Northeast 0813 issue by Autobody News

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VOL. 3 ISSUE 5 AUGUST 2013

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ASA to Hold ASRW 2014 in Detroit Alongside I-CAR and CIC July 28–Aug 2 The Automotive Service Association (ASA) announced at the Collision Industry Conference (CIC) in Boston that the NACE expo will be moving away from its traditional fall event schedule to stage a summer show beginning in Detroit in 2014. NACE (the International Autobody Congress & Exposition), I–CAR (Inter–Industry Conference on Auto Collision Repair) and CIC (Collision Industry Conference) have announced the formation of Industry Week 2014, uniting several of the industry’s key events. The announcement was made by ASA Executive Director Dan Ris-

ley at the opening of this week’s CIC meetings at the Westin Boston Waterfront. Speaking in front of the assembly, Risley said the move backs the ASA’s promise he relayed at CIC in April that NACE will see substantial changes in the coming years. Industry week will take place July 28–Aug. 2, 2014 at Detroit’s Cobo Center, and has the following preliminary schedule of events: Tuesday, July 29 – CIC Meeting & Reception Wednesday, July 30 – I–CAR Conference & Reception See ASRW 2014, Page 13

State Lawmakers Around U.S. Consider Or Approve Legislation Affecting Body Shops

Parts-related legislation A New York bill (A 7234) (similar to one introduced in Maryland) takes aim at PartsTrader by prohibiting an insurer from requiring a shop to use a specific vendor or process for the procurement of parts or materials necessary for repair of a vehicle. Another New York bill (A 3872) introduced would require consumer notification and consent regarding the type of parts to be used in repairing their vehicle, and would prohibit the See Legislation Affecting Shops, Page 14

P.O. BOX 1516, CARLSBAD, CA 92018

Dozens of proposed laws that will have an impact on collision repairers get introduced in state capitols around the country every year. Paying attention to them—even if they aren’t up for consideration in your state now—can pay off because you may be interested in getting similar laws enacted in your state. Conversely, a bill you don’t like in another state could make its way to your Capitol, so it’s helpful to know what to watch for. Here’s a look at some of the bills that have recently been introduced, are under consideration or have been

passed by lawmakers around the country.

Change Service Requested

by John Yoswick

Carlisle and Company Blogs on PartsTrader Carlisle and Company is a consulting firm, not to be confused with Carlyle Group (an American-based global asset management firm active in acquiring collision MSOs, such as Service King recently), which develops market strategies that help OEMs manage risk and optimize performance. Carlisle and Company is known for its data benchmarking, both in service and parts, designed to help member companies improve dealer service support, and service quality to vehicle owners. One of their groups, the North America Parts Benchmark (NAPB, formerly NASPC) has been analyzing the parts supply chain since 1993, so it’s interesting to read the company blog, which recently addressed the ongoing PartsTrader controversy. The text following comes directly from the Carlisle blog (www.carlisle-co.com):

If you’re involved with the collision repair industry, you’ve no doubt

PartsTrader rollout plan

heard the hullaballoo regarding State Farm and PartsTrader. For those who haven’t, here’s a brief summary: State Farm recently launched PartsTrader, a mandatory online parts ordering platform for their Select Service (Direct Repair Program (DRP)) shops. These Select Service See Carlisle and Co., Page 8

CIC in Boston: 200 Diverse Voices by Chasidy Rae Sisk

Boston was established in 1630 by Puritans seeking rights they had been denied in the old world. It is a city renowned as a leader in innovation, and the large population of teachers and students who congregate in its plethora of educational facilities has caused many to dub Boston as the “Athens of America.” The Boston Tea Party is just one example of Bostonians overthrowing the tyranny of a ruling third party who wanted to dictate costs that were none of their concern. With such a reputation, it is fitting that collision repair professionals chose Boston as the place to gather and discuss current trends and concerns in this ever-changing industry. Held in conjunction with ICAR’s meetings in the same location, the Collision Industry Conference (CIC) met on Tuesday, July 23 and Wednesday, July 24 at the Westin Boston Waterfront, located at 425

Summer Street. Over 200 collision repair professionals gathered in the hotel’s Grand Ballroom to hear what’s been going on at CIC and throughout the industry as a whole. After Chairman George Avery called the meeting to order on Tuesday afternoon, CIC opened with the national anthem, accompanied by a video which depicted a collage of American scenery and symbolism. This was followed by a general welcome, antitrust guidelines and finally CIC’s mission statement which establishes the meeting as “a forum where collision industry stakeholders come together to discuss issues, build broad understanding, find common ground and communicate to the industry atlarge, findings and possible solutions.” John Van Alstyne, President and CEO of I-CAR, briefly advertised Thursday’s Collision Repair Education Foundation (CREF) golf tournaSee CIC in Boston, Page 18

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

2 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

Contents

COLUMNISTS Attanasio: Pinterest, Instagram and Tumblr— Three ‘New’ Forms of Shop Media . . . . . . . . 34 Franklin: Still Using a Quota System For Consumer Sales? . . . . . . . . . . . . . . . . . 42 Insider: Insurers Hate to Admit It, But Our Success Depends On You and Your Estimators . . . . . 46 Sisk - Repairer-Only Rountable Airs the Issues Important to Repairers . . . . . . . . . . . 10 Sisk - SCRS Board Meeting: Partial Panels, Labor Rates, SkillsUSA . . . . . . . . . . . . . . . . 20 Yoswick - Historical Snapshot: A Look Back at this Month in Collision News History . . . . 22 NATIONAL ‘Da Wagon’ Pulls Them In for Auto Body Hawaii on the Big Island . . . . . . . . . . . . . . . 40 ASA Meets with Administration Re MFN Clauses . 42

our being able to properly serve our customers and our employees. Insurers have continued cutting their costs while our costs for labor, materials and overhead have steadily increased. The only way we could survive was to either concede to the underpayments and cut our quality of materials and labor…or push back. We found shortpay litigation necessary to stop the insurer’s practice of underpaying our customers and to enable us to provide the quality repairs that earn our customers (and their referrals) for life.” Schaech credited a free legal seminar in Florida hosted by Barrett Smith of Auto Damage Experts, Ray Gunder of Gunder’s Auto Center and Gunder’s attorney, Brent Geohagan, with motivating him and giving him the information he needed to take action. “That was a turning point for us. To hear Ray talk about how he knew that if he hadn’t done something he would be out of business struck a chord in me, and I knew then that I, too, needed to do something or we would lose our business,” Schaech said. “Ray gave much credit to his success in having a great support team in Barrett as his consultant and Brent as his legal counsel.”

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: Tom Franklin, David Brown, John Yoswick, Rich Evans, 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

Amato Agency. . . . . . . . . . . . . . . . 14 Audi Wholesale Parts Dealers. . . . 45 Axalta Coating Systems . . . . . . . . . 5 BASF . . . . . . . . . . . . . . . . . . . . . . . 11 BMW Wholesale Parts Dealers . . . 43 Car-Part Pro. . . . . . . . . . . . . . . . . . 31 Central Avenue Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . 23 Certified Automotive Parts Association (CAPA) . . . . . . . . . . 21 CJ, Inc. - Signature - Star-A-Liner . 39 Classifieds . . . . . . . . . . . . . . . . . . . 54 DCH Family of BMW Stores . . . . . 25 Ditschman/Flemington Auto Group. 19 Empire Auto Parts . . . . . . . . . . . . . 18 Equalizer Industries. . . . . . . . . . . . . 6 Ford Wholesale Parts Dealers. . . . 51 Forklift Wrecker . . . . . . . . . . . . . . . . 4 Fred Beans Parts. . . . . . . . . . . . . . 56 Future Cure . . . . . . . . . . . . . . . . . . . 8 Garmat. . . . . . . . . . . . . . . . . . . . . . . 9 Generation Kia . . . . . . . . . . . . . . . 12 Glanzmann Subaru . . . . . . . . . . . . 22 GM Wholesale Parts Dealers . . . . 32 Hackettstown Honda. . . . . . . . . . . 24 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers. 47 Jaguar Wholesale Parts Dealers. . 55

publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2013 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

ASA to Hold ASRW 2014 in Detroit Alongside I-CAR and CIC July 28–Aug 2 . . . . . . . . . . . . 1 ASRW Will Have Main Stage with Rotating Speakers . . . . . . . . . . . . . . . . . . . . 13 Body Shop Foreman in Las Vegas Charged with Shooting . . . . . . . . . . . . . . . . 52 CAA Urges Shops To Monitor Insurer Compliance with New Regulations . . . . . . . . 43 Caliber Completes Another Successful Food Drive. . . . . . . . . . . . . . . . . . . . . . . . . . 44 Carlisle and Company Blogs on PartsTrader. . . . 1 Car-O-Liner Gets Honda Approval As Official Supplier . . . . . . . . . . . . . . . . . . . . . . 46 CARSTAR Adds Southern California Location. . 43 Chrysler Issues Recall on Air Bag Modules . . . 30 CIC in Boston: 200 Diverse Voices. . . . . . . . . . . 1 Florida Pays Rewards For Tips on Insurance Fraud. . . . . . . . . . . . . . . . . . . . . . 49 Ford to Hire 3000 Salaried Workers in 2013. . . 30 Ford to Recall 13K Vehicles over Door Latches . 30 Future Looks Bright for U.S. Auto Industry, Hiring, Sales . . . . . . . . . . . . . . . . . . . . . . . . 31 Gene Crozat of G&C Auto Body Can’t Seem to Give Enough, Fast Enough . . . . . . . . . . . . 38 GM and UTI Partner to Help Grow Supply of Auto Techs . . . . . . . . . . . . . . . . . . . . . . . 30 GM to Recall Four 2012 Volts . . . . . . . . . . . . . 30 Honda Reponds to Amended Class Action Complaint. . . . . . . . . . . . . . . . . . . . . 31 I-CAR Tech: OSHA Hazard Communication Standard Revision . . . . . . . . . . . . . . . . . . . . 48 Japan’s Diamond Electric to Pay $19M Price Fixing Fine . . . . . . . . . . . . . . . . 30 Japan’s Toray Buys Stake in Plasan Carbon Composites. . . . . . . . . . . . . . . . . . . 30 LA CAA Featured BMW i3 Technology at June 19 Meeting . . . . . . . . . . . . . . . . . . . . . 45 MB-USA Pays Out Another $260K in Long-Running WI Lemon Law Case as Legislature Hears Revised Law . . . . . . . . 55 NASCAR’s Carl Edwards Drives ‘Sweepstakes’ on Henry Ford’s 150th Birthday Celebration in Honor of Ford’s One and Only Race . . . . . 50 Nissan Plans Major Reforms in Buying, Shipping, Building . . . . . . . . . . . . . . . . . . . . 30 NOLA Shop Owner Implicated in Cover-Up of Hit and Run, Fourth Suspect Sought . . . . 32 OEMs, CARE, and AAIA Seek Solution to Right to Repair . . . . . . . . . . . . . . . . . . . . . . 31 Oregon Body Shops Grade Insurance Companies. 51 Rearview Cameras Delayed . . . . . . . . . . . . . . . 30 Risley Added to AMI Board . . . . . . . . . . . . . . . 44 Rodney Pierini is President & CEO of CAWA, Operating in California, Nevada, Arizona. . . . 54 State Lawmakers Around U.S. Consider Or Approve Legislation Affecting Body Shops . . . 1 Steve Belknap, Illinois Shop Owner, Restores 1947 Ford Pickup Found Roadside. . . . . . . . 50 VISA and Mastercard Owe About $7.25 Billion to Merchants Who Have Taken Cards Since 2004, Fairness Hearing on Sept. 12 Could Change Amount Owed. . . . . . . . . . . . . . . . . 47 Volvo: Six State Class Action Should Not Be Certified. . . . . . . . . . . . . . . . . . . . . . 31 Wisconsin Moves to Reform its Lemon Law Known for Excessive Awards . . . . . . . . 52

A Maryland body shop owner has won a short-pay lawsuit he filed against GEICO on behalf of a customer. Mark Schaech, co-owner of Mark’s Body Shop of Baltimore, filed the suit against GEICO due to the insurer’s refusal to pay $392.95 in repair costs on behalf of its policyholder. The underpayments included: degreasing vehicle prior to repair; feather, prime and block repaired panels; clean vehicle for delivery; clear OBD fault codes; reset electronics (recorded settings); mask for primer; and overhaul door handle for refinishing. “We offer exceptional quality and service to our customers, and to continue to do so without being properly compensated is simply unreasonable and unsustainable,” said Schaech. “While my father (partner) and I would rather avoid having to take such legal actions, something had to be done as the insurer’s efforts to underpay our customers continued to increase. I felt like that guy in the movie Network where he stuck his head out the window and yelled, ‘I’m mad as hell and I’m not taking this anymore!’ “While Maryland does not allow the recovery of legal fees to the prevailing parties in such issues, we couldn’t allow that to be a deterrent in

Indexof Advertisers

REGIONAL 2 Hurt in Paterson, NJ, Shop Fire, Firefighters Exhausted . . . . . . . . . . . . . . . . . . 4 Audra’s “What Women Auto Know” Now a TV Show . . . . . . . . . . . . . . . . . . . . . 36 Baltimore Body Shop Called “Hub... for Burglary and Drug Trafficking,” 16 People Arrested . . . 4 Bernie’s Auto Body Fire in East Patchogue Investigated. . . . . . . . . . . . . . . . . . . . . . . . . 36 Body Shop Headed for Legal Battle with Manor Twp, PA . . . . . . . . . . . . . . . . . . . . . . . 6 Cicero, NY, Body Shop Crash. . . . . . . . . . . . . . 36 Closed Body Shop Raided by FBI in Schaghticoke, NY . . . . . . . . . . . . . . . . . . . . 36 Lynn, MA, City Inspectors Order Shops to ‘Clean Up’ . . . . . . . . . . . . . . . . . . . . . . . . . 4 MA Auto Glass Regulations to Take Effect this Summer . . . . . . . . . . . . . . . . . . . 17 MA Shop Workers Wilt in the Humidy, Not Just the Heat . . . . . . . . . . . . . . . . . . . . 36 MD Shop Owner Wins A Short-Pay Lawsuit vs GEICO . . . . . . . . . . . . . . . . . . . . . 3 New Canaan, CT, Body Shop Fire Starts in Emissions Testing Bay . . . . . . . . . . . . . . . 26 New Holland, PA, Body Shop Hit By Run Away Vehicle . . . . . . . . . . . . . . . . . . . . . 4 North Bergen, NJ, Tow Firm Accused of Duping County . . . . . . . . . . . . . . . . . . . . 16 NY Cadillac Dealer Wrapped up in Tainted Construction . . . . . . . . . . . . . . . . . . 36 NYC Firms with 20 or More Employees Must Pay Sick . . . . . . . . . . . . . . . . . . . . . . . . 6 Oneida, NY, Shop and Parts Store Extensively Damaged. . . . . . . . . . . . . . . . . . 36 Protesters Show Up at All-Star Game as NYC Continues Redevelopment of Willett Point, August Eviction Looms . . . . . . . . . . . . . . . . . 6 Rhode Island Governor Signs Total Loss Bills. . 16 Robert N. Kanar Sr. Passes . . . . . . . . . . . . . . . . 6 Shop Owner’s Guard Weiner Dog Statue Has Been Found . . . . . . . . . . . . . . . . . . . . . 12 Sisk - Executive Director Jillian Zywien Contributes Expertise in Public Relations to AASP/MA . . 53 Sisk: Auto Body Association of Connecticut Supports Members’ Concerns and Fights Unfair Legislation. . . . . . . . . . . . . . . . . . . . . 44 Woman Claims NJ Shop has Scammed her out of Motorcycles . . . . . . . . . . . . . . . . 17

MD Shop Owner Wins A Short-Pay Lawsuit vs GEICO

Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 38 Koeppel VW-Mazda. . . . . . . . . . . . 17 Lexus of Edison. . . . . . . . . . . . . . . 10 Lexus Wholesale Parts Dealers. . . 40 Malco. . . . . . . . . . . . . . . . . . . . . . . . 9 Maxon Hyundai . . . . . . . . . . . . . . . 16 Maxon Mazda . . . . . . . . . . . . . . . . 35 Mazda Wholesale Parts Dealers . . 36 MINI Wholesale Parts Dealers. . . . 42 MOPAR Wholesale Parts Dealers . 33 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 48 Plaza Auto Mall . . . . . . . . . . . . . . . 41 Porsche Wholesale Parts Dealers. 53 PPG . . . . . . . . . . . . . . . . . . . . . . . . . 2 Ruge’s Parts Center . . . . . . . . . . . 34 Security Dodge-Chrysler-Jeep . . . . 7 SEMA Trade Show . . . . . . . . . . . . 15 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . 12, 13 Subaru Wholesale Parts Dealers . 37 Thompson Organization . . . . . . . . 27 Toyota Wholesale Parts Dealers . . 49 VIM Tools . . . . . . . . . . . . . . . . . . . . 52 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 46 Volvo Wholesale Parts Dealers . . . 45 Yonkers Kia . . . . . . . . . . . . . . . . . . 20

www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 3

Baltimore Body Shop Called “Hub... for Burglary and Drug Trafficking,” 16 People Arrested

Sixteen people involved in a highly dangerous crime ring based in Baltimore are behind bars. It comes after years of narcotics distribution and commercial burglaries across the mid-Atlantic. A key piece of the puzzle that led to the arrests came from a sheriff’s office central Virginia. The Greene County Sheriff’s Office got involved in this case after a bank robbery in April 2012. Now, the office has provided the key piece of information that led to the identification of David Paschall, William Metcalf, Ronald Henderson, Mark Johnson and their arrests. The identification of these men by the Greene County Sheriff’s Office led to the arrest of 16 people involved in a dangerous crime ring spanning several years and at least four states. “This is an organized crime group. It’s very structured, very dangerous and the impact has been horrible,” said Captain David Roach of the Greene County Sheriff’s Office. The Greene County Sheriff’s Office says those men were behind a break-in at the University of Virginia Credit Union in Ruckersville in April

2012. Since then, investigators have worked alongside officers from Maryland, West Virginia, Pennsylvania and other parts of Virginia to connect this incident to a string of other commercial burglaries and a conspiracy to distribute prescription drugs, heroin and cocaine. “It’s a culmination of a large organized organization in the business of distributing various forms of Schedule II narcotics,” said Roach. “That business is supplemented by commercial burglaries and robberies.” Greene County’s identification of David Paschall led investigators to Paschall’s Auto Body Shop in Baltimore. “Paschall Auto Body is a hub similar to a compound where much of the planning and orchestrating of these burglaries and drug trafficking occurred,” said Roach. The U.S. Attorney’s Office for Maryland announced, on July 18 hundreds of officers from different jurisdictions searched 21 locations simultaneously. They arrested 16 people and seized money, drugs, guns and stolen property—but the case isn’t closed.

2 Hurt in Paterson, NJ, Shop Fire, Firefighters Exhausted

Two people were hurt – one of them suffering severe burns – when a fire broke in the auto repair shop where they were working in Paterson, N.J. July 5. The fire broke out in the afternoon at Jose’s Generators on Oak Street in Paterson. The men were working on a car that caught fire. One of them suffered severe burns and was taken to the St. Barnabas Medical Center Burn Unit in Livingston. Paterson fire Deputy Chief Mike Fleming said the hot and humid weather made for brutal conditions for firefighters in battling the blaze. “We have to rotate them frequently through a rehab area— drinks, you know, air conditioned fans, and give them breaks. And unfortunately, we’ve got to keep rotating the personnel through here, so it pretty much wipes out the fire department on a day like today,” he said. Fleming said temperature inside the gear can reach 120 degrees. “Eighty pounds of gear, plus you’re sweating, plus the humidity – it takes a toll on the guys,” he said. “You get about a 10-minute work span out of a guy with full gear. That’s about it.”

New Holland, PA, Body Shop Hit By Run Away Vehicle

New Holland, PA, police say a vehicle crashed into an auto body shop there because of an issue with the brake system. The car crashed through the window and into the showroom at O’Neill’s Auto Body in

New Holland at about 10:50 p.m. on June 22. Officials responded to the scene of the crash along the 500 block of East Main Street at around 11 p.m. They said 66-year-old Sara Linker’s vehicle had been unable to stop because of a confirmed failure to the brake system. The vehicle traveled over a curb and into the building at O’Niel’s Body Shop. There were no injuries, but the vehicle had to be towed from the scene. The car, a Dodge Neon, had brake problems, which was confirmed by the tow truck driver, according to New Holland police.

Lynn, MA, City Inspectors Order Shops to ‘Clean Up’

City inspectors closed an Ellis Street auto body shop during a code enforcement crackdown that left car repair and body shop owners grumbling about City Hall turning a blind eye to their problems, according to local media reports. Enrique Batista shuttered Enrique’s Auto Repair at noon after acknowledging that he had let his annual business certificate, license to store flammables and other city-required credentials expire. Lead code enforcer and city Assistant Parking Director Robert Stilian also ordered Batista to clean up trash around his shop and stop water possibly contaminated by transmission fluid and oil from flowing out of his business. “If you don’t keep it clean, I’ll be back once a week,” Stilian warned Batista. Stilian said complaints from neighboring residents and observations by city inspectors and police officers trigger unannounced code enforcement inspections like Monday’s Alley and Ellis street checks. “It has to do with quality of life and public safety — fire apparatus can’t get down streets if cars are double parked,” Stilian said. Stilian and eight police officers, fire and building inspectors fanned out on Bennett Street Monday morning,

quickly irritating Crystal Diamond Auto Body shop owner Jose Grullon. “Every year you have to give me a hard time,” he said as Fire Department inspector Norman Bourque and building inspector Tom Kench walked through his shop. Bourque told Grullon to park fewer cars in his garage and warned that cars parked in an alley next to the shop impeded use of a side door. Kench said the cars parked bumper to bumper also presented an attraction to rats who nest in the chassis. Kench ordered employees at Caribbean Auto Body, located across Alley Street from Crystal, to not park cars they are repairing on the street and warned a parts delivery driver not to double park. Italmondo, an Alley Street automobile painting business, complied with city codes but Kench told owner Pedro Miranda he is responsible for removing graffiti from the building’s exterior walls and reminded him to not leave vehicles on the street or sidewalk. Miranda said the inspection left him “a little shaken.” Batista said he is aware Stilian and city inspectors periodically check businesses for code compliance and said he will go to City Hall to renew his license.

