microsoft, and 12% responded that they would trust consumer product companies such as Apple or Samsung. Asked what they do in an autonomous vehicle, 26% of respondents said text or talk with friends, 21% said read and 10% said sleep.
NHTSA Releases 2012 Highway Statistics, Fatalities Up Over 2011, The Lowest Year Since 1949 The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) released the 2012 Fatality Analysis Reporting System (FARS) data on Nov. 15 indicating that highway deaths increased to 33,561 in 2012, which is 1,082 more fatalities than in 2011. The majority of the increase in deaths, 72 percent, occurred in the first quarter of the year. Most of those involved were motorcyclists and pedestrians. While the data marks the first increase since 2005, highway deaths over the past five years continue to remain at historic lows. Fatalities in 2011 were at the lowest level since 1949 and even with this slight increase in 2012, we are still at the same level of fatalities as 1950. Early estimates on crash fatalities for the first half of 2013 indicate a decrease in deaths compared to the same timeframe in 2012. “Highway deaths claim more than 30,000 lives each year and while we’ve made substantial progress over the past 50 years, it’s clear that we have much more work to do,” said U.S. Transportation Secretary Anthony Foxx. While Americans drove approximately the same amount of miles in 2012 as in the previous year, the new FARS data released today showed a
3.3 percent increase in fatalities from the previous year. The final 2012 numbers confirm preliminary quarterly reports issued by the agency. Fatalities among pedestrians increased for the third consecutive year (6.4 percent increase over 2011). The data showed the large majority of pedestrian deaths occurred in urban areas, at non-intersections, at night and many involved alcohol. Motorcycle rider fatalities increased for the third consecutive year (7.1 percent increase over 2011). Ten times as many riders died not wearing a helmet in states without a universal helmet law than in states with such laws. Large-truck occupant fatalities increased for the third consecutive year (8.9 percent over 2011). Deaths in crashes involving drunk drivers increased 4.6 percent in 2012, taking 10,322 lives compared to 9,865 in 2011. The majority of those crashes involved drivers with a blood alcohol concentration (BAC) of .15 or higher – nearly double the legal limit. The number of people killed in distraction-affected crashes decreased slightly from 3,360 in 2011 to 3,328, while an estimated 421,000 people were injured, a 9 percent increase from the estimated 387,000 people injured in
2011. NHTSA is just beginning to identify distraction-related accidents, and is continuing work to improve the way it captures data to better quantify and identify potential trends in this area. Nighttime seat belt use continues to be a challenge. In nighttime crashes in 2012, almost two-thirds of the people that died were unrestrained. “As a public health and safety agency, any increase in the number of deaths is cause for concern. While we’re seeing some unfortunate trends, we’re also seeing progress in some parts of the country,” said NHTSA Administrator David L. Strickland. “We will continue to work closely with our federal, state and local partners to change the way motorists behave on our roadways and build public awareness of key issues that have the potential to save many lives.” Thirteen states and Washington DC experienced reductions in overall traffic fatalities, led by Mississippi (48 fewer), New Jersey (38), Georgia (34), Alabama (30) and Utah (26). In addition, 18 states and Washington D.C. showed decreases in drunk driving deaths. New Jersey had the greatest decrease (30 fewer) followed by Colorado (27), Utah (20), Oklahoma (17) and Virginia (17).
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Elektron Introduces New Aluminum Repair Equipment at SEMA Elektron unveiled a new family of collision repair equipment at SEMA designed specifically to fix aluminum vehicle components. The new line includes MIG/MAG welders, aluminum stud welders, and an aluminum repair station complete with dent puller and dedicated accessories. Once reserved for high-end luxury vehicles, aluminum is increasingly making its way into the bodies of vehicles designed for the general population. Automakers have expanded their use of advanced aluminum alloys to manufacture hoods, trunks, and doors in their efforts to reduce vehicle weight and improve fuel economy to meet stringent CAFE standards. According to The Aluminum Association, nearly two dozen model year 2012 passenger vehicles contain at least 10% curb weight of finished aluminum. The list includes the Fiat 500, Ford Explorer, Ford Escape, Ford Focus, Honda Civic, Honda Accord, Hyundai Elantra, and Nissan Altima. (Visit www.drivealuminum.org/vehicleuses/passenger-vehicles for details.) “As vehicle designs evolve, the collision repair industry is challenged to keep up by using new equipment and techniques to properly repair the latest vehicles, regardless of what they’re made of.
We are at a point now where high-strength steel and even some exotic materials like boron are almost becoming ‘old news,’ ”
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explains Mike Cranfill, vice-president of collision for Elektron’s parent company, Vehicle Service Group (VSG). “Our Elektron and Chief Automotive Technologies brands are leading the way in developing the equipment shops need today to repair the vehicles of tomorrow.”
Elektron’s new aluminum repair line includes the MultiMig 511 and MultiMig 522 MIG/MAG inverter welders, MultiSpot M25 AL and MultiSpot M22 AL stud welders, and MultiTool Aluminum Dent Repair Station. The MultiMig 511 and MultiMig 522 both can be used for welding and brazing aluminum alloys, galvanized sheet metal, stainless steel, and highstrength steel. They feature synergic pulsed technology, which can weld very thin aluminum with full penetration and no burn-through and is required by most OEMs for aluminum welding. Both machines can be used with Elektron’s unique push-pull torch, which maintains constant tension on the aluminum wire, minimizing breakage issues. The lightweight torch features fingertip controls that let the technician adjust the speed of the wire feed for real-time control. Both units also come with a built-in mobile cart that makes it easy to move the welder around the bay as needed. The MultiMig 522 can be equipped with two separate torches simultaneously, each with different reels and wire, to increase the versatility of the welder. It also adds a double pulse feature that mechanically and electrically controls the welding parameters to achieve a classic
TIG-looking weld bead. The Elektron MultiTool Aluminum Dent Repair Station is a complete mobile workstation equipped with the tools technicians need to remove dents from aluminum sheet metal panels. Because elements of steel can contaminate aluminum and cause corrosion (leading to adhesion issues and paint failure), best practices for aluminum repair call for dedicated aluminum repair areas and equipment. The Dent Repair Station includes a work area and comes with the new MultiSpot M22 AL stud welder (which is also available separately), anodized aluminum pulling bar kit, anodized aluminum pulling system, hammer kit with four anodized aluminum hammers, heat gun, infrared thermometer, heat shield gel, angled air die grinder and a starter kit of aluminum studs and zinc-plated steel eye-bolts. Elektron is proud to provide complete specifications for all of its new welders so shop owners can make informed decisions about which equipment will work best for their applications. For more information, contact your local Elektron distributor, or call (800) 4459262. Additional information about Elektron is available online at: www.chiefautomotive.com.
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AkzoNobel and Collision Education Foundation Create First Sustainability Challenge Grant
AkzoNobel Automotive & Aerospace Coatings (A&AC) and the Collision Repair Education Foundation have announced the availability of new educational resources to support the collision repair industry’s first Sustainability Challenge Grant. The grant, introduced for the 2013–2014 school year, aims to encourage awareness and thinking about sustainability among students at secondary and post-secondary schools who are preparing for a career in the collision repair industry. Applications will be accepted through Dec. 18, 2013. The educational resources include a video series that presents principles of sustainability in an engaging, informative format, as well as guidelines for instructors, a printable poster and an easy-to-complete, downloadable entry form. All materials are available on the Collision Repair Education Foundation’s website. The four-part video series, developed by Mike Shesterkin of What's Next LLC and produced by M-1 Studios, addresses the following topics: ● The Mega Trends. Teams learn about the sustainability imperative, framed by the four megatrends of population growth, demand for affluence, scarcity of resources and global
climate change. ● Concept and Leaders presents fundamental concepts in the sustainable business movement, as well as practical examples of the ways sustainable principles have been applied to collision repair facilities. ● Systems Thinking and Continuous Improvement Tools provides a definition of systems thinking and how continuous improvement tools can be used to identify a collision repair facility’s environmental and social aspects, and how they impact their surroundings. ● Leadership and Teamwork. Teams learn about leadership and the importance of making a commitment to the success of a team, as well as Dr. W. Edward Deming’s Plan, Do, Check, Act model and system of knowledge. Collision repair instructors and their students are encouraged to view and discuss each of the four 10minute segments to learn about sustainability, principles of continuous improvement and working as teams before developing a grant proposal to improve processes in their schools’ body shops and how they interact with local communities. “The future of our industry depends on a well-trained, qualified
Ruge’s Hours: M-F 8 am - 5 pm
workforce and the development of sustainable business practices,” said Clark Plucinski, executive director of the Collision Repair Education Foundation. “We are encouraged by the interest and enthusiasm shown by students in generating positive ideas to improve processes in their schools’ collision repair shops and its impact on the environment.” The Sustainability Education Challenge Grant was established by AkzoNobel with $50,000 of funding and will be administered in collaboration with the Collision Repair Education Foundation. Schools and students seeking an individual award of up to $10,000 will be asked to submit their formal recommendations for programs or activities promoting sustainability in the collision repair industry to the Collision Repair Education Foundation by Dec. 18, 2013. The grants will be awarded in January 2014.
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CARSTAR Makes Top 200 on Franchise Ranking List
For the seventh year in a row, CARSTAR Auto Body Repair Experts has made the list of the Top 200 Franchise Networks by Franchise Times Magazine. Ranked at 117, CARSTAR is the highest ranking collision repair company. Franchise Times magazine specifically targets franchisors and franchisees with more than 400,000 units worldwide. Franchise Times researches companies’ annual reports and publicly available data on the nation’s 200 largest franchise systems and ranks them based on last year’s global system wide sales. Eligibility to be included in this ranking requires a company to be a legal U.S franchise, where franchisees must own at least 15 percent of the company’s total units. “We are honored to be ranked among the top 200 franchises and lead the automotive and collision repair industry in the ranking,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “We are proud of our store owners and the work of our more than 430 locations across North America in contributing to this honor.” For a complete list of the Top 200 visit, www.franchisetimes.com/pdf/Top-200-2013.pdf.
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Epicor Adds OE Parts to its PartExpert Parts Catalog
Epicor Software Corp. has announced the addition of an automotive original equipment (OE) hard parts database and enhanced OE part lookup capabilities to the Epicor PartExpert suite of electronic catalog products. The optional new content is available immediately through the Epicor LaserCat 3 eCatalog interface. The new Epicor OE for Parts Not Found feature enables LaserCat 3 users to identify the OE part number for applications for which no equivalent aftermarket part is readily available. The user can then interchange the OE number to a part from an alternative aftermarket supplier or purchase and resell a part from a local vehicle dealership. Another new feature, Epicor PartExpert OE, offers one-click access to a separate OE parts database covering popular automotive applications. This optional feature is particularly helpful for import parts specialists and other wholesalers who frequently sell parts from aftermarket manufacturers that follow OE part numbering systems, according to Epicor. Epicor OE Carry Forward has been available through the LaserCat 3 interface since 2011.
