Autobody News April 2014 Southeastern Edition by Autobody News

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GCIA Provides Preparation Tips for OSHA Isocyanates Inspections in Georgia Body Shops Georgia collision repair facilities can expect increased levels of inspections by the Occupational Safety and Health Administration (OSHA) to continue in 2014. OSHA issued its annual inspection plan under the Site-Specific Targeting 2014 program as well as its current list of National Emphasis Programs to direct enforcement resources to workplaces where the highest rates of injuries and illnesses occur. The Georgia Collision Industry Association (GCIA) has provided the following OSHA inspection preparation recommendations: • Have painters use supplied or

fresh/purifying air systems while in the booth to reduce isocyanate exposure and avoid the dual-cartridge and halfmask respirators, which are the least effective means of protection against isocyanates. If these are the respirators in use, the documentation should reflect accurate change-out schedules. • Keep all Respiratory Protection Program documentation, such as fit tests and medical evaluations, in order. • Clean the shop regularly as the inspector could swipe test shop areas. • Improve ventilation in the mixing rooms by keeping the pickup vents as See GCIA Recommends, Page 4

Property and Casualty Insurers Hit With Antitrust Suit by Florida Auto Body Shops representative of the true market for such services. The plaintiffs also allege that the remaining insurer defendants in the state have advised plaintiffs that they will pay no more than State Farm pays for labor at their shops, thus resulting in a stabilizing of rates at these allegedly low levels. In addition to a number of common law counts, plaintiffs assert that defendants’ conduct constitutes price fixing under Section 1 of the Sherman Act. In search of evidence of agreement amongst the defendants (a necessary element of a Section 1 claim), See FL Antitrust Suit, Page 28

Change Service Requested

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On February 24, 2014, a group of Florida auto body shops filed an antitrust action against over forty property and casualty insurers in the U.S. District Court for the Middle District of Florida. In the case, A&E Auto Body versus 21st Century Centennial Insurance Co., d/b/a Farmers Insurance Group et al., the plaintiffs allege that the State Farm vendor agreement requires shops desiring to participate in this preferred provider program to accept the market rate for such services, and that State Farm calculates those rates in an improper manner that keeps them artificially low and not

VOL. 5 ISSUE 2 APRIL 2014

Southern Automotive Repair Conference Will Be in Biloxi, MS, April 11–12, 2014 The second annual Southern Automotive Repair Conference will host a variety of nationally-recognized industry speakers, breakout training sessions, industry reception, and industry product and vendor exhibition tailored to collision repairers April 11–12, 2014, at the Beau Rivage Resort and Casino in Biloxi, MS. Radio personality Patrick Porter from Porter’s Body Shop in Brookhaven, MS, will be the master of ceremonies. Some of the guest speakers and topics include: • Aaron Schulenburg, Society of Collision Repair Specialists (SCRS) executive director, will provide a national industry update. • Mike Thornton, Congressional Medal of Honor recipient, will be a motivational speaker.

• Aaron Clark from Assured Performance will discuss OEM certifications. • Dave Posten, collision marketing manager for American Honda, will discuss Honda repair technologies. • Richard Perry, Chief’s Ford F150 project manager, will discuss the new repair requirements for aluminum F-150 vehicles. • Richard Valenzuela with National Auto Body Research will discuss the variable rate system, a system that promises to make a difference in establishing equitable labor rates through a body shop survey system. • Body shop owners John Mosely and Ray Gunder, along with attorney John Eaves, Jr. will discuss the details and status of lawsuits filed against in-

See Southern Repair Conference, Page 34

Maryland Parts Bill Gets Unfavorable Vote in Cmte

In a vote in the MD House Economic Matters committee on March 14, Maryland House Bill 574 (HB574), sponsored by Delegate John A. Olszewski, Jr., received an unfavorable report out of the committee. Introduced in January, HB574 and its companion, Senate Bill 487, sponsored by Senator John C. Astle, sought to prohibit insurance company personnel from specifying a specific vendor for parts or materials or part procurement process, and would have required OEM crash parts for a period of three years after the date of manufacture of a vehicle. In a 16 to 7 vote on March 14, the MD House Economic Matters committee voted for an unfavorable report on HB574. In Maryland, committees report to the legislature on the bills that are assigned to them as favorable, with or without amendment, unfavorable, or without recommendation. Having been voted out of committee, the bill now returns to the floor of its

chamber of origin accompanied by a report of committee action for consideration. No action has yet been taken on SB487. The bills provided common ground for insurers and non-OEM parts suppliers in opposition. Several insurance and aftermarket parts groups testified in opposition to the bill. Repair facility operators that support the legislation believe it protects consumers and preserves a repair facilities ability to manage its operations. The Washington Metropolitan Auto Body Association, WMABA, supports the proposed legislation believing it necessary to protect the rights of repair facilities to operate their business independently and protect consumers. The Automotive Body Parts Association (ABPA) publicly denounced the legislation prohibiting insurers from requiring the use of alternative collision parts on vehicles less than See Maryland Parts Bill, Page 20

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

2 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Franklin - A Missing Hat In Most Shops . . 38 Sisk - ASA-AZ Meets to Discuss Survival Skills for Service Advisors . . . . . . . . . . 32 Sisk - LaCIA Meets to Talk Progress and Future Plans . . . . . . . . . . . . . . . . . 24 Yoswick - 20 Years Ago In The Collision Repair Industry (April 1994). . . . . . . . . 34 Yoswick - Helpful Documents, Tools, Information Only a Click Away For Shops . 30 NATIONAL ‘Kiss Bandits’ Vandalize Cars at Body Shop in Saddle Brook, NJ, Doing $40K in Damage. . . . . . . . . . . . . . . . . . . . . . . . 45 3D-Printed Concept Car at Geneva Auto Show. . . . . . . . . . . . . . . . . . . . . . 41 AAAS Busy Strengthening Industry in 2014 . 29 ASA Announces Incentives for Select I-CAR Qualified Shops to Attend NACE/CARS . . . . . . . . . . . . . . . . . . . . 21

Attanasio - Louisiana Shop Owner Uses Twitter to Survey Other Shops in Real Time, Insurers Not Happy. . . . . . . 22 Auto Industry Champion, John Dingell (D), to Retire. . . . . . . . . . . . . . . . . . . . . . . . 42 Car-O-Liner Offers New Ford 2015 F-150 Equipment . . . . . . . . . . . . . . . . . 33 CARSTAR Extends Partnership to Offer AutoWatch . . . . . . . . . . . . . . . . . 41 CARSTAR to Address Industry Trends at Colorado Events. . . . . . . . . . . . . . . . 40 CIF is Now the Charitable Conscience of the Industry . . . . . . . . . . . . . . . . . . . 42 Collision Repair Education Foundation Golf Fundraiser . . . . . . . . . . . . . . . . . . 36 Education Foundation Doubled Down on Its Future in 2013 . . . . . . . . . . . . . . 44 Ford Sued Over Patented Turn Signal Technology . . . . . . . . . . . . . . . . . . . . . 41 Get Ready for Earth Day with LKQ Get Green Promotion . . . . . . . . . . . . . . 36 I-CAR Has Implemented a New Initiative to Close OEM Informational Gaps. . . . . 39 I-CAR Introduces Training Solution for Full-frame Partial Replacement Repairs, Replaces Two Other Courses . . . . . . . . 37 Is My Gas Can Safe? . . . . . . . . . . . . . . . . 40 Latest Edition of CIECA-TV: E-Commerce Done Right . . . . . . . . . . . . . . . . . . . . . 36 Maryland Parts Bill Gets Unfavorable Vote in Cmte . . . . . . . . . . . . . . . . . . . . . 1 Michigan’s HB 5339 Seeks to Address Steering, Non-OEM Parts, and Parts Procurement . . . . . . . . . . . . . . . . . . . . 46 Mitchell Acquiring FAIRPAY . . . . . . . . . . . 36 Mitchell Announces Liability Adjusters’ Software Release. . . . . . . . . . . . . . . . . 36 NABC Accepting Nominations for Industry Awards . . . . . . . . . . . . . . . . . 37 NACE/CARS and Industry Week 2014 Update: Show Expected to Double in Size . 41 North Texas Student Says Two Mobile Dent Repair Businesses Took Him for a Ride . 28 NY-based MSO Collision Experts Drops State Farm’s Select Service Due to Parts Procurement Requirement. . . . . . 16 Power Up at the 2014 WIN Educational Conference in San Diego, CA, May 5–7, 2014 . . . . . . . . . . . . . . . . . . 36 PPG Announces Distributor Training Schedule . . . . . . . . . . . . . . . . . . . . . . . 33 SCRS and CIC are April 8–9, 2014, in Portland, OR . . . . . . . . . . . . . . . . . . 32 SEMA Data Co-op Grows 300% . . . . . . . . 36 SEMA Seeks Nominations for Hall of Fame by March 21, 2014. . . . . . . . . . . 36 Sustainability Challenge Grant Winners Announced . . . . . . . . . . . . . . . . . . . . . 33 Testimony on Maryland Parts Bill Involved Representatives from WMABA, PCI, LKQ, CAPA and Shops, Some Repairers ‘Cannot Afford to Refuse’ PartsTrader . . 43 Transtar Acquires ETX . . . . . . . . . . . . . . . 36 Utah Offers Grants to Body Shops to Convert to Waterborne, Not Many Applicants So Far. . . . . . . . . . . . . . . . . 14 Zurich Insurance Cuts Jobs to Boost Profitabiltiy . . . . . . . . . . . . . . . . . . . . . 38

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

Indexof Advertisers

REGIONAL ABRA Acquires 13 Repair Centers in Charlotte, NC . . . . . . . . . . . . . . . . . . . 6 AutoFair at Charlotte Motor Speedway will Feature More than 50 Car Clubs and 10,000 Vendor Spaces . . . . . . . . . 10 Birmingham Shop Fire Damages 16 Vehicles Feb. 18 . . . . . . . . . . . . . . . 17 Body Shops in VA Extra Busy After Weather-Related Crashes . . . . . . . . . . . 11 Check Fraud Victimizes FL and GA Body Shops . . . . . . . . . . . . . . . . . 11 FL Man Charged in Felony Counterfeit Goods Trafficking. . . . . . . . . . . . . . . . . . 6 Freak Tire Accident Kills Gainesville Body Shop Employee, Injures Shop Owner, Driver Also Shop Worker . . . . . . . . . . . . 6 GCIA Holds March 20th Member Meeting . 17 GCIA Provides Preparation Tips for OSHA Isocyanates Inspections in Georgia Body Shops. . . . . . . . . . . . . . . . . . . . . . 1 Industry Veteran Opens His Own GA Shop After 20 Years in Covington, GA, Brings Painting Expertise . . . . . . . . . . . . . . . . 10 NAPA Collision Conference in Orlando, FL, April 15–17 . . . . . . . . . . . . . . . . . . . . . 32 NC Shop Wins Nationwide Short-Pay Arbitration Case . . . . . . . . . . . . . . . . . . 17 Property and Casualty Insurers Hit With Antitrust Suit by Florida Auto Body Shops . 1 Russom’s CARSTAR Opens 2nd Tennessee Location . . . . . . . . . . . . . . . 11 Sebring, FL, Boys and Girls Club Gets Box Truck Painted For Free by Duck’s Body Shop . . . . . . . . . . . . . . . . . 4 Independent Auto Body Association Restructures in NC. . . . . . . . . . . . . . . . . 8 MSCRA Conducts Outreach to Industry . . 12 Six SE Associations Prepare for Southern Automotive Repair Conf. . . . . . . . . . . . 18 Southern Automotive Repair Conference Will Be in Biloxi, MS, April 11–12, 2014 . 1 St. Augustine Family Struggles to Recover From Complete Loss of Shop in Fire. . . . . . 4 TN Bill Will Exempt Antique Vehicles from Privelege Tax . . . . . . . . . . . . . . . . . . . . 11

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Contents

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

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

BMW Wholesale Parts Dealers . . . . 37 Cavalier Ford-Lincoln Greenbrier . . 17 CCC Information Services . . . . . . . . 7 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 15 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Coggin Deland Honda . . . . . . . . . . 20 Creative Metal Manufacturing. . . . . . 4 Crown Automotive Group . . . . . . . . 23 DJS Fabrications, Inc . . . . . . . . . . . 48 Don Reid Ford. . . . . . . . . . . . . . . . . 28 Equalizer Industries, Inc . . . . . . . . . 14 Ford Wholesale Parts Dealers FL, GA, AL, MS . . . . . . . . . . . . . . 33 Franklin Chrysler-Jeep-Dodge-Ram . 21 GM Wholesale Parts Dealers . . . . . 41 Gray-Daniels Auto Family . . . . . . . . . 5 Gus Machado Ford . . . . . . . . . . . . . 36 Hendrick BMW/MINI . . . . . . . . . . . . 10 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 25, 26-27 Hyundai Wholesale Parts Dealers . 38 Jon Hall Chevrolet . . . . . . . . . . . . . 32

Kernersville Chrysler-DodgeJeep-Ram . . . . . . . . . . . . . . . . . . 47 Kia Motors Wholesale Parts Dealers . 35 Landers Chrysler-Jeep-Dodge . . . . 16 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 39 MINI Wholesale Parts Dealers . . . . 37 Mitsubishi Wholesale Parts Dealers . 40 MOPAR Wholesale Parts Dealers . . 31 Nalley BMW. . . . . . . . . . . . . . . . . . . 16 Performance Automall . . . . . . . . . . 13 Porsche Wholesale Parts Dealers . 45 Priority Honda . . . . . . . . . . . . . . . . . 12 Reliable Automotive Equipment, Inc . 6 Stateline Chrysler-Jeep-Dodge-FIAT. 11 Subaru of Gwinnett . . . . . . . . . . . . . 21 Subaru Wholesale Parts Dealers . . 29 Tameron Hyundai . . . . . . . . . . . . . . 24 Toyota of Easley . . . . . . . . . . . . . . . . 8 Toyota Wholesale Parts Dealers . . . 43 UniCure Spraybooths . . . . . . . . . . . 19 Valspar Automotive . . . . . . . . . . . . . . 2

www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 3

St. Augustine Family Struggles to Recover From Complete Loss of Shop in Fire, Cause Officially Undetermined But Source of Fire Was Not Near Flammable Materials

Abe Chatila has opened a new tire and automotive repair business, Complete Automotive and Tire, on U.S. 1, north of St. Augustine after his auto body repair business, Complete Collision, was destroyed in a fire in January. The Chatila family is used to making adjustments in the business world, and they might be dealing with their biggest one yet right now, according to Peter Willott, writing at StAustine.com. Fixtures of the automotive business in St. Augustine, the Chatilas are trying hard to recover from the loss of their collision repair center off State Road 207. The body shop was completely destroyed by a fire that started just before midnight on Jan. 20. “Everything that was there is gone,” said Abe Chatila, one of three brothers who work at the family-owned businesses Complete Collision and Complete Automotive and Tire. “It was a super old building. It wasn’t so much the building (that was lost) but what was inside.” The building contained all the tools of the trade as well as several cars that had been purchased in order to be fixed up and resold. Many of items lost from inside the building were either not covered by the insurance policy or undercovered so that they cannot all be replaced.

Chatila said he got a text in the middle of the night from his brother that there was a fire at the body shop. He lives on Anastasia Island and rushed to the site. Driving over the State Road 312 bridge, Chatila could already grasp the seriousness of the damage by looking in the direction of the shop. “It was just a glow and smoke everywhere,” Chatila said. “There was nothing that was salvageable.” After investigations by the fire marshal and insurance adjuster, Chatila said the cause of the fire was declared officially as undetermined. But because it started in an area where there were no flammable materials, there is suspicion that it was arson—whether accidental or intentional. In the end, it doesn’t really matter. There were no injuries, which was the good part. But the losses were above the level that insurance will cover, Chatila said, which is the bad part. Chatila said he isn’t sure if the family will ever reopen the collision repair side of the business, but the site of the fire is also the location of the towing business, which operated as part of Complete Collision. The towing service, which was purchased from Fulkerson Towing, remains a viable business. Neither of the two trucks were damaged by the fire.

Sebring, FL, Boys and Girls Club Gets Box Truck Painted For Free by Duck’s Body Shop

The Boys & Girls Club of Highlands County, FL, has acquired a box truck for use in picking up and delivering large donations for its downtown Sebring thrift store, The Emporium. Board member Paul DuBrule, Elli-B Honey Company owner Robert Elliott and volunteer Patty Bird of Avon Park were instrumental in obtaining the truck. The Boys & Girls Club is an organization that provides daily afterschool programs for 300 local children, ages 6-18, who are either from single parent homes or homes where parents both work multiple, low-paying jobs and are not at home when the children arrive after school. The Boys & Girls Club is a safe place for children to go, where they receive a snack, help with their school work, recreation activities, and guidance with socialization. The “Five Core” program of the club consists of guidance in character and leadership development, education and career development, health and life skills, the arts, and sports and fitness. The donated truck is not new, but it is very serviceable and much appreciated by club staff members. The

Emporium manager Levon Stukes is thrilled to have the truck. “Man, what a help ... couches, easy chairs and large appliances are tough to load in a van or a small pickup. We can put a lot of items at once in the box truck and we won’t have to keep running back and forth to the store after every delivery or pick up like we had to before,” he said. Stukes and Boys & Girls Club director Woodraun Wright plan to make the truck a “rolling billboard” that will generate much-needed income for the club by advertising local businesses. The truck needs to be stripped of its current graphics and painted, which will involve a lot of hard work. Wright and DuBrule contacted Beverly Ragland, owner of Duck’s Body Shop at 1153 Hawthorne Dr, Sebring, FL, who will paint the truck at no charge. It should be ready by mid-April, DuBrule said. The plan is to offer local businesses the opportunity to purchase advertising space on the truck. A local sign company will produce the vinyl signage for each business and it will be applied to the truck, which will also display the Boys & Girls Club logo.

4 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

Working with brothers Mohammad and Abdul and father Riad, Chatila helps run Complete Automotive and Tire on U.S. 1 North. That property was leased shortly before the fire destroyed the body shop. In fact, it hadn’t even opened its doors when the fire occurred. “The idea was to have both businesses running (together),” Chatila said. “The body shop is totally gone for now.” What hasn’t ended is the ambition of the family. While working to establish a customer base at the tire/repair shop, Chatila and his family are ready to start a new venture. The family was granted approval for used car sales by the city Planning and Zoning Board at the northern section of the property where the repair shop sits. Moving from one aspect of the automotive industry to the next is what they’ve always done. Chatila said he remembers working with his dad as a child when Riad owned Anastasia Mobile and Anastasia Towing. “We’ve always been in the automotive business one way or another,” he said. Despite the financial and emotional losses from the fire, the Chatilas are committed to remaining part of the local business scene. “It hasn’t discouraged us,” Chatila said. “We’re moving forward.”

Continued from Cover

GCIA Recommends

clear as possible. If ventilation is questionable, have the painters wear respirators while mixing. • Have employees use personal protective equipment (PPE) for eyes and skin as well as respiratory. Painters should be fully covered and some prep area employees should be wearing gloves and eye protection as well. • Change paint suits once a breech (tear or paint in the suit) has occurred. • Do not wear paint suits, etc. in the break area and keep food and drinks out of the prep and paint areas—you should keep food and drink out of the entire body shop and only in break rooms. Only those employees who need to be in prep and paint areas should be in those areas. • Make documentation available for all booths (closed systems), including maintenance records, filter change outs, etc. • Keep paint and other chemicals that may contain isocyanates closed at all times when not in use. Contact Howard Batchelor at howard@gcia.org if your shop is inspected.

