February 2022 Southeast Edition by Autobody News

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EV Owner Driving Tesla’s Shortest-Range Car Shares Experience During I-95 Traffic Catastrophe by Simon Alvarez, Teslarati

Dan Kanninen, an electric vehicle driver and former White House liaison at the EPA, recently shared his

Credit: ZETA/Twitter

personal experience during the I-95 traffic catastrophe, which resulted in about 48 miles of the interstate being closed due to ice and snow. Drivers who were caught in the middle of the nightmare traffic scenario had to survive numerous hours in their vehicles in below-freezing temperatures. In the aftermath of the incident, the Washington Post published an opinion piece alleging the incident would have been far worse if every vehicle in the traffic jam were electric. See I-95 Traffic Catastrophe, Page 14

Toby Chess Shares Best Practice Documents for Collision Repairers by Toby Chess

This is the first installment of Toby Chess’s newsletter, in which he will share more than 100 Standard Operating Procedures (SOPs) for auto body shops, tools, trends in repair and anything he thinks could help shops improve. Chess suggests printing out each SOP and putting them in a book. He said Steve Morris had a great idea to print them out for each operation being performed on a repair and have the technician sign and date them, and place them into the customer’s file.

These SOPs will standardize your repairs, increase efficiency and quality, reduce comebacks, improve estimate quality and add to the bottom line. Here are the first five in the series: 1. Best Practices Before Accepting Used Painted Parts 2. Best Practices for Applying Weldon Aluminum Studs 3. Best Practices for Preparing Aluminum for Repair and/or Welding Part 2 See Toby Chess Shares, Page 20

Vol. 12 / Issue 12 / February 2022

Latest ‘Who Pays’ Survey: Total Loss Administrative Fees Increasingly Common Direct repair agreements—and in California, state regulations—prohibit participating auto body shops from charging administrative fees related to processing of total losses. But the percentage of U.S. shops overall saying they are paid such an administrative fee has risen steadily over the past several years, according to the findings of the “Who Pays for What?” survey series. In 2021, a strong majority of shops (72%) said they are paid always, or most of the time, when they bill for this work. By comparison, when the “Who Pays for What?”

surveys began in 2015, just 46% of shops said they were regularly paid a total loss administrative fee when they invoiced for it. Likewise, the percentage of shops that say they have never billed for this fee also has declined steadily since 2015. Today, only 11% of shops say they never charge a fee to process a total loss, but back in 2015, that figure was 30%. “Processing a total loss has become more complex than it used to be,” said Mike Anderson of Collision Advice, who conducts the quarSee ‘Who Pays’ Survey, Page 16

National Survey of Auto Body Shops Finds Revenues Going Up but Concerns Rising as Well by John Yoswick

A national survey of collision repairers in the final two months of 2021 found well over half of shops (58%) expected their full-year sales to outpace 2020, with nearly one in five shops predicting they would end 2021 with a year over year increase of 20% or more. However, the survey, conducted by CRASH Network, found about a quarter of shops (23%) predicted 2021 sales will fall short of their 2020 numbers, with nearly one in 10 saying they expect to be down 20% or more compared to last year. “Parts availability and increase in total losses has pushed business down,” said one East Coast shop owner. “We have plenty of work to increase our numbers, but not enough employees to get it completed,” said a shop owner in Oklahoma. “We are running a 10-week backlog with over 70 cars in-process.” “Business is picking up, but now sales are limited by parts and

lack of technician staff,” a Southern California shop owner concurred. “I need two body techs and another prepper in the paint shop.” The survey found the upward trend in business optimism over the past year came to a halt in the fall. The majority (61%) said they are “not very” or “not at all concerned” about their business still operating a year from now, and that was up from 43% a year earlier, but down slightly from 64% in mid-2021. Three in 10 of the shops acknowledged being “somewhat” concerned, up from 24% in two surveys earlier in 2021. About 10% described themselves as “very” or “extremely” concerned about their business viability, down from 26% a year ago, but unchanged from last spring. “Inflation is going to take a huge bite out of profits,” a Massachusetts shop owner predicted, saying he was “somewhat” concerned about the shop’s future. Still, most shops expect to make it through 2022. See National Survey, Page 22

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REGIONAL

Auto Insurers Embrace AI at Scale in 2021 �� 4

CarLove Franchise Opens in Atlanta �� 6

BMW’s New Car Changes Color ‘With the

Classic Collision Acquires Another FL Shop �� 6 Crash Champions Continues Aggressive

Touch of a Button’ �� 44 Boyd Group Completes CEO Plan �� 45

Expansion in Florida with 5 More

Caliber Named to Best In Business List �� 8

Acquisitions �� 10

Collision Engineering Program Gets Grant �� 44

Fort Bragg Receives More Than 130 Toys for Children of Active Duty Families �� 10

Collision Repair Industry Thought Leaders Share Innovative Ideas During IDEAS

Georgia Auto Repair Shop Owner Sued for

Collide Showcase: Part 2 �� 40

Paying Former Employee’s Final Wages

DCR Systems Sponsors Matrix Trade Institute � 10

in Oily Pennies �� 13

Energy Commodity Prices Increased by 59%

Maaco Technician Sharing His Body of Knowledge with Apprentice �� 8 Mississippi Auto Service Shops Forced to Pay $90K in Back Wages to 33 Employees �� 6 NABC Recycled Rides® Program, Crash Champions, GEICO, Enterprise Donate Refurbished Vehicles to Florida Residents �� 8 Rivian Will Build Its Next EV Manufacturing Plant in Georgia �� 12

in 2021, EIA Reports �� 46 EV Owner Driving Tesla’s Shortest-Range Car Shares Experience During I-95 Traffic Catastrophe �� 1 G&C Auto Body Donates 7 Cars to Continue Gene Crozat’s Legacy of Giving �� 36

INDEX OF ADVERTISERS

AUTOBODY

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

Serving Florida, Georgia, Alabama, Mississippi, Virginia, West Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2022 Adamantine Media LLC.

Audi Gwinnett �� 18

Hyundai Wholesale Parts Dealers �� 45

Audi Wholesale Parts Dealers �� 40

Industrial Finishes and Systems �� 48

AutoNation Ford-Lincoln �� 16

Jim Cogdill Chrysler-Dodge-Jeep-Ram �� 12

Axalta Coating Systems �� 9

John Heister Automotive �� 34

Beaman CDJR Wholesale Parts �� 21

Kia Motors Wholesale Parts Dealers �� 41

Benchmark Automotive �� 10

LKQ Corporation �� 19

Car-O-Liner �� 2

Mazda Wholesale Parts Dealers �� 44

CARSTAR �� 7

Mercedes-Benz of Cutler Bay �� 35

Certified Automotive Parts Association �� 14

Mercedes-Benz Wholesale Parts Dealers �� 45

City Kia of Greater Orlando �� 37

Miami Lakes Automall �� 13

Classifieds �� 46

MINI of Charleston �� 22

Dale Earnhardt Jr. Chevrolet �� 28

MOPAR Wholesale Parts Dealers �� 29

Equalizer Auto Glass Tools �� 6

NOROO Paint & Coatings �� 15

Ford Wholesale Parts Dealers �� 44

Parks Chevrolet �� 20

GM Wholesale Parts Dealers �� 39

Rick Hendrick Chevrolet Naples �� 37

Gus Machado Ford �� 30

Riverside Ford-Lincoln �� 26

Harper Volkswagen �� 31

Symach �� 8

Hendrick Automotive Group �� 33

Spanesi Americas �� 17

Hendrick Honda Pompano Beach �� 34

Subaru Wholesale Parts Dealers �� 43

Hendrick Kia Cary �� 27

Tameron Hyundai �� 35

Hendrick Kia Concord �� 27

Valspar Refinish �� 5

Hendrick Volvo Cars of Charleston �� 37

Volkswagen Wholesale Parts Dealers �� 42

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

Wrenchers �� 11

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

GM Begins Deliveries of GMC HUMMER and BrightDrop EVs �� 43 Latest ‘Who Pays’ Survey: Total Loss Administrative Fees Increasingly Common �� 1

COLUMNISTS Anderson - Can You Meet Collision Repair Shop Customers’ Changing Expectations of Service? �� 28

National Survey of Auto Body Shops Finds Revenues Going Up but Concerns Rising as Well �� 1 Rivian Ends 2021 with 1,015 Vehicles Produced,

Yoswick - Do Automakers, Insurers See

COO Retires from Company �� 39

Auto Body Shops Meeting Both DRP

Root Insurance Partners with Tractable �� 13

and OEM Certification Requirements? �� 38

Schools Funded by Farmers Insurance, CREF �� 14

Yoswick - Fully Automated AI Collision Repair Estimating ‘Not There Yet’ �� 30

SEMA Group Announces Rebrand �� 37 SEMA Launches Online Library �� 12 SEMA President and CEO to Retire �� 28

NATIONAL ‘Cheap’ Volkswagen ID.4 Coming ‘in the $35,000 Range’ �� 39 2 More Automakers Cross Finish Line in Race to Fulfill Automatic Braking Pledge �� 4 3 Winners of Equalizer ‘Tools for Techs’ Campaign Receive Glass Removal Kits �� 14 Advantage Parts Solutions Appoints Executive �� 42 Albert Kemperle, Inc. Joins Wesco Group �� 22 ASE Celebrates 50th Anniversary �� 44 Author/Teacher Trains and Mentors the Insurance Adjusters of the Future �� 26 Auto Body Shop Owner Steps into World of Consulting �� 32

Sony Getting Serious About EVs, Debuts SUV Concept at CES �� 35 Tesla to Recall 356K Model 3 Cars with Malfunctioning Rearview Cameras �� 42 Toby Chess Shares Best Practice Documents for Collision Repairers �� 1 Top Electric Car Predictions for 2022 �� 18 Toyota Plans to Develop In-House Automotive Software Platform by 2025 �� 37 U.S. Lawmakers Propose Bill Making Staged Collisions Federal Crime �� 16 Used Car Price Bubble Predicted to Pop Soon �� 22 Used Electric Car Prices Soared in 2021 �� 38 Volkswagen will Launch EV Bus on ID. Platform March 9 �� 45

autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 3

2 More Automakers Cross Finish Line in Race to Fulfill Automatic Braking Pledge Twelve automakers are ahead of schedule in meeting a voluntary pledge to equip nearly all the light vehicles they produce for the U.S. market with automatic emergency braking (AEB). Ford/Lincoln and Honda/Acura installed AEB on more than 95% of the vehicles they produced between Sept. 1, 2020, and Aug. 31, 2021, joining 10 other automakers that fulfilled the voluntary commitment in previous years. The others to cross the finish line early are Audi, BMW, Hyundai/Genesis, Mazda, Mercedes-Benz, Subaru, Tesla, Toyota/Lexus, Volkswagen and Volvo. Two additional automakers exceeded the 90% threshold. However, five of the 20 participating automakers equipped fewer than three-quarters of their vehicles with AEB. The 20 manufacturers submit progress reports annually until they meet the target as part of the commitment brokered by the Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration (NHTSA). They pledged to equip at least 95% of their light-duty cars and trucks with the crash avoidance technology by the production year beginning Sept. 1, 2022. Light-duty vehicles are those with a gross vehicle weight rating of 8,500 pounds or less.

“The final sprint these lagging automakers are making shows that a rapid rollout of advanced safety features is possible,” said IIHS President David Harkey. “With the Ford and Honda brands hitting the target, this essential safety feature is now on a huge number of affordable, top-selling vehicles.” Though they fell short of the target, Mitsubishi and Nissan/Infiniti installed AEB on nine out of 10 vehicles they produced last year. Kia just missed that mark, equipping 89% of its vehicles with the technology. Maserati also made big strides, boosting its percentage of AEB-equipped vehicles to 72% from 48% a year earlier. The voluntary commitment doesn’t specify phase-in milestones. However, General Motors, Jaguar Land Rover, Porsche and Stellantis—the company created by the recent merger of Fiat Chrysler and Peugeot—will need big gains to meet the 2022-23 target for light-duty vehicles. In the past year, they equipped fewer than two-thirds of the units they produced with AEB systems that meet the performance requirements of the voluntary commitment. Along with Mitsubishi, two of those companies, Jaguar Land Rover and Stellantis, are among the three that made the most progress in 2021. Mitsubishi raised the portion

of its vehicles equipped with AEB to 92% from just 39% last year. Jaguar Land Rover boosted its tally to 60% from zero. Stellantis raised its total to 43% from 14% in 2020. “It is good news for consumers that city-speed AEB now comes standard across most models, but Stellantis, GM and the other lagging companies really need to pick up the pace,” said David Friedman, vice president of advocacy for Consumer Reports. “The next step should be for NHTSA to set standards that ensure all automakers’ AEB systems work effectively at highway speeds and stop for pedestrians, cyclists and other vulnerable road users both during the day and at night.” Separate from the manufacturers’ commitment, Consumer Reports also tracks the proportion of models on which AEB is standard equipment across all trim levels, as opposed to their overall production volume. Its latest information shows several automakers are making cityspeed AEB standard equipment on 100% of their models, guaranteeing the technology will be included on all new vehicles. To fulfill their present commitment, manufacturers must attest the AEB system on their vehicles meets certain performance standards. The forward collision warning feature must meet a subset of NHTSA’s current 5-Star Safety Ratings pro-

gram requirements on the timing of driver alerts. The AEB must earn at least an advanced rating in the IIHS vehicle-to-vehicle front crash prevention evaluation. To earn that rating, the system must slow the vehicle by at least 10 mph in either the 12 or 25 mph test or 5 mph in both of the tests. Many manufacturers’ standard systems earn a superior rating in the IIHS test. A significant portion of new vehicles can also detect and avoid pedestrians—a requirement for the IIHS TOP SAFETY PICK and TOP SAFETY PICK+ awards. Along with light-duty vehicles, automakers also committed to installing AEB on vehicles with a gross vehicle weight rating of 8,501 t0 10,000 pounds by September 2025. Six automakers reported producing vehicles in that range for the U.S. market in 2021. Among them, Ford equipped three-quarters of its vehicles with AEB, Stellantis 13% and Nissan/Infiniti 12%. IIHS expects the voluntary commitment to prevent 42,000 crashes and 20,000 injuries by 2025. The estimate is based on IIHS research that found front crash prevention systems with both forward collision warning and automatic emergency braking cut rear-end crashes by half. Source: IIHS

Auto Insurers Embrace AI at Scale in 2021 CCC Intelligent Solutions, the SaaS platform powering the P&C insurance economy, on Jan. 7 provided an update to its 2020 insurer AI adoption report, which shows significant growth in AI adoption in auto claims across key metrics. The company reports a 50% year-over-year increase in the application of advanced AI for claims processing. The company also reports more than 9 million unique claims have been processed using a CCC deep learning AI solution, growing more than 80% in 2021, and the number of claims using four or more of its AI applications grew 6X year-overyear. 4

CCC also announced insurer adoption of its industry-first AI-powered touchless estimating solution, CCC® Estimate–STP, has doubled to eight national insurers since launching the solution in October. Today, more than 95 U.S. auto insurers are actively using CCC’s AI-powered capabilities. “The data paints a clear picture of an industry embracing innovation and insurers activating AI at scale,” said Shivani Govil, chief product officer, CCC. “As our industry becomes increasingly complex and consumer demand for personalized experiences grows, AI has become essential. Discrete applications of AI are

FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

giving way to broader use cases and more intelligent automation. The sharp increases in the use of multiple AI applications and the rapid adoption towards fully touchless estimating are evidence of the industry’s digital transformation, which CCC is proud to lead, supporting our customer’s ability to redefine the insurance experience.” The sharp growth in AI-powered claims is driven by an increase in the number of insurers using AI solutions and the expansion of applications for AI across their business, including estimating, audit, total loss handling, casualty and fraud detection. The number of insurers using at least one of CCC’s

AI-powered solutions grew nearly 30% year-over-year. A leader in AI-informed solutions, CCC’s application of AI expands beyond claims decision making. CCC’s solutions leverage AI to improve customer interactions, streamline operations and digitize assessments. Whether applying language recognition to better engage consumers, computer vision to assess medical bills, or deep learning to accelerate decisions across the claims lifecycle, CCC continues to apply AI to improve policyholder interactions and operations across the network. Source: CCC Intelligent Solutions

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Classic Collision Acquires Another FL Shop Classic Collision, LLC, a leading national multi-site collision repair operator based in Atlanta, announced a new closing Dec. 10—the acquisition of Therber Collision Center in Cocoa, FL. Therber Collision has served the Cocoa community well since 2006. Mike Therber and his team have specialized in providing a wide range of auto body products and services. “Fran and I are excited in this new chapter and would like to thank our team for all of their hard work over these past 15 years,” said Therber, former owner of Therber Collision Center. “This addition in our Florida market will help us better serve our customers in the Cocoa area. We appreciate the Therber team for trusting us with this business and sending it to new heights,” said Toan Nguyen, CEO of Classic Collision. Source: Classic Collision

Total Car Franchising Corporation, the franchisor of Colors on Parade and CarLove mobile automotive paint and dent repair, is pleased to announce the opening of its newest franchise unit in Atlanta, GA.