Advance Auto Parts Taps Credit to Fund GPII Buy
Automotive parts maker Advance Auto Parts is expected to tap the markets with a $1.6 billion credit facility, sources told Thomson Reuters LPC. JP Morgan, Bank of America Merrill Lynch, SunTrust and Wells Fargo are leading the deal. The facility comprises a $1 billion, five-year revolver and a $600 million, five-year term loan. The loans will back the company's $2.04 billion acquisition of General Parts International Inc (GPII). The company said it intends to finance the allcash acquisition through a combination of senior notes, bank debt and existing cash on hand. A senior notes offering and bank debt syndication were expected to occur prior to closing. Advance Auto Parts is a provider of automotive aftermarket parts, accessories, batteries and maintenance items. GPII is a privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands. The transaction has been approved by the boards of directors of both companies.
30 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Auto Loan Balances and Deliquencies both Favorable
Outstanding auto loan balances have reached a record high according to Experian Automotive, the highest since the company began publicly reporting the data seven years ago. According to Experian’s latest State of the Automotive Finance Market report, outstanding balances on automotive loans reached $782.9 billion, up $103 billion from Q3 2012. In other positive news, the report also showed 30-day automotive loan delinquencies down 3.4 percent over last year, going from 2.67 percent in Q3 2012 to 2.58 percent in Q3 2013. Six-day delinquencies remained flat. “The combination of higher loan balances and relatively flat loan delinquencies is good news for everyone connected to the automotive industry, including consumers, lenders, retailers and manufacturers,” said Melinda Zabritski, senior director of Automotive Lending for Experian Automotive. “The availability of credit, combined with consumers' continued strong performance repaying their loans, has a positive spiral effect,” Zabritski said. “It allows lenders to slowly but surely take on additional risk while providing more access to loans and paving the way for higher auto sales.”
ABRA Auto Body and Glass Names Brent Moen Exec. VP
ABRA Auto Body & Glass has named Brent A. Moen as executive vice president and chief financial officer. “Brent’s experience in highgrowth companies and his proven leadership talents will enable us to continue and accelerate our expansion across the country,” says Duane Rouse, president and CEO. “His deep and diverse background in multi-unit organizations with a mix of corporate-owned and franchised operations is an excellent fit with our strategic plans. We look forward to Brent becoming a key part of our talented leadership team.” Moen most recently served as senior vice president and chief financial officer of Regis Corp., a $2.3 billion publicly-held company that owns, operates and franchises more than 10,000 hairstyling salons across the U.S. and internationally. His prior experience includes serving as the controller for Micro Component Technology Inc., the director of finance at Express Scripts (GlaxoSmithKline), and managing the corporate audit function at Carlson Companies. Moen started his professional career at Coopers & Lybrand.
www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 31
H OND A C ONN ECT I CUT
Lia Honda of Enfield E nf ield
800-221-3131 860-741-3401 Dept. Hours: M-F 7:30-5:30; Sat 8-4 jdoucette@liacars.com
Schaller Honda New Britain
800-382-4525 860-826-2080 Dept. Hours: M-F 7:30-5; Sat 8-1 rshindera@schallerauto.com M ARY L AND
Criswell Honda Ger m an t ow n
866-738-2886 Dept. Hours: M-Thu 7-9; Fri 7-7:30; Sat 8-6 hondaparts@criswellauto.com
O’Donnell Honda E llicot t City
410-461-5000 410-461-9654 Dept. Hours: M-F 8-6; Sat 8-5 bshortt@odonnellhonda.com
Ourisman Honda of Laurel Lau rel
800-288-6985 301-498-6050 Dept. Hours: M-F 7:30-7; Sat 7-4 ron.malitz@ourismanautomotive.com M ASSA CHU SETT S
AutoFair Honda Ply mou th
508-927-5272 Dept. Hours: M-F 7:30-7; Sat 7:30-6 service@autofairhondaparts.com AC URA M ARY L AND
Tischer Acura Lau rel
800-288-6983 301-498-3322 Dept. Hours: M-F 7-6; Sat 8-4 wholesaleparts@tischerauto.com M ASSA CHU SETT S
Acura of Boston Brig ht on
800-254-1169 617-254-5400 Dept. Hours: M-F 8-5:30; Sat 8-5 bruce.fisher@acuraofboston.com
Herb Connolly Acura Framing h am
800-822-2498 508-598-3896 Dept. Hours: M-F 7-6; Sat 7-2 rterry@herbconnolly.com 32 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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908-735-0900 Dept. Hours: M,Tue, F 7-6; W, Thu 7-7; Sat 7-4 chrish@clintonhonda.com
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800-682-5941 609-683-5941 Dept. Hours: M-F 8-4:30 kphillips2@princetoncars.com
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800-272-6741 518-482-2598
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631-669-5800 Dept. Hours: M-F 7-7; Sat 7:30-3:30 babylonparts@aol.com
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Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com
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Apple Honda Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com
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724-940-2006 Dept. Hours: M-F 8-5; Sat 8-4 johnryan@baierl.com
J.L. Freed Honda Mont g omer yv ille
215-855-3587 Dept. Hours: M-Thur 8-6; Fri 8-5; Sat 8-1 joseph.sciacca@jlfreed.com
Shadyside Honda Pit ts b urgh
800-468-2090 412-390-2908 Dept. Hours: M-F 7:30-5 shadysidehondaparts@hotmail.com
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800-682-2914 215-657-3301 Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
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Dept. Hours: M-F 8-6; Sat 8-5 parts@curryacura.com
Dept. Hours: M-F 7-5:30; Sat 7-3 parts@appleacura.com
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800-246-7457 724-935-0800
800-826-4078 215-884-6285
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Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com
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Acura of Westchester We st ch est er
914-834-8887 Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com
Smithtown Acura St. James
888-832-8220 631-366-4114 Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com
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866-50-ACURA 215-943-7000 Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com
www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 33
Puget Sound CARSTARs Present Family with Van
On November 20th the 21 Puget Sound CARSTAR auto body repair locations presented a 2002 Ford Windstar van to Craig and Maria Sotebeer at 12:30 pm at Hi Tech CARSTAR Collision Center 16822 Pacific Ave South Spanaway, WA. Craig and Maria Sotebeer are both US Army combat veterans serving in Iraq as medics. Craig is a disabled veteran and is a Purple Heart recipient, bronze star recipient and has a “V” device. Recently the family car had to be junked and they could not afford to purchase another car. This has made it very difficult for them to keep the necessary appointments for Craig, which are vital for his continued recovery. With an 8 month old son, and the day to day needs of that as well, a van would make all the difference to them in their lives. CARSTAR Auto Body Repair Experts are helping families and service organizations in their communities by repairing slightly damaged vehicles and donating them to families in need to meet pressing transportation needs. CARSTAR thanks LKQ/Keystone, for their contributions in helping them to repair the vehicle.
NABC Golf Tournament in Palm Springs is Jan. 15, 2014
Reservations are open for the National Auto Body Council’s (NABC) annual Golf Fundraiser, scheduled for Jan. 15, 2014, at the Tahquitz Creek Golf Resort in Palm Springs, CA. The annual fundraising event is one of the NABC’s major sources of funding to support its ongoing programs to promote the image of the collision industry. In addition to its popular Recycled Rides program, NABC also offers two other community service programs: First Responder Emergency Extrication (FREE) and the Distracted Driving Initiative. The Golf Fundraiser is being held in conjunction with the NABC’s board meeting the previous day, Jan. 14. All golf event participants are welcome to attend the open meeting. In addition, the NABC will be giving away a Recycled Ride to a local Palm Springs family in need. The vehicle is donated by presenting sponsor Hertz. Individual entry fees are $175 or $650 for a foursome. Each registered foursome can also sign up for a hole sponsorship for an additional $100 donation. Entry fees include breakfast prior, post-tournament buffet reception, prize package drawings and awards ceremony.
PPG Receives Ford Approval for Three Clearcoats
PPG has received approval from Ford Motor Company for use of its advanced clearcoat products for warranty repairs on all Ford vehicles. The approval was announced jointly by Kevin Loop, PPG OEM business development manager and Gerry Bonanni, Ford senior engineer, paint and body repair. PPG clearcoats approved by Ford include DELTRON® DC2000 Ultra Velocity Clearcoat, NEXA AUTOCOLOR® P190-6800 HS Express Clearcoat and ENVIROBASE® High Performance EC800 Ultra Fast 2.1 Clearcoat. “These products have all met the demanding quality and performance standards we have in place,” said Bonanni. “Before we give an okay to any product, we subject it to extensive testing to be certain it performs not just in controlled laboratory environments but also in the real world. These three PPG clearcoats have met the criteria, and we are satisfied they will provide the excellent finish Ford vehicles require and dealers and customers expect.” All three clearcoats dry quickly, do not require flash time between coats or baking in a paint booth and can be polished within approximately 30 minutes.
EPA to Allows Consumer Use of Vehicle Refrigerant
As a result of a lawsuit brought by the Automotive Aftermarket Industry Association (AAIA) and the Automotive Refrigeration Products Institute (ARPI), the U.S. Environmental Protection Agency (EPA) on Friday, Nov. 1, issued a final rule under the Toxic Substances Control Act (TSCA) that will permit R1234yf to be sold to consumers so that they can recharge their vehicle air conditioning systems. Developed by Honeywell and DuPont, HFO 1234yf will likely be used by many vehicle manufacturers to replace R-134a due to its lower global warming potential (GWP). HFO 1234yf has a GWP of 4, while 134a has a GWP of 1430. General Motors has already begun using the new refrigerant on some of its vehicle lines and others are expected to follow suit soon. EPA had originally issued a significant new use rule (SNUR) that would have required anyone to notify EPA at least 90 days prior to the manufacture or processing of 1234yf for consumer use to recharge a motor vehicle air conditioning system based on toxicity concerns. The new rule becomes effective on Dec. 2, 2013.
ASA-Michigan Board Objects to Some Insurer Mandates The Automotive Service Association of Michigan held a well-attended Collision Repair Forum in Lansing, MI, regarding State Farm’s PartsTrader rollout and Most Favored Nation (MFN) clauses. Collision repairers from across the state expressed frustration with insurer mandates. The two mandates of most concern were Most Favored Nation clauses and the State Farm PartsTrader program. MFN clauses are anti-competitive clauses that put both consumers and collision shops at a disadvantage by guaranteeing a customer will receive prices that are at least as favorable as those provided to other buyers of the same seller, for the same products or services. Under the State Farm PartsTrader national program, which will be completed by 2014, State Farm requires shops participating in its Select Service program to use PartsTrader’s software to electronically order parts. ASA-Michigan called a special meeting to address insurer mandates. Its board voted to pursue efforts to stop the use of some insurer mandates, specifically State Farm’s PartsTrader program and Most Favored Nation clauses in their state. Michigan has already banned the use of Most Favored Nation clauses by health insurers.
