January 2020 Southeast Edition by Autobody News

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Vol. 10 / Issue 11 / January 2020

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CIC Committees Offer Ideas for Better Welding Practices, Documentation of Test Drives

Mosaic ADT Created to Achieve Repeatable, Error-Free Calibrations

by John Yoswick

by Stacey Phillips

Collision Industry Conference (CIC) committees in Las Vegas in Novem-

Toby Chess and Kye Yueng offered tips and best practices related to improving shop welding. Credit: John Yoswick

ber tackled topics ranging from better welding practices to OEM procedures and new ways of documenting increasingly detailed vehicle test drives. Toby Chess, an industry trainer who leads CIC’s “Technical Presentations” committee and who has conducted more than 6,000 I-CAR welding tests over 15 years, said at least five automakers – Ford, Toyota, Nissan, Honda and Audi/VW /Porsche – have OEM procedures with detailed instructions for performing destructive testing on plug welds and spot welds prior to weldSee CIC Committees, Page 20

Deer-Related Collisions Are Keeping Body Shops in Business by Tom Dees, Fox13 Memphis

While wrecking your car to bag a deer isn’t something most motorists would want to do, FOX13 found out more drivers are colliding with deer this time of year and it is a real danger on the road.

Credit: Fox13 Memphis

Ryan Diffee runs Benchmark Auto Body in Hernando, MS. He told us that almost all his business right now is because of cars hitting deer and in one case, the deer hit the hunter. “It was a deer, hit the deer came out of the woods and hit him in the front,” Diffee said. “This gentleman had finished hunting and came out of the woods and was going down the road and the deer came out and hit him.” But it’s not just in the backwoods where deer strikes happen. See Deer-Related Collisions, Page 12

There are an increasing number of vehicles on the road today with Advanced Driver-Assistance Systems

Lee Daugherty, vice president of global collision sales for Chief Collision Technology. Credit: Chief Collision Technology

(ADAS). As the percentage continues to rise, the greater the demand will be for calibration to ensure a proper repair, said Lee Daugherty, vice president of global collision sales for Chief Collision Technology. To help meet this growing industry need, Chief Collision Technology teamed up with Burke Porter Group to create ADAS calibration equipment. After two years in development, Mosaic Advanced Diagnostics Technology (ADT) was launched in November at the SEMA show in Las Vegas. “When a vehicle is in a collision, See Retain Employees, Page 18

Happy

Holidays From AUTOBODY

Court Issues Ruling, Sets Mediation Date in Allstate vs. Auto Glass America Suit by Emmariah Holcomb, glassBYTEs.com

U.S. District Court Judge Carlos E. Mendoza denied Allstate’s request to dismiss Auto Glass America LLC (AGA) and its owner Charles Isaly’s counterclaim. Florida’s Middle District Court filed the document today in regard to the Allstate vs. AGA and Isaly lawsuit. According to Mendoza, the motion to dismiss is now “moot” due to the filed amended counterclaim. Last December, Allstate filed the suit and alleges AGA and Isaly, “tried to pressure Allstate’s insureds into hiring them for windshield replacements, obtaining assignments

of benefits (AOBs) from insureds, submitting invoices to Allstate for excessive and unreasonable amounts and fil[ing] over 1,400 lawsuits for recovery of excessive and unreasonable amounts.” The U.S. District Court for the Middle District of Florida has set a date of March 20, 2020, for mediation in the ongoing Allstate vs. Auto Glass America Suit. The mediation will take place at Rumberger Kirk & Caldwell PA in Orlando, FL. Kimberly Sands will preside over the meditation. We thank glassBYTEs.com for reprint permission.

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JANUARY 2020 AUTOBODY NEWS / autobodynews.com

CONTENTS

Car-Part.com Receives Company of the Year Award

REGIONAL

NATIONAL

‘War Rat’ Car Most Creative at Charlotte, NC,

Another 1.4M Vehicles Added to Takata

AL Students Get a Chance for Industry Experience . . . . . . . . . . . . . . . . . . . . . . . . . 12 Allstate vs. Auto Glass America Suit Date Set . . 8 Court Issues Ruling, Sets Mediation Date in Allstate vs. Auto Glass America Suit . . . . . . 1 CREF to Host Topgolf Fundraiser in FL . . . . . . . 11 Deer-Related Collisions Are Keeping Body Shops in Business . . . . . . . . . . . . . . . . 1 Deputies Searching for Suspect in Body Shop Thefts . . . . . . . . . . . . . . . . . . . . 12 Florida AOB Legislation Dies in Committee . . . 12 Gerber Collision & Glass Opens Repair Center in FL . . . . . . . . . . . . . . . . . . . . . . . . 14 Joint Motion to Continue and Motion to Compel Filed in Allstate v. AGA Lawsuit . . . . 14 Maaco Recognizes Derek and Stephanie

Airbag Recall. . . . . . . . . . . . . . . . . . . . . . . . 37 ASA Wage & Hour Attorney Discusses Overtime Exemptions . . . . . . . . . . . . . . . . . 40 Autoliv Introduces Airbag That Prevents Passengers From Colliding . . . . . . . . . . . . . 44

Driven by Societal Changes. . . . . . . . . . . . . 22 Car-Part.com Receives Company of the Year Award . . . . . . . . . . . . . . . . . . . . . . . 3 Chrysler Lawsuit Involving Leaky Sunroofs Seeks Settlement . . . . . . . . . . . . . . . . . . . . 44 CIC Committees Offer Ideas for Better Welding Practices, Documentation of Test Drives . . . . 1 Ford ‘Death Wobble’ Lawsuit Says F-250 and F-350 Trucks Affected . . . . . . . . . . . . . 27 Glass Installation and ADAS – The Game is Changing. . . . . . . . . . . . . . . . . . . . . . . . . 38

Jameson, Antioch, TN for a Top-Performing

GM CCA Grows My GM Partner Perks . . . . . . . 37

Franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Mosaic ADT Created to Achieve Repeatable,

NCACAR and SCACAR Kick Off Series of Estimating Courses . . . . . . . . . . . . . . . . . . . 16

Error-Free Calibrations . . . . . . . . . . . . . . . . . 1 Solving the Tech Shortage: How Conditions,

RCC Hosts Eighth-Graders for Automotive Day . . 6

Culture & Compensation Can Help Body

Tesla’s START Program for Future EV

Shops Attract & Retain Employees . . . . . . . 28

Technicians Welcomes First Graduates From Miami College . . . . . . . . . . . . . . . . . . 11

lected based on its commitments to more than a dozen committees and organizations. Jeff Shroder, CIECA’s treasurer and the owner of Car-Part.com, accepted the prize on the company’s behalf, with Ed Weidmann, CIECA’s executive director, and Clint Marlow, CIECA’s past-chair and director of AllState posing by his side. CIECA said it is “tremendously grateful” for the company, which understands the importance of being innovative and the creation of new products.

Automotive Industry Faces Disruption

Subaru Forester Passenger Airbag Sensor Lawsuit Filed . . . . . . . . . . . . . . . . . . . . . . . 43

INDEX OF ADVERTISERS

AutoFair . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

On Nov. 6, Car-Part.com received CIECA’s Company of the Year award during the Collision Industry Red Carpet Awards Breakfast, honoring the company for its ongoing commitment to the collision repair sector. Held in conjunction with the SEMA Show in Las Vegas, the third annual Collision Industry Red Carpet Awards Breakfast honored the industry’s most charitable and professional achievements. Among the winners was Car-Part.com, which received CIECA’s Company of the Year award. The company was se-

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano, Kelly Hall (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Alexis Wilson Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

Serving Florida, Georgia, Alabama, Mississippi, Virginia, West Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC.

Athens Dodge-Chrysler-Jeep-Ram . . . . . . 17

Honda-Acura Wholesale Parts Dealers. 23, 24-25

Audi Wholesale Parts Dealers . . . . . . . . . . 41

Hyundai Wholesale Parts Dealers . . . . . . . 38

AutoNation Collision Parts . . . . . . . . . . . . . 21

IGO Insurance Company, Inc . . . . . . . . . . . 10

AutoNation Ford-Lincoln . . . . . . . . . . . . . . 33

Innovative Tools & Technologies. . . . . . . . . 15

Axalta Coating Systems . . . . . . . . . . . . . . . 2

Jim Cogdill Chrysler-Dodge-Jeep-Ram . . . . 6

BMW Wholesale Parts Dealers . . . . . . . . . 42

John Hiester Automotive . . . . . . . . . . . . . . 30

Braman Honda Miami . . . . . . . . . . . . . . . . 11

Kia Motors Wholesale Parts Dealers . . . . . 45

Braman Honda of Palm Beach. . . . . . . . . . 11

Matrix Automotive Finishes . . . . . . . . . . . . . 5

Certified Automotive Parts Association . . . 12

Mercedes-Benz Wholesale Parts Dealers . . 42

City Kia of Greater Orlando . . . . . . . . . . . . 12

MINI Wholesale Parts Dealers . . . . . . . . . . 42

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . 46

Mirka USA, Inc. . . . . . . . . . . . . . . . . . . . . . 19

Coggin Deland Honda . . . . . . . . . . . . . . . . 32

MOPAR Wholesale Parts Dealers . . . . . . . . 29

Dale Earnhardt Jr. Chevrolet . . . . . . . . . . . 16

NOROO Paint & Coatings. . . . . . . . . . . . . . 48

Dent Fix Equipment. . . . . . . . . . . . . . . . . . 13

Radley Chevrolet. . . . . . . . . . . . . . . . . . . . 39

ECS Automotive Concepts . . . . . . . . . . . . . 14

Rick Hendrick Chevrolet Naples . . . . . . . . 20

Equalizer Industries, Inc . . . . . . . . . . . . . . . 8

Riverside Ford-Lincoln . . . . . . . . . . . . . . . 22

Ford Wholesale Parts Dealers . . . . . . . . . . 40

SATA Dan-Am Company . . . . . . . . . . . . . . 31

GM Wholesale Parts Dealers . . . . . . . . . . . 43

Southside Kia . . . . . . . . . . . . . . . . . . . . . . 37

Grieco Ford of Fort Lauderdale . . . . . . . . . 36

Spanesi Americas . . . . . . . . . . . . . . . . . . . 18

Gus Machado Ford . . . . . . . . . . . . . . . . . . 27

Spartanburg Chrysler-Dodge-Jeep-Ram . . . 9

Hendrick Automotive Group. . . . . . . . . . . . 35

Subaru Wholesale Parts Dealers . . . . . . . . 47

Hendrick BMW/MINI . . . . . . . . . . . . . . . . . . 7

Symach . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Hendrick Honda Pompano Beach . . . . . . . 39

Tameron Hyundai . . . . . . . . . . . . . . . . . . . 28

Hendrick Kia Cary . . . . . . . . . . . . . . . . . . . 26

Volkswagen Wholesale Parts Dealers . . . . 38

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

Tesla Cybertruck Pickup Makes Its COLUMNISTS Phillips - How to Position Your Collision Repair Shop for Sustainability . . . . . . . . . . . 30 Sisk - Collision Repair Industry Associations Make 2020 New Year’s Resolutions. . . . . . . 34

Public Debut . . . . . . . . . . . . . . . . . . . . . . . . . 4 Tesla Model 3 Driver Ignores Road, Crashes Into Police Cruiser . . . . . . . . . . . . . . . . . . . . . 4 Three Weeks After GM Strike, Dealers Await 2020 Models, Cut Back Hours . . . . . . . . . . . 47

Hendrick Kia Concord . . . . . . . . . . . . . . . . 26

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

Tesla Cybertruck Pickup Makes Its Public Debut by Simon Alvarez, Teslarati.com

Tesla has revealed its highly-anticipated pickup truck to the public, and it is every bit the monster that CEO Elon Musk has made it out to be. With its aggressive stance, high ground clearance, and massive frame, the Tesla’s Cybertruck is quite a sight to behold. DESIGN The Tesla Cybertruck does not look like a traditional pickup. True to Musk’s words, the vehicle does look like a futuristic armored personnel carrier that stepped out of the set of Blade Runner. Its straight sloping roof give the pickup a streamlined yet unique look. As the Tesla CEO

Credit: Tesla

has stated in the past, the Cybertruck won’t look like any other pickup on the road today. That being said, there are several key design aspects that are notable about the Cybertruck. These include its extremely angular body, its large bed, and its high ground clearance. The Cybertruck

also has a thick stainless-steel body, which Tesla demonstrated by having a sledgehammer hit the pickup’s door panel. The vehicle is also fitted with Tesla’s Armor Glass, which un-

Credit: Tesla

fortunately cracked after a large steel ball was thrown at it onstage. The metal ball didn’t go through the glass though, which is a plus. SPECS Tesla has pretty much mastered the art of keeping the specs of its upcoming vehicles’ secret. As it turns out, the Cybertruck’s performance figures are worth the secrecy, as they are flat-out insane. The vehicle is equipped with a standard single motor and can be upgraded to dual and tri-motors. Just as Musk said, the Cybertruck, despite its size, is quite nimble, thanks to its instant torque and four-wheel steering. These ultimately allow the Cybertruck to hit 60 mph in just 2.9 seconds, with handling comparable to a Porsche. Here are other notable specs of the Tesla Cybertruck:

• 250+, 300+, and 500+ miles of range; • 3500 lbs payload; • Towing rating between 7.5k to 14k lbs; • 250 kW charging; • Off-road performance with 35 degrees approach angle, up to 16″ clearance, and 28 degrees departure angle; and • 100 cubic feet of exterior storage.

SPECIAL FEATURES Pickups are utility vehicles by nature, and as such, they are used primarily for work on locations such as farms or construction sites. Luxury pickups exist that prioritize comfort over utility, but Tesla’s monster pickup has chosen to do both. The interior of the Cybertruck is classic Tesla in the way that it’s minimalist and airy, with plush seats and a massive touchscreen that’s op-

Credit: Tesla

timized for work and even entertainment. This, however, is only the tip of the iceberg when it comes to the pickup truck’s notable features.