4 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 5

Protesters Show Up at All-Star Game as NYC Continues Redevelopment of Willett Point, August Eviction Looms The All-Star Game is a moment for both New York City and the Mets to show off a new ballpark that was to anchor a larger redevelopment of part of Queens. Jamie Ramirez, the owner of Discount Muffler, one of the shops being evicted in order to redevelop the area. “We want people to hear our voice during the All-Star Game,” said Jamie Ramirez, the owner of a cramped, three-bay muffler shop. “They built a beautiful stadium there. But it’s not fair what they’re doing to us.” The long-planned redevelopment of Willets Point, which many residents regard as an eyesore, has been one of the Bloomberg administration’s signature projects. But it has been slowed by lack of interest from developers, environmental concerns and protests from those like Mr. Ramirez and others who say they paid taxes for years only to see the city ignore the neighborhood’s problems. Last year, the city suddenly revised the four-year-old plan for Willets Point. It selected a joint venture of the Related Companies and the owners of the Mets—Fred Wilpon and Saul B. Katz—to clean toxic substances from a portion of the land and to build a hotel and some shops on 126th Street and a giant retail and entertainment mall on

the other side of the stadium. Some community groups that once supported the project now say it is designed to benefit the Mets’ owners more than the surrounding immigrant communities. The developer has been required to remediate a 23-acre portion of Willets Point. The plans for affordable housing—now 2,500 units, 875 affordable—have been pushed back until after 2025. But housing advocates fear it may never get built. So far, the city has acquired 95 percent of the initial 23 acres, and it plans to invest $400 million in the project, including a $100 million capital grant for the developers, as well as a series of tax breaks. Marco Neira, the owner of a restaurant in Willets Point and president of the Willets Point Defense Committee, said he expected nearly 100 business owners, workers and housing advocates to protest at Citi Field before the All-Star Game. “We suffered all these years with the broken roads, no sidewalks, no sewers,” Mr. Neira said. “But we paid taxes to New York City. Now the tenants have to leave by August. But if they don’t have a place to relocate everybody, where are we going to live?”

Body Shop Headed for Legal Battle with Manor Twp, PA

For at least two months, Manor Township, PA, supervisors have considered a local body shop a special exemption to its stormwater ordinance, but now Steve’s Auto Body and Repair owner Steve Slater faces daily fines if he does not comply within 30 days. Slater applied for a special exemption from the stormwater management ordinance—which calls for a water retention pond for any structure more than 5,000 square feet. He was not told about the ordinance until construction was nearly complete in February. Supervisors contend that contractors should have known the requirement—while sympathizing with Slater and his business-model—and took the advice of Attorney Andrew Sacco, who works with Solicitor Jack Steiner. Slater will receive a certified letter and have 30 days. If he does not begin construction, the ordinance calls for a $300 per day fine. Supervisor Pat Fabian said, “I talked to Senate Engineering about changing our ordinance to make it less-stringent (but) Senate Engineering didn’t recommend that at all. There’s a reason for that to be so stringent—to protect the residents,” Fabian said. Fabian stated he has not seen any compliance or construction from Slater

to rectify the problem. The body shop is in a Keystone Opportunity Zone, and has to be paved. However, Slater said he couldn’t pave until he knew what would happen with the retention pond application— even though he now faces a 90-day warning from Armstrong County officials. Slater was upset at the decision and said he has talked with higher governing agencies that stand behind him. “I was in contact with the DEP (Department of Environmental Protection) in Harrisburg and they feel that (Manor Township’s) ordinance that they adopted in 2002 hasn’t followed under an act and don’t even feel it’s legitimate. They are going to investigate,” Slater said. “It has to be properly filed, and DEP doesn’t have any recollection on it.” Slater’s contact with the department compared the problem to one at the State level, and said that if such a building permit was submitted without making notification of the proper requirement to the developer, that the State would have to ‘live with it.’ “As far as the state is concerned, [Steve’s Auto Body and Repair] is OK,” Slater said. “I’m going to fight `em. They can send out their (letter); I’m going to fight `em, and I got the DEP on my side.”

6 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

NYC Firms with 20 or More Employees Must Pay Sick

On May 8, 2013, the New York City Council, by a 45-3 vote, passed the New York City Earned Sick Time Act which will require employers with 20 or more employees to provide paid sick leave to their employees (the “Sick Leave Act”). While Mayor Bloomberg has stated his intention to veto the Sick Leave Act, the 45-3 vote was more than sufficient to overcome the two-thirds majority needed to override the Mayor’s veto. In passing the Sick Leave Act, New York City has joined Connecticut, the District of Columbia, Portland, San Francisco and Seattle as the latest municipality requiring paid sick leave for employees. The Sick Leave Act goes into effect on April 1, 2014, and will require all employers in New York City, who employ 20 or more employees, to provide its employees with at least 5 paid sick days each calendar year. On October 1, 2015, the scope of the Sick Leave Act will expand to all employers with 15 or more employees. Employers who do not have a sufficient number of employees to fall under the requirements of the Sick Leave Act are still required to provide their employees with five unpaid sick days each year.

Robert N. Kanar Sr. Passes

Robert N. Kanar Sr., passed away peacefully July 17, 2013, surrounded by his entire family. He was 75. In recent years, he worked for Saratoga Auto Body in Saratoga Springs, NY. Born in Corinth Hospital in 1937, he was the son of the late Robert Howd Kanar and Elizabeth (Betty) Prosser Kanar. He married Sandra Lee (Corlew) Kanar in 1958, and resided in Porter Corners, NY, his entire life. Bob attended both Porter Corners and Saratoga Springs City schools. Bob worked at International Paper Co., in Corinth, for many years. He also worked construction jobs with H.R. Schultz & W.J. Bokus. Bob and his wife purchased and ran The Greenfield General Store and Ice Cream Stand for eight years. He also worked for the town of Greenfield Highway Department, eventually becoming the highway superintendent before retiring. Bob was a life- long member of The Greenfield Fire District, Porter Corners Company No. 2, at which he was recently given the distinction of honorary deputy chief. He was an avid outdoorsman and spent most of his free time at his camp on Lake Ontario, where he enjoyed fishing on his boat, the “Sandra Lee.”

www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 7

Carlisle and Co.

Continued from Cover

shops receive State Farm’s collision customers in return for ceding some control to the insurer. The parts ordering platform is meant to capitalize on all the efficiencies of e-commerce, reducing the cost of parts by requiring

line ordering platform. Why? The collision parts market in the United States is about $16 billion. At present, insurance carriers pay about $10 billion dollars of that total, but have little influence over the parts procurement process or pricing. State Farm’s competitive online parts marketplace provides leverage by pitting suppliers against each other to offer

around with PartsTrader, but the competitive online parts marketplace will happen. The industry is consolidating, and there’s even more incentive for large multi-store operators to follow the insurance companies’ policies in return for repairs. After all, keeping the doors open at a big shop requires a healthy volume, and the easiest way to a healthy volume is through DRP.

are used. This impacts OEM profitability and customer repair quality. Financial harm to dealers: A competitive marketplace means that dealers will have to offer even greater discounts. Parts suppliers, including dealers, will also be required to pay a fee to participate in PartsTrader. Unfortunately, even if OEMs and IRFs band together and manage to kill

It’s clear that State Farm isn’t just interested in an efficient online ordering platform. Otherwise, they could just mandate that their Select Service shops use any online platform for parts ordering, and do this at no cost to themselves. Instead, they’ve spent millions of dollars on a brand-new online ordering platform. Why?

suppliers to submit competitive bids. PartsTrader is undergoing a gradual rollout throughout the United States. It’s clear that State Farm isn’t just interested in an efficient online ordering platform. Otherwise, they could just mandate that their Select Service shops use any online platform for parts ordering, and do this at no cost to themselves. Instead, they’ve spent millions of dollars on a brand-new on-

the best price on parts. Even a one percent reduction in parts cost represents a $100 million savings for insurance companies. There are two significant negative impacts for OEMs. Loss of market share: A wider reach throughout salvage yards and aftermarket suppliers in the United States for parts sourcing will eventually mean that more alternative parts

If the concept is here to stay, what strategies should OEMs explore?

Adopt, use and manage smarter pricing. Right now, OEMs have access to tremendous quantities of data through estimating platforms and CollisionLink. OEMs also have relatively sophisticated pricing systems and access to robust analytical platforms. Together, pricing systems and data enable surgical precision on parts pricing far in advance of what aftermarket parts providers can manage. Separate out collision parts pricing from the rest of your pricing rules and strategies, and get down into the details. This means creating strategies for pricing specific part numbers and car models. Although OEMs do pursue pricing strate-

State Farm’s PartsTrader, Nationwide or GEICO will almost certainly come out with a similar program. The business case is far too compelling and the stakes far too high for insurance carriers to leave parts cost in the hands of the parts supplier, the shop and the claims adjuster. Eventually, this concept is going to be implemented in such a way that it takes off. It may not be this go-

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gies and aging curves, this is usually done at a broad, part-type level. In other words, your strategy for pricing a bumper for a full-size pickup truck should not necessarily be the same as your pricing strategy for a bumper for a midsize sedan. And the key to the success of pricing strategies is dy-

markets, but more are sure to follow, and other insurance carriers will jump in the game shortly. An aggressive push by the OEMs to get their tools embedded in the market at the dealer and shop level before the insurance carriers enter will make the road harder for insurance companies

in the United States can’t competently complete repairs on structural aluminum. 99.9% of body shops in the United States can’t competently complete repairs on structural carbon fiber or CFRP. If OEMs can control the training associated with advanced materials, they can make sure that vehi-

namic management of strategies, rather than “set, forget and revisit in 510 years.” Promote price competitive programs and alternative online ordering tools. Insurers may have leverage over behavior for their DRP shops, but OEMs have first-mover advantage here. CollisionLink has been in the market for nearly a decade, and combines online ordering with OEM price-competitive capabilities. In contrast, PartsTrader is only in a few

and promote OEM market share. Your price competitive programs have to be integrated into your smart pricing strategy, or you’ll be working at cross-purposes. Expansion of advanced technical training. Factors such as CAFE, safety regulations, and the natural order of progress—that is, advanced materials and design—have made parts more complex, and more expensive. That complexity works to OEMs’ advantage. 95% of body shops

cles get repaired at shops which use more OEM parts. Core returns and salvage leakage. How does a part wind up in an LKQ yard? If OEMs can control the spread of cores and salvageable parts using core return charges and total-loss buyback programs, they can starve the network of salvage parts. Of course, this comes at a cost, but salvage parts are the fastest-growing segment and the most risky for OEMs. After all, it is easy to argue that an aftermarket-

Unfortunately, even if OEMs and IRFs band together and manage to kill State Farm’s PartsTrader, Nationwide or GEICO will almost certainly come out with a similar program. The business case is far too compelling and the stakes far too high for insurance carriers to leave parts cost in the hands of the parts supplier, the shop and the claims adjuster.

produced part does not meet or exceed OEM standards. It is more challenging when that part came from the OEM at some point. Many OEMs are already active in this area – but they need to dial up the breadth of parts covered and the aggressiveness of the programs. Certified Body Shops. A certified shop network provides the OEM with additional input into the repair process and helps take some of the leverage away from insurance carriers. When combined with advanced training and access to OEM tools, equipment and techniques, certified body shops are in a position to capture more of the high end of the increasingly complex repair market. OEMs may lose the battle on covers and similar nonstructural parts, but there are opportunities to make up ground in structural, safety, and specialized parts. The bottom line: Expect insurance companies to increase their involvement in the parts procurement process, and expect it to have a significant negative impact on OEM market share. Just maintaining current market share will require a tremendous amount of additional effort.

www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 9

Repairer-Only Rountable Airs the Issues Important to Repairers by Chasidy Rae Sisk

For the sixth time since the Repairer’s Roundtable began over a year ago, collision repairers from across the nation gathered for three and a half hours on Tuesday, July 23 at the Westin Boston Waterfront. The exclusive event intended only for representatives of collision repair businesses was hosted by AASP-MA, but while Aaron Schulenburg, Executive Director of the Society of Collision Repair Specialists (SCRS), was present to kick off the meeting, he repeatedly told the attendees that the “goal here is to have discussion from everyone in the room,” stressing the concept of “your agenda, your meeting.” Over forty individuals gathered to discuss current concerns with the collision repair industry and possible solutions. The dialogue began with a local shop owner objecting to the fact that Massachusetts has the lowest labor rates in the country, a travesty he partially attributed to steering. Regarding a possible solution, it was suggested that there could be a national campaign to promote consumer awareness and education; distributing a common message to association members who would, in turn, relay the information to their customers seemed to be the most viable option for disseminating this important message. As options for educating consumers were introduced and debated, one suggestion was to distribute a nationally consistent message through social media, on either a weekly or monthly basis. Another suggestion was made to provide and disseminate pre-packaged material for social media consumption. Tony Ferraiolo, President of the Auto Body Association of Connecticut (ABAC), emphasized the need for a joint effort between national and local associations as well as shops to promote the message, noting “insurer steering is easy because consumers just don’t know.” In addition to utilizing social media, the group endorsed the effectiveness of Public Service Announcements as consistent with the way consumers obtain their information, directing them to association websites for further information. Ferraiolo acknowledged that there are no simple solutions, “but we can do a better job of educating consumers” through the

vast array of technology not being utilized currently. Seeing a parallel between consumers and repairers when it comes to the distribution of information, Schulenburg noted that lots of information intended for collision repair shops is never utilized, asking what the key to inspiring the use of these resources

ent repair facilities because they’re inanyone [else] to tell us where we’re headed; the experts in our industry terested in vehicles being repaired need to determine where we’re properly. The ideas that shops are exgoing.” pected to invest in additional training Peter Abdelmaseh, former Exwithout expecting any return on their investment led Schulenburg to ask, “is ecutive Director of AASP-MA, added this really an issue of whether or not that there is a huge distrust of associawe should invest in training and tions within the industry, and it is necessary to look outside the associations equipment, or is the model of how we to understand their limitations. They do business broken?” can’t do everything repairers want As participants discussed which issues to tackle later in the them to do unless they are strengthened. Another repairer pointed out that meeting, one participant compared the collision repair indusit is impossible to overcome this distry to a sinking ship; though trust if those repairers are not in the room. there may be many leaks, the In addition to the difficulties in first step is to find the biggest getting away from their businesses and hole and plug it up. Many participants pointed to the low levels spending money to attend events and meetings, low self-esteem is a major of local collision repairer busi(l to r): Tony Ferraiolo, Peter Abdelmaseh & Tony contributing reason that many repairness representation in the room. Lombardozzi at Repairer’s Roundtable Lombardozzi immediately coners opt against participating in associcould be. One attendee noted that curred, citing an overarching apathy in ations and industry events, according OEMs will be funding Public Service to Lombardozzi who believes “the the industry as the biggest obstacle Announcements this fall to explain faced. Most repairers see the probonly way we can change that is to that new vehicles which are being rebring the message to them.” lems, but they assume that someone leased cannot be safely repaired the Nearly all of the attendees agreed else will fix them. This apathy allows same way as older vehicles, but the that too many third parties are insertothers (insurers, OEMs and so forth) message has nothing to do with sell- to assume control of the industry, but ing themselves into the collision busiing more OEM parts. It’s about mainLombardozzi insists, “we don’t need ness, so repairers must be very taining the safety and value of the vehicles. It also stresses that modern repairs require specific educational and equipment components and that the fact that the industry is changing. The conversation turned to the issues surrounding manufacturer certifications with some repairers seeing the value of becoming certified while others, such as Tony Lombardozzi, President of the Coalition for Collision Repair Excellence (CCRE), took a more skeptical view. Lombardozzi asked “what good is a certification? It’s just a piece of paper that says you have knowledge, but you can have knowledge without that paper.” He suggested that this issue may create crises in the industry as a shop can have all the proper training and equipment and still not complete the repair correctly. Parts Dept. Hours: This debate led to a general quesMon - Fri: 7am - 7pm tion: do repairers trust OEMs? Several Sat: 7am - 3pm clarified that their issues with manurklein@penskeautomotive.com facturer certifications are less related to trust than ‘pecuniary inequalities,’ Phone: especially in the MA market where labor rates are so low, making it difficult to pay the costs associated with Fax: the certification. Several attendees then engaged in a conversation about 711 US Hwy. 1 • Edison, NJ 08817 OEMs offering training to independ-

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cautious when deciding who to partner with. As the roundtable continued, many topics were broached without being pursued in great depth. There was some discussion about repair standards, and several attendees expressed concern with the domineering growth that multi-shop organization (MSOs) are taking in the industry and how this will affect smaller shops’ competitive abilities. However, one opposing view suggested that the recent interest of private equity firms and their decision to invest in MSOs could see these firms taking a stand to demand the right to establish their own pay rates which could, in turn, benefit the entire industry. Schulenburg’s inquiry regarding how to take the voices of those in attendance and present it at larger forums, led to an impassioned discussion about CIC’s agenda and significance to actual collision repairers. Several expressed belief that CIC has abdicated their role as a leading organization in the collision industry. Some expressed sentiments that they feel CIC has been “overtaken” by special interests and no longer works.

The discussion of third-party interference led back to repair standards and who should be involved in the process of establishing and implementing them. Most attendees agreed that the creation and establishment of repair standards has nothing to do with insurers and should be left to OEMs and repairers, yet there were some dissenting views about whether insurers should play a role in the implementation of the standards since they do possess their own areas of expertise that may be important in this part of the process. Many of the attendees agreed it was necessary to walk away from the meeting with at least one unified position that could be shared as a consensus of the repairers represented at the meeting, and this particular topic was chosen by the audience participants. The repairers in attendance represented as wide a diversity as exists in the collision industry—single location and both regional and national multi-shop operators, DRP and independent shops, family-run business and dealerships—but even in the diversity, there was commonality in their beliefs. The discussion concluded that nearly all in attendance

felt it was important to convey that any formulation of standards for the collision repair industry should be developed and managed by the collision repairer, inviting in expertise in certain areas when needed, but never relinquishing control of the standard. As the Repairer’s Roundtable’s time drew to a close, Schulenburg announced that the next gathering will be held at SEMA in November, and he asked what can be done constructively to result in meaningful action and to be certain that something relevant comes out of the meeting. Everyone agreed that the most important way to improve these meetings is to encourage everyone in the industry to attend. The take home message to repairers is ‘So what are you waiting for?’ As Martin Luther King Jr. once said, “change does not roll in on the wheels of inevitability, but comes through continuous struggle. And so we must straighten our backs and work for our freedom. A man can’t ride you unless your back is bent.” Don’t let anyone bend your back! Join associations. Attend meetings. Support and institute change today for a better industry tomorrow.

Shop Owner’s Guard Weiner Dog Statue Has Been Found

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1 Giant wiener dog statue weighing hundreds of pounds was taken from uptown sidewalk

For about eight years, two large concrete dog statues have greeted residents and customers outside Forbes Auto Body in uptown Pittsburgh. One of those statues, a giant wiener dog weighing about 200 pounds, was stolen last week. But the artist who created it said it has been returned— with a broken paw—by two teenagers who claim to have found it at a party on the South Side. “They’re my guard dogs for the shop, but I don’t have to feed them. They make no mess. They’re great,” said Forbes Auto Body owner Ed D’Angelo. D’Angelo said he arrived at work to find his 4-foot-long, 3-feethigh dachshund was gone. The art is the work of James Simon, who lives across the street from the shop. D’Angelo said he won’t press charges and is glad his dogs are back.

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ASRW 2014

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Thursday, July 31 – Collision Repair Education Foundation Golf Outing Thursday & Friday, July 31–Aug. 1 – NACE Education & Expo Saturday, Aug. 2 – Education & Hosted Industry Tours “Co-locating NACE with the ICAR and CIC conferences in July and creating Industry Week represents the beginning of a new era for our industry, and this is extremely exciting. Professionals in the industry can now truly take ONE week and participate in all the meetings they need involving the industry’s most influential in-

dividuals and organizations, attend all the conferences, walk the show, network, and receive the education critical to their business success,” said Risley. “Beyond the events already mentioned, there will be innumerable opportunities for attendees and exhibitors because it’s located in Detroit, the heart of the automotive industry. Additional announcements will be forthcoming in the ensuing months but suffice it to say, if you are a ‘car person’ you will not leave the city disappointed.” John Van Alstyne, I-CAR CEO & President, shared his enthusiasm, “Industry Week is an opportunity to bring more of the industry together and simplify coordination of scheduling for all events, which we believe

will be valued by the industry.” He added, “Industry Week will present attendees with excellent educational, knowledge–building, and networking opportunities; and I-CAR’s longstanding July Conference, which has been aligned with CIC for many years, will remain an independent event that will now take place under the new umbrella of Industry Week. Additionally, the annual fund–raiser for the Collision Repair Education Foundation will continue to be held the same week, offering a fantastic social networking opportunity while raising money for a great cause that helps us to sustain the future of our industry.” “The Collision Industry Conference looks forward to meeting during

this time when all groups come together,“ stated Jeff Hendler, Founder, Collision Industry Conference. “The more often that all entities attempt to share the calendar with the varying functions of meetings, educations, trade displays, and networking opportunities, the better it is for those who attend. Everyone and every entity stands to benefit.” “The Collision Industry Conference looks forward to building upon our longtime alignment with I–CAR to welcome ASA into the fold and offer our collision industry stakeholders the opportunity to attain even more industry knowledge, make even more valuable industry connections, and conduct even more business,” said George Avery, CIC Chairman. “Better yet, Industry Week lets them do it all in one week, under one roof, and in the heart of the Motor City to enable everyone to maximize their time and travel.” Additional details on each event taking place during Industry Week 2014 will be released by each organization in the coming months. Hotel details will be available in the near future. More information will soon be available at http://www.naceexpo .com, http://www.i-car.com, and http://www.cic.com.

