Autobody News January 2014 Southeastern Edition

So. Virginia, Central & Western North Carolina OE PARTS LEADERS

DELIVERING • All brands brandds delivered in one convenient daily delivery • Fast and Free delivery Monday thru Friday COMPETITIVE PRICING • Same Day delivery of in-stock parts ordered by 9am • Hot Shot deliveries • Collision Link ANND EXCEPTIONAL SERVICE! Flow Lexus

of Greensboro

Ph: 888-Flow-Lex Direct: 336.217.5402 Fax: 336.232.0810

Green Ford

Ph: 800.334.8405 Direct: 336.294.4133 Fax: 336.294.5774

Flow General Motors

Ph: 800-GM-Built Direct: 336.760.7038 Fax: 336.245.1423

Flow Lotus

Direct: 336.760.7038 Ph: 800-GM-Built Fax: 336.245 .1423

Flow SAAB

Direct: 336.760.7038 Ph: 800-GM-Built Fax: 336.245.1423

2 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Carolina Hyundai

2431 N. Main St., High Point, NC 27262 Ph: 336.884.8800 Fax: 336.884.7075

Carolina Kia

Ph: 336.884.8800 Fax: 336.884.7075

Kernersville Chrsyler Dodge Jeep Ram

Ph: 888.314.7278 Direct: 336.564.0259 Fax: 336.996.0742

Contents After Select Service . . . . . . . . . . . . . . . . 4

Autotown Insurance Acquires Fling

Insurance in GA . . . . . . . . . . . . . . . . . . 17

Cargo Transporters Expands to Add

50 Jobs, $28M Boost . . . . . . . . . . . . . . 4

Florida to Allow Digital Proof of

Car Insurance . . . . . . . . . . . . . . . . . . . 31

CIC Panel Sees Benefits of Electronic Parts Ordering, but Not Mandates

for One System . . . . . . . . . . . . . . . . . . . 1

Dallas-based Service King Collision Repair Centers has bought Accurate Autobody

of Nashville . . . . . . . . . . . . . . . . . . . . . 14

DOJ Says Grand Jury Indicts Two

Automotive Parts Suppliers for Price

Fixing of Anti-Vibration Parts . . . . . . . . 37

NC’s Sandhills Community College Students

For Body/Paint Tech Keenan Hons Life

New Louisiana Collision Repair Association

Glass Harvesting Ring Files

San Antonio Repairer Tells TV News He’s

I-CAR Announces Partnership with IBM

Help in Restoring ‘Annabelle’ . . . . . . . . . 6

Has Quickly Become a Reality . . . . . . . 23 Blowing the Whistle on Insurance

is Reality TV on Fast ‘N Loud . . . . . . . . 28 1000 False Claims . . . . . . . . . . . . . . . . 35

Kenexa to Develop New CMS . . . . . . . . 32

Companies Pressuring Shops . . . . . . . 27

I-CAR Launches Introduction to

and State Farm in Florida . . . . . . . . . . . . 4

Is this Body Shop Truly and “Ultimately

in Suit Against Progressive Insurance. . . 1

January Retrospective: ASA Position,

in Hillsborough County. . . . . . . . . . . . . 14

LendDeck.com Says SBA Loans for

Second Injunction Filed Against PartsTrader Tennesee Body Shop Gets Favorable Ruling USAA to Hire Up to 1,215 New Employees COLUMNISTS

Attanasio - Are the Yellow Pages

Truly Dead? . . . . . . . . . . . . . . . . . . . . . 24

Carbon Fiber Online Course . . . . . . . . . 33 Green?”. . . . . . . . . . . . . . . . . . . . . . . . . 8

CAPA, CIC . . . . . . . . . . . . . . . . . . . . . . 11 Body Shops at All-time Low. . . . . . . . . 36

LIABRA’s Membership Approaches 500 Shops, Repairing 250,000 Vehicles

Annually . . . . . . . . . . . . . . . . . . . . . . . 30

Attanasio - The SEMA Garage-Industry

LKQ Corp Buys Keystone Automotive

Franklin - You Got the Sale—Don’t

Massachusetts Gov. Signs Right to

Insider - Saying That Insurers Force Shops

Mitchell International Becomes Associate

Innovations Center is State-of-the-Art . 18

Mess it Up! . . . . . . . . . . . . . . . . . . . . . 22

To Repair Cars Improperly is Nothing

More Than ‘Crying Wolf’ . . . . . . . . . . . 26

NATIONAL

A Look Back at the Key Industry Events

Ops for $450M . . . . . . . . . . . . . . . . . . 34 Repair into Law . . . . . . . . . . . . . . . . . . . 3

Member of ARA . . . . . . . . . . . . . . . . . . 33

Montana Body Shop Fined by OSHA

Following Fatal Fire-Explosion. . . . . . . . 37

NABC Announces 2014 Board of Directors. 35

NHTSA Announces Tesla Battery Fire Probe. 36

and News of 2013 . . . . . . . . . . . . . . . . . 1

NHTSA Says Safety Ratings Cannot

Ford Design Patents . . . . . . . . . . . . . . . 34

Professional Parts Group Earns NSF

ABPA Files Suit Seeking to Overturn

Advance Auto Parts Gets New President,

Michael Creedon . . . . . . . . . . . . . . . . . 22

Artists for Education Has Donated $24K to

Education Repair Foundation . . . . . . . . 35

Asbury Automotive Group Donates

$120K in Parts . . . . . . . . . . . . . . . . . . 27

Exceed 5 Stars. . . . . . . . . . . . . . . . . . . 33

International Auto Collision Parts

Distributor Certification . . . . . . . . . . . . 34

Progressive Insurance Chairman, Peter

Lewis, Dies at Age 80 . . . . . . . . . . . . . 36

Safelite Group Acquires ‘Substantially All’

of Guardian Auto Glass LLC . . . . . . . . . 37

used to repair late model computercontrolled vehicles. The first law was the result of an agreement reached between the Massachusetts Right to Repair Coalition and the vehicle manufacturers that was passed unanimously by the state legislature in late July. The bill was approved by the legislature too late to remove a ballot measure that had been sponsored by the coalition. That ballot measure was approved in November 2012 by an overwhelming 85 to 15 percent margin, thus ensuring that there were two Right to Repair laws on the books in Massachusetts.

The recently-signed bill is similar to the bill which passed the legislature in 2012, but includes provisions that require that information and tools be available for heavy duty vehicles, those over 14,000 pounds. The ballot measure included these vehicles, but they had been deleted from the bill that passed the legislature. Through efforts of a coalition of aftermarket heavy duty service providers, the state senate adopted an amendment that restored heavy duty vehicles back into the bill.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: Tom Franklin, Stefan Gesterkamp, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Serving Florida, Georgia, Alabama, Mississippi and adjacent metro areas, Autobody News is a monthly publication for the auto body industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.

Autobody News

Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

AutoNation Chevrolet Coral Gables . 39

I-CAR . . . . . . . . . . . . . . . . . . . . . . . . 38

Cavalier Ford-Lincoln Greenbrier . . 15

Kernersville Chrysler-Dodge-

BMW Wholesale Parts Dealers . . . . 31 Certified Automotive Parts

Association (CAPA). . . . . . . . . . . 13

Creative Metal Manufacturing. . . . . . 8

Mercedes-Benz Wholesale Parts

Don Reid Ford. . . . . . . . . . . . . . . . . 17

MINI Wholesale Parts Dealers . . . . 31

FL, GA, AL, MS . . . . . . . . . . . . . . 27

Nalley BMW. . . . . . . . . . . . . . . . . . . 22

Crown Automotive Group . . . . . . . . 40

Axalta Coating Systems Presents ASE Refinish

Walcom Puts Body Shop Owner in a

Franklin Chrysler-Jeep-Dodge-Ram . 4

Willets Point, NY, Shop Owners Face First

Gray-Daniels Auto Family . . . . . . . . . 5

Technician of the Year Award to Leonard

King of Gaithersburg, MD. . . . . . . . . . . 36

Canadian Equity Pension Fund

Buys Caliber Collision . . . . . . . . . . . . . 33

CARSTAR Relocates Corporate Headquarters

to Leawood, KS . . . . . . . . . . . . . . . . . . 22

Good Mood . . . . . . . . . . . . . . . . . . . . . . 7

Relocation Deadline . . . . . . . . . . . . . . . 15

Woman Fights Ticket for Driving with

Google Glass . . . . . . . . . . . . . . . . . . . . 32

Jeep-Ram . . . . . . . . . . . . . . . . . . . 2

Kia Motors Wholesale Parts Dealers. 29

Landers Chrysler-Jeep-Dodge . . . . 10

Seidner’s Wins Completely Elite Award

for CSI Scores . . . . . . . . . . . . . . . . . . . 33

Intertape Polymer Group . . . . . . . . 14

Classifieds. . . . . . . . . . . . . . . . . . . . 38

Crashmax Equipment . . . . . . . . . . . 11

ASE Awards Top Scorers on

Certification Tests . . . . . . . . . . . . . . . . 32

Southeast

Alabama Shops Speak Out on Life

Massachusetts Gov. Deval Patrick signed the Massachusetts Right to Repair legislation into law, ensuring that the commonwealth’s citizens will have access to a competitive vehicle repair market, according to the Automotive Aftermarket Industry Association (AAIA).

“The signing by the governor represents a major victory for Massachusetts car owners, who took the major step last year in voting for the nation’s first Right to Repair law,” said Kathleen Schmatz, AAIA president and CEO. “AAIA and our partner, the Coalition for Auto Repair Equality (CARE), will now devote our full attention to completing work on a memorandum of understanding with the vehicle manufacturers that is intended to ensure that motorists across the nation can enjoy the same market benefits that Massachusetts car owners now enjoy.”

The newly-signed legislation was needed in order to reconcile two laws that were on the books in Massachusetts that mandate that car companies provide affordable access to all tools, software and information

Indexof Advertisers

REGIONAL

Massachusetts Gov. Signs Right to Repair into Law

Ford Wholesale Parts Dealers

GM Wholesale Parts Dealers . . . . . 37 Gus Machado Ford . . . . . . . . . . . . . 16

Hendrick BMW/MINI . . . . . . . . . . . . . 6 Honda-Acura Wholesale Parts

Dealers. . . . . . . . . . . . . . . 19, 20-21

Hyundai Wholesale Parts Dealers . 26

Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9

Dealers . . . . . . . . . . . . . . . . . . . . 32

MOPAR Wholesale Parts Dealers . . 25 Nissan Wholesale Parts Dealers. . . 35

Porsche Wholesale Parts Dealers . 34

Safety Regulation Strategies . . . . . 12 Subaru of Gwinnett . . . . . . . . . . . . . 23

Subaru Wholesale Parts Dealers . . 33

Tameron Hyundai . . . . . . . . . . . . . . 30 Walcom USA . . . . . . . . . . . . . . . . . . . 7

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 3

Second Injunction Filed Against PartsTrader and State Farm in Florida Florida collision repairers, suppliers and vendors came together in Lakeland, FL, on November 20 to discuss State Farm’s controversial PartsTrader program and identify solutions to combat “short-pays” in the industry.

Ray Gunder, owner of Gunder’s Auto Center, filed an injunction against PartsTrader at the Polk County Courthouse on Nov. 20 on behalf of other Florida collision repairers with assistance from attorneys John Eaves, Jr. and Brent Geohagan. Florida follows Mississippi as the second state to file such an injunction.

“This is just another attempt by State Farm to intrude into our business and further cut into our profits,” said Gunder. “What I have been fighting the whole time is that, by taking profits away, it’s forcing good men to do bad things which ultimately affects the consumer with poor, unsafe and shoddy repairs, putting their families in harm’s way.”

Eaves said he is selectively targeting states where the injunction is most needed and where he feels repairers will get a fair hearing. Florida is one of those states.

“Plus, Florida is a key state in national politics,” Eaves said. “Everybody across the nation watches what happens in Florida. Even in the court

system, this is a campaign to take back this industry from insurance companies and campaign for safety.

Also, Florida has some very influential legal precedents and very influential politicians, and we think it is a very symbolic place for this to be filed.”

Although the Florida injunction is similar to Mississippi’s, the laws are slightly different and thus the suit has taken a different approach, according to Eaves.

“Brent (Geohagan) has adapted it and focused it a lot on precedent or public policy behind the 1963 Consent Decree,” said Eaves.

Eaves estimated there were 75 different shops and vendors who gathered at his law office the day they filed to show support for the effort. He estimates that roughly 40 shops will ultimately back the injunction.

While a court date for a hearing is hoped for soon, Eaves said he expects State Farm to use stall tactics like in Mississippi.

“This is the second state to file an injunction, and there will be more,” said Eaves. “We will continue to take this fight across the country. State Farm has committed to rolling [PartsTrader] out to 50 states, so the injunction is to prevent damage before it

occurs. Our belief is that this is like a virus—once it takes hold in a state, it causes irreparable damage because it destroys those relationships between shops and vendors.”

As to rumors of an organized protest in Washington, DC., early next year, Eaves would only say that a comprehensive, national, multi-dimensional campaign is underway.

“We want this industry to return its loyalty to the customer and protect public safety, and that will include many facets.”

Commenting on the action was, Barrett R. Smith of AAM, an industry advocate, “I was at the meeting yesterday and there was great interest by all in attendance, repairers and vendors alike and they were lined up to sign up after the meeting.

“Interesting times to say the least for the collision repair industry and a collective defeat of PartsTrader will be huge for the fragmented industry and will illustrate that together, repairers can indeed make a difference!

“This is the perfect storm...with insurer’s strangle hold on the repairers and profits dwindling while costs increase... the time is perfect for the collision repair industry to band together to take back their industry. One must ask themselves: If not now...When?

Cargo Transporters Expands to Add 50 Jobs, $28M Boost

Cargo Transporters Inc. in Claremont, NC is expanding into the Charlotte market and is expected to create 50 jobs and invest $28 million. The trucking terminal in Charlotte will open in early January, according to a release from the company.

“We are growing our presence in other markets where we have a growing customer base,” said John Pope, chairman of the company. “In the past, all operations were centrally controlled in Claremont, but this will allow us to manage assets and professional drivers outside Catawba County.”

The company plans to hire at least 50 professional drivers in the next 10 months. It plans to put 20 trucks there immediately, as well as some staff. The $23 million investment the company plans includes about 165 new trucks and 200 trailers in the next 10 months, Pope said.

Most of the replacements will be for older equipment but a portion will be for growth, he said.

The investment will make the company’s trucks some of the most environmentally friendly and technically advanced fleets in the southeast, the press release said.

Alabama Shops Speak Out on Life After Select Service Back in May 2012, 18 shops in the Birmingham, AL, area stunned the collision repair industry by voluntarily terminating their Select Service agreements with State Farm after the insurer required the PartsTrader electronic parts procurement program in their market. Now, more than a year later, some of the shops indicates that most are faring better than other collision repairers may have thought.

Steve Plier, founder of the Alabama Automotive Repair Industry Society of Excellence (ALARISE), told a media source that overall, those shops have reported lower volumes of State Farm work but higher profit margins. “I do believe a couple of the smaller two-man shops that removed themselves from the program have most likely struggled more than the $1 million and up per year repairers, but I believe that has more to do with total volume being down versus simply the State Farm/PartsTrader issue,” says Plier. “Business in the metro Birmingham area since early 2012 (before PartsTrader rolled out) has been what I would consider to be slow across all insurance company lines. In the spring of 2011, central Alabama was hit hard by strong storms, so the volume since late 2011 has not been what I would consider brisk.”

Also quoted was Lloyd Bush, owner of Bush Auto Collision Repair in Gardendale, AL, who said it was a “gutwrenching decision” to drop Select Service since State Farm accounted for 44 percent of his work, but overall he has come out okay.

“We’ve lost 5 percent of our gross sales, but our net profit has gone up,” said Bush. “We’re able to charge storage, our teardowns aren’t scrutinized and our local State Farm agents are still sending us business. I spoke to them before coming off the program to tell them what was going on, and they agreed with me and said, ‘We don’t send people to you because you’re on the program; we send them to you because we know you’ll fix the car correctly and we won’t have any problems.’”

