May 2012 Southeast Edition

Southeast Edition Florida Georgia Alabama Mississippi

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VOL. 3 ISSUE 3 MAY 2012

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Major ‘Chop Shop’ Busted in Jackson, MS, Owner Arrested, $500K in Nissan Parts Found

Gunder’s Receives Settlement Payments from Three Insurers, Files Suit Against Travelers

Police have uncovered a huge cache of parts stolen from a nearby Nissan plant, and from other sources, at a Jackson auto body business. Following tips from residents, officers raided Precious Automotive Auto Body Restoration, on Gault Street, just off

Gunder’s Auto Center of Lakeland, Fla., has received settlement payments from State Farm, 21st Century and Security National for processes and materials Gunder’s says they previously refused to pay.

On behalf of and at the request of his customers, owner Ray Gunder filed legal complaints against 21st Century and Security National. Last week, Gunder’s received notice that both had agreed to pay charges for previously denied items including paint and materials, parts return fees, and miscellaneous processes and procedures necessary to perform proper repairs. They also agreed to pay all legal costs and attorney’s fees, which amounted to $3,314 and $1,690 , respectively.

In the week of April 15, Gunder’s received a settlement payment of $346 from State Farm after the shop filed a Civil Remedy Notice. The insurer elected to settle rather than go

Some of the $500,000 in Nissan-coded Parts found at the Jackson, MS, body shop

Highway 80 in Jackson, on April 18.

Authorities said a majority of the merchandise came from the Nissan Plant in Canton. Crates full of Nissan parts and components were stored inside the building.

They include catalytic converters,

airbags, wire harnesses, batteries and headlight assemblies. Several stolen vehicles were also recovered. J.P.D. detectives arrested the building owner, 48-year old Eric Brown. He is charged with operating a chop shop, auto theft, receiving and possession of stolen property and marijuana possession.

“Detectives including officers arrived on scene and noticed approximately half a million dollars worth of merchandise that was from the Nissan production center,” said J.P.D. Officer Colendula Green.

“We did surveillance on the property, came back out here today, did a chop shop inspection and from that inspection it revealed that there was items out here taken from different areas. Most items we discovered came from the Nissan plant,” said Sgt. L.C. Russell with the Auto Theft Division.

“Nissan has been made aware that See Stolen Nissan Parts, Page 7

of 3 issues

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before a judge and jury for previously denied processes and materials.

In the same week, a second lawsuit was filed against Travelers for non-payment of a parts return fee resulting from the acquisition and return of what Gunder’s claims were “ill-fitting” aftermarket parts—a fee that Gunder says “most, if not all other carriers, now pay.”

“The more we do, the faster they seem to settle,” says Gunder. “The best thing is that more and more insurers and claims people are paying what is fair and reasonable to avoid being sued. The need for legal action is decreasing as more insurers pay what is fair and reasonable.

“We have a reputation for quality work, and I hear on a regular basis now, ‘I’m told to pay Gunder’s what you ask for because we know you’re going to do it… and actually Ray, we would pay other shops in your area See Gunder’s Lawsuits, Page 10

Alabama Led Nation In Severe Tornados in 2011, This Year it’s Florida

By May 10, 2011 over 150 tornadoes were reported in Alabama and over 130 reported in Mississippi, both states lead the nation in reported/confirmed tornadoes so far this year. As of last year Alabama tops the list for the most EF-5 tornadoes in the nation, since 1950. Before that, Alabama had been tied with Texas, Oklahoma, Iowa and Kansas with six EF-5 tornadoes.

This year Florida is the nation’s No. 1 state for frequency of tornadoes, according to a ranking by The Weather Channel. Kansas ranks No. 2.

The storms hit a maximum-security prison outside of Huntsville, Ala., blowing down roughly 1,000 feet of fence around the prison and causing damage to the roof of two dormitories.

Prison officials reported that the

prison, which houses roughly 2,100 inmates was secure and no inmates escaped.

In Harvest, Ala., James and Judy Harvest lost their home to apparent tornadoes for the second time in less than a year.

“I just think having to go through everything again,” Judy Harvest said.

Florida has the unenviable lead in the number of tornadoes per 10,000 square miles between 1991 and 2010.

Take into account intensity and the length and width of a twister’s path and Florida falls out of the Top 10.

The list is meant to raise awareness about the tornado threat as parts of the nation reel from a rash of tornadoes that have been coming at three See Severe Tornados, Page 8

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2 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

Contents

NATIONAL AAIA and ASE Recognize World Class Technicians . . . . . . . . . . . . . . . . . . . . . 23 Anderson - Rich Evans CoSponsors Fundraiser for Baby Cancer Foundation . 43 BodyshopBids Helps Pay for Dallas-Area Tornado Damaged Vehicles . . . . . . . . . 18 Boyd Group Achieves Record Sales in 2011, Acquisitions . . . . . . . . . . . . . . . 37 CAPA Adds SF Insurance Executive to Board. 14 CAPA Elects Clark Plucinski as Board

PAINT SPECIAL

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, Stefan Gesterkamp, John Yoswick, Lee Amaradio, Toby Chess, Mike Causey, Dan Espersen, Tom McGee, Jeff Webster, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

A Decade of Innovation Turns Paint Industry Literally Upside Down . . . . . . . . . . . . . 41 Airbrush Artist Shannon MacDonald Uses PPG Envirobase to Bring Icons to Life on Vehicles and Just About Everything Else. 34 AkzoNobel Holds North American Independent Distributor Conference in Boca April 24–26 . 9 Collision Repair Estimates—Excellence Now Required . . . . . . . . . . . . . . . . . . . 45 Matrix System Launches World’s First Premium Low VOC Solvent Basecoat . . 40 PCL Automotive Products Help Rich Evans Excel on Every Project he Touches . . . . 15 Standox® Partnership In Excellence (PIE) Member Conference . . . . . . . . . . . . . . . 8 Top Chicago Painter Prefers Preval’s vFan Airbrush for Mobility & Versatility . . . . . 21

Southeast

COLUMNISTS Franklin - “Power Babes” Throw a Successful Event . . . . . . . . . . . . . . . . . 38 Mainstream Media - Complaints Lead to Arrest of Ohio Car Restoration Business Owner . 32 Nigro - Reaching Beyond Traditional Advertising to Engage Your Customers. 16 Sherosky - Aluminum Stock—A Long-Term Auto-Related Opportunity?. . . . . . . . . . 20 Sisk - CCRE 2012 Seminar—Taking Back the Collision Repair Industry. . . . . . . . . 28 Sisk - Sharing the Message with CCRE President Tony Lombardozzi . . . . . . . . 36 Weaver - “GI—Think Like a Mechanic!” . . 27 Yoswick - Standards Program in the U.K. Offers Lessons for the U.S. . . . . . . . . . 31

President . . . . . . . . . . . . . . . . . . . . . . . 22 CARSTAR & Mitchell Inc. Join Efforts on Store Management . . . . . . . . . . . . . 23 CollisionPartsSource.com Platform Now Available . . . . . . . . . . . . . . . . . . . . . . . 37 Diamond Standard Says its Warranty Exceeds the OEMs . . . . . . . . . . . . . . . . 37 DOE to Accelerate New High-Tech Materials for Autos . . . . . . . . . . . . . . . 39 Enterprise Elite Service Partner Program Launches . . . . . . . . . . . . . . . . . . . . . . 14 Farmers Recognizes Caliber Collsion as MSO of the Year. . . . . . . . . . . . . . . . . . 37 Former MLB Pitcher, Now Motivational Speaker, Engages East Bay CAA Members. . . . . . . . . . . . . . . . . . . . . . . 18 Gyant Compliance’s New ‘Vocwebmanager’ Application . . . . . . . . . . . . . . . . . . . . . 11 I-CAR Adds Live Demos to its Spot Welding Course . . . . . . . . . . . . . . . . . . 18 Insurer Report Card in Oregon Ranks State Farm #1, Farmers and GEICO Replace Allstate at Lowest Rank . . . . . . . . . . . . 47 Iowa Collision Repair Centers Raise $1,329 for Charity . . . . . . . . . . . . . . . . 38 JD Power Says Customer Satisfaction is Down in 2012 . . . . . . . . . . . . . . . . . . . 22 LKQ’s ‘Promise of Protection Program’ has Launched . . . . . . . . . . . . . . . . . . . 39 MN Court Awards $157K in Progressive Ins. Underpays . . . . . . . . . . . . . . . . . . . . . . 23 OSHA Publishes Final “Right to Understand” Rule. . . . . . . . . . . . . . . . . 39 Peter Vann Joins Urethane Supply Company Sales Team . . . . . . . . . . . . . 14 Poway, CA, Navy Veteran Has Vehicle Painted to Honor Troops. . . . . . . . . . . . 29 Registration for SEMA 2012 is Now Open for Attendees . . . . . . . . . . . . . . . . . . . . 14 VW Names OEConnection as Collision Program Provider. . . . . . . . . . . . . . . . . 39 Women’s Industry Network Adds New Boardmembers . . . . . . . . . . . . . . . . . . 23

