Southeastern March 2015 Issue by Autobody News

Southeastern Edition Florida Georgia Alabama Mississippi

Virginia Tennessee North Carolina South Carolina

YEARS

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Industry Responds to CNN Segment Exposing “Steering” & Use of “Sub-par” Parts by Stacey Phillips, Assistant Editor

The recent CNN news report about the collision repair industry gave viewers an inside look at the challenges body shops face in order to repair cars safely for consumers. It aired on the Anderson Cooper 360 show Feb. 11. The 11-minute segment, entitled “Auto Insurers Accused of Pushing Cheap and Sometimes Dangerous Repairs,” explained the widespread use of “salvaged” or aftermarket parts as well as the practice of insurance companies “steering” work away from

certain shops that aren’t part of their select service programs. In addition, the program discussed the lawsuits filed by more than 500 body shops in 36 states against the top insurance companies in the country to address their concerns. “This was just another validation of, as CNN put it the ‘scheme’ that’s going on within the insurance industry and anyone associated with them. It also validates what shops all around the country have been seeing and dealing with for years,” said Ron Perretta, owner of Professionals Auto

2015 Ford F-150 Long-Term Road Test

The following article was written by Travis Langness, Associate Editor at Edmunds.com. It was published on Jan. 26 and has generated a lot of commentary online. Since many readers heard only about the reaction to the story we reprint the article here with permission of Edmunds.com.

VOL. 6 ISSUE 1 MARCH 2015

Aluminum Body Repairs Part 1 I hit our brand-new long-term 2015 Ford F-150 4X4 SuperCrew with a sledgehammer. On purpose. Twice. We bought the $52,000 F-150 from Galpin Ford in Van Nuys, California. The day after the truck was delivered to our Edmunds office in Santa Monica, I went to work with the BFH, See 2015 Ford F-150, Page 22

See CNN Segment, Page 20

Large Portion of Antitrust Multidistrict Litigation in FL Dismissed, Refiled by Plaintiffs

See Multidistrict Litigation, Page 32

P.O. BOX 1516, CARLSBAD, CA 92018

Judge Gregory Presnell in Florida has dismissed a large portion of a lawsuit in multidistrict litigation court accusing State Farm Mutual Automobile Insurance Co. and 40 other insurers of conspiring to suppress reimbursement rates for vehicle damage repair costs. However, the plaintiffs have already refiled claims that were dismissed without prejudice. John Eaves of Eaves Law Firm in Mississippi, the lead lawyer for the plaintiffs, said this was not a surprise. “We anticipated [the dismissal],” said Eaves. “This is what was done the

first time we filed a complaint in Florida.” “My interpretation is that [Judge Presnell] wanted a lot more of the actual facts and details in the complaint… instead of something so general,” Eaves told Autobody News. However, the ruling may be a setback for hundreds of other auto repair shops alleging similar claims against insurers in the multidistrict litigation in the District Court. Shops across the country have provided Eaves with an abundance of information that he has now incorporate into the revised complaint. He said it is a longer document, much more de-

Change Service Requested

by Stacey Phillips, Assistant Editor

Travis Langness, Associate editor at edmunds.com, takes a sledgehammer to a brand new aluminum Ford F-150 to test the collision repair process. Photo credit: Edmunds.com

Attempt by Edmunds.com to Investigate Aluminum Repair Rates Runs into Controversy by Stacey Phillips, Assistant Editor

A recent video and transcript released by Edmunds.com has caused controversy in the industry. During the twominute video, Travis Langness, the Assistant Editor at Edmunds.com, hit a brand new 2015 Ford F-150 with a sledgehammer. Twice! Ouch, said several industry players, but it wasn’t just about the damage to the truck. His intent? To find out if it takes longer to repair the aluminum-bodied truck than a steel-bodied one and, perhaps, belatedly, to compare the costs involved. Langness drove the F-150 to the body shop at Santa Monica Ford in greater Los Angeles to put it to the test. After going through the re-

pair process, and admitting in his article that he had misrepresented the nature of the damage, he concluded that it took more time to fix the aluminum body panels and cost more money than repairing steel. The original version is reprinted with permission from Edmunds.com on the cover. Autobody News asked Edmunds.com for further comment. “As with any vehicle in Edmunds’ LongTerm testing fleet, our F-150 experiment was designed to simulate a service experience of any regular truck owner,” said Scott Oldham, Editor in Chief at Edmunds.com. “Like many of these owners, we took our vehicle to the nearest Ford dealership for the reSee Aluminum Repair Rates, Page 26

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

2 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

Contents Drivers, Suit Claims . . . . . . . . . . . . . . . 11

The State of I-CAR . . . . . . . . . . . . . . . . 42

Franklin - New Century Marketing Basics . 46

5 People Sent to Hospital After Crashing

Luehr - Cycle Time Success Using

ARA Applauds Dismissal of Lawsuit

Luehr - Make More Money Using

Arrests Made in Multi-County Auto Theft

Sisk - GCIA Donates $2,000 to

ASA Meeting To Be Held April 20-22

Yoswick - Testing Shows Dramatic

into FL Body Shop . . . . . . . . . . . . . . . . 11 Against West Virginia Body Shop . . . . . . 4 Ring in Florida, 30 More At Large . . . . . 14 in Washington D.C. Area . . . . . . . . . . . . 6

Cool Wheels Show in FL Helps

Youth Center . . . . . . . . . . . . . . . . . . . . . 8

Little’s Law . . . . . . . . . . . . . . . . . . . . . 48 Theory of Constraints . . . . . . . . . . . . . 40 Maxwell High . . . . . . . . . . . . . . . . . . . . 30 Differences in Isocyanate-Blocking

by Spraysuits. . . . . . . . . . . . . . . . . . . . 44

CREF Hosting Open House for Atlanta, GA,

NATIONAL

GA Attorney General Hosts ‘Truckers

3M Awards Tool Grants to Veterans

Makeover School During CIC Meeting . . 6 Against Trafficking’ Training . . . . . . . . . 12

Head of Tech College in GA Pleads

Guilty to Stealing $25K . . . . . . . . . . . . 11

Hollander to Hold Regional Customer

Training Seminar in Atlanta, GA . . . . . . 10

Jacksonville, FL, International Auto Show

Hosts 30 OEMs . . . . . . . . . . . . . . . . . . 10

Jessica Smith of Shelbyville, TN, Blazes

2015 Ford F-150 Long-Term Road Test . . . 1 Through CREF and Hire Our Heroes

Program . . . . . . . . . . . . . . . . . . . . . . . 53

AASP/NJ Hosts NORTHEAST 2015 Automotive Services Show

March 20-22 . . . . . . . . . . . . . . . . . . . . 36

Attempt by Edmunds.com to Investigate Aluminum Repair Rates Runs into

Controversy. . . . . . . . . . . . . . . . . . . . . . 1

Trails in the Body Shop . . . . . . . . . . . . 16

Bobby Alloway’s PPG-Painted Car Wins

Litigation in FL Dismissed, Refiled

Car Purchases Expected to Soar in 2015 . . 49

Large Portion of Antitrust Multidistrict

2015 AMBR Award . . . . . . . . . . . . . . . 51

by Plaintiffs . . . . . . . . . . . . . . . . . . . . . . 1

Chicago Foundation Looks to Help Women

of Driverless Cars . . . . . . . . . . . . . . . . . 8

Dale Delmege Passes Away Leaving

Miami, FL, Drivers . . . . . . . . . . . . . . . . 14

Diamond Standard Parts’ New Web-Based

in VA Auto Sales Yard . . . . . . . . . . . . . . 8

Forget the Bandwagon, DePetro Drives the

Repair Education . . . . . . . . . . . . . . . . . . 4

I-CAR® Hybrid and Electric Vehicle

Center in Florida. . . . . . . . . . . . . . . . . . . 4

Industry Responds to CNN Segment

NC Wants “Open Dialogue” on Possibility Police Cracking Down on Uninsured Police Investigate Suspicious Death

PPG Helps FTCC in NC Excel in Collision Service King Acquires Jack’s Collision South Carolinians Paying Higher Auto

Insurance Rates. . . . . . . . . . . . . . . . . . 12

Well-Known TN Technician Dies

Unexpectedly . . . . . . . . . . . . . . . . . . . . 12

COLUMNISTS

Attanasio - Instagram and Twitter Grow Up . 50

and Children Across the Country . . . . . 34 a Lasting Impact . . . . . . . . . . . . . . . . . . 3

Program “UNSUB” . . . . . . . . . . . . . . . . 53

Denver Broncos Classic Pickup Truck. . 52

Disable Search . . . . . . . . . . . . . . . . . . 39

Exposing “Steering” & Use of

“Sub-par” Parts. . . . . . . . . . . . . . . . . . . 1

Night-Time Automotive Paint Additive Has

Vehicles Glowing and Owners Crowing. . 18

Sherwin-Williams Second Quarter

Training Schedule . . . . . . . . . . . . . . . . 47

Management Group, his own firm, Dale stayed active in the industry by advising and consulting with companies as diverse as Hertz and VeriFacts. VeriFacts CEO, Farzam Afshar, has said VeriFacts implemented the Dale Delmege Award to recognize Dale’s significant and lasting contributions throughout each segment of the collision repair industry. The award recognizes a collision repair center consistently producing and delivering verified repair quality. “I know of few people as committed to, and influential in, their pursuit of the long term betterment of our industry than Dale Delmege,” said Afshar. “I was pleased to be able to recognize the scale of Dale’s contributions over the years by naming our ACE Award for the exceptional collision repair center the Dale Delmege Award.” Dale is survived by his wife Mary, his five children: Laura, Diana, Dale Jr., Mark and Caleb; and his eight grandchildren, as well as his sister, Leslie McDonald. Autobody News extends heart-felt condolences to his family. Dale requested that the Children’s Skin Disease Foundation, www.csdf.org, receive gifts of donations in lieu of flowers. Memorial services have not yet been announced by the family. Dale’s Autobody News columns can be read at http://www.autobodynews.com /columnists/dale-delmege.html

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Allan Vigil Ford-Lincoln . . . . . . . . . . 14 Arrigo Dodge-Chrysler-Jeep-Ram . 18 Assured Performance . . . . . . . . . . . 16 Athens Dodge-Chrysler-Jeep-Ram. . 4 Automotive Art . . . . . . . . . . . . . . . . . 5 Axalta Coating Services . . . . . . . . . 55 BMW Wholesale Parts Dealers . . . . 51 Car-Part.com . . . . . . . . . . . . . . . . . . 18 CarcoonAmerica Airflow Systems . 26 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 37 Chief Automotive. . . . . . . . . . . . 15, 19 Classifieds. . . . . . . . . . . . . . . . . . . . 54 Coggin Deland Honda . . . . . . . . . . 12 Crown Automotive Group . . . . . . . . 23 Dent Magic Tools . . . . . . . . . . . . . . 22 Diamond Standard Parts, Inc . . . . . . 9 DJS Fabrications, Inc.. . . . . . . . . . . 56 Don Reid Ford. . . . . . . . . . . . . . . . . 34 Equalizer Industries, Inc . . . . . . . . . 20 Ford Wholesale Parts Dealers FL, VA, GA, AL, MS. . . . . . . . . . . 47 GM Wholesale Parts Dealers . . . . . 49 Gus Machado Ford . . . . . . . . . . . . . 32 Hendrick Automotive Group . . . . . . 17 Hendrick BMW/MINI . . . . . . . . . . . . 39 Hendrick Honda Bradenton . . . . . . 30 Herkules . . . . . . . . . . . . . . . . . . . . . 21 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 27, 28-29 Hyundai Wholesale Parts Dealers. . 48

Serving Florida, Georgia, Alabama, Mississippi, 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. ©2015 Adamantine Media LLC.

Autobody News

Southeast

‘Exorbitant’ Hospital Charges Rob Florida

Attanasio - Strong and Getting Stronger:

Dale Delmege, a long-time industry veteran and staunch advocate for repair quality and responsibility passed away on the evening of February 15 at home in Escondido, CA, with friends and family present. Dale occupied many management and supervisory roles in the industry and was active in numerous associations designed to protect and promote excellence in collision repair. His legacy and wisdom will be long remembered. Dale was a Renaissance man with many and varied interests including poetry, music, acting, and art, in addition to serving and world travel in the U.S. Navy. Dale was Collision Industry Conference (CIC) Chairman 1999–2000. He is a Hall of Eagles member and a National Auto Body Council Founding Member and Director. Dale was also founder, past director and chairman of the Collision Industry Electronic Commerce Association (CIECA). He was recently made a lifetime member of the Society of Collision Repair Specialists (SCRS), one of only two such awards ever given by SCRS. In addition to writing a column for Autobody News, Dale wrote and commented widely for a number of other trade publications. Most recently the director of Chelsea

Indexof Advertisers

REGIONAL

Dale Delmege Passes Away Leaving a Lasting Impact

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

Jon Hall Chevrolet . . . . . . . . . . . . . 44 Kernersville Chrysler-DodgeJeep-Ram . . . . . . . . . . . . . . . . . . 41 Kia Motors Wholesale Parts Dealers. 45 Lexus Wholesale Parts Dealers . . . 53 Malco. . . . . . . . . . . . . . . . . . . . . . . . 13 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 46 MINI Wholesale Parts Dealers . . . . 51 Mirka Abrasives, Inc . . . . . . . . . . . . 11 Mitsubishi Wholesale Parts Dealers . 50 MOPAR Wholesale Parts Dealers . . 33 Nalley BMW. . . . . . . . . . . . . . . . . . . 36 Performance Automall . . . . . . . . . . 35 Porsche Wholesale Parts Dealers . 52 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Priority Honda . . . . . . . . . . . . . . . . . 40 Radley Chevrolet. . . . . . . . . . . . . . . 24 Replica Plastics. . . . . . . . . . . . . . . . 42 Rick Hendrick Dodge-ChryslerJeep-Ram. . . . . . . . . . . . . . . . . . . 10 Safety Regulation Strategies . . . . . 34 SATA Spray Equipment . . . . . . . . . 25 Subaru of Gwinnett . . . . . . . . . . . . . 38 Subaru Wholesale Parts Dealers . . 43 Tameron Hyundai . . . . . . . . . . . . . . 38 Toxic Toad . . . . . . . . . . . . . . . . . . . . . 8 UniCure Spraybooths . . . . . . . . . . . . 7 Urethane Supply Company . . . . . . . 6 Valspar Automotive . . . . . . . . . . . . . 31

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 3

ARA Applauds Dismissal of Lawsuit Against West Virginia Body Shop The Automotive Recyclers Association (ARA) applauded the recent ruling by a West Virginia judge to dismiss a lawsuit filed in December 2011 by

then-Attorney General Darrell McGraw. The case attacked a collision repair facility’s utilization of recycled OEM parts. The ruling in Kanawha County follows the June 2014 ruling by the West Virginia Supreme Court of Appeals that also affirmed the use of salvage/recycled OEM crash parts in vehicle repairs. While this specific litigation has been going on for several years, the final ruling ends decades of mischaracterizing recycled, OEM parts as aftermarket in the state of West Virginia. In December 2011 the state of West Virginia filed a complaint and petition for injunction against Liberty Mutual Insurance Company and Greg Chandler's Frame & Body, LLC, alleging that the defendants violated the

PPG Helps FTCC in NC Excel in Collision Repair Education

PPG Automotive Refinish has been involved in an associate degree program in collision repair and refinishing technology at Fayetteville Technical Community College (FTCC) in Fayetteville, NC. On February 4, PPG, along with other collision industry leaders celebrated the dedication of a new 25,000-square-foot collision center that houses the program on the FTCC campus. To learn more about the PPG training courses that will be offered at FTCC, call (800) 647Paul Gage, director 6050 or visit the of the I-CAR PPG Automotive Collision Repair Refinish website program at FTCC, at: www.ppgrein front of the finish.com new collision For more center. Photo about Fayetcredit: PPG teville Technical Community College and the associate degree program in collision repair and refinishing technology, go to: www.faytechcc.edu.

state’s Automotive Crash Parts Act and Consumer Credit and Protection Act. The car insurance company was repairing new vehicles using salvage crash parts without obtaining the written consent of the motor vehicle owner at the time of the repair. The Crash Parts Act requires body shops and insurance companies to disclose to vehicle owners the use of certain replacement crash parts in repairs conducted within three years of the repaired vehicle’s original manufacture date, as well as written consent from the vehicle owner to use aftermarket crash parts and the distribution of a statutory notice to the owner that aftermarket crash parts have been used. In a January 3, 2012 letter to thenAttorney General Darrell McGraw, ARA expressed disappointment about statements published by McGraw’s office regarding “recycled”/”salvaged” automobile parts, specifically objecting to references classifying recycled/salvaged parts to “junkyard parts.” “The AG’s derogatory and misleading characterization of recycled/salvaged automobile parts does a disservice to consumers in West Virginia,” said ARA in the letter. ARA also distinguished between aftermarket and recycled OEM parts, writing

Service King Acquires Jack’s Collision Center in Florida

The acquisition marks Service King’s first location in the Fort Myers area while Florida residents now have access to 11 total locations throughout the state. “The Fort Myers area is growing at a rapid pace and continues to be one of the leading destinations for retirees,” said Scott Ward, Service King Regional Vice President of Southeast Operations. “We are excited to be part of the Fort Myers community and are proud to welcome the Jack’s Collision Center team to the Service King family.” Collision repair industry veteran Jack Lipscomb and his son Kevin opened Jack’s Collision Center in 1990. Today, the 18,000 square foot facility employs 24 teammates and has the capacity to repair more than 160 vehicles each month. “My team is extremely excited to join the Service King family,” said Kevin, current owner of Jack’s Collision Center. “They have an outstanding reputation and embody the same values my father and I instilled into Jack’s Collision Center during its 25 year history.” For more information, visit www.serviceking.com.