Tesla Model 3 Driver Ignores Road, Crashes Into Police Cruiser by David A. Wood, CarCompaints.com

A Tesla Model 3 driver who crashed into a parked police vehicle and then hit a disabled car says he was checking on his dog in the rear seat when the crash occurred. As in multiple Tesla crashes, instead of paying attention to the road and surroundings, the Model 3 driver said he had Autopilot engaged and didn’t notice the flashing lights on two police cruisers. According to the Connecticut State Police, the crash occurred in the early hours of Dec. 7 when officers with Troop GBridgeport responded to a disabled vehicle on Interstate 95 in Norwalk. The stationary vehicle was sitting in the left center lane with the troopers parked behind the disabled vehicle, lights flashing, and a pattern of flares placed behind the patrol cruisers. 4

While the officers were waiting for a tow truck, the 2018 Tesla Model 3 slammed into the rear of one cruiser and then hit the disabled vehicle. The Tesla continued to travel slowly before being stopped several hundred feet ahead by the second trooper at the scene. The driver said he had Autopilot engaged and was checking on his dog in the back seat when the crash occurred. State police cited the Tesla driver for misdemeanor reckless driving and reckless endangerment, and Tesla hasn’t released information concerning logs that would indicate if Autopilot was indeed engaged. Even though the license plate said, "MODEL3," the driver must not have paid attention to the owner’s manual which says to keep your hands on the steering wheel and your eyes on the road when Autopilot is activated.

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

But the Connecticut driver joins other Tesla owners who believed driver-assist technology equals a fully driverless car. Based on the Connecticut crash and other crashes allegedly involving Autopilot, drivers who should have common sense chose to deactivate it when Autopilot was activated. Multiple examples abound, including the unfortunate death of Joshua Brown who was killed when his Tesla traveled straight into a tractor-trailer. There is also the Model X driver who didn’t prevent the vehicle from traveling across highway lane markers and crashing into a construction barricade. Or the Model S driver who let the car crash into a firetruck while she looked at her cell phone, or a different driver who was behind the wheel when the vehicle slammed into a firetruck. Then there is the Chinese driver of a

Others include: • 110v/220v onboard outlets; • Full Self-Driving features; and • Autopilot as standard. PRICE Earlier this year, Musk has mentioned that the Tesla Cybertruck would start at $49,000 at the highest. Tesla has stayed true to its CEO’s words, pricing the futuristic pickup truck very

Credit: Tesla

aggressively compared to other EV trucks and ICE-powered luxury pickups. Tesla’s Cybertruck does have a number of higher-priced trims, and these cost substantially more, while offering significantly more. Here’s the complete pricing of Tesla’s Cybertruck depending on its trim. • Single Motor RWD – $39,900 before options; • Dual Motor AWD – $49,900 before options; and or • Tri-Motor AWD – $69,900 before options. We thank Teslarati.com for reprint permission. Model S who believed Autopilot would allow him to take his eyes off the road as his car crashed into another vehicle. In addition, a separate crash in China killed the driver who allegedly had Autopilot engaged when the car slammed into a street sweeper. His family said he put his faith in technology he believed would do all the driving. Another Tesla driver was killed when his Model X with Autopilot engaged slammed head-on into a concrete highway divider that could have easily been avoided if the driver would have been watching his surroundings. And in a crash of a Model S, the car plowed into a disabled car at 80 mph because the driver was looking at his cell phone, believing Autopilot would prevent the crash. We thank CarCompaints.com for reprint permission.

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

RCC Hosts Eighth-Graders for Automotive Day by Megan Crotty, The Courier-Tribune

Randolph Community College in Asheboro, NC, hosted 200 eighthgraders from the eight Randolph County School System and Asheboro City Schools middle schools on Nov. 8, for Automotive Day to kick off National Apprenticeship Week, Nov. 11-17.

Collision Repair & Refinishing Technology Department Head W.T. Brewer speaks to students. Credit: RCC photo

The event was held to highlight both the Automotive Systems Technology (AST) apprenticeship opportunities and the classes students can take in the AST and Collision Repair & Refinishing Technology at RCC when they are in high school. Students participated in several hands-on activities, including wiring, measuring, painting, damage repair

and tire maintenance, and also saw ScanTool and paint booth demonstrations at the Richard Petty Education Center. Students were able to discuss careers in the automotive world as they went from station to station. The students also toured the corporate headquarters for J.P. Thomas & Co. Inc. and its East Coast Tires, Wheels, & Equipment; Thomas Tire & Automo-

me more about that than cars, so I thought I’d learn about cars and bring those together. The paint [demonstration] was neat.” The experience left a mark on the RCC instructors, too. “Automotive Day was a blast,” AST Department Head Don Ashley said. “It was one of the best student engagement tours we have ever ex-

Local middle school students participate in hands-on activities. Credit: RCC photo

Automotive Systems Technology Instructor Patrick Pardee discusses tire maintenance with the students. Credit: RCC photo

tive; and Ready-To-Mount divisions. Archdale-Trinity Middle School student Jacob Proctor, whose grandpa is a mechanic, said the event was “pretty cool. I’m learning things I didn’t know.” “My father is a welder,” Northeastern Randolph Middle School student KatieJo Staley said, noting she was interested in Automotive Systems Technology as a career. “He teaches

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

perienced. It was fun — the students were actively participating in the demonstrations. I hope they learned quite a bit more about what the automotive systems and collision repair technicians experience.” “I loved the Automotive Day — all of the kids had fun and were engaged and seemed interested,” Collision Repair & Refinishing Technology

Department Head W.T. Brewer added. “I think my instructors had more fun than the students.” Apprenticeship Randolph — which began in June 2016 as a collaboration among Randolph Community College, the Randolph County School System, Asheboro City Schools, the Asheboro/Randolph Chamber of Commerce and local manufacturers

Randolph Community College Automotive Systems Technology Department Head Don Ashley gives a demonstration to students in the Richard Petty Education Center as a part of Automotive Day. Credit: RCC photo

— opened the Automotive Systems Technology program to youth apprentices this year and signed its first group of apprentices in August. We thank The Courier-Tribune for reprint permission.

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autobodynews.com / JANUARY 2020 AUTOBODY NEWS

Allstate vs. Auto Glass America Suit Date Set

‘War Rat’ Car Most Creative at Charlotte, NC, AutoFair by Mike Barnhardt, Davie County Enterprise Record

In 2018, Mocksville, NC, high school students of the Davie County High School Career and Technical Education department worked together to create a display of the power of crosscurricular collaboration. The “War Rat” was named appropriately as a combination of “Rat-Rod,” a radical, Frankenstein car culture with a nod to the Davie County High School mascot, the War Eagle. The vehicle was built as a competition initiative with rules stating more than ten parts, from ten vehicles had to be used in its creation. This project grew to include elements from art, fashion and apparel, carpentry, drafting engineering, as well as automotive classes. Things such as a custom paint/ patina scheme, upholstered door panels, 3D printed interior parts, a wooden bumper, and a 55-gallon drum turned barbecue grill are among the many student-fabricated pieces. Davie High CTE teachers led the project that comprised a total of more than 30 students. This year, the War-Rat was en-

by Staff, glassBYTEs.com

The U.S. District Court for the Middle District of Florida has set a date of March 20, 2020, for mediation in the ongoing Allstate vs. Auto Glass America Suit. The suit, filed last December by Allstate, alleges that the company and its owner, Charles Isaly, filed “tried to pressure Allstate’s insureds into hiring them for windshield replacements, obtaining assignments of benefits (AOBs) from insureds, submitting invoices to Allstate for excessive and unreasonable amounts and fil[ing] over 1,400 lawsuits for recovery of excessive and unreasonable amounts,” by allegedly stating that Allstate shouldn’t be entitled to any financial relief. The mediation will take place at Rumberger Kirk & Caldwell PA in Orlando, FL. Kimberly Sands will preside over the meditation.In November, both parties in the case filed a joint motion to continue trial proceedings and all remaining pretrial deadlines. We thank glassBYTEs.com for reprint permission.

Maaco Recognizes Derek and Stephanie Jameson, Antioch, TN for a Top-Performing Franchise At the 2019 Maaco Convention in Boca Raton, FL, Maaco Auto Painting and Collision Repair recognized top North American franchisees who exemplified the “breakthrough” convention theme with awards for top performance,

including outstanding sales, operational excellence, leadership, growth and overall performance. “It’s an honor to recognize the top performers in the Maaco system,” said Bob Benjamin, president of Maaco Auto Painting and Collision Repair. “These franchisees are

a great example of the success that is possible as a Maaco owner.” Syl Young Award: Derek and Stephanie Jameson, Antioch, TN The Jameson’s have been Maaco owners since 2016. Their center is Maaco Diamond Certified as well as I-CAR Gold Certified. The Jameson’s were 2018 Regional Cup winners, and in 2019 experienced the center’s best year ever. “I am really proud of my team for winning this award,” said Jameson. “This is one of the highest honors that you can receive within the Maaco family. This just encourages me even more to work harder and continue to do my best to live up to the Maaco name.”

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tered into the Charlotte AutoFair sponsored by Penzoil. The vehicle showcase is one of the premier automotive gatherings in the Carolinas held each fall at Charlotte Motor Speedway. This autoshow hosts gear-heads numbering in the tens of thousands each year attracting some of the industry’s top hot-rodders and car enthusiasts.

Credit: Davie County Enterprise Record

This year’s guests included ECTO-1 from Ghostbusters, Speedracer’s Mach 5, the 1968 Mustang GT Fastback that Steve McQueen drove in the movie “Bullitt,” and recent celebrity vehicle of a Red Jeep Cherokee made famous by Hurricane Dorian and the Internet. These were among more than 1,500 other examples of car culture

old and new that lined the infield and track space. Upon judging, the student-built vehicle took “Most Creative.” The entry brought home a trophy sponsored by Tommy Pike Customs, a custom builder at SEMA Show each year in Las Vegas. Seth James, automotive teacher at DCHS said: “No words to say how proud I am of my students and others, when they are able to put their passion fully towards their learning, and most of all, have fun doing it.” The project finds home under the newly created War Eagle Motorsports club at the high school. The new organization umbrellas other student-led projects such as a solar race vehicle, and a “Hot-Rodders of Tomorrow” engine building team. The club has a mission of building strong connections between CTE and STEM classes with authentic project-based learning. War Eagle Motorsports is seeking collaborations with communitybased partnerships to bring student opportunities within Davie County School System to the next level. We thank Davie County Enterprise Record for reprint permission.

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

ASA Florida Ends 2019 On a High Note With Debut of Foundations Training and Trade Expo by Chasidy Rae Sisk

On Nov. 9, ASA-FL hosted its inaugural Florida Foundations Training and Trade Expo at the Daytona International Speedway in Daytona, FL. According to ASA-FL Executive Director Mary Steele, “2019 has been a long-awaited year for ASA Florida with many positive changes. The icing on the cake was, for certain, our Foundations Training & Trade Expo

at the iconic Daytona Speedway which attracted 250 attendees, over 14 National trainers for quality training classes, and over 30 vendors to start off 2020.” “Our vision was to Work Smart, Train Smarter. Shops could simply text to register for an event. Networking is such a powerful tool; in fact, it is priceless,” Steele continued. During the event, ASA-FL wel-

comed a special guest to kick off their program benefiting veterans. “Community service is essential,” Steele explained. “The Land 4 Heroes Project helps our veterans. Country Music Star Colton James was there to bring the message of helping through the power of music and share the passion.” Foundations featured a full day of training classes as well as a vendor expo with topics on a wide variety of topics including ADAS, social media, profitability and more. Renowned industry instructors included Jimmy Lea, Jeremy O’Neal, Sara Fraser, Aaron Stokes and many others. During lunch, the expo was held, providing attendees with an opportunity to network with industry peers and vendors. On Sunday, Nov. 10, attendees who chose to stick around enjoyed a Daytona Speedway Tour, including a 90-minute all-access tour and an opportunity to explore the 2.5-mile track from various vantage points. After the tour, attendees visited the new Motorsports Hall of Fame of America. Overall, ASA-FL’s Inaugural Florida Foundation’s Training and

Trade Expo was deemed successful. Steele stated, “The ASA board, kindly dubbed ‘Team Daytona,’ has proven that working together, communicating, and exceeding expectations is what ASA-FL stands for, and we can also have fun doing what we are passionate about!” Due to the favorable responses received from foundations attendees, ASA-FL plans to expand foundations to two full days of training on Nov.

of whom now works for an association member’s shop. Two local votech schools attended Foundations, and Steele noted, “Our goal is to promote the event to local tech schools and attract some young future talent to the show to get them involved with the industry. We want to pave the way for future technicians.” Discussing some of the other positive changes that 2019 has brought to the association, Steele said, “New

... “Networking is such a powerful tool; in fact, it is priceless,” — Mary Steele 13-14, 2020 with a return to the racetrack on Sunday, Nov. 15. Steele shared, “Foundations is back by popular demand with transmission classes, collision seminars, technical education, and hands-on training as well as vendors to suit every need and tools to invest in. ASA-FL strongly believes in promoting the automotive and collision repair industries to the next generation of professionals. In 2019, the association provided scholarships for nearly a dozen J-Tech students, one

member benefit providers give members new and exciting ways to help their business grow. Communication, in all forms, has grown at a great pace, from texting and messaging to Facebook, Instagram, LinkedIn, and Twitter. We are letting everyone know that we are here and we care - just reach out anyway you choose. We are looking to open more chapters in 2020 to reach more repairers in the state.” For more information on ASA Florida and its future events, visit asaflorida.org

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CREF to Host Topgolf Fundraiser in FL

Tesla’s START Program for Future EV Technicians Welcomes First Graduates From Miami College

The Collision Repair Education Foundation (CREF) invites industry supporters to tee up for some hole-in-one style fun on Tuesday, April 7, 2020 at Topgolf in Jacksonville, FL. The golf fundraiser will be held in conjunction with the Collision Industry Conference taking place later that week. Christen Battaglia, director of strategic partnerships, stated, “Join the Foundation for a great time networking with top collision repair industry professionals, while supporting the next generation entering the field to ensure that they receive the proper education to repair vehicles for your customers.” Proceeds from the event will benefit local Jacksonville high school collision programs as well as other high school and college collision programs around the country. For more information, please contact Battaglia at (302) 3775202 or via email at: Christen .Battaglia@ed-foundation.org.

by Joey Klender, Teslarati.com

A batch of students who attended the first-ever Tesla START program at the Electric Vehicle Training Center in Miami Dade College’s (MDC) West Campus graduated. The school is home to a one-of-a-kind training center that has partnered with Tesla for an intensive 12-week course designed to prepare students for a career as an electric car technician.