Bush attributes the 5-percent loss to steering, mainly customers who have never been to his shop before and make a claim via the call center instead of their agent.

Bush says if faced with the same decision today, he would make the same choice, primarily because of the storage he has been able to charge due to no longer having a contract with State Farm. He also charges for lift time. “The lift wasn’t free, plus one of my men has to do it,” said Bush.

4 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Nashville FIAT 615.790.4616 | 800.498.5000 1124 Murfreesboro Rd., Franklin, TN 37064

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Gray-Daniels Gray-Daniels Chevrolet Chevrolet • Prompt, Accurate and Free Local Delivery • Dedicated Wholesale Staff • Large Inventory Hours: Monday - Friday 7:30 am - 5:30 pm Saturday 8 am - 4 pm

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Gray-Daniels Gray-Daniels Lincoln Lincoln • Trained Wholesale Crew • In State Next Day Shipping w/Quick Local Delivery • Great Discounts Hours: Monday - Friday 7 am - 6 pm Saturday 8 am - 12 pm

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WWW.GRAYDANIELS.COM For All Your Collisions Part Needs www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 5

NC’s Sandhills Community College Students Help in Restoring ‘Annabelle’, Pinehurst’s 1937 Fire Engine

In March 2010, Jamie Boles and his son Glenn went to the Rowan County town of Landis in order to meet with a collector of antique fire and ambulance equipment. The collector had purchased an old firetruck in 1981 from an antiques dealer in Carthage, who had purchased it from a farmer who used it to water his crops. Sure enough, the firetruck was the very same one the village of Pinehurst purchased in 1937 from the Seagrave Company of Columbus, Ohio. They had found “Annabelle.”

As the second motorized fire engine purchased by Pinehurst, Engine One proudly served the village from 1937 until it was sold to the farmer in 1973. Of course, Boles thought, this fire engine needed to be returned to the village—it was part of the rich history, the heritage and the traditions of Pinehurst and the Pinehurst Fire Department. Boles set the wheels in motion for the truck to begin its relocation back home.

Knowing that Sandhills Community College has a collision repair and refinishing technology program, and thinking that this could be an interesting project for students in the program, Larry Harter, of the Sandhills Chapter of the Antique Automobile Club of America, put Pinehurst Fire Chief

Carlton Cole in touch with SCC’s automotive technology department chair Alex Cameron.

Deputy Fire Chief Floyd Fritz and Fire Chief Carlton Cole, of the Pinehurst, NC, Fire Department, present a photo of Annabelle, while standing in front of her, to Frank Evans, coordinator of the Collision Repair and Refinishing Technology program at Sandhills Community College. The photo is of the restored fire engine that students in the program helped the department refurbish over the past two years

“We had no room for an entire firetruck in our facilities,” said Frank Evans, coordinator of the collision repair and refinishing department. “But we wanted to be involved.

“I thought this could prove to be a fantastic learning experience for our students, plus it allowed them to par-

ticipate in a unique project that touches their community. We decided to restore in it pieces, allowing our students in our painting and refinishing, special finishes and non-structural damage classes work on the firetruck.”

Each semester, different portions of the truck were brought to Sirotek Hall as students learned about repair and refinishing.

Other members of the community and members of the Pinehurst Fire Department were busy restoring chrome, gold leaf lettering and striping on the truck per exact factory specifications.

There were mechanical repairs, and some had the task of tracking down or restoring items like ladders, bells, nozzles, extinguishers, wood decking and many other details of Annabelle.

After two years, the refurbishing of Engine One is now complete.

Annabelle hearkens back to a much simpler time. In 1904, the resort village of Pinehurst formed a volunteer fire department. Hose Company Number One had hand-drawn hose carts housed in the Pinehurst Resort’s laundry building.

In 1930, the department needed to centralize the fire suppression equipment, so it moved to the first designated location on Community Road.

A 1925 American-LaFrance Brockway Torpedo triple combination

pumper chemical and hose motor car was the first motorized apparatus.

In 1937, Annabelle was brought to the station. There she lived until she was sold to the farmer in 1973 to be used as irrigation equipment.

Pinehurst constructed the village government complex on Magnolia Road in 2001, where the Fire Department is now located.

And how did this fire engine get the name Annabelle?

“We are very creative here at the fire station,” said Deputy Fire Chief Floyd Fritz. Tuns out the truck has a siren and a bell. So, naturally, “Annabelle.”

The restored fire engine will now be used for public education projects, exhibits, at civic events and in parades.

There are still a few details of the truck to renew and replace, but for the most part, she is complete.

When Annabelle passes and sounds her sirens and horns in local parades, many in the community can smile with pride knowing they had a hand in the restoration.

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6 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Walcom Puts Body Shop Owner in a Good Mood In 1977, Shawn Moody, 53, was a junior in high school and opened the first of the Moody’s Collision Centers in Gorham, ME. Now his business consists of eight locations that repair approximately 12,000 vehicles annually. “In 2001, Moody’s opened our second location, and now we open a new one roughly every other year.”

Moody’s Collision opened its first location in 1977 and today the company consists of eight locations

One reason for Moody’s explosive growth can be credited to his company’s employee ESOP stock ownership plan. “Our co-worker owners have a strong desire to embrace new technology,” Moody said. “But, you have to stay up on it and continually integrate it into your business, or

you’ll get left behind. We really do our homework to make sure any new piece of equipment makes sense for us. We just don’t rush to buy it just because it’s the newest thing.”

Moody’s due diligence when researching new technology starts by polling other shops that are already using the technology. When Moody found out about Walcom® USA, LLC ThermoDry Technology (TD) system distributed by Collision Design Center, LLC, he travelled to another state to see it in action, he said. “We went up to a shop in New Hampshire and asked to talk to their painter. I didn’t want to talk to anyone else. I know that it’s the guy who uses it every day who’s going to give me a straight answer. He said he really liked it and told us that it decreased his drying time. He said he was using less product and the clear laid out better with the TD3 PRO.” In simple terms, the TD3 PRO system heats the paint and atomizes it more efficiently than cold-compressed air. The machine regulates the heat right at the spray gun inlet, so that there’s less static pressure at the spray gun nozzle. When painters find out

that the system minimizes die back, alleviates modeling, and saves materials, they immediately prefer it over the old way of applying paint. Once they learn how to use it, they’ll realize that things they used to have to do—such as denibbing and buffing— are minimized, while consistently getting a superior finish on every vehicle.

Moody has purchased seven Walcom units, all of which are paying big dividends for this burgeoning MSO

After testing the TD3 PRO, Moody purchased seven TD3 PRO units, all of which are paying big dividends in their locations.

Moody is seeing the results in both the bottom line and the finished product.

“We’re saving at least 15 percent on paint and labor efficiency. Before we got

these machines, we were waiting 10-12 minutes for the waterborne to flash between coats, but now the TD3 PRO cuts that down about five minutes. When we did the math, we figured we’re saving 1,000 hours on drying time by using this machine. That’s phenomenal!” In addition, Moody said, “The paint and the clears are drying so much faster that there’s less chance for dirt in the paint, which results in less buffing.”

Moody’s painting staff is already adept at using the TD3 PRO units, he said. “Our painters worked with the Walcom unit for a couple days, and they adapted quickly. Once they get a feel for the proper air pressure and decreased flash times, there is a very shallow learning curve. If you’re interested in this equipment, I would suggest getting it in your shop for a full day and have someone there from Walcom demonstrate firsthand the labor and material savings. Seeing is believing!”

Read more about Moody’s Collision Centers at http://www.moodyscollision.com, Collision Center Design at www.collisioncenterdesign.com, and Walcom USA at: http://www.walcom-usa.com.

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 7

Shop Showcase

Is this Body Shop Truly and “Ultimately Green?” with Ed Attanasio

Selecta Auto Body in San Francisco is the only body shop in the country that has a B-Corp certification, a distinction only 850 companies have achieved for being green, socially responsible and a positive member to their respective communities

Every body shop owner in the country wants to be green. Just ask them.

But, are they willing to commit to a total green approach in every aspect of their business? Changing some light bulbs and installing low-flow toilets are positive things, but how many shops will really invest significant time, money and effort to be as green as they possibly can?

One San Francisco shop owner has committed himself to being 100% green and the end result is Selecta Auto Body, the only collision business in the country today that has achieved B-Corp certification, by meeting rigorous standards of social and environmental performance, accountability, and transparency. Today, there is a growing community of more than 850 Certified B Corp companies from 28 countries and 60 industries working together to redefine what success means in the world of business.

Last year, JR Hubbard moved Selecta Auto Body from San Francisco’s Noe Valley to the Mission District.

The move provided Hubbard the opportunity to fulfill his dream of building one of the country’s first 100% environmentally friendly collision center. It was an enormous investment in time and money and various obsta-

cles made it an arduous process, but today, the new Selecta Auto Body is being described as “ultimate green.”

Hubbard’s former location was only 4,000 square feet in size and due to development constraints, he wasn’t able to add space or remodel. “We had a whole slew of problems and limitations with our old shop,” he said. “We were fixing 30-40 cars out of that facility every month, but we had power issues and we spent way too much time moving vehicles around. The DRPs weren’t coming our way, but it wasn’t due to the quality of our work.

We couldn’t upgrade and the building wasn’t for sale, so we started to look around for a new situation. And that’s why I started doing the research and shortly began considering a completely new shop that I could design from scratch and make it everything I wanted it to be.”

It took two years of construction and planning and jumping through the city’s hoops to turn an old building into Selecta’s new 10,000-square-foot facility. “Real estate in San Francisco is very expensive, but the time was right, because the market was dipping during that time,” Hubbard said. “It was hard finding an ideal location with ample parking and building a new facility means you’re going to encounter a ton of red tape. The first step was acquiring an SBA loan and then we sat down with Joel Smith of Precision for Collision (PFC) to layout the shop and outfit the facility.”

The big question Hubbard kept asking himself was what are the benefits of being eco-friendly? “Why did we strive to become as green as we possibly could?” Hubbard asked.

“Sure, it does give us a distinct marketing advantage and maybe it gets us in the door with more DRPs, but that wasn’t the only reason. You can make money in the collision business, but I think you also need to do it right for all your customers and partners, including the insurance companies, employees, and maybe most importantly—ourselves. I have two children and I want to be able to face my kids and providing a healthy atmosphere for our employees is a big part of it.”

8 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

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

Acquiring the B-Corp designation was not a slam dunk for Selecta and that’s why only one body shop in the country has the certification. “The B-Corp certification was difficult, but we were willing to do whatever it took,” Hubbard said. “The B-Corp people inspect everything and more companies get rejected than accepted.

It’s not just all about the facility or even about being green, but it’s also about being socially responsible and a positive member to our community.

Everything we’ve done is an investment in our future and the B-Corp certification is an integral part of it.”

Hubbard graduated from San Diego State with a degree in business before entering the collision game.

Pretty soon, he successfully completed three levels of I-CAR Platinum training and was managing Selecta, a 40-year-old shop on the famous Lombard Street in the City by the Bay by the late 1990s. Because he learned the

business by performing every role-from estimator to body tech--Hubbard knows more than your average shop owner.

“It’s all about knowledge and how to implement it,” he said. “I’m a sponge and I’m always looking for better methods and systems to do the best job we can. I learned a lot from my father who managed Selecta in the 1990s and also from the original owner, Dieter, who was an amazing painter. We will never stop learning and trying to improve ourselves.”

Hubbard has stepped up in every area to be greener, by selecting leading equipment, tools and systems wherever he could. ABN asked him about every aspect of his construction and design, broken down by system and/or work area.

Lighting: “All of our lights are LED, because they’re more efficient land use less energy. We replaced all the glass in our skylights to let in as

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much natural light as possible. We painted the floor to get as much reflective light as we can. We have reflective dual ballast light fixtures that use T-5 bulbs and all of the lights in work areas are on motion sensors with AB mode, which means we can turn off half of the lights when appropriate.

Our lights automatically adjust to natural lighting, so they’re not working if they don’t need to.”

Construction: “Using recycled materials to do the renovation was also a priority, Hubbard said. “We have de-constructed all the support frames for the roof and have re-used existing materials and retro-fitted structure with steel. The mezzanine was renovated with existing wood as well as donated wood.”

Electrical System: “All electrical work in the building was completely upgraded to accommodate all equipment and tools and to avoid overloading circuits while keeping all environmental standards in mind.”

Air system: “It was a goal for us to make sure that air circulation was adequately planned so that employees, customers and neighbors are protected. The air turnover system that we have installed is double the requirements set forth by the City of San Francisco. The air is cleaner here, because our advanced filtration systems are eliminating all the aerosols, carbon monoxide and dust particles, so our techs aren’t breathing it in all day long. I have two children and I want to be able to face my kids and providing a healthy atmosphere for our employees is a big part of it.”

Plants: “It is our belief that plants are beneficial to the aesthetics and physical environment; therefore we have installed plants to boost the oxygen levels in our workplace and help Continued from Cover

TN Lawsuit

claims for breach of contract and tortious interference proceed toward trial.

“This may be the best thing that could have happened for our industry; being at the Federal level may help set some really meaningful legal precedent that is highly beneficial to our industry,” said Bobby Price, founder and president of Price’s Collision Centers. “The is-

off-set carbon dioxide and chemical air pollutants that a typical repair shop produces. We currently have 350 plants here in the shop, but have plans to add another 150 eventually.”

shop in San Francisco to use FESTOOL products, a revolutionary, technologically advanced dust extraction system which is new to the market. It extracts and reduces bi-products of

The new Selecta Auto Body is a state-of-the-art facility and people are calling it “ultimate green

Detail Shop: “Our detail department specifically uses environmentfriendly products that have low to no V.O.C. compounds, in order to adhere to our mission of becoming an ‘ultimate green’ shop. Special consideration and testing products went into our choice of products. We have installed special drains that separate oil and sediment as an extra preventative measure to avoid groundwater contaminants. The installation and use of low volume high pressure washers contributes in our aim to reduce water consumption. We use the HEPA filter in our vacuums for interior detailing which is the best filtration system for these types of equipment because it controls particles from re-circulating in the air.”

Repair Shop: “Another step we’ve taken as a shop is to be the first sues that we at Price’s Collision and other quality repairers are facing are not local, or even regional; these issues are being experienced by quality-minded repairers across the entire country. We have extensive documentation and statements from our customers that go back for some time, and we are prepared to see this through.”

Price’s Collision Center’s, LLC currently own and operates six fullservice collision center locations in and around Nashville, Tenn., including one in Bowling Green, KY.

10 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

sanding. Whenever possible, we use equipment that is powered by high-efficient air compressor instead of batteries. Our goal in the future is to be more efficient by installing solar panels to re-charge battery operated equipment.”

Office: “Much thought went into being green with respect to the office area. We are in the process eliminating paper whenever possible and going digital. We use portable and rechargeable estimating carts to take advantage of charging during off-peak hours giving ability to use all equipment during the day. All desks and benches in the office are made from recycled wood and steel.”

Water: “We installed a low flow toilet tank and a filter system that takes full advantage of the great drinking tap water we have here in San Francisco. It’s one of best drinking water in the nation and we encourage our employees to stop buying bottled water by giving them their own refillable bottles. Lastly, our tankless hotwater heater is beneficial because it only provides hot water when needed instead of constantly heating a tank.

Hazardous Material: “We use a specialized local company experienced in handling hazardous materials.

The shop is equipped with leak-proof containers to ensure proper storage and removal. Our employees are trained in the most effective techniques to work with pollutants, chemical solvents and other materials that can be harmful.”

—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

January Retrospective: ASA Position, CAPA, CIC with John Yoswick

20 years ago in the collision repair industry (January 1994) The Automotive Service Association (ASA) Collision Division has developed a position paper to reiterate the fundamental rights of the collision repair facility when purchasing parts and materials.

ASA’s position is that the collision repair facility retains the right to select and purchase parts and materials from the supplier of its choice without restrictions, limitations or control by other parties.