Melanie Anderson joined the Autobody News editorial team in April, 2012 as Assistant Editor. She received her Journalism degree from Humboldt State University and has been a professional writer for more than 20 years. Her background includes working as a newspaper reporter, a freelance writer and as a public relations and marketing communications professional. Melanie recently re-located back to San Diego county after Jay Lukes joined the Auhaving raised two kids in northern California. She tobody News sales and maris very happy to be back in the area. For fun, keting team in April, 2012 as a Melanie enjoys travel, photography, explorRegional Sales Manager. Originally ing locally, gardening and spending time from the Chicago area, he has spent with family and friends. If you have a the last 25 years in Southern California. story idea, please contact her at He has worked in the marketing and adver(800) 699-8251 or email to tising community since graduating from Cal manderson@autoboPoly San Luis Obispo and enjoys the relationships dynews.com. he builds with his clients. Jay’s most recent position was coordinating ad sales for Google’s online clients. When he’s not working, Jay likes spending time with his family, Notre Dame Football and traveling, preferably to Cabo San Lucas. He’s also an avid sailor having boated everywhere from Lake Michigan to Panama. Call Jay about an ad in any of our editions, or just to say “Hi” at 800699-8251 or email jlukes@autobodynews.com

Indexof Advertisers

REGIONAL Alabama Led Nation In Severe Tornados in 2011, This Year it’s Florida. . . . . . . . . . . 1 Another Lakeland, FL, Shop Files Breach of Contract Suit Against Progressive Insurance . . . . . . . . . . . . . . . . . . . . . . 10 Birmingham Business is Booming Says Local BBA . . . . . . . . . . . . . . . . . . . . . . . 6 Body Shop Owner Eddie Lopez Shot Dead in Early, TX . . . . . . . . . . . . . . . . . . 8 Florida Collision Industry Legal Seminar Gets Strong Support, Calls Heard to “Take it On the Road”. . . . . . . . . . . . . . 10 Florida’s PIP System Said to the Victim in Arrest of ‘Dirty Dozen’ Insurance Fraud Defendents . . . . . . . . . . . . . . . . . . . . . 11 Gunder’s Receives Settlement Payments from 3 Insurers, Files Suit Against Travelers . . 1 I-CAR Hosted Golf Tournament Fundraiser for CREF in GA. . . . . . . . . . . . . . . . . . . . 6 Major ‘Chop Shop’ Busted in Jackson, MS, Owner Arrested, $500K in Nissan Parts Found . . . . . . . . . . . . . . . . 1 Man Steals Truck and Tools from Body Shop Then Crashes Truck through Door to Steal Hand Guns . . . . . . . . . . . . 6 Miami-Dade Warehouse Fire Suspects Body Shop Source. . . . . . . . . . . . . . . . . 9 New “U Pull It” Auto Shredder Set Up in Davie, FL . . . . . . . . . . . . . . . . . . . . . . 9 Special 2011 Ford Shelby Sells Twice at Barrett-Jackson in Palm Beach, FL. . . . . 4

New Talent to Serve Readers Better at Autobody News

Serving Florida, Georgia, Alabama, Mississippi and adjacent metro areas, Autobody News is a monthly publication for the auto body industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC.

Autobody News

Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

BMW Wholesale Parts Dealers . . . . 41 Chief Automotive. . . . . . . . . . . . . . . 11 Classifieds. . . . . . . . . . . . . . . . . . . . 47 CSS USA, Inc.. . . . . . . . . . . . . . . . . . 9 Delray Honda . . . . . . . . . . . . . . . . . 20 Don Reid Ford. . . . . . . . . . . . . . . . . 33 Equalizer Industries . . . . . . . . . . . . 32 Filtersforbooths.com. . . . . . . . . . . . 16 Ford Wholesale Parts Dealers FL, GA, AL, MS . . . . . . . . . . . . . . 48 Garmat USA . . . . . . . . . . . . . . . . . . 31 Global Imports MINI . . . . . . . . . . . . . 4 Gus Machado Ford . . . . . . . . . . . . . 37 Hendrick Honda . . . . . . . . . . . . . . . 27 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Hyundai of Orange Park . . . . . . . . . 22 Hyundai Wholesale Parts Dealers . 42 Jerry Ulm Chrysler-Jeep-Dodge. 12-13 Kia Motors Wholesale Parts Dealers. 19 Mazda Wholesale Parts . . . . . . . . . 45 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 35 MINI Wholesale Parts Dealers . . . . 38

Mitsubishi Wholesale Parts Dealers. 41 MOPAR Wholesale Parts Dealers . . 23 Nalley BMW. . . . . . . . . . . . . . . . . . . 30 Nissan Wholesale Parts Dealers. . . 44 Palmers Toyota . . . . . . . . . . . . . . . . 35 PCL Automotive . . . . . . . . . . . . . . . 14 Porsche Wholesale Parts Dealers . 46 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Safety Regulation Strategies . . . . . 39 Sam Galloway Mazda . . . . . . . . . . . . 6 SATA Spray Equipment . . . . . . . . . . 7 SCA Appraisal Company . . . . . . . . 29 Serra Mazda . . . . . . . . . . . . . . . . . . 33 Serra Automotive Group . . . . . . . . . . 5 Solution Finish . . . . . . . . . . . . . . . . 43 Southtowne Hyundai . . . . . . . . . . . 29 Star-A-Liner . . . . . . . . . . . . . . . . . . . 17 Subaru of Gwinnett . . . . . . . . . . . . . . 8 Subaru Wholesale Parts Dealers . . 39 Tameron Hyundai . . . . . . . . . . . . . . 36 Toyota Wholesale Parts Dealers . . . 42 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 37

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 3

Special 2011 Ford Shelby Sells Twice at Barrett-Jackson in Palm Beach, FL This year, at the Barrett-Jackson Palm Beach auction, one special unit was sold not once, but twice. A very special-edition 2011 Ford Shelby GT500 was sold twice in a row Saturday at the Barrett-Jackson Palm Beach auction, raising $950,000 for the Wounded Warriors Family Support foundation.

Marine Col. John Folsom (back to camera) talks with (from left) Barrett-Jackson president Steve Davis, retired Army Lt. General John Sylvester, auction CEO Craig Jackson and Ronnie Rains, who bought the car and donated it back to sell again. (Photo: Bob Golfen)

The red, white and blue Shelby, signed by dozens of veterans, families and supporters from all over the country, was hammered sold for $500,000 to a thunderous cheer from the auction crowd, which rose to a fevered pitch when the winner of the sale, Ronnie Rains of Odessa, Texas, donated the car back to be sold again.

Rains, an Army veteran who served in Viet Nam and Europe, said he wanted to give the car back for rebidding because of his strong personal support for the Wounded Warriors organization and similar veteran’s groups.

“This is what it’s all about right here,” said auction president Steve Davis. “God bless America!”

The group’s chairman, Army Lt. General John Sylvester (retired), with his arm around Rains’ shoulders, added, “God bless America and God bless Americans.”

With that, auctioneer Spanky Assister started his patter over again, with the second sale quickly reaching $450,000 and sold to Jack Miller, a Jupiter, Fla., collector and restorer of Ford Mustangs.

The sales of the wrapped specialedition 2011 Ford Shelby GT500, signed by veterans, their family members and supporters, eventually raised over a million dollars for Wounded Warriors Family Support.

Commenting on the news, Col. John Folsom, founder of the organization, noted, “Wounded Warriors Fam-

ily Support is a small, independent non-profit organization that provides support to the families of U.S. Soldiers, Sailors, Airmen and Marines who have been wounded, injured or killed during combat operations.

“We are so grateful for the generous support of the auction participants and the American people. We are especially grateful for the team at Barrett-Jackson for their tremendous help.

The money raised through this auction will enable us to help military families in so many ways,” he continued.

At the auction, Folson addressed the crowd, saying the car is signed by people from all across the country— though President Barack Obama is not among them, yet.