Ray Fisher, president of ASAMichigan, said: “Our board has heard from collision repairers all over the state asking our association to work with policymakers to stop the use of MFN clauses and the mandate of the State Farm PartsTrader program in Michigan. In addition, the Michigan board immediately updated its position statement from 2002, which addressed open platforms for estimating to be all-inclusive: ASA-Michigan has always believed in a free market business environment for the automotive service repair industry. ASAMichigan condemns any mandates made by an insurance company that impact the freedom of choice by a licensed automotive repair facility when servicing their customer.” Dan Risley, ASA executive director, said: “Collision repairers in Michigan have echoed what ASA is hearing in other states – that the State Farm PartsTrader program and Most Favored Nation clauses are two insurer mandates that go too far. ASA saw this same collision repairer reaction with insurer-owned shops several years ago and we witnessed it again at the ASA-Michigan meeting; there are boundaries in protecting your business and these two insurer mandates cross those boundaries.”
34 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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—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.
Industry Insight
Scaled-down NACE to Replace ‘Glitz And Glamour’ With Renewed Industry Focus with John Yoswick
Perhaps one of the most symbolic indications of the many transitions the International Autobody Congress and Exposition (NACE) continues to go though was the event’s 2013 keynote address speaker, Mike Anderson. Without the 30,000 attendees the show enjoyed throughout the 1990s, organizers couldn’t bring in the big-name political and celebrity speakers of the past, which have included George H.
W. Bush, Norman Schwarzkopf and Colin Powell. But Anderson, a former shop owner and now one of the most popular industry trainers, speakers and consultants in the country, instead offered the more than 500 attendees at the NACE opening session in Las Vegas a more personal, industry-focused message that received a standing ovation. “We had the celebrities who repre-
sent our industry,” Dan Risley, executive director of the Automotive Service Association (which sponsors NACE) earlier this year, said of Anderson and the speaker at the show’s siDan Risley multaneous opening session for the mechanical industry.
NACE Organizers Promise Big Changes for 2014
From the opening session of NACE 2013 through the closing press conference, speakers and organizers voiced a “Wait ’til next year” message. Indeed, the show will undergo some dramatic changes next year, as the Automotive Service Association (ASA) works to regain some of the lus-
ter NACE has lost over the past decade. NACE next year will shift to summer in Detroit, Michigan, home (at least symbolically) to the United States’ Big Three automakers. The OEMs will play a pivotal part in the “rebirth of NACE,” ASA’s Dan Risley promised at NACE this year, with
more of the car companies exhibiting at the event and hosting factory tours. Also helping draw attendees, Risley said, will be the Collision Industry Conference (CIC) and I-CAR annual conference, being held the two days prior to NACE in the same location.
“That’s what this show is supposed to be about. It’s a show for the industry, about the industry. Mike is among the ‘rockstars’ of our industry. That’s who attendees want to hear from. That was well-received.” The more casual, less glitzy opening session was emblematic of a show that attracted fewer than the 2012 announced attendance of 16,000. Risley and event organizers refreshingly
“We think that’s a win for the industry,” Risley said. “One of the things ASA did a couple years ago was a split from some things. It caused a divide in the industry. It hurt us. It hurt the show. We recognize that. So we’re going in the opposite direction and doing everything we can to promote industry unity.
We think it’s best for the industry and for the show as well.” Though Detroit’s population and financial stability have suffered over the past several decades—the city filed bankruptcy earlier this year—NACE organizers said the downtown convention center has been refurbished and a headquarters
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made no effort to try portray NACE as something it wasn’t, saying it met their modest expectations given it was being held just three weeks before SEMA, also in Las Vegas. With 170 exhibiting companies, the trade show was down more than 25 percent from the previous year, and was the smallest since 1985. Rather, organizers sought to take advantage of some of the opportunities the smaller scale of the event allowed. The annual ‘welcome party,’ for example, took place on the tradeshow floor as the first day concluded, and a “mainstage” in the exhibition hall offered a dozen free seminars over the two days, also helping to keep attenhotel with attractive room rates is just a block away. More so than in Las Vegas and New Orleans (the site of NACE in 2012), there is a large population of shops within an easy drive of Detroit, show organizers pointed out, and the event has never been held in that part of the country.
dees in the tradeshow itself. And perhaps more than any other year, NACE speakers and organizers placed a lot of emphasis on setting the stage for the even more significant overhauling of the event next year (see sidebar). Anderson’s kick-off speech included many anecdotes and lessons from his travels around the industry since he sold his two shops in 2010; this year he will spend more Mike Anderson than 340 days on the road, offering training sessions or
ASA has hired a new company to manage the show, replacing Hanley Wood after nearly two decades. It is also abandoning the ASRW “Automotive Service and Repair Week” moniker that never truly caught on. “It needed to go,” Risley said. “Stated differently, NACE and CARS (the mechanical in-
consulting in 48 of the 50 U.S. states. He said that’s helped him realize he was wrong in the past to judge shops largely on whether they participate in insurer direct repair programs (DRPs). “I’ve learned instead to judge people by the quality of the work they do,” Anderson said. “If you’re a DRP and you do quality work, I say God bless you. If you’re a non-DRP and do quality work, I say God bless you. I realized I was too judgmental. I realized at the end of the day we all have a vested interest in judging people based only on whether they do a proper repair.” He said too often issues other than quality repairs get too much focus in
dustry show held with NACE) have brand equity. We want to utilize that. NACE and CARS mean something to people.” Risley hinted at ancillary events, like the automaker factory tours, that might be open to attendees during NACE 2014, potentially including Yankees vs. Tigers baseball games, the
the industry. He asked how many shop in the room had repaired a late-model Toyota, Honda or Hyundai recently, and hundreds of hands went up. But when he asked how many had performed a zero-point calibration on those vehicles – as the automaker repair procedures call for – only a few hands went up. “If we don’t do this, I don’t care if you’re a DRP or non-DRP, we failed the consumer who trusted us,” Anderson said. He said a study following the 1986 Space Shuttle Challenger disaster found that a culture at NASA of “relaxing safety standards to meet fi-
Henry Ford museum, the General Motors Heritage Center, BASF’s headquarters, and tunnel access to the casinos and other attractions of Windsor, Ontario. “We want to make the show a different experience,” Risley said. “When you go to SEMA, that’s a different experience. There’s lots of glitz and
See Scale-down NACE, Page 41
glamour. It’s fun. It’s a great show. I like to go to it personally. But I want our show to be different from an attendee perspective. When we go to Detroit, we’re going to give you that. We’re going to give you something in Detroit that you will not be able to get anywhere else in this country.”
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On Creative Marketing
Maintenance Marketing with Thomas Franklin
I knew this one shop owner who was obsessed with the new. He wanted to be out in front of other shops in every way possible: superior equipment, better trained personnel, and of course, innovative marketing. He was always trying new things with his marketing but this got him into some serious trouble. While he was concentrating on the new, another shop grabbed one of his DRPs, and another one replaced his position as authorized repair shop for a major dealership. With his intense focus on the new, he forgot about what I would call, “maintenance marketing.” No one likes to be taken for granted—especially high volume sources of business for a shop. This shop owner assumed his rapid cycle time, his use of used and aftermarket parts, and his always giving priority to the DRP vehicles would be enough to hold on to that DRP forever. Any recently divorced husband or wife could have told him this was a faulty assumption. One might provide a good home, high quality food and clothes and abundant money to a spouse and yet lose that relationship due to a lack of real attention. This shop owner might have saved that DRP with something as simple as an occasional call and very personal lunch with the DRP decision-maker. The dealership decision-maker would probably have required more elaborate contacts and more frequent communication. Sadly he neglected both of them at a significant cost to his shop. As important as it is to maintain close relations with referral sources
like insurance companies and auto dealerships, perhaps the most important source of business to keep in contact with is prior customers. As times have changed this has become a trickier business. Young customers will generally be in touch with the Internet, Facebook, Twitter and other social media sites. This provides an obvious way to stay in touch and pass along shop improvements in equipment, technology, personnel training, and elements of specific interest like color matching. Older customers may now be conversant with the Internet and websites but possibly less so with social media. This could make updating these customers a bit more difficult. But he bigger question is, how are the shop marketing people to know which customers fit into the young or older category without specifically asking customer age on the information form? Old customer info forms generally asked for birthdays and anniversaries to send targeted greetings. Newer forms probably also ask for an e-mail address, but how many now ask for Facebook, Twitter and other social media designations? These info forms are often neglected in shops already, but in this new high-tech age such neglect can be a costly marketing and sales omission. Insurance companies are frequently combining and consolidating, sometimes forcing customers to change companies. With steering still going on, either directly or indirectly, a shop has to counteract insurance company efforts to force old
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
customers to go to the new company’s preferred shop. A shop’s best hope for retaining these customers is a steady stream of information about the shop’s superior ability to deal with the rapid changes in vehicles. Promoting the shop’s ability to handle electric and hybrid vehicles, vehicles constructed with lighter weight materials like plastics, aluminum, magnesium, and other special metals can reassure the customer that this continues to be the best shop to come to. This message can easily be gotten out through the website and social media, but those off that track can still require old methods of communication. With the cost of postage stamps continually rising, direct mail can be costly. E-mail is by far the best if a shop can be sure its message doesn’t wind up in a spam file. For the shop’s best old customers, it would be appropriate to make a phone call periodically if only to ask the customer to
check his or her e-mail for the latest update, and of course to ask about the condition of the customer’s vehicles.. In yesterday’s world, a shop could employ a marketing guy or gal to make the rounds and keep in touch with referral sources and customers. Today’s world calls for a marketing person with intimate knowledge of social media and especially effective email management. E-mail tracking can tell whether or not a specific email has been received and opened. Today’s astute on-line marketing professional should note if some of those messages have not made it to the recipient and tag those for a phone call. A lack of adequate attention destroys many kinds of relationships. For most shops, referral sources and prior customers are the gold that keeps things running and maintaining an ongoing marketing effort to keep them happy should be the shop’s top marketing priority.
The Collision Parts that Fit the Best
BLS Says Total Collision Industry Production is Up in June After Declining in April-May According to the latest data released from the U.S. Department of Labor Bureau of Labor Statistics (BLS), the total production picture for the auto body repair industry improved in August, building upon gains since June after experiencing declines in both April and May. The industry’s total production, which is defined as the total average weekly hours by month multiplied by the total number of production and non-supervisory workers employed
each month, closed August, 2013 at 6.66 million man hours, up from 6.59 million man hours in June. Production hours in August 2013 stood at 0.4 percent above August 2012. The growth in production came chiefly from an increase in production and non-supervisory employees, up 600 in August to 173,900. The average weekly hours worked by production and non-supervisory employees declined to 38.3 hours in August from 38.4 hours in July.