Credit: Teslarati.com

Tesla introduced the program so it could provide those interested in a future involving electric vehicle repair and servicing with a comprehensive and proper education in a relatively short amount of time. Tesla’s website states, “During the program, students will develop technical expertise and earn certifications

through a blended approach of inclass theory, hands-on labs, and selfpaced learning.” The program has helped over 200 students at six different colleges across the United States gain knowledge regarding battery architecture, charging technology, and Tesla-specific repair procedures. This training will then lead to employment with Tesla at one of its many service centers located in North America. “Our new Electric Vehicle Service (EVS) Center will allow students in the Southeast United States to train as electric vehicle technicians in our state-of-the-art facility,” MDC west campus president Dr. Beverly MooreGarcia said in a press release from the school. “Miami Dade College is committed to establishing industry partnerships such as the one with Tesla to provide students with industry skills and certifications which lead to in-demand careers.” The growing electric car industry will offer more jobs for those who are interested in working on battery-powered cars. The demand for electric vehicles is steadily increasing, and MDC is focused on providing its students with jobs following

the conclusion of their education. “With the opening of the new training center, students will be able to compete for opportunities in the growing field of electric vehicle service technicians,” MDC’s Interim President Dr. Rolando Montoya stated. “The College continues to provide our students with cutting-edge technology training programs in preparation of today’s competitive global workplace.” Tesla is leading the charge in the transition to vehicles not powered by petrol-based products. In fact, Reuters reported in October that Tesla is officially the United States’ most valuable car company after its market capitalization was quoted at $53 billion following the release of its Q3 earnings report. This figure is $2 billion above General Motors, the company recognized as the United States’ most valuable carmaker following the conclusion Q2 2019. Tesla’s START program is available in California, Florida, North Carolina, New York, and Washington State at various colleges. We thank Teslarati.com for reprint permission.

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Continued from Cover

Deer-Related Collisions

FOX13 cameras captured a scene where a deer was hit near Getwell Road and Holmes Road, shortly before 6 a.m. on Tuesday, Nov. 26. Police stayed on the scene to make sure other drivers didn’t hit the deer. Diffee told me the increase in deer damage business started back in October when the drought ended and the rain picked up. After talking to game officials, between the cold weather snap, deer mating season and a lot of hunters in the woods, that’s what’s keeping body shops in business. “This one right here is about $5,500 to $5,700 worth of damage right here, and this one is about $4,700 worth of damage right here,” Diffee said. Diffee told us most of the small jobs he does to repair deer damage have run about $2,500 to all the way to having the vehicle totaled out. Wildlife officials told us deer are more likely to move early in the morning or late in the evening. Also, deer tend to move on

moonless dark nights to avoid predators, which means driving in bright daylight hours reduces your chance of hitting a deer. “My friend had had them go through that window and out the windshield and fortunately they weren’t hurt but yeah slow down especially at night,” said Brad McCullough, of Horn Lake, MS. Gloria Avant is traveling from Chicago to see family in southern Mississippi. She said she and her husband almost hit a deer on the interstate. “What was going through my head is that I was just thankful that he crossed, and we didn’t make contact,” she said. “Just thanking God.” Mississippi Highway Patrol told us if a deer runs out in front of your car, hit the deer because if you swerve you could hit another car or run into a tree or ditch.“Well my thoughts are if there is any way I can avoid hitting the deer, I am not going to hit them, but if it is going to put me in danger, then I guess I will just hit them and pray for the best,” Avant said. We thank Fox13 Memphis for reprint permission.

Deputies Searching for Suspect in Body Shop Thefts

Florida AOB Legislation Dies in Committee

AL Students Get a Chance for Industry Experience

by Emmariah Holcomb, glassBYTEs.com

by Donna Williams, WDHN News

Florida’s Senate Banking and Insurance committee meeting ended in a split four-to-four vote on proposed legislation that proponents claimed would help decrease alleged auto glass repair and replacement fraud. Despite prior changes meant to address public concerns, some took issue with the proposed bill, requesting that further revisions be made. “I have several problems with the amendment as it stands,” said Todd Palmer, Mr. Auto Glass coowner, during the public testimony portion of the meeting. “The biggest problem is that it only addresses independent glass shops.” Senator Jeff Brandes (R-St. Petersburg) said he hopes to see the topic again. “This issue is not going away … the Florida legislature has got to get it right,” said Brandes. “Car owners are tired of paying high prices for auto insurance, and one of the reasons their paying high prices is auto glass and these crazy claims.” We thank glassBYTEs.com for reprint permission.

Houston County, AL, Career Academy’s students are getting hands-on experience as part of an agreement with Bondy’s Ford Lincoln. This program will increase awareness of Ford and Lincoln dealership career opportunity for students. As high school students enter and start the program, they will get the opportunity to shadow technicians, while some may gain part-time employment. One of the students tells WDHN this program is a great opportunity. “From what they’ve offered, I’m pretty sure I can get some good certification and stuff and maybe go work for them,” Dillan Tatum said. “From what I’ve heard there’s a lot of money involved, and that’s something that can better my future.” This program was developed with the objective to increase the quality and quantity of high school students entering post-secondary automotive education, and ultimately the automotive technician career. We thank WDHN News for reprint permission.

CITY KIA OF GREATER ORLANDO

by Staff, WBTV 13 News

Darlington County, SC, deputies are investigating multiple thefts from an area body shop. According to the Darlington County Sheriff’s Office, deputies are investigating multiple thefts of vehicle parts from Hutson Body Shop on Patrick Highway in North Hartsville, SC, that occurred over the past few months. Investigators have released surveillance video from the business to help identify the suspect. Investigators believe it to be one individual responsible for the multiple thefts. If you have any information or are able to identify the suspect, you are asked to contact Darlington County Sheriff’s Investigator Chuckie Baxley at (843) 398-4501. We thank WBTV 13 News for reprint permission.

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Gerber Collision & Glass Opens Repair Center in FL

The Boyd Group Inc. announced the opening of a collision repair center in Daytona Beach, FL. The location previously housed a dealership collision repair center before closing in 2017. Daytona Beach is the main city in a metropolitan area of approximately 600,000 people and is home to the Daytona 500, the most prestigious race on the NASCAR schedule that annually draws more than 200,000 attendees. Daytona Beach is located about 50 miles northeast of Orlando and 85 miles southeast of Jacksonville. “The opening of this location in Daytona Beach enhances our established brand in Florida and exhibits our commitment to grow,” said Tim O’Day, president and COO of the Boyd Group. “We are eager to deliver our high-quality service to customers and insurance partners in this market.” For more information, please contact Stephen Boyd at stephen.boyd@boydgroup.com.

Joint Motion to Continue and Motion to Compel Filed in Allstate v. AGA Lawsuit by Emmariah Holcomb, glassBYTEs.com

“Plaintiffs [Allstate] and defendants [Auto Glass America and Charles Isaly] jointly move for an order continuing all case deadlines for a period of four months in order to allow the parties to fully address the new issues raised in defendants’ counterclaim, to address defendants’ class action claims, and to address any additional issues raised in an amended counterclaim,” portions of a newly filed joint motion to continue trial reads. Both parties in the Allstate v. Auto Glass America (AGA) and its owner Isaly, filed a joint motion to continue trial proceedings and all remaining pretrial deadlines. The lawsuit began with Allstate’s December 2018 complaint, in which the company detailed ten counts against AGA and Isaly, stating the pair “tried to pressure Allstate’s insureds into hiring them for windshield replacements, obtaining assignments of benefits (AOBs) from insureds, submitting invoices to Allstate for excessive and unreasonable amounts and fil[ing] over 1,400 lawsuits for re-

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

covery of excessive and unreasonable amounts,” by stating Allstate shouldn’t be entitled to any financial relief.

Motion Regarding Counterclaim Also Filed According to court documents, the joint motion was not the only item filed in the Florida middle courtroom, as Allstate also filed a motion to compel. If granted this motion would require the defendant’s [AGA and Isaly] to produce additional documents to support the pairs’ new allegations seen in the counterclaim the pair filed against the insurance company. According to court documents, Allstate is requesting AGA and Isaly produce several items for the court, which include: 1. “All invoices submitted by or on behalf of AGA to Allstate seeking payment for windshield repairs or replacements; 2. All work orders generated in connection with AGA’s repairs or replacements of windshields for which it has sought payment by Allstate;

3. Communications between AGA and Allstate regarding or pertaining to any Allstate insured;

4. Copies of recordings of calls between AGA and any Allstate insured, agent, or employee; 5. Payroll records of AGA’s employees; and

6. Invoices, work orders, purchase orders, or other documents showing AGA’s purchase of windshields that were used in replacing windshields of Allstate’s insureds.” AGA and Isaly responded by stating Allstate’s additional requested information is not needed in pursuing the lawsuit. “This request seeks private and confidential financial records regarding non-parties and is neither relevant nor proportional to the case nor proportional to the case nor reasonably limited in scope. AGA does not intend to produce responsive documents,” a portion of AGA and Isaly’s response reads. We thank glassBYTEs.com for reprint permission.

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

NCACAR and SCACAR Kick Off Series of Estimating Courses by Chasidy Rae Sisk

In response to requests from association members, the North Carolina Association of Collision and Autobody Repair (NCACAR) and the South Carolina Association of Collision and Autobody Repair (SCACAR) decided to conclude the year with a series of three estimating courses. The first two courses were held in November and set the stage for big things in the associations’ futures as they head into 2020.

On Nov. 16, NCACAR and SCACAR hosted their first estimating seminar in a three-part series at Guilford Tech in Greensboro, NC, featuring a live calibration demo and discussion with Jake Rodenroth and Kevin Dyk of asTech as well as a presentation by Michael Bradshaw of K&M Collision on “Estimating and Documentation.” Over 50 collision repair professionals attended the first seminar in this series in order to learn about advanced estimating tactics. Josh Kent, executive director of NCACAR and SCACAR, kicked things off with an explanation about the purpose of both associations, and he stressed the importance of industry professionals obtaining continuing education. NCACAR President Brian Davies emphasized his passion for the industry and his ultimate goal of “leaving the industry better than he found it” before introducing the first speaker of the evening, Bradshaw. Davies praised Bradshaw for all “the hard work that he has done in the state of North Carolina, from working with the department of insurance to blazing the trail towards a consumer-friendly collision environment for all shops.” Brian Shaw, vice president of NCACAR, recounted Bradshaw’s presentation: “[Bradshaw] started by defining structural components on modern vehicles and the equipment and materials required to properly repair them. Bradshaw discussed how 16

he prepares for the blueprinting of the vehicle and the resources he uses, such as www.DEGWEB.org, database procedure pages, oem repair manuals, oem1stop.com and I-CAR. He also went in depth with his own take on the steps required to replace a quarter panel and what is ‘included’ in the database procedure pages. This portion of the presentation was based on a repair performed at K&M, and the class was eager to discuss how the list of not-included items is too long for the database to list.” “The overall theme of Bradshaw’s presentation was that the repair not only has to look right - it has to be right and there are resources and documentation to support the steps required for compensation,” Shaw continued. “The presentation sparked conversation between shops, and barriers were broken down. Shops were sharing experiences, concerns and solutions with each other between bites of the gourmetcatered lunch generously provided by asTech.” Following lunch, Davies introduced Rodenroth who presented on when and why scans and calibrations should be performed. He began by sharing a sobering fact; for the third year in a row, the U.S. has experienced more than 40,000 automobilerelated deaths. Shaw recounted, “Auto manufacturers are designing vehicles to protect us from ourselves. The examples and demonstrations of the technology available on cars currently being manufactured and those coming in the future is enough to make most people’s heads spin.” Shaw added, “The aftermarket tools on the market to correct these systems and make sure they are in working order after a collision are not endorsed by vehicle manufacturers. Even a lot of manufacturer dealers are not trained or equipped to handle these calibrations. When one of these vehicles is repaired, it is important to make sure that any sublet vendors that are used are actually performing the required operations. Astech demonstrated the setup for a vehicle requiring a front distance sensor calibration and the importance of using the manufacturer-engineered targets. The design, build and accuracy of the OEM targets is

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

unmatched in the aftermarket as of yet.” NCACAR and SCACAR believe that the educational opportunity was appreciated by attendees. “The atmosphere of the day was not one of defeat. The attendees are excited to get back to their markets and implement things that were learned,”

Shaw stated. “The purpose of the class was to educate shop owners and estimators who have a desire to continue to learn, that was certainly accomplished. These classes and, in a larger sense, the association, are important because information is being brought to areas that otherwise would be unavailable to some shops. The event was very well attended, and the information was world-class.” On Nov. 23, the second seminar in this series featured Mike Lanza

of Sherwin-Williams who presented “Estimating for Profit” at FlorenceDarlington Tech in Florence, SC. The session was sponsored by Sherwin-Williams Automotive Finishes and Five Star Collision Centers. According to Executive Director Josh Kent, “We had a great turnout in Florence as well with around 40 collision repair professionals attending our first event in their area. We were particularly excited to see a lot of new faces.” After Kent welcomed attendees and provided updates on upcoming association events, Brandon Roark from Sherwin-Williams introduced Lanza. Lanza discussed not-included items on a vehicle, using an example vehicle for attendees’ benefit. Kent shared, “Mike was a great speaker who kept everyone engaged and involved. He expressed that it’s imperative for shops to follow OEM procedures and also that everything is a business decision. Mike’s example revealed estimates that varied greatly, demonstrating that there is See Estimating Courses, Page 19

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Continued from Cover

Retain Employees

its attributes change,” said Daugherty, who has worked with Vehicle Service Group, Chief’s parent company, for the past 24 years. “The goal of an ADAS calibration is to reorient the sensors to where the physical body of the vehicle is in relation to the drivetrain and how it goes down the road.”

