Southeastern April 2016 Issue by Autobody News

Southeastern Edition Florida Georgia Alabama Mississippi

Virginia Tennessee North Carolina South Carolina

YEARS

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Alleged ‘Price Fixing’ by State Farm and Progressive Prompt New Filings in MDL by Stacey Phillips, Assistant Editor

In light of new evidence in the multidistrict lawsuit, on March 2 Eaves Law Firm filed a motion to reconsider the dismissal of the Mississippi antitrust complaint by Judge Gregory Presnell. Allison Fry of Eaves Law Firm pointed out that at the time the amended complaint was filed a year ago, they did not have access to the information they do now. This includes two statements, one from a State Farm representative and one from a Progressive representative where Fry said they admit to price fixing.

VOL. 7 ISSUE 2 APRIL 2016

“We have direct admissions of price fixing and other illegal acts,” said Fry, the litigation director and designated plaintiffs’ liaison counsel at Eaves Law Firm. On February 22 of this year, the trial court issued an order dismissing the plaintiffs’ claims for price fixing and boycotting under the Sherman Antitrust Act with prejudice, which means they cannot be refiled. Fry explained there are very limited grounds in which a court can reconsider an order. These include (1) an intervening change in controlling See Alleged ‘Price Fixing’, Page 24

VA Photo-Appraisal Bill Passes with WMABA’s Input and Suggested Amendments, Update on PA Bill

See VA Photo Bill, Page 17

P.O. BOX 1516, CARLSBAD, CA 92018

In January, VA Senate Bill 193 was presented to allow photos of collision damage to be used during the appraisal process, creating a stir among industry advocates who feared its passage could pose potential risks to consumers and collision repair professionals in VA. The Washington Metropolitan Auto Body Association (WMABA) quickly went to work to negotiate a compromise, and according to WMABA’s Executive Director Jordan Hendler, “The bill passed with our suggested amendments which was great.” The original wording in VA Sen-

ate Bill 193 did not seek to remove the requirement for vehicle appraisals to be based on physical inspections, but it would have permitted an initial appraisal based on photos to be used as the final appraisal. This provision caused Hendler and others to fear that consumers would cash out a claim without a physical inspection which could reduce the value of their vehicles since over 90% of VA estimates require a supplement. Because WMABA also saw potential benefits for consumers and shop owners from the proposed legislation, Hendler focused on refining the lan-

Change Service Requested

by Chasidy Rae Sisk

See SAR Conference, Page 10

NC Budget: More Sales Taxes in 2016, Income Tax Cuts in 2017 When the new North Carolina state budget was signed into law in September 2015, Colin Campbell wrote the following article for newsobserver.com, explaining the changes that would ensue on March 1, 2016: The new state budget signed into law September 18, 2015 includes about $400 million in income tax cuts, which will be offset by new sales taxes on repair, installation and maintenance services. Whether this year’s budget will save you money or tax you more depends on how much you make, and how much money you spend on the newly taxable services. The income tax cuts are relatively modest for low-income taxpayers: About $50 or less for households with less than $30,000 a year in income. But

because those families owe about $500 or less in state taxes, the cut amounts to about 10 percent of their tax burden, according to projections from the legislature’s nonpartisan research staff. Taxpayers receiving a $50 cut won’t benefit from the lower rate if they spend more than $750 on repair, maintenance or installation fees during that calendar year. The 6.75 percent sales tax rate in many counties will increase the cost of a $750 repair to $800. “I’m just a little concerned about expanding the sales tax, especially down in rural areas,” said Rep. Ken Waddell, a Columbus County Democrat who voted for the budget despite his concerns. “It’s going to cause a lot of heartburn when they don’t have a lot of money to spend in the first place.” See More Sales Taxes, Page 30

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Contents

COLUMNISTS Attanasio - CAA Takes on the Capitol at Legislative Day on April 12th . . . . . . . . 26 Luehr - How to Hold People Accountable . 40 Phillips - NY Body Shop Owner’s Weekly Radio Show Aims to Educate and Entertain Customers . . . . . . . . . . . . . . 42 Sisk - Why WIN? Webinar Explains Why Everyone Should Be a WINner . . . . . . . 38 Wickert - A Primer on Diminution in Value Claims . . . . . . . . . . . . . . . . . . . . 48 Yoswick - Mike Anderson in 1996, Incomplete Estimates, Feather Prime and Block, PartsTrader . . . . . . . . 44 NATIONAL 2016 Digital Collision Repair Trends Report. . . . . . . . . . . . . . . . . . . . . . . . . 25 2016 Second Quarter Training Schedule Announced by The Martin Senour Company. . . . . . . . . . . . . . . . . . . . . . . 51

cance of this new survey and new pricing data cannot be overstated,” said Eric McKenzie, director of body shop operations for Park Place Dealerships, which includes Park Place Bodywerks in Dallas, TX. “This is a real breakthrough for the industry, helping us all understand market prices nationwide for repairing highline vehicles. Intuitively, shops know they cannot charge standard door rates for repairing these luxury brands, given the tremendous investment required to achieve those manufacturer certifications. Yet, it is not really clear what the market price is either, so this new VRS survey will shine light on that topic, to everyone’s benefit.” Any collision repair owner or general manager may request a free, noobligation demonstration of the VRS by contacting Sam Valenzuela, president, National AutoBody Rese-arch, 913-2266550, Sam@NationalAutoBodyResearch .com. You can also visit www.National AutoBodyResearch.com for more information.

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

Serving Florida, Georgia, Alabama, Mississippi, Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2016 Adamantine Media LLC.

Abaris Training Resources, Inc. . . . 26 Audi Wholesale Parts Dealers . . . . 52 Axalta Coating Services . . . . . . . . . . 2 BMW Wholesale Parts Dealers . . . . 50 Car-Part.com . . . . . . . . . . . . . . . . . . 20 CarcoonAmerica Airflow Systems . 39 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 37 Chief Automotive. . . . . . . . . . . . . . . . 5 Classifieds. . . . . . . . . . . . . . . . . . . . 54 Coggin Deland Honda . . . . . . . . . . 40 Dent Magic Tools . . . . . . . . . . . . . . . 6 Dominion Sure Seal, Ltd. . . . . . . . . 17 Eco Repair Systems of North America, LLC. . . . . . . . . . . . . . . . 30 Equalizer Industries, Inc . . . . . . . . . 38 Everett Chevrolet-Buick-GMCadillac . . . . . . . . . . . . . . . . . . . 25 FBS Distribution Co., Inc. . . . . . . . . 31 Ford Wholesale Parts Dealers . . . . 51 Fortune International Realty . . . . . . 10 GM Wholesale Parts Dealers . . . . . 49 Gus Machado Ford . . . . . . . . . . . . . 46 Hendrick Automotive Group . . . . . . 56 Hendrick BMW/MINI . . . . . . . . . . . . 35 Hendrick Dodge . . . . . . . . . . . . . . . 16 Herkules Equipment Corporation. . 22 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 27, 28-29 Hyundai Wholesale Parts Dealers. . 53 Jon Hall Chevrolet . . . . . . . . . . . . . 42 Kernersville Chrysler-DodgeJeep-Ram . . . . . . . . . . . . . . . . . . 23

Kia Motors Wholesale Parts Dealers. 45 Kool Tools - SEMA 2015 Product Review . . . . . . . . . . . . . . . . . . 14-15 Larson Electronics, LLC.. . . . . . . . . 19 Lexus Wholesale Parts Dealers . . . 55 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 47 MINI Wholesale Parts Dealers . . . . 50 Miracle System/Equipment Gateway, Inc . . . . . . . . . . . . . . . . 13 MOPAR Wholesale Parts Dealers . . 33 Nissan of Richmond . . . . . . . . . . . . 32 O’Brien Hyundai-Subaru-Mazda . . 43 Orio . . . . . . . . . . . . . . . . . . . . . . . . . 12 Polyvance . . . . . . . . . . . . . . . . . . . . 18 Porsche Wholesale Parts Dealers . 48 Radley Chevrolet. . . . . . . . . . . . . . . 46 Rick Hendrick Chevrolet Naples. . . 36 Rick Hendrick Dodge-ChryslerJeep-Ram. . . . . . . . . . . . . . . . . . . . 8 Riverside Ford-Lincoln . . . . . . . . . . 42 SATA Spray Equipment . . . . . . . . . 11 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . 20, 21 Southside Kia . . . . . . . . . . . . . . . . . . 9 Stateline Chrysler-Jeep-Dodge-Ram. 24 Subaru of Gwinnett . . . . . . . . . . . . . 34 Subaru Wholesale Parts Dealers . . 41 Tameron Hyundai . . . . . . . . . . . . . . 44 Valspar Automotive . . . . . . . . . . . . . . 7 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 53 Wesch Tools . . . . . . . . . . . . . . . . . . . 6

Southeast

3M and Festool Announce Collaboration to Serve Collision Repair Industry . . . . . . 55 ABA Connecticut Releases “Now What?” App for Consumers . . . . . . . . . . . . . . . 25 AkzoNobel Reveals 2016 Distributor Council . . . . . . . . . . . . . . . . . . . . . . . . 50 Audatex: Seam Sealer is a Body Operation . 21 Auto Glass Academy Training Begins in April. . . . . . . . . . . . . . . . . . . . . . . . . 55 Axalta's Custom Finishes Calendar Competition . . . . . . . . . . . . . . . . . . . . . 53 BASF Names N. America Distribution Director . . . . . . . . . . . . . . . . . . . . . . . 55 Best Practices Shared After CARSTAR Merger . . . . . . . . . . . . . . . . . . . . . . . . 19 BMW Ramping Up in Autonomous Vehicle Space . . . . . . . . . . . . . . . . . . . 53 B-Tec Systems Releases The Infrared Handbook . . . . . . . . . . . . . . . . . . . . . . 21 Car-Part Announces World Tour Training 2016 . . . . . . . . . . . . . . . . . . . . 6 CREF and Akzonobel Sustainability Grant . 46 Google’s Self-Driving Car Hits Bus: No Injuries, Team Expands, Google to Testify Before Congress . . . . . . . . . . . . . 4 IABA February Meetings Address Changes to FLSA . . . . . . . . . . . . . . . . . 47 Larson Electronics Releases Two New Products . . . . . . . . . . . . . . . . . . . . . . . 52 Looking Outside of Industry for New Ideas Prompted Maaco Partnership With Pep Boys. . . . . . . . . . . . . . . . . . . . . . . 19 Mirka USA Introduces Aquastar® Abrasive . 52 NABR Launches New VRS Labor Rate Survey for Luxury Brands and Special Vehicles. . . . . . . . . . . . . . . . . . . 3 NACE | CARS 2016 Registration is now OPEN . . . . . . . . . . . . . . . . . . . . . . 32 Nviro-Tech Launches Paint Facts Displays . 52 PDA Extends Expertise to Financial Services Sector . . . . . . . . . . . . . . . . . . 16 Portacool Introduces New Jetstream™ Coolers . . . . . . . . . . . . . . . . . . . . . . . . 52 Recent Poll Finds Tie Between Car Driven and Presidential Candidate Supported . 50 Rotary Lift Introduces Video Series . . . . . 47 SEMA and Auto Care Association Partner on Industry Job Board . . . . . . . . . . . . . 36 Service King Launches Revitalized Website . . . . . . . . . . . . . . . . . . . . . . . . 17 Sherwin-Williams Automotive Finishes 2016 Second Quarter Training Schedule . . . . 51 The Body Shop of the Future . . . . . . . . . . 34 Tsunami Compressed Air Solutions Launches The Rove . . . . . . . . . . . . . . . 52 WIN Announces 2016 Educational Conference Content and Celebration of 10th Anniversary . . . . . . . . . . . . . . . 39 Women’s Industry Network Announces 2016 Most Influential Woman in Collision Repair Award . . . . . . . . . . . . . . . . . . . . 13

National AutoBody Research (NABR) announced in March the launch of the new VRS Labor Rate Survey for Luxury Brands and Special Vehicles. Intended for collision repairers who work on highline vehicles and have luxury brand manufacturer certifications, the online survey is free and is accessible on the NABR website. Through the survey and its VRS technology, NABR measures and reports the market-based labor prices collision repairers charge for working on luxury brand vehicles, such as Audi, Bentley, Mercedes, or Tesla, for example, as well as special vehicles such as the new Ford F-150 or Nissan GT-R. “This new survey fills a large gap in collision repair pricing information and enables a new level of pricing sophistication for repairers,” said Sam Valenzuela, president of NABR. “Previously, there was no easy way for a repairer to know what competitive market labor rates were for working on luxury and special vehicles, or to know whether their price was above or below market.” “The signifi-

Indexof Advertisers

REGIONAL Alleged Admissions of ‘Price Fixing’ by State Farm and Progressive Employees Prompt New Filings in Multi-District Lawsuit. . . . 1 Auto Body Parts Association Convention in Miami April 26-29 . . . . . . . . . . . . . . . 8 CARSTAR Auto Body Repair Expands MSO Network in VA . . . . . . . . . . . . . . . . 6 Fayetteville Tech Holds “Draft (Hiring) Days” for Upcoming Graduates of the First Class – 2016 . . . . . . . . . . . . . . . . . . . . . . . . 13 Gerber Collision & Glass Opens Repair Location in FL . . . . . . . . . . . . . . . . . . . 10 LKQ Hosts Charity Bike Build at 3-Day Summit . . . . . . . . . . . . . . . . . . . . . . . . 32 Mercedes-Benz USA Reveals Plans for New HQ in GA . . . . . . . . . . . . . . . . . 9 NC Budget: More Sales Taxes in 2016, Income Tax Cuts in 2017 . . . . . . . . . . . . 1 Pro Spot Display at 2016 I-CAR Volunteer & Instructor Conference. . . . . . . . . . . . 10 SARC 2016 to Feature Industry Favorites Mike Anderson, Aaron Schulenburg and More! . . . . . . . . . . . . . . . . . . . . . . 10 Service King Opens Sixth Atlanta Repair Center . . . . . . . . . . . . . . . . . . . . 9 Sherwin-Williams Covers 2016 Daytona 500 Winner Denny Hamlin . . . . . . . . . . 16 Sisk - AAAS Expands Capitol Days to Include Alabama in 2016 . . . . . . . . . . . 20 TCAT 2015 Fall Semester Announcements Include 100% Electric Car on Campus and Tool Grant Awarded to Student . . . 12 Turtles, Dolphins, Gators, Oh My! FL Shop Steps Up to Help Non-Profits. . . . 22 VA Photo-Appraisal Bill Passes with WMABA’s Input and Suggested Amendments . . . . . . . . . . . . . . . . . . . . . 1 Williamson Schools To Offer Summer Auto Repair Program . . . . . . . . . . . . . . . 9

NABR Launches New VRS Labor Rate Survey for Luxury Brands and Special Vehicles

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

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Google’s Self-Driving Car Hits Bus: No Injuries, Team Expands, Google to Testify Before Congress

One of Google’s self-driving cars has collided with a public bus in Mountain View, CA, an accident report has revealed, in what appears to be the first instance of one of the company’s prototype cars causing an accident. The collision between the self-driving vehicle and a city bus was apparently caused by a software error on the part of the vehicle. The car pulled into the bus’ lane assuming that the bus was going to yield, but it didn’t. The collision happened on Feb. 14. Footage recorded by cameras on the bus shows a Lexus SUV, which Google has outfitted with sensors and cameras that let it drive itself, edging into the path of the bus that was rolling by at about 15 mph. Though it was a low-speed collision, the impact crumpled the Lexus’ front left side, flattened the tire and tore off the radar Google installed to help the SUV perceive its surroundings. The Lexus had to be towed. Neither the Google employee in the driver’s seat—who must be there under California law to take the wheel in an emergency—nor the 16 people on the bus were injured. The transit agency has concluded based on the footage that the bus driver was not responsible, spokeswoman Stacey Hendler Ross said. An independent claims adjustor has not yet determined liability, she said. El Camino Real is a busy six-lane boulevard with hundreds of intersections. The car was following a recent change to its programming, following “the spirit of the road” as well as the traffic code by hugging the far side of the right-turn lane to allow other cars to pass on the left. Images from the bus show two small, black sandbags on either side of a drain at the curb. The right lane was wide enough to let some cars turn and others go straight, but to avoid driving over the sandbags, the Lexus needed to slide to its left within the lane. The bus and several other cars that drove straight were to the left of the Lexus, in the same lane. When the light turned green, several cars ahead of the bus passed the SUV. Google has said that both the car’s software and the person in the driver’s seat thought the bus would let the Lexus into the flow of traffic. The Google employee did not try to intervene before the crash. “This is a classic example of the negotiation that’s a normal part of driving—we’re all trying to predict each other’s movements. In this case, we clearly bear some responsibility, because if our car hadn’t moved there wouldn’t have been a collision,” Google wrote of the incident, adding,

“That said, our test driver believed the bus was going to slow or stop to allow us to merge into the traffic, and that there would be sufficient space to do that.” The software that controls the cars is programmed to follow all traffic laws and to drive conservatively, the company said. The law-abiding algorithms that rule the SUV’s onboard computer make its decision to try and slip in front of the bus surprising. Footage from a forward-facing camera on the bus shows there was not much more than a full car length between the bus and the GMC Yukon in front of it. Google said it has tweaked its software to “more deeply understand that buses and other large vehicles are less likely to yield to us than other types of vehicles.” The DMV said that manufacturers of autonomous vehicles must report crashes, but “the DMV is not responsible for determining fault.” A spokesman for the U.S. National Highway Traffic Safety Administration declined to comment. The company also said it has reviewed this incident “and thousands of variations on it in our simulator in detail and made refinements to our software. From now on, our cars will more deeply understand that buses (and other large vehicles) are less likely to yield to us than other types of vehicles, and we hope to handle situations like this more gracefully in the future.” The Feb. 14 crash is the first in which Google has acknowledged its car made a mistake that led to a collision. The company has reported that between September 2014 and November, its prototypes drove themselves about 400,000 miles on city streets near its Silicon Valley headquarters without causing a collision. Its fleet has likely driven an additional 100,000 miles since then, though the company won’t be specific. According to Google’s accounting, its cars have been hit nearly a dozen times on the streets in or around its Mountain View headquarters since road testing began in spring 2014.

