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CCC Names Top 3 Auto Industry Trends of 2023 2023 saw a continuation of the multiyear state of industry challenges and changes for the collision repair and insurance markets—one that requires both shops and carriers to explore new ways of operating and delivering on customer expectations. In its year-end report, CCC took a broader look at three key trends that defined the industry in 2023, from the alarming rise in vehicle thefts and vandalism to the intricate impact of labor strikes and the changing dynamics of total cost of repairs.

Crime Bureau (NICB), vehicle thefts remained on the rise in the first half of 2023—up 2% as compared to the first half of 2022. The U.S. saw more than 1 million vehicles stolen in 2022—the most since 2008—and a year over year increase of 7%. Of those vehicles stolen, more than 85% were recovered, including 34% on the same day of the theft. According to CCC data, total losses as a result of theft have exceeded 3% of all total losses since the fourth quarter of 2021, peaking at more than 4% in

41 YEARS

Vol. 14 / Issue 11 / January 2024 REGIONAL NEWS

Rivian Can Begin Construction on $5B Manufacturing Plant in Georgia By Zachary Visconti Teslarati

EV maker Rivian gained approval to start construction on a new manufacturing plant outside of

Atlanta, GA, state officials announced. Rivian was granted final approval for the project by the Georgia Department of Economic Development (GDECD) and the Joint Development Authority (JDA) of

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REGIONAL NEWS

As CCC continues to monitor this data, it’s clear the auto repair and insurance sectors are navigating a complex terrain marked by significant shifts in consumer behavior, supply chain resilience, and market demands. 1. The Rise in Theft One concerning trend CCC observed this year is the escalating U.S. vehicle theft rates. Despite a high recovery rate, the sheer volume of stolen vehicles poses a challenge for the insurance industry, with domestic pickups being particularly vulnerable. According to the National Insurance

Q4 2022. While many media outlets have focused on thefts associated with Hyundai and Kia, which have contributed to the rise, the data says theft has been widespread regardless of vehicle type and origin. Based on CCC data through Q3 2023, domestic pickups have the highest rates of total loss due to theft—over 6% for each of the past eight quarters. Similarly, NICB reported full-size pickups represented 25% of the over one million vehicles stolen in 2022 (down from 33% in 2021). Despite the high recovery rates for stolen vehicles, claims resulting from

Staged Vehicle Accidents Top Fraud Trend in South Carolina A new report on South Carolina fraud trends shows staged vehicle accidents as the top fraud issue in the state. The analysis, released by the National Insurance Crime Bureau

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(NICB), ranks South Carolina 13th in the nation in terms of questionable vehicle-related insurance claims— significantly higher than states with similar populations, such as Alabama, Kentucky and Louisiana. “Staged vehicle accidents are one of the most significant fraud issues facing South Carolina,” said Eric De Campos, director of strategy, policy and government affairs for the NIBC. “The impact on residents includes both a financial cost and a safety l CONTINUED ON PAGE 23

INSIDE THIS ISSUE 10

Columnist Mike Anderson: Adding for the Necessary Repair of

Adjacent Panels

Columnist Abby Andrews: How Collision Repairers Can Help Ensure We Have Technicians in 5 Years

Columnist Stacey Phillips: SUN Collision Introduces New Repair Package Designed to Simplify Blueprinting Process

Columnist John Yoswick: What You Need to Consider Before Selling Your Collision Repair Business

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Survey Examines How Frequently Auto Body Shops Bill, Get Paid For Procedures, Expenses By John Yoswick Autobody News

With used car values falling much of the past year, the percentage of collision-damaged vehicles being declared total losses is on the rise— and so too is the percentage of shops being reimbursed for the steps involved in processing total losses. That’s among the findings of a “Who Pays for What?” survey over the summer. “Because the process has continued to become more complex and time-consuming, shops are increasingly billing for the time they spend processing total losses, and rightly so,” said shop consultant Mike Anderson of Collision Advice, who

are seeing shops itemizing the steps involved, such as a repair plan fee, disassembly fee or OEM research time,” Anderson said. “With 93% of shops regularly billing for this added work, it will be interesting to watch how AI impacts total loss processing, identifying total loss vehicles earlier in the process, possibly avoiding many of these fees at the shop, as well as storage charges.”

Removing Coatings from Pinch Welds

State Farm direct repair shops say they are regularly paid for this operation, for example. That compares to just 61% of Progressive DRP shops that say that. Less than 2% of State Farm DRPs say the insurer “never” pays for this procedure, but more than 12% of Progressive DRP shops say Progressive “never” pays for it.

set diagnostic trouble codes (DTCs) that you can’t check for without doing a post-repair scan in conjunction with reconnecting the battery.” On the reimbursement side of the equation, more than half of shops (57%) that bill for the battery reconnect procedures say they are regularly paid to perform them— even while about 1 in 4 shops have never sought to be paid for these OEMspecified procedures.

Just under 61% of shops taking the More on OEM Procedure Research “Who Pays” survey this past summer said they are paid “always” or “most of In terms of OEM procedure the time” for removing coatings from research more generally, More than half (56%) of shops say they research the pinch welds prior to mounting the three out of five shops OEM procedures involved in reconnecting a battery vehicle on a frame machine—virtually now say they research the all or most of the time, according to a “Who Pays for the same percentage that procedures “always” or What?” survey have said that was the case “most of the time” when for the past eight years. they write an estimate or “We have seen a lot of Anderson said he is concerned repair plan, according to the survey positive change over the about the number of photos he sees findings. That percentage has inched years in many of the noton shops’ social media showing up slowly year after year since 2017, included labor procedures vehicles being anchored in ways when 53% said they were conducting asked about in the ‘Who not approved by the vehicle’s such research regularly. Pays’ surveys, so results manufacturer. About half the shops said an like this one baffle me,” “I have not found any vehicle estimator or repair planner was Anderson said. “I would manufacturer or any frame primarily responsible for conducting encourage anyone who equipment company that says it’s that research, while about 1 in 3 is not being paid for this OK to secure a fixture clamp to shops (34%) said the work was More shops are getting reimbursed for the steps taken to research it through the pinch welds without first removing done jointly by technicians and to process total losses. Credit: Shutterstock OEMs, I-CAR or any frame all undercoating and seam sealer,” estimators. equipment companies. Ask he said. “But also keep in mind, not The survey asked whether shops conducts the quarterly “Who Pays” if it is okay to mount a fixture clamp all vehicles may be anchored on the include a separate line item charge surveys. “Of course, some insurers over a pinch weld covered with pinch welds. It is critical that shops do for the subscription fees associated are pushing back. In some cases, undercoating or seam sealer. You will the research to determine what is and with accessing OEM repair insurers have turned to using bill find that the answer is a clear: No, it is not permitted by the OEM for a safe procedures. (Administrative fees are collection agencies in an attempt to isn’t.” and proper repair on each vehicle.” prohibited under California Bureau go after shops after the fact to recoup Failure to remove the coatings of Automotive Repair regulations.) Added Steps When Reconnecting amounts paid. While the industry increases the likelihood the vehicle About 3 in 10 shops (29%) nationally Battery continues to discuss the best way to can slip when the technician is say they always or almost always Unlike the pinch weld procedure, bill for this, from a legal perspective pulling it, Anderson said, and that can include such a fee. About one-third other items asked about in the shops should have an attorney review cause further damage or adversely charge a fee when needing to access surveys have seen big changes in just their authorization forms to ensure impacting the accuracy of the an information source for which a year or two. When asked how often they are protected.” measurements. the shop doesn’t have an annual repairers are researching The survey, completed by more subscription. the OEM procedures than 500 shops around the country, More than 1 in 3 shops (37%) say required after reconnecting found only 7% of shops said they they never pass along a charge for a battery in 2023, 34% said never seek to be paid for total loss repair information subscription fees, they do it “all the time”—up processing. That’s down from 14% in but that’s down significantly from from just 20% in 2022—and the same survey a year earlier, and far 42% in 2021 and 57% back in 2019. another 22% said they do it below the 30% of shops that never Anderson said he will resume most of the time. billed total loss processing fees in hosting webinars in 2024 that show These procedures, 2015. how to navigate the automakers’ depending on the The “Who Pays” surveys ask shops repair information websites, but automaker, can include how regularly they are paid by the several such webinars, related initializing sensors or eight largest national insurers for to the VW, Nissan and Subaru clearing trouble codes. various procedures they perform. information portals, are available on A growing percentage of shops say they are paid regularly by the eight largest national insurers when “I was analyzing the The percentage regularly being paid the Collision Advice YouTube channel billing for processing total loss vehicles procedures called for by for total loss processing has been at www.youtube.com/channel/ one Asian OEM recently increasing. Eight years ago, just 46% UC1021mCCCR_qxOJoVtjNEbg. and found 11 procedures required of shops said they were paid “always” “Shops need to understand that Shops can visit www.crashnetwork. after reconnecting the battery,” or “most of the time” when billing for their technicians must be doing this,” com/whopays to take the January Anderson said. “Researching total losses, but today 75% of shops he said. “Who Pays” survey, which focuses procedures needs to happen every say they are. Segmenting the data by insurance on not-included refinish labor single time on every single vehicle. “Rather than simply billing an company does show some striking procedures, or to download results of Disconnecting the battery often will ‘administrative fee’ for this work, we differences, however. Nearly 91% of prior surveys. 2 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

Contents

COLUMNISTS Mike Anderson Adding for the Necessary Repair of Adjacent Panels �� 10

REGIONAL NEWS 6K Energy Gets $50M Federal Grant to Build EV Battery Material Factory in Tennessee �� 32 Carvana Launches Same-Day Delivery in Central Florida �� 28

North Carolina Dealership Licensed to Sell Mullen EVs �� 31 Rivian Can Begin Construction on $5B Manufacturing Plant in Georgia �� 1

Abby Andrews How Collision Repairers Can Help Ensure We Have Technicians in 5 Years �� 12 Stacey Phillips KECO Body Repair Products Introduces New Glue Pull Repair (GPR) Tools and Systems �� 16

Repair Package Designed to Simplify Blueprinting Process ��8 John Yoswick A Look Inside the Collision Repair Industry in the UK ��6 Survey Examines How Frequently Auto Body Shops Bill, Get Paid for Procedures, Expenses ��2

Classic Collision Adds New Location in Orlando �� 24

Staged Vehicle Accidents Top Fraud Trend in South Carolina �� 1

FL Judge Finds Reasonable Evidence Tesla Knew Autopilot Defective �� 11

Tampa Area Veteran Receives NABC Recycled Ride �� 25

Ft. Lauderdale Woman Receives NABC Recycled Ride at Boyd Collision Group Leadership Conference �� 22

VW Chattanooga Plant Workers Push for Unionization Amid Surging Vehicle Prices �� 27

Mercedes-Benz Launches EV Charging Network Across North America �� 17

Wounded Warrior Receives Vehicle to Fuel His Selfless Service �� 15

ACT Auto Staffing �� 6

Honda-Acura Parts Dealers �� 19,20,21

Miami Area Veteran Receives NABC Recycled Ride �� 30

WV Woman Sues Collision Center, Driver for Devaluation of Vehicle �� 29

Audi Gwinnett �� 26

Hyundai Wholesale Parts Dealers �� 37

Audi North Miami �� 16

Kia Motors Wholesale Parts Dealers �� 29

Audi Wholesale Parts Dealers �� 31

Mercedes-Benz Wholesale Parts Dealers ��36

AutoNation Ford �� 11

Miami Lakes Automall �� 8

AutoNation Ford-Memphis �� 23

MINI of Charleston �� 24

Certified Automotive Parts Association �� 12

MOPAR Wholesale Parts Dealers �� 17

Insurers’ Efforts to Improve Profitability Drive Auto Policy Shopping �� 30

Classifieds �� 38

Nissan/Infiniti Wholesale Parts Dealers �� 37

NABC Announces New Foundation � 36

Dale Earnhardt Jr. Chevrolet �� 16

NorthAmerican Bancard �� 9

CIECA Announces New Member 1Source ADAS �� 17

Northwood University Announces Master’s Degree �� 27

Empire Auto Parts �� 4

Parks Chevrolet �� 27

CIF to Host Annual Charity Gala for Crisis Relief �� 38

Odometer Fraud Surges 14% Nationally �� 28

Ford Wholesale Parts Dealers �� 35

Reeder Chevrolet �� 22

Crash Champions Donates $70K to Susan G. Komen �� 35

Repairify Now ASE Accredited for Training �� 25

GM Wholesale Parts Dealers �� 33

Reed Nissan �� 23

Dealerships Losing Ground to Independent Auto Repair Shops, Study Finds �� 37

Road Risk Alert: It’s the Most Distracted Time of the Year �� 26

Grieco Ford of Fort Lauderdale �� 10

Rick Hendrick Chevrolet Naples �� 25

Gus Machado Ford �� 5

Serra Kia �� 18

NATIONAL NEWS 2023 SEMA Show Exceeds Attendees’ Expectations �� 32

Ford Cuts Dealer EV Requirements Again �� 24

2024 WIN Conference Registration Open ��9

FTC Implements CARS Rule to Combat Auto Sale Scams �� 35

AirPro Approved for Ford Programs 11

Honda, Hyundai, VW Workers File Unfair Labor Practice Charges �� 36

Biden Administration Mulls Over EV Tax Credit Reprieve for Automakers 29 Bosch Joins CAPA’s Verification Program �� 15 CCC Names Top 3 Auto Industry Trends of 2023 ��1

Hunter Engineering Announces Integration �� 39

SUN Collision Introduces New

What You Need to Consider Before Selling Your Collision Repair Business ��4

Index of Advertisers

Driven Brands Launches B2B Digital Marketplace �� 37

Snap-on Showcases John Bean Tru-Point, More Award-Winning TSS Products at SEMA �� 14

Dynabrade Names Global MangerAutomotive Refinish �� 39

State Farm Leads in Auto Insurance Affordability Across 29 States �� 23

Harper Volkswagen �� 14

Sport Durst Chrysler-Dodge-Jeep-Ram �� 24

Employers Benefit from ASE EntryLevel Certification �� 31

Toyota Motor Credit Fined $60M for Illegal Lending, Credit Reporting Misconduct �� 34

Hendrick Automotive Group �� 13

Stivers Decatur Subaru �� 27

U.S. House of Representatives Passes Bill to Stop EPA Emissions Mandate 39

Hendrick Honda Pompano Beach �� 22

Subaru Wholesale Parts Dealers �� 28

Hendrick Kia Cary �� 15

Toyota-Mazda of North Miami �� 25

Hendrick Kia Concord �� 15

Toyota Wholesale Parts Dealers �� 36

Hendrick Volvo Cars of Charleston �� 24

Volkswagen Wholesale Parts Dealers �� 30

Ex-GM Manager Convicted in $5M Bribery Scheme �� 39 Fixing ADAS Systems Makes Up Over a Third of Collision Repair Costs �� 33

Wieländer+Schill Joins SCRS �� 22

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What You Need To Consider Before Selling Your Collision Repair Business By John Yoswick Autobody News

said Laura Gay of Consolidation Coach. “They can get a box anywhere. They can’t get the people.” Cole Strandberg of Focus Investment Banking agreed. “They care about where the business is today, certainly, but they care even more about where the business can go, and that

said almost without exception, sellers want to do what’s best for their employers. “But just be careful what you’re promising people, because you can’t guarantee your employees what’s going to happen afterwards,” he said. “There’s some things you can’t control. But what you can do is incent