38 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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WD-40 and Chip Foose Keep Truckin’ at 2013 SEMA Show by Ed Attanasio
It was déjà vu all over again when Chip Foose and WD-40® partnered at the 2013 SEMA Show in Las Vegas one more time to raise money for charity while creating an incredible one-ofa-kind custom built vehicle. This year, the WD-40/Foose collaboration created an astonishing off-road truck that will eventually be raffled off to one lucky winner, with proceeds benefitting three SEMA Cares charities. Named the WD-40®/SEMA Cares Foose Ford F-150, this truck was the very first vehicle to be built inside the new state-of-the-art SEMA Garage— a facility that allows SEMA member companies to test and prototype parts, try its 3D modeling and printing, and use its full-scale photo studio, among other things. “The SEMA Garage is considered to be the most advanced shop of its type in the world,” WD-40® spokesperson Greg Kershaw explained. “Through a partnership with the Alex Xydias Center for Automotive Arts (AXC), underprivileged teens and young adults were able to work alongside leading SEMA man-
ufacturers to install parts and equipment on this special project vehicle. This was an amazing unique learning experience for these young people and surely something they will never forget.” This is the sixth vehicle WD-40® Company and SEMA Cares have
Chip Foose once again partnered with WD-40® to build this breathtaking one-of-a-kind truck
teamed up to build and the fourth vehicle Chip Foose has designed with them. To date, WD-40®/SEMA Cares vehicles have raised almost $600,000 for SEMA Cares charities. Equipped with high performance aftermarket parts, the WD-40®/Foose truck is a tribute to off-roaders all over the world; passionate truck enthusiasts and aftermarket companies who have called upon WD-40® Company prod-
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chasing raffle tickets, you’re also supporting a great cause.” Proceeds from the raffled vehicle will benefit three SEMA Cares charities—the SEMA Memorial Scholarship Fund, which is dedicated to fostering the next generation of automotive leaders and innovators; Childhelp®, an organization that provides services to abused and neglected children; and Victory Junction, an organization that provides life-changing camping experiences to special needs and chronically ill children. Theresa Contreras is a painter/rebuilder for L&G Enterprises in San Dimas, CA and once again she played an integral role in the build. She has been building vehicles for SEMA for more than a decade and was pleased to be a part of this build. “When it all comes together like this, it’s a win-win for the sponsor, the charities and all of the companies that contribute,” Contreras said. “It’s more than just the truck—it’s about people helping each other and working together to make this a better world and a better industry.” The custom vehicle was painted
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ucts for six decades. Kershaw said the truck must have involved over 200 people and close to 50 different companies to create the WD-40®/SEMA Cares Foose Ford F-150 truck. “So many companies and individuals stepped up to make this truck happen,” Kershaw said. “To see all of these elite companies coming together for a really worthy cause is pretty amazing. Everyone added their touch and their flavor to the finished product and what we have now is unlike anything else. It truly is one-of-a-kind and the person who wins it will have a piece of art on four wheels.” Instead of being auctioned like previous WD-40®/SEMA Cares vehicles, the enhanced 2013 Ford F-150 Lariat will be raffled off to one lucky winner in early May 2014. With raffle tickets only costing $50 starting on Nov. 1, owning a Foose-inspired truck is now more accessible than ever to all automotive enthusiasts. “Can you imagine winning a oneoff vehicle like this—worth more than $80,000 with all parts and labor—for only $50?” said Chip Foose, president and CEO of Foose Design. “By pur-
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with BASF Onyx HD paint by LGECTS Motorsports and features a Whipple supercharger, Gale Banks Straight-Shot performance system and Magnaflow cat-back exhaust system that give its 6.2L V8 more than 600 horsepower. To make it off-road ready, the truck also features a converted front Raptor suspension with
ing and a WARN winch, the custom Ford F-150 also has a Boatec Raptor fiberglass hood, fenders and bedsides. AMP Research supplied and installed power running boards, bedsteps and a tailgate extender to make it easy to get in and enjoy the plush Katzkin leather interior and top-of-the-line Clarion sound system installed by Audio In-
The WD-40®/SEMA Cares Foose Ford F-150 was built by 200 people and more than 50 companies donated products and time
ICON Vehicle Dynamics 3.0 coilovers and upper uniball billet arms, as well as ICON rear triple bypass shocks with Atlas 3.0+ leaf springs. Outfitted with Baja Forged front and rear bumpers by LGE-CTS Motorsports, a custom bed cage, Bulldog LED light-
novations.To top it off, the custom truck is riding on Falken Wild Peak A/T 37x12.5R17 tires wrapped around 17” x 9” MHT Fuel Maverick wheels in a matte Graphite finish. “We’re celebrating WD-40® Company’s 60th anniversary, and it’s
great to see the next generation of automotive professionals and enthusiasts getting excited about working on a vehicle that’ll bothturn heads and help support a wonderful cause,” said Tim Lesmeister, vice president of marketing for WD-40® Company. “This vehicle—any off-roader’s dream—would not have been possible without the vision of Chip Foose and his team, the hard work of the Alex Xydias Center students, and the time and resources of our generous build partners.” Partners on the WD-40®/SEMA Cares Foose Ford F-150 include: Foose Design, Source Interlink Media, LGE*CTS Motorsports, Whipple Superchargers, Icon Vehicle Dynamics, MHT Wheels, Boatec, Magnaflow, BASF, Katzkin, Audio Innovations, Amp Research, FuelTool, Bulldog LED Lighting, Banks Power, HushMat, Mag-Hytec, Warn Industries, Optima Batteries, Falken Tire, PowerBass, Atlas Spring, Clarion and Metra Electronics. To learn more about the build and how Chip Foose uses WD-40 Multi-Use Product and the new WD-40 Specialist® line of products, visit WD40.com/Foose. To learn more about the raffle, visit WD40.com/TruckRaffle.
’
Continued from Page 37
Scaled-down NACE
nancial and time constraints” set the stage for that failure. “If we continue to let certain things dictate our industry, we’re going to have a catastrophe like the Space Shuttle Challenger,” Anderson said. In some ways, he said, insurer pressures to improve cycle time have forced the industry to be better business people, whether or not that was the intention. “But if we keep focusing on cycle time and…severity because we’re afraid about the costs being too high, if we start focusing on the wrong things, we’re going to have a catastrophic event just like NASA did,” Anderson said.
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Part 2: A Profile of the Evolving Collision Repair Marketplace
by Vincent J. Romans & Mary Jane Kurowski, The Romans Group
Part 2 of the annual series by Vincent Romans and Mary Jane Kurowski, continues with the 2012 Market, the Multiple-Location Network Operators and $20+ Million MSO and Independent Shops.
2012 U.S. Collision Repair Market The three market segments, $20+M MLO, $10 to $20M MLO, and multiple-location networks, MLNs, roll up to a marketplace profile as reflected in the following chart.
The $7.2 billion total for these three segments represents 23.5 percent of the annual collision re-
56 percent over the past 30 years, with the sharp decline we have witnessed since 1990 tapering off. Since 2006, we have seen a reduction of approximately 9,800 independent and dealer-operated collision repair facilities within the United States, a 22 percent decline. Over the next decade, we believe that market share will continue to shift to the $20+M MLOs, the $10 to $20M MLOs, and to the franchise multiple-location networks, MLNs. This market share shift will eventually move the industry toward a less frag-
mented and capacity-normalized model. As we approach 2020 and
recognized or accepted as being the “correct” number for estimating the auto repair claims market size. There continues to be a wide range of opinions, anecdotal information and various government and private sector data reporting on and determining a meaningful and relevant collision repair market size. Our best-efforts proprietary approach yielded an estimate for insurance-paid repairable claims expenditures for 2012 of $27.7 billion with a conservative approximation of con-
sumer-paid repairs at $3.0 billion, resulting in combined insurance and consumer-paid claims for MLO’s targeted repairable vehicle market segment for 2012 of approximately $30.7 billion. The total number of collision repairers within the United States continues to have value as the traditional data point for calculating market share. Those repairers who operate and integrate collision damage estimating and shop management systems while leveraging other technology asSee Evolving Marketplace, Page 50
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pair revenue processed for 2012, indicating a fragmented collision repair industry with much upside for further consolidation. Our estimated U.S. market size for the number of independent and dealer collision repair locations at year end 2012 is 35,200. This estimate continues to reflect the long-term decline which began in the late 1980s. The number of independent and dealership collision repair facilities in the U.S. has declined by
the trend in industry contraction and consolidation continues, the number of repair locations will move closer to the 30,000 level. Based on our longitudinal research and analysis involving published third-party industry sources, property and casualty insurance, private sector and government sources, and industry knowledgeable and experienced professionals; we continue to ascertain that there is no one certain number that is universally
42 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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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.
Use of E-Signatures is Customer Convenience, Faster Authorization Reduces Cycle Time After a non-drivable car gets towed into your shop, how long do you generally have to wait to get a signed authorization from the customer to tear-down or begin work on their vehicle? Would that customer be more apt to sign the form more quickly if they didn’t have to come to your shop in order to do so? And could getting customer signatures more quickly in some cases allow you to start and finish work more on their vehicle more quickly, potentially improving your cycle time and cash flow while reducing rental car costs? Those are the kind of questions Pat Beavers, chief operations officer of the 11-shop CollisionMax chain in the Philadelphia area, hoped to address through the use of e-signatures. Pat Beavers Anyone who has
bought a piece of real estate or paid taxes electronically knows that putting ink to paper is no longer always necessary for a signature to be considered valid and legal. “We’ve used it successfully over 600,000 times over the last six years in 48 states and two Canadian provinces,” Vince Brigidi, president of the CEI Group, a fleet accident management company, told attendees at the Collision Industry Electronic Commerce Association (CIECA) Implementation Conference in San Diego this fall. “The process of obtaining customer’s authorizations is antiquated. The electronic signature is legal and effective. And there are significant efficiencies to be gained and rental days to be saved by doing this.”
Testing with a repairer CEI manages claims for fleet, government and insurer accounts, using a network of more than 3,600 collision
Verify Platform Gives Automakers and Parts Suppliers Greater Protection Against Counterfeits Verify Brand, LLC, a Minneapolisbased software as a service (Saas) brand protection company, recently announced enhancements to its cloudbased platform to combat counterfeiting in automotive supply chains. Auto manufacturers, parts suppliers and repair shops around the world contend with counterfeit auto parts, which can hamper profitability, damage brand reputations and impact consumer safety. Verify Brand’s advanced serialization, traceability and authentication software, the Verify Platform, can help secure the automotive supply chain and ensure greater use of genuine parts for both auto manufacturing and service/repairs. “Automotive parts counterfeiting is a multi-billion-dollar business that affects manufacturers, suppliers and vehicle owners globally,” said Mark Prokosch, vice president of Verify Brand. “The Verify Platform can secure the automotive supply chain, from a dispersed supplier base to an automotive manufacturer’s production operations and all the way down to the service and repair shops.” Frost & Sullivan estimates that automotive counterfeits cost auto suppliers as much as $45 billion per year.