Folsom hopes to garner President Obama’s signature on this year’s car, as he will begin the third annual nationwide High Five Tour this June, with a 2012 Mustang GT500.

On the 48-state tour, Folsom intends to “meet as many Americans as possible and thank them for their support of military families who have given so much,” officials noted.

“The High Five Tour will make a stop in Washington, D.C., on July 7. I would be honored to have President Obama sign the 2012 car,” Folsom added.

President of Barrett-Jackson Honored for Donation In other news from the auction group, Steve Davis, president of BarrettJackson, was recently honored at the 8th Annual Armed Forces Congressional Gala Dinner with the “Congressman Bill and Mrs. Beverly Young Humanitarian of the Year Award.”

He was recognized for the donation of his personal custom 1964 Ford Fairlane, which was donated to be auctioned for the Armed Forces Foundation, an organization that helps military members and families in times of need, at the 2011 Barrett-Jackson Las Vegas Collector Car Auction this past September.

“Entrepreneur Ron Pratte successfully bid on the car for $700,000 and then promptly and altruistically donated the car back to the Armed Forces Foundation, to be bid on again at the 2012 Barrett-Jackson Scottsdale Auction in January,” officials explained.

Then, in January, Ted McIntyre,

4 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

chief executive officer of Louisianabased Marine Turbine Technologies, successfully bid on the Fairlane for $1 million.

During the Gala, McIntyre announced that that he would be donating the car back to the Armed Forces Foundation and it would be sold once again at a future Barrett-Jackson auction.

“I am beyond humbled to be a recipient of this prestigious award,” said Davis. “To see the outpouring of support we generated for our troops and their families was spectacular. I am so honored to be able to help The 2011 Ford Shelby GT500 traveled through most of the nation those who fight for gathering signatures, said Marine Col. John Folsom, who founded Wounded Warriors Family Support. (Photo: Bob Golfen) our country; it is these men and women who make me proud to be an “The reaction at both auctions was beyond enthusiastic and Barrett- American.”

Barrett-Jackson has raised more Jackson waived all consignment fees at both auctions,” the company re- than $39 million for various charitable organizations since 2006, and ported. more than $45 million since its first But this car’s story doesn’t stop auction, the company said. there.

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Birmingham Business is Booming Says Local BBA

Take a look around the Magic City and you’ll find the blueprints are everywhere.

“It’s all about jobs and investment,” BBA President, Brian Hilson, said. And Hilson has the numbers to back it up. At the first Blueprint Birmingham Summit, April 20, the BBA announced that in the last two years the Birmingham region has gained over 3,500 jobs and taken in almost $500 million in investments. “We’re proud of where we are and we’re excited about the future,” Hilson said. “But this is a reality check. We need to understand exactly where we are.”

“Why not Birmingham,” asked Bayer Properties owner, Jeffrey Bayer.

Bayer’s company is overseeing the construction of the Westin hotel. It’s one of a handful of projects that are putting Birmingham on the map, along with Railroad Park, the construction of the new Birmingham Barons baseball stadium and the expansion at the Birmingham-Shuttlesworth Airport. Bayer says generating interest and revenue is key to make Birmingham a key destination.

“To me, it’s just one of the next steps in making this a better place to live,” Bayer said.

I-CAR Hosted Golf Tournament Fundraiser for CREF in GA

In 2011, the collision industry provided $4.1 million in support to secondary and post-secondary collision students and their school programs through the Collision Repair Education Foundation. This year’s tournament occurred on April 25th at the Highlands Course in Lake Arrowhead. Through monetary and in-kind product donations, the 2011 Collision Repair Education Foundation donors helped to provide student scholarships, student tool grants, school equipment and supply grants, the 3rd annual Ultimate Collision Education Makeover school grant, and much more. Since 2008, when the Collision Repair Education Foundation became a purely philanthropic organization, the organization has provided $7 million in school and student support through industry donors. The Atlanta Golf Tournament supports secondary and post-secondary collision students in the greater Atlanta area. We encourage you to learn more about this important fundraising event and participate and/or sponsor in future. By doing so, you are directly supporting and benefiting our industry in Atlanta and Georgia.

Man Steals Truck and Tools from Body Shop Then Crashes Truck through Door to Steal Hand Guns A West Columbia, SC, man faces multiple charges after South Carolina’s Lexington County Sheriff's Department detectives allege he used a pickup truck stolen from a local body shop to break open a door of a local gun business and steal eight handguns worth $4,220.

Sheriff James Metts said detectives arrested 41-year-old Robert Fletcher Herbert of 104 Cherrywood Circle, West Columbia, on arrest warrants on two counts of seconddegree burglary, two counts of grand larceny, and one count of illegal possession of a firearm by a person who previously was convicted of a violent felony.

Herbert was released from the Lexington County Detention Center on March 31 after posting $87,130 bail.

An arrest warrant alleges that between 12 a.m. and 7 a.m. on March 27, Herbert stole a black 2007 Chevrolet Avalanche pickup truck from Bowen’s Auto Body and

Paint at 2839 Emanuel Church Road near West Columbia, Metts said.

Deputies recovered the pickup truck on April 3 about 200 feet from Herbert’s home, the sheriff said.

On April 9, detectives executed a search warrant at Herbert’s home and found an ignition key that is consistent with the ignition key used to start the truck that was reported stolen from the auto body shop, Metts said. Detectives also found one Brother Intellifax facsimile machine and one Stanley Jumpox that were reported stolen from the auto body shop. Detectives arrested Herbert at his home after executing the search warrant.

The warrant further alleges that at about 2 a.m. on March 29, Herbert drove the truck into a door at the rear of S&R Gun Sales at 2526 Emanuel Church Road near West Columbia in order to break into the gun business, where he allegedly stole the handguns, Metts said.

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Stolen Nissan Parts a significant amount of automotive parts were recovered today as part of a bust at an illegal chop shop operation in Jackson. We are cooperating fully with

the Jackson Police Department, which is to be commended for their efforts.

Nissan is supporting the investigation efforts and will continue to ensure the highest levels of security throughout our operations,” said Nissan North America Inc. Corporate Communications Manager Steve Parrett.

Investigators would not confirm if the thefts were an inside job at the Nissan plant, but said more arrests are expected.

“The items up here from Nissan were originally packed in Nissan packaging with tracing numbers still on them.

At this point we don’t know how they got up here,” said Sgt. L.C. Russell.

Jackson police have plenty of unanswered questions: •How did the new auto parts end up at the shop?

•Who put them there?

•Who were the potential buyers?

The merchandise, which included catalytic converters, airbags, head-

Some of the parts still have the Nissan tracking code labels

lights and batteries, still had the Nissan tracking codes on them and were still in cartons and crates when they were found at Precious Automotive Auto Restoration at 5030 U.S. 80W, Sgt. L.C. Russell said.

Officers showed up at the business

to make sure it was operating legitimately after getting several tips about a possible chop shop there, he said.

“We primarily went to check their operation license, but when we checked the license we found some other things,” he said.

Shop owner Eric Brown, 48, was charged with multiple counts of receiving and possessing stolen property, as well as a misdemeanor marijuana possession charge, JPD spokeswoman Colendula Green said.

Nissan officials told police they had concerns that some items could be missing, Russell said.

However, the company would not discuss the stolen parts beyond a statement acknowledging that Nissan had been told about the discovery.

No current or former Nissan employees would comment on security related to tracking auto parts shipments.

Police are looking into several ways the merchandise could have ended up unaccounted for. “I’m puzzled about how stuff got out of there in that amount without them noticing,” Russell said.

Nissan uses independent trucking

for some of its shipments, he said.

In addition to the stolen Nissan parts, at least one stolen vehicle was on the property, Russell said.

Several onlookers had gathered in the open area in front of the shop after the police arrived, but they all denied knowing Brown or anyone else who worked at the shop.

Russell said he was unaware of Precious Automotive having had precious dealings with the law. He said, however, because of the conditions of the spilled car fluids and auto parts on the property, police would be calling in the state Department of Environmental Quality.

In addition to Brown, two employees were arrested on unrelated outstanding warrants, Green said.

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 7

Body Shop Owner Eddie Lopez Shot Dead in Early, TX

Authorities said a heated dispute over a woman left a Brownwood body shop owner dead March 12 after he was shot at least six times in the parking lot of an Early doughnut shop, reports Denise Blaz, writing for the Abilene Reporter-News. The shooting marked the city’s first homicide in at least four years, officials said.