4 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

that “these quality ‘green’ auto parts also meet the performance, safety, fit and durability standards of the OEM.” In a June 2014 opinion, the West Virginia Supreme Court of Appeals considered the applications of the Crash Parts Act and the Consumer Credit and Protection Act and found neither statute prohibited body shops or insurers from utilizing recycled/salvaged parts. Moreover, they applauded the insurers for using measures to reduce premium costs for their customers. The Court ruled that aftermarket crash parts and salvage/recycled OEM crash parts are diametrically different products and not interchangeable in the context of the statute. Thus, the use of salvaged/recycled OEM parts by Liberty Mutual and the collision repair shop did not violate the Crash Parts Act. The lower court that ruled on January 12 originally ruled in favor of McGraw’s office and the case went on appeal before state Supreme Court justices, who reversed the decision and sent it back to circuit court. Kanawha Circuit Judge Charles King subsequently entered an order in favor of Liberty and the body shop owner, Greg Chandler of Greg Chandler's Frame & Body, LLC.

“Together, these rulings are a significant step forward for the professional automotive recycling industry and the increased utilization of genuine, recycled OEM parts,” said ARA CEO Michael Wilson in response to the circuit court’s ruling. “ARA applauds the West Virginia courts for recognizing the value of recycled OEM parts to automotive consumers, collision repairers and insurance companies, and for supporting the demonstrated role of professional automotive recyclers in today’s automotive marketplace.” Since 1943, the Automotive Recyclers Association (ARA) represents an industry dedicated to the efficient removal and reuse of “green” automotive parts, and the proper recycling of inoperable motor vehicles. ARA represents the interests of over 4,500 auto recycling facilities in the United States and 14 other countries around the world. With programs such as the Certified Automotive Recycler Program (CAR), Green Recycled Parts, and other partnerships, ARA members continue to provide consumers with vehicle replacement parts, while preserving the environment. To learn more about the Association, visit ARA’s Home Page at: www.a-r-a.org or call (571) 208-0428.

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 5

CREF Hosting Open House for Atlanta, GA, Makeover School During CIC Meeting The Collision Repair Education Foundation will be hosting an open house event at Maxwell High School of Technology (Lawrenceville, GA) the morning of Wednesday April 8th, 2015 from 9 am-10:30 am. The event is in recognition of their 2013 Makeover school grant that was provided by the I-CAR Atlanta Volunteer Committee and will be taking place in conjunction with the CIC meetings being held at the Crowne Plaza Ravinia. Hertz Corp will be providing transportation for CIC attendees to and from the hotel and the school. Industry guests will be transported back to the Crowne Plaza in time for the CIC meetings that begin that afternoon. Atlanta I-CAR Chairman Gerry Poirier and Farmers Insurance National APD Manager noted, “The Atlanta I-CAR Committee is made up from all aspects of the collision industry. The ability to accomplish our successful fundraising is due to the dedication of each and every member. This dedication has resulted in our ability to give back to this great industry by providing the 2013 Makeover grant to Maxwell High School of Technology, scholarships for collision school stu-

dents along with materials and tools. This will help replenish our dwindling shortage of people coming into the collision repair field. I encourage all industry members to come out and see what can be done to promote the collision industry starting in our local schools.” Maxwell High School of Technology Principal Dr. Jeff Hall noted, “I-CAR and the Education Foundation continue to be one of Maxwell’s biggest supporters. They continually provide tools and equipment that enhances our industry-certified program in teaching students how to perform automotive vehicle body repair and refinishing skills. As you know, these skills lead to excellent jobs as an estimator, body repair technician, refinishing technician, or employment in a shop office or insurance claims office. Our instructor’s aptitude and desire to produce quality student work, in and out of the classroom, can only be enhanced with the industry’s support of our program. With the industry’s continued support and the hard work of our instructors, Mr. Butch Luther and Mr. Sam Melaragno, I believe our program is in the top cadre of Auto Collision programs nationwide. We sincerely thank I-CAR and the

Education Foundation for its belief in a strong education program for our students.” Collision Repair Education Foundation Director of Development Brandon Eckenrode noted, “The Atlanta I-CAR Volunteer Committee has organized several annual fundraisers through the Education Foundation and has raised nearly $100,000 that is re-invested into Atlanta area collision school programs and students. As the industry is gathering in Atlanta for the CIC events, we wanted to be able to recognize this group for their support and how they have been able to completely transform Maxwell’s collision school program in an effort to help ensure that their students have a quality technical education. We invite all visiting and local industry members to join us for this event.” Collision industry members are asked to RSVP for this event by emailing Brandon Eckenrode at Brandon.Eckenrode@ed-foundation.org by March 27th.

www.autobodynews.com C

6 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

ASA Meeting To Be Held April 20-22 in Washington D.C. Area

The Automotive Service Association (ASA) will hold its annual business meeting April 20-22 at The Westin Crystal City Hotel in Arlington, VA, near Washington, D.C. The event will kick off with a Welcome Party reception Monday evening, April 20. All ASA members are invited to attend an open board meeting Tuesday, April 21, from 1 pm-3:30 pm. The board meeting will be followed by the swearing-in of a new chairman, along with other board members. Dan Risley, ASA president/executive director, will deliver a state-of-the-association address. Members are also invited to participate in Lobby Day on Capitol Hill on Wednesday, April 22. During that time, attendees will have an opportunity to visit congressional offices in the nation’s capitol. A Capitol Hill reception will be held afterwards. The official registration form for the event can be found on the ASA website – www.ASAshop.org. Call (817) 514-2931 for more information. ASA’s legislative website can be found at www.Taking TheHill.com.

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 7

NC Wants “Open Dialogue” on Possibility of Driverless Cars by Sara Svehla, dailytarheel.com.

The phrase “getting behind the wheel” will be a thing of the past if Google has its way, as the company expects to put people in self-driving cars within two to five years. Chris Urmson, the director of Google’s self-driving car project, said it would revolutionize automobile travel. “Imagine never losing someone in a traffic accident again,” he said in an online video. “Imagine cities where parking garages aren’t there, where that land has been turned into homes or turned into parks. It’s going to be an exciting place.” In preparation for the new technology, 17 states have discussed legislation permitting autonomic vehicles on the roads. North Carolina is not one of these states, but it has had discussions about the inevitable change. “We very much want to establish an open dialogue and partnership with autonomous vehicle manufacturers to make sure that we’re building a road network that will support the autonomous vehicle operations five years from now,” said Kelly Thomas, the N.C. Commissioner of Motor Vehicles. “I would trust driverless cars on a

daily basis,” said Koehler. “Computers are much more reliable and predictable than people, so I’d feel more comfortable with a computer driving than with a person.” But sophomore Tiffany Philbeck said she finds it difficult to trust current technology in cars and can’t see herself depending on an autonomous vehicle. “My grandmother’s cruise control claims that it can sense when a car is in front of you and it will decelerate for you, but I still always brake just in case,” Philbeck said. “I can’t even trust that, so no way would I trust an entire car to drive for me.” Freshman O’Malley Bentson added that she was concerned about taking human reactions out of driving. “Driverless cars sound like a good idea in theory, but I am skeptical of their success,” she said. “Many different situations arise while driving that aren’t controlled by the driver, but the driver must still react in the safest way possible. I find it hard to believe that a car controlled by a computer could react to a sudden threat on the road in a way that would be safe for its passengers and for surrounding vehicles and pedestrians.” Bentson was also wary about the

size of the vehicle — she said the small size of Google’s prototype made her question the vehicle’s safety if it were to get in an accident. Thomas said he recently spoke with representatives from Toyota, Chrysler, General Motors and Auto Alliance about road infrastructures that support autonomous vehicle technology. “Like the five-inch white lines we paint today on North Carolina roads: is it wide enough, is it white enough, is it spaced enough on the shoulder to support autonomous vehicle operations?” Thomas said. Thomas is among the supporters of this technology, saying that when he is older and no longer fit to drive he would still want to get to the golf course and the rest of his usual haunts. In the video, Urmson said more than 90 percent of auto accidents are caused by human error, killing 33,000 people every year in the U.S. and 1.2 million worldwide. “If we can bring technology that’s always paying attention, that can see what’s going on around it, that never gets distracted, this is a huge opportunity.” We thank www.dailytarheel.com for permission to reprint their article.

Police Investigate Suspicious Death in VA Auto Sales Yard

Officials are investigating a suspicious death at the Three Amigos Auto Sales located at 108 Turner Road in Chesterfield County, VA. Police responded just before 7:00 pm on January 24 regarding a report of a subject who had been found dead. The 60-year-old male victim, who has been identified as Adel M. Elmadany of Ander Court, was located in the business and confirmed deceased by EMS personnel. Hatim Mohammad, who claims to have known Elmadany for 20 years, described him as “very friendly, very respectful,” reported wtvr.com. Mohammad also told officials that the victim was part of the Islamic faith community in Richmond. However, that information had not been confirmed as of January 25. Investigators are still looking into this incident. Anyone with information should contact the Chesterfield County Police Department at 804-748-1251 or Crime Solvers at 804-748-0660 or www.crimesolvers .net.

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Cool Wheels Show in FL Helps Youth Center

Tony McClam, 22, of Deerfield Beach, FL, is enrolled in the Youth Automotive Training Center with hopes of gaining skills to build his own car and work in the automotive service in-

ters Park in Deerfield Beach, featured more than 500 cars and helped build awareness of the program, Executive Director Terry Routley told Jennifer Shapiro-Sacks of sun-sentinel.com. Routley added that there had to have been at least 3,000 people at the show, checking out the vehicles. The nine-month, tuitionfree program is for 16- to 21-year-olds, most of whom are considered at risk and disadvantaged, Routley told Shaprio-Sacks. Basic automotive repair skills, acaAmong those volunteering at the Youth Automotive demic remediation, GED Training Center’s Cool Wheels Car Show are, from left, preparation, job preparation Ricardo Galvan, Jerome McClam, Jovani Torres, and life skills, including fiTony McClam and Julian Cintron. (Photo courtesy of nances, dealing with authorsun-sentinel.com) ity, health and fitness, dustry. He was one of the students who resumes, interviews and filling out job volunteered at the center’s fourth an- applications can be gained at the event. nual recent Cool Wheels Car Show. For more information, visit The show, staged at Quiet Wa- www.Yatc.org.

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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 9

Hollander to Hold Regional Customer Training Seminar in Atlanta, GA

Hollander, LLC, a business unit of Solera Holdings, Inc. serving the automotive recycling industry, will hold its first regional training seminar of 2015 in the Atlanta, GA area on March 14. The Summit will combine presentations and hands-on learning experiences with Hollander experts in Powerlink®, EDEN® and eLink™. The two presentation tracks will revolve around Inventory Workflow and System Administration and Management. Inventory Workflow will include tracks on managing and maintaining inventory, prepping inventory for sales and inventory tools. System Administration and Management will focus on basic bookkeeping management, an introduction to Powerlink Order Management and tracking sales performance, among other topics.

“We have listened carefully to our customers and determined regional training is the best way to serve customer needs,” said Chris Gilbert, Director of Service Delivery at Hollander. “While past summits have focused on thought leadership, we’re tailoring this year’s events to concentrate on customer needs and training. The summit will provide an enhanced training experience through one-on-one availability and access to a portion of every Hollander team.” Software demonstrations and account management assistance will be provided by Hollander support associates and sales representatives in the Technology Test Drive Center. For information, or to register, visit www.Hollandersolutions.com and click the Events tab.

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10 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

Jacksonville International Auto Show Hosts 30 OEMs

The Jacksonville International Auto Show was held at the Prime Osborn Convention Center of Jacksonville from Friday, February 6 to Sunday, February 8. About 30 car companies presented their latest models of various kinds of vehicles—from sports cars to passenger cars as well as special-purpose vehicles. Vintage automobiles were also on display. The auto show was an event for the whole family, packed with activities for the kids as well.

and Fusion to their hybrid and electric counterparts, examine the microscopic differences between the Subaru BRZ and Scion FR-S, witness the speed and luxury of Lotus, Porsche and Maserati, and see the 2015 Cadillac Escalade, 2015 Chevrolet Subur-

The interior of the 1957 Chevrolet Corvette owned by Ronnie and Pam Edge of Jacksonville, FL

Winner of the Jacksonville International Auto Show Corvette Club People’s Choice Award. Photo credit: automotiveaddicts.com

The Toyota Corolla, Chevrolet Corvette Stingray, FIAT 500L, Jeep Cherokee, SRT Viper, Ram 1500, Dodge Durango, and Mazda3, were just a few of the vehicles on display. Visitors also were able to compare the gas-powered Ford C-Max

ban and 2015 Ford Mustang before they hit the mainstream market. Car enthusiasts learned about the latest safety and technological developments, like adaptive headlights, intelligent airbags, collision mitigation braking, and a host of warning alerts, such as lane departure, forward collision, side blind zone and rear cross traffic, plus which models offer navigation, touch screens, DVD players for the backseat and in-vehicle WiFi hot spots as well.

‘Exorbitant’ Hospital Charges Rob Florida Drivers, Suit Claims After a car wreck, Penny Wollmen said she had no idea a hospital’s scans to check for injuries would use up her $10,000 in Personal Injury Protection benefits in a single day. A chiropractor told her there were no benefits left to pay for his services under Florida’s car insurance system, she said. “I was crying,” said Wollmen, who has four kids and has to drive her husband to work in their one remaining car. “I couldn’t get the proper treatment.” A lawsuit scheduled for a hearing on February 17 names Gov. Rick Scott’s former company and alleges HCA hospitals including JFK Medical Center in Atlantis are exhausting consumers’ PIP benefits by grossly overcharging for services—at up to 65 times what Medicare pays. Hospital attorneys have asked a federal judge in Tampa to dismiss the suit. “We believe the case lacks merit, and we intend to defend it vigorously,” a statement from JFK Medical Center said. With one motorist in Palm Beach County, JFK charged nearly

$18,000 for scans for which Medicare pays a total of less than $500, the suit claims. The lawsuit seeks class-action certification to represent others affected at some 80 HCA hospitals around the state. Win or lose, it’s a very different narrative than the debate about bad guys faking accidents or providing phony care that preceded 2012 PIP reforms. Scott personally lobbied for and signed a bill that helped focus payments on hospitals and other emergency providers by reducing non-emergency benefits to $2,500. This lawsuit claims hospitals are the ones ripping off consumers and exploiting the system. “They are purposely overcharging and thus taking the money from those needing the medical care and help,” said plaintiff attorney Theodore Leopold in Palm Beach Gardens. Hospital attorneys say if drivers have a problem, they should take it up with their insurance company that agreed to pay the charges. They want the court to dismiss the case and reject a bid to make it a class action.

5 People Sent to Hospital After Crashing into FL Body Shop

Five people were sent to the hospital after an SUV crashed into Scott’s Automotive Center in Orange County on January 22.

Five people were sent to the hospital after an SUV crashed into an auto body shop Jan. 22 in Orange County, FL. Photo credit: www.mynews13.com

The body shop is located at 7115 Edgewater Drive, in Orlando, FL. The SUV had slammed into a minivan moments prior to crashing into the shop. The drivers of both vehicles, as well as three passengers, were taken to Orlando Regional Medical Center, reported mynews13.com. According to the Florida Highway Patrol, charges are pending.

Head of Tech College in GA Pleads Guilty to Stealing $25K

On Thursday, Jan. 29 Dawn Cook, the former head of the West Georgia Technical College Foundation, pled guilty to four counts of Theft by Taking in Carroll County Superior Court. As head of the foundation, Cook collected and handled cash during fundraisers for the foundation and also purchased advertising. Cook used her position to funnel money from both the foundation and the college to herself through several local girls’ softball teams. She did this by claiming that the foundation was buying advertising. She also kept money raised at a fundraiser for herself. Cook ultimately stole over $25,000. “The West Georgia Technical College Foundation entrusted Dawn Cook with the responsibility of leading and managing the organization, and she violated that trust by pilfering its coffers,” said Attorney General Sam Olens. “It is shameful that she used several high school softball teams as fronts for embezzling funds from the foundation.” Judge John Simpson sentenced Cook under the First Offender Act to five years probation, $25,067 restitution and 200 hours community service.

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 11

GA Attorney General Hosts ‘Truckers Against Trafficking’ Training On Feb. 17, Georgia Attorney General Sam Olens joined forces with the Georgia Motor Trucking Association and Truckers Against Trafficking to host a day-long training for trucking carriers, truck stop managers and law enforcement on human trafficking and how they can help stop it. Attorney General Olens held a joint press conference with the two associations prior to the training in front of the Judicial Building, 40 Capitol Square, SW, Atlanta, GA. “Fighting the scourge of human trafficking has been one of my top priorities as Attorney General,” said Olens. “It is a grave violation of human rights that robs people of their dignity and self-worth. We have declared that ‘Georgia’s Not Buying It,’ and I am committed to putting away criminals who engage in this unconscionable activity. I applaud Truckers Against Trafficking for their work to engage the trucking industry in eradicating this evil, and I appreciate the support of the Georgia Motor Trucking Association.” The training provided the trucking industry with the tools they need to spot human trafficking situations and mobilize their industry to fight this crime. It also educated them on how they can coordinate with law enforcement to aid in the recovery of victims and the apprehension of traffickers and buyers.