Your shop will breathe easy with a Flowmaster portable clean-air, re-circulating unit. Ideal for sanding, priming, spot painting or overall whole shop ventilation. • No assembly required • Most powerful unit CLEAN AIR RECIRCULATOR on the market • Easy mobility with th pneumatic locking ng No permits, wheels fire suppression, • 50’ cord, folding plumbing or roof hook and filter penetration needed! change indicator • 110V or 220V • Custom Sizes Available ilable Flowmaster is priced right and Made in the USA A

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Gray-Daniels Gray-Daniels Nissan Nissan of of Jackson Jackson

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www.graydanielsnissannorthparts.com Participating in Collision Link Parts Manager: Steven Hill 800-530-7522 601-899-7462 fax shill@graydaniels.com Hours: Monday - Friday 7 am - 5:30 pm 6080 I-55 North Frontage Rd., Saturday 8 am - 4 pm Jackson, MS 39211

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

Parts Manager: Eddie Williamson 800-729-6160 601-206-5894 local 601-206-5899 fax ewilliamson@graydaniels.com 6060 I-55 North, Jackson, MS 39211

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

Parts Manager: Bill Styrone 800-898-1944 601-591-2648 fax bstyrone@graydaniels.com 201 Octavia Drive, Brandon, MS 3904

Gray-Daniels Gray-Daniels Nissan Nissan of of Brandon Brandon

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• Collision Parts Price Matching • Dedicated Wholesale Staff • Large Inventory Hours: Monday - Friday 7 am - 6 pm Saturday 8 am - 4 pm

Participating in Collision Link Parts Manager: Jack Willoughby

800-530-7989 601-985-3753 fax jwilloughby@graydaniels.com 108 Gray-Daniels Blvd., Brandon, MS 39042

Gray-Daniels Gray-Daniels Ford Ford • No Order Too Big or Too Small • Highly Experienced Parts Personnel • Great Discounts Hours: Monday - Friday 7 am - 6 pm Saturday 8 am - 12 pm

Parts Manager: Bill Styrone 800-898-1944 601-591-2648 fax bstyrone@graydaniels.com 201 Octavia Drive, Brandon, MS 39042

Gray-Daniels Toyota • Prompt, Accurate and Free Delivery • Dedicated Wholesale Staff • Large Inventory Hours: Mon. - Fri. 7am - 6 pm Saturday 8 am - 4 pm

Participating in Collision Link Parts Manager: Steve Calhoun 800-530-7955 601-948-0576 601-965-8458 fax scalhoun@graydaniels.com 104 Gray-Daniels Blvd., Brandon, MS 39042

Gray-Daniels Gray-Daniels Scion Scion • No Order Too Big or Too Small • Highly Experienced Parts Personnel • Great Discounts Hours: Mon. - Fri. 7:30 am - 6 pm Saturday 8 am - 4 pm

Participating in Collision Link Parts Manager: Steve Calhoun 800-530-7955 601-948-0576 601-965-8458 fax scalhoun@graydaniels.com 104 Gray-Daniels Blvd., Brandon, MS 39042

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

Freak Tire Accident Kills Gainesville Body Shop Employee, Injures Shop Owner, Driver Also Shop Worker

Ivan James Sandquist, age 33, was killed in a freak accident on the morning of March 3. The Williston Police Department (WPD) reported that they received a report of two men being injured while working at Absolute Auto body, located at 104 NW 10th Ave. Upon investigation, it was discovered that Patrick Woodard of Gainesville, who repairs cars at an auto shop in the Raleigh area of Levy County, was driving a 1999 Toyota northbound on US-41. As the vehicle approached Absolute Auto Body, the left front tire broke free from the vehicle and traveled north on the west shoulder of the highway. The tire struck a driveway apron, sending it airborne. The tire jumped over a six-foot chain link fence, where it then struck Sandquist, killing him instantly. After striking Sandquist, the tire struck the friend he was standing and talking to, James E. Fender, 45, the owner of the Absolute Auto Body Shop. Fender sustained serious injuries and was airlifted to Shands Hospital in Gainesville. Williston Police Chief Dennis Strow said the incident was being in-

vestigated, and that he asked for help from the Florida Highway Patrol (FHP). An FHP homicide investigator will be assisting in trying to figure out what happened. “We asked for help from FHP because they have so much experience in these kinds of things.” They hope to determine if the cause of the accident was a speed factor or a mechanical problem. Chief Strow added that the vehicle, which Woodard had been driving at the time of the incident, had been taken to Woodard (since he works at an auto body shop) to be checked out. He said that Woodard had not done anything to the car, including the wheel, which came off of the vehicle, prior to taking it for a test drive. Strow said the tire did not explode and was intact on the wheel. A memorial was held for James Sandquist at Knoff Funeral Home in Williston at 4 p.m., Thursday, March 6. His mother requested that in lieu of flowers, donations be made to the American Diabetes or the American Heart Association.

ABRA Acquires 13 Repair Centers in Charlotte, NC

FL Man Charged in Felony Counterfeit Goods Trafficking

A Florida man has been charged with one count of trafficking in counterfeit goods—an offence that carries a maximum penalty of 10 years in federal prison. The goods at issue are counterfeit electronic engine control devices produced and marketed by Hondata for use in modified Honda and Acura vehicles. In a plea agreement filed with a U.S. District Court, the defendant admitted that, beginning in 2009, he arranged for Hondata’s K-Pro and S300 devices to be reverse-engineered. The counterfeit devices bore Hondata’s trademarked name, as well as counterfeit serial numbers. The defendant also admitted creating counterfeit packaging, labels, instructions and compact discs for the devices. Hondata has said “Counterfeit K-Pros and K100s have been sold as new and used in the US, Canada, Europe and Australia and Asia This counterfeit circuit board is a poor quality copy of the version 2 K-Pro with on-board datalogging. There are no known counterfeits of the red circuit board KPro V3.” The investigation in this matter was conducted by the FBI. For more see www.sema.org/ipr.

On March 7, 2014, ABRA Auto Body & Glass announced the purchase of all 13 Wilburn Auto Body repair centers in the Charlotte, NC, metro area. ABRA now has 145 company-owned locations and 48 independently-owned franchises for a total of 193 collision repair centers in 17 states. Don Wilburn, founder and CEO of Wilburn Auto Body, embraces the acquisition. “This is a significant milestone for me. Wilburn Auto Body has served Charlotte since 1975. I have complete confidence ABRA will continue the legacy of delivering top-notch customer service and repair solutions to our customers and the community.” Building on its increasing success, ABRA plans to continue expanding in the months and years ahead as part of its aggressive national growth strategy. It is actively seeking new opportunities to acquire repair centers and integrate them into its industry-leading operating system.

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Southeast Associations

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.

Independent Auto Body Association Restructures in NC with Chasidy Rae Sisk

The Independent Auto Body Associa- House Bill 13 – the Consumer Motor tion (IABA, not to be confused with Vehicle Repair Act – was signed into with with Chasidy Rae law Sisk the Indiana association the same by the state’s governor; this sucacronym) is currently inactive as they cess launched Causey’s part-time carestructure their leadership, but they reer as a writer for various collision have big plans for the future for when repair publications, including Autothey’ve regrouped. Mike Causey, body News. Since the association’s inPresident of IABA, is excited about ception in NC, they have expanded these upcoming with changes and shares Chasidy Rae their Siskservice area to include VA and some information about the associa- SC as well. tion. When invited to contribute The association was founded feedback on IABA’s beginnings, around the turn of the century, 1999- Tom Green stated, “the only guy I 2000 that is, because a group of small ever met that was equally as perbody shop owners in Western NC sistent as myself had to be Mike with Chasidy Rae Sisk “were fed up with insurance compa- Causey. Looking back 14 years ago, nies steering customers away from I believe that we both had a good their shops in favor of large body understanding of what we were up shops willing and able to sign on their against at the time. House Bill 13 insurer’s Direct Repair Programs,” was originally written by Wilma Causey recounts. Sherrill, State Representative for Taking the lead on resolving this Buncombe County 116 District, and dilemma, Tommy Green, one of the she also deserves a tremendous owners of a collision repair facility, amount of credit for passage of the circulated a petition which was en- Bill through the State House of dorsed by 60 shop owners before Representatives. She is, without being forwarded to elected officials in doubt, one of the best RepresentaWashington (DC) and Raleigh. with Ed Attanasiotives to ever serve in North CarAt the time, Causey was running olina’s House of Representatives. I for a statewide office, to be NC’s in- still to this day often wonder what surance commissioner, but when we might have accomplished had Green contacted him to ask about more people got involved. Like I starting a collision repair associa- used to tell those guys back in the tion, Causey aided the involved day, ‘I’ve never seen a war won on shops by drafting a Constitution and your knees or sitting on your ass.’” with Ed Attanasio By-laws for the new statewide assoThough the IABA is currently ciation which was to be called the In- inactive as they work on reorganizdependent Auto Body Association. ing the association with new offiCausey notes, “the ironic part is only cers, they still anticipate the need to a small handful of those petition overcome a multitude of challenges signers had the will to join the asso- once this regrouping is completed. Attanasio ciation. So the with IABA Ed started with Causey notes that the biggest chalonly five western NC body shop lenges that the IABA faces in mainowners. The initial goal was to pass taining operations is “apathy from legislation in NC to stop steering, or body shop owners, opposition from at least slow it down.” insurance companies and financial After losing the election for in- challenges.” surance commissioner in November with Thomas FranklinThe general disinterest and un2000, Causey agreed to represent the willingness to get involved that is perIABA as a legislative lobbyist at the vading the collision repair industry NC General Assembly. Causey and lends itself to the IABA’s goals which, Green immediately engaged in dis- according to Causey, are “to survive cussions with key representatives as an association in the fact of such about drafting proposed legislation to apathy by shop owners and to get help consumerswith by enforcing their more members by getting body shops Ed Attanasio Right to Choose the body shop where involved. Most shops show little intheir vehicle would be repaired. In Oc- terest in participating in associations tober 2001, the IABA’s proposed or meetings. Most are afraid of the in-

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surance companies, it seems, and don’t want to ‘rock the boat’ or make waves.” Although the IABA is not currently working on any legislation, their mission as an association includes getting legislation passed to help consumers and small business owners, as well as “to educate the public (and elected officials) on their rights, help consumers and help ‘level the playing field’ for shop owners,” Causey explains. Of course, Causey recognizes the challenges of these aspirations, especially in regards to legislation – “the main challenge is getting enough shop owners and managers behind the proposed legislation. Then, [we have to rally] consumer groups and individuals interested in consumer protection. The next challenge is funding to hire a professional lobbyist to guide the legislation through the legislative process, which sometimes can

take many months or years. Insurance companies always oppose consumeroriented legislation that takes any control away from insurers in the repair process.” Discussing current legislative initiatives related to the collision repair industry, Causey notes, in regards to the PARTS Act, that “IABA favors full disclosure legislation. Give consumers a choice, and make it clear that the consumer can choose OE parts or otherwise.” The IABA is also against any mandated parts-procurement systems, such as State Farm’s PartsTrader, because “it is a one-sided agreement in favor of the insurer. Plus, it harms the local economy by cutting local suppliers out of the loop.” This view relates back to what Causey sees as the biggest problem currently facing the industry today: “control of the repair process has been See Independent ABA, Page 10

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AutoFair at Charlotte Motor Speedway will Feature More than 50 Car Clubs and 10,000 Vendor Spaces

Industry Veteran Opens His Own GA Shop After 20 Years in Covington, GA, Brings Painting Expertise Shane Steele, new owner of Elite Auto Collision, has worked in the industry for more than 20 years, and opened his new body shop Feb. 20 on Hazelbrand Road in Covington, GA. Steele spent many years working with DuPont developing expert-

ise in automotive paint technology. Not only does Steele understand the science behind automotive paint and the painting process; he also has taught hundreds of other painters how to perform their jobs. He has worked in shops as an employee, as a trainer, as a adviser and as a business coach helping other shop owners. All the while, he kept as his goal to own a collision shop one day and create a business that would stand apart from all the others. He started with one shop in

Georgia and quickly added new locations throughout northeast Georgia. Steele said he chose Covington because he saw a strong business climate in Newton County that will continue to grow with the arrival of Baxter International and the continued growth of the film and television industries. He also cited the area’s strong technical education resources, as well as “a huge need for our services.’’ Steele said Covington is the type and size of community where a business owner can build lasting relationships with customers while at the same time making a difference in the community. He said Covington has a small-town feel, but its business and government leaders work together to foster positive growth in the community. Elite Auto Collision has a combination of highly-trained technicians and new, state-of-the-art equipment. The company started as a family owned business in Bogart, before opening other locations throughout the area.

Get ready for one of the largest and most prestigious car shows in the country, the April 3-6 AutoFair at Charlotte Motor Speedway. The spring AutoFair features more than 50 car club displays and more than 10,000 vendor spaces that offer an array of automotive parts and memorabilia. More than 1,500 collectible vehicles of all makes and models make up the car corral that rings the 1.5-mile superspeedway. In addition, hundreds of unique automobiles will be auctioned by Dealer Auctions Inc. There’s something for the whole family as kids can enjoy face-painting, bounce houses and other games and entertainContinued from Page 8

Independent ABA

taken over by the insurance companies. Insurers now dictate what shop gets the repair job, where the shop will buy the parts, what price the shop will pay for the parts, how much money the shop gets paid – regardless of whether the shop will take a loss. Insurers have near-total control of the

ment in the gigantic Play Zone. Charlotte Motor Speedway AutoFair hosted by OldRide.com tickets are $10 for adults and free for children 13 and under. A four-day pass is available for $30. The April 3-6 AutoFair will be open from 8 a.m. to 6 p.m. ThursdaySaturday and from 8 a.m. to 4 p.m. Sunday. For tickets and additional information about the AutoFair or other events at Charlotte Motor Speedway, call 1-800-455-FANS (3267) or visit www.charlottemotorspeedway.com. Follow Charlotte Motor Speedway on Facebook at: www.facebook.com/charlottemotorspeedway or on Twitter at www.twitter.com/cltmotorspdwy.

process.” Through their efforts, IABA hopes to restore control of the collision repair industry back to the repair professionals to whom it truly belongs. The first step to change is getting involved! Independent Auto Body Association (IABA) PO Box 12502 Raleigh, NC 27605

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TN Bill Will Exempt Antique Vehicles from Privelege Tax

Legislation to allow counties to exempt owners of antique motor vehicles from the privilege tax was approved by the Tennessee House and Senate. Under the bill, the county may also only require a onetime-only payment of the tax. According to the state, the average amount of the one-time tax imposed would be $43.10. In Tennessee, an “antique motor vehicle” is a motor vehicle more than 25 years old with a nonmodified engine and body that is used for participation in, or transportation to and from, club activities, exhibits, tours, parades and similar uses as a collector's item; on the highways for the purpose of selling, testing the operation of, or obtaining repairs to or maintenance; and for general transportation only on Saturday and Sunday. The bill will now be sent to Governor Bill Haslam for his signature and enactment into law. For more information, visit the SEMA Action Network (SAN) website. For details, contact Steve McDonald at stevem@sema.org.

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Check Fraud Victimizes FL and GA Body Shops

A handful of body shops in Florida and Georgia are falling victim to check fraud. Scammers are stealing thousands of dollars and they are targeting auto body shops across the country. Toni Scroggins, the owner of St. Johns Auto Body Shop in Palatka, says scammers stole $15,000 from the company’s bank account. Scroggins suspects the scammers take the routing and checking account number of the shops’ checks, reprint them on new fake checks with a different name, address and bank name. The scam artists then spend money at Lowe’s, Home Depot and Walmart. Scroggins says she’s not as worried about big shops like hers, but she says mom and pop shops and their customers are the ones who could pay the ultimate price. Scroggins says she got her money back after two months with the help of her bank. “This could destroy them, close their doors, because you do not get that money back the next day,” said Scroggins. “You have to wait for the process of the bank to investigateGive it andus thatyour couldopinion take over on a month. So, if it’s a small business they are out.”

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Recent wintry road conditions have sent cars slipping and sliding, leading to several accidents across Hampton Roads. Now, drivers are taking their cars to local auto body shops to be fixed and local media is there to survey the damage. Karena Gray showed WAVY News 10 the damage to her Suzuki Forenza. She said she was driving on an Interstate ramp in Chesapeake when she came upon traffic stopped for an accident, and had got into one herself. “It was pretty much unavoidable. Like, I didn’t want to press on the brake too hard, so when I just tapped the brake, I was sliding. I didn’t want to slide in the ditch so it just happened. I hit the back of someone else,” said Gray. That crash brought her into Carstruction in Chesapeake for repairs. Owner Vince Dobbs checked out the compact car, and pointed out the damage. “You definitely see the fender, the bumper and the headlights are destroyed… The battery has been impacted, the metal’s been pushed into it. It will need a new battery,” Dobbs exmatters affecting the industry. plained. Dobbs also showed WAVY News’ Ava Hurdle a Toyota Tundra truck

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with weather-related damage. “Basically we’ve got a vehicle spun out on ice up here, which you can see the damage to the bumper cover, but there’s also damage back behind it to the reinforcement and the absorber,” he said. The vehicle already has an estimated repair cost of between $3,000 to $4,000. The expected repair time for the damaged vehicles is about a week or more, depending on the availability of replacement parts and insurance adjusters.

Russom’s CARSTAR Opens 2nd Tennessee Location

Russom’s CARSTAR Collision recently celebrated the grand opening of its second shop location in Dyersburg, TN, during a local chamber of commerce event, CARSTAR Auto Body Repair Experts announced. The shop is independently owned by Brad Russom, who joined the CARSTAR network in 2010 with his first shop location in Rutherford, TN. “We congratulate Brad Russom on his expansion to a second store and Want to Contribute their continued commitment to excellence,” said David Byers, CEO of CARSTAR.