Google Expands Self-Driver Team Google’s self-driving car team is expanding and hiring more people with automotive industry expertise, underscoring the company’s determination to move the division past the experimental stage. The operation now employs at least 170 workers, according to a Reuters review of online profiles. Google has advertised nearly 40 new positions on the team, and many are related to manufacturing. The team

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Bus Fails to Yield.

currently has six people with such experience, including purchasing, supplier development and supply chain management. Google has said previously that it intends to ready the technology for a marketable self-driving car by 2020, but it may never manufacture vehicles itself. Analysts say self-driving technology has several profit channels including licensing mapping database and vehicle control software, as well as an integrated package of software, sensors and actuators that would form the backbone of a self-driving vehicle. Google to Testify Before Congress The director of the Google X self-driving car project, Chris Urmson, and other auto industry executives will testify before Congress the week of March 13 on efforts to develop safe and effective autonomous cars. Senator John Thune, who chairs the Senate Commerce Committee, said that Chris Urmson would appear on March 15. Urmson will testify alongside executives from General Motors Co (Mike Abelson), Delphi Automotive PLC and Joseph Okpaku, VP of privately held ride-hailing service Lyft

Inc., to talk about “advancements in autonomous vehicle technology and its anticipated benefits for Americans,” the committee said. The director of Duke U’s Humans and Automony Lab, Mary Louise Cummings, will also testify.

The committee wants witnesses’ views “on the appropriate role of government in promoting innovation including removing unnecessary hurdles, and their strategy to grow consumer adoption of this new technology.” Major automakers and technology companies are racing to develop and sell vehicles that can drive themselves, but they have complained that state and federal safety rules are impeding testing and ultimate deployment of such vehicles. In January, NHTSA said it may waive some vehicle safety rules to allow more driverless cars to operate on U.S. roads as part of a broader effort to speed up development of self-driving vehicles. Safety regulators will write guidelines for self-driving cars within six months, Transporation Secretary Anthony Foxx said in January.

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 5

CARSTAR Auto Body Repair Expands MSO Network in VA

CARSTAR Auto Body Repair Experts announced on March 7 that CARSTAR Cascades Auto Body, Inc. has joined the MSO network. CARSTAR Cascades Auto Body, Inc. is located at 45660 Woodland Rd., in Sterling, VA. It is owned by

(l to r) Al Fortin, owner, and Craig Schiffbauer, general manager

Albert Fortin, and has been serving the Sterling, VA, community for more than 20 years. Fortin personally has more than 35 years of experience in the collision repair business. “Although there are many things that go into building a successful business, especially in this highly competitive industry, the most important aspect is surrounding yourself with good people,” said Fortin. “The same

thing applies when making a decision to align your company with a large MSO such as CARSTAR. From their store owners to sales staff all the way up to their upper management, they have all been highly motivated, good people who bring great knowledge and resources to our business.” CARSTAR Cascades Auto Body, Inc., which generates more than $6 million in sales annually, is housed in a 26,000-square-foot facility, which is outfitted with top-of-the-line tools, frame machines and equipment, heated downdraft paint booth and CCC ONE estimating system. In addition to collision repair, they also offer towing, professional detailing, free shuttle for pickup and delivery, and Enterprise rental cars. All technicians are I-CAR certified. “We’re excited to welcome an experienced owner like Al Fortin to the CARSTAR family,” said Michael Macaluso, president, CARSTAR North America. “As a leader in this industry for several decades, he is a tremendous addition to our network of top collision repair experts around the country.”

Car-Part Announces World Tour Training 2016

After seven years of conferences, Car-Part is offering a new twist on training. The Car-Part World Tour is bringing training classes to cities throughout North America in 2016. On March 12, the training program made its way from Canada to the U.S. Janice Schroder, vice president of marketing, said, “Recyclers have asked us to bring our training closer to them, and we are happy to accommodate their requests.” Training is interactive and hands-on at a computer, and facilitated by Car-Part product experts. Topics included Car-Part Pro, CarPart mobile apps, Images, Core Pricing and sales, CrashLink, Bidmate for buying, Checkmate Sales Pro Boot Camp, Partmate for inventory and assemblies, Car-Part Interchange Plus, Brokering, eBay through Checkmate, Reports, and more. The Car-Part World Tour kicked off in Burnaby, British Columbia, on February 19-20, in cooperation with the Automotive Retailers Association (ARA-BC) at their facility. Next scheduled was Raleigh, North Carolina, on March 12, following the Carolina Auto Recyclers Training and Conference.

This fall in Baltimore, Maryland, Car-Part will provide four hours of training during the Automotive Recyclers Association Annual Convention on Saturday, October 29. Even more stops will be added to the schedule in the coming weeks. Mike Swift, president of the Automotive Recyclers Association, said, “Recyclers need to get back to the basics. They already spent money on their management systems, now they need to invest in knowledge and training to increase their return on investment.” If your association (or you as an individual recycler) would like training in your area, contact CarPart to discuss coordinating a CarPart World Tour stop. For more information and to register for a Car-Part World Tour stop near you, visit www.Products .Car-Part.com/worldtour or call 859344-1925.

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Auto Body Parts Association Convention in Miami April 26-29 and is being moderated by Jim Smith. Gain excellent insight into the complex dynamics between insurance companies, collision repair shops, parts manufacturers and parts distributors, as well as an understanding of what it takes to become a trusted supplier.

Events ● Golf Outing ● Fishing Tour (dependent on attendance) ● Welcome Dinner ● Harbor Dinner Cruise ● Two Days of Industry Updates and Discussion

Legislative and Regulatory Update Robert Passmore, CPCU, assistant vice president, Personal Lines Policy, Property Casualty Insurers Association of America, addresses legislative and regulatory issues related to insurance and collision repair, with an emphasis on parts Robert Passmore issues. He will also cover the broader topic of collision repair insurance issues and how they affect the replacement parts market.

Thursday, April 28 Servicing the Insurance Driven Market This panel discussion features participants from Nationwide, Farmers, NSF, Caliber Collision, and Service King,

CAPA Parts Certification Update Jack Gillis of CAPA provides the latest trends and numbers from CAPA’s

The 2016 ABPA Annual Meeting & Convention is fast approaching. Preparations are being made at the Miami Hyatt Regency Hotel to welcome industry leaders from April 26-29.

Speakers & Presentations

ABPA Lawsuit Update Dan Morrissey shares on the current status and latest movement in the ongoing lawsuit against Ford Motor Co.

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parts certification program.

Thursday Breakout Sessions Always a favorite among convention attendees, some of the sharpest minds in the aftermarket industry provide information and ideas on important issues and activities. ● Carpart.com – Jeff Schroeder ● CCC – Dave Boden ● NSF – Bob Frayer ● Aktion Associates – David Gneiser ● Partstrader – Ken Weiss ● Google Analytics – Khrysti Nazzaro, vice president, Brand Strategy, Inc. Friday, April 29 NSF Update Bob Frayer of NSF provides the latest news on the NSF Parts Certification program as well as the NSF Distributor Certification program.

Legislative Report – PARTS Act Will Nordwind of Venable and representing the Quality Parts Coalition (QPC) delivers the latest news on the progress of the PARTS Act that is moving forward in Congress. Dynamic Pricing Defense David Bauders of Strategic Pricing As-

sociates, Inc. presents ideas on countering the threat of dynamic pricing. A recognized leader in the field of strategic pricing, Bauders has worked with companies across a variety of industries to help them develop competitive pricing strategies. This presentation is of particular importance for parts distributors who David Bauders are seeking ways to combat GM’s “MyPriceLink” dynamic pricing program.

Hotel Package ABPA has arranged a hotel package with the Miami Hyatt Regency that includes a room rate of $159 per night, with the convenience of staying at the convention site. More details and online registration for the event can be found by visiting the ABPA’s newsletter Body Language: http://www.abpabody language.com/.

Service King Opens Sixth Atlanta Repair Center

Mercedes-Benz USA Reveals Plans for New HQ in GA

The 25,000-square-foot collision repair center is located at 2915 Lawrenceville Highway in Tucker, which is in northeast Atlanta, GA. “This is another important step in building upon our promise to provide the Atlanta market with superior collision repair service,” said Scott Ward, Service King regional vice president for the southeast U.S. “Service King’s growth and reputation in the market led to the need for a sixth location and we couldn’t be more confident and excited about joining the Tucker community.”

Rendering of planned Mercedes-Benz headquarters in metro Atlanta

Service King Collision Repair Centers® announced the official opening of its sixth location in the Atlanta market in March. This is the sixth repair center Service King has opened in Atlanta in the last 24 months.

Mercedes-Benz USA (MBUSA) has unveiled the first rendering of its new Atlanta headquarters in Sandy Springs in GA. The company plans to break ground in the spring of 2016, with a target completion date of early 2018.

MBUSA, which moved to a temporary facility in July 2015, will construct a new, state-of-the-art headquarters facility on a greenfield site located at the corner of Abernathy and Barfield road, near the intersection of Georgia 400 and Interstate 285. The 225,000 sq. ft. headquarters will be located on a 12-acre campus at the south side of the 76-acre property, formerly owned by Glenridge Hall. The company said the four-story building will contain innovative architectural elements designed to provide a performance-oriented and collaborative environment.

Williamson Schools To Offer Summer Auto Repair Program

Franklin High School will host a new automotive repair program this summer. The Student Technician Automotive Repair Training, or START, is open to all high school students in Williamson County Schools. Students will earn up to two high school credits/hours toward their Inter-Industry Conference on Auto Collision Repair (I-CAR) certification and possible graduation requirements. The program has two sessions. Students may enroll in both sessions concurrently and earn two credits. Incoming freshmen are limited to one session/credit. The classes are free, but students are required to purchase their I-CAR online course materials for $50. Interested students should complete an application and submit it to their school counselor by May 6. Counselors will submit all applications to the Franklin High administration. Students will be notified by May 13 if they are accepted. Last year, Franklin High teamed up with Service King to offer auto collision repair as a career and technology program.

“Service King has entered into this partnership with us with the sole purpose of training potential workers who they could hire and put to work,” said Dave Allen, WCS executive director of career and technical education. “Students really have a challenging time finding a place in their schedule to take a course like this. This is an opportunity to take a look at this program and see if this will interest them long term,” Allen said. Contact Dave Allen with questions. Reach Melanie Balakit at 615926-1638 and on Twitter @Melanie Balakit.

Auto repair sessions Session one Dates: May 31-July 22 Time: 7:30-11:30 a.m. Monday through Thursday. An optional open lab is open 7:30-11:30 a.m. Fridays.

Session two Dates: May 31-July 22 Time: 12-4 p.m. Monday through Thursday. An optional open lab is open 12-4 p.m. Fridays.

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SARC 2016 to Feature Industry Favorites Mike Anderson, Aaron Schulenburg and More! The 2016 Southern Automotive Repair Conference (SARC) will be held on Friday, April 8 and Saturday, April 9 at the Beau Rivage Resort and Casino in Biloxi, MS. Thanks to the collaborative efforts of seven industry associations, all

ing with industry members and leaders. Registration for SARC 2016 begins at noon on Friday with an opening session from Mike Anderson at 2pm. The exhibition floor will be open from 2pm to 9pm. Friday afternoon’s classes will be taught by David Luehr

speakers at this year’s conference will present on the main stage, so no one misses anything from their impressive lineup of industry favorites. Speakers at SARC 2016 include Mike Anderson of Collision Advice, Aaron Schulenburg from SCRS and Clifton Lambreth of Daniel Bradley Matthews Inc. Attendees will hear the latest news and trends while network-

of Elite Body Shop Solutions, Frank Terlep from Summit Marketing, and Pat O’Neill from Body Shop Revolution. The evening will conclude with a reception from 5:30-9pm. Saturday boasts a full-day agenda, commencing at 7:30am with breakfast and the opening of the exposition floor. At 9am, Conference MC Robert McKenzie, Executive Director of the Re-

Pro Spot Display at 2016 I-CAR Volunteer & Instructor Conference

Pro Spot International, US manufacturer of repair equipment and tools for the collision repair industry, sponsored the 2016 I-CAR Volunteer & Instructor Conference, March 1012, in Orlando, Florida. Pro Spot displayed the updated PR-5 Riveter and its new extension arms. The company said the new rivet gun features an adapter for quick, easy changing of arms, new flow form dies, and more. In addition, Pro Spot representatives answered questions about equipment, including spot welders, aluminum repair equipment, MIG welders and plastic welders. Product Support Manager, Bob Pluth, was on the I-CAR Joining Method Panel, discussing advancements and questions on rivet bonding, MIG brazing, spot welding and more. Pro Spot has been working with I-CAR for many years and offers ICAR Industry Training Alliance courses, including squeeze-type resistance spot welding (STRSW) and MIG welding. The I-CAR Volunteer & Instructor Conference offered opportunities for training, networking, interactive sessions and more.

finish Distributors Alliance (RDA), will welcome attendees before an exhibitor demonstration from Estify. At 9:30am, SCRS Executive Director Aaron Schulenburg will address attendees with industry updates. Next, Ryan Ketcham will demonstrate LeanTec’s amazing shop inventory system. The morning will conclude with a panel discussion, lead by Schulenburg, Janet Chaney of Cave Creek Bu- siness Development, John Morgan Hughes from JM Hughes Group, and Bart Fletcher, on the purpose of industry associations and running a successful group. Following lunch, a panel discussion on the value of websites, social media and e-marketing will feature Richard Arnold of Key Concept Services, Tyler Raborn from Raborn Media, and Frank Terlep. At 2:15pm, Keynote Speaker Clifton Lambreth, Founder and CEO of Daniel Bradley Matthews Inc, will present “Do It the Right Way!” with his compelling story of success from a

former Ford executive. Beginning at 3:45pm, the sessions will wrap up with a presentation from Mike Anderson, and SARC 2016 will conclude at 6pm after final announcements and prize drawings. SARC 2016 is being hosted by seven collision repair industry associations: the Alabama Automotive Repair Industry Society of Excellence (ALARISE), the Georgia Collision Industry Association (GCIA), the Florida Autobody Collision Alliance (FACA), the Louisiana Collision Industry Association (LaCIA), the Mississippi Collision Repair Association (MSCRA), the Tennessee Collision Repairers Association (TCRA), and the Auto Body Association of Texas (ABAT). Professionals from all segments of the automotive collision repair industry are invited to attend, including shop owners, technicians, painters, estimators, managers, OEMs, vendors, suppliers, insurers and service providers. Those interested in attending can register online by credit card for $35 or at the door by cash or check for $45. Registration and additional information is available at www.southern automotiverepairconference.com or you may contact southautorepair.conf@ gmail.com / 731-736-3165.

Gerber Collision & Glass Opens Repair Location in FL

The Boyd Group Inc. announced the opening on March 1 of a new collision repair center in Punta Gorda, Florida. Punta Gorda is about 23 miles north of Fort Myers and about a two-hour drive south of Tampa. The center is located on US Highway 41 linking Tampa and Miami and is close to the I-75 Interstate Highway. “We are pleased to add this new location as it complements our locations in Fort Myers and Tampa and adds to our position as a leading provider of collision repair services in Florida, with over 50 locations,” said Tim O’Day, president and COO of the Boyd Group’s U.S. operations. “We look forward to serving new customers in Punta Gorda, better assisting our insurance partners, and growing to become the collision repair provider of choice in southwest Florida.” The Boyd Group is looking to add collision repair locations to its existing network. Interested owners are asked to contact Kim Allen, director of business development, at (847) 410-600, kim.allen@gerbercollision. For information, contact Stephen Boyd, vice president of corporate development, at (204) 594-1776, stephen .boyd@boydgroup.com.

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TCAT 2015 Fall Semester Announcements Include 100% Electric Car on Campus and Tool Grant Awarded to Student The Hybrid/Electric class at Tennessee College of Applied Technology (TCAT) – Crossville returned to school with a little something waiting for them, a 2015 Nissan Leaf.

(l to r) Vestle Phipps, Christopher Crespo, David Dabay, James Sparling, Anthony Johnson, Electric Car & Hybrid InstructorStacy Johnson, Lisa Hartigan (seated inside car)

Instructor Stacy Johnson said she is happy about the fact that her students will be eligible for ETA Certification in electric vehicle now that they have received their first 100% electric model to use in their learning program. Knowing that electric vehicles will be on the streets of the United States in the future, it is necessary to be trained on these types of cars. The Nissan Leaf is 100 percent electric

with a 24 kWh lithium-ion battery that provides power to the motor. According to a press release, everyone at TCAT-Crossville is very excited about this new edition on campus, as well as the direction their students are headed. The Collision Repair Education Foundation (CREF) announced the recipients of the Tool Grant, created to assist students pursuing a career in the collision industry. The awards are part of over $200,000 in scholarships given out in May 2015 by the CREF. Steven Downing is the CREF Tool Grant recipient for TCAT. David Scavo, a collision repair technology student, and Avery Smith, an electronics technology student, both from Cumberland County high school, have been honored as the Fall 2015 High School Students of the Term at TCAT – Crossville. Each term an outstanding student is selected to represent each high school program taught at Tennessee College of Applied Technology – Crossville. These students are selected by their instructors to represent their class as a Student of Merit. The instructors consider grades, work ethics, and extracurricular activities when choosing their student

12 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

representative. These names are then reviewed and a TCAT High School Student of the Term is chosen. The winner receives a scholarship provided by the TCAT General Advisory Council. This year, two students received this award.

High School Student of the Term Winner David Scavo with TCAT Director, Jerry Young

According to collision repair technology instructor Travis Hurd, “David has been more than an instructor could ask for. His work ethics are exactly what an employee is looking for. Davis is planning on returning to TCAT full time after graduation. He will be an asset to the classroom and to his future employers.” The collision repair technology program is instructed by Hurd and is an

ASE-certified program. The course provides instruction on repairing damaged auto bodies and body parts. Skills are developed in welding, masking, sanding, painting, repairing and replacing sheet metal, frame straightening, removing and replacing trim and accessories, and estimating repairs. The work of the auto technician covers a broad range of light and heavy repair and calls for the ability to diagnose and trouble-shoot, make the right adjustments and determine the correct replacement of parts. Training inauto technology is designed to give students skills and technical knowledge, which will prepare them for entrance into the automotive field. Units of instruction include engines, electrical systems, fuel injection, cooling systems, brakes, front-end alignment and transmissions. The plan of instruction includes related technical instruction in the classroom and practical work using modern automotive equipment. Electronics training has also been added to the curriculum to prepare the technician for working with computerized electrical systems. For additional information, visit http://www.tcatcrossville.edu/fulltime -programs/automotive-technology.