ASRW Will Have Main Stage with Rotating Speakers

ASRW 2013 will have a brand new area on the show floor called the ASRW Main Stage. Located prominently on the expo floor, the ASRW Main Stage will showcase a different industry speaker every hour during show hours. ASRW will take place Thursday and Friday, Oct. 1718, with education beginning Wednesday, Oct. 16, at the Mandalay Bay Convention Center in Las Vegas. A total of 12 speakers will comprise the ASRW Main Stage, with six speakers on Thursday and six speakers on Friday. The ASRW Main Stage presentations will take place each hour between 10 a.m. and 3 p.m. “The powerful slate of speakers and topics planned for the ASRW Main Stage make it the first of its kind,” stated Dan Risley, ASA executive director. “Attendees won’t find these speakers in one place at any other event.” Seating will be on a first-come, first-served basis as tickets/registration will not be required. Additional details, including the full schedule of ASRW Main Stage speakers and topics, will be announced in coming weeks.

www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 13

Legislation Affecting Shops

Continued from Cover

use of anything other than new OEM parts for vehicles less than three years old. A similar bill (HB 362) in Vermont would place a 2-year ban on the insurer-use of the parts on new cars. New regulations that will go into effect in California early next year place significant new limitations on the use of non-OEM parts in that state. The California Department of Insurance finalized regulations this year requiring insurers to pay for the costs to remove, replace and return a defective or non-compliant part; to cease the use of any part known to be non-compliant and to notify the distributor within 30 days; and to pay for repairs based on “accepted trade standards” set by shops licensed by the California Bureau of Automotive Repair. Insurer groups have indicated they may challenge the new regulations, which they say are unnecessary and thwart their ability to negotiate “the most effective, less costly repair,” nor do anything but “pay whatever auto repair shops demand.” Eileen Sottile, vice president of governmental affairs at LKQ Corporation, told non-OEM parts distributors at their convention earlier this year that it’s unclear whether the regulation will have a significant impact on insurers’ use of non-OEM parts in California. She said LKQ is reviewing legal analysis related to a possible suit against the regulator. Such a suit, she said, could challenge the Commissioner’s authority to promulgate the rule, or could be based on the rule’s impact if “we see it has damaged our ability to compete.” Other options, she said, could be to address the issue through legislation, or to do nothing “if we see there truly is no market impact.”

Rates are focus of some bills Nevada lawmakers have approved a bill (SB 170) capping daily storage fees charged by shops at 1.5 times the prevailing storage rate determined by state survey; the new law also sets limits on when storage fees can be charged. After three attempts over the last six years to get legislation related to labor rates passed by Massachusetts lawmakers, a fourth such bill (H 969) has been introduced for the 2013-14 legislative session. The bill has evolved over the years, and now if passed

would establish a labor rate in Massachusetts based on data from an independent study of the average labor rate of five other Northeastern states.

Airbags under scrutiny The National Highway Traffic Safety Administration’s warning last fall to consumers to avoid counterfeit airbag replacements seems to have resurfaced the topic of airbags among some state lawmakers. The New Mexico House unanimously passed a bill (H 118) that would prohibit the manufacturing, sale or installation of a counterfeit or substandard airbags. It would also prohibit selling or installing a device that causes the vehicle diagnostic system to inaccurately indicate that the airbag is functional when a counterfeit airbag is installed. Similar bills have been approved by lawmakers in New York and Connecticut, and by the House in Ohio. Also in New York, a bill (S 3779) would place significant new restrictions on anyone selling or installing a recycled airbag. The seller or installer, for example would be required to maintain records including the airbag identification number, the VIN of the vehicle from which it was removed, the name and address of the purchaser, and the VIN of the vehicle in which it was installed. Other proposals, new laws Bills in other states tackle a variety of topics impacting the industry. Some states have established a damage value threshold at which a vehicle must be declared a total loss. But previously nothing prohibited an insurer from totaling a vehicle below that threshold. The Rhode Island legislature, however, has approving a bill (HB 5263) prohibiting an insurer in that state from declaring a vehicle a total loss if the cost to repair is less than 75 percent of the vehicle’s preaccident value, unless the vehicle owner provides written authorization to do so. Texas Gov. Rick Perry in June signed a new law (HB 500) that allows independent repair shops to be taxed at the same rate as dealerships, parts stores and tire stores; previously shops operated by dealerships were taxed at a significantly lower rate because these businesses were classified as “retail” businesses. A new North Carolina law (HB 247) signed by Gov. Pat McCrory, deals only with health insurance but

14 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

does ban insurer’s use of “most-favored nation” clauses (such as the one in State Farm uses to require the best rates and discounts that its Select Service shops offer any other insurer) when contracting with health care providers. The Automotive Service Association (ASA) in June wrote to a New Jersey Assembly committee, opposing proposed “Right to Repair” legislation (AB 352), saying that it puts at risk ASA’s agreement with automakers that “already provides independent repairers access to service, tool and training information.” Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association (AAIA), told the committee his group supports the legislation, but also urged lawmakers to hold off further action on the bill while his group is in “negotiations with the vehicle manufacturers regarding a national agreement on Right to Repair.” Similar Right to Repair bills have been introduced in Maine and New York this year. Connecticut Gov. Dannel Malloy has signed a new law (effective January 1) designed to reduce insurer steering of glass claims; under the new law,

insurers (or third-party claims administrators) must disclose to insured’s during their initial contact that, “You have the right to choose a licensed glass shop where the damage to your motor vehicle will be repaired. If you have a preference, please let us know.” And under a new law (SB 86) that went into effect this past December and designed to combat chop shops, Pennsylvania shops must photocopy the ID of anyone towing or selling a vehicle or major component; the law, requires that photocopy (along with the name and license number of the towing company) must be maintained for three years, and law enforcement agencies have the right to inspect body shops or other automotive businesses (to look for stolen vehicles or parts) any time work is being performed. 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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Rhode Island Governor Signs Total Loss Bills Rhode Island Governor Lincoln D. Chaffee signed H-5263 and S-465 into law on July 17. The bills require an insurance company to obtain the owner’s consent before declaring a vehicle a total loss if the cost to repair the vehicle is less than 75% of its value. The Auto Body Association of Rhode Island (ABARI) said, “We are grateful to the Governor and the Legislature for recognizing that consumer protection is the true purpose of this law. For too many years, many consumers at the lowest economic levels, have been subjected to the heavy hand of insurance companies that seek only to increase their profits. “Many consumers have lost their second largest asset, because an insurance company could save more money if they totaled a safely repairable vehicle. This practice is now prohibited thanks to Governor Chaffee and the General Assembly,” ABARI said. “The new law also ensures that consumers receive the full value of their vehicle when it is lawfully determined a total loss; it requires insurers to value vehicles based upon publically available guides used in the automotive industry such as Kelly Blue Book and NADA. They are now prohibited from using their own cost-cutting programs that take advantage of those who do not

have the means to fight such unfair claims practices,” ABARI added. Insurers had campaigned against the bill with online and radio advertisements and the Property Casualty Insurers Association of America (PCI) said they were “profoundly disappointed” that the Governor approved the legislation. Frank O’Brien, VP for the Property Casualty Insurers Association of America (PCI) said, “By forcing vehicles that are badly damaged to be repaired rather than totaled, this law is designed to increase body shop revenues. But in the end it is the Rhode Island consumer who will pick up the tab. Over the years special interest groups such as ABARI have wielded significant influence in Providence and they have reaped the benefit of bill after bill being passed with the end result being repair costs growing at more than twice the national average and increased hassle and inconvenience for consumers. Unless someone provides a check and balance on body shop costs, this trend is likely to continue. “We believe consumers, insurers and body shops should have the same goals - high quality repairs at reasonable costs. Although this new law falls short of the mark, the insurance industry remains committed to protecting the interests of consumers and putting safety first.”

North Bergen, NJ, Tow Firm Accused of Duping County Hudson County officials are accusing a North Bergen Union Turnpike towing company of trying to dupe the county into giving it business, and the firm may now be blacklisted from winning future contracts with the county.

Four companies owned or coowned by John’s Main Auto Body owner John Appello submitted proposals to win spots in Hudson County’s tow rotation list, even though county officials had said only one company owned or controlled by an individual would be allowed to submit proposals. In a July 3 memo obtained by The Jersey Journal, Hudson County Counsel Donato Battista calls Appello’s actions a “concerted scheme” to win more business with the county. County lawyers are investigating whether Appello’s companies can now be “disbarred” from doing

business with the county, the memo reads. The four companies are John’s Main Towing, John’s Main Auto Body, Main Garage Corp. and Planet Towing. According to Battista’s memo, Appello is a principal in all four. Appello, 53, denies he did anything wrong. Speaking by phone to The Jersey Journal, he said all four companies are valid businesses that should have a shot to tow vehicles for the county. He did not dispute that he owns or co-owns all of them. “I’m not that clever that I would be able to fool the county,” Appello said. Seven companies in total submitted proposals to get into the county rotation, and all four of Appello’s firms were disqualified. A fifth, Truchan’s Towing, of Jersey City, was also rejected for failure to submit required material, according to Battista’s memo. County spokesman Jim Kennelly said county officials plan to assist with a criminal prosecution “to deter future attempts at this sort of thing.” Appello declined to respond to the threat of criminal charges. “I can’t really comment on that,” he said. “You’re telling me something I haven’t heard.”

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Woman Claims NJ Shop has Scammed her out of Motorcycles

An auto body shop in Raritan Borough which sells and restores classic cars is being accused in a lawsuit of scamming a woman out of the value of more than a half-dozen classic motorcycles and cars—an accusation Joseph Tinnes and his business, Total Automotive, denies. Aviva Nubel, 66, says she relied on Tinnes’ shop, located on Orlando Drive, to store and sell the eight vehicles that she inherited. The lawsuit, filed in Superior Court in Somerville, claims that Tinnes has refused to return her 1948 Triumph, 1995 Harley Davidson Heritage Soft Tail, and a 1999 Harley Davidson Ultra Guide Classic, which she believes the shop has sold. The lawsuit also claims that the shop sold her 1973 911 Porsche S Coupe for $5,000 less than the $42,500 price she agreed to sell it for, and that the shop duped her into believing that that her 1964 Porsche Carrera was worth less than it really was. The lawsuit also says that the shop sold off her 1993 Harley Davidson Ultra Glide classic anniversary edition and Pataco moped without her knowledge. Tinnes said he was “shocked” when he received the complaint in the mail.

“I always dealt with the lady who owned all the stuff, who passed away,” he said. “I’ve been in business 17 years and I’ve never been sued in my life.” On its website, Total Automotive claims to be experts on Porsche’s 911 model and lists several cars for sale. Tinnes said the motorcycles remain at his business, where he was asked to store them “for safe keeping,” adding that he had been trying to get Nubel to pick them up. He referred other questions about the suit to his attorney, David W. Trombadore of Somerville, who did not immediately return a call seeking comment. Nubel is represented by Michael P. DeMarco of North Haledon firm DeMarco & DeMarco. Online comments at local media sources expressed support for Joseph Tinnes and disbelief that he was at fault. Rather, they speculated, there was a large storage fee owed on the vehicles in question.

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lar auto glass shop; and/or —Using or employing “unfair or deceptive acts or practices to induce a person to use a particular registered motor vehicle glass repair shop to provide motor vehicle glass repair services.” —The regulation says “unfair or deceptive acts” will include (but not be limited to) the following: —”Engaging in an act or practice designed to intimidate, threaten or coerce a person to use, or for having used, a particular registered motor vehicle glass repair shop; or —Knowingly contracting with, referring motor vehicle glass repair services to or otherwise negotiating with a motor vehicle glass repair shop to provide motor vehicle glass repair services if the repair shop is not a registered motor vehicle glass repair shop as provided in M.G.L. c. 100A.” The regulation goes on to note that once an insured selects a glass shop, an employee of a TPA or insurance company “shall not require the motor vehicle glass repair to be made at a different registered motor vehicle glass repair shop.”

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A regulation by the Massachusetts Division of Insurance (MDOI) that aims to “establish parameters for the referral of insureds to registered motor vehicle glass repair shops” is expected to go into effect later this summer. “We were gratified by the amount of interest and thoughtful commentary we received on these proposed regulations,” said Massachusetts Commissioner of Insurance Joseph G. Murphy. “The division will be taking all of the suggestions into consideration as we finalize the regulations over the next few months.” The comment period closed on July 12, according to Jayda LederLuis, a spokesperson for the MDOI. “The Division of Insurance received several pieces [of submitted feedback] concerning the hearing,” she says. “The regulation is currently in development and still being reviewed by our Division of Insurance. The final regulation will be published with the Secretary of State and become a part of our code later this summer.” The regulation under review, currently known as “211 CMR 135.00Requirements Regarding Referrals to Motor Vehicle Glass Repair Shops,” would prohibit third-party administrators (TPAs) and insurers from: —Requiring a person to use a particu-

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www.koeppelmazda.com www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 17

CICâ&#x20AC;&#x2C6;in Boston

Continued from Cover

ment with which I-CAR is affiliated, and then Dan Risley, Executive Director of ASA, announced that I-CAR, CIC, NACE and CREF are collaborating to put on an Industry Week at the Cobo Center in Detroit MI during the week of July 28 through August 2, 2014. (See related article on cover.) After CICâ&#x20AC;&#x2122;s Technical Committee briefly submitted their findings regarding an increase in technical issues and the need for assistance with logistics, John Petrarca from the Auto Body Association of Rhode Island (ABARI) took the stage to discuss the recent approval of House Bill 5263 which redirects the ability to deem a car a total loss apart from the insurer. Petrarca emphasized the importance of legislation: â&#x20AC;&#x153;the only way to correct our industry is through legislationâ&#x20AC;Ś [we must] never stop informing and simply never give up.â&#x20AC;? He said it is imperative that this industry persists with informing and educating consumers for the betterment of the industry at large. This update preceded a presentation by the Governmental Committee, led by Janet Cheney and Steve Regan, entitled â&#x20AC;&#x153;Our Government: More or Less, What Works Best?â&#x20AC;? which began by sharing the feedback from CICâ&#x20AC;&#x2122;s last panel discussion in Phoenix. The first question asked whether the government should prohibit insurers from recommending a repairer to the consumer. Shockingly to some, the majority of participants responded in the negative, as they did to the question asking if the government should regulate the use of aftermarket parts. When asked their opinion about the level of government involvement regarding environmental and safety laws, 56% believed it to be too much while 32% felt the government is involved a sufficient amount. As the committee moved on to the second part of their presentation, Regan introduced the panel: Colette Bruce of Team Safety, Darrell Anderson of ASA, Randy Hanson from Allstate Insurance, Rick Tuuri from Audatex and Ron Reichen, Chairman of SCRS. When asked if the laws and regulations governing the collision repair industry are working, Anderson stressed the importance of being aware of whatâ&#x20AC;&#x2122;s going on in Washington, while Bruce believes the laws are

working when they protect workers and the environment. Regan then asked the audience if more laws are needed to which 69% of respondents answered â&#x20AC;&#x153;no.â&#x20AC;? The majority of respondents said they do not believe that current laws are adequately enforced. The panel then discussed whether federal or state governments should have primary jurisdiction over the insurance collision repair industry. Tuuri feels it is not a great idea to involve the government, yet he also recognizes that sometimes it is necessary to ask for help. Anderson believes that both entities should be involved, though state regulations tend to be convoluted and should require some consistency. Attendees were about equally divided between these two options when polled. Asking if the collision repair industry could do a better job of governing itself, Regan shared his opinion that itâ&#x20AC;&#x2122;s â&#x20AC;&#x153;incumbent on the industry to do as much as it can to govern itself.â&#x20AC;? Tuuri prefers this option to involving the government, while Reichen agrees that the industry could do a better job. Bruce would prefer to see the industry govern itself also, but he cannot envision the federal or state governments relinquishing such control. When polled, 87% of respondents replied affirmatively that the industry could do a better job of governing itself. This conversation raised several additional questions: Who would have primary responsibility? How would they determine the appropriate conduct and/or standards that individual stakeholders would abide by? How would they enforce actions against violators? These questions were tabled for future committee discussion. The conference continued with Ron Guilliams, Chris Evans and Rick Tuuri from the Definitions Committee whose mission is to â&#x20AC;&#x153;clarify and bring universal understanding to the terminology used in the automotive damage repair and refinish process.â&#x20AC;? Their project consisted of reviewing and updating their Class A shop document which they renamed â&#x20AC;&#x153;Recommended Equipment and Capabilities for a Collision Repair Facilityâ&#x20AC;? and which is meant to provide a definition of minimum shop requirements. In order to enable the subcommittees to focus in their areas of expertise, the document was divided into the following three categories: Equipment & Capabilities, Training &

18 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

Certification, and Compliance & Sustainability. They pointed out that a great deal of effort has gone into creating this document with lots of active participation from the CIC body, leaving Evans convinced that this is a comprehensive document which represents the next generation of the Class A Repair Standards document which has existed for many years. The information gathered will now be transitioned over to the Standards Committee to use in their work. As soon as attendees were given the opportunity to respond, the body was eager to learn what will happen to shops that do not meet these requirements since many shops do not meet these standards, to which Avery responded that the topic should be postponed until November, after the Standards Committee has the chance to see where and how the document fits into their work. Evans stressed that this document is mostly just updated with current technology from previous documents with improvements and enhancements as appropriate for what exists in the industry now. Schulenburg then repeated the title of the document, â&#x20AC;&#x153;Recommended Equipment and Capabilities for a Col-

lision Repair Facilityâ&#x20AC;?, asking â&#x20AC;&#x153;to do what?â&#x20AC;? He said he does not believe that these requirements necessarily translate into being able to fix a car or to be considered a viable collision repair facility. Though he sees the benefits of many of the items on the list, including some of the systems, he does not agree that anyone other than the shop owner should be able to decide what is needed. Schulenburg questioned if this document is indicative of requirements mandated by insurers to participate on their programs. The Definitions Committee again defended their document, pointing out that they are trying to define a baseline for a topic that contains many variables. Additionally, Jeff Hendler reminded attendees that the document is only a document; it does not have authority unless the government mandates its authority or insurers require these recommendations in order to participate in their DRPs. Hendler believes it is necessary to develop something â&#x20AC;&#x153;to distinguish between those that do and those that donâ&#x20AC;&#x2122;t, those who almost get there and those who actually do.â&#x20AC;? Michael Quinn, former CIC See CICâ&#x20AC;&#x2C6;in Boston, Page 24

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SCRS Board Meeting: Partial Panels, Labor Rates, SkillsUSA by Chasidy Rae Sisk

In the midst of the CIC and I-CAR conferences being held in Boston during the week of July 22–26, the Society of Collision Repair Specialists (SCRS) also held their board meeting. The 2hour meeting was held in the Hancock room of the Westin Boston Waterfront, located at 425 Summer Street in Boston, MA. Led by thirteen board members, including Ron Reichen making his debut as Chairman, the meeting was to convey updates from SCRS staff and committees to outline current and future work initiatives. Approximately twenty attendees gathered to listen to these updates. The SCRS Education Committee, led by Toby Chess, offered a presentation focused on repairing aluminum, stud welding and dent-pulling equipment technologies. Moving on to a pressing industry issue, Executive Director Aaron Schulenburg addressed partial panel finishing and dissatisfactory compensation from insurers, noting that this problem which was seemingly corrected back in 2007-8 is returning. SCRS has seen a drastic increase in the number of queries about this issue since the beginning of 2013. Even more disheartening, this issue is not geographically isolated, occurring throughout the country. SCRS issued letter to six different carriers in May 2013 to enquire about their guidelines. Surprisingly, the overwhelming response was that carriers have not made any changes to their policies, with many of the carriers saying that their expectations for reduced refinish time on repaired panels are based on receiving a mutual agreements with individual repairers based on the repair needs. Additionally, no company has provided or admitted to any corporate position or policy which specifies any precise reduction in time, although some examples of such documentation have been received by SCRS. The association is continuing to work with these carriers to address the issue and hopefully resolve what has become a pattern of practice for some in 2013. Schulenburg’s said his concern arises because SCRS has received complaints from repairers who don’t agree to a reduction in time yet are being told that it is a matter of company policy. The question he now poses to

insurers is how to respond to claims that this is company policy when, in fact, it is not. Schulenburg emphasized that such conflicts benefit neither collision repair shops nor the relationships between repairers and insurers. SCRS will continue to seek answers to this dilemma and will provide an update on the situation at SEMA in November. SCRS Past Chairman Barry

a stronger presence, especially legislatively. Currently, AASP-MA is trying to get the Auto Body Labor Rate Bill approved into law. Since 2008, the state has seen a free market resurgence with new insurers writing new policies, however, there have been no changes to labor rates in fifteen years, leaving Massachusetts with some of the lowest

(l to r): Ron Reichen, Aaron Schulenburg & Andy Dingman at SCRS Board Meeting

Dorn reported that over 6000 inquiries have been received through the Database Enhancement Gateway (DEG)— but while the number is a milestone accomplishment for the free industry resource, that number should be significantly higher. Collaboratively supported by national associations, the DEG is funded by SCRS, AASP and ASA who monitor the received inquiries through a full time administrator. Though the DEG has seen an increase in the number of inquiries received, there are over 30,000 collision repair shops nationally, suggesting that the number of submissions from repair facilities who have experienced issues with estimating data could significantly increase if more in the industry became aware of the tool, and how easy it was to use. The industry as a whole benefits from each inquiry, as they are publicly posted into a database. Next, Schulenburg introduced representatives from their local SCRS Affiliate Association to talk about local industry efforts. SCRS represents 40 state and regional Affiliate Associations across the U.S. Molly Brodeur, Vice President of AASP-MA, provided updates on current industry activities in Massachusetts as well as an overview of her association’s efforts. The association has hired a management firm, Lynch Associates, as of May 2013, and with that addition came new Executive Director Jillian Zywien (see my interview with her this issue p. 53) who was excited to attend the week’s events and looks forward to her increased involvement within the industry. Through their partnership with Lynch Associates, AASP-MA hopes to create

20 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

rates in the nation. The Auto Body Labor Rate Bill proposes an increase in labor rates to reach a more competitive level, combined with a review and possible increase of rates every three years. AASP-MA has also redesigned their website recently to enhance their member benefit packages as they strive to increase membership. Since there is not much I-CAR influence in Massa-

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chusetts, the association is also working to change that by focusing on acquiring Gold Class certifications for local shops. Through their work with the Collision Repair Education Foundation (CREF), AASP-MA awarded the first recipient of their tool grant at their 2012 golf outing. As Brodeur concluded, Schulenburg turned the meeting’s focus toward the future as he assured attendees that SCRS’s plans for SEMA are coming along well. He encouraged collision repairers to attend the November event, claiming it is a great environment where a shop can learn how to market itself, add revenue or just learn more about the industry. SCRS is most closely involved with the Repairer Driven Education series at the SEMA Show, and this year’s development of different learning tracks will allow individuals to choose the focus of their education. SCRS has engaged compelling industry speakers for the vents, and Schulenburg believes, “the program hits home for repairers and will provide tangible benefits.”

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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.

Historical Snapshot with John Yoswick

A Look Back at this Month in Collision News History This month we begin a new type of column that takes a look back at this month in collision history 20, 15, 10 and 5 years ago. You may be surprised how many issues we think of as recent concerns were in the news back then. Keep in mind that these stories may have turned out differently than the way they were reported at the time. Where they did, we attempt to clarify the later outcome.