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MSCRA Conducts Outreach to Industry with Chasidy Rae Sisk

The Mississippi Collision Repair As- the Insurance Committee, Mosley and sociation (MSCRA) has a busy sched- Doug White, a fellow shop owner, met ule of meetings and Chasidy conferences the Capitol, prepared to answer any with Rae atSisk planned for the beginning of 2014. questions the committee members Currently, the association’s president, might ask about the bill; however, John Mosley, is engaged in a whirl- their anticipation quickly turned to wind of traveling from state to state shock and disappointment when Sen“educating and hopefully helping fel- ator White invited them to his private low shop owners find the strength to office where he informed them that he Chasidy Rae would Sisk not introduce the bill because make business with decisions based on sound business principles rather than “we had put him between a rock and a fear.” hard place with his fellow committee Over the last two weeks of Feb- members,” Mosley recalls. “He said ruary, Mosley will be visiting eight there had been so many people calling cities, all the way from Seattle, WA to them, pressing them to support the Rae bill, Siskthat he feared they would be Palm Bay, FL, aswith part ofChasidy his commitment to deliver information and assis- looked down on by the people they tance across the country. Though represented, [but] if the committee MSCRA’s primary service area is the voted for the bill, they could forget state of MS, the association is very any campaign funding by the insursupportive of neighboring states, and ance industry.” they strive to help industry members When Mosley questioned in other states form associations for whether the matter really came down the bettering of the industry as a to an issue of money instead of doing whole. With 59 member shops, what he knew was right for the pubMSCRA routinely has at least 100 lic, he was appalled at Senator White’s people at their association meetings, response: “I will never forget his representing their members’ interests. reply —‘whether you like it or not, the Ed Attanasio MSCRA waswith established in 1999 money the insurance industry puts because a group of MS shop owners into these campaigns is the grease that were concerned that using imitation makes the wheels of this Capitol turn.’ parts did not serve to restore the vehi- You can imagine how betrayed we felt cle to its pre-loss condition. As they as an association. We gradually quit formed a group to educate themselves, meeting regularly. It was back to the consumers and their with Edlegislators, Attanasioevery shop for themselves.” they seemed to be making a lot of Thus matters with MSCRA stood progress. for a decade until May 2012 when State Senator Richard White, a Mosley and his comrades learned member of the Insurance Committee, about State Farm’s introduction of agreed to meet with the group, claim- PartsTrader. Many shops in MS began ing to be 100% on-board with their calling one another as it quickly beEd Attanasio mission to protectwith consumers. At Sen- came obvious that they needed to reator White’s suggestion, the group unite with the objective of preserving hired a lobbyist, attended meetings their businesses. Mosley was “disapand testified before the Senate’s In- pointed in the lack of respect this giant surance Committee. corporation had for the small busiAfter helping the group draft a nesses that make up this industry.” bill to protect consumers, Senator MSCRA is opposed to Partwith Thomas Franklin White instructed them to get the sTrader and any other parts procurephones ringing at the Capitol to garment program forced on the industry ner support for this issue, so the in- instead of being offered as a possible volved shop owners called their solution to be accepted or rejected customers who had voiced concerns based on its performance. “I have over the use of imitation parts, asking been in many states and talked to them to call theirwith legislators express thousands of people, and the overEd toAttanasio support for the proposed bill. whelming response is that PartsTrader On the morning that the bill was is a failure! State Farm recognizes this scheduled to be put to a vote before but pushes forward, destroying rela-

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tionships and businesses with no regard to anything but the premise that it will save them money,” Mosley shares, continuing, “the quality of a repair is directly related to the parts used in the repair, and when the shop loses any part in the decision-making process, quality could be sacrificed. This is not fair to the consumer or the shop who is ultimately responsible for the repairs.” Along with their campaign against PartsTrader, MSCRA has a plethora of short and long-term goals that they strive to achieve. In the present and immediate future, the association’s goals “are to promote growth in the association, educate our members, educate the consumers we serve, and strengthen our ability to work with the insurance company on a united front,” Mosley explains. Looking forward, MSCRA hopes to ensure that every member shop has the necessary information to acquire

training specific to the repair being performed, and they hope to do this by becoming a resource for every member in their attempts to level the playing field. The association plans to supply members with information on equipment and factory resources as well as by securing I-CAR training opportunities in an effort to aid shops in achieving I-CAR’s Gold Class status. MSCRA is also dedicated to building their reputation with MS consumers so customers will feel comfortable putting their trust in any shop that displays a MSCRA plaque. In conjunction with this plan, the association hopes to build a warranty program among all association members to ensure the customer is aware that their repair is covered by any member shop in MS. Mosley explains the benefits of this plan: “This serves to combat the steering efforts of some insurance companies when they tell

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the consumer ‘we don’t guarantee their work.’ We could see the DRP would not be a viable option for shops that were not willing to allow the insurance industry to run their business.” MSCRA also intends to work with state and national officials to protect consumers by exposing bad legislation and promoting safe legislation designed to benefit both the repairers and the consumers. Currently, MSCRA is gathering support for legislation that will protect the consumer when they have their vehicle repaired. In conjunction with federal officials, the association is assessing the 1963 Consent Decree in order to determine the degree to which it can be enforced; many agree that this federal consent is equally enforceable as it was half a century ago. Mosley explains, “the importance of the 1963 Consent Decree is it places the body shop in control of the repair and the insurance company in control of the insurance. What could be more important or fairer for all?” Like with other associations, MSCRA faces challenges when attempting to support legislation to im-

prove the collision repair industry. “The problem with any legislation is the amount of money the insurance industry will pour into campaigns via lobbyists and donations to buy decisions that tend to prioritize their profits over the consumer’s safety,” Mosley laments. Still, Mosley is optimistic about his belief that MSCRA’S actions will positively impact the future of this ever-changing industry. “The pressure created by the ever evolving greed of the DRP relationship and the PartsTrader scheme is having a galvanizing effect on the collision repair industry. The industry is changing with repairers realizing they are needed now more than ever. As repairers, we are also realizing there are fewer and fewer who are trained and equipped to repair the cars we are beginning to see and will continue to see in our shops. The insurance industry is trying to reign in any control they can exert over our industry as it changes. They make deals with MSOs in areas where the repairers are not bowing down and accepting their cost-cutting measures that can lead to poor quality, unsafe repairs. They did not expect the resistance they are experiencing from the

repairers. I ask every shop owner to start making business decisions based on good business principles and stop giving in to fear. I encourage them to market their business and their conviction to serve the consumer over the insurance industry. When the public knows what a shop stands for, they will pick the independent shop out of the maze of consolidators… By educating our shops and consumers and making repairs that don’t sacrifice quality for insurance profit, we will grow strong businesses with loyal customer bases.” MSCRA also faces many challenges similar to those impacting other associations across the country. Mosley acknowledges these difficulties, even as he looks forward to a brighter future: “Probably the biggest challenge is helping a shop owner overcome the fear that he will be ostracized by the insurance industry for coming to the association meetings, much less being a paid member. Beyond that, we are faced with keeping the interest of the shop owners by providing a tangible benefit for the money they spend on their membership. This isn’t going to be a problem in the near future. With all the changes

our industry is facing relating to vehicle construction and repairability, the need for knowledge will generate the interest. We are committed to providing the information to ensure our members can succeed.” At MSCRA’s last meeting, they addressed the need to secure services from a company to inspect member shops and identify any concerns that could result in problems with OSHA. MSCRA stresses the importance of a safe, healthy workplace, and identifying the cause for concern, Mosley explains “OSHA is working to identify isocyanate hazards, and we don’t want any shops’ employees to suffer from isocyanate sickness nor do we want the shop facing fines that could have been avoided with the proper training. The association also recently furnished members with information on new tool and equipment requirements, provided by Ford, pertaining to the introduction of the 2015 F-150 with its aluminum body and high-strength steel frame. MSCRA has already begun setting up I-CAR training for the aluminum F-150 to have available when the vehicle is released late this summer. See MSCRA, Page 16

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Utah Offers Grants to Body Shops to Convert to Waterborne, Not Many Applicants So Far by Ed Attanasio

because all of the shops in Utah are going to have to switch to waterborne anyway,” Gallegos said. “We looked at Superior Paint Supply’s waterbased paint system (De Beer’s Waterbase 90 by Valspar) because we heard very good things about it. So, we applied for the grant and then we were pretty shocked when the state contacted us and told us we were the first shop to apply.

As the collision industry in Utah undergoes the transition to waterborne paint and everything that comes along with it, many are embracing the new products, techniques and equipment while others are not as enthusiastic. The state deadline for waterborne is looming (July 1, 2014) and as was the case in other states with similar mandates, some shops are waiting until the last moment. But some valuable news involving grants might just speed up the conversion process for body shops that were previously lagging. Any body shop that wants the state grant money will have to match the grant dollar for dollar, so it’s more of a hand up than a handout, Waterborne Paint Trainer Jeff Brasier (right) from Supeaccording to the state’s Divi- rior Paint Supply demonstrates waterborne application techniques for Corey Kaggie, a painter at ACS Precision sion of Air Quality and the Finish in Salt Lake City Utah Clean Air Partnership (UCAIR), a statewide alliance that “I read an article about the grants was created to make it easier for indi- in the paper and told my son,” Canviduals, businesses and communities dido Gallegos said. “We figured let’s to add equipment or processes that get some financial help if it’s being ofwill improve the cleanliness and fered. From what we’re hearing, body breathability of Utah’s air. shops aren’t applying for these funds, The Utah’s Department of Workwhich I find surprising. The money is force Services has earmarked $300,000 right there on the table. They want to now to help small businesses to imgive us money! How often does that prove the state’s air quality and an adhappen?” ditional $1 million after June 30, 2014 The local media flocked to ACS through the state Department of WorkPrecision recently to cover the shop’s force Services. The goal of the program conversion to waterborne while letting is to help small businesses reduce small businesses know that the grant emissions through improved equipmoney is available for them, as long ment and the maximum amount is as they’re willing to improve their air $15,000 and must be matched dollar quality. “We were surprised when the for dollar. In addition to auto body local newspapers and news stations shops, dry cleaners, restaurants, print called us and wanted to interview us shops and other small businesses with about the grant money,” Gallegos fewer than 100 employees can apply. said. “It’s a big deal for Utah and a big The first collision repairer to take deal for this industry and an eye advantage of the grant money offered opener for everybody.” According to the Division of Air by the state was ACS Precision Finish in Salt Lake City, a shop owned by Quality, if every paint tech in the state Candido Gallegos and his son An- used waterborne instead of solvent, thony. Both father and son were a lit- daily emissions would drop by 572 tle reluctant to try something new after pounds per year. In fact, the industry having spent so much time mastering will be required to make this change the solvent-based paint techniques, by June 1, 2014 to comply with new but their paint jobber, Superior Paint air quality regulations. The big chalSupply, made the transition easier for lenge for small businesses is, of them, while the grant money also course, the cost to make the upgrades. made the decision a little more palatGwen Springmeyer is the Assisable, Anthony Gallegos said. tant Executive Director for UCAIR “We’re getting $15,000 to change which is administering the state grants. over, and for us it was a no-brainer, She wants body shop owners to know

14 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

that the grant application process is easier than they might imagine and that her organization is willing to help shops with the application process. “The grant application is easy for several reasons,” Springmeyer explained. “There is no competition for the grant, so if you qualify and there is still money in the budget, you’ll get it. Secondly, we don’t ask for your financials. The application is seven pages and we’re more than willing to help you with it. The money is there, so we want to encourage body shops and other small businesses to apply and get these dollar for dollar grants. And maybe most importantly, the deadline is June 30, 2014, but then we’re also going to make another $1 million available as part of the same program. So, essentially, the state is offering $1.3 million in air quality matching grants.” Jeff Brasier is a paint trainer for Superior Paint Supply in Salt Lake City. He has been working literally non-stop for the last five months as shops rush into the waterborne game before the deadline of July 1. “I’ve got shops lining up and it’s been crazy,” Brasier said. “I’m training 2-3 shops

all the time, back to back and once we’ve got them covered, here come 34 more.” While many shops in his region are embracing the new paint and quickly learning how to apply it correctly, some smaller shops are dragging their feet, Brasier explained. “If someone is onboard, I can train them in three days without issue. But, if they’re reluctant for whatever reason, it can take months, because they have to unlearn so many old habits. The waterborne paint goes on wetter and it stays wet longer and you have to use it in a clean environment without dust and dirt all around. It’s not rocket science, so if a good painter is motivated, he or she can be adept at using it rather quickly.” For more information about getting a clean air grant, you can find more information and the grant application at www.ucair.org.

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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 15

NY-based MSO Collision Experts Drops State Farm’s Select Service Due to Parts Procurement Requirement Collision Experts, a New York-based MSO with two locations, said it will no longer be included in State Farm’s Select Service Program because the collision repair shop wants to have the right to decide where to purchase its parts. State Farm’s customers can still choose to have their vehicles repaired at Collision Experts’ shops in Schenectady or Clifton Park, but the national office may no longer refer customers to Collision Experts. Collision Experts CEO and owner Maryann Bowman said it was more important for Collision Experts to have the freedom to buy parts from trusted vendors that the company has built relationships with over the years rather than be included in State Farm’s Select Service Program, which requires collision repair shops to purchase parts from PartsTrader. Richard Bowman said “Many of my parts vendors signed up with PartsTrader so we couldn’t use them.” “Sometimes you have to part ways in a partnership,” said Maryann Bowman. “In this case, I believe that

the national changes don’t work for my business model. We do not want to sever the relationships we’ve built with our vendors over the years.” State Farm has been rolling out the changes incrementally and just recently implemented the mandate in New York. Collision Experts is the only local body shop to publicly opt out of the program as a result of the changes. “Although we value the business that State Farm has referred to us over the years, the new Select Service Program does not fit our business model,” said Bowman. “This is strictly a business decision based on changes to the Select Service Program that would require us to change parts vendors. We have great relationships with our parts vendors, and we feel that this helps us provide an exceptional product. If at any time State Farm decides to change or adjust their Select Service Program, we will be more than happy to revisit this in the future.” However, State Farm customers are still free to choose Collision Ex-

Continued from Page 13

MSCRA

perts for their body repairs. “We still welcome all State Farm customers and look forward to continuing to work with local State Farm agents to provide the best repair for our mutual clients,” said Bowman. Collision Experts’ parting with State Farm is amicable, Bowman said. However, some body shops have filed lawsuits or traveled across the country to heighten awareness of State Farm’s changes. “We will continue to have a good working relationship with State Farm,” said Bowman. “It’s disappointing that they may refer customers to different shops despite our high rating because of a difference of opinion. We are willing to work together so we can give our customers the best service at a time when they need it most.”

This year will also see the continuation of the association’s activities against insurer-mandated parts procurement programs as Mosley and “many members of our association feel the PartsTrader scheme and the direct repair programs are illegal and are a tortious interference in our business relationships which leads to a direct violation of our fiduciary responsibility to our customers. “Because of that, we are dedicated to taking the fight on for the consumer and for our right to do business to the highest courts in the land. We are working tirelessly to expand this effort from coast to coast, and the reception from our industry has been a humbling experience for all. Many brave men and women are paving the way for all who stay in the repair business and those who come after we are gone.”

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NC Shop Wins Nationwide Short-Pay Arbitration Case Pack Brothers Collision Center of Belmont, NC, has won a short-pay arbitration case in a Lincoln County North Carolina court against Nationwide Mutual Insurance Company. On February 3, 2014, a judge awarded a customer of Pack Brothers a little more than $3,000, which was owed to Pack Brothers for collision repairs that Nationwide refused to pay upon completion of their insured’s car. The lawsuit was filed on behalf of the customer with a Power of Attorney assigned by the customer in cooperation with Pack Brothers. The customer was insured by Nationwide, which refused to pay for repairs for a first-party claim. According to Pack Brothers, Nationwide did not honor their policy and refused to pay them for the repairs. A judge found that under the policy language, Nationwide did owe their policyholder so he could satisfy his collision repair bill. The judge entered a judgment against Nationwide finding in favor of the customer so that he could pay Pack Brothers.

“Insurance companies are so used to saying that they will not pay for correct repairs, and they know that very few shops will push it into litigation,” said Ronnie and Larry Pack. “Therefore, they continue to deny payment to the shops because they know it’s time consuming and expensive for the shop owners to pursue. “What we are seeing is that insurance companies are shortcutting repairs, and so the repairs to the car are now compromised because of the insurance company refusal to pay for the correct repairs needed. Therefore, some of the shops are shortcutting the repairs to make up for that loss— which ultimately makes the customer the loser. “Our victory means nothing unless the whole industry gets involved and demands to be paid for correct repairs.”

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involved welding. Jefferson County EMA and ADEM were contacted during the fire, as there were hazardous materials inside the building. Propane cylinders, diesel fuel, oil drums and To advertise approximately 16 cars were present calltheAdvertising Sales at: inside shop. Everyone working there got out 800-699-8251 safely.

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GCIA Holds March Member Meeting The Georgia Collision Industry Association (GCIA) will be holding their March member meeting on Thursday, March 20th from 6:30–9 PM at the Doubletree Hotel located at 2055 South Park Place in Atlanta, GA. The meeting will begin with a catered dinner, followed by presentations by the two speakers that GCIA has scheduled for the event. First, Reid Heiser from Mitchell will be present to discuss Mitchell’s RMC Paint and Material Calculator. This portion of the meeting will serve to educate GCIA members about this invoicing program since many insurers are now accepting Paint and Material invoices, according to Howard Batchelor, Executive Director of GCIA. Next, Bob Winn and Frank LaViola from Enterprise will give a presentation on the ARMS reports which shops should be reviewing on a daily basis.

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Batchelor explains, “many insurance Mail Subscription. companies use these reports to score how the shops are doing, and I wanted to educate them on what they need to review in order to improve their scores.” See the NEW Register Your E Batchelor hopes this meeting will benefit GCIA members “by eduParts Department Hours: cating them on how to be compensated properly for paint and materials Mon-Fri: 8:00am - 5:30pm; Sat: 8:00am - 1:00pm www.autobodynews.com at www.autobod and how to improve their efficiencies and drive more business to the door.” Attending this informative meeting will cost GCIA members only $10 with non-members paying $20. Reservations can be made by contacting Batchelor at Howard@GCIA.org or 770-367-9816. ToGCIA advertise In April, will begin working oncall theirSean eighthHartman annual labor at:and material rate survey. 800-699-8251 Email Howard Batchelor, GCIA e-mail: executive director, with any questions shartman@autobodynews.com about the meeting or becoming a GCIA sponsor. Go to: www.autobodynews.com 1515 S. Military Hwy. • Chesapeake, VA 23320 gcia.org/about/link-to-gcia/

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Southeast Associations

Six SE Associations Prepare for Southern Automotive Repair Conf. with Chasidy Rae Sisk

The second annual Southern Automo- pating in the conference will include tive Repair Conference (SARC) is the Florida Autobody Collision Assoquickly approaching, plenty withcreating Chasidy Rae ciation Sisk (FACA), the Georgia Collision of work for the six associations that Industry Association (GCIA), the will be taking part in the event on Louisiana Collision Industry AssociaApril 11 and 12, 2014 at the Beau Ri- tion (LaCIA), and the Tennessee Colvage Resort and Casino in Biloxi, MS. lision Repairers Association (TCRA). If this 300% increase in conference Howard Batchelor, Executive collaborators is any indication, this Director of GCIA, believes that inwith Chasidy Rae volvement Sisk with the SARC is important year’s SARC will be quite successful with an influx of attendees! because “the more information we can Steve Plier, Executive Director of provide to collision centers, the better the Alabama Automotive Repair Socithey will be prepared for the changing ety of Excellence (ALARISE) came up industry. There are several issues curwith the idea for the first conference rently affecting shops, and we want to Chasidy Rae be Sisk which was held inwith February 2012 with able to provide information they over 95% of attendees coming from can use to better run their shop and AL, and this conference actually led to make better business decisions.” He the founding of ALARISE. Plier states hopes that attendees will acquire use“the intent of the 2012 conference, just ful information that can be used to imlike the focus of this year’s conference, prove their businesses, and he is was on education, business principles, personally looking forward to talking consumer focus, and the fact that a colwith the various shops about how they lision repairer must be compensated for do business and what challenges they all labor procedures and materials used face so that GCIA can create an agenda in properly repairing a vehicle to the to address these issues in the future. level of quality required to meet manuThe conference will begin the affacturers’ standards so reinvestments ternoon of Friday, April 11, and conwith can be continually madeEd to Attanasio purchase tinue on Saturday from 8 AM until around 5:30 PM. The event’s agenda innew equipment and to provide the concludes a reception, trade show, retinual training required to keep up with freshments, and “breakout sessions” the ever-changing technologies of which include training, I-CAR classes, today’s vehicles and vehicles of the fusponsor demos and association symture. Moving forward on each of these posiums. Additionally, the conference subjects is of the utmost for with importance Ed Attanasio boasts an array of speakers representeach and every vehicle owner and for ing various segments of the industry. all consumers (you, me, our families The presentations given by the and friends, children and grandchildren) speakers will be moderated by Master because improperly repaired vehicles of Ceremonies Patrick Porter, radio can result in severe injuries even to the most innocent and unknowing parties.” personality and owner of Porter’s Body with Plier’s Ed Attanasio The next year, group Shop in Brookhaven, MS. Scheduled speakers include the following industry joined with John Mosley, President professionals: Congressional Medal of of the Mississippi Collision Repair Honor recipient Mike Thornton; Association (MSCRA), and acting as Aaron Schulenburg, Executive Direccoordinators of the 2013 event, Plier tor of SCRS; Aaron Clark of Assured and Mosley collaborated to organize Performance; Richard Perry, Chief’s the SARC; their efforts proved effecwith ThomasparFranklin Ford F-150 Project Manager; Dave tive with 28 exhibitors/sponsors Poston, Collision Marketing Manager ticipating in the conference as well as for American Honda; Richard Valenover 220 attendees representing five zuela of Variable Rates Systems; John southeastern states. Anticipated attenMosley, President of MSCRA and dance for the 2014 SARC has inowner of Clinton Body Shop; and Ray creased to over 500 participants. Gunder of Gunder’s Auto Center. SARC 2014with has expanded to inEd Attanasio On Saturday, the main speakers clude the collaboration of four more associations; in addition to MSCRA will each be allotted approximately 45 minutes to present, beginning with and ALARISE, associations partici-