Women’s Industry Network Announces 2016 Most Influential Woman in Collision Repair Award

The Women’s Industry Network (WIN) The MIW award recognizes woannounced this year’s honoree for the men who have enriched the collision reMost Influential Women (MIW) of the pair industry with their leadership, vision, collision repair industry for 2016. After and commitment to excellence. “Each reviewing nominations and interviewing year, women from different facets of the a number of women, one inspirational collision repair industry are selected for industry leader was selected to their passion and commitment receive MIW honors: Michelle to progressive and positive Sullivan, regional vice presievolution of the industry,” dent, Finish- Master Inc., Indistated Denise Caspersen, anapolis, IN. WIN chair. “With so many op“The 2016 MIW nomiportunities for women to have nees highlighted the georewarding careers, the sky is graphic, functional and sector the limit for those with talent, diversity of women who are Michelle Sullivan inspiration and a strong work influencing the collision repair received the 2016 ethic.” industry today,” stated Sandra Most Influencial The MIW program’s charHerron, owner of MiddlEdge, Women in Collision ter a-ligns with WIN’s mission Repair Award Inc. “I was inspired by each to “enhance the role of women nominee’s industry involvement, pro- in the industry.” Established in 1999 by fessional accomplishments, mentoring AkzoNobel, WIN acquired stewardship of others and community service. Mi- of the Most Influential Women program chelle’s record of creating value for in 2013. companies, developing industry talent, When the 2016 WIN Educational and championing charitable causes in Conference convenes in Tampa, FL May her community stood out as exemplary.” 2-4, past and current MIW honorees will Herron’s firm was contracted as a third- be celebrated during a gala awards recepparty entity to interview the nominees tion. Registration for the conference and and select this year’s honoree based on dinner will open mid-March. For inforspecific criteria established by the board mation, go to www.womensindustrynetof directors. work.com and click on “Conference.”

Fayetteville Tech Holds “Draft (Hiring) Days” for Upcoming Graduates of the First Class – 2016 Fayetteville Technical Community College (FTCC) held “draft (hiring) days” on March 8 and 9, at the FTCC Collision & Refinishing Technology Center (CollisionU). This was in preparation for the upcoming graduation for the first class (2016) of the Collision Repair and Technology Program. Draft days allowed national automotive, collision, and insurance industries, along with the Fayetteville New Car Dealers’ Association to come to the center and observe the students at work, interact with them, and interview them for jobs upon graduation. The students performed cosmetic repairs on plastic, steel and aluminum, set up and measured on both the Car-O-Liner Evo 3, welding, base coat/clear coat refinish and blend, and estimating on CCC1. Hundreds of industry executives from over 30 companies, including PPG, Gerber, Caliber, Service King, ABRA, Faulkner Automotive, Mile One Automotive, Cochran Automotive, Sonic Automotive, Hendrick Automotive, Geico, Allstate, CarStar, and Classic Collision, attended the event. In addition to interviewing prospective 2016 graduates for new positions, employers were also able to interview first-year students for upcoming summer internships.

The Collision Repair and Refinishing Technology associate degree program exists as a result of the efforts of FTCC President Dr. Larry Keen, who spearheaded the project by establishing and leading a collaborative team comprised of leaders from industry, education, businesses and government.

During FTCC’s Draft (Hiring Days), students performed cosmetic repairs

With input through this collaboration, Dr. Keen structured the academic program to provide students with not only technical training in collision repair and refinishing but also industry-recognized, specialized certifications including nine professional certifications from I-CAR (Inter-Industry Conference on Auto Collision Repair), four professional certifications from ASE (National Institute for Automotive Service Excellence), five manufacturer certifications, and an insurance adjuster license.

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PDA Extends Expertise to Financial Services Sector

Property Damage Appraisers (PDA) is spreading the word about one of its core business practices—financial services. PDA’s appraisal services can be utilized by banks, credit unions and leasing companies that hold liens and force-placed insurance on vehicles. PDA inspects vehicles anywhere in the country and estimates damages in the event of an accident or total loss. “At PDA our work is quite versatile. From vehicle estimates to financial services inspections, we want companies to think of our appraisers as an extension of their team that they can rely on when workloads are heavy,” said Ken Loose, COO, PDA. “We complete estimates quickly to help get customers back on the road or get better returns on your repossessions.” “With more than five decades of experience, we’ve got the expertise to deliver high quality, accurate estimates in less time. That means you can control your costs and higher returns for your repossessed and lease turn-in vehicles,” Loose said. Visit http://www.pdacorporation .com/financialservices.php.

Sherwin-Williams Covers 2016 Daytona 500 Winner Denny Hamlin Denny Hamlin brought home the 2016 Daytona 500 checkered flag in Florida on February 21 for Joe Gibbs Racing as his No. 11 Toyota won the closest Daytona 500 finish in history. His car crossed the finish line first looking great thanks to its shimmering ULTRA 7000® Refinish System provided by Sherwin-Williams Automotive Finishes, according to the company. Hamlin’s car wasn’t the only one sporting an ULTRA 7000 finish – fellow NASCAR Sprint Cup Series competitors Martin Truex Jr., in the Furniture Row Racing No. 78 Toyota and defending Sprint Cup champion Kyle Busch in the No. 18 Toyota, also with Joe Gibbs Racing, finished in second and third place, respectively. In fact, four of the top five finishers at this year’s race all used Sherwin-Williams Automotive Finishes, with Joe Gibbs Racing’s Carl Edwards in the No. 19 Toyota finishing in fifth place. Sherwin-Williams saluted all the teams and drivers as they begin the 2016 season. The company also retains its designation as the ‘Official Automotive Paint of NASCAR’ and the ‘Official Transportation Coatings of NASCAR.’ The company said its Automotive Finishes division is the only direct distribution automotive refinish

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Denny Hamlin

finishes to Sherwin-Williams. “We aim to help teams cross the finish line and ensure their cars and sponsors always look good circling the track,” said Adam Chafe, vice president of marketing for Sherwin-Williams Automotive Finishes. “This victory also

represents yet another win for a car painted in our premium ULTRA 7000 refinish system.” “Today, more than a dozen NASCAR teams currently use SherwinWilliams Automotive Finishes,” said Bryan Nichols, motorsports manager for Sherwin-Williams. “The 30-plus drivers who currently use SherwinWilliams have more than 200 NASCAR Sprint Cup Series victories between them and make up a virtual ‘who’s who’ of motorsports’ finest finishers.” The roster of NASCAR motorsports teams using Sherwin-Williams products include: ● Joe Gibbs Racing ● Richard Childress Racing ● Roush Fenway Racing ● Chip Ganassi Racing with Felix Sabates ● Furniture Row Racing ● Front Row Motorsports ● Germain Racing ● JTG Daugherty Racing ● HScott Motorsports ● BK Racing

For more information about Sherwin-Williams Automotive Finishes, or the brand’s motorsports program, visit: Sherwin-automotive.com/motorsports or call 1-800-798-5872.

Continued from Cover

VA Photo Bill

guage in Senate Bill 193 to minimalize the possible risks. Attempts at compromise were successful, ensuring that the physical inspection receives precedence over photos provided when writing the appraisal. The original proposed amendment to VA Code 38.2.510 read, “Notwithstanding the requirement that an appraisal be based upon a personal inspection, the repair facility or the insurer making the appraisal may prepare an initial, which may be the final, repair appraisal on an automobile that has been damaged as a result of a covered loss either from the representative’s personal inspection of the vehicle or from photographs, videos or electronically transmitted digital imagery of the automobile; however, no insurer may require an owner of an automobile to submit photographs, videos or electronically transmitted digital imagery as a condition of an appraisal.” This text was revised to include: “Supplemental repair estimates that become necessary after the repair work

has been initiated due to discovery of additional damage to the motor vehicle may also be made from photographs, videos or electronically transmitted digital imagery of the motor vehicle, provided that in the case of disputed repairs, a personal inspection is required.” “WMABA is pleased that the bill passed with their suggested amendments which place emphasis on the physical inspection and promotes consumer safety by allowing the collision repair professionals to determine what is necessary to properly restore these vehicles to their pre-loss condition.”

PA Photo Bill Update In January, Autobody News spoke with the Pennsylvania Collision Trade Guild (PCTG) about a photo only appraisal bill being presented in their state. Steve Behrndt, Director of PCTG, has provided an update that the Senate Banking and Insurance Committee has not yet voted on House Bill 1638. He said, “Locked in Committee is a good situation for PA consumers and collision repairers. The Committee held a hearing, and typically, once they hold a hearing, they vote on that

in·teg·ri·ty:

bill within a few days after the hearing. If the insurance industry felt they had the votes in Committee, they would have pressured the Chairman to push for a vote. The state budget situation in PA is currently the most important issue, and until the two sides agree to resolve that issue, not much will happen, especially passing a high profile and customer protection type legislation.” PCTG has been hard at work lobbying to stop the bill and has hired a firm to repress the proposed legislation. Behrndt stated, “Time will tell if we are successful at stopping this legislation, and even if we are successful, we can only assume the Insurance Federation will bring it around again next session.”

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Service King Launches Revitalized Website

Service King Collision Repair Centers® recently unveiled a revitalized look and experience to its consumer-facing website—www.ServiceKing.com The website was designed and developed by award-winning, fullservice digital agency Blue Fountain Media. “We place a priority on providing customers and business partners a cutting-edge, user-friendly digital experience,” said Jeff McFadden, Service King president. “The new Service King homepage was rebuilt from the ground up to enhance the repair experience for our customers and provide an engaging platform to connect with our brand.” “We’ve very pleased to have provided Service King with a website that takes their online presence to the next level,” said Gabriel Shaoolian, VP of digital services, Blue Fountain Media. “The site’s focus on providing cutting-edge design that drives measurable results will help their brand continue to establish itself as an industry leader while also making the collision repair process even more convenient and hassle-free for their customers.”

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Looking Outside of Industry for New Ideas Prompted Maaco Partnership With Pep Boys

Costa said it’s a fraction of the cost to set up a satellite location beShortly after Maaco announced a na- cause the repair is still done in one of tional partnership with Pep Boys in Maaco’s main facilities. “It’s basically March and the opening of two GA satel- a concierge service,” explained Costa. lite locations, Autobody News inter- “You write the estimate, you get a loaner viewed Jose Costa, the group president for the consumer and you take the keys of the paint and collision divithere. Then we transport the sion for Driven Brands, which vehicle to the production faowns Maaco. We asked Costa cility, which is usually three what it takes for a body shop to five miles away.” to think outside of the box Over the last 18 months of and continually advance their testing, they have averaged business. about eight to 10 cars a week, His advice is to do a lot generating about $275,000 to of reading. “I encourage our $300,000 incremental to the Jose Costa team to read and learn as production facility. much as they can and to be inquisitive The first two Maaco shops opened and learn from other industries,” said in March in existing Pep Boys locations Costa. Many people just look at their at 1531 Cobb Parkway S, Marietta, GA competitors and their industry. There and 5000 Highway 138, Union City, is so much learning that other indus- GA. Plans are in place to open additries can teach the aftermarket auto- tional locations in Los Angeles, CA. motive industry.” The shops offer full-service autoCosta said the satellite model has motive services, including auto paintbeen implemented in other industries ing, collision repair, insurance claims, with much success. fleet and industrial services, paintless Maaco spent the last two years dent repair, scratch repair, detailing, testing the concept, opening 18 loca- trim insulation and decaling, with the tions. They currently target affluent support of nearby Maaco production female consumers who spend more shops. money in car repair and visit a shop Costa said they plan to use a momore regularly. bile estimating platform in some of by Stacey Phillips, Assistant Editor

the Pep Boys’ satellite locations as well as digital merchandising boards, with the intent of saving space and enhancing the customer experience. “The footprint varies from location to location so where we have more space we can have more merchandising,” said Costa. “Easy access to Maaco’s services will be a great addition for our customers,” said Joe Cirelli, SVP Real Estate & Construction for Pep Boys. “Maaco has a reputation for quality work, and Pep Boys’ customers now have a truly full-service automotive maintenance shop for all of their needs.” “It was a great fit,” said Costa, referring to the partnership. “They have a lot of foot traffic that they bring to their stores. They don’t offer the type of service we offer so it was complementary. Our consumers are very similar so it made sense to develop this partnership with Pep Boys.” The goal is to open 25 to 50 satellite locations a year. CARSTAR, also owned by Driven Brands, uses a similar model in Canada. “We’re very excited about this concept and we feel it puts our brand in front of the consumer,” said Costa. A fan of the franchise model, Costa said it helps the middle-Amer-

ica small business owner take their company to the next level. “There are incredible benefits to being a franchise owner,” he said. “I call franchisees ‘light entrepreneurs’ because you get a playbook and you are getting a support structure from a national brand so it’s a lot easier to play within the guardrails of the brand versus being a small independent.” He said it also gives an owner more purchasing power and access to technology and marketing. Maaco invests more than $25 million in marketing. “There is no way a small independent can do that,” said Costa. “Our training arm—with Maaco University and CARSTAR University—are best-in-class schools for technicians.” Maaco currently has more than 490 locations in the U.S. and Canada and plans to have 1,000 by 2020. “A lot of people gave us a hard time when we first joined because we didn’t have automotive experience, but we brought a very fresh perspective and that’s where those ideas, like our partnership with Pep Boys came from,” said Costa. “We like to be pioneers and we hope that we can help the industry and help raise the tide for everyone.”

Best Practices Shared to Enhance Growth After CARSTAR Merger

grow the franchisee network in Canada to more than 240 centers. “He has CARSTAR’s U.S. and Canadian op- worked in multiple roles and we’re erations have merged and Michael very excited to give him the opportuMacaluso has assumed the top lead- nity to lead both enterprises,” said ership role for CARSTAR North Costa. America. Macaluso, former presiCARSTAR’s top initiatives, acdent of the Canadian entercording to Costa, will focus prise, will now lead approon growing insurance relaximately 500 CARSTAR tionships, franchisee proflocations. itability and further exThis follows the Februpansion. “We always knew ary 25 resignation of Dan that Canada had a strong Young, head of CARSTAR business, much stron-ger U.S. Young was named presthan the U.S. and this gives ident during Driven Brands’ us the opportunity to let the acquisition of CARSTAR in Michael Macaluso Canadian infrastructure perwas named November 2015. meate the U.S.,” he said. president of Autobody News spoke to “We’re going to absorb the CARSTAR North Jose Costa, Driven Brands Canadian best practices into America paint and collision group presthe U.S.” ident, about the recent changes at the Costa explained that Canada company. supports its field structure differently “The merger was planned later than the U.S. with a head of developon but with Dan Young’s resigna- ment, head of operations and head of tion we had to accelerate some of insurance by territory. Upcoming our plans,” said Costa. “We respect plans also include hiring more field Dan’s decision and thank him for support in the U.S. being an invaluable asset during Dean Fischer, head of U.S. operthese pivotal months of on-board- ations, and Arlo Johnson, head of U.S. ing.” insurance, will both report to Macaluso. Macaluso has been with the CAR- No other changes were made to the exSTAR brand since 2008 and helped ecutive team. by Stacey Phillips, Assistant Editor

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 19

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.

AAAS Expands Capitol Days to Include Alabama in 2016 with Chasidy Rae Sisk

Each year, members from the Automotive Aftermarket Association Southeast (AAAS) gather in state capitols in the association’s service areas. In addition to visiting Jackson, MS and Tallahassee, FL, AAAS members held a Capitol Day in Montgomery, AL for the first time in 2016.

(l to r) Randal Ward; Senator Billy Hudson; Kierstin Turnock; Steve Kean

Randal Ward, President of AAAS, said, “The 2016 AAAS Capitol Days were a tremendous success! A dozen members took time out of their

busy schedules to make their presence known and have their voices heard in their respective states.” AAAS members began their Capitol Day tour on January 13 in Jackson, MS where they met with Representatives Gary Chism, Mac Huddleston, John Moore, Brent Powell and Alex Monsour, as well as Senators Billy Hudson, Eugene Clarke, Willie Simmons, and Josh Harkins, and Lieutenant Governor Tate Reeves. According to Steve Kean, AAAS Board member and CFO of Rick’s Pro Truck, “It is important that we develop and maintain relationships with our legislators so that they will know how vital our industry is to consumers. These relationships give us more creditability and access should unfavorable legislation emerge and we need them to hear our message.” Moving to Tallahassee, FL on February 2 and 3, association members engaged in meetings with Rep-

resentatives Ritch Workman, Larry Ahern, Shawn Harrison, Greg Steube, Jose Oliva, Bill Hager, and Patrick Rooney. In addition to meeting with Senators Jeff Brandes and Dwight Bullard, AAAS’s delegation visited Deputy Agriculture Commissioner Jay Levenstein and the Attorney General’s office.

Rep. Danny Garrett (seated), (l to r) Liz BurlesonBarrett, Donald Hall, Kierstin Turnock, Steve Kampwerth, Sonny Barrett & Randal Ward

“It was so rewarding to go into the legislative and executive meetings

and have the association be recognized without having to introduce ourselves and the industry,” said Joe Ward of First Call Truck Parts. “It is certainly proof that our dedication to Capitol Days throughout the years is paying off by building long-lasting relationships in Tallahassee.” AAAS made history on February 24 with its first ever Capitol Day in Montgomery, AL where members met with Representatives Joe Faust, Craig Ford, Danny Garrett, Mike Hill, Arnold Mooney, John Rodgers, Roderick Scott and Randy Wood in addition to Senators Slade Blackwell, Dick Brewbaker, Paul Bussman, Rusty Glover, Greg Reed, Shay Shelnutt, J. T. Waggoner, and Phil Williams. Steve Kampwerth of Auto Electric and Carburetor stated, “This year marks the first ever Alabama Capitol Day, and it could not have been better. Each of the Senators and Representatives we spoke with now has a famil-

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iarity with our industry and businesses. They know that if they have questions or needed information, our members

Each Capitol Day provided AAAS members with an opportunity to discuss the aftermarket industry and the association with key leaders and members of their state’s legislature, plus they were able to make new connections and strengthen relationships while explaining the needs and concerns facing the automotive aftermarket industry. Key topics that association members discussed with legislators this year included support of the Right to Repair Act and the PARTS Act, (l to r) Paulina Siodlak, Joe Ward, Randal Ward, Senator as well as the importance of Jeff Brandes, Kierstin Turnock, and George Ehrhard maintaining an open market for and our association are trustworthy and automotive aftermarket parts. will make valuable resources available According to Liz Burleson-Barto them.” rett of Big Moe’s Spring and Align-

ment, “Capitol Day was an exciting and energizing day, filled with the opportunity to advocate for our industry. I believe every member would find Capitol Day in their state rewarding and time well-spent.” Ward concluded, “As usual, our members have stepped up and supported efforts to advocate for a strong and competitive automotive aftermarket to those who make decisions that affect the industry. We appreciate our members’ time and effort as well as our event sponsor Federated Insurance. We look forward to 2017 when we expect to conduct Capitol Day events in all four state capitols.”

www.autobodynews.com

Audatex: Seam Sealer is a Body Operation

SCRS has pointed out that Audatex states in DEG inquiry number 1157 that seam sealer is a body operation. “The Audatex database includes the labor for seam sealing where required per the OEM manufacturer service procedures and this labor is allotted in the body repair allowance not the refinish allowance. The cost of body materials are not addressed within the Audatex database.” The Audatex time for replacement of a panel includes the labor to apply the seam sealer, but does not included the removal of the existing seam sealer per DEG inquiry 2951. The estimating databases are all intended to be used as a GUIDE ONLY—it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair. You can view this tip and others on the DEG website: http://www .degweb.org/ For more information about SCRS visit www.scrs.com, or call toll free 1-877-841-0660.