20 years ago (August 1993) Collision repairers may soon be hearing about EXACT, a Colorado-based foundation that wants to see body shops take part in an early trial of its autobody repair standards. So far, the foundation’s executive director, Phil Freeman, has sent out applications for membership to repairers in Rochester, NY, and Chicago. If they take part, shops pay $3,160 after undergoing extensive training, testing and certification. While shops may

balk at paying yet another fee for another organization that’s supposed to bring them success, EXACT wants to establish comprehensive industry standards that will be for autobody work what building codes are for building contractors. “One of the things we’re trying to do is keep it out of the hands of lawmakers,” Freeman said. “A legislator could come in and try to establish something for an industry he’s not too familiar with.” Already EXACT has spent three years writing up 140 pages of repair standards that Freeman expects to become even more refined over the years. Called the Uniform Autobody Repair Code, the standards will have to be approved by the collision repair industry. “They’ve been through a technical committee of 27 shop owners,” Freeman said. “We anticipate approval around the first of the year.” ►The EXACT Foundation sub-

sequently reached an agreement with I-CAR under which that organization would continue to develop, manage and market the code under the name Uniform Procedures for Collision Repair (UPCR)

15 years ago (August 1998) I-CAR also made two significant announcements about its Uniform Procedures for Collision Repair (UPCR) at its annual meeting. First, Toyota Motor Sales USA, Inc., has agreed to provide its Toyota and Lexus collision repair manuals for inclusion with the UPCR. Beginning with the January update to the UPCR, subscribers will have access to the same collision repair technical information made available to Toyota and Lexus dealers. I-CAR’s Tom Mack said he hopes Toyota is just the first of many vehicle manufacturers to make their collision repair manuals available to UPCR subscribers.

The second announcement about the UPCR made at the meeting was that 20th Century Insurance Company has become the first insurer to purchase the UPCR for widespread use by its employees. John Bierer of 20th Century said he was charged earlier this year with improving the consistency of the estimating, adjusting and reinspection efforts of the insurer’s staff. He said after reviewing the UPCR with his claims office management, he presented it to his superiors as the solution they were looking for. “Each one of our adjusters, our quality control reinspectors, our supervisors and mangers will have a copy of UPCR on their laptops to use in their adjusting, inspecting and quality control,” Bierer said, adding that he hopes other insurers will follow 20th Century’s lead. ”I think it’s what we’ve been looking for for quite some time.”

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► I-CAR one year later shelved its UPCR product, which included collision repair procedures as well as vehicle and product manufacturerspecific information, saying sales were “reasonably underwhelming,” but a revival of UPCR has been raised by some during more recent discussions of collision repair standards.

10 years ago (August 2003) (From Autobody News): Aftermarket parts manufacturers and CAPA are likely vexed by the newly-released “Crash Parts Certification Study” published by the California Bureau of Automotive Repair (BAR). The report blasts the parts certification process, concluding that “certification has no value to the customer…If there are problems with the certified product, the certifying entity does not stand behind their own certification process.” Legislation enacted in 2001 authorized $125,000 to be spent by the BAR, a sub-agency of the California Department of Consumer Affairs, to study the best process for certifying crash parts, and to designate the agency to bear responsibility for overseeing crash parts certification. For two-anda-half years, the BAR held meetings

with repairers, insurers, OEMs and aftermarket parts certifiers. It sent out surveys to auto body repair shops and conducted field test on crash parts. In the end, the BAR reached several conclusions, most notably: ● Elimination of non-certified aftermarket crash parts is not a viable option. Outlawing non-certified aftermarket parts (as suggested by CAPA) would make the market less competitive and leave a shortage of such parts. ● Certification does not protect consumers from poor quality parts… If the certifying entity warranted their certified parts it would provide ‘added value’ to the certified part, and protect consumers against poor quality parts. The study compared the CAPA Quality Seal to the well-known Good Housekeeping Seal of Approval. The Good Housekeeping seal carried a limited warranty stating that if any product bearing the seal proves to be defective within two years of the date of purchase, the product will be replaced or the purchase price refunded. “If CAPA or Global Validators feel their certification parts fit the criteria of their certification program, why don’t they stand behind their certified parts?” the BAR report asks.

5 years ago (August 2008) The Progressive Insurance fraud lawsuit against Greg Coccaro and his New York shop, North State Custom, was dismissed. When Progressive concluded presenting its evidence and testimony, Coccaro’s attorneys moved for a directed verdict (a standard practice in many cases) and Judge Mary Smith granted the motion, dismissing the case, saying Progressive had not presented sufficient credible evidence for the trial to continue. Coccaro issued a press release saying he was “elated with the Judge’s decision” and “extremely grateful and touched by all of the support and encouragement shown by fellow members of the collision repair industry.” “We are disappointed by the court’s decision, and we plan to appeal,” spokeswoman Cristy Cote of Progressive Insurance. ► Progressive indeed appealed and the case was retried, only to have a jury find Coccaro not guilty in 2010; Coccaro earlier this year reached an out-of-court settlement with the insurer just days before trial was set to begin in his tortious business interference lawsuit against Progressive (terms of the settlement are subject to a non-disclosure clause).

SCRS Board Meeting

Continued from Page 20

The show floor at SEMA promotes enthusiasm for the collision repair industry, due in large part to the vast array of exhibiting corporations, with attendees groups coming from as far away as Australia and New Zealand. Several SCRS board members proceeded to talk about their involvement with Skills USA, emphasizing the importance of reaching out to young people who “truly are our future,” according to Reichen. Schools with students participating in the competition received a free SCRS membership, and student competitors received individual recognition from SCRS, letting them know the industry supports their efforts to become the best in their field, and is watching their accomplishments. The overall consensus was that an amazing energy surrounded the event which deserves to be supported and promoted; SCRS is excited to be a part of it and plans to continue their involvement. As always, SCRS emphasizes the importance of continuing education.

www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 23

CIC in Boston

Continued from Page 18

Chair now of uParts, Inc., then led the presentation by the Standards Committee which began in 2006 and is scheduled to close after they submit their research on the inspections and verifications aspects of repair standards at SEMA in November. The Standards Committee is in agreement with the various repair trade association and their position that OEM repair procedures are the default standard. The questions they seek to answer by November, as gathered from the CIC body at previous meetings include: Does this include OEM recommendations? Does it apply to body repairs and paint procedures? Is this OEM Part Replacement Procedures? What is procedures aren’t available? What resources are available? Van Alstyne then lead discussion on the lack of clarity on positions regarding OEM procedures. Though he believes OEM repair procedures should be the standard, they are not available from all manufacturers, leaving repairers to do their best to safely repair vehicles. I-CAR plans to work with OEMs to determine these standards and to institute best practice procedures in order to add to I-CAR’s curriculum. Van Alstyne noted that I-CAR’s Repairability and Technical Support Program has been approved by their Board and is proceeding with the intention of instituting an industry technical knowledge portal, repairability summits, an industry/OEM repairability linking pin and a technical industry segment advisory council. They also plan to expand their technical team through an increased load of courses, including new classes. Van Alstyne said, “we are serious about this and believe we can add value for the benefit of the industry.” Tony Molla, Vice President of Communications for the National Institute of Automotive Service Excellence (ASE) presented their position statement. ASE recognizes OEM service procedures as the primary guide to repairs, but where no such procedures exist, ASE recommends using the National Automotive Service Task Force (NASTF) to collect and identify gaps in repair information; ASE is prepared to cooperate with any segment of the industry to provide individual techni-

cian certification credentials where appropriate. After a brief history of CIECA, which was founded in 1994, Executive Director Fred Iantorno noted “change is happening all the time.” The pace of this technology began in 2000, and the BMS standard, which was first published in 2004, has expanded into 19 versions to keep pace with the growth

proposed business models demonstrated strengths and weaknesses, indicating that a hybrid of the three proposed models should be considered. Based on the results, in order to move forward, CIC and their committees must develop industry consensus on the mission and the scope of the effort, plus develop compelling value proposi-

SEMA in Las Vegas and will begin with the Collision Industry Awards. The first day concluded with George Avery’s message that it’s time to visit some of the issues addressed so that the industry can take the next steps. On Wednesday the meeting resumed with Cheryl Boswell of the Collision Industry Foundation (CIF) explaining their mission to collect and

of information and technological requirements. Now, technology is moving into a new revolution of mobile and cloud technology. Iantorno believes that collaboration and representation are the keys to success with each industry segment being represented in the Board and on committees. Still, he reminded attendees, standard development isn’t a “once and done” environment; the industry is constantly changing, so standards work never ends unless the industry is dying. Michael Condon, Principal of Condon Consulting LLC, presented the Repair Standards Entity Research Executive Summary, explaining that research was conducted via 42 anonymous interviews with industry professionals, broken down into 43% repairers, 17% associations, 14% insurers, 7% OEM, 12% suppliers and 7% research training certification programs. The questions explored the importance and expectations of success, scope of CIC’s rule, level of support by the industry, value of certifications and valuations, the standards “gap” and possible preferred business models, comparing the GAAP model, the licensing model and the institute model. Results indicated that insurers and OEMs are less enamored by the initiative than other segments of the industry, and while CIC’s role is viewed as somewhat important, there were many dissenters. Most respondents agreed that there is a gap in the repair standards procedures which needs to be filled, but success is viewed as questionable because of its complexity, a lack of leadership and the absence of a compelling value proposition. The consensus reached by all segments of the industry appeared to be that insurers should not be involved in establishing repair standards. All of the

tions for select segments as required, and finally, they need to aggressively address the issue of independence for the technical bodies responsible for repair standards. Before the Standards Committee closes in November, their agenda is to explore possible solutions and to determine what the American National Standards Institute (ANSI) does and how other industries have embarked on creating standards, according to Paul Krauss, CEO of Craftsmen Auto Body. Jeff Hendler announced that the next CIC meeting will be held at

distribute funds to shops in need, sharing how they donated $2000 to two different Staten Island shops after Hurricane Sandy. CIF has also raised over $25 million for disaster assistance following the deadly tornadoes in Oklahoma. The Foundation will hold their annual fundraising event on Thursday, January 16, 2014 at 6 pm at Lulu California Bistro during the spring CIC meeting in Palm Springs. The Parts and Materials Committee then gathered a panel to present on their Electronic Parts Procurement

“69% of [shops] have no consistent tech training... Consistent training has been proven to improve cycle time, touch time and CSI scores across the board... CynCast Ratings indicate that I-CAR Gold Class shops outscored other shops by 32%” —Jeff Peevy

24 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

See CIC in Boston, Page 26

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CIC in Boston

Continued from Page 24

Survey. The panel was composed of Mike Kunkel of Team PRP, Michael Quinn of uParts Inc., Mary Lou Lubrano of Car-Part.com, Aaron Lofrano of Lofrano & Sons Collision Centers, and Karen Fierst of KerenOr Consulting. Asking that only repairers respond, they questioned the relevance of the seven categories of questions included in their survey of 30 questions. Their goal is to develop a document that repairers can use to compare the features of various parts procurement systems. Audience comments indicated that questions should be as specific as possible, but attempts to discuss free market competition were brushed aside for the moment as Avery suggested that the topic be resumed at the November meeting where it could be facilitated by a committee of past Chairs. Returning to the matter at hand, attendees presented questions about integration, profit margins and business models. The committee’s next steps will be to evaluate responses, then finalize and conduct the survey so that they can analyze their findings to be reported at SEMA. Next to take the stage was the Insurer-Repairer Relations Committee which consisted of Ti Adelmann of ABRA, Doug Irish of VeriFacts, Ron Vincenzi of Oakland Auto Body, Aaron Schulenburg of SCRS, Jeff Peevy of I-CAR, Randy Hanson of Allstate Insurance, and Mark Allen from Audi. Since their focus is on training as it relates to insurer-repairer relations, they asked the audience “who has taken a training program in the past 12 months of their own volition?”—64% of attendees responded

in the affirmative with 45% of them saying they did so because it improves their ability to ensure a safe repair. Peevy discussed the current collision training landscape, noting that 69% of facilities have no consistent tech training. He believes “the work of the future is going to be different because technology is changing at such a rapid rate.” This is why training is so important; consistent training has been proven to improve cycle time, touch time and CSI scores across the board. Furthermore, CynCast Ratings indicated that I-CAR Gold Class shops outscored other shops by 32%, suggesting that the accomplishment of receiving the Gold Class certification is a predictive indicator of success. Peevy believes that the shops that will survive the changes coming in the industry are those with proper equipment, consistent training, access to OEM information and continuous operational improvements which comply with regulations. When Vincenzi was asked why he was one of the shops to become Gold Class certified, he noted that he wanted to do the right thing to ensure he was correctly repairing vehicles for his customers’ safety. “It wasn’t a business decision; it was a moral decision. I’ve found that if you make a moral decision, it ends up being a good business decision.” Hanson agreed that education and training provide an effective way to address many of the industry’s concerns. Schulenburg also agrees that training is a good thing, but in reference to relationships between insurers and repairers, he noted that much friction arises from pricing models because many shops that invest heavily in training are paid the same as those that do not, yet it’s imperative the investments yield returns in order to run

a successful business. Though Irish does not foresee a pricing schedule based on training, mainly because insurers don’t want to be responsible for addressing whether repairs are done properly and efficiently, training offers many other value benefits and affects recruiting, retention and morale. Schulenburg’s rebuttal emphasized the inequality of stating insurers cannot be expected to change while simultaneously insisting repairers change, suggesting there’s a need to “discuss how to incentivize repairers for training.” Vincenzi suggested that insurers should make sure to do business with shops that are properly trained and equipped, recommending that adequate training should weigh more heavily in how a shop is rated than other factors, such as cycle time. CIECA’s Fred Iantorno then led the Education Committee’s presentation on “The Value that You Can’t See in BMS,” explaining that the BMS is a collection of 146 data exchange formats which support an equal number of business functions, allowing companies to transmit only necessary data without compromising confidentiality. CIECA developed the BMS for use by all facets of the collision repair industry to facilitate the increasing data flow caused by progresses in technology. The BMS also serves another important business function: providing responses to the messages received. The next step will involve taking this data content and implementing it for mobile and cloud computing as these technologies are assuming a monopolizing role within the industry. The project has already been initiated with three messages being selected to develop and pilot so that CIECA can review and refine their results in order to select and prioritize existing BMS

messages in order to add the mobile and cloud versions of their packages. CIECA’s comprehensive suite of business messages is intended to improve the industry’s efficiency as these messages cover a wide range of business functions that include something for every segment of the industry. Toby Chess then lead a Technical Presentation entitled “Everything You Wanted to Know about Glass and More.” reminding attendees that the main functions of windshields in modern vehicles is the vehicle structure, to be part of the frontal air-bag system, and to restrain passengers in the vehicle. He continued to discuss the types of vehicle glass, indicating that the labels, or “bugs,” on the glass indicate the type of glass used; only A1 glass should be used for windshields as it is laminated and provides at least 70% light transmission, making it the clearest automotive glass used. Chess reviewed the differences between laminated and tempered glass and suggested that since modern vehicles are designed with the windshield bug being a key structural component, it is imperative that it be constructed and repaired accordingly for consumer safety. He discussed the differences between OE and aftermarket glass, noting that AFM glass cannot duplicate OE glass; it must possess a different curvature, thickness or composition. After discussing the differences between adhesive and cohesive failures, he raised attendees’ eyebrowsl by stating that there are no federal specifications about the type of glass used as federal regulations are based only on the process of installation and performance in an accident. After ascertaining interest in having a panel investigate these issues with automotive glass, to be shared in November, Avery adjourned the meeting.

New Canaan, CT, Body Shop Fire Starts in Emissions Testing Bay

What started as a car fire in the emissions testing bay of AC Auto Body at 182 Main St., New Canaan, CT, engulfed the structure July 15 around 5 p.m. The fire started from a gasoline leak of an older, gray Volvo 840 sedan, which was being tested. The driver had just filled up his tank at the Gulf station across the street when he brought it into the emissions bay, according to AC Auto Body owner Anthony Cesaro. “As soon as he pulled it in, it caught fire. My guy started working on it and `poof.’ He felt heat on his leg

A Volvo sedan caught fire and ignited a blaze inside the emissions testing bay at AC Auto Body at 182 Main St., New Canaan. The fire was contained to the bay and no one was injured. (Photo: Tyler Woods)

26 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

and saw the bottom of the car was on fire,” Cesaro said. The employee called the Fire Department, which is located just blocks north on Main Street. The fire spread from the car to the building as firefighters arrived. “You can tell from the sign how much heat was coming out from inside,” said Fire Chief Jack Hennessey, gesturing at a tattered and charred sign, which read, in part, “CT. EMISSIONS TEST CENTER.” The fire was confined to the emissions testing bay and did not damage the

main garage, to which it is connected. Cesaro said he’d be in touch with the car owner’s insurance company. No one was injured.

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AUTOMAKER, AU A UTOM OM MA AK AK ER O OEM EM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News

NEW YORK • NEW JERSEY • PENNSYLVANIA • DELAWARE

Chrysler Issues Recall on Air Bag Modules

GM to Recall Four 2012 Volts

Japan’s Toray Buys Stake in Plasan Carbon Composites

Ford to Hire 3000 Salaried Workers in 2013

Chrysler is recalling certain model year 2013 Town & Country and Dodge Grand Caravan vehicles manufactured June 11, 2013, through June 12, 2013. The occupant restraint control module (ORC) has incorrect software installed which may adversely affect air bag deployments in collisions. Thus, these vehicles fail to conform to the requirements of Federal Motor Vehicle Safety Standard No. 208, “Occupant Crash Protection” and No. 214, “Side Impact Protection.”

Japan’s Toray Industries Inc. has taken a minority stake in U.S. auto carbon fiber supplier Plasan Carbon Composites Inc. in a move underlining the potential growth for carbon fiber parts. The 20 percent stake comes as Plasan begins to launch its biggest and highest profile project —making two body panels for the 2014 Chevrolet Corvette Stingray. The companies did not disclose financial terms of the deal. Tokyo-based Toray has been establishing development centers globally to help speed the use of carbon fiber in the auto market. The investment in Plasan takes Toray’s involvement further, and helps to ensure a distribution channel to U.S. automakers and to establish Toray as part of a vertical integration system for the material.

Nissan Plans Major Reforms in Buying, Shipping, Building

Nissan Motor Co. is attempting to pare U.S. operating costs by rethinking the way it buys parts, builds cars and moves cars and components around the continent. U.S. executives are looking for the cost reductions to help Nissan meet CEO Carlos Ghosn's "Power 88" business plan, which calls for a global consolidated operating profit of 8 percent by March 2017.

General Motors Co. said it will recall four 2012 Chevrolet Volts because of an electronic glitch that could increase the risk of a crash — the first recall of the Detroit automaker’s plug-in hybrid electric vehicles. GM says the electronic stability control may not work as intended and increase the possibility of a crash in an emergency braking incident. GM is unaware of any crashes or injuries associated with this condition. This is the first recall for the Volt since late 2010.

Ford Motor Co. said it will hire 3,000 salaried workers this year—800 more than previously announced. Ford said 80 percent of the new employees will be technical professionals with “new skills.” The company expects 85 to 90 percent of those hires will be placed within the state of Michigan. Ford said it also plans to increase hourly employment by 12,000 by 2015. “Engineers and technical professionals are in as much demand as our cars, trucks and SUVs,” Felicia Fields, Ford’s group vice president for human resources, said in a statement. “Global demand and increasing capacity in North America and Asia requires that we aggressively seek out technical professionals in order to continue our growth.” The vast majority of the technical hires will be engineers in purchasing, manufacturing and product development. About 200-300 will be hired in IT-related fields. Fields said some of the hires are attrition replacement, but more than two-thirds of the hires will be new jobs. As a result of the recession, Ford reduced its workforce by 13,000 salaried employees between 2006 and 2009, she said. “There are some people that we did lose during that downturn that have skills and capabilities that we absolutely welcome back into Ford, and some of those employees have returned to Ford,” Fields said, adding that there are still many “new,” advanced skills that require fresh talent.

30 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

Ford to Recall 13K Vehicles over Door Latches

The Ford Motor Co. said June 27 it will recall about 13,100 vehicles for door latches that may fail and cause child safety locks to deactivate. The Dearborn automaker will recall three 2013 model-year vehicles — the Explorer SUV, Taurus sedan and Lincoln MKS sedan — built at Ford’s Chicago Assembly Plant. Upon opening or closing a door, the child safety lock may change from “activated” to “deactivated.” Ford said that no accidents or injuries have been reported. As part of the recall, dealers will test rear door latches and child safety locks, and replace the latch if necessary. The affected vehicles, sold in the U.S., Canada and Mexico, were built between Nov. 29 and Dec. 12, 2012. The problem was first discovered on Dec. 6 during a routine audit, the latch supplier identified a latch with lower-than-expected child safety lock retention torque. On Dec. 7, Ford’s Chicago Assembly Plant was notified of the condition and a stop-ship was issued. Ford spent months testing the issue, using accelerated testing on each vehicle line. This is not the first time that Ford has recalled model year 2013 Explorer, Taurus and Lincoln MKS vehicles.

Japan’s Diamond Electric to Pay $19M Price Fixing Fine

A Japanese manufacturer of ignition coils that were sold to Ford, Toyota and Subaru parent Fuji Heavy Industries Ltd. has agreed to plead guilty and pay a $19 million fine for its role in a conspiracy to fix prices of automotive components, the U.S. Department of Justice said. The plea agreement with Diamond Electric Manufacturing of Osaka, Japan, marks the first time that the Justice Department's broadening automotive parts price-fixing probe has involved parts sold to an automaker headquartered in the United States, the government said in a statement.

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August 2013

GM and UTI Partner to Help Grow Supply of Auto Techs

Universal Technical Institute has formalized an agreement with General Motors Co. (GM) to develop a 12week elective training program for UTI students. The program will first be available at UTI’s Avondale campus. “The availability of qualified, trained automotive technicians is and will continue to be a critical area of importance for GM,” said Mike Durkin, Director Dealer Service and Warranty Operations, at GM. “When looking at UTI’s industry leading curriculum, facilities and student and employer support services, we knew we had a solid partner to build something great with, supporting a growing need for technicians at our dealerships across the country.” The curriculum for the GM elective program will be developed in partnership between UTI, GM and Raytheon Professional Services. For more follow UTI on Facebook at www.facebook.com/UTI, or on Twitter at @UTITweet.

Rearview Cameras Delayed

The Obama administration is again delaying regulations on whether new cars and trucks must come equipped with rearview cameras to protect against drivers backing over people in blind spots behind their vehicles, a victory for automakers who say requiring the cameras is too costly. Transportation Secretary Ray LaHood said Thursday in letters to three members of Congress that more research is needed. He set a new deadline of January 2015 for the regulations. An average of 228 people are killed and 17,000 injured each year because of back-over accidents. Nearly half the deaths involve children under age 10. The elderly also frequently are victims. Congress passed a law in 2008 requiring the government to issue final regulations aiming at protecting against backover accidents by Feb. 28, 2011, and that the changes be in place for model year 2014 vehicles. But the regulations have been delayed repeatedly.