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Schulenburg who will provide a national industry update. Noting that this is the third time he will be attending SARC, Schulenburg shares his feelings on the conference and his plans for his presentation: “conferences such as these present a terrific opportunity for shops to open their thoughts to alternative solutions and mindsets that can help drive their business forward. My talk is going to be focused on discussing new market trends and developments in the collision repair industry that are going to impact collision repair professionals, and a quick dive into some unique out-of-the-box perspectives that depart from the masses, and instead rely on developing strategy based on results, rather than on the expected.” Schulenburg looks forward to attending SARC again since it gets bigger and better with more content each year, and he believes “Steve and his group have done a tremendous job of pulling together this southern market and giving them an exciting forum to look forward to, and I have no doubt this year will continue to surpass those previous events.” The presentations will conclude with Mosley and Gunder, joined by attorney John Eaves, discussing the details and status of lawsuits filed against insurers, ending with a Q&A session. Though the order of the other speakers has not yet been finalized, the topics they will speak on are as follows: Thornton will deliver a motivational speech, Poston is presenting on Honda repair technologies, Perry plans to discuss the new repair requirements for aluminum F-150 vehicles, and Valenzuela is scheduled to cover the Variable Rate System which promises to make a difference in establishing equitable labor rates through a body shop survey system. Clark’s presentation will focus on the explaining Ford National Body Shop Program as Assured Performance is facilitating Ford dealership certification and recognition for independent body shops. Noting this is his first opportunity to attend such an event in the southeast, Clark is “looking forward to meeting some new people and being able to answer any

questions that they may have.” Excitement and anticipation surrounding the SARC 2014 can be found in abundance amongst those involved with planning and speaking at the event. Plier is eager to hear Thornton speak: “I hope attendees will think about all the sacrifices that Mike and all the men and women in our military services for this country have made for each of us to enjoy the freedoms that we do. I hope this will lead attendees to be determined to stand for what is right and understand that standing for what is right usually is not the easy path, but it is the only path that will bring about change that is right, needed and focused on quality and service for each and every vehicle owner and their families.” Schulenburg is “most looking forward to the exchange of ideas that fosters unique, independent thought for attendees. It is refreshing for repair business owners to step out of their four walls for a moment and take in other perspectives and information. I get excited about the idea of these repairers breaking the mold and really finding unique ways to bolster their businesses as they tackle the ever-changing landscape of collision repair.” For Georgia Thorson, Administrative Coordinator of the SARC, it’s all about “seeing all of the planning come to fruition. Having so many collision industry professionals join a common cause to improve problem areas for their industry, their business and their customers promises to be exciting. The conference lineup and the venue are spectacular, so I know I won’t be disappointed in the results!” Attendees can register for the SARC at a cost of $30 per person, but for individual business that want to have more than five employees attend at the same time, the registration fee is capped at $150. Businesses interested in exhibiting can reserve space for $1000, $3000 or $5000, dependent on their booth requirements and presentation time slots. Though limited space is still available, the deadline for exhibitors to register if March 25, so hurry and reserve your space today! Current exhibitors include manufacturers, marketing representatives, PBE See Six SE Associations, Page 21

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Continued from Cover

Maryland Parts Bill

five years old. “Senate Bill 487 will severely limit the choices that the consumer has in getting their vehicle repaired,” said ABPA Executive Director Edward Salamy. “These types of anticonsumer bills not only eliminate competition, a foundation of the American free enterprise system, they also increase the potential for higher insurance costs.” ABPA claims that a representative of the Washington Metropolitan Auto Body Association (WMABA) made a series of false claims, including: ● OE radiators have a better warranty than alternative supplier radiators. ● Consumers will be required to pay additional rental car fees caused by delays due to alternative parts. “The ABPA is not only monitoring the legislation in Maryland, but it has also come to our attention there is similar anti-consumer legislation being introduced in Rhode Island and Michigan,” said Salamy. “Having your vehicle involved in a collision is already a very stressful experience for the consumer. Having a repair association such as WMABA using scare tactics to achieve their own agenda is not in the best interest of the consumer.” Maryland Senate Bill 487 would prohibit “…a specified adjuster, appraiser, insurance producer, or employee of an insurer from requiring a motor vehicle repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle; requiring an insurer that issues or delivers in the State a policy of motor vehicle liability insurance that provides coverage for the repair of physical damage to the insured motor vehicle to authorize specified repairs to be made using genuine crash parts; etc.” The Property Casualty Insurers Association of America (PCI) testified in opposition to the legislation. Oyango Snell, State Government Relations Counsel said, “PCI and our members encourage lawmakers to closely examine the possible negative ramifications for consumers that could result if Senate Bill 487 passes. This legislation not only imposes severe restrictions on how insurers manage the

auto body repair process and deliver a quality repair experience, but it also could hurt consumers by increasing the costs associated with getting vehicles repaired and increasing the cost of insurance premiums. Currently Maryland’s average collision premium ranks 13th highest in the nation and that ranking could rise by forcing more repairs to always be made with

could not secure it on the private market, already has a policy to pay for OEM parts for two years after the date of manufacture. While adding a year to the current policy would raise costs, the analysis states, “However, despite the prevalence of motor vehicle accidents and collisions in society at large, any expenditure increase due to covering an additional year is likely to be minimal.”

Auto Body Association, (WMABA) supported the proposed legislation believing it necessary to protect the rights of repair facilities to operate their business independently and protect consumers. WMABA also believes that the impact on costs from the OEM-parts only requirement would be minimal and that there is no correlation between this type of provision and the cost of insurance. According to WMABA, while Rhode Island with a 30-month prohibition, and West Virginia, with a 3-year prohibition, have historically higher premiums than Maryland, Indiana, with a 5-yr prohibition, and Minnesota with a complete aftermarket prohibition have lower premiums than Maryland. WMABA also drew attention to the fact that consumer choice is preserved in the legislation because consumers would still have the ability to consent to the use of aftermarket parts if they choose to do so. For more detailed discussion of the testimony see p. 43.

“[This legislation] imposes severe restrictions on how insurers manage the auto repair process and deliver a quality repair experience...”

—Oyango Snell, PCI Govt. Relations Counsel

original equipment parts, which can be as much as 60 percent more than aftermarket parts.” Snell continued, “We believe lawmakers will see that this bill limits consumer choice and stands in the way of insurers providing high quality repairs at reasonable costs for their constituents. We are urging lawmakers to table this legislation and continue to fight against higher costs for consumers.” The Coalition for Auto Repair Equality (CARE) that represents companies in the automotive aftermarket including NAPA, AutoZone, Advance Auto Parts, O’Reilly Auto Parts and Bridgestone-Firestone Retail Operations, raised concerns about the proposed legislation’s impact upon low-income consumers and that it stigmatizes non-OEM parts by requiring the consumer to consent to their use. “If passed, House Bill 574 and Senate Bill 487 would require motorists who need vehicle replacement parts to specifically sign for the use of aftermarket parts in their vehicles before accepting them. This is unfair because these same vehicle owners do not have to sign for the more expensive car company-labeled parts. In addition, this plants a seed of doubt in a consumer’s mind that the aftermarket parts are somehow of inferior quality, frightening them into spending extra money that they may not have,” andy BassCors, executive director of CARE. Addressing the issue of the three year requirement for OEM parts, an analysis prepared on the bills by the Maryland Department of Legislative services noted that the Maryland Automobile Insurance Fund (MAIF), an independent state agency created by the Maryland State Legislature in 1972 to provide insurance to residents who

20 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

The MAIF reported that in 2013 it wrote a total of 460 estimates on 2011 model vehicles (three year old vehicles that would be covered by the expanded OEM-only waiting period) and that the average difference between estimates using OEM parts versus aftermarket parts was $117.32, for a total estimated increased cost of $53,967. If that cost was passed on to consumers in premium, the two percent tax on insurance premiums paid to the state would result in $1079 tax collected. The Washington Metropolitan

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ASA Announces Incentives for Select I-CAR Qualified Shops to Attend NACE/CARS

Six SE Associations

The Automotive Service Association (ASA) is preparing for NACE/CARS 2014 which will be held at the Cobo Center in Detroit, MI, during the last week of July. It will be held in conjunction with other core industry events, including I-CAR, CIC, and CREF’s annual golf outing. ASA Executive Director Dan Risley stresses the importance of NACE and CARS as “the only events solely dedicated to those who service and repair cars.” One of ASA’s goals in 2014 is to attract the “best of the best industry leaders,” so they are offering a special incentive for shops or repairers that are I-CAR Gold or Platinum certified or who have received ASE’s Blue Shield or Master Technician certifications—to reward their investment in training and as an acknowledgement of their commitment to the industry, these shops/individuals will be able to purchase the super pass (allowing them full access for the entirety of Industry Week) at a 50% discount. Risley is excited about the number of changes to this year’s program and the responses received thus far. “The concept is to bring people together and provide a place where people can get the technical information they need to repair today’s cars.”

distributors and industry associations. With the steady increases in attendance and the value brought by the SARC, Plier hopes the event will continue to grow in the future as attendees tell others of the information and benefits gained from attending the conference. Furthermore, he would like to “challenge every individual in the collision repair industry to look in the mirror and ask ‘do I agree with the direction of this industry?’ If you do not agree, then do something to change the direction; complaining will not bring about change – change will only occur when we fight for our principles and what is right. What principles do you stand for? I hope everyone will consider this challenge. I do not want to see this industry become another medical industry with few, if any, choices. America was built on the values of freedom and freedom of choice. Where do you stand?” For additional information about the Southern Automotive Repair Conference, visit their website at: www.southernautomotiverepairconference.com or call 731-736-3165.

Industry Week will begin on Tuesday, July 29 with CIC’s meeting, followed by I-CAR meetings on July 30. On Wednesday afternoon, the Canadian Collision Industry Forum (CCIF) will hold a four to six hour event. The week will conclude with NACE/CARS on Thursday, July 31, and Friday, August 1. Other important changes include moving the date of NACE/CARS 2014 from October to July, as well as holding the event in Detroit instead of a “destination location,” such as Las Vegas, as they normally do. Risley explains that this choice was intentional for several reasons– “Detroit isn’t a destination trip so attendees will be more inclined to spend time on the floor and in training classes. There are around 5000 shops within a three hours driving radius of the city who we want to reach. We want to give attendees a new experience coupled with class A training and information; we plan the show to be for and about people who work on cars.” Some of these experiences that ASA hopes to provide take the form of various tours. As yet, the tour plans are still unconfirmed, but Risley hopes to offer tours to “some pretty unique venues”, including the Henry Ford Museum, the BASF facility (hosted by BASF), the Chrysler plant, the Ford F-

150 plant, and the Dodge Viper plant, if their line is running at that point. Also unconfirmed as yet are ASA’s hopes to hold their annual graduation ceremony at the GM Heritage Center. The hype surrounding this year’s NACE/CARS is also reflected in the fact that exhibitors have already contracted several thousand square feet more than the show floor space last year. Risley believes that they are in position to sell out the 50,000 square foot floor, and this doesn’t even include the 30,000 square foot dedicated to specialty vehicles, show cars and a new demonstration area. Exhibitors are also supporting NACE/CARS by promoting the event to local shops. Of course there is a full schedule of training. “We are bolstering the training offered. You will see a distinct difference with a LOT of technical training,” Risley promises, which is in keeping with this year’s theme of Repairability. This year’s schedule is heavily laden with technical training on both the collision and mechanical sides of the business. ASA is also collaborating with I-CAR to provide a full slate of ICAR training for the collision repairers in attendance. One of their most highly anticipated courses will involve aluminum-specific training sessions.

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Social Media for Shops with Ed Attanasio

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

Louisiana Shop Owner Uses Twitter to Survey Other Shops in Real Time, Insurers Not Happy A Louisiana body shop owner saw his when I walked into that room and lisdaughter using Twitter to survey her tened to what everyone said, a light friends on an important social matter, bulb went on in my head. Hey, a lot of and a light bulb went off in his head. us are in the same boat, I thought!” withrepeatedly Ed Attanasio He was fuming about havAfter the LaCIA’s January meeting to wrestle with insurance compa- ing, there was a question and answer nies over what they will and won’t session and that’s when Cantrelle pay for. But, rather than getting mad, shared his brilliant idea with the he’s now using the social media site to membership in attendance. “After query other shops about what is and seeing my 14-year-old daughter (Ashisn’t being paid for elsewhere. ley) on her cell phone texting her Abel Cantrelle, 49, is the owner of friends, I realized that we can use this Advantage Collision Center in Houma, social media to help the organization LA. He recently purchased a 40-inch and each other,” he said. “All these smart television and hung it on the wall kids now are on Facebook, Instagram it in his reception area in his shop where and Twitter every day communicating both customers and insurance adjusters with [their peer group], so why can’t body shops do the same thing?” Cantrelle is not a techie and surely not a social media expert, but he knows that communication and networking can be powerful if used properly, he said. “It’s all about communicating with the tools we’ve got. I remember way back when they started telling us about personal computers and programs like CCC and Mitchell. Lots of us didn’t know anything about comAbel Cantrelle saw his 14-year-old daughter Ashley tweeting one day and came up with the idea of using puters and now they’re in Twitter to survey other shops on repair compensation front of us every day. We in real time can go to Twitter and comcan see it. But, they’re not watching The municate back and forth and get anView or Dr. Phil. What they’re seeing is swers right away—at our fingertips.” a real-time feed of Cantrelle’s Twitter Cantrelle is using Twitter to call account, so that when insurers deny anyout insurance adjusters that want to thing for any reason, he can tweet the deny when it comes to repair processes details to shop owners and companies they don’t want to reimburse. “If an inlike CCC and Mitchell to get their imsurance company comes in here now mediate feedback. and says we don’t pay for this or that, The story begins late last year, all I have to do is say let’s stop right when Cantrelle got wind of a new trade here and ask these shops in America association that was in its infancy, he about whether they ask for this supexplained. “Back in December, my plement or not,” Cantrelle said. paint rep walked into our shop and “It freaks them out, to be honest. asked me if I was going to be attending Mitchell and CCC are also on Twitter, a meeting of the new Louisiana Colliso they can answer the question too, if sion Industry Association (LaCIA) and they want to. I want them on there, beI told him I hadn’t heard about it. So, cause that way they’re accountable as on December 5, I walked into their well. The repair procedures are right meeting in Baton Rouge and I was surthere listed on CCC and Mitchell, so if prised to see over 200 people there. In it’s there, it should be paid for.” my experience, people in this industry Cantrelle used to have several tend to work against each other, but DRPs, but no more, he explained. “I’m

SEMA Show Goes On

22 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

done with it and now they’re steering ‘Enough is enough—I’m tired of us away to other shops,” he said. “I working for free,’ and everybody don’t think they’re happy with the loved it.” Twitter thing and I’m certain that they “Last week, we did a car and they do not love the idea of it all being dispaid me for the seam sealer and every played on a TV in my front office. It’s single process I had to do. I tell any inalso gaining momentum, because we surer if there is a process I’m not doing now have more than 100 followers on on a vehicle, I will pay you back. I will Twitter and body shops are joining prove everything I’m doing. We’re takevery day. There are now folks from ing pictures of every single thing now.” the United Kingdom and all over the country that have joined us and I’m astonished by all the people that are going through the same thing and really care.” Alysia Hanks is the executive director at LaCIA and an administrator at Lakeway Collision Center in Mandeville, LA. She strongly believes that Cantrelle’s use of The whole shop is on Twitter Twitter is an ingenious and perfectly “One big insurer told me some of timed idea, for many reasons. “I’m all these shops in the backyard will for using social media, because it’s a charge for this and this, and I say do great way to keep connected to our your job and go catch them and find members, other body shops through- them not doing those things and make out the country and other state associ- them pay you back. I recently wrote a ations,” she said. “We always want to car for $5,040 and State Farm wrote be networking, so that we know an estimate for $2,800, threw it on my what’s out there and be ready for the desk and ran. I made them come back next thing. We talked to other state as- out, rewrite it and go over it with me sociations and one of the main prob- and they ended up writing the same lems they encountered was a lack of estimate as me.” communication, so things like FaceBy telling the collision world book and Twitter can keep us in the about his new communication tool and loop.” process, Cantrelle hopes other shops Hanks appreciates the trans- will join Twitter and realize it’s a great parency and accountability of the way way to know what other shops in other Cantrelle is using Twitter. “We’re tak- parts of the country are dealing with. ing to it the insurance companies, be“If everyone [joined Twitter], the cause it’s been too long,” she said. screen would be popping and jumping,” “We’re not doing this to start a fight Cantrelle says. But when you’re in Misand we’re not intending to start a law- sissippi and I can tweet, ‘I have a Prosuit. We just want the body shops in gressive guy [for example] here and he’s this state to know that we’re here, to telling me shops aren’t charging for this work together and make a better busi- or that,’ and then ask, ‘Are you charging ness environment for all of us.” for this?’ and they say, ‘Yes,’ I can look A man on a mission, Cantrelle at the Progressive guy and say, ‘Well, wants body shops at a national level there’s your answer.’ to get involved in what he calls, “this “United we stand, divided we fall. Twitter thing.” If people don’t start joining hands, it’s “If we could get, say, 800 to 1,000 going to get bad,” said Cantrelle. shops on this thing,” Cantrelle said, To join Cantrelle’s Twitter feed “Well, now, we would have something go to #advantageccinc. “Hop onboard really special. Since I don’t have any and ask me a question,” he said. “If I DRPs, I’m not afraid of telling the can’t answer it, somebody will be able truth. One of my first tweets was to and that’s the beauty of it!”

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Southwest Associations

LaCIA Meets to Talk Progress and Future Plans with Chasidy Rae Sisk

The newly-formed Louisiana ColliHis son is the third generation of his sion Industry Association (LaCIA) has family to enter this industry, and Mebeen busy settingwith up theirChasidy organization Rae dine Siskwants to effect change so that his and is working toward their goals. son can have the same long and sucThey held a meeting on January 21 to cessful career. discuss their progress thus far as well Randy Mclachan of Performas their future plans. Over 180 people ance Finish & Collision feels that attended this meeting, which Derek LaCIA is taking the correct profesStubbs, Vice Chairman of LaCIA, atwith Chasidy Rae sional Sisk approach to their development, tributes to the fact that “we are all here and he believes the association can be because we care about this business, useful in providing training and eduand we care about what happens to it.” cation to its member. He said he hopes Chairman Lynn Lejeune called that they will be “an association of edthe meeting to order, welcomed attenucation.” He is confident that by workdees and led a prayer before the assoing together LaCIA members can with Chasidy Rae make Siskmeaningful change that will benciation’s general counsel Lance Kinchen, of Breazeale, Sachse and efit LA’s collision repair industry. Wilson LLP, read the anti-trust stateReid Heiser of Mitchell International spoke about three things that associations such as LaCIA can do, such as providing a sense of community, with Chasidy Rae offering Sisk training and changing perspectives. In regards to these benefits, Hanks said, “it’s a great thing to walk into a room of neighbors and not a room of competitors. Mitchell has a lot of training they can send in to help our group. They benefit when our industry benefits. The industry is rapidly LaCIA Chairman Lynn Lejeune speaks to changing, and if you don’t keep up the group with it, you will not succeed. We need ment. Next, Executive Director Alysia to embrace those changes and plan for Hanks touched base on a few things what is coming down the line. [In relike the upcoming Southern Automogards to perspective], unless you get with Ed Attanasio tive Repair Conference in Biloxi and out and see what others are doing, told the group what she hopes to acnothing will ever change—‘you can’t complish with the association. work on your business if you’re workEach member of the association’s ing in your business.’” Board of Directors then provided some The day after the meeting, Hanks background on their experiences and emailed notes to participants, along spoke about their plansEd forAttanasio LaCIA. with some additional information about with Lejeune stressed that it is about “comthe association’s progress. Their webing together and agreeing to make a site is now finally operational, though it difference.” is still being improved, and can be Stubbs emphasized the imporfound at www.la-cia.com. tance of focusing on the present and In response to questions at the the future instead of the past. “Last meeting about social networking, Attanasio year is over, andwith we stillEd have battles Hanks provided the address of the asto fight everyday this year, but we sociation’s Facebook page, agreeing need to face these problems together that social networking is “an avenue to make a difference. We have national we will explore.” Since the meeting, issues that we have to handle first on a Hanks has established a Twitter acstate level.” count @LouisianaCIA and a Facebook Chris Medine from Medine’s page (www.facebook.com/SeLaCRA). with Thomas FranklinHanks has drafted a formal reCollision said he believes LaCIA has potential to be and do many good quest to the LA’s commissioner’s ofthings through having so many indus- fice, requesting that they look into the try professionals working together. legality of PartsTrader in their state,

Southeast Associations

similar to what ASA has initiated, and she is currently awaiting comment from the association’s attorneys. Additionally, the email provided a link to

Northeast Associations

Great Lakes Associations National Associations

Lance Kinchen, General Counsel for LaCIA, addresses the meeting

the website for the Southern Automotive Repair Conference and a link to Mike Watson’s article on partial refinish. Also attached were LaCIA’s general membership application and an application to a GM training course that was held on February 25th at the Holi-

day Inn in Baton Rouge. Many members for LaCIA attended the event where topics included aluminum in new vehicles and price matching as it pertains to CollisionLink and GM’s Bump the Competition Program which allows price matching on select parts when an insurer estimate calls for aftermarket parts to be used. GM’s course also discussed 2013/2014 cores on fascias and headlights, how to recognize counterfeit airbags and warranty information. More information on technology and their service bulletins can be found at www.genuinegmparts.com. LaCIA supports and will be attending the Southern Automotive Repair Conference in Biloxi, MS, on April 11–12, 2014 where they have reserved a booth. LaCIA’s next meeting is scheduled for Tuesday, May 20th in Monroe, LA. As LaCIA continues to develop and becomes increasingly involved with industry issues, stay tuned for updates.