B-Tec Systems Releases The Infrared Handbook

The Infrared Handbook from B-Tec Systems was written by Peter Phillipson who has over 30 years automotive experience. Phillipson spent 18 years with Edwin Trisk where he was responsible for developing short wave infrared systems and global technical training. He has also been acting as a consultant for several infrared manufacturers in recent years. He has been working recently for B-Tec Systems in the USA, as technical sales & marketing manager (IR). Phillipson commented, “I have been writing educational pieces for several years, but finally found the time to write another book on infrared. It basically covers everything about infrared, what it is, how it works and also covers most of the applications you can use it for in the automotive refinish industry. I hope it will enable both distributors and body shops better understand infrared equipment and its benefits.” The book is available from BTec Systems. The electronic version is priced at $9.95. For information, call B-Tec corporate office phone (480)-621-5304 or email btecusaoffice@gmail.com.

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 21

Turtles, Dolphins, Gators, Oh My! FL Shop Steps Up to Help Non-Profits by Ed Attanasio

Body shops are asked to clear coat and/or paint all the time for charitable causes and many of them are sculptures of animals. This movement began back in 1986 when fiberglass lions were painted in different colors and staged throughout the city of Zurich, Switzerland.

JR Nocera is the owner Supreme Auto Collision in Naples, FL. When asked to clear coat 50 sculptures of Loggerhead sea turtles for a community art project called Turtles on the Town he said yes

Two years later, the lions were replaced by cows. The “CowParade” later became a hugely successful international public art exhibit that has been featured in major cities throughout the world. These sculptures of cows were decorated by local artists, and distributed in public places such as train stations, museums and parks. Since then, cities all over the world have gotten involved in these art projects to protect wildlife and raise money for animal preservation. In almost every case, they feature artwork and designs specific to the local culture, as well as city life and other relevant themes. After each exhibition in each city concludes, the statues are auctioned off and the proceeds donated to charity. From Bears in Berlin to Crabs in Baltimore; Buffaloes in Buffalo, Sharks in San Jose and Cats in the Catskills, these animal sculptures are now in the thousands. So, when a Florida body shop owner was asked to clear coat 50 Loggerhead sea turtles for a good cause, he wasn’t surprised, because he had already painted statues of dolphins, gators and pelicans for other exhibitions. The owner is JR Nocera, and the shop is Supreme Auto Collision in Naples, FL. To say the least, Nocera has never had any problems sticking his head out of his shell and telling the world about his 60,000 sq. ft. shop that takes up an entire city block. So, he

surely wasn’t going to hide in the sand when he was asked to paint 50 turtles gratis for the Turtles on the Town, a public art project and fundraiser on display in Naples and throughout Collier County. Supreme Auto Collision is a onestop shop, with a mechanical repair division, a car detailing department, a trim shop and even a Vespa scooter dealership in addition to being a body shop that fixes 200-300 cars every month while maintaining 13 DRPs. The shop is known for working on high-end vehicles, specifically Bentleys, Audis, BMWs, and Aston-Martins and is aluminum-ready, with its own separate clean room. With 30 employees, including his two nephews, Nocera, 48 is a secondgeneration shop owner with a son (age 10) who will hopefully get into the business one day. “My dad had a shop and we had a lot of mechanics in my family,” Nocera said. “My father still works here at age 73 and my brother Jimmy also works here. I started when I was 16 and quickly I knew that I wanted to do this for the rest of my life. Most kids at age 16 don’t know what they want to do, but I had my path right then and there. I hope my youngest can get into this industry one day, because I know that my daughter isn’t at all interested, which is fine.”

The 50 turtles were molded of fiberglassreinforced polyester from an original bronze sculpture, and they stand about five ft. tall

All of the turtles will be auctioned at a gala later this Spring, with proceeds to benefit the three non-profit organizations involved in the exhibition — the Conservancy of Southwest Florida, the Community Foundation of Collier County and the United Arts Council of Collier County. The project began as a way to commemorate the 30th anniversary of the community foundation, but once the project grew, more people swam into the project. The 50 turtles were molded of

22 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

fiberglass-reinforced polyester from an original bronze sculpture, and they stand about five ft. tall. It takes a community of many different people and

All of the turtles will eventually be auctioned off to benefit three local non-profit organizations

organizations contributing different things to make a project of this size happen. Among those contributing were 50 patrons who gave $5,000 each to sponsor a turtle. While many of

these patrons are businesses that have their sponsored turtles on site for the public exhibition, other patrons are individuals and those sculptures are on exhibit at area parks and non-profits. Even though his shop is busy all the time, Nocera took the time to clear coat all of the 50 turtles, with the product donated by Axalta, the paint he uses on every vehicle he repairs. “It lays out real sweet,” Nocera said. “Those artists put so much time into these amazing creations, so we made sure that we did a great job for them. It was a team effort and all of our people stepped up. This is like the fourth time we’ve been asked to do something like this and each time I just can’t say no.” Without compromising his cycle time, Nocera called upon his crew to work a little overtime and get the turtles ready to roll onto the streets of Collier County. “They came out beautifully and we’re happy that we were able to be part of this community effort. I don’t know what they’re going to ask us to paint next–vmaybe manatees? Whatever it is, we’ll be there!”

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Continued from Cover

Alleged ‘Price Fixing’

law; (2) the availability of new evidence; and (3) the need to correct clear error or manifest injustice. Therefore, the new information acquired by the Jackson, MS firm is grounds for reconsidering the case, she said. “Specifically, plaintiffs obtained a statement from a Progressive employee who stated unequivocally that body shops have no say in the setting of their own labor rates, that the insurance companies ‘get together at big meetings’ to set body shop labor rates, and that the insurance companies uniformly apply the labor rates agreed upon at these meetings,” according to court documents. “This representative even identified when the next such meeting was going to occur.” In addition, a State Farm representative provided the following statement in court documents: “State Farm intentionally suppresses and fixes body shop labor rates, and that State Farm’s labor rate survey is a sham to justify its intentional fixing of labor rates.” The anti-trust lawsuit was first

filed in Mississippi by 20 auto repair shops in February 2014 against 39 insurance companies. Eaves Law Firm subsequently filed more than 20 others. The lawsuits were eventually consolidated for pretrial purposes and the law firm now represents 500 shops across the country. In the lawsuits that have been filed, the plaintiffs allege that the defendants, “engaged in an ongoing, concerted and combined intentional course of action and conduct to improperly and illegally control and depress automobile damage repair costs to the detriment of the plaintiffs and the substantial profit of the defendants.” The plaintiffs also claim that the defendants engaged in price fixing, compulsory use of substandard parts and boycotting shops that refuse to comply. Eaves Law Firm plans to file the same motion to reconsider in IN, MS, TN and Utah, citing the new evidence obtained. Meanwhile, the court is going through the claims on a rolling basis. “What is unusual about the current crop of orders is that the court has made a separation,” said Fry. “Other than the very first order two years ago,

24 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

the court has handed over to the magistrate [Judge Thomas Smith] the duty to prepare a report and recommendation for all of the claims, state and federal.” Magistrate Smith has prepared the report and recommendation on the state law claims and District Judge Gregory Presnell entered an order on the federal claims, which Fry said is a break from their previous habit. The next step is to wait for the court to rule on the motion to reconsider, which Fry said can happen at anytime because there isn’t a specific deadline set. “If he does agree to reconsider and reverse itself on dismissal, then we will move forward with ordinary practices of litigation,” she said. “If he does not, we will appeal it to the 11th circuit.” In March of this year, Eaves Law Firm filed an objection to the magistrate’s report and recommendations in both Mississippi and Indiana. Fry pointed out that in the MS case, the court did not dismiss four of the tortious interference claims. “At this moment they are alive,” she said. “Unfortunately there is no final answer on that at this moment because of the very unusual nature where they separated the

claims, federal vs state.” Tortious interference occurs when a person intentionally damages the plaintiff’s contractual or other business relationship. Although the report and recommendations issued by the magistrate judge stated that there are sufficient facts to move forward, Judge Presnell will still make the final ruling. Eaves Law Firm plans to file an amended complaint in the states that the judge hasn’t dismissed yet, in order to include the new evidence. Fry wants shops to know that “…there is still a great deal of life to go here. We will be pursuing each and every avenue that is required, whether that is an appeal or additional motion to reconsider.” State Farm provided the following statement to Autobody News magazine: “Our court filings speak for themselves; we believe that the allegations made by the plaintiff are without merit. We will ask the court to deny the motion for reconsideration. We have nothing further to add at this time.”

www.autobodynews.com C

2016 Digital Collision Repair Trends Report

The Auto Care Association (ACA) has expelled a 2016 Digital Collision Repair Trends report—an online 70page investigation of information gathered from primary ACA research and other sources. The news highlights a distance and range of the U.S. collision industry, including a paint, physique and apparatus (PBE) segment, with a brief investigation of the Canadian collision industry. It also includes analyses of the collision industry and the Direct Repair Program (DRP). Users can: download Excel-based files, charts, tables and graphs that can be copied and pasted for presentations; view pages in an accumulation of sizes and formats; locate information by a “word search” feature; and print the publication. According to this year’s report, trade deaths, totaling 29,867 deadly collisions in 2011 (the lowest ever), have increased by 10 percent to 32,317 in 2013. Copies of a new 2016 Digital Collision Repair Trends news are now accessible for $125 for Auto Care Association members and $250 for non-members. For information, visit www.autocare.org/marketintelligence or by call (301) 6546664.

ABA Connecticut Releases “Now What?” App for Consumers For over 50 years, the Auto Body Association of Connecticut (ABAC) has been dedicated to protecting consumer safety. In February 2016, they took their mission a step farther by releasing the “Now What?” app which coaches consumers through the proper steps to take after a car accident. Tony Ferraiolo, President of ABAC, noted, “Our app is free, easy to use and assists consumers by navigating easily through what would normally be a stressful and hectic process. Our app provides consumers with the convenience of having a guide readily available to lead them through the process of documenting the accident.” Downloading ABAC’s “Now What?” app enables consumers to gather information, take photos, hare the report with others (including their collision repair facility), find an ABAC shop in their area, and file a complaint with the Department of Insurance. One app function advises the consumer to obtain needed information from the other driver, including their name and numbers, insurance company and policy number, as well as the car year, make and model. All this information can be entered and stored within the app or sent to themselves, another person or body shop.

Photos can also be attached through the app. The app’s homepage allows the consumer to call 911, learn about their rights, file an insurance complaint, locate an ABAC shop, read about the as-

sociation or access its YouTube channel. Choosing “File an Insurance Complaint” will direct the user to the Connecticut Insurance Department’s website where they can upload photos and attach them to the complaint they submit electronically. The “Know Your Rights” feature includes comprehensive advice about

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what to do after an automotive accident, covering everything from what to do at the scene, how to handle injuries and what to know about legal representation. This information was compiled by the Law Offices of Buckley & Wynne for their booklet, “Auto Accident Rights and Responsibilities.” By clicking “Find an ABAC Shop,” the consumer will be directed to an interactive map showing nearby member shops as well as contact information and a link to the shop’s website. Ferraiolo stated, “The steps and resources provided give consumers confidence knowing their accident was properly documented, ensuring the repair process goes smoothly. Our app also provides the body shop with information needed to help customers file the insurance claim. Not only does our app provide a checklist for customers. It also provides valuable information and resources informing them of their rights and responsibilities. We encourage CT shops to invite customers to download the app and utilize the great features provided!” ABAC’s “Now What?” app is available for download at www.aba conn.org by clicking the “get the app” tab.

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 25

Western Associations CAA Takes on the Capitol at Legislative Day on April 12th with Ed Attanasio

Every year, the California Autobody Association co-hosts its ASCCA/CAA Joint Legislative Day and this year it takes place on April 12, 8 am to 3 pm at the Capitol Event Center, located at 1020 11th Street in Sacramento. The CAA gears up for this event every year as the organization partners with the Automotive Service Councils of California (ASCCA), the largest independent automotive repair organization in California, to hold this event. With more than 800 members, the ASCCA has been representing all areas of the automotive repair industry, including mechanical, auto body, supplier and educators in the automotive technology field for the past 76 years. CAA Executive David McClune is ready to lead these two groups as they take on the Capitol. “This is our big moment every year when we can meet with our political representatives,” he said. “We can influence these bills before they become laws and provide valuable feedback for our key decision makers, so we tell our members to seize the moment and make the most of it. Most importantly, we can provide them with a look into how our CAA State President members run their Don Feeley is businesses and all encouraging more of the factors that body shop owners can affect them and to attend the their livelihoods.” ASCCA/CAA Joint By strategically Legislative Day on April 12 in scheduling appointSacramento ments throughout the Capitol’s offices all day long, AS CCA/CAA members break into smaller groups to cover as much territory as possible. With major concerns about bills that can greatly impact their businesses, collision and mechanical repair companies come from all over the state every spring to meet with their local legislators and discuss “hot button” bills. Although this year’s slate of speakers at Legislative Day was not yet finalized, past speakers have included: The Chief of the Bureau of Automotive Repair; Governor’s Small Business Advocates, the Governor’s Economic Adviser; Chair of the Select

Committee on Career Technical Education and Workforce Development; the author of AB 2289 (Smog Check), and Chair of the Senate Transportation and Housing Committee. To kick off the day, everyone is briefed by Jack Molodanof, the lobbyist for both organizations, who instructs the members about the correct protocol for meeting with their legislators or their representatives. Molodanof always opens with a joke or amusing anecdote, but then he’s all business. Coaching the members of ASCCA/CAA about how to approach their local representatives is always crucial and that’s why Molodanof always sets down the rules first. In the handbook that every member gets from Molodanof at the start of Legislative Day, the lobbyist ably summarizes the day’s purpose. “Not only can one person make a difference, but one person can also make others change their perception of an issue. You have the power in that you have firsthand experience as it relates to issues that are most important to you. Let the lawmakers know how you feel about these issues. You must be heard to make a change. John F. Kennedy once said, ‘One person can make a difference and every person should try.’” Molodanof was happy with last year’s turnout, he said, and is hoping to see more body shop owners at the Capitol in 2016. “We’re pinpointing proposed bills here at the State Capitol and raising awareness about possible future laws that can directly impact the collision industry. It was wonderful to see so many new faces at last year’s Legislative Day and I’m hoping to see even more on April 12.” Don Feeley is the CAA State President and a highly-respected name in the collision industry, especially in southern California. He has served CAA at the state level for more than 21 years, holding each of the seven positions available on the board an unprecedented three times. So, when Feeley talks about the importance of events such as CAA Legislative Day, people listen. Feeley said that body shop owners should attend Legislative Day for many reasons. “Some years, we have

26 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

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

bills that impact the collision repair market greater than others, but we always need to be vigilant, because there are many issues that affect collision repairs such as environmental and governmental regulation changes not to mention insurance companies who are always working on their best interest at the State Capitol,” he explained. “One of the problems of leg day attendance is that a lot of body shop owners like many Americans are turned off by politics in general and don’t feel their voices will be heard so why bother. They figure, CAA has a great lobbyist in Jack Molodanof, and that’s true, but he can’t do it all alone.” Feeley said that showing up at the event is more than halff the battle. “We need collision repairers here physically, so that our representatives can see that Jack Molodanof and David McClune and our board have some numbers behind it. When they see that we are a significant group, it adds credibility to the

work that the association is doing for its members and the collision industry. So, by showing up, we can emphasize our role and show our strength.” Ideally, getting a body shop owner in office in California would have been a great way to give CAA a much-needed voice at the legislative level. Unfortunately, recent attempts have fallen short. However, Feeley still thinks that CAA’s current methodology, with the help of its members, is the best way to tell their story and educate their elected officials on the collision repair environment. “A few years ago, Kelly McCarty, a shop owner ran for the 64th Assembly District in the Inland Empire and although it was a close race, we lost,” Feeley said. “Having a voice is a big deal and getting someone in office would be nice, but in the meantime we need to mobilize our members and get more new members to assist us. I look forward to seeing our members at the state Capitol on April 12th.”