The trucking industry heard from a range of speakers involved in combating human trafficking, including law enforcement and a trafficking survivor. Additionally, the Freedom Drivers Project, a 48-foot mobile exhibit that travels the country to educate the public on human trafficking, was available for tours. “Partnering with Attorney General Olens and the Georgia Motor Trucking Association to make this event happen is strategic, insofar as Truckers Against Trafficking works across the nation to bring together law enforcement with key industry stakeholders to close loopholes to traffickers,” said Kendis Paris, Executive Director of Truckers Against Trafficking. “We find that these meetings have exponential effects in that hundreds become trained, new communication lines open and critical information is exchanged. We are also very proud to bring the Freedom Drivers Project to Atlanta, and believe it will heighten the level of training attendees receive.” “The exploitation of the innocent depends in large part of the rest of us not paying attention, whether knowingly or unwittingly turning a blind eye to things that are sometimes in plain view,” said Ed Crowell of the Georgia Motor Trucking Association. “We must learn

South Carolinians Paying Higher Auto Insurance Rates

to recognize the signs when we see them and then commit to acting on what we see. That is what this effort is about and why GMTA is proud to be a part of it.” Human trafficking is modern day slavery in which human beings are bought and sold for commercial sex or are forced into labor servitude, sometimes both, for the profit of others. It is a crime that threatens society’s most vulnerable children—the average age of entry for victims is 12-14. Victims are often enticed by traffickers with promises of a better life, only to be abused, drugged and held in bondage, both mentally and physically. Human traffickers are constantly moving victims from venue to venue for sale or exploitation. Members of the trucking industry are the eyes and ears of America’s highway system, and they have the ability to be a crucial force in aiding law enforcement in detecting human trafficking. According to the United Nations Office on Drugs and Crime, human trafficking is a multi-billion criminal industry affecting every corner of the globe, and Georgia is no exception. A report released last year by the Urban Institute estimated that the underground commercial sex trade in Atlanta grosses $290 million a year.

In 2006, the legislature in South Carolina made changes to their insurance codes requiring South Carolinians to carry more minimum coverage, which ended up raising rates across the spectrum. According to the Insurance Information Institute, South Carolina’s typical annual auto insurance rates are now $138 higher than North Carolina’s. There are several factors that affect how one’s rates are determined and they go beyond just factoring in one’s driving record. Young drivers are considered high risk due to their inexperience. Senior drivers have health factored into their risk. Being single versus being married quantifies a risk. What kind of car is being insured? A Ferrari Testarossa costs more to cover than a Toyota Solara. If a person is driving a hybrid and the car has airbags, both in the front and on the sides, and if there is an anti-lock braking system and anti-theft device, this will affect a consumer’s insurance rates and factor them as a lower risk and therefore, a lower rate is calculated.

Well-Known Technician in TN Dies Unexpectedly

Johnny Arnold Smith, 58, died unexpectedly, Sunday, January 18, 2015 in Portland, TN. He was born August 19, 1956 in Muncie, and is the son of Charles Thomas Smith and Katherine Dean Gold. Smith was a well know auto body technician. He owned and operated Smith Brothers Auto Tennessee Body in Muncie technician, Johnny for 10 years, reArnold Smith, died ported thestarunexpectantly in press.com. He mid-January was currently at age 58 employed with Goodlettsville Collision in Portland, TN, and had been in the auto body industry for 30 years. Smith had been employed with Marsh Supermarket’s for 10 years. He enjoyed

boating, cooking, raising a garden, motorcycling and most importantly, his family and friends. According to thestarpress.com, Smith is survived by his loving wife, Vickie Marie Smith of Portland, TN; his son, Kerry Leland Smith of Muncie; his father, Charles Thomas Smith (Cassandra) of Dunkirk; his mother, Katherine Dean Gold (Ronald) of Chesterfield; a brother, David Smith (Cindy Jo) of Warren; a sister, Pamela F. Garringer (Wade) of Springport; several nieces and nephews and great-nieces and nephews also survive; his best friend, Marty Hester of Gallatin, TN. He was preceded in death by his grandparents, Homer Riley, Agnes Smith, and Arnold “Papa” Smith. Funeral services for Smith were held at the Garden View Funeral Home, with Pastor Dan Coffman officiating. Online condolences may be made at www.gardenviewfuneralhome.com.

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Arrests Made in Multi-County Auto Theft Ring in Florida, 30 More At Large Four men are in jail and deputies are looking for at least 30 others in a large-scale vehicle theft ring operating in seven counties in Fort Meyers, FL, reported nbc2.com. The “ringer leaders,” identiEddie Deleon fied by authorities as 35-year-old Eddie Deleon, 49-year-old David Ressie Dix, 49year-old Dennis Lamar Flint and 28-year-old Charles W. Sikes, are in custody. Lee County detectives became acquainted with the group’s work in late 2014, after a string of thefts David Dix of Ford F-series trucks, reported nbc-2.com. Several businesses in Fort Meyers and Lehigh Acres have been affected by the thefts, which continued into 2015. The thieves would take the trucks, rummage through them for

anything of value before ditching them in the Crescent Acres area of Lee County, near the borders of Glades and Hendry counties, reported nbcDennis Lamar Flint 2.com. Clusters of burglaries within the same time frame were also connected to the vehicle thefts. During the investigation, Lee County deputies learned that surrounding counties were experiencing similar crimes. Deputies from Hendry, Glades, Collier and Lee began sharing information and developed a few persons-of-interest—ones who also happened to Charles Sikes have a history of the same kinds of thefts in Charlotte County, reported nbc-2.com. However, additional information is needed to find others involved in the theft ring. Anyone with tips on vehicle or boat thefts, or burglary

which may be linked to Deleon, Dix, Flint or Sikes, is asked to call Crime Stoppers at 1-800-780-TIPS (8477). All callers will remain anonymous and will be eligible for a cash reward of up to $1,000. Tips may also be made online at: www.swflcrimestoppers.org or by texting a tip to CRIMES (274637).

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Police Cracking Down on Uninsured Miami, FL Drivers

Due to the frequent amount of Miami, FL drivers who either have fake car insurance or no car insurance at all, insured drivers in the city have to pay an extra $400 to make up for it. However, officials started to change that on February 11 by coming down hard on uninsured drivers in the Hialeah area, reported Dan Krauth of nbcmiami.com The streets were patrolled by dozens of cops, while 27 insurance companies were at the Hialeah Police Department. Every vehicle pulled over for a traffic violation had their insurance verified by the companies. One man handed an officer a fake insurance card for a non-existent company. He allegedly bought the card in a restaurant parking lot. Police arrested him. A woman was caught driving with a suspended license and no insurance, reported Krauth. Dozens of drivers were cited for various violations and police made two arrests, Krauth added. Officers plan to use similar methods to find uninsured drivers in nearby cities. Presenting an officer with a fake insurance card is a felony and the maximum sentence is five years behind bars.

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Jessica Smith of Shelbyville, TN Blazes Trails in the Body Shop by Derrick Hill, www.t-g.com

The moment she was handed a spray gun, she knew it was what she wanted to do. Jessica “Jess” Smith recalls the reaction of her father, Erik Dale, the first time he let her assist in painting a horse trailer. She was 12 or 13 years old and had always admired her father’s ability to

Jessica Smith has become one of the top students in her class through hard work and dedication. Photo credit: T-G Photo by Derrick Hill

Smith focuses in on the computer calculating meaurements for a vehicle realignment

transform the mundane into the beautiful. According to Smith, whether it was re-painting horse trailers, vehicles or construction, her father was a very talented individual. It must have been transferred down through family blood, because Smith recalls her dad being ecstatic watching her paint for that first time. She didn’t leave any runs, her hands flowing gracefully from side to side.

Determined “Once I got a spray gun in my hand, it felt natural,” said Smith. “I knew it’s what I wanted to do.” At 22, it’s a dream that Smith has worked hard to make a reality. As of last September Smith joined the Collision Repair Technology Program (CRT) at the Tennessee College of Applied Technology at Shelbyville (TCAT-S), a program predominantly pursued by males. This hasn’t stopped Smith from becoming one of the top students in the program. Course instructor, Eric Brown, has witnessed her excel in the classroom. According to Brown, Smith had perfect attendance last semester

and is always ahead in her coursework, deeming her an “excellent student.”

Pursuing dreams After receiving her GED, Smith took a job at a factory in order to make ends meet for her and her three-year-old, Jacob Smith. The whole time she dreamt of the moment she could start making her dreams become a reality.

name. Smith isn’t hesitant to speak about her goals, her voice full of confidence. As she recalls all those early moments assisting her dad with body work that helped prepare her for the classroom, it’s obvious Smith was close to her father.

Special moments “Being here, working with body filler and spray guns,” said Smith, “You can

to help her cope with his passing. Yet, it’s in the spray booth and in the shop where Smith feels at home. “When I get in the [spray booth], it’s like I’m in my own little world because nothing else is there,” admits Smith. “It’s just me and that gun.” When she isn’t in the shop, Smith spends her times studying up on the most recent technologies for her field

It takes a lot of time, but Smith makes sure she stays on top of her school work

Smith likes to get away and clear her head in the spray booth

Smith isn’t afraid to get her hands dirty. Here, she prepares to realign her first car frame

Smith adjusts an instrument that uses sonar technology to take measurements

Following being laid off last summer, Smith knew it was time. “I wanted to make the future better for me and my son,” said Smith. “That’s when I finally took the steps to come here.” Smith weaves through the program’s shop, between stripped down automobiles and heavy machinery, with a look of determination, eager to learn everything she can. This particular day, she’s preparing to realign a vehicle’s frame for the first time. She takes a moment to explain the machine she is using, a sonar device that measures a vehicle’s alignment, before she focuses in on the instrument’s technical panel.

Future goals “I plan on opening my own shop one day. I also want to learn mechanic work,” said Smith, “so I can do everything from top to bottom.” When she does reach that goal, Smith wants honor her dad’s legacy with the business and has considered naming the business “Sidewinder” or some play on the word, which was her father’s nick-

16 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

stay here and the fumes and [smells] will remind you of a certain moment.” Those certain moments were spent with her dad, a subject Smith admits is hard to talk about. She is quick to point out that they are “happy moments.” When her father passed away in 2011, Smith turned to art and poetry

and talking dirt bikes with her son. “I’m always trying make sure I’m up to date on everything. My little boy, as soon as I come home with my books, asks, ‘Mommy, have you got homework?’” said Smith. “I say, ‘Yeah baby, I’ve got to study.’” See Jessica Smith, Page 30

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Night-time Automotive Paint Additive has Vehicles Glowing and Owners Crowing “The idea came up back in 2002. I developed, manufactured and sold Toxic Toad is, ironically, a non-toxic, different forms of concrete sealer and environmentally-friendly additive that was looking for something new and can make any vehicle glow in the dark. different,” said Howe. “It wasn't until When asked about why he chose 2013 when a friend in the auto body the name, owner and creator Chad business gave me the idea to see how Howe replied, “I wanted something compatible it would be with auto body paints. With the help of my friend Terry Karn from Advanced Auto Body, with 30 years in auto body work, we tried our first project.” After only one try, the duo noticed that the additive made the guinea pig vehicle glow nicely, but left the paint gritty and rough. “So after a few more trials and errors, we came up with a great product and process,” A vehicle with the clear Toxic Toad additive during the said Howe. “With the right radaytime tios and application, we now that would stick out, and after weeks can spray over any base color without of trying to come up with a fun name, altering it, while maintaining a great it hit me that toxic toads’ colors are day look as well as a glow at night. brighter the more toxic they are. So the When applied right, nobody could name just seemed to fit with the glow.” ever tell that the finished product The product, which can be mixed would glow in the dark.” into any auto paint clear product beToxic Toad is not UV activated; fore spraying, was launched in Febru- any light will charge up the paint job ary 2013 at the Lennox, South Dakota for hours at a time. The additive comes headquarters. in four glow colors that go on clear by Victoria Antonelli, Online Editor

18 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

and dry clear, as well as two different green base glow colors. “We do get a lot of requests for new colors, but we are staying with the maximum glows,” said Howe. “Al-

and brighter the glow. “Toxic Toad has a lot of repeat customers who are amazed at the results,” said Howe. “The response has been great.”

At night, the Toxic Toad additive causes the automotive paint to glow in the dark, while remaining unnoticeable during the daytime

though the options are out there for additional glow colors, they just don't glow as bright or as long.” Although the product can be sprayed on any color car, Howe says the lighter the base color, the longer

The unique product can be ordered online, and is often shipped to destinations outside the United States. “With just the internet and word of mouth our sales have gone global,” said Howe.

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 19

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CNN Segment

Body in Pennsylvania. “This segment [CNN] strengthens our position with the nationwide suits,” said Perretta. “These types of tactics are tragic and offensive, deliberate and most of all hurting family’s of consumers financially through diminishing the values of the second largest investment people are making all across the country and their safety.” During the show, Drew Griffin, CNN Special Investigation Unit Correspondent, looked into the allegations. He interviewed Bill Burn, a national auto repair expert, as well as Matt Parker, owner of Parker Auto Body in Monroe, LA. Both addressed the issue of “bad repairs” conducted by some body shops allegedly due to pressure from the insurance companies to use sub-par parts. John Eaves Jr., of Eaves Law firm in Jackson, Mississippi, also spoke during the segment. “Every state in the union is experiencing the same sort of struggle here between the body shops trying to do the work the right way, and the insurance compa-

nies trying to cut corners and force them to use unsafe parts and unsafe methods on their cars,” said Eaves, the lead attorney for the antitrust Multi District Lawsuit filed in Florida. Buddy Caldwell, Louisiana’s Attorney General, and Jim Hood, Attorney General of Mississippi, were also featured. Both discussed their concern about safety issues using these kinds of parts. Caldwell has already filed a lawsuit against State Farm Insurance, and Hood is in the process of filing one as well. Hood explained the problem of insurance companies steering business away from body shops that don’t follow their rules. “They’re going to say, we’ll blackball you. We won’t put you on our select service list, and we’re going to make you send us estimates [supplements] to us five different times just to aggravate you. That’s what they do,” said Hood. “They use their economic power to grind down working people.” CNN included the following statement from State Farm: “Our customers choose where their vehicles are going to be repaired. We provide information about our Select Service Program while at the same time making it clear they can select which shop

20 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

will do the work.” Dick Luedke, spokesperson for State Farm Insurance, said that only a small portion of the information they provided to CNN was used in their report. “We are disappointed that CNN

plaintiffs a third chance to re-plead,” said Luedke. “Moreover, a magistrate judge has recently recommended to the district judge that the Mississippi complaint also be dismissed. We did make CNN aware of those rulings.”

Matt Parker, Owner of Parker Auto Body in Monroe, LA showed CNN’s Drew Griffin a re-manufactured headlight that State Farm asked him to use in a Toyota Tacoma

did not choose to report what you have already reported, that all of the counts in the multi-district litigation in Florida that are specific to the state of Florida have been dismissed twice, although the court has permitted the Florida

Neil Allredge from the National Association of Mutual Insurance Companies was also interviewed by Griffin. “In many cases, these parts are no different,” said Allredge. “They’re made in the same factories. One just comes

out with an auto manufacturer’s name on it and others don’t.” When Griffin told Allredge “That’s not true,” Allredge disagreed. After Griffin showed him a replacement hood for a Honda that was made in Taiwan and coming apart, Allredge went on to say that he didn’t know the circumstances of the parts Griffin mentioned and didn’t provide further comment. During the show U.S. Senator Richard Blumenthal, D-Connecticut, said, “Salvaged parts, inferior or even counterfeit parts certainly raise safety concerns. And often, those kind of parts involved in this practice of steering,” said Blumenthal. “And that’s why I have been concerned for years about it and why I think the Department of Justice should be investigating. One of the cars featured on-air was videotaped at Clinton Body Shop in Clinton, Mississippi. John Mosley, owner of the shop and the President of the Mississippi Collision Repair Association, said CNN contacted him when they were in the area interviewing the attorney generals. He said the Executive Producer of the show, Scott Bronstein, asked if Mosley had a car that had been taken

to a direct repair shop and suffered from a poor repair due to the parts used or actual labor operations performed. He replied that he had a vehicle brought in recently from Eugenia Randle. Randle brought her car into Mosley’s shop after it had been repaired twice at a “preferred” insurance company shop and was still not working properly. In the CNN report, Randle said, “Well, cosmetically to me, it looked fine. But once I got in and got down the street, it just started driving really crazy. And I immediately took it back,” she said. When she brought it to Clinton Body Shop, Mosley said one of his employees took it out for a drive and found it to be unsafe. “So we put it up on the rack, we found the bent wheels, the frame damaged and other issues with it,” said Mosley, who also owns a shop in Richland. After CNN’s Griffin took it out for a test drive himself, he said, “Not only the tail section ripped and unrepaired, three of four tire rims [wheels] were damaged. And as I drove, the steering wheel was shaking so violently, I had to grip down from veering to the right. The front left tire was just wobbling,”

said Griffin. Griffin was referring to a damaged left rear frame rail. “I carefully drove this shaking car right back to the insurance company’s preferred auto body shop, where the general manager promptly told us to leave.” In response to the CNN report, Jack Gillis, Executive Director of Certified Automotive Parts Association (CAPA), said, “The bad news: we all know that substandard parts exist in the market. The good news: CAPA’s independent, fully transparent non-profit rigorous quality certification program enables shops, insurers and part distributors to identify high-quality, safe and good fitting alternative parts. Because neither shops nor insurers can identify quality alternative parts by looking at them or depending on seller’s claims, CAPA provides the market with the ability to make an informed and quality-based choice. Shops and consumers want repairable vehicles without compromising quality. CAPA provides that option.” He added, “As to the broad brush disparagement of collision repair shops, clearly there are thousands of other American collision shops that do qual-

ity work and use CAPA quality parts— it’s just too bad that they weren’t part of the story.” In a recent letter to its members, the Society of Collision Repair Specialists (SCRS) stated, “The CNN special program highlighted the practices of identifying the cheapest parts in their claims settlement practices, and it is similarly common that their indemnification practices reflect prices that are substantiated by the lowest common denominators in the market as well; not necessarily what consumers would support in a well-functioning marketplace. “It is important to recognize that there are both ‘good’ and ‘bad’ market representatives in every trade and profession. It would also be inaccurate to make the assertion that simply because a collision repair business works with an insurance company, that they must be performing sub-par work.” SCRS further stated, “What the newscast helped to highlight was that the system is broken, allowing those with the financial responsibility to indemnify for loss to interject themselves into influencing price and thereby the process and/or quality of services provided.”