John Walcher of Veritas Advisors has a question he usually asks first when a collision repair business owner approaches him about helping them sell their business: “Can you take a vacation?” “Not just a weekend or a long weekend, not even one week,” Walcher said. “Can you take two or three weeks? You’ve got to be able to go at least a full payroll cycle, hopefully two, separated from your business. If you can, you might be ready to sell.” Walcher was one of a panel of consultants involved in mergers and acquisitions within the industry A panel of merger and acquisition consultants talked about industry consolidation during the most recent Collision Industry Conference. discussing consolidation during the Collision Industry Conference (CIC) in Las Vegas during SEMA week. management team is the engine that’s your employees to give it a shot. You Walcher said the shop’s corporate going to get them there,” he said. “A can have retention bonuses. You structure is another thing owners big part of selling your business is the can say, look, I know this may not need to consider well ahead of a sale. story, and the management team is be what you want, but there will be “Some people have C corps, and the focal point of that story.” more opportunities within a larger with C corps, if you sell, there’s going Panel moderator Frank Terlep entity that owns [the company]. So to be double taxation,” asked if there was any truth whether 50% leave or whether a very Walcher said. “So you might to what he sometimes hears small percentage leave, a lot of it is want to convert to an S corp, in the industry: that within individual decisions. But if you’re a but if you do, it’s got to bake months of a collision repair seller, you can actually influence that for 10 years to get the full tax business being sold, as before you do a transaction.” benefit. So one of the key much as 50% of the staff It Can Be Emotional messages that I’m sure we have left the company. all have to our clients is: plan “It really depends on the ahead. It’s not something buyer,” Gay said, saying that you want to find out 50% of her staff were gone John Walcher said if about just months before a shop owner can’t within four months after you want to close a deal. get away from the she sold her shops in 2015. Sometimes it takes years business for several “The harsh truth is that it before you’re really ready to weeks at a time, it does happen. But there are may be an indication hit the market.” also some consolidators the business isn’t Walcher said while out there that really are ready to be sold. purchase prices are very much focused on sometimes referenced retention. They’re using in terms of multiples of retention bonuses and EBITDA (earnings before other strategies to try to interest, taxes, depreciation keep the staff, because they and amortization), looking at realize how important it is. If multiples of annual revenues they don’t have the people, Your preferred source offers “a little better applesthey can’t turn the revenue.” for quality aftermarket, to-apples type comparison.” Walcher of Veritas automotive replacement “So watch out when Advisors said he, too, has those multiples of EBITDA seen large turnover of staff parts backed by a Cole Strandberg said conversations come up,” there’s an emotional after a company is sold. customer support team Walcher said. “They’re aspect of selling “Sometimes it’s because negotiating tools, but I your business that the buyer is overwhelmed,” you can depend on. assure you nobody who shop owners should he said. “They’ve got too values and does a lot of deals expect. many deals going, and on the buy side is buying integration doesn’t go as based on multiples of EBITDA.” smoothly as it could. Sometimes it’s a cultural shift. If you are a fiercely Retaining Your Team independent shop…and now you sell Several panelists spoke of the to a company that’s DRP focused, importance of building and retaining there’s going to be a cultural change not just a good management team in that shop. It’s going to affect your but the production team as well. valuation, and it’s going to affect how “The consolidators, or the private many people stick around.” equity firm, are buying the people,” David Roberts of Focus Advisors

Strandberg pointed to another aspect of the process. “Selling your business is emotional too,” Strandberg said. “Going through that process is very much like dating. If you have a team that has a strong culture, you care about their future, and you’re going to want to make sure your values are shared with your next partner or buyer. I think that’s something to keep in mind. The numbers are very, very important, but so is that aspect.” Terlep, who said he has sold multiple businesses through his career, agreed. “It’s your baby, right,” Terlep said. “But at the same time, you go into business, in my opinion, to sell a business over time. Hopefully you don’t plan on dying in your business.” “And that’s a very logical way of looking at it,” Strandberg responded. “But the truth is, especially in industries like collision repair, many owners started without an end in mind. In my instance, my family sold their business. I grew up around the business, viewed it as my big brother. So when you talk about it in those terms, you realize the level of emotion that goes into that.”

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A Look Inside the Collision Repair Industry in the UK By John Yoswick Autobody News

The challenges faced by shop owner Martin Shiels of ECS Accident Repair in Edinburgh, Scotland, will sound familiar to U.S. shops. A body technician— one of two employed at the shop for more than 14 years—recently left, and Shiels was struggling to replace him while also getting an apprentice from the local college started within the shop. He is still working to get set up to repair electric vehicles, and still must sublet most ADAS work. Prior to Brexit, Shiels said, he could receive Volkswagen parts, for example, from Germany overnight; post-Brexit, truck drivers might sit for days to get through customs, or shippers wait until they had a full container, so parts delays have become common.

“It’s how we deal with people—staff and customers—that’s very important, to have an ethical standard,” Shiels said. Not far from Shiels’ shop is QA Vehicle Solutions, where between the shop and massive back lot, nearly 700 vehicles are in some stage of the collision repair process. It’s a big change from the early days of the pandemic, when the shop was completely shut down, with all of its 54 employees sent home for two months.

QA Vehicle Solutions employs 54 people. About 60% of its business is fleet work.

Shop owner Martin Shiels said the ethical standard guiding his business applies to his employees and his customers.

The shop handles insurance claims on a “non-approved basis,” which means Shiels can charge higher labor rates, about $67 (USD) per hour compared to about $48 paid to insurer-approved shop. “We can demand that because of our [customer] reviews and so forth, people want to come to us, but the insurers will try to steer them, as they will do in the States as well,” Shiels said. He’s baffled by other shops’ willingness to offer the steep parts, labor and materials discounts required for insurance approval or to join one of the collision repair franchise operations. But there also are some key differences from the U.S. in day-to-day operations at ECS. Paying for Audatex estimating—which dominates the market there—and access to “the pipe” to communicate with insurers “isn’t viable for us,” Shiels said. “So what we do is we hire a contractor. When we have a damaged car, we’ll strip it, we’ll image it all up, and we’ll send that on through an app. They will compile the Audatex estimate and send it down the pipe to the insurer. And they’re given parameters to do the negotiations for us.” But differences aside, like most small business owners, Shiels said what’s most important to him is something listed prominently on a sign in the shop’s office: “Honesty, integrity and fairness.”

The company is the largest singlesite repairer for Enterprise Rent-A-Car in all of Europe—fleet work accounts for about 60% of the shop’s business— and that type of work “went right off the edge of a cliff” at the start of the pandemic, shop owner Alan Arthur said. It was an abrupt shut down for a business in just its third year at that time. But the shop eventually brought all of its employees back. Today, tourism in Scotland is beyond pre-pandemic levels, and Arthur’s shop’s car count is as well. “It’s a market we prefer compared with insurance,” he said of fleet work. “We don’t have to get involved in courtesy cars”—the replacement vehicles UK shops doing insurance work must provide for customers, often without compensation from the insurer—“and we don’t have individual clients with individual needs on individual vehicles. We deal with one fleet company.” Cash flow is more challenging on insurance work as well, Arthur said, because invoices go through accident management companies that assign the work and process payments on behalf of the insurance companies. Another key difference in the industry in Scotland compared to the U.S. is calculations for paint materials are most often determined through an Audatex system based on the size of the panels. Aside from such differences, Arthur and his wife Elaine, who founded the company together in 2017, say the biggest challenge they have is the one most often cited by U.S. shop owners as well: staffing. Elaine Arthur said Thatcham, an insurer-funded vehicle research organization in the UK, has an academy the shop uses to help locate and train apprentices. “They’re looking at how they can improve that apprenticeship program,

6 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

to make it quicker to actually get kids through,” she said. “In this country, it’s a four-year apprenticeship. Whether you want to be a painter or a panel beater, the first two years you have to do both disciplines. Now if you’ve got a painter who’s really not interested in being a panel beater, you’re lucky to keep them two years.” She said the academy may put an assessment in place to allow students, once they get that certificate after 12 months, to specialize in either paint or body work.

Alan and Elaine Arthur operate QA Vehicle Solutions, the largest single-site repairer for Enterprise Rent-A-Car in all of Europe.

Steven Frampton’s experience as an autobody instructor at Edinburgh College in Scotland also sounds quite similar to the challenges his counterparts in the U.S. face. The program has about 28 students enrolled, ages 16 to 31, as well as some apprentices sent into the

program by shops that employ them. But the school, like many in the U.S., struggles to get qualified students into the program, those who understand that body and paint work differs from mechanical, and aren’t just signing up

Steven Frampton, an auto body instructor at Edinburgh College in Scotland, said he’s surprised there are not more students interested in the program.

because there aren’t other courses available or because they’ve been sent over by parents or career or social care workers who don’t understand the basic aptitudes needed. Framptom said he can’t understand why the pool of students coming into the program is so small. “It is bizarre, because it’s probably the highest paid and most in-demand job [among the trades],” he said. “Still, the biggest drive for me is taking one of these kids from an entry-level course, getting them into the full program and then getting him into [a shop],” Frampton said.

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SUN Collision Introduces New Repair Package Designed To Simplify Blueprinting Process By Stacey Phillips Autobody News

To help collision repair facilities streamline the blueprinting process and prepare fast and accurate estimates, SUN Collison has introduced a new software feature, Repair Package. The company, a brand of Snap-on, launched the new feature during the 2023 SEMA Show in November in Las Vegas, NV. Chris Bonneau, SUN Collision’s business manager, said the Repair Package provides comprehensive documentation to support estimates and insurance claims. “It is a huge time-saver for service writers/estimators, allowing them to produce a foolproof repair plan in seconds, and eliminates the need for manual data entry,” explained Bonneau. “It’s the first comprehensive solution of its kind.” SUN Collision software, introduced to the collision industry in 2019, provides complete and current OEM repair information and procedures for body and frame, paint and finish, and materials for all vehicle makes and models. With the new feature, users can create a comprehensive repair package that incorporates all OEM

procedures, illustrations, interactive wiring diagrams and required OEM parts and part numbers. It integrates with shops’ estimating systems, centralizing repair information and estimating data. Bonneau said the product was designed to be user-friendly and create more efficiencies for body shops.

displayed. Bonneau said the result is a complete work package, including 100 to 1,000 pages available in printed and PDF formats. “Everyone is spending time looking for the OEM procedures and SUN Collision’s Repair Package makes it so much easier,” he said. Time-saving tools include a hyperlinked table of contents to find information quickly, and the 1Search Plus search engine, which simplifies search-and-navigation for a specific vehicle and presents the relevant information in a card-based graphical layout. Bonneau said the Repair Package also consolidates Advanced Driver-Assistance Systems (ADAS) information in a single location, making it easier for shops to diagnose, Chris Bonneau, left, SUN Collision’s business manager, calibrate and repair vehicles and Ross Whiteley, right, product manager, at the company’s booth during the 2023 SEMA Show. equipped with ADAS. The Repair Package “Everybody wants to do more leverages industry standards business and get more cars out faster,” established by the Collision Industry said Bonneau. “When shops can find Electronic Commerce Association the information they need, they can (CIECA). Bonneau said these standards repair vehicles quicker.” provide a common language and When users click on an estimate framework that facilitate the exchange line item, the information for known of data between collision estimating part numbers and other details are systems, insurance companies and

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other stakeholders involved in the repair process. Prior to being launched, the Repair Package was beta-tested with body shops. Bonneau said they received valuable feedback that was incorporated into the product to ensure it was user-friendly and met their requirements. The software’s database is kept current throughout the year with ongoing updates and repair information. SEMA Show attendees had the opportunity to take part in a Repair Package product demo during the event. Show attendees who participated in the demo were entered into a raffle. Andrea Berczel of Heritage Collision in Ann Harbor, MI, won a Samsung Galaxy Tablet S9 with a military-grade cover. Overall, Bonneau said the response was very positive to the new software package. “It’s really going to reduce stress by helping technicians find what they need quickly,” said Bonneau. “A detailed repair plan and documentation leads to less supplements, helps shops get paid for the work being done and reduces liability.” For more information, call 877-8401973 or visit suncollision.com.

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2024 WIN Conference Registration Open The Women’s Industry Network (WIN) announced registration is now open for one of the collision repair industry’s most anticipated leadership and management forums: the 2024 WIN Conference. Next year’s conference, featuring the theme of “Dream Out Loud,” will be May 6-8, 2024, at the Hyatt Regency Newport Beach, CA. WIN members registering by the March 1 early bird deadline will receive a discounted rate of $575; after that, the member cost increases to $680. The ticket rate for non-members is $725. Registration for inperson attendees closes April 24. Anyone preferring to join virtually may do so for $250. Interested attendees can join WIN as a professional member any time for just $95, and then take advantage of the discounted attendance if they join before March 1. For more information, visit thewomensindustrynetwork. site-ym.com/page/ Conference.

year; the new approval allows the automaker to officially begin construction. Shortly after Rivian’s initial commitment from Georgia for the Stanton Springs North site in 2021, the state also approved a $43 million EV battery recycling plant nearby. According to the state’s initial announcement, the Rivian location includes “just under 2,000 acres” at a site previously called the East Atlanta Megasite. The facility is expected to bring as many as 7,500 jobs to the area, and Rivian will invest $5 billion into building the facility. Rivian is targeting 2026 for initial production, and the company eventually expects to reach an annual volume production of around 400,000 vehicles. In addition to building the manufacturing facility, Rivian is expected to accelerate charging station deployment in the area in nearby shopping centers, state parks and near its Ponce City Market showroom. The company’s production facility has also forced Georgia lawmakers to mull over direct sales laws in the state, which currently ban the sales of automobiles that aren’t done through a dealership. Tesla is exempt, though it’s limited to five

l CONTINUED FROM COVER

$5B Manufacturing Plant Jasper, Morgan, Newton and Walton counties, the agencies announced Nov. 9 via WSB-TV. The approval gives Rivian long-term rights to construct an automotive plant in the Stanton Springs industrial area east of Atlanta, after the plans were first set in motion in 2021. “It’s a great day in Georgia as we close and issue the bonds for the Rivian project,” the JDA and GDECD said in the announcement. “Renting the site to Rivian is the next step in delivering this generational opportunity, and Georgians in Jasper, Morgan, Newton and Walton counties.” The factory is also expected to manufacture Rivian’s R2 nextgeneration platform for future vehicles. The site is located near the I-20 corridor to Atlanta’s east, near the historic Walton County community Social Circle and touching on Morgan County. It will also be Rivian’s second manufacturing plant, joining its first factory in Normal, IL, which produces the R1T pickup and the R1S SUV. Rivian gained approval for its Economic Development Agreement (EDA) on the factory earlier this

statewide sales sites, as of last year. Rivian is also introducing an apprenticeship program in which the company will select local students for a 24-month training, which the company will use to support the Stanton Springs North facility. The Georgia HOPE Grants will provide tuition for the program and Rivian plans to fund additional expenses for the apprenticeship, including textbooks and other learning materials.

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autobodynews.com / AUTOBODY NEWS JANUARY 2024 9

Mike Anderson — From the Desk of Mike Anderson

Adding for the Necessary Repair of Adjacent Panels An often overlooked estimating item is the repair of adjacent, or “mating,” panels after the removal of a damaged panel. For example, once a rear body panel is removed, the trunk floor will have to be repaired in order to fit the new panel. It’s also not uncommon for taillight pockets, rain gutters, troughs and sometimes even the frame rails to require some repair. Yet our “Who Pays for What?” survey earlier this year found more than 1 in 10 shops acknowledge never having sought to be paid for this work—despite the fact about twothirds of shops report being paid for this “always” or “most of the time” by the eight largest national insurers when it is necessary and performed. I always suggest a four-question process when negotiating for this or any non-included operation. 1. Is it required to fully and properly repair the vehicle? It’s obvious when looking at the condition of these adjacent panels

that it is. It’s virtually impossible to remove a welded panel without causing damage to the adjacent panels or attaching components. 2. Is adjacent panel damage included in any other labor operation? All three of the major estimating system providers agree that it is not. The “labor exclusions” portion of the Audatex/Solera Database Reference Manual, for example, clearly states “repair labor does not include additional labor to repair the replaced panel and/or adjacent panels which may become distorted, burned or damaged by welding, drilling, grinding and straightening.” Similarly, the Motor Information Systems’ Guide to Estimating—the basis for the CCC Intelligent Solutions estimating system—includes a special notation about welding zones and adjacent panels. It says labor operation times do not include time for repair of adjacent panels resulting from normal cutting, welding and

grinding procedures. And Mitchell International’s Procedure Pages lists under “additions to labor times” the repair of “parts adjacent to parts being replaced.” If you don’t have copies of any of these documents from the Big Three estimating systems, you can download them at no charge from the “Estimator’s Toolbox” section of the Database Enhancement Gateway (DEG) website, www.DEGweb.org. 3. Do the estimating system providers provide a pre-determined time or calculation method for this procedure? Again, the answer is no. “The amount of damage can vary considerably depending upon process and technique used by the servicing technician,” the note in the Motor Guide to Estimating states, for example. “Motor recommends these factors be considered before finalizing any repair cost estimates.”