Currently, when repairing cars with ADAS technology, repairers either conduct a dynamic calibration that requires test driving a vehicle

while it is connected to a scan tool, or a static calibration in a facility using specialized targets and equipment. Taking this into consideration, Daugherty said Chief Collision Technology and Burke Porter Group set out to offer repairers technologically advanced equipment to accurately and efficiently calibrate vehicles while following OEM requirements. Burke Porter Group provides assembly automation design, manufacturing and testing, as well as specialty equipment for both laboratory research and development, and production end-of-line (EOL) testing to OEMs. “The company has been a designer and supplier of endof-line OEM factory calibration systems since the early 2000s,” said Daugherty. “They have footprints in all of the OE factories across the world. They are very knowledgeable and able to understand what’s coming before it hits the streets in the aftermarket.” “Together, we are addressing a significantly unmet need for safe and

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

actly; only then is an access code provided to unlock the system. “Once the course is complete and the technician provides attestation that he has followed the OEM repair procedures to prepare the vehicle for calibration, the tablet will walk the operator through every step of what the OEM procedure says to do,” said Daugherty. Repairers then plug the tablet into the vehicle. Mosaic ADT gives a complete picture of the ADAS techMosaic ADT gives a complete picture of the ADAS nologies that are part of that technologies that are part of the car and all of the car, shows all of the OEM OEM repair procedures associated with it. Credit: repair procedures associChief Collision Technology ated with it and is automatlution using factory developed cali- ically updated. This might include questions bration technology to place vehicles such as: Is the gas tank full? Did you on the road safely.” Mosaic ADT can perform cali- check the tire pressure? Is the windbrations on both radar and vision sys- shield clean? What is the ride height? All of the information is stored in tems. Prior to using the equipment, an operator is required to go through the cloud so there is a vehicle repair an online Chief training course to be history for future reference. Daugherty instructed in not only how the equip- said that is a huge benefit for shops ment works, but also educated on helping them maintain control of the ADAS technology and why the cali- repair and limiting their liability. “Not only can they document that bration process must be followed exreliable calibrations as ADAS systems continue to quickly penetrate the market,” said David DeBoer, CEO of Burke Porter Group. “Mosaic ADT offers a cost-effective aftermarket so-

they repaired the car properly, but they can also attach the information to their estimating system,” he said. Daugherty explained that the calibration process involves structurally aligning the car and drivetrain as well as orientating the sensors. “No matter whose system you use, the position of the vehicle in relationship to the target is absolutely critical,” he said.

Chief Collision Technology showcased Mosaic Advanced Diagnostics Technology (ADT) during SEMA 2019 in Las Vegas. Credit: Chief Collision Technology

With most systems, repairers must manually adjust the target. Daugherty said this can be a very laborious process and can often take one to three hours, which slows down a shop’s cycle time. With Mosaic ADT, the system automatically finds the centerline of

the vehicle and adjusts the sensors. Once an operator positions a car within 100 mm of the target’s proper position, the system automatically places the target at the correct height, width and distance. All of the verification, alignment of the target and calibration of the sensors can be done in about 20 minutes, which Daugherty said allows for repeatable, errorfree calibrations. “What we’ve tried to do is take out as much human error as possible,” he said. Each time a calibration is conducted, a virtual, live diagnosis is performed remotely by an ASE-certified technician using an OEM scan tool. “We’re very excited to be able to bring to the industry a system that we believe helps shops properly calibrate vehicles,” said Daugherty. “With the ADAS technology in these vehicles, being able to have properly trained technicians understanding a complex process is a challenge and the more you can simplify that for the technician, the better results are you are going to have.” For more information, visit https: //chieftechnology.com/mosaic/.

Continued from Page 16

Estimating Courses

no consistency in this industry.” “In these seminars, the material is similar, but it’s presented in a different format. Both associations are dedicated to bringing important industry education to shops around our states,” Kent added. “I really enjoy watching these guys get excited about the information we’re sharing because most think it’s impossible to get paid, or they come from the mentality that they work for the insurance companies and are floored at the idea that they work for the customer and don’t have to give everything away for free; it just requires research and hard work on their end.” On Dec. 7, NCACAR and SCACAR will host the third and final estimating class in their series to end the year. It will be held at Kemperle in Charlotte, NC, and will include a presentation on “Effective Estimating,” delivered by BASF’s AUTOBODY

John Shoemaker. Kemperle is the event sponsor. NCACAR and SCACAR are looking forward to 2020 with the intent of hosting events monthly between the two states. NCACAR will hold a member meeting on Jan. 24 in Charlotte, NC, and the associations are excited to collaborate for their 2nd Annual Carolinas Collision Conference, scheduled for April 30 through May 2, 2020. Kent hinted, “I will be inviting shops from GA, FL, TN, VA, SC and NC to attend as we have some of the industry’s biggest names attending and we are kicking it off with a two-state career fair with Brandon Eckenrode of Collision Repair Education Foundation. Brandon and I will be doing things they have not done in the past which we are extremely excited about!”

For more information about the associations, visit their new combined website at www.carolinascollision association.com.

www.autobodynews.com

UPDATED DAILY

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

Continued from Cover

CIC Committees

ing on a vehicle. Ford’s procedure, for example, is three pages long, with specifications for the size and shape the weld nugget should be based on the thickness of the metal being welded. Some automakers call for spot welding with the E-coat in place, Chess said, while others say it has to be stripped off. Also during the committee’s presentation in Las Vegas, Kye Yeung, owner of a Southern California shop, certified and specializing in high-end vehicles, said weld testing can be done using coupons, but that it’s important that the tests be done on comparable materials to what will be welded; he suggests using some of the damaged material removed from the vehicle or, if sectioning, using some of the excess material from the new part being installed. Yeung said electrical output can vary throughout the shop, so he suggests moving the vehicle – and doing the destructive test welds – in the area of the shop where you know there’s adequate power. He also said it’s a good idea for shops to have standardized operating procedures related to welding. “At our shop, we take the wire out of the welder after the repair,” he said. “So when a tech pulls up the procedure, he has to start from square one and not make the assumption that the welding wire that’s in the machine is for that job. It’s a process you should instill in your shop, even though it might take a little extra time. They could be getting a poor weld because they’re using the wrong material.” Yeung said his shop also holds “weld-off competitions,” with the winner receiving a free lunch. “It takes your A-techs who weld well, and your lower-skilled guys who are aspiring to do well, and allows them to do that comparison,” Yeung said. “It makes them practice during the week. It brings everybody up.” New Type of Vehicle Test Drive CIC’s “Emerging Technologies” committee has adopted a new definition of a “dynamic systems verification (DSV) road test,” in an effort to distinguish test drives done to check advanced driver assistance systems 20

(ADAS) with those more traditionally done just to verify standard vehicle performance, such as checking for wind noise, pulling conditions or vibrations. The DSV road test, according to the new definition, checks for those items but also requires “qualified shop personnel to identify and confirm performance of … advanced ve-

Scott Kaboos of American Honda discussed how OEM repair procedures are developed and tested. Credit: John Yoswick

hicle features and systems including driver assistance and safety systems, such as advanced cruise control and safety restraint systems.” The committee hopes to have the definition adopted and used by the automakers and estimating system providers. During the committee’s presentation at CIC in Las Vegas, Jake Rodenroth of asTech suggested that shops provide more documentation of what’s involved in such road tests. “How about you document the ‘in’ and ‘out’ mileage of the vehicle,” Rodenroth said. “How about you include a Google map of where you drove,” he added. “Uber gives us a little map of our trip on every receipt, yet we don’t do that when we do a road test. If you’re in L.A., maybe you had to get to the suburbs to meet the requirements for that road test. Explain that. What systems did you check? Tire-pressure monitoring, blind-spot monitoring, traction control? Explain what you did.” Failure to Follow OEM Procedures Can Be Costly Automaker repair procedures were the focus of another committee discussion at CIC in Las Vegas, including discussing how the procedures are developed and tested. Scott Kaboos, chief collision repair instructor for American Honda, said he was in Japan earlier this year and had an opportunity to see how the company’s body repair manual is written. Com-

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

puter simulations are used as the vehicle is being designed to consider, for example, how to address an area of a vehicle that will be inaccessible to a repairer needing to replace a spot weld. “If it can’t be spot-welded, we know that flange has to be wider so we can MIG braze it, or it has to be made of different materials so we can actually MAG weld it,” Kaboos said. “That kind of blew my mind when I saw it. I’ve been a technician all my life. I never thought that some manufacturer would be thinking about fixing this wrecked car two or three years before it’s built.” If the vehicle includes new materials or structure, or a sectioning procedure that hasn’t been tested and proven on other Honda vehicles, Kaboos said, more physical testing is done. “We actually do crush tests on those actual parts, and ultimately we end up with crash tests on vehicles.” Based on the discussion at CIC, collision shops – even dealership shops – that realize mid-repair that they failed to follow OEM repair procedures shouldn’t expect too much help from the automakers. John Eck

of General Motors (GM) said a dealership shop called GM because a technician had cut too far forward into a T1 truck, not realizing the automaker has a sectioning joint for the rear-end. “They said, ‘Now what,’ and I asked, ‘How much did you just buy that truck back for because it’s done,’” Eck said. “The technician had been chopping up trucks so long that he didn’t [research and learn] we actually made an easier repair process by putting a sectioning joint in the back so you could repair it in a more efficient, cost-effective manner, saving more vehicles by lowering the cost of repair. The technician made a big mistake that day. It would have been a simple one if he’d just looked at the procedures.” Mark Allen of Audi of America offered a similar experience about a shop – that had claimed it was I-CAR Gold Class and factory-trained by several European automakers, when it wasn’t – that made pulls to the all-aluminum rear structure of an Audi Q7. “That was about $86,000, because they cracked the cast-aluminum frame rails,” Allen said. “So, first, don’t misrepresent yourself. And second, follow the repair procedures.”

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Automotive Industry Faces Disruption Driven by Societal Changes by Gary Ledoux

“It is my belief that every aspect of the automotive industry value-chain will be disrupted in some way, shape or form. I also believe there will be a small percentage of existing businesses that will figure out how to be a disruptor, a large percentage of existing business that will be disrupted, and last but not least, there will be new companies that enter the automotive market as disruptors,” wrote industry leader Frank Terlep near the opening of his new book, Auto Industry Disruption – Who and What is Being Disrupted, and What To Do About it. Since the earliest days of the collision industry trade magazines in the mid-1960s, columnists, editors, industry leaders and pundits have consistently exercised two themes to talk about the state of the industry. The first one is, “We have seen more change in the last five years than we saw in the previous 20.” The other is, “We are roaring into the future and evolutionary or revolutionary changes

will be taking place. Get ready now for the future.” Terlep’s book follows a similar theme, but the “intensity switch” is turned all the way up to its highest setting. It is not just the collision industry side of the business that is being affected. The entire automotive industry is changing, changing right now – changing before our eyes, in ways that are more profound than ever before. The changes are not evolutionary, not even revolutionary – but are best described as “a disruption” driven by technology, socioeconomic and demographic change and the emergence of new business models. Automotive technology is changing quickly. Cars are no longer cars but computers on wheels and technicians will need to learn how to properly repair, reset and recalibrate a damaged vehicle to make it roadworthy and safe again. Hardware technology is increasing computing power, miniaturizing it, and making components easier to install. Software technology is changing, allow-

ing a vehicle to receive software updates on the fly without ever visiting a dealership. Broadband connectivity will disrupt car ownership models allowing ridesharing and provide the foundation for intelligent transportation systems. Cameras are proliferating. Soon, six to ten cameras on a car will be the norm. So, while collision technicians debate the virtues of repairing sheet metal as opposed to panel replacement, the question becomes, “Will all ADAS systems components work as they should upon completion of repairs, and can the car still maintain internet connection?” A Brave New World Terlep’s vision of a “brave new world” of a disrupted collision repair industry includes:

• ADAS systems and related technology will make cars safer to drive. This, combined with autonomous cars and concepts like ride-sharing and improved ride-hailing technology, and the socio-economic acceptance of

using different means of short-hop transportation in an increasingly urbanized world means fewer cars on the road and fewer accidents. • The era of the “two-car” family is quickly dying. Given the expense, there is less and less reason for having a second car when so many other alternatives are emerging. Hence, less cars, less accidents. • Fewer accidents means a consolidation of all areas of the collision industry including the number of shops needed, along with the infrastructure to support those shops. This includes parts suppliers (including OE’s), as well as paint and equipment suppliers.

• The proliferation of electric cars means less mechanical maintenance – good for vehicle owners as far as downtime and cost is concerned, a disruption for car dealers who depend on parts and service sales for a good portion of their gross profit and a disruption for independent me-

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

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

Dept. Hours: M-F 8-7 mfranceschi@southhonda.com

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888-205-2564 727-530-1173

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Dept. Hours: M-F 7-7; Sat 7-6 gperkins@careypaul.com

Dept. Hours: M-F 7-7; Sat 8-5; Sun 10-3 santosr1@autonation.com

Headquarter Honda

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Hendrick Honda Bradenton

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800-733-2210 706-228-7040

Dept. Hours: M-F 7:30-7; Sat 8-4 Kris.kitzman@hendrickauto.com

Dept. Hours: M-F 7:30-6; Sat 8-5 tdunn@geraldjoneshonda.com

Dept. Hours: M-F 7-7; Sat 7-4 calvarez@bramanhonda.com

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Honda Mall of Georgia

Braman Honda of Palm Beach

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877-544-2249 Dept. Hours: M-F 7-7; Sat 7:30-4 robbutton@rickcase.com

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Leith Acura

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AutoNation Honda West Knoxville K n o x ville

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Hall Honda Virginia Beach

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Dept. Hours: M-F 8-7; Sat 8-5 fox@hallauto.com

Dept. Hours: M-F 7:30-6 rossd1@autonation.com

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800-868-4118 423-652-9545

Dept. Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda.com

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888-513-5869 864-850-1200

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Dept. Hours: M-F 7-6; Sat 8-5 christopher.gagnon@hendrickauto.com

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800-982-7290 901-255-3780

800-446-0160 804-672-8811 Dept. Hours: M-Fri 7:30-6:30; Sat 8-5 wbhonda@aol.com

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877-273-4442 803-691-8585 Dept. Hours: M-F 7-7; Sat 7-4 www.copytk.com

VIRGINIA

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800-355-2818 703-550-0205 Dept. Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup.com

Radley Acura F a l l s C h u rch

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autobodynews.com / JANUARY 2020 AUTOBODY NEWS

chanical shops and collision shops who will have to deal with technologies they are not familiar with. • The proliferation of electric cars and their attendant technology, some of which haven’t even been invented yet, will require shops to invest heavily in training and new tools and equipment – all of which will quickly become obsolete as technology moves forward at mind-numbing speed.