Counterfeit parts that are inferior to genuine parts can result in diminished vehicle performance or cause accidents, which can lead to liability lawsuits and tarnished reputations for brand owners. In October 2012, the National Highway Traffic Safety Administration (NHTSA) issued a customer safety advisory for counterfeit airbags. Testing testing of the counterfeit airbags showed “consistent malfunctioning ranging from non- deployment of the air bag to the expulsion of metal shrapnel during deployment.” The Verify Platform is a cloud-based software solution that uses secure unique identifiers (sUIDs) and item-level traceability features to give automakers and suppliers complete chain-ofcustody tracking. Brand owners can use the platform to create a secure audit trail and alert system from the point of production to end-user delivery. This enables them to identify and quarantine suspect parts, while tracking any diversions of genuine parts from the legitimate supply chain. The Verify Platform catalogs all events to provide enterprise reporting tools. A secure website and mobile apps allow manufacturers and suppliers to access realtime data and analytics at any time.
44 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
repair shops. Brigidi said CollisionMax is part of that network, and CEI worked with Beavers to set up a system to enable CollisionMax to obtain authorizations and other required customer signatures electronically. “Sometimes in the past we’ve sent someone to a customer’s house to Vincent Brigidi get a paper documents signed, or used FedEx,” Beavers said. “We have a shop full of technology for everything else we do to repair the car and speed the process, but when it comes to having a piece of paper signed, the best we can do is FedEx or fax it?” Here’s how the system CollisionMax created with CEI’s assistance works. Say a vehicle is towed into a CollisionMax shop. The shop can email the customer a link to the electronic authorization form it needs the
customer to sign. It could be CollisionMax’s own form, or the custom one the insurer involved needs to have signed. The customer can read or even print the form from their computer, phone or tablet, then “sign” their name simply by typing it into the space provided. The signed form then is electronically returned to CollisionMax. Over a 3-month period and more than 300 non-drivable claims, CollisionMax compared the traditional method of obtaining customer signatures to the e-signature method. The results convinced Beavers that e-signatures are the way to go. Using the traditional method, 62 percent of the needed signature were obtained the same day, and 18 percent were obtained the next day. The balance took 3 days or more (in the longest case, 9 days) and the overall average was 1.94 days. By using e-signatures, however, CollisionMax obtained 97 percent of
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the signatures the same day and the other 3 percent the next day. “Pat and I feel even that 3 percent is going to come down,” Brigidi said. “Some of it may have been user-error on our side.” The longest amount of time it took to obtain the authorization was just 26 hours, and the overall average length of time: Just over one hour. “From the insurance company perspective or whoever is on the hook for paying that bill, that means dollars,” Brigidi said. “These are all nondrivable claims, all claims in which the vehicle is sitting there, the insurance company is paying for a rental, and the driver is without their vehicle, In the CollisionMax world alone, there’s probably $200,000 or more in rental savings for non-drivable vehicles.”
Customers very accepting While customer surely found the process more convenient than making a trip to the shop, Beavers said, his company received little in the way of comments from customers. Brigidi said that tells him the process is accepted if not an expected way of doing business for customers today. In order for e-signatures to be enforce-
able, customers must be given a choice whether to use it, but Beavers said during the study not one customer declined to sign electronically. Brigidi said 47 states have signed onto the Uniform Electronic Transactions Act, which makes electronic signatures legally valid. (The three other states—Washington, Illinois and New York—have their own state laws governing the use of e-signatures.) CollisionMax has shops in both Pennsylvania and New Jersey, states that have different requirements for shop in terms of authorizations to be obtained, but the system worked well in both states. Brigidi said that of the 600,000 esignatures his company has obtained over six years, not one has been challenged as invalid. But, he said, in addition to tracking the day and time of the authorization, the system tracks the IP address of the device on which the customer signed the authorization, allowing it to be tracked back, if necessary, to the location or device from which it was provided. Beavers said he wants to use e-signatures for all the customer authorizations the shop must obtain, even for drivable vehicles. It reduces paper use, is convenient for the customer, and
would allowthe shop to use the same process for all claims. Customers dropping vehicles off could use a kiosk at the shop to sign electronically, or could be sent a link to the document via the phone they are carrying. “When you think about some of the delays and how long some of those cars sit while we’re waiting to be authorized, to me they are all like checks waiting to be processed,” Beavers said. “The new standard is minutes, not hours or days.” Beavers also said the potential savings and additional audit trail for insurers are obvious. “I have some speculation that some shops are using that authorization part of the process to benefit themselves,” Beavers said. “Maybe they don’t expedite the authorization at times because they have plenty of work. Typically for the insurers, the proverbial clock starts to tick only when we have a signed authorization. So if a shop has delayed that for whatever reasons, the pressures aren’t on so much.” Brigidi said he was surprised to learn an e-signature system hadn’t been integrated into the estimating or shop management systems, but believes that will eventually happen.
GM Customer Care Adds New Loyalty Program
GM Customer Care & Aftersales, the service and parts division of General Motors, announced Oct. 29 that it has added a new loyalty rewards program for independent body shops purchasing select GM collision parts. Shops enrolled in the program earn points when purchasing GM OE doors, wheels, mirrors and lighting assemblies from GM dealers through the OEConnection CollisionLink online parts-purchasing network. Points are awarded for parts purchased on insurance estimates only for GM vehicles two model years and older. Points are awarded at the rate of one point for each dollar spent. Accumulated points can be used to purchase a wide selection of merchandise, travel, entertainment and new GM vehicles. All CollisionLink users will receive an email request to sign up. To sign up for CollisionLink, visit the OEConnection website.
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3M Wins Top Spot at 2013 SEMA New Products Showcase Awards by Ed Attanasio
People come to SEMA to see the cars, the girls and the celebrities and to network with their vendors and colleagues, but among the most popular exhibits and presentations include cutting-edge automotive products. An award from SEMA can be a game changer and help to fast track a product’s path to success. It’s the equivalent of the Academy Awards for the
SEMA Chairman of the Board Nate Shelton and SEMA President and CEO Chris Kersting present 3M’s Steven Widen with the award for Best New Collision Repair & Refinish Product
movie industry, but only without the red carpet, fancy gowns and paparazzi. During a breakfast on Nov. 4, the winners of the 2013 SEMA New Products Showcase Awards were announced. This year, more than 2,000 new products were submitted for consideration by SEMA, but only a handful were nominated. 3M™ took home the top honors in SEMA’s Collision Repair and Refinish Product category for their innovative new 3M™ Body Protection System, making it the biggest winner of the show within the collision segment. The night before, Steve Widen, U.S Marketing Supervisor, 3M Automotive Aftermarket Division, received a phone call from SEMA, that was both surprising and exhilarating, he said. “They called to tell us we were a finalist and invited us to the breakfast. It was definitely a very pleasant surprise and a great start to our show. We got off on the right foot and then when we won, it just got better! Tons of work went into the new 3M Body Protection System, so it’s very satisfying for sure.” According to 3M, its newest Body Protection System is reinventing the way repair technicians can match textured finishes found on today’s vehicles for rock protection and sound deadening. The innovative 3M Body Protection System helps painters spray low viscosity textured finishes with fine, medium, coarse and splattered patterns.
The technology behind the 3M Body Protection System includes the 3M™ Accuspray™ HGP Spray Gun with a pressurized inlet and 3M™ PPS™ Type H/O Mini Pressure Cup, the 3M™ Rocker Protector Pouch, and 3M™ Paintable Undercoating Pouch. The 3M Rocker Protector Pouch is available in 3-ounce and 5.5ounce sizes, and the 3M Paintable Undercoating Pouch is available in 5.5-ounce size. The 3M Body Protection System solves a major pain point for automotive professionals, and gives them a tool for greater productivity, including; • Ability to adjust pressures and spray pattern, allowing for better match to OEM textures. • Ability to cut in half application time of textured finishes to rocker panels, wheel wells and undercarriages in many cases. • The pressurized 3M Accuspray spray gun allows the product to be sprayed at any angle making it easier to reach lower rocker sections and inside wheel wheels. • The painter can easily adjust the spray pattern to reduce overspray and masking. • Painters can easily achieve a perfect texture match, which contributes to improved repair quality and higher CSI scores. • The pouch sizes allow estimators and repair technicians to attribute exact product usage to each job, improving the job costing on estimates. • The 3M Accuspray system reduces cleanup time and virtually eliminates the need for solvents. Widen believes this product is much-needed and was designed to fulfill a need that has existed for many years. “There hasn’t been anything new out there in delivery processes for the past two decades, so the 3M Body Protection System is pretty significant,” Widen said. “Painters and preppers haven’t been able to easily replicate textures, but now they can by leveraging our proprietary 3M Accuspray technology with unique product delivery platforms. It will revolutionize how textured finishes are applied in the future. And, as the use of these textured finishes continues to expand for sound deadening on thinner substrates, the need for the 3M Body Protection System will increase exponentially.”
46 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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. Widen noted that 3M’s Body Protection System has excelled in every one of these areas, he explained. 3M won first place in SEMA’s Collision Repair and Refinish Product “It’s going to category for its innovative new Body Protection System help body shops in a big way, because now we’ve put a tool We released the Body Protection System on August 1, and we’ve already in the hands of painters and preppers that will save them time and of course, reached our sales goals for the rest of money,” Widen said. “There isn’t an the year.” Creative Autobody Solutions of OE texture out there that we can’t replicate with this system. Work that Tempe, AZ captured the second p l ace used to take three hours can now be award with its spray - out cards conperformed in 10-15 minutes, with structed of ABS and the third place more accuracy and zero guesswork. runner up award went to Shelwes Tools & Body of West Helena, AR , It’s going to increase productivity considerably; the cleanup is very simple for its Shelwes Automatic Contour Sander. and there’s a minimal learning curve.
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Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
December Retrospective: NACE Town Hall, CIC, SCRS, FTC with John Yoswick
20 years ago in the collision repair industry (December 1993) A NACE “Town Hall” meeting on December 4 brought together a panel of 14 industry experts. They each offered their own views on how the re-engineering of the industry will or should take place. The forces behind the drive for change, they agreed, are consumers, information technology, legislation and perhaps most importantly, the inefficiencies of the current system. “If we can eliminate all the delays in the repair process based on insurance approval, that would streamline the process tremendously,” Dennis Kiyohara of AutocheX said. “You don’t need DRPs to streamline the process. You can get all those things you want – hassle-free service, faster repairs – without doing direct repair. The technology is the driving force. I think we have to get (insurers) to say, ‘Here’s what we want and here’s how we measure.’ Mutually create the performance standards and trust will follow performance.” —From coverage of the 1993 International Autobody Congress and Exposition (NACE).