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 27

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Southern Motors Acura

N O . CA RO L IN A

Flow Acura Win st on -Salem

800-489-3534 336-761-3682 Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com

NO . C AR O LI N A

NO . CAR OL INA

TEN NE SS EE

V IR GIN I A

Apple Tree Honda

Vann York Automall

Bill Gatton Honda

As he v ille

High Point

Br is to l

800-476-9411 828-684-4400

336-841-6200 Dept. Hours: M-F 7:30-6; Sat 8-3

800-868-4118 423-652-9545

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

Crown Honda Southpoint Du r ha m

855-893-8866 919-425-4711 Dept. Hours: M-Thu 7-11; Fri 7-6 Sat 7-5; Sun 11-5 www.southpointhonda.com

Hendrick Honda Ch a r lo t t e

800-277-7271 704-552-1149 Dept. Hours: M-F 7-7; Sat 8-5 rob.thomas@hendrickauto.com

Leith Honda Ra le ig h

800-868-6970 919-790-8228 Dept. Hours: M-F 7-7; Sat 7:30-5 parts@leithhonda.com

McKenney-Salinas Honda G as t on ia

888-703-7109 704-824-8844 x 624 Dept. Hours: M-F 7:30-5:30 parts@mshonda.com

Metro Honda I nd ian Trail

866-882-9542 704-220-1522 Dept. Hours: M-F 6:30-6:30; Sat 7-4 www.copytk.com

N O . CAR OL IN A

Hendrick Acura

SO . CAR OL INA

Breakaway Honda G re e n vi l l e

800-849-5056 864-234-6481 Dept. Hours: M-F 8-6; Sat 8-5 fmarshall@breakawayhonda.com

Midlands Honda C o l u m bi a

877-273-4442 803-691-8585

Hendrick Honda Woodbridge Woodb rid g e

703-690-7777

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

Dept. Hours: M-Fri 7-6 Sat 8-5; Sun 10-4

Wolfchase Honda

Valley Honda

Ba r tle t t

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800-982-7290 901-255-3780

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VIRGINIA

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Colonial Honda

Rich m on d

C he ste r

800-446-0160 804-672-8811

Dept. Hours: M-F 7-7; Sat 7-4 www.copytk.com

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Piedmont Honda

Dept. Hours: M-F 8-7; Sat 8-4 rreese@i95honda.com

Dept. Hours: M-Thu 7:30-6:30; Fri 7:30-6; Sat 8-3; Sun 11-3 wbhonda@aol.com

A n de r so n

800-849-5057 864-375-2082 Dept. Hours: M-F 7:30-6; Sat 8-5 swhite@piedmontcars.com TE NNES SEE

Airport Honda Alcoa

800-264-4721 865-970-7792 Dept. Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda.com

AutoNation Honda West Knoxville

Duncanâ&#x20AC;&#x2122;s Hokie Honda C hr is tia n burg

800-979-9110 540-381-3200 Dept. Hours: Mon-Fri 7:30-5:30 Sat 8:00-5:00 rthompson@duncanauto.net

Hall Honda Vi rgi ni a Bea ch

800-482-9606 757-431-4329 Dept. Hours: M-F 8-7; Sat 8-5 fox@hallauto.com

K n ox v i l l e

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VI RG INIA

Karen Radley Acura

Ch a r lo t t e

Woo d br i dg e

800-768-6824 704-566-2288

800-355-2818 703-550-0205

Dept. Hours: M-F 7:30-6; Sat 8-5 justin.taylor@hendrickauto.com

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Leith Acura

Radley Acura

Ca r y

F a l l s C hu rch

800-868-0082 919-657-0460

800-550-5035 703-824-5785

Dept. Hours: M-F 8-6; Sat 8-4:30 parts@leithacura.com

Dept. Hours: M-F 7:30-6:00; Sat 8-6; Sun 10-5 jimgraf@radleyauto.com www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 29

Autobody News reached out to National Autobody Research President, Sam Valenzuela, and V.P. of Operations at K&M Collision, K. Michael Bradshaw, to find out if the recently expanded North Carolina sales tax will affect shops. Sam Valenzuela:

Q. Do you think this new tax will affect shops? How so? A. I don’t think the new tax will affect the shops much, other than adding some administrative overhead of having to collect the tax and remit it to the government. The tax should not affect their labor rate prices. Q. Will this change affect the VRS / other NABR labor rate surveys? A. For now, no, this won’t affect the VRS Labor Rate Surveys at all. The VRS Surveys will continue to ask for a shop’s retail rate, regardless of the tax model that any state uses. At this point, we don’t plan on any changes to the survey questions because of taxes. Q. Do you have any advice for shops

dealing with this tax change and it's affect on shop labor rates? A. My advice would be to ignore thinking about the tax when setting labor rate prices for their shop. Just find the right price for your shop based on your own cost of doing business, market area, financial goals, and investment requirements (among other things), and go from there. Don’t worry about the tax. Naturally, this is where the Variable Rate System comes in, with a suite of pricing tools and some consulting, to help shops get to the right price for their individual shop. K. Michael Bradshaw: Q. As a body shop owner in North Carolina, have you or other shops in

30 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

the area been affected by this tax change? A. “No, we have not been affected as of yet, however, I do think one of the more interesting aspects of the new law as it relates to collision repair facilities is the tax on paint. Before the new law was in place, shops had to pay sales tax on paint when we purchased it at the wholesale level. My understanding is that going forward the shop will collect tax from the customers at the retail rate and no longer have to pay tax on the wholesale purchase of paint.”

As of now, it does not appear that the recent income tax changes will have a major affect on collision repair in North Carolina. Autobody News will continue to monitor and post any updates we receive.

Continued from Cover

More Sales Taxes

Households making more than $95,000 a year would get an average tax cut of $476, according to legislative projections. As long as they don’t spend more than $7,000 on taxable services, they’ll see a net benefit from the tax changes. “People are going to have more money in their pocket after getting their paycheck,” Gov. Pat McCrory said on September 17 before signing the budget bill, adding that he was opposed to the new sales taxes. The expanded sales tax becomes effective March 1. The N.C. Department of Revenue will be tasked with determining specific services to be taxed, because the budget bill doesn’t list details. The legislation says taxes should be collected by all repair, maintenance and installation service providers when the item involved is subject to sales tax. So while it’s clear that a mechanic installing a new transmission would charge sales tax on his labor fees, it’s less clear whether the tax would apply to a plumber hired to unclog a drain. “We can’t write the tax code in

the bill, so we let them know what the intentions are,” said Sen. Bob Rucho, a Mecklenburg County Republican who helped develop the tax plan. An earlier Senate proposal would have also taxed veterinary services, pet care and advertising, but that idea was scrapped following outcry from those industries. Michael Walden, an economist at N.C. State University, said car repair is an expense that takes up a larger share of income for poorer people. He pointed to a consumer expenditure survey conducted by the federal Bureau of Labor Statistics. The latest survey found that people making $30,000 to $40,000 a year spent an average of $630 annually on repairs and maintenance. Meanwhile, people with incomes higher than $70,000 spent an average of $1,300. “It does goes up with income, but ... in percentage terms, maintenance and repair spending is heavier for lower income people,” Walden said. The decision to exclude services like pet care does, however, spread the tax burden among more people. “Auto repair is probably a type of expenditure that a higher percentage of households make than perhaps pet services,”

Walden said. The legislature already expanded sales taxes in 2013 to include movie and other admission tickets, manufactured home sales and other items. Rucho said the Senate hopes to expand the sales tax further in future years – all while lowering the personal income tax rate. “Tax reform is an ongoing process,”

NC State Senator Dan Blue (D-Wake County), left, stands to plead for more time for senators to read the budget compromise bill before them in the NC Senate on September 15 as fellow State Senator Bob Rucho (R-Mecklenburg County) listens before coming back to his seat in the NC Senate. Credit: Harry Lynch

he said. “Ultimately we’re trying to get rid of income tax and move to a consumption-based tax.”

A more reliable revenue source? Rucho and other Republicans say the shift away from income taxes is better

for the state because sales taxes are a more stable revenue source. They say the shift will help avoid recession revenue drops that force the state to make cuts. Walden said some economic studies back up that claim. “In the recession, incomes in general go down, especially those taxed at the very high ends, but people will still spend money to survive,” he said. But Walden also pointed out several studies that showed that states that rely more on sales taxes didn’t necessarily fare better during the latest recession. And when the economy is growing, income tax revenue will typically grow more than sales tax revenue. Overall, North Carolina will get less revenue as part of the budget’s tax changes. The personal income tax cut will mean the state collects at least $700 million less per year after the cut becomes effective in 2017, according to legislative estimates. Estimates show the expanded sales tax will bring in an additional $160 million in fiscal year 2016-2017, and increase in future years. And while the new sales taxes start on March 1, 2016, the personal income tax rate won’t drop to 5.499 percent until 2017. So taxpayers won’t see

the benefits of a tax cut until they file in 2018. Alexandra Sirota, who studies tax policy for the liberal N.C. Justice Center, said the full impact of the revenue cuts from lower taxes on the state budget won’t be felt for several years. “It’s a huge revenue loser, and the revenue losses aren’t fully accounted for in the next few years,” Sirota said, adding that future legislatures could struggle to find enough funding for school needs and other services. “What this does is really lock in some tax changes that future policy makers will have to deal with.” But Roy Cordato, a researcher at the conservative John Locke Foundation, said Republican changes are resulting in a much simpler tax code. “They’re trying to reduce the income tax and expand the sales tax little by little,” he said. “The argument would be ‘we politically can’t do it all at once.’” The budget will also raise the “zero bracket” – the amount of income on which everyone pays no taxes – from $15,000 to $15,500 for a married couple filing jointly. That means a couple who earns $20,000 would only pay income taxes on $4,500. See More Sales Taxes, Page 40

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 31

LKQ Hosts Charity Bike Build at Three-Day Summit girl’s and boy’s bicycles. Teams competed to be the first LKQ Corporation hosted a Charity one to finish assembling two bikes, in Team Bike Build Challenge on Thurs- perfect order. Full inspections were day, March 10 as part of its annual conducted on all of the bikes. leadership conference at the Hyatt Re“I thoroughly enjoyed the Bike gency in Atlanta, GA. Build,” said Patrick ‘Skip’ Stevenson, At the conclusion of the Bike of Keystone Automotive Operations, Build, LKQ presented new boys’ and one of LKQ’s seven subsidiaries. “I girls’ Huffy bicycles to the Metro Atthink it speaks to LKQ’s extraordinary lanta Chapter of the Boys & Girls Club commitment to team culture and environment.” Keystone Automotive Operations specializes in aftermarket automotive equipment, accessories and vehicle enhancements, and was acquired by LKQ in 2014. Sponsors for the Agents of Change Charity Bike Build included Caliber Collision, Gerber Collision and Service King. Caliber Collision is headquartered in Lewisville, Texas and LKQ presented new boys’ and girls’ Huffy bicycles to the Metro Atlanta Chapter of the Boys & Girls Club of America. has more than 376 repair cenCredit: Javier Rivas, LKQ Multimedia Specialist ters. Gerber Collision and Glass of America. The Boys & Girls Club is headquartered in Skokie, Illinois with will donate the bikes to children in 316 repair centers and has been in the inneed in the metro Atlanta community. dustry for over 75 years. Service King is The Bike Build was only one part headquartered in Richardson, Texas with of LKQ’s three-day annual leadership 292 locations throughout 23 states. conference, titled “Agents of Change.” The summit brought together company Relationship Building in Action executives from all over North Amer“We came together this week to see the ica to further the LKQ mission to ennumbers as well as review and enhance hance teamwork, collaboration and the vision for LKQ. But we’re also here commitment within the organization. to develop relationships with our colBrand new children’s bikes taunted leagues around the country. We might from within their boxes along the walls speak to many of them frequently but of the conference room. By mid-afterwe never get to meet them otherwise,” noon on March 10, event organizers said Stevenson. paired company leaders with conference Samantha Brill, marketing assomembers into teams. They were diciate with LKQ, said the three-day rected to break open the boxes, assemconference was an opportunity for reble the parts, and transform them into lationship building in action. by Diane Eaton

“The goal of the Bike Build Challenge is to unite executives and community through teambuilding,” said Brill. “Each team had to work together and figure out how to put the bikes together as partners. Everyone had fun and everyone benefited!” This year’s conference was arranged to gather company leaders under one roof to discuss past, present and fu-

is focused on influencing change. We are transforming how we do things and how things are done,” said LKQ Multimedia Specialist, Javier Rivas. With nearly 570 facilities worldwide, LKQ Corporation is a global provider of recycled and remanufactured mechanical parts. The company said it is dedicated to growth with over 200 company acquisitions and roughly 6.7 billion in revenue as of 2014. Brill said LKQ’s civic dedication is also fundamental to its mission, with an emphasis on relationship building and environmental integrity. The company’s Green Initiative focuses on recycling, waste elimination and reduction of greenhouse emissions. During the LKQ leadership conference, teams assembled LKQ offers a broad range of bicycles as part of the Charity Team Bike Build Challenge. Credit: Javier Rivas, LKQ Multimedia Specialist replacement systems, compoture. Participants were asked to step outnents, equipment, and parts to repair and side of their comfort zones to seek new accessorize automobiles, trucks, recreways to demonstrate industry leadership ational and performance vehicles. In adin operations, community involvement dition to its presence in North America, and environmental responsibility. LKQ has operations in Taiwan, Belgium Brill said LKQ’s vision is to leave and France. In 2013, LKQ surpassed $5 a positive imprint on the industry. “LKQ billion in revenue.

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● The Young Technicians Symposium program This year’s sessions have also expanded. Programs will include tracks for Heavy Duty (first time ever), as well as Management / Leadership, Technology & Telematics, Demos, MSO, I-CAR, Technical, and OEM Training (with record levels of commitment for 2016). Additional session details will be released soon. After completing registration, you will have the ability to create your personalized agenda when the full list of sessions is released. For more information and to register, visit www.naceexpo.com

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 33

The Body Shop of the Future

Mike Anderson shares tips on how to “thrive and not just survive” by Stacey Phillips, Assistant Editor

What will it take for an auto body shop to prosper in the future? Industry expert Mike Anderson shared tips on what shops need to do in order to “thrive, not just survive,” during a recent California Autobody Association’s chapter meeting. It was held in March at Mitchell International in San Diego, CA. Regardless of the type of business, Anderson said a company needs to focus on three specific areas: marketing, production, and finance human resources.

Sales & Marketing Currently, if a vehicle owner does not have a shop in mind to go to after an accident, the insurance company will make a referral to a DRP (direct repair program) shop. Anderson said that moving forward, OEMs will become more involved in this process. In the future when someone is in a collision, Anderson said the technology in the vehicle will automatically notify the OEM about the drivability

of the car. This will give the OEM an or trade in their vehicle.” opportunity to direct where the car “At the end of the day, the OEMs will be repaired, also known as “virwant to protect their brand,” said Antual steering.” During his presentation, derson. “DRPs are not going away; Anderson showed CAA members a however, I do believe that as shops we Collision Hub video released in 2015 need to set ourselves up to win and titled, “Virtual Steering The Future Of this OEM trend needs to be clearly Automotive Collision Claims.” considered.” https://www.youtube.com/watch?v= He said in the past a prosperous MWqYWDdRvu4 shop was either part of a DRP or had Several OEMs have already incorhigh-end OEM certifications. This is no porated this technology into their vehilonger the case, according to Anderson. cles and are in the process of “The shop of the future that is building vehicle networks. going to thrive and not just Meanwhile, insurance comsurvive, is going to be a blend panies are in discussions with of both,” he said. “If you have OEMs to be their preferred not started down the path of carrier of choice. OEM certifications, you have Anderson shared inforalready started to lose the mation from Erica Schaefer at race.” Mike Anderson Chrysler: “Statistics have In addition to pursuing OEM from Collision shown that 60 percent of concertifications, he said it is Advice gave CAA San Diego sumers who have to return critical to monitor and mainmembers tips on their car back to a body shop tain your shop’s online preshow to run a for a problem no matter how ence. He talked about successful minor, will sell or trade that ensuring your business presbusiness car in within one year. Sixtyence is consistently reprethree percent of that number will senting your brand. Regardless of the change vehicle brands when they sell search engine used – Google, Yahoo,

Facebook, Bing, white pages or yelp – having a consistent and accurate listing is critical to success. Anderson advised having the shop’s logo, shops hours and website link accurate across the board. Websites such as www.yext.com can provide information on how consistent your shop ranks in regards to your online presence. In order to “thrive and not just survive,” Anderson noted that the following are important to consumers – trust, empathy and direction (TED), while insurance carriers are looking for service, speed and accuracy. To meet these needs, Anderson recommended that shops focus on the three Cs – CSI, closing ratio and cycle time.

CSI “If you want to thrive and not just survive, you need to give extraordinary, over-the-top, off-the-charts customer service,” said Anderson. “‘Good nuff’ is not good enough.” In addition to paying attention to how your customer is greeted, the ap-

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pearance of your front office and the use of uniforms, one of the biggest factors affecting CSI is whether or not customers are kept informed via their preferred method of communication - text, email or phone -- while their vehicles are repaired. Sixty-three percent of customers surveyed prefer to receive text message updates, but this ranges depending on gender, age and demographics. He mentioned a new KPI (key performance indicator) that insurance companies are now tracking and should be monitored – Assignment Received to Estimate Start Date. This is the time period that insurance companies measure a shop from the time they send an assignment at FNOL (First Notice of Loss) on a customer’s car until the body shop actually begins writing the estimate. The industry average is currently 5.5 days. “Insurance companies want it to be less than 1.6 days because they see a direct correlation between the time it takes from FNOL to when the shop contacts the customer and begins writing that estimate,” said Anderson. “The longer the period between FNOL and a shop beginning an estimate impacts what they pay on bodily injury

claims.” Some of the MSOs he works with have call centers that contact the vehicle owner within seven minutes of when they receive an assignment. “If shops are taking up to 5.5 days to contact the customer, they can be assured that they are losing work,” he said. Another factor affecting CSI is whether the vehicle is delivered on time. “The number one thing that contributes to on-time delivery being missed is that we give them a false date to start with,” said Anderson. Although shops often feel pressured to give customers a date, one of the things Anderson said he learned from Cheryl Hart at 3M was to change our word tracks with customers and let them know that we will be able to provide a more accurate date once the car has been disassembled, the shop has received full authorization from the insurance company and find out when the parts are available. He stressed the importance of ensuring vehicles are repaired properly the first time and suggested using the asTech Scan technology from Collision Diagnostic Services to identify issues with a vehicle. After being hooked up to the car, the vehicle is connected to

an OEM SCAN Tool in Dallas, Texas where they have factory-trained technicians who use OEM scan tools to provide relevant information. Another idea he shared is having an after-hours emergency number for customers. The recording should include information about whether the shop is open or closed; if it has a towing service and provide the phone number; the address of the shop as well as a nearby landmark; and where the key drop is.

Closing Ratio Anderson discussed the advantage of devising sales scripts to use when contacting customers. “The day after you deliver the vehicle, call the customer so you can ensure if there is a problem, you can head it off before the CSI survey is completed,” he said. He also recommended following up with customers after writing the estimate to ask if they have any questions as well as conducting sales training with staff. Anderson said that every good business does what he called “corporate espionage” to find out what their competitors are doing well and what they are struggling with. He encouraged attendees to conduct a SWOT analysis,

checking the Strengths, Weaknesses, Opportunities and Threats of their business as opposed to the competition. This may include looking at their Facebook page, website, online reviews, what OEM certifications they have and how they rank with insurance companies.

Cycle Time A year ago, Anderson said he would have recommended that in order to be successful in cycle time, a shop needed to repair vehicles at least two days faster than the market average, based on Enterprise’s Length of Rental ARMS Reporting. “Today, you need to be four days better than the industry average because everyone else has gotten that much better,” said Anderson. “Having a complete and thorough understanding of Enterprises ARMS reporting is critical to a shop’s success.”

Production In regards to production, Anderson said it will be necessary for shops to retain more labor gross profit in order to pay for OEM certifications and training. Otherwise, they won’t be able to afford it. “The body shop of the future is going to have to retain 65 to 70 percent Original BMW Parts

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gross profit unloaded without benefits,” said Anderson. This can be accomplished through bonus-based pay plans, a team system, a tiered approach and labor rate increases. Adding more non-included operations to an estimate will also help a shop’s sales mix, said Anderson. One of his recommendations to improve additional labor hours per estimate is to utilize Automotive Service Association’s (ASA) not-included chart. The free reference chart highlights the “non-included” operations when installing new replacement parts. He also encouraged the use of estimatescrubber.com, which analyzes an estimate and shows what NOT included operations may have been overlooked on the estimate. It costs $25 per month for unlimited use. “The shop of the future is going to have to focus on more repair versus replace opportunities,” said Anderson. “We’ve got to look at some repair opportunities when we know we can do a quality repair. More labor equals more gross profit.” Anderson recommended purchasing a nitrogen welder for plastic repair since insurance companies are currently tracking repair versus replace

on front and rear bumpers. In 2013, the industry average for rear bumpers was about 42 percent repair versus replace; front bumpers were 29.86 percent. That metric has since changed. Shops are now closer to 45 percent for rear bumpers and 32 percent for front bumpers. He encouraged shops to stay upto-date and educated as estimators. Some of the websites he has found helpful include www.boronextrication .com; www.drivealuminum.org; www .worldautosteel.org; and www.intlmag .org.