Eduardo “Eddie” Lopez, 45, was shot shortly before 10 a.m. Monday while sitting in his idling Cadillac SUV in the 900 block of Early Boulevard, said Brown County Sheriff Bobby Grubbs. Lopez was owner of two Brownwood businesses: Eddie’s Auto Body Repair and the bar Tequila Nights.

Rene Torres Pinon, 32, of Stephenville, was charged with murder after turning himself in at the Brown County Law Enforcement Center, telling a deputy he had committed a “crime of passion.”

“The subjects had an ongoing conflict, I guess, and it appears due to the circumstances that they came together right there this morning,” Grubbs said. “I think they had a verbal argument going, and it appears that one of them had a gun, pulled it and did some shooting.”

Grubbs said Lopez was shot multiple times with a .40-caliber Taurus

semi-automatic handgun, including once in the face. Four bullet wounds were found along Lopez’s rib cage and another bullet was found in his chest, Grubbs said.

Early Police Chief David Mercer said Pinon turned himself in as authorities were en route to find him. Mercer said a caller had informed authorities that Pinon was sitting in his gray Chevrolet Camaro at his workplace, a Brownwood manufacturing plant. By the time authorities arrived at the plant, he had turned himself in, Mercer said.

The broad daylight crime, Mercer said, marked the city’s first homicide in several years.

“I’ve been here four years, and there hasn’t been one since I’ve been here,” Mercer said.

“We’ve had aggravated assaults with handguns, but not like this.

Luckily, no one else was hurt, no one that was just driving by.”

Some patrons inside the doughnut shop witnessed the shooting, he said.

“The only people that saw were in the store; they heard the shots. One of them looked up in time to see maybe a couple of more shots being fired, and then he saw him (the shooter) walk back to his car.”

Standox® Partnership In Excellence (PIE) Member Conference Gives Industry Trends Insight, Human Resources & Marketing Standox® recently hosted its 2012 Standox® Partnership In Excellence (PIE) Member Conference in Maui, HI, for collision center PIE members from the United States and Canada. The PIE Program is a busi-

Keith Sena, Standox® Brand Manager

ness partner with Standox® customers, maintaining a shared goal to achieve a sustainable competitive advantage, through quality networking, innovative marketing and intel-

ligent programs. Member benefits include Member Conferences, Training Programs, Strategic Partner Relationships, Business Council Membership and Bowtie Bucks Rebate.

The meeting was held at The Ritz-Carlton, Kapalua on the island of Maui and gave PIE members the opportunity to network and learn from each other in a relaxing environment.

The conference is an excellent forum for collaboration and networking among the collision center owners and managers who attend.

Attendees also can take the knowledge they gain from conference sessions and from their peers, back to their collision centers, inspiring their future business decisions.

Opening the conference were industry experts Greg Horn, Mitchell International; Bruce Cooley, DuPont Performance Coatings (DPC); and George Avery, State Farm Insurance.

See PIE Conference, Page 10

8 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

Continued from Cover

have stormed across the country this spring, he said. “Ours are totally different,” Zyvoloski said.

In Florida, the tornado season typically peaks in July, as the weather gets wetter and warmer, but they can happen year-round. This tornado season could mean more tornadoes for the Sunshine State.

As a patch of the Pacific Ocean begins to warm, the cyclical pattern of La Nina and El Nino, it generally means wetter weather for Florida and so a greater chance of a twisterspawning thunderstorm, Zyvoloski said.

On the other hand, a warming Pacific Ocean tends to disrupt the formation of Atlantic hurricanes that also are a tornado risk.

“Now is the time to identify safe shelter, such as a basement or an interior room on the lowest floor in a sturdy building, for when threatening weather approaches and when a warning is issued,” said Jack Hayes, director of NOAA’s National Weather Service. “Also, be sure to have a NOAA weather radio along with fresh batteries to ensure immediate awareness of this serious weather situation.”

Severe Tornados times the average rate so far this year.

“We’re just coming into tornado season,” The Weather Channel’s sever weather expert Greg Forbes said.

“You really need to be prepared for the next several months.”

Florida has 12.3 tornadoes per 10,000 square miles, according to The Weather Channel analysis.

Rounding out the list are Kansas, Maryland, Illinois, Mississippi, Oklahoma, South Carolina, Alabama and Louisiana.

Florida is prime territory for tornadoes because it is surrounded by water and is warm, which can provide the unstable atmospheric conditions for thunderstorms that can spawn tornadoes, according to The Weather Channel.

Being a frequent hurricane target doesn’t help; they frequently spin off tornadoes as they come ashore often miles away from the storm.

Tornadoes in Florida typically are short-lived, smaller and less intense than the killer tornadoes that

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AkzoNobel Holds North American Independent Distributor Conference in Boca April 24–26

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AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) is putting the final touches on the upcoming 2012 North American Independent Distributor Conference to be held April 24 to 26, at the Boca Raton Resort & Club in Boca Raton, FL. For network members this gathering represents one of the industries most anticipated and longest running distributor association events.

Automotive paint and supply distributors from across the U.S. and Canada will rally together under the event’s “Win Forever—Always Compete” theme for three action-packed days of innovative workshops, exciting new product launches and training opportunities. Each element of the program has been designed with the goal of providing attendees’methods to better support the growth and profitability of the network of collision repair centers which they support throughout North America.

“Many of our distributors have been part of the AkzoNobel family since we came to North America in the early eighties’ with our then innovative SIkkens Mixing Machine concept”, said AkzoNobel

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A&AC General Manager, Margret Kleinsman. “These same distributors have been instrumental in keeping us aligned with industry needs, selecting body shops that were eager for the innovation we delivered, and in turn helped us introduce new product lines.As a result of our close working relationship and our mutual understanding of the value of all parties in the repair chain, we have been successful in getting the right Color Solutions and Repair Support Services to our valued body shops customers. This conference will provide information on new tools and products to be launched in 2012. Most importantly, it will provide the platform for the co-generation of future products and services to further improve our joint support to the collision repair Industry.”

In addition to the array of products and services to be found at the conference this year, industry leaders such as 3M, SATA, Dedoes and Summit Marketing Group, will participate in a special Opportunity Fair, where attendees will have the benefit of viewing current and upcoming product introductions and supporting services.

New “U Pull It” Auto Shredder Set Up in Davie, FL

U Pull It, an auto recycling company based in Davie, Fla., has begun operation of a new auto shredder at its Fort Lauderdale, Fla., facility. U.S. Shredder and Castings Group, Trussville, Ala., supplied the model 80108 shredder. U.S. Shredder’s engineering services division provided turnkey engineering for all aspects of the installation, including the design of the motor housing and electrical systems, as well as civil and foundation requirements. The entire system is operated under roof.

According to Larry Danielle, U Pull It owner, “The decision to install a U.S. Shredder system was made after we completed an extensive review of all shredder systems available. We concluded the shredder is the industry’s heaviest, and U.S. Shredder’s support and installation services were the best in the industry.

Now that the shredder is operational, we couldn’t be happier. We’ve had shredder owners and operators from all over the country visit our site, and 100 percent of them have walked away commenting that this is the finest shredder and operation they have ever seen.”

A Smart Solution

Miami-Dade Warehouse Fire Suspects Body Shop Source

One day after knocking down a fouralarm fire that ripped through a Northwest Miami Dade warehouse, firefighters returned to the scene to determine what sparked the blaze, NBC news has reported.

Miami Dade Fire Rescue Spokesman Arnold Piedharita told NBC 6 crews would need to demolish the structure and remove debris to get closer to finding what set off the fire.

Piedharita explained that the fragile state of the building's roof and walls will make the process tedious, as will an array of chemicals inside that were used by an auto body shop, which also ignited safety concerns for firefighters.

"Firefighters and fire crews that are here have to make sure that they're metering also for any type of hazardous materials, fumes and toxic gases, that can still effect us even after the fire is out," said Piedharita.

Some 40 units and more than 100 firefighters were on deck Wednesday to fight the flames, which decimated a strip of businesses on the 7600 block of Northwest 27th Avenue.

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Another Lakeland, FL, Shop Files Breach of Contract Suit Against Progressive Insurance

Florida Collision Industry Legal Seminar Gets Strong Support, Calls Heard to “Take it On the Road”

Paul Hawks, owner of Bernie’s Body Shop in Lakeland, Fla., is using a limited power of attorney signed by his customer and has filed a breach of contract suit against Progressive In-

By the comments of those in attendance, the Collision Industry Legal Seminar was a resounding success.