15 years ago in the collision repair industry (December 1998) The effort to develop a new method to calculate refinish materials appears to be losing steam. The Collision Industry Conference (CIC) task force that began to look into the issue about a year ago reported in December that it has done as much as it can do. Charlie Baker, chairman of the task force, said the group has essentially agreed that a system based on the square footage of the area to be refinished looks promising, but that it is now up to others to determine if a square-footage system is workable. “The problem is that moving from this point forward is a very expensive proposition,” Baker said at the CIC meeting in Dallas, Texas. “The task force is not going to spend thousands of dollars to generate the computer model that might be necessary. As a task force we’ve come about as far as we can go. Now somebody has to say, ‘Okay, the industry really wants this.’” Baker also said he has found in-
creased resistance to a change among shop owners. “Many shops today feel the existing system is flawed, but it is workable,” he said. “So there’s a pretty good hesitancy within the industry to change from a proven system. Those who have worked with today’s system have figured out how they can be accurately reimbursed, and they tend not to be looking too hard for an alternative method.” At least one shop owner on the task force agreed with Baker’s assessment. “I was one of the proponents of finding a better way to calculate paint materials,” Kansas City shop owner Bill Eveland said. “A year later, I’m not sure that the old system is completely broken. If you put the right number to it, the right rate per refinBill Eveland ish hour, it works.” Eveland said the estimating system providers say their refinish current times are based in part on part size, so the system, though not perfect, is already somewhat based on square footage. —Paint and materials calculation methodology has remained an industry issue, being discussed most recently at a CIC meeting earlier this year.
10 years ago in the collision repair industry (December 2003) Dan Risley, executive director of the Society of Collision Repair Specialists (SCRS), said the association opposes efforts by insurers to require direct repair shops to use a particular estimating or imaging system. He said SCRS surveyed 15 larger insurance companies and found that 46 percent had such a requirement. “SCRS is extremely disappointed in these results, and we’d like to see some significant change in that percentage over the next year,” Risley said, saying the association will be contacting insurers about this issue. “SCRS believes that requiring a repair facility to have a specific estimating system is no longer a technology chal-
48 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
lenge; it is more of a mind-set change.” —As reported in CRASH Network (www.CrashNetwork.com), December 7, 2003. SCRS this past September, as part of its effort to oppose State Farm’s mandated use of PartsTrader, issued a new position statement, condemning insurer mandates, “particularly those that specify required vendors, business platforms or internal processes that must be followed.”
5 years ago in the collision repair industry (December 2008) As of press time, one of the bigger news stories of 2008, a proposed merger (announced last April) between Mitchell International and CCC Information Services, had yet to be finalized. The primary hold-up has been approval of the deal by the Federal Trade Commission (FTC), which last summer issued a second request for information from the parties involved.
Art Amolsch, senior editor of the independent FTC: Watch newsletter, said such second requests are fairly infrequent and likely an indication that the agency has some concerns about the merger. A number of shop owners and others in the industry have said off-therecord that they’ve been interviewed or have submitted written comment to the FTC. Some expressed concern, for example, about possible declines in the responsiveness to industry requests— such as those through the Database Enhancement Gateway—that could result if the industry has just two major estimating systems (the other being Audatex). As of this point, it appears the next headline about the merger— whatever it may be—is likely to be in 2009. —As reported in Autobody News. In March of 2009, CCC and Mitchell mutually called off the merger plan after the FTC won a preliminary in-
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junction to halt it. “We brought this case because of the impressive body of evidence developed by staff demonstrating that the combination of these two competitors would substantially lessen competition, ultimately leading to higher prices and less innovation for consumers,” David Wales of the FTC said. CCC and Mitchell opted not to commit resources to a protracted FTC fight. “We have reached the point in the regulatory process in which our customers, employees and shareholders are best served by continuing as independent companies,” Alex Sun, president and CEO of Mitchell, said.
China’s 31st Collision Industry Show to be Held in February ‘14
The China Automotive Maintenance and Repair Trade Association (CAMRA) will be holding its 31st annual collision industry trade show in Feb. 2014 and is inviting international collision professionals to attend. Running from Feb. 26 to Mar. 1, 2014, the Auto Maintenance and Repair (AMR) trade show consists of nearly 1,200 exhibitors and 58,000 visitors annually, with vendors and consumers having the opportunity to interact with national product manufacturers, car dealers, repair shops and repairers.
Winner of Chrysler Custom Challenge at SEMA Show is Oriana Schooley The Chrysler brand awarded the winner of its Chrysler Custom Challenge at the SEMA Show yesterday, Nov. 6. During a live streaming of the event on the auto show floor, three judges, Chrysler Brand President and CEO
Chrysler Custom Challenge Winner
Saad Chehab, Chrysler Brand Service, Parts and Customer Care President and CEO Pietro Gorlier and West Coast Customs Owner and CEO Ryan Friedlinghaus, named Oriana Schooley as the winner. The Chrysler Custom Challenge charged fans to submit an image of their customized Chrysler brand vehicle along with a brief description of what customizations they have given to their vehicle to make it unique. Their vehicles are also being featured on the SEMA showroom floor within
the West Coast Customs display. Video can be viewed at: youtu.be/V_9LUM87iXM. “The Chrysler Custom Challenge provided Chrysler car enthusiasts a chance to creatively express their skills and passion for customization,” said Chehab. “And SEMA’s show floor provided us with the perfect stage to announce the winners and have their vehicles recognized and displayed at the show and online.” The three finalists and their vehicles were invited to Las Vegas for a paid-trip of seven days, six nights, where they will be given full access to the show, work alongside the West Coast Customs team and enjoy an intimate dinner with Chrysler executives and West Coast Customs. As part of the grand prize, Oriana Schooley will receive a trip to the North American International Auto Show, a luxury travel package for herself and a guest and more than $15,000 in other cash/prizes. Ryan Friedlinghaus is also set to feature the winner and finalists in an upcoming episode of the “West Coast Customs” television series (FOX) that
will be filmed on-site at SEMA. More information about the finalists and photos of their cars can be found by looking up Chrysler Custom Challenge in Facebook. The Chrysler brand’s activation site at SEMA included a special partnership with West Coast Customs, which spotlights both as ambassadors of customization. Being provided to attendees as part of this unique partnership are on-site customization
classes at the SEMA show, such as exterior paint and vinyl wrapping, interiors, sound, technology and lighting classes—just one more way of helping enthusiasts sharpen their skills about the latest methods and accessories available.
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Continued from Page 42
Evolving Marketplace
sociated with claims processing such as estimate and repair order auditing, capacity scheduling,
planning and utilization, call center, and data mining and analysis of key performance metrics results will be the collision repair providers last standing and preferred by insurance and other claims-generating companies. Our summary findings concluded that in 2012 there were 68 independent and dealership collision repair $20+M MLOs processing $4.5 billion annually through 1,363 production locations. While these $20+M MLOs represent 3.9 percent of the estimated 35,200 collision repair facilities nationally, they process 14.7 percent of the $30.7 billion in insurance and customer-pay collision repair revenue. On average, the $20+M MLOs process $3.3 million per production location, over four times more than the average annual revenue for
<$20M MLO repairers of $775,718. There are many smaller independent and dealer non-MLO repairers that achieve greater-than-the-industry average annual revenue, especially those who represent and operate in the
$10.0 million to $20.0 million segment. For the $20+M MLOs, the following chart reflects seven-year trends for the total number of MLO organizations, the number of collision repair facilities, and the market size for collision repair revenue. • The repairable vehicle revenue market moved upward slightly for 2012 • The downward trend for the number of collision repair facilities continues • The number of $20M MLO repair organizations trended up slightly for 2012
Key Findings for the 2012 MultipleLocation Network Operators (MLNs) • ABRA, CARSTAR and Maaco, all franchise organizations, and Fix Auto U.S.A., a fran-
chise and brand banner network, are all included as part of our multiple-location network segment for 2012. • Combined they represent a total of 922 locations generating approximately $1.3 billion in vehicle repair revenue or 4.4% of the U.S. repairable market • As a group, they have been relatively flat for both total number of locations and revenue for the last three years • CARSTAR now squarely positions itself as North America’s
largest MSO/MLN of independently-owned collision repair facilities • ABRA markets and includes its franchise operator segment as part of its MLO platform of independent, multi-region collision repair facilities. • Fix Auto, a franchise and extended brand network, represents that it is an international network of independently-owned and operated collision repair centers whose owner operator entreSee Evolving Marketplace, Page 52
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Evolving Marketplace
preneurs are committed to working together to improve performance and better serve the market. • Maaco positions itself as a collision, auto body repair and auto painting franchise organization. • We continue to see interest on the part of single-location and smaller multiple-location collision
repairers to investigate and consider the benefits of joining multiple-location franchisor and banner networks. Our geographic market representation for the $20+ million MLOs is highest in the Southeast at 28.3 percent. In 2008, the West was the dominant region with a 25.4 percent share; it now represents 25.7 percent of the market. The lowest $20M MLO representation continues to be in
10.4 percent. • Of the 68 $20+M MLO organizations, 40 do business in only one state. Of those 40 organizations, 33 are independents and 7 are dealers. • Within the top ten rankings, only three independent and two dealer MLO organizations strategically positioned themselves in only one state at the end of 2012. • The West has the highest number of $20+M MLOs with at least one location in that region;
28 MLOs are present which represents 41.2 percent of MLOs. The companies represented within the top ten MLO organizations have not substantially changed since 2006. While their share of all collision repair locations has been relatively constant, revenue among this group has been increasing year over year in total as well as per location. We do see significant share growth and higher ranking with
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OSHA Proposes Major Changes in Injury and Illness Reporting The Occupational Safety and Health Administration (OSHA) has proposed a major change to its rules regarding the way that employers report injury and illness data to the agency. On November 7, 2013, the OSHA Assistant Secretary Dr. David Michaels announced a new proposed rule that would require establishments with more than 250 employees, which are already required to keep injury records, to electronically submit them to OSHA on a quarterly basis, and establishments with 20 or more employees in industries with high injury and illness rates to electronically submit their injury and illness logs each year. Michaels said OSHA will post the data on its website, once personally identifying information is removed. Michaels said the newly proposed submission requirements will enable employers to compare their safety records against peers and will allow workers to know the safety records of potential employers. Aggregating data across industries also will help researchers identify emerging hazards and patterns, Michaels
said. On January 9, 2014, OSHA will hold a public meeting on the proposed rule in Washington, D.C. In addition, OSHA is accepting public comments for 90 days, until February 6, 2014. Under current rules, employers are required to post annual summaries of injury and illness reports in a common area where employees can see them. While the OSHA website contains raw numbers about incidents at certain workplaces, it doesn’t describe what the injury was or how it occurred. Business groups say they are likely to oppose the plan, claiming that raw injury data can be misconstrued or may disclose sensitive information that may be misused. Marc Freedman, executive director for labor policy at the U.S. Chamber of Commerce, said the mere recording of an injury does not tell the full story about the circumstances surrounding it or whether the company has a good safety program. “Making company-specific data on injuries available for all to see would be a major problem and would likely lead to companies being tar-
geted by outside groups who want to characterize these employers as having bad safety records,” Freedman said. Michaels announced the rule on the same day the Bureau of Labor Statistics released its estimate that there were almost 3 million nonfatal U.S. recordable workplace injuries and illnesses by private-industry employers in 2012. The incidence rate of injuries only in the private sector declined to 3.2 cases per 100 full-time workers in 2012, a decrease from 3.3 per 100 in 2011. The incidences of serious injuries and illnesses resulting in days away from work, job transfer, or job restriction—called the DART rate— remained steady in 2012. The BLS data indicated also that no one particular industry experienced an increase in injury or illness rates for 2012. Other key findings include the following: ● Manufacturing was the only private industry sector in 2012 in which the rate of job transfer or restriction only cases stemming from injuries/illnesses exceeded the rate of cases re-
sulting in days away from work, continuing a 15-year trend. ● Of the 3 million reported cases, the vast majority (more than 2.8 million) involved nonfatal occupational injuries. More than 75% of such injuries occurred in service-providing industries. ● Industries with the most frequent reports of workplace illnesses were goods-producing industries (34.3%) and manufacturing (29.5%). ● Injury and illness rates, although relatively unchanged from 2011, were significantly higher for public sector workers, with 5.6 cases per 100 fulltime workers. “Three million injuries are three million too many. We can and we must do better,” Michaels said. He called the proposed submission requirements “an effective, inexpensive, and non-prescriptive way” to encourage employers to do this. With the likelihood that OSHA reporting requirements could change soon, it’s important for businesses to make sure they understand and remain in compliance with OSHA’s recordkeeping rules.