Servicing the Metro Atlanta area, the new franchise is owned and operated by Jason Bieker. Bieker is a recent graduate of Lanier Technical College, a unit of the Technical College System in Georgia. Prior to attending tech school and making the decision to operate his own CarLove franchise, Bieker served in the

U.S. Navy as a sonar technician. For the past few months, Bieker has been working with Rob Ocello, area developer of CarLove Atlanta, to hone his painting skills and learn the ins and outs of running a CarLove franchise. In December, Bieker attended the Total Car Franchising Corporation threeday paint repair training certification class in Conway, SC. Working alongside Ocello, Beiker is back home in Atlanta bringing ecoSMART automotive repair services to his community at an affordable price. In addition, the new franchise will provide car dealerships with the highest quality reconditioning services for their inventory with a quick turnaround time. “As we continue to grow Colors on Parade and CarLove with more locations across the country, it is a goal to make convenient, affordable mobile paint

and dent repair services accessible for our customers,” said Jeff Cox, president of Total Car Franchising Corporation. “A key component to doing so is our group of passionate franchisees who provide a high-level of expertise and professionalism to our customers. We’re excited to welcome Jason to the CarLove family!” With more than 30 years of experience and more than 250 operating franchises across the U.S., Colors on Parade and CarLove is consistently ranked by Entrepreneur magazine as one of the nation’s top automotive franchise systems. The company’s extensive training and certification process allows new franchisees to provide customer services safely onsite while using an exclusive process. Franchise opportunities remain available throughout the U.S. More information can be found at franchising.colorsonparade.com. Source: Total Car Franchising Corporation

Mississippi Auto Service Shops Forced to Pay $90K in Back Wages to 33 Employees The operator of two Mississippi auto service and repair shops has come into compliance after a U.S. Department of Labor Wage and Hour Division investigation recovered $90,068 in back wages for 33 workers and determined the employer failed to pay them overtime as the law requires. Investigators found Paul’s Discount Glass Inc. in Petal, MS, and Paul’s Discount Glass & Tire Inc. in Laurel, MS, paid auto glass installers and auto mechanics a fixed weekly salary for working 45 hours per week. The employer violated the Fair Labor Standards Act’s overtime provision by not including additional overtime pay for hours worked over 40 in a workweek. In addition, the agency also cited Paul’s Discount for failing to maintain accurate pay records. “Overtime and other wage violations are all too common among the auto care industry. Employers who fail to comply with the law and pay fair wages wind up hurting the people they depend on

CarLove Franchise Opens in Atlanta

most, their employees,” said Wage and Hour Division District Director Audrey Hall in Jackson, MS. “The Wage and Hour Division will continue to hold all employers accountable when they fail to uphold their obligations to their workers. We are also available to assist any employer who has questions or needs assistance meeting their obligations to their employees.” The Wage and Hour Division offers additional information, including free resources. The division’s Northeast and Southeast regions will host a webinar at 1 p.m. Jan. 13 ET to educate the auto care industry of essential protections for workers. Register for the webinar here. Learn more about the Fair Labor Standards Act and other laws enforced by the division or contact its toll-free helpline at 866-4USWAGE (487-9243). Use the division’s free search tool if you think you may be owed back wages collected by the division. Source: U.S. Dept. of Labor

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Caliber Named to Best In Business List Caliber, whose automotive service brands include Caliber Collision, Caliber Auto Care and Caliber Auto Glass, has been named to the Inc. 2021 Best in Business list. Inc. Best in Business Awards honor companies that have gone above and beyond to make a positive impact. By leading with its purpose of Restoring the Rhythm of Your Life, Caliber was awarded a gold medal in the Extra Large Company Size (500+ employees) category and is the only auto services provider to be recognized. Committed to its company mission to be the most trusted automotive service provider in every community it serves, Caliber led through the challenges of 2020 and 2021 by providing a safe workplace for teammates, continuing to serve customer needs and supporting each community it serves all of which continued to elevate the automotive repair and maintenance service experience. Source: Caliber

Maaco Technician Sharing His Body of Knowledge with Apprentice In Richmond, VA, a group of dedicated employees gather each morning at 7:30 for a meeting run by Maaco owner Hanson Butler to review and plan the work for the day. What is unique about this meeting is the 17-year-old in attendance—Alshun Smith, a first-year apprentice to veteran body technician Kenrick Cox. Cox was born in Trinidad and Tobago and moved to the U.S. 25 years ago. Cox has more than 40 years of experience in the collision repair industry and is considered a master body technician, having learned the trade from his father from the age of 11. Cox is now sharing his knowledge with Smith, who began working at Maaco after graduating from high school this year. Cox is teaching him the skills needed to make complete and proper body repairs, as well as many life skills. “I’m a strict teacher, and I’m imparting to him that it takes time, patience and attention to detail to do the job right,” said Cox. “Alshun is a fine young man and a quick learner. I’m very impressed with his prog-

ress so far.” “What I like about the collision repair industry is that the work is never-ending, as there will always be cars to repair,” said Smith. “I grew up loving cars since a young age. I’m currently working on my 2005 Acura TL, adding a body kit, rims and other additions. Of course, I will have it painted at Maaco.

Kenrick Cox, left, a body technician at Maaco Richmond, is teaching Alshun Smith, right, everything he knows

“I feel like there is a great deal that I can learn from Mr. Cox,” Smith continued. “He is an excellent teacher and I know that I am learning from one of the best. These skills will help me someday start my own business in automotive sales. I plan to buy cars from auctions, repair them

on my own and resell them. My goal is to have my own car dealership in the future.” At a time when finding new talent is very challenging, Butler’s Maaco facility has found a formula for success he aims to repeat. “These are two very special individuals,” said Butler. “Kendrick has learned everything from A to Z about repairing cars, both here and in Trinidad and Tobago. He had a strong desire to pass that knowledge on to someone new coming into the industry. Alshun is ambitious and more than willing to learn from a master craftsman. It has developed into a great relationship that benefits us all.” Maaco, America’s body shop and the leader in the $38 billion automotive paint and collision industry, provides opportunities not only for young aspiring technicians but for entrepreneurs who want to benefit from investing in a successful franchise model. Visit Maaco. com to learn more about the benefits of becoming a franchise owner in the Maaco family. Source: Maaco

NABC Recycled Rides® Program, Crash Champions, GEICO, Enterprise Donate Refurbished Vehicles to Florida Residents In an event Dec. 15 deemed the Holiday Rideaway, a deserving Broward County man experienced a life-changing moment when he was gifted a refurbished 2017 Ford Fusion as part of the National Auto Body Council (NABC) Recycled Rides® program. The event was co-sponsored by Crash Champions collision repair, GEICO and Enterprise RentA-Car. The presentation occurred at the Crash Champions’ Davie, FL, location and followed an earlier donation Nov. 30, in which a deserving father received a refurbished 2018 Honda Civic. The recipients, both veterans of the U.S. Marine Corps, were selected by Operation Sacred Trust. 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 NABC Recycled Rides program in 2007, 8

members of the NABC have donated more than 2,750 vehicles valued at more than $38 million. “I could not be more excited to receive this generous gift,” said recipient Richard Tilghman. “Having a safe and reliable vehicle is truly a blessing, and I cannot begin to tell you the difference this will make in my life. I am forever grateful to the sponsors involved in this wonderful program.” “Participating in the NABC Recycled Rides program is always a pleasure,” said Matt Ebert, CEO and founder of Crash Champions. “The charitable organizations involved, like Operation Sacred Trust, find deserving individuals and families for whom a vehicle will make a life-changing difference. We applaud all the wonderful sponsors who joined us in supporting this tremendous effort, and we wish nothing but the best for the outstanding recipients.” Source: Crash Champions

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Crash Champions Continues Aggressive Expansion in Florida with 5 More Acquisitions Crash Champions, LLC one of the nation’s fastest growing independent collision repair companies, announced Dec. 15 the closing of five acquisitions across Florida, adding 12 new locations to the company’s growing footprint in the state. With these acquisitions, Crash now operates 27 Florida shops. The company first entered Florida’s key growth market earlier this year and continues to execute on its mission to be a premier collision repair brand in the Sunshine State. The company’s new acquisitions include: • Basset Group, with two locations in Clearwater and one each in Sunrise, Tampa, St. Petersburg and West Palm Beach • Lee’s Car Care in Fort Lauderdale • Dattilo’s Collision Center in Pinellas Park • Collision Giant in Clearwater, New Port Richey and Wesley Chapel • Custom Color in Port St. Lucie

“These new shops and their operators fit perfectly into our growth strategy in the state, as well as our overall corporate culture and operational ethos,” said Matt Ebert, Crash Champions’ founder and CEO. “Florida represents a massive opportunity for the company. Its population is

one of the largest in the country and its residents are heavily reliant on automotive transportation, even in its busiest cities. As is the case with every market in which we operate, our approach to expansion in Florida has centered around identifying the right partners in the right locations. “These new acquisitions are reflective of everything we look for in prospective partners, with

each organization sharing our deep-rooted commitment to delivering high-quality repairs and first-class service,” Ebert continued. “Further, these locations strategically extend the Crash Champions name and brand into key territories within Florida, providing us an even stronger foothold within the state. We could not be more excited to welcome these five exceptional companies— and their outstanding team members—into the Crash family.” Next to California, Florida is now the largest market for Crash Champions in the country. For more information about Crash Champions, visit crashchampions.com. For those collision repair companies interested in selling their business, Crash has made it easy. Visit crashchampions.com/ sell-your-shop to learn more.

DCR Systems announced Jan. 11 the company is the first corporate sponsor of the Matrix Trade Institute’s Collision Program as a Foundation Level Partner. The institute offers upskill industry efficiency training boot camps for employers that aim to help technicians reach the next level by improving their skills and learning efficiency techniques to help them become more productive and grow. The boot camps are paid for by employers. DCR Systems, also based in Ohio, develops on-site accident repair facilities for auto dealers seeking to outsource this function as an additional fixed operation. CEO Dustin Peugeot said the goal at Matrix is to align with forward-thinking operations like DCR Systems that have the vision to see a better way forward and the courage and commitment to deliver for their employees.

Source: Crash Champions

Source: DCR Systems

Fort Bragg Receives More Than 130 Toys for Children of Active Duty Families Maaco, North America’s body shop and the leader in the $38 billion automotive paint and collision industry, helped make Christmas brighter for children on the Fort Bragg, NC, military base. Corporate team members of Maaco teamed up to raise more than $3,000 for the cause and used the funds to purchase over 130 toys for children of active-duty families.

“We have several franchisees and employees within our Maaco family who have served in the military, so causes like this are incredibly important to our team,” said Chris Dawson, president, Maaco. “I am deeply proud of our Maaco

family for taking the time to donate, wrap and deliver these gifts and our hope is that it makes the holiday extra special for the children of Fort Bragg.” The donation to Fort Bragg was made possible through the support of Operation Homefront. Operation Homefront’s mission is to build strong, stable and secure military so they can thrive in the communities they have worked so hard to protect. “We at Operation Homefront are incredibly grateful for the generosity of the entire Maaco team this holiday season and the way they have stepped up to help us serve the military families at Fort Bragg,” said Vivian Dietrich, senior director, Operation Homefront. “Many of these families are facing unexpected challenges in a typically stressful time of year. This support from Maaco helps to ease that holiday stress and financial burden.” Visit Maaco.com for more information on Maaco. Source: Maaco

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SEMA Launches Online Library SEMA launched a new online education library to provide the automotive aftermarket with easy and affordable year-round access to experts and leaders. From technical details about advanced driver-assistance systems (ADAS) and legislative and advocacy updates, to best practices and tips on common business skills and behind-the-scenes conversations with industry leaders, celebrities and icons, the new SEMA Virtual Education website at www.sema.org/education includes a comprehensive collection of educational webinars and resources targeted to the automotive aftermarket. Employees of SEMA member companies will have the distinct advantage of being able to access most education at no cost or at a discount, but all sessions are available to anyone in the industry—regardless of SEMA membership status. Visit www.sema.org/education. Source: SEMA

Rivian Will Build Its Next EV Manufacturing Plant in Georgia by Joey Klender, Teslarati

Rivian Automotive has chosen Georgia as the location for its next U.S. production plant, it confirmed in its Q3 2021 Earnings Call Shareholder Deck on Dec. 16. “Building our recently announced second domestic manufacturing facility near Atlanta, GA (500,000 targeted annual production capacity with eventual co-located cell production),” Rivian listed in its list of achievements. Production is slated to begin in 2024. Rivian has just started production and deliveries of its R1T pickup, the company’s first vehicle and the first all-electric pickup to hit the U.S. automotive market. These initial units were produced at the company’s main manufacturing facility in Normal, IL, where the company is based. However, based on demand for the growing EV sector and initial interest in Rivian’s prod-

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ucts, the company has already decided to move forward with its next facility. Speculation regarding where Rivian would choose for its second facility, which has been named “Project Terra,” has been slim. However, Fort Worth, TX, and an unconfirmed location in Georgia, likely to be east of Atlanta, were mentioned with the most enthusiasm. Fort Worth seemed to be Rivian’s first choice, especially as a Fort Worth City Council work study proposed the introduction of the electric automaker’s second plant would contribute 7,500 new jobs to the area by the end of 2027. It would also have provided average wages of $56,000 and would have required a $5 billion investment from the city, which would have been paid back in just over eight years. Fort Worth officials never responded to Teslarati’s request for comment, but Rivian did tell us the company “is in discussions with multiple locations as part of a competitive process for siting a second

manufacturing facility. This may include Rivian being involved in certain public-facing processes at potential locations. Involvement in these processes does not indicate a final decision.” In November, the Atlanta Journal-Constitution reported Rivian was already in late-stage discussions to open a plant along Interstate 20, east of Atlanta. The plant was rumored to land in Morgan, Newton or Walton counties, although there was no commitment to the area by Rivian. Rivian was heavily recruited by the State of Georgia, according to reports, as state-level officials were interested in bringing a largescale EV manufacturing project to the area, which will undoubtedly supply thousands of manufacturing jobs. Georgia is already the home of the Kia Motors Manufacturing Georgia facility, which produces 360,000 cars per year and has 2.2 million square feet of manufacturing space.