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

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

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26 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 27

North Texas Student Says Two Mobile Dent Repair Businesses Took Him for a Ride Driver claims mobile dent repair businesses did $3,700 in damage

When cameras from the NBC 5 Investigates Consumer Unit started rolling, two so-called repairmen went running, according to Deanna Dewberry, of the NBC 5 Investigates Consumer Unit. A North Texas student told the news team that after his bad experiences with two different mobile dent repair businesses he wanted to warn others to steer clear of drive-up, fix-it auto repairmen whose promises and prices seem too good to be true. Joshua Bissonette is a cashstrapped college student trying to finish up school after serving in the U.S. Army. With his car in need of repair, Bissonette turned to Craigslist and found an ad for “mobile auto body” repair men who fix dents and damage at a person’s “work or home” for “less than a traditional” body shop. He decided to give them a try. “They got to work right away,” said Bissonette. “They started prying the dent out. It seemed like they knew what they were doing.” But he soon learned otherwise. “The dents look gone, but it doesn’t look good,” he said. Bissonette said they didn’t finish the job either. “They said due to the cold weather they couldn’t apply paint,” Bissonette said. They left with the repairs incomplete and his wallet $250 lighter. “I just wanted them to go away, so I paid them their money,” he said. But with the work unfinished, Bissonette went back to Craigslist again where he found another ad for a different mobile auto body repair business. This ad had pictures and promises. So he called and set up a meeting in an Arlington parking lot. Continued from Cover

FL Antitrust Suit

plaintiffs allege that the insurers agreed to control and suppress automobile damage repair costs at meetings amongst themselves that they refused to allow members of the auto collision repair industry to attend. Plaintiffs also contend that defendants’ alleged conduct constitutes unlawful boycott activity. In support

“They said it was going to look like new,” Bissonette said. He paid them $250 cash for the job. Bissonette said these guys covered their shoddy work with green goop saying it would protect the paint. When he got home and washed it off he was horrified. He saw a scratched sandpaper surface and spray paint spattered on his windshield, mirror, and tire. “It looks horrible,” he explained. Bissonette then called NBC 5 Investigates Consumer Unit and they called the numbers from both ads to set up meetings. We showed up at the first location in our station Chevrolet Tahoe, which had a dent. Their cameras were in tow. We told a guy, who said his name was Tony, that some of his past customers were unhappy with his work. “No comment at this point. I have to get in touch with my lawyer,” he said. When Investigates pressed further he got in his car and sped away. Investigates then called the number in the second ad and set up a time and place to meet. When they identified themselves, the repairman immediately covered his face, never got out of his car and left faster than the first guy.

“The Worst I’ve Ever Seen” Brian Johnson, a certified collision repairman for Service King in Irving, evaluated Bissonette’s car. “It is the worst I’ve ever seen for someone to call that a finished product,” he said. “It looks like they used spray paint out of a can.” Johnson said he sees fly-by-night auto dent repairmen come out of the woodwork in the DFW area, especially after weather events like storms, hail and ice. “Just since the beginning of this

of that assertion, plaintiffs maintain that the defendants’ alleged acts of steering customers away from plaintiffs, through allegations and intimidations of poor work quality places defendants’ conduct beyond the limited antitrust exemption that the insurance industry enjoys under the McCarran Ferguson Act. The action is only in its very earliest stages, and the insurers have not yet responded to plaintiffs’ allegations.

28 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

year, I have seen three cars personally with the same situation,” said Johnson. Johnson said the looks of Bissonette’s car are the least of his worries. “There is probably no structural integrity left in that panel,” Johnson said. In his opinion, because of how the work was done, the panel might not perform as it should in a wreck, potentially putting Bissonette’s safety at risk. He recommended replacing that panel. In total, the repairs would now cost $3,700. Texas has no state agency that regulates collision repair, so it’s up consumers to do their homework. The News Team reported that consumers should ask repairers if they have certification from an organization like I-CAR, or ASE, the National Institute for Automotive Service Excellence. They should also ask about warranties. If a repairman doesn’t offer one, experts suggest finding someone else. “You want to make sure the company is standing behind their work,” said Steve Sikes, Service King’s associate vice president of business development.

Experts also said any paint work needs to be done in a controlled environment, so if someone offers to paint outside, that’s likely a red flag too. In the end, Bissonette’s plight struck a chord with Richardson-based Service King. “It’s certainly unfortunate what you’ve had to deal with, with the subpar repairs,” Sikes said to Bissonette. In a gesture of goodwill, the company, a supporter of U.S. servicemen and servicewomen, said it would fix his car for free, leaving Bissonette astounded and smiling from ear to ear. The Enterprise Rent-A-Car location attached to this particular Service King location said it would also pick up the tab for his rental car while the repairs are done. Bisonette said he learned his lesson and he’ll be less trusting next time and that he hopes his story helps others avoid being taken by rogue mobile dent repair businesses. “I decided to call NBC 5 Investigates because I don’t want this to happen, you know, to anybody else,” he said.

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AAAS Busy Strengthening Industry in 2014 by Chasidy Rae Sisk

Despite the harsh and unusual weather in the southeast portion of the country, the Automotive Aftermarket Association Southeast (AAAS) has been hard at work in their efforts to strengthen the industry—they aren’t going to let a little snow and ice slow them down! Currently, their main focus is on two upcoming lobbying events, but they are also preparing to award scholarships as their scholarship deadline draws near and planning for their annual conference in June. AAAS held their second Annual Capitol Day at the GA State Capitol in Atlanta on Wednesday, February 19th. GA members of AAAS were invited to join the association for a full day of legislative sessions and visits with elected officials as AAAS seeks to personally advocate for the industry’s priorities. On March 18th and 19th, AAAS members from the Sunshine State are encouraged to attend their Annual Capitol Day event in Tallahassee, FL, again attending legislative sessions and visiting with legislators as they at-

tempt to strengthen the industry. Regarding these two events, President of AAAS Randal Ward explains, “members join us for a day or two of walking the halls of the legislature and visiting representatives.” Ward believes this is a proactive networking opportunity that allows them to gain advocates for future legislative concerns they may encounter. AAAS is also preparing to award scholarships in the near future. The deadline for the AAAS Educational Foundation Scholarship is March 31, 2014. The AAASEF Scholarship Fund was established in 2005 to encourage and financially support individuals wishing to continue their education in a technical training school or college. Applicants must be sponsored by an AAAS member to be eligible, but all eligible candidates will be considered, regardless of their chosen field of study. Applications can be submitted at: www.automotivescholarships.com /AAAS. Additionally, AAAS is making arrangements for their upcoming Annual Conference and Trade Show, to

be held at the Baytowne Warf of Sandestin on June 5-8, 2014. They are excited to present keynote speaker John Washbish, President and CEO of the Aftermarket Auto Parts Alliance, Inc. With over four decades of experience in the automotive industry, Washbash’s leadership skills have been recognized with numerous awards, including the Automotive Warehouse Distributors Association Leader of the Year Award and Northwood’s Automotive Aftermarket Management Education Award. AAAS Chairman Mike Morgan feels “very fortunate to have John joining us for our annual conference. We look forward to his visit and him sharing his views and insight on the industry and the economy… We are honored to welcome an impressive list of guest speakers who will deliver very timely educational and informative presentations on some of the most important topics facing the aftermarket industry today.” On Saturday morning, the conference will begin with Washbish discussing changes and trends that NO. CAROLINA

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impact aftermarket businesses. Next, Scott Luckett, Chief Information Officer of the Automotive Aftermarket Industry Association (AAIA) will present “The Connected Car: The Impact of Vehicles Telematics in the Auto Care Industry,” and this will be followed by a presentation on “Aftermarket Access to OEM Vehicle Repair Information,” given by Skip Potter, Executive Director of the National Automotive Service Task Force (NASTF). The program will conclude with Wayne Bowling, Senior Vice President of Employee Benefits at Willis Group, who will discuss Obamacare’s effects on attendees, their businesses and their employees. In addition to the educational aspect of the event, AAAS promises networking opportunities and plenty of fun with a full schedule that includes a deep fishing charter, a reception at Baytowne Marina, a Saturday night dinner cruise on the Solaris, and the Bell/Hines Memorial Scholarship Fundraiser Golf Tournament. AAAS will continue providing updates on this event at www.aaas.us.

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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 29

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.

Helpful Documents, Tools, Information Only a Click Away For Shops Looking for tips, tools and resources “It’s hard to find qualified technito help your business, defend your po- cians on general job boards,” Jeff Hersitions or do your part for the indus- man, CEO of TopTech Finder, said. try? Here’s a collection links to “They aren’t designed for the mechanwith EdofAttanasio sites, documents and information you ical repair industry and don’t draw may find interesting and useful. many technicians. In contrast, TopTech — More and more state legislaFinder allows candidates to show off tures are considering bills that would industry-specific qualifications, makplace new limits on insurer mandates, ing it a natural place for techs to find such as State Farm’s mandated use of jobs.” PartsTrader. Meanwhile theAttanasio AutomoTopTech Finder is free for jobwith Ed tive Service Association (ASA) is exseekers and will remain free for empected to issue a preliminary report ployers for a limited time. soon on the response it has received — It’s a common belief in the infrom state attorneys general and insurdustry that in markets with lower ance regulations regarding the legality labor rates, estimates have more line of State Farm’s PartsTrader mandate. items to make the bottom line about “ASA has had discussions with a the same as it would be in a market Ed have Attanasio number of thesewith states that sub- with a higher labor rate. Some analymitted inquiries for additional sup- sis from Mitchell International indiporting information,” the association cates that may not be the case. states in its press release. “It’s imporDownload Mitchell’s most retant to note that subsequent to our an- cent “Industry Trends Report,” nouncement relative to sending letters (http://tinyurl.com/cpbt9ks) to read to each state, State Farm sent states a how the company analyzed estimates letter arguing the legitimacy of such in states with the highest labor rates mandates.” to compare them to those with the Want to see what State Farm is lowest labor rates. The states with the telling some state regulators? Click lowest average body labor rates – here (http://tinyurl.com/StateFarm- Massachusetts ($37.07), Tennessee Letter) to see one such letter. ($41.14), Florida ($41.29), Georgia “Our goal was to resolve this issue ($42.04) and Maryland ($42.12) – did without government oversight, internot tend to have more repair (versus ference or legislation,” Dan Risley, exreplace) operations, more refinish ecutive director of ASA, said. “As hours or more overall estimate lines such, we have persisted in our efforts than the states with the highest averto work with State Farm to change the age body labor rates – Montana current PartsTrader mandate policy. ($63.05), Alaska ($61.35), California This has included multiple meetings ($60.46), North Dakota (59.52) and and other discussions that continued Wyoming ($57.45). throughout 2013. ASA believes that “Only 1.2 hours of total labor there are potential solutions (if) State separates the average of the bottom Farm is willing to work toward an amfive labor rate states from the top five icable resolution that benefits State labor rate states,” the report found, for Farm, collision repairers and the conexample. sumer.” — Which states are doing the — Looking for another way to remost to improve highway safety? The cruit new technicians? Shops should 11th annual report card from Advonote that use of the TopTechFinder.com cates for Highway and Auto Safety (www.toptechfinder.com) recruiting measuring state progress in passing site is still free for both shops and those highway safety laws gives Illinois, looking for work. Oregon and the District of Columbia Since launching in early 2012, the top grades for having enacted 12 TopTechFinder.com has connected with of 15 laws the organization supports. over 1,350 candidates and 350 repairAnother six states, including Indiana, ers in the collision repair business. It have passed 11 of the laws. has since expanded to help mechanical States receiving the lowest grades, repair shops find qualified employees. having enacted five or fewer of the

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laws, are South Dakota, Mississippi, Arizona, Iowa, Montana and Nebraska. Download the report at: http://tinyurl.com/lctnvv9 — Here’s a link that has nothing to do with collision repair directly, but could save a life. Joe Arnold, vice president of Arnold’s Body Shop in Davenport, Iowa, is urging people to learn the symptoms of a stroke after his wife suffered a stroke on the day after Christmas. “She is only 39 years old and healthy,” Arnold posted on Facebook. “It can happen to anyone at any age. At the start we thought it was just a migraine. As it progressed, it became clear that it was a stroke. I only knew because of my past training as an EMT (14 years ago) what it really could be. She will make a full recovery because we recognized the signs and symptoms and took immediate action based upon them.” The three key symptoms are outlined at: http://tinyurl.com/ltg3q63 “The more you know, the safer you and your loved ones will be,” Arnold wrote. — Another anti-DRP website, StopDRP.com, has launched; its content includes an animated video cautioning consumers about the use of non-OEM parts (comparing them to having a diamond replaced with cubic zirconium) and one fictionalizing a conversation between a shop and an insurer about what the shop must do to become part of the insurer’s DRP. The site includes a link to another such site, StopSteering.com, which launched in 2008. — Looking for help explaining their automaker’s position on nonOEM parts or reconditioned wheels? The OEM Roundtable this year launched a new consumer website, www.CrashRepairInfo.com. The site includes: information for vehicleowners on how to choose a body shop; definitions of common terms used in collision repair and auto insurance claims; automaker position statements on vehicle safety systems, counterfeit or salvage airbags, etc.; and videos such as Honda’s demonstration of a mistimed airbag’s impact on a watermelon.

— Ten insurers (including Farmers, USAA, Chubb and MetLife) are offering a branded app (http://tinyurl.com/Snapsheet) through Snapsheet (www.Snapsheet.com) that enable “self-service” claims for customers. Snapsheet CEO Brad Weisberg said when an insured calls to report a loss, the insurer can offer them the option of using the app to upload six to 15 photos of the damage. Estimators at Snapsheet’s offices then prepare an estimate based on the photos and sends it back to the customer within three business hours. The customer has the option of a direct-deposit cash-out, or can use the app to schedule an appointment with one of the insurer’s DRP shops. Supplements are handled through Snapsheet. Insurers pay a flat fee per estimate for the service, Weisberg said. He emphasizes that his company produces “visual estimates” only. How do Snapsheet estimators ensure their estimates comply with various state laws regarding use of non-OEM parts, etc.? “There are some states where we absolutely cannot write in,” Weisberg said. “But what we pride ourselves on is writing accurate estimates. Not only accurate to fix the car but also according to a carrier’s guidelines. So we spend a lot of time with the carriers calibrating with their claims organization how they want us to write the estimates. They review a lot of our estimates to make sure we’re writing according to plan.” Prior to Snapsheet, Weisberg was the founder in 2011 of BodyShopBids, which enabled consumers to upload photos of their damaged vehicle and receive quotes from nearby body shops within 24 hours. “BodyShopBids was a great idea and a great way to start, but it wasn’t a real business,” Weisberg said. “This is needed in the industry and this is wanted by consumers, so it’s a perfect fit.”

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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 31

Western Associations with Chasidy Rae Sisk

ASA-AZ Meets to Discuss Survival Skills for Service Advisors On Saturday, February 22nd, the Auzona. Most attended to learn better tomotive Service Association of Ariways on how to communicate with zona (ASA-AZ) hosted a course others [came for] a rewith Chasidy Rae customers, Sisk entitled Survival Skills for Service Adfresher course.” visors at the Phoenix Airport Hilton. The focus of the event was on the Luz A. Rubio, Executive Director of importance of developing good communication skills, and the group discussed various scenarios with Chasidy Rae Sisk and examples, examining the best way to handle each unique situation. “Being able to listen to the customer with Chasidy Rae Sisk and addressing the reason they came into the shop should be the primary focus. Being able to educate and inform with Chasidy Rae Sisk the customer on the ASA-AZ, says it was a “great class! importance of maintaining their vehicle We had 30 Service Advisors in attenin order to prevent costly repairs was dance, representing shops around Arialso an area of focus,” Rubio told us.

Southwest Associations Southeast Associations Northeast Associations

Great Lakes Associations National Associations

NAPA Collision Conference April 8–9,Rae Sisk areChasidy SCRS and CIC with in Orlando, FL, April 15–17 2014, in Portland, OR

The Society of Collision Repair Specialists (SCRS) Industry Awards and Corporate Member Recognition Luncheon will be held on Wednesday, April 9, 2014, from 11:45 a.m. to 12:45 p.m., just prior to the Collision Industry Conference (CIC) at the Red Lion Hotel on the River Jantzen Beach in Portland, OR. In additon, the SCRS Open Board Meeting will be on Tuesday, April 8, 2014, from 3:00 to 5:00 p.m. Following the board at 5:15 withmeeting Ed Attanasio p.m., current SCRS members can vote for four board members. Collision repair shop owners and managers are further invited to attend a special Collision Repairer Roundtable meeting on Wednesday, April 9, 2014, from 8:30 to 11:00 a.m. Attanasio RSVP by with March Ed 26, 2014, to info@scrs.com or 1-877-841-0660. Contact the Red Lion Hotel on the River Jantzen Beach at 1-800-7335466 to make hotel reservations and mention CIC to get the group rate.

The first National Automotive Parts Association (NAPA) Collision Conference for collision repair facility owners and managers and NAPA and Martin Senour paint customers will be held April 15–17, 2014, at the Gaylord Palms Resort and Convention Center in Orlando, FL. “This conference will help collision repair shop management run their business better in so many ways: how to improve cycle time; how to hire and retain the best technicians and staff; how to develop effective business marketing techniques; and how to increase productivity and profitability in all processes,” says Chris Nichols, NAPA director of PBE, U.S. Automotive Parts Group. The conference will include multiple education sessions and speakers, two evening receptions, and a collision industry trade show. The registration fee is US$495 for two nights at the Gaylord Palms Resort and all meetings and receptions, or US$95 for just the conference and Give us yourand opinion on receptions (airfare travel expenses are not included). Register oline at www.registernapa.com.

Attendees’ expectations were exceeded, Rubio believes. “Several experienced service advisors who have been in their position for more than ten years enjoyed the class and walked away with at least one idea that they can implement to improve how they have been doing their job.” In 2014, the ASA-AZ’s goal is to provide their members with education and training by attracting indus-

try speakers who will share fresh content that members can relate to and learn from. “The benefit of being a member is the opportunity to exchange ideas with peers and learn from each other. We promote that we are not an association of competitors, but an association of peers where we identify challenges and come up with ideas that will maximize the success and longevity their businesses.” ASA-AZ is very excited to offer a full calendar of meetings, events and

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roundtables this year as they continue to strive to provide a forum for members to share valuable information that will help elevate the standard in the in-

dustry. Rubio poses a question: “Where else can you go to exchange information with your peers, people that have found what works or what does not? We urge shop owners to attend these events and network with their fellow peers; the return on their membership investment will be more than just financial.”