The position was developed to help preserve and protect the rights of collision repair facilities as the industry phases in electronic date interchange, enhanced automation and electronic parts sourcing. These technology advances will benefit the industry. However, depending on how they are implemented, they could jeopardize the amount of control the collision repair facility has in the

parts, materials and vendor selection process.

—From an ASA press release.

15 years ago in the collision repair industry (January 1999) Non-OEM fenders received equal or higher ratings than their OEM counterparts in the latest parts demonstration held at the Collision Industry Conference (CIC).

“This is a very good day for CAPA,” Jack Gillis of the Certified Aftermarket Parts Association (CAPA) said, noting the difference in the outcome of the latest demonstration compared to one held last fall, which he had termed, “Not one of our better days.”

Over the course of the meeting in Palm Springs, CA, two right fenders, one made by Ford and one made by non-OEM parts manufacturer Tong Yang, were installed on a 1996 Ford minivan. Nine out of 10 CIC participants, without know which part was

ticipants rating the parts on a scale of 1 to 5.

California shop owner Kelly Roe, who organized the demonstration, said she purposely chose to replace non-adjacent panels rather than a hood and fender as in past demonstrations.

“People in the past were saying the hood doesn’t fit because the fender is wrong, or the fender doesn’t fit because there’s a problem with the hood,” Roe said. “We were trying to get away from that sort of argument.

We also were trying to do a blind test so we could get away from some of the perceptions created by people knowing what the parts were.”

—As reported in Autobody News.

CIC continued to conduct these parts demonstrations at several more of its meetings, with OEM parts generally outscoring non-OEM parts when judged by CIC participants.

See January Retrospective, Page 17

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which, gave a “thumbs up” to both parts; both were given almost identical ratings in terms of fit, finish and “salability.”

Similarly, two left fenders were hung on the vehicle during the meeting, and while neither part received high marks, the non-OEM fender made by Jui Li outshone the Ford fender, particularly in terms of fit.

When asked, Could you sell it to your customer? 63 percent of CIC participants answered “yes” about the non-OEM part; less than half said they could sell the Ford replacement part.

The demonstration, the third conducted at CIC recently, was the first “blind” test and the first to compare OEM replacement parts and non-OEM parts. All of the parts’ packaging and labels were removed or concealed from both the installing technician at a Palm Springs shop, and from the CIC par-

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Continued from Cover

CIC Panel

tronic parts procurement itself. Darren Huggins, national collision director for of the Van Tuyl Auto Group, which operates 37 body shops and 75 dealerships in 10 states, said parts procurement systems give shops for the first time a transparent tool to measure vendor performance.

“When was the last time we really focused on holding parts suppliers accountable for our customer satisfaction, quality, cost and speed?

It’s never happened,” Huggins said. “My own dealerships struggle sometimes to get parts off the shelf and to me in a timely manner.

Darren Huggins The insurers are mandating that we perform. But we’ve never ever made the parts supplier perform like they have to perform today. We’re finally putting the parts department on the dime. If nothing else, there’s a silver lining there.”

“As a former shop owner, I know I had only anecdotal evidence of how well my suppliers were performing,” agreed Mike Quinn, now president of uParts, an electronic parts procurement system that went live in Southern California last year.

Quinn said uParts provides objective reporting of performance it offers suppliers, shops and, if a shop wishes, its insurer partners. This “procurement efficiency index,” he said, will help shops improve their performance by choosing vendors with high scores based on objective measurements such things as fill rates, delivery time and order accuracy.

Supplier Sees Benefits Terry Fortner of LKQ Corporation said that as electronic parts procurement systems integrate with supplier inventory systems, they will reduce the problem of what he called “ghost inventory,” a supplier suggesting they have a part when in fact they don’t or it is “three states away.” It will also reduce the need for companies like his to have 1,400 sales people answering calls because only 10 prevent of the orders it currently receives come in electronically.

“What I will tell you is that the industry, in my opinion, is behind the

curve,” Fortner said. “The efficiency [of the systems] is not to a point where we would like to see it, but we know that every electronic order we get, we see our internal credits and allowances dramatically decrease. “That is a big win for us. It’s a big win for the industry.”

Randy Stabler, who operates six Pride Auto Body shops in Southern California, agreed that he sees an upside to the industry ferreting out those shops that order parts to get an invoice only to return the part. He said he chose an electronic parts Randy Stabler procurement system that would best allow his company to “get all the right parts but also be able to demonstrate which of our suppliers are more efficient.” He said he’s anxious to have the systems better integrate with his company’s accounting and other technology systems (as well as those of his suppliers) but he likes the idea that the systems may shed some light on “the costs that our industry has absorbed” when using alternative parts.

“I’ve got no problem with alternative parts as long as they work on the car, as long as I get them in a timely manner, and as long as if something goes wrong with them, someone else pays the costs to rectify that problem rather than me,” Stabler said.

“The electronic parts procurement engines will allow for us to have transparency on that.”

Mandates Questioned But the panel was less positive when it came to the subject of insurers mandating the use of a particular system.

Without naming the companies involved, Jim Sowle, body shop director of Sewell Lexus in Dallas, Texas, said he recently chose to drop a direct repair program because of its mandated use of a particular Jim Sowle system.

“Running a system that we’re forced to use that’s going to add additional time and has no value-added just doesn’t make sense to us,” Sowle said, noting that his shop orders most of its parts from the dealership’s own parts department.

12 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

During the panel discussion, between 50 and 75 repairers at the meeting responded to several survey questions about electronic parts procurements systems. Although 12 percent said they don’t currently use such a system, 40 percent said they use a system of their choice, 4 percent said they use a system only based on agreements they have with insurers, and 44 percent said they do both.

Of those using a system of their choice, 78 percent said it has had a positive effect on their efficiency (another 12 percent said they have seen no change in efficiency). But 92 percent of those using a system due to an insurer agreement said they have seen a negative impact on efficiency.

Nick Bossinakis of Overall Parts Solutions said that 92 percent fits with his experience of not being able to locate a shop or vendor with much positive to say about PartsTrader. As the developer of a competing parts procurements system, it may not be surprising that Bossinakis predicted it will “take another three or four years…and millions and millions of dollars” to get PartsTrader “to where you (repairers) want to get it.”

But Bossinakis did praise State Farm for pushing for a needed change in the industry.

“How are we sitting here in 2013 and still phoning and faxing orders,” Bossinakis said. “At some point, whether we agree or disagree, you have to respect the process of change.

My hat is off to State Farm and to PartsTrader, because the way I look at it, sometimes you have to regress to progress. Maybe I’m idealistic and maybe I’ll be out of business five years from now. Who knows? But there is value to what has happened.”

“My personal opinion is we’ve been regressing for far too long in this industry, and I think it’s time to stop,” shop owner Dingman said, drawing applause from some CIC attendees.

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

www.autobodynews.com

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 13

USAA to Hire Up to 1,215 New Employees in Hillsborough County, Florida Florida state officials announced that United Services Automobile Association (USAA) will expand its presence in Hillsborough County, creating up to 1,215 new jobs and $164.3 million in capital investment by 2019.

To accommodate the anticipated growth, USAA will initially lease 50,000 square feet of temporary office space at Lakeview Center in Tampa, with plans to construct a new, 420,000 square foot facility at the Crosstown Center in Brandon by 2015, according to the announcement.

USAA, a leading insurance provider to the military community, already has a significant presence in Florida. The company currently employs more than 1,800 individuals at its Commerce Park facility in New Tampa, Hillsboough County, with more than 600 additional employees located throughout the state. Headquartered in San Antonio, USAA also maintains operations in Phoenix; Colorado Springs, Colo.; Norfolk; Va.; and the Dallas area.

“The expansion of USAA in Hillsborough County will create over 1,200 new jobs for Florida families, meaning 1,200 families will have the opportunity to live their version of the

American Dream right here in the Sunshine State,” Florida Governor Rick Scott said in a statement. “This is great news for Florida families and is another sign that Florida is becoming the number one state for business. With nearly 370,000 jobs created in two and a half years and an unemployment rate below that national average, we know it’s working in Florida.”

“USAA is growing as the demand for our financial products and services among the military community increases,” USAA CEO Joe Robles said. “We’ve had a great team of employees in Tampa for 40 years and we are excited to grow that team in this great military community.”

USAA has operated in Florida for more than 40 years, with a significant presence in Hillsborough County since selecting Tampa as its southeast home office location in 1987, said Ken Hagan, chairman of the Hillsborough County Board of County Commissioners. “They have deep roots in this community, and reflect our values of service and commitment to the military. We are proud to support their growth and look forward to many years of future success,” he said.

14 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Dallas-based Service King Collision Repair Centers has bought Accurate Autobody of Nashville

Terms of the purchase were not disclosed. The purchase includes Accurate Autobody's nine collision repair centers in Middle Tennessee and one off-site production facility. The acquisition gives Service King 22 locations in Tennessee.

“We’re looking forward to partnering with Accurate Autobody and its pristine reputation with consumers and insurance partners,” said Mike Abbott, Market Vice President Tennessee for Service King. “Both companies share a similar commitment to quality repairs and customer satisfaction giving us great confidence in our combined teams’ abilities to deliver superior service to customers in Tennessee.”

Service King will now operate 22 locations in Tennessee. John Hughes, the founder of Accurate Autobody, along with his team members, will be joining more than 2,300 Service King teammates across the coun-

try. Hughes’ career in the auto-body industry spans more than 22 years, including a dozen years as owner of Accurate Autobody, during which time he helped it to become a positive contributor in the local community.

“I am very grateful to all of my associates for their hard work and dedication. It is their efforts that have made Accurate Autobody the industry leader in middle Tennessee,” said Hughes. “I am confident that joining the Service King team will offer many opportunities for all as they continue to grow.”

“We are extremely pleased to be able to expand our presence in Nashville. This acquisition will provide consumers more convenient access to a Service King Repair Center,” said Jeff McFadden, President of Service King. “The Service King family welcomes the Accurate Autobody team. We are excited that this growth will provide personal and professional opportunities for everyone.”

Give us your opinion on matters affecting the industry.

write us! publisher@autobodynews.com

Willets Point, NY, Shop Owners Face First Relocation Deadline The developers of a mega-mall slated to rise on the parking lot at Citi Field are seeking almost $43 million in tax breaks, but opponents of the project — including many auto body shops in the area — argue they should get no breaks at all. “This whole thing has been a disaster from beginning to end,” said state Sen. Tony Avella (DBayside.) “How do you justify (giving) tens of millions of taxpayer money when you’re selling the property to the developers for a dollar?”

Willets Point business owners face impending deadlines to relocate after the Queens Borough Board approved the city to sell the 23-acre area to developers. Photo by Alex Robinson, NYDN

More than 50 of the auto body shops in Willets Point are now in talks to move near the Hunts Point section of the Bronx. The city has set aside $15.5 million to help them relocate.

More than 30 have either relocated, signed a lease or are close to doing so, according to the city Economic Development Corp.

“These provisions are a small part of the overall $3 billion private investment QDG is making in Willets Point,” Queens Development Group spokesman Phil Singer said in a statement. It “will reverse decades of contamination and create thousands of new jobs, affordable housing, retail and open space.”

But Arturo Olaya, president of the Willets Point Defense Committee of Small Businesses and Workers, said the city must do more to help the merchants. Olaya has appealed to the city to provide business owners with a six-month extension to relocate.

“They’re displacing us to give the land to the billionaires,” said Olaya, who has owned Arthur’s Auto Trim Shop at Willets Point for 19 years. “This is a disgrace.”

The city offered a payment of 12 months rent to any business owners who relocated off city-owned land in Willets Point by Nov. 30. The City

Council passed a $3 billion plan in October that would see the Iron Triangle area, occupied for years by small repair shops and some manufacturing businesses, redeveloped into a commercial, retail and residential site. Some business owners took the relocation deal and moved on with or without a new location. Business owners who moved out of the Iron Triangle were eligible for one year’s rent in their new locations, if they left before Nov. 30. They can still get six months’ rent if they move before Jan. 31.

Johnny Yaqubi owned Johnny’s Auto Body and Repair Shop for 10 years before he accepted an offer to relocate. “What choice do I have?” said Yaqubi.

But he did not have a new location yet when the city came to take the keys to his business. The city will pay him $14,000, which was the equivalent cost of 12 months rent for Yaqubi.

“That’s what they said, but I have not gotten paid yet,” he said.

Yaqubi has not found a new location for his business and was not sure where he would relocate.

The city also evicted several businesses as the deadline loomed.

Blas Olivares owned his auto body repair shop for 20 years before the city forced him to vacate his store Friday. Olivares claimed he recently had a meeting with a city lawyer in which he was told he could stay until Dec. 31.

“I’ll try to go to another place, but we don’t have any place to take the business,” he said.

Olivares said he would put his belongings in storage for now until he figures out a new location.

A group of 52 business owners, represented by an organization called the Sunrise Cooperative, are closing in on a deal with the city to relocate together.

The group is in negotiations with a large facility in Hunts Point, and is also looking at locations in Astoria, Maspeth and Brooklyn.

“Everyone said you won’t get anything from the city,” said Sergio Aguirre, an organizer for the group.

“We know this isn’t the best agreement with the city, but it’s something.

It was this or nothing.”

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Continued from Cover

A Look Back

tion of standards. He said CIC, by its published mission statement, is solely a forum where “industry stakeholders come together to discuss issues, build broad understanding, find common ground and communicate…findings and possible solutions.”

“We’re not going to saw sawdust any more with the topic,” Avery said.

“Because CIC comes up to a point and stops. Then if companies want to take it from there and create inspections and verifications and programs, that’s for them to figure out and offer to the repair industry. That’s someone else’s bailiwick.”

May A memorial service was held in early May for Matthew Ohrnstein, managing director of the Symphony Advisors consulting firm and the former CEO of Caliber Collision Centers, who died at age 57. Ohrnstein pioneered consolidation and the entry of Wall Street investment in the collision repair industry, adding 68 Matt Ohrnstein Caliber shops during his 7-year tenure with the firm, thanks in part to investment capital from insurance companies and private equity funds. Ohrnstein went on to be involved in many of the shop mergers and acquisitions in the industry after he left Caliber in 2004.

June Ten years after the Auto Body Association of Connecticut (ABAC) filed a class action lawsuit against The Hartford, a Connecticut Superior Court judge awarded them $20 million in punitive damages. This was in addition to the $14.7 million in compensatory damages a jury in the lawsuit awarded the repairers (about 1,500 are represented in the class) in 2009.

The suit charged that The Hartford suppressed labor rates by using unfair and deceptive trade practices to steer customers to its DRP shops, and by pressuring appraisers to enforce artificially low labor rates.

“The court has placed the entire (insurance) industry on notice that forcing their appraisers to violate the code of ethics by writing estimates at

unreasonably low labor rates must stop,” attorney David Slossberg, who represented the repairers in the case, said.

The Hartford is appealing the ruling. The ABAC has a similar lawsuit pending against Progressive.

July Despite a last-ditch effort by insurers calling for a veto, Rhode Island Gov. Lincoln Chafee signed into law unique legislation that requires a vehicle-owner’s written consent before a vehicle is declared a total loss if the cost of repairs is less than 75 percent of its value.

Rhode Island shop owner John Petrarca had this advice for shops working on legislation in their own states.

“You have to get engaged and stick with it. Nothing gets done in a day,” Petrarca said. “We had so many disappointments so many times. But you know what? We picked ourselves up, we got back in there, we kept informing. I believe the only way we can correct our industry is through legislation. Because the other side will absolutely do nothing unless you have legislation.”

August PartsTrader last summer began eliminating the “fax-only” option which had allowed shops to use the system to buy from vendors not participating in PartsTrader. Also in August, the Mississippi Collision Repair Association and more than two dozen body shops, dealers and other parts suppliers in that state filed suit in an effort to prevent State Farm’s mandated use of PartsTrader. The suit alleges that State Farm’s implementation of PartsTrader tortiously interferes with existing business relationships shops have with their parts vendors.