4. If it’s necessary and nonincluded, what is it worth? Though repair of adjacent panel damage is clearly necessary, it is a judgment item. Your experience will help you know how much time the process is likely to take, but you also can help justify your judgment times through some videotaped time studies within your shop. Although I’ve focused here on the repair of the adjacent panels, there may be other non-included procedures and items as well. Refinishing may require blending into these adjacent panels—top and undersides. Time may be needed to match the look of factory seam sealers. Sound deadening pads are often included on these panels, and if damaged during removal of a panel, they will need to be repaired or replaced. In short, damage to adjacent panels can add significant time to a repair, and these steps should be documented on your estimates.

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AirPro Approved For Ford Programs AirPro Diagnostics announced Ford’s approval of AirPro for diagnostics and calibrations provider to ensure a complete and safe repair. AirPro Diagnostics provides cost effective scanning and ADAS calibrations products to the collision repair and auto glass industries, including its “game changing” AUGGIE. AirPro tools meet rigorous vehicle manufacturer requirements by having OEM licensed software and multi-brand diagnostic applications resident and directly connected to the vehicle. In recent independent testing the AUGGIE forward-facing camera recalibration device met IIHS and NHTSA standards. As the pioneers in remote diagnostics and calibrations, AirPro’s uniquely skilled, brand specialists service vehicle gateways as well as provide mobile calibrations at a 97.7% success rate. ORION is the hub by which all services are delivered within the company’s 10-Minute Response Pledge (current YTD acceptance time of 1 minute, 26 seconds).

FL Judge Finds Reasonable Evidence Tesla Knew Autopilot Defective By Iulian Dnistran InsideEVs

A Florida judge found “reasonable evidence” that Tesla, along with its CEO Elon Musk and other managers, knew the socalled Autopilot advanced driver assistance system was defective but still allowed cars to be driven unsafely, according to Reuters. The news comes after Judge Reid Scott, in the Circuit Court for Palm Beach County, ruled the plaintiff in a lawsuit over a fatal crash involving a Tesla Model 3 could proceed to trial and bring punitive damages claims against the EV manufacturer for intentional misconduct and gross negligence. The court action is related to a 2019 crash north of Miami, in which a Tesla Model 3 drove under the trailer of an 18-wheeler truck that had turned onto the road, shearing off the car’s roof and killing Stephen Banner, the owner of the EV. Per Reuters, a trial set for October was delayed and has not been rescheduled. As part of the ruling that allows

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the plaintiff to proceed to trial, the judge noted Banner’s wife should be able to argue to jurors that Tesla’s warnings in its manual and “clickwrap” agreement were inadequate.

“It would be reasonable to conclude that the Defendant Tesla through its CEO and engineers was acutely aware of the problem with the ‘Autopilot’ failing to detect cross traffic,” the judge wrote. Scott cited a 2016 promotional video released by Tesla that showed one of its EVs driving without human intervention.

At the beginning of the video, a disclaimer says, “The driver is only there for legal reasons. He is not doing anything. The car is driving itself.” “Absent from this video is any indication that the video is aspirational or that this technology doesn’t currently exist in the market,” the judge wrote, adding the video shows scenarios “not dissimilar” to what Banner encountered. The same video referenced by the judge was part of another court case where Ashok Elluswamy, director of Tesla’s Autopilot Software, said the promotional clip was staged and the system did not have the capabilities shown at the time. This latest decision is a blow to the Austin, TX-based carmaker. It previously won two product liability trials in California over the so-called Autopilot system.

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How Collision Repairers Can Help Ensure We Have Technicians in 5 Years By Abby Andrews Autobody News

A panel of experts—along with several current students—came together during the 2023 SEMA Show to talk about what the collision repair industry needs to do to attract and retain the new technicians it will need over the next several years. The panel was part of the Society of Collision Repair Specialists’ Repairer Driven Education series. Jeff Wildman, manager of the talent attraction program for BASF, moderated the discussion, while the panelists included Jennifer Maher, CEO of the TechForce Foundation; Donna Wagner, vice president of industry and media relations for ASE; Laura Lazano, professor of collision repair and automotive department cochair at Contra Costa College in San Pablo, CA; and Brandon Eckenrode, executive director of the Collision Repair Education Foundation (CREF). “We need almost 1 million techs in the automotive industry by 2026, and 113,000 in collision repair,” Wildman said. Before the discussion began, Wildman introduced five students who attended the SEMA Show as winners of a contest administered by BASF and the TechForce Foundation’s Techs for Tomorrow scholarship program. The students also each received a $2,500 scholarship toward their continued education. The students shared a bit about their reasons for pursuing a career in collision repair, and what they hope to accomplish. Victoria Callowhill, of Frisco, TX, is a student at Collin College, aiming for a career in restoration and collision repair. She said she wants to create generational wealth for her daughter, as well as reach younger girls to let them know there are so many places they can go in the industry. Antonio Diaz, of Chicago, IL, a student at Kennedy-King College, wants to be a refinisher. He said he wants to work somewhere where he is “able to love what I do, which is painting, and feel like my work is appreciated.” Wendy Vicente, Greeley, CO, a student at Aims Community College, is focusing on becoming a painter, and wants to “stay in a shop that appreciates my work.” Jesse Manuel, of Greeley, CO, is also a student at Aims Community College. “I want to make a name for myself, and I’m just starting my foundation,” he said. Abraham Martinez, of Houston, TX, is a student at Universal Technical Institute in Houston. “I want to work somewhere management isn’t just focused on

getting another car in or out, but they truly care for technicians,” he said. Wildman then turned to the panelists to talk about how the industry can make sure those students — and their peers — find what they’re looking for in a career.

what they do matters.” “They’re really after the experience,” Lozano said. “Money is important, but students don’t have mortgages—they have options. They leave employers because they don’t feel valued or challenged.”

Five students who attended the 2023 SEMA Show spoke during a panel discussion on the technician shortage. Jeff Wildman of BASF, far left, moderated the panel. The experts included, seated left to right, Jennifer Maher of the TechForce Foundation, Donna Wagner of ASE, Laura Lazano of Contra Costa College in San Pablo, CA, and Brandon Eckenrode of CREF. The students included, standing left to right, Victoria Callowhill, Antonio Diaz, Wendy Vicente, Jesse Manuel and Abraham Martinez.

Engaging with Schools Eckenrode said when he talks to schools with successful collision repair programs, a lot of it comes down to how involved local repairers are, which can include volunteering on the school’s advisory board— a great way to help direct what gets taught in the program—hosting students at their shop and participating in career fairs. Lozano agreed: “My school has a very strong relationship with the advisory committee and local businesses, as well as support from CREF,” she said. “It’s a multi-faceted circle of collaboration.” Wagner said ASEeducationfoundation. org has resources for collision repairers who want to get involved with local schools. Eckenrode also recommended connecting with school counselors, “because they play gatekeeper in giving students direction,” he said.

Wagner said it’s also important to let the younger generation know it’s OK to fail—even expected, because no one has ever not failed along the way. Mentoring New Technicians Mentorship is important, Lozano said, so students and new technicians have someone to help them achieve technical skills and work through failures.

12 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

Final Thoughts “This is a technician-based industry,” Lozano said. “We all can do a better job empowering them. They’re the ones who will ensure we have techs in the next five years, because they will share info and transfer skills on the shop floor.” Maher recommended nominating a technician for a Techs Rock Award to show they’re valued. Nominations are open through Jan. 14 at TechForce.org/ TechsRock. “Connect with your local school; that’s the first step,” Wagner said. “There’s ownership in participating in what we’ve talked about today to address the shortage, Eckenrode said. “Get involved locally—it’s a national problem with a local solution.” “Reach out to your local partners, vendors; everyone is willing to help,” Wildman added.

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Laying Out a Career Path Lozano said the students who spoke at the beginning of the session made it very clear they all “have a passion for working with their hands, and they want a career to foster that passion, and be treated and paid fairly.” Young people want a career path that shows the steps they need to complete—like training, certifications and skills demonstrations—to “level up” at work. “A lot of employers don’t have that information for them; they say, ‘Here’s the job, when I think you’re ready I’ll move you up,’” Maher said. “Show you care about their future. That’s huge.” What New Technicians Look For Maher said Gen Z is “going to look at pay; that’s always important. But they want to wake up every day and feel like

“Being mentored by a technician was one of the best times, not being shamed for mistakes I made,” Lozano said of her own experience as a student. Wagner said shop owners need to “make sure it’s the right mentor”---not a cynic who might turn off the student to continuing as a technician. Students should also get help gaining certifications and building skills, not just given a broom to push around the shop floor.

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Snap-on Showcases John Bean Tru-Point, More Award-Winning TSS Products At SEMA by Autobody News Staff In 1920, an engineer from Milwaukee named Joseph Johnson and his co-worker, William Seidemann, designed a ratcheting attachment to help make work easier for professional mechanics. That development led to the creation of the Snap-on Wrench Company. Over the years, the business’s name was shortened to Snap-on and the product line grew. Today, the brand includes a variety of tools, equipment, diagnostics, repair information and systems solutions. During the 2023 SEMA Show in November in Las Vegas, Snap-on showcased its new, advanced version of the award-winning John Bean® TruPoint™ Advanced Driver Assistance System (ADAS) calibration tool, as well as additional Snap-on Total Shop Solutions (TSS™) products. These included equipment from Car-OLiner®, Challenger Lifts, Ecotechnics, Hofmann®, Mitchell 1®, Sun®, Pro-Cut and JOSAM®. “We work closely with our customers to show them how TSS can help them improve and grow their businesses,” said Mariana Montovaneli, director of marketing for Snap-on Equipment. “From

wheel balancers, wheel aligners and diagnostics, to brake lathes, automotive lifts and collision repair, Total Shop Solutions brands offer a unique breadth of solutions to outfit any shop from floor to ceiling.” As a company that prides itself on being one of the top solutions for target placement, Montovaneli said Tru-Point was designed to guarantee targets are placed in the exact

Pictured, left to right, are Kamden Darney, Alex Givens and Lee Hernandez at the Snap-on booth during SEMA

position they need to be to perform a correct ADAS calibration. Over the past year, the company incorporated advancements to the John Bean Tru-Point tool, including up to 360-degree increased coverage. Montovaneli said the Tru-

Point unique camera technology compensates for having an unlevel floor. With OEM specifications requiring the calibration target be perfectly aligned with the vehicle’s camera, Snap-on Product Manager Jordan Krebs said this is critical. “If the floor is not level, the vehicle’s position and orientation can be affected, resulting in errors in the calibration process,” said Krebs. “Tru-Point cameras automatically calculate target height requirements and inform the user when to adjust the height of the target to be in the perfect field of view of the camera while moving the equipment and target stands around the vehicle.” Other John Bean equipment displayed during the event included the V3300 diagnostic wheel alignment system, B2000P wheel balancer, T7800 PROspeed™ tire changer and the 14k short locked and lighted scissor alignment lift. This is the first year Snap-on has introduced a heavy-duty section with products designed for wheel alignment and calibrations. Hofmann displayed its service equipment, which included the 2400P Armored Series wheel balancer, a new product release at

SEMA, as well as the geoliner® 609 and 678 wheel alignment systems, monty® 8200 smartSpeed™ and 3850 tire changers, geodyna® 980L wheel balancer, TreadReader™ and 15k four-post alignment lift. JOSAM wheel alignment and collision repair products were launched during the show for shops that perform heavy-duty repair work. The JOSAM Cam-aligner, designed to be robust and flexible, allows users to measure heavy-duty trucks in any environment. With the ability to compensate for road inclination, it can be used on non-flat surfaces. The JOSAM Frame Press was created to straighten heavy and light trailers and buses. It anchors or attaches to existing floor systems, enabling horizontal and vertical repairs. Snap-on also participated in Joe’s Garage, a real-world shop set up, at the AAPEX Show the same week as SEMA. In addition to Joe’s Garage, Tru-Point was one of several products featured at the TSS and SEMA garage booths, South Hall Upper and the SEMA FutureTech Studio in Central Hall. To learn more about Snap-on and the Total Shop Solutions family of brands, call 800-225-5786.

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Bosch Joins CAPA’s Verification Program

Wounded Warrior Receives Vehicle To Fuel His Selfless Service

Bosch is now part of the Certified Automotive Parts Association’s (CAPA) Tier 1 Replacement Parts Verification Program. CAPA, a nonprofit standardsetting and certification organization, has long been instrumental in ensuring highquality automotive crash parts. Historically, the distinction between Tier 1 replacement parts and aftermarket parts has been blurred, posing challenges in identifying parts comparable to original car company (CCO) or car company service (CCS) parts. CAPA’s Tier 1 Verification Program addresses this issue by ensuring Tier 1 Verified replacement parts are manufactured using the same factory, tooling, materials and processes as the CCO or CCS parts. Bosch’s approval to join the program allows it to begin submitting its ultrasonic parking sensors for verification. These verified parts will be distinguished by the CAPA Tier1 Verified label and announced in CAPA’s weekly updates.

After serving three tours of duty in Iraq as a veteran of both the U.S. Marine Corps and U.S. Army, a deserving wounded warrior with a passion for giving back to his community was presented keys to a newly-refurbished vehicle Dec. 12. The presentation was part of the National Auto Body Council’s Recycled Rides® program and took place at Crash Champions Collision Repair in Bradenton, FL. Sgt. Dallas Bragg, who served a combined 13 years of active military duty and was injured by multiple IEDs and other explosives, today spends his time giving back to several military families and leadership organizations across the community. Now, he will have a reliable vehicle to further fuel his passion for giving back by assisting fellow veterans struggling with mental health or financial stress. “I can’t begin to tell you the difference having a safe and reliable vehicle will have on our lives,” said Bragg. “For this, we are forever grateful to the NABC, GEICO, Crash Champions and all the other sponsors that made today

possible.” The ceremony was made possible by local Crash Champions collision repair technicians, who volunteered their time and craftsmanship to restore the vehicle to like-new condition in time for the giveaway. The vehicle was donated for refurbishing by GEICO.

This vehicle giveaway is just a small token of our immense gratitude for his service.” NABC Recycled Rides is a transformative program that unites several areas of the automotive collision repair industry in pursuit of restoring and donating vehicles to individuals and families in need

“It’s a true honor to play a small role in Sgt. Bragg’s heroic story of selfless service to our nation and its veterans,” said Crash Champions founder and CEO Matt Ebert. “His service to our country, both in combat duty and through his continued passion for giving back to veterans, is truly commendable.

of reliable transportation. Since the inception of the program in 2007, members of the NABC have donated more than 3,200 vehicles valued at $46 million. Crash Champions has taken part in more than 60 Recycled Rides giveaways across the country in the past two years.

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KECO Body Repair Products Introduces New Glue Pull Repair (GPR) Tools and Systems by Stacey Phillips Autobody News

With Glue Pull Repair (GPR) increasingly being used in body shops today, KECO launched a variety of new GPR tools and systems during the 2023 SEMA Show in Las Vegas, NV, in November. In addition to the company’s flagship L2E GPR Collision System, which received SEMA’s 2021 New Product of the Year award in the Collision Repair and Refinish category, the company showcased five new systems to help technicians make clean and efficient repairs, from roughout to a flat finish. This included the GPR+ Collision System, a runnerup in this year’s New Product of the Year awards in the same category. “With the introduction of our new GPR Systems and many other products at SEMA, KECO Body Repair Products continues our passion to bring innovative solutions to the automotive repair industry,” said Chris White, president of KECO. “Our commitment to developing tools that enhance the capabilities of technicians and improve overall repair quality is evident in these new systems.” KECO was established as a

plastics injection molding company in 1963. In 2010, the company began manufacturing GPR tools for the automotive repair industry under the name KECO Body Repair Products. Today, KECO primarily focuses on GPR tools and systems for technicians and repair professionals worldwide.

terms of a continuum, from roughout to finish and the new systems reflect this,” explained White.