The Saturday event began promptly at 11:00 AM on April 14 and continued until well after 6:00 PM that evening with only a couple of short breaks and a 45 minute lunch. Many new friendships were forged with others who shared the same views and concerns.

Over 60 people attended the Lakeland FL event from as far away as Oregon, Minnesota and New York and many states in between, and based upon the reports we received throughout the day, they were encouraged with the information shared by Ray Gunder, Bret Geohagan (legal counsel for Gunder’s Auto Center, Inc.) and Barrett Smith of Auto Damage Experts, Inc. (ADE).

In a poll taken during the initial introductions, the one re-occurring motivation for most everyone’s attendance was to learn how to regain control of their business and its profitability.

surance Co. on behalf of his customer, a Progressive policyholder who asked that his name be withheld.

The lawsuit is the results of the nation’s fourth largest personal auto insurer’s refusal to pay for repair reContinued from Cover

Gunder’s Lawsuits but they simply don’t ask.

“I’m overwhelmed by all the attention I’ve been getting on these issues, but as I’ve said many times and continue to say, I’m just a simple country boy who works hard to please my customers and who wants to see my hardworking employees get paid for every drop of sweat they drop. I couldn’t have waged these efforts or been as successful if it weren’t for my brilliant attorney, Brent Geohagan (see CCRE story this issue), and the

Continued from Page 8

PIE Conference They each offered valuable insights into key industry trends impacting collision repairers and insurance business models. Steve Trapp from DPC also presented attendees with scorecard improvement.

The conference also featured an informative discussion by Dave Smith of Enterprise Rent-A-Car on human resource insight. Scott Bragg of Marketing Associates closed the conference with a presentation about inbound marketing and digital strategy.

lated body materials. The insurer’s position is that body materials are not compensable because they are part of a repairer’s “cost of doing business.”

“It’s most unfortunate that a repairer must take these legal steps but the under-payments and non-payments are continually increasing as insurer’s squeeze consumers and their repairers,” Hawks said. “I’m sick of being intimidated by insurance companies. While rent, lights, advertising and such are (the cost of doing business) body materials are not.”

Hawks’ shop is in Lakeland, the same city where Gunder’s Auto Center is located. Ray Gunder, owner of Gunder’s Auto Center, has successfully sued insurance companies in similar lawsuits. (See related stories this issue.) experience and business coaching of Barrett Smith of Auto Damage Experts, both of whom have become very close and trusted friends of mine.

Without their wealth of knowledge and their moral support and encouragement, I don’t know if I would have or could have embarked on this journey.”

“We stay very busy, and last week was no different other than we received three settlements from insurers to bring closure to three lawsuits; and we filed a new lawsuit against Travelers!” states Ray Gunder, founder of the 43 year old Gunder’s Auto Center in Lakeland, Florida.

“Standox ® has been hosting PIE Member Conferences for over a decade. It allows our key customers the opportunity of three days of networking, learning and relaxing,” said Keith Sena, brand manager.

“Our focus with the conference is to give our customers a detailed review of key industry trends that will affect them in the coming year, give them some specific tools that they can use to improve their businesses in areas that they’ve said are important to them—and of course, put a group of smart business people in the same room to allow them to learn from each other.”

10 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

“From discussions during the meeting and during breaks, the State Farm Parts Procurement program seemed to be one of the straws straining the camel’s back and collision repairers ‘are mad as heck and are not going to take it anymore’ and are seeking alternative methods of operating their businesses” said Ray Gunder.

“We were asked by many in attendance if we could “take the show on the road?” stated Barrett Smith of ADE, and in discussing with Ray and Brent, while humbled, we agreed that if there was enough interest in any given market to arrange the travel and accommodations, we would gladly consider sharing the message with others” Barrett Smith said, “There’s a significant thirst for this knowledge as industry professionals are just plain tired of the status quo and struggling to keep their businesses viable. Repairers spend so much time ‘taking care of business,’ they often fail to take care of their business.”

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Florida’s PIP System Said to the Victim in Arrest of ‘Dirty Dozen’ Insurance Fraud Defendents A 13-month probe into a string of suspicious car crashes culminated in the arrest of 12 individuals, including a Cape Coral, Fla.-based physician. Authorities believe the “dirty dozen” were bilking insurers out of $22.5 million a year in yet another scheme designed to take advantage of Florida’s oft criticized personal injury protection (PIP) system.

According to the federal indictments, the accused helped carry out “Operation Whiplash,” whereby certain clinics billed for exaggerated or non-existent medical services. Moreover, clinics allegedly employed talent scouts to find willing actors to participate in orchestrated crashes and then visit clinics—or at least sign forms to attest that they had—all over Florida.

Initial suspicions about these odd traffic patterns gave way to a fullblown investigation and a sting operation involving agents who posed as participants. The investigation, believed to be the largest of its kind in southwest Florida, led to a police raid of two of the presumed 31 clinics involved in the scheme: Xtreme Care

and the C&A Family Rehab Center, both in Cape Coral, Fla. The president of Xtreme Care, Dr. Stephen M. Lovell, was one of the 12 apprehended.

One might assume that these undeserved profits were fueling lavish lifestyles. However, as authorities explained at a multi-agency press conference on Thursday, purchases made by the accused were surprisingly mundane.

“The expenditures were going all the way from purchases at McDonald’s to cruises,” said Josh Silko, the Cape Coral police detective who headed the investigation. “They weren’t living lavish lifestyles, purchasing houses or real expensive cars, but it was evident that they were profiting from this to live their everyday lives.”

Charges against the defendants range from health care fraud to money laundering, with possible sentences of 20 years each. This substantial arrest underscores the vulnerabilities created by the state’s current PIP system. There is hope that schemes such as “Operation Whiplash” will one day become the anomaly and not the norm.

Gyant Compliance’s New ‘Vocwebmanager’ Application Gyant Compliance, a division of Gyant Group, a Lake Forest, CA, based company, announced Feb. 9 that it has launched a New VOCWEBMANGER Application for the Collision Repair Industry.

“Gyant Compliance developed VOCWEBMANGER due to experiencing first-hand challenges of compliance that McLaren Unibody, my father in law’s old shop had faced with AQMD,” said Jon Gypsyn, CEO. ”I witnessed auto body shops struggling with tracking VOC’s, expiring permits, keeping up with new regulations, getting fines for being over their VOC limits, and scrambling for product last minute with no central system for all of their environmental needs,” Gypsyn continued.

“It took three years to develop the VOCWEBMANAGER web application, and there were several considerations in the development of the VOCWEBMANAGER,” said Mike Ramirez. “It needed to be web based so that there would not be a need for extra equipment, or interference with existing software programs. It had to be user friendly for the painter to operate. The painter adds the usage amount, and with a click the VOC’s

are automatically calculated and populated into reports. It needed to keep track of inventory and send an email alert when the shop was low on product and allow them to order with a click. It had to alert the shop when they were nearing VOC limits or when permits were expiring. It needed to store MSDS and technical data sheets, and be able to update owners on new regulations that affected their business with access anywhere at any time. In other words, it needed to be the compliance and inventory tracker all in one place and that’s exactly what the vocwebmanager accomplishes, added Ramirez.

Gyant is an environmental compliance company focused on emissions tracking, reporting and carbon footprint management.

The company operates and maintains a web-based VOC and CO2 Monitoring & Tracking System to assist clients in complying with governmental regulations and guidelines. The web application also complies with COSHH, HAPS, and HSE regulations.

VOCWEBMANAGER streamlines monitoring and reporting in real time at any time. For more information contact: amclaren@gyantgroup.com

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 11

12 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 13

CAPA Adds SF Insurance Executive to Board

The Certified Automotive Parts Association has elected Carol Waldron of State Farm Mutual Insurance Company to CAPA’s Board. “CAPA is fortunate to have Carol join us in our effort to ensure truly high quality alternative parts are readily available to the market. Carol’s extensive background contributes to the broad range of industry expertise and organizations who’ve joined together on CAPA’s board to keep repairs affordable, cars repairable, and protect consumers from poor quality,” said Jack Gillis, Executive Director of the non-profit association. “State Farm, and many other diverse organizations, joining together in CAPA, provide a unique insight into issues facing the aftermarket parts industry and make an important contribution to CAPA’s continuing success. We look forward to working with Carol.” CAPA’s Board includes: Bill Brower, Liberty Mutual Insurance; Bill Daly, Allstate Insurance; Bill DeGrocco, GEICO; Jack Gillis, CAPA; John Palumbo, PartsChannel, Inc.; Clark Plucinski, Boyd’s Group /Gerber; Ed Salamy, K.S.I. Trading Corp.; Ben Steinman, Ben’s Auto Body; Carol Waldron, State Farm.