September State Farm’s PartsTrader mandate also led to actions by both ASA and SCRS last fall. SCRS issued a new position statement, condemning insurer mandates, “particularly those that specify required vendors, business platforms or internal processes that must be followed.”

And ASA’s Risley sent a letter to State Farm saying the association is “taking a firm stance against insurance company mandates that limit a repairer’s right to choose their vendors, distributors and suppliers.” Ris-

16 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

ley wrote that State Farm’s mandated use of a vendor “that solely financially benefits State Farm is more dictatorship than partnership.”

October ASA then went a step further and sent a letter to state insurance regulators and attorneys general, asking if State Farm’s mandate to use PartsTrader violates state law.

“We believe this mandatory parts procurement program stifles competition and harms both the consumer and the small businessperson,” Risley said.

November A year after Toyota introduced the concept of “predictive estimating,” the automaker announced a partnership with Mitchell International to deliver Toyota recommended procedures and bulletins within Mitchell’s new mobile/online estimating system in early 2014.

When a user adds a part to an estimate, all of the appropriate Toyota vehicle information will automatically appear, including related Toyota bulletins or procedures and information on such things as one-time use fasteners.

Toyota’s Rick Leos said he expects other automakers to make simi-

lar announcements in 2014.

December The Automotive Body Parts Association (ABPA) last month filed suit against Ford Motor Company, challenging the validity of the automaker’s design patents on collision repair parts.

The suit alleges that Ford “uses design patents on automotive body repair parts to limit their distribution and increase cost of the repair parts.”

In 2009, Ford settled two of the legal battles it waged to protect its design patents through an agreement making LKQ Corporation the only distributor allowed to sell certain nonOEM parts for Ford vehicles. In exchange, LKQ paid a royalty fee for each of the parts it sold, and agreed not to challenge the validity of Ford’s design patents.

John Yoswick is a freelance writer and has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (visit www.CrashNetwork. com). He can be contacted by email at: jyoswick@SpiritOne.com.

www.autobodynews.com

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HOURS: MONDAY - FRIDAY 8 A.M. - 7 P.M., SATURDAY 8 A.M. - 4 P.M.

Continued from Page 11

January Retrospective

10 years ago in the collision repair industry (January 2004) The Collision Industry Conference (CIC) halted its plans for an independent audit of the effectiveness of programs that purport to certify the quality of non-OEM parts.

At two CIC meetings in 2003, the CIC Parts and Airbags Committee described its plans to ask such organizations as the Certified Automotive Parts Association (CAPA), the Manufacturer’s Qualification and Validation Program (MQVP) and parts distributor Keystone Automotive – each of which certifies or brands certain nonOEM parts as superior – to fund and participate in an independent audit by a qualified third-party.

But participants at CIC in Palm Springs voted 40-6 (with at least an equal number not voting) to scrap the plan just days before it was set to launch.

“There are several non-OEM parts entities in our industry that are telling us that they provide a superior part for ‘x’ reasons,” said Rod Enlow, co-chairman of the CIC Parts Com-

mittee, saying there is confusion about which programs’ parts are actually comparable to OEM. But opponents to the plan said the resulting report could be perceived as

ment],” Rick Sherwood, owner of the Detroit-based consulting firm OEM Collision Repair Resources, said at CIC in Palm Springs. “My concern is CIC is going to be in the position at

Participants at the CIC meeting held in Palm Springs, CA, in January of 1999, evaluated OEM and non-OEM parts that were installed on a vehicle during the meeting

a CIC endorsement or indictment of one or more of the programs.

“There’s no reason that CAPA, MQVP, Keystone or whoever wants to participate can’t do exactly what you’re saying [without CIC’s involve-

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the end of the audit of having MQVP, CAPA and Keystone or whoever participates saying, ‘The CIC audit process proved we deliver quality parts...’ CIC is not in a position to have that happen.”

For his part, Enlow said he hopes the committee’s efforts will result in an audit even without CIC’s involvement.

“If not, it’s going to put to us right back to square one, where you read the rhetoric, you go to the websites, you make your decision on who makes good parts and you use them,” he said.

– As reported in CRASH Network (www.CrashNetwork.com), January 18, 2004. No such audit ever took place. The MQVP certification program no longer exists, but a new certification program operated by NSF International, was launched in 2010.

5 years ago in the collision repair industry (January 2009) In the same week in January the Collision Industry Conference (CIC) was

held in Scottsdale, AZ, State Farm distributed a new Select Service agreement to participating shops nationwide, and the company’s George Avery spent several minutes at CIC to discuss the new agreement.

He described the changes as primarily “minor” or “editorial,” and that unlike the transition from State Farm’s “Service First” to “Select Service” program, the change in the agreement was not coinciding with a reduction in the number of shops participating in the program.

Wording in the agreement has been changed, he said, to give shops the option of conducting a more thorough tear-down of a vehicle before uploading an initial estimate (provided adequate photos are taken in advance).

The indemnification section of the agreement had been “too onesided,” Avery said, and it has been changed to say that both the shop and State Farm will each “hold the other party fully harmless against any lost, damages, claims or expenses” sustained as a result of negligent or intentional acts or omissions of the other.

Several changes that Avery did not discuss at CIC revolve around parts and pricing. The term “prevailing competitive price” no longer appears in the document, a change Avery later said the insurer made because it felt that was term that might not be clear to some repairers. Instead, the agreement only references “pricing identified through State Farm’s survey process.”

As in the previous agreement, State Farm says it may enter into agreements with manufacturers, distributors and suppliers of automotive parts. The new agreement states that “any part pricing agreements negotiated by State Farm are in addition to the price offered” by the shop and that “State Farm shall receive the benefit of both” the shop’s offered pricing and “the price or discount negotiated through any part pricing agreements” with manufacturers or suppliers.

—As reported in Autobody News.

Autotown Insurance Acquires Fling Insurance in GA

www.donreidford.com www.fordparts.com/donreidford 1875 South Orlando Ave., Maitland, FL 32751

AutoTown Insurance, an independent agency based in Norcross, GA, announced its acquisition of Fling Insurance Agency in Lagrange, GA. AutoTown said the acquisition highlights the firm’s expansion plans outside of the metro Atlanta market.

AutoTown said the acquisition of Fling Insurance, located in western Georgia, would also help the agency expand to Alabama. Founded in 1970, AutoTown operates retail stores in Georgia and South Carolina under the AutoTown Insurance brand name.

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 17

SEMA Show Goes On

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

The SEMA Garage-Industry Innovations Center is State-of-the-Art with Ed Attanasio

The modern automotive garage first appeared in the 1920s and, in addition to parking cars in them, inventors began to utilize them for different purposes. Walt and Roy Disney started making cartoons in a Hollywood garage in 1923 and in 1938. William Hewlett and David Packard rented their own garage space in Palo Alto, CA. Apple Computer started in a garage and bands like Metallica and Van Halen were originally formed in garages. Worldchanging innovaSEMA’s tions take shape Vice-President of every day and OEM and Product many have hapDevelopment pened in a garage.

Programs Mike That’s why it’s apSpagnola runs the propriate that organization’s SEMA has a SEMA Garage-InGarage-Industry dustry Innovations Innovations CenCenter ter, a facility where tomorrow’s new products will be developed today in this state-of-the-art facility.

Located adjacent to the SEMA headquarters in Diamond Bar, CA, the 15,000 sq. ft. SEMA Garage contains more than $2 million in tools and equipment and was specifically designed as a resource to help SEMA members fast track the process of getting new automotive products from the drawing board to market. Eleven automotive professionals work at the facility full-time, each carefully handpicked for their knowledge, skills and experience.

Containing four different sections (known as “cells”) the SEMA GarageIndustry Innovations Center has been opening in stages since the spring of last year. The SEMA Garage’s ‘cell one’ is a complete emissions-certification lab containing a chassis dyno.

Cell two is a fully-loaded garage with an extensive array of tools and cutting-edge equipment and cell three is a media center containing a photo cove that can accommodate a full-size vehicle for photography. Cell four is a large meeting room to perform training.

The facility is under the direction of SEMA’s Vice-President of OEM and Product Development Programs Mike Spagnola, who has 40 years of specialty auto parts experience, including more than 20 years of product development and project-vehicle work. With a focus on heightening SEMA’s services to its members, Spagnola was hired early last year to collaborate with the SEMA OEM and vehicle technology departments while serving as a resource and liaison for members and automakers.

Spagnola is obviously proud of the SEMA Garage and anxiously looks forward to all of the future possibilities it will facilitate in the future, he said. “When this position presented itself, I jumped all over it. This facility is going to change the industry and that’s why I had to be involved.

Things that SEMA members could not do easily or affordably previously will enable them to get an edge on the market by using the SEMA Garage.”

One of the main functions of the SEMA Garage is to serve as the main location for most of SEMA’s measuring sessions—a SEMA and OEM partnership that provides members with access to upcoming vehicles before they hit dealerships, in most cases. Members take their turns scanning, examining and measuring the vehicles for accurate, hands-on specs used to begin prototyping. In the past, measuring sessions required manufacturers to travel to various locations, typically within a two-day timeframe, and carry the gear needed to record accurate vehicle data. Those who have previously attended SEMA measuring sessions will notice a significantly enhanced set of assets for developing new products at the SEMA Garage, according to Spagnola.

Several exciting things have already taken place at the SEMA Garage, according to Spagnola.

“We’ve already held some pretty significant events here, including our first-ever Mega Measuring Session in July, which featured five popular vehicles for members to preview—the Chevrolet Silverado, Toyota Tundra, Ford Focus ST, Toyota HiLux and Ford Ranger ST. In addition, we held

18 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

the Honda/Acura Measuring Session here, featuring 14 versions of the Honda Grom, CTX700 and Goldwing

to complete the truck as part of the SEMA Cares Charities program.”

At the SEMA Garage, members will be able to not just measure, but also tear down and work on the newest vehicles coming to the marketplace and then use the facility’s 3D printer as well. “With their own measurements and CAD files, members can use our 3D printer to build test products and install them on the vehicle, Spagnola said. “This The SEMA Garage’s classroom can hold about 80 people cutting edge printer is an and is ideal for training, product seminars and media amazing tool and members events are already excited about F6B motorcycles, the Pioneer SXS using it.” all-terrain vehicle and Odyssey miniFor members who want to train van. The ‘14 Acura MDX midsize dealers or consumers on their newest SUV and RLX mid-luxury sedan were products and systems, a full classroom also available for members to explore facility is available for their use at the in 2013.”

SEMA Garage. Holding approxiSpagnola sees the SEMA mately 80 people, it is ideal for trainGarage’s role as being an idea incuba- ing, product seminars and media tor where new products will germinate events. Members can also do installaand grow. “It’s all about information tion training in the garage and perform and these measuring sessions are so dyno runs to show off the newly devaluable for any company that wants veloped products. Video photography to develop products for these vehi- can also be accomplished in the cles,” Spagnola said. “In addition, garage, cove, and classroom or dyno body shops and collision centers that room, according to Spagnola. work on specific brands can come here and measure these cars before they even hit the market. So, when a 2014 vehicle comes into their shop, for example, they’ve already familiarized themselves with it. They now have an advantage and can be more efficient when they’re writing estimates.”

Measuring a vehicle using the latest tools at the SEMA The SEMA Garage was Garage-Industry Innovations Center in Diamond Bar, CA also recently used as the installation hub for the exclusive WDSEMA members are encouraged 40/SEMA Cares Foose Ford F-150. to take advantage of this industryThe build was performed at the SEMA owned facility for product developGarage, in conjunction with Foose ment, fitment, research and much Design and WD-40 Co. and through a more. For more information about the partnership with the Alex Xydias CenSEMA Garage—Industry Innovations ter for Automotive Arts. “This was a Center, including upcoming events great experience and I know we’ll be and availability, contact Mike Spagdoing more things like this here at the nola at mikes@sema.org. garage,” Spagnola said. “It was great to see some of the leading SEMA www.autobodynews.com manufacturers working alongside unCHECK IT OUT! derprivileged teens and young adults

Great News!...

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Contact your local Honda or Acura dealer for details.

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 19

Subscribers:

The Honda and Acura Dealers Listed Here are HO N D A AL AB A MA

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Dept. Hours: M-F 7-7; Sat 8-4 parts@classichonda.com

Dept. Hours: M-F 7-7; Sat 7:30-4 robbutton@rickcase.com

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Dept. Hours: M-F 7:30-6 robertthomas@mmhonda.com

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Dept. Hours: M-F 7:30-6; Sat 8-4:30 parts@bramanhondapb.com

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20 JANUARY SEPTEMBER 2014 2012 AUTOBODY AUTOBODY NEWS NEWS| |www.autobodynews.com www.autobodynews.com

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800-277-7271 704-552-1149 Dept. Hours: M-F 7-7; Sat 8-5 rob.thomas@hendrickauto.com

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800-868-6970 919-790-8228 Dept. Hours: M-F 7-7; Sat 7:30-5 parts@leithhonda.com

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800-482-9606 757-431-4329 Dept. Hours: M-F 8-7; Sat 8-5 fox@hallauto.com

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got repair info?

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Dept. Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup.com

www.autobodynews.com www.autobodynews.com| |SEPTEMBER JANUARY 2014 2012 AUTOBODY NEWS 21

On Creative Marketing

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses.

He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

You Got the Sale— Don’t Mess it Up! with Thomas Franklin

A while back I was sitting in a body shop waiting area, waiting to present a new product. I watched a potential customer pull up in a relatively new BMW. He came in and took a seat.

Front desk people were handling paper work and one customer. Estimators were busy in another room.

The guy waited for about 20 minutes and got up and drove off. Most people hate to wait, but even more than that, they hate to be ignored. I wasn’t a customer. I was there to make a sale so I didn’t mind waiting. But this guy was clearly a good potential customer and his business was lost because of an enormous sales error.

The fact that this guy walked into the shop and wasn’t instantly turned off by an offensive smell, loud noise, or chaotic appearance so that he immediately turned around and left, means he was already half sold on using the shop’s services. When a potential customer walks into a shop, he or she is the end result of many possible marketing efforts. He or she might have been one of many who saw the shop’s advertising and was responding. Or he may have been referred by one of the shop’s prior customers. Or a dealership or insurance company could just have sent him. Or possibly he saw the shop’s signs and decided to come in. But whatever brought him to the door, he was the one who re-

sponded. Dozens of others who saw ads, signs or referrals didn’t come in.

The fact that he did come in made him an incredibly valuable prospect. Losing that one customer wasted all of that marketing effort. And worse than that, since existing customers can be a shop’s best source of new business, all of the additional prospects this customer could have referred are also lost to the shop.

There are three things people hate when it comes to contacting a business: inattention, waiting and interruptions.

There is a difference between waiting and inattention. Waiting is generally a finite length of time defined by some observable element, like a line of people. The phone company will generally tell a caller how many calls are ahead, or how long the wait will be until one’s call is handled. Inattention feels like one is being ignored, as though they are not even there at all. The guy with the BMW got that impression. Shops should take a tip from doctor’s offices: When you come in, they hand you some forms to fill in. They may not tell you how long you will wait, but at least you know you’re in process. Many shops are already remiss in not getting customer information forms filled out to provide future marketing information. Someone coming into a shop should, at the very least, immediately be given a form to fill in.

CARSTAR Relocates Corporate Headquarters to Leawood, KS

Advance Auto Parts Gets New President, Michael Creedon

CARSTAR Auto Body Repair Experts has relocated its corporate headquarters as part of the company’s “aggressive growth plans.”

Previously headquartered in Overland Park, KS, CARSTAR made the move to a new facility in Leawood, KS, on Nov. 25. “This move was a smart business decision as it allows our team to serve our stores and partners more efficiently and effectively,” said David Byers, CEO of CARSTAR. “This allows us to focus corporate resources on building and enhancing our business... and provides us the flexibility and capacity to continue to grow our network across North America.”