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Continued from Cover

2015 Ford F-150

intentionally denting the Ford's right quarter panel. Crazy? Maybe. But we wanted to find out if repairing the aluminumbodied Ford is more expensive and time-intensive than repairing traditional steel-bodied trucks. Remember, the F-150 is the first pickup truck with a lightweight aluminum body and bed. After much thought we chose to smash the bed side because it would need to be repaired, as opposed to a dented door, fender or hood, which could simply be replaced. So in the name of consumer awareness we dented our truck with two big blows from a sledgehammer (the impact also cracked the taillight) and drove it straight from the Edmunds garage to our local Ford dealer, Santa Monica Ford, and asked for an estimate. Take the jump to check out the sledgehammer video (on Edmunds.com). Hiding the fact that we’re Edmunds.com was important so our experience truly represented the real world. No special treatment. I also didn’t want to admit that I had hit the truck with a hammer, so I lied and told the service advisor that the damage happened while I was parked. I told him I had no idea what happened. I also told him that to avoid raising my insurance rates, I’d be paying out of pocket for this repair. He grimaced and sympathized with me, then got out his clipboard and pointed out the areas that needed repair. Various sections of the panel had deformed and would need to be pounded out. Near both the top and the bottom of the panel, there were creases and folds in the aluminum that would need to be fixed before they could be painted. According to the advisor, the aluminum would be much harder to fix than steel. His shop was trained to fix the aluminum but it required special tools and would take extra time. A job like this on an F-150 with steel panels “would take half the time.” After about 10 minutes, the advisor came out with an estimate. I approved the work and asked if I could come back in a few days and photograph the repair in progress. He agreed. Stay tuned for Part 2.

Aluminum Body Repairs Part 2 After bouncing an 8-pound sledgeham-

mer off the side of our new long-term 2015 Ford F-150, twice, I went undercover and drove it to our local Ford dealer, Santa Monica Ford, for repair. As explained in Part 1 of our adventure, the idea was to test the hypothesis that when the aluminum body of our 2015 F-150 is damaged, it takes longer and is more expensive to repair than a more traditional steel-body pickup truck. Ford claims the 2015 Ford F-150 is up to 700 pounds lighter thanks to its aluminum panels, which increases

● Work area separation / isolation system Work separation can be an aluminum separation (Curtain) system or a separate room. Aluminum vehicles undergoing repairs must be able to be separated from vehicles undergoing steel repairs ● Specialized aluminum SPR rivet gun Approved by the Ford Paint & Body Technical Center.

This might seem like a complicated list, but many body shops have had this stuff for years. Aluminum body panels on cars aren’t really new. They’re just new in the pickup truck segment, so there are dozens of independent shops and Ford dealers near our Santa Monica office that can handle this repair. Finding a certified independent shop, however, or a properly equipped dealer Detail of hammer damage. Photo credit: Edmunds.com might be more difficult in overall fuel economy and payload. other parts of the country. But what happens when Thor decides When I dropped the truck off at to use your truck for target practice? Santa Monica Ford, the manager told According to Ford, “the majority of me they would definitely be repairing collision repairs can be completed by the panel, not replacing it. Perfect. It most body shops today (e.g. bumpers, would take “seven to ten business days” grilles, mirrors, dings, dents) [but] major collision repairs should be performed by aluminum-capable Ford body shops or National Body Shop Network members.” Along with training from the “Ford F-150 Collision Repair Program” Ford body shops or independent body shops would need some specific equipment to repair the damage on our truck. Here’s a list of the equipment Ford recommends "to be aluminum repair capable”: ● Dedicated aluminum MIG welding system Welder must be 200v and equipped with Pulse MIG Technology ● Dedicated aluminum hand & power tools A small hand tool kit that contains all needed tools has been developed and is required to be purchased through Rotunda ● Dedicated aluminum dent extraction system Dent extraction system must contain an aluminum stud welder, heat gun, pyrometer, aluminum hammers and dent extraction system ● Dedicated aluminum Wet Mix air filtration system Dust extraction system must be a Wet Mix technology system and can be a portable or central installed system

22 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

to finish the job and they welcomed me back to take photos of the process. Less than a day after I handed over the keys, though, I got a call from the body shop. The service advisor had misquoted the price of a part and they needed my approval to move forward. Ruh-roh. The second time I hit the truck, the taillight cracked, and even though it still functioned properly we wanted to fix it. Ideally, we’d replace just the broken piece, the lens. Unfortunately, it’s permanently mated to the housing and Ford only sells this part as a single unit. What’s more, we got our F-150 in the Lariat trim level. That means it’s equipped with (amongst other things) a blind-spot monitoring system. The sensors for that system are housed in the taillight and as you might expect, this all led to a higher price for the taillight assembly than previously expected. Much higher. The price jumped from $106.28 to $887.25. For a taillight. Without much of a choice, I approved the price increase and thanked the shop for double-checking with me. Two days later, I checked in on the F-150 to see what progress had been made. The body shop had removed the

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“Sport 4x4” sticker and the taillight and started dent repair, pulling out the damaged areas. Four days after dropping off the truck (two days after my first checkup) I dropped by the shop again. This time they were in full sanding mode, prepping the truck for paint. If I looked closely, I could see where the sledgehammer had made contact, but the damage was starting to disappear. During the second visit, the service advisor let me know the truck would be finished on schedule, just a few days later. Sure enough, seven days after we dropped off the truck, it was ready to go. Check out Part 3 as we welcome the 2015 Ford F-150 back into our fleet with full details on the cost to repair it.

Aluminum Body Repairs Part 3 “The normal aluminum labor rate is $120 an hour, but since you’re paying out of pocket I’m going to cut you a deal,” the service advisor said, holding back the computer print-out. “I'm only going to charge you our normal rate of $60 an hour but it’s over 20 hours of labor.” When I dropped off our longterm 2015 Ford F-150 a week ago, I couldn’t tell if the advisor was trying to soften the blow of a costly repair or if he was really taking pity on me. There was no “Aluminum Body Rate” on their posted list of prices in the waiting room, just the “Body Rate per Hour” of $60. Whether this was an exaggeration or not, it was a nice sentiment. I lied to the service advisor, so in his mind, I was the victim of a hitand-run accident and I deserved a bit of leeway. The damage was actually a result of two blows from a sledgehammer. We were testing the theory that aluminum is more expensive to repair than steel and I had lied about the damage to get the most realistic customer experience possible. So far, it seemed to be working. The repair would take “twice as long as steel” but I’d be paying half the standard rate. It was time to break out the calculator and do some funky math. He handed over the sheet and explained each item. After straightening the panel as best they could, they’d apply a specialized aluminum paint filler, then primer, paint, color sand and buff the panel, replace the taillight and put on a new “Sport 4x4” sticker. For “seven to 10 business days”

worth of work, the price of labor and parts totaled $2,082.73. My eyes went wide, but I signed the estimate, declined a rental car and handed over the keys. As I mentioned in Part 2 of the story, the price went up quickly when the taillight turned out to be more expensive than previously thought. Instead of the $106.28 for a standard taillight, our Lariat’s LED light with the blind-spot sensor cost $887.25. With the subsequent increase in sales tax, the repair bill totaled $2,938.44. Ouch. True to their word, the body shop finished the work a week after I dropped the truck off. And to my eye, they did an almost-perfect job. The panel is straight, it retains all the original character lines and the paint is matched perfectly. The only real flaw is the placement of that “Sport 4x4” sticker. It’s about two inches too far to the left of where it should be. Dan Edmunds came with me to check on the repairs and neither of us noticed at first, but it certainly stands out now that our more eagle-eyed co-workers have pointed it out. Side note: We’ve contacted the dealer and they’ve ordered a new sticker. An outside vendor does the sticker placement and they’ll come to us to fix it, free of charge. I should note that repairing aluminum differs from repairing steel in several ways. It requires special tools (re-read Part 2 if you missed those details) and it stretches in different ways than steel. As a result it can require a more experienced hand. It seems like the staff at Santa Monica Ford has that part covered. But what about replacing body panels all together? If we had been in a more serious accident, with another vehicle involved for instance, and we needed a panel replaced, could it take a shop longer to get that panel in stock? According to Ford, the body panels aren’t any more expensive now that they’re made out of aluminum. The price for a replacement right rearquarter panel on a steel-bodied 2014 F-150 is $967.48. And for the same panel on an aluminum-bodied 2015 F150? $967.48. That's nice to hear, but what would it have cost to fix a steel panel rather than replace it? As you’ll notice in the above photo of the estimate, there are 24.4 hours of billed labor. Of that, 20 hours are listed for the repair of the aluminum body panel. The other 4.4 hours are things like removing the molding, taking off the bumper and uninstalling the tailgate.

24 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

Clearly, that labor wouldn’t take any more or less time regardless of what the parts are made of. If we go with the theory that our service advisor presented though, and assume fixing a steel panel would take half the time, it works out to just 14.4 hours of labor. Work that in to the above estimate and you’ll get a total of $2,338.44. That’s $600 less. Let’s take that a step further, though. Assuming that the labor rate for aluminum was the $120 an hour the service advisor told us, and going with our quoted time of 20 hours or body labor to pound that panel out, we’re looking at $4,138.44. That’s a difference of $1,800, a price increase of nearly 77 percent versus the cost of repairing a steel panel for 10 hours at $60 per hour. To be sure we called our regular body shop, Golden Hammer in Santa Monica. The shop has fixed dozens of dented, dinged and damaged Edmunds long-term test vehicles. That shop charges $50 an hour to fix a steel panel and $105 an hour for aluminum. Take it a little further down the rabbit hole and there’s insurance to think about. If we had gone through insurance to pay

for this repair, my out-of-pocket cost for the repair might not have changed so much, but that’s probably not where it would end. Imagine you’ve got a $500 or even $1,000 deductible on your insurance policy. You hit a tree, tell the body shop guy you have no idea what happened, but insurance is paying to fix it. Your insurance premiums may go up, but the remainder of the cost is passed along to your insurance company. In this scenario, the associated insurance cost for owning an aluminum-bodied vehicle likely goes up too. Maybe it already has. There’s plenty to speculate about when it comes to the new 2015 Ford F150, and we’ve got a year to keep testing out our theories, but there are a few things we know for sure. One: It takes more time, unique tools and specialized training to fix aluminum body panels. Two: Those repairs, whether through higher labor rates or longer service times, cost more money than repairing steel. And three: It’s really fun to smash things with a sledgehammer. We thank Edmunds.com for giving Autobody News permission to reprint their article.

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Continued from Cover

Aluminum Repair Rates

pairs. The service advisor said that his facility could handle the repairs, and we trusted him to get the work done. While we were surprised to learn from the advisor that the repairs typically cost twice as much and typically take twice as long on the new aluminumbodied truck as the steel-bodied truck, we were able to confirm those facts with a trusted local independent body shop. In the end, the work was performed within the time and the cost that was quoted to us, and we were satisfied with the quality of the repairs.” However, Edmunds.com did not test a steel-bodied truck with damage from a similar impact. Autobody News contacted Ron Davis, owner of Santa Monica Ford, and learned that he had no idea that Langness was pretending to be an ordinary collision customer. “I think it’s silly to try and extrapolate an industry trend from a $2,500 repair,” Davis said. “It seems like they came in with an agenda.” Davis said the dealership made a quality repair and charged a fair price.

“Edmunds is making a mountain out of a molehill,” he said. “To draw conclusions on an industry trend from an isolated case on a small repair like this

mains, ‘Is this going to be the general case for aluminum repairs?’ “We really won’t know the impact for awhile because we use a make

Travis Langness, Associate Editor of Edmunds.com, before taking sledgehammer to Ford F-150. Photo courtesy: Edmunds.com

is a faulty conclusion on the part of Edmunds.” A typical repair of course is not going to be the result of a sledgehammer dent. This was a unique situation and may not represent standard repairs statistically. However, the question re-

and model rating system, which is basically based on our claims data,” said Dick Luedke, spokesperson for State Farm Insurance. He said the insurance company typically tracks the cost of insuring every vehicle by make and model.

“When those costs change because of a change in the structure of the vehicle, as is the case is here for the Ford F-150, we will be able to see what impact that has, whether it increases the cost or decreases the cost and we adjust our premiums accordingly.” There has been much speculation among auto body shops that aluminum repair will be more expensive because raw aluminum costs more than raw steel. “We don’t make that supposition,” said Luedke. “We let our data tell us whether that is actually true before we actually change our prices. Generally speaking you need about a year’s worth of data for it to be at all meaningful.” Autobody News spoke to Michael Levine, Truck Communications Manager at Ford Motor Company, regarding the video posted by Edmunds.com. “In our experience, the cost to repair cosmetic damage to aluminum is comparable to steel,” said Levine. “For cosmetic repairs, aluminum isn’t really any more difficult to repair than steel is based on historical data collected from repairs of other Ford vehicles with aluminum body panels; it See Aluminum Repair Rates, Page 39

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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 29

Southeast Associations

GCIA Donates $2000 to Maxwell High with Chasidy Rae Sisk

On Thursday, January 22, several members of the Georgia Collision Industry Association (GCIA) visited Maxwell High School of Technology to present a $2000 check to Butch Luther, director of the school’s automotive collision

Of course, money is always a concern, and many collision repair programs are underfunded, creating a deficit in the skills these students learn and the equipment they’re trained to utilize. Batchelor notes, “These cars aren’t

Howard Batchelor, Executive Director of GCIA, hands $2,000 check to Butch Luther, director of Maxwell High’s automotive collision program

program. Howard Batchelor, Executive Director of GCIA, explains “this is the second year in a row we have made this donation to help them purchase tools, equipment and supplies.” Batchelor was accompanied by the association’s secretary Gregg Goff and member Bobby Coombs as they showed their support for the next generation of collision repairers. With the average age of technicians estimated to be 48 years old, and continuing to climb, the industry desperately needs more young professionals who are well-trained and prepared to enter an automotive career after graduation.

going to get any easier to repair, so we’ve got to have qualified people to repair them, in the proper manner. We want to make sure the up-and-coming next repairers have the skills necessary to repair cars that are damaged.” Although the program’s instructors recognize the importance of providing students with proper training in accordance with industry standards, the recession has led to a number of budget cuts, reducing collision repair programs in Georgia from 15 to just four or five. With approximately 40 students in their programs, Luther and Maxwell instructor Sam Melaragno

Continued from Page 16

back and keeps on moving, excited to explain the different areas in the shop and points out a bumper that she painted, quickly noting that the light scratch on the side was done “after” she painted it. “I’m very competitive and I want to prove to myself and everyone else I am capable of doing what I want to do what most men can do,” said Smith. “They don’t believe females can do that as well, but I’m determined to set that record straigh—that we can do it, if not as good, better.” A proposition that Smith should have no trouble supporting. We thank www.t-g.com for permission to reprint their article.