* The L2E (Compact) GPR Collision System is a compact version of the flagship system, with all the tools, tabs and modularity of the L2E, but it sits on a smaller 18” cart. White said this allows for ease of movement throughout the shop. * The GPR+ Collision System supplements the L2E Collision System and assists technicians looking to correct sharper and more complex damage with precision and efficiency. * The GPR Technician Companion System works in Scott Stayton, left, KECO’s director of marketing unison with the central L2E and portfolio management, and Chris White, right, for larger tools and allows president, at the KECO booth during the SEMA Show technicians to address a smaller percentage of The L2E product has the capability damage. to do repairs from roughout to finish, * The GPR RoughOut System including paintless dent repair (PDR). provides half of the full system. It was Over the last year, the company designed for technicians to repair focused on enhancing the L2E with medium to large damage, ensuring additional tabs and designing new a faster and more efficient repair systems to meet the needs of the process. It contains the items needed industry. to achieve basic pulls to roughout “We think of repairs that are done in damage, which will ultimately require

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a filler for finishing. * The GPR Finish System, focused on smaller flat finish repairs and detail dents, provides the tools, tabs and modularity to work toward a flat refinish. The company also developed KECO’s Mother of All Beams (MOAB) specifically for Rivian electric delivery vans. The 60-inch MOAB provides the length and strength to move difficult damage or structures found on electric delivery vehicles, tractortrailers, RVs and other fleet vehicles. “We went from those vans being literally unrepairable and needing to be replaced to being able to repair them,” noted White. The company prides itself on being problem solvers for the industry and creating custom solutions to offer a method for repairability. However, when deciding whether to repair or replace, White stresses the importance of always following OEM procedures. “The KECO team is passionate about advancing auto collision repair methods and ensuring they are the least invasive and most efficient,” he said. For more information, visit www. kecotabs.com.

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CIECA Announces New Member 1Source ADAS

Mercedes-Benz Launches EV Charging Network Across North America

CIECA welcomed 1Source ADAS as a new corporate member. Established in 2023 by CEO Tommy Ames and COO Robby Read, the company provides Advanced Driver Assistance Systems (ADAS) software that generates a postrepair report identifying needed calibrations based on a collision repair estimate. Ames was born and raised in the collision industry and worked as a collision technician for McDaniel’s Quality Body Works just prior to starting his business. The president of McDaniel’s, Darrell Smith, shared information with Ames about CIECA and 1Source ADAS joined the association to integrate with CCC ONE. 1Source ADAS software is designed to use the BMS file format as well as PDF. “By using CIECA BMS Standards, we are able to communicate with our business partners using the same language and format,” said Ames. “We’re excited to be on board with an organization that is trying to standardize communication in the collision industry.”

Mercedes-Benz High Performance Computing North America (Mercedes-Benz HPC NA), in collaboration with MN8 Energy, unveiled its first Mercedes-Benz Charging Hub. Located at the Mercedes-Benz USA headquarters in Sandy Springs, GA, this launch marks the beginning of a broader initiative to expand the EV charging network across North America. The inaugural MercedesBenz Charging Hub sets a new standard in the charging industry. Notable features include 400kW ChargePoint chargers, capable of delivering some of the industry’s fastest charging speeds. This advancement allows EVs to charge from 10% to 80% in under 20 minutes under specific conditions. Another aspect of the new charging hub is its accessibility and open nature. From the outset, EV drivers of any brand can use these facilities, an inclusive approach critical to promoting widespread EV adoption. The charging hub offers an array of amenities, including a luxurious

lounge with comfortable seating, refreshments and restrooms, all powered by renewable energy. Its design includes a solar canopy for weather protection and overhead LED lighting for safety, while solar panels generate clean electricity. The hub also features intelligent indicators and an accessibilityfocused design, accommodating electric vans and vehicles with trailers.

“The Mercedes-Benz Charging Network expands global charging options for all EV brands, promoting clean, electric mobility,” said Franz Reiner, chairman of the Board of Management of Mercedes-Benz Mobility AG. This initiative aligns with MercedesBenz’s strategic focus on areas

of high EV usage and future potential, enhancing the EV charging map in North America. In addition to the Sandy Springs hub, Mercedes-Benz HPC NA plans to establish more than 400 charging hubs with over 2,500 chargers by the end of the decade. This initiative includes collaborations with retail giants like Simon and Buc-ee’s, integrating charging stations into popular shopping and travel destinations. “Our driver-first network aims to set a new standard for quality charging experiences, accessible to all EV drivers,” said Andrew Cornelia, president and CEO of Mercedes-Benz HPC North America LLC. The Mercedes-Benz Charging Network is part of a global commitment to electrified mobility, with plans to establish more than 10,000 charging points worldwide by the end of the decade. This endeavor is a critical component of MercedesBenz Group’s Ambition 2039, aiming for a carbon-neutral value chain.

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l CONTINUED FROM COVER

Industry Trends Of 2023 6 attempted thefts and other forms of vandalism are also on the rise. CCC repairable claims volume for vandalized vehicles was up almost 22% year-overyear in 2022 and is on pace to increase 10% in 2023. Total losses as a result of vandalism increased by 10% in 2022 and are on pace to see an increase of over 25% year-over-year. Vehicles produced in Asia accounted for 48% of all repairable vandalism claims in 2020; that share increased to over 60% in 2022 and is over 68% through Q3 2023. Asian autos 4 years or older have shown the greatest propensity for vandalism, which can be attributed to commonality and social media triggers which have prompted and perpetuated auto thefts. Theft of catalytic converters also surged this year, leading to widespread concern and preventive measures. NICB reported 64,701 catalytic converter thefts took place in 2022; this is almost 4X the count in 2020. Per their report, catalytic converters contain valuable rare earth metals (platinum, rhodium and palladium) and can fetch $50-250 or, for one from a hybrid, up to $800. CARFAX reported as many as 153,000 catalytic converter thefts might have occurred in 2022—almost 90,000 more events occurring than claims reported (likely due to vehicles not having applicable insurance coverage for the loss or insureds electing against filing a claim). Based on CCC’s data, more than 70% of catalytic converter claims in 2022 were for vehicles 7 or more years old; of those, 8.6% were total losses. Through the first half of 2023, 69.9% of catalytic converter claims were for vehicles 7 years or older, with 11.8% being deemed total losses. The average repairable catalytic converter claim had an average total cost of $1,415, made up primarily of replacement parts. Numerous actions are being taken to prevent catalytic converter theft in legislatures and law enforcement across the county. Vehicle owners can prevent catalytic converter theft by being more aware of where they park, including well-lit areas and garages, and having VIN numbers etched onto their vehicle’s catalytic converter which can also be painted with bright high-heat paint. A large national insurance carrier recently reported that catalytic converter thefts were down about 38% in 2023. However, it is unclear how much of that decline is related to an actual decrease in catalytic converter thefts, as this is based on filed claims. 2. The Impact of Strikes on Suppliers The repercussions of the recent UAW strikes also rippled through the industry,

underlining the critical role of suppliers and emphasizing the need for a more resilient supply chain. Based on historical experience, the strikes could result in increased cycle times over the next few months and potential nonOEM part price increases. Beyond the short-term impacts, the recent strikes highlighted the importance of suppliers. Suppliers account for 900,000 jobs in the automotive industry—six times the number of UAW workers at Ford, GM and Stellantis combined—and represent 2.5% of GDP. At the onset of the strike, concerns about the impact to suppliers and long-term effects on the supply chain were voiced. Gone are the days of raw material being transported into Michigan auto plants and seeing thousands of automobiles come out each day. More efficient, distributed operating models opened the door to the modern, global supply chain and the merits of on-time delivery. However, as we saw during the pandemic, this model is not immune to market pressures. Of the over 11,000 workers laid-off because of the UAW strikes, more than 3,400 were from suppliers. In context, the strikes resulted in $10.4 billion in economic losses and underscored uncertainty in the automotive industry. Suppliers accounted for almost a third of the economic losses from the strike; current estimates put the impact of strikes on suppliers of $3.3 billion. At the time of this writing, UAW workers have ratified contracts with Ford, GM and Stellantis. Honda, Hyundai, Nissan, Subaru, Toyota and Volkswagen have all increased wages for their U.S. plant workers on the heels of the aforementioned agreements. 3. The Vehicle Repair Cost Bubble In the auto collision segment, total cost of repairs (TCOR) experienced subtle fluctuations this year, influenced by factors like vehicle age mix and economic variables. CCC’s average TCOR has exhibited a modest increase in 2023, +4.6% through Q2, following the double-digit increases in 2021 and 2022 (+10.2% and 12.4% respectively). Only one of the key drivers of TCOR—labor—has had a major impact on TCOR thus far in 2023, while parts costs have remained relatively flat. Beneath the surface of these highly aggregated numbers lurks a possible cause for concern for the coming years—increases in new vehicle sales and a shift in vehicle age mix. S&P Global Mobility reported the average age for light vehicles was 12.5 years. This comes following a year that saw the lowest volume of new vehicle sales since the Financial Crisis (2007-2011), per the Federal Reserve Bank of St. Louis. Since 2018, CCC has seen vehicles seven

18 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

years or older account for an increasing share of overall repairable claims: from 35.5% in 2018 to 44.8% in 2023. Across all loss categories, the average TCOR is $4,451 through Q2 2023. Vehicles seven years or older have an average TCOR of $3,516 while the average TCOR for vehicles six years or newer is $5,211—almost $1,700 more than vehicles seven years or older. In other words, the aging vehicle pool is temporarily containing the average TCOR from ballooning even further. Had the vehicle age mix remained consistent with 2018, the average TCOR would currently stand at $4,657, an additional +4.6% greater than current. A few factors that exacerbated vehicle maturity over the past few years are decreased miles driven, new vehicle production, new vehicle costs and auto financing costs. Miles driven continue to recover and are +2.4% year-over-year through August. While work arrangements are still in flux, companies continue to reconsider return-to-office protocols. Average new vehicle prices remain around $48,000 with average APRs currently ranging from 7.4% to over 9%. 2022 new vehicle sales were at their lowest since the financial crisis, bottoming out in 2009 when 10.4 million new cars and light trucks were sold. New vehicle sales did not return to prerecession levels, until 2014. An average of 17.1 million new cars and light trucks

sold were annually between 2014 and 2019. As new vehicle sales volume continues to increase, the mix of older vehicles should begin to recede in favor of newer vehicles, though this could take 5-7 years to be reflected in the vehicle mix. At a modest 5% year-overyear increase in new vehicle sales, we might not expect to see pre-pandemic sales volumes until 2026. As we enter 2024, pay close attention to vehicle age mix shifts to stay ahead of the curve. Preparing for 2024 As we approach 2024, these interconnected industry themes paint a vivid picture of the current state, urging stakeholders to adapt and innovate in the face of change. The insights gleaned from these year-end trends can help shops, carriers and even policymakers toward more informed decisions. Acknowledging the challenges posed by theft, supply chain disruptions and shifting market dynamics is the first step toward devising proactive strategies. By staying vigilant and agile, the industry can harness insights to fortify its foundations, ensuring a resilient and prosperous future. In the coming years, vigilance, adaptability and a keen understanding of emerging trends will be paramount, enabling shops, carriers and even policymakers to navigate the everchanging landscape with confidence.

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

FLORIDA

Carlock Honda

GEORGIA

Hendrick Honda Pompano Beach

Birmingham

800-987-0819 205-949-5457

Pompano Beach

954-425-8244

Dept. Hours: M-F 8-6 robert.thompson@carlockcars.com FLORIDA

Clearwater

888-205-2564 727-530-1173

McKenney-Salinas Honda

407-442-1938

678-318-3155

888-703-7109 704-824-8844 x 624

Classic Honda Orlando

Dept. Hours: M-F 7-7; Sat 7-5 cdunlap@penskeautomotive.com

Rick Case Honda

Milton Martin Honda

877-544-2249

770-534-0086 678-989-5473

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

Marietta

800-334-3719 770-933-5870 Direct

Headquarter Honda

Dept. Hours: M-F 7-7; Sat 7-6 hondaparts@edvoyles.com

Clermont

800-497-2294 407-395-7374

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

Honda of Newnan

Gastonia

Dept. Hours: M-F 7:30-5:30 parts@mshonda.com

Vann York Automall High Point

336-841-6200

Dept. Hours: M-F 7:30-6; Sat 8-3 SO. CAROLINA

Newnan

Fred Anderson Honda

Dept. Hours: M-F 7-6; Sat 7-4 samuel.trapani@henrickauto.com

864-234-6481

678-423-8183

Union City

Ed Voyles Honda

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

Gainesville

Nalley Honda

GEORGIA

888-893-4984 407-521-1115

Buford/Gwinnett

Dept. Hours: M-F 7-6; Sat 7-4 parts@hollerhonda.com

888-418-3513 305-256-2240

Dept. Hours: M-F 7-7; Sat 7-5; Sun 9-5 hernandeze@autonation.com

Asheville

Honda Mall of Georgia

Miami

800-542-8121 954-964-8300

800-476-9411 828-684-4400

Holler Honda

South Motors Honda

Hollywood

800-733-2210 706-228-7040

Dept. Hours: M-F 8-5; Sat 8-4 appletreeparts@hotmail.com

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

AutoNation Honda Hollywood

Apple Tree Honda

Augusta

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

Davie

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

Gerald Jones Honda

Dept. Hours: M-Fri 7-6; Sat 7-5; gerardbruno@hendrickauto.com Orlando

AutoNation Honda Clearwater

NO. CAROLINA

866-362-8034 770-306-4646

Dept. Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars.com

Greenville

Dept. Hours: M-F 7:30-6; Sat 8-5 hgrparts@anderson-auto.net

Piedmont Honda Anderson

800-849-5057 864-375-2082

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

MISSISSIPPI

Patty Peck Honda Ridgeland

Dept. Hours: M-F 8-7; Sat 8-5 pepe.guevara@headquarterhonda.com

800-748-8676 601-957-3400

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

ACURA FLORIDA

FLORIDA

GEORGIA

VIRGINIA

Acura of Orange Park

Rick Case Acura

Nalley Acura

Karen Radley Acura

888-941-7278 904-777-1008

800-876-1150 954-377-7688

800-899-7278 770-422-3138

800-355-2818 703-550-0205

Jacksonville

Fort Lauderdale

Dept. Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark.com

Duval Acura Jacksonville

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

Dept. Hours: M-F 7-7; Sat 8-5 Cecil.adams@duvalacura.com

Jackson Acura Roswell

877-622-2871 678-259-9500

Dept. Hours: M-F 7-6; Sat 7:30-6 kmcmillan@jacksonacura.com

20 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

Dept. Hours: M-F 7-7; Sat 7-5 byoung@nalleycars.com NO. CAROLINA

GEORGIA

800-352-2872 904-725-1149

Marietta

Flow Acura

Winston-Salem

800-489-3534 336-761-3682

Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com

Woodbridge

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

TENNESSEE

VIRGINIA

Airport Honda

Valley Honda

800-264-4721 865-970-7792

800-277-0598 540-213-9016

Alcoa

Staunton

Dept. Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda.com

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

AutoNation Honda West Knoxville

West Broad Honda

Knoxville

800-824-1301 865-218-5461

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

Richmond

800-446-0160 804-672-8811

Dept. Hours: M-Fri 7:30-6:30; Sat 8-5 wbhonda@aol.com

Wolfchase Honda Bartlett

800-982-7290 901-255-3780

Dept. Hours: M-F 7-7 ekerr@wolfchasehonda.com VIRGINIA

Checkered Flag Honda Norfolk

800-277-2122 757-687-3453

Dept. Hours: M-Sat 7:30-6 honda.checkeredflag.com

Hall Honda

Virginia Beach

800-482-9606 757-431-4329

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

Honda and Acura Genuine Parts is an online ordering portal for repair facilities to order parts directly from the Honda/Acura Dealer(s) of their choice.

autobodynews.com / AUTOBODY NEWS JANUARY 2024 21

Wieländer+Schill Joins SCRS

Ft. Lauderdale Woman Receives NABC Recycled Ride At Boyd Collision Group Leadership Conference On Dec. 5, a deserving Ft. Lauderdale, FL, area woman was presented with a vehicle to provide her transportation and independence, thanks to the National Auto Body Council Recycled Rides® program along with car donor GEICO and repair partner Gerber Collision & Glass of Ft Lauderdale. The presentation was held as part of the Boyd Group Leadership Conference at the Diplomat Hotel and Resort in Hollywood, FL. The deserving recipient, Sidney Roland, who received a 2018 Nissan Rogue, was nominated by Compassionate Hearts United Foundation, Inc. Roland is an individual whose resilience and determination has truly inspired everyone at The Compassionate Hearts United Foundation. Roland has faced unimaginable challenges as a survivor of domestic violence, and her journey to rebuilding her life after a year in an abusive situation has been nothing short of remarkable. The Compassionate Hearts United

Foundation joined forces with Roland’s mother to provide her with the support, guidance and resources she desperately needed to escape this environment. She

has taken steps to rebuild her life, securing employment and striving to achieve a level of self-sufficiency once beyond her reach. A significant barrier to her continued progress, however, was the lack of reliable transportation. This vehicle will be an invaluable asset in helping her fully reclaim her independence and security. “When I first got nominated for this vehicle it felt like a dream, like it was out of reach, and I would never qualify,” said Roland. “When the

Wieländer+Schill (W+S) has joined the Society of Collision Repair Specialists (SCRS) as a corporate member. For more than four decades, W+S has focused on delivering new, inventive solutions tailored for the collision industry. Their products, designed and distributed by WSEngineering, are renowned for their flexibility and high quality, earning the approval and reliance of various automobile manufacturers globally. This expertise now aligns with the SCRS’s mission to support leading repair centers with top-tier resources and knowledge. Maured Bauer, managing director of Wieländer+Schill, expressed enthusiasm about the partnership, highlighting the company’s longstanding relationship with Reliable Automotive Engineering (RAE), another SCRS corporate member. “For over 20 years, we have been the key OEM supplier in the USA through RAE,” Bauer said. “Joining SCRS, an organization known for its impactful support and initiatives in the industry, aligns perfectly with our vision and commitment to serving our customers worldwide.”