Advance Auto Parts, Inc. an aftermarket retailer of parts, batteries, accessories and maintenance items, announced today Michael Creedon will join Autopart International (AI) as President. Mr. Creedon will lead the Company’s efforts to deliver on its unique value proposition of premium parts and expert service. Additionally, Mr. Creedon will be responsible for growing the company profitably by focusing on the continued execution of that value proposition which is focused on the professional technician and Commercial business. He will continue to leverage the resources and synergies between Advance and AI to accelerate their profitability.

22 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

ness.” There are several phases to marketing, but the last phase may well be the most important of all. When a prospective customer comes in, or at least responds, this final phase of marketing begins. Assuming just because the prospect responded or came in means the sale is done, is a dangerous assumption. This is the time the real sale begins. Every effort has to be made to welcome the prospect and overcome any doubt or skepticism that he or she has come to the right place. In stores, prospective customers walk in and turn around and walk out all the time. Stores expect shoppers like these to come and go. But a collision center can’t afford to lose prospects that come in. The price of getting them this far is much too high and the loss of having them leave without buying is far too costly. No one comes in and buys just because they liked the advertising or marketing. They have to be sold.

Some businesses have become aware of how much customers hate interruptions. In a clothing store, a sales lady is waiting on a customer when a rude shopper interrupts her sales presentation asking a question. A welltrained sales lady will immediately say, “You’ll have to wait a minute. My customer has priority here.” And that customer will be highly gratified by that courtesy, treated with the respect and dignity deserved by her being there first. A shop estimator who accepts phone calls and other interruptions while writing an estimate for a customer sitting there, risks alienating that customer and losing the sale.

No matter how good a shop’s marketing may be, a customer who is unhappy with the sales process when actually in the shop never says to herself or himself, “I don’t like the way they’re handling me, but I liked the advertising and marketing so much I’ll stay here and give them my busi-

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Southwest Associations 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.

New Louisiana Collision Repair Association Has Quickly Become a Reality project would be received. By the time they held their first meeting in Baton Rouge, LA, hundreds of collision repairers, vendors and dealers responded to their cry to “make this industry better for all those serving it and especially for our customers”, the association’s main goal, according to Hanks.

At that meeting, Hanks planned to meet with their attorney, an appointment that took place just a week later on December 12 and during which they determined the Board of Directors and worked on the legalities of establishing the association. Though everything isn’t “officially official yet, we are very close,” Hanks shares. Since there are no members yet to elect the board (as will be done in the future), Hanks played a large role in choosing this first Board of Directors. “We brought together several individuals from around the state who, I felt after talking with them, would be suited to

Since their first interest meeting on December 3, the Louisiana Collision Industry Association (LaCIA) has been making rapid progress towards becoming official. In fact, Alysia Hanks Alysia Hanks, reon the job at cently named ExLakeway Collision ecutive Director of Center in the new associaMandeville, LA tion, has been surprised by the lack of challenges faced thus far; “everyone agrees this association is long overdue. The only complaint I get is ‘why this wasn’t started sooner?’.”

But Hanks is getting LaCIA up and running faster than she thought imaginable. This past summer, Hanks and an industry partner discussed the concept and decided to gauge interest, though they were uncertain how the

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be on this initial board.”

At this meeting Hanks was also named Executive Director of LaCIA and she will remain active in everything regarding the association. Additionally, she notes that the meeting was “Excellent! I think we have an awesome group of individuals who will be serving as our first board, and they are as excited about it as I am.”

Another important stride taken at this meeting was the determination of the association’s name. Prior to their first meeting on December 3, the association was tentatively titled the Southeast Louisiana Collision Repair Association, but they quickly dropped the first portion of the name because they have received strong support from shops statewide. The most recent revision of their name was made on the 12th because Hanks and the newly formed board “felt that [Louisiana Collision Industry Association] included more of those who work in this industry.”

Including more of the industry is important to Hanks because “I think we are dealing with a nationwide industry crisis, and what better way is there than coming together as a group to overcome these obstacles?” Furthermore, in an email distributed to those who have expressed interest in the association, Hanks noted, “I feel the sense of urgency we all have, and something has to change. Whether we like it or not, we have a nationwide industry crisis going on. Other states are finding their strengths in numbers and proactively pursuing their common interests together. I do believe that by doing nothing, it only ensures we lose… We all have so much to learn from each other, and we are more powerful together.”

Interest in LaCIA has been seen not only by industry professionals in LA. Other local associations have also been very supportive of this endeavor.

John Mosley and Steve Plier, presidents of the Mississippi Collision Repair Association (MSCRA) and the Alabama Automotive Repair Industry Society of Excellence (ALARISE) respectively, attended the meeting on December 3 to show their support and offer guidance. Other speakers in-

cluded Attorney John Eaves Jr. and industry consultant Ron Perretta.

Hanks is grateful for the support, explaining “we all want this industry to be the best it can be so we can all have a better livelihood.” Hanks is hoping that the association will be in place in time for the multi-association meeting on April 11–12 in Biloxi, MS, where Texas, Alabama, Mississippi, Tennessee, Florida and Georgia will be represented.

Local suppliers and jobbers have also been extremely supportive of the initiatives relating to the new association, and though LaCIA will be run solely by shop owners and managers, the suppliers are providing monetary support and helping spread the word as things get off the ground. According to Hanks, “when we are all doing better, they know they will naturally benefit from it, and they [want] to help make it better for everyone. They want all of us to succeed. We couldn’t have asked for a better partner than that.”

Hanks says that Louisiana Automotive Dealers Association (LADA) president Bob Israel has emailed her to find out more information in order to get dealerships with collision shops involved. LADA was represented at the meeting.

“We’re hoping that, once we get the dealers and vendors backing us, we can really take a stand against State Farm and anything else,” said Hanks.

“Education will be another top priority. The Mississippi shops said once shops started talking from state line to state line, it cut back on a lot of the grief insurance companies can give us when they’re standing here saying, ‘We won’t pay for that,’ or, ‘No other shop charges for that.’”

The importance of collaboration is emphasized in LaCIA’s mission, as displayed on their Facebook page, which is to “serve in the best interests of the collision repair industry through education, support, leadership and business connections in our trade. We hope to achieve the open sharing and exchanging of ideas which will help make this field better for everyone who serves it. From the porter to office assistants to shop owners and dealers, See New Louisiana Association, Page 24

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 23

Social Media for Shops

Are the Yellow Pages Truly Dead? with Ed Attanasio

Many people predicted that movie theaters would close right and left when VHS tape players started appearing in stores, but you know how that went. With 3D and IMAX, movie theaters are more popular than ever and buying a ticket to see one of the newest super hero films will cost you an arm and a leg. When digital book reading devices came out, experts were claiming that real books printed on paper were soon going to be obsolete, but that hasn’t happened either.

So, when I keep hearing that the Yellow Pages are dead and body shops aren’t using them anymore, I’m hesitant to jump on that bandwagon, at least for now. I’m not going to be one of the industry’s pallbearers until I know the facts and talk to some experts. So, I did my due diligence and polled advertising professionals and marketing gurus from different parts of the country. I even tried to talk to the people at the Yellow Pages, but after leaving multiple phone messages, they never called back. I gave them a chance to make their case, but they chose not to, which might tell you something right there.

Last month, the Yellow Pages landed on our porch and I promptly recycled the book again. This ancient directory is delivered to my house several times a year and it always ends up in the trash almost immediately.

But honestly, am I the only one who does this? It seems like such a waste.

Every time the new Yellow Pages arrive, I also notice that they’re smaller and smaller. Back in its heyday, the phone book was huge and big enough to use as a chair booster for my niece or act as an effective door jam. But, Continued from Page 23

New Louisiana Association

we are here to provide everyone a voice and hope for the future of our livelihood.”

Though the association’s agenda won’t be established until the next meeting in January, Hanks has a lot of goals and aspirations for LaCIA; “we want to know not only how to make

now my niece is grown up and the phone book does not weigh enough to keep any door open. At 1,200 to 1,500 pages, the phonebook was a big part of every American household as recently as 10–12 years ago, but the one that arrived the other day contained only about 500 pages.

Yes, the phonebooks are a little thinner, but the new ones get delivered every year like clockwork, so why is everybody declaring the demise of the Yellow Pages? Is it propaganda disseminated by Google, or is it actually true? Today with the Internet, cell phones and other smart devices, information about businesses and their phone numbers are so much easier to find. Back in the day, we had to rely on the Yellow Pages and hoist around a huge book while turning countless pages. Now with a couple clicks, we can get this information and a lot more within literally seconds. Plus, it’s a greener alternative because trees don’t have to die as a result.

I talked to an individual recently who has been selling ads for the Yellow Pages for the past 15 years and his mantra was “If it ain’t broke, don’t fix it!” He chose to remain anonymous.

“Everyone is saying we’re going online and the actual phonebooks are archaic, but you should ask all my clients that,” he said. “My faithful Yellow Page advertisers who know how to use the medium are tracking great results. One reason is that many of their competitors have opted for other forms of advertising. So, they can now dominate their market. People who are still willing to spend money and choose to market themselves to local businesses use the Yellow Pages and their numbers are keeping them in the

our customers happy and feel in control of their decisions, but we want to know how to make this industry, as a whole, happy. We have already talked about training… we have dealers who are already on board, and their associations have made waves in the legislation, and we hope to follow in their footsteps, so legislation is a very important part of what we need to do.

There’s so much we can accomplish with this association; it should be an

24 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

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

book.”

Jim Schriver is a media consultant who works with small to mediumsize companies in the San Diego, CA, area, advising them on emerging media and online marketing. Schriver says that the Yellow Pages are no longer effective for body shops and that’s why they’re opting out right and left.

“If you’re a landscaping company, a plumber or you clean pools, the old school phone books are probably a good fit for you, because believe it or not, people still refer to them for services such as these,” Schriver said. “Even small retail operations with 1–2 locations, such as florists, tuxedo rental companies and clothing stores will get some significant response from the Yellow Pages.

But for body shops, I would say they’re not an ideal match. In a DRPdriven environment, the process for finding a body shop usually goes through an insurance company. It’s rare that someone would go to the Yellow Pages to find a shop, because their insurer has already provided a list of their preferred shops. The money that a collision repairer is spending on the Yellow Pages can be spent much better elsewhere, such as online advertising, outdoor advertising and/or broadcast. The overall goal is to get your name out there, so that when the potential customer gets in an accident, they remember your name—it’s basic branding. But the Yellow Pages don’t achieve that and that’s why I tell body shop owners to stay away.”

Larry Sawyer owns Da Bomb Media in Phoenix, AZ, a company that helps companies on web site development, SEO and social media. Sawyer

exciting time for all involved, and I will work tirelessly to make sure every member is heard.”

Hanks plans to support the Right to Choose because “we believe it is an excellent business practice to let the consumer decide where to get their vehicle repaired. If the business is shady, they won’t last very long because the customer base will leave, but if we have entities steering customers to those shady operations, they won’t go

is advising all of his clients to bail out of the Yellow Pages yesterday, if possible. “One of my clients was spending $1,300 every month on the Yellow Pages and back in the 1980s it got him a ton of business,” Sawyer explained.

“But now, it’s a waste of money, because people are relying on the Internet. The Yellow Pages tried to develop an online entity, but it was too late and Google has already claimed that spot.

So, I took my customer’s $1,300 and invested it in a lot of online advertising programs, offered by Yelp, Google, Facebook and other forms of social media. As a result, they’re getting some amazing results and that $1,300 is going a long way. I can’t say that the Yellow Pages are dead, but they sure are limping along!”

David DeClue owns a marketing company called Tah Dah! in Muncie, Indiana. Even though most of his clients can’t be considered technically savvy, they still know that the Yellow Pages are experiencing their final days.

“Sure, some companies are still hanging on to the old days and advertising in the Yellow Pages, but most of them are getting out and embracing other forms of print advertising,” DeClue said. “The phone carriers are getting out of the directory business, which is a bad sign. In 2002, usage of the Yellow Pages was around 15 billion impressions and now it’s been cut in half. Idearc, the company spun off when Verizon divested itself of its Yellow Pages division when it filed for Chapter 11 bankruptcy in 2009, along with R.H. Donnelley and Ambassador Media Group the same year. So, to answer your question—the Yellow Pages are still alive, but just barely.”

away and will only cause destruction in our way of life. We, above all, have our customers’ best interests in mind as we go forward with this. They have a right to feel safe after they have their investment (automobile) fixed by a company they trust.”

For more information about LaCIA and their progress or to join, contact Executive Director Alysia Hanks at: alysia@lakewaycollision. com.

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 25

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

Saying That Insurers Force Shops To Repair Cars Improperly is Nothing More Than ‘Crying Wolf’ Shops repair vehicles and insurance companies reimburse insureds for their loss. That is a simple explanation as to what happens after an accident.

So how is it possible that something so simple can be so confusing, challenging and rife with accusations of impropriety?

pair shops actually know how to do a proper and safe repair.

I would challenge any shop in the United States to produce ONE single example of an insurance company refusing to pay for the proper repair or replacement of a safety related component or structural repair. If you do have an ex-

After the most recent series of industry meetings, rants, press releases and whining sessions about insurance companies forcing shops to repair cars improperly, I offer you two words: get real. This is the most pathetic, unsubstantiated claim I’ve ever heard. My compadres in the insurance industry are equally fed up with this biased, unprofessional and unfounded allegation. There’s been more crying and sniffling than you would hear in most nurseries and daycares across the country. I’m inclined to start producing “No Crying” buttons to be passed out at the industry’s next event.

In the movie, “A League of Their Own,” Tom Hanks’ character said ‘there’s no crying in baseball.’ I am here to say that there is ‘no crying in the collision industry.’

If you are not familiar with the crying that I’m talking about, let me explain. Some collision repair shops are trying to convince the media and industry that insurance companies refuse to pay for a safe and proper repair, and that that’s what leads to bad repairs. The only thing more ridiculous than that is saying all collision re-

ample, please also include the name and contact information of your customer so I can let them know that you knowingly repaired their car wrong because their insurer wouldn’t pay.

I think it’s time we truly identify the root cause of all this noise and melodrama. There are items that shops and insureds are negotiating that shops aren’t being reimbursed for – items that have nothing to do with the safety of the repair. That is the issue.

Nobody is asking you to section a part in an incorrect location. Nobody is telling you not to replace a damaged safety related component so the insurance company can save money. Nobody is telling you to straighten a part that requires replacement when it has been compromised.

The grandstanding that is taking place is unproductive and playing out worse than an episode of “All My Children.” Which, by the way, was cancelled.

The fact is there are some bad actors in the industry who are more interested in being on the pulpit and acting like they are auditioning for a role in “Desperate Housewives” than they are in trying to resolve real prob-

26 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

lems. I suppose not resolving the problem allows them to stay in the limelight and at the forefront of controversy. Crying wolf usually will get the attention of someone once, maybe twice. But the third time is usually the end of the road.

I’m suggesting that you may have hit that end. So you have a few choices. Keep crying and become more irrelevant. Turn around with your tail between your legs and find something else to champion. Or perhaps travel a different road and look to find ways to help resolve some of the inherent conflicts that even I am willing to acknowledge exist.

I would also request that if you are going to send me an example of an insurance company not paying for a safe and proper repair, don’t focus on aftermarket parts. Aftermarket parts aren’t the Second Coming of Satan.

They have been installed on millions of cars since the late 1970s and early 1980s. Please provide me a list of the

deaths and lawsuits won where it was proven that aftermarket parts were the cause. It shouldn’t be that hard if it’s as prevalent an issue as many of you seem to think. You have your choice of millions of cars on the road with aftermarket parts.

Having a tough time thinking of even one? That’s kind of what I thought.

Nobody listened to the boy in the old story who cried wolf, and I’m fairly confident nobody is listening to the current crop of industry whiners.

Identify what your true issues are and stop trying to mask them with rants of “safety” and “someone is going to die.”

If I completely missed the mark and insurers are refusing to pay for safe repairs, you have a responsibility to your customer and business to do the right thing. Share your story with “60 Minutes” and maybe you can retire a very rich person. The boy who cried wolf but was right… now who wouldn’t pay for that story?