Honda Reponds to Amended Class Action Complaint

Honda has filed a response to an amended 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 regulator defect results in the sidelite falling into the door frame or becoming stuck in the fully-open position. Phyllis Grodzitsky, owner of a Honda Odyssey, and Jeremy Bordelon of Tennessee, owner of a Honda Element, alleged in the original complaint that they reported repeated failures of window regulators in their vehicles. Grodzitsky further claims that she contacted her local Honda service manager and was told, “all [Honda Odysseys] have that problem.” In its response to the amended complaint, the automaker’s attorneys write, “Honda expressly denies that ‘all Honda Odysseys have that problem.” Honda’s attorneys deny most of the allegations. Honda admits that within some, but not all, vehicles that are part of plaintiffs’ putative class definition, side windows are moved up and down by a window regulator that operates with a central track, a shuttle and a cable, attached to a motor.

Volvo: Six State Class Action Should Not Be Certified

Citing a recent U.S. Supreme Court decision, Volvo has filed a motion requesting that the U.S. New Jersey District Court reconsider certification of a six-state class action over an alleged sunroof defect. In March, Judge Dennis Cavanaugh granted plaintiffs’ motion for certification of statewide classes in Massachusetts, Florida, Hawaii, New Jersey, California and Maryland. “In doing so, the court rejected Volvo’s argument that certification of plaintiffs’ statewide classes was improper because, among other reason, plaintiffs had offered no proof that class-wide damaged could be proved with common evidence,” Volvo’s attorneys argue in the motion. “Rather, the court relied on the allegations of the second-amended complaint to conclude that the relief sought by the plaintiffs applies to all members of the certified classes. The United States Supreme Court issued its opinion in Comcast Corp. versus Behrend... [which] makes clear that the court’s decision to certify a class without any showing that damages can be proved on a class-wide basis was in error. The court should reconsider and reverse its decision,” the attorneys write.

Future Looks Bright for U.S. Auto Industry, Hiring, Sales

The auto industry is about to go on a hiring spree as car makers and parts suppliers race to find engineers, technicians and factory workers to build the next generation of vehicles. The new employees will be part of a larger, busier workforce. From coast to coast, the industry is in top gear. Factories are operating at about 95 percent of capacity, and many are already running three shifts. As a result, some auto and parts companies are doing something they’ve been reluctant to consider since the recession: Adding floor space and spending millions of dollars on new equipment. “We’re really bumping up against the edge,” says Michael Robinet, managing director of IHS Automotive, which forecasts auto production. “So it really is brick-and-mortar time.” The auto industry’s stepped-up hiring will help sustain the nation’s job growth and help fuel consumer spending. The government said U.S. employers added 175,000 jobs in May, roughly the monthly average for the past year and a sign of the economy’s resilience. U.S. consumer confidence has reached a fiveyear high. The auto industry’s outlook is bright. Vehicle sales for 2013 could reach 15.5 million, the highest in six years.

OEMs, CARE, and AAIA Seek Solution to Right to Repair

At a hearing on New Jersey Right to Repair bill, representatives of AAIA and CARE along with auto OEMs said they want to develop a national solution on the right to repair issue. Hope to conclude an agreement by the end of July. ASA believes its 2002 deal with manufacturers is working. After more than a decade of effort to pass legislation, first at the Federal-level, then at the statelevel, some of the organizations supporting Right to Repair legislation appear to be seeking a negotiated solution with automakers. In testimony before the Consumer Affairs Committee of the New Jersey State Legislature on Assembly Bill 352, the Motor Vehicle Owners Right to Repair Act, Aaron Lowe, with the Automotive Aftermarket Industry Association (AAIA) stated that while they remain strong supporters of right to repair legislation in the states, nationally, they are in discussions with auto manufacturers on a national solution. Lowe said that after the passage of Right to Repair legislation and the success of a later ballot measure in Massachusetts, AAIA and CARE began to seek a national solution with OEMs.

www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 31

NOLA Shop Owner Implicated in Cover-Up of Hit and Run, Fourth Suspect Sought The owner of the New Orleans body shop at which police found the car allegedly involved in a fatal hit and run of an officer bonded out of jail the morning of July 11. Best of the Best Auto Shop owner Bill Cager, 33, was booked with obstruction of justice and accessory after the fact to manslaughter. His bond was set at $100,000. Officer Rodney Thomas was fatally struck by a Porshce Panamera, which was allegedly being driven by Justin McKey, 25. McKey was booked on manslaughter and felony hit and run charges, as police said that he was behind the wheel of the 2013 Porsche Panamera that hit Officer Thomas on the High Rise at around 1 o’clock the morning of July 7. Orleans Parish Sheriff’s records

lance video inside the Best of the Best of the Best Automotive and Collision Center, at 2635 Gravier St., and was recorded the morning Thomas was killed. Anyone with information on the whereabouts of this man is asked to call Crimestoppers at 504.822.1111 or toll-free at 1.800.903.7867 McKey turned himself in at 3:30 p.m. July 8, told police where to find the Porsche, and admitted he was behind the wheel when he hit Officer Thomas on the Interstate 10 high rise around 12:45 a.m. July 7. Before the hit and run, Thomas was involved in a minor traffic accident in a personal vehicle on the way home from his night shift in the second district, and began directing traffic while in his uniform and reflective vest. While Thomas was directing traffic, witnesses said the Porsche side-swiped Thomas’ truck before striking Thomas, carrying him on the hood of the vehicle before he fell to the ground. The Porsche then sped off. McKey told investigators he was driving the “car in and out and it was dark and he didn’t see him.” McKey’s neighbors said Rosalyn Thomas, far right, the wife of New Orleans Police Department Officer Rodney Thomas, looks at a photo of he and his mother have lived her husband, far left, on the hood of a NOPD car during a in the neighborhood for vigil at 2nd District Police Station on Magazine Street in years, and they have never New Orleans on Thursday, July 11, 2013. (Photo by Chris before seen a white Porsche Granger, Nola.com) on their street, raising quesshow McKey posted $50,000 bond at tions about who owns the car. 7:39 p.m. July 9. Court documents confirm, HalA third suspect in the case, Ken- ley was previously cited for driving neth Halley, 28, remained jailed as of the Porsche erratically near the MerJuly 11. Halley is accused of taking cedes-Benz Superdome around 9 pm the damaged Porsche to Cager’s Best on July 6, hours before the fatal hit of the Best Automotive and Collision and run. Center, at 2635 Gravier St. Bond was Police have not yet said who set at $100,000 for charges of acces- owns the Porsche. sory after the fact to manslaughter When the car was discovered at and obstruction of justice. But he was Cager’s shop, he and another man albeing held without bond for parole legedly involved in the cover up, violation. Kenneth Halley, were arrested. HalNew Orleans police are search- ley has a previous felony conviction ing for a fourth suspect in the fatal according to court records. hit-and-run of NOPD officer Rodney According to court documents, Thomas, according to NOPD Cager used towels to wipe blood off spokesman Frank Robertson. the car. NOPD technicians found Police released a grainy photo- blood stained rags in garbage cans in graph of the suspect on July 10 (see and around the business the next day, as well as hair on the car’s windphoto at www.noladefender.com/content/n34ew-pers78on-interest-cops-hit- shield. The vehicle had extensive damage to the front end and passenand-run-death.) According to police, the photo was taken from surveilger’s side, and the windshield had a

32 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

massive indentation where glass had shattered. According to court documents, Halley picked up a friend and drove the Porsche to the body shop within an hour of the crash.

Halley has a lengthy criminal record, which includes multiple arrests, including charges for second degree murder and heroin distribution. He was arrested multiple times in 2008 alone, resulting in convictions for distribution of heroin and cocaine and attempted possession of a firearm by a felon. Halley was released on good behavior in 2011, serving only two years of a five-year sentence that would have been up in 2014. New Orleans Police have arrested Justin McKey, left, Shop owner Cager was arKenneth Halley, center, and Bill Cager, right, in connection with the fatal hit-and-run accident that took the life of rested in 2002 for unauthoNOPD Officer Rodney Thomas early the morning of July 7. rized use of a motor vehicle, (Orleans Parish Sheriff's Office) illegal possession of a stolen Surveillance cameras inside and auto worth over $500, and altering or outside the business showed the ve- removing an auto VIN number, all of hicle arriving at the business, and the which were refused. Cager also had subsequent attempts to clean the car, a 2002 municipal court charge for said prosecutors. disturbing the peace. McKey has a January arrest in Thomas’ funeral services were which he pled no contest to criminal held morning of July 12 at Franklin trespassing (domestic violence) and Avenue Baptist Church. The cerewas sentenced to 30 days, a $350 fine mony was conducted with full police including court costs, and one year department honors, described by the inactive probation. local media as a “sea of blue.”

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Social Media for Shops

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

with Ed Attanasio

Pinterest, Instagram and Tumblr—Three ‘New’ Forms of Shop Media Social networks such as Pinterest, Instagram and Tumblr are rapidly gaining momentum as content distribution tools and becoming more and more attractive for B2B purposes, including within the collision industry. When new forms of social media get hot, others fall off and disappear—so how do we know which ones are gaining while others are failing? While many body shops use one or more of the aforementioned sites, smart operators can gain an advantage over other body shops that don’t know about them or care. Pinterest Let’s examine Pinterest first, because it seems to be the best known one on this list. Pinterest is a virtual scrapbook that enables businesses, organizations and individuals to organize and share images. Users can pull videos, photos, drawings, paintings, etc., anywhere from the Web on Pin-

terest and other members can re-pin the images elsewhere within Pinterest. Users can organize their Pinterest pages by categorizing content on their own boards.

The obvious goal is to generate new leads and referrals to your shop by using Pinterest. More than 20% of the people who use Facebook use Pinterest daily. Women use it more (72%) and are joining it more than men (2-to-1) which is ideal for the collision industry, because more women take their cars in for repairs than men do. Pinterest has a dedicated iPhone app that gets approxi-

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mately 250,000 downloads every day. And most Pinterest users are between the ages of 25–54 and earning $60,000 annually, right smack in the middle of that highly-desired demographic sweet spot where they have money and can afford to pay their deductibles. Sure, Pinterest is used by a lot by artists, musicians, photographers and creative types, but more and more companies of all types are using it for SEO, marketing, public relations and advertising purposes. Roger Henson from Advertising Business Consultants in Willow Glen, CA is a Pinterest expert and uses it for a wide range of his clients, he explained. “When it comes to any of these emerging forms of social media, they offer a great opportunity, because in many ways, it’s virgin territory,” Henson said. “We’re always looking for the next thing, and that’s why we’ve recommended sites like Reddit, Stum-

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bleUpon, Tumblr and Pinterest well before everyone started jumping on the bandwagon. It’s all about getting as many sets of eyes on your brand and message as you possibly can, and Pinterest works for us and our clients, including several body shops who are getting track able results from Pinterest.” Henson likes Pinterest because businesses can use it to attract traffic to their websites while sharing content, products, services and news, he said. “We’re constantly seeing great numbers and the site is growing in leaps and bounds (145% in the last 16 months). People spend more time on it then Facebook, for example, and we’re hitting a younger audience. In the collision repair business, it’s wise to engage these younger customers, because they are the future of your industry. Once you build that familiarity and establish some trust, the rest is easy.”

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Tumblr Tumblr is a micro blogging platform and social networking website that allows users to post multimedia and other content to a short-form blog. Users can follow other users’ blogs, as well as make their blogs private. Most

of Tumblr’s features are accessible from the “dashboard” interface, where the option to post content and posts of other blogs that are of interest to the administrator can appear. Tumblr was recently purchased by Yahoo so expect to see some investment in the product. Larry Sawyer, a social media maven and the owner of Da Bomb Media in Surprise, AZ. His job is to be up on all of the latest social media sites and he believes that Tumblr will be gaining popularity with businesses for a wide range of reasons, he said. “Blogging is not going away and in fact, blogging is exploding and that’s why Google and WordPress are seeing huge spikes in mem-

bership,” Sawyer explained. “A body shop can share postings from other body shops, their vendors’ blogs and even local community blogs, to keep that level of interaction high. If you’re looking for another form of social media to use, I would suggest taking a close look at Tumblr. By adding it to your dashboard, you can be a part of Tumblr quickly and easily, especially if you already have a blog. By being involved in more social media sites, you’re building your SEO and get in front of more people on the Internet.” Instagram Instagram is an online photo-sharing, video-sharing and social networking service that enables its users to take pictures and videos and apply digital filters to them. At the same time users are sharing them on a variety of social

networking sites, such as Facebook (which owns Instagram), Twitter, Tumblr and Flickr. A distinctive feature of Instagram is that it confines

photos to a square shape, similar to Kodak Instamatic and Polaroid images, in contrast to the 16:9 aspect ratio now typically used by mobile device cameras. Instagram is distributed through the Apple App Store and Google Play, and it was considered valuable enough to Facebook to be worth its billion dollar purchase price. Jeremy Eaton is the marketing manager at Collision Repair Specialists in St. Joseph’s, MO. He’s always looking out for the newest social media to support his family’s burgeoning body shop and he uses all of Pinterest, Tumblr and Instagram because he knows they attract a younger customer that will drive for many years and probably get into at least a few accidents. “We’ve been using Instagram for two years now to share our community events and many of the awards we’ve won,” Eaton explained. “It’s all based on photographs and other images and that’s why it’s ideal for the younger demographic (18-15 yrs.). They’re less into text and more into photos, because they get a more immediate response and have more impact. Keeping your customer informed and engaged is always the key with any

type of social media and we’ve had some very favorable feedback about our Instagram involvement. Some of our younger clients request that we use Instagram to show them the progress of their car as it is being worked on in the shop.” By easily integrating Instagram into his other forms of social media, Eaton is able to connect everything together with just one click of the mouse. “We have Instagram on a dashboard with Facebook and Twitter, for example. It’s simple and doesn’t require a ton of time to manage it. People think it takes hours and hours to do these things, but if you do it right—you can get it done in minutes.” The mobile aspect of Instagram appeals to Eaton and his customers, he said. “Everything is going to be done on smart phones eventually. Lap tops and desk top computers and even tablets are going to eventually become less prevalent, because people want the convenience of doing their computing anywhere and at any time. So, the fact that Instagram is geared toward mobility makes it an ideal form of social media for any business, including body shops of course.”

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Cicero, NY, Body Shop Crash A Cortland County man is charged with DWI after crashing an SUV into a Cicero, NY, body shop just before 11:00 p.m. on July 6. Richard Lung, 36, of 2895 Parks Road, McGraw, was driving a Jeep Liberty west on Lakeshore Road in the town of Cicero at 10:37 p.m. when he failed to stop at the intersection of Lakeshore Road and Route 31, Sheriff's Sgt. Jaymes Hurley said in a news release. The SUV went through the wall of an office and bathroom, and pushed into the wall of a second office, said Valerie Schuler, whose husband owns the shop. Water pipes in the bathroom broke, causing water damage, she said. All the file cabinets were crushed and the papers that once sat neatly inside are wet from the broken pipes, Schuler said. Dan Schuler plans to try and keep his business open, his wife said.

MA Shop Workers Wilt in the Humidy, Not Just the Heat Eric Spring, a welder who has been at MacNamara Fabricating Co. in Worcester, MA, for about three years, had a fan to keep him going. He had red flames painted on his black welding helmet and said he drinks at least a gallon of water each day to stay cool. Sam Etre opened Corvette City Auto Body on Southbridge Street in Worcester in 1976 and on Wednesday, there wasn’t much that could be done at the shop, even with antique cars in need of repair. “It’s always 100, 110 (degrees) inside the garage,” he said soon after dumping half a bottle of ice-cold water into his sweat-stained baseball cap to cool off. But when the temperature outside shoots into the 90s with uncomfortable humidity, he said, body work is nearly impossible to do, so most of the employees were sent home for the day.

Closed Body Shop Raided by FBI in Schaghticoke, NY

FBI agents and State Police converged on a former auto repair shop on Route 40 the afternoon of June 19, conducting an inquiry that led to the removal of a car from the premises. Shortly after 4 p.m., agents in field jackets could be seen surrounding a two-door Saturn coupe outside the building, eventually towing the vehicle from the property formerly known as Shorty’s Auto Body. The FBI’s Albany office would not provide any details about the operation.

Audra’s “What Women Auto Know” Now a TV Show

Audra Fordin and ABC have teamed up to bring “THE LOOKOUT” to TV. Fordin and her THE LOOKOUT team, share their auto repair experience by guiding a thorough vetting of Auto Repair Shops both personally and as an expert. What she and the team found out about the auto repair world and women is eye opening. ABC’s THE LOOKOUT is a new series where the correspondents use their investigative skills, going undercover or testing trends and products, to help consumers get the most for their money and avoid costly mistakes. THE LOOKOUT is focused on self-help fixes, tracking down, testing, hunting down and checking out to reveal the truth. Audra Fordin is a 4th generation Owner/Operator/President of Great Bear Auto Repair and Body Shop and founder and CEO of What Women Auto Know. She is an educator and mentor who tries to empower women using the WomenAutoKnow.com website as the vehicle to connect all drivers with educational workshops, maintenance and instilling solid relationships with respected auto mechanics. Contact her at audra@womenautoknow.com, 164-16 Sanford Avenue, Flushing, NY 11358

NY Cadillac Dealer Wrapped up in Tainted Construction

Construction on a project that includes a major car dealership has quietly started on a controversial piece of land in Mill Basin twice tied to scandal-scarred politicians who have tried to help developers buy the land from the city. In April, the Bloomberg administration announced it had sold the 110,000square-foot parcel near the Four Sparrow Marsh and the Belt Parkway to Brooklyn auto dealer Lilaahar (Sammy) Bical, owner of Kristal Auto Mall, one of the biggest Cadillac dealers on the East Coast. Bical was helped in his bid to obtain the land after paying tainted state Sen. John Sampson (D-Canarsie) a $10,000 “retainer fee” to help arrange a sit-down with Bloomberg administration officials. Those meetings occurred in early 2012, and this past March the city sold him the land for $4.2 million. The FBI is investigating whether Sampson broke the law by seeking and receiving retainer fees from Bical, and another businessman, in an unrelated case, who sought his assistance in dealing with the government, local media sources said.

Oneida, NY, Shop and Parts Store Extensively Damaged

A firefighter is recovering from minor injuries after a fire causes extensive damage to an auto parts store in the city of Oneida the morning of June 26. The call to Gary’s Auto Parts on 651 Fitch Street came in just before 8:30 a.m. Firefighters had the blaze under control in about 20 minutes, but three garage bays were gutted by the flames. The fire started in the shop area but it’s attached to the main building. Oneida Fire Chief Gregg Myers said the fire appeared to start in the rear area of a car which was up on a lift. Employees were draining gas from a tank, and the gas ignited from a yet to be determined source. Investigators are still working to figure out how the fire started, by they say flammable materials fueled the flames. Oneida Deputy Fire Chief Darrin Ball says one firefighter suffered a minor injury because of strains and exhaustion. That individual was taken to Oneida Healthcare for treatment. Ball says firefighters were able to contain the fire to the shop area, so the retail portion of the business was relatively clear from damage.

36 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

Bernie’s Auto Body Fire in East Patchogue Investigated

Three firefighters suffered minor injuries battling a blaze that destroyed a commercial auto body shop on Long Island outside Brookhaven, NY, officials said. The fire consumed Bernie’s Auto Body at 1240 Montauk Hwy, East Patchogue, NY. The firefighters were all taken to Brookhaven Memorial Hospital Medical Center in East Patchogue. One suffered a back injury, another an elbow injury. The third injury was not immediately known. The cause of the blaze, reported in a 911 call at 2:50 a.m., is under investigation. Officials initially confirmed the address as that belonging to Suffolk Collision Specialists, located a few hundred feet west of Bernie’s on Montauk Highway at the intersection with Kane Avenue. The owner of Suffolk Collision, Richard Clark, said he was surprised to see reports that his business had been damaged —and said it hadn’t been and was still open for business. “We’ve got a state-of-the-art building here,” Clark said. “If there’d been a fire here, they would have known about it a minute after it started.”

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Gene Crozat of G&C Auto Body Can’t Seem to Give Enough, Fast Enough well-known for his Meter Beaters Program that takes place every holiday Gene Crozat, the owner of G&C season as he covers peoples’ parking Auto Body based in Santa Rosa, CA, fees in downtown Santa Rosa, CA—a is known as a fierce business comprogram G&C has sponsored for the petitor to surrounding shops, and has past 20 years. But, now the man and always done everything in a big way. his family are fast-tracking and increasing their charitable efforts, by giving away more cars and more cash for people and organizations that need it. For example, last year the Crozat family made recordsetting pledges to the Christmas Wish program and The Children’s Village, as well as many smaller donations to From left, Kent Bjustad from Sonoma Media Group, car local community non-profit recipients Destiny Snell, Brad Snell and Gene Crozat in front of a vehicle G&C Auto Body donated to the family organizations including Menas part of their Car-A-Month Giveaway program R-Pigs, Becoming IndependIf you ever visit any of his 10 Bay ent, the Jon Michael Martin Medical Area locations, you’ll see they look Fund and the Boys & Girls Club of more like The Bellagio in Las Vegas Marin, local Boy Scout troops, softthan a body shop. Crozat is already ball leagues and elementary schools. Recently, Teri and Gene Crozat legendary for generously donating money, clothing and other items to sponsored a trip to Disneyland for 14 of the staff and all 24 kids of The Chilfamilies throughout northern California, for no reason other than to know dren’s Village in Santa Rosa, as well as donating an entertainment center in he has helped someone. He is also by Ed Attanasio

their existing rec room. They also doSonoma County Fairgrounds and then nated the use of the company’s luxury refurbished by the techs and detailing suite at a Giant’s game, including 12 team at G&C. In some cases, Crozat repairs cars that nominated people altickets, as an item for the annual auction at The Children’s Village Gala, ready own to make them drivable and dependable. raising $6,000. The Children’s Village of As he meets these recipients and Sonoma County provides nurturing, gets to know them, Crozat has also family-style homes for children and helped many of these families in their siblings in foster care. Opened in Au- daily lives, helping out with bills, handing out $5,000 worth of $100 gust 2006, The Village currently conSafeway grocery gift cards with sists of four large houses serving 24 children, and four apartments for seniors who act as surrogate grandparents. As another way to help the communities surrounding G&C’s locations and take advantage of the availability of technicians and connections to parts dealers, Gene started a Car-A-Month Giveaway with the help of local radio Morgan Weatherly (left) receives her van’s pink slip from stations, receiving hundreds G&C’s Alayne Saturday. She also received a job at a G&C of letters from listeners in the shop, where she works currently Santa Rosa, Ukiah, and Fairfield $5,000 more ready to go, gas cards, areas. G&C gave away six cars last taking families shopping for clothes, year to those in need and is on track to paying for weekly stays at hotel donate 18 cars in 2013, all of which rooms, “door ditching” with envelopes are purchased at the Car Mart at the of cash to needy families and other

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acts of kindness, according to Govinda Crozat, the company’s Outreach Director and the wife of Shawn Crozat, G&C’s Chief Operations Officer. One of the first recipients of G&C’s giveaway program was Morgan Weatherly, who submitted this letter last December. “My name is Morgan. I am a single mother of four beautiful smart, good kids—ages 17, 7, 3 and 18 months. We live nearly 20 miles out of town; out in the country and nowhere near public transportation. Having a reliable car is critical in our situation. Lack of reliable transportation has been a huge source of stress and hardship over the years. My 7-year-old daughter was born two months premature and at one point I had to hitchhike to deliver “pumped” bottled breast milk to her while she was in the hospital. I have health issues and must travel to U.C.S.F. Medical Center in San Francisco once a week. All my kids go to different schools because of their age differences. I also take care of my mother who is ill and without transportation. I take her to all her doctor’s appointments. I would be so grateful if someone can help me to get a good car or van. I will give back in any way I can.