Sunrise – Sunset As the disruptive climate grows and expands, some companies will be greatly consolidating or “sun-setting” altogether, while others will experience birth and meteoric growth. Just as innovative companies found a way to make vast improvements in internal combustion cars, emerging companies, through technology and innovation, will find a way to improve electric car performance, the experience of driving an internal combustion car, and enhance the customer experience in the transportation field overall. “Sunrise” initiatives include: •

A company is already working

on a headrest that can “sense” a driver’s physical condition including fatigue, drowsiness, stress, etc., and adjust the car’s ADAS systems accordingly … cutting down on vehicle accidents.

• A system will be developed to electronically handle all aspects of a collision repair from the moment the accident occurs. Sensors will determine the physical condition of the driver and occupants, the extent of damage, order the appropriate parts, send them to the closest OE certified body shop, and notify the insurance carrier – all in a matter of seconds – not hours or days. • A person’s daily commute will change into an end-to-end mobility experience with an interconnected ecosystem of multiple players and providers including one or more modes of transportation.

• Connected cars and their attendant systems will generate vast amounts of data. Terlep calls this data “the world’s new oil.” Those that learn how to capture, control,

manipulate and leverage all this data will be the big winners in a disrupted world. Of course, this data must be stored and used responsibly. • OE’s will use connected-car data to reverse its business model for designing and developing cars. Rather than build a car that executives think customers want and hope it sells, they will be able to capture how consumers use existing products and enhance that experience by providing products they know the customer will appreciate.

• Autonomous cars that sustain minor collision damage will be able to drive themselves to a pre-assigned repair facility. Meanwhile, an alternative car will be dispatched to provide service in the interim. Once the first car is repaired, it will be placed back into service, the insurance claim will be processed automatically within minutes … and life will go on. Some company, yet to be founded, will be controlling this whole operation. Auto Insurance Re-Invented Not unlike the collision repair indus-

try, the auto insurance industry is loath to change. However, as is the nature of “disruption,” time, technology, and consumer preference will eventually force their hand.

• New players will emerge in the auto insurance space and provide products and services never before seen. Imagine paying a flat fee per month for basic fire and theft insurance, and then pay only for the miles you actually drive by logging into an app on your smartphone. • New insurance products may include cyber-security insurance to ensure against hacking and malware.

• Consumers may be able to set their own prices ... In other words, come up with a monthly premium that fits their budget, and then see what that will provide.

• Consumers may be able to use “peer pricing” whereby they will apply for an insurance policy providing various characteristics such as year, make and model of car, ADAS characteristics, age, gender, family

d Nee em u o Kia ts Y eed Th r d a P N nts ate ists u The n You c i o c e l ed ry Wh Dis f D ecia nto

se e er y o e p a v v v i i S t l e n i m I t r tisfy e c D e n Tea Parts ompe v i ly ,I • Sa e ens e Dai C t d x E • Tims an ers Fre • e • av ofit tom S

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Mon-Sat 7-7 7550 Hendrick Auto Plaza NW Concord, NC 28027

www.hendrickkiaofconcord.com 26

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

status, job, etc., and get a quote most commonly selected by their peers.

• Insurance company adjusters will all but disappear being replaced with vehicle sensors, digital photos and artificial intelligence. Exciting Times “This is an exciting time to be part of the automotive industry. Innovation and creativity can be found almost everywhere, while new entrepreneurs, investors and incumbents are all jumping into the ACES (Autonomous, Connected, Electric, Shared) pool!” wrote Terlep. “The way to be successful in a disruptive climate,” he says, “is to keep innovating. Remember, innovation is NOT technology. Innovation equates to any way you or your business find a way to do more for a client than anybody else does.” In his book, Terlep offers several ideas for collision repair shops, OE’s, car dealers and others to become the disruptor, rather than the disrupted. It’s not rocket science, but it does require a business owner to pay attention to what is going on

around them, he said. In a telephone interview, Terlep noted, “If businesses don’t recognize these changes now and begin to adapt, they’ll be gone in five years.” As an example, Terlep noted the rather speedy demise of the Blockbuster video rental chain because they failed to realize the emerging streaming video business model of Netflix. By the time Blockbuster realized what was happening, technology and social change had occurred … and it was too late for them. Terlep has been a key player, innovator and disruptor in several collision repair-related companies over the past 40 years including AkzoNobel and Mitchell International as well as companies he founded including Automotive Solutions, CarStation.com, Summit Software and Summit E-marketing. Terlep’s book can soon be found on Amazon and all e-book platforms. For a FREE copy of Chapter One of this informative new book “Auto Industry Disruption, what and who is being disrupted and what to do about it,” please visit www.auto-disruption .com/pl/109601.

Ford ‘Death Wobble’ Lawsuit Says F-250 and F-350 Trucks Affected by David A. Wood, CarCompaints.com

A Ford “death wobble” lawsuit alleges the automaker concealed and omitted information about suspension problems in 2005-2019 Ford F-250 and F-350 trucks. According to the class action, Ford routinely tells truck owners any potential repairs won’t be covered under warranties, and dealerships sometimes completely deny there are wobble problems. Wear and tear of the steering damper brackets may cause them to loosen, along with other components such as the shocks, struts, ball joints and control arms. F-250 and F-350 owners claim the so-called death wobble occurs due to defects in the pitman arms, placing a driver in a shocked condition when the wobble occurs while driving. Customers also allege hitting a bump in the road while traveling at least 50 mph can easily cause the death wobble to the point of losing steering control. In addition, truck owners say they must suddenly slow the trucks down to control the shaking and vibrations.

According to the death wobble class action, the trucks don’t need to be old because customers sometimes complain their trucks wobble even when the vehicles are still under the original warranties. It’s common Ford F-250 and F350 owners complain about being scared of being killed if the trucks start wobbling while driving. Also, allegedly common is how dealerships blame the death wobble on faulty maintenance of the trucks. In addition to alleged dealer denials and unnecessary repairs that don’t help the problem, dozens of truck owners allege they quickly lost control of the trucks, with certain situations causing crashes and injuries. The Ford death wobble lawsuit was filed in the U.S. District Court for the Southern District of California - Smalley, et al., v. Ford Motor Company. The plaintiffs are represented by Dreyer Babich Buccola Wood Campora, LLP. CarComplaints.com has F-250 and F-350 customer complaints. We thank CarCompaints.com for reprint permission.

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Solving the Tech Shortage: How Conditions, Culture & Compensation Can Help Body Shops Attract & Retain Employees by Stacey Phillips

attributes this to their working conditions, culture and compensation.

It wasn’t long ago when businesses looking for new employees put an ad Conditions in the newspaper hoping for a re- When a business owner first opens a sponse. About a dozen or more can- new body shop, White said he or she didates applied, and someone would usually sees the potential for success. be hired. Today, the scenario is much Over time, this often changes, and the different. Rick White, presfocus becomes the problems ident of 180biz, said if that or challenges occurring at same type of ad is circulated the company. As a result, now—printed or online— White stressed the imporshop owners and managers tance of continuously workshouldn’t be surprised if ing on a business to create there are no responses. better conditions. During a recent webi“No matter how bad you Credit: Rick White nar coordinated by the Althink your current conditions liance of Automotive Service are, there is another person who would Providers (AASP), White shared ad- kill to be in your position,” he said. vice on how to best attract and retain “See the potential in your business and talent in the collision repair industry. then grow and make problems better White said “chasing people” to by taking baby steps—make things a come to work isn’t an effective strat- little better every month.” egy. Over the years working with “The reality is that you want the clients, White has found that conbest people working in your shop,” stant improvement can make a big he said. “Instead of chasing people, difference with a team. you have to start to attract them.” “All you have to do is make imThis requires a significant change provements and people are going to in mindset. Typically, White said think it’s amazing,” he said. “They businesses search for help when an are going to value you and see you employee leaves the company. In- care about them.” stead, he recommends that owners Some of the examples he ofand managers stop hiring and begin fered that can help improve a facilrecruiting. ity include good lighting, a system The best time to do this, accord- for parts, investing in equipment ing to White, is ALL the time. and training, and an organized park“You want to be constantly re- ing lot. Good working conditions, cruiting so when somebody gives you according to White, can make the notice, you’ll have somebody or difference between a job candidate ‘somebodies’ to call,” he said. working at your shop or finding emWhen an employee first gives ployment somewhere else. notice, White discourages shops from White also recommended getaccepting it. ting the whole team involved so “Let them go unless they are a there is buy-in and they feel part of superstar player,” he said. “If it is a the success. technician, you are going to have six months of comebacks because they Culture are no longer emotionally or men- White said that culture, which he detally in the game. I guarantee that no fined as how a team feels working at matter how bad it seems, it’s going your company, has to start with into be better than what you have to tention. deal with on the other end.” “Don’t accidentally create a culIn his one-hour presentation, ture,” he advised. “If you are not inWhite shared a hiring strategy used tentionally setting the culture—the by Apple, Google and Microsoft. values and everything you want your Rather than putting out ads looking company run by—somebody else is.” for candidates, companies such as It all starts with hiring a new these regularly receive resumes. He employee. White recommends hav28

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

ing two interviews as part of the process. First, is a face-to-face interview at the shop going through a series of questions to better understand the person in a non-judgmental way. “You are not there to determine whether or not they are a good fit; you are there to get to know them,” he explained. The next step is to talk to his or her references. In addition to reaching out to prior employers and personal references, it can also be helpful to talk to peers. Many times, a shop owner is not going to share many details about a previous employee so there is one question White always recommends asking: Is this person eligible for rehire? “It’s a great question to ask and you are going to get a really solid answer,” he said. “You are either going to hear, “Yes, I wish they were here today,” or “No, I don’t want to see them again.” White said shops owners and managers should keep in mind they

are hiring human beings, not machines. “They have goals, fears, desires and nightmares,” said White. “You have to get to understand your employees and know them as well as you can.” He pointed out that when you hire an employee, you are hiring their entire family as well. “We have to recognize they have a life outside of the business… and they are concerned about their future,” he said. “When you get the family involved, it’s like having advocates at home that want them to stay working there.” White provided several suggestions on how to best connect with employees and their families, such as giving birthday gifts to their children or sponsoring their soccer team. He said it can be helpful to learn what employees enjoy doing in their spare time, so if they go above and beyond at work, you can tie in different rewards and give them something meaningful. See Retain Employees, Page 33

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Tips for Busy Body Shops with Stacey Phillips

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

How to Position Your Collision Repair Shop for Sustainability Over the last several years, the collision repair industry has undergone tremendous change and continues to do so, said John Shoemaker, business development manager at BASF Automotive Refinishing North America. During the November 2019 SEMA Show in Las Vegas, Shoemaker talked about how collision repair businesses can survive these changes and be successful and sustainable in the future. His presentation was part of the Society of Collision Repair Specialists (SCRS) Repairer Driven Education (RDE) Series. “If shops just want to survive, we can stay where we are and last another two to three years; with luck, we might last five,” said Shoemaker. “However, we are not going to sustain our businesses and move forward.” With the shift in how body shops operate, Shoemaker said it’s critical to work toward running a well-maintained and equipped business. This involves continuous improvement with training, certifications and developing best practices. Prior to working at BASF, Shoemaker ran a three-shop MSO for a dealer group in Southwest Virginia for 18 years. When the business held staff meetings and talked about moving to the next level, he recalled sharing information from a book titled “Who Moved My Cheese” by Spencer Johnson. “The book talks about the four characteristics that represent the simple and complex parts of ourselves: sniff, scurry, hem and haw,” explained Shoemaker. “Those who sniff, are open to change early; others scurry into action. Those who hem and deny, resist change fearing it will lead to something worse; and those who “haw,” eventually learn to adapt when they realize change can lead to something better.” When you look at these descriptions in terms of a body shop, Shoemaker said businesses that are wanting to move forward should not “hem.”

“We have a lot of people in this industry who are sitting in ‘hem’ right now and hope things are not going to get worse, and that we reached the plateau and are going to be able to ride this out for the next four to five years,” he said.

John Shoemaker, business development manager at BASF Automotive Refinishing North America. Credit: Stacey Phillips

Instead, he said more shops need to act like “sniff” and “haw” and adapt moving forward. A Shift in Focus With OEM Certification Programs In a conversation with Scott Biggs, CEO of Assured Performance Network, Shoemaker said the business owner talked about a series of events that created a perfect storm of conditions that led to the Original Equipment Manufacturer (OEM) certification model. These included commonization, where shops weren’t differentiating themselves from their competition; the negativity buyers associated with having a poor collision repair experience; and the realization of liability, which remains with the repairer or body shop. The majority of shops also didn’t have the necessary equipment and training to repair vehicles properly. These points are detailed in the following Autobody News article: “The Best Body Shops’ Tips: How to Leverage the Certified Repair Model.” Meanwhile, the Collision Industry Conference (CIC) Definitions Committee was working toward creating an industry-wide definition for a collision repair provider. Part of the definition states a requirement that repairers, sublet providers and third-party service

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

providers meet OEM specifications regarding equipment, capabilities and training. Shoemaker stressed the importance of following OEM procedures and getting involved in OEM certification programs to best meet the needs ahead. He then discussed the different types of training programs currently available in the industry. They include the Inter-Industry Conference on Auto Collision Repair (ICAR)® Professional Development Program™ (PDP), the Automotive Management Institute (AMi) Professional Recognition Program, and OEM training. When deciding on which OEM certification program to focus on, Shoemaker recommended looking at a shop’s competition to help determine if the OEM program will provide the best return on investment. “Ask yourself, ‘do you want to

get certified on vehicles you are already repairing or drive new business?’” he said. “There are two schools of thought.” Many obtain OEM certifications directly through a car manufacturer. Shoemaker explained that the majority of programs are very selective, with an estimated 80 percent needing a referral. Assured Performance Network, a third-party provider, is the administrator for several of these OEM programs. “Assured Performance Network’s collaborative approach allows shops to join several certification programs at one time and one price, which can save them a significant amount of money and avoid redundancy.” Each certification program has specific facility and training requirements that meet the CIC definition of a general repair facility.