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Make us your one-stop shop today! www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 53
SEMA 2013 Entertains, Informs and Wows the Crowd
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These dealers are Genuine VW Parts Wholesale Specialists. 54 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 55
the top ten independent $20+M MLOs who, with the exception of the mountain region, have a fairly even distribution across the 48 states. (See map below.) The following chart reflects our estimate of approximately 107 MLO repair organizations that process between $10M and $20M in revenue annually through approximately 530 production locations. Their combined total annual repair revenue is $1,370M or 4.5% of our total collision repair industry market size.
Continued from Page 52
Evolving Marketplace
duction locations and 54.1 percent of all $20+M MLO revenue. These top ten MLOs display trends similar to the total $20+M MLO group; higher revenue produced through fewer production locations. Smaller and non-MLO repairers, those with total collision repair revenue below $20 million annually, vary widely in claims revenue processed per location. For the top ten independent $20+M MLOs, the average repair revenue per location significantly surpasses that of their smaller and non-MLO counterparts at $3.2 million versus $775,718; more than four times greater average revenue per location. Top ten dealer $20+M MLO performance also exceeds their smaller and non-MLO counterparts at a repairs-processed average of $3.9 million per location versus $1.0 million per location for smaller and non-MLO dealer repairers; about four times more
The average revenue per location for the $10M to $20M segment is $2.6M as compared to the $20+M segment where average revenue per location was $3.2M. The following map depicts the geographic concentration of the top ten $20+M multiple-location operators.
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revenue per location. The trend for both the independent and dealer groups is toward higher revenue per location in the MLO versus non-MLO segments. Comparing the top ten independent and dealer $20+M MLOs, the independents have 118 percent more locations producing 71 percent more revenue than dealer repair organizations. However, in 2012 the top ten dealer repairers manage $3.9 million in average revenue per location versus $3.0 million per location for top ten independent organizations.
The number of production locations within the top ten independent $20+M MLO group has slowly but steadily been on the rise since 2006. The total number of production locations has increased along with their representative share of all $20+M MLO locations to 44.8 percent from 40.5 percent in 2006. This groupâ&#x20AC;&#x2122;s share of all $20+M MLO revenue has increased to 42.9 percent, up 8.9 percentage points from 34.0 percent in 2006. (See chart above.) The following map depicts the geographic concentration of
56 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
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Ford Settles Class Action Over Defective 03-07 Diesels
Ford Motor Co. has agreed to settle a class-action lawsuit over claims that it sold defective diesel engines in its 2003-07 Super Duty pickups and Eseries vans, according to reports in Automotive News. The now discontinued diesel 6liter V-8, manufactured by Ford's former diesel engine supplier, Navistar International, had myriad problems with the fuel system, turbochargers and other major components. According to the settlement, any U.S. purchaser and lessee of any 200307 Ford vehicle equipped with a 6-liter Power Stroke diesel engine is covered if the vehicle's exhaust gas recirculation (EGR) cooler and EGR valve, oil cooler, fuel injectors, or turbocharger was repaired, replaced or adjusted prior to 135,000 miles or six years. Each component is given a reimbursement limit. In addition, according to the settlement, if a class member paid a $100 deductible more than once for repairs under the fiveyear/100,000-mile engine warranty, Ford will reimburse $50 each for the second through fifth deductible paid, up to a limit of $200 for four de-
ductible payments. The settlement resolves dozens of class-action lawsuits against the company and entitles owners to be able to claim between $50 and $825 in reimbursement for post-warranty repairs to their engine and engine components. Poor engine quality, high repair costs and sinking customer satisfaction ended the relationship between Ford and Navistar, which had built every Power Stroke engine used in Ford's F-Series since 1994. In 2010, Ford replaced the Navistar diesel with a new 6.7-liter diesel V-8 that the company designed in-house. That engine is built in a plant in Mexico. Some 6-liter failures were so severe that Ford had to replace complete engines. Ford also ended up buying back hundreds of trucks that couldn't be easily repaired. The engine problems dramatically increased Ford warranty costs and led to litigation with Navistar. Ford said customers can visit www.dieselsettlement.com for more information. Those eligible have until Dec. 31 to download and submit claims to the settlement administrator.
Honda Takes Top Spots as Most Researched, Purchased Used Vehicles in Q3
The Honda Civic came in the No. 1 spot for most researched used vehicle in Q3, according to Edmunds.com Japanese models once again sweep the No. 1 and No. 2 spots for most researched and purchased used vehicles in the third quarter. The most researched used vehicle last quarter was the Honda Civic, followed by the Honda Accord. Even though Edmunds.com officials said the most researched list is normally “dominated by economical vehicles,” the BMW 3 Series still made it at No. 3. Edmunds.com also said there is a newcomer to the list: The Nissan Altima at No. 10. The report states that the launch of a new generation likely brought attention to the model. The top 10 most researched used vehicles in Q3 are as follows: 1. Honda Civic 2. Honda Accord 3. BMW 3 Series 4. Honda CR-V 5. Toyota Camry 6. Ford F-150 7. Jeep Grand Cherokee 8. Volkswagen Jetta
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Southeast Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Georgia Collision Industry Association Looks to the Future with Chasidy Rae Sisk
Established 16 years ago, the Georgia Collision Industry Association (GCIA) has turned their sights to the future of the industry, both in terms of growing their association and in looking out for the next generation of collision repairers. As GCIA focuses on Howard Batchelor the future, they’ve also taken a stand against several problems facing the collision repair industry, as Executive Director Howard Batchelor explains. The GCIA was founded in 1997 by a group of concerned collision center owners and managers who felt that they need to form an organization to represent the interest of collision repairers in their state. Their mission is “to promote professionalism and consumer awareness of the automotive collision repair industry in Georgia.” GCIA also continues to inform and educate their members on new technologies, legislative issues and environmental concerns. Currently, GCIA has around 60 members, but they are always looking to increase membership and expand the association. Batchelor notes, “being a volunteer association, it’s hard to find people to commit the time needed to grow the association. Though we continue to struggle with participation and membership, we feel that through our efforts, we are improving the industry for all.” Their efforts to expand the association has led GCIA to establish several goals for the imminent future: to create several additional GCIA chapters throughout the state and to set up a group of committees within the organization. Though GCIA has not firmly defined these plans, they hope to establish legislative, membership and educational committees, at a minimum. According to Batchelor, “the purpose of these committees is to be actively working on projects that will benefit the industry.” GCIA’s focus on the future has created an additional goal, as well, which is to design a program to recruit young people to the collision repair
industry. The increasing age of repairers and the lack of younger repairers entering the field has been a concern plaguing the industry nationwide for several years, and GCIA hopes to aid in rectifying this problem through their efforts. GCIA took a step towards this goal recently when they donated $2000 to Maxwell high School to help them purchase equipment and supplies for their automotive collision repair program. The funds were raised from sponsors at GCIA’s annual golf tournament on October 2, 2013, and board members Gregg Goff and Michelle Coombs presented the check to students and instructors in the program. Emphasizing the importance of supporting youth interested in pursuing a career in the industry, Batchelor notes, “the children in these programs are the future of our industry, so we want to ensure that they are provided with the tools, equipment and training necessary for success.” Although these future-focused goals will benefit GCIA and the collision repair industry in the long run, there are also several more pressing issues which GCIA is monitoring and with which they are staying actively involved. When asked about the biggest challenges currently facing the industry, Batchelor notes, “we feel that the insurers are becoming increasingly involved in the collision repair process. Collision repair facilities are the professionals, and they need to be able to fix the car according to OEM recommended procedures without the interference of insurance companies.” Naturally, the mention of insurer interference led to PartsTrader, and GCIA has taken a position against PartsTrader because, according to Batchelor, “we believe that insurance companies should be involved in selling policies and settling claims, but they should not be involved in the operation of a collision repair facility.” In fact, GCIA has invited John Mosley, Steve Plier and John Eaves to their January meeting to discuss the PartsTrader injunction and short pay lawsuits. GCIA is opposed to the PARTS
58 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Act legislation because “the OEMs have spent a considerable amount of money to design, test and certify these parts. We want to make sure that the parts that are installed on the vehicle meet these standards,” Batchelor explains. GCIA has not taken a position on Right to Repair because their members have not yet asked them to do so. Currently, GCIA has not introduced any legislation, but they’ve had discussions with several legislators about the loss of sales tax on P&M caps and manipulation of the database. They hope to hire a lobbyist soon to work with legislators on issues affecting the industry, and when they hire their lobbyist, they will begin working on their legislative agenda. GCIA is comprised of a group of collision repair professionals, and as such, their members understand that they can never have too much information about operating their businesses and the industry as a
whole. They recognize that this profession requires a high level of expertise and knowledge to perform their daily duties, especially with the recent and continuous advancements in technology, so the association strives to keep their members informed about the collision repair industry in GA and beyond. They realize that in this rapidly changing industry, there are two choices: get involved and turn a blind eye; GCIA members choose to get involved and try to make a difference in their industry. This desire to impact the future of the industry is also evidenced by the fact that GCIA is an affiliate chapter of the Society for Collision Repair Specialists (SCRS). Georgia Collision Industry Association (GCIA) PO Box 1252 Cumming, GA 30028 770-367-9816 www.gcia.org
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www.autobodynews.com | DECEMBER 2013 AUTOBODY NEWS 59
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, Great Lakes Associations 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.