I would be willing to work for free at your shop, cleaning up, etc. I hope you can help us.” In January, out of a huge stack of letters read by several people, Weatherly was chosen to receive a used Town and Country, as well as a paid job at a G&C location.

Govinda Crozat (left) and her husband CEO Shawn Crozat have taken Gene’s charitable efforts to a whole new level

Brad Snell, another vehicle recipient, is a student at Santa Rosa Junior College studying to work in the human services/advocacy industry.

Last year, he finally gained custody of his 15 year-old daughter Destiny and in January after complaining that she couldn’t see they discovered that she needed emergency brain surgery. The surgery was a success, but there is still a mass on her brain that requires regular tests performed in San Francisco, a 1.5 hour trek from Santa Rosa. When a friend wrote to a local radio station promoting the G&C Auto Body Car-A-Month Giveaway, Self was completely unaware of all the wonderful things that were about to happen to him and his daughter. When he got the word, Snell was shocked and actually on his way to San Francisco with his daughter for more tests, in a borrowed car. “I can’t believe that a man at a body shop could do something so amazing for us,” Snell said. “We were really struggling to get to San Francisco and Gene Crozat gave us more than just a car—he gave us the confidence to make all the appointments. Destiny is doing better now, but there is still work ahead. But, having reliable transportation has made it so much easier. Every time I get in this car with my daughter I say a little prayer to the people at G&C.”

Gene Crozat has built a large, successful business and now he wants to enjoy his grandchildren and perform charity work, as he slows down but never stops when it comes to giving back, he explained. “I tell my kids if they want to open new locations, go for it, but my goal is to help as many people as I can while I’m around. I worked hard for many years and now this is how I find happiness. In the end, you can’t take it with you.” Shawn Crozat learned the business from his father and he shares his passion for every aspect of the collision repair game and all of the opportunities for philanthropy that can come with it, he said. “My father has always taught us to pull for the underdog and for years he has been hiring ex-convicts and addicts to give them a real chance at earning a living for themselves and their families. Now that he has grandchildren and is slowing down a little bit, he notices the downtrodden nature of those in need more than ever, especially children and families with illnesses, single mothers, etc. He has become more and more generous every day and it’s amazing to watch.”

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‘Da Wagon’ Pulls Them In for Auto Body Hawaii on the Big Island by Ed Attanasio

Do you have a red Radio Flyer Wagon back when you were a kid? As an American toy classic, right alongside Legos, slinkies and silly putty, the

The entire crew at Auto Body Hawaii in Kona poses with “Da Wagon.”

Radio Flyer name makes people in this country wax nostalgic. And that is why Dale and Rissa Matsumoto, the owner’s of Auto Body Hawaii in Kona, HI, designed and built a one-ofa-kind version of this iconic toy that gets oohs and ahhs wherever it goes.

Da Wagon” had some very interesting passengers during this year’s Kailua-Kona Fourth of July Parade

Rochester, NY. Today, the company is known as Radio Flyer and they still make wagons, as well as scooters, bicycles and tricycles. Back in November of 2011, the crew at Auto Body Hawaii sat down at a meeting to brainstorm about innovative marketing ideas that could bring business and attention to the shop while allowing for further philanthropy. Auto Body Hawaii has always worked very hard at reaching out to the people of Kona and its surrounding areas, because they see the value of helping others and playing a positive role in the island’s business community, according to Rissa Matsumoto. It all began when Dale Matsumoto started making junior dragsters for local youth programs and eventually it evolved into the realization of “Da Wagon.” “Our junior dragsters were a hit and we were winning awards for them,” Matsumoto said. “And then we started seeing these little red wagons in local parades, with a dog or a child in the back and getting pulled around by an adult. That’s when I flashed on the idea of a huge red wagon, figuring it would be a big attention-getter.” After deciding to build “Da Wagon,” Dale Matsumoto and his crew jumped quickly into production mode, because they had a definite deadline for completing the project, he explained. “We wanted to have it ready for the annual Christmas parade they do here in town and so we didn’t have much time. The entire shop got involved and it was an exciting period.” After three weeks of intense work, “Da Wagon” came together nicely and the local buzz started to build. “We were working on the wagon between fixing cars and running a busy shop,” Rissa Matsumoto said. “There were a

They call it “Da Wagon,” and it always makes a huge impression, primarily at community events, fundraisers and other shop-sponsored activities. Why so much attention for a children’s wagon? Well, because the Matsumoto family does everything in a big way. Auto Body Hawaii is the largest collision facility on the Big Island and their Radio Flyer Wagon also makes a big statement, because it’s 10 ft. long, six feet high and has 60-inch wheels! If you’re not familiar with the Flyer Radio Wagon, they were invented back in 1917 in Chicago Illinois by a company called the Liberty Coaster Company. Their signature red wagons have never wavered in popularity and even during the Great Built completely from scratch, the building of “Da Wagon” got the entire crew at Auto Body Hawaii in on the conDepression, 1,500 were struction and design being produced daily. In 1999, the Radio Flyer was inducted lot of nights and weekends, but we into the Toy Hall of Fame in pulled it off. It was a great team-build-

40 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

ing experience and when it was complete, you could feel the sense of accomplishment and the pride. It was a wonderful thing to see.” When Auto Body Hawaii unveiled “Da Wagon” for the first time at the 27th annual Kailua-Kona Christmas Parade two years ago, the Big Island greeted the big wagon in a big way. “People here couldn’t stop talking about it,” Dale Matsumoto said. “And they haven’t stopped yet. We never

and this wagon, to help people and show we’re not going anywhere.” Since then, da shop has pulled out “Da Wagon” on several occasions, but most notably, it has appeared in two Christmas parades and a pair of Fourth of July parades. In addition, the Matsumotos will show it off whenever it can, especially for fundraising or charitable efforts. “Sure, it’s a marketing tool and there’s no doubt about it,” Rissa Matsumoto said. “But that’s not why we’re doing it. If people can see the wagon and think of us in a positive way, we’ve done our job. And if it entertains people, that’s even better.” –People have suggested that the “Da Bomb” needs to be modernized, with a motor, a fancy sound system “Da Wagon” is not motorized and needs to be pulled, just and expensive rims on its the way the Matsumotos want it huge wheels, but Dale Matimagined the incredible response. It sumoto likes it just the way it is. conveys a message we really like and “Sure, we could do a lot of stuff to it, but I like the fact that’s it simple. It’s it’s basically hey—we work in this large, sure-but it’s basically stock and community and we want to do what we can through our shop, our employees that’s how we like it!”

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On Creative Marketing with Thomas Franklin

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

Still Using a Quota System For Consumer Sales? I was surprised recently to learn of a shop that still uses sales quotas. As a professional in marketing and sales, I am very familiar with quotas, and the pros and cons of the practice. It’s likely that the various sales reps that call on collision repair shops, selling everything from computer systems, estimating software and spray booths to frame machines, are expected to meet sales quotas. It’s also likely that at the end of the month when a rep is still way under his or her quota that some drastic measures will be taken to force yet one or two more sales. That’s just the nature of using a sales quota system. But I had to ask what a collision shop sales person could do to close more business for the shop at the end of the month? Earlier in the month he or she could have gotten on the phone and called prior customers, or placed more follow-up calls to prospects who brought in their vehicle and didn’t leave it to be repaired. Or when the shop has dealership connections, the sales rep could push hard on the dealership service drive for collision work. But at the end of the month, the story would only be told with closed tickets. What could he or she do to push that up to meet a quota? I talked to one rep who said the game begins when a customer brings in a car to be repaired. The aggressive rep on quota barely waits until the cus-

tomer is out the door before he or she is on the phone to the customer’s insurance company to get an adjuster out to look at the car. If the company says five days, he or she immediately contacts the customer to call and push his or her insurance company to get out to see the car in three days or less. The rep also pushes for a quick teardown to expedite the parts orders and avoid supplements. If the end of the month is coming quickly and some of that rep’s vehicles have still not been completed and closed out, the rush is on to find out why not. Delayed delivery of parts is a hard problem to overcome, but supplements are a different story. I was surprised to learn that a shop owner willing to work with this kind of quota pressure would permit a rep to go the customer to approve a supplement if the insurance company is holding back on it. When the job is completed if the insurance company hasn’t paid for the supplement, the customer will get the bill. Now the aggressive rep has to convince the customer that he or she will be able to collect back from the insurance company eventually. So here we arrive at why few shops allow this kind of last minute quota pushing. A customer who is pushed to authorize supplements and collect back from his or her insurance company may not choose to use this shop again. It was obvious this shop

ASA Meets with Administration Re MFN Clauses

Automotive Service Association (ASA) leaders recently gathered in Washington, D.C., to meet with administration and Capitol Hill officials to discuss Most Favored Nation clauses contained in some direct repair program (DRP) agreements with insurance companies. ASA wrote administration officials in 2012 asking that they also consider the impact of MFN clauses on parties involved in property and casualty insurance. Testimony by administration officials on Capitol Hill to date have reflected more interest in health insurance agreements. ASA maintains that the anti-competitive nature of the clauses puts both consumers and collision shops at a disadvantage. In 2010, the U.S. Department of Justice filed a suit against Blue Cross Blue Shield of

Michigan regarding the use of MFN clauses. In 2012, the commissioner of the Office of Financial and Insurance Regulation of Michigan issued an order, which prohibited the use and enforcement of any MFN clause in a health insurer provider contract that has not been previously reviewed and approved by the commissioner. The Michigan legislature followed with a ban on MFN clauses in health insurer contracts. The North Carolina legislature approved House Bill 247, a bill that restricts MFN use by allowing health providers and health insurers to freely negotiate reimbursement rates by prohibiting contract provisions that restrict rate negotiations. The bill has been signed into law and will become effective Oct. 1, 2013.

42 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

owner put the highest value on quotas and profits, while another might do everything possible to not irritate a customer. I could see that this shop is highly profitable and capable of bringing in plenty of jobs without worrying about retaining every customer in the long run. I could also see why many shop owners would shy away from using quotas, but might there be a way to do it without irritating and possibly losing customers? A long history of successful companies using sales quotas says they serve an important purpose. Sales reps are strongly motivated by sales contests, sales bonuses, commissions and more. Even the mention of quotas when hiring a rep will tell an owner whether or not this person can work with that kind of pressure. Many cannot and it’s best to determine this as soon as possible. The pressure of having to meet a quota will probably drive a laid-back employee crazy but

an aggressive sales type will thrive on it and draw on a depth of ingenuity to bring in or close business that otherwise could have slipped away. After this conversation about quotas, I asked a few other shop people whether or not they used quotas in their shops. No one else I spoke to used them, but there was often a greater emphasis on targets and team closing. It seemed to me that individual quotas could be difficult to manage in most collision shops, but given the new emphasis on lean processes and team production, I think there is definitely a place for some sort of target or quota system. At first glance this might not seem applicable to a small, independent shop but perhaps that’s where it may be needed most to “light a fire” under sometimes complacent estimators and owners who now have to compete in a much more ruthless collision repair marketplace.

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CAA Urges Shops To Monitor Insurer Compliance with New Regulations The California Autobody Association (CAA) is asking shops in the state to asking them to report any insurer violations of the new insurance regulations which took effect this year. Insurance Regulation Amended Section 2695.8, took effect in March this year. The new regulation addresses issues including aftermarket parts and procedures for adjusting shop estimates. The CAA has been working with the department to assist in clarifying the areas of aftermarket parts usage and claims settlement and the new regulations are, in part, a result of CAA discussions with the CDI. In order to assist the CDI, the CAA is now asking shops that are aware of non-compliance by an insurance company related to the new regulations, to submit an Autobody Complaint Form to the CDI. The new regulation addresses a number of issues in the collision repair industry. The regulations: 1) Require the current insurer’s warranty of aftermarket parts be expressly stated in the estimate of repair generated by the insurer; 2) Require an insurer to cease use

of a part known to be non-compliant, and notify the part distributor within thirty (30) days. 3) Require an insurer to pay for an amount to repair the damaged vehicle to its pre-loss condition in a good and workmanlike manner, based upon the repair standards required by auto body repair shops licensed to the BAR; 4) Require an insurer to pay for the costs associated with returning a defective part and the cost to remove and replace the defective part with a compliant non-OEM part or an OEM part; 5) Insurers’ estimates cannot deviate from the standards, costs, and/or guidelines provided by the estimating software used by the insurer. The CAA notes that the section of the new regulations dealing with the shop estimate and how insurers may make adjustments, is extremely important and shops need to know how this section specifically applies. The section states that, if a claimant contends that necessary repairs will exceed the written estimate prepared the insurer, the insurer shall reasonably adjust the shop’s estimate by either 1) providing the claimant

with an edited copy of the shop estimate or, 2) providing a supplemental estimate based on the itemized copy of the shop estimate. The section states, “The adjusted estimate shall identify the specific adjustment made to each item and the cost associated with each adjustment made to the claimant’s shop’s estimate.” In January the Association of California Insurance Companies (ACIC) had complained that the new regulations “essentially require insurers to pay whatever auto repair shops demand” and that insurers “no longer have the ability to negotiate the most effective, less costly repair.” Armand Feliciano, ACIC vice president, said in a published interview at the time that, “Auto repairers have resorted to legislation via the regulatory process. We feel that some of these regulations that have been put into place are outside of what the CDI has the authority to do.” To read the full text of the regulation: www.insurance.ca.gov/0400-news/ 0100-press-releases/2013/upload/ nr001AftermarketPropAmend.pdf

CARSTAR Adds Southern California Location

CARSTAR Auto Body Repair Experts recently added Browning Collision CARSTAR in Cerritos, Calif., to its national network of collision repair shops. Browning Collision, which has been in business for more than 25 years as a member of the Browning Automotive Group, is independently owned by Kent Browning and managed by Jim Hanson. “CARSTAR provides the expertise to build a solid organization and the tools to improve cycle time and CSI,” Hanson said. “CARSTAR also allows us to have the national exposure required in today’s everchanging auto collision marketplace.” As a member of the CARSTAR network, Browning Collision now has access to the company’s management system, business resources, 19 corporately managed direct repair programs and 45 corporately managed purchasing programs. “We are excited to have Kent Browning join the CARSTAR network,” said David Byers, CEO of CARSTAR. “We are thrilled to expand our presence in the southern California region.”

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www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 43

Northeast News with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Auto Body Association of Connecticut Supports Members’ Concerns and Fights Unfair Legislation Since 1968, the Auto Body Association of Connecticut (ABAC) has been fighting for the collision repair industry. While their focus has changed many times over the past 45 years, ABAC is still dedicated to preserving the integrity and independence Tony Ferraiolo of repair specialists throughout their state. Because there are currently so many important issues facing the industry, Tony Ferraiolo, President of ABAC, took time to share the association’s goals and stances with Autobody News readers. Regarding their mission, Ferraiolo states, “ABAC continuously strives to educate the motorists of Connecticut and to enhance the abilities and knowledge of its members, through education, to provide safe and dependable repairs to the public. Through proposing and monitoring legislation, the ABAC endeavors to protect the best interests of consumers, its members and the collision repair industry.” ABAC has many ongoing goals and projects in 2013. One of their primary focuses is on education. They strive to educate their members on industry-related issues and training, as well as promoting education on and protection of consumer rights. ABAC educates and trains their members on proper repair procedures, including the latest information from OEMs. Additionally, they protect the driving public with consumer advocacy groups which provide the necessary tools to allow the average driver to make informed decisions about their repair needs. Another important goal for ABAC is related to legislation. In addition to supporting class action lawsuits when necessary, the association monitors current legislation, serving as a watchdog to expose insurers for violating fair trade practices and to combat legislation attempts seeking to limit the independence of collision repair facilities. Beyond education, ABAC’s current projects focus on ongoing legislative reforms by maintaining and improving communications with local, state and federal officials. They are

currently in the process of pushing two class-action lawsuits. When asked about the biggest challenges facing the industry today and possible ways to overcome these issues, Ferraiolo lists “the influence that insurance companies have in the auto body industry. Actions to overcome these influences include lawsuits (class action and individual), legislative reforms, and consumer education.” ABAC does not approve of the PARTS Act because “the OEMs should have the same protection that’s given to any other parts manufacturer. We defer to the OEMs because it’s the safest, best way to repair the vehicle.

Even worse, ABAC predicts that it is only a matter of time before other insurers institute similar programs to the detriment of the collision repair industry. This is the reason that ABAC refers to PartsTrader as “an embodiment of what’s wrong with the auto body industry and a harbinger of what’s to come,” which is why they encourage their members (and collision repairers nationwide!) to become educated on the program and stand up for themselves. “In light of the longterm damage this program will likely cause our industry, we are respectfully encouraging those of you who have not yet weighed in on this debate, to carefully examine the pilot program

The research and development that is put into the OEM parts should not be undermined. The PARTS Act will hamper innovative new designs and cause costs to be amortized over a short period of time, driving costs up. Therefore, we reject the PARTS Act.” They also reject the Right to Repair. Ferraiolo notes, “We believe all information should be given out to everyone so as not to discriminate against any repairers. Information should be shared so that vehicles can be safely and properly repaired.” Ferraiolo also believes “PartsTrader is bad for our industry.” In their press release on PartsTrader from September 2012, ABAC notes, “the endeavor is a wolf in sheep’s clothing. It is bad for repairers, part manufacturers, and most importantly, consumers. The only two enterprises in place to profit- and profit handsomelyare State Farm Insurance and PartsTrader.” It is clear that PartsTrader does not benefit repairers or consumers as PartsTrader’s model shows insurers collecting more premiums only to find ways to pay less on claims, which “is fundamentally corrupting both industries,” the press release continues.

and voice your opinions.” ABAC was formed in 1968 when around seven independent organizations joined together to form one association: the Auto Body Association of Connecticut. At that point, ABAC was comprised of two officers from each individual organization who gathered for monthly meetings, but each organization continued to operate separately as well until around 15 years ago when all of those individual organizations joined together to strengthen ABAC. According to Ferraiolo, “because individual groups consolidated and became one, the organization runs more efficiently. The locals were able to concentrate on committees and, therefore, accomplish more for the association. There is strength in numbers.” While keeping their busy repair members engaged in the forefront of the industry, by participating in the latest developments, is always a challenge, ABAC rises to the occasion repeatedly. Other benefits of membership include group discounts, educational meetings and quarter meetings which allow members to stay up-todate on the latest trends to maintain national awareness. Though ABAC has over 400 members, including honorary

44 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

members, shops and vendors, they still strive “to grow and strengthen our membership to create a stronger association.”

T fo 1 v B

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Risley Added to AMI Board

The Automotive Management Institute (AMI) says Dan Risley, executive director of the Automotive Service Association (ASA), has assumed a permanent position on its board of trustees. “AMI has a long, storied history with ASA and I’m glad to continue building upon that relationship,” Risley said. “AMI’s ability to continually deliver high quality education and content that is relative to today’s business is a testament to their reputation in the industry. I’m grateful to be able to contribute.”

Caliber Completes Another Successful Food Drive

In one of the largest food drives in the collision repair industry, Caliber Collision employees collected a record amount of food and cash donations in June that resulted in more than 275,000 meals for at-risk children in five states. Caliber Collision locations in California, Arizona, Nevada, Texas and Oklahoma participated in the company’s 2nd annual Rhythm Restoration Food Drive from June 3rd through June 21st. The companywide program is aimed at providing meals for at-risk children who may go hungry during summer months without regular school lunches. This year’s food drive resulted in 40% more meals than last year’s effort, significantly exceeding company-wide goals. In addition to the food items collected, Caliber Collision also provided a corporate donation of $10,000. “We are very proud of the way our associates routinely set and exceed goals that help restore our customers and the communities we serve to the rhythm of their lives,” said Steve Grimshaw.

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LA CAA Featured BMW i3 Technology at June 19 Meeting The Los Angeles chapter of the California Autobody Association met June 19 with 110 members in attendance to view a special showcase of the new BMW i3 technology.

Guest speaker Tom Brizuela, body and paint technical team leader for BMW North America, introducd and reviewed the new BMW i3 platform that features carbon and aluminum composite technology. The meeting included an actual cutaway view of the BMW i3 platform to review the repair methodology crash worthiness of its new generation platform.

Brizuela began working on cars at age 15, with the dream of someday working for a car manufacturer. He served in U.S. Marines as a diesel/automotive technician and graduated from National Technical College in Los Angeles with an AS degree in Automotive Diagnosis and Repair. Over the years, he worked at independent high-line and exotic auto body repair shops, restoration shops, and a Mercedes Benz dealership, and in 1988 as head paint technician for BMW of North America, Inc. at their Vehicle Processing Center in Oxnard, CA. In 1990, Brizuela was promoted to the BMW Service Training Department and began developing BMWâ&#x20AC;&#x2122;s Body & Paint Service Technician Education Program (STEP). From 1991 to 1995, he was responsible for STEP training at the BMW Montvale New Jersey facility.