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San Antonio Repairer Tells TV News He’s Blowing the Whistle on Insurance Companies Pressuring Shops to Use Substandard Parts A San Antonio collision repair shop owner says he is blowing the whistle on car insurance companies and was interviewed by Local News Reporter Emily Baucum of News 4. The news report was broadcast on Nov. 28.

Dale Tabaka says insurance companies are pressuring body shops to use parts from junkyards to fix the most important parts of your car—the steering and suspension.

Tabaka says the way a major insurance company wants to fix an elderly woman’s car is just plain irresponsible.

Inside Dale’s Collision Repair, there’s a baby blue Chevy Cruze that was rear-ended a few months ago.

“This car is owned by a little old lady who could literally be your mother or your grandmother,” Tabaka says. He says she’s insured by the number-one company. The company will pay for a new axle—but as [News 4 reported], not all axles are created equal.

“We not only want to fix it right,” Tabaka says. “We want to fix it according to industry standards.” He showed News 4 a brand-new part

from the factory that meets those standards. “This part is approximately $1,100,” Tabaka says. But for half the price, the insurance company wants him to use a rusted part it got from a salvage yard, he said.

Dale Tabaka is Interviewed by News 4

“One of these ears on the axle is bent in,” Tabaka showed News 4.

He said he can’t guarantee that when the car’s on the highway, the rusted axle won’t break and put lives in danger. “I’ve had cases where other shops have called me and said, ‘Hey, I put this junkyard part on the way the insurance company wanted us to, and as we were driving, the hub bearing froze up,’ ” Tabaka said. So he told the insurance company he’ll use their junkyard axle, but only if

he can replace all the moveable parts so it meets industry standards.

“They turned a blind eye,” Tabaka says. “They said they don’t recognize those standards.”

“The shocking truth is,” said the news report, “most car policies allow the insurance company to use whatever part they want.”

“Pretty much all the insurance companies are doing it,” Tabaka says. “And what scares me is, the average consumer has no knowledge of it.” He’s fed up, and becoming an advocate for customers like the elderly woman who owns the Chevy.

“At the beginning of the month I actually put her in a rental car on my own dime,” Tabaka says. He’s going to bat with her insurance company and educating drivers, one car at a time.

Read More and see the interview at: http://www.news4sanantonio.com/ news/features/top-stories/stories/collision-repairman-blows-whistle-junkyard-repairs-6133.shtml. See also http://www.youtube.com/watch?v=mBezBiei2Y&feature=youtube

Asbury Automotive Group Donates $120K in Parts

Atlanta-based Asbury Automotive Group, Inc. has donated $120,000 in parts to local high school and college collision school programs through the Collision Repair Education Foundation. The donations, which include bumper covers, hoods, fenders and other parts, provide students with the opportunity to practice collision repair on current model vehicle parts. As collision instructors are facing reduced budgets, these types of donations are vital for the student’s technical education. “Our dealership groups across the country are proud to be a part of this program, as we help to prepare these students for their future, and our future as an industry,” stated Asbury’s EVP and COO Michael Kearney. Collision Repair Education Foundation Director of Development Brandon Eckenrode noted, “It has been a pleasure working with Asbury to coordinate the donation of parts from their numerous dealerships to collision school programs. Not only do these donated parts help the programs, but they also help introduce the instructors to dealership staff for future support opportunities.

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Media Matters

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

For Body/Paint Tech Keenan Hons Life is Reality TV on Fast ‘N Loud with Ed Attanasio

Twenty-six years old and already a reality TV show star? For Body/Paint Tech Keenan Hons, his 15 minutes of fame happened fast and randomly.

One day, he was working at a body shop and the next day he was on Fast ‘N Loud (Discovery Channel), a hit reality show starring motor mastermind Richard Rawlings and mechanical prodigy Aaron Kaufmann, as they search up and down through Texas and surrounding states for forgotten and derelict classic cars to buy and restore at their Gas Monkey Garage in Dallas, TX. In each episode, Richard, Aaron and his crew work day and night to finish a classic car and deliver it to auctions with the goal of making money and turning heads. But the same question seems to come up every time they do a build—will their blood, sweat and beers translate into cold hard cash?

Each episode starts when Richard wheels and deals for a good price on a vehicle, and then it’s back to the Gas Monkey Garage to come up with the design plan and begin the major teardown. Then, the major work (and all of the fun and confusion) begins. It’s always a race against the clock to Keenan Hons, 26, get these cars finwent from a ished because time body/paint tech to reality show star lit- is money at Gas erally overnight, Monkey Garage when he landed a and the faster they job on Fast ‘N Loud finish their cars, the (Discovery Channel) quicker they can get them to auction. That’s the basic premise of Fast ‘N Loud, a show that has gained in popularity and was recently picked up for its third season.

For Hons, he might as well call the show Fast ‘N Unexpected, Fast ‘N Radom or surely Fast Money, because Keenan works full-time at the Gas Monkey Garage and gets paid twice— as a body tech restoring some of the finest cars in the world and as a reality star as well. Not bad for a guy who just turned 26. We sat down with Keenan recently to discuss his role on the show and how it has changed his life.

Q: You’re not listed on Wikipedia yet? Every reality star gets their own Wikipedia page.

A: Maybe I should write one?

Q: If the show keeps getting good ratings, they’ll get someone to do it for you (both laugh).

A: That’ll be fun.

Q: Tell us how it all happened from being a barely paid body/paint tech to a reality star?

A: I started going to my local community college Tarrant Community College (TCC) in Fort Worth, TX to study paint and body right out of high school. I’ve always been a car guy and my best friend Kenny and I would work on cars all the time. We both decided to go to school to study paint and body, but he died in a motorcycle accident shortly after moving to Fort Worth. I went through their whole collision repair program—taking body classes the first year and paint the second year. I always liked the paint side of the business, but I realized you have to do the body work first, so I did the body [training] first, but my heart was in paint. When I went to Fort Worth to attend school about seven years ago, I moved into a house that was just two blocks away from KC Mathieu’s house. (KC is the painter on Fast ‘N Loud) I noticed he had a few hot rods out front, so one day I just went over there and started talking to him. It was a total coincidence that he’s a painter and I was studying paint in school at that time.

Once I got to know KC, I saw that he was always working on something interesting, either at his place or at his dad’s shop, so I began going over there to make a little money on the side. After that, KC opened up his own shop and there was more work for me to do.

Q: At that time, Fast ‘N Loud was still not in the picture, correct?

A: Yes, the whole thing was so random. KC and I would joke all the time saying we should have our own reality show, but we never even suspected it would come to this. I worked with KC for almost two years at KC’s Paint Shop after getting out of school.

After a while, KC wanted to get away from the shop and pursue other things,

28 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Q: The two main stars of the show are Richard Rawlings and Aaron Kaufman and they seem like a formidable duo. Rawlings finds the cars and Kaufman manages the restoration and they get into some heated discussions.

What’s your relationship with Richard and Aaron?

A: Let’s put it this way— Richard enjoys his life and frankly, I can’t keep up with him! The older ladies are in love with him and it cracks me up. If you look at the show’s Facebook page, you can see he’s got quite a following. Aaron is very meticulous about the cars and they seem to work well toHons is always right in the middle of all the craziness feagether. The biggest argutured on Fast ‘N Loud ments they’ve gotten into revolve around time and money, of there and doing side jobs for KC. course. Aaron wants the best build he Then, he got on the show and I started can and Richard is always watching prepping cars for the first season of the time. Both Richard and Aaron act Fast ‘N Loud off-camera and behind the same on-screen and off-screen. the scenes. Finally, they put me on for Both of them have a lot going on, so the final show of the first season (The it can get crazy at the shop. Flipping Apache episode). That was really exthese classic cars is a crapshoot, and citing! you can see that they don’t always Q: You had never been on TV bemake money. Now with the popularfore? ity of the show, we’re getting tradeA: No. At first, seeing myself on offs with the cars from companies TV was strange, but now I’m used to that are sponsoring the builds, so the it and it feels normal. I think everyrisk is not as much as it was during one on the show was shocked when it season one. It helps making the build started getting great ratings. When I less risky, but it still is a gamble gave two weeks notice and quit my every time we do a car. job at Richards, I figured I would give Q: Has the show changed your this reality show thing a three-month feelings about collision repair? shot. The failure rate of reality shows A: Yes, definitely. Meeting KC is very high, but right off the bat this show was a hit. The numbers just kept and getting on Fast ‘N Loud really got me excited about collision repair and climbing and the buzz about the show painting cars, because for a while started to build. This is something big, there I was seriously thinking of getI thought. I don’t have to go back to ting out of it. I was planning to go fixing cars—at least for now.

Q: I’ve heard there’s no reality in back to school and study computer reality television, is that true? science, honestly, but the experience A: Not on Fast ‘N Loud. Everyof being on a show like this re-ignited thing we do is real and nothing is fake, my passion for this industry. And the but in certain cases we’ll do somerest is history. thing and they won’t’ get it on film, so we have to reenact if for the camera.

The camera crew has us re-do it, but it’s not like we’re making it up. It’s definitely reality, but it might be www.autobodynews.com shown in a different order from what it CHECK IT OUT! actually took place. so I got a job as an assistant manager at a MAACO location. I did that for almost a year and it was a very fastpaced environment and then later I got a job at Richards Paint & Body Shop.

KC and I worked there together and we were still doing work on the side.

KC left Richards and I kept working

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Northeast Associations 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.

LIABRA’s Membership Approaches 500 Shops, Repairing 250,000 Vehicles Annually Since the mid-1970s, the Long Island Auto Body Repairmen’s Association (LIABRA) has been devoted to serving one of the busiest motoring regions in the country. Serving Nassau, Suffolk and a portion of Queens counties, LIABRA maintains a finger on the pulse of the industry, monitoring technological advances, educational requirements and legislative initiatives in order to disseminate this important information to their member base.

The association was formed when several collision shops recognized the need to acquire additional knowledge and establish awareness of the industry’s concerns in their state capitol. To achieve this, they gathered a group to speak with one voice and started holding general meetings to gauge interest until they were able to formally charter the association in 1975.

What began as a small collection of shops quickly grew to approximately 100 members by the early 1980s when current Executive Director Ed Kizenberger took over.

In subsequent decades, LIABRA’s membership has grown to around 500 shops that repair, on average, a quarter million vehicles annually.

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Comprised of collision repair professionals devoted to the advancement of the industry, LIABRA’s mission is “to create an environment of professionalism, respect, accountability, excellence, enthusiasm and the ability to collect fair and reasonable compensation for collision repairers who properly restore vehicles to their pre-loss condition. We will achieve this through

consumer advocacy, education, legislation and communication.”

In order to propagate this mission, the association has developed the following four aims: to develop organizational framework in order to give all members, including the smallest shop of the association, fair representation in the successful pursuit of its business interests; to develop an exchange of information and ideas beneficial to shop owners; to unify body shops and develop a code of ethics; and to take appropriate action in an effort to discontinue any unethical practices to which we, as an industry, are subjected.

As such, LIABRA’s current goals focus on continuing to represent their members and to provide fair representation in all aspects of their businesses.

They also strive to distribute necessary information and to serve as a resource for members with questions about various aspects of the industry.

Kizenberger believes that LIABRA’s role as a resource for members is one of the most important services they provide. “It is invaluable for us to be able to discuss problems with our peers and share our experience so that we can stay connected and work together on resolving problems. As individual shops, it is easy to identify problems, but it’s difficult to find solutions unless you work together – LIABRA provides a forum for working together.”

In addition to collaborating with other businesses within the industry, LIABRA feels it is imperative to combat outside interference that seeks to gain control of the collision repair industry. According to Kizenberger, “we need to prevent outside entities from dictating our practices. Our goal is to safely repair the car, so they need to allow us to do our job of utilizing training, equipment and knowledge to safely repair our customers’ vehicles.”

In fact, Kizenberger believes this interaction with insurers is one of the largest challenges facing the industry, along with keeping current with changing technology, understanding how the marketplace is evolving and deciphering how both of these will impact the frequency of accidents. He believes these problems can be overcome by

30 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Flo Pratt and Jackie from Competition Infiniti greet members at the door with raffle prizes

promoting greater understanding throughout the industry. Ways to acquire this understanding include attending training seminars, such as the BMW seminar presented at LIABRA’s meeting on November 19, 2013, and becoming more involved with trade as-

sociations which can present these concerns to legislators.

LIABRA’s view of insurer influence has led to their distaste for PartsTrader. Kizenberger explains, “we are adamantly opposed to any outside entity specifying the vendors, processes and so forth that collision repair professionals use. We feel that it is direct tortious interference which absolutely erodes the freedom of business and the open market concept that America was built on. Any influence based on pricing could result in an inferior repair, plus programs like PartsTrader interfere with the business relationships that shops have developed with vendors over many years. It definitely affects the market in a negative way.”

Regarding Right to Repair, Kizenberger believes that repair documentation “should not be proprietary information. Consumers should have access to information about how to repair their vehicles, and the industry as

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a whole needs access in order to safely the Right to Choose and is written to repair those vehicles. Manufacturers benefit the consumer, as well as the colshould release documentation in a lision repair industry. Because of their timely manner; it benefits no one but strong beliefs about insurer-mandated them to retain a monopoly.” parts procurement programs, LIABRA LIABRA constantly interacts with has also proposed the Parts Procuregovernment regulators to encourage an ment Bill, legislation prohibiting insurexchange of information and ideas ers from requiring shops to use specific which will be beneficial to shop ownvendors, and they have acquired strong ers. They were instrumental in estabsponsorship for their proposed bill. lishing an industry code of ethics, and Their other proposed legislation perthey continue to develop consumer protection legislation to ensure the highest quality and safety standards in the collision repair industry. The association is currently working on their legislative agenda for 2014 which will include their Annual Lobby Day visit to the state capitol on April 29, 2014.

The 2014 legislative LIABRA members enjoy dinner and conversation agenda includes three proposed legislative acts thus far. The first tains to the proper installation of glass is a Free Market Protection/Fair Claims as they urge their state legislators to align New York’s standards to be conBill which addresses anti-steering issues and price caps, plus it defines what sistent with federal safety standards.

LIABRA also continues to work constitutes unfair claims practices. The proposed bill also includes support for with various agencies regarding labor

rate issues. The association has nearly completed their yearly Labor Rate Survey, and they intend to publish the results in the next issue of their monthly newsletter. This newsletter is only one of the perks shops receive from membership in LIABRA; benefits also include monthly meetings and educational seminars which provide the knowledge necessary for repairers to understand the changes occurring in the industry. Also, members can receive discounts on credit card processing, advice on their insurance and so much more.

Kizenberger believes that there are many real challenges involved in maintaining operations of LIABRA, but these are the common problems that all non-profit organizations face, such as obtaining volunteers and providing useful information for their members; “the maintenance of the group correlates somewhat to claims frequency reductions, affecting the numbers of shops that will be performing repairs in the future, and we are constantly challenged to provide real value to our members because, even if the number of shops are reduced, those still standing will continue to need representation for their interests.”

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©2013 MINI, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks. www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 31

I-CAR Announces Partnership with IBM Kenexa to Develop New CMS I-CAR has announced a $2.6 million partnership with IBM Kenexa to design a new content management system(CMS) that will streamline and improve the development, delivery and quality of collision repair training across the United States.

I-CAR launched its new training system on Dec. 9, with the debut of its all-new Introduction to Carbon Fiber Online course. An additional 40 courses, spanning all I-CAR training delivery methods, will follow shortly on Dec. 16. All future courses will be developed and delivered in this training system, and the entire I-CAR curriculum of over 100 courses will be updated and enhanced by the end of 2015.

To express the significance of this investment, consider a comparison: LCMS is to I-CAR what CAD (computer-aided design systems) has been to the automotive industry. This new training system simplifies management of curriculum content and will significantly reduce the time needed to develop or update courses, allowing I-CAR to bring more relevant training to the industry at a much faster rate. Benefits will be evident across all I-CAR delivery platforms, improving not only the learning expe-

rience for students, but also improving the delivery tools available for instructors nationwide.