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Georgia Auto Repair Shop Owner Sued for Paying Former Employee’s Final Wages in Oily Pennies The U.S. Dept. of Labor has filed a complaint in the U.S. District Court for the Northern District of Georgia against a Peachtree City, GA, auto repair shop and its owner seeking $36,971 in back wages and liquidated damages, after investigators found they violated the retaliation, overtime and recordkeeping prohibitions of the Fair Labor Standards Act. The department’s Wage and Hour Division determined Miles Walker, owner of 811 Autoworks LLC—operating as A OK Walker Autoworks—retaliated against one employee who contacted the agency after he resigned and the employer failed to pay his final wages. The department’s complaint alleges Walker paid the former employee’s final wages of $915 by delivering about 91,500 oil-covered pennies and a pay stub marked with an expletive to the worker’s home—blocking and staining his driveway and requiring nearly seven hours for him to remove—as well as publishing

defamatory statements about the former employee on the company’s website. The division also determined Walker violated the FLSA’s overtime provisions by paying other employees straight time for all hours worked, failing to pay legally required overtime rate when they worked more than 40 hours in a workweek. In addition, the defendant also failed to keep adequate and accurate records of employees’ pay rates and work hours. The department seeks to enjoin the defendant permanently from future FLSA retaliation, overtime and recordkeeping violations. “By law, worker engagement with the U.S. Department of Labor is protected activity. Workers are entitled to receive information about their rights in the workplace and obtain the wages they earned without fear of harassment or intimidation,” said Wage and Hour Division District Director Steven Salazar in Atlanta. “Workers and

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employers should feel free to contact the Wage and Hour Division. In fact, all employers should review their employment practices and contact the division to discuss questions they have regarding their responsibilities under the law.” The division offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as toolkits and online videos. Learn more about the FLSA and independent contractors on the agency website or contact the Wage and Hour Division toll-free at 866-4US-WAGE (487-9243) for more information. Employers and employees can call their local WHD office and speak to someone confidentially in more than 200 languages. Source: U.S. Dept. of Labor

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Root Insurance Partners with Tractable Root Insurance, a leading U.S. insurtech, will use artificial intelligence (AI) to streamline and accelerate its claims operations using Tractable’s suite of AI solutions. Root will launch the partnership with the AI Subro solution from Tractable to enable Root to assess and respond to subrogation demands more accurately and efficiently. After testing market solutions head-to-head, Root chose Tractable, which specializes in AI for accident and disaster recovery, as its strategic partner to fulfill its ambitious AI strategy across its claims operations. By integrating Tractable’s AI, Root will accelerate its end-to-end claims process, beginning with subrogation. The collaboration joins together two of the most innovative players in the insurance industry. Source: Root Insurance

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Schools Funded by Farmers Insurance, CREF Continuing its collaboration with the Collision Repair Education Foundation (CREF), Farmers Insurance® sponsored five $3,000 Benchmark Grants in support of collision repair education programs at secondary and post-secondary schools. Instructors use donated funds to enhance their educational offerings and help ensure the students graduating from their programs are prepared to enter a career in the collision repair industry. Farmers Insurance awarded five $3,000 grants to Livermore High School, Livermore, CA; Dos Palos High School, Dos Palos, CA; Kingwood Park High School, Kingwood, TX; JB Hensler College and Career Academy aka Alvin ISD, Manvel, TX; and South Plains College, Levelland, TX. Recipient schools use funds to provide the tools, equipment and supplies necessary to enhance their students’ learning experience and elevate the caliber of their graduates. Source: CREF

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I-95 Traffic Catastrophe Citing a post shared on Twitter about a concerned Tesla driver who knocked on a truck driver’s door in the middle of the night—a follow-up post from the driver on Twitter confirmed the Tesla driver actually survived the night with 18% of the vehicle’s battery remaining—the Post’s Charles Lane argued electric vehicles “might have littered the highway for miles” if there were more battery-powered cars involved. Kanninen could not disagree more, and he would definitely know since he was personally trapped on I-95 for 14 hours during the gridlock. Kanninen drives a base Tesla Model 3, the company’s shortest-range car available today. Yet despite this, and contrary to the estimates of the Post, the Model 3 actually handled the frigid night competently. An image shared in a blog post by Kanninen included an image showing the EV owner watching

what appeared to be Netflix in his Model 3’s 15-inch display while waiting for the gridlock to end. Kanninen listed several factors that helped him and his Model 3 handle the I-95 traffic jam without much issue. “I am grateful that I was driving my standard-range Tesla Model 3 when I hit traffic. While fellow drivers ran their engines to stay warm, my EV directed power solely to temperature regulation. As other drivers then fretted about their dwindling gas reserves, my EV continuously monitored my power supply. Because EV drivers charge at home and in the community, we are less likely to have just a partial charge, unlike other drivers, who rarely drive on a full tank,” he wrote. The Model 3 owner left the I-95 traffic nightmare without any drama, with the vehicle’s navigation directing Kanninen to a nearby charging station when the roads opened up. He said his car still had 50 miles of range left by the time he reached the EV charging location. Meanwhile, drivers of vehicles powered by an internal combustion

engine could be seen waiting in long lines at gas stations, which were overwhelmed and snowed in themselves. The fact a lot of misinformed takes about electric cars were published following the I-95 traffic jam proves there is still a lot that must be done to inform and educate the public about electric cars. If the Washington Post could make a completely erroneous take about how electric cars could handle an overnight gridlock in the middle of winter, after all, it would suggest electric cars’ real capabilities and advantages over ICE vehicles are still largely unfamiliar with the mainstream audience.

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3 Winners of Equalizer ‘Tools for Techs’ Campaign Receive Glass Removal Kits Equalizer recently announced the three winners of its 2021 Tools for Techs campaign, in which it gave a complete glass removal kit to deserving technicians. The company started accepting online nominations of outstanding technicians in the auto glass industry in November. It chose the three winners from about 120 submissions. Marketing Manager Kyle Calderwood said the annual campaign, now in its third year, was started as a way to give back to the community and reward people who truly deserve it. All three winners will receive a glass removal kit complete with all the necessities for a windshield replacement—multiple HydroBlades, windshield stand, push knife set, BTB Winged Scraper set, ZipKnife set, vacuum cups and much more. Each winner will also get to choose a Milwaukee or DEWALT caulking gun and one of five Equalizer power tools. The kits are worth about $2,000 each. The winners are: 14

Sean Ahlers, Janesville, MN The person who nominated Ahlers called him a “give-you-theshirt-off-his back kind of guy who enjoys helping others.” The nomination said Ahlers often comes in on Saturdays fixing things that need attention, and could use some new tools.

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Jamie McCrory, Salida, CO McCrory’s nomination said he started working in the industry about a year ago, and it would be good to help him with fresh tools. Peter Yoth, Rancho Santa Margarita, CA The person who nominated Yoth has known him for 14 years, and said he is the hardest-working person she’s ever met. Over Thanksgiving, Yoth underwent surgery to remove a tumor in his neck. He is recovering now and getting back into fixing cars. Equalizer thought it would be great to help him get back into it with new tools. Source: Equalizer

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U.S. Lawmakers Propose Bill Making Staged Collisions Federal Crime U.S. Reps. Garret Graves and Henry Cuellar have introduced a bill that would make it a federal crime to stage a vehicle collision and fraudulently claim financial damages. Graves (R-LA) and Cuellar (D-TX) say the legislation, the Highway Accident Fairness Act of 2021, would improve the safety of truckers and drivers on highways and protect trucking companies from the financial burdens of defending against or settling fraudulent insurance claims resulting from staged collisions. According to a statement from Cuellar’s office, the bill would: • Assure fair and prompt recoveries for highway accident victims with legitimate claims Provide for federal court consideration of interstate cases of national importance under diversity jurisdiction • Maintain stability in the movement of interstate commerce and protect the public from the safety hazard of staged colli-

sions • Protect motor carriers and insurers from the financial burdens of defending against, settling or being found liable for fraudulent claims that result from staged collisions • Protect law enforcement agencies from expending resources dealing with the aftermath of staged collisions The legislation is backed by the American Trucking Association. Graves says the bill would lower auto insurance rates for Louisiana drivers. Graves cited a 2015 staged accident in New Orleans that resulted in a $4.7 million settlement against a trucking company. “Louisiana drivers pay some of the highest insurance rates in America,” Graves said. “This is unacceptable and the solutions don’t require rocket science. Our bill will prevent criminal rings from further increasing the cost to drive and do business in Louisiana.”

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‘Who Pays’ Survey terly “Who Pays” surveys in conjunction with CRASH Network. “It can involve more teardown, more research of OEM procedures, vehicle scans and more.” According to the 2021 survey, 74% of shops itemize charges—as opposed to charging a flat fee—for total loss processing. In addition to the administrative time, these charges may include moving a non-drivable vehicle, covering the vehicle to protect it from weather, etc. In 2015, 38% of shops believed the top eight largest insurers in the “Who Pays” surveys “never” paid an administrative fee for total losses. Today, only 17% still think so. The latest quarterly “Who Pays for What?” survey is now open through the month of January. It focuses on “not-included” refinish labor operations. Shops can take the survey at https://www.surveymonkey.com/r/YDTT8NN Survey participants receive a free report with complete survey

findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at https:// www.crashnetwork.com/collisionadvice Source: CRASH Network

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Top Electric Car Predictions for 2022 by Scott Case, Inside EVs

It felt like 2021 was the year of the EV crossover. Tesla’s Model Y quietly dethroned its Model 3 sedan as the best-selling electric car in the U.S. Three new entrants jumped into the top five EV sellers: the VW ID.4, Ford Mustang Mach-E and the Chevy Bolt EUV. Perhaps it should not surprise us, because Americans love their crossover SUVs. But Americans love their pickup trucks more. I predict 2022 will be the year of the EV truck. Why? The top-selling vehicle model across 30 states in 2021 was the Ford F-Series, and the numbers we’re talking about are five times what the Model Y has done.

That makes the F-150 Lightning the most important EV introduction in history. This is a mainstream vehicle that will do more to establish—for better or worse—the reputation of EVs in the minds of most Americans. That includes my wife, who placed her pre-order for the F-150 Lightning months ago, after turning up her nose at every offering from Tesla to date. The Rivian R1T pickup truck and Tesla Cybertruck are interesting to watch as well, but they aren’t growing the EV buyer demographics and geographic reach in the same way as the F-150. This got me thinking about 2022 and what we should expect to see this year. To help us look to the future, I asked some of the smartest, savviest EV insiders I know to share their top predictions for 2022: Simona Onori is a Stanford University assistant professor of energy resources engineering and electrical engineering 18

Stacy Noblet is senior director of transportation electrification and a senior fellow with the Climate Center at ICF, a global consulting firm Sahas Katta is founder and CEO of Smartcar, a company that enables the integration of apps and services with connected electric cars. Esther Perman is head of product at Recurrent. Prior to this role, Perman co-founded a startup that focused on driving EV adoption and was on the founding team for Zillow Offers. Noblet’s Prediction: Used EVs Make Electric Mobility More Accessible One of the reasons EVs have not yet reached mainstream adoption at scale is because of the upfront costs associated with them. While EVs mean operational cost savings compared to fully gas-powered vehicles, the initial price tag is what gets most of a purchaser’s focus. Because of this, continued increase in EV adoption will rely on the second and third ownership market. In 2022, we’ll see more consumers seeking out used EVs, and EVs finding their way to more middle and low-income households. As supply chain issues persist, the availability of used EVs will help soften the impact of vehicle shortages and provide all of the benefits of new ones, but at a lower price point, making electrification more accessible for more consumers. Katta’s Prediction: Software and Connectivity Will Personalize the EV Experience EV owners are generally early adopters and ahead of the curve compared to other traditional vehicle owners. If you drive an EV, there’s a higher likelihood that you see the OEM app on your phone as an extension of the driving experience and you look for third-party apps to enhance it. Nearly all EVs shipped today offer connected services and, with 5G emerging, we’ll see faster connections and less latency. This makes it easier to enable more complex APIs to become available, opening the doors for developers to build even richer and more creative apps for cars and their drivers.

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Perman’s Prediction: New EV Shoppers Will Keep Demand for Leased and Used EVs High The next wave of new EV models adds more variety and options for early adopters, as well as the early majority. But for many of the “EV curious” shoppers, the perfect EV to match their lifestyle is still a year or two away. That won’t stop them from looking now, however; add in federal and state pricing incentives and increasing awareness of the environmental impact, and I predict shoppers—especially two-car households—will be willing to dip their toes into electric driving with leases and cheaper used models. Onori’s Prediction: LFP Bounces Back in a Big Way Major automotive players—Tesla, VW and Ford, both in the U.S. and China—will increasingly lean towards lithium-iron-phosphate (LFP) for EV batteries, to replace the higher energy density nickel-cobalt-based counterparts (NCA and NMC). This will bring down prices

for the consumers and accelerate mass EV production worldwide. LFP is a dated technology invented in the 1990s with lower energy density than NMC or NCA, but 2022 will be the comeback year of LFP battery technology, as a push to reduce the amount of cobalt used in batteries—to decrease global reliance on supply from the Democratic Republic of the Congo and address human right issues related to child labor in mines. Reducing cobalt content could be done at the expense of higher nickel content, but that would be a recipe for thermal stability reduction and increased risk of explosion. LFP is cheaper, safer—higher thermal stability—cobalt-free, has less environmental impact, is fast-charge friendly and has a much longer useful lifetime. Drawback? Because of their lower energy density, they offer a slighter shorter range. In my opinion, a small price to pay to accelerate the race for sustainability! See Electric Car, Page 34

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It’s Time to Protect Your Right to Repair America’s Vehicles Car ownership has long been a symbol of independence and personal freedom in American society. Thanks to the work of the independent auto care industry, which employs 4.7 million people and includes independent manufacturers, distributors, repair shops, and parts stores, car owners can feel confident making repairs and investing in the longevity of their car. However, due to embargoed technology solutions and anti-competitive behaviors within the marketplace, local auto repair shops and some dealerships are feeling the pressure of high costs and unnecessary burdens as a result of car repair restrictions.

affordable automobile collision repair parts,” says Justin Rzepka, Executive Director of the CAR Coalition. “It’s time for Congress to get serious about solutions, including the SMART Act, to ensure businesses can offer the auto repairs their customers want.”

Original equipment manufacturers (OEMs) are increasingly using a range of tactics, like patent thickets, controlling telematics data, position statements, repair procedures, and trademarks, to force repair shops and dealerships to use OEM parts and to steer more business to their preferred repair networks. These practices not only severely limit consumer choice, but cause economic ripple effects for businesses nationwide.

The good news is that an overwhelming majority (78%) of vehicle-owning voters support federal right to repair legislation that protects against design patent abuse in the automotive industry, such as the SMART Act. And only 25% of voters believe that design patents should be used for common car items, like side mirrors and bumpers.

Reform is critical to restoring competition in the marketplace. Six automakers were among the top 20 U.S. design patent recipients in 2020. These automakers have drastically increased the number of design patents they’ve applied for and been granted over the past 20 years – roughly 250% in at least one case!