Indiana Auto Body Association Spearheads Petition to Stop Insurer Tortious Interference with Chasidy Rae Sisk
The Indiana Auto Body Association (IABA) was founded at the beginning of 2004 by a group of forward-thinking shop owners and vendors with the mission of promoting “professionalism and consumer awareness of the automotive collision repair industry in the state of Indiana.” Near the end of 2004, IABA’s Board of Directors asked Tony Passwater to fill the role of Director for the association because they felt it would be best to engage someone who was not a shop owner or vendor to grow the organization for the future. Passwater notes Tony Passwater that, at the association’s conception, “it had been almost eight to ten years since the last association had folded, and the timing was right.” IABA was founded on a multifaceted Code of Ethics. This code dictates that their members conduct all business practices in a lawful and professional manner. They must also recommend only proper collision repair procedures and explain to the customer why these repairs are required to correct the collision damage the vehicle suffered. Other items contained within the code of ethics include: offer the customer a price estimate for the work to be performed, obtain prior authorization for all work, notify the customer when promises cannot be kept, furnish an itemized list for all parts and services, exercise reasonable care of the consumer’s property during the repair, maintain a system to settle customers’ complaints, cooperate with all established consumer complaint mediation activities, maintain a high quality level of repairs, and cooperate in a good business manner with insurer representatives and make a sincere effort to provide affordable service to the motoring public. According to Passwater, IABA’s short-term goals include growing IABA to the largest state association in the midwest and providing tangible benefits to members, as well as informing consumers that they have the right to choose the collision repair fa-
cility that works on their vehicle and educating them on how to choose wisely. These goals contribute to the association’s long-term objectives of protecting consumers from steering and improper repairs and of providing a resource that improves the professionalism and unity of the collision repair industry as a whole. Some of IABA’s current projects focus on attaining these goals. In addition to trying to maintain and improve data privacy, they are also struggling to eliminate double taxation on some paints and materials. Additionally, IABA supports members pursuing short-pay lawsuits as they try to establish standards for collecting funds on operations performed that insurers refuse to compensate shops for completing. Passwater notes that IABA is also involved in “stopping insurer-mandated programs that interfere in the industry’s business,” such as PartsTrader which he sees as “tortious interference that only benefits the insurers to fuel their greed... it is extortion and tactics used by the Mafia.” In mid-September, IABA hosted six meetings across the state, which were attended by over 325 shop owners, managers and industry vendors, to discuss issues related to insurer-mandated programs, such as PartsTrader and American Family’s APU Solutions. Attendees were fearful of what insurers are doing to the industry, and many felt hopeless about doing anything to circumvent these programs. Panel discussions served to inform participants of the options available for stopping these programs as well as to educated them on the actions being taken on local, state and federal levels to eliminate insurer interference in the collision repair industry. The panel consisted of Lloyd Bush of Bush Collision in AL, Marvin Windham of Benchmark Chrysler in Birmingham AL, Steve Plier of C.A.R.E. in Hoover AL, and John Mosley of Clinton Body Shop in Clinton MS. A webcast of the panel discussion can be viewed at www.IABAlive.com. IABA has committed itself to using whatever actions are necessary to prevent this form of extortion,
60 DECEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
whether the means are legal, legislative and/or related to public awareness. The association has come out in support of SCRS’s position on PartsTrader and similar programs because “the IABA believes, as other associations and leaders have recently stated, that all repair decisions, vendor selections, and business processes should be left to the collision repair professionals who work on these vehicles, and have been entrusted by the vehicle owners to make correct repair decisions regarding their vehicles.” IABA recognizes that such programs are not designed to improve efficiency or to benefit the consumer; these efforts seek only to increase insurers’ profits and to allow insurers to establish more control over the collision repair industry. In late October, IABA organized a nationwide petition to stop insurermandated parts procurement programs, and they are encouraging their
members and other collision repairers across the country to sign it by visiting www.1963ConsentDecree.com. Their email blast, sent on October 24, explained, “To make change happen requires action, but it often begins by the smallest of actions. History has shown that changes begin not by the war to end all wars but by the individual battles that define the injustice and dedication to the need for that change by those willing to accept the challenge.” They plan to use this show of support to regain control of the industry. In addition to the challenges imposed by these type of programs, Passwater lists several other challenges facing the industry which need to be addressed for the benefit of the collision repair industry as a whole: labor rate suppression, the manipulation of estimating systems and databases, the unequal enforcement of current EPA and OSHA laws, and
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“improper repairs due to new technology and the inability to purchase the training and equipment needed to repair the vehicle properly.” Though IABA has not taken an official stance on the PARTS Act, Passwater believes “OEMs should be afforded the same protection as any industry for their investment in technology and innovation.” Regarding the Right to Repair, Passwater’s opinion is that “everyone needs the information equally to repair the vehicles today.” In the beginning of 2013, IABA also implemented a comprehensive consumer-focused member benefit entitled “A Shop You Can Trust.” According to Passwater, “this program is available to IABA members that meet the qualification process. It includes a consumer focused website listing (www.aShopYouCanTrust.com), and three additional optional programs that are designed to eliminate steering and create customer loyalty. It has cobranded materials with the Better Business Bureau available. A webcast about the program is available at www.IABAlive.com.” Covering the entire state of IN, IABA currently consists of 105 mem-
ber shops, plus 15 supplier sponsors. IABA has designed numerous benefits to attract members, and according to Passwater, “with our affiliation with SCRS and ASA, they are even greater. Our greatest benefit is our partnership with Associated Insurance Agencies. They have saved our members thousands of dollars yearly.” Still, there are always challenges inherent for any industry association to maintain operations, Passwater admits. “As with any state association, we constantly struggle to match time focus on dollars available. Even though we have tangible benefits that outweigh our members’ yearly dues, we still have only 10% to 12% of the shops members and much less for industry-related vendors and suppliers.” IABA PO Box 532364 Indianapolis, IN 46253 (317)290-0611 x201 www.iaba.info
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Class Action Filed in West Virginia Alleges Collusion Between Liberty Mutual and DRPs
Regina Anderson, on behalf of herself and a class of other similarly situated, filed suit against Liberty Mutual Insurance in the Circuit Court of Wyoming County. In her suit, filed Sept. 16, Anderson claims Liberty Mutual violated West Virginia law by using deceptive business practices. Liberty Mutual removed it to U.S. District Court for the Southern District of West Virginia on Oct. 15. The lawsuit stems from what Anderson believes to be collusion between Liberty Mutual and auto repair shops. According to Anderson, her claim is focused on Liberty Mutual’s “Total Liberty Care” program for auto insurance. Anderson claims that under this program, Liberty Mutual steers its insured customers in need of auto repairs to Liberty Mutual’s preferred list of auto repair shops. In return, the repair shops allegedly agree to comply with certain conditions and targets imposed by Liberty Mutual, including the time spent on repairs, in exchange for their spot on Liberty Mutual’s preferred facilities list. Anderson goes on to say the insureds are not required to go to the
preferred shops, but Liberty Mutual makes it much simpler and convenient to use the preferred shops. Anderson also alleges Liberty Mutual encouraged the preferred shops to use replacement auto parts in violation of West Virginia law. Anderson was in an accident and claims Liberty Mutual steered her to the preferred shop called Greg Chandler’s Frame and Body LLC. According to Anderson, she found out that Liberty Mutual told Chandler to use a replacement part on her vehicle, in violation of West Virginia law, or else risk losing its status on the preferred shop list. Anderson now files suit for her injuries as well as injuries to those who have experienced similar injuries based on their relationship with Liberty Mutual. Anderson is seeking compensatory damages for the difference in value of the new parts she claims Liberty Mutual should have provided and the replacement parts installed in her car. She is also seeking punitive damages to deter future violations by Liberty Mutual and other auto insurers. Anderson is represented by Stuart Calwell and Alex McLaughlin of Charleston.
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3M Says ‘No More Compounding’ with New System
Almost any paint professional would agree, compounding is the most difficult step in the traditional paint finishing process. The time, the heavy polisher, the mess of the rubbing compound—it all adds up to a significant speed bump in the process of delivering a high-quality paint finishing job. To remove that speed bump, 3M Automotive Aftermarket has re-invented the paint finishing process to eliminate the compounding step—thanks to an advanced paint finishing system that features 3M™ Trizact™ abrasives and 3M™ Perfect-It™ 1 Finishing Material. The new 3M Perfect-It Paint Finishing System replaces messy compounds and heavy polishers with a 3M Trizact abrasive disc and DA sander. This new process delivers one-step, highgloss finishing on today’s automotive paints. For paint professionals, the new 3M Perfect-It1Paint Finishing System offers one-step finishing; deeper, glossier finishes; less time with a heavy polisher; reduced rework and comebacks; cleaner jobs and reduced time for detailing.
CARSTAR Expands with 3 Locations: MA, FL, and OH
CARSTAR announced expansions to its network of collision repair facilities in Boston, MA, St. Augustine, FL, and Troy, OH. Bob Waldron, owner of Waldron’s CARSTAR Auto Body in Marlboro, MA, and Lancaster A-1 A B CARSTAR in Lancaster, MA, has opened a third location, Thomas Waldron CARSTAR Auto Body, located at 225 Grafton Street, Worcester, MA, 01604. The location provides Waldron an expanded presence in the Boston market. CARSTAR has opened its first location in St. Augustine, FL, Cruisers CARSTAR Collision Center. Owned by Lindsey Fregenti and Harold Gear, Cruisers CARSTAR Collision Center recently moved to a new 10,000 square-foot location at 620 South Holmes Blvd, in St. Augustine. Cruisers has served customers in the St. Augustine area for more than 15 years. Tom Martin, owner of Sidney Body CARSTAR in Sidney, Ohio, is building a new location in nearby Troy. The new Troy CARSTAR will be located at 15 North Kings Chapel Drive in Troy.
Saab Auto Parts Rebranded as Orio AB
Saab Automobile Parts has rebranded as Orio in a move which sees it broaden its business outside of the Saab marque. The Swedish stateowned aftersales business emerged after the collapse of Saab and operates 10 subsidiaries across Europe and the US. Its UK subsidiary will rebrand over the next couple of months. “The overall strategy, besides investing even more in serving Saab owners, is to widen the company's customer base, parts product portfolio and offer logistics services as well as other services,” said Lennart Ståhl, CEO of Orio AB. “We will continue to deliver Saab Genuine parts to all our customers and we are in the process of developing our offer of product widening towards new markets and customers.” Saab genuine parts will remain the core business of the rebranded operation but it plans to diversify into logistics, what it terms “technology services” and a wider parts portfolio. “As the sole distributor of the entire range of Saab genuine parts across the globe, Orio will continue to support and supply Saab Service Centers, workshops and Saab owners with reliable service and expertise,” he said.
Honda’s Attorneys Respond to Amended Class Action
Honda has filed a motion in the U.S. Central District Court of California, western division, denying plaintiffs’ claims in a master class action complaint which alleges some of the automaker’s vehicles have defective window regulators. In the case, Grodzitsky versus American Honda Motor Co., the plaintiffs argue the window regular defect results in the sidelite falling into the door frame or becoming stuck in the fully-open position. “Honda denies each and every allegation of the second-amended complaint,” Honda’s attorneys write in court documents. The automaker’s attorneys pointed out that the sales contracts which the defendants agreed to when they purchased their vehicles contain “arbitration clauses that may require some or all of the claims asserted [in the case] to be resolved through arbitration.” Honda’s attorneys said the alleged window regulator defect could be the result of plaintiffs’ actions. Honda’s attorneys asked the court to enter a judgment in favor of Honda for the costs of the lawsuit, to deny the class action and to award “further relief as the court deems just and proper.” The attorneys are demanding a trial by jury.
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