Bringing new and updated courses to the industry more quickly is only a fragment of the improvements the industry will experience. ICAR will enhance all of its delivery platforms; self-study online, instructor-led classroom, instructor led virtual training, as well as the in-shop welding training series will merge with the ability to: • Improve student learning comprehension and retention • Enhance the quality of class content with HD-quality videos and improved interactivity • Offer modern educational features such as more intuitive online navigation • Provide an online reference library that will make class materials readily available to students 24/7, replacing the need to rely on and store CD-ROMs as reference material. The reference library also includes automatic, real-time course updates through personalized myI-CAR training accounts, so once the class is taken, the student will always have access to the most recently updated material for reference.

Woman Fights Ticket for Driving with Google Glass

A California woman pleaded not guilty to what is believed to be the first traffic citation alleging a motorist was using Google’s computer-in-an-eyeglass. The device, known as Google Glass, features a thumbnail-size transparent display above the right eye.

The technology will not be made widely available to the public until 2014, but defendant Cecilia Abadie was one of about 10,000 “explorers” who received the glasses earlier this year as part of a tryout.

Her case touches several hot-button issues, including distracted driving, wearable technology that will one day become mainstream, and how laws often lag technological developments.

Abadie was pulled over in October on suspicion of going 80 mph in a 65 mph zone on a San Diego freeway.

The California Highway Patrol officer saw she was wearing Google Glass and tacked on a citation usually given to people driving while a video or TV screen is on in the front of their vehicle.

Abadie, a software developer and tech true believer, pleaded not guilty to both charges in San Diego traffic court.

Her attorney William Concidine told The Associated Press that she will testify at a trial scheduled for January that the glasses were not on when she

was driving, and activated when she looked up at the officer as he stood by her window.

The device is designed to respond to a head tilt by waking itself up.

Concidine also said the vehicle code listed in the citation applies to video screens in vehicles and is not relevant to mobile technology such as Google Glass.

The CHP declined comment on Concidine’s assertions.

“This has to play out in court,” spokeswoman Fran Clader said.

At the time of Abadie’s citation, the agency said anything which takes a driver’s attention from the road is dangerous and should be discouraged.

The lightweight frames are equipped with a hidden camera and tiny display that responds to voice commands. The technology can be used to do things such as check email, learn background about something the wearer is looking at, or to get driving directions.

Legislators in at least three states - Delaware, New Jersey and West Virginia - have introduced bills that would specifically ban driving with Google Glass. Chris Dale, a spokesman for the tech giant, said he was not aware of any other tickets issued for driving with Google Glass.

32 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

The undertaking of this new training system has been over two years in the making, and is in response to changing needs within the industry.

“Vehicle manufacturers continue to launch a growing number of new models and technologies and I-CAR is keeping pace to support the evolving training needs of the industry,” says John Van Alstyne, I-CAR CEO & president. “Over the coming threeyears, we expect to see over 200 new or re-engineered vehicles launched in the U.S.. That’s a lot of change for the industry to absorb. By enhancing our training development and delivery, ICAR is better poised to arm the industry with the knowledge and skills needed, doing so at the speed of change, to address the technical tsunami that is sweeping our industry.”

IBM’s Kenexa focuses on social business capabilities while gaining actionable insights from the enormous streams of information generated from social networks every day.

Kenexa is also a leading provider of recruiting and talent management solutions.

For more information on I-CAR, please visit them online at I-CAR.com.

ASE Awards Top Scorers on Certification Tests

Forty-five automotive professionals were recognized at the fall board meeting of the National Institute for Automotive Service Excellence (ASE) held at the Fairmont Hotel in Newport Beach, CA. The annual awards banquet spotlights top scorers on the ASE certification tests.

Thirty-eight different companies from both OEM and aftermarket segments sponsored the individual technician recognition awards in the auto, truck, collision and parts categories, along with three instructor awards. In addition to looking for top scores on ASE tests, award sponsors examine on-the-job excellence, community service and other factors when selecting honorees. “ASE has been honoring the best of the best in our industry for more than 40 years, and this year we recognized fortyfive outstanding individuals from all across the nation,” said Tim Zilke, ASE president and CEO. “We couldn’t do this without the support of our many award sponsors, whose ranks include some of the best-known names in the industry. Their commitment to excellence is reflected in the talented individuals we recognize each year.”

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I-CAR Launches Introduction to Carbon Fiber Online Course I-CAR® is launching Introduction to Carbon Fiber (CFR01e), a new online course specifically designed to help collision industry professionals understand how to work with carbon fiber.

Carbon fiber is one of several technically advanced materials becoming more prevalent due to its outstanding strength to weight ratio, contributing to automaker light- weighting initiatives in support of efforts to achieve increasingly challenging CAFE standards. The online course, Introduction to Carbon Fiber, helps to identify and understand this high-tech material and dispels related common collision repair myths. The course features interactive exercises, detailed videos, high-quality graphics, and current vehicle examples to demonstrate repair and replacement options for carbon fiber. The 2-credit hour course meets training requirements for the Gold Class Professionals™, Platinum Individual™ and Professional Development Program™ (PDP) programs for the following roles: Non-Structural Technician, Steel Structural Technician, Aluminum Structural Technician, Estimator, and Auto Physical Damage Appraiser. See the I-CAR website, www.i-car.com.

Mitchell International Becomes Associate Member of ARA

The Automotive Recyclers Association (ARA) announced that Mitchell International, Inc. is the most recent associate member of ARA. Mitchell International is a leading provider of software and services to the automotive claims and collision repair industries. “We are delighted that Mitchell has become part of the ARA family,” said CEO Michael E. Wilson. “This announcement formalizes the constructive working relationship that ARA and its members have had with Mitchell International over the years.

The ARA looks forward to our mutual efforts with Mitchell International and other stakeholders in the estimatics’ community to increase the availability of original equipment (OE) recycled automotive parts in estimatics platforms used by repair professionals. As highlighted in the Association’s strategic plan, ARA is committed to the enhancement of members’ access to and supply of more reliable, consistent, and accurate parts data. Wilson added, “Access to quality OE data as well as enhancing insurance-quality parts data through greater utilization of the ARA parts grading codes, standards and certification programs is a top priority.”

Canadian Equity Pension Fund Buys Caliber Collision

Canada’s OMERS Private Equity (OPE) announced that it, along with existing management, has acquired Caliber Collision Centers from private equity firm ONCAP, Onex Corporation’s mid-market private equity platform. Based in Dallas, Texas, Caliber is the largest independent provider of automotive collision repair services in the U.S. with a network of 157 collision centers located in California, Texas, Arizona, Nevada, Oklahoma and Colorado. The Company has approximately 3,700 employees and repairs more than 285,000 vehicles annually. “We are thrilled to partner with Steve Grimshaw, President and CEO of Caliber, and his management team for the Company’s next phase of growth,” said Tim Patterson, Senior Managing Director at OPE. “We believe that Caliber will continue to distinguish itself as the market leader in the highly fragmented collision repair industry in the years ahead.” Caliber Collision Centers is the largest collision repair company in America with 157 I-CAR Gold Class Professional certified collision repair centers in California, Arizona, Nevada, Texas, Oklahoma, and Colorado.

Seidner’s Wins Completely Elite Award for CSI Scores

Seidner’s Collision Centers was recognized for Outstanding Customer Service by TenPoint Complete at the Collision Industry Awards ceremony held in November in Las Vegas.

Michael Sturgis (left) presents Steve Seidner with the Completely Elite Award

The Completely Elite Award is a national award for repair facilities using TenPoint’s CSi Complete Customer Satisfaction Survey solution. Seidner’s Collision Centers established itself as the leader in Customer Service & Experience, Employee Training & Certification, Industry Leadership & Participation and Community Service. “Steve Seidner has set, and clearly delivered on, his goal to deliver customers an Extraordinary Repair Experience,” said Michael Sturgis, Partner with TenPoint Complete.

NHTSA Says Safety Ratings Cannot Exceed 5 Stars

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U.S. regulators blocked automakers from promoting vehicle safety ratings of more than 5 stars, three months after Tesla Motors Inc. touted an outsized score on its Model S electric car. The move adds to tension between the National Highway Traffic Safety Administration and Tesla, now grappling with bad publicity and a federal probe after a series of car fires raised questions about the safety of the Model S. Tesla said in late August that the Model S had achieved a score of 5.4 stars, a figure based on Tesla’s independent analysis of NHTSA data. Still, the statement prompted NHTSA, which issues the star ratings, to update its marketing guidelines. NHTSA now explicitly bars companies from promoting safety scores higher than 5 stars. The updated guidelines also state that the safety scores are always whole numbers.

“Tesla’s claim was an example of the potential confusion and inaccuracy that could be caused by incorrect use of the 5-Star ratings information in advertising and marketing statements,” NHTSA said in a statement.

Tesla declined to comment. The 5-star safety rating system has been used by NHTSA since model-year 1994 vehicles and the agency does not

issue scores above that threshold.

“Advertisers who claim more than 5 stars are misleading the public,” NHTSA said, adding that violations could trigger action by federal or state authorities.

NTHSA launched a probe this week into the Model S following three car fires that raised questions about the safety of the car’s design.

Tesla CEO Elon Musk said in a blog post that the automaker requested the recall, but that statement was flatly denied by NHTSA administrator David Strickland.

The first fire was reported in early October and the bad publicity has lopped off more than 37 percent of Tesla’s market value since Oct. 1.

NHTSA’s investigation into the Model S could take up to six months and cost Tesla about $13 million, Barclays Capital analyst Brian Johnson said in a research note Wednesday.

“The monetary cost of a recall is likely manageable,” Johnson wrote.

“The real issue is to what extent the publicity over the fire is likely to crimp Tesla Model S sales growth.”

In the past, highly publicized safety probes have led to a sales drop between 10 and 20 percent, Johnson said.

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 33

ABPA Files Suit Seeking to Overturn Ford Design Patents The Automotive Body Parts Association (ABPA) announced its decision to take legal action against Ford Global Technologies. ABPA is challenging ‘the validity and enforceability of Ford’s design patents on common collision repair parts.’

On November 25, ABPA filed a lawsuit in the United States District Court for the Eastern District of Texas against Ford Global Technologies, LLC that seeks to have design patents for body parts ruled invalid. Ford Global Technologies is a wholly owned subsidiary of Ford Motor Company that manages intellectual property and technology commercialization for Ford Motor Company.

The complaint seeks to have the court declare Ford Global Technologies’ design patents invalid and permanently enjoin the company from enforcing automotive body repair parts patents against ABPA members.

According to the complaint filed

by ABPA, Ford Global Technologies “… has threatened to sue one or more ABPA members for alleged design patent infringement for selling automotive body repair parts allegedly covered by design patents owned by Ford Global Technologies.”

The complaint also asserts that due to the threats of litigation against ABPA members, “Ford Global Technologies’ actions have deprived ABPA Members of the economic opportunity to compete in the marketplace for automotive body repair parts for Ford Motor Company automobiles and have improperly distorted the marketplace by decreasing the supply and increasing the cost of automotive body repair parts for Ford Motor Company automobiles.”

In a letter from Ed Salamy, executive director of the ABPA, posted on the association’s website, states, “The basis of our lawsuit is to challenge the validity and enforceability of Ford’s design patents on common collision repair parts. The continued sale of these parts is of paramount concern not just for ABPA members and their livelihoods, but also to millions of American consumers who depend on quality alternative collision repair parts for cost effective repairs.”

Salamy also serves as executive director of the Quality Parts Coalition, a group representing parts suppliers and insurers, seeking permanent legislative change to U.S. design patent law, legislation generally refered to as

Professional Parts Group Earns NSF International Auto Collision Parts Distributor Certification

The Professional Parts Group has earned its Automotive Collision Parts Distributor Certification from NSF International. NSF International is an independent testing and certification organization with nearly 70 years of testing and certification experience.

Developed to respond to the needs of collision repair shops, insurers and ultimately consumers, the NSF Automotive Collision Parts Distributor Certification Program’s key requirements include automotive parts traceability and recall processes. To earn certification, the Professional Parts Group demonstrated the effectiveness of its records and inventory systems in tracking orders and parts through the supply chain. The Professional Parts Group also met the following criteria required for NSF Automotive Collision Parts Distributor Certification: ● An ISO 9001-certified quality management system for its distribution locations in Denver, CO, and Atlanta, GA; corporate office in San Dimas, CA; and warehouses in Chicago, IL, and Charlotte, NC. ● A defective parts procedure including a customer parts complaint process. ● The ability to administer a manufac-

turer’s recall. ● When necessary, a formal corrective action to complaints and an immediate recall plan.

Having met all of the certification requirements, the Professional Parts Group is authorized to use the NSF Certified Distributor mark on its website and promotional materials. The company also appears in NSF’s online certification listings and will undergo ongoing quality system audits to maintain certification.

“NSF International’s Automotive Distributor Certification Program highlights the essential role distributors, such as the Professional Parts Group, play in providing quality parts,” said Bob Frayer, director of NSF International’s Automotive Parts Certification Programs.

Added Christopher Northup, CEO and managing partner of Professional Parts Group, “Our designation as an NSF International Certified Distributor is a key factor in meeting customer’s expectations. The Professional Parts Group is focused on quality and integrity at every level, and every professional in our company contributed to our success in achieving this important certification from NSF.”

34 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

the PARTS Act. In 2009, Ford reached an agreement with LKQ Corporation to settle litigation filed by Ford over collision parts. As part of that agreement LKQ agreed not to challenge the validity of Ford’s design patents and, in exchange, LKQ would become the only distributor of non-OEM collision parts covered by Ford patents.

In 2008 the ABPA called for support for design patent exemptions for aftermarket parts. In 2006, Ford had filed a suit to stop the importation of aftermarket versions of certain F-150 truck parts. In 2007, a ruling by the International Trade Commission (ITC), which named several ABPA members, awarded the design patent protection that Ford sought for seven separate alternative parts for the 2004-2007 Ford F-150. The decision prohibited the sale of aftermarket replacements for these parts.

A statement published on the association website says: ‘The continued sale of these parts is of paramount concern not just for ABPA members and their livelihoods, but also to millions of American consumers who depend on quality alternative collision repair parts for cost effective repairs.’

LKQ Corp Buys Keystone Automotive Ops for $450M

LKQ Corporation announced that it has signed a definitive agreement to acquire Keystone Automotive Operations, Inc., a leading distributor and marketer of specialty aftermarket equipment and accessories in North America, for $450 million.

The transaction is expected to be completed in the first quarter of 2014 and is subject to customary closing conditions and necessary regulatory approvals. Established in 1971, Keystone has over 1,500 employees with 25 locations serving more than 20,000 specialty retailers and equipment installers throughout North America, offering a broad product line of over 300,000 SKUs from over 800 suppliers. Keystone markets products to serve the following six category segments: truck and off-road; speed and performance; recreational vehicle; towing; wheels, tires and performance handling; and miscellaneous accessories. “LKQ will become a leading player in the specialty aftermarket equipment and accessories business with this acquisition,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation.

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Artists for Education Has Donated $24K to Education Repair Foundation Artists 4 Education has announced that it raised and donated $23,924.32 to the ICAR Collision Repair Education Foundation.

Over the past year, Artists 4 Education has worked in conjunction with Matrix System Automotive Finishes, a Quest Automotive brand, to organize efforts to raise money and industry awareness for the I-CAR Collision Repair Education Foundation. This endeavor involved the expert skills of the industry’s top automotive artists and industry partners across the country.

With the participation of various industry partners such as Nuplex Resins, M.F. Cachet Company, Chromaflo Technologies, Dan-Am Company/SATA, Airbrush Action, Anest Iwata, Dedoes Industries, Dorn Color, Miller Electric, FBS - Finding Better Solutions, and Pro-Spray Finishes, cash donations and items were donated to help support the cause.

The all-star artist line-up involved some of some of the best airbrushers and pinstripers in the industry: Nub, Steve DeMan, Mike Learn, Mitch Peacock, Ron “Flea” Fleenor, Bugs, Armando

Serrano, Jeff Styles, Jonathan Pantaleon, Ryan Evans, Richard “Duke” Bobinac, Pat Paldino, James Kunzinger, Darryl

Strader, Don Ruks, John Wargo, Mark Marion, Justin Nichols, Michael Maggard and Josh Bourassa.