Registration for SEMA 2012 is Now Open for Attendees

The market for hybrids, plug-in hybrids and electric vehicles is perking up significantly, with much of the credit going to the high price of gas.

In the first three months of 2012, U.S. sales of hybrids, plug-in hybrids and EVs shot up 44 percent from the year-ago quarter, to 113,457. March sales of those vehicles were double those of January. It was a breakout quarter for sales of vehicles with alternative powertrains, which had been rising at a much slower pace than expected despite waves of fresh entries. The strong performance is a measure of validation for automakers that have persevered despite tepid demand for hybrids and criticism in political circles. Hybrids accounted for the bulk of alternative powertrain sales, 106,207, compared with 7,250 EVs and plug-in hybrids.

Better sales of Toyota Prius drove much of the growth as buyers snapped up recently launched models, including a wagon and subcompact.

Also providing a lift: launches of General Motors’ mild hybrid technology, dubbed eAssist, on volume models such as the redesigned Chevrolet Malibu, released in February.

Peter Vann Joins Urethane Supply Company Sales Team

Peter Vann, collision repair consultant and trainer, has joined Urethane Supply Company (USC) as the West Coast sales representative.

Vann comes to USC with much aftermarket experience, including as a consultant for Caliber Collision Centers and a technical trainer for VeriFacts Automotive, Cerritos College, 3M, Pro Spot and Car Bench. He was also an estimator supervisor/production manager at a certified BMW collision center and a certified Mercedes-Benz collision center, both in California. Vann is based in Southern California. Beginning May 1, he will be responsible for all states west of the Rocky Mountains.

Vann has been trained on USC’s new Nitrogen Welding System. In addition, he has training from I-CAR, Car Bench, Blackhawk Automotive, Chief Automotive Technologies (EZ Liner), Autorobot, Celette (Bench), MercedesBenz of North America, BMW of North America, the American Iron and Steel Institute, the American Welding Institute and Cerritos College.

Said USC President Kurt Lammon. “His industry knowledge is exceptional, and he is a solid addition to our sales team.”

Enterprise Elite Service Partner Program Launches

Assured Performance Network and Enterprise Rent-A-Car have introduced the Enterprise Elite Service Partner Program. This program, using the certification services of Assured Performance Network, allows collision repair facilities to take advantage of innovative service tools including Enterprise® Priority Pass, an upgraded level of replacement rental service designed to increase customer satisfaction.

Shops enrolling in the program also will receive several communications tools. For example, Enterprise Rent-A-Car’s ARMS® Automotive suite of products streamlines communication between shops and Enterprise. In addition, Customer Status Notification software enables shops to keep consumers informed on the progress of their vehicle repairs. Enrollment in the Enterprise Elite Service Partner program is open to repair businesses that are able to become officially certified by Assured Performance and meet the qualifications to participate in its Certified Collision Care Partner Network. Please visit www.CertifyMyShop.com for more details.

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PCL Automotive Products Help Rich Evans Excel on Every Project he Touches

by Ed Attanasio Almost every successful car builder/painter over the years has been able to find what they call their “go to” products—whether it’s paint, primers, sealers or even a certain tape product that they utilize in almost all their work. Rich Evans, reality television star, Autobody News columnist, and owner of Huntington Beach Bodyworks, uses products made by Pacific Coast Lacquer (PCL Automotive) in every project he does.

After 3,000 jobs performed over his 25-year career as a premier car builder and collision repair expert, Evans knows what he wants and what he needs to produce quality work time after time. That’s why he exclusively uses PCL’s refinishing products, primarily the company’s primers and clears, as well as their flat black topcoats, that have become increasingly popular with customizers and body shops alike.

Evans has nothing but great things to say about PCL and identifies the manufacturer’s role in consistently saving time and money on every job that comes through the doors at Huntington Beach Bodyworks.

“I use their products on a wide range of projects and they perform perfectly every single time. I started using PCL’s products in 2000, when

I built my Hummer Limousine (see photo) out a 2002 Chevy pickup with the 333-inch wheel base on it. That was the first time I was introduced to PCL, because I had miles of panel blocking to do on that vehicle.”

Evans appreciates PCL’s primers because of their versatility and quality. “We use a ton of their #901 (gray primer) and the black primer, #903.

What’s great about their #901 primer is that it’s a high build primer. I shoot it out of a 1.9 gun. I can pull the trigger and just blast on a panel and it will fill 36 and 80 grit scratches faster than most other types of primers. It’s actually a polyester product, so it’s just like spreading polyester putty on but with a gun, which allows me to

SHOP & PRODUCT SHOWCASE Huntington Beach Bodyworks Location: Huntington Beach, CA

Telephone: 714-842-9907 www.richevansdesigns.com Company At A Glance...

Type: Collision Repair & Customization Facility Employees: One

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Combined Production Space: 13,000 square feet Evans designed and built this stunning 1964 Lincoln Continental using PCL primers and clears on the TV show Autoholics on the Speed Channel

skip steps and spray it as opposed to spreading it.”

Uniformity and consistency is vital to the way Evans does his body work. “My approach has never changed over the years and I won’t ever deviate because it works for me,” he said. “Basically, I shape with 36 grit sand paper and then get the 36-grit scratches removed with the 80 grit; then I move onto the 150 grit and then chase the 150 scratches with the 400 grit, either dry or wet.

Then I’m ready to apply the PCL sealer which gives me a great foundation to lay down my paint. When I can do it all in one single step, I’m saving time and—as I always say— time is money!

“At the end of the day, I’m not going to get any shrinkage or imperfections, and that’s key,” Evans emphasized. “Many of the primers out there right now on the market will cause shrinkage, which means you have to take mil build off of your clear to try and chase the shrinkage out. The shrinkage is like a dry river bed that shows all the imperfections.

But PCL’s primers provide a solid platform so it does not move after it dries. It gives me a lot of options depending on the situation. In the end PCL’s primers can allow me to skip a few steps if I want to. By switching a step and filling those scratches in, I can complete the job faster. On average, it can save me 50% in time when I go that way, so it’s a big deal, especially when I’m super busy.

Sometimes it can even save me up to 75% of the time I’d spend otherwise.

“When I do a hot rod and I’m in a hurry, I will take each panel and instead of just applying Bondo™ I can get everything in the ballpark with a heavy mil build. That way, I can then work with the product without putting Bondo™ on, or it allows me to work with the product and get my panels true. Because I can apply as much as a gallon on one panel and by the time I come back and hit it with 80, 150 and 400 grit, I’ve already removed 60% of the product while getting the build I need. That means I don’t have to put more Bondo™ on it. Anyone who does this type of work knows that it takes time to mix Bondo™ up and spread it.”

Evans also appreciates the PCL’s customer support as well. “Our PCL field rep is Paul Casanova and he’s great. They’ve been sponsoring me for the past six years and I used their products on the reality show Car Warriors (see Corvette photo) where we were able to complete cars within 72 hours with a high quality, long-lasting paint job. Without PCL’s products, we never could have been able to do what we did on that show.

And we probably wouldn’t have been able to be so creative and the quality would have suffered if we didn’t have the PCL primers and sealers when we did our Lincoln Continental (see photo) in just eight days on Autoholics. It’s a big part of my process and it helps me to do things in a speedy time. I tell people that I am a “mutt painter” because I never commit to one paint manufacturer or paint line, but I have stuck with PCL from day one!”

The first time he ever used PCL’s products, Rich Evans built a Hummer Limousine out of a 2002 Chevy pickup with a 333-inch wheel base.

Evans and his crew used PCL products while building this amazing 1976 Corvette on the T.V. car building competition Car Warriors

PCL Automotive Phone: (800) 752-1566 x 260 email: rlaguna@ellispaint.com website: www.pclautomotive.com

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 15

The Community-Focused Body Shop with Domenico Nigro

Domenico Nigro is the president of Nigro’s Auto Body, a very progressive shop for their community in Philadelphia. In addition to many productivity innovations, Nigro’s installs equipment for disabled drivers, has developed several phone Applications, and represents products which directly support charities such as United Way and the National Breast Cancer Foundation. Contact him at: nigroautobody@comcast.net.