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For example, as part of some of the OEM open networks, such as BMW, Mercedes-Benz and Nissan, there is an estimator management training requirement. “Some of the OEMs are now requiring a certified estimator and certified management staff,” said Shoemaker. “That’s where AMi training comes in.” He pointed out the new expectation of office staff being skilled and trained. When it comes to equipment requirements, OEMs are brand specific. As a result, Shoemaker recommended that shops are forwardthinking to ensure the equipment will meet the shop’s long-term needs. He encouraged attendees to think about their purchasing decisions. He used an example of buying a new welder. “You need to do research and look at what’s going on in the industry and with cars,” said Shoemaker. “Then, determine if that welder is going to be the right welder to ensure it is going to be good for three to five years.” Shoemaker then discussed the benefits of getting certified. Along

with this comes a change to the way collision shops will find new business. “OEMs are now using telematics to locate certified collision repair shops,” said Shoemaker. “With telematics, First Notice of Loss (FNOL) is going to connect vehicle owners with certified collision repair shops.” Other benefits include better access to repair procedures and structural parts. With companies such as Volvo now restricting collision parts to its certified collision repair network, Shoemaker said this will become increasingly important. In addition, OEMs advertise for and refer shops that are part of their network. The Importance of Creating Best Practices Shoemaker also discussed the need for shops to change the way damage is documented and validate repair methods with OEM processes. “Make sure you have the documentation you need to tell insurers how the car is going to be fixed,” said Shoemaker. “There is only one way

to repair a car.” Shoemaker said we have all of the knowledge needed at our fingertips. He suggested accessing the free SCRS Complete Guide to Repair Planning and look into SCRS’s new estimate optimization software: Guide to Complete Repair Planning – Blueprint Optimization Tool. Other resources include the PPages (also called estimate guides), OEM1Stop, 3M Standard Operating Procedures (SOPs), I-CAR information, owners’ manuals and OEM procedures. He also suggested “reprogramming” damage appraisers and training them to describe repair operations as they expect the technician to complete them, identifying each of the steps required, ensuring the information is communicated to all involved and being specific with the necessary processes. “Not only is that how they get paid, but it also reduces your liability and ensures the car is repaired correctly,” he said. “Vehicles are getting too complex to not be educated enough to fix them, so we have to develop some best practices to harness

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all of this,” he said. He shared information from Dave Dunn’s book “Liquid Amalgam,” which talks about non-negotiables and core values. It is based on four principles:

1) Honesty—being truthful in all transactions and to all parties, 2) Excellence—to meet customers’ expectations and be equal to or better than the standards, 3) Accommodation—coming to an agreement with the customer and delivering on that agreement with the customer’s best interests in mind, and 4) Profitability—which gives stability and attracts desirable employees. “There is a lot of value in creating best practices and developing core values,” said Shoemaker. “I don’t think we spend enough time doing that.” He advised attendees to be consistent with principles and make sure they are clearly understood by all employees. “Ensure everyone knows their purpose; don’t waver and always ac-

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centuate, not sometimes,” he advised. “There is a big difference between always and sometimes. Always gets you where you want to be; sometimes takes you back where you were.” Once a shop has changed its processes, Shoemaker said the next step is marketing them to customers. After recognizing what enables the shop to stand out among its competitors—whether that is being OEM certified, I-CAR Gold Class or a family-owned business—the next step is to promote those differences to customers. He also mentioned the book “How to Market to People Not Like You” by Kelly McDonald. “The message of the book is to know where your business is coming from and where it’s not coming from and learn how to market to people who are not like you,” explained Shoemaker. He talked about the eight-step process of successful change based on the book “Our Iceberg is Melting” by John Kotter. • Create a sense of urgency;

• Build a Guiding Coalition; • Form a Strategic Vision & Initiatives; • Enlist a Volunteer Army; • Enable Action by Removing Barriers; • Generate Short-Term Wins; • Sustain Acceleration; and • Institute Change.

The challenge, according to Shoemaker, is creating a business culture for the future. “You must move past the status quo to get to tomorrow to be successful. Get out of dark ages and into daylight,” said Shoemaker. “We have to pull our heads out of the sand and move forward. Today is the day to take control of our businesses.” He recommended body shops read “The Secrets of America’s Greatest Body Shops” and ended the presentation with a quote from co-author David Luehr. “Do not limit the majesty of your dreams to your current level of competence,” said Luehr. “Know that all the education you need will be available along your journey.”

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Continued from Page 28

Retain Employees

He advised always being upfront with employees, creating a safe place for them to work, letting them know what’s going on in the business so they don’t worry, and always showing appreciation for their efforts. “They need a mentor and a friend—someone who cares about them and wants to see them achieve the highest they possibly can,” he said. Once a business culture is created, the next step is to communicate it to employees and explain what is expected. “The goal of communication is to convey a thought or process or act to another person,” he explained. “You want them walking away with the same picture in their head as you have.” In order to best communicate the message, he recommended talking slowly, really listening, and using what he referred to as the seven “Cs.” These include being clear, correct, concise, complete, concrete, considerate and courteous.

Compensation It should come as no surprise that excellent compensation is going to help attract and retain quality people, according to White. When deciding whether or not to offer a raise, he advised not to give an incremental cost of living raises. He referred to this as “replacement raises”—the cost of replacing an employee. “When thinking of compensation, recognize it’s wages as well as bonuses. Money is not going to be the key driver,” he explained. “Instead, you have to tap into why they are in this industry, what brought them here, and what they want to do.” White encouraged shop owners to think differently about what is offered to employees. That might include providing health insurance, a flexible schedule, paying for tools, tuition assistance or retirement. “The reality is the status quo doesn’t work anymore,” said White. “It’s going to be new thinking and new actions that are going to make a difference and it all starts with you.” For more information, email White at rick@180biz.com or call 540-833-2014 ext. 11.

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National 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.

Collision Repair Industry Associations Make 2020 New Year’s Resolutions For many, making a New Year’s resolution is an important part of celebrating the calendar changeover, and the most common resolutions are intended to improve an individual’s life – losing weight, learning something new, or saving more money. Studies show that 46% of those who make a New Year’s resolution are likely to succeed. Associations supporting the collision repair industry have also begun to evaluate what improvements they can make as the old year draws to a close, and several industry leaders were willing to share their 2020 New Year’s resolutions with Autobody News. A common resolution amongst association leadership is focused on growing their organization’s membership and meeting their members’ needs. Judell Anderson, executive director of AASP-MN, began, “We will continue to work on increasing member engagement. Members are the lifeblood of the association, and without their participation and input, the Alliance cannot be as impactful as we otherwise could be. Whether

volunteering for committee service, communicating with legislators, utilizing member benefit programs or simply being aware of and supporting our various initiatives, the Alliance will ultimately be stronger and more effective in our work on behalf of the industry if members are fully engaged. To that end, the association will work to create a more robust social media presence and overall communications strategy to more effectively engage members in all aspects of our work in the coming year.” Ray Fisher, executive director of ASA National, stated, “Wow, it’s hard to choose just one with all we have planned for 2020. Our focus in 34

2020 is our members. To that point, we want to help our affiliates even more with their event promotion while leveraging new programs, like our podcasts, to achieve success. We’ll also see the return of C.A.R.S. at the ASA Annual Business Meeting in the Dallas-Fort Worth area next year.” ABAT Executive Director Jill Tuggle hopes that the group will continue expanding their membership base, and she said, “We have joined forces with HABA and will be looking to grow our membership especially in the western part of the state.” Burl Richards, president of ABAT, added, “Stay the Course … don’t take your foot off the gas pedal. We’ve made great strides, and we are educating and making the industry better and stronger by sticking together and taking the time to continually push the boundaries to move the needle.” ASA Northwest’s 2020 Chairman Elect Bryan Kelley plans to enhance the association’s focus on members’ needs. “I often feel like we believe we know what our members want, and we then try to fill that belief. Instead, we should be constantly surveying and asking the big questions: what do our members really want from us? Once we have that information, we need to focus on the application and delivery. If you ask, they know you care, and if they know you care, they will continue to support you while you begin to navigate through change,” he pointed out. AASP/MA Executive Director Lucky Papageorg plans “to continue the momentum and growth of AASP/MA based on that platform of attaining a fair and reasonable labor rate while continuing to protect the consumers and collision repair industry. We’ll also be putting together a two-year business plan for the association and setting obtainable goals with greater participation at all levels.” IABA has some exciting things coming up in 2020, including the transition to a new and improved website

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

and members’ portal. IABA President Doug Martin shared, “This will help us push out info to the membership and keep them up to date with the event’s happening across the state. We will still have our quarterly chapter meetings, and several sponsors have committed to bring in key people to help us facilitate.” Legislative efforts continue to be a large priority for associations in the collision repair industry as 2020 approaches. Martin added, “A huge thing for the IABA is that we have hired Jack Molodanof, a California Auto Body Association lobbyist, as a government relations advisor to the IABA. Jack has tremendous knowledge of the collision industry and will help us build relationships in the state house along with the department of insurance. We are very excited for the new year.” CAWA plans to “complete a due diligence process to examine the establishment of a vehicle safety inspection program in the state of California,” Executive Director Rodney Pierini shared, and Fisher stated, “Expect more focus on our advocacy efforts in Washington, D.C., particularly as it relates to PMVI program legislation, data access, cyber security and our ongoing efforts to represent the independent repair shop community on telematics and cybersecurity developments in 2020.” Bob Amendola, ABAC president, intends for the association to “continue to strive for increased consumer awareness and empowerment regarding OEM parts, safe and proper repairs and their legal rights after an accident/as the vehicle owner. We plan to do so through social media and a series of informative videos that we are in the midst of producing. They will be released through an upcoming social media campaign in the beginning of the coming year.” “Technology – including advanced safety and crash avoidance systems and new manufacturing materials – has resulted in the need for collision repair shops to make significant investments in tooling, equip-

ment and training in order to conduct safe and proper repairs in accordance with manufacturer specifications,” Anderson shared. “Our OEM procedure legislative proposal aims to ensure appropriate insurer indemnification to insureds and third parties for the safe and proper repair of damaged vehicles, thereby improving the safety of the motoring public.” As technology continues to change constantly, the need for training becomes increasingly prevalent, and recognizing this imperative, many associations put a lot of emphasis on delivering valuable educational content to their member base. MSCRA Executive Director Ricki Garrett’s goal “is to host an even bigger and better conference and to provide our membership with excellent training opportunities. We also want to grow our membership through enhanced benefits.”

ASA Northwest President and Executive Director Jeff Lovell looks forward to growing the association’s new ATE East program, and NATA plans to host its second roundtable on April 25; Executive Director Cathi Webb said, “We hope to expand this meeting to reach even more influencers in our students’ career paths.” According to ARA Executive Director Sandy Blalock, the association plans to “continue to grow the educational content of the ARA University, incorporating training from industry suppliers and vendors as well as content submitted by ARA members themselves. The goal is to make the ARA University a living, breathing resource that is adding relevant content in real-time as the educational needs of the professional automotive recycling industry adapt to the dynamic automotive repair

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sector.” KABA Vice President Tony Adams noted the importance of getting “more information in the hands of our members to perform safe and proper repairs, so we can fulfill our mission of protecting Kansas current and future drivers.” ASA North Texas President John Firm stated, “Our goal is to help our membership with reduced cost of training and bring purpose to our meeting to help manage our members manage and operate their business more profitable.” AASP/NJ plans to continue providing education to members and encouraging members to share their successes with one another. President Jerry McNee stressed, “We are all in this together!” The industry also recognizes the need to pull together to ensure the future of the collision repair industry, and to that end, many associations have implemented various programs to ensure that future technicians are being properly trained. In addition to “continuing to perfect our training event, the ASTE,” IGONC intends to “add to our apprentice program,”

stated Tricia Sauls, associate executive director. “We are hoping to have 50 kids enrolled by graduation 2020.” NABA Vice President James Rodis said, “Our New Year’s resolution would have to be to get our youth opportunity council off the ground better. This is a program to help get more kids into our state’s auto body classes and try to break that mold of auto body technicians being a last resort job. We also want to just continue to grow the association so, as a group, our voices are louder.” WAC’s biggest goal in 2020 is “to stick with our path of working with the industry and schools to get industry related curriculum into all middle and high school classrooms as part of STEM learning,” President Shelly Jones stated. “We have started something big and intend to see it through. In addition, we intend to bring more speakers from various organizations into our meetings. These non-industry orgs have proven to be very valuable to our mission and great connections for our members and their companies.” Some associations believe that the future generation isn’t the only

way to attract more talent, and these groups would like to incorporate a little more diversity into the industry. Jody Devere, founding board member of WIA, pointed out, “Only 26% of all employees are women in the automotive industry in all roles; in 2020, we would like to hit 30% or more. Gender parity is not just the right thing to do - it is the profitable thing for our industry to do. Equality for women could lead to a massive boost to the economy. Research from McKinsey found gender equality could lead to a global economic boost of between $12 trillion and $28 trillion by 2025.” AWAF would also like “to increase the number of younger women, both within our membership and on the board. AWAF offers mentoring, coaching, professional development, and access to senior executives, which are crucial to professionals beginning their careers,” according to President Susan Rokosz. WIN Chair Cheryl Boswell added, “One of the goals for WIN in 2020 is to resource the industry with new information regarding how to attract and retain more women (and

men) in this amazing industry!” For SCRS Executive Director Aaron Schulenburg, it’s important to evaluate industry needs and make changes every day, not just for the New Year. “The cultural aspects that guide SCRS into 2020 remain unchanged. It’s doing the right things, in the right way, for the right people, for the right reasons. The work we do for our members is for the right people. These small business owners, and the people they employ, work in a very challenging environment going into 2020,” he said. “I firmly believe that the programs and resources we’ve worked to build, driven by the culture described above, will help make their businesses more successful, and the conditions less challenging going forward. It’s not a new year resolution, but an ongoing commitment by the many volunteers and staff members around our table to help make this industry better than it was when we entered it.” With these association leaders leading the charge for 2020, the collision repair industry is in for another year of improvements, progress and inspiration. Happy New Year!