Compassionate Hearts Foundation told me I was the recipient, it didn’t feel real until I got here. I didn’t really realize the magnitude and weight of what I’d gone through and where I am today until I was told I was receiving this vehicle. Not having a car has hindered me in making progress in my independence. This is such a huge turning point in my life. Things like this don’t happen to people like me. I am over the moon, beyond happy and so grateful. Thank you everybody so much.” NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the program in 2007, members of the NABC have donated more than 3,200 vehicles valued at some $46 million. Additional partners in the presentation included Enterprise, Cars for Charity, Advanced Remarketing Services and Sublet Works.

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State Farm Leads in Auto Insurance Affordability Across 29 States State Farm, the nation’s largest auto insurance provider, was identified as the most affordable option in 29 states in a recent report by Clearsurance.com. The study highlighted that while State Farm leads in overall affordability, other insurance providers offer more competitive rates for certain customer demographics. For instance, Erie Insurance is the go-to option for drivers with tickets, offering an average rate increase of only 7% post-speeding ticket compared to the industry average of 22%. GEICO stands out for its significant driver discounts, while AutoOwners is most favorable for family policies. The report showed the cost-effectiveness of Metromile for drivers with a safe record and those driving less than 10,000 miles annually. This usage-based insurance model aligns well with the needs of low-mileage drivers. Additionally, Farm Bureau offers the most cost-effective options for drivers with poor credit, and USAA is the best choice for military families.

“The best insurance provider depends on each individual’s needs and demographics. There is no one-size-fits-all best company,” said Melanie Musson, insurance expert with Clearsurance.com. The report also compared average monthly rates for full coverage auto insurance, which includes both collision and comprehensive coverage. GEICO leads with the lowest average rate of $154 per month, followed by USAA at $189 and State Farm at $200. Full coverage is more expensive than liability-only but offers extensive protection against various damages. The cheapest insurance option may vary based on multiple factors, including age, gender, driving history, credit score and the type of car insured. For instance, more expensive cars typically attract higher full coverage premiums. For a comprehensive view of the best and cheapest car insurance companies of 2023, interested readers can refer to the full report at clearsurance.com/ best-car-insurance.

l CONTINUED FROM COVER

Top Fraud Trend risk. Residents are not only faced with the costs from the damage done to their vehicles, but also risk serious injury and possible death as a result of vehicle accidents deliberately caused by fraudsters.” Various tactics are often used to commit these crimes. For example, criminals may use fraudulent information, such as inflated medical billing, in the aftermath of a staged accident in order to influence settlements from insurers during mediation. Staged accident rings with complicit passengers involved in the conspiracy may visit multiple health clinics and often receive a myriad of treatments for alleged soft tissue injuries that cannot be verified through medical imaging. These fraudulent injuries and medical services aim to inflate the insurance claim and thereby further enrich the conspirators. Recognizing staged vehicle accidents as a significant fraud trend in South Carolina, NICB conducted an analysis of questionable vehicle-related insurance claims by city spanning from 2020 through 2022. NICBÕs

analysis identified the city of Columbia with the largest number of claims in South Carolina, accounting for 13% of the state’s total. Columbia is followed by Greenville with 5% and Florence with 4%. North Charleston and the city of Sumter both recorded 3% of claims from 2020 through 2022. An analysis of questionable claims by county was also conducted and showed that Richland County ranked above all other counties in South Carolina with almost 15% of claims, followed by Charleston County and Greenville County with 7% each. “In order to combat this fraud, it is essential to provide the South Carolina Insurance Fraud Division and State Department of Insurance access to the critical resources needed to more effectively deter fraudsters,” De Campos said. “This can include raising minimum criminal penalties for insurance fraud.” NICB provides assistance to review and investigate fraud cases to the South Carolina Law Enforcement Division (SLED), which investigates a yearly average of 2,650 questionable claims filed in the state.

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Ford Cuts Dealer EV Requirements Again By Dan Mihalascu InsideEVs

Ford Motor Company has backed down on requirements imposed on its EV dealers and is again making changes to its voluntary EV certification program.

The move comes just as the automaker has lost a legal battle to Ford dealers in Illinois, where the state motor vehicle board ruled the automaker broke the law by requiring its dealers to invest hefty sums if they want to continue selling EVs. The company said its decision to cut training costs by half and reduce the number of chargers that retailers are required to install at their premises is not related to the Illinois ruling. “We made changes to the voluntary Model e EV Program as

Classic Collision Adds New Location in Orlando Classic Collision, LLC, announced a new closing Nov. 10, the acquisition of Brennan Bodyworks in Orlando, FL. For more than 30 years, Brennan’s has been one of Orlando’s trusted premier auto collision centers. The team at Brennan’s has invested in topof-line equipment and holds several certifications to offer a wide range of vehicle repairs. “We have always gone beyond just repairing our customers’ vehicles and believe all customers deserve the highest standard of repair. We know that Classic Collision offers the same high standard repairs, that is why we choose them to continue our efforts in Orlando,” said Daniel Brennan, former owner of Brannan Bodyworks. “We are pleased to welcome the Brennan Bodyworks team to the Classic family. This new location will be a great addition to our growing Orlando market,” said Toan Nguyen, CEO of Classic Collision.

we continue to adapt our overall EV strategy to the market. We also continue to listen to dealer feedback. These changes are not a result of the Illinois outcome,” Ford spokesperson Marty Günsberg told InsideEVs, adding Ford made the latest changes to adjust to market demand. As part of the new requirements, Ford’s upper-tier “Certified Elite” dealers now have to install three Level 2 chargers instead of five, while the lower-tier “Certified” dealers are now required to install two Level 2 chargers instead of five. Furthermore, the additional Level 3 fast-charger for 2026 for Certified Elite dealers has been removed altogether. For both tiers, Ford also pushed back the deadline to have the chargers in place by six months to June 30, 2024, because of charger supply chain and infrastructure delays. In addition, Ford said it is cutting the cost of dealer training by up to $20,000—about half—for the 2024 calendar year. Charging requirements was a key point of contention in the Illinois case. Twenty-six dealers

argued Ford’s program violated state franchise laws, adding the more expensive Level 3 chargers were unnecessary.

“We made changes to the voluntary Model e EV Program as we continue to adapt our overall EV strategy to the market. We also continue to listen to dealer feedback. These changes are not a result of the Illinois outcome,” — MARTY GÜNSBERG FORD SPOKESPERSON

Ford said it would appeal the decision. “Ford stands by its voluntary Model e EV program,” the company said in a statement. “It is designed to make sure that Ford and its dealers provide Illinois Ford EV customers with a segment-leading experience throughout their purchase, service and ownership journey.” The Illinois dispute is just one of several battles Ford is carrying out nationwide over its EV

program. The program has been opposed by most state dealer associations since it was unveiled in September 2022. Initially, about 60% of Ford and Lincoln dealers opted in---approximately 1,920 of the company’s nearly 3,000 U.S. dealers. In January, Ford made some concessions to dealers, including scaling back the amount of charging a dealer would be required to offer public charging every day and removing a cap that limited lower-tier dealers to selling a maximum of 25 EVs per year. After the changes, Ford gave dealers the option to drop out of the program or change tiers. The automaker’s total enrollment fell 1.5% to 1,891 of its dealers. Since then, EV enrollment has fallen to approximately 1,550 dealers, or about 53% of the total network, Ford said Nov. 20, according to Automotive News. Still, due to the size of Ford’s network, the company claims 86% of the population lives within 20 miles of a Ford dealership capable of selling and servicing a Ford EV.

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Repairify Now ASE Accredited For Training Repairify, Inc., has achieved ASE accreditation for both online and in-person training, and is now recognized by ASE as a provider of “Continuing Automotive Service Education” to help train the future technicians of the automotive repair industry. Repairify sought this accreditation to ensure its training content aligns with I-CAR objectives. With this accreditation, students who complete Repairify courses will receive credit towards their I-CAR certifications in the same way they would if they took the I-CAR course at the technical center in Chicago. Repairify’s curriculum design, processes and methods for training were rigorously tested by ASE over several months. Every aspect of Repairify’s program was examined to validate that its training materials met ASE’s high standards and the needs of automotive students and the industry. Now, Repairify has joined this exclusive club of fewer than 50 institutions that have received ASE accreditation.

Tampa Area Veteran Receives NABC Recycled Ride On Dec. 6, a deserving Tampa area veteran was presented with a vehicle to provide him transportation and independence, thanks to the National Auto Body Council (NABC) Recycled Rides program, along with car donor GEICO and repair partner Ferman Collision Center.

The presentation was held at the Ferman Collision Center in Tampa, FL. In front of the backdrop of a huge American flag, provided by Stepp’s Towing, and surrounded by more than 20 veterans for moral support, the deserving veteran, Rick Burton, received a 2020 Honda Civic. Burton was nominated by the

Wounded Warrior Project. Burton, who served in the U.S. Army from 1995 to 2014, is a disabled veteran with a fixed income. He is always finding ways to help other veterans who struggle upon discharge from service. Recently, vehicle repairs have resulted in him losing his means of mobility and transportation. The gift of a reliable vehicle will provide him with the independence he needs. “Thank you to everyone who made this possible,” said Burton. “With transportation I can rely on, I just want to be able to keep helping others who have gone through similar circumstances and experienced injuries like me.” “It was truly inspiring to see the show of support of Rick from his fellow veterans from Wounded Warriors Project, the Patriot Guard and Golf4Vets,” said Dale Ross, program manager for the NABC Recycled Rides program. “It feels good to help good people, and Rick is that type of person that is always looking to help other veterans.” NABC Recycled Rides is

a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals

“It was truly inspiring to see the show of support of Rick from his fellow veterans from Wounded Warriors Project, the Patriot Guard and Golf4Vets,” — DALE ROSS

PROGRAM MANAGER FOR THE NABC RECYCLED RIDES PROGRAM

and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 3,200 vehicles valued at some $46 million. Additional partners in the presentation included Enterprise, Choice Auto Glass, Stepps Towing, Solar Craft, Cars for Charity and Advanced Remarketing Services.

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Road Risk Alert: It’s the Most Distracted Time of the Year The hustle and bustle of the holiday season brings excitement and anticipation for Christmas and New Year’s. But it also leads to a significant increase in distracted driving and speeding. According to a new CMT analysis, Christmas and New Year’s Day are the most distracted days of the year. Christmas also sees the most speeding of any day of the year while New Year’s comes in fourth. CMT analyzed driving patterns and behaviors two weeks before and after each holiday from 2020 to 2023, covering over 100 million car trips. On an average day around Christmas, drivers spend 2 minutes and 16 seconds per hour using their phones behind the wheel. On Christmas Day, distracted driving rises to 2 minutes and 32 seconds per hour, 12.1% more than the surrounding days. CMT defines distracted driving—screen interaction---as when a driver taps on the screen while the vehicle is traveling over 9 mph. New Year’s Day sees similar trends as Christmas. On the days around New Year’s, drivers spend 2 minutes and 17 seconds per hour driving distracted. On New Year’s Day, distraction increases by 8.9% to reach 2 minutes and 29 seconds, the second most distracted day of the year. New Year’s Eve is the third most distracted day, with 2 minutes and 24 seconds. The 12.1% surge in screen interaction on Christmas carries severe and fatal consequences. CMT’s research shows that for every 10% rise in distracted driving, the crash rate increases by 1.4%. CMT estimates the increase in distracted driving on Christmas has caused 2,000 additional crashes, five fatalities, and $47 million in economic damages over the past three years. The impact for New Year’s Day and New Year’s Eve is similar. The trend of distracted driving spiking on Christmas has held true for the past few years. In 2020, drivers

spent 2 minutes and 19 seconds on their phones during the days around Christmas, jumping to 2 minutes and 38 seconds on Christmas Day. 2021’s distraction figures were lower overall during the holidays, but still

saw a dramatic 11.6% increase on Christmas. In 2022, the increase in time spent driving distracted on Christmas was 11%. While Christmas is consistently the most distracted day of the year, there is some good news. Distracted driving around Christmas time has fallen every year since 2020. In 2020, drivers spent an average of 2 minutes and 38 seconds per driving hour engaging with their phones. In 2021, this number fell to 2 minutes and 32 seconds. It fell another 5 seconds to 2 minutes and 27 seconds in 2022. Christmas isn’t just the most distracted day of the year. It also sees the most speeding of any day. During the two weeks before and after Christmas Day, drivers spend 2 minutes and 41 seconds speeding. On Christmas Day, speeding increases to 4 minutes and 3 seconds, a 51.2% increase. Dec. 26 has the second most speeding followed by July 4th and New Year’s Day. CMT defines speeding as traveling more than 9 mph over the posted speed limit. Speeding, when combined with distracted driving, leads to more severe and deadly outcomes. The

difference between a crash at 45 mph and one at 40 mph can be the difference between life and death, as shown in an IIHS analysis. A distracted driver will hit the car in front of them at full speed.

Holidays Impact Hourly Distraction Trends Distracted driving on Christmas Day has a different pattern than the surrounding days. For example, in 2022, distracted driving on Christmas peaked at 2 minutes and 36 seconds during the late morning, from 11 a.m.–1 p.m., while for the surrounding

days, it reached its highest point at 8 p.m. Distraction on Christmas starts early, hitting 2 minutes and 24 seconds by 8 a.m., and stays at or above that level until midnight. On the surrounding days, distraction hovers around 2 minutes and 18 seconds until rush hour, increasing at 6 p.m. through 10 p.m. Distracted driving on New Year’s Day in 2022 tells a slightly different story. Distracted driving on New Year’s Day was 14.6% higher during the early morning hours compared to the days around Christmas, from midnight until 7 a.m. Distraction was slower to peak on New Year’s Day, plateauing at 11 a.m. until growing from 4 to 7 p.m., where it peaked at 2 minutes and 42 seconds per hour. Ensuring a Safe Driving Holiday Season The holiday season experiences the highest levels of distracted driving and speeding throughout the year. The data reinforces the need for all drivers to stay focused, put the phone down and check their speed to ensure they arrive safely. These behaviors, which are simple to adopt but hard to maintain, would create safer roads for everyone during the holiday season and beyond.