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In 1995, Tom accepted a Body and Paint training/curriculum development position with Toyota Motor Sales, USA, at their Los Angeles corporate headquarters. During this time, he was promoted to Body Service Group Supervisor where he became responsible for Toyota and Lexus body and paint training development, technician certification, and training facility management. In 2000, BMW of North America

committed to build a new body and paint-training center in Oxnard, CA., to train entry-level technicians, and BMW dealer technicians. He saw this opportunity and returned to BMW as Body and Paint Technical Team Leader. The meeting was held at Nick Alexander Los Angeles Imports in Huntington Park, CA.

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Inside Insurance with The Insurance Insider

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Insurers Hate to Admit It, But Our Success Depends On You and Your Estimators

Every insurance company knows that down by an otherwise benign Englishtheir profitability and loss cost ex- accented lizard. Er, I mean gecko. At pense relative to auto claims has many any rate, I’m sure it’s creating mayindependent variables. often have with We Chasidy Rae hem Siskwithin Allstate.) no control over them. For an obvious One thing is for certain: When a example, we can’t ask Mother Nature company begins losing market share, to reduce the number of hurricanes it causes them to ratchet down on exthat ravage areas bordering the ocean. penses. Let this serve as your adAnd we have no control over the numvanced warning: Allstate likely will be ber of accidents that our policyholders with Chasidy Rae stingier Sisk than ever. are involved in. What makes Allstate’s investment On the flipside, there are some in educating their staff even more invariables within our control—to vary- teresting is the fact that other large caring degrees, to be sure, but within our riers (including several I’ve worked control nonetheless. I’m referring to for) don’t require any training. Some our staff adjusters. If our staff is well may wonder if they are taking an optrained, if we maintain strict operating posite strategy, sort of a “survival of procedures, and if we provide proper the dumbest.” As Forrest Gump faoversight of our employees, we can mously said, “Stupid is as stupid reduce our overall loss cost expense. does.” If you don’t know how to propTherefore, most insurance carrierly write an estimate, nobody can ers spend a lot of time and money to blame you for trying to cheat them. train and supervise their staff. In addiThere are dozens of other indetion, they regularly make large capital pendent variables that impact loss investments to purchase or develop costs, but let’s focus on “dependent tools to automate an additional level of variables.” A dependent variable is oversight. The challenge is that even loosely defined as those things that inthe best electronic tools can’t replace surance companies depend upon a colthe effectiveness of a human being. lision repair shop for. I never thought Several insurance carriers have I’d say that we depend upon shops but made a especially significant commit- we do. ment to education. Allstate is one exMost of you are probably guessample. They are the largest insurer ing that we depend on you for proper that requires their staff to be I-CAR part selection or cycle time. Although Platinum. That’s quite an investment both of those are critically important for a company that was recently re- to controlling loss costs and improvported as being on the verge of drop- ing profitability, there is one even ping into the third spot among the more key variable. An insurance comlargest carriers in the United States. pany’s loss costs have less to do with (Oh, how the mighty have fallen. your standard operating procedures or Not so long ago, Allstate was a lock part type selection than they do with solid No. 2 and looking for ways to your estimator. knock State Farm off its pedestal. InYour profitability and our loss stead, Allstate finds itself being pulled cost expense ultimately are based on

Northeast News Shop Showcase

your estimator’s ability to write an accurate estimate, manage a claim and follow our guidelines. If you have an experienced estimator that understands a particular carrier’s program guidelines, you are better off than 90 percent of the people reading this article. You should make sure that he or she is well compensated. The skills they have are about as rare as you receiving labor time for prime, block and fill on a repaired panel. That individual can turn a company around and make a historically unsuccessful shop successful. I’ve seen shops that have performed at a high level for years fail miserably when their lead estimator left. Collision repair shops that have the most astute owner, ironclad operational procedures and long-tenured technicians have come to a screeching halt when they lose the glue of the operation provided by a good estimator.

Mainstream Media

Car-O-Liner Gets Honda Approval As Official Supplier

Car-O-Liner has announced participation in American Honda’s Tool and Equipment Programs as an official approved supplier of collision repair products. The programs offer the advantage of one-stop shopping for all service tool and equipment needs. Equipment has been selected for these specific manufacturers in order to enhance collision centers’ productivity and efficiency while properly returning the vehicles to factory specifications.

“Car-O-Liner is pleased to be a part of Honda’s and Acura’s Tool and Equipment Programs,” said Peter Richardson, key accounts manager for Car-O-Liner. “Adding Car-O-Liner to their approved equipment offering means greater flexibility, accuracy and efficiency. Our complete solutions will provide Honda and Acura collision centers with the products they need to maximize their repair potential.”

46 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

I’m sure it is going to cost some shop owners money when their estimator realizes he’s worth far more than you are paying him. Great technicians are probably more difficult to replace, but you can overcome the loss with an average technician and strong estimator. I’ve been in meetings where shops beg to remain on a program after a few months of poor performance. They are quick to indicate that they have lost their best estimator. Without trying to sounding heartless, I don’t care about that. My job isn’t to help you manage your operation. Our goal is to make sure that the best shops are repairing our customer’s cars. If you can’t do it, we’ll gladly take our work to the shop owner that realizes that having only one All-Star on your team is poor planning. So do you have a contingency plan? If you don’t, today would be a good day to start making one.

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VISA and Mastercard Owe About $7.25 Billion to Merchants Who Have Taken Cards Since 2004, Fairness Hearing on Sept. 12 Could Change Amount Owed If you’ve accepted MasterCard and Visa payments from consumers within the past nine years, you may have some money coming your way. Notice of a settlement was recently filed in the amount of $7.25 billion with merchants who have accepted MasterCard and Visa payments since 2004. According to David Cherney, vice president of Digital Financial Group (DFG), a merchant service group in Carson City, NV, the suit was filed in 2006 and has had more than 50 million pages of documents and 400 witnesses to date. “Basically [MasterCard/Visa was] violating anti-trust laws, which you would call price fixing,” says Cherney. “I have made my living in the merchant service industry so indirectly Visa and MasterCard put my kids through college… but I have no problem in being candid about what they’re being accused of. I’ve seen it. They wouldn’t be agreeing to a $7 billion settlement if there wasn’t [cause].” The class action settlement authorized by the U.S. District Court for

the Eastern District of New York, represents two separate classes in the settlement. Members qualifying in the first class, “which includes all persons, businesses, and other entities that accepted any Visa or MasterCard cards in the U.S. at any time from January 1, 2004, to November 28, 2012,” according to a notice, will see $6.05 billion given in cash refunds. The second class, according to the notice, “which includes all persons, businesses, and entities that as of November 28, 2012, or in the future accept any Visa or MasterCard cards in the U.S.,” will see a ten basis-point reduction in interchange rates for 8 months which is equivalent to a $10 savings for every $10,000 processed. Cherney says, “An article from the April 22 Green Sheet says industry experts may receive from the first fund anywhere from $400 to $600 for every $100,000 spent” in Visa/MasterCard purchases. Merchants can determine a rough estimate of the settlement amount they may receive by multiplying the aver-

age monthly Visa/MasterCard volume by 12 (the number of months in a year), then multiplying that figure by nine (the number of years eligible in the settlement). Divide that figure by $100,000 then multiply by $400 to see a conservative estimate of the potential amount your company could receive. A fairness hearing has been scheduled for 10 a.m. September 12, 2013, at the courthouse for the United States District Court for the Eastern District of New York. “After the hearing, a claim form will be submitted to the court for approval and a claim deadline will then be set … Big box stores are currently contesting the $7.25 billion figure; the final amount, which could increase or decrease, will be finalized at the September hearing,” says Cherney. “Until this hearing, when the final [amount] is decided, unless you’re going to opt out of the settlement there is nothing you need to do at this point,” he adds. “After the hearing, claim forms will be available.”

Interested merchants can receive more information on the settlement and potential claims by visiting https://www.paymentcardsettlement.c om/en. This is the official website for this settlement. Please do not rely upon other sites that may provide different and unauthorized information. If the Court grants final approval of the Class Settlement, Claim Forms will be sent to all known Class members. Claim Forms will also be available at the website or by calling the Class Administrator at the toll-free number shown below. Preregistration is optional and does not affect your rights under the settlement. Merchants with multiple locations and/or franchise locations as well as single location merchants are encouraged to Preregister. The information you provide will be used to assist the Class Administrator in the preparation of your Claim Form. In case of questions, call 1-800625-6440 or send an email to: info@PaymentCardSettlement.com.

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with Jeremy Hayhurst This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.

I-CAR Tech

OSHA Hazard Communication Standard Revision The Occupational Safety and Health regarding the hazards of a chemical, carcinogens, reproductive toxins, and Distinctive Dealerships Administration (OSHA) is requiring the label should be revised to the new other toxins that target a specific

that all employees be trained, by De- standard within six months of becomwith Williams cember 1st of 2013, on Larry the revision to ing aware of the new information. its Hazard Communication Standard. With products that have not changed, The revision to the 1994 standard product makers have between June more closely aligns with the Globally and December of 2015 to convert their Harmonized System (GHS), an interlabels and safety data sheets to the national approach to labeling and clasnew standard. sifying hazardous products. Why the December 1st 2013 Lee Amaradio Jr. requirement for employees if Why the with change? Credit the training global marketplace. The U.S. is both the product makers have until 2015 to a major importer and exporter of implement the new standard requirechemicals. American workers often ments? OSHA believes that American see labels and material safety data workplaces will soon begin to receive sheets (MSDS) from the U.S. and labels and SDSs that are consistent from other countries. The diverse and with the GHS, since many American sometimes conflicting national and in- and foreign chemical manufacturers ternational requirements can create have already begun to produce GHSconfusion among those who seek to compliant labels and SDSs. It’s imuse hazardous material information portant to ensure that when employees effectively. begin to see the new labels and SDSs in their workplaces, they will be familiar with them, understand how to Major Changes The Hazard Communication Standard use them, and be able to access the inregulates identification and communiformation effectively. cation of hazardous products in the workplace. The major changes include: Label Requirements The supplier must provide at least the ■ Hazard classification: There are following on every hazardous material now specific criteria for classification label: of health and physical hazards, to help ensure that evaluations of hazardous ■ The product identifier (name) effects are consistent across product ■ A signal word, indicating the relamakers. tive level of severity of the hazard, eiwith manufacturers Dan Espersen ■ Labels: Chemical ther “Danger” (more severe) or and importers will be required to pro- “Warning” (less severe) vide a label that includes the product ■ Hazard statements assigned to each name, supplier identification includ- applicable hazard class or category, ing an emergency phone number, the such as “Flammable” or “Carcinogen” word “Warning” or “Danger,” pic- ■ Pictograms, eight to choose from tograms, and hazard statements for and one environmental hazard option each hazard class and category. Pre- ■ Precautionary statements stating cautionary statements must also be what should be done to protect the provided. worker from the hazard, such as “Res■ Safety Data Sheets: The word “Ma- piratory protection required” or “Keep terial” has been dropped, and there is away from open flame” with Mike Causey a specified 16-section format. The ■ Name, address, and telephone numprevious standard had a nine-section ber of the product maker or importer material safety data sheet, but product or other responsible party makers could generally deviate from that as long as the information was The eight pictograms are shown on there. Now all safety data sheets will page 24. be 16 sections. Note that the pictograms are all within a red diamond. There are two If manufacturers, importers, dis- new pictograms, one indicating tributors, or employers become newly “Health Hazard” and one indicating aware of any significant information “Explosive.” Health Hazards include

Amaradio Explains CRA

Consumer Callout

organ. Explosives have been separated from flammables. The Environment pictogram is non-mandatory, as OSHA does not oversee environmental hazards.

Workplace Labels Workplace labels are mentioned in the revised standard, but nothing has really changed. The minimum requirements for a workplace label are still the product name and indications on the specific hazards of the product, using pictograms, phrases, or words, whatever is available and applicable. If pictograms and phrases are used, they should be consistent with the revised standard. Sources for the label can be as complicated as using labeling kits from a safety catalog, or writing the information directly and legibly on the container in permanent marker.

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48 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

with Janet Chaney

Safety Data Sheet (SDS) The information required on the SDS remains essentially the same as that in the 1994 standard, except that the information must be presented using 16 specific headings in a specified sequence. Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. The following dealers proudly stock genuine parts. Call your local distributor today!

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National Fire Protection Association (NFPA) labels, with the diamond shape and the color and numbering system, can be used as workplace labels, but there’s an important difference in the numbering system used by the NFPA compared to the GHS. With the NFPA system, the higher the number the greater the hazard, so a “1” is the least severe hazard. With the GHS, it’s just the opposite, the lower the number the more severe the hazard, so a “1” is the most severe hazard. When using the NFPA label as a workplace label, use the GHS numbering system. The numbers are often included in the SDS.

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The format of the 16-section SDS should include the following sections: ■ Section 1. Identification ■ Section 2. Hazard(s) identification ■ Section 3. Composition/information on ingredients ■ Section 4. First-Aid measures ■ Section 5. Fire-fighting measures ■ Section 6. Accidental release measures ■ Section 7. Handling and storage ■ Section 8. Exposure controls/personal protection ■ Section 9. Physical and chemical properties ■ Section 10. Stability and reactivity ■ Section 11. Toxicological information ■ Section 12. Ecological information ■ Section 13. Disposal considerations ■ Section 14. Transport information ■ Section 15. Regulatory information ■ Section 16. Other information, including date of preparation or last revision. Note that although the headings for Sections 12–15 are mandatory, OSHA will not enforce the content of these four sections because these sections are within other agencies’ jurisdictions.

Health Hazard

• Carcinogen • Mutagenicity • Reproductive Toxicity • Respiratory Sensitizer • Target Organ Toxicity • Aspiration Toxicity

• Gases Under Pressure

Flame over Circle

• Oxidizers

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• Flammables • Pirophorics • Self-Heating • Emits Flammable Gas • Self Reactive • Organic Peroxides

Corrosion

Exclamation Mark

• Irritant (skin and eye) • Skin Sensitizer • Acute Toxicity (harmful) • Narcotic Effects. • Respiratory Tract Irritant • Hazardous to Ozone Layer (Non Mandatory)

Exploding Bomb

• Skin Corrosion/burns • Eye Damage • Corrosive to Metals

• Explosives • Self-Reaction • Organic Peroxides

• Aquatic Toxicity

• Acute Toxicity (fatal or toxic)

Environment (Non Mandatory)

One or more of these pictograms must be on supplier labels.

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Employer’s Responsibility Repair facility owners and managers need to become familiar with the standard revisions and train their employees on recognizing the new labels and reading the new SDS versions by December 1st. OSHA has some downloadable “quick cards” available for help with this training. Go to www.osha.gov. Besides the general information, it’s even more important that repair facilities explain how the hazardous communication procedures will change in the specific facility. If OSHA makes a visit, that is what they will be looking for; if employees know how to find and read the information on hazardous materials that they work with.

Skull and Crossbones

Conclusion OSHA recently updated its Hazard Communication Standard, which covers requirements for labels, safety data sheets, and hazard material classifications. Several product makers have already begun using the new labeling and SDS system, so OSHA is requiring employees be trained to recognize the new label and SDS format by December 1st, 2013. Even more important than general information is for shop owners and managers to inform employees about how hazard communications will change in the repair facility. For comments or suggestions on the Advantage Online, please contact I-CAR at advantage@i-car.com.

Florida Pays Rewards For Tips on Insurance Fraud Rewards totaling $35,000 were given to four Floridians who provided key information that led to arrests and convictions in several major insurance fraud cases, according to an announcement by Florida Chief Financial Officer Jeff Atwater. The tipsters helped uncover almost $3.7 million in fraudulent financial activity leading to 17 convictions. Rewards issued include: ● $20,000 to a Ft. Myers individual whose assistance led to the conviction of 12 individuals in a personal injury

protection (PIP) fraud ring and the closure of 12 unlicensed accident clinics with $3 million in potential insurance fraud losses. ● $10,000 to a St. Petersburg individual whose assistance led to the conviction of an annuity scammer who defrauded nine elderly victims out of more than $580,000. ● $5,000 divided between two Tampa individuals whose assistance led to the conviction of four PIP fraudsters and the closing of a PIP accident clinic.

www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 49

NASCAR’s Carl Edwards Drives ‘Sweepstakes’ on Henry Ford’s 150th Birthday Celebration in Honor of Ford’s One and Only Race When NASCAR superstar Carl Edwards hopped aboard Sweepstakes, the 1901 race car built by Henry Ford, he wasn’t exactly sure what to expect from the ride. But much like it did for Ford in his victory over Alexander

of Henry Ford, invited Edwards out to Greenfield Village to learn more about the history of the vehicle, meet with Sweepstakes Engineer Glenn Miller, and eventually learn to drive the 1901 machine. “This is the coolest car I have ever driven, no doubt about it. There isn’t even a close second,” said Edwards on the grounds of Greenfield Village at The Henry Ford. “It may not look like much standing here, or on video, but I am telling you that is one of the scariest things I have ever done. Coming around that turn back Ford Racing NASCAR superstar Carl Edwards was given there, there are no brakes. I don’t the honor of driving the legendary Sweepstakes race car know how those guys did that built and raced to victory by Henry Ford in his one and because we were only going only race in 1901 what, eight miles per hour? They Winton, the time spent at the wheel of drove this thing near 70 mph back in the historic vehicle changed his life 1901. That is just insane.” forever. Sweepstakes carried Henry Ford to victory in the first and only race he Edwards joined Hall of Famer ever drove — the race against AlexanDale Jarrett as the second NASCAR der Winton on October 10, 1901, in driver allowed behind the wheel of the Grosse Pointe, Michigan. Since Ford car, when he took it for a spin June 13, was the underdog, and the local fa2013. Edsel B. Ford II, great-grandson

vorite who defeated one of the best and most successful racers in the country, his victory was popular and widely publicized. In fact, Ford’s win changed everything for him, and ultimately the

“To think that this car is what started this whole thing is just amazing.” Edwards reflected. “If it weren’t for this, there might not be a Ford Motor Company, there might not be a Ford Racing, and a lot of people’s, including my own, paths would be very different.” Henry Ford’s 1901 Sweepstakes race car is part of the Racing in America collection at Henry Ford Museum and is on display daily. “Sweepstakes is one of the key, paradigm-changing cars in our collection at The Henry Ford,” said Christian Overland, Edwards drove the car around the grounds of Greenfield executive vice president of The Village at The Henry Ford, under the guidance of Sweepstakes Engineer Glenn Miller and the watchful Henry Ford. “To be able to eye of Henry Ford’s great-grandson, Edsel B. Ford II have someone like Carl come out and experience what Mr. Ford felt history of the auto industry. Several when he drove Sweepstakes back in people watching that day came forward with offers of financial support, 1901 is important in helping others understand the challenge he was facwhich set him on the road to establishing Ford Motor Company in June ing that day going against the best driver in America. The result of that 1903. Ford went on to prove his belief race changed the automotive world as in low-cost production with the Model we know it.” T, the car that put the world on wheels.

Steve Belknap, Illinois Shop Owner, Restores 1947 Ford Pickup Found Roadside Three years ago, Steve Belknap, owner of Belknap Auto Body Inc. in Lake Barrington, IL, spotted a wornout 1947 Ford pickup sitting for sale at the side of the road. He paid $4,000 for

it, and resisting the urge to restore it to a gleaming, sparkling show piece, Belknap spent about $2,000 and a few hours to make some basic safety upgrades, like brakes. With its original paint, Belknap took his relic to the 2012 Barrington Concours d’Elegance and won Most Coveted Vehicle Award. Belknap opted to keep his highway find as original as possible with its intact glass, floorboards and untouched engine. He didn’t want to do anything more necessary than fix what was falling apart. Belknap drove the 66-year-old truck home and within a week, was

driving it everywhere. If the weather is nice, he drives it. “Nothing makes me happier than driving the truck” in its well-used condition, he said. “It was built for work and I don’t think a pristine restoration on an old truck is appropriate.” Belknap’s story was featured in the local paper, the Daily Herald, and he described the modifications he made: “I rebuilt the brakes because only one wheel cylinder was working, and replaced the carburetor,” Belknap said. Other maintenance items included a rebuilt distributor and fuel pump, new fuel lines and replacement tubes in the tires. The only upgrade is a set of dual exhausts.

“The heat riser in the exhaust manifold seized and snapped off while I was working on it. Nothing would seat right with it gone,” he said.

50 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

Undeterred, Belknap located a vintage set of Fenton exhaust manifolds, allowing for the dual pipes. “It ended up being a great modification. The V-8 runs better and sounds better, too.” While very little has been added, there are some things that have been removed. “A previous owner had installed incorrect seat belts and turn signals, which I took off,” Belknap said. He also added a new covering for the bench seat. “I didn’t want to reupholster but the original material had been patched too many times, dried out and became brittle. It was beyond uncomfortable,” he said. The dented and battered body only received a few welds to keep the fenders from vibrating off. “I avoided extensive body work to preserve the original paint, which still covers the majority of the truck,” he said. Unfortunately, the previous owner couldn’t pass on many details regarding the Ford’s history, but Belknap has uncovered several clues. “I found 1953 registration in the glove box from northern Wisconsin.” In addition, Belknap found a 1947 mimeo-

graphed movie bill caught in a crevice on the underside. In its earlier days, the Ford pickup was worked hard. “It clearly grew up on a farm, acquiring reasonable dents here and there. By looking at a couple of the makeshift repairs on the truck, you can tell when a farmer needed to get it back on the road,” he said. For example, when a bolt broke on the tailgate, it was simply welded shut.