Repair restrictions on cars and other items have been skyrocketing in recent years due to OEMs increasingly misusing design patents to crowd out competitors in the marketplace. On top of that, OEMs are tightening their grip on vehicle data. These restrictions make it harder for businesses to offer alternative parts during the car repair process. While some states, like Massachusetts and Illinois, have made promising strides in the growing automotive right to repair movement recently, there’s still work to be done. One national solution is the bipartisan Save Money on Auto Repair Transportation (SMART) Act (H.R. 3664), which would allow for greater choice of quality, safe, and affordable aftermarket car parts – putting business owners and consumers alike back in control. The SMART Act would: • Reduce from 15 years to 2.5 years the time that car manufacturers can enforce design patents on collision repair parts, such as fenders, quarter panels and doors, against alternative parts manufacturers; and • Maintain business owners and consumers’ right to choose from a multitude of brands, prices, and products when purchasing parts and making repairs. Importantly, the SMART Act maintains appropriate intellectual property rights for automakers by upholding the existing patent period in which automakers can enforce design patents against other automakers. “Local businesses and consumers lose when 15-year design patents keep independent manufacturers from offering safe, quality, and

The SMART Act is currently sitting before the House Committee on the Judiciary, as local businesses cope with stress due to the pandemic and while inflation continues to drive up vehicle maintenance costs. Alternative parts are 26-50% less expensive than OEM parts, while also helping to decrease the cost of OEM parts by 8% through competition. These are reasons why the SMART Act will not only increase choice, but will also translate to lower prices for car repair parts. In addition to the CAR Coalition, which includes American Property Casualty Insurance Association (APCIA), Automotive Body Parts Association (ABPA), AutoZone, and LKQ, the SMART Act is supported by the Consumers for Auto Reliability and Safety Coalition, National Association of Mutual Insurance Companies (NAMIC), Auto Care Association, RetireSafe, AARP, and more. Last year was one of the biggest years for right to repair, thanks to hard work from businesses, advocacy groups, consumers, and government officials alike. In 2022, it’s time to build on the momentum to protect your right to repair America’s vehicles. Learn more about the SMART Act and get involved today: www.carrepairchoice.org/ take-action. autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 19

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Toby Chess Shares 4. Best Practices for Two-Sided Bumper Repair Using Adhesives 5. Best Practices for Using 2K Epoxy Primer Here is Toby Chess’s newsletter: On Oct. 15, Dana Caldwell wrote an article for Repairer Driven News about why people pick the collision repair shops they do. The results were an eye opener. You would think insurance driven would be No. 1, but in fact it was last in the survey. Sixteen percent choose their auto body shop due to word of mouth. As you know, I spend a lot of time in body shops for I-CAR welding tests and most of us are reactive instead of proactive. How many of you have a written SOP for checking in a vehicle? How many have a written SOP for keeping your customer informed? How many have a written SOP to do a 48- to 72-hour followup after the car has been picked up? How many have signed job descriptions for each position in your shop? With some people choosing word of mouth, we need to do things better, and the easiest way to accomplish this is the use of written SOPs. I have more than 75 SOPs, and I will be adding 50 more over the next couple of months. I have three example stories to drive my point home. This was a used door from a well-known wrecking yard. The dent at the molding reduced the price by $50. I put my PDR light on it and asked the owner “Do you think that is a one-hour dent?” His answer was, “Probably not, more like two hours.” I used my light to circle all the dents—five more. I asked him who is going to pay for the additional labor, prime and materials for the door. That door needed between five and six hours of repair. His tech made $50, he lost a couple hundred dollars of sales and he increased his cycle time because the tech was not working on the customer’s door but a used door instead. I have an SOP on handling used sheet metal in the future, so this does 20

not occur again. Moving on, the next example I would the highlight is aluminum dent repair using a weld-on pulling pin. I received a call from Erik Spitznagel, owner of Dent Fix Equipment. He sold an aluminum repair station to a shop in the Midwest. The body shop was trying to pull out a dent on a cab corner on a 2017 Ford F-150. The problem was the pins would not stick and they were “blowing” holes in the aluminum. I called the shop owner and asked him what procedures he was using. He did not know, but got his tech on the line. The technician said he sanded the panel to bare aluminum using a 120 grit DA sander. When the pin did not stick, he increased the voltage and blew a hole in the panel. He did another one with the same results. I told him the recommended steps. First and foremost, the aluminum needs to be cleaned with a stainless steel brush, to prevent galvanic corrosion. I explained the small brush works the best to remove aluminum oxide from the weld site. Next, the site needs to be cleaned with good wax and grease remover. Step three is to apply one silicon stud and one magnesium stud, turn the power setting to 3 and see which one sticks the best. After destemming the proper stud, load a pin into the gun, pushing it down with end of the stainless steel brush. Grease on your finger will contaminate the pin and it will not stick. I told the tech to make sure the pin was perpendicular to the metal. I asked the manager if he would like a best practice sheet on the proper steps needed for aluminum stud installation and removal, and he said sure. He also said if there was a problem, he would call, which he never did. I have included this best practice as an attachment. My third example deals with plastic repair using adhesives. Recently, I received a call from a Kent Automotive sales representative. One of his shops called and told him the bumper repair they performed failed. I made an appointment with the shop and I arrived a couple of days

FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

later. I asked the gentleman who repaired the bumper what steps and products he used. He gave an abbreviated version and I explained I needed the step by step process he used. He said he removed the paint from the front side of the bumper with a 120 DA sander, but not the back side. He then cleaned the front and back side of the bumper with Prep-Sol. I explained to him that using a solvent-based wax and grease remover is designed to remove adhesives. The solvent will wick into the raw plastic and when the adhesive is applied, the solvent wax and grease remover will not allow the adhesive to stick. I explained a water-based wax and grease remover needs to be used. I also told him he needed to sand the backside with 80 grit DA to abrade the plastic so the adhesive would adhere to it. He showed me the product he used for the back side, which was the wrong material. He used another manufacturer’s product for the front, and that manufacturer requires an adhesion pro-

moter before the application of the adhesive, which he did not use. We went into the shop and I did a clinic on plastic repair. He brought me a water-based wax and grease remover from a different manufacturer. I explained to him that is probably OK but he needs to use one manufacture’s system, and using or mixing other companies’ products may interact and cause the repair to fail. I have included this best practice as an attachment. If you want a bumper repair clinic on adhesives or nitrogen welding, I would be more than happy to come to your shop and conduct a clinic. There is not charge for this service. Just call 310-9957909 or send me an email at tcspeedster@gmail.com. In conclusion, if the three shops had SOPs in place and they were followed, these failures would not have happened. My next column will deal with creating your own SOPs. One final request: please let know what are your thoughts on this or if you have ideas that you want to share.

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Albert Kemperle, Inc. Joins Wesco Group Wesco Group, a leading paint, body and equipment distributor in the western U.S. and Canada, is pleased to announce Albert Kemperle, Inc. has joined the Wesco family of companies. Kemperle Auto Paint, Body & Equipment was founded by Albert and Mary Kemperle, who opened its first store in Brooklyn, NY, in 1940. Over the decades, generations of founding family members continued to expand that single store into more than 50 locations in the eastern U.S. Ronald Kemperle has joined Wesco as a principal partner and will continue to guide the group in the eastern U.S. The combined Wesco family of companies, which includes Wesco, Color Compass and Kemperle, is one of the largest privately-held PBE distributors in North America, servicing customers from more than 118 stores, 13 distribution centers, 12 equipment divisions and 11 training centers. Source: Wesco Group

Continued from Cover

National Survey “Our business is currently stronger than it’s ever been,” a Missouri shop owner said.

“Scheduling out two months,” a North Carolina shop owner said. An optimistic Minnesota shop manager pointed to his shop’s fivemonth backlog of work and “plenty of business in our area,” though he did acknowledge concern that 75%

The survey found among the collision repair businesses that said they received a second-round Small Business Administration Paycheck Protection Program (PPP) loan in 2021, 70% said they have already received loan forgiveness. None of the shops surveyed reported having their loan forgiveness application rejected, but 20% said they still planned to apply to have the loan forgiven, and the remaining 10% were undecided about applying. Among those who said they received a first-round PPP loan in 2020, 84% said the loan had been forgiven; the balance either had not applied for forgiveness, were awaiting approval or were undecided about seeking forgiveness, but again, none reported having their loan forgiveness application rejected.

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“This company has made it through many ups and downs since it opened in 1984,” a Wisconsin shop manager said.

of the shop’s employees will retire within the next five to 10 years. “Need fresh faces ASAP,” he said.

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Used Car Price Bubble Predicted to Pop Soon by Steven Symes, Motorious

Thanks in large part to the shortage of automotive microprocessor chips, there’s been a shortage of new cars in the past year, driving used vehicle prices sky high. In some extreme cases, this has resulted in some trucks, SUVs and even cars only a few years old selling for more than they did when brand new, leaving many shoppers in extreme sticker shock. While some have shelled out for the higher prices for a number of reasons, others have decided to hold out until sanity returns to the market. It looks like the price inflation bubble popping is now on the horizon, bringing both good and bad news, depending on where you sit. Per a recent report from Automotive News, analysis of data collected by KPMG revealed the average used car price will fall about 20% to 30% sometime in late 2022 or early 2023. The earliest the firm believes this will happen is October. For this to happen, new car supply needs to return to normal and market demand must be at least 22

close to saturated. Even once all the major automakers return to regular production capacity, it could take several months or longer for market demand to even out.

Cox Automotive believes the deflation of used car prices will happen over a longer period. It says things might not even out completely until 2025, which is bad news for hose who have been holding out for the price bubble to pop. However, KPMG believes used car prices could start to plummet even before new vehicle supply reaches optimal levels. As the market anticipates the increase in new rides, prices might adjust dramatically.

FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

While a 20% to 30% drop in prices will bring some needed relief, right now used car prices are 42% higher than they were in January 2020. In other words, the decline could be more severe or it could come in several waves. That’s bad news for anyone who bought a used vehicle in the past year or so and is planning to sell it sometime in 2023. KPMG did throw out some other possible future scenarios, including one where used vehicle prices remain just as high for the foreseeable future. In another scenario, the firm observed how the Federal Reserve responds to rising inflation could absolutely kill consumer demand for most vehicles. Out of the major automakers, only Toyota has been able to return to regular production volumes. The Japanese company won’t disclose how it’s doing so, but rumors about it sourcing chips from Apple and other theories have run rampant. Why other automakers haven’t figured out how to do the same isn’t clear, but hopefully they will soon.

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

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Freeway Honda Birmingham

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Dept. Hours: M-F 7:30-5 greg_thomas@freewayhondaal.com

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Hendrick Honda Pompano Beach

Honda Mall of Georgia

Apple Tree Honda

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

Rick Case Honda

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Davie

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Carey Paul Honda Snellville

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Patty Peck Honda

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Marietta

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

Gastonia

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

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Ridgeland

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Gerald Jones Honda

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Breakaway Honda Greenville

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Dept. Hours: M-F 8-6; Sat 8-5 fmarshall@breakawayhonda.com

Piedmont Honda

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Dept. Hours: M-Thu 7-11; Fri 7-6 Sat 7-5; Sun 11-5 www.southpointhonda.com

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

Ed Voyles Honda

Clermont

Durham

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Headquarter Honda

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Honda of Newnan

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

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Classic Honda Orlando

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Hollywood

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Anderson

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Duval Acura Jacksonville

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Fort Lauderdale

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

Marietta

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

Cary

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Jackson Acura

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877-622-2871 678-259-9500

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800-355-2818 703-550-0205

Roswell

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

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

NO. CAROLINA

FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

Winston-Salem

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

Hall Honda

800-264-4721 865-970-7792

800-482-9606 757-431-4329

Alcoa

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

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

AutoNation Honda West Knoxville

Valley Honda

Knoxville

800-824-1301 865-218-5461

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

Bill Gatton Honda Bristol

800-868-4118 423-652-9545

Dept. Hours: M-F 7:30-5:30; Sat 8-1 hondaparts@billgattonhonda.com

Staunton

800-277-0598 540-213-9016

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

West Broad Honda 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

autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 25

Author/Teacher Trains and Mentors the Insurance Adjusters of the Future by Ed Attanasio

Some auto body shops appreciate insurance adjusters and their role in the collision repair industry, while others don’t necessarily feel the same way. But all seem to agree it’s a necessary job. In the end, everyone wants the same thing—the safe repair of a vehicle back to its pre-accident condition. According to Indeed.com, the responsibilities of an auto damage adjuster include evaluating the damage done to a vehicle and then determining what the insurance company will pay. They also add “a claims adjuster job is very stressful as it comes with lots of highly demanding activities. However, when you put in the hard work and dedication, the rewards far outweigh all the tough demands of the job.” Chris Stanley, 36, is an author, career coach/mentor and the founder of Insurance Adjuster (IA) Path, a company that trains and mentors auto adjusters.

He lives on a 42-foot sailboat with his wife and three kids—ages 12, 8 and 1—who are homeschooled. He enjoys the freedom and

Author/teacher/mentor Chris Stanley created a company, IA Path, to set up independent adjusters for future success. His IA Playbook Series has quickly become the industry’s Bible

loves “traveling the open seas and feeling small in our big world,” he

said. In addition to writing a series of books about insurance adjusters, he also writes Christian devotionals, memoirs, kids’ books and a variety of non-fiction. Stanley was working as an adjuster for a PDR company in Colorado when he was recruited to become a supervisor at the same organization. “The business grew to the point where we were working with 100 shops and dealerships and they needed someone to oversee the work,” he said. “It was definitely a major mental shift, where I went from writing estimates to managing techs, and after a while I said I want my life back! Plus, it was cold in Colorado.” So, he purchased his boat and began enjoying better weather in Florida, with a career change in his immediate future. “One of the great things about this lifestyle is we can go to wherever we want to be—whether it’s the Keys or West Palm Beach,” he

said. “Every year I always ask my children—do you want to live in a house on land or stay on the boat? They always go with the boat.” Around that same time, Stanley saw training programs for independent insurance adjusters were scarce or difficult to get into. “I tried to help a friend who wanted to become an adjuster, and no one would take him, even though I taught him the basics,” Stanley said. “They told him you don’t have any experience. So, I started looking online to see if there was any information about how to enter the industry, but it was all about property and nothing about cars.” Since 2016, Stanley has mentored more than 2,500 people, to create the next generation of independent adjusters and auto damage appraisers. His go-to book is called the “Auto Adjuster’s Playbook,” which Stanley called the industry’s Bible. “It is based on a proven method to teach new people how to learn to write estimates,” Stanley said. “It

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has been used to teach hundreds of students through IA Path’s online training course, called the ‘Auto Adjuster’s Path.’ “Most people who venture into being an auto damage appraiser or body shop estimator are overwhelmed with learning about the parts of the car, repair processes and how to not look stupid,” he continued. “This book tells you what you need to know with plain English. The ‘Auto Adjuster’s Playbook’ is field tested and contains industry recognized training and instructions by a 13-year veteran and reviewed by top industry leaders prior to its release.” Other books in Stanley’s IA Playbook Series include “Audatex Adjuster’s Playbook,” “Networking Adjuster’s Playbook” and “Hail Adjuster’s Playbook.” Stanley’s IA Path program is designed to get people up and running fast, he said. “Whether it’s a Millennial looking for their first career or someone looking for their second or third career, I want to see them get work within 90 days in a rewarding indus-

try and write content to help them navigate their journey,” he said. “We bring them in and get them to the point where they’re doing their jobs correctly, doing mock claims and handling the entire process from start to finish.

Stanley lives and works on a boat with his wife and three kids in Florida

“Whether an adjuster who is working as a staff or independent adjuster handling property, auto or desk claims—liability, bodily injury, etc.—there will be always be companies looking for their skillset.” This past summer, IA Path hosted its first Adjuster Job Fair to allow adjusters and appraisers from

all aspects of the inspection industry to get interviewed one-on-one with dozens of hiring companies. “One of the biggest hurdles for adjusters to getting work is getting in front of enough companies that have work opportunities,” Stanley said. “We decided to bring the companies to the adjusters so they wouldn’t have to track them down. The event was 100% online utilizing a state-of-the-art platform and interviews will be conducted using the industry-leading Zoom technology. Adjusters scheduled online face-to-face interviews with 30-plus nationwide and regional hiring companies.” The job fair was brand new territory for Stanley, but he’s never been afraid to take on new endeavors like this one. “This type of event has never been done before online in our industry, for adjusters,” he said. “Typically, events are centered around the hiring companies or technology companies, but we wanted this to be all about the adjuster.” The adjuster admission also included on-demand adjuster training,

live adjuster workshops and speakers. “We have big plans for this platform in the future, but we’ll start with this first event and the follow up during the first quarter of 2022,” Stanley said. “The pricing was designed to offer opportunities to the adjusters year-round, not just for the three days of live online interviews.” When he isn’t motoring around on his boat, Stanley is focused on creating the independent adjusters of the future. “It’s a good job that can lead to a long and wonderful career, so if you’re smart, fast on your feet and detail-oriented, this might be a good match for you,” he said. “And I can show you how to do it!” For more information, visit www. iapath.com.