Reaching Beyond Traditional Advertising to Engage Your Customers We know that customers only use a body shop once every seven years on average. For this reason, marketing to the end user is tougher than most other industries. To make matters worse, the insurance company is engaged in almost constant dialog with your cus-

tomers. This relationship allows them to direct (steer) customers towards body shops that succumb to their demands and play by their rules. What commercials do your customers see on TV? Insurance companies dominate the airwaves but they aren’t the ones fixing your car and they don’t necessarily have the shop owners’ best interest in mind. If they did, they would always use the specifications and recommendations of the car man-

ufacturer to use original parts when necessary, and not using aftermarket or used parts that are not recommended and take much more to install.

So how do we create our own relationships with the customers?

Traditional advertising can miss the mark, and the message may be lost by the time they need your services.

There are other sources of information for traditional marketing and advertising techniques, such as radio, tv and print media. I want to to discuss other ways you can make a lasting impression when reaching potential customers that may only need your services once or twice a decade.

We’re fighting an uphill battle.

How do we connect with new customers when most of them let the insurance company tell them where to take their car? There are several meth-

ods for making an impression and getting your message out, here a few that I’ve used successfully.

Get involved with local and national charities. We’ve done several campaigns that benefit local and national charities. This is a great way to separate your shop from the competitors and creates loyalty and awareness for your shop. This can be as simple as hosting an Alex’s lemonade stand event (see www.alexslemonade.org) outside your shop, or holding a toy drive, or something as complex as a benefit event. When you figure out what sort of involvement level suits your needs and resources, you can often receive press coverage by sending out a press release and most charities will assist with getting the word out.

One example we found very successful was the our “Choose your Charity” program, where customers

were given a choice of five different charities that they could donate half of their deductible to. Each of the charities promoted the program (and our shop) themselves because they directly benefit from its success.

Community involvement: Hold a class, sponsor a local event, volunteer for local non-profits. Community Involvement is a great way to reach your potential customers in a more intimate and effective setting. We’ve partnered with the local hospital and Safe Kids to serve as a Car Seat Inspection center and for a few hours each month we inspect and install car seats for free. This allows us time to engage the customer and show that we are dedicated to the community.

Partner with local schools, sponsor a little league team, or get involved with your Local Boy Scouts chapter to offer a badge. Take part in a spring cleaning or beautification proj-

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ect and ask your employees to volunteer too.

Word of mouth: This can be one of your best sources and it’s “free.” Of course, nothing is really free, and if you want to boost word of mouth referrals there is effort involved. Car accidents are one of the worst things that can happen to a customer. How can shop owners help to turn that negative experience into a positive one?

Make sure every interaction with your customers is a positive one. From the moment they pick up the phone or walk in the door, you’re creating brand impressions that could determine whether or not they would refer you others. Say “thank you,” educate them about the process, and never speak down to your customers. This may sound like common sense but you’d be surprised how many shops fail to follow these simple rules and loose referrals as a consequence. Take pride in your work and give them the best possible service you can offer.

The effort will be appreciated and the customer is more likely to tell others about their positive experience.

Ask for testimonials: If they seem satisfied, don’t be afraid to ask

for a testimonial. You can even offer a small incentive, such as a branded air freshener, for their time. Set up a computer at the office dedicated for online review sites so it’s easy for your customers to leave a review or testimonial while they’re still in your shop.

Keep in touch: Hopefully you’re already gathering customer emails.

Keep a list and send out monthly newsletters with coupons, tips and news. This helps you stay on their radar so that when you are needed, it’s easier for them to remember you as their first phone call when they get in an accident.

Offer referral rewards: You’re not going to go out of business by offering a referral reward. Many shop

owners feel like this is an unnecessary incentive but there’s no other marketing initiative that will guarantee you a better return on your investment. You can pre-print testimonial cards.

Take advantage of your storefront traffic: Use your building’s storefront and curbside space. You can tastefully add ground displays or banners that alert street traffic to specific deals or services you want to feature.

You can do it without being overwhelming or unsightly. The insurance companies have billboards, after all, and this is one way to compete in that market without the costs of billboard ad campaigns.

Education: An educated consumer is your best customer. Most consumers are shopping for price and don’t know how to look for true value in a shop’s products and services. Do they know the difference between value and price? It’s your job to educate them on the difference and then explain how you shop provides that value.

Teach them what to look for in an auto body shop, how the repair process works, and how claims are handled. This can be achieved through

a pamphlet, a video on your website, poster, floor displays, or face to face education. They should understand safety requirements and what they should expect from quality repairs and parts.

Educating the adjuster: Educate the adjuster on your processes. Tell them what you’re doing and why you’re performing certain operations on a vehicle. Go over the P-pages logic and give proper documentation to the adjuster. If you can prove that what you’re doing is right, and educate them, you can make more money on existing claims by getting properly paid for the services you provide. This is an easy way to increase your revenue without any increase in the number of jobs your shop sees and it’s the first step in leveling the playing field between your shop and the insurance companies. That should be your overall goal.

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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 17

Former MLB Pitcher, Now Motivational Speaker, Engages East Bay CAA Members

by Ed Attanasio

In a tough industry full of trials and tribulations, body shop owners are very susceptible to stress and burnout.

If they’re not encountering issues with customers, insurance companies, vendors and/or employees, they have to worry about things like their cycle times and car count. It’s a neverending struggle Best-selling author just to earn a buck and renowned motivational and make their speaker Mike payroll every week Robbins was the in this ever-changfeatured presenter ing business. at the EB-CAA’s And that’s why it monthly meeting was refreshing on March 20th when the East Bay California Autobody Association (EBCAA) Chapter featured an inspirational speaker at its monthly meeting held on March 20th at Scott’s Seafood restaurant in Walnut, Creek, Calif.

Sponsors for the evening were LKQ, Diamond Standard Class AAA Safety Parts and Enterprise Rent-A-Car. Best-selling author/motivational speaker Mike Robbins was the featured guest and presenter of the evening. His first book, Focus on the Good Stuff, reached #4 on the Amazon bestseller list, and his latest book, Be Yourself, Everyone Else is Already Taken, reached #17 on the Amazon bestseller list Robbins and his work have been featured on ABC News, the Oprah radio network, in Forbes, Fast Company, and the Washington Post, and on over 500 radio and TV shows in North America. He is also a regular

CAA Executive Director David McClune (left) and this year’s CAA President David B. Picton (G & R Body & Paint) were there for the EB-CAA’s March monthly meeting

contributor to Oprah.com and the Huffington Post.

As a former professional baseball player in the Kansas City Royals organization, Robbins’s sports career

was on track for stardom in the major leagues until he suffered an injury that ended his playing days instantly when he blew out his pitching arm. Through the healing power of appreciation and authenticity, as well as his own personal journey of self discovery, Robbins was able to move beyond the injury to find more meaning and purpose in his life, he said to the approximately 60 EB-CAA members in attendance.

Robbins has worked with clients such as Google, the San Francisco Giants, Wells Fargo, the US Department of Labor, Apple, Chevron, the State of California, New York Life Insurance, Genentech, the Gap, Stanford University, Adobe, Banana Republic, the Arizona Diamondbacks, Kaiser, UC Berkeley, AT&T, The Atlanta Braves, Sutter Health, The Vancouver Canucks, US Bank, and many others.

From left, Margo Brough (Premier Wholesale Parts) and Annie Thompson (Walnut Creek Toyota) enjoying the show at the EB-CAA’s monthly meeting

In a nutshell, Robbins’ message was: 1) People need to be more authentic 2) Be appreciative and show it and 3) Hey—quit complaining!

About authenticity, Robbins said, “If you want to be a true champion in your life, be 100% real all the time. If you’re afraid to tell people the truth, try it sometime and you will discover that it’s empowering. Many people massage the truth and it breaks down relationships and can lead to big problems. Why do people lie? Because they’re scared of losing business or being embarrassed, among other reasons. But if you can be totally authentic all the time, your life will change.

Be real with your spouse, friends and employees. Sometimes it might result in a 10-minute sweaty palm conversation, but in the end both parties will feel better and respect each other more.”

Robbins’s second point was to appreciate your life and the people around you and show it every day.

“Acknowledge your employees for

18 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

their work and let them know that you appreciate their hard work. Many employers don’t want to pass out the praise, because they feel as though their employees will get complacent, but just the opposite will take place.

And also humbly receive praise when people show appreciation to you.

Many individuals can’t take praise, so

tim, you can’t be the victor. There are a lot of things in life we can’t change, but we can control: 1) Our attitude 2) Our effort and 3) Our perspective. So, why complain about things we can’t control? Complaining is highly counterproductive, so concentrate on breaking that cycle.”