David Brunori, President of Quest Automotive Products, explains that, “It is our responsibility as industry participants to support the I-CAR Collision Repair Education Foundation whose sole purpose is to raise awareness to the growing shortage of certified technicians entering the collision repair industry. Our 1st annual Artists 4 Education campaign was a

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Glass Harvesting Ring Files 1000 False Claims

The California Department of Insurance Fraud Division announced Dec. 5 the arrest of three-of-six individuals suspected of running a glass harvesting ring-filing more than 1,000 false insurance claims for windshield repair totaling nearly $100,000. The suspects were arrested on multiple felony charges for grand theft, false personation of another, and filing fraudulent insurance claims. Using actual consumers’ insurance policies, the suspects allegedly submitted fraudulent claims for automobile insurance windshield chip repairs to multiple insurance companies between May 9, 2011 and May 24, 2012. “This criminal case is a good reminder for consumers to pay close attention to any notifications received from their insurance company, because these suspects were essentially stealing consumers’ insurance identity,” said Insurance Commissioner Dave Jones. “Consumers should review their policy claim history annually, upon renewal, to ensure the claim information is accurate. If there are errors or questions about the claim history, consumers should contact their agent or broker immediately and report it to our consumer hotline.”

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huge success—the artist community and manufacturers stepped up in a big way. We are truly humbled by their commitment to the cause.”

“On behalf of the I-CAR Collision Repair Education Foundation staff, Board of Trustees, and the high school/college collision students nationwide that we support, we would like to thank Artists 4 Education and their supporters for this incredible fundraising program. It was incredible to see all the various auction items and how so many came out to support the program through donations and bids.

With many collision school programs across the country facing reduced and limited budgets, these funds will go a long way with assisting in the students’ technical education. We look forward to working together next year to help make this program even bigger and better,” said Collision Repair Education Foundation Director of Development, Brandon Eckenrode.

For 2014 we are looking forward to engaging more awesome artists in our industry to participate! If Artists 4 Education can help one student enter into this growing industry, the mission was a success.

For more information about Artists 4 Education, go to: www.artists4education.org.

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Back row, left to right: Fred Iantorno, Chuck Sulkala, Bill Mayer, Kent Seavey, Nick Notte, Domenic Brusco, Elizabeth Clark, Rick Tuuri.

Middle row: Elizabeth Stein, Jon Faris, Renee Ricciotti, Craig Camacho, Michael Jordan.

Front row: Karen Fierst, Petra Schroeder, Taylor Bowes. Not pictured: Brandon Devis, Joe Lacy, Jeff Peevy, Mark Lovell, David Merrell, Jim Ocampo, Michael Quinn

The National Auto Body Council (NABC) has announced its newest board members. New officers elected at NABC’s recent annual meeting in Las Vegas include: ● Nick Notte, president (Sterling Autobody Centers) ● Elizabeth Stein, vice president (Assured Performance) ● Fred Iantorno, treasurer (CIECA) ● Domenic Brusco, secretary (PPG Automotive Refinish) ● Craig Camacho, director-at-large

(Keenan Auto Body) ● Brandon Devis, past president (Sherwin-Williams) New to the NABC board are Taylor Bowes (3D Collision Centers), Elizabeth Clark (State Farm), Joe Lacy (GEICO) and Jeff Peevy (I-CAR). Returning board members for the National Auto Body Council include: Jon Faris (Enterprise Rent-A-Car); Karen Fierst (Kerenor Consultants); Michael Jordan (Manchester Collision Center); Mark Lovell (LKQ Corporation); Bill Mayer (Insurance Auto Auctions); David Merrell (PartsTrader); Jim Ocampo (Axalta Coating Systems); Michael Quinn (uParts, Inc.); Renee Ricciotti (3M Corporation); Petra Schroeder (Axalta Coating Systems); Kent Seavey; and Rick Tuuri (AudaExplore, a Solera Company). “We are pleased and excited to welcome such a strong roster of industry leaders whose passion and dedication to serving our industry will be invaluable,” said Chuck Sulkala, NABC executive director. “We were in the enviable position of having 13 stellar candidates vying for seven open board positions, and we thank each candidate for their willingness and commitment to helping us further our mission to promote our collision industry.”

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 35

LendDeck.com Says SBA Loans for Body Shops at All-time Low The Small Business Administration has hit its lowest level in history for funding small business loans in amounts up to $150K, according to on line lender LendDeck.com. Online alternative financing specialists like LendDeck.com are finding a great opportunity in the SBAs shortfall in funding.

Small business loans for auto body shops are increasingly difficult to come by when attempting to use traditional channels like banks and credit unions so some small business auto body shop owners are turning to alternative financing sources like LendDeck.com to get the cash they need for their business.

Lisa Wolfrum, President of SBL

Capital Partners recently stated that, LendDeck.com was established specifically to fill a huge gap in the market where traditional banks and the Small Business Administration have failed in funding loans for American small businesses.

Small business body shop owners in need of cash and financing can simply log on the to the website at http://www.LendDeck.com and complete a short survey form to find out how much funding the business can qualify for. There are several different business financing options available and the personal financial representative at LendDeck.com helps each business owner find the right solution for their needs. Many small business

loans for auto body shops are denied by the SBA due to low credit scores of the business owner, however at LendDeck.com, they focus more on the business operations and cash flow rather than the personal credit of the proprietor. Once a funding decision is made and the terms are agreed to by both parties, the business owner can have cash in hand in as little as three days.

LendDeck.com keeps the paperwork to a minimum and helps small business owners get the capital they need without the hassle they dont need. Being able to offer financing to small businesses in a streamlined manner that gets cash into the economy without taking the business

Progressive Insurance Chairman, Peter Lewis, Dies at Age 80 Peter Lewis, Chairman of automobile insurance giant Progressive Corporation, died at his home in Coconut Grove, Florida on Saturday, November 23. Lewis was instrumental in building Progressive into an automobile insurance titan. He had just celebrated his 80th birthday on November 11.

The long-time head of Progressive took over the small company that his father helped to found in 1937 and grew it into a powerhouse, becoming a billionaire in the process. Lewis accomplished this growth by developing accurate rates for each individual policyholder so that those with low risk did not have to subsidize those with high risk. The company has recently characterized these high risk benefactors in TV commercials as “ratesuckers.”

Under Lewis, traditional methods of determining rates, including the use of judgment and subjective factors, were eschewed, and accurate data-driven decisions were championed.

Perhaps most significantly, Progressive embraced the use of credit scores in rating automobile insurance policies. Although controversial, the

use of credit was critical in propelling Progressive to the top of the automobile insurance world both in terms of premium volume and profitability.

More recently, and also under his leadership, Progressive has been actively developing telematics rating systems, also known as “black boxes.” Sometimes refered to as usage-based automobile insurance, these systems compute insurance rates based upon data taken directly from your automobile. Variables such as how you drive, what time you are on the road and the number of miles that you drive are all extremely powerful predictors of your risk of accidents and claims.

Under Lewis, Progressive also pioneered advances in claims handling methods and the online marketing of insurance.

Although Lewis is also known for having championed the legalization of marijuana. He was probably the country’s most high-profile billionaire backer of drug law reform.

During the November 2012 election, he spent almost $3 million helping secure the passage of marijuana legalization bills in both Washington state and Massachusetts. The National Or-

ganization for the Reform of Marijuana Laws estimated that Lewis had spent well over $40 million funding the cause since the 1980s.

Nonetheless, his legacy in the insurance world is of far greater importance. Under Peter Lewis’ leadership, Progressive helped to transform the world of automobile insurance, improving the accuracy of rates and utilizing the still controversial use of credit scoring throughout the industry.

Chief Executive Officer Glenn Renwick is taking the additional role of chairman. Renwick, 58, will also retain the title of president, the Mayfield Village, Ohio-based insurer said today in a statement.

Lewis was CEO from 1965 to 2000 when he turned over the job to Renwick. The company’s largest shareholder, he remained non-executive chairman until his death on Nov. 23.

Progressive joins the two largest U.S. providers of car coverage in turning to a single person to handle the roles of chairman and CEO. Ed Rust leads State Farm Mutual Automobile Insurance Co., and Tom Wilson runs Allstate Corp.

owner away from their business is one of the things were the most proud of at LendDeck.com. Concluded Wolfrum.

Although LendDeck.com doesn’t fund true start up businesses, they will try to work with any small business that has been in operation for at least four months.

For further information, please contact: Lisa Wolfrum, President of SBL Capital Group, LLC - 800-2136456, or visit their website at http://www.LendDeck.com.

This article was originally distributed via PRWeb. PRWeb, WorldNow and Autobody News make no warranties or representations in connection therewith.

NHTSA Announces Tesla Battery Fire Probe

The National Highway Traffic Safety Administration announced on November 19 that it was opening an official investigation into Tesla Motors Inc. two battery fires in its electric vehicles, and two weeks later, the agency is now asking that Tesla hand over all of its data on battery fires.

According to The Detroit News, the NHTSA requested in a letter dated November 27 that Tesla turn over detailed records of all consumer complaints, field reports, warranty claims, and property damage claims. The agency wants the results of tests, surveys, stimulations, and other efforts to review the battery fires and presumed defect, and it wants to determine whether Tesla has worked to make any changes to the electric vehicle to further prevent any future issues.

The data request is standard practice for the NHTSA as it works to finish its investigation. Still, the move shows which records officials are interested in going over to determine whether Tesla’s Model S is at fault or if the two fires in five weeks occurred because of uncontrollable circumstances.

Axalta Coating Systems Presents ASE Refinish Technician of the Year Award to Leonard King of Gaithersburg, MD

Last week in Newport Beach, California, Axalta Coating Systems presented the National Institute for Automotive Service Excellence (ASE) Refinish Technician of the Year award. Leonard King of Euro Pros Collision Center in Gaithersburg, MD, won this prestigious award. Leonard began his career in the industry 25 years ago.

Axalta has been a sponsor of the

award for more than 10 years. Scott Diaz, an Axalta Training Manager, presented King with the award before an audience of several hundred at the Fairmont Hotel. “Axalta is pleased to present the Technician of the Year award. Technicians are invaluable, in that they are the direct users of our refinish products and they help restore cars to their original beauty, utilizing

36 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Axalta’s exceptional paint products.

We appreciate their knowledge, attention to detail and all they do to help demonstrate brilliant color,” Diaz stated.

ASE was established in 1972 as a non-profit organization to help improve the quality of automotive service and repair through the voluntary testing and certification of automotive technicians

and parts specialists. Today, there are more than 330,000 ASE-certified professionals at work in dealerships, independent shops, collision repair shops, auto parts stores, fleets, schools and colleges throughout the country. For more information about ASE, visit the Web site at www.ase.com. ASE has been honoring the best of the best in our industry for more than 30 years.

DOJ Says Grand Jury Indicts Two Automotive Parts Suppliers for Price Fixing of Anti-Vibration Parts

A Cleveland federal grand jury returned an indictment against two executives of a Japanese automotive supplier for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold to Toyota and installed in U.S. cars, the Department of Justice announced today.

The indictment, filed in U.S. District Court for the Northern District of Ohio in Toledo, charges Masao Hayashi and Kenya Nonoyama, both Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate the supply of, to rig bids for and to fix, raise and maintain the prices of antivibration rubber parts sold to Toyota Motor Corp., Toyota Motor Engineering & Manufacturing North America Inc. and affiliated companies (collectively Toyota) for installation in automobiles manufactured and sold in the United States and elsewhere.

Automotive anti-vibration rubber products are comprised primarily of rubber and metal, and include engine mounts and suspension bushings. They are installed in automobiles for the purpose of reducing road and engine vibration.

The indictment alleges, among other things, that from as early as

March 1996 until at least December 2008, Hayashi and Nonoyama and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements. The indictment alleges that the conspiracy involved agreements affecting the Toyota Corolla, Avalon, Tacoma, Camry, Tundra, Sequoia, Rav4, Sienna, Venza and Highlander.

“Today’s indictment reaffirms the Antitrust Division’s commitment to hold executives accountable for actions that corrupt the competitive landscape and harm consumers,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division. “The Antitrust Division continues to work closely with its fellow competition enforcers abroad to ensure that there are no safe harbors for executives who engage in international cartel crimes.”

Hayashi and Nonoyama are charged with a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

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Montana Body Shop Fined by OSHA Following Fatal Fire-Explosion The U.S. Department of Labor’s Occupational Safety and Health Administration has cited Rick’s Auto Body of Missoula for nine serious violations of workplace safety and health standards. The employer faces $51,100 in proposed fines as a result of an August inspection following a fatal accident at the facility.

In August, Bruce Hall, an employee of Rick’s Auto Body, died from burns suffered when static electricity caused solvent fumes to ignite.

“In this case, the employer disregarded necessary safety measures, placing employees in harm’s way,” said Jeff Funke, OSHA’s area director in Billings in a press release announcing the fines. “The inspection, prompted by a workplace fire, identified the improper storage of flammable liquids at the facility and inadequate grounding and bonding methods for the transfer of flammable liquids.”

According to OSHA, the serious violations identified during the investigation include improper storage of flammable and combustible materials, use of storage containers not approved for flammable goods and failure to store overhead materials securely. The employer was also cited for failing to label emergency exits,

ensure adequate controls for leakage or the escape of flammable materials, and ground electrical equipment around combustible materials. Additionally, the site was improperly ventilated and lacked sufficient fire sprinkler systems, endangering individuals in an emergency. A serious citation is issued when there is a substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

The company has 15 business days from receipt of the citations and proposed penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission.

The shop’s owner, Rick Booth, said they met with OSHA officials in Billings over the summer, who agreed to reduce the fine. Booth said they have paid the fine, and no longer recycle paint at the shop. He said they now work with Safety Clean, which picks up and hauls away paint waste from the shop.

Booth said he and his employees are working to remain in compliance with OSHA to ensure a similar accident never happens again.

Safelite Group Acquires ‘Substantially All’ of Guardian Auto Glass LLC, Not Including RV Glass Management

Safelite® Group, the nation’s leading vehicle glass company and owner of Safelite AutoGlass®, has reached an agreement to acquire substantially all of the vehicle glass repair and replacement assets of Guardian Auto Glass, LLC, a joint venture of Guardian Industries Corp. and LRST, LLC. Additionally, Safelite® Group has reached an agreement to acquire the vehicle glass insurance claims management assets of Guardian Glass Network, not including its RV glass claims management operations. Both contracts were signed on December 1, 2013 with an expected closing at the end of business on December 31, 2013.

Auburn Hills, MI-based Guardian Industries was founded in 1932.

Guardian Auto Glass currently includes approximately 253 employees in 60 retail locations throughout the U.S. Guardian Auto Glass provides vehicle glass repair and replacement services in 12 states with a heavy emphasis in Ohio, Virginia, West Virginia and Florida. Guardian Auto Glass’ management team will assist in the transition.

Guardian Glass Network operates its vehicle glass claims adminis-

tration operation in Worthington, Ohio, and has 21 employees, 13 of whom will join Safelite® Solutions.

The remaining Guardian Glass Network employees will continue to operate the RV glass claims program.

“Guardian’s well-established brand, commitment to high-quality customer service, and wide footprint made it attractive to Safelite® in its goal to become the “natural choice” for vehicle glass repair and replacement services in the U.S.,” said Tom Feeney, president and CEO. “The acquisition positions Safelite® to grow business in the impacted geographies. Additionally, the acquisition of the Guardian Glass Network will support the growth goals of Safelite® Solutions aimed at helping insurance clients achieve policyholder delight.”

“Safelite® is committed to its retail auto glass and insurance claims businesses as demonstrated by its dynamic growth in recent years,” said Mike Morrison, president of Guardian Automotive. “Our people are joining another established brand with a history of growth and a long term focus on the retail automotive glass business.”

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 37

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