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From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Can You Meet Collision Repair Shop Customers’ Changing Expectations of Service? I recently had the opportunity to meet in person with many of my 20 Group clients, and one of the things that came up was collision repair customers are not as patient as they used to be. At the beginning of the pandemic, if you told a customer a part was on backorder, or a part would take longer to arrive because the supplier had reduced how frequently they were doing deliveries, they were pretty understanding. What I’m hearing from auto body shops around the country is those same customers today are much more demanding, and they’re not so patient. They don’t care about supply chain issues or the shortage of employees. They just want their car repaired and back to them. And I hate to say it, but unfortunately I believe that’s only going to get worse. Which brings me to the topic of liquid expectations. You’ve probably heard that term. It basically describes that customer expectations in terms of service from a business are really shaped by their experiences with other companies. If I can use the Starbucks app to order and pay for my coffee and have it ready and hot on the counter for me when I walk in, why can’t the local coffee shop around the corner offer me similar convenience and service?

In terms of our industry, I’ve been thinking about things I used to go get that now get delivered to my door. Take groceries. I may spend $100 on groceries, maybe $300 sometimes. Either way, my local grocery store delivers that to my house for free.

I get a prescription filled that costs me $7.99. My local pharmacy delivers that to my house. For free. No delivery charge. I believe it’s just a matter of time before customers are going to start saying: “I spent $4,000 with you, and I have to leave my job early to come pick up my car?” I think it’s just a matter of time before they’re going to want the same type of pickup and delivery service they are getting from all types of other businesses. Now understand: I’m not saying I agree with this. I’m not saying it’s something we have to do or should be doing. But I believe collision repair customers are starting to

want and could start to expect and demand a “white glove” or “concierge” type of service experience from us. I was on a call recently with an insurer who said they’re seeing that sort of expectation from customers in terms of the insurer’s DRP shops. So what would that mean for your body shop? Well, it means having another one or two people, right? We need to make sure they have a clean driving record and can have good interactions with customers. We’ll have some added liability if we’re driving customers’ vehicles back and forth. We’re going to need to be profitable enough that we can offer that type of services. That goes back to a previous article of mine about employee wages where I said either

labor rates have to change, or shops have got to be paid for more not-included operations, or some combination of the two. Alternatively, it may also be something we could have a fee for. You pay $6.99 for a delivery by DoorDash. People spend that. So maybe it’s time we start offering pick-up and delivery for a certain dollar amount. Either way, it also means we’re going to need to do much better in terms of quality control inspections of vehicles, because we don’t want to get a repair vehicle out to the customer’s home and only then discover an issue. As I said, suggesting yet another challenge for collision repair shop operators isn’t something I like. But I just see this as one of the ways customer expectations are changing which we need to consider.

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Washington, D.C., office as vice president of legislative and technical affairs. He took the helm as SEMA’s CEO in 2002 and led the association through two decades of growth. Beginning Feb. 1, Kersting will transition into an advisory role through July. SEMA executives Bill Miller and Mike Spagnola will serve as interim co-CEOs. Source: SEMA

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Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

Fully Automated AI Collision Repair Estimating ‘Not There Yet’

Shop Showcase

A panel discussion at the Collision tions. Industry Conference (CIC) in Las “We’re not there yet, 100%, Vegas in November included repre- with straight-through processing,” with Ed Attanasio sentatives from a number of technol- said Dune Pagaduan of Mitchell ogy companies touting the potential International, referring to AI being benefits—for auto body shops and capable of completing all estimates without human interaction. “So is AI real? Sure, it assists us in making and automating decisions, thousands with Ed Attanasio at a time…more quickly so that we shrink cycle time. But you still need experts, humans, to complete the whole process.” He said AI systems can currently write accurate estimates on “low-severity collisions.” with Ed Attanasio “But when you get to higher severity type collisions—more comDune Pagaduan of Mitchell International plex, more parts—then that’s the said AI can help collision repair businesses journey we have to go to get to that increase consistency in their estimating 100%,” he said. “I think in the next insurers—of artificial intelligence two to three years, we’ll get there.” (AI) estimating,with but also acknowl- The panelists were asked if any Ed Attanasio edging some of its current limita- AI system built on historical data

can identify substrates, systems and OEM procedures for nearly new vehicles often involved in collisions. “That is the challenge,” Pagaduan said, noting historical data ideally needs to be paired with other in-

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“So not everything is AI. We combine it with the OEM procedures and our editorial data to produce that specific accurate estimate.” In discussing what AI estimating offers shops specifically, the panelists noted the wide variance in estimates often seen even when different estimators look at the same vehicle. AI can help collision repair businesses increase consistency in their estimating, Pagaduan said. Panelist Jason Verlen of CCC Intelligent Solutions said it also offers shops access to photos and information even before the customer arrives. He noted as recently as three years ago, fewer than 1% of vehicle claims involved photo-estimating. “As of today, roughly 22% of repairable claims go through the process,” he said. “And we have some carriers on our system where

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over 70% of their repairable claims go through photo AI.” CCC offers a product, Estimate-STP, which, Verlen said, on low-impact collisions can write a complete estimate with no needed review or changes by a human. Beyond that, he acknowledged, it’s still “a joint process between the human and the AI.” But the AI does “make the process much more efficient,” he said, in part by getting a consumer an estimate faster, which in turn speeds their decision-making about choosing a shop and scheduling repairs. “So there’s huge increases and improvements in cycle time” and the customer experience, Verlen said. “But it’s not like AI solves all the world’s problems.” He noted the panel moderator talked about recently watching an estimating contest at a Texas trade show in which 16 estimators writing for a quarter panel replacement on a mainstream vehicle came up with 16 different estimates, ranging from 130 lines to 400 lines. “So someone may ask me: ‘Is your AI accurate? Does it match

what a human would do?’ My answer is: Which one of those [16] guys do you want me to match,” Verlen said. “That’s why I say AI is no magical bullet. That’s why we combine AI with build sheet data, with business rules, with insurer guidelines, and that’s how we come

Jimmy Spears of Tractable said his company’s AI estimating system has become adept at quickly determining from photos if a vehicle is a total loss

up with an estimate that’s reasonable to the situation.” He suggested to “reduce skepticism” among new users, the systems’ thresholds should be set high at first so “virtually everything the AI generates on an estimate a hu-

man will agree to.” Then gradually loosen the thresholds to get more complete estimates, he said, after skeptics have “been trained to see that it does work” even if there are at times a “difference in opinion.” Jimmy Spears of Tractable said his company’s artificial intelligence estimating system has become adept at quickly determining from photos if a vehicle is a total loss. “One of things that AI does a wonderful job on is triage,” Spears said. “We’re in the high 90s of calling balls and strikes: Is this car repairable or is this car not repairable.” For insurers, he said, the system can produce 40% of initial estimates “without any further line items” needing to be added. An equal percentage require review of one or two line items—with the estimate annotated as to what an appraiser needs to review—while the balance will require being handled “old school: have it towed, take the car apart and go classic blueprinting.” Moving beyond that 40% of initial estimates “without any further line items” needing to be added will require greater access to vehicle-spe-

cific OEM build sheet data, he said. “If we get that, we’re going to have a greater understanding of that vehicle, the DNA of that car,” Spears said. “And then we’re going to have a much better understanding of what this car really needs, its repair process. We have got to solve the problem of build sheet data, and we’re in the right room for that.” In the interim, he said, AI estimating offers benefits to more than just insurers. Tractable has a test going with LKQ Corp., he said, using the technology in a bit of a reverse way: helping determine which parts are not damaged on salvage vehicles. It could also help collision repairers with the customer sales process, Spears said. Currently, estimators point a potential customer to a waiting area while preparing an estimate. “Instead, they’re going to be able to quickly take some images of the car, and then while the images are being processed, they can take the customer around the shop and show the investment that you have” in equipment, training and certifications, Spears suggested. “When they get back to the desk, here’s the estimate.”

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Auto Body Shop Owner Steps into World of Consulting by Ed Attanasio

I was at a California Autobody Association (CAA) meeting recently and I couldn’t help but notice a welldressed man at the front table. It was an informational meeting with the Bureau of Automotive Repair (BAR) and after a few minutes I assumed he was a member of the BAR. At one point, he scolded another auto body shop owner for asking a question. He said, “The customer is your customer, not the insurance company! I taught you that, but maybe you forgot?” I almost laughed. After listening to him for a while, I could tell this guy is passionate about collision repair, as well as being very knowledgeable. I told myself I needed to meet him. His name is Alex Kuang, owner of Redwood City Auto Body in Redwood City, CA. He wants to sell his shop to become a consultant and share his knowledge with the collision repair industry. Kuang is the current president of CAA’s Golden Gate (San Francisco Area) chapter, and is trying to increase its membership by recruiting many of his friends who own or manage shops in the Bay Area. Kuang came to the U.S. from China at age 10 in 1988 for a better future. His father was originally a butcher, but when he immigrated to the Bay Area, he became a chef specializing in Hong Kong-style cuisine. Today, Kuang wants the world to know he can cook, and if you don’t believe it, take a look at his Facebook page when you have a moment, where he posts photos of his culinary creations regularly. Kuang’s first job was as a painter, but he quickly decided he wanted to sell the paint instead of spraying it. “I loved the product I was using and wanted to share the news, so I got a job with a distributor to educate other shops about it,” he said. “I did that for eight years and I learned so much because I was visiting multiple body shops every day. I was surprised to learn a lot of painters weren’t knowledgeable about the paint they were spraying. I told them the more you know the bet32

ter you can be as a painter, and you could see it in the finished product. I enjoyed helping them to becoming better painters and better managers.” In 2010, Kuang made the move from employee to employer when he purchased Redwood City Auto Body.

The collision repair industry has been good to Alex Kuang, but now he’s ready to change hats from shop owner to consultant

“One of my customers called me and said he wanted to get out of the business and he offered me a very good price,” he said. “I was selling paint and I didn’t really know how to run a shop, but I was ready to jump in. I was the new kid on the block in a competitive market, but I knew at least I could succeed by working harder than the guy down the street.” The numbers showed Kuang’s passion and incredible work ethic were going to lead to healthy profits. During his first month as the owner, the shop did $16,000 in volume, but within just five years, the number— pre-COVID—had grown to approximately $300,000 monthly. Kuang is a major advocate of the right to appraisal, to say the least. It’s a technique he’s perfected over the years by learning from the experts and through trial and error. Many shops stay away from it because they find out it’s complex and feel as though the insurance companies will win anyway, Kuang said. It’s not an old scenario that happens every day in shops from NYC to LA. The body shop writes an estimate to fix the car, and then the customer’s insurance company comes in with a lower number. A lot of body shops will bite the bullet and cover the difference, while others will figure out how to cut their costs to accommodate the insurance company’s appraisal. Kuang learned a long time ago eating the difference was no way to

FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

run a successful business, so he decided to educate himself and learn how to write what he calls the “perfect sheet.” His estimates are well-known for being thorough, accurate and designed to beat insurance companies when he goes up against them over short-pay claims. He builds a case even F. Lee Bailey would be proud of, with stacks of photos, texts, emails, OE repair documentation, schematics—you name it. It’s the appraisal clause, or the right to appraisal, and you will find one in most automotive insurance policies. It gives the customer a method to dispute the estimate provided by their insurance company when their vehicle has been damaged or totaled. It’s not new, but more shops are using it now because they can see it works as long as they dot their I’s and cross their T’s. Kuang found out the hard way because the first few times he tried to implement the right to appraisal on a repair, he stumbled. “I realized you have to document everything in detail and then have the information on-hand or the insurance company will always prevail,” he said. “They are just waiting for you to make a mistake, and they know that many body shops aren’t skilled at performing this process. They got me a few times on storage fees, but never again. The appraisal clause is great for shops and customers, but insurers hate it.” Just like he said at the CAA meeting, Kuang’s mantra is built on the concept the customer is the shop’s customer—not the insurer. But many shops forget that or ignore it. When a policyholder decides to opt for the appraisal clause, it sets in motion an arbitration process that starts where both parties hire their own independent appraisers, Kuang explained. If the two appraisers are not able to agree on a specific number, which happens most of the time, they have to get a third-party involved to review their findings and conduct an additional inspection and assessment in many cases. If two out of the three agree, that number is final and can’t be appealed.

Kuang has become highly adept at helping his customers navigate this tricky process and presents cases with a 99.99% success rate. “We cannot do it ourselves, but we can assist the customer because otherwise the insurance company will eat them alive—I’ve seen it,” Kuang said. “The insurer and the policyholder are the ones who have to pay for the arbitration, so sometimes, customers are reluctant to do it. But we convince them that this is the only way for them to get paid for a proper repair.” Initially, the appraisal clause was a system that worked well for shops who knew how to use it, but now it’s a little more complicated, Kuang said. “The problems began when the insurance industry figured out how to beat it, and today some insurers have changed the wording in their policies to the point where it nullifies the appraisal clause altogether,” he said. Kuang is a maniac when following OE repair procedures to the tiniest detail because he knows his estimate will likely be analyzed in detail by at least two more sets of eyes. Often, he produces short videos highlighting OE repair procedures and calling out parts and processes often missed. As a consultant, Kuang will enable more shops to use the appraisal clause and other techniques he has developed to get paid fairly on each and every repair. The insurance companies won’t likely appreciate his new role, but it’s never been a warm and fuzzy relationship anyway. “Once they saw I knew how to succeed using this system, they started steering customers away from me—it was pretty blatant,” Kuang said. “The insurance companies have a long list of things they won’t pay for, and they don’t like it when they are smarter than they are.” Kuang said he has big plans for his consulting company, and helping his shop clients to be smarter will be one of the first things he wants to achieve in 2022.

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Continued from Page 18

Electric Car Perman’s Prediction: New EV Shoppers Demand Different Shopping Experiences Tesla didn’t just disrupt electric car design; they changed expectations of the car purchase experience. In many states, Tesla’s online ordering and delivery eliminated steps that consumers like least; several OEMs have followed suit with online purchase reservations for upcoming models. Add in the popularity of auto e-commerce sites with shoppers who hate haggling over price, and I predict we’ll see more and more consumers demand a shopping experience that reduces or eliminates time spent waiting at dealerships. Dealerships who do embrace electric vehicles will win by helping consumers experience what makes electric so special, providing at-home charging solutions, and being the experts at answering questions about range and battery life. Noblet’s Prediction: 2021 Commit-

ments Become 2022 Realities It felt like 2021 was the year of EV commitments, with a lot of attention and money going toward EVs, including the Infrastructure Bill, which allocated $7.5 billion toward EV charging infrastructure at a federal and local level. 2022 will be about following through on these commitments. To do this, we need to prioritize the buildout of charging infrastructure along corridors and across communities, which will be dependent on collaboration with utility companies. We’re already seeing this in action at the local level with efforts like NYC’s Electrifying New York plan, which brings together the NYC Mayor’s Office of Sustainability, Con Edison and National Grid to ensure the city is properly prepared for EV investments. We’ve also witnessed the emergence of regional and nationwide collaborations like the National Electric Highway Coalition, which represents more than 50 power companies aiming to increase EV accessibility. In 2022, utilities will have a constant seat at the table and will

provide governments and key stakeholders with valuable grid insights to ensure that efficient and equitable EV adoption is possible as federal funding makes its way into communities across the country. Katta’s Prediction: Startups Make EVs Even Cleaner Let’s face it: an EV is only as clean as the grid that powers it. New companies and technology will help us optimize when and how we draw the energy that powers our vehicles. Software can’t eliminate the environmental footprint of transportation by itself, but it can make it easier to charge EVs with clean energy. Keep an eye on businesses like Rolling Energy Resources, which is already breaking ground on making this possible. Noblet’s Prediction: Electric Fleets Visibly Shift to be the Rule Rather Than the Exception In 2022, we’ll see more interest from businesses in adopting electric fleets. Fleet electrification makes economic sense—it can save them up to 40% on maintenance costs and up to 50% on fuel costs. Even with a higher up-

front cost for vehicles and infrastructure, businesses will quickly realize the long-term benefits of turning their fleets electric. Beyond cost savings, business leaders are also adopting more sustainable practices to support climate resilience efforts, which will be reinforced through fleet electrification. Fleet electrification is important for reducing emissions in the sector due to the scale of impact and the greater number of miles traveled by fleet vehicles, which can significantly improve air quality in disadvantaged communities. Now that more vehicle makes and models are available, fleets of all sizes and types will embrace electrification and start to convert their vehicles to EVs. Predicting the Future is Not Easy While these are very smart people and some of their predictions seem like sure things, nothing is guaranteed, and this is not an exhaustive list.