ASA-AZ PO Box 81517 Phoenix, AZ 85069 602-544-2600 www.asaaz.org

Car-O-Liner Offers New Ford 2015 F-150 Equipment

PPG Announces Distributor Training Schedule

PPG Automotive Refinish unveiled its 2014 distributor training schedule. Consisting of more than 30 classes across 12 critical business areas, the training is for owners, managers, sales staff, and other key personnel involved in the operation of a PPG distributor business. Classes cover general operations, finance, business development and management, conflict resolution, selling skills, commercial business development, and more. “We’re always enhancing our distributor training offerings, making sure they’re relevant and rewarding,” said Bob Wenzinger, PPG distributor programs director. “We see PPG distributors at all levels learning and improving from our courses.” Training will be held from March to December in PPG business development centers and conference facilities throughout the U.S. and Canada. Courses are led by PPG leaders and prominent consultants in the automotive refinish industry. View the complete 2014 trainus your opinion on ingGive schedule at http://us.ppgrefinish.com/PPG-Refinish/Training/Trai ning-Courses.

Car-O-Liner® has expanded their equipment offering included in the 2015 F-150 Collision Repair Program. New equipment includes three new welders, frame alignment solutions, and a mobile aluminum workstation.

“This equipment will greatly enhance the technician’s potential to have the exact tools they need for high quality, quick, and accurate repairs. With this expanded product offering, Car-O-Liner is excited to provide the total repair solution, giving technicians the right equipment to complete each repair order efficiently,” said Peter Richardson, key accounts manager for Car-Omatters Liner. affecting the industry. Visit www.car-o-liner.com for more information.

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Sustainability Challenge Grant Winners Announced

The Collision Repair Education Foundation and AkzoNobel Automotive and Aerospace Coatings are proud to announce the winners of the new Sustainability Challenge Grant: ► Applied Technology Center (Rock Hill, SC) ►Cerritos College (Norwalk, CA) ►Gaithersburg High School (Gaithersburg, MD) ►Manhattan Area Tech College (Manhattan, KS) ►Northern Maine Community College (Presque Isle, ME) Winners were selected based on their submitted proposals for applying continuous improvement and sustainability principles that improve the school body shop process or how the shop interacts and impacts the community. Each winner will receive funding to introduce their proposed idea into their school and report on the success of their project. The program also provided a sustainability video series and other tools that served as a way to educate collision students about sustainabilWant toandContribute ity, its principles, how to improve and make a positive impact on the environment.

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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 33

Historical Snapshot

20 Years Ago In The Collision Repair Industry (April 1994) with John Yoswick

(Retired Automotive Service AssociaBob Matejzel of the CIC Estimattion lobbyist Don) Randall told the ing Committee said his group has idengroup that current antitrust laws are tified an initial list of about a dozen with Chasidy Raeprocedures Sisk strangling collision repairers by giving that it believes the estimatinsurers an unfair advantage to meet ing systems should automatically reand to set policy language and contract mind users about. As an example, definitions. In essence, he said, insurMatejzel said that if replacement of a ers have the ability to set market prices lower control arm or other front-end while collision repairers do not. suspension part is entered on an esti“Our systemwith is control losses Rae – mate, Chasidy Siskthe system should in some way which sounds like a pretty good idea,” prompt the estimator to also include an Randall said. “But that system is dealignment on the estimate. stroying the free enterprise system in Matejzel said the industry inforthis state.” mation providers Insurance policies, he said, are are focusing much laden with loopholes that give insurers of their efforts this the opportunity to change a $100 deyear on Y2K comwith Chasidy Rae Sisk ductible into one costing much more. pliance issues. But “In the event of a loss, ‘We will he said his commake you whole,’ but who decides mittee – which inwhat is whole,” Randall said. “You cludes insurers and Bob Matejzel have a variable. If you take the car to shops – will conthe shop of your choice, and it isn’t one tinue to meet with the estimating syswith Chasidy Rae Sisk they choose, they may say to you, ‘You tem providers to discuss these changes just pay the difference between the one throughout the year. you picked and the one we picked.’ “If you’d been at one of this comThey may also say, ‘We don’t pay mittee’s meetings, you’d have actually for…’ or “It is not customary…” or ‘It seen a group of repairers and insurers is not usual andwith ordinary.’ They are Chasidy Raestand Sisk up and face the information now engaging in ‘dancing around the providers and say with one voice, ‘This contract.’” is what we want,’” said CIC Chairman Randall railed against the current Dale Delmege of the committee’s direct repair programs, saying they meetings earlier this year. “That was a breed corruption and cheating. magic moment in this industry.” “It’s wrong with and it Chasidy ought to be Linda Holcomb said the CIC Rae Sisk stopped,” he said. “But it will not stop Write It Right Committee’s discussions until this industry gets organized.” with the estimating system providers – from coverage of a forum in has also focused on the need to make Portland, Ore., sponsored by Fairness the systems easier to use. in Auto Insurance Regulations (FAIR) “Our estimators are really spending a lot of time writing estimates and with Chasidy Sisklike to see that done quicker,” she 15 years ago in the collision repair Raewe’d said. industry (April 1999) Could the computerized estimating – as reported in Autobody News systems be improved to improve the ease and accuracy of estimating? Three 10 years ago in the collision repair Collision Industry Conference (CIC) industry (April 2004) with exploring ChasidythisRaeASisk committees continued videotape of an interview with one issue at the CIC meeting in Denver in vehicle owner about his experience April. with an auto claim generated some dis-

cussion when shown at the Collision Industry Conference (CIC) in Nashville largely because of who the vehicle owner is: Joe Maxwell, the lieutenant governor of Missouri. “The thing I was most amazed by was how quickly I was contacted by [the other driver’s] insurance company, which almost immediately called me and said they already had the check in the mail to pay for my automobile,” Maxwell said. “I asked ‘How did you even know how much damage was done?’ They said, ‘Well, from the report.’ So I was offered a settlement before anybody even viewed the damage to the vehicle.” Maxwell said that while the insurance company representatives were pleasant and that he never felt harassed, they did refer him to a shop in Columbia, Missouri, 45 miles away. When he told the insurer the first check they sent would not cover the cost of repairs, they made an appointment to send someone out to look at the vehicle at his office. Maxwell doesn’t know if that happened. The shop received a revised estimate – still insufficient to cover the cost of repairs – but Maxwell said the adjuster never contacted him. “They claim the guy came and viewed the car, but he never came into the building, never jacked the vehicle up,” Maxwell said. “The car was parallel parked on the street and the damage was on the driver’s door side so the guy would have had to lay down on the street to look under the car, which wouldn’t have been safe. And clearly without opening the door, which was locked, they could not have seen all the damage. So that troubled me some.” Maxwell said he’s concerned that many people in his situation would have accepted that first check and “in doing so accept settlement on the claim and then discover it wasn’t enough to have a professional, quality job done.” He said he’s also concerned about

5 years ago in the collision repair industry (April 2009) Under a settlement agreement reached last week, LKQ Corp. will be the only company allowed to sell certain nonOEM collision parts for Ford vehicles. The non-OEM parts involved are those designed to replace parts for which Ford owns design patents. As part of the agreement, LKQ will pay Ford a royalty fee for each part sold, and has agreed not to challenge the validity of Ford’s design patents during the term of the agreement (which extends until October 2011 but may be renewed). Other details of the agreement were not disclosed. Ford said the settlement “does not endorse the quality or use of non-OEM replacement parts sold by LKQ Corp.” The agreement ends two legal battles Ford has waged to protect its design patents on collision parts for its F-150 pickup and Mustang. It also is likely to split the non-OEM parts industry which has been working as the “Quality Parts Coalition” to limit automakers’ rights to hold design patents on collision parts. – As reported in CRASH Network (www.CrashNetwork.com), April, 2009. LKQ currently faces a lawsuit from Chrysler over the sale of parts that the automaker claims violate its design patents. The Quality Parts Coalition continues to back proposed federal legislation that would slash (from 14 years to just 30 months) the time that automakers can use design patents to prevent other companies from producing replacement crash parts.

(ALARISE), Florida Autobody Collision Alliance (FACA), Georgia Collision Industry Association (GCIA), Louisiana Collision Industry Association (LaCIA), Mississippi Collision Repair Association (MSCRA), and Tennessee Collision Repairers Associa-

tion (TCRA)—and anticipates more than the approximately 300 attendees and 28 exhibitors/sponsors that participated in 2013. Anyone connected to the automotive collision repair industry— including shop owners, technicians, painters, estimators, managers, vendors,

suppliers, and insurance-related workers—from Alabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee are invited to attend. Registration is $30 per person. See www.southernautomotiverepairconference.com.

Associations Assembling Southeast News

Western Associations

Southwest Associations Southeast Associations Northeast Associations

Great Lakes Associations National Associations

Continued from Cover

Southern Repair Conference

surers. The 2014 conference will include six state associations—Alabama Automotive Repair Society of Excellence

Shop Showcase

34 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

with Ed Attanasio

insurers steering work or owning shops. “The idea of having an insurance company that would control where I repaired my car is kind of like having a fox watch the chicken house,” he said. “You may wind up with less chickens.” – as reported in Autobody News

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Get Ready for Earth Day with LKQ Get Green Promotion

SEMA Seeks Nominations for Hall of Fame by March 21, 2014

Mitchell Acquiring FAIRPAY

Collision Repair Education Foundation Golf Fundraiser

Leading up to Earth Day on April 17, 2014, the 2014 LKQ Get Green promotion is encourages all LKQ customers in environmentally-friendly practices, while offering a chance to win valuable prizes, including solar backpacks, LKQ gift cards, Raleigh ALYSA FT0 bicycles, and a 2014 Honda Accord. For more information and the official rules on the 2014 LKQ Get Green promotion, visit: www.LKQGetGreen.com.

Mitchell has agreed to acquire FAIRPAY Solutions, a workers’ compensation, liability, and auto cost containment and payment integrity services provider. Mitchell plans to offer FAIRPAY Solutions specialty bill review to auto and workers’ compensation markets and out-of-network negotiation services. Mitchell will maintain relationships with other bill review and negotiation service providers. For more information, visit www.mitchell.com.

The Specialty Equipment Market Association (SEMA) is accepting nominations for its Hall of Fame. Created in 1969, the SEMA Hall of Fame is designed to honor outstanding people in the industry who have enhanced the stature of, or significantly contributed to, the industry and/or association’s growth. Submit a nomination before March 21, 2014, at http://fs17.formsite.com/ginalsemaorg/form2/index. html.

The Collision Repair Education Foundation annual summer golf fundraiser will be on Thursday, July 31, 2014, at the Arnold Palmer-designed Northville Hills Golf Club in Detroit, MI, in conjunction with CIC, I-CAR, NACE, and other Industry Week meetings being held. that week. Funds raised assist the Collision Repair Education Foundation in providing support to collision repair students and school collision programs. Contact Brandon.Eckenrode@ed-foundation.org or at 847463-5244.

Power Up at the 2014 WIN Educational Conference in San Diego, CA, May 5–7, 2014

Attendees will “Power Up” to be the best they can be at the annual Women’s Industry Network (WIN) Educational Conference May 5–7, 2014, at the Paradise Point Resort and Spa in San Diego, CA. The conference will feature keynote speakers Colette Carlson and Dr. Verna Cornelia Price, and cover everything from sustainability, a trending issue in the collision industry, to honing your negotiation and interpersonal skills. “We are thrilled to have the opportunity for Dr. Price and Ms. Carlson to address the WIN members at this year’s Educational Conference,” said Jessica Rob, co-chair of the conference planning committee. “Their messages are in alignment with WIN’s mission; their presentations focus on personal power, masterful communication, change and positivity in the workplace.” In the inaugural year of WIN’s presentation of the Most Influential Women awards, the gala dinner will focus on recognizing women who have been nominated by their peers

as outstanding business and civic leaders. 2014 will also usher in a new era of scholarships for WIN. For the first time, WIN will award tuition scholarships to applicants from both secondary and post-secondary schools as the winners pursue their education in technical colleges across the country. Some of those winners will be in attendance at the conference. Additional special events will include welcome luau dinner on the beach and the annual scholarship walk. In addition, WIN is focusing on reducing their carbon footprint for the conference to foster a more sustainable future by reducing printed materials (invitations, brochures, and program materials), shifting in-session practices to reduce waste, and shifting resources from purchasing giveaways”to the scholarship fund. Registration opens in March 2014. Learn more about the conference at http://thewomensindustrynetwork.ning.com/page/2014-conference.

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36 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

Latest Edition of CIECA-TV: ECommerce Done Right

The Collision Industry Electronic Commerce Association (CIECA) announced the newest edition of CIECA-TV: CIECA, E-Commerce Done Right. To meet the needs for safe and secure e-commerce, the industry needed standards that enable us to exchange the right data with the right player at the right time. To accomplish that, CIECA created the Business Message Specification (BMS). View a video about the CIECA BMS at: h t t p : / / w w w. y o u t u b e . c o m / watch?v=bxvxtesVx7I.

Transtar Acquires ETX

Transtar Industries, Inc., owner of automotive aftermarket brands including Transtar, Transtar Autobody Technologies, King-O-Matic, Axiom, and Nickels Performance, has acquired ETX, Inc. from Chicagobased, privately-held Jordan Industries and private equity firm The Edgewater Funds. ETX owns DACCO, Inc., Alma Products, and ATCO Products, Inc. With this acquisition, Transtar Industries expands to approximately 2,300 employees and over 130 locations throughout North America.

Mitchell Announces Liability Adjusters’ Software Release

Mitchell announced on February 25, 2014, that the commercial release of Decision Point 8, a completely automated medical bill review and workflow solution for first- and third-party liability adjusters. Decision Point 8 is an end-toend medical bill review platform enabling adjusters in the auto casualty industry to make informed decisions around medical bills related to liability claims. For more information, visit www.mitchell.com.

SEMA Data Co-op Grows 300%

The Specialty Equipment Manufacturers Association (SEMA) Data Coop (SDC) is now helping more than 600 automotive specialty equipment Suppliers and re-sellers around the world standardize and manage their parts data to improve efficiency and increase sales, a 300 percent increase from August 2013. The SDC has seen unprecedented growth following a very strong formal launch of its Product Information Management System (PIMS) in May 2013 and the announcement of free product data exports to SEMA members.

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NABC Accepting Nominations for Industry Awards The National Auto Body Council (NABC) is now accepting nominations for its two industry awards that recognize shops for making a positive impact on their local communities and the collision repair industry, the Award of Distinction and the Body Shop Image Award. The Award of Distinction recognizes bravery, philanthropy, charity, and selfless acts of kindness by individuals or groups in the collision industry who selflessly give of themselves for the benefit of others, while helping further the NABC mission to promote a positive image of the collision industry. The Body Shop Image Award calls attention to the beneficial impact an attractive, well-designed facility has on its surrounding community. This award embodies the spirit and mission of the NABC to promote the image of the collision repair industry and become a vital asset to the neighborhood. Any body shop that completes a remodeling project during the 2014 calendar year can be nominated. One winner and three runners up will be recognized. As part of its 2014 recognition program, the NABC plans to call attention throughout the year to out-

standing individuals and body shops whose extraordinary efforts make a positive impact in their communities and the collision industry. In addition to selecting overall Award of Distinction and Body Shop Image Award winners, the NABC plans to recognize and share nominations throughout the year. “Any time someone in the industry does something worthy, we’d like to encourage folks to go the NABC website and fill out a nomination form for either award,” said Kent Seavey, NABC awards program chair. “The individuals and body shops that are recognized will be featured in our member newsletter and automatically become nominees for both the Award of Distinction and the Body Shop Image Award.” Winners of both awards will be announced in November 2014, at the Collision Industry Conference (CIC) during the Specialty Equipment Market Association (SEMA) show in Las Vegas, NV. Each finalist will also be featured and recognized on the NABC website and in other publicity efforts. Nomination forms are available at NationalAutoBodyCouncil.org.

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I-CAR Introduces Training Solution for Full-frame Partial Replacement Repairs, Replaces Two Other Courses

I-CAR® has added a new live, instructor-led course to its catalog: FullFrame Partial Replacement (FFR01). This course provides information on OEM repair procedures and welding requirements for full-frame vehicles and covers several important collision repair topics that are critical to complete, safe, and quality repairs for the ultimate benefit of the consumer. “Properly repairing today’s fullframe vehicles requires a command of an array of considerations. The content in this course can be applied on the job www.autobodynews.com immediately following completion, resulting in increased savings for the shop CHECK IT OUT! and the vehicle owner alike,” explained Josh McFarlin, I-CAR director of curriculum and product development. Technicians will learn how to identify full-frame designs, partial replacement options and repair considerations for full-frame attachments To the advertise during course. They will also have to HD-quality call access Advertising Salesvideos at: on fullframe partial replacement procedures 800-699-8251 for some of today’s most popular fulle-mail:including Ford F-150, frame vehicles, advertising@autobodynews.com General Motors 1500 frames, RAM 1500, and Jeep Wrangler. www.autobodynews.com This three-credit hour course meets training requirements for steel

structural technicians, auto physical damage appraisers, and estimators in the I-CAR Professional Development Program™ (PDP). FFR01 will replace Steel FullFrame Sectioning (SPS03) and Steel Full-Frame Technologies and Repair (SPS08), resulting in three less credit hours of training for certain repair professionals. Anyone who has previously taken either SPS03 or SPS08 Give uslose your opinion on has matters will not training credit that been earned. To register for FFR01, visit the I-CAR website at www.i-car.com or contact I-CAR publisher@autobody customer care at 1800-I-CAR-USA (422-7872).

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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 37

On Creative Marketing

A Missing Hat In Most Shops with Thomas Franklin

By now most shop owners know the advantage most new media people collision repair world is changing rap- lack. Your ten years or more of accuidly. Last month I wrote about the Sci- mulated customer contacts are a solid, Fi Shop of the Future. New materials experienced crowd. Now the time has and new smart cars require new skills come to maximize that resource. It’s time to take a new look at and new technology. But what is changing even faster is the way peo- your professional image. Unlike servple communicate with one another. ice stations and mechanical shops, Facebook’s recent purchase What- your customers don’t come in for regwith DickofStrom sApp for 19 billion dollars to enhance ular maintenance or simple battery the mobile segment of its 1.2 billion and tire purchases. In a sense they’re users says that mobile communication somewhat like the family doctor between users may become the pre- whose patients come in for annual dominant way people communicate in checkups and exams. But the collision the future. But how many shops em- shop owner is more like a surgeon ploy someone solely for the purpose who only sees a patient when a major of connecting with this segment of the operation is needed. And so much of population? And is there any good your marketing must be similar to that of the surgeon or other professionals reason to do so at this time? My answer would be that it all who only see clients in extreme times depends on how much a shop’s busi- of need. How do they build a reliable Leewith Amaradio Jr.base? ness depends onwith connecting rela- client Many professionals must rely tively young vehicle owners and drivers. Older customers are usually heavily on client referrals and conmore affluent and drive higher end ve- tacts. To build on these, most seek to hicles. If a shop maintains a database join clubs, associations and charitaof at least ten years of past customers, ble organizations that their clients the odds are good that more than half frequent or belong to. If they belong of those customers is older and possi- to a particular religion or philosophbly less tech-savvy. More importantly, ical group, they will participate in these prior customers and their that group to have an opportunity to friends, families and contacts may meet with various members and bemake up the biggest part of your fu- come known as a specialist in their with Sheila Loftusspecific field. High-priced profesture customer base outside of insurance and dealership referrals. As the sionals like CPAs, lawyers and surnew market becomes more and more geons can afford to invest serious tied to websites, Facebook, Twitter time in developing a deeply personal and other media, the general game de- relationship with a potential client. A pends on who can come up with the typical body shop owner can’t afford most captivating message and images to dedicate substantial time to any on the new media. But you have an one potential collision repair cus-

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

tomer. So how can a shop owner do the kind of depth marketing that will gain the loyalty of this kind of reliable referral source? One shop owner in the California San Fernando Valley had a wall full of contacts. He belonged to the Knights of Columbus, the Sheriff’s Supporters League, and the American Legion. He sponsored a Boy Scout Troop, a Ladies Auxiliary and several school sports teams. It sounded like this guy was everywhere and his volume of business attested to the effectiveness of his efforts. How did he do it? Obviously not alone. Later I learned that his sister had started a woman’s business referral service. His son was active in the business at a young age. In general I don’t think he had paid P.R. people doing any of this work, but it’s not much of a stretch to consider that possibility. Family is great if you have it, but if not can it be cost-effective to employ a real public relations person

QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.