Jessica Smith

Rising above Although people are often surprised to learn that Smith is in the CRT program, she has no qualms about it. “People ask, ‘How does that work? You’re in a man’s industry,” explained Smith. “You just have to learn to get along with the guys. I tell my instructor, ‘Whenever I’m here, I don’t want to be set apart from anybody else. When I’m here, I’m part of the guys.’” At one point a student comes up and teases her about being the best in the class and being interviewed. She chops

30 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

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

anticipate that GCIA’s donation will be used to buy spray guns, which cost $800 each and last four years, and possibly other supplies. Students are grateful for the association’s assistance which will prepare them for their future careers. Senior Joel Leyva notes, “It’s only going to help us have better equipment, so we can learn the correct way, but we understand we have to take care of the equipment we do get, so it will last longer.” Maxwell’s collision repair program is designed to provide students with a fundamental foundation on which to build. Melaragno stresses, “Getting them on the right track is more important than anything… and getting them on the right industry path, that’s the key. [We want to teach] entry-level skills they can actually use when they leave.” Coombs also points out that people’s lives can be impacted by the quality of the repair, making it even more imperative to ensure that the upcoming

generation of technicians is trained to repair vehicles safely and properly. GCIA members point out that these programs also face a second challenge. Many parents have unfavorable misconceptions about the collision repair industry and discourage their children from pursuing such a career. GCIA and Maxwell believe that outreach efforts should include educating parents and students about the excellent career options in the collision repair industry. The funds for GCIA’s donation to Maxwell were raised at the association’s annual golf tournament, as well as other events. Batchelor hopes that GCIA will be able to continue supporting Maxwell for many years to come. GCIA PO Box 1252 Cumming, GA 30028 770-367-9816 www.gcia.org

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Continued from Cover

Multidistrict Litigation

tailed and comprehensive. As of the date of the ruling, 22 other cases initially filed in numerous states, including Indiana, Kentucky and Virginia, are currently before Judge Presnell for coordinated pretrial proceedings. In re Auto Body Shop Antitrust Litig., MDL No. 2557, complaints filed (M.D. Fla.). According to the plaintiffs in the Florida action, the defendants exercise control over labor and repair costs by entering into DRPs with body shops. In exchange for providing certain concessions of price, priority and other matters, the defendants list the shops as “preferred providers.” However, the defendants, led by State Farm, allegedly have conspired to use the DRPs as a way to set maximum price limits on the shops’ products and services, according to the suit. If the labor rates are deemed unacceptable, the defendants demand a lower rate, arguing the higher rate does not conform to the market rate and therefore violates the DRP, the plaintiffs argued. Further, failure to comply with the defendants’ demands results in removal from the preferred-provider program or improper “steering” of customers away from the “noncompliant” auto body shop’s business, the plaintiffs say. But Judge Presnell ruled that the plaintiffs offered no details about how or when the insurers entered into the alleged price-fixing agreement. The fact that a number of defendants have indicated an unwillingness to pay more than State Farm has to pay for parts or labor also does not, itself, violate the Sherman Act, he said. “It is not illegal for a party to decide it is unwilling to pay a higher hourly rate than its competitors have to pay, and the fact that a number of the defendants made statements to that effect does not tip the scales toward illegality,” Judge Presnell wrote. The plaintiffs also failed to establish that the defendants may have engaged in boycotting activity by allegedly steering customers away from noncompliant shops, according to the ruling. “There is no allegation that any defendants refused to allow any of its insureds to obtain a repair from such a shop or refused to pay for repairs performed at such a shop,” the judge said. The plaintiffs also cannot move

forward with their claim for tortious interference with business relations, he said, because the defendants had an existing financial interest in the relationship between their insureds and the plaintiffs and were therefore “privileged to interfere in that relationship.” “For tortious interference to be unjustified, the interfering defendant must be a third party, a stranger to the business relationship,” he said. Judge Presnell did, however, permit the plaintiffs to continue with their claim for conversion, which alleges the defendants failed to make full payment for certain labor and material costs. Other defendants in the action include 21st Century Centennial Insurance Co., Allstate Fire & Casualty Insurance Co., Geico General Insurance Co. and Hartford Accident & Indemnity Co. The claims brought by the plaintiffs included: quantum meruit, unjust enrichment, quasi-estoppel, tortious interference with business relations, conversion, and violations of the Sherman Act in regards to price-fixing. All but one count, quasi-estoppel, was dismissed without prejudice, meaning that plaintiffs will be able to file an amended pleading reasserting the counts by Feb. 10. The quasi-estoppel (count III) was dismissed with prejudice, meaning that it will not be allowed to be refiled. The term is described by Florida courts as “… a legal doctrine, applicable in certain limited circumstances, which provides that ‘[a] party cannot, either in the course of litigation or in dealings, occupy inconsistent positions.’” Another way to think about quasiestoppel is: Someone (#1) thinks something (A) is true and takes action based on that belief, someone else (#2) says “A is not true (even though #2 previously said it was)” and that causes #1 to do something that results in harm (i.e. business loss). If it turns out that A was true to begin with, #2 is guilty of quasi-estoppel. The plaintiffs sought to have quasi-estoppel applied in regard to repair estimating databases. According to court documents, “The Plaintiffs allege that the Defendants ‘have relied upon and asserted the validity/authority of the databases... when it has been to their respective advantage’ but that, in other instances, the Defendants ‘have refused to compensate and/or fully compensate Plaintiffs for materials expended and work performed, including labor and labor rates, upon reliance of these very same guides,

32 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

claiming that they are unnecessary to complete the work at hand.’” Court documents stated that the Plaintiffs sought to have the Defendants stopped from denying the applicability and reasonableness of the repair databases; however, the Florida court did not find this to be a cause for action. “The Court’s order is a significant victory for Farmers and the other defendants,” wrote the law firm Weil, Gotshal & Manges LLP, representing Farmers’ affiliates, in an article posted on Weil’s website. “Though the Court dismissed all but one claim—for quasi-estoppel—without prejudice, it strongly suggested that plaintiffs would have difficulty remedying their remaining claims in an amended complaint. Additionally, this decision dismissed claims based on allegations similar to those contained in approximately 20 other cases in a consolidated multi-district litigation pending in Florida, entitled In re Auto Body Shop Antitrust Litigation.” The Weil team represents Farmers’ affiliates 21st Century Centennial Insurance Company, 21st Century Indemnity Insurance Company, Foremost Insurance Company Grand Rapids, Michigan, Bristol West Insurance Com-

pany, and Security National Insurance Company. James Burns, co-leader of the antitrust practice at Dickinson Wright PLLC, told Autobody News that the Court’s most recent ruling is a significant victory for the defendants, and one that could potentially lead to a quick end to the proceeding. “While the Court has granted plaintiffs leave to amend several of their claims, if the proceeding is going to continue they will need to demonstrate that the infirmities identified by the Court in the recent ruling have been remedied in an amended complaint,” said Burns, who is not involved in the MDL proceeding. “Whether that will be possible remains to be seen. In any event, any amended complaint will likely be met by a renewed motion to dismiss by the defendants, setting up another significant ruling by the Court this Spring or Summer.” Eaves said the next monthly hearing is scheduled on Friday, Feb. 6 with Magistrate Judge Smith. When Autobody News spoke to Eaves on Jan. 22, he was in Washington D.C. to meet with members of the House and Senate regarding the introduction of a bill to See Multidistrict Litigation, Page 35

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Chicago Foundation Looks to Help Women and Children Across the Country With Car Donations by Victoria Antonelli, Online Editor

Twenty-five years ago, Molly CantrellKraig experienced firsthand what it’s like to be a single mother raising a fourmonth old without a means of transportation. “I hitched a ride with a friend who was a welder at a local factory,” said Cantrell-Kraig. “He Molly Cantrellwould drop me off Kraig, founder of two hours early for Women With Drive [college] classes, Foundation. Photo credit: @Linda where I would do Horton Photography my homework at a Chicago restaurant across the street from the main campus before school.” Cantrell-Kraig graduated and began working, and was then able to buy a reliable car and provide for her family. She credits her success to a trustworthy mechanic, Steve Curry of Curry’s Auto, Inc. in Muscatine, Iowa. “He helped me to not only learn about how to take care of my car, but

also how to budget maintenance costs,” said Cantrell-Kraig. “To this day, I would trust him with a blank check.” Cantrell-Kraig now dedicates her life to helping women in the same predicament she was once in, through the Women with Drive Foundation (WWDF). She started WWDF threeand-a-half years ago, a dream she had wanted to make a reality since 1997. “I have a media background, not a nonprofit administrative background,” said Cantrell-Kraig. “One of my friends, financial analyst Carol Roth told me, ‘Expect it to take three times as long as you think it will and for it to cost three times as much.’ She was right.” For the first three years, CantrellKraig funded the operation with her personal savings. She spent sixt to nine months researching where similar organizations had failed, to be sure her project would be worth the investment. “The momentum we’re building is significant and every day we forge one more meaningful relationship designed to provide a solution to systemic, generational poverty,” said Cantrell-Kraig.

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The foundation, which started in Iowa and recently relocated to Chicago, IL, donates refurbished vehicles to female candidates who are in a crunch. So, what categorizes a Women With Drive?

Delana, WWDF car donation recipient, steps into her refurbished white Saturn sedan

“The number one quality we look for in a candidate is self-determination. She must want a new life for herself. We do not approach the equation with the idea of ‘saving people,’” said Cantrell-Kraig. “We partner with women in transition, women with drive. These are women who know that they want something different; they just lack access, transportation and systems to teach her how to be-

come herself. Technically, the qualifications are listed on our website: must be drug free, employed or engaged in a program designed to help her become independent.” Local nonprofits, including Jane Addams Resources Corporation, the Department of Human Services, and various churches, lend a hand in the selection process. “These capacity-building organizations help provide the support for the two years our participant is in the programs,” said Cantrell-Kraig. An application and interview with the WWDF board is also required for consideration, she added. “I remember the first time I opened a letter from a woman who applied for a car,” said Cantrell-Kraig. “I had to sit down and cry for a second, gathering myself. It hit me like a ton of bricks: someone was putting her trust in me and our organization to help her and her children. It was humbling and reminded me of the quote from Jim Rohn, ‘Success is something you attract by the person you become.’” Before the car giveaway process can start, a functional vehicle must be

Cantrell-Kraig added. Once a vehicle is donated, it is taken to an Authorized Service Vendor who appraises it, and arranges for WWDF to take title of the car. If it isn’t salvageable or it’s worth “too much” for a participant to maintain and insure, the vehicle or vehicle parts are sold and 100 percent of the proceeds benefit WWDF. If it is worth refurbishing, a mechanic will perform repairs and tune-ups to ensure the recipient has a safe, functional vehicle. “The women [then] buys the car outright, in order to satisfy insurance liability issues. For example, Marcie’s Marci (center) poses in front of her own form of transportation 1999 Honda Accord had a thanks to the Women With Drive Foundation Kelly Blue Book value of Kraig said she initially approached car $4,900, but she purchased it for the dealerships, but they wanted the founcost of tax and title transfer, which dation to buy the cars, which would’ve came to around $200,” explained been out of their budget. However, she Cantrell-Kraig. “This gives the particsaid they are still open to form a partipant a ‘stretch goal’ or a stake in her nership with either a dealership or car own future and absolves us from absorbing risk. Participants are required rental company, such as Hertz, Enterto carry mandated state insurance on prise or Carfax. “It’s one of the reasons we the car for the entire time she is in our moved to a larger metropolitan area,” program. She also pays for her own obtained. As of now, cars are donated through churches or privately by individuals. According to Cantrell-Kraig, usually it’s a scenario where the children have gone off to college or an elderly relative can no longer drive, leaving the vehicle unused. Cantrell-

fuel. Once she purchases the car, it is hers.” Cantrell-Kraig said the WWDF has not partnered with other car giveaway programs, such as Recycled Rides, but hopes the recent move to Chicago will open more doors for the foundation. She also said she is looking to form partnerships with rideshare companies or on-demand transportation services like Zipcar, Enterprise, Lyft and Uber. When asked about the reach of her program, Cantrell-Kraig responded, “We are not national yet, but our boards, local and national advisory, are exploring the method and means to scale to meet a national need. Our Articles of Incorporation are in Iowa, but…we are currently transferring our legal apparatus to operate [in Chicago]. That said, our existing legal structure enables us to award vehicles in every state.” Cantrell-Kraig stresses the importance of working together to improve the lives of women and children in the United States. “Each of us has been in a place where the kindness and confidence of another has helped alter our outcomes,” she said.

Continued from Page 32

Multidistrict Litigation

enforce the 1963 Consent Decree. This was a follow up to his earlier trip in September 2014 when Eaves and more than 65 body shop owners visited the Capital to begin these discussions. “My goal here [in Washington D.C.] is to understand what the best way is to present this in the new congress and decide who is going to take the lead on it and articulate the message,” said Eaves. He said the objective of the lawsuit and the bill is the same. “At the end of the day it’s to protect consumers by protecting the shops that are loyal to the consumers that want to do the repair the right way and the best way and not let the insurance companies cut corners that tie their hands.” *Part V. Conclusion in the court documents incorrectly states that Count IV of the Amended Complaint is dismissed with prejudice. It should have read Count III, Quasi-Estoppel, is dismissed with prejudice. (Please see page 10-12 in court documents for details.)

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AASP/NJ Hosts NORTHEAST™ 2015 Automotive Services Show March 20–22 by Chasidy Rae Sisk

March 20 is right around the corner, bringing with it AASP/NJ’s 38th Annual NORTHEAST™ Automotive Services Show. The increasingly popular event will be held March 20th through 22nd at the Meadowlands Exposition Center, located at 355 Plaza Drive, Secaucus, NJ, 07094. The association has planned an informative schedule of seminars, demos and other industry eventsto ensure that attendees receive as much value as possible from the weekend. Charles Bryant, Executive Director of AASP/NJ, explains, “We host the Northeast Tradeshow to allow everyone in the industry to come together and see all of the new and exciting things that are being introduced into the industry, and allow Charles Bryant National Leaders of the industry to speak at the Leaders Meeting about what is going on in other locations around the Country.” Bryant is very excited about this year’s NORTHEAST™ event. “Members of the industry will have an opportunity to attend training meetings and seminars while attending the show to see what new technology is being introduced in the industry all in one convenient place as well as having the opportunity to purchase items right at the show for discounted prices not available at any other time. Like in recent years, the AASP/NJ NORTHEAST™ Tradeshow continues to grow in leaps and bounds. Based on the preregistrations and participation already taking place, this year will be no exception. This year will be one of the best shows, if not the best show, in many years.” Although NORTHEAST™ 2015 does not officially begin until Friday, March 20th, the National Automotive Service Task Force (NASTF) will be holding their Spring 2015 Board of Directors and General Meetings on Thursday, March 19 at the Meadowlands, in conjunction with the tradeshow. Thursday will begin with a closed Board meeting from 8 AM until noon, followed by NASTF’s General Spring Meeting from 1–4:30 PM. The meeting will begin with the Validation of Collision Repair Workmanship, where a panel of

industry professionals will debate whether self-appraisal is sufficient or if OEMs should require the use of third party validation. The panel will include

est issues impacting the collision repair industry. Topics include training, insurer-mandated parts procurement, autonomous cars, labor rates, paint

an OEM, collision repair shop owners and third party validation contractors. While pre-registration is not required, it is encouraged and can be accomplished through the tradeshow website. On Friday morning from 8–10 AM, AASP National will hold their Spring Board meeting with affiliate chapters from around the country to review the association’s ongoing business operations and consider new member benefit offerings. Board members will also receive updates on the activities, initiatives and programs occurring at the affiliate level. From 1–5 PM on Friday, AASP/NJ and SCRS will co-host the 2015 East Coast Resolution Forum and Leadership Meeting. Historically, this forum has provided industry leaders and influential representatives with the opportunity to network and to share the problems encountered in order to pose possible solutions. AASP/NJ anticipates “this year’s forum to provide the same stimulating dialogue and insight that we have come to expect from the event with the objective to have others shares their successes or challenges that help the group learn in response to specific questions posed by each attendee.” Although attending this event is free, pre-registration is required. For an engaging Friday evening, attendees will want to check out “East Meets West: Montanez and Clark Tackle the Issues” from 6:30–8:30 PM. Two of the industry’s most influential and popular speakers, Larry Montanez of Lange Technical Services and P&L Consulting, and Aaron Clark of Assured Performance Network, will discuss and debate the lat-

and materials reimbursement, lawsuits, cycle times, aluminum, post-repair inspections, and consolidation. The debate will conclude with an open mic forum, giving attendees an opportunity to ask questions. Pre-registration is required to attend. Saturday, March 21 offers a variety of educational seminars and demonstrations throughout the day. AASP/NJ

36 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

has scheduled two I-CAR courses for the event, both taught by Peter Fryzel and Mike Bonsanto. The morning course, “Aluminum Panel Repair and Replacement (APR01),” will focus on what considerations should be taken into account when deciding whether to repair or replace aluminum panels. Instructors will also discuss how making the right decision can help to improve certain KPIs, such as cycle time and CSI. The afternoon I-CAR course, “Vehicle Technology and Trends 2015 (NEW15),” provides an update on new and changed technologies. Additionally, the course will include an “auto show view” of vehicles that will be commonly seen in shops in the near future, and instructors will share information that collision repair professionals need to be aware of in order to perform complete, safe and quality repairs. Both I-CAR courses are feebased and require pre-registration. Besides the I-CAR courses, NORTHEAST 2015 will feature several more informative seminars. Saturday morning starts off strong with two one-hour seminars beginning at

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10AM. In “Damage Analysis and Blueprinting,” Lee Rush, Manager of Business Consulting Services for Sherwin-Williams, will explore the importance of a complete and accurate repair order as well as its role in a lean collision repair facility. Simultaneously, Derek Naidoo, President and CEO of NitroHeat Worldwide, will present “Lean Processing in the Paint Shop: Painting with Nitrogen.” Sponsored by FutureCare, this seminar will focus on techniques used to maximize efficiency and cost savings. The final two seminars this year are geared toward shop owners and managers. From 11:30 AM until 12:30 PM, Lee Rush will present “Administration Performance Management,” outlining specific steps to a successful performance management strategy and detailing its role within a lean collision facility. “Stop Leaving Money on the Table,” presented by John Niechwiadowicz of Performance Consulting Services, will debut from noon until 2 PM with an encore presentation from 3–5 PM. For $25, attendees can learn how accurate quality estimates impact a collision repair facility’s financial health and many other critical aspects of the process.