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Another 1.4M Vehicles Added to Takata Airbag Recall by Staff, Auto Remarketing

A development that an expert on the topic discussed during Used Car Week 2019 arrived on Wednesday, Dec. 4, involving older models that might be in your inventory or run sheet. The National Highway Traffic Safety Administration said another 1.4 million vehicles are being added to the massive Takata airbag recall. A letter written by Joshua Neff, who is chief of the recall management division with NHTSA’s Office of Defects Investigations Enforcement indicated this batch of vehicles is from the 1995 through 2000 model years. “Tens of millions of vehicles with Takata airbags are under recall. Long-term exposure to high heat and humidity can cause these airbags to explode when deployed. Such explosions have caused injuries and deaths,” NHSTA posted on its website. “On Dec. 4, 2019, a separate group of 1.4 million vehicles was recalled because of defective Takata airbags. Unlike the airbag inflators in the larger Takata recalls, these vehicles contain Non-Azide Driver In-

flators. The defect in the NADI inflators can result in the inflator either exploding or underinflating during deployment,” the regulator continued on its website. “NHTSA urges vehicle owners to take a few simple steps to protect themselves and others from this very serious threat to safety,” NHTSA went on to say. Jerry Cox, who is chairman and chief executive officer with Potomac Strategy Associates, appeared at Used Car Week and shared insights that could help auctions and dealerships that might be handling vehicles still impacted by these Takata recalls. Cox also was a guest on the Auto Remarketing Podcast. In an email message to Auto Remarketing sent late on Wednesday, Cox elaborated on points made during his Used Car Week workshop and on the podcast. “Today’s recall is for Takata inflators that were made with a strontium nitrate oxidizer — before 2000, when they adopted the super-cheap option of ammonium nitrate as the propellant. It has taken more than 20 years, but the chemical in the affected vehicles has crumbled. This

creates more surface area for ignition, and that results in a powerful explosion that turns the inflator into a hand grenade,” Cox said. “The ammonium nitrate propellant in the more recently designed inflators will crumble even faster,” he continued. “NHTSA pretended that a desiccant called Zeolite might slow that process when they recalled the first 42 million cars. The agency invited Takata (before it went bankrupt) to show that these desiccated inflators were safe for long-term use, but NHTSA said it would force the recall of another 30 million cars if it didn’t receive such proof before Dec. 31, 2019. “To the best of my knowledge, nobody can argue with a straight face that Zeolite is a magic bullet,” Cox went on to say. “If NHTSA is doing its job, it will bring the total number of vehicles under recall up to 70 million cars early next year. That will include millions of MY 2017 & 2018 cars and make life vastly more difficult and risky for dealers.” We thank Auto Remarketing for reprint permission.

GM CCA Grows My GM Partner Perks

General Motors Customer Care and Aftersales announced milestone growth, as well as a new enhancement to my GM Partner Perks. Launched earlier this year, my GM Partner Perks provides enrolled repair facilities and collision shops with a comprehensive parts loyalty program. “my GM Partner Perks makes it easier for dealers, direct accounts and our independent aftermarket partners to conduct business with us,” said Kris Mayer, general director of retail and wholesale dealer channels, GM CCA. Starting Jan. 1, 2020, my GM Partner Perks members will be able to participate in a streamlined process for quarterly trade rebates through the my GM Partner Perks portal with just a few clicks. “GM CCA has been on a journey to strengthen our overall parts offerings and we are continuing to deliver for our business partners and customers as industry trends evolve,” said Mark Drennan, general director of ACDelco channel, GM CCA.

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Glass Installation and ADAS – The Game is Changing by Gary Ledoux

From the dawn of the automotive age up until around the early 1970s, a windshield’s job was simple - keep rain and snow away from the car’s occupants. In the mid-1970s, windshields took on a more active role adding structural integrity to the car’s body thereby increasing occupant safety. In the mid-1980s, the windshield served as an integral part of an airbag system, ensuring that the airbag was able to stay in front of the vehicle’s front-seat occupants mitigating injury. Today, the windshield not only protects occupants, but serves as a protective cover for frontfacing cameras as part of the car’s Advanced Driver Assistance Systems (ADAS). It becomes, in effect, a “second lens” that the camera must “look” through. So, it is imperative that the glass acuity be clear, precise and unobstructed – and that the camera is recalibrated upon the windshield’s replacement. “In the past,” said glass industry consultant Bob Beranek, “glass and

labor was cheap. A $300 windshield replacement was just a nuisance claim for an insurance company. Today, the replacement of a hightech windshield with recalibration can be upwards of $1,000 or more. No wonder insurance companies are taking notice.” Debra Levy, president of the Auto Glass Safety Council (AGSC) located in Stafford, VA, has a posi-

goal of defining auto glass safety. This group began the process of establishing a safety standard for the auto glass industry. By 1999, AGSC had developed the Auto Glass Replacement Safety Standard (AGRSS) in partnership with the American National Standards Institute (ANSI). Since that time, many safety-conscious auto glass retailers have voluntarily

“I cringe when someone tells me they had a windshield replaced at a non-AGSC shop, and the shop manager told the customer that recalibration is not necessary on an ADAS-equipped car.” — Debra Levy tive outlook on the fast-changing world of auto glass replacement despite challenges created by the need to recalibrate ADAS systems after a windshield is replaced. The AGSC was founded in the late 1990s when professionals from windshield manufacturers, car makers, adhesive companies, and auto glass retailers came together with the

agreed to follow the AGRSS Standard and have become AGSC members. The AGSC has provided the necessary standard for auto glass retailers to follow to make sure all precautions are taken to ensure driver and passenger safety. Unlike OE certification programs in the collision repair world, AGSC glass shops must agree to

maintain certain standards and protocols for repair and are periodically audited by a third party. And unlike I-CAR or ASE in the collision repair world, AGSC administers installer certification. In addition, AGSC provides education for the insurance industry and consumers. Levy noted, “The regular standards have been around for 20 years now. These deal with proper procedures, installation safety, and using the correct adhesive and sealant systems. We are developing and will soon launch standards and protocols for dealing with cars with ADAS systems. This will include identifying the different systems and how to properly calibrate front-facing cameras. This is a positive step for the glass repair and replacement industry and something that is sorely needed.” Of the estimated 8,000 to 12,000 auto glass installation companies operating in the U.S., about 1,000 are AGSC members and considered top performers. At present, glass installers are taking several different approaches to deal with ADAS equipped cars.

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Levy notes that AGSC members follow one of four options. Some have stepped up, purchased the necessary equipment and are recalibrating cars themselves. Some use an independent company that specializes in recalibrating ADAS cars. (A cottage industry has grown up around this operation). Some send the car to the local OE dealer. And some simply notify the customer that the car has to be recalibrated, and that they should contact their local car dealer for their make. Some uneducated glass installers may not even mention it or completely dismiss the idea of recalibration. Levy noted, “I cringe when someone tells me they had a windshield replaced at a non-AGSC shop, and the shop manager told the customer that recalibration is not necessary on an ADAS-equipped car.” At the last Auto Glass Week trade show held in September in Indianapolis, a two-hour, standingroom-only panel discussion on recalibration was held. Co-sponsored by the AGSC for the third year running, this was one of the most popular events of the show.

Installers were hungry for information. The panel fielded questions such as: • Are there any red flags that will tell me if a job will require more research before starting? • How do I know if a car will be a major hassle before I even start on it? • Some car dealers are telling us they can’t see our customer’s car (for recalibration) for a week. How do we deal with that? • The dealers are not informed (about how to work on an ADASequipped car.) They don’t read their own literature. How do we deal with that?

One of the questions that arose about recalibrating is: should a glass installer start a separate company just for doing recalibration operations? One installer gave an emphatic “yes” and said that was one of the first things he did. Levy explains, “Having a separate company more easily allows them to do work for others including glass installers, body shops, and mechanical shops. It avoids a conflict of interest and insurance companies have an easier time reimbursing for the operation if

it is sublet to a third party.” Beranek added, “They can even do calibrations for car dealers.” Recently, Safelite, famous for replacing windshields at a customer’s “home or office” launched a new television ad that shows a customer bringing her car to a Safelite shop where the windshield is replaced and front camera recalibrated, a nuanced difference to be sure which retail consumers may not notice, but is not lost on those in the industry. Levy noted, “Depending on the car, the work may need to be done in a controlled environment or it may be done on-site. Obviously, if a vehicle needs to be on a perfectly flat surface a street or parking lot may not be the best place.” Bob Beranek is the principal for Automotive Glass Consultants in Sun Prairie, WI, providing training, information and consulting services to the glass repair and replacement industry. Beranek noted, “The business model of changing a windshield at a person’s home or place of business is quickly coming to a close. Most cars can’t be effectively cali-

brated in the field after a windshield replacement.” Beranek notes that most domestic cars require a dynamic calibration, meaning the car has to be driven a certain number of miles or time under certain conditions to recalibrate the forward-facing camera. Most foreign cars can be recalibrated in static mode, meaning the car sits still during the process. Other cars, like Honda, require both. And some OE’s do not release recalibration information publicly – they make it available to only their dealers. This really limits the number of places and the conditions under which this brand of car can safely be recalibrated. Asked about the liability that a glass installer may face if they don’t properly address a car with an ADAS system after a windshield replacement Beranek said, “If the installer does not do the calibration themselves, or subcontract someone else to do it, or at least tell the customer that it has to be done and have the customer sign off on it, the installer could be liable in the case of a subsequent accident. That said, a car See The Game is Changing, Page 43

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ASA Wage & Hour Attorney Discusses Overtime Exemptions Stressing the need to be very precise about the definition of overOn Oct. 16, ASA’s Webinar Wednes- time, Farrington explained, “Overday focused on “Countering the Deal- time is often viewed as a reward for ership Overtime Exemption,” which an employee who works a long week. was presented by ASA’s Wage and Actually, it is a penalty on the emHour Attorney Brian Farrington of ployer for working an employee over Cowles & Thompson in Dallas. He 40 hours.” covered the basic elements of the “The primary purpose of overFLSA Section 7(i) overtime exemp- time is to spread employment. Overtion, which practices can lead to in- time is time and one-half of an eligibility for the exemption, and employee’s regular rate of pay for how to recognize when applicable hours worked over 40 in a workweek. state law can prevent shops from The intent is to make you go hire using the exemption. Tony Molla, more people instead of working peovice president of industry relations ple over 40 hours,” Farrington confor ASA, introduced Fartinued. “Given its actual rington, reminding associapurpose, it’s easier to undertion members that they have stand the reason for limited the ability to contact Farexemptions and why exrington for advice. emptions from overtime are Farrington began his very specific and limited webinar by explaining that only to those who clearly the Fair Labor Standards Act meet the terms of the exASA’s Wage and of 1938 (FLSA) is the basic emption.” Hour Attorney wage and hour law in the Brian Farrington of Pointing out that collision U.S. and establishes stan- Cowles & Thompson repair shops and mechanical in Dallas. Credit: dards in four areas: minishops also compete with Brian Farrington mum wage, overtime, child auto dealerships, Farrington labor, and recordkeeping. Noting noted that they start with a significant that these standards were “deter- disadvantage since overtime is not remined by legislation that’s well over quired for dealership salesmen, parts80 years old,” Farrington warned men and mechanics, according to that FLSA does not preempt state FLSA 13(b)(10)(a), with dealership laws. “The FLSA allows states to im- being defined as “an establishment pose standards which are more pro- which derives over 50% of its gross tective of employees than the federal revenue from the sales of automostandards. For instance, many states biles, trucks or farm implements.” and even cities have higher miniStill, shops have an opportunity mum wages than the federal standard to offset this disadvantage with anof $7.25.” other exemption, FLSA Section 7(i) This means that some states which exempts employees from have much stricter overtime stan- overtime if they meet three tests: 1) dards than the FLSA, compared to they work for a retail establishment other states which have no overtime (defined as a distinct physical localaw and defers to FLSA solely. Em- tion that has 75% of its income deployers in states with overtime laws rived from retail sales); 2) their must determine whether their state’s regular rate is more than 1.5 times the laws mirror the federal exemptions. federal minimum wage; and 3) they The example provided was Califor- are paid primarily by commission. nia which has a similar exemption In regards to the first test, it’s to FLSA 7(i), but it doesn’t apply to important to note that the analysis repair shop techs, so shops in Cali- must be completed separately for fornia must pay overtime to their each distinct physical location. Retechnicians. According to Farring- tail sales are “sales made to the genton, “Bottom line – employers must eral public … In a collision shop, know the state OT laws in every state this means the repair of vehicles for in which they operate, plus they must individual customers, even when an have a working familiarity with fed- insurance company pays for some or eral law, or talk to an attorney who all of the repair on behalf of the retail does.” customer,” Farrington said. by Chasidy Rae Sisk

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

Non-retail income generally falls into one of three categories in a typical shop: income from work on heavy trucks or specialized equipment, income from fleet work where work is done for a fleet customer pursuant to a contract or agreement and where the customer receives a fleet discount, or

income from sales for re-sale, such as a dealer engages a shop to refurbish a used car that the dealership sells, or a dealership farms out its body work to a collision repair shop. “In each case, the income to the shop is non-retail,” Farrington stated. “These count against your retail income and will disqualify you if it exceeds 25% of your establishment’s income. If 25% or less of your establishment’s income is from a non-income source, your facility qualifies

for the first test of the exemption from paying overtime to techs.” A couple important things that Farrington emphasized were “Transmission rebuilders are not considered retails, but manufacturers, and so cannot use 7(i). Income from private party tows, even if reimbursed by insurance, is retail. Income from police tows, such as where an employer has a contract with a city to tow cars to an impound lot, is not retail. Although there is no official position, in its enforcement, USDOL/ WH has taken the position that when a business pays a towing company to tow illegally parked cars from business parking lots, such income is not retail.” The second test requires the employee’s regular rate to be more than 1.5 times the minimum wage, which is $10.88 based on the federal wage, but in states with higher minimum wages, the employee’s regular rate must be 1.5 times the higher state minimum wage. Base rate and commissions, if applicable, are included, and the employee’s total compensa-

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tion for the workweek must be divided by the number of hours worked in order to determine if this number is met. The third test is that the employee must receive over half of total earnings in commissions, measured over a “representative period” which must be at least a month but no more than a year. “If the commission earn-

any amounts by which draws exceed commissions, and charge them against future extra commissions.” “Flat hours or book hours are interpreted as commission so this becomes entirely relevant to you,” Farrington added. “A commission is a situation where what the employee receives in earnings is a function of what the customer pays. One of the