Finance & HR In order to be successful, data will continue to remain key. “Data is going to be very critical to you as an OEM-certified shop,” said Anderson. “If you don’t measure it, you can’t manage it.” The body shop of the future will use an accrual accounting system rather than cash, said Anderson. This means that they will adjust their work in process each month and reconcile prepayments with receivables. “Shops need to know how to manage cash flow and determine their ROI [Return on Investment],” said Anderson. He said that although he hopes he

SEMA and Auto Care Association Partner on Industry Job Board

The Auto Care Association and the Specialty Equipment Market Association (SEMA) announced a new partnership to support the Industry Job Board, www.autocarecareers.org and the recently-launched SEMA Career Center. The partnership creates a network between both job boards of available positions and resumes of qualified candidates in the auto care industry. The Auto Care Association recently also partnered with Babcox Media, combining www.aftermarket jobs.com and www.autocarecareer hub.com with the Industry Job Board. “As part of the Auto Care Association’s Job and Career Development Program, the Industry Job Board is quickly expanding to create a single industry-wide resource to find top talent,” said Bill Hanvey, president and CEO, Auto Care Association. “We are excited to continue to connect and share with other organizations passionate about recruiting the best of the best in the auto care industry.” “Finding qualified employees with specific skills and relevant work experience are top challenges facing

SEMA members,” said Zane Clark, director, education, SEMA. “The SEMA Career Center addresses this challenge and makes it easy for automotive employers to connect with job seekers that are best suited for their needs.” The Industry Job Board, a resource for both applicants and employers, is designed to be a central hub where auto care job seekers and job creators connect. The job board currently hosts hundreds of positions available today in marketing, finance, legal, H.R., information technology, logistics, sales, international trade, facility management, technicians and hundreds of other career specialties in the auto care industry. The upgraded website features tools to help companies recruit talent to the industry, including a custombuilt, interactive career accelerator featuring five industry segments, a comprehensive recruiting resource guide and the Industry Job Board. For more information, contact: Courtney Hammer at courtney .hammer@autocare.org or 301-6546664.

36 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

is proved wrong, he believes that parts price matching will no longer be available in a year or two because OEMS are realizing a decrease in their profits. “This system is not working,” said Anderson. “It is a band aid for an issue that is not being discussed.” It is for this reason he said parts discounts will continue to shrink. Therefore, he recommends shops focus on making more gross profit on labor. “If you want to maximize your gross profit, you need to focus on the 30-2020 sales mix to achieve the maximum gross profit,” said Anderson. This equates to 30 percent of sales coming from body, frame and mechanical labor; 20 percent of sales on paint labor; 10 percent of sales on paint materials; 36 to 38 percent on parts; and two to four percent on sublet. “If you hit this sales mix, you will make a 46 to 48 percent gross profit unloaded [without benefits], said Anderson. However, most shops are 26 to 28 percent body, frame and mechanical labor; 13 to 15 percent paint labor; 7 – 9 percent paint materials; 40 to 42 percent parts; and the remainder on sublet. This amounts to 43 percent gross profit. “If you do $100,000 a month in

sales, that three percent difference is $3,000. If you do $300,000 a month in sales, that is $9,000 additional money to your bottom line,” said Anderson. He suggested looking at the possibility of bringing in some of a shop’s sublet in-house. “If your sublet is more than two percent of your sales, you need to ask yourself, ‘what can I bring in-house?’” This might include looking at more repair versus replace opportunities; more non-included operations to bump up the sales mix; more refinish operations and if the paint materials percentage is low, an invoicing system. While taking steps to become a successful body shop in the future, Anderson recommended aligning yourself with people who will help you grow. “Surround yourself with people who are positive, not negative, and have the same vision and hope,” he said. “In my opinion, it’s a bright future in the industry,” said Anderson. “I don’t think our industry is doom and gloom. It’s one of the most exciting times I’ve ever seen in my life.” For more information, visit www .collisionadvice.com.

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National Associations with Chasidy Rae Sisk

Why WIN? Webinar Explains Why Everyone Should Be a WINner On Thursday, February 18, the Women’s Industry Network (WIN) hosted “Why WIN? An Introduction to the Women’s Industry Network” to explain WIN’s mission, how WIN engages women, why the industry needs WIN and how to get involved. The informative webinar was conducted by Michelle Sullivan and Mary Kunz, cochairs of WIN’s membership committee, who expressed the desire for all participants to learn something new about WIN. WIN was founded in 2006 by a small group of women who had made significant contributions to collision repair. They began the organization to support and encourage women in all segments of the industry. Sullivan explained that WIN provides great leadership opportunities through their Board of Directors and various committees, plus their annual educational conference offers plenty of developmental and breakout ses-

sions. WIN also awards scholarships for students and professionals, and recognizes exceptional women in the collision repair industry through their Most Influential Women (MIW) program. WIN is very involved nationally and engages in its targeted campaign through the association’s leadership, which is comprised solely of volunteers who donate their time and talents to growing the organization. There are a variety of ways to get involved with WIN, according to Sullivan. If members want to help advance the organization’s strategy and further its direction, they can join one of the following committees: scholarships, industry outreach, membership, communications, sponsorship, strategic planning, governance and conference planning. Kunz explained, “Most committees have a monthly call, but there are no required time commitments. It’s what you can contribute and where

38 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

your talents best fit. Joining a committee is the best way to engage with this organization and get the most out of your membership.” WIN also offers opportunities on their Board of Directors, and the organization is looking to bring new people and ideas in. The deadline for this year’s Board of Directors has been extended through the end of February. The deadline for scholarship applications has also been extended through the end of the month. WIN offers scholarships for high school students, as well as post-secondary/continuing education students to allow recipients to further their development and help women advance in the industry. Scholarship recipients receive WIN memberships, and some are selected to attend WIN’s annual conference where they’re given the opportunity to network with women in the collision repair industry. Schol-

arships recipients are mentored by MIWs and board members. WIN’s website also features an employment center for job postings and resumes. Sullivan noted, “There’s a lot of talent in this industry and getting involved with WIN helps industry engagement and improves retention.” Over the past few years, WIN has increased its visibility by attending a lot of national events. This year will be the first time WIN makes an appearance at AASP/NJ’s NORTHEAST Conference and Tradeshow. Kunz said, “WIN is looking to constantly be visible in the industry and really engage women.” WIN’s “There’s a Place for You” campaign focused on educating women about all the different opportunities in the industry and allowed them to open a dialogue about the various career paths available. As part of its efforts to create a recognizable brand, WIN has created brochures and other marketing

materials which are available to members for distribution. Sullivan and Kunz are proud of WIN’s MIW awards which they took over from AkzoNobel in 2013 to honor women who have “enriched the collision repair industry with their vision, leadership and commitment to excellence.” Nominations are collected each fall and then reviewed and selected by an independent third party; MIW honorees are acknowledged at the MIW Gala during WIN’s annual conference. “Why does the industry need WIN?” Sullivan asked. “What does the face of your business look like, and how is your organization positioned for growth? Looking at diversity and sustainability, we need an organization like WIN whose mission is to engage women. For years, shops have struggled with a shortage of technicians; our scholarship program sees a number of women entering that segment of the industry.” Sullivan continued, “Join WIN, join committees and encourage others to join. There are still people who don’t know about WIN, but membership is beneficial and provides great networking opportunities. Become a corporate sponsor or donate individu-

ally as a Friend of WIN to support our scholarship fund. Even better, attend WIN’s annual conference - we’re always looking for people to share their experiences!” Kunz said, “It’s a unique experience to be in a room filled with women from this industry. The camaraderie is great. I got hooked at my first conference and have been a member ever since. It’s been a wonderful opportunity to grow myself professionally and personally. Attending a WIN conference will serve you well.” When WIN was founded in 2006, the organization had 140 members. Thanks to their membership drive, they ended 2015 with 478 members, the highest number to date, which represents a 29 percent increase over 2014. Going forward, WIN plans to enhance its member profiles in order to focus conference sessions on specific segments of the industry. WIN memberships run from January through December and are available online for $75 annually. Kunz and Sullivan “encourage you to join and to spread the word about WIN.”

www.autobodynews.com

WIN Announces 2016 Educational Conference Content and Celebration of 10th Anniversary

The Women’s Industry Network (WIN) announced details of the 2016 Annual Educational Conference, scheduled to take place in Tampa, FL, May 2-4 at the Tampa Downtown Hilton. “Power of the Past-Force of the Future,” is the theme for the 10th annual conference. Olympian, Shannon Miller is the featured keynote speaker who will take main stage on May 3. Her message “The Gold Medal Mindset” will be heard by attendees from all segments of the collision repair industry. “I was there to see her claim the gold medal and now we will hear about her incredible journey to that professional accomplishment,” explained Yolanda Sandor, BASF, and co-chair of the Conference Planning Committee. Additional guest speakers include David Leuhr, Elite Body Solutions; Laurie Altman, VP 3M; Susan Lombardo, Sr. VP Vehicle Acquisitions – Enterprise Holdings; Collette Bruce, owner, Team Safety, LLC; Karen Fierst, principal, KarenOr Consultants; Jeff Peevy, president, Automotive Management

Institute (AMI), Kristen Felder, Engage Target Media and Mark Claypoole, chairman and CEO of Optima Automotive. In addition to the professional development that will be presented, attendees will also have an opportunity to participate in the annual WIN Scholarship Walk that benefits the WIN Scholarship Fund and hear from some of WIN’s founding members during a Q&A panel. The WIN Gala and Most Influential Women Reception will be held on May 2 to celebrate past recipients as well as the 2016 Most Influential Women Award Recipient, Michelle Sullivan, regional vice president of FinishMaster, Inc. Members registering before April 1 will receive a discounted rate of $400. For member registration after April 1, the rate is $450. Nonmembers may attend at a rate of $650 and attendance for the Most Influential Women Reception is $75 per person. For more information and to register, visit www.womensindustrynetwork.com.

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Lean Operations

How to Hold People Accountable with David Luehr

If you struggle getting people to do what you want them to do, it may be time to learn a few new accountability skills. Many collision shop leaders are frustrated that people seem to ignore them when asked to perform simple tasks such as picking up after themselves, or living up to quality standards. This disregard for the rules may come across to leaders as a lack of respect, and sometimes it could be, but very often these indiscretions are a result of insufficient leadership skills. There is a lot to know about motivating and keeping an engaged work force. Here are some tips that will get you started in the right direction and keep your team doing the right things in order to win:

Don’t assume your team knows what you expect Much of the frustration felt by my clients are brought on by themselves because they don’t have written standards. Standards take on a whole new level of seriousness when in writing. I highly recommend creating a simple written “playbook” to document how you want repeatable actions performed in your collision center. Once this information is in writing you can sit down with your staff and clearly communicate what the expectations are. Some of the best collision companies even ask their staff to take a short test Continued from Page 31

More Sales Taxes

“The larger the zero tax bracket, the more progressive the average tax rate is,” Cordato said. “That’s a way of making a flat tax progressive.”

Other tax and fee changes The budget will also bring a tax break for seniors and others who have high medical expenses. A tax deduction for medical expenses had been eliminated as part of earlier tax changes, and legislators heard lots of complaints when seniors did their taxes this year and learned they’d owe thousands more. But sales taxes aren’t the only area in which people will pay more under the new budget:

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

to prove they understand what is expected of them. Again, don’t make the assumption that your team knows what is expected of them, you have to overcommunicate what you expect.

Know how to hold an accountability conversation One of the things that leaders hate the most is, unfortunately, having those little talks with people that aren’t living up to expectations. Leaders need to learn to become comfortable being uncomfortable and go ahead and have that talk! If you have done a good job letting people know what is expected of them, these conversations are much easier to have. Especially if the standards are in writing. What makes these “coaching” conversations difficult is when the discussion is based on the arbitrary, such as “Dan, I don’t think you are communicating with your customers well enough.” The conversation is much easier and effective when you are explaining a gap in the employee’s current performance versus a known standard. “Dan, our company values excellent customer communication as you know, and you know our standard is to contact our customers every two days as outlined in our playbook. Dan, please explain to me why this behavior is not taking place?”

accumulated over the years at other body shops will translate into meeting the expectations at your company. This rarely works well! You have the choice to run your business or let the employees run it their way. Consistency also means that you have to quit turning your head the other way when standards are not being met. If you choose to keep stepping over your employee’s pile of tools and parts laying on the shop floor instead of correcting the behavior immediately, you will have a difficult time getting anyone to take you serious as a leader. Your job is to be a leader, not a buddy! Take back control of your business by setting clear expectations, and holding people accountable in a professional way! If your company would like help with leadership training or creating and documenting standards please contact us today. Visit www.elitebody shopsolutions.com for more information.

ing or auditing their systems and standards pay huge dividends. Many of the world’s fastest growing MSOs have found regular periodic audits to be the real secret sauce to standards being consistently met. Once deviations are discovered, you should provide immediate feedback through employee coaching or holding a company meeting to reinforce the standards. Again, you must over-communicate the standards and what is expected.

Why consistency is the key Most people actually prefer structure. Like children, many of us may not like being held accountable at first, but almost everyone learns to appreciate the consistency and healthy structure of a company that lets people know what they are supposed to be doing and how they should be doing it. Far too many leaders simply hire people and stick them in a position with the full expectation that all the experience they have

Inspect what you expect Many of my clients find that inspect● Division of Motor Vehicles fees will increase by about 30 percent, increasing revenue by about $153 million. The change will raise the cost of an eightyear driver’s license from $32 to $40. The standard registration fee for a private passenger vehicle will increase from $28 to $36 starting next July. Some DMV fee hikes will start next month. ● Parents of newborn babies would pay more for a required screening. That fee will increase from $19 to $24 starting Oct. 1. ● Community college tuition will increase from $72 to $76 per credit hour for residents and from $264 to $268 for non-residents, starting in the spring semester. We would like to thank newsobserver .com for reprint permission.

40 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 41

Shop Strategies with Stacey Phillips - ASSISTANT EDITOR

NY Body Shop Owner’s Weekly Radio Show Aims to Educate and Entertain Customers Nick Orso’s Body Shop and Service enforcement. We talk about school bus safety and DWI (driving-while-intoxiCenter in Syracuse, New York will celebrate their 62nd anniversary cated) awareness. We have won awards for our participaon April 15. Autobody News spoke to Mike Orso, the tion and effort to promote owner of the shop, about the highway safety, and stop radio show he has run for the DWI programs, the “Move past five years and his recent Over Law” campaign, workinvolvement as president of zone safety, texting and agthe NYS Auto Collision Techgressive driving risks. Mike Orso, owner nicians Association. Orso also We have business people of Nick Orso’s that want to talk about their own’s Nick’s Garage, Inc. Body Shop and Service Center commitment to consumers and What prompted you to and president of NY best business practices. We begin recording the State Auto Collision have an insurance agent, acciTechnicians Nick Orso radio show and dent attorneys, political candiAssociation can you tell us about the topdates, law enforcement, NYS ics you cover? State Police, county Sheriff’s departments, police departments, the district atWe felt we had more to say and torney’s office, doctors and health care the 60-second radio spots we professionals and officials, highway were doing needed to tell the rest of safety experts, restaurants and delis, inthe story, to be more effective. vestment bankers, home builders, funeral We have guests from all areas of directors, tire dealers, service garages, business and legal, political and law damage appraisers, senators and assem-

Q: A:

blymen, college sport coaches, coast guard, travel agents, and heating and air conditioning. March 5th marked our 257th show.

What type of advertising do Q: you focus on and what are the main benefits you have found?

Wreck Check Post Repair Inspections, an in-house 40 car-truck-SUV rental fleet, in-house council, advertising, radio shows, 100-car capacity, and NO DRP conflicts of interest.

We do consumer-based informational commercials. Most A: people know we can repair a damaged

car and our commitment to repair integrity. What they don’t know is their rights after a claim. AND that’s what we tell them. Help is available.

What are the primary areas of Q: focus at your shop and what environmental initiatives have you

taken?

Our resume includes a list of A: eight manufacturer-sponsored certifications. Our services include:

Nick Orso’s collision repair shop is located in Syracuse, New York and was established in 1954

In addition to using waterborne paint, LED lighting and a modulating air system, we completed one of the largest installations of solar power electrical-producing panels in Central New York in 2011. We are Syracuse’s only solar-powered body shop. We get

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80 percent of our electrical energy from the sun. There are 280 solar panels on our roof. We are the most environmentally-friendly body repair shop in upstate NY. We received a New York State Assembly Citation from the legislature in November 2012 for our efforts in clean energy as the largest private solar installation in the Syracuse area.

Can you update us on the $3 Q: million lawsuits that were filed in 2012 against insurance companies

they do not know the intricacies of automobiles or have accidents often enough to be experienced. We do it so that we can repair the vehicle to the best of human ability while settling the cost of repairs efficiently – IF the insurance company involved is inclined to negotiate and settle the claims.

citing capping and short pays?

I am at liberty to say: A: Most of the suits were “resolved.” There are a few? that are still in

litigation. We now use in-house council that handles the day-to-day collections and interacts to negotiate and settle repair costs on claims.

What is the assignment process Q: you use to collect short pays? We take assignments from consumers who authorize us to act A: on their behalf to negotiate a repair

settlement. Most consumers are illequipped to handle repair claims since

In 2012, Orso received a New York State Assembly Citation from the legislature for “unparalleled work ethic.” Orso was recognized for his shop’s accomplishments, which included the installation of solar panels in 2011 (l to r) Assemblyman Bill Magnarelli, Mike Orso and Assemblyman Sam Roberts

Some companies, however, will not negotiate and use a take-it or leaveit offer. Those cases are typically handled by our attorney. We explain to our customers that some of the companies are not acting in the consumers’ best interest. We then have been putting our

customers in touch with independent agents who sell insurance for companies we know will settle claims and treat customers fairly. We average four to five customers a week? who are changing companies, dropping the companies that typically will not settle claims fairly-promptly or that show any anti-consumer tendency. We constantly hear that they save money, get more insurance coverage and it’s from companies that will settle claims fairly. I think it sends a message consumers will not stand for behavior that gives them less than they had prior to the loss.