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Sony Getting Serious About EVs, Debuts SUV Concept at CES by Dan Mihalascu, Inside EVs

When Sony unveiled the Vision-S electric concept sedan at CES 2020, everyone hoped it wouldn’t remain just a show car; after all, it looked production-ready and was too well thought-out to remain just a one-off. Now, Sony finally said it is exploring an entry into the EV market, which is no big surprise given it has been testing the Vision-S 01 prototype on public roads since its reveal. To remove any doubt about its intentions, the Japanese company just unveiled a second electric vehicle concept, the Sony Vision-S 02 SUV. Previewed at CES 2022, the Vision-S 02 uses the same EV/ cloud platform as the sedan prototype to offer a more practical vehicle with a roomier interior with seven seats. Sony said the Vision-S 01 and Vision-S 02 prototypes “will promote the accommodation of a large variety of lifestyles within a society where values are becoming increasingly

diversified.” Looking at the Vision-S 02, the resemblance to the Vision-S 01 is obvious as the SUV adopts the same design language and cues. While the sedan’s dimensions place it halfway between the Tesla Model 3 and Model 3, the SUV occupies the space between the Tesla Model Y and the Model X. The Vision-S 02 is 192.7 inches long, 76 inches wide and 65 inches high, with a generous wheelbase stretching at 119.3 inches. It rides on 20-inch wheels and weighs 5,467 pounds. Inside, the dashboard design is very similar to the Vision-S 01 as well, consisting of three giant displays. The one on the left acts as an instrument cluster, the one in the middle is the main interface for the infotainment system, and the one on the right is for the front passenger. Second-row passengers have two additional screens at their disposal. As with the Vision-S 01, the Vision-S 02 benefits from gadgets like seat speakers working with a streaming service compatible with

You’re Going To

360 Reality Audio and a fully integrated digital video service, Bravia Core for Vision-S, which enables shared or individual video playback on the front panoramic screen and individual rear-seat displays. In-vehicle entertainment also includes the ability to play PlayStation games through a remote connection to a console at home, in addition to the ability to play streaming games through the cloud. Power comes from a dual-motor AWD powertrain making a total of 536 hp, enabling the electric SUV to reach a top speed in excess of 112 mph—37 mph lower than the sedan. The 0-62 mph sprint has not been revealed, but it likely takes more than 4.8 seconds needed by the Vision-S 01, which is 287 pounds lighter. Sony’s Vision-S prototypes also place great emphasis on safety, thanks to an array of sensors offering 360-degree vision around the vehicle. These sensors include high-sensitivity, high-resolution, wide dynamic range CMOS image sensors and LiDAR sensors that

accurately sense three-dimensional space. Sony said it is currently conducting functional verification tests in Europe toward the release of Level 2+ advanced driver assistance systems (ADAS) on public roads. This is truly exciting news for EV enthusiasts, as a giant technology company like Sony will no doubt help the segment grow further. In order to explore its entry into the EV market, Sony said it will establish an operating company, Sony Mobility Inc., in the spring. “The new company will aim to make the best use of AI and robotics technologies, help realize a world where everyone can live in harmony with robots on a daily basis, fill people with emotion and contribute to society,” Sony said. “With VISION-S, which contributes to the evolution of mobility, together with the autonomous entertainment robot aibo, and the drone Airpeak, Sony will seek to continue to create new value in a variety of fields.”

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G&C Auto Body Donates 7 Cars to Continue Gene Crozat’s Legacy of Giving by Ed Attanasio

The late Gene Crozat of G&C Auto Body died in 2016, but his sons have taken his zeal for helping others to the next level, and giving cars to those in need is a big part of it. The company has now presented more than 200 vehicles to deserving individuals and families within the last 20 years and the number keeps climbing. On Dec. 16, seven deserving Sonoma, CA, area residents experienced a life-changing event thanks

The Crozat family has given away more than 200 cars to deserving families within the last 15 years. In this photo, Shawn Crozat talks to the crowd while his brother Pat looks on

to the National Auto Body Council (NABC) Recycled Rides® program, along with car donor GEICO, G&C Auto Body and automotive refinish coatings partner PPG. The presentation was held at the Sonoma County Event Center at the Fairgrounds in the Garrett Building. More than 200 people were in attendance. G&C Auto Body CEO Shawn Crozat is proud to continue his family’s legacy and knows his father would be smiling from ear-to-ear watching the presentations. “Dad had a huge heart and wanted to help as many people as he could,” Crozat said. “He used to tell us that we are in a position to help others, and it’s a role we’re obligated to play. When you think about the fact that more than 200 people are driving vehicles around in the North Bay that they got through G&C, that is pretty amazing!” Bill Garoutte, president and CEO of the NABC, is ecstatic about what G&C has achieved through its philanthropy over the years. “What an honor to be part of a tremendous event with an organization that provides such incredi36

ble support for the community,” he said. “To gift more than 200 cars to area residents in need is an amazing milestone, and to present seven in one day by G&C Auto Body is truly remarkable.” The seven recipients of completely refurbished vehicles included Stephanie, a single mom to two young children, who received a 2014 Honda Civic. Her partner of 15 years recently and unexpectedly passed away. Stephanie was in need of transportation to continue her journey of stabilization with her children after the loss of their father. Stephanie and her son are living in a transitional house as they actively look for a place to live. She heard about the Crozat Family Foundation and its benevolent giving from a person who recently received a vehicle through the foundation. Sue, a single mom, was presented with a 2016 Nissan Versa. She has been a single mom from the time her oldest was 3 years old. Now, she is the matriarch of a multigenerational household consisting of herself, her two adult daughters and her grandson. She owns a 1996 Toyota 4Runner with 300,000 miles and a blown head gasket and relies on her youngest daughter to drive her to work and her oldest daughter’s boyfriend to pick her up. She has been trying to save for another vehicle, but this gift of transportation will help her be able to get to work and not rely on others. Cheyanne, a mother of two, was gifted a 2017 Hyundai Sonata. She and two of her three children were living in Lake County, CA, when their house was deemed uninhabitable and they had to leave. They also had to leave behind their older model vehicle that had stopped running. Cheyanne said they left that house with the clothes on their backs and a few other personal items. She will use this car to help get her and her sons to medical appointments, and her youngest to school. Shannon, a mother of three, received a 2016 Hyundai Elantra. She and her kids lost the home they were

FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

renting to wildfires in 2017. They have been living with Shannon’s parents since, but the home environment has become unhealthy for everyone and she is currently looking for a new place to live. Shannon had two older, unreliable vehicles, one of which was a 2006 Chevy Tahoe with 246,000 miles and was falling apart. Shannon currently holds one full-time job and two part-time jobs to cover living expenses. The gift of transportation will allow her to manage her children’s schedule and get to her jobs. Mike, a single dad, received a 2017 Toyota Camry. Since his separation, he has been trying to rebuild his life while keeping up with legal fees, fighting for his share of custody of the kids, working full time and juggling the kids’ extra-curricular activities. He drives a used truck he is struggling to afford. He was in need of reliable transportation so he can comfortably sell the truck he has a payment on without relying on friends and family for rides to maintain his job and his children’s quality of life. Eva received a 2017 Volkswagen Jetta and will be using it to make her life easier. Clara, a mom of three, received a 2018 Nissan Altima. She and her husband, Kristopher, and their three children are a blended family trying to get by with a vehicle that has been overheating and is constantly breaking down. She is working full time as a security guard at Graton Resort and Casino, while Kris has been staying home with their youngest son until he recovers from a recent surgery. Once all the follow-up doctor visits are completed, Kris will get back into the work force. The new vehicle will allow them to more effectively manage family life, jobs and medical visits. In addition to the vehicles, each recipient also received six months of full vehicle coverage from GEICO and six months of gas gift cards, six months of grocery gifts cards and $100 Target gift cards for each child to help make Christmas a little easier—all courtesy of G&C Auto Body and the Crozat Foundation. 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 NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38 million. The late Gene Crozat started the Crozat Family Foundation in 2004 and it’s still going strong. He used to like to say, “It is our responsibility to help our fellow men.” It started as a “Car-A-Month Giveaway” on various local radio stations and has grown into a foundation that provides support to the individuals and families they encounter when they meet through the company’s various car giveaways, according to the foundation’s website. There have been a few setbacks for the Crozat family since they lost their patriarch, but the business is still growing. Since Gene’s passing, the Crozat family has lost seven of their homes, which burned to the ground in two separate fires, including the house they all grew up in. One thing Gene taught his four children—Shawn, Josh, Jamie and Patrick—and his beloved granddaughter, Maddy, is to make helping people a priority. Crozat took philanthropy to the next level, giving people cars, cash and even jobs at one of his shops in some instances. The company has given away approximately 200 cars since it started the “Car-A-Month Giveaway” nearly two decades ago. “We hope to help the recipients get back on the road of life, giving a reliable ride and additional support to those who have fallen upon misfortune or endured catastrophic, unforeseen events,” Gene Crozat said when he established the program. “We strive to help create success where failure may have seemed inevitable.”

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Toyota Plans to Develop In-House Automotive Software Platform by 2025 by Joey Klender, Teslarati

Toyota is planning to launch its own in-house automotive software platform, which will handle minor, basic functions and advanced ones, like autonomous driving applications, according to a new report. Toyota’s Arene operating system will be the automaker’s push to compete with major companies like Tesla and Volkswagen, which have developed software platforms exclusive to their vehicles. Electric vehicles operate differently than traditional combustion engine vehicles and are much more complex. The software helps the vehicle stay up to date through updates, and computing keeps all of the vehicle’s parts working conjunctively and correctly. Developing software is not easy, and many traditional automakers have experienced problems with it. Volkswagen had major issues with its ID. platform in 2020 and 2021, and halted some

production because of it. VW has not expressed any widespread issues with its software recently. However, Toyota, which just recently announced a massive push into electrification after questioning the advantages of EVs, is now going to develop its own system, and it will do all of the things EV software should

do, like controlling the steering wheel, braking and accelerator components, but it will also be the key part of the company’s push towards autonomy. Toyota also plans to extend the software to its affiliate companies, and might even make it available to other developers, according to financial newspaper Nikkei Asia: “Toyota aims to put Arene in its own vehicles by 2025. Af-

ter that the automaker will make the software available to affiliates including Subaru, along with other manufacturers and startups working on electric or self-driving vehicles. The company is considering monetizing the system through a licensing model…Toyota will open Arene to other developers, encouraging companies from outside the industry to create applications for autonomous driving and other functions. The automaker envisions services from a variety of businesses being added to a car as easily as downloading smartphone apps.” As other developers earn or purchase the rights to use Arene, Toyota believes it will become more robust and effective. Toyota was previously rumored to be working with Apple on its highly-speculated electric vehicle, but discussions have not advanced since the September report. Additionally, Toyota and Subaru did collaborate to develop the Solterra EV, which was unveiled at the Los Angeles Auto Show in November.

SEMA Group Announces Rebrand The Young Executives Network (YEN), a SEMA group dedicated to cultivating talent in the automotive aftermarket, is now the Future Leaders Network (FLN). The new name more accurately reflects the network’s 1,142 membership, which includes employees ranging from entry-level staff to managers, and trade workers, executives and business owners. FLN Chair Nick Caloroso said the former Young Executives Network name did not accurately reflect the group’s membership. The new Future Leaders Network name puts the focus on the group’s purpose and goal: Growing and supporting individuals to become successful leaders, regardless of their actual job title or position. Membership is open at no cost to all employees under the age of 40 who work for a SEMA member company. Source: SEMA

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Industry Insight with John Yoswick

Do Automakers, Insurers See Auto Body Shops Meeting Both DRP and OEM Certification Requirements?

Shop Showcase

A panel during the Collision Indus- get your hands on.” try Conference (CIC) in November She said parts restrictions by included representatives of two au- the automakers are probably the with Ed Attanasio tomakers and two insurance compa- primary area where there’s “friction nies addressing a topic that repairers when a shop is trying to appease and others discussed at a previous both the carrier and the OE.” When CIC: can an auto body shop partic- those conflicts arise, she said, they ipate both in direct repair and OE are addressed “case-by-case,” based certification programs, and meet the on such things as “the contract that requirements of with both? Ed Attanasio we have with our customer” and “I would never say that’s im- state requirements. possible, but it is very difficult at “But there’s not too often that times,” said Ben Cid, collision busi- we can’t come to some sort of agreeness manager for Mercedes-Benz. ment,” she said. “There are shops that do it. When With CCC Intelligent Solutions you’re having to prove…why some- and others documenting changes in thing needs to be done a certain way, cycle time, “touch time,” parts costs with Ed Attanasio there’s a lot more time invested in and other metrics, are insurance doing that. Again, it’s not that it’s companies adjusting the key perforimpossible. But it definitely takes mance indicators (KPIs) by which a lot more time on the shop’s side they are measuring direct repair to really…prove what needs to be shops? done.” with Ed Attanasio In terms of cycle time and its Sandee Lindorfer, auto line di- impact on customer satisfaction, rector at Allstate, said she sees it as Lindorfer said insurers aren’t lookless of a challenge. ing for shops to compromise repairs “We have many [OEM-certi- to return vehicles faster. fied shops] within our Good Hands “We still want safe repairs, and Network,” she said. “Between our sometimes safe repairs take lonnetwork and the OEMs, we have ger for whatever reason may cause with Stacey Phillips more in common than we have dif- that,” Lindorfer said. “We’re not ferences. At the end of the day, we asking anybody to take a shortcut both want our customers to have a and not do what they should do.” safe and proper repair. I don’t think At the same time, she said, the that [needing to offer] proof of re- growth of ADAS and other technolpair procedures with is as great [an issue] ogy impacting repairs in late model Stacey Phillips as it may have been in the past when vehicles shouldn’t impact all claims repair procedures weren’t easy to given the average age of vehicles on

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the road is 11 years. “Let’s remember that not every car we repair is a new vehicle,” she said. “We need to be sure we’re repairing that vehicle, regardless of age, appropriately. As the market changes and we [see] more and more of the vehicles that are more complex, we’re going to see that the KPIs are going to change. We’ll change with those KPIs.” She said Allstate has adjusted cycle time measures “over the years because of the complexity of repairs,” and good communication between shops and insurers will resolve issues about vehicles that are “out of the ordinary.” “So I can’t speak for every insurer; I can only tell you that we do reevaluate KPIs regularly,” Lindorfer said. Dan Tessadri, auto physical damage business consultant for CSAA Insurance, concurred. “We look at the KPIs, at our scorecards, on a yearly basis,” he said. “We look at the market and the impact of the supply distribution and other factors like that.” But panelist Pete Tagliapietra of NuGenIT said those companies’ practices don’t synch with what he sees in the auto insurance industry as a whole. “When we look at scorecards and KPIs across the industry, some of those KPIs haven’t been updated

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in 10 years,” Tagliapietra said. “So repairers [on those programs] are being held to the same KPIs.” He also noted while the average vehicle may be 11 years old, the average age of repaired vehicles is between 6 and 7 years old. “That puts us at OBD-II and well into the new realm of technology as we know it today,” he said. “I think we need to consider that…You can’t look at KPIs based on the way we repaired cars in 1999, and hold [shops] to the same level, especially in terms of cycle time.” Aaron Schulenburg of the Society of Collision Repair Specialists also told the panel he’s always surprised and concerned when anyone suggests it’s not more challenging now than it’s ever been for shops trying to “appease both sides of the equation” when it comes to automakers and insurers, saying that’s the crux of nearly “every single call that I get every single day.” He said he appreciated the automakers and insurers who at least took part in the panel discussion because the committee struggled to find people willing “to sit on the stage to talk about the things that really matter.” “There should be more who do,” Schulenburg said. “If they’re not willing to, there’s a bigger issue in this industry that’s leading to shops being stuck in the middle.”