“The FLSA allows states to impose standards which are more protective of employees than the federal standards.” — Brian Farrington ings are greater than the other income, the employee is exempt for the following representative period, when the analysis is done again, and so on,” Farrington explained. Farrington explored examples of draws against commission and explained, “The rate should always be 1.5 times the rate for the longest week they might work. Employers should ensure that their regular payments to the employees are not considered ‘salary’ payments. The best way to do this is to carry forward

most common forms of payment to mechanics is payment of ‘flat-rate hours.’ Under this system, a fixed number of hours is attributed to a particular job, regardless of how long it actually takes to do the job. The customer pays this number of hours to the shop at the shop’s labor rate, and the technician who does the job gets paid this number of hours times his/her flat rate or book rate or shop rate.” Investigators use the Field Operations Handbook (FOH) to deter-

mine how to enforce the law, and FOH 21h04(d) specifically addresses flat rate hours: “Some auto service garages and car dealers compensate mechanics and painters on the following basis: The painter or mechanic gets so much a ‘flat rate’ hour for the work he or she performs. A ‘flat rate’ hour is not an actual clock hour. The employee is given a certain proportion of that charge expressed in terms of so many dollars and cents per ‘flat rate’ hour rather than in terms of a percentage of the charge to the customer.” “The dealer does not change the employee’s share per flat rate hour if the charge to the customer is changed,” FOH 21h04(d) continues. “In such situations, Wage-Hour will not deny that such payments represent ‘commissions on goods or services’ for purposes of Sec. 7(i). Such employment will qualify for exemption under Sec. 7(i) provided all the other tests of the exemption are met.” Farrington stated, “This is critical! This interpretation by USDOL/ WH, that flat rate hours are commissions for purposes of 7(i), has been accepted by both the 11th and 7th

Circuits – see Klinedinst v. Swift Investments, Inc., 260 F.3d 1251 (11th Cir. 2001) and Yi v. Sterling Collision Centers, Inc., 480 F.3d 505 (7th Cir. 2007). If you are consulting with an attorney about possibly bringing a 7(i) case, be sure to bring these cases to the attorney’s attention.” If all three tests are passed, 7(i) can help offset the dealers’ advantage and blanket exemption, but employers should see competent legal advice before implementing a 7(i) compensation plan due to the complexity of the exemption. Farrington also reminded attendees, “Employers in states that have state overtime laws should consult local counsel to be sure that their state overtime law has an exemption analogous to 7(i).” Farrington concluded his webinar with a question-and-answer session. ASA’s next Webinar Wednesday will be held on Nov. 20 with “The New Smartphone Consumer,” presented by Jason Soto of MobileSoft Technology. To register for ASA’s webinars, visit asashop.org/webinars.

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Subaru Forester Passenger Airbag Sensor Lawsuit Filed by David A. Wood, CarComplaints.com

Subaru Forester passenger airbag sensor lawsuit alleges the occupant detection systems have errors that cause the airbags to deactivate when adults are in the passenger seats. According to the plaintiff, 2015-2018 Subaru Foresters are affected by the problems, and her 2018 Forester is a good example. The lawsuit alleges the plaintiff took the vehicle to a dealership which found problems with the detection system. Technicians allegedly didn’t make any repairs but told the plaintiff not to place electronic items in the passenger seat. The plaintiff says the airbags work part of the time and fail other times whether a passenger is in the seat or not. This is a danger that can cause an occupant their life, and Subaru allegedly knows there are problems but has failed to warn consumers. The National Highway Traffic Safety Administration (NHTSA) opened an investigation in August into passenger airbag sensor problems after receiving 51 complaints about 2016-2018 Subaru Foresters.

According to NHTSA, Subaru owners said the passenger airbag warning lights indicated the airbags were turned off when adults were in the seats. Customers reported the airbag sensors deactivated the airbags and also caused the seat belt alarms to continually give audible warnings.

Forester owners also reported paying as much as $1,000 to repair the passenger airbag systems, and many times the waits were long because replacement parts were backordered. Subaru recalled more than 366,000 model year 2015-2018 Foresters in October after finding the passenger occupant detection system sensor mat harnesses could experi-

Continued from Page 39

ence problems because of contact pressure between the terminals. According to the automaker, the passenger airbags could deactivate and then reactivate without warning because of the terminal problems. Subaru also admitted what customers were reporting, namely that the airbag warning lights indicated the airbags were off when they should have been on. In documents submitted to NHTSA, Subaru said turning off the ignition then turning it back on would reset the system and correct the faults. But the automaker also said this could be a temporary condition until the problem reoccurred while driving. When the recall was announced, Subaru also confirmed what customers had been saying about long waits for replacement parts that were on backorder. Subaru also told NHTSA that in addition to the government receiving about 50 complaints, customers had filed more than 220 passenger airbag complaints direct with the automaker. We thank CarComplaints.com for reprint permission.

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may be perfectly recalibrated. Five minutes later, the settings can be knocked off by hitting a pothole or driving through a construction site thereby mitigating the installer’s liability.” Beranek agrees with Levy’s assertion that a cottage industry continues to grow around postglass-replacement front-camera recalibration. He says, “Companies like Snap-On, Opti-Aim, Autel, and asTech and soon AirPro all have equipment that will cover 90% of the cars on the road. The equipment is expensive, but the process is not difficult. The process may require a certain amount of unobstructed flat space, where ambient light can be controlled. But if an enterprising person wants to invest in it, they have a ready-made and growing business.” OE dealers are perhaps the most qualified to do post-glass-replacement ADAS recalibrations and should have the corner on the mar-

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ket. Instead, most have shunned the work and the profit it might have generated, creating a void within the industry filled by small one and two-person operations. When asked what the future may hold, Beranek noted, “It wouldn’t be hard to make these cars self-calibrating, especially for the forward-facing camera which drives a lot of the system. This could be the case in as little as five to ten years. Today, the OE’s may be afraid that a self-calibrating system may open themselves up to lawsuits if the system doesn’t perform properly, but that is true of any system in the car.” On the question of current liability for glass installers, and since he has served as an industry expert on several glass-related lawsuits (not ADAS related because it is too soon) Beranek said, “Right now, everyone is trying to figure this out. ADAS is new to the industry. It snuck up on us and is not yet on lawyer’s radar. Eventually, a system will fail, someone will get hurt, it will go back to the glass installer, and the lawyers will be all over this.”

Chrysler Lawsuit Involving Leaky Sunroofs Seeks Settlement

The ongoing lawsuit between David Cox and Chrysler could be settled soon. According to court documents, the 2014 class-action lawsuit could reach a settlement agreement of $350,000 for attorneys’ fees and $4,000 that would be awarded to Cox, the plaintiff in this case, as an incentive award. The lawsuit against Chrysler, which was first filed in 2014 by Cox, alleged the manufacturer was negligent in disclosing to owners that regular maintenance is needed on affected vehicles’ sunroof drain tubes. The Jeep Patriot, Jeep Liberty, Jeep Compass, Jeep Commander, Jeep Cherokee, Jeep Grand Cherokee, Chrysler Town and Country and Chrysler 300, from model years 2009 to present were named in the lawsuit. “FCA [Fiat Chrysler automobiles] US does not agree with all of the characterizations of the facts set forth by plaintiff in these motions. However, it does agree that the proposed class settlement is fundamentally fair, adequate, and reasonable, and that it should be approved by the Court. Furthermore, FCA US has no

Autoliv Introduces Airbag That Prevents Passengers From Colliding Autoliv Inc., the worldwide leader in vehicle safety systems, announced the development of a new front center airbag that is designed to save lives in side-impact crash situations. The head is one of the most frequently injured body regions in any road collision potentially resulting in devastating long-term

consequences for the victim. For side collisions from the opposite side, the passenger may hit the vehicle interior or the other front seat passenger, sustaining injuries to the head and chest. To improve protection for these injuries, Euro NCAP has introduced the far-side load 44

case in the rating program from Jan. 1, 2020. The new Autoliv Front Center Airbag helps avoid driver-to-interior and driver-to-passenger impact. The inboard seat mounted airbag deploys in the space between the driver and the front-seat passenger, providing protection for them from colliding during a side impact and reduces risk of trauma to head, shoulder and chest. “Research indicates that the new Front Center Airbag can reduce injuries caused by passengers colliding with each other by up to 80%. If there is no one in the front passenger seat, the airbag will offer enhanced driver protection from a far-side collision. It is a technology innovation that underlines Autoliv’s commitment to saving lives and preventing injuries on the roads across the world,” says Scott Dershem, Autoliv vice president of development. The Autoliv Front Center Airbag will be introduced in 19 car models in 2020. Obtained via PR Newswire.

JANUARY 2020 AUTOBODY NEWS / autobodynews.com

objection to entry of an order awarding attorneys’ fees, costs, and an incentive award, provided that the amounts do not exceed the following: $350,000 for attorneys’ fees; $128,873.79 for costs; and $4,000.00 for an incentive award for plaintiff,” a portion of court documents read. In his original complaint, Cox stated he owned a 2010 Jeep Patriot for less than a year before the sunroof began leaking, which damaged the interior. “Cox brought his vehicle in to the Chrysler dealer’s service department to service the sunroof leak immediately. The Chrysler dealer replaced the radio and cleaned out the sunroof drain tubes. However, the sunroof has leaked several times since the first attempted repair, once again damaging the radio display and causing electrical malfunctions in the sunroof. Thus, on June 26, 2013, Cox brought the vehicle in to the Chrysler service department again to service the sunroof leak. However, Chrysler refused to repair the sunroof leak under the warranty stating that clogged drain tubes is a maintenance problem. As a result, Cox continues to observe water

leaking into and through the sunroof and interior dome light that has resulted in electrical problems, a noticeable musty or moldy smell and water damage to the interior of his vehicle,” a portion of the complaint reads. Throughout his complaint, Cox claims he was never told by Chrysler that the vehicle’s sunroof drain tubes would need routine maintenance. Chrysler responded to the complaint by denying most of the allegations that were made against the company. The auto manufacturer also stood by its warranty in its response. “FCA US admits that it provides a written limited warranty for the vehicles it sells which covers the cost of repairs for certain items for three years or 36,000 miles from the date the vehicle is first put into service, whichever occurs first. Further FCA US states that the warranty document speaks for itself,” a portion of Chrysler’s response reads. Currently, both Cox and Chrysler are waiting for the judge’s response to the settlement motion. We thank www.glassBYTEs.com for reprint permission.

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Three Weeks After GM Strike, Dealers Await 2020 Models, Cut Back Hours by Kalea Hall, The Detroit News

General Motors Co. (GM) dealers are still dealing with the aftereffects of a six-week strike by the United Auto Workers. Three weeks after the walkout ended, dealers have begun getting some of the parts needed for service departments and body shops. And though the inventory of new cars and trucks remained fairly robust during the shutdown, some dealers are concerned about a lag in new deliveries as production gets back up to speed and car-haulers make their way to showrooms. The UAW’s national strike against GM shut down 55 facilities across the U.S., stopping production of parts and an estimated 300,000 new vehicles, costing GM nearly $3 billion. GM dealers say they took hits to their bottom lines on both the sales and service sides. At Motor City Buick GMC in Bakersfield, CA, new-vehicle sales were down 8% in October and are expected to be off 8% this month. “We are hopeful we can make up some of that due to pent-up demand in December, but December is

always a big month, so it’s kind of hard to set a new benchmark on top of an old benchmark,” said John Pitre, chief operating officer at the dealership. But three weeks after the strike ended, Motor City Buick GMC is feeling the pinch even more than it did during much of the walkout. “We didn’t feel it for the first three weeks of the strike because our pipeline is about two to three weeks long,” Pitre said. “We are feeling it much more now than we did in October.” At Matthew-Hargreaves Chevrolet in Royal Oak, MI, general manager Walt Tutak expects to see the sales side of the business feel a delayed strike impact as they await new models that normally would already be on the lot. Ideally, Tutak likes to have 500 vehicles — a two-month supply — on the ground, with another 250 coming in for delivery during the month to make up for the 250 that will be sold. When this process gets interrupted, he said, “You’re going to have a shortage.” GM still had an ample 81-day supply of cars, trucks and SUVs two

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weeks into the strike, above the industry’s average of 66 days, according to. That cushioned the impact. “GM loaded up their dealers with inventory prior to the strike and so they had surplus inventory,” said Brad Korner, general manager of Cox Automotive Rates and Incentives. “They didn’t take their foot off the gas at all.” But analysts do think the inventory is under pressure somewhat now. Tutak hasn’t had a shortage of vehicles yet, but if he does, he predicts it will be Chevrolet Silverados, even though he tries to keep a four-month supply of the pickup on the Royal Oak lot. “We may have fewer sales in the Silverados, but we will make it up in the other areas where we have other inventory,” he said. “So, what we will do is push what we have.” The dealership’s sales did not suffer during the actual strike, which surprised Tutak because MatthewHargreaves Chevrolet is in a GM town, and out-of-work strikers weren’t expected to buy new vehicles. The work stoppage still hurt profitability at the Royal Oak dealership because of the hit to body

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and service shops. Business in those departments is off roughly 25%, Tutak said. “It affects the bottom line because we are used to having customers come in and we repair their vehicles and they pay for them,” he said. “Now these vehicles are just sitting.” The parts most needed are engines, transmissions, fenders and bumpers. When the UAW ratified a new contract with GM on Oct. 25 and ended the strike, GM sent a note to dealers stating that a top priority was to restore the parts distribution network. GM spokesman Jim Cain said of the parts distribution: “We are still working to recover and make progress every day.” Pitre said he was still waiting on about $250,000 worth of parts for about 80 vehicles waiting to be repaired. There have been a lot of rentals for customers waiting for repairs, he said. “I’ve seen more $1,000 rental car bills in the last six weeks than I have probably seen in the last five years.” We thank The Detroit News for reprint permission.

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Subaru Concord Concord (888) 387-1377

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Chattanooga (423) 490-0181 (423) 385-7269 Fax Mon.-Fri. 7:30-5:30; Sat. 8-2 parts@kellycars.com www.kellycars.com

autobodynews.com / JANUARY 2020 AUTOBODY NEWS

JANUARY 2020 AUTOBODY NEWS / autobodynews.com