Throughout the weekend, several demonstrations will also be held. Ford Motor Company’s Damageability Product Concern Engineer, Larry Coan, and the OEM’s Senior Engineer for Paint and Body Repair, Gerry Bonnani, will present “2015 Ford F-150 Repair Information” three times over the course of the weekend at the fol-

AASP/NJ 2015 NORTHEAST Trade Show will be held at the Meadowlands Exposition Center

lowing times: Friday at 7–8 PM, Saturday at 11 AM–12 PM, and Sunday from 11 AM–12 PM. During this demo, Ford’s representatives will provide examples of the new 2015 F-150’s improved repair elements. They will also discuss Ford’s enhanced service information, available training courses, and the tools and equipment recommended for repairing the 2015 Ford F-150.

end, as well as a guest appearance at BASF’s booth by West Coast Customs’ Ryan Friedlinghaus from 10 AM–2 PM on Saturday. Also that day, Ron Ananian, AKA the Car Doctor, will be broadcasting his nationally syndicated radio talk show live from the tradeshow floor. On Friday from 10PM until midnight, AASP/NJ’s Board of Directors will host their annual Exhibitor Appreciation After-Party with a special performance by comedian Gary DeLena. On Sunday from noon until 2 PM, NORTHEAST 2015 will offer their 7th annual Family Day, featuring a variety of indoor carnival games and sugary treats for the kids. Bryant welcomes all in the industry to make the trip to Secaucus next month for a great event, saying “The AASP/NJ is constantly preaching that the industry needs to be united in our efforts to address the many issues that the industry is faced with. You couldn’t find a better place for collision industry members to network than right here at the Northeast Tradeshow, thus bringing the concept of unity closer to reality.” To register for AASP/NJ’s NORTHEAST 2015, visit www.aaspnjnortheast.com.

At 8:30 AM on Saturday, Larry Montanez will cover “Estimating and Diagnosis of Structural Damage on Aluminum-Intensive Vehicles and Joining Methods.” Pre-registration is required for this Metropolitan Car-OLiner facilitated course on the differences between how aluminum and steel vehicles absorb and manage collision impact forces and energy. Montanez will also discuss attachment methods and welding differences. The final demo, “Structural Collision Repair, 2015 GM Vehicles,” presented by GM Service Instructor Jim Mickle and facilitated by NuCar, will take place from 10–11 AM on Saturday. Mickle will cover the three important areas to repairing and replacing a vehicle’s structural components: measuring, cutting and welding. The seminar will also discuss the 2014/2015 Chevrolet Corvette Stingray and aluminum repair procedures for front and rear rails. The tradeshow floor, which will feature a variety of industry vendors and exhibitors, will be open on Friday from 5–10 PM, on Saturday from 10 AM–5 PM, and on Sunday from 10 AM– 3 PM. Featured exhibitors include custom painter Javier Soto who will create a custom design over the week-

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Aluminum Repair Rates

just requires different training and it might require different tools.” He said it should have taken less than 10 hours to repair the truck. Ford has used an aluminum hood on the Ford F-150 since 1997. Levine said that by using high-strength aluminum alloy that’s more dent- and ding-resistant than the steel body of the outgoing truck, the company is able to significantly reduce the weight of the Ford truck by up to 700 pounds. “When we do that, the weight saved comes back to the customer in terms of better performance. The truck accelerates faster, it brakes sooner, it can tow more, it can haul more and it helps get better fuel efficiency,” said Levine. “…In the event of a major collision we’re actually going to save time over the previous steel truck because we’ve designed the truck in a modular fashion so some structural repairs can be completed with less labor,” he said. The 2015 Ford F-150 went on sale this past November and is now available nationwide. In the case of Langness’s truck, he

paid cash for the F-150 repair so an insurance company was not involved. He also made it clear that the truck would not be resold any time soon. Levine said each Ford dealer and independent body shop sets it own hourly repair rates, based on the local market. Todd Hesford, the owner of Mission Viego Auto Collision in Orange County, CA, is in agreement that ultimately it will be up to the individual body shop in regards to price. “From our personal standpoint, I have zero ideas of raising the prices specifically for aluminum repair.” He said as a business if you want to stay relevant and in the game, you need to invest in the tooling and education to fix today’s cars. “To think that we’re going to have two types of costs just because one is made out of a different material, I think that’s foolish because aluminum has been around for a long time and we haven’t had two sets of prices,” said. Hesford’s family has owned Mission Viego Auto Collision since 1979 and been based in the same location since 1983. Hesford, however, did say he finds aluminum repair to be more challenging than similar repairs to steel. “If you speak to anybody, the

OEMs, the insurance companies, the collision centers, they are all going to agree and tell you that repairing aluminum is more difficult and it does take longer.” After watching the video, Hesford said, “I don’t think the test was very fair. You say you want to do a test and a comparison, where is the same hit on the same truck with the same amount of pressure in the same spot with a steel-bodied car?” He did find it impressive that the aluminum held up. “Hat’s off to Ford because that thing took a hit,” he said. “The one thing I learned is that truck is tough!” Oldham from Edmunds.com said this experiment underscores the importance of buying and testing vehicles to give their audience a true scope of the ownership experience. “We’ll continue to put our Ford F150 through the paces over the next year and report on all of the good and bad and everything in between,” he added.

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I-CAR® Hybrid and Electric Vehicle Disable Search

I-CAR® announced in Jan. the launch of the Hybrid and Electric Vehicle Disable Search on the I-CAR Repairability Technical Support (RTS) Portal. In the Hybrid and Electric Vehicle Disable Search, repair professionals will find information on how to identify where parts of the hybrid or electric system are located, how to disable the system before beginning a repair, welding best practices and refinish precautions. “The RTS team has worked diligently to bring all of this information into a singular location because of the importance for all repair professionals to understand how to properly disable hybrid and electric vehicles to ensure their own safety,” said Jason Bartanen, Director of Industry Technical Relations for I-CAR. “In addition to technician safety, if the vehicles are not properly disabled they can cause damage to the vehicle.” For more information on how to safely approach hybrid and electric vehicles after a collision, and how to understand the risks and risk-avoidance of working around alternative fuel vehicles, technicians can choose from Live and Online training from the I-CAR Professional Development Program™.

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Lean Operations

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

Make More Money Using Theory of Constraints with David Luehr

Most of you readers have heard about Lean thinking, Lean manufacturing, or simply Lean. But have you heard about the Theory of Constraints (TOC)? I know some of you have, but as with Lean, the concept may still be a little unclear to you. Although there are both commonalities and differences between Lean and TOC, I believe collision re-

pairers can benefit from understanding and applying both ways of thinking to their repair businesses.

Lean The word Lean was originally used in James Womack’s 1990 book entitled “The Machine that Changed the World.” His book described the dominance of Toyota and the effectiveness of a production system that banishes waste from the value stream. This lean thinking has revolutionized many industries and still does today. Unfortunately, many collision repairers have made attempts to implement such thinking and systems in their shops with limited results at best. While I believe that there are many benefits to creating a lean culture and adopting lean methods and using its tools, few shops that I am aware of have figured out how to fully realize their profit potential unless they have also become familiar with the Theory of Constraints.

Theory of Constraints The Theory of Constraints was first introduced to us by an Israeli physicist name Eliyahu M. Goldratt in his 1984 book “The Goal.” This book has had a profound effect on my life since first reading it in the early nineties. I would highly encourage all of you to read this book too. Although there is a little more to it, it is basically bottleneck management and adopting an understanding that there is always at least one resource (department, machine, person) in your business that is a lim-

iting factor to your throughput ability (making money).

Local efficiency vs. global efficiency The problem with many collision repair businesses is that silos are created in each department, each attempting to perform their portion of the work to whatever feels most efficient to them. On the surface this “local efficiency” may look like a good idea because everyone is motivated to perform their best; however, the problem with this is it can create dramatic peaks and valleys in the flow of the work from one department to the next. For example, if it is more efficient for a paint shop to primer the whole day’s work at one time or wait until all the bumpers are prepped and ready before loading into one giant booth batch, guess who usually suffers? That’s right, the guy that has been waiting all day to build his cars and now the paint shop unloads all of them at once! This poor technician can only build one car at a time so cycle time and global efficiency suffers. Both Lean and TOC teaches us that sometimes we actually need to reduce batch size in order to improve throughput. Focus on global efficiency instead of local efficiency. The 5 Steps to busting bottlenecks Theory of Constraints uses a systematic approach to busting bottlenecks and increasing your shop’s ability to make money.

Step 1: Identify the constraint. This step is usually pretty easy to identify because it is usually the resource that has the most inventory (cars) stacked in front of it waiting to be worked on. In many shops I find the constraint to be the paint booth (or poor use of the booth), but in many advanced shops that are performing thorough disassembly and blueprinting, the hold-ups are commonly there. Also it is not uncommon for the biggest constraint to be the front office itself.

Step 2: Exploit the constraint. Exploiting the constraint involves making sure we are using the resource as effectively

40 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

as possible. If the paint booth is the constraint, are you effectively using it during all the work hours in the day, or does it sit empty until 10 am? Also consider the hours the booth is in operation. There are more than eight hours in a day; you get to choose how to use them.

Step 3: Subordinate to the constraint. When you subordinate to the constraint you are effectively making sure it does not get interrupted or delayed in any way. Again, if your booth is a constraint, you would want to make sure that the quality of the prep work was sufficient and your colors were tinted so no additional delays would occur while the vehicle was in the booth. You should also make sure the booth is well maintained to avoid mechanical failures. Blueprint/Damage analysis departments are often a constraint yet I am amazed at how often the people performing these opera-

tions are routinely interrupted to deal with other issues. You need to “protect” your constraint at all costs! Subordinating also means making sure that everyone in the shop clearly understands that nothing comes before the constraint, especially their own agendas of silo efficiency.

Step 4: Elevate the constraint. This step simply means to make the department, or resource bigger. It could mean you need to add a tech, buy a frame rack, or perhaps apply some Lean tools and techniques to increase the constraint’s capacity. Again, the size of your constraint dictates the size of your potential throughput.

Step 5: Repeat steps 1-4. Much like Lean, TOC is a continuous improvement process. Once one constraint is identified and resolved, begin at Step 1 again. See Make More Money, Page 54

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National Associations

Strong and Getting Stronger: The State of I-CAR® with Ed Attanasio

We sat down with Jeff Peevy, the Senior Director of Field Operations and Segment Development at I-CAR® to talk about some recent events and a few misconceptions about the organization. Most repairers know that ICAR is a not-for-profit organization dedicated to providing the training, knowledge and skills required to perform quality repairs that are needed by all participants in the repair process, but not many know the scope of the organization. Peevy leads a team of over 2,000 volunteers, instructors and field managers who team up to conduct over 15,000 instructor-led classes and certification in the U.S. each year. He also oversees the strategic development of I-CAR support and services for the “Repairer” market segment. During his 32 years in the automotive industry, Peevy has worked as a technician, shop manager, instructor, National PBE manager for a large U.S. supplier, and director of Technical Training and Application Research for an automotive paint manufacturer. He holds a business administration degree and a position on the board of directors for the National Auto Body Council. He is also a member of the Society of Organizational Learning, which grew out of an MIT program designed to foster collaboration among corporations committed to fundamental organizational change. Peevy has a passion for promoting the critical role that knowledge plays within repair operations. Over the past five years he has been leading a team studying the impact that knowledge and skills have on operational performance. The research findings directly correlate knowledge acquired through training with gains in business Key Performance Indicators (KPIs) and improved competitive advantage. A “learning culture” is a necessary element to the future success of collision repairers. One Major Misconception about I-CAR: “A lot of people don’t realize that I-CAR is a not-for-profit organization and that means that we are a very vision and mission focused organization ever since our founding in 1979. We have approximately 2,000 volunteers who are from different seg-

ments of the industry and 315 volunteer committees in the United States. They believe in the organization and the value of training to the extent that they give up their personal time Jeff Peevy is the to really help the Senior Director of organization in a Field Operations variety of ways, inand Segment Development cluding helping us at I-CAR® find classrooms to use and assisting with promoting and scheduling classes. Without these highly driven and very dedicated volunteers we could not be where we are today. We also have approximately 480 part-time instructors; most of them have other full-time jobs. They are paid employees of I-CAR, but they go above and beyond the regular call of duty. Most of them started out as volunteers like I did and they got bit by the bug. There are definitely some benefits to being an instructor. Besides the pay, there’s the access to the updated technical information, and the networking is a big plus as well. Most of these people get bit by the training and it’s pretty addictive.” The Re-ignition of I-CAR: “Today, I-CAR is spearheaded by our CEO and President John Van Alstyne. He joined the organization in 2010, bringing with him 20 years in the OEM and vehicle technology sector of the automotive industry. His is a truly a strategic leader and visionary who is dedicated to preparing the industry to repair the vehicles of tomorrow. Before he joined, though, it was a real challenging time for the organization from 2006 to 2008. We were limping along and struggling to develop forces. Everyone rolled up their sleeves and just started looking at ways to be better. There was a core group of us and it was kind of do-or-die at that point. And there were two things that needed to happen--one was to organize and capture the feedback in meaningful ways and the second was to build the mechanisms from which that feedback could be disseminated into a place that would lead to action. So, we started implementing a formal project management system, and then we de-

42 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

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

veloped a program we call ISAC and that stands for Industry Segment Advisory Council. We went out into the shops and asked questions. A lot of these people had been very critical of us in the past, and we wanted their feedback. We asked them to sit down with us and we picked their brains. We asked them if we could meet with them regularly and they agreed. It’s been wildly successful for us and the industry has been extremely kind. Many of those people who really had lost faith in I-CAR had come to the table and helped us develop a direction. And that was how we developed part of the same professional development program that we use now. Between these actions and John’s leadership, we have definitely turned the organization around and are on the right path.” Role Relevant Training: “We had hundreds of collision repairers, insurance people, tech schools, suppliers and automotive manufacturers working with us. By using the information they

shared with us, we developed the roles that we now have in our role relevant training. The goal was to develop a standard of knowledge and we simply facilitated that process as staff. We did not manipulate it or make it something that was pre-conceived; rather, we listened closely to the industry and then acted on it. We launched it in July of 2010 and it has been a success. In the old system, the classes weren’t based around roles, so people just took the classes for the points. People needed the points for the recognition program so it didn’t matter what class they took and that was one of the main criticisms. Now, we analyze every class to make sure it’s relevant and we drill down into those knowledge areas. From a legacy standpoint we wanted to make sure that anyone who had taken classes in the past would receive credit for that. It was a mixture of current courses and new courses and that model is still implemented today. It’s a very dynamic

system and there is a process of continually updating courses and building new courses and making sure each one is relevant to what’s going on. Our CEO & President points out every chance he gets about the ‘technical tsunami’ of new vehicles, new technologies and new materials— each year, roughly 65 vehicles are debuted or redesigned, many of them manufactured with unfamiliar materials and systems. This requires a pretty robust process, and we’ve had to expand our organization to keep up with it.” I-CAR Today: “People say that ICAR is in the best position it’s ever been in and I would say that’s true—and not just financially. Our leadership team is outstanding, we get things done. We are in the best position we’ve ever been in with OEM relationships, and turning these OEM relationships into courses. Our overall ability to develop relevant courses and the talent we have at the ICAR Tech Center has grown dramatically. We’ve redesigned and invested in our processes to develop and update courses. We implemented a state-of–the art Learning Content Management System to help us develop new classes better and faster. To better support the industry, we’ve greatly expanded our

customer service support and marketing programs. We are now much more responsive to the industry, doing the things that we desperately needed to do. And all of this is greatly helping the collision repair Inter-Industry as a whole, including front-line technicians, shop owners, estimators, insurance specialists and field educators.”

knowledge and skills that contribute to proper repairs, improved business performance and risk reduction. It took about two years for the shops to get aligned in that transition and we have a little over 3,000 or so shops that have gone through the three levels of training for the Platinum designation, each referred to as an I-CAR ProLevel®. Each

“People say that I-CAR is in the best position it’s ever been in and I would say that’s true—and not just financially.”

The Professional Development Program transition: “It took about two years to transition to the I-CAR Professional Development Program™ (PDP), which trains collision repair professionals in essential role-relevant knowledge and skills. The PDP had tentacles into the I-CAR Platinum Individual® recognition program, which is for collision repair professionals who achieve and maintain high levels of role-relevant training that contributes to complete, safe and quality repairs. For businesses, the I-CAR PDP provides collision repair and insurance businesses with a reliable training framework for acquiring Gold Class® and maintaining the up-to-date

—Jeﬀ Peevy

ProLevel progressively builds upon prior learning to continually advance each professional’s knowledge and skills. We’ve seen a growth in training since the development of PDP and especially with the ‘technical tsunami’ of new and redesigned vehicles.” Reparability Technical Support: “Following months of extensive development, I-CAR officially launched the Reparability Technical Support (RTS) portal this past July. The portal was designed to improve accessibility of critical repair information for the entire collision repair industry. I-CAR collaborated with OEMs and others in the industry to improve accessibility of

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critical repair information. The portal houses thousands of pages of OEM repair information specific to vehicle models in a user-friendly format that can be accessed by smartphone, desktop computer and everything in between. A key element of the portal is the ‘Ask I-CAR™’ features, where technicians can submit a question online or call I-CAR technical experts for advice on their toughest repair questions. In addition to the portal, the RTS initiative is working to bridge the gap between OEMs and the collision repair industry by acting as a linking pin between the two, and hosting summits and Industry Segment Advisory Councils.” The Learning Culture: “To be effective, training programs should not be positioned as a requirement or simply a box to be checked. Rather, a learning culture should be established within each organization in the collision repair ecosystem. Training should be encouraged, accomplishments should be rewarded, and those trained should be viewed as achievers and role models. After years of studying the connection between training and improved performance, I-CAR has identified that ‘Learning Culture’ is the secret sauce to becoming a top performing shop.”