Belknap, who has owned his shop for 19 years, had the doors custom painted with lettering that resembles an old-time look, right down to the shop’s phone number, which reflects an early Barrington area code. Steve can be reached by phone at: (847) 382-9433 or email: steve@belknapautobodyinc.com

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Oregon Body Shops Grade Insurance Companies State Farm and two smaller Northwestbased auto insurers continue to be among the best at taking care of their customers after an accident. And some of the other larger, best-known insurers—including GEICO, Safeco and Farmers Insurance—are among the worst. That was the finding of the latest survey of businesses that interact with auto insurers on behalf of vehicle-owners every day: Oregon collision repair shops. “Just as medical providers see how health insurers take care of patients, collision repair shops interact with auto insurers on a daily basis, so we feel it’s worthwhile to ask how those insurers treat Oregon drivers after an accident,” said Barbara Crest, executive director for the Northwest Automotive Trades Association (NATA), which conducted the survey of Oregon shops. “We believe their views will be helpful to insurance companies and consumers.” More than 500 collision repair shops throughout the state received the survey, which asked them to grade the Top 20 auto insurers in the state in terms of how well each company’s

“policies, attitude and payment practices ensure quality repairs and customer service for Oregon motorists.” This is the seventh time the association has conducted such a survey since 2004. Crest pointed to a number of items of interest in the findings of the latest survey: ● Repairers have consistently given the same three companies a grade of B or better all seven times the survey has been conducted. State Farm has continued to hold on to the top spot, receiving an overall grade of B+ again this year. But a Northwest insurance company, Oregon Mutual, nudged up from a B last year to also receive a B+ in the latest survey. Mutual of Enumclaw once again ranked third with a B. State Farm is the largest auto insurer in Oregon: Mutual of Enumclaw and Oregon Mutual are ranked 12th and 13th, respectively. ● In addition to Oregon Mutual, six other insurers saw their grades improve from the 2012 survey. Travelers became the fourth-highest graded insurer by earning a B- (up from a C+ last year). Progressive, Ameriprise and Country Companies each moved up

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half a grade to C+. ● Although the same four insurers were on the bottom of the rankings for the third straight year, the order amongst them changed because Allstate improved to a C (from a C-) and Geico brought its D+ in 2012 up to a C- this year. ● Progressive’s improvement is notable given that it had a D+ or worse (and the lowest or second-lowest ranking) in every survey between 2004 and 2009. Even last year it was ranked 16th on the list with a C, but this year moved to 8th with a C+. ● Although Allstate still only receives an average grade, that’s an improvement over the D or D+ it received in each survey between 2008 and 2011. ● Three insurers saw their grades drop. USAA, which ranked fourth last year, dropped behind Travelers and Kemper/Unitrin when it received a C+ rather than the B- it did last year. American Family and Liberty Mutual also dropped half a grade. ● Farmers and Safeco received a “F” from about one-in-four shops, the most failing grades received by any insurer. (By comparison, GEICO, the

third-lowest graded insurer, received about half as many Fs as Farmers.) State Farm received an “A” from well over half of shops. ● In most cases, the grades given a particular insurer from shops involved in that insurer’s direct repair program (DRP) were higher than those given by shops that are not part of that insurer’s program. This was particularly true with USAA and The Hartford; their DRP shops gave them grades of A- or better while non-DRP shops gave these same insurers grades of C or C+. But even American Family and Farmers Insurance direct repair shops gave those insurers only average grades of C. “Collision repairers say the insurers receiving the highest grades—which includes both larger and smaller insurance companies—do the best job of taking care of Oregon drivers after an accident,” Crest said. “We hope consumers will take these ratings into account when choosing an auto insurer, and that insurers that received lower grades will work to improve their performance.” More than 70 shops throughout Oregon responded to the survey.

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Make us your one-stop shop today! www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 51

Wisconsin Moves to Reform its Lemon Law Known for Excessive Awards Wisconsin is notorious among automobile, motorcycle, truck, and recreational vehicle manufacturers as having the worst lemon law in the country. The law places unreasonable and unworkable requirements on OEMs that allows lawyers like selfproclaimed “Lemon Law King,” Vince Megna, to win exorbitant awards that have no apparent relationship to the underlying goals of the law. For example, in Marquez v. MercedesBenz, a vehicle that cost $56,000 resulted in a $618,000 award, with over $300,000 in attorney fees. (See article p. 4 this issue.) Wisconsin is the only state in the nation to provide for mandatory double damages under its unique lemon law. Under Wisconsin law, if the manufacturer fails to provide a comparable vehicle or refund for a “lemon” within 30 days of the vehicle owner’s request, the the courts are required to award him or her double any pecuniary loss, together with costs, disbursements and reasonable attorney fees. The courts have interpreted “pecuniary” loss to include the vehicle’s purchase price.

Assembly Bill 200, currently in front of the legislature, would repeal the nondiscretionary double-damage requirement, but the fundamental obligation that a manufacturer provide a comparable vehicle or refund remains unchanged. The law will still allow a consumer to bring an action to recover any pecuniary loss (including the cost of the vehicle), along with costs, disbursements and reasonable attorney fees, and any equitable relief the court determines appropriate, if the manufacturer fails to provide the vehicle or refund within the specified deadline. Thus, manufacturers still have every incentive to provide a timely refund or vehicle, but lawyers will have less incentive to delay resolution of the dispute. The bill makes other changes that bring WI law more in line with other states: Clarifying Out of Service. Under existing law, a vehicle is considered a lemon if within one year of delivery the vehicle is subject to repair at least four times for the same problem or if the vehicle is out of service for 30 days or more due to nonconformities with the

Body Shop Foreman in Las Vegas Charged with Shooting

A fight between co-workers at an auto body shop in Las Vegas resulted in both with gunshot wounds and one of them charged with attempted murder after an altercation on June 24. Las Vegas Metro police released an arrest report describing an incident that resulted in charges against 47-year-old Kevin Montalvo. Both the shop foreman and the employee sustained gunshot wounds as a result from their altercation. When police arrived at the S&M Body Shop in the 5100 block of Dean Martin Drive in Las Vegas, NV, they found shop foreman Kevin Montalvo holding an ammunition magazine for a semi-automatic pistol, but not the gun, according to his arrest report. Montalvo told police that he was attacked by two of his employees and shot one of the men in self defense. Shop employee Bryan Jackson had been shot four times. Both men fled the scene. While talking to officers, Montalvo complained of chest pain. When medical personnel discovered he had been shot in the chest, he was transported to University Medical Center trauma unit for emergency surgery. The third man involved, who had not been shot, drove Jackson to UMC, according to the arrest report. Police found the gun in Jackson’s car. Video footage at the

body shop showed Montalvo approached Jackson and Jackson reacted by beating him, according to police. The footage also showed Montalvo with a pistol and he appeared to be firing at Jackson before the two struggled for the gun. Both men were in stable condition after surgery. According to the witness in the report, Montalvo went to the business and confronted victim Bryan Jackson, who was on the job at the time. The witness said that Montalvo was at odds with Jackson about his work performance. Montalvo was arrested in absentia because of his injuries. He faces charges of attempted murder with a deadly weapon, battery with substantial bodily harm, and discharging firearm into occupied structure. Police said that surveillance video indicated the physical confrontation was intiated by Jackson. That was when, according to the witness, gunshots were fired. The witness told police he saw Montalvo with a gun aimed at Jackson, who was charging at the suspect. A struggle ensued, the witness described between Montalvo and Jackson. The witness told police he was able to seize the gun out of Montalvo’s hands, allowing both he and Jackson to flee to the hospital in the victim’s car, the report said.

52 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

warranty. The bill clarifies that “out of service” means that the vehicle is unable to be used for its intended purpose. Providing Comparable New Vehicle. The bill provides a more reasonable time period to provide a comparable vehicle – 120 days for commercial vehicles and 45 days for others. In addition, the bill requires the manufacturer exercise due diligence in locating and providing a comparable new vehicle within the applicable time period. However, if no comparable new vehicle exists, or is otherwise unavailable for delivery within the applicable period, the manufacturer must provide a refund within that timeframe. Changing Election. If the consumer makes a change in his or her choice of refund or new comparable vehicle, the applicable time period to deliver the refund or vehicle is reset. Providing Needed Information. The bill requires a consumer requesting a refund to provide the manufacturer needed information on a form approved by the Wisconsin Department of Motor Vehicles. The manufacturer must provide the refund 10

days after receiving the information or 30 days from the refund request, whichever is later. Allowing Negotiated Settlements. As an alternative to a refund or comparable new vehicle, the bill allows for negotiated settlements. Establishing a Statute of Limitation. A vehicle can only be a lemon under the law as a result of problems arising while under the term of the warranty or within a year after first delivery, whichever is sooner. Thus, waiting six years to file a claim, as is currently allowed, is an unnecessary delay. The bill’s 24-month statute of limitations is consistent with other states where the limitation periods range from 12 to 24 months. Read the full text of the bill at https://docs.legis.wisconsin.gov/2013/ related/proposals/ab200. See story on MB-USA p. 55.

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Executive Director Jillian Zywien Contributes Expertise in Public Relations to AASP/MA with Chasidy Rae Sisk

implement electronic and social media Recently, the Massachusetts chapters of the Alliance of Automotive Service contacts. The members will find this Providers (AASP/MA) named Jillian with Chasidy Rae provides Sisk a growing stream of industry Zywien to the position of Executive related information at their fingertips.” In recent months, a large part of Director. Zywien is honored to be chosen to represent the association’s best AASP/MA’s attention has been focused on education. Having instituted interests, and she looks forward to implementing new programs to benefit a variety of training options during her career, both industry-specific and gentheir members. Despite the time demands of her new duties, she was eral business topics, Zywien notes that eager to take time to share her plans “Education is a primary focus of the for the association. services professional associations proAs a senior account executive for vide… For example, we recently began providing Lynch Associates, Zywien’s experieducational opporence is primarily based in the Public tunities through Relations and Communications fields, webinars for ease and she believes that her work in assoof delivery to ciation management consulting across members. These a broad spectrum of industry organizaprograms provide tions will benefit AASP/MA as she members with the steps into her new role. Jillian Zywien opportunity to ac“During my tenure, I have applied my skills to broaden communications cess educational content at any time to members; to enhance marketing of that is convenient to them. We would love to hear what members think and events and benefits to members, and to

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how we can better cater to their needs.” AASP/MA has also spent a considerable amount of time in filing complaints about insurance companies with the Auto Damage Appraiser Licensing Board (ABALB). Zywien believes these efforts are yielding fruit, and it’s important to attend these hearings on members’ behalf because “In order to continue to influence the regulatory process, we must build a robust and ongoing relationship with the Board of governance over this industry. Relationship building and strategic interaction are two of the goals we have for AASP members with the ADALB Board. Demonstrating that an issue is a frequent reoccurrence allows us to approach remedies from the broader viewpoint, as such, we will continue prior practices relative to the ADALB board.” One of AASP/MA’s largest projects in 2013 has been the re-filing of the Labor Rate Bill. Zywien is taking an active role in this process; “Having just come into the position in the last few days, our first goal will be to meet with our legislative committee and formulate a long-term strategic plan that addresses all of the public policy objectives the association is confronting. Issues include the labor rate, insurance company practices with consumers, and matters brought before the ADALB. For the mechanical side of the industry, we will remain vigilant on the implementation of the recently enacted Right to Repair initiative. It is our goal to take an expansive view of both statutory and regulatory initiatives affecting the automotive service industry, and develop remedies that may occur in a variety of governmental bodies.” Additionally, Zywien feels it is imperative to educate consumers on their rights under the policy and with regard to repairs in particular. “One of our many goals is to ensure that the AASP/MA is a resource, not only for the industry, but also for our consumers. It would be our hope that providing this education would begin to overcome the misimpressions often left by insurance companies and empower consumers when it comes to their own vehicles.”

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Though it’s no surprise that many AASP/MA members are discouraged by the past failures in passing the Labor Rate Bill, Zywien remains optimistic. “A new broom sweeps clean. Each industry advocate comes to the table with different perspectives on how issues can be addressed. Our relationship with the association provides for an opportunity to rebrand and expand the arguments used on policy debates. We would ask that the members remain open to new strategies and informational delivery systems. Clearly the reason people join associations is to enhance their own business environment. We are keenly aware of that and will work to build the members’ confidence for new strategies. We will provide members with informational content they can use to advocate on their own behalf with elected officials and regulators. I would ask the members to give us a chance to change the dynamics and reinvigorate advocacy efforts regarding their issues.” As Zywien strives to implement improvements throughout the association and the industry as a whole, she believes that now is the perfect time to join AASP/MA. By contributing many new, innovative ideas, she hopes to continue strengthening the foundation created by the current leadership of the association. Additionally, her involvement with Lynch Associates provide beneficial resources as the firm consists of many long-term professionals in the association consulting market, and they’ve already outlined several new programs to the Board, making it easier for members to access benefits, participate in programs, and receive timely communications. Zywien’s enthusiasm and energy makes her an idea choice for Executive Director of AASP/MA, and she’s diving right in to her new responsibilities. “This provides an exciting opportunity to grow AASP/MA and we are ready to roll up our sleeves and share the enthusiasm we have for the organization. Look for new branding, look for new benefits, look for new educational opportunities, and please provide feedback. We serve the members, and we want to do it with excellence.”

www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 53

Rodney Pierini is President & CEO of CAWA, Operating in California, Nevada, Arizona Rodney Pierini has been the President and CEO of the California Automotive Wholesalers Association (CAWA) for the past 17 years. The CAWA a non-profit trade association representing automotive aftermarket parts manufacturers, jobbers, warehouse distributors and retailers in California, Nevada, and Arizona. The organization was formed in 1955 and serves as the voice of the afRodney Pierini has termarket parts inbeen at the helm of CAWA for the past 17 dustry in the West. years, an organization We sat down with that represents autoPierini recently to motive aftermarket discuss his organiparts manufacturers, jobbers, warehouse zation and how its distributors and role affects and retailers in California, impacts the afterNevada, and Arizona market/warehouse parts business within the collision industry in the three states he represents and also on a national level. ABN: While representing your membership, how do your goals feed into the collision industry and how do you support your membership in these areas? RP: The collision industry is a segment of the automotive aftermarket and as such we are in the business to promote and protect the industry, particularly, in the government affairs arena. Through legislative and regulatory alerts we keep our membership apprised of what is happening in government that will impact their business. Many of our members supply the collision industry with parts and products required to service customers in a qualitative and timely fashion, as well. ABN: Why do you think business professional groups like the CAWA help the industries they serve and maybe cite some specific examples? RP: As an automotive aftermarket trade association, CAWA was founded by members of the aftermarket industry to collectively speak as one voice, to promote training for themselves and their employees and to come together to improve their purchasing power in business service programs and products, e.g., business insurances. ABN: You’ve been the President/CEO of the CAWA for many

years and have seen the automotive parts industry change. What are the most significant changes your members have encountered? RP: Consolidation and a more intense and sophisticated competitive business environment. ABN: There’s an on-going push and shove when it comes to the aftermarket/recycled/re-manufactured parts industry vs. the manufacturer’s OE parts industry. Talk about how the aftermarket parts sector has become more efficient and responsive to changes within the market and how the quality is equal with OE parts, in many instances. RP: In many cases, the major OE supplier is also manufacturing replacement parts in the aftermarket. These parts are as good as, if not better than the part that rolls off the assembly line (because of the improvement in manufacturing post assembly). Also, the remanufacturing segment is at the forefront of reduced emissions and a greener industry footprint in the automotive sector of today’s economy. In the government affairs process we continuously stress the quality of aftermarket replacement parts and their contribution to the overall economy and public good, i.e., the aftermarket gives the consumer the choice of where to purchase their parts and where to have their vehicles serviced. ABN: If you wanted to give any feedback or advice to body shops or the manufacturers of aftermarket collision parts, what would you tell them? RP: Look to the CAWA membership who offers quality collision parts and products. Also, see the hard parts manufacturers, manufacturer representatives, distributors and retailers as an ally in promoting and protecting the collision segment of the industry. This notion strengthens all segments of the industry. ABN: What changes do you think will occur in the auto repair industry overall within the next 10-20 years that will impact the aftermarket parts industry? RP: Parts generally are manufactured and re-manufactured to high quality standards today and will continue to improve as the industry adapts and changes to new technologies and the vehicles of the future. As technology becomes more sophisticated,

54 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com

we’ll see more repair specialization that will require the parts industry to remain nimble and responsive to this emerging trend. New vehicle technology will also add to the ever-changing future and the parts industry will adapt and , as always, find ways to respond to the yet unforeseen future of the automobile. ABN: New legislative bills emerge all the time, and if passed, they can greatly affect your membership. Tell us how you play a role in staying on top of these proposed bills/laws and how you stay vigilant on these developments as they arise? RP: Perhaps the greatest service we provide to the aftermarket industry is our legislative work. If CAWA were not in California, Nevada and Arizona, the industry would feel the void in uncontested intrusion through legislation and the regulatory powers of all levels of government. If the aftermarket voice is not heard in these state capitols, business owners would find themselves helpless to the governments’ presence in the conduct of daily business. CAWA monitors legislation, regulation and other government programs to assure our members and the industry are not ill served by these processes and the insatiable financial appetite of political operatives. And we promote legislation that supports our members and makes doing business more palatable in the face of government politicians and bureaucrats throughout the western states. ABN: How have aftermarket/ warehouse parts businesses figured out how to survive the collapse of 2008 and has it become a more competitive market as a result? RP: There is no doubt that the market is more highly competitive today and has been so for several years. That’s one reason we still see parts warehouses and jobber stores going out of business. Those that are purchasing right, managing right, constantly monitoring revenues and expenditures and going to market in an efficient manner will continue to be successful. Those not up to the challenges of todays and tomorrow’s competitive environment will not be around in 5-10 years. Those that have survived have also created alliances with other aftermarket business to strengthen their buying power and position in the market place. There are many very competent and entrepre-

neurial owners and managers in this industry that adapt well and quickly to survive and stay competitive. ABN: You’ve been working closely with other organizations and sponsored a joint series of meetings between the CAWA and ASCCA earlier this year. What is the purpose for this partnership and how has this alliance worked? RP: As you know, ASCCA represents the mechanical repair garage owners in California. We have enjoyed a very rich and long termed relationship with them. We meet regularly with our lobbyists to assure we are speaking with one voice at the Capitol and, if not, we understand why and respect each other’s positions on issues. Parenthetically, being on opposite sides of an issue is very rare and virtually non-existent. About four years ago, the boards of directors of both associations wanted to strengthen the relationship among the volunteer leaders of both groups. So, an Industry Summit was developed whereby the leaders and members of both associations would come together See Pierini, bottom of next page

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MB-USA Pays Out Another $260K in Long-Running WI Lemon Law Case as Legislature Hears Revised Law

Mercedes-Benz USA LLC has paid out another $260,000 in a long-running lemon law case. Attorney Vince Megna (known locally and self-identified as the ‘Lemon Law King’) sued the company in 2005 on behalf of a Waukesha businessman who purchased what was deemed a defective E-series sedan. The state Supreme Court last year upheld a $482,000 judgment against the company. Megna argued the company owed interest that had accrued during the case’s court journey and MercedesBenz paid $618,000. A Waukesha County judge has now ordered the company to pay attorney fees and costs totaling $259,536. The company cut a check dated the same day. According to court documents, Marquez purchased a $56,000 E320 from a Milwaukee dealership in April 2005. Almost immediately, the car wouldn’t start and a number of repair attempts failed. In October 2005, Marquez had Megna send Mercedes-Benz a lemon law notice, demanding a refund. Under the law, the company had 30 days to comply. Marquez and the company spent most of those 30 days discussing a replacement vehicle in lieu of a refund. Ultimately, Marquez said he wanted a refund five days before the compliance window closed.

Wisconsin law provides that “if a new motor vehicle does not conform to an applicable express warranty,” and the nonconformity is not cured after a “reasonable attempt to repair,” then the consumer may return the vehicle and elect to receive either: 1) a new comparable vehicle, or 2) a refund. If the auto manufacturer fails to provide a refund or replace the vehicle within 30 days, the law provides harsh penalties. The plaintiff is also entitled to pre- and post-judgment interest, which can be large in cases like this that take years to wind through the court system. After Mercedes-Benz was alerted that the car was a lemon, it began working with the owner and his attorney to provide the owner the proper remedy. Originally Marquez sought a new vehicle, but instead of seeking a similar Eseries he requested an S-series, which had not yet been released to dealers. The car company argued it wasn’t liable because Marquez didn’t give one of its employees the information they needed to grant a refund. The case started in Waukesha County Circuit Court, where a judge ruled in favor of the owner. The case was appealed to the court of appeals, which reversed the lower court. The court of appeals held that a consumer

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who intentionally thwarts a manufacturer’s efforts to provide a refund within the 30-day statutory period cannot recover the Lemon Law’s stiff remedies. The court remanded the case back to the circuit court for the jury to determine whether the owner intentionally thwarted Mercedes-Benz’s attempt to provide a statutory refund within the 30-day period by failing to provide the requisite bank information. On remand, the jury found in favor of Mercedes-Benz. The jury determined that the owner and his attorney, Megna, acted in bad faith by failing to call the bank so that Mercedes-Benz could access the bank account information. The circuit court judge, however, overturned the jury’s verdict by issuing a directed verdict in favor of the owner. The judge determined there was no credible evidence that the owner (or his attorney) intentionally thwarted Mercedes-Benz’s efforts to provide a refund. The case went straight to the Supreme Court, which affirmed the judge’s directed verdict in favor of the owner. Chief Justice Shirley Abrahamson, writing for the majority, found the lemon law is designed to force large, well-funded auto makers to compen-

Pierini

Continued from previous page

for a dialogue of contemporary issues affecting the industry and to better understand each segment of the industry. Since then it has developed into one of the premiere industry events in California. So much so, that more groups and associations want to co-sponsor the 2014 Industry Summit. The national Automotive Aftermarket Industry Association (AAIA), the California Automotive Business Coalition (CalABC), the California Automotive Teachers (CAT) will join with CAWA and ASCCA to sponsor next year’s Industry Summit. ABN: In the collision industry, there has been a trend where MSOs (Multiple Shop Operators) are flourishing, while many small independent body shops are struggling to survive. It’s all about centralization and the convenience of dealing with one large entity rather than 10–15 smaller ones. Is this also happening in your industry? RP: Yes, unfortunately the smaller distributors are, for the most part, struggling to survive. Unless they are specialized, in a niche market

sate customers for their losses. Expanding the manufacturers’ defenses would undermine the law’s purpose, Abrahamson wrote. No evidence suggested Marquez intentionally tried to block the refund, Abrahamson said. She found the initial refund demand provided MercedesBenz authorization to contact Marquez’s bank and his loan officer, noting Marquez called the loan officer the day he reaffirmed he wanted a refund and authorized him to release the account information to the car maker. Therefore, Mercedes-Benz had all the information it needed to deliver the refund before the deadline, Abrahamson said. In addition, the company’s employee never tried to contact the loan officer, never clearly asked Marquez to contact the bank and didn’t leave a number or express any urgency when he contacted Megna’s office later that afternoon, she found. Justice Patience Roggensack wrote in dissent that she didn’t believe Marquez acted in good faith and the decision deprives auto manufacturers of a valid defense. Republican legislators have recently introduced a Wisconsin bill that would cap damages at actual losses. See story on page 52.

or geographically situated with less competition, they are challenged to continue. It’s not unlike other industry evolutions, however. When I think of all the past and future family business that did not or will not survive it makes me sad. My father had his own family business and I remember the nights when mom and dad struggled to “make ends meet”. Somehow, though, his business survived and he retired at 70 with no regrets. Like my father’s business was to the aircraft industry, aftermarket family businesses are important to this industry and there will be those that do survive and continue the tradition embodied within this great industry!

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www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 55

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