What is the importance of Q: being part of an association and what is your current involvement with the NY State Auto Collision Technicians Association?

This is my 16th year as president of the NYS Auto Collision Technicians Association. I feel the most important part is the sharing of information and experience. The cohesiveness of a committed group of individuals is much stronger than a single person trying to do it alone. During our annual Lobby Day, we

visit the NY State Capital, legislators, NYS Insurance and Financial Department and the NY Attorney Generals office. We keep them apprised and invested in our efforts to best serve consumers.

Is there anything else you Q: would like to share with readers?

We have found that being comA: placent and accepting whatever is offered has no reward. Most of the

drive-in estimates we see are 100 to 1,000 percent below what it takes to properly repair a vehicle. We have thousands of loyal customers built from over 60 years of collision industry knowledge and experience. We are a tough competitor.

The Nick Orso Radio Show plays Saturdays on 105.9 FM from 9 to 10 a.m. EST. It streams live during show times at http://www.therebelrocks.com/thenick-orso-show/ Mike Orso can be reached at 315471-8521. For information about Nick Orso’s Body Shop and Service Center, visit nickorso.com, and on Facebook and Twitter.

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Historical Snapshot

—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.

Mike Anderson in 1996, Incomplete Estimates, Feather Prime and Block, PartsTrader with John Yoswick

20 years ago in the collision repair industry (April 1996) “We are our own worst enemy. Every day I try to collect for color sand and buff or other procedures, only to be told that now one else charge for them. You may say I am a fool when I tell you that I believe insurers when they say this, but you are a bigger fool if you do not believe them. This industry is made up of cowards, people who talk the talk but don’t walk the walk. Wise up. Insurance companies are only going to pay for what they are asked for or what the industry demands. “State Farm is not necessarily our industry’s worst enemy. Take payment of claims, for example. Does State Farm stretch your receivables out over 30 days? I’m not saying State Farm pays better than all other companies, but let’s give credit where credit is due. “If you want to get angry with someone, get angry with the guy down the street who doesn’t charge for the items you do and should charge for. The guy who tapes up door handles, doesn’t know the P-pages, doesn’t know his cost of doing business, doesn’t charge for colorsand and buff. “We need to clean up our act and look inward for solutions to our problems, not outward where place blame on a third-party.” —From an April editorial in Hammer & Dolly by Mike Anderson, at that time the second-generation owner of a body shop in Virginia and the president of the Washington Metropolitan Auto Body Association. Anderson sold his collision repair business in 2010 and founded Collision Advice, a training and consulting firm. Among his projects: Quarterly “Who Pays for What?” surveys asking shops about how frequently they bill for and are paid for not-included labor operations.

15 years ago in the collision repair industry (April 2001) A call to define some total loss vehicles as ‘unrepairable’ was among the resolutions passed at the National Industry Issues Forum held recently in Minneapolis, MN. The event, sponsored by the Society of Collision Repair Specialists, was designed to give collision repair-

ers an opportunity to discuss issues “without outside interference or fear of retribution” from other segments of the industry that participate in most other industry events and discussion. Shop owners and representatives of SCRS state affiliate associations attending the event voiced support for three “resolutions” created during the meeting. Attendees unanimously voiced support, for example, for efforts to declare total loss vehicles “unrepairable” and salable only to dismantlers if they are less than 8 years old and have damage exceeding 100 percent of their value. Auto recycler Herb Lieberman said his industry has introduced such legislation nationally but the bills have never moved out of legislative committees. “Of the vehicles declared total losses and removed from repair facilities to salvage pools and sold as total loss vehicles, our industry is only purchasing 30 percent of those vehicles, and that has an adverse effect on all of us,” Lieberman said. In 2001, Nebraska He and others at shop owner Boyd the meeting pointed Dingman said out that the current incomplete initial estimates impact situation results in cycle time and higher prices and overall costs for lower availability shops and insurers, and quality of salessentially advovage parts; surgical cating for the process known stripping of vehitoday as “blueprint- cles, VIN swapping ing.” Dingman’s and other fraud; infamily now opersurers re-insuring ates four shops poorly-rebuilt total purchased by unsuspecting consumers; and high salvage values that result in more vehicles being totaled. National Industry Issues Forum attendees also urged insurers to consider how the accuracy and completeness of initial estimates impact cycle time and overall shop and claims costs. “We have some insurers that ask us not to write a complete estimate,” said Boyd Dingman, owner of Dingman’s Collision Center in Omaha, NE.

44 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

“They say, ‘Let’s not put blend time on there,’ or ‘Let’s not put R & I trim on there.’ Then they want cycle time. The car comes in and we don’t have blend time or the R & I time on the sheet. All of a sudden we went from the 15-hour job to a 25-hour job. That certainly slows our cycle time down because we didn’t schedule for 25 hours. They’re hurting our cycle time by asking us to write a short-sighted estimate.” —As reported in The Golden Eagle. Little has changed in terms of total loss vehicles in the 15 years since the Forum was held, but shops and insurers have for the most part come to realize the value of “blueprinting,” fully documenting all vehicle damage up front to reduce delays and expense created by the supplement process. Dingman continues to operate four shops in Nebraska. Lieberman is an industry liaison for LKQ Corporation.

10 years ago in the collision repair industry (April 2006) The “gap” has been defined. One of the long-simmering debates among shops and insurers involves when body work ends and paint work begins. The transitioning processes, which is called different things including “feather, prime and block,” are a frequent source of conflict in terms of whether and how shops should be compensated. The Collision Industry Conference (CIC) Estimating Committee has spent much of the past year holding panel discussions and working to craft a written statement that “defines the gap” in order to try to bring some clarity to the issue. At the CIC held in Portland in April, the committee received a nearly unanimous vote in favor of its ninth version of the feather / prime / block explanation. See Historical Snapshot, Page 46

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 45

Continued from Page 44

Historical Snapshot

“The repair process associated with damaged painted body panels typically involves multiple operations: body repair, feather, prime, block, and refinish,” the statement reads. “The body repair process includes metal finishing and/or the use of body fillers to return the body panel to its undamaged contour. The repaired area is finished to 150 grit and free of surface imperfections. Feather, prime and block are not-included refinish operations that complete the process from 150 grit to the condition of a new undamaged panel. The refinish process starts at the condition of a new undamaged panel and is outlined and documented in printed and electronic time guides. The body / paint labor and materials necessary to prepare the repaired area from 150 grit to the condition of a new undamaged part is a valid and required step in the process. The labor and material allowance for these operations requires an on-the-spot evaluation of the specific vehicle and damage.” —As reported in The Golden Eagle. Despite the adoption of this

definition, “feather, prime and block” continues to be a matter of some debate within the industry. A 2015 “Who Pays for What?” survey (www.collision advice.com/survey) of more than 900 shops nationwide found that two-thirds of them reported receiving body labor, rather than paint labor, for this operation—yet less than 14 percent said this work was performed solely by body technicians. In fact, well over half said the operation is performed solely by the paint department.

5 years ago in the collision repair industry (April 2011) State Farm says in the coming months it will develop a new electronic parts ordering system for its Select Service shops. In a video message to those shops, State Farm’s Gregg McDonald said the insurer will work with all segments of the industry to develop a system to “reduce the amount of time and effort needed to search for, source and order all part types,” and “to give suppliers a better view of the process, and access to complete parts orders.” McDonald said that the system will include a review tool to allow shops and vendors to provide feedback on the parts ordering experience.

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CREF and Akzonobel Sustainability Grant

“Supplier choice and decisions regarding which parts are best suited for the individual repair will remain in your hands,” McDonald tells Select Service shops in the video. In 2009, State Farm halted an electronic parts ordering test it had rolled out in California and Indiana, saying it had no plans to implement such a program nationally, but that it had found that electronic parts ordering “has value.” The Select Service agreement that participating shops must sign gives the insurer the right to require electronic parts ordering. —As reported in CRASH Network (www.CrashNetwork.com), April 11, 2011. The system State Farm was referring to was PartsTrader, which it began requiring Select Service shops to use in 2012, rolling it out nationally by mid-2014.

For the third year, the Collision Repair Education Foundation (CREF) and AkzoNobel are collaborating to offer the Sustainability Challenge Grant for collision repair programs in secondary and post-secondary schools throughout the US. The application is part of CREF’s Ultimate Collision Education Makeover grant, and the deadline for both grants is June 3. Schools are invited to submit proposals for applying continuous improvement and sustainability principles that improve the processes in the school's body shop or improve the way the shop interacts and impacts the community. Projects are to be driven by teams of students with the instructor serving as a mentor. Winning schools will receive funding to implement their proposed ideas and report on the success of their projects. Clark Plucinski, CREF executive director said, “Since the program began three years ago, over 200 collision students have participated in it. Their ideas about improving sustainability are very forward-thinking and have definitely made an impact on their program, school and community.”

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IABA February Meetings Address Changes to FLSA by Chasidy Rae Sisk

In February, the Indiana Auto Body Association (IABA) held five chapter meetings to present upcoming changes to the Federal Fair Labor Standards Act (FLSA). These presentations were delivered through the association’s Virtually Live (VLive) training initiative. According to IABA Executive Director Tony Passwater, these meetings were held to discuss “new regulations coming from the federal government over the next two to four months. The government will be making some major changes to the FLSA.” Currently, an employee must make a salary of $23,000 to be considered exempt, but the government is discussing raising that requirement to $50,000. Passwater predicts, “Shops will need to convert employees to hourly wages, making them eligible for overtime, or raise their salary over $50,000. Even if an employee makes the minimum amount, they’re still unlikely to pass the duty test that requires them to have direct reports to qualify for exempt status; 90% of positions within the collision repair industry don’t meet this requirement.” Passwater also discussed the importance of employee handbooks, re-

minding attendees that it’s not complete once it’s put together. “It must be legally correct, and shops must update their handbooks regularly because they will be held to it. Most importantly, the handbook must include arbitration clauses, or court costs could rise into the hundreds of thousands.” In addition to qualifying as a service business, a shop must pay its employees at least one-and-a-half times the minimum wage for them to be exempt. Shops must also require employees to clock in and out, even if they work on commission. “Many shops don’t do that which can allow employees to go to the labor board and say they’re working 5060 hours weekly,” Passwater warns. “The employee is always right if there’s no documentation.” Passwater also talked to attendees about protecting themselves in terms of liability, and he predicts that these new requirements will cause much concern in the next few months. The New Albany chapter held their meeting on Monday, February 8 at Tuckers, and the next day, the Bloomington chapter’s meeting took place at the Crazy Horse Food and Drink Emporium. The Fort Wayne chapter held their meeting at the Lucky Moose on Wednesday, and on Thursday, February 11, the Indiana NW

chapter held a morning meeting at Gino’s Steakhouse in Merrillville, IN, with the Indianapolis chapter holding their meeting that evening at Rick’s Boatyard and Café. Passwater said attendees responded well to the information shared, but attendance fluctuates drastically. While he believes there’s a lot of value in attending meetings and networking with peers, it is not necessary for shops to receive the education they need. The VLive concept was created because of the difficulty of finding speakers to travel to five locations in one week, so Passwater has begun interviewing industry speakers remotely or acquiring permission to use content which can be distributed electronically to IABA’s five chapters. Since meetings generally last no more than two hours, the VLive system also contains an online training portal that is free to members. Here, Passwater posts the full content of the educational sessions, giving industry professionals a chance to learn more at their convenience. Non-members ca purchase access to this useful information. Passwater says, “We want to create more value for our membership. We’re trying to get this information out there, regardless of attendance, and I see virtual learning as the future for all of IABA’s meetings.”

Rotary Lift Introduces Video Series

Rotary Lift is drawing on its more than 90 years of experience designing and manufacturing vehicle lifts to answer frequently asked lift operation, maintenance and installation questions in a new video series dubbed “90 Second Know How.” These short videos cover light-duty and heavyduty lifts, including two-post lifts, four-post lifts and inground lifts. “Rotary Lift’s customer service team gets more than 190,000 phone calls a year,” says David Fischmer, Rotary Lift marketing director. “Our customers are busy, and when they need help, time is money. But when a customer isn’t standing at the lift when calling, verbal explanations can be difficult to convey and hard to understand. This new video format is like being in the customer’s shop to demonstrate the answer—in just 90 seconds.” The first six videos are online, with additional releases scheduled monthly. The videos are currently available at: www.rotarylift.com/ training-videos. To learn more, contact your local Rotary Lift distributor, visit www.rotarylift.com or call (800) 640-5438.

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The Legal View

A Primer on Diminution in Value Claims with Gary Wickert

One of the recurring questions Matthiesen, Wickert & Lehrer, S.C. (MWL) is called on to answer involves when and under what circumstances the insured suffering automobile property damage, or his or her subrogated automobile insurer, may recover for diminution in value of a damaged automobile. This article is intended to provide a global answer to many of the questions we have been asked on this subject. When a vehicle is damaged in an accident and then repaired, the resale value may be less than a comparable vehicle that has not been damaged. In other words, the damage results in a reduction or “diminution” in the market value of the vehicle, even after competent repairs have been completed. An insured’s claim for this reduction in value may be made against a third party that negligently caused the damage to the insured’s vehicle, or it may arise from a first-party claim against the physical damage coverage under the insured’s own automobile policy. The term “diminished value” can be confusing. There are three types of diminished value: 1. Immediate Diminished Value: This is the loss in value that results immediately after an accident before any repairs are made. It is the difference in market value immediately before and after an accident caused by a negligent tortfeasor. In many states, this is the measure of damages for injury to personal property. 2. Inherent Diminished Value: This refers to the loss in value of a vehicle that remains after it is completely and professionally repaired. It is the loss of value that results from the simple fact that the vehicle has been in an accident. This type of diminished value is also known as “stigma damage.” Given two identical vehicles on a car lot, the one which hasn’t been involved in an accident is preferable to the one which has been damaged and repaired. 3. Repair-Related Diminished Value: This refers to the additional loss in value to a vehicle which results from incomplete or poorly-performed repairs. It could include simple cosmetic damages that remain after repair or major mechanical or structural deficiencies.

The most common and widelyused form of diminished value is inherent diminished value. There are two types of inherent diminished value claims, both of which are discussed in this article:

1. First-Party Claims: These are claims made by the vehicle owner/policyholder against his or her own insurance company to recover the difference in the value of the vehicle before the collision and value of the vehicle after the damage caused by the collision had been repaired. This type of claim is usually governed by contract law and the terms of the insurance policy. When a vehicle is damaged, a policyholder generally expects to be “made whole” by its first-party property insurer, but an insurer is legally responsible only to pay according to the terms of the policy.

2. Third-Party Claims: These are claims made by the owner of a vehicle against a third-party tortfeasor (person other than the insured and insurer) for negligently causing damage to the owner’s vehicle. This type of claim is governed by tort law.

First-Party Claims With regard to first-party claims, the Insurance Services Office (ISO) contract language (specifically the Limit of Liability Condition) arguably appears to cover only the Actual Cash Value (ACV) of the damage or the actual cost to repair the damage. There is often nothing in the policy language that would contractually cover any reduction in market value, even if the insured were able to prove the amount of reduction in value. On the other hand, the policy clearly allows the insurer to deduct for “betterment” or depreciation, although the burden of proof is on the insurer to demonstrate such depreciation or betterment. In physical damage claims, the policy allows the carrier to deduct for an “improvement” in value (i.e., betterment) due to repairs with newer parts, but will not compensate the insured for a reduction in value due to the same accident. There is a disparity among the various states regarding recovery of diminution in value in first-party cases.

48 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

Gary Wickert is an insurance trial lawyer and a partner with Matthiesen, Wickert & Lehrer, S.C., and is regarded as one of the world’s leading experts on insurance subrogation.

Insurance claims professionals should be aware of when and how the laws of each state deal with diminution in value. Georgia is in the minority of states which require insurers to pay the diminished value as well as the cost of repair of a vehicle even if the insured does not make a claim for the diminished value.

Third-Party Claims In third-party claims for property damage to automobiles that are the result of a collision for which a third party was at fault, the measure of damages is traditionally, but not always, the difference between the market value before and after the collision (“diminution in value”) or the reasonable repair value, whichever is greater. Such third-party diminution claims have generally been found by the courts to be covered by automobile insurance since the measure of damage in tort claims (which the insurer promises to pay) is the difference in the value of the property before

the loss and the value of the property after the loss. The Restatement of Torts § 928 states as follows: Where a person is entitled to a judgment for harm to chattels not amounting to a total destruction in value, the damages include compensation for: (a) the difference between the value of the chattel before the harm and the value after the harm, or at the plaintiff’s election, the reasonable cost of repairs or restoration where feasible, with due allowance for any difference between the original value and the value after repairs. It should be remembered that diminution in value of a vehicle after repairs have been conducted can be difficult to prove and, in some states, the burden is quite high. In some cases it may be necessary to actually sell the vehicle in its damaged condition in order to establish its post-crash market value or, at a minimum, engage an expert appraiser to provide a detailed report. See Primer on Diminution, Page 50

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 49

AkzoNobel Reveals 2016 Distributor Council

AkzoNobel’s Vehicle Refinishes announced on February 24 the members of its 2016 Distributor Council. The Distributor Council is a legacy activity of Vehicle Refinishes that spans its 30-year history in North America. Over this period of time, Vehicle Refinishes has looked to advisory bodies drawn from its distribution network to assist AkzoNobel in establishing frameworks for business practices as well as provide inspiration for creating new polices, products and programs. Those advisory bodies have gone under various names; however, the purpose of the group has remained constant….provide counsel.

Council Members are: Paul Fus – PF3 Paint Supply, Wixom Michigan Robbie Brinkley – C&D Auto Paint & Body, Thomasville, Georgia Doug Richau – Auto Color and Industrial Supply Peter Kilkenny – Providence Lacquer & Supply Centre, Cranston, Rhode Island Layla Maus – Gladwin Paint, Austin, Texas Kim Snyder – Body Parts Store, Inc. Des Moines, Iowa Peter DeLuca – Industrial Finishes

& Systems, Inc., Salt Lake City, Utah Don Treschak – Treschak Enterprises, Ltd., Welland, Ontario “The council, comprised of eight representatives throughout North America, is a visible and proactive sign that AkzoNobel’s Vehicle Refinishes business in North America is dedicated to distribution as our primary method of going to market,” said Dave Recknagel North America customer services manager. “As a result, we are constantly striving to innovate. This includes Go-To-Market business models which ensure that we are engaging, evolving and advancing practices and processes that enhance current relationships as well enable growth and expansion to create new.” Council members are asked to serve as ambassadors to other members of the AkzoNobel distribution network within specific geographic market sectors to ensure that information is received, delivered and comprehended in as equitable a manner as possible. The council physically meets three times a year with intermittent conference calls to help bridge time gaps or address critical and immediate issues. For information, call Bill Orr at 770- 441-8973.