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VW Chattanooga Plant Workers Push For Unionization Amid Surging Vehicle Prices More than 1,000 Volkswagen workers—more than 30% of the workforce—at the automaker’s only U.S. plant in Chattanooga, TN, have launched a union drive, rallying for fair treatment and better pay in response to rising vehicle prices and stagnant wages. This development marks a critical phase in the United Auto Workers’ (UAW) national campaign to unionize all non-union autoworkers at 13 companies. “People are standing up like never before,” said Steve Cochran, a skilled team member and a leader of the unionization effort at Volkswagen. This union drive comes against the backdrop of Volkswagen Group’s substantial financial success, with profits totaling $184 billion over the past decade. Despite the company’s profitability and a 37% increase in vehicle prices over three years, wages for workers at the Chattanooga plant have not kept pace. These workers are responsible for assembling popular models such as the VW Atlas, Atlas Sport and the electric ID.4. The push for unionization is not just about wages; it’s also about job quality and safety.

Vicky Holloway, a production team member in body shop quality, expressed concerns over the company’s hiring practices. “I want to know we’re doing the job right,” she said, pointing out the need for experienced individuals in critical roles. Safety, she said, should be the foremost priority, a sentiment echoed by her colleagues. Billy Quigg, a production team member in assembly, voiced dissatisfaction with the current working conditions, particularly the forced overtime and limited time off. “The forced overtime on Saturdays, the lack of time off, it keeps us away from our families,” Quigg said. He believes a successful unionization will lead to better job conditions and, in turn, benefit the broader community. The Chattanooga plant has faced issues with high turnover, as noted by Josh Epperson, an equipment operator in assembly. “Most [new workers] are gone in a few months,” he said, citing inadequate tools and support for new employees. Unionization, in his view, is the solution to improving working conditions and employee retention.

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The movement at the Chattanooga plant is part of a broader trend among non-union autoworkers nationwide, spurred by recent successes in the UAW’s Stand Up Strike at the Big Three— Ford, General Motors and Stellantis. While non-union automakers have made some improvements to pay packages, they still fall short of the standards set by unionized automakers. Drew Hall, a production team member in paint, shared a personal perspective on the benefits of unionization. Coming from a union family, he witnessed firsthand how union support provided his father, a former Ford employee, with a full pension and health care benefits after an early retirement due to disability. As this movement gains momentum, thousands of nonunion autoworkers across the country are joining the cause, signing union cards at UAW.org/ join. The UAW has also released informational videos on workers’ legal rights and the record auto industry profits, further encouraging workers to demand a fairer deal.

Northwood University Announces Master’s Degree Northwood University is launching a pioneering master of science in organizational leadership (MSOL) program tailored for automotive professionals. Enrollment is now open, with classes beginning Jan. 15, 2024. The MSOL for Automotive Professionals program exemplifies Northwood’s continued dedication to providing specialized education for individuals deeply entrenched in the automotive field. It welcomes participants with diverse automotive industry experiences. It offers a seamless pathway for graduates of Northwood’s prestigious Automotive Marketing Management and Automotive Aftermarket Management programs, ensuring a unified and comprehensive educational journey. For more information, including course names and descriptions, visit devos. northwood.edu/organizationalleadership-automotive

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Carvana Launches Same-Day Delivery in Central Florida Carvana has introduced sameday delivery to its Central Florida customers, allowing local buyers to receive their vehicles within hours of purchase from Carvana. com. In addition, select customers seeking to sell their vehicles to Carvana can benefit from sameday drop-off at designated locations across the state.

Savannah E., a recent customer, expressed her surprise and delight at this expedited service: “I wasn’t anticipating I’d be able to get my car the same day,” she said. Since its Florida launch in 2016 and the introduction of its unique Car Vending Machines in 2017, Carvana has significantly grown its presence in the Sunshine

State. The company prides itself on a customer-first approach, using technology to enhance transparency and ease in the car buying process. “We’re delighted to tap that same spirit of innovation to once again raise the bar and bring a new layer of convenience to our Central Florida customers,” said Jacqueline Hearns, Carvana’s senior director of market operations and expansion. Carvana’s rapid expansion of sameday delivery, initially launched in Arizona, has reached various states, including Indiana, North Carolina, Georgia, and the Dallas-Fort Worth area in Texas. The company’s extensive infrastructure, which encompasses a network of inspection and reconditioning centers, logistics fleet and a digital purchasing system, has facilitated this growth. Carvana aims to offer same-day delivery in more locations nationwide.

Odometer Fraud Surges 14% Nationally The rising trend of odometer fraud in the U.S. has hit a new peak, with approximately 2.1 million vehicles now affected—a 14% increase since 2021, according to new data from CARFAX. Odometer rollbacks, a fraudulent practice where car mileage is deceitfully reduced, have long been a trick in the used car market. “Odometer fraud didn’t go away with the introduction of digital odometers,” said Patrick Olsen, editor in chief at CARFAX. “The number of vehicles with a rolled-back odometer continues to rise year-over-year.” This deceit not only misrepresents a vehicle’s value but can also lead to unexpected maintenance costs for the buyer. The rise in such fraud coincides with the ongoing high prices in the used car market, making it an attractive scheme

for scammers. According to CARFAX, a rolled-back car can cost an unsuspecting buyer an average of $4,000 in lost value. Furthermore, the ease of rolling back digital odometers today, often taking mere minutes, adds to the prevalence of this issue. The states most impacted by this trend include California, with 469,000 vehicles affected, followed by Texas and New York, showing increases of 12.8% and 9% respectively. Florida, Illinois, Pennsylvania, Georgia, Arizona, Virginia and North Carolina also feature prominently on this list. Virginia was the only state among the top 10 where the numbers remained unchanged. To combat this issue, CARFAX offers a free Odometer Fraud Check and provides tips for consumers to protect themselves at www. carfax.com/press/resources/ odometer.

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WV Woman Sues Collision Center, Driver For Devaluation of Vehicle By Kyla Asbury West Virginia Record

A Charleston, WV, woman sued Todd Judy Collision Center for the diminished value of her vehicle after an accident. Ganesh Bedre Madhur, Patricia Pugh and Todd Judy Collision Center were all named as defendants in the suit. Cynthia Gerau’s child, J.G., was driving Gerau’s car on Bendview Drive in Charleston on Sept. 30, 2022, when Pugh, who was driving a vehicle owned by Madhur, crossed the double yellow line and struck J.G., according to a complaint filed in Kanawha Circuit Court. Gerau claims after the crash, Todd Judy Collision Center prepared an estimate of record of

the plaintiff’s vehicle. The value of the plaintiff’s car diminished and after repair, the damaged vehicle was not returned to the condition it was in before the accident. “Every day adds to the loss of use claim and announce and inconvenience,” the complaint stated. Gerau claimed the crash violated state laws. The defendants’ actions toward the plaintiff were negligent and caused damages as a result of the negligence and carelessness of the defendants, according to the suit. Gerau is seeking compensatory damages. She is represented by Kevin Davis in Charleston. The case is assigned to Circuit Judge Stephanie Abraham.

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Biden Administration Mulls Over EV Tax Credit Reprieve For Automakers By Maria Merano Teslarati

The Biden administration is discussing a temporary reprieve for automakers from stipulations in the Inflation Reduction Act (IRA) regarding materials from foreign adversaries, and how they affect EVs’ eligibility for tax incentives In March, the U.S. Department of Treasury published battery sourcing guidance, which automakers must comply with to reap the tax credits from the IRA. One of the biggest concerns about the eligibility requirements regards battery packs, cells and the materials used to manufacture them. The treasury’s guidance limits the materials automakers can use to produce EVs if they want to qualify for consumer tax credits. Most materials used to produce EVs must be sourced within the U.S. or a country with free trade agreements with the U.S. Automakers have expressed concerns over the guidance, considering the current landscape of the EV industry.

North America and some countries with a free trade agreement are still building their EV battery supply chain. While the IRA has boosted investments in EVs within the U.S., it will still take time for those investments to bear fruit. “We are going to have lots of battery capacity in the United States. It’s just not right this second,” said Scott Sklar, president of The Stella Group Ltd. Demand for EVs has been a big question in the minds of companies investing in the domestic supply chain. Recently, U.S. auto dealers wrote to President Joe Biden saying enthusiasm for EVs has stalled. Battery suppliers already establishing facilities in the country have also shown concerns about demand. A common concern amongst most companies building the supply chain is the affordability of EVs. The treasury’s guidance would effectively slash the amount of new EVs eligible for the IRA’s tax incentives and, therefore, their prices.

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Insurers’ Efforts To Improve Profitability Drive Auto Policy Shopping Macroeconomic trends affecting insurance shopping in the first half of 2023 continued throughout Q3. Auto and property insurance shopping rates were flat compared to Q2 2023 but elevated 12% and 6%, respectively, compared to Q3 2022. The findings are part of TransUnion’s latest quarterly Insurance Personal Lines Trends and Perspectives Report, which includes trends in the auto and property insurance markets, as well as survey data about consumers’ behaviors and attitudes. The search for lower insurance premiums remains a primary driver of auto insurance shopping. The Insurance Information Institute forecasted auto insurance premium growth of 10.4% in 2023—double the 5% premium growth from the previous year. “In addition to raising rates, insurers are employing other measures to improve their profitability, like suspending distribution and toughening underwriting standards,” said Stothard Deal, vice president of strategic planning for TransUnion’s insurance business. “These efforts have likely motivated consumers to

expand their shopping activity with new insurers.” New vehicle sales were also a contributing factor. A healthy labor market and the increase in employers’ return to work policies are likely motivating consumers to purchase new vehicles. According to J.D. Power, the U.S. new automobile market remains resilient, with the outlook for sales in 2023 increasing to 7% over 2022. How Bundling Can Attract and Retain Policyholders Conversely, home sales and refinancing—two important triggers for property insurance shopping— remain depressed. Homeowners locked into low interest rates are reluctant to sell and purchase new properties at current rates. However, property insurance shopping remains elevated over 2022. One factor pushing this trend is the hunt for lower insurance premiums. Another is the increased number of insurers requiring bundling or multiline policies. As consumers shop for auto insurance, they may be forced to consider switching their home insurance as well, even if they

Miami Area Veteran Receives NABC Recycled Ride On Dec. 6, a deserving Miami area veteran was presented with a vehicle to provide her transportation and the ability to take of her family, thanks to the National Auto Body Council (NABC) Recycled Rides program, along with car donor GEICO and repair partner Classic Collision.

The presentation was held at Classic Collision in Culter Bay, FL. The deserving veteran, Karla Diaz, who received a 2017 Kia Optima, was nominated by the Wounded Warrior Project. Diaz is a disabled U.S.

Army veteran who served as a combat medic from 2006 to 2012. She is a widow raising three boys. One of her children is disabled and often has medical appointments. Diaz constantly depends on asking family and friends for rides. The gift of reliable transportation will enable her to care for her family’s needs. NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the program in 2007, members of the NABC have donated more than 3,200 vehicles valued at some $46 million. Additional partners in the presentation included Enterprise, Cars for Charity and Advanced Remarketing Services.

are happy with their current policy. With pressure being placed on retaining policyholders, opportunities exist for insurers to consider valueadded services outside of basic coverage options. For example, home insurance policies have long included identity theft protection.

ways to assist policyholders due to different types of fraud and cyber risks, including social engineering scams, ransomware attacks and cyberbullying events. Going further, the report recommended adopting preventative solutions that complement existing restorative measures. “In addition to raising One such solution is TransUnion’s rates, insurers are TruEmpower™ Scam Blocker, which helps protect individuals, employing other families and small businesses from measures to improve harmful cyber incidents by blocking their profitability, like fraudulent websites, phishing suspending distribution and attempts and other cyber threats on mobile devices and laptops. toughening underwriting Delivered through insurers, Scam standards,” Blocker adds value and can give — STOTHARD DEAL peace of mind to policyholders while VICE PRESIDENT OF STRATEGIC PLANNING FOR assisting to reduce claims costs to TRANSUNION’S INSURANCE BUSINESS insurers. “TransUnion research has found The report noted cyber security consumers look to their insurers threats are evolving and insurers for guidance and protection in the should broaden their offerings. Social aftermath of a cyber-attack,” said engineering scams, in which bad Matt Cullina, head of TransUnion’s actors trick consumers into clicking global cyber insurance business. a malicious link or sharing personal “Providing a robust, preventative information, are now one of the most measure can help policyholders feel prevalent threats. safer online and more secure in their Page (no bleed)policy.” | 4˝ x 5˝ Many insurers Quarter are exploring coverage

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7/31/23 5:41 PM

North Carolina Dealership Licensed To Sell Mullen EVs

Employers Benefit from ASE EntryLevel Certification

Mullen Automotive Inc., an emerging EV manufacturer, announced Randy Marion Automotive Group (RMA) received its North Carolina license to retail Mullen’s commercial EVs. This required dealer license in combination with Mullen’s previously received OEM license allows the movement of vehicles to customers. Beginning Nov. 20, Randy Marion’s initial Class 3 vehicles will be delivered to Adventure Coast Rentals in Nashville, TN, and Atlanta, GA; Godotek in Sterling Heights, MI; and NRTC Automation Group in Birmingham, AL. The Tunica, MS, assembly plant will ship the next 40 completed vehicles, which are pre-sold and ready for RMA customers including Duke Energy, Merchants Fleet and MGT Leasing, beginning Nov. 20. All vehicles sold in the U.S. are currently distributed through RMA, Mullen’s retail dealership partner. “We are receiving tremendous

Businesses looking to hire entrylevel service professionals should inquire if potential candidates have attained ASE Entry Level certification. This credential provides a pathway for students embarking on a career as a service professional by demonstrating they have a significant level of practical and knowledge-based readiness. “ASE Entry Level certification gives employers confidence that they are hiring individuals with the knowledge and the ability to succeed in entry-level roles and the potential to become high-performing employees,” said Mike Coley, president, ASE Education Foundation. “Employing ASE Entry Level certified candidates also communicates a commitment to service excellence to customers and provides repair facilities with a competitive edge in the marketplace.” ASE Entry Level certification tests are available for the automobile, collision repair/

interest in both Mullen’s Class 1 and Class 3 vehicles. With our dealer license in hand, we will begin Class 3 deliveries immediately and begin taking deliveries on Mullen’s Class 1 vehicles in early December,” said Brad Sigmon, vice president of RMA fleet operations. The Class 1 vehicle production line commenced Nov. 1, with the company now running both Class 1 and Class 3 production lines simultaneously at Mullen’s Tunica Commercial Vehicle Assembly Plant. The company will deliver 150 Class 3 and 300 Class 1 vehicles by the end of this year. The Mullen Class 1 EV is the first and only Class 1 EV cargo van for sale in the U.S. today. “It’s exciting to see both Class 1 and Class 3 vehicle production fully operational and our Class 3 heading to customers. We fully expect to accomplish our production and delivery goals for 2023,” said David Michery, CEO and chairman of Mullen Automotive.

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refinish and medium/heavy duty truck segments and are the first step in building career credentials as a service professional. The tests are intended for students in career and technical programs and are a predictable gauge for future success with ASE professional-level certifications. Over 50,000 students have taken the ASE Entry-Level certification test. “Students who have earned an ASE Entry-Level certification are signaling to prospective employers their commitment to a career in the industry,” said Coley. “Many states now require industry credentials for students so employers should be able to find students in their community with ASE Entry-Level certifications. These individuals are also inclined to pursue additional ASE certification tests, broadening their expertise and enhancing their value as employees.” For more information about ASE Entry-Level certifications, visit www.ase.com/entry-level.