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Used Electric Car Prices Soared in 2021 with Stacey Phillips

that focus on EVs, said it was mainly stronger demand for elecWhile the new car market in the tric cars that drove up prices, U.S. declined 13.4% in 2021, used which came courtesy of a constant electric vehicle sales went up year- rise in consumers’ confidence, the over-year by an impressive 60%. reduced supply of vehicle prompt Prices of used EVs also went ed by the global chip shortage and up over thewith courseStacey of last year by other factors. Phillips more than 15%, and they remain “I look back at 2021 as an higher on average than prices of exciting year for electric vehiused ICE vehicles, although this cles in terms of overall market could just be because most EVs are growth, as well as the all-electric newer vehicles and usually more commitments from manufacturers expensive to buy. that will continue to spur adop Recurrent, industry analysts tion,” said Scott Case, CEO and by Andrei Nedelea, Inside EVs

My SEMA

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FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

co-founder of Recurrent. “If price comes from the tension between supply and demand, let’s hope the industry can produce more electric cars this year because people certainly want them.” Another important conclusion drawn by Recurrent from analyzing EV sales through 2021 was that one third of used electric vehicles could be purchased for less than $25,000 and half for less than $30,000. This means they are more accessible than ever to car buyers, and their popularity is only go-

ing up as prices come down even more. GM’s recall for the Chevrolet Bolt EV did have a strong negative impact on sales of this model on the used market. Sales were down 74% and the source suggests this could have been because Chevrolet bought as many of them as it could from dealers, in order to keep them off the street. The plant that builds the model is currently idle and production is not expected to restart any sooner than March.

‘Cheap’ Volkswagen ID.4 Coming ‘in the $35,000 Range’ by Mark Kane, Inside EVs

Volkswagen closed 2021 with almost 17,000 ID.4 sales in the U.S. but the number could be four times higher, according to the company’s representative. The company has more than 40,000 reservations but is supply constrained, as the cars are imported from Europe. “We could have sold four times that amount,” Volkswagen Group of America CEO Scott Keogh said via Automotive News. “What VW dealers are saying is that this is the most excitement they’ve had on the shop floor since 1998, when we brought the Beetle back.” Currently, the Volkswagen ID.4 is offered in RWD and AWD versions, with a single 82 kWh battery version. In 2022, the car will get an upgrade, including range, while the lineup will be expanded by a new, less expensive version with a smaller battery, probably 62 kWh or so. This new entry-level ID.4 with RWD will start at around $35,000.

That would be about $5,000 less than in the case of ID.4 Pro. The key element of Volkswagen’s expansion of the MEB-based electric cars is the Chattanooga, TN, plant, which will start production of the ID.4 later this year using battery cells from the new SK Innovation’s SK On plant in Georgia. It will not be enough to replace 100% of the imports at the beginning, and made-in-Germany ID.4s will be sold through 2022: “VW will continue to import ID4s into the U.S. from Europe as it ramps up local production of the BEV compact crossover in Chattanooga this year, with locally produced versions beginning to appear in dealerships in the second half of the year,” Keogh told Automotive News. The good news for more than 4,000 employees in Chattanooga is a 10% wage increase in 2022. The average return on sales in the Volkswagen dealer network in 2021, according to the article, was nearly 5%--three times more than in 2020. Hopefully, it will encourage to push electrification.

Rivian Ends 2021 with 1,015 Vehicles Produced, COO Retires from Company by Simon Alvarez, Teslarati

In a recent press release, Rivian announced it had officially produced a total of 1,015 vehicles by the end of 2021, 920 of which were delivered before the end of the year. The update comes as news emerged the company’s chief operating officer, Rod Copes, had retired from Rivian in December. Considering Rivian has only just started delivering its first vehicles like the R1T pickup truck, R1S SUV and its Amazon delivery van, the company’s 1,015 deliveries in 2021 is nothing to scoff at. Rivian announced before the end of the year it would likely fall “a few hundred vehicles short” of its 2021 vehicle production target, which was set at 1,200 units. The recent updates—particularly the departure of Copes— appear to have adversely affected RIVN stock. Rivian shares dropped about 2.3% in premarket trading on Jan. 11 as news of the COO’s departure spread online. As of writing, Rivian shares are trad-

ing at $80.93 per share, far below its all-time high in November when RIVN traded at nearly $180 per share, but still enough to give the company a market cap of more than $71 billion. The departure of Copes was extremely understated. While a company spokesperson told The Wall Street Journal the executive’s departure had been planned for months and his duties had already been absorbed by Rivian’s leadership team, there had been no press release announcing the retirement when Copes left in December. Rivian will likely have its hands full in 2022. The company is expected to ramp the production and deliveries of the R1T and the R1S. Deliveries of its Amazon electric delivery van are expected to increase as well. The electric truck market is also poised to become more competitive this year, with vehicles like the Ford F-150 Lightning and possibly the Tesla Cybertruck starting their customer deliveries sometime in 2022.

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Collision Repair Industry Thought Leaders Share Innovative Ideas During IDEAS Collide Showcase: Part 2 by Stacey Phillips

Total losses, the Database Enhancement Gateway, computer vision and sustainability were some of the topics discussed during the IDEAS Collide Showcase held during the 2021 SEMA Show. First introduced in 2018 by the Society of Collision Repair Specialists (SCRS) as part of its Repairer Driven Education (RDE) series, IDEAS Collide gives thought leaders from across the collision repair industry the opportunity to share innovative ideas. This year, eight speakers talked about creative ways to help the industry evolve. This is part two of a twopart series. Part one was printed in the January 2022 issue of Autobody News.

Sandy Blalock, executive director of the Automotive Recyclers Association (ARA).

Sandy Blalock, executive director of the Automotive Recyclers Association (ARA), talked about the shared challenge the industry is facing with an increase in total losses. She hopes the different segments can generate thought-provoking ideas on how to make meaningful changes. “No matter what side of the issue we are, there is a consumer who has suffered a loss and it’s our collective job to find a way to make them whole again,” said Blalock. “Jeff Peevy [previous CIC chairman] will always remind us never to forget that empty chair; we all serve the consumer.” Blalock said total loss frequency has been rising over the last several years in the U.S. According to CCC Intelligent Solutions’ 2021 Crash Course report, 20.5% of vehicles were deemed total losses in 2020. “This means that shops missed out on the chance to repair one in every five vehicles,” said Blalock. This is up from 15% in 2010. The average totaled vehicle in 2020 40

had an actual cash value of $10,444; the average repairable vehicle was worth $16,657. In addition, repair costs have also risen. As insurance adjusters determine whether a vehicle is repairable or declared a total loss, Blalock said a number of factors weigh into the decision, including supplements and parts availability. With more electric vehicles and cars with ADAS coming into collision repair facilities, Blalock said scanning and calibration will be required, adding additional costs to the repair and determining whether the car is a total loss. Repair vs. replace and salvage values will also play a role. She shared some of the downsides to total loss, including the consumer owing more on the vehicle than it’s worth and fewer vehicles being fixed by the professional repair industry and auto recyclers. “Total loss does not mean endof-life for a vehicle,” she said. “Repaired vehicles will be repaired by someone.” From her research, Blalock has found as many as one out of 325 vehicles on U.S. roads today may be operating with a fraudulent title that has been “washed” to disguise the vehicle’s actual damage, flaws or identity. Research shows one in five vehicles sold outside of licensed dealer networks are not legal private property car sales, but are illegal sales of curbstoned vehicles. “Curbstoning is essentially a flipping of vehicles often posing as a private seller,” she explained. “Many of these vehicles have been purchased at salvage auctions by unlicensed entities, repaired and usually not to any industry standard, then sold to some unsuspecting consumer looking for a good deal.” Blalock advises the industry to be aware of these issues and work together to come up with ways to address them. As the administrator for the Database Enhancement Gateway (DEG), Danny Gredinberg shared information about the free industry resource.

FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

The DEG was developed to help improve the quality and accuracy of collision repair estimates through proactive feedback from the collision repair industry and other “end users” to the Information Providers (IPs) that supply the databases for the various estimating products. It is created, equally funded and maintained by the Alliance of Automotive Service Providers (AASP) and SCRS.

Danny Gredinberg, administrator for the Database Enhancement Gateway (DEG).

With today’s estimating databases being large and complex, the task of building complete and accurate labor times and labor notes for vehicles can be challenging. All three information providers use a variety

of methodologies to develop labor values. Gredinberg said this can often result in information that does not reflect real-world labor requirements of a repair operation. As a result, it can hinder the ability of an estimator to produce accurate repair estimates or blueprints that match the repair process. The DEG is designed to offer estimating system users a more standardized and streamlined process for generating Database Inquiries (DI). “It can help anyone to improve an estimate whether it’s a repairer, technician or even a bill payer,” said Gredinberg. “If they find an error in omission or accuracy in any of three estimating systems, we can help address those concerns and get accuracy.” As the DEG administer, Gredinberg receives a lot of inquiries. One of the biggest challenges he sees is when a repairer writes an estimate in one database program and receives See Collide Showcase: Part 2, Page 47

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Advantage Parts Solutions Appoints Executive Advantage Parts Solutions, a global leader in delivering strategic automotive parts solutions, is pleased to welcome Paul Gange as president of North America to its global team of executive leadership. Gange joins the organization to accelerate the brand’s global sales and marketing strategy and vision throughout North American markets. Gange, a seasoned industry executive, joins as Advantage’s president of North America. In his role, he is responsible for the company’s operations throughout Canada and the U.S. Over his 25-year career, Gange held various executive roles, most notably as president and CEO of Fix Auto USA and with Mitchell International, an Enlyte company, and Audatex, a Solera company. He is an accomplished keynote speaker at many U.S. and international events and has held several advisory board roles with information providers, insurers and various industry organizations. Source: Advantage Parts Solutions

Tesla to Recall 356K Model 3 Cars with Malfunctioning Rearview Cameras by Joey Klender, Teslarati

Tesla is recalling more than 356,000 Model 3 vehicles based on potential issues owners may encounter with the rearview camera cable, which could be damaged when the trunk is closed. This can cause the camera to malfunction, documents state. The recall applies to 356,309 units, according to a Safety Recall Report shared with Teslarati by the NHTSA. Only 1% of the vehicles recalled are expected to have the defect, the documents state. It applies to Model 3 sedans manufactured between July 15, 2017, and Sept. 30, 2020. “The Model 3 trunk harness is equipped with a solid core coaxial cable that provides the rearview camera feed for visibility on the center display. Over time, repeated opening and closing of the trunk lid may cause excessive wear to the coaxial cable. If the wear causes the core of the coaxial cable to separate, the rearview camera feed is not visible on the center display,” the NHTSA’s description of the defect states.

The agency said excessive damage to the coaxial cable can cause the unavailability of the rearview camera. This risk “may affect the driver’s rearview and increase the risk of a collision. If there is a

Credit: u/Mr_Tank on Reddit

loss of rearview camera display, the driver can continue to operate the vehicle by performing a shoulder check and using their mirrors when backing,” the NHTSA added. It appears the damage to the coaxial cable is caused by a harness on the trunk lid, which extends or folds as the trunk opens or closes. While the trunk is in its closed position, the harness can fold and experience a tight bend radius over an extended period, “stressing the core

of the cable.” Owners can observe visible material wear on the harness to see if their car is affected. The wear can cause flickering or intermittent rearview camera visibility on the center display. The issues were first observed by the Field Quality team, which observed “a potential trend in trunk harness consumption in Service and initiated an engineering study.” The recall determination was made Dec. 14, after the investigation came to a close Dec. 10. The NHTSA observed 2,301 warranty claims and 601 field reports related to this malfunction between October 2017 and December 2021. Tesla is not aware of any crashes, injuries or deaths due to the malfunction. This is the third recall on the Model 3 in 2021, the first two being related to seatbelt and brake caliper bolt issues. It is the second recall Tesla issued Dec. 30, the other relating to a frunk hatch on the Model S sedan. Both recalls will be repaired by Tesla free of charge, the company said.

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GM Begins Deliveries of GMC HUMMER and BrightDrop EVs A new era begins Dec. 17 for General Motors with the deliveries of its first next-generation electric vehicles, the GMC HUMMER EV Edition 1 Pickup and BrightDrop EV600 light commercial vehicle, both built on the Ultium Platform. This dedicated EV architecture and propulsion system is the foundation for GM’s all-electric future, giving the company the capability not only to build an entire retail and commercial portfolio, but also leverage the technology to expand its business to non-automotive applications. With 30 all-new EVs planned globally through 2025, two-thirds of which will be available in the North America, Ultium will be the key driver of GM’s expansion and next phase of growth. “This is the first chapter for Ultium—and for GM’s transition to a zero-emissions future,” said GM President Mark Reuss. “Both commercial and retail customers will benefit from the EV experience, from exhilarating acceleration to low cost of operation, versatility and ability to customize after the sale. GM is ideally positioned to provide EVs for every customer in every segment, retail or commercial.”

The Ultium Platform will: Enable GM to make nearly every type of vehicle—across its different brands and up and down the portfolio—by building everything from affordable, high-volume crossovers and passenger cars to full-size pickups and SUVs, performance and commercial vehicles. Feature competitive range, performance and overall customer-friendly integration of components compared to designs that retrofit electric propulsion systems to existing internal combustion vehicle frameworks. Greatly reduce proliferation of parts combinations used in today’s internal combustion lineups, helping enhance EV profitability. Enable mobility beyond GM’s own portfolio through third-party licensing of its EV technology, co-development agreements and partnerships. GMC HUMMER EV The Ultium Platform also helps GM innovate in core areas like the interdependent body frame and battery structure of its all-new EVs. The GMC HUMMER EV Pickup’s combined battery pack and body

structure allows outstanding off-road proportions, strong protection of the vehicle’s battery, which doubles as a stiffening member of the body, and enough stability to enable features like removable Infinity Roof panels that would have been difficult to achieve on a conventional pickup. BrightDrop EV600 In addition to enabling dynamic allnew vehicles like the GMC HUMMER EV off-road supertruck, Ultium is helping GM to grow its business in new ways. BrightDrop, the new tech startup from GM, is on a mission to reimagine commercial delivery and logistics for an all-electric future through products like the EV600 light commercial vehicle. Ultium will allow BrightDrop to rapidly accelerate toward electrifying last-mile delivery and reduce vehicle emissions while also helping other companies meet their sustainability targets. BrightDrop is delivering its first EV600s to FedEx beginning Dec. 17, moving from concept to market introduction faster than any other GM vehicle in history.