Your Turn

Zurich Insurance Cuts Jobs to Boost Profitabiltiy

Zurich Insurance Group will cut about Senn said that Zurich would in800 jobs globally to save around $250 vest in global corporate and mid-marmillion per year by the end of 2015 to ket business and its high-margin retail help reduce costs and Janet improve Chaney prof- insurance lines, while turning around with itability. or exiting non-core, underperforming The job cuts, which are equiva- insurance businesses. lent to 1.4 percent of its total headZurich also pledged to grow opcount, will remove management layers erating earnings through 2016 by rebetween the group and its business ducing complexity, as it lowered its units. Customer-facing activities will target for return on equity from 16 to not be affected. 12–14 percent through 2016. “We continue to make significant Senn stressed that Zurich is strivprogress towards our strategic goal to ing to be at the upper end of that goal make Zurich a focused and more prof- and that he would be disappointed if itable business,” said chief executive, the company was still at 12 percent in Martin Senn. three years.

Shop Showcase

Industry Overview with Janet Chaney

38 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

to handle this in-depth membership and schmoozing activity? Many businesses calculate the lifetime value of a customer. Figuring one collision repair every 3-to-5 years generates an approximate number. But this ignores the people in that customer’s surrounding universe. The opportunity to specifically refer a repair facility just when an accident happens is quite rare. That’s why the P.R. person is needed to amplify the praise of a satisfied customer in a group. This marketing person must have the ability to speak for the shop at groups, community events, company meetings and more. He or she should be of a comparable age to the prospective customers, with a background in sales and public speaking but with enough familiarity of the collision repair shop to present a credible story and reason to patronize the shop. As the crowd turns to social media, personal contact still has the advantage.

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I-CAR Has Implemented a New Initiative to Close OEM Informational Gaps

mation available, while others don’t lacks detailed information to make have any collision repair information them correctly. For example, an OEM available in the U.S. market. procedure might recommend “making I-CAR held a series of discussions and dressing a GMA MIG plug weld.” with a group of 50 auto manufacturers, But it may not specify how far to shop professionals and insurers to outgrind the weld, how to dress it, or the line 13 standard pieces of information grit of sandpaper to use. that repairers need access to from every The RTS website includes an onOEM. The list includes items such as line informational communication pormaterial identification, material retal for shops. It’s a technical inquiry pairability guidelines, sectioning proBartanen says the OEM informasubmission process that provides the cedures, seam sealer identification and industry with a strategy to communition available today still isn’t comprelocation, and corrosion protection rehensive. Several gaping holes exist, a cate and resolve repair gaps they enquirements. problem causing shops and insurers to counter, Bartanen says. The broader impact of the matrix, make procedural guesses on jobs with Shops can submit technical inthough, is development of more com- quiries, and the RTS team initiates comno way to verify their judgments. Some prehensive OEM repair manuals, Barshops have a hard time obtaining the munication with auto manufacturers to tanen says. Members of the RTS answer questions and share informainformation at all, Bartanen adds. Veinitiative have communicated the gaps tion. All technical inquiries and findings hicle manufacturers have strong distrito every OEM to help release more in- are sorted and searchable by vehicle bution methods for their affiliated formation, many of which are now manufacturer and subject matter. dealerships, but don’t have an efficient working on producing those standard tactic to deliver that same information items for the industry.The RTS created OEM Standardization to independent facilities, which repair a an OEM technical information matrix Bartanen says OEMs use different formajority of collision-damaged vehithat outlines which manufacturers mats, phrases and terminologies in their cles. provide which pieces of information. repair manuals, which makes them difI-CAR last summer launched a That document is a major benefit to ficult to read and causes shops to misnew Repairability Technical Support repairers, Bartanen says, because it’s interpret directions. All OEMs have (RTS) initiative to tackle the proba single resource to identify whether been solicited to develop more stanlem—a four-member team dedicated the information they need exists, and dardized communication processes. to communicate with auto manufacwhere they can find it. The informaCraig says auto manufacturers tion matrix will be updated and ex- understand the confusing—and somepanded as new information becomes times contradictory—information they available, and is viewable for free at produce, and most companies are in rts.i-car.com. favor of working together to simplify Doug Craig, collision repair manand unify their procedures. the Chrysler Group, for examThe RTS initiative is not necessarmatters affecting the industry. Want to Contribute to ager thisofSouthwest Edition? ple, says he is working with Chrysler’s ily meant to address the industry’s repair THESE DEALERS ARE vehicle design and materials engineers standards issue, but it’s one direct imMERCEDES-BENZ to update and distribute new technical provement that has resulted from those GENUINE PARTS publisher@autobodynews.com utobodynews.com repair bulletins to reflect the identified discussions, says Bob Keith, treasurer of SPECIALISTS. informational gaps. Many other OEMs I-CAR’s international board of directors è USE GENUINE MERCEDES-BENZ PARTS. are doing the same. and multi-store director for CARSTAR < SL 63 AMG Another notable improvement Auto Body Repair Experts. Promote your businesscame withfrom Kia—a Promote your with company thatbusiness hisAnd it will prove to be a major F LO RI DA AL A BA M A exclusive article an exclusive article featuring torically hasn’tan released collision infor- featuring benefit for shops, he says. Repairers Crown Automobile Brumos Motor Cars mation in the U.S. market. Bartanen will have access to more robust inforyour products or services. your products or services. Jacksonville Mercedes-Benz To advertise says the company now has a “highly mation and a more efficient strategy to y Hoover 800-726-9150 call Joe Momber at: comprehensive” collision manual availclarify technical questions to improve ry 904-725-2923 Fax 800-476-4669 able online for its Soul model. performance on the shop floor. 800-699-8251 205-402-2243 Fax M-F 7:00am - 7:00pm OEM information sometimes In addition, Keith says the RTS e-mail: MBparts@brumos.com M-F 7:30am - 5:00pm CST fails to provide specific necessary initiative has opened better lines of CALL: Joe Momber for details! Call for details! jmomber@autobodynews.com www.brumos.com mhooks@crownautomobile.com 51 steps to perform a recommended re- communication between the industry mtramell@crownautomobile.com 800-699-8251 800-699-8251 NOwww.autobodynews.com RT H C ARO L IN A pair procedure, Bartanen says. OEM and auto manufacturers to boost resmccormick@crownautomobile.com www.crownautomobile.com information provides shops with highsponsiveness surrounding informan. Mercedes-Benz of level processes to make a repair, but tional needs. Winston-Salem OEM repair information today is good, but not perfect, says Jason Bartanen, director of industry technical relations for I-CAR. It needs to be better and more readily accessible for shops.

turers to fill the informational gaps and distribute the information to the industry at large. The initiative—which will be a continual, ongoing effort moving forward—is expected to improve work quality and productivity for independent shops by providing centralized access to more consistent, detailed and standardized repair information. A new website has been created, rts.i-car.com, which is designed as a “centralized, comprehensive distribution mechanism” for OEM information, Bartanen says. All technical-based information from every auto manufacturer—paint, materials, parts and processes—is listed on the website and stored in the database. Rather than linking users to an auto manufacturer’s website, the information is housed directly on the RTS website in an easy-to-read format. The website also includes all of I-CAR’s latest technical briefs and daily articles. Bartanen says there is significant inconsistency between auto manufacturers regarding the type and amount of information they distribute. Some manufacturers have a wealth of infor-

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Is My Gas Can Safe? by Sam Celly, MS JD CSP

The maintenance and operation of gasoline tanks, both aboveground and underground, has become expensive, highly regulated, and burdensome. Automobile dealers have resorted to gas dolly equipment where a small amount of gasoline can be added to each new automobile delivered to the dealership. We note that automobiles delivered to dealerships from manufacturers have very small amounts of gasoline; this being a result of U.S. Department of Transportation (DOT) regulations, which dictate that minimal amounts of gasoline be retained in gas tanks of vehicles in transport. We write this memo to discuss DOT, OSHA, and CARB regulations applicable to gasoline being transported from a public gasoline station to dealerships for a later fill in automobiles on the lot. Federal DOT Regulations: Gasoline transport is discussed in Section 173.6 of the DOT regulations under “material of transport exceptions.” The regulations require that a container being used to transport gasoline must be less than 8 gallons

per container and a maximum of 72 total gallons (440 pounds). The containers must be secured in the pickup truck and properly labeled. The driver should be trained in DOT regulations. We recommend that the containers are UL certified. Beyond that, there are many other regulatory agencies with enforcement in the hazmat arena. http://www.gpo.gov/fdsys/pkg/CFR2011-title49-vol2/pdf/CFR-2011title49-vol2-sec173-6.pdf Safety: Safety concerns for gasoline containers are as follows: * Properly labeled container with hazard warnings and employee training in Hazard Communication Program (OSHA Regulation 29 CFR § 1910.1200). * 29 CFR § 1926.152(a)(1) states that “Only approved containers and portable tanks shall be used for storage and handling of flammable liquids. Approved safety cans or DOT approved containers shall be used for the handling and use of flammable liquids in quantities of 5 gallons or less...” * Bonding of containers to eliminate static electricity be followed both at the time of filling up the containers

CARSTAR to Address Industry Trends at Colorado Events

CARSTAR Auto Body Repair Experts will host two collision industry events in Colorado that will allow body shop owners to learn about the critical business issues and trends impacting their businesses. CARSTAR said the events, called Collision Industry Night, will be lead by a group of the industry’s top professionals. The events will feature the following speakers and topics of discussion:

■ Kurtis Keala of Mitchell International—Mobile Estimating Technology ■ Ryan Cassella of Hertz—Car Rental Technology ■ Steve Witt of BASF—Repair Planning ■ Robert Foster of 3M—The Impact of Technology for Future Vehicles ■ Chris Johns of FinishMaster— Collision Industry Overview ■ David Byers of CARSTAR—Insurance Industry Trends “When you’re an independent body shop owner, it’s hard to take the time to step away from your business to look at longer-range changes and developments in the industry,” said

Mark Algie, business development manager for 3M Automotive Aftermarket. “This Collision Industry Night provides a great way to understand how the changing marketplace will impact your business, and plan now for those changes.” The first event will take place March 4 from 11:30 a.m. to 1 p.m. at the Embassy Suites Denver-Tech Center in Centennial, CO. The second event will take place March 5 from 11:30 a.m. to 1 p.m. at the Sky Sox Security Service Field in Colorado Springs, CO. “For any body shop owner who is looking to grow their business, expand to an additional location, or transition their ownership to the next generation, this is an excellent event,” said David Byers, CEO of CARSTAR. “We’re joining with the top professionals in the collision industry to bring these events to local markets so owners have the opportunity to explore the major issues, trends and solutions in our changing industry.” Body shop owners interested in participating can contact Mike Davids at mdavids@carstar.com.

40 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

and when transferring from container to container. Keep containers on the ground when filling and not on the bed of the truck. Use grounding wire when necessary. Keep nozzle in contact with can during filling. Do not fill containers over 95% to allow for expansion. Spilled gasoline must evaporate before containers are put on the truck. * Containers must be closed so as to minimize the risk of spill and creating a fire hazard. * Spill proof spouts also lock in vapors so as to avoid vapor release while in storage. Don’t overfill gas tanks on automobiles. Keep fire extinguisher close by! * Transport truck must have a spill kit available with a trained operator on containing, cleaning, and proper disposal of spill absorbent. * Studies at Worcester Polytechnic Institute’s Department of Fire Protection Engineering, as reported by NBC News in late 2013, have indicated that under certain conditions, plastic cans are vulnerable to fires with an explosive force. The conditions that present the higher risk include having a very small amount of gasoline (a few

teaspoons) inside the gas can, cool temperatures, tilting the can at 42 degrees (typical pour angle) and of course a spark! The employees should be trained to avoid these risky conditions and maybe even buy metal cans in the future. http://www.nbcnews.com/news/investigations/watchgas-can-explode-lab-test-v21744014 CA Air Resources Board (CARB): As of July 1, 2007, all Portable Fuel Containers (PFC) sold in California must be certified by the Air Resources Board as meeting lowemission standards and regulatory requirements. This regulation is applicable to manufacturers and retailers who place the gas cans in the stream of commerce. Only containers of 10 gallons or less are covered by this regulation, so the sale of a 25 gallon gas caddy for shop use is exempt from CARB regulations. The following table provides a listing of those CARB approved containers certified for sale. http://www.arb.ca.gov/consprod/fuel-containers/pfc/eo/eo.htm Summary: CA based businesses have only CARB approved containers available. Other states may use these

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CARB approved containers with vapor locks that are spill proof and emit negligible flammable vapors and hence, are safer. Training in hazardous materials, including information on risks associated with plastic cans, should be provided to employees. Following safety and operation instructions on the PFC is also mandatory. Sam Celly has trained auto dealers regarding EPA/OSHA compliance in 9 western states since 1987. Celly was the first staff engineer at KPA after earning his Bachelor’s of Engineering degree and later, his MS degree in Chemical Engineering (School of Mines & Technology). In 1997, he received his Doctorate of Jurisprudence from Southwestern University in Los Angeles with emphasis on Labor & Environmental Law. Sam is a Certified Safety Professional and has served as the Chair of the Law Committee and Environmental Issues Committee of the American Industrial Hygiene Association (AIHA). Additionally, he is a member of American Institute of Chemical Engineers (1985) and the AIHA, where he is the President of the Southern California Section. Send your comments to sam@cellyservices.com.

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Ford Sued Over Patented Turn Signal Technology

Ford Motor Co. is being sued over claims that it infringed a patent on technology for an automatic turn signal. Ford’s three-blink lane change technology infringes a 2008 patent held by Richard Ponziani, a former automotive design engineer for companies including General Motors and Valeo SA, according to a complaint made public today in federal court in Wilmington, DE. Ford pitched the turn signal as the solution to one of the top 10 driving pet peeves when it announced the technology in 2009. The turn indicator is designed to blink three times and automatically shut off. The technology is used in Ford’s F Series truck, Taurus, Edge, and Fusion models, according to the complaint, which seeks unspecified damages. Ford spokeswoman, Kristina Adamski, declined to comment on the complaint.

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The first round of exhibit space draw MI, and will be held in conjunction for the International Autobody Con- with Industry Week 2014, a series of gress and Exposition (NACE) and automotive repair industry events the Congress of Automotive Repair and co-located meetings, including and Service (CARS) 2014 show is board and other private meetings, complete, and more than half the ex- Collision Repair Education Foundahibit floor is sold out. “This repre- tion annual golf fundraiser, Collision sents a significant change in events Industry Conference (CIC) quarterly and a strong commitment on behalf meeting, Inter-Industry Conference of the automotive market to support on Auto Collision Repair (I-CAR), the only national show solely dedi- gala 35th anniversary networking recated to both the collision and serv- ception, Canadian Collision Industry ice repair industries,” said Dan Forum (CCIF) meeting, Risley, ASA President. “Last year, NACE/CARS expo, business and we sold approximately 24,000 technical sessions, MSO Symposquare feet. We’ve already surpassed sium, Mechanical Symposium, onthat by 20 percent in the initial space site I-CAR training, and technical draw and are on pace to sell out. The presentations. show will feature more than 50,000 In addition, the ASA and Alsquare feet of exhibit space and an- liance of Automobile Manufacturers other 30,000 dedicated to live (AAM) jointly announced on March demonstrations and show cars.” 7, 2014, that the inaugral OEM Companies that booked space Technology and Innovation Expo come from all segments of the colli- will be held on August 1, 2014, as sion and mechanical repair markets, part of Industry Week. including OEMs, parts suppliers, esThe OEM Expo will include timating system and information panel discussions with OEM experts, providers, insurance companies, and product and application demonstratraining companies. tions, and connected vehicles to give NACE/CARS will take place attendees a hands-on experience. Give us yourJuly opinion on2,matters the industry. Monday-Saturday, 28-August Foraffecting additional information, visit 2014, at the Cobo Center in Detroit, naceexpo.com.

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www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 41

CIF is Now the Charitable Conscience of the Industry by Chasidy Rae Sisk

On January 16th, the Collision Industry Foundation (CIF) held their fourth annual gala fundraiser in Palm Springs, CA. This was the first time Bill Shaw the event was not held in Las Vegas in conjunction with CIC’s fourth quarter planning meeting, but according to CIF President William Shaw, the gala was very successful and exceeded CIF’s expectations. Nearly 100 people attended the two-hour cocktail reception at Lulu’s Bistro, and this year’s event saw an increase in the number of underwriting sponsors showcased. CIF began by selling raffle tickets at the door, a venture that raised $820. They also held a silent auction for eight items, including electronics and even an Indy Car Race Package. The auction generated over $4000. CIF’s goal was to raise $25,000, but they exceeded this goal by raising $32,000. The proceeds from the event will be added to the organization’s Disaster Relief Fund which is used to support industry participants who are impacted by natural disasters. This annual event is a vital part of their efforts to collect donations, and Shaw sees it as a “great opportunity to create awareness and let the industry know how to participate and that CIF exists to help when disaster strikes… we are really creating good momentum moving forward.” On March 12, the Board of Trustees met in Chicago to discuss current disaster needs and fund allocations. In addition, the Trustees established its goals and plans for the next 12 months. CIF is also pleased to announce that two new Trustees were just elected.

Casey Steffen with Saint-Gobain Abrasives and David Henderson with AutaExplore/Autowatch will join the Board and work with the Foundation to carry on its initiatives. CIF was created in 2001 by the National Auto Body Counsel (NABC) as a national non-profit organization to collect and distribute charitable funds. The first campaign they supported was Montana’s Camp Mak-A-Dream, a program dedicated to helping children and teens suffering from cancer, and they collected over $500,000 for this cause in their first years of operation. The funds were used towards building an on-site health care facility for the camp, and in 2005, CIF supported Camp Mak-A-Dream yet again by donating funds to help purchase a bus for the program. Since beginning, CIF has supported a number of campaigns, planning and implementing various projects. They supported a three-year campaign called “Crash Hunger” that focused on raising funds to feed Americans. Another project, in 2008, was “Blanket the City: Detroit,” a fundraising effort to support the city that was

so disproportionately impacted by economic turmoil. In their attempt to help a broad base of organizations providing vital services to the city, CIF made donations to the Children’s Home of Detroit, Clean Downtown Detroit Partnership and Gleaner’s Food Bank. In addition to providing donations to Recycled Rides, CIF partnered with Skills USA and the World Skills Competition to sponsor the US Collision

Team, sending two competitors to the World Skills Competition in Helsinki, Finland. CIF also participates in “Leave Something Behind” initiatives throughout the year; while attending CIC meetings around the nation; this program serves as a gesture of gratitude to the host city. Over the years, this effort has yielded book donations to a Portland library and monetary donations to Children’s Hospitals in Phoenix, AZ, and Washington DC, as well as Toys for Tots in Las Vegas and the Utah Food Bank in Salt Lake City. Though these programs are more than sufficient to illustrate that CIF is “the charitable conscience of the collision repair industry,” when Hurricane Katrina struck LA and MS in 2005, CIF’s Board of Directors created the Disaster Relief Fund to aid victims of natural disasters. Their fundraising efforts allowed them to aid over 100 collision industry professionals impacted by Katrina. This project was so successful that CIF decided to make it an ongoing program and through their efforts, they’ve supported victims of many natural disasters, including Hurricane Irene, the tsunami in Japan and, most recently, Superstorm Sandy which devastated the entire east coast of the US in the fall of 2012. All of these programs support CIF’s mission “to collect funds from all facets of the collision repair industry to be distributed to repair professionals chosen by the Foundation’s selection committee.” CIF’s assistance is limited to individuals and not provided to businesses or organizations. A committee reviews all requests and distributes funds based on individual needs. Those interested in helping are encouraged to make donations, join CIF’s volunteer committee or aid with Victim Location/Assistance. Currently, CIF’s short-term goals include creating awareness about who CIF is, as well as their mission and vision – to bring awareness and emergency relief to collision repair professionals. Their primary focus remains helping those in need.