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autobodynews.com / AUTOBODY NEWS JANUARY 2024 31

2023 SEMA Show Exceeds Attendees’ Expectations The SEMA Show returned to Las Vegas Oct. 31-Nov. 3, bringing together more than 150,000 automotive aftermarket industry professionals looking to transform four days of relationshipbuilding, networking, sales and marketing into business success and dreams realized. The proof the SEMA Show was poised to return to historic levels was found in the packed Las Vegas Convention Center exhibit halls, teeming with more than 2,200 exhibitors, boundary-pushing builds, innovative new products, thought-provoking educational opportunities and more than 150,000 attendees connecting throughout the aftermarket community. The Show creates connections via dedicated product communities, outdoor activations, education and training, award programs, reveals, unique experiences and celebrations. “The SEMA Show is one of the largest trade shows in the country, but it’s actually comprised of several smaller, distinct communities,” said Tom Gattuso, SEMA VP of events. “The networking that takes place within those groups is where you see the transformative power the Show has to positively impact participants and chart the course of the aftermarket industry.” Perhaps nowhere else is that transformative power felt more strongly than amongst the companies exhibiting at the Show for the first time. More than 20% of the exhibitors were new participants, driving innovation, including Caross USA, manufacturers of portable jump starters and air compressors, based in San Mateo, CA. The start-up has had products on sale for a mere three months and SEMA was its first trade show. Not only did they meet prospective partners from Canada to Australia, but their networking also gained them exposure via social media and led to a relationship with the television show “Two Guys Garage” and a potential on-air appearance in February. They also won two Global Media Awards (GMA), given by judges comprised of members of the international media to products they feel will be well-received in their respective countries. “You don’t see a lot of ‘tire kickers’ at SEMA, the buyers are much more serious,” said Global Sales Director Steve Stambaugh. “I can’t say enough about SEMA. Being at this Show has done more for our company in two days than other industries do in 10 years.” For returning exhibitors, the SEMA Show was an opportunity to

continue building on the year-overyear growth that participation creates. For CIC Powerbox of Pittsburg, KS, a manufacturer of AC-powered truck boxes that first exhibited at the Show in 2018, their participation has led to several partnerships.

the opportunity to showcase the knowledge of our representatives, talk engineering and support our product with assurances that all accessories are fully reviewed for safety, ergonomics and longevity,” said Natalie Simon, marketing and

The 2023 SEMA Show brought together more than 150,000 automotive aftermarket industry professionals to Las Vegas Oct. 31-Nov. 3, transforming four days of relationshipbuilding, networking, sales and marketing into business success and dreams realized.

“Every time we come to SEMA we come away with new business,” said CEO Mike Windsor, listing the Department of Transportation, the U.S. Air Force, Goodyear and several OEMs as just a few of the relationships forged at the SEMA Show. “We’ve also made connections for opportunities we either weren’t aware of or didn’t know how to get into,” he added, including sponsorship of professional drift racer Faruk Kugay and growth of CIC’s social media marketing as examples. “We’ve had exponential growth year over year and if all goes well, this year we’ll go international thanks to the relationships we’ve made at SEMA,” said Windsor. The Show remains a popular place for OEMs to connect with the aftermarket industry. For Toyota, 2023 was a year to push boundaries. “Toyota has always seen SEMA as a place to let our imagination run wild. This past show was no exception, as we tapped into thrills on the track ... and the trail,” said Mike Tripp, group vice president, Toyota Marketing. “The amount of interest in the allnew 2024 Tacoma and Land Cruiser didn’t disappoint. And based on the coverage we’ve received, it’s safe to say that builds like our X-Runner Concept and FJ Bruiser were true stars of the show.” For Ford Performance Parts & Accessories, the Show allows them to forge relationships with attendees and share the benefits of their products. “The SEMA Show gives us

32 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

events manager, Ford Performance Parts & Accessories. For others, Show participation is a step towards achieving the dream of a career in the automotive aftermarket.

Masen Schneider, a freshman studying mechanical engineering at the University of North Dakota, received a SEMA Scholarship, awarded annually to students interested in careers in the automotive industry. “It means a lot to receive a scholarship from an organization like SEMA because as big and impactful as they are, they see your story and experience and want to help propel you towards your dream,” he said. Schneider hopes to one day be an automotive parts designer. The SEMA Show also remains a center of innovation fueled by passion, as evidenced by the Battle of the Builders Presented by Mothers Polish competition. The aftermarket industry’s ultimate vehicle competition, the program celebrated 10 years of providing builders the ultimate platform to showcase their craftsmanship and skills to a worldwide audience. For Andy Leach, winning builder of the 1960 Buick Invicta Custom, the victory was the culmination of nine years of work. “It’s a dream come true,” said Leach. “I’ve been chasing this award for nearly a decade. The Buick was a labor of love.” The SEMA Show returns to Las Vegas Nov. 5-8, 2024. To learn more, visit www.semashow.com.

6K Energy Gets $50M Federal Grant To Build EV Battery Material Factory in Tennessee The U.S. Department of Energy recently awarded $50 million to 6K Energy, to go toward construction of its PlusCAM facility in Jackson, TN, a project exceeding $200 million. 6K Energy is a leader in the production of critical materials for lithium-ion batteries. The facility will employ the company’s UniMelt microwave plasma technology, enabling the production of cathode active material (CAM) for NMC and LFP batteries at considerably lower costs than Chinese suppliers, while boasting superior environmental, social and governance (ESG) metrics. This technology significantly reduces energy consumption and carbon emissions. Sam Trinch, president of 6K Energy, emphasized the strategic importance of CAM in breaking free from dependence on China for critical battery components. The PlusCAM factory, with its expected launch in Q4 2024, aims to be the first of its kind in the U.S., boasting zero hazardous waste, 90% less water usage and

reduced energy requirements. Rob Davies, COO of 6K Energy, said 40% of the facility’s workforce will be hired from disadvantaged, veteran, disabled or diverse communities, in alignment with the goals of the Bipartisan Infrastructure Law and the Justice 40 Initiative. The DOE’s $50 million grant, part of the Bipartisan Infrastructure Law, will facilitate the construction of the PlusCAM facility and support workforce development, ensuring a safe and rewarding working environment. The facility is expected to provide significant employment opportunities, with plans to hire around 230 employees at full capacity. The UniMelt technology, already in full-scale production at 6K Energy’s sister company, 6K Additive, has proven its capability in producing metal powders for additive manufacturing. The PlusCAM plant, spanning 160,000 square feet, is set to achieve an annual capacity of 13kt of various cathode active materials.

Fixing ADAS Systems Makes Up Over a Third of Collision Repair Costs By Brittany Moy AAA

A recent study by AAA found advanced driver assistance systems (ADAS), like automatic emergency braking, blind spot monitoring and lane departure warning, can add up to 37.6% to the total repair cost after a crash. This is due to the high cost of replacing and calibrating the sensors that operate these systems. Even minor damage to systems such as front radar or distance sensors can result in additional repair expenses of up to $1,540. AAA advises consumers to be aware of the repair costs associated with these vehicle systems, and prioritize repairing them when necessary to ensure they work as intended. “Vehicles equipped with more sophisticated safety systems are much more common now, especially since NHTSA proposed its rule requiring automatic emergency braking earlier this year,” said Greg Brannon, AAA’s director of automotive engineering. “Consumers should know about the repair costs associated with these technologies. But they must also understand the

importance of fixing them since improperly functioning systems could result in a deadly crash.” Many variables can affect the cost of repairing ADAS, including vehicle make and model, the type and location of the sensor and the type of facility where the repair work is performed. Consumers may not realize it, but

the sensors that help ADAS “see” the world around the vehicle are located at the front, side and back. AAA looked at four repair scenarios—front-end collision, side mirror replacement, rear collision and windshield replacement— to understand the costs of repairing these sensors. The highest repair cost for ADAS components is attributed to radar sensors and cameras damaged in a front-end collision. However, the replacement of a side mirror

represented the largest proportion of repair costs of the three scenarios. For the three vehicles (model year 2023) evaluated in this report, AAA found: • The average cost of replacing ADAS components in a minor front collision repair was $1,540, or 13.2% of the average total repair. • An average of 70.8% of the repair cost ($1,067) was attributable to the ADAS camera included in the side mirror assembly. • The average cost of replacing ADAS components in a minor rear collision repair was $684, or 40.9% of the average total repair estimate of $1,698. • The cost of windshield glass replacement attributable to ADAS components averaged 25.4% ($360.00) of the total repair cost. • Individual ADAS component costs (part and specific labor/ calibration) over the four repair scenarios range from a low of $290 to a high of $1,596. AAA’s research determined the ranges listed below for typical ADAS repair expenses. Note that these numbers are for costs over and

•

above the normal body work required following a collision. Front radar sensors used with automatic emergency braking and adaptive cruise control systems: $500 to $1,300. Front camera sensors used with automatic emergency braking, adaptive cruise control, lane departure warning and lane keeping assistance (does not include the cost of a replacement windshield): $600 to $800. Mirror mount, side mirror used with around-view systems: $740 to $1,600. Windshield camera sensor used with lane keeping assistance, traffic sign recognition and pedestrian detection: $900 to $1,200. Front or rear ultrasonic sensors used with parking assist systems: $300 to $1,000. A driver is alerted by a warning light or icon on the instrument panel and/or a message display if an ADAS component is failing and causing the system to be inoperable. Once this occurs, it’s crucial for drivers to take their vehicle to a reputable repair facility for repair.

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Toyota Motor Credit Fined $60M For Illegal Lending, Credit Reporting Misconduct The lender directed customers to a dead-end cancellation hotline, withheld refunds and knowingly tarnished credit reports with false data. The Consumer Financial Protection Bureau (CFPB) on Nov. 20 ordered Toyota Motor Credit Corporation to pay $60 million in consumer compensation and penalties for operating an illegal scheme to prevent borrowers from cancelling product bundles that increased their monthly car loan payments. Toyota Motor Credit withheld refunds or refunded incorrect amounts on the bundled products and knowingly tarnished consumers’ credit reports with false information, CFPB said in a statement. The consumer watchdog agency ordered Toyota Motor Credit to stop its unlawful practices, pay $48 million to harmed consumers, and pay a $12 million penalty into the CFPB’s victim relief fund. “Toyota’s lending arm illegally withheld refunds, made borrowers run through obstacle courses to cancel unwanted services, and tarnished their credit reports,” said CFPB Director Rohit Chopra. “Given the growing burdens of auto loan payments on Americans, we will continue to pursue large auto lenders that cheat their customers.” Toyota Motor Credit Corporation is the U.S.-based auto-financing arm of the Toyota Motor Corporation, and is headquartered in Plano, TX. It is one of the largest indirect auto lenders in the country, with nearly 5 million customer accounts and more than $135 billion in assets as of October 2022. Toyota Motor Credit provides financing for consumers buying cars through Toyota dealerships, and also offers optional products and services sold with the vehicles. Dealerships often sell the products and services as a bundled package to consumers and then add them onto car loan contracts. Bundled products include Guaranteed Asset Protection (GAP), which covers the difference—or gap— between the amount a consumer owes on an auto loan and what their insurance pays if the vehicle is stolen, damaged or totaled. Toyota Motor Credit also offers Credit Life and Accidental Health (CLAH) coverage, which covers the remaining balance if a borrower dies or becomes disabled, and vehicle service agreements, which reimburse borrowers for parts and service beyond what is covered by the manufacturer warranty. The cost of the bundled products, financed by Toyota Motor Credit, averaged between $700 and $2,500 per loan. Including these products in

a vehicle sale or lease can significantly increase the loan amount, monthly payment and finance charge. Toyota Motor Credit profits from the sale of these products by collecting more finance charges on the increased loan amount. Thousands of consumers complained to Toyota Motor Credit that dealers had lied about whether

these products were mandatory, included them on contracts without the borrowers’ knowledge, or rushed through paperwork to hide buried terms. Nevertheless, Toyota Motor Credit devised a scheme to retain the revenue from these products by making it extremely cumbersome to cancel, and then failed to provide proper refunds for consumers who succeeded in cancelling. The company also falsely told consumer reporting companies that borrowers had missed payments, and it failed to correct consumer reporting errors it knew were wrong. Toyota Motor Credit’s actions violated a federal law prohibiting unfair and abusive acts and practices, as well as the Fair Credit Reporting Act and its implementing regulation. The order described in detail how the company harmed consumers, including by: • Directing consumers to a deadend cancellation hotline: Toyota Motor Credit prevented many consumers from cancelling product bundles by making the process unreasonably difficult. Consumers who wanted to cancel over the phone were directed to a “retention hotline” operated by employees whose primary objective was to dissuade such cancellations. Between 2016 and 2021 alone, Toyota Motor Credit funneled more than 118,000 consumer calls through this hotline. Representatives on the hotline were instructed to keep promoting the products until a consumer had verbally requested to cancel three times, at which point the representatives would

34 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

tell the consumer that it was only possible to cancel by submitting a written request. • Delaying refunds by applying them to principal payments: Instead of issuing a refund check or lowering the monthly payment amount upon a consumer’s cancellation of bundled products, Toyota Motor Credit applied the refund amount as an additional payment toward principal, reducing the number of monthly payments. Applying the refund in this way effectively delayed the return of the consumer’s money until the end of the sale or lease agreement term. The company used this fact to discourage cancellations, telling consumers on the retention hotline that their monthly payments would not decrease and that they would not receive direct refunds. • Withholding refunds or providing inaccurate refund amounts: Toyota Motor Credit failed to refund prepaid GAP and CLAH premiums to consumers who paid off the loan or ended the lease before the end of the contract. Toyota Motor Credit also relied on faulty calculations which resulted in incorrect refunds for consumers who canceled their vehicle service agreements. • Furnishing false data to consumer reporting companies: Toyota Motor Credit falsely reported customer accounts as delinquent for failure to make monthly account payments even though customers had already returned leased vehicles, and the company did not promptly correct the negative information it had sent

to consumer reporting companies even though it knew it was wrong. Toyota Motor Credit also failed to maintain reasonable policies and procedures to ensure payment information it sent to consumer reporting companies was accurate. Enforcement Action The order requires Toyota Motor Credit: • Pay nearly $48 million in consumer compensation: Toyota Motor Credit will pay nearly $32 million to consumers who did not receive refunds on unearned GAP and CLAH premiums. The company will also pay more than $9.9 million to consumers who tried to cancel their GAP or CLAH coverage but were unable to do so. Toyota Motor Credit will pay more than $6 million to consumers affected by false information sent to a consumer reporting company, and at least $52,000 to consumers who were not given accurate refunds when they canceled their vehicle service agreement. • Stop its illegal practices: Toyota Motor Credit is prohibited from tying employee compensation or performance measurements to consumers’ retention of bundled products, such as GAP coverage or extended warranties. Toyota Motor Credit must also make it easy for consumers to cancel unwanted coverage, monitor auto dealers for the imposition of these products without consumer consent, and inform consumers who have these products of their ability to remove the products online or in writing. • Pay a $12 million fine: Toyota Motor Credit will pay a $12 million civil penalty to the CFPB’s victim relief fund.

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Crash Champions Donates $70K To Susan G. Komen

FTC Implements CARS Rule To Combat Auto Sale Scams The Federal Trade Commission (FTC) recently unveiled the Combating Auto Retail Scams (CARS) Rule, set to take effect July 30, 2024, to significantly reduce deceptive practices in the automotive industry.

FTC Chair Lina M. Khan highlighted the rule’s focus on eliminating “unexpected and unnecessary fees” in car buying, which not only aids consumers but also fosters fairness among dealers. The CARS Rule addresses two primary fraudulent tactics: baitand-switch advertising and the imposition of hidden junk fees. These deceptive strategies have long plagued consumers, leading to inflated costs and frustrating experiences when purchasing

vehicles. The rule protects military personnel and their families, who often become targets for these unscrupulous practices. The burden of auto debt is significantly higher among servicemembers, with young servicemembers being especially vulnerable. The CARS Rule aims to alleviate these pressures by ensuring transparent and honest dealing in car sales. Key provisions of the CARS Rule include: • No Misrepresentations: Dealers are prohibited from misleading consumers about vital information such as price, cost, and financing terms. • Transparency in Pricing: The rule mandates that dealers provide clear information regarding the offering price, total payment and optional nature of add-ons. • Prohibition of Non-Beneficial Add-Ons: Dealers cannot charge for add-ons that do

not provide real benefits to consumers. • Requirement for Consumer Consent: Explicit, informed consent must be obtained for any charges incurred in a vehicle purchase. • The FTC’s process in developing the CARS Rule involved extensive public engagement, including a comment period where feedback from consumers, servicemembers, veterans and auto dealers was considered. This inclusive approach led to a well-rounded rule that not only curbs consumer exploitation but also supports honest dealers by creating a more level playing field. The CARS Rule represents a significant step towards consumer protection in one of the largest purchase areas for American households. The FTC has also issued guidelines for both consumers and dealers to prepare for these changes, ensuring a smooth transition and widespread understanding of the new regulations.