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Industry Insight with John Yoswick

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

Testing Shows Dramatic Differences in Isocyanate-Blocking by Spraysuits gamut here. Our objectives here were New testing announced at the Collision Industry Conference (CIC) earlier to determine if there is a viable way to test a suit for isocyanate exposure, and this year indicates that not all spraywithinEd Attanasio suits are created equal terms of preif so, do we see any variability when venting penetration of isocyanates. comparing suits. We absolutely can Brandon Thomas of GMG En- test the spraysuits, and absolutely can virosafe shared the results of testing look at the variability within these his company had done on six spraysuits and the type of protections they suits with brand names including actually provide the painters.” Thomas said he conducted the DeVilbiss, DuPont, Sata and Shoot Suit. Without disclosing which test re- testing because of the conflicting or with Ed Attanasio sults were for each specific suit (be- unclear responses (if any) he received cause of liability concerns), Thomas last fall from the manufacturers of showed that only one of the six ap- spraysuits when he asked if their suits peared to fully prevent isocyanate ex- provide refinish technicians with proposure. Four others showed varying tection from isocyanates; some of the levels of exposure, and one appeared manufacturers told him no such testto offer no more protection than not ing was possible and that only manuwearing a suit atwith all. Ed Attanasiofacturers with “deep pockets who can “This is not a finger-pointing ex- afford lawsuits” make any claims ercise,” Thomas said. “It’s an exercise about the protection their spraysuits to see if we can do better due diligence offer. In his presentation at CIC, held in terms of what we’re equipping our in January in Palm Springs, CA, employees with. Do all spraysuits perEdhave Attanasio form the same? with No. We a full Thomas emphasized that the testing

Shop Showcase

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SEMA Show Goes On

was not designed to indicate the level of health risks to which painters wearing the various spraysuits may be exposed. Thomas’s testing was not examining how much isocyanate exposure painters face while spraying in the booth. In fact, his testing began by having a painter wear one of the testing sensors on his wrist outside of the spraysuit. After spraying clearcoat on two fenders and a hood for about 10 to 12 minutes, the sensor showed no isocyanate exposure. (Thomas postulates that this may be because more exposure time is necessary, or that the sensors may have showed more exposure if placed lower in the booth on the painter’s lower legs.) So Thomas’s testing was done by placing the sensors on a spraycard placed inside the same area in each of the suits, then spraying that area directly for about five seconds with a pass from right-to-left and back again. (A similar test to simulate a spill ex-

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posure had similar findings although one suit that fared fairly well in the spray test did less well in the spill test.) The sensors turn bright orange with initial isocyanate exposure and a more dull, brownish orange with more saturated exposure. Based on this testing, only one of the six suits tested prohibited isocyanate exposure. “But this is not a working environment of standing and spraying in a booth for hours,” Thomas said. “What we wanted to confirm is we can test these suits, and we have that ability. So some of the manufacturers’ claims that there is no test is false. And we want to invite and engage the manufacturers to take some ownership of this.” He said his next step is to present the findings to the manufacturers “to give them the opportunity to recreate it or maybe test all their suits, and then share those results with the [CIC] body.” See Isocyanates, Page 47

Insurer recognized for emphasis on safety and pollution-prevention

Geico has received the “2015 Excellence in Safety and Pollution Prevention Award” from S/P2, an organization created to help the automotive service and repair industry meet OSHA and EPA guidelines. Bob Medved of S/P2 presented the award to Geico’s Joe Lacy at the Collision Industry Conference (CIC) held in Palm Springs, CA. Medved said Geico “excels at safety and pollution prevention,” providing S/P2 training for its entire claims staff, and requiring at least one person at each of its direct repair shops complete the training and testing. In accepting the award, Lacy acknowledged that in the past he “wasn’t a very safe person,” and that he was “no stranger to emergency rooms.” But having a doctor with a scalpel inches away when he had metal in his eye convinced him to become more focused on safety. “I don’t ever want to do that again,” Lacy said. Each year, S/P2 provides training and testing of more than 100,000 students, instructors, shops and claims staff nationwide through industry-specific online safety and pollution prevention training. For more information, visit www.sp2.org. 44 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

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On Creative Marketing

New Century Marketing Basics with Thomas Franklin

Global changes are reshaping the na- sages could be added to customer inture of marketing today. In the earlier voices, receipts or warnings and warpart of the 20th century, efforts to ranties, let’s take a look at cooperative reach a prospective customer were re- marketing. Your local grocery store ferred to as “advertising.” Promotion, may attach, in addition to food items, product packaging and publicity were offers for car washes, auto insurance, all considered parts of advertising. medical insurance and even legal Gradually these became four separate services. These are blatant exchange specialties. Now these functions have deals. Anyone redeeming one of these with Dick Strom been coming together again, to be- deals will generate a commission or come a more complicated tool we finder’s fee for the store. While a shop could simply call “marketing.” For excould offer detailing, pinstriping, acample, most invoices you receive in cessories and more, the revenue from the mail these days will also have of- referred business is found money. Colfers to purchase other products or lision repair shops have natural conservices. Your website may well have nections with upholstery shops, glass links to other businesses. If you do shops, entertainment system shops work for a dealership, your advertisand more, all of which would weling will probably be at that dealership come additional business. and their advertising will be at your Most businesses rely on a few shop. Even your phone message may simple marketing and sales basics to withcompanies Lee Amaradio Jr. new business and keep cusrefer to insurance and build other businesses. These and other astomers coming back. Collision repair pects of marketing are probably well centers may not rely on the same baintegrated into your shop’s communisics, but are there ways they could? cations with the outside world. Or are The six more general marketing and they? If not, you may be missing out sales objectives include: (1) Simply inon many simple (and possibly free) creasing the number of customers, (2) ways to market your business. increasing the number of customers For simplicity sake, let’s start coming back, (3) increasing the numwith “free.” Today it’s nearly imposber of products each customer buys, sible to buy a product that doesn’t (4) increasing how often customers have reasons printed on it why the buy their products, (5) increasing the Sheila product you justwith purchased is theLoftus best total dollar value of customer purchoice, the most cost effective and chases, and (6) increasing the effecperhaps the healthiest. Many stores attivenss of advertising and marketing to tach a multitude of coupons and offers bring in both new and prior customers. to every sales receipt. The package, Some shops do well at getting sales slip or labeling had to be printed new customers and keeping many anyway, so whatever message is coming back. Others keep improving placed there is essentially free. Do the effectiveness of their advertising most shops give customers printed in- and marketing to attract new cusvoices? Maybe not, but they could. tomers and keep old ones coming Before we get into what mes- back. But most shops seem to neglect

Opinions Count

Action Counts

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

3, 4 and 5. These basics don’t easily apply to the collision repair business, but if a shop can find a way to implement these basic strategies, it should enjoy a nice increase in both volume and profitability. Dealerships make better use of these basics. If a dealership has a collision repair shop and also the usual mechanical maintenance, accessories store, and repair shop, they have an opportunity to increase frequency of visit. They may also be able to increase the dollar volume of sales during those visits. But do they use this advantage to increase 3, 4, and 5 for their collision repair shop? I found many dealership body shops that failed to take full advantage of their relationship with their mechanical maintenance and repair shop. Marketing today means seizing an opportunity to attract new customers from every possible connection, or to make a profit by helping other businesses

get new customers. Possibly the most neglected dimension of marketing in collision repair shops is public relations. This is broadly defined as using publicity and the media to say nice things about the shop without it being a paid advertisement, but even that has changed today. Except for an occasion article in a collision industry publication, it’s rare to see a story about a body shop in any newspaper. Today the Internet serves as the common press medium. Comments on Yelp and other rating sites are nearly all the publicity shops receive, but it doesn’t have to be that way. People still love to read about pets being saved and heartfelt stories about babies and children. The right photo and story can go viral on YouTube, but it takes a very talented public relaitions person to capture it. Marketing basics haven’t changed that much this century but the forms they now take call for a keen eye to see how to apply them.

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Continued from Page 44

Isocyanates

“There are a lot of options out there, and unfortunately, shops are liable for choosing the correct suit, not the manufacturers and not the jobbers or distributors,” Thomas said. This was the fourth consecutive CIC meeting that included discussion of isocyanates, a family of chemical compounds, found in several products used in collision repair (most notably, clearcoats), that can pose serious and permanent health risks if not handled properly. According to the National Institute for Occupational Safety and Health (NIOSH), workers improperly exposed to isocyanates can suffer permanent respiratory complications, and even death, from a single episode of overexposure or intermittent exposures at low concentrations. They are a leading cause of occupational asthma. The Occupational Safety and Health Administration (OSHA) has stepped up inspections of body shops nationwide as part of a three-year emphasis (until mid-2016) on protecting workers from isocyanate exposure.

Collision repair is one of about 10 industries targeted by OSHA under the program. The OSHA shop inspections under this program are not brief; they may be conducted over three or four days, possibly spread out over several weeks. Inspectors are checking a shop’s chemical inventory, safety data sheets, hazard assessment training and personal protection equipment (PPE). They are checking the shop’s OSHA 300 logs for five years, and reviewing workers' medical records. They are interviewing employees to ask about PPE usage, asthma diagnosis, or symptoms (such as watery eyes, shortness of breath, chest tightness) that occur at work but dissipate away from work. And they are conducting air sampling and wipe sampling on skin and PPE—and even in areas such as drinking fountains or employee break rooms where other employees could be exposed to isocyanates if a painter, for example, sits down or touches items while still wearing a shootsuit or gloves. How long do isocyanates on such surfaces pose an exposure risk for others? Speaking at CIC last fall, Catherine Sayles of Bayer Material Science,

a raw material supplier of isocyanates to paint manufacturers, said it varies. “If it’s still wet, I would definitely say you have that potential,” she said. “Once it’s dry, it depends on how much of it is there, how thick it is, how much isocyanate is actually in the product.” She said shops can check for surface or skin contamination from isocyanates—after clean-up of a spill, for example—by using Swype test kits for aliphatic isocyanates. Sayles also said her company recommends the use of nitrile gloves (not latex) when working around isocyanates, but cautioned that shops can no longer presume that “blue gloves” are nitrile as opposed to just latex. “In the past, the latex manufacturers always made their gloves white and the nitrile gloves were blue,” she said. “Now the manufacturers of latex gloves are also making them in different colors, including blue. So there’s confusion sometimes as to whether a blue glove is latex or nitrile. You want to make sure you’re paying attention to the box and what kind of glove you’re using, because latex gloves are not adequate for isocyanate protection.”

Sherwin-Williams Second Quarter Training Schedule

Sherwin-Williams Automotive Finishes announced on February 2 its latest second quarter 2015 collision repair industry courses and training sites that will be available from April 1 through June 30, 2015. Participants will learn through a combination of classroom, digital, and hands-on settings at various metropolitan Sherwin-Williams Automotive Finishes training centers, according to Rod Habel, Sherwin-Williams Automotive Finishes Director of Training Operations. “Our hands-on and digital classroom training is available to all shop owners, managers, painters, and technicians, who can choose to advance their business-building, production-excellence and/or paint application techniques, as needed.” He noted that the following hands-on, paint and processes application-based courses will be offered during the first quarter: AWX Performance Plus™ Waterborne Refinish System; Color Adjustment and Blending; Fleet CFR; and Painter Certification. For information about the training visit http://www.sherwin-automotive .com/collision-repair/training-support/ or call 1-800-SWULTRA (1-800-7985872).

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Lean Operations

Cycle Time Success Using Little’s Law with David Luehr

“Get The Keys!” is the usual mantra below, it represents a repair shop that at most collision repair shops these averages two vehicle deliveries a day. days. That is completely understandThis shop has 10 cars in it. 10 divided with Jennifer Driscoll-Chippendale able given that the only way we can by 2 = 5 days average cycle time. profit from that vehicle’s damage is if we get the keys first. If you are a fortunate enough collision center to have plenty of work coming in, that thinking could be a problem. That problem with Erica is Little’s Law and it plays a hugeEversman role in your performance. Big MSOs understand this law very well and have taken many steps to ensure they maintain an optimum car count or “WIP” through the use of scheduling or load leveling. By unLet’s take a look at the same shop Attanasio derstanding thewith correctEdnumber of again, only now they have been grabunits to have at your repair facility at bing a lot more keys! What would the any given time will give you the op- average cycle time be now? You do portunity to maximize both profits and the math. cycle time. I will boldly go forth and In order to reduce cycle time, you say that the number one biggest influ- often must reduce your WIP. The trick ence on most shops' withcycle Ed Attanasio time performance is simply based on the amount of work they bring in each day. There is nothing magical about bringing all the repairs in on a Monday unless you can start on all with of themEd onAttanasio Monday! Little’s Law was named after MIT Professor, John Little and is a mathematical formula that is is to not lower the WIP to the point used to calculate cycle time. In the case that people are standing around and of collision repairers, we usually measyour revenue begins to suffer. Conwith Victoria Antonelli ure cycle time from the point a customer versely, if you have too much WIP and drops off their vehicle until it is finished feel your cycle time may suffer, you and picked up. (Keys to keys) may need to consider a temporary increase on production hours in order to Check it out… return to Optimum WIP levels. Cycle Time Performance = WorkTo choose an Optimum WIP Unit in-Process Units with (Number of Cars) dinumber Chasidy Rae Sisk for your shop – reverse the vided by/daily throughput (Average math: number of units produced per day) ► Find your average number of repairs

The Legal View The Legal View

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to keys days) ► Multiply repairs produced daily X goal cycle time days = Optimum WIP Units Example: XYZ Body Shop produces four cars a day on average and wishes to reduce its cycle time to an average of seven days per RO. 4 X 7 = 28 XYZ Body Shop must maintain a work in process (WIP) count of 28 cars to achieve its cycle time goal of seven days. However, if XYZ Body Shop does not have the systems and resources available to effectively process the reduced number of ROs quickly, they run the chance of damaging revenue. I recommend that you set your goals to reduce WIP incrementally as your system improvements allow. You can see the important role that work-in-process plays in cycle time performance. The path to Optimum

Performance must involve Optimum WIP and it all begins with good scheduling skills and habits. These habits do not need to involve over-rated fancy computerized scheduling solutions, it can be done using a simple spreadsheet and a little common sense so don’t over-think it. Feel free to email me if you would like to see an example of this, but you may be disappointed by its simplicity. dluehr@msn.com There are many things that affect your cycle time performance, but understanding Little’s Law and simply paying attention to your Optimum WIP could have a huge impact immediately!

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(keys in hand, authorization to repair) Cycle Timewith Ed Attanasio

Performance =

Average # of cars delivered per day

(You can also measure using Dollars or Labor Hours instead of units) So if you look at the funnel graphic

produced daily (Total vehicles delivered divided by days in the month) ► Choose your goal cycle time (keys

48 MARCH 2015 AUTOBODY NEWS | www.autobodynews.com

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Car Purchases Expected to Soar in 2015

Huntington Bank’s Third Annual Midwest Economic Index states 16 percent of consumers will purchase a car in 2015. The response represents a 10 percent increase over definite intent for car purchases in 2014 for consumers interviewed in Indiana, Michigan, Ohio, Pennsylvania and West Virginia. “It’s still a great time to buy,” said Huntington Auto Finance Director Rich Porrello. “Consumers are benefitting from low interest rates, high trade-in values and a wide range of

manufacturer incentives. Add to that enthusiasm for an outstanding 2015 model year, falling gas prices and the ongoing economic recovery, and we’ll continue to see strong buyer demand throughout the year.” In comparison to consumers with definite plans to purchase a car in 2014, the Midwest Economic Index revealed increases of 13 percent in West Virginia, 12 percent in Western Pennsylvania, 11 percent in Indianapolis, 9 percent in Michigan and 8 percent in Ohio.

The automotive industry has now experienced five consecutive years of growth in the number of autos sold and is poised for a sixth in light of increased consumer optimism about the U.S. economy. However, studies by IHS Automotive on Polk Co. registration data found that the average vehicle on American roads runs more than 11 years old. In line with this growth, Huntington experienced its fifth consecutive year of record loan production in 2014.

With loans totaling $5.2 billion, Huntington financed more cars than any other time in its 60-year history serving the automotive industry. During the year, Huntington added hundreds of dealers to its network, which now totals more than 3,700 dealers in 17 states. Additionally, Huntington held to super-prime lending, serving dealers locally and delivering 70 percent of indirect loan decisions within three seconds or less.