Recent Poll Finds Tie Between Car Driven and Presidential Candidate Supported Prius owners were more likely to support Ted Cruz and Hilary Clinton than the general population, while Dodge owners favored Donald Trump, and Honda Fit and Subaru Forrester enthusiasts “Feel The Bern,” according to data generated by car-shopping site BestRide and nationally syndicated radio program CarTalk. The findings stem from a poll of more than 10,000 respondents, who were asked what car they drive and which presidential candidate they backed. In a report issued February 23, the following results were determined: Toyota Prius owners were 40% more likely to support Clinton than the general population. Prius owners were 126% more likely to support

Continued from Page 48

Primer on Diminution

A comprehensive summary of how first-party and third-party inherent diminished value claims are treated in all 50 states can be found at www .claimsjournal.com

Cruz than the general population. Dodge owners favored Trump 50% more than the general population. Bernie Sanders and Clinton supporters registered the highest EPAestimated fuel mileage, tied at 28.5 MPG. Republican candidates had the lowest average, with Trump supporters at just 23.6 MPG, and Marco Rubio and Cruz-backers tied at 24.7. As for highest MSRP, supporters of Green Party candidate Jill Stein drive cars averaging almost $40,000. They’re also the least likely to drive what most Americans do, with a paucity of Honda Accords, Ford Fusions and Toyota Camrys. Among electric car owners, 86% of responses supported a Democrat and 14% supported a Republican.

Gary Wickert is the author of several subrogation books and legal treatises and is a national and international speaker and lecturer on subrogation and motivational topics. He can be reached at gwickert@mwl-law.com. Thank you to the Claims Journal for permission to reprint this article. Original BMW Parts

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2016 Second Quarter Training Schedule Announced by The Martin Senour Company

The Martin Senour Company announced its 2016 second quarter training schedule, with courses running from April 19 to May 19. Training courses emphasize painter certification and maximizing shop profits, and will be held at training facilities nationwide. Martin Senour Automotive Finishes Director of Sales Jeff Hartl noted the brand’s training sessions are designed to help shop owners, managers, and technicians better execute environmentally-responsible practices, as well as improve their repair techniques and knowledge of today’s new innovative painting systems – particularly the brand’s popular Pro//BASE™ refinish system. In addition, customized classes are being held for NAPA Jobber professionals on specific Martin Senour product and process knowledge to help them better service to their NAPA collision shop customers. In particular, Martin Senour professionals will teach the following courses during the second quarter of 2016: ● Color Adjustment and Blending ● Fleet FPG

● Jobber Level 1 ● Painter Certification ● Pro//BASE™ Refinish System Painter Certification Training Schedule: Atlanta // 04/19/2016 // Painter Certification // 3days

Atlanta // 04/26/2016 // Color Adjustment and Blending // 3 days

Atlanta // 05/03/2016 // Jobber Level1 // 3 days

Chicago // 05/10/2016 // Jobber Level 1 // 3 days Chicago // 05/16/2016 // Color Adjustment and Blending // 3 days

Chicago // 05/19/2016 // Pro//BASE™ Refinish System Painter Certification // 2 days Dallas // 05/02/2016 // Fleet FPG // 3 days

For information, visit www.martinsenour-autopaint.com or call 1800-526-6704.

Sherwin-Williams Automotive Finishes 2016 Second Quarter Training Schedule

Sherwin-Williams Automotive Finishes announced its second quarter 2016 collision repair industry courses taking place nationwide at training sites from April 4 through June 27. Participants will learn through a combination of classroom, digital and hands-on settings at various metropolitan Sherwin-Williams Automotive Finishes training centers, according to Rod Habel, Sherwin-Williams Automotive Finishes director of training operations. “In today’s constantly changing industry, training has become more important than ever for a customer to be successful in business,” Habel says. “For instance, with today’s new factory finishes, our Color Adjustment and Blending class is a great way for technicians to stay ahead of the curve.” He also noted that special hands-on, paint and processes application-based courses will be offered during the second quarter featuring the brand’s AWX Performance Plus™ Waterborne Refinish System, as well as painter certification classes. 2016 Second Quarter Training: Atlanta / 04/04/2016 / AWX Performance Plus™ / Waterborne Basecoat

Painter Certification / 3 days

Atlanta / 05/10/2016 / Painter / Certification / 3 days

Atlanta / 05/17/2016 / Color Adjustment and Blending / 3 days

Chicago / 04/11/2016 / Painter Certification / 3 days

Chicago / 04/27/2016 / ATX™ Refinish System Painter Certification / 2 days

Chicago / 06/27/2016 / Color Adjustment and Blending / 3 days

Dallas / 05/10/2016 / Color Adjustment and Blending / 3 days Dallas / 06/27/2016 / Painter Certification / 3 days

Reno / 04/11/2016 / AWX Performance Plus™ Waterborne Basecoat Painter Certification / 3 days

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 51

Tsunami Compressed Air Solutions Launches The Rove

Tsunami Compressed Air Solutions, a company that specializes in providing compressed air filtration and dryer products, announced a new product in its line of clean air solutions. The company, based in Minnesota, said The Rove was created to provide the industry with a versatile filtration and drying system that can be easily wheeled across a shop or transported to another location where dry air is required. “Its unique quick-connect design makes the system extremely user friendly and provides waterborne-ready air for point-of-use applications,” said Steve Thompson, sales manager, PBE. He said that depending on the facilities air consumption, The Rove can provide down to -80° dew points for the entire facility. Developed for release in March of 2016, Steve Thompson, said that The Rove is changing the way body shops deliver dry air to their applications. The company’s other products include the Ultra Drying System, Moisture Minder Automatic Drain, and Ultra-flo Spray Hose. For information, contact Chase Marshall, cmarshall@gosuburban.com, 800-782-5752 or www.tsunami.us.com.

Portacool Introduces New Jetstream™ Coolers

The new Portacool Jetstream™ series of portable evaporative coolers is engineered to generate airflow and provide cooling options for a variety of hot working environments. The Portacool Jetstream™ 240, 250, 260 and 270 are equipped with KUUL Comfort™ evaporative media to provide maximum cooling comfort, according to a company press release. Available in four sizes, there is a Jetstream portable evaporative cooler option that ranges from 1,125 to 5,625 square feet. Some of the features include: ● Equipped with KUUL Comfort™ evaporative media, the highestquality evaporative media available and made in the USA exclusively for Portacool products. ● Liquid level indicator with automatic pump shut-off ● Large drain allows for easy, effective cleaning ● Built-in handles for easy mobility; heavy-duty casters ● Comes with Portacool Protect™ lifetime warranty on evaporative cooler housing against manufacturing defects; three year warranty on all electrical components Visit www.portacool.com.

Larson Electronics Releases Two New Products

Larson Electronics recently announced the release of a 120-watt self-contained LED light tower. The WAL-BP-3XLED-CPR rechargeable LED light tower from Larson Electronics light assembly consists of three light heads attached to a circular bracket and center support.

Larson LED Strip Light

“This new portable light tower is a self-contained lighting solution designed to be easily deployed for applications such as emergency rescue, fire, police, and utility maintenance,” said Rob Bresnahan, CEO of Larson Electronics. “For storage and transport, the light assembly and tower can be stored within the wheeled case, aiding in mobility and providing operators with a compact lighting solution when storage space is of the essence.” Larson Electronics also announced the release of a four-watt

Class 1 Division 2 LED strip light equipped with a 20-foot cord terminated with a standard two wire flying lead. The HAL-6-IPS-LED-20 hazardous location LED strip light from Larson Electronics is designed for applications where Class 1 Division 2 compliance is required. “Featuring a low profile design, this fixture provides optimal light output for applications requiring hazardous location classifications,” said Bresnahan. “The adjustable moun-ting brackets make this hazardous area LED light versatile and is a perfect solution for applications with common exposure to wetness or dusty conditions.” To learn more about Larson Electronics, visit www.Larsonelectronics .com or call 1-800-369-6671. Larson Electronics will be attending the 2016 OTC show in Houston, Texas from May 2-5. Visit them at booth 6716 to inquire about their lighting solutions for many industrial applications.

52 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

Mirka USA Introduces Aquastar® Abrasive

Mirka USA recently introduced Aquastar® to their abrasives product line. Aquastar is a film abrasive providing flexibility, and durability for hand sanding, either wet or dry, accoding to a company press release. Aquastar® was developed with a pattern consisting of multiple abrasive zones surrounded by interconnected channels. This channel system provides flexibility while minimizing the amount of water used in the sanding process, allowing debris to flow freely away from the abrasive, according to a company press release The pattern design also allows Aquastar® to be used in any direction. Aquastar® can be used for wet sanding of clear coats and primers, automotive OEM applications, mold and plug sanding in Marine applications, dry sanding small areas and spot sanding. For more information, visit: www .mirka.com/en-US/us/

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Nviro-Tech Launches Paint Facts Displays

Nviro-Tech, LLC has launched eco-tools and custom training and education programs for the collision industry. “Collision Paints Facts” Office Shop Display, available in 3 sizes: ● 11” X 17” framed wall mount model ● 8.5” X 14” table/desk model with plexiglass stand ● 6” X 9” table / desk model with plexiglass stand The Collision Paint Facts Office Display was created in 2015 by Michael Mettinger to educate customers on color matching. It explains to the customer that the shop is responsible for bumper and trim color variances and how to remedy the problem before it begins. Nviro-Tech, LLC also provides the following products and educational tools: ● 6H Source Rule Compliance ● EPA Painter/Refresher Compliance ● Customized Shop Curtains ● CTR “Cycle Time Reduction” Inflatable Spray Booths Contact Matthew T. Mettinger, mattm@nvviro-tech.com, (561) 3365463.The source for timely

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Axalta’s Custom Finishesbmwusa.com Calendar Competition

Axalta is once again on the hunt for the very best in custom cars to feature in its annual Custom Finishes Calendar. Collision repair professionals, hot rodders and artists compete to appear in the custom calendar that Axalta Coating Systems has produced annually since 1993. If your car was painted with Axalta’s coatings, it might just

make the cover. Axalta is looking for motorized passenger vehicles including automobiles (imported or domestic), motorcycles and aircraft or watercraft that are finished with Axalta’s custom Cromax, Nason, Spies Hecker, Standox brands, or with Hot Hues products. The Axalta Custom Finishes 2016 Calendar Competition officially began at 12:01 a.m. EST on Monday, March 7 and ends at 11:59 p.m. EST on Tuesday, May 31. Entrants must own or have finished the vehicle they enter into the competition

and must provide two photographs of the vehicle. To enter online, visit the contest website, then select “Call for Entries,” and complete the registration Original BMW form in itsParts entirety. Properly submitted entries that meet all eligibility requirements are subject to the official rules of the contest. Judging will be based on “best use of color” includbmwusa.com ing finish quality, technical difficulty, design originality and artistic merit. Twelve winners will be selected on or before Monday, August 1. OriginalOne BMWgrand Parts prize winner will receive $1,000, a complimentary professional onsite photo shoot of the winning vehicle, cover position on the 2016 Custom Finishes Calendar, one calendar page highlight and 35 bmwusa.com copies of the 2016 calendar. Eleven first place winners will each receive $500 cash, a complimentary professional onsite photo shoot of the winning vehicle, one in-calendar page position and 35 copies of the 2016 Calendar. For more information on Axalta’s Custom Finishes 2016 Calendar Competition, including how to enter, visit axaltacalendars.com. The official rules are available at axaltacalendars.com/ competition/content-conditions.php.

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Klaus Froehlich, BMW’s board with Mercedes Benz and Volkswagen member responsible for research and to buy Nokia’s HERE, a digital map development, told a remaker company. The porter from Reuters at idea was to create a platthe Geneva Auto Show form for cars to share North BMW that “it is aCounty core compedata on road conditions. tence to have the most BMW has already reintelligent car.” cently hired 200 people During the interto work on digital innoview,www.ncountybmw.com Froehlich devation at its facility in (800) plans 564-8222 scribed for an Chicago. Even with overhaul of the comthese hires, BMW will pany. This includes an likely need to increase its enormous boost in the number of soft- knowledge base substantially to comwareNorth and County computer pete with others in the autonomous veBMWprofessionals on the payroll. Currently, software engi- hicle space. neers make up just 20 perAccording to the report cent of 30,000 people that filed by Reuters, Froehlich work on research and develindicates that the company www.ncountybmw.com opment BMW. needs to improve its knowl(800)for 564-8222 “If I need to get to a edge of cloud computing ratio of 50:50 within five and analysis of data gathyears, I need to get manered by the vehicle’s senpower equivalent to ansors. other 15,000 to 20,000 “Our task is to preserve Klaus Froehlich, people from partnerships our business model withboard member with suppliers and elseout surrendering it to an responsible for where,” Froehlich said to Internet player,” Froehlich research and Reuters. told Reuters. “Otherwise development The news that BMW we will end up as the Foxat BMW will be developing an auconn for a company like tonomous vehicle doesn’t come out of Apple, delivering only the metal nowhere. Last year, BMW partnered bodies for them.”

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PPG MVP Conference Registration is Open Registration is now open for PPG’s annual spring MVP Business Solutions Conference April 24–26 at the JW Marriott Camelback in Scottsdale, AZ. This MVP Conference venue in the desert is slated to provide advanced business strategy and innovative solutions to PPG customers. The conference has a notable lineup of prominent keynote speakers, meaningful seminars and interactive workshops all focused on aiding attendees with improving their collision center performance. The conference is structured to give participants exposure to fresh approaches for advancing their competitive capabilities. “PPG remains committed to supporting our customers with training, consulting and value added programs that help position our customers as winners in the industry. As their needs evolve our services evolve and as they grow we grow” says Jim Berkey, PPG, Director, MVP Business Solutions. “A working partnership around performance has never been more appropriate.” The comprehensive conference schedule is highlighted by prominent keynote speakers: Josh Linkner, Jim Carroll, and David Avrin

The conference commences on April 24 with leisure actives that include the Randy Dewing Memorial Golf Tournament or relaxing at the JW Marriott spa or pool and followed by a welcome reception. Some of the breakout sessions include: • “Fusion Marketing – 2020 Marketing & Beyond” • “Servicetopia -The Ultimate Customer Service Experience” • “Predictive Hiring?!” • “The Secret Weapon to Get Results!” • “Handling Public Relations when the Negative News is Looking at You” • “Getting the Most from Your Parts Vendor Relationships” • “Your First Aluminum Estimate, Are You Ready?” • “Effective Non-Verbal Communication -Body Language” The conference is open to owners and managers of collision centers using PPG Refinish products. Prospective attendees are encouraged to visit http://ppgmvp.com/Conferences /Welcome.aspx for complete conference information and registration details.

BASF Names N. America Distribution Director

Paul Whittleston, VP BASF Automotive Refinish North America, announced the appointment of Denise Kingstrom as the North America distribution director in Southfield, MI. “In line with our strategy to grow market share, Denise and her team are accountable to execute our North America distribution strategy. This includes enhancing the compelling value proposition distributors gain when partnering with BASF and growing their sales. Strategic leadership of ColorSource®, the BASF single line distributor program, and of the National Distribution Accounts are also part of her responsibilities,” said Whittleston. Kingstrom began her career with BASF in 1999 with assignments in New Jersey and Mexico. In 2003, she joined the coatings OEM team as a field technical sales representative. In 2010, Kingstrom joined the refinish business, leading both key and strategic account teams. For more information, visit www.basf.com.

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Auto Glass Academy Training Begins in April

Equalizer has announced the opening of its Auto Glass Academy. Auto Glass Academy provides instructordriven, hands-on technician training to the auto glass and body industries. The four-day course focuses on technical training, time-management, customer service and safety using Equalizer® brand products. Auto Glass Academy instructors are AGRSS/AGSC certified. “When Gilbert Gutierrez, global education director, began his career at Equalizer in 1992, he created a training process to support our products,” said Eric Asbery, president of Equalizer. “Gilbert has now expanded that service that we have provided our customers over the years into the Auto Glass Academy. This is an accredited Auto Glass Safety Council (AGSC) program, and is a registered I-CAR® Industry Training Alliance Member.” Auto Glass Academy utilizes a hands-on, small-team style instruction at their three national campuses to serve areas across the USA. To enroll and/or learn more, contact info@autoglassacademy.com, toll free USA & Canada: 800-2130136, international: 512-387-5785.

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3M Company and TTS Tooltechnic Systems AG & Co. KG, maker of Festool brand products, announced on February 29 a strategic collaboration to provide customers in the global automotive collision To repair industry a new and advertise comprehensive surface preparation and call Advertising at: finishing system. TheSales collaboration brings800-699-8251 together 3M’s abrasives, global sales and distribution capabilities with e-mail: Festool-branded power tool and dust advertising@autobodynews.com extraction technologies. 3M’s Automotive Aftermarket Division (AAD) will www.autobodynews.com eventually become the exclusive supplier of 3M and Festool Automotive Systems products in the automotive aftermarket. The new system is expected to launch in the U.S. and Canada later in 2016, with additional countries to be added. “Our collaboration with Festool Automotive 3M’s Be SeenSystems by Ourcombines Readers! leadership in abrasives technologies CALL Advertising and Festool´s premium Sales power at: tools, dust extraction technologies and service to deliver customers an unparalleled solution for complete dust extraction advertising@autobodynews.com needs,” said Laurie Altman, vice president and general manager, 3M’s AAD. www.autobodynews.com “With this agreement, customers in the automotive aftermarket will now have access to one of the most comprehen-

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sive portfolios offerings in the inCALL of800-699-8251 dustry from one provider.” “We are proud to enter into this collaboration 3M to offer a preMailwith Subscription mium surface treatment system for body shops,” said Christian Oltzscher, chief sales officer, TTS Tooltechnic Systems AG & Co. KG. “With the combined world-class portfolios of tools and abrasives, and the expertise and extensive distribution capabilities Register Y of 3M sales and service professionals, we will be able to serve customers in the automotive aftermarket even better. Our goal is to make body shops more profitable.” 3M’s Automotive Aftermarket Division spans the globe, serving the automotive collision repair industry through more than 70 subsidiaries. 3M Register abrasives, including new 3M™ Cubi- Yo tron™ II Abrasives, will now be offered 4 Times in conjunction with Festool Automotive Systems surface prep tools, dust extraction capabilities and services. For 90 years, Festool has been a manufacturer of power tools, including pneumatic and electric sanders, polishers and backup pads, vacuums and surfaceprep workstations. The company also continues to develop a new line of connected “smart tools.”

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