The Crash Champions Collision Repair Team recently presented a gift in the amount of $70,000 to Susan G. Komen on the heels of its Champions for a Cause campaign. The campaign, which took place throughout the month of October in recognition of Breast Cancer Awareness Month, rallied the company’s 10,000plus team members in support of Susan G. Komen’s mission to fight breast cancer. The presentation was made Nov. 15 at Crash Champions’ Westmont, IL, home office. Funds were raised through sales of special edition Crash Champions T-shirts and polos featuring the pink breast cancer awareness ribbon. Proceeds from the sales, supplemented by a matching contribution from Crash Champions, were donated to Susan G. Komen. Crash Champions team members also participated in several Race for the Cure events and MORE THAN PINK Walks throughout the month of October, raising additional funds also matched by Crash Champions.

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Honda, Hyundai, VW Workers File Unfair Labor Practice Charges In the face of aggressive anti-union campaigns, workers organizing with the UAW at Honda in Indiana, Hyundai in Alabama, and Volkswagen in Tennessee have filed charges against management for illegally union-busting as workers organize to join the UAW. “We are filing an unfair labor practice charge against Honda because of management illegally telling us to remove union stickers from our hats, and for basically threatening us with write-ups,” said Honda worker Josh Cupit in a new video released by More Perfect Union. “It’s essentially to show Honda that we know what our rights are and that they’re not gonna bully us and we’re not gonna back down from ’em. And we know that they are in the wrong.” “These companies are breaking the law in an attempt to get autoworkers to sit down and shut up instead of fighting for their fair share,” said UAW President Shawn Fain. “But these workers are showing management that they won’t be intimidated out of their right to speak up and organize for a better life. From Honda to Hyundai to Volkswagen and beyond, we’ve got their back. The auto industry’s record profits should mean record contracts for these workers, too.” Honda workers report being targeted and surveilled by management for pro-union activity at the company’s Indiana Auto Plant in Greensburg, IN. Hundreds of workers at the facility have signed union cards and are organizing to join the UAW. At Volkswagen’s Chattanooga, TN, plant, well over 1,000 workers signed union cards in less than a week, and hundreds more continue to sign up. Management has harassed and threatened workers for talking about the union; confiscated and destroyed pro-union materials

in the break room; attempted to intimidate and illegally silence prounion workers; and has attempted to illegally prohibit workers from distributing union literature and discussing union issues in non-work areas on non-work time. Volkswagen

confiscated, destroyed and prohibited pro-union materials in non-work areas during nonwork times. Hundreds of workers continue to sign up to win their union despite this illegal interference and intimidation.

has made public claims of “official neutrality” in past union efforts while aggressively pushing an anti-union message in forced meetings and internal literature. On Dec. 7, at an early morning shift change, security guards stopped a group of Volkswagen union supporters from distributing flyers to their coworkers at Gate 3. “We’ve done hand billing at that gate before and the company has never done anything like this,” said Dave Gleeson, a production team member in finish and repair. “We were just getting ready to hand out flyers and security came up and told us we couldn’t. I asked if this was his decision, and he said no, this is coming from way over my head. Our campaign caught the company completely flat-footed, and they overreacted. We’re not going to be intimidated. We know our rights and we’re going to keep standing up and keep speaking out.” At Hyundai’s Montgomery, AL, plant, management has unlawfully

Beverly McCall, a team member in engine assembly at the Hyundai plant, was in the parking lot passing out union leaflets on non-work time when a manager told her to stop. “The manager came up and told me you can’t be out here doing that,” said McCall. “I just kept right on doing what I was doing. We have

NABC Announces New Foundation The National Auto Body Council has formed the Changing and Saving Lives Foundation to support its community involvement and fundraising events. The Changing and Saving Lives Foundation, a 501(c)3 organization, was founded to provide support and assistance to families in need, military members, veterans and first responders, through programs such as NABC Recycled Rides, NABC First Responder Emergency Extrication (F.R.E.E.) and NABC Community Impact programs. In 2023, the NABC,

through these programs, presented more than 200 vehicles to families, veterans and military members in need of reliable transportation and provided life-saving education on vehicle rescue techniques to more than 1,500 first responders. As demand for NABC programs grows, so do the needs for resources to manage these important programs. The foundation allows the NABC to pursue grants, gifts and donations, which enables the organization to expand these programs to serve those in need.

36 JANUARY 2024 AUTOBODY NEWS / autobodynews.com

every right to get the word out and they can’t stop us.” Tim Cripple, a team member in engine assembly at Hyundai, was in a break room and had a few union leaflets on the table in front of him. “A group leader came in and called team relations on the phone,” said Cripple. “They said you can’t have them in here and the group leader threw them in the trash. At the same time, they have someone from the company sitting in the cafeteria handing out anti-union T-shirts and flyers. That’s just wrong, and we are not going to be silenced.” The board charges are a defiant response to low-road behavior that is typical of the worst actors in anti-union coercion campaigns. Organizing a union free from management interference or threats is a federally protected right that is indispensable to a democratic, free society. Thousands of non-union autoworkers across the country have launched campaigns to organize more than a dozen automakers across the country, building off the historic success of the UAW’s Stand Up Strike at the Big Three. Learn more at UAW.org/join.

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Dealerships Losing Ground To Independent Auto Repair Shops, Study Finds New Cox Automotive research revealed franchised dealerships in the U.S. are losing service market share to general repair shops, despite remaining the top service provider. The detailed report, “Under the Hood: Opportunities and Challenges in the Service Industry,” showed dealerships, while still leading, have seen their share of service visits drop from 35% in 2021 to 30% in 2023. This trend emerges as the auto care industry in the U.S. market is expected to surpass $400 billion in consumer spending. Post-pandemic, vehicle owners are reportedly driving more and prolonging their existing vehicles’ usage, influenced by high prices and loan rates for new vehicles. Consequently, service centers are witnessing more frequent visits, with the average vehicle owner bringing in their car 2.5 times in 2023, up from 2.3 in 2021. Vanessa Ton, senior manager of market and customer research

at Cox Automotive, emphasized the service business’s crucial role in dealership operations. Despite the challenges outlined in the report, she noted the industry’s growth and increased customer service visits, boosting most providers’ service revenue.

The Cox Automotive service study, conducted in the latter half of 2023, involved surveying 2,493 vehicle owners, including 182 EV owners, who had at least one service in the past year, accounting for more than 5,500 service visits. Additionally, 525 franchised dealers with decisionmaking authority over fixed operations were interviewed.

A shift in consumer preference was observed, with 33% of owners favoring general repair shops over dealers for the first time, up from 32% in 2021. Trust in franchised dealer service has waned, with only 54% citing trust as a reason to return, down from 62% in 2021. Cost concerns, exacerbated by inflation, have impacted service decisions. The study reported a 45% increase in the average price per service visit since 2021. However, dealership service costs, averaging $258 per visit, are largely comparable to non-dealer providers at $249, challenging the perception of dealerships being more expensive. Dealerships are also preparing for a surge in electric vehicle services, with 71% adding technicians with high-voltage training and certifications. Despite this, many dealers feel the need for more trained staff and infrastructure to adequately service EVs.

Driven Brands Launches B2B Digital Marketplace Driven Brands announced the launch of Driven Advantage, a new B2B digital marketplace powered by Mirakl Platform. The new B2B marketplace connects Driven Brands’ 5,000+ automotive corporate locations, shop owners, franchises and affiliates with more than 80,000 handpicked products from thirdparty suppliers. With Driven Advantage’s onestop shop, buyers can easily control spending and streamline ordering, reducing time spent on purchasing. The average automotive service center with ~$1 million in annual revenue can expect to save upwards of $50,000 per year by ordering via the Driven Advantage marketplace. The marketplace offers buyers an enhanced personalization experience, making it easy for buyers to discover the products that meet their specific needs and preferences. Driven Advantage also offers benefits to third-party sellers by driving sales volume through a single site serving thousands of automotive locations.

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Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin 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. ©2024 Autobody News, LLC.

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CIF To Host Annual Charity Gala For Crisis Relief The Collision Industry Foundation (CIF) is set to host its 13th annual charity event, “Cocktails for a Cause,” Jan. 16, 2024, in Palm Springs, CA. The event aligns with the much-anticipated Industry Week, promising an evening of networking, entertainment and philanthropy at the Agua Caliente Casino’s CASCADE Lounge. This year’s event aims to raise substantial funds for emergency relief for collision repair industry professionals facing crises. CIF provides disaster relief assistance to hundreds of industry professionals affected by natural disasters like hurricanes, wildfires and floods. In addition to the live drawing for prizes, attendees can look forward to enjoying great food and beverages, engaging in industry networking, and participating in the CIF Live Auction, a highlight of the event. “Cocktails for a Cause”

is more than just a social gathering; it represents the CIF’s dedication to its mission of supporting industry professionals in their most challenging times. The success of this event is credited to the generous support of industry donors and individuals committed to this cause. The evening stars at 6:30 p.m. PT, on the eve of the CIC meeting. The CIF trustees extend an open invitation to all interested parties, encouraging early registration at cifgala.org. CIF’s ongoing efforts and the annual charity event have become a cornerstone in providing much-needed support and solidarity within the collision repair community. As the foundation prepares for another successful event, the anticipation and commitment from the industry partners continue to grow, underscoring the collective spirit of giving back and supporting each other in times of need.

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Hunter Engineering Announces Integration

Ex-GM Manager Convicted in $5M Bribery Scheme Former General Motors manager Hyoung Nam So, 48, of Irvine, CA, also known as “Brian So,” was found guilty by a jury for his role in a multimilliondollar bribery scheme. So was convicted of conspiracy to commit bribery, a charge stemming from his promise to deliver a $100 million contract to a South Korean company, Wookyung MIT, in exchange for $5 million. During a seven-day trial, evidence revealed in 2015, So, who managed the supply of parts for GM automobiles in North America, received $3.45 million in cash from Wookyung MIT. In a detailed bribery arrangement, So agreed to award the lucrative contract, initially set to be decided through a competitive bidding process, to Wookyung MIT. The South Korean company’s owner facilitated a $1 million cash transfer from South Korea to Los Angeles, later personally delivering the cash to So in Troy, MI.

Dynabrade Names Global Manger-Automotive Refinish Dynabrade, Inc. recently promoted Karen McMullen to the position of global managerautomotive refinish, advancing the company’s position in the industry on a worldwide scale. Since first joining Dynabrade in 2018, McMullen worked with the national accounts team, growing Dynabrade’s market share among the largest distributors, including select automotive wholesalers. Specifically, she worked with reseller corporate contacts in sales, marketing and product management to promote Dynabrade appropriately. Annual double-digit sales growth has been the result, and McMullen now takes that energy to focus on global expansion within automotive refinish. Dynabrade is headquartered in Clarence, NY. Wholly owned subsidiaries have been established in Luxembourg and India, and direct salespeople are in Latin America and Asia/Pacific Rim countries. McMullen will be leading this team to expand the Dynabrade automotive refinish footprint.

So learned Wookyung MIT was not the lowest bidder for the contract. To secure the deal, So provided insider information to Wookyung MIT, enabling it to revise its bid. On Dec. 8, 2015,

the same day So recommended Wookyung MIT for the contract, GM awarded it to the company. However, So withheld the contract’s confirmation from Wookyung MIT until the remaining bribe was paid. This final payment, amounting to $2.45 million in cash, was made at a Detroit restaurant.

In 2017, Homeland Security Investigations (HSI) seized $3.19 million linked to the bribery from a private vault in Los Altos, CA, funds that were eventually returned to South Korean authorities. Meanwhile, the owner of Wookyung MIT faced legal consequences in South Korea related to the bribery scheme. U.S. District Judge Andre Birotte Jr. scheduled So’s sentencing for May 24, 2024. So faces a maximum sentence of five years in federal prison. The case was a result of a collaborative effort by HSI’s Los Angeles El Camino Real Financial Crimes Task Force, with significant support from the Justice Department’s Office of International Affairs. Assistant U.S. Attorneys Jeff Mitchell and David Y. Pi of the Major Frauds Section are leading the prosecution.

Hunter Engineering announced a new integration partnership with leading automotive software provider UpdatePromise, to allow service advisors quick access to Hunter’s Quick Check® Drive and Quick Tread® Edge autonomous inspection results, allowing them to identify alignment and tread depth concerns and bring them to the attention of vehicle owners. With electrification expected to significantly reduce standard repair and maintenance work over the next decade, the integration will place service departments in a better position to capitalize on all their alignment and tire opportunities. The Quick Check autonomous inspection system provides accurate and detailed alignment and tire tread depth results in seconds as the vehicle drives through the service lane. The UpdatePromise Tablet Vehicle Check In, part of the overall customer experience management solution, creates a seamless workflow that allows service teams to complete and review everything they need, all in one single ecosystem.

U.S. House of Representatives Passes Bill To Stop EPA Emissions Mandate The U.S. House of Representatives on Dec. 6 passed the Choice in Automobile Retail Sales (CARS) Act (H.R. 4468) with bipartisan support, 221-197, as five Democrats and each Republican member voted for the bill. If passed into law, the SEMAsupported bill would prohibit the U.S. Environmental Protection Agency (EPA) from finalizing the agency’s proposed federal emissions standards for lightand medium-duty motor vehicles model years 2027 to 2032, which intends for electric vehicles to make up 67% of all new vehicles sales by 2032. The CARS Act also prevents future EPA motor-vehicle emissions regulations that would mandate certain technologies or limit the availability of vehicles based on engine type. The passage of the CARS Act comes just days after American Fuel and Petrochemical Manufacturers (AFPM) released the results of a national survey that found 60% of likely voters oppose the EPA’s proposed EV mandates.

A further breakdown of likely voters found the majority of Republicans (87%) and Independents (61%) oppose the EPA’s de facto internal combustion engine (ICE) ban, while Democrats are split on the matter (41% support, 32% oppose, 27% undecided).

U.S. Rep. Tim Walberg, R-MI, introduced and championed the CARS Act to ensure the EPA’s push to decarbonize transportation remains technology-neutral and does not favor one vehicle technology over another. The specialty automotive aftermarket has a forward-looking vision that embraces new technology to make vehicles cleaner and more efficient, which includes

hydrogen, electric, alternative fuels and continuing to improve the internal combustion engine. If the CARS Act becomes law, it would block the most aggressive tailpipe emissions ever proposed. SEMA President and CEO Mike Spagnola and member companies have been vocal in opposing the EPA’s proposed rule. If the rule is finalized, the EPA estimates 67% of new sedans, crossovers, SUVs and light-truck purchases would be electric by 2032, while EVs would make up 50% of bus and garbage trucks, 35% of short-haul freight tractors and 25% of long-haul freight tractors. U.S. Sens. Mike Crapo, R-ID, and Pete Ricketts, R-NE, introduced a bipartisan companion version of the CARS Act in the Senate, S. 3094. The bill has 33 co-sponsors and awaits consideration in the Senate Environment and Public Works Committee. For more information, visit sema.org/EPAProposed-Greenhouse-Gas-Rules or contact Tiffany Cipoletti at tiffanyc@sema.org.

autobodynews.com / AUTOBODY NEWS JANUARY 2024 39

Wishing You a Happy & Prosperous 2024 from the Team at

AUTOBODY

40 JANUARY 2024 AUTOBODY NEWS / autobodynews.com