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Social Media for Shops Instagram and Twitter Grow Up

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

with Ed Attanasio

I am not afraid to admit it when I’m gram are praising it for bringing them wrong. I never thought eBay would business and gaining more traction work and that’s exactly what I said to with their younger customers. Roger the company’s Founder Pierre Omid- Henson, the owner of Advertising with Ed Attanasio yar one day back in 1995 in San Jose, Business Consulting Associates in SilCA. He’s now a billionaire and I live icon Valley has been doing marketing in a van down by the river. And I had for automotive companies since 1979 a chance to be one of the first em- and he’s excited about photo app for ployees at Netflix many years ago, but several reasons. I opted out—because I could not be“Almost every week, one of my lieve that peoplewith would Ed mailAttanasio the discs automotive customers asks me about back to the company. Bad move. So, one form of social media or another last year when I said that Instagram and most of the time I tell them no,” and Twitter were going to trend down Henson explained. “If you’re using a and that they weren’t ideal for the col- form of social media that does not lision industry, well-that too was a bring you business, what’s the point? mistake. Now I’m willing to do my Companies see their competition using mea culpa…once again. Pinterest, for instance, so they want to Instagram: The millennials do the same. But in the end, it’s a call it “The Gram” and sure, Justin waste of time and the worst thing you Bieber and the Kardashians post can do is leave it dormant. Time is every day, but now small businesses money and just because Joe’s Auto such as body shops are doing the Body is using it does not mean it will same. If you’re not familiar with In- work for you. We do an in-depth stagram, it’s an online photo-sharing analysis of every form of social media and social networking service that that’s out there and right now Instalets users take pictures, apply filters gram is hot, hot hot! So, for shop ownto them and share those pictures in ers or marketing people at MSOs who several ways, including through so- are against Instagram, I feel like cial networks such as Twitter and they’re living in the dark.” Facebook. Instagram is available as So, exactly why is Instagram so an application for iPhone, iPad and hot currently? “My clients use InAndroid devices. stagram to educate their prospects Instagram was the 7th largest US by posting photos, videos, and hostmobile app in 2013 with 33 million ing contests. We have one body shop unique users, a 66% increase from that is giving away soccer tickets as 2012 according to Nielsen. About 40 a promotion and we know for a fact million U.S. users accessed Instagram that they received at least a dozen on a monthly basis in 2014 according jobs from it. The whole idea is use to eMarketer. Instagram users repre- social media to stay in the public sent 16.1% of all Internet users. It is mind’s eye and then when they need roughly one eighth the size of Face- you, they’re already familiar with book, yet has 15 times the engage- your name. Visual social media is ment and twice the engaged user base what Instagram is all about and I of its parent company. Almost 25% of now recommend it to most of my auU.S. smart phone users interact with tomotive clients.” Instagram at least once per month. Twitter: I swore I would never Roughly 67% of U.S. Instagram users Tweet, but I also said I would never are between 18 and 44, namely mil- use Grecian Formula. You get older lennials and GenX. and hopefully you get wiser. Although Body shops that are using Insta- Twitter isn’t exactly my cup of tea, I

SEMA Show Goes On

can clearly see it is strong and getting stronger. With 250 million users, 80% of them using it via mobile devices, Twitter is here to stay. As an online social networking service that enables users to send and read short 140-character messages called "tweets", registered users can read and post tweets, but unregistered users can only read them. H&V Collision Centers, with five locations in upstate New York has been using Twitter successfully for more than two years and Instagram for almost a year, according to the company’s Marketing Manager Rhianna Herring. “We want to connect with our entire demographic and we know that Twitter and Instagram are helping us to reach all of our potential customers, not just the ones in their 20s,” Herring explained. “We have tracked the results and we know that we’re getting new jobs from Instagram and Twitter.

Media and Publicity for Shops

Our success with both of them is based on the fact that we provide a lot of content and we try to keep it interesting. With five shops, there’s a lot going on and we try to distribute all of our content amongst all of the locations. Variety is key, because how many pictures of satisfied customers with their vehicles can we run? By constantly changing our message and keeping it fun, we’re able to keep our audience engaged on both platforms. We never spam our followers and we never try to hard sell them, and I think our audience appreciates that.” So, if part of your New Year’s resolutions involves working harder and smarter at your marketing, maybe it’s time to add a few tools to your social media mix with Instagram and Twitter. If you get one new customer every month, why not at least give it a try and then re-examine them after say, six months? You might be pleasantly surprised with the results.

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Bobby Alloway’s PPG-Painted Car Wins 2015 AMBR Award

A Bobby Alloway-built car won the 2015 America’s Most Beautiful Roadster (AMBR) award at the Grand National Roadster Show (GNRS) held Jan. 23-25 at the Pomona Fairplex in Pomona, CA. The striking 1933 roadster, owned by Larry Olson of Sioux Falls, S.D., was finished by Alloway and drew approval from the show judges and the crowd alike. The AMBR, an eight-foot tall trophy, is awarded annually and is regarded as the ultimate recognition of a roadsterstyle hot rod. It was Alloway’s second time winning the prestigious award; his first was in 2003. Alloway also won Best Rod of the GNRS this year with the ‘37 Chevrolet coupe that was in the top 10 in the Builder’s Challenge at SEMA this past November. The GNRS started in 1950 and is the longest running indoor car show in the world. This year, 18 competitors vied for the AMBR. Alloway’s award-winning entry featured his signature black finish embellished with contrasting blazing orange flames running nearly the entire length of the roadster’s body. Alloway uses PPG products exclu-

sively, and this showpiece was no exception. He achieved the car’s outstanding look with PPG’s DEL-

cars are almost always painted black, has been building ageless street rods since 1978. His shop, Alloway’s Hot

Car owner Larry Wilson (left), builder Bobby Alloway and the AMBR trophy in front of the awardwinning roadster

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Rod Shop, in Louisville, TN, opened in 1991 and has consistently turned out a stream of award-winning vehicles. He is well known for cars that feature

a commanding, aggressive look obtained through a combination of color, proportion, stance and pure power. Along with winning the AMBR and Best Rod honors, Alloway was inducted into the GNRS Roadster Hall of Fame during the show. The Hall of Fame was established in1960 to elect “outstanding pioneers in the creative car building sport.” Alloway’s entry into the respected body was based on his illustrious career, building remarkable cars that have received significant awards. In addition to his two AMBRs, his cars have won the Goodguys’ Street Rod and Street Machine of the Year, the highly-prized Ridler trophy and others. He has also been welcomed into the National Rod & Custom Car Hall of Fame and honored as Detroit Autorama Builder of the Year. Other first-class builders that were big winners at the show included Randy Borchering of Painthouse in Cypress, Texas, and Dave Kindig of Kindig-It Design, Salt Lake City, Utah. Borchering’s two-toned 1947 Hudson painted in his custom Bad, Bad Leroy Brown and Green Acres Pearl took See 2015 AMBR Award, Page 53

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www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 51

Forget the Bandwagon, DePetro Drives the Denver Broncos Classic Pickup Truck by Bobby Fernandez, The Greeley Tribune

Hank DePetro stood alongside his 1949 classic Ford pickup Thursday afternoon, Jan. 8 at his home in Greeley. DePetro had an auto body class at Aims Community College paint the classic pickup with a Denver Broncos theme.

Hank DePetro stands alongside his 1949 classic Ford pickup at his home in Greeley. DePetro had an auto body class at Aims Community College paint the classic pickup with a Denver Broncos theme. Photos Credit: Joshua Polson/jpolson@ greeleytribune.com | The Greeley Tribune

When Hank “Doc” DePetro’s Ford pickup truck was originally manufactured, a paint job in Denver Broncos colors wasn’t an option. It’s not that the auto body advancements at the time didn’t allow a simple orange-and-blue color scheme. Rather, the Broncos didn’t exist when DePetro’s truck was manufactured. Yet, 55 years after the 1949 Ford was built, and 35 years after the 72year-old DePetro bought the vehicle, the truck was splashed in Broncos blue—with a little bit of orange sprinkled in—just as the Broncos prepared for the most critical stretch of their season. Although DePetro surely was planted right in front of a television set at 2:40 pm Jan. 11 when the Broncos played host to the Indianapolis Colts in an AFC Divisional Playoff Game, odds werethat no one showed more spirit in the days before and after the game than DePetro, who proudly

Hank DePetro holds up a photo of what the classic Ford pickup looked like originally. The truck will have more work done as students finish the interior

strolled through the streets of Greeley in his unique classic truck. With the aid of Aims Community College auto body classes and the District 6 special education students DePetro has taught throughout the years, DePetro painted and decorated his vehicle with a Broncos theme for the past seven years. DePetro — who spent 30 years as a school psychologist and educator for District 6 and the University of Northern Colorado — said when he hits the streets in his truck, “I get high-fives and (people saying) ‘Go Broncos, go Broncos.’ ” DePetro didn’t hesitate when asked to recall his favorite memory of driving his Broncos-mobile around town. “There was a lady with two grandkids, and she said she was from Seattle,” DePetro said. “She said, ‘my

and just in a two-liner classified, it said ‘ old 1949 Ford truck. $200.’ ” DePetro bought the truck from a farmer who lived near Kersey.

A Broncos helmet sits next to the Ford logo on Hank DePetro’s classic 1949 pickup truck last week at DePetro’s home in Greeley

DePetro said the Ford wasn’t in the greatest shape—to say the least. “It was really pretty bad—rust, holes, dents,” said DePetro, who is originally from Pueblo. “Apparently the guy used it on a farm to pull a plow. The seat was clear down to the springs. Apparently mice and so on got in there. The rims were total rust. The tires that were on it were just rotted out. “And I looked at it and I thought, ‘Do you really want to do this?’ ” Just as John Elway has rebuilt

the Broncos into a legitimate Super Bowl contender, DePetro spent years breathing new life into the old pickup truck. And now, like the Broncos’ grizzled veteran quarterback Peyton Manning, DePetro’s truck may be old, but it’s far from a clunker. DePetro has made a habit of starting his truck every day during this recent cold snap. All he needs to do is pull out the choke valve, ease down on the gas pedal, and the engine starts right up. When he first purchased the truck, DePetro—on the school district’s dime—was attending classes at Aims. One of his classes was an auto body class that gave DePetro the means and materials to fix up the truck. “It started there, and it began to be transformed from this old, rusty truck to what started to look like it was for real,” DePetro said. “And the more we did, the more real it became.” We thank The Greeley Tribune for permission to reprint their article.

www.autobodynews.com CHECK IT OUT!

Hank DePetro stands in front of his classic 1949 Ford pickup last week at his home in Greeley

daughter and all the family are Bronco fans. I’m just wondering if my grandkids could get up in your truck so I can take a picture?’ ” DePetro happily obliged. He drapes his house—built in 1938—in Broncos memorabilia. He also never shies away from decking himself out in orange-and-blue gear. But, it is his blue-coated pickup that really captures peoples’ attention. The vehicle has become a close companion of DePetro since he stumbled upon the truck nearly four decades ago. “I was looking for something to rebuild, because I sold a 1937 Chevy, and I was (wondering) ‘Why did I do that?’ ” DePetro said. “So, I’m looking in the classifieds of The Tribune

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2015 AMBR Award

First in Class, Outstanding Paint, and Outstanding Display accolades. “Winning these awards was awesome,” said Borchering. “This is the Olympics of car shows, and you’re up against top competition. Winning here is extremely gratifying.” Borchering used Deltron DP90LV Epoxy Primer, VIBRANCE COLLECTION® VP2100 Polyester Primer, Deltron Basecoat and GLOBAL REFINISH SYSTEM™ D8152 Clearcoat to reap the honors. Borchering has been using PPG products for 25 years. Painthouse has been building custom cars for almost 10 years and has a reputation for its outstanding paint jobs. Dave Kindig scored with a 1934 Dodge and a 1950 Phantom Fleetside. The Dodge took home First in Class, Outstanding Paint, Outstanding Interior and Outstanding Display awards. The car is painted a custom PPG mix called Dark Desert Sage, which was created using ENVIROBASE® High Performance Basecoat and Global Refinish System D8188 Clearcoat. The Phantom Fleetside won the 2015 Al

Slonaker Award for the most innovative vehicle at the show. It’s finished in a white-over-red paint scheme using Envirobase High Performance Basecoat and Global Refinish System D8188 Clearcoat. Both builds are examples of the high-level work KindigIt Design regularly turns out. “From solvent to water, our customers make our paint shine,” said John Parran, Marketing Director, PPG Automotive Refinish. “We’re proud of our products, but we’re even more impressed by what our customers can do with them. We congratulate these winners on jobs well done and look forward to what they dream up next.” To learn more about PPG Automotive Refinish products, call (800) 647-6050 or visit the PPG Automotive Refinish website at www.ppgrefinish .com.

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3M Awards Tool Grants to Veterans Through CREF and Hire Our Heroes Program

Through the Collision Repair Education Foundation (CREF) and the 3M “Hire Our Heroes” program, four winners have been selected for a tool grant. The recipients, all military veterans, began their collision education at various colleges around the country starting in the summer/fall of 2014. Each winning student had the opportunity to select $2,500 worth of tools to help them during their education and for employment after graduation.

The winners are: ● Jerry Rawson (Bridgerland Applied Technology College, Logan, UT)

● Glenn Valdez (Kennedy King College, Chicago, IL)

● Courtney Washington (Fayetteville Technical Community College, Fayetteville, NC)

● Anthony Wrinkler (UTI, Sacramento, CA)

Clark Plucinski, Executive Director of the Collision Repair Education Foundation said, “The Collision Re-

pair Education Foundation is proud to continue to partner with 3M and the Hire Our Heroes program to offer these grant awards. There are an incredible amount of opportunities in the collision industry and thanks to 3M, these winning students will have the tools that will make them successful in their education and beyond. It is an honor to show our support of military veterans through this program.” “This is our third year of providing this type of support to our military veterans and their family member,” said Dale Ross, 3M U.S. Marketing Operations Manager Automotive Aftermarket Division. “We hope to continue to attract veterans to our industry, and help those that choose this career path get the tools and training they need to be successful.” Additional scholarship opportunities are currently available for students studying at collision repair schools, including veterans, at the website, www.CollisionEducation Foundation.org under “Students.” For more information, please email Scholarships@ed-foundation.org or call 888.722.3787, Ext. 283.

Diamond Standard Parts’ New Web-Based Program “UNSUB”

Diamond Standard Parts announced its new “UNSUB” web-based program: www.unsubparts.com. The program gives access to all Diamond Standard Part’s offerings including both photo and descriptive information using either the OEM reference number, the Partslink + DS, DSN, or DSC number, or by selecting the vehicle, Make/Model/Year. The Make/Model/Year function shows all parts and part photos for the model made by the company. Michael O’Neal, President of Diamond Standard Parts, said “Taking delivery of what you order, specify and pay for in structural parts solutions is critical and should be a basic obligation of the supplier.” The parts are available through their distributor programs in the USA and Canada including the AQRP program at Keystone, an LKQ Company. “Substitution of structural safety parts goes against everything the quality driven aftermarket manufacturers and their supporters have continued to strive for in choosing safe and tested certified parts,” said O’Neal. “The low end supply chain continues to choke the system with misinformation, serious product quality downgrades, and lack of attention to detail.” O’Neal said after taking a survey with members of the largest body shop associations, comments included

cycle time issues, interruption of work flow processes, extended rental car days, repair backlogs, dead space in paint bays, thicker repair files and dissatisfied customers for shops and insurers. “Diamond Standard’s unique, trademarked part number system using the Partslink number + DS, DSN (NSF), or DSC (CAPA) ex: FO1006251DSN listed in the databases is easy to find, easier to identify, and eliminates substitution,” said O’Neal. “Diamond Standard is the only One quality manufacturer of structural safety parts in the aftermarket.” One Quality Manufacturing means Diamond Standard only makes one quality of structural parts for the North American market. Unlike other manufacturers, O’Neal said the Bartlett, TN-based company does not sell in other countries in the world that are low price/low quality driven. He said the DS parts numbering system is important because some suppliers using their unique part number use the same number for all levels from every manufacturer, certified, non-certified, or junk. He said this can cause confusion for the buyer and eliminate lost sales. Visit diamondstandardparts.com, unsubparts.com or email mike@diamond standardparts.com

www.autobodynews.com | MARCH 2015 AUTOBODY NEWS 53

Continued from Page 40

Make More Money

Drum, Buffer, Rope Another one of the elements of TOC involves Drum, Buffer, Rope. (DBR) You can learn a lot about this by reading Goldratt’s “The Goal.” There is

also a lot of information about it on the internet. Essentially, DBR suggests that your company has a drum beat that everyone follows. The beat follows the speed of your constraint resource. An example of this is that all body shop departments work to keep in pace with the constraint resource. The buffer (a small buildup of work) ensures that the constraint never runs out of work. The rope is tied to your scheduling of work coming in. In other words, you schedule your repair jobs in as your constraint can begin working on it. As with lean thinking, scheduling too many repair jobs in

leads to excess inventory (waste).

Summary During my training at the AGI Goldratt Institute, I was told by a very wise TOC Instructor that the smart practitioners eventually decide where they want the constraint to be and then they build their business around it. This keeps you from spending all your time chasing bottlenecks around your shop. I want to drive home a most important point. Whether you subscribe to Theory of Constraints or not, it is a universal law that your business throughput ability will always be dictated by your system’s constraint. On occasion, this constraint can be the

market you serve. If you don’t have enough work to feed your shop you can still use TOC thinking to help solve your problem using the 5 steps. You may have to Identify, Exploit, Subordinate, and Elevate your company’s attention to marketing or other forms of attracting additional work. I am going to leave you with an eye-opening figure. Every dollar lost in a constraint resource due to mechanical breakdown, quality defect, or any other reason is a dollar lost forever! If you run a shop producing $100,000 a month and your constraint shuts down, it costs you roughly $600 an hour! You may want to protect your constraint!

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