Dingell first entered Congress to finish his late father’s term and went on to serve nearly six decades. “I’m not going to be carried out feet first,” Dingell, 87, told The Detroit News. “I don’t want people to say I stayed too long.” Dingell said that he will not seek

re-election in November 2014. In his heyday, Dingell wielded power as chairman of the House Energy and Commerce Committee and has shaped major laws for cleaner air and water, protecting endangered species, and providing health care for poor children.

Auto Industry Champion, John Dingell (D), to Retire Michigan Democrat, John Dingell, an ardent advocate of the auto industry who has held his seat in Congress since 1955—longer than any other person in history—said that he will retire from the House of Representatives, a senior House Democratic aide said.

42 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

Further down the road, Shaw hopes CIF will establish a sustainable fund with “enough money in reserve to help those in need and help subsidize the costs not covered by insurance in the event of a natural disaster. In the meantime, we will continue to support vari-

ous campaigns in our efforts to reach out and engage the collision repair industry so they can give something back.” Regarding challenges that CIF faces in order to maintain operations, Shaw mentions the number of those who need assistance, but he feels that the resolution to this dilemma is “to articulate our message and inform contributors how their donations will be used to support the industry.” CIF is run by a Board of Trustees, comprised of 12 leaders from all segments of the industry. This group is still in the planning stages of their 2014 agenda, but Shaw hopes to be able to define this year’s goals by the end of the first quarter. Shaw succinctly wraps up CIF’s mission and goals as follows: “We want the collision repair industry to be aware that there are people in need and to encourage them to get involved and give back. We are trying to create a culture that gives back because the benefits are tremendous for both sides. The message we want to share is this—whether you’re directly involved with CIF or not, it’s very important to get involved with local organizations and to support charities.” Collision Industry Foundation (CIF) PO Box 3007 Mechanicsville, VA 23116 855-4CIFAID (855-424-3243) http://collisionindustryfoundation.org

Dingell also expressed disappointment with Congress. “I find serving in the House to be obnoxious,” he told The Detroit News. “It’s become very hard because of the acrimony and bitterness, both in Congress and in the streets.”

Testimony on Maryland Parts Bill Involved Representatives from WMABA, PCI, LKQ, CAPA and Shops, Some Repairers ‘Cannot Afford to Refuse’ PartsTrader by Chasidy Rae Sisk

The MD House Economic Matters committee, on March 14, voted 16 to 7 for an unfavorable report on HB574. No action has yet been taken on SB487. See cover story this issue. This article provides some background on the testimony pro and con in front of the committee. On February 21, the Washington Metropolitan Auto Body Association (WMABA) testified at the MD House Hearing on Economic Matters in support of House Bill 574 (companion to Senate Bill 487), entitled Motor Vehicle Liability Insurance – Replacement Parts for Damaged Motor Vehicles. See related story on the cover of this issue. During the hour-and-a-half that this bill was discussed in committee, House delegates heard from several panels representing various segments of the collision repair industry. The first panel consisted of Jordan Hendler, Executive Director of WMABA, Mark Schaech of Mark’s Body Shop, and Joe Tucker of JQ Restorations. Hendler began by ex-

pressing her belief that HB574 would provide collision repair shops with the ability to service vehicles with what they deem to be the highest quality parts, stressing the need to trust the collision repair professionals to know what’s best for their customers. “As an industry, collision repairers are the first line of defense and considered the professional when it comes to fixing your car and doing what’s right for you,” she said. Support of this bill is important, Hendler continued, because use of aftermarket parts can impair warranties on newer vehicles, especially those that are less than three years old. Before a collision, a consumer’s warranty is 100% intact, but if their vehicle is repaired with aftermarket parts, the warranty is no longer 100% intact; portions of the warranty will not be valid because OEM parts were replaced with parts not recommended by the factory warranty. Additionally, even when the parts vendor or insurer offers a warranty on aftermarket parts, it is non-transferable should the car be sold to another consumer. “Aftermarket parts, in our in-

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dustry’s perspective, are inferior to genuine parts. We have fit, finish and functionality issues, even just for cosmetic purposes,” Hendler reiterated. Another problem Hendler cited with the use of aftermarket parts is that they aren’t full vehicle crash-tested, and according to IIHS 2010 Chief Research Officer, there is a lot of engineering that goes into making a crash protection system, so changing parts may result in the system being unable to function as intended by the manufacturer. MD code requires shops to inform the consumer when aftermarket parts are used, and most insurers permit customers to opt for using OEM parts instead; however, the customer must pay the difference in price between the parts options. Speaking to claims that HB574 will lead to higher insurance premiums, Hendler pointed out that though RI and WV have a three-year prohibition on aftermarket parts and historically higher rates, IN has a five-year prohibition and MN has a complete prohibition on aftermarket parts, and both of these states enjoy lower premiums than MD. Furthermore, insurers admit that premiums are mostly predicated on the individual driver, their driving record and where the live, in addition to state bodily injury laws. A report by the Property Casualty Insurers Association (PCI) indicates that a complete ban on aftermarket parts would affect premiums by 2.6%, or $24 per year on average. Thus, Hendler concluded, there is no evidence of a correlation between using OEM parts and increased insurance premiums. Schaech provided an example of installing an aftermarket radiator which fails and ruins the vehicle’s engine. The engine will not be covered under the manufacturer’s warranty because the failure was caused by the aftermarket part. Tucker addressed the parts procurement portion of the bill, explaining how DRPs work and comparing insurermandated parts procurement to steering, an activity prohibited by MD law. When asked who is responsible for faulty parts, Schaech noted the shop is liable, and though a shop can ask the consumer to sign a “Hold Harmless” letter if they know they are going against OEM recommendations, he believes it’s not right for shops to be put in this position at all.

While MD law requires shops to disclose use of aftermarket parts, giving the consumer the option of spending more money to repair their vehicle with OEM parts, many DRP shops are rated on how often they use aftermarket parts in their repairs. The next panel called to testify consisted of insurer representatives. Noel Patterson began by arguing that half the cost of insurance premiums is dictated by the cost of coverage; if the cost of repairs increases, so will the price of the premiums. She also believes that the use of aftermarket parts promoted competition in the marketplace while allowing insurers to control costs even as they strive to restore the vehicle to its pre-accident condition. On behalf of USAA and the MD Insurers Alliance trade association, Kimberly Robinson said she opposed HB574 because many insurers offer consumers the choice to pay for OEM parts in their repair, allowing for competition between insurance companies in MD, but this law would shift the cost of parts, increasing insurers’ expenses and translating into higher premiums “despite other states’ experiences.” A representative from Liberty Mutual also objected, arguing that customers can get an extended warranty on aftermarket parts by going to DRP shops. This led to a delegate questioning how the insurers can claim that they are restoring a vehicle to its preloss condition when they’ve already acknowledged that using aftermarket parts may lead to diminished value, to which the insurer replied that their goal is to restore the vehicle to its previous condition, not its pre-accident value. Several representatives from LKQ-Keystone were called to testify next, and Bruce Barriano argued that aftermarket parts are the same as OEM parts essentially; the term “aftermarket” simply means the part was made after the vehicle was manufactured. He insisted that the term is not a connotation of inferior quality as aftermarket parts are built brand new and to specifications. Barriano said that aftermarket parts are only cheaper in price, not in quality or safety, and using these parts benefits consumers by keeping insurance costs down. See Maryland Parts Bill, Page 45

www.autobodynews.com | APRIL 2014 AUTOBODY NEWS 43

Education Foundation Doubled Down on Its Future in 2013 by Chasidy Rae Sisk

The Collision Repair Education Foundation (CREF) is always busy working on ways to improve the prospects of the industry, and the first quarter of 2014 is no exception as they calculate 2013 donations, collect applications for their Student Scholarship and School Makeover programs, and prepare for their 2014

Summer Golf Fundraiser. Brandon Eckenrode, Director of Development for CREF, eagerly shares some information about their recent tallies and future plans. As 2013 drew to a close, donations to CREF for the year totaled $9.4 million, nearly double the amount of donations as they received in 2012. Of those contributions, 10% was received in monetary contributions with the remainder being received via in-kind product donations, such as tools, equipment, supplies, parts and other donations to assist instructors in their collision repair programs. When questioned about the reasons behind this increase in contributions to CREF, Eckenrode states “year after year, we are able to reach more and more industry businesses and help communicate to them about how we are looking to support high school and college collision school programs, instructors and students. Knowing that these students are the future professionals of the industry, our supporters understand how their technical education is vital, and with school instructors working with limited/reduced budgets, the industry has really stepped up to support them through our organization.” The monetary donations received in 2013 will be used to fund CREF’s projects, such as their scholarships for students and school grants, as well as

to keep the organization running. The 2013 tallies help Eckenrode remain optimistic about CREF’s fundraising efforts for 2014: “we anticipate another great year with both monetary and inkind product donations. I would invite and challenge repair facilities, especially the independent owners, to consider an annual tax-deductible donation of $500, $750 or $1000 to the Foundation. Through strength in numbers, if even a quarter of the total number of repair facilities were able to make this donation, we would be able to completely transform collision school programs across the country and work towards the graduating students being properly trained and ready for entry-level work. Owners across the country have expressed their desire for productive, efficient and ‘ready to work’ entry-level staff, and we can make this possible by all working together.” Next up for CREF will be awarding their student scholarships and annual school makeover grants. The deadline for scholarship applications ended in the middle of February, so the applications are now being reviewed by the Board of Trustees Selection Committee, and CREF plans to announce the winners later this spring. The scholarships are available to high school seniors and college-

Brandon Eckenrode (l) of CREF and Mark Algie of 3M

level students who have studied collision repair for at least one semester. CREF has over $200,000 reserved to be awarded as various scholarships

44 APRIL 2014 AUTOBODY NEWS | www.autobodynews.com

and tool grant opportunities for students looking to enter the collision repair industry. The deadline for CREF’s School Makeover Grant falls on June 6th, but Eckenrode encourages applicants to begin the process well ahead of time since a great deal of information is requested. He enumerates, “the Makeover application requires many different pieces of information; however, it provides our Board of Trustees Selection Committee a great overview of the program and the budget that they are working with to provide the best technical education possible for the students. Our Makeover Grant is available to nonprofit high school and college collision school programs, and the grant is meant to help those collision programs who are facing a reduced budget and need additional tools, equipment and supplies for their program.” Since 2008, when the CREF began its philanthropic focus, the collision industry has provided over $20 million in various types of donations, and though CREF anticipates that this number will continue to increase over the years, Eckenrode believes “it’s important for the industry to know that, in addition to the support we are providing to schools, we are also getting actively involved in helping to bridge the gap between graduating and employment. We want to ensure that students graduate with the entry-level skill sets that employers are looking for and make these students aware of the various employment opportunities there are in all segments of the industry. By CREF providing such tools as a donor ‘entry-level employment job board’, we can not only showcase these opportunities to students but also to parents, guidance counselors and school administration to show that these collision programs are worthwhile to support and invest in.” As such, Eckenrode is pleased that CREF will be presenting and exhibiting at the American School (Guidance) Counselor Association’s annual

conference this summer where guidance counselors from around the country will gather. During the conference, CREF plans to explain the “worthwhile career opportunities collision students have within this industry and why guidance counselors shouldn’t think badly about a technical education for students.” This summer, CREF will also be busy with their 13th Annual Summer Golf Fundraiser, to be held the afternoon of July 31st in conjunction with Industry Week in Detroit. The event will take place at the Northville Hills Golf Club outside the city, and CREF anticipates “another sold out crowd with funds being raised going towards assisting us in supporting high school and college collision school programs, students and instructors. The event has gone from raising $19,000 in 2009 to averaging $75,000 the past two years. The Education Foundation has tried raising the quality of the event year after year; however, this increase in funds raised has been made possible by our sponsors and attendees.”

The funds raised at the golfing event will aid CREF in providing student scholarships and School Makeover Grants in the future. In addition to offering a nice afternoon of golfing fun and networking, CREF sees the events as a chance to “communicate to industry leaders about how we are making a different in collision school programs.” Eckenrode encourages anyone interested in participating in the golf fundraiser as a player or sponsor to contact him as soon as possible as the event has historically sold out months in advance. Those who are unable to attend can still participate by purchasing golf balls for CREF’s helicopter

golf ball drop. Up to 1200 numbered balls can be purchased to be dropped onto a course green via helicopter during the event. Whoever purchases the ball that lands in the hole will win 23% of the proceeds from the ball drop, an astounding $7000 gift card if all of the balls are sold! Winners do not have to be present, and this provides yet another creative method for CREF to raise additional funds during the event. Eckenrode is grateful to the collision repair industry for making CREF’s efforts possible: “I would like to thank the collision industry for making over $20 million in donations possible in such a short period of time. I am not aware of any other technical trade having a ‘Foundation’ type organization that supports their programs like ours does. Collision school programs are becoming the envy of other school programs as they see what type of support the schools are receiving through us, and we look forward to working together to take this organization to another level.”

www.collisioneducationfoundation.org 847-463-5244

Continued from Page 43

Maryland Parts Bill

In contrast, HB574 creates a threeyear monopoly which is anti-competitive, allows OEMs to charge whatever they want for these parts, and will clearly lead to increasing rates—“this bill is not without financial implications,” Barriano insisted. Additionally, consumers receive a warranty on the life of LKQ aftermarket parts, plus the shop that repairs the vehicle receives indemnification from LKQ who will defend the collision repair facility if a lawsuit is filed. Two General Managers of LKQKeystone facilities in MD, Jim Lohan and Marcel Hoover, spoke about how the businesses they run contribute to the state’s economy, and they claimed that many customers call them seeking an alternative to high-priced OEM parts. Jack Gillis, Executive Director of CAPA and on behalf of the Center for Auto Safety, opposes the bill because it limits consumer choice, protects an unfair monopoly, restricts competition, and will increase crash repair costs for MD consumers.

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In addition to arguing that competition lowers prices, Gillis points out that using OEM parts doesn’t necessarily mean restoring the vehicle to its pre-loss condition, and because OEM parts are frequently recalled, he doesn’t think they should be the only option. Arguing that “there’s nothing wrong with generic products,” he asked why aftermarket parts aren’t banned altogether if they’re substandard and suggests a middle-ground option of requiring aftermarket parts to be functionally equivalent to OEM parts. The final portion of testimony began with Laura Marta Harding of State Farm who focused on the parts procurement portion of HB574, noting that PartsTrader has only been in effect in MD for two weeks. She argued that the collision repair shops control the inputs in PartsTrader, specifying the type of parts they use, and indicated that shops who object to interference in this business are welcome to opt out of State Farm’s Select Service Program. Testifying on behalf of the opposition was Laura Gay, owner of Fort Washington Auto Body and Sullivan’s Auto Body. Gay discussed the de-

crease in the collision repair business due to advancing technology, admitting she cannot afford to refuse PartsTrader because she needs the business generated by being on State Farm’s DRP. Lawrence Christiansen of Nationwide estimated that HB574 would increase Nationwide’s premiums by $12 million over the next six months, and as this insurer only writes around 10% of MD’s insurance, the bill would seriously impact MD’s economy. Oyango Snell, Counsel for PCI, concluded the testimony by pointing out that the bill’s advocates haven’t provided proof of consumer complaints, thus aftermarket parts usage poses no threat to the consumer in his opinion. Aftermarket parts only represent 10% of the parts market, so he feels the goal of HB574 seems to be creating even more of a monopoly. He finishes his testimony with the double-edged reminder that “insurance companies don’t sell parts.” If you’re interested in viewing the hearing, you can access it from the link on the www.autobodynews.com website. Search for the online story with the same title as this article.

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worse shape than when they dropped them off for repairs. Karol said that he has filed an insurance claim and is repairing the cars that were damaged.

those of the band Kiss did an estimated $40,000 worth of damage to about two dozen vehicles parked the publisher@autobodynews.com utobodynews.com Maaco Auto Body Shop in Saddle Brook, NJ. 918 RSR The group can be seen on surveillance video jumping on hoods, sprayPromote your businessingwith your business with graffiti, andPromote smashing in windows. These Select Dealers Have The Parts You Need. article an exclusive article featuring Police said thatantheexclusive suspects appear to featuring be men in their teens or early 20s. your products orAservices. your products or services. To advertise surveillance camera sitting above a y call Joe MomberFat: LORIDA Mercedes caught the men as they set to ry work, destroying it using metal pipes, So far, there is no motive in the 800-699-8251 shovels, spray paint, and a fire extincase and police are asking for help in e-mail: Brumos Porsche guisher. The MercedesCall is now in police identifying the masked men, hoping CALL: Joe Momber for details! for details! jmomber@autobodynews.com 51 Jacksonville custody as they process it for prints. to make this performance their last. www.autobodynews.com 800-699-8251 Shop owner, Walter 800-699-8251 Call the Saddle Brook Police DetecKarol, said 800-726-9155 tive Bureau at 1-201-587-2940 with that he had to tell many of his cusn. 904-725-0358 Fax any information. tomers that their vehicles were now in

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Michigan’s HB 5339 Seeks to Address Steering, Non-OEM Parts, and Parts Procurement Michigan House Bill 5339, introduced on February 19, seeks to amend the Michigan Insurance Code of 1956 to restrict insurance companies from numerous actions that irk collision repair facility operators. The broadly worded bill has not yet been scheduled for hearings. The bill, as sponsored by Representatives Dale W. Zorn ,Greg MacMaster, Anthony G. Forlini, Peter Pettalia, Michael D. McCready, would ban insurance companies from compelling the use of specific collision repair or claim centers, restrict non-OEM parts usage, and prohibit an insurer from specifying specific vendors for parts or other materials. Specifically the bill would prohibit insurance personnel from the following: ● Compel or coerce the insured or claimant to choose a particular repair facility, claim center, or other similar facility regardless of whether the repair facility, claim center, or other similar facility is under the insurer's direct control. This subdivision would not prohibit an insurer from requesting the in-

sured or claimant to take the a particular repair facility, claim center, or other similar facility after informing the insured or claimant that the insured or claimant is not under an obligation to do so. ● Must not fail to inform the insured or claimant that the insured or claimant has the freedom to use a repair facility of the insured's or claimant's choosing, or fail to inform the insured or claimant of the insurer's ownership interest in, or agreement with, a repair facility, claim center, or other similar facility Communicate the need to delay the commencement of repair to allow the insurer to inspect the automobile for more than 1 full business day from when the insured or claimant presented the claim or automobile for loss adjustment or inspection. Dispute coverage of the loss without performing a physical inspection of the automobile. Specify a non-original equipment manufacturer aftermarket crash part to replace a structural component of an automobile, including, but not limited to, a bumper reinforcement, radiator or core support, or any other part that affects the structural integrity or airbag

timing of the automobile. Specify a non-original equipment manufacturer aftermarket crash part in the repair of the damaged automobile if the part is not certified by a national testing board to guarantee quality, fit, and crashability. Specify the use of a particular vendor to procure a part or other material necessary for the satisfactory repair of the automobile. This subdivision does not require an insurer to pay more than a reasonable market price for parts. Unilaterally or arbitrarily disregard a repair operation or cost identified by an estimating system that the insurer and repair facility have agreed to use in determining the cost of repair. Place a limit on the maximum cost of paint or other materials required to repair the damaged automobile. This subdivision does not require an insurer to pay more than a reasonable market price for paint and materials. Disregard a repair facility's posted labor rate without proof of the range of posted door rates available to the public in the market. The bill also would provide an insured, claimant, repair facility owner,

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potential repair facility owner, or person aggrieved by this act the ability to bring a civil action against an insurer for a violation of this section. A plaintiff who prevails could receive Damages in the amount of 3 times the actual loss or $500.00, whichever is greater as well as attorney fees and costs. Ray Fisher, executive director of the Automotive Service Association (ASA) of Michigan, explained “ASA Michigan did not author or introduce this bill but we are glad that Representative Zorn along with the other co-authors, has taken a key role in trying to resolve some of the issues that have plagued our collision shops here in Michigan. I have passed this on to our leadership for their review and we are looking forward to working with Representative Zorn as this moves forward. Obviously he is trying to cure many of the burdens that our collision repairers have faced for quite some time.” “In conversation, we understand that currently no hearings have been scheduled as yet but ASA Michigan will encourage these issues to be discussed in the committee as soon as possible,” concluded Fisher.

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