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Ultium Ship-To-Commerce Factory ZERO in Detroit and Hamtramck, MI, will assemble multiple Ultium-based vehicles, including the fully autonomous Cruise Origin purpose-built for driverless ride hail and delivery, the GMC HUMMER EV Pickup and SUV, the Chevrolet Silverado EV and the recently announced GMC electric Sierra Denali. GM continues to expand and reimagine its manufacturing and development footprint, bringing together high-scale vehicle production expertise established over more than a century and passion to become a leading technology company. More than $4 billion has been invested specifically in EV production and another nearly $5 billion has been spent on battery cell manufacturing targeting at least 140 gigawatt hours of cell-making capacity in the U.S. GM’s next Ultium-based vehicle, the Cadillac LYRIQ, is expected to launch as scheduled in the first half of 2022 and will be assembled in Spring Hill, TN. The Chevrolet Silverado EV officially debuts in January at CES. Source: GM

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BMW’s New Car Changes Color ‘With the Touch of a Button’ by Grant Currin, Interesting Engineering

Personalization and self-expression are turning out to be major themes at CES 2022. BMW’s big announcement Jan. 5—a technology that changes the color of a car with the touch of a

duction model of the iX Flow will be available soon, but vehicles with color-changing paint won’t be hitting showroom floors at car dealerships for quite a while—if they ever do. BMW described the chameleon-like exterior as an “advanced research and design project.”

A concept version of BMW’s iX Flow with color-changing paint. Credit: Interesting Engineering

button—shows the storied German automaker understood the assignment. The company unveiled the tech on a concept version of its new 100% electric iX Flow SUV. A pro-

The color-changing paint is a new, flashy application of a familiar technology. Electronic ink, which enables the “electric paper” technology that powers e-readers like Amazon’s Kindle, drives the paint

BMW unveiled Jan. 5. The ink is impregnated with microcapsules, about as thick as a human hair. White pigments within these microcapsules are negatively charged, and black pigments carry a positive charge. Input from the user shifts the electric field around the capsules, nudging some of the pigments to the surface where they change the color of the paint. The technology is currently available in black, white and a few shades of gray. “This [technology] gives the driver the freedom to express different facets of their personality or even their enjoyment of change outwardly, and to redefine this each time they get into their car,” according to Stella Clarke, who led the project within the company. BMW also pointed to more practical applications. Since white paint reflects light, it could keep interiors cooler in hot weather, reducing the amount of energy needed for air condition. Black, on the other hand, absorbs light and could reduce the amount of power needed to keep a vehicle comfortably warm.

ASE Celebrates 50th Anniversary The National Institute for Automotive Service Excellence (ASE) has kicked off a yearlong celebration of its growth and many milestones achieved since its founding in 1972 by industry leaders who sought to recognize competent professional technicians and the repair facilities where they are employed. For half a century, ASE has worked to improve the quality of vehicle repair and service by testing and certifying automotive professionals, becoming the renowned independent non-profit organization striving to uphold and promote high standards of vehicle service and repair. From its initial offering of four automobile tests in 1972, ASE today offers 57 tests and certifications from automobile and medium-heavy truck to transit and school bus, collision repair, parts, military and others. More than a quarter of a million individuals currently hold ASE certifications in these areas of the transportation industry. Source: ASE

Collision Engineering Program Gets Grant The Collision Engineering Program has received a $700,000 grant from ECMC Foundation to support the growth and expansion of the industry-leading program’s efforts. With foundational support provided by the Enterprise Holdings Foundation, the program is designed to attract and develop entry-level talent to fill essential roles within the collision repair industry and enhance retention and advancement.With nearly 100,000 new entrant collision technicians needed between 2021 and 2025, according to the TechForce Foundation, the Collision Engineering Program addresses the ongoing technician shortage and skills gap. The program replicates Ranken Technical College’s unique two-year apprenticeship model at schools across the U.S., preparing students for success by treating them as professionals from day one. Students gain real-world education working alongside industry experts while also earning their associate degree. Source: Enterprise Holdings 44

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Volkswagen will Launch EV Bus on ID. Platform March 9 German automaker Volkswagen will launch an all-electric take on its famous microbus from the 1950s on March 9. The all-electric Volkswagen ID.BUZZ will be the latest edition to the automaker’s expanding fleet of electric cars.

“We want to make Volkswagen the most desirable brand for sustainable mobility. The ID. BUZZ embodies this like hardly any other model,” VW brand CEO Ralf Brandstätter said. The ID.BUZZ will, of course, use Volkswagen’s MEB platform that has powered vehicles like the ID.3 and ID.4, which

Volkswagen Auto Group CEO Herbert Diess tweeted Jan. 6 that “The Legend returns on 03/09/22!” The graphic then showed an outline of the all-electric VW ID.BUZZ, which will be officially unveiled in about two months.

have been widely popular in the European region. Details regarding the vehicle are relatively scarce; Volkswagen didn’t offer an official press release or any media attention other than the listed tweets to give direction to the

by Joey Klender, Teslarati

vehicle’s imminent unveiling. We do know the vehicle will be released in the U.S. in 2023. Pricing options are not currently available, and there are no indications of how many trims or configurations Volkswagen plans to offer. However, writers at automotive publication Car and Driver believe the van could start at around $40,000. Volkswagen has made a valiant effort the past few years to expand its lineup of all-electric vehicles. Instead of pushing EVs out on a non-dedicated platform, as it did with the VW e-Golf, Volkswagen began developing the ID. platform several years ago. It had its kinks early on, but Diess has stressed the importance of software in the coming age, along with the crucial nature of an accelerated push to electrification. It has not won Diess many fans involved with German unions, but it has helped the automaker remain relevant as Tesla leads the industry, and other legacy companies, like Ford, continue to advance their platforms and product lines to be more competitive.

Boyd Group Completes CEO Plan Boyd Group Services Inc. on Jan. 4 announced the completion of its CEO succession plan, first announced in August 2019. Effective Jan. 2, 2020, Brock Bulbuck moved into an executive chair role, and Tim O’Day succeeded Bulbuck and became president & CEO. Bulbuck remained in the position of executive chair for a two-year term to support the transition. On Dec. 31, this term came to an end. Bulbuck will remain a part of Boyd Group Services Inc. as he continues to serve as a director on the board. “I would like to acknowledge Brock’s retirement from management at Boyd,” said O’Day. “Brock’s dedication and drive during his 28 years at Boyd were instrumental in building the business and consistently achieving the company’s growth goals.” Source: Boyd Group Services Inc.

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Energy Commodity Prices Increased by 59% in 2021, EIA Reports by Bethany Blankley, The Center Square

The prices of energy, crude and gasoline all increased in 2021 from 2020, the U.S. Energy Information Agency reported. Prices increased because of higher demand and a range of other factors. By the end of 2021, commodities on the energy index traded 59% higher than they did on the first trading day last year on the S&P Goldman Sachs Commodity Index (GSCI), the EIA reported. GSCI is a commodity index that tracks the performance of global commodities markets. It’s a weighted average that’s updated every year. In 2021, the energy index comprised 54% of the GSCI, with the two crude oil benchmarks, the West Texas Intermediate (WTI) and Brent, accounting for approximately 70% of the energy index. WTI crude oil accounts for the largest share of the overall GSCI of more than 21%. Most GSCI commodity indexes increased by roughly 20%, with only the precious metals index declining in 2021. On a percentage basis last year, the energy index increased by more than double than the industrial metals index did. The only GSCI commodity

that increased more than the energy index was coffee. Prices for petroleum products RBOB and ULSC increased the most in 2021, trading higher by 67% and 64%, respectively, compared to 2020. RBOB is a reformulated grade of gasoline used as the benchmark for gasoline trading; ULSD is ultra-low sulfur diesel used as a benchmark for heating oil trading. Prices for crude oils on the WTI and Brent increased slightly less, by 62% and 55%, respectively, in 2021. Several factors contributed to the higher energy commodity prices last year, the EIA noted, including weather disruptions such as the February freeze in Texas and Hurricane Ida, which greatly impacted production in the Gulf. Other factors included increased demand for gasoline and diesel and an ongoing demand for crude oil and natural gas greater than the rate of production. Crude oil prices increased in 2021 with the spot price of Brent crude trading at $50 a barrel at the beginning of the year, increasing to $86 a barrel by late October. The 2021 Brent annual average of $71 a barrel was the highest it had been in the past three years. The

WTI’s average was $3 a barrel less than Brent’s in 2021. According to EIA’s December 2021 Short-Term Energy Outlook estimates, U.S. crude oil production in 2021 decreased by 0.1 million barrels a day from 2020 and by 1.1 million barrels a day from 2019. The EIA also estimated petroleum inventories decreased by 469 million barrels globally in 2021, “likely the largest annual inventory withdrawal since 2007.” Rising crude oil prices and increased gasoline demand also contributed to the highest national average price for retail gasoline since 2014. The national average increased to $3.01 a gallon in 2021, with retail gasoline increasing by more than a dollar a gallon over the course of the year. At the beginning of 2021, the national average retail gasoline price was $2.25 a gallon. It then passed the $3 a gallon mark on May 17 after disruptions to the Colonial Pipeline. Gas prices continued to increase throughout 2021, with the average price peaking at $3.41 a gallon Nov. 8. The average retail price was $3.28 a gallon by the end of the year, more than a dollar more than it was at the start of the year, EIA reported. The lowest average of $2.67

a gallon was in the Gulf Coast states, with Texas reporting some of the lowest gas prices all year. The highest average of $3.70 a gallon was on the West Coast, with California reporting some of the highest gas prices. From Jan. 4 to Dec. 27, 2021, retail gasoline prices increased by 88 cents a gallon in the Midwest, $1.20 a gallon in the Rocky Mountains and $1.32 a gallon on the West Coast, the EIA reported. The spike in prices in the Rocky Mountains and West Coast resulted from refinery closures in those regions, which led to reduced output of gasoline and lower gasoline inventories, the EIA noted. Less production was compounded by the fact that demand increased due to more visitors traveling to national parks, also putting a strain on already lower gasoline inventories, causing prices for delivery and prices at the pump to go up. One major contributor to high retail gasoline prices last year was high crude oil prices, the EIA pointed out. The average crude oil price for 2021 was the highest it has been since 2018, due to reduced U.S. refinery capacity, and low gasoline inventories that couldn’t keep up with demand.

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Collide Showcase: Part 2 an insurance company estimate from another database program and nothing matches. “The reality is that we’re never going to get an exact result from three different database products,” said Gredinberg. “They all talk differently and have different logic and P-pages. They will never line up to each other.” He said it’s the estimator’s job to understand the system they are using in order to explain and justify the estimate to the vehicle owner. Gredinberg encourages repairers to talk to vehicle owners on the front end, use the estimating system the way it is intended, and capture all of the included and non-included items. “At the end of the day, the goal is for the consumer to get their vehicle fixed with the least amount of friction possible,” he said. Gredinberg strongly encourages the industry to share any database by submitting a database inquiry: https:// degweb.org/deg-database-parent/ submit-a-database-inquiry.

Pete Tagliapietra, product director at NuGen IT, an OEC Company.

Pete Tagliapietra, product director at NuGen IT, an OEC Company, talked about leading-edge technologies, such as machine learning, computer vision, robotics automation and artificial intelligence (AI). “What’s unfortunate to me is how these technologies seem to be left behind as far as collision repairers are concerned,” said Tagliapietra. He challenged collision repairers to think outside of the box. Tagliapietra shared an idea of using these technologies to capture images of a damaged vehicle and immediately access all of the OEM information required by a collision repairer to repair it. In the current environment, Tagliapietra said repairers have access to individual OEM repair informa-

tion through the manufacturers’ websites. However, each OEM has its own format, and repairers often don’t know what to look for and where to find it. Alternatives include accessing information through OEM 1Stop; a third-party provider, such as ALLDATA or Identifix; or via estimating systems repair lines. He talked about the possibility of accessing OEM repair information via computer vision. In this scenario, digital images of the vehicle damage would be uploaded to a computer vision central server. Once the images are analyzed, a collision shop could have the information available through the OEM website or a third-party provider within seconds. “The premise of the idea is to give collision repairers all of the information needed to create a complete blueprint of the automobile before the estimate is written,” explained Tagliapietra. In addition, reporting capabilities would be available. “Over time, you would be able to look at a certain year, make and model and understand what repair procedures are typically being used to repair that vehicle.” Tagliapietra said all of this is possible with the technology available today. “When you look at all of the different repair information opportunities, none of them bring all of the information that you need as a collision repairer to have access to them,” he said. By using computer vision, Tagliapietra said collision repairers would immediately know all of the necessary repair procedures to include if a pre-and post-scan is required, as well as a recalibration. They would also have access to manufacturers’ position statements before writing the estimate and repairing the vehicle. He encourages the industry to leverage the same technology used by other industries, such as insurance. “Dreaming big is something we need to do in this industry,” said Tagliapietra. “Otherwise, we’ll fall behind and, in some cases, fall further behind.” Michael LoPrete, vice president of global operations at Plastfix Inc., talked about sustainability and the future impact on collision repairers. LoPrete shared a broad defini-

tion of sustainability, which he described as meeting the needs of the present without compromising future generations’ ability to meet their needs. “I think about sustainability as a journey to a place where we are able to complete vehicle repairs while

Michael LoPrete, vice president of global operations at Plastfix Inc.

eliminating all of our current waste streams,” said LoPrete. “I don’t think that there is a point that we’ll ever be finished.” He shared what he referred to as the 3R’s of sustainability, in order of importance: reduce, reuse and recycle. Examples of reduce include repairing something rather than replacing it, and conducting online training rather than incurring travel time. Reuse also refers to repair vs. replace, and LoPrete used the example of purchasing a new cell phone as soon as it is introduced, even if a person’s current device is working perfectly well. Recycling is often the first thing that comes to mind when people think of sustainability, but LoPrete said it has the smallest impact on sustainability initiatives. He introduced the term “recoverability,” which he described as an item that has the capability of being recycled and then converted to a new product of the same type, such as glass or aluminum. “The recoverability rate on those items is nearly 100%,” he said. With plastics, recoverability is less than 5% and includes specific products such as water and soda bottles. The automotive aftermarket is reportedly the No. 2 generator of polypropylene waste globally and recoverability is close to 0%. LoPrete said green consumers are driving the increased awareness of sustainability, and Greta Thunberg is a leading spokesperson for Generation Z. “Generation Z looks at the world through the lens of the sustainability triple bottom line, which includes economy, environment and society,”

he said. “Every decision they make tends to have filters that pass through all three of those things.” Many say Generation Z is demanding industries be more responsible and accountable for their actions. “The ones who do it in a meaningful way are positioning their businesses well to move forward,” he said. “The ones who delay taking action will have to catch up eventually because that segment of the population is only going to become a larger and larger piece of the audience out there.” Moving forward, LoPrete encourages industry stakeholders to work together and make sustainability part of their strategic thinking to reduce the amount of waste being generated while still producing safe repairs. “While we can do things individually that will make a difference, the reality is that the greatest impact will come if we work together,” he said. “Sustainability needs to be a topic of discussion; it can’t be left undiscussed.” He challenged the industry to do the following: • Make sustainability an agenda item during meetings • Appoint a subject matter expert within your organization • Track and record your current waste and look at trends • Identify pathways for improvement • Involve other stakeholders in your conversations • Share initiatives broadly across your organization “If we begin thinking about sustainability from this perspective, we can make progress that will shape legislative actions, rather than being subjected to requirements from outside of our industry,” said LoPrete. “There will be winners and losers across the stakeholder chain. The green consumer will make sure that happens. They will support the ones that make the right choices.” Learn more about the SCRS Repairer Driven Education series: https://rde.scrs.com.

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February 2022 Southeast Edition

Articles inside

Top Electric Car Predictions for 2022

in 2021, EIA Reports

and BrightDrop EVs

Gene Crozat’s Legacy of Giving

of Consulting

Insurance Adjusters of the Future

Collide Showcase: Part 2

Estimating ‘Not There Yet’