After his presentation, EB-CAA members asked Robbins a series of questions and then new Chapter President Tiffany Cichon-Silva made announcements and talked about upcoming events sponsored by the organization. Notable dates include May 22, when the EB-CAA’s monthly dinner EB-CAA Officers for 2012, back row, from left: meeting at Scott’s will feature Jack Sandri (Dublin GMC, Cadillac) and Mike Govette Richard Forness, an industry (Finishmasters in Concord); Middle row: Trish Pickens writer who will talk about the (Audatex); Peter Lock (Contra Costa College); Greg Decker (California Color Source) and Tiffany Cichon-Silva future of the collision repair business, sponsored by Auda(Accurate Auto Body). Front row, from left: Gigi Walker tex. Also, on June 2nd, the (Walker’s Auto Body & Fleet Repair); Kathy Mello (TGIF Body Shop) and Lisa Daves (D & S Body Shop) EB-CAA will host its 26th annual golf tournament at Diablo Creek they deflect it or re-direct it. Being augolf course in Concord, California. On thentic includes accepting praise as July 24th, there will be a summer barwell as distributing it.” becue at the PPG Training Center, And lastly, Robbins said stop where Aaron Schulenburg with the Socomplaining all the time. “In this culciety of Collision Repair Specialists ture, we’re chronic complainers,” he (SCRS) will be the featured speaker. explained. “If you’re busy being a vic-

BodyshopBids Helps Pay for Tornado Damaged Vehicles

BodyShopBids, a Web-based platform that allows consumers to solicit repair estimates from local body shops, announced it will help cover repair costs for vehicles that were damaged during recent tornados in the Dallas metro area. BodyShopBids said it will pay for 25 percent of out-of-pocket repair costs on consumer vehicles that were damaged in the storms throughout the month of April.

“For those Dallas-Fort Worth residents who suffered damage to their vehicle, we’re hoping to alleviate at least some of the stress by providing a simple solution to get their car back into shape and defray some of the costs,” said Brad Weisberg, founder and CEO of BodyShopBids.

Chicago-based BodyShopBids provides a Web and mobile platform to connect consumers who need auto body repairs with body shops through an online bidding system. Users are able to upload photos of their damaged vehicles and receive custom quotes from local body shops for free.

For more information, visit bodyshopbids.com.

I-CAR Adds Live Demos to its Spot Welding Course

I-CAR has announced it will integrate a live demonstration component into its classroom-led Squeeze-Type Resistance Spot Welding course (WCS04) beginning May 21. I-CAR said the overall course content will remain the same but some of the course modules will be enhanced with live demonstrations on properly setting up machines, aligning and maintaining the electrode tips, making spot welds, identifying and correcting weld defects, understanding how to visually inspect spot welds, and how to destructively test welds for quality.

Jason Bartanen, technical director for I-CAR, said having proper training and understanding of the practices and techniques used during spot welding weigh significantly on a technician’s ability to achieve a proper weld. The new live demonstrations will help teach practical applications and provide students with a visual learning format to enhance the learning experience. “With an increased number of vehicles being manufactured with high-strength steel and ultra high-strength steel, spot-welding is an effective solution for minimizing the heat affect zone,” Bartanen said.

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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 19

Industry Business Beat with Frank Sherosky

This is a new column in Autobody News. It will focus on investment opportunities in the auto industry and will feature guest columnists on a regular basis. Opinions herein are strictly those of the author. Autobody News accepts no responsibility for investment actions taken or not taken based on this column.

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Aluminum Stock—A Long-Term Auto-Related Opportunity?

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This article is reprinted from Torque News with permission.

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Aluminum and light-weight automotive body structures surely go together, no less than light-weight bodies and lower MPG. So, it should be no surprise that the earnings of Alcoa (NYSE:AA) would bring the company into focus once again, especially with the advent of higher MPG requirements by 2016 and 2025.

All of us know that forcing people into smaller cars is not advancement. Even a Ford engineering manager at 2012 NAIAS had the sense to say there is a limit to downsizing engines as well as auto bodies.

In fact, he noted the next wave of gains for automotive will have to come from lighter body structures.

Truth is, auto body structures are already becoming hybridized, but have a long way to go. They are still made mostly of sheet steel stamped in complex forms, then welded together for that unibody construction. However, they are getting increasingly amounts of aluminum and magnesium pieces, too, especially for the unsprung portions like suspension parts.

Looking at the future, consider the Tesla Model S and the Mercedes new SL. That’s where we need to go as an industry; and that’s where we are going as an industry. It’s simply a matter of time and investment.

With regard to Tesla and Mercedes SL, both have all-aluminum structures. They cost more money, but so do lithium-ion batteries. Furthermore, a lighter body structure would provide greater driving range even for full EVs. Now, imagine an all-aluminum Chevy Cruze, for example, powered by a revised Ecotec engine with a split-cycle configuration or even a downsized engine with an electric supercharger, stop-start and maybe even an air-hybrid component. Then the gas mileage would be awesome compared to what we have now even in the city; and the overall cost wouldn’t be formidable for the masses as what we have for EVs. Point is, any company that makes aluminum will be in the sweet spot,

provided they can remain healthy during this latest downturn.

Thus far, it seems Alcoa may be getting into fighting shape. Sure, there are other aluminum competitors, but AA is an American company; and its position to provide the American auto industry with what it needs can literally position itself like the companies that sold picks and shovels to gold miners of old.

Aluminum vs. Steel vs. Carbon Fiber One Torque News reader noted many months back that billet steel trades around $500/ton, while aluminum trades at $2,200/ton during a period of rock bottom aluminum prices. His implication seems clear: If you cut a thousand pounds off the weight of a car by going aluminum, the ton of aluminum you had would still add over a thousand dollars to every car.

While he agreed that lowering the weight of cars is definitely the future, there are lots of other ways of doing it. He felt the auto industry could very easily take a page out of Boeing book and investigate carbon composite body structures. Or a page from the SmartCar book and investigate highstrength steel reinforcements.

Fact is, the auto industry is already using those materials, just not extensively. Problem with carbon fiber is the cure time. Try doing that at the rate of 60 cars per hour. At least aluminum has the potential to have present welding technology, not to mention more use of extrusions which are far cheaper, thus eliminating many key stampings altogether. In highstress areas, castings could be used, as witnessed on the Mercedes SL. Alcoa Stock Chart Looking at a recent chart of AA, it is clear that aluminum and Alcoa have not faired well since 2008. And that should tell you something.

If the auto industry faired well before 2008, though, then crashed only to revive to its present position, perhaps aluminum use and production will likely follow that same pattern. It’s just shifted in its timing of recovery.

AA is now trading at 9.32 with its lowest low in the past five years at

20 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

4.97 and its highest high of the past five years at 48.77. That makes today’s price look like a cheap option play, in my opinion.

Granted, it is not my usual writ to recommend any stocks. I prefer to let the charts do the talking. However, I must admit this chart has yet to show a turnaround. Then again, today’s quarterly report may be the catalyst that might turn the trend; perhaps not all at once, but over the next year.

Personally, I will be watching the prices of the options as well as the stock dynamics for opportunities. For sure, the general market is swaying the entire market including the auto sector stocks, but that will not remain forever.

Frank Sherosky took early retirement from GM, Saturn and spent 39 years in the auto industry as a draftsman, product designer, CAD operator and Studio Design Engineer. His direct

experience within the auto industry enables him to contribute insights into business, people, processes and technology; and has written as the Detroit Automotive Technology Examiner. He also trades stocks & commodities, writes books and ebooks, like “Perfecting Corporate Character,“ “Millennial World Order,” “Awaken Your Body to Healthy Aging” and “Awaken Your Speculator Mind.” He lives in Clinton Township, Michigan with his wife and best friend, Judi.He may be contacted via his forwarding email: fsherosky@authorfrank.com and followed on Twitter under @Authorfranks

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Top Chicago Painter Prefers Preval’s vFan Airbrush for Mobility & Versatility

by Ed Attanasio Shawn Orr, 37, is a Chicago-based freelance airbrush painter who has painted murals on cars, helmets, dealership windows, trucks, semis, motorcycles and has even done some painting on human bodies as well. Orr uses the vFan Portable Airbrush System for precision paint and material dispensing, particularly touch-ups and surface repairs, as well as surface preparation and curing.

Orr relies 100% on his Preval vFan Airbrush to do touchups for body shops—work they would rather sub out than do themselves. “Body shops line up cars for me and I come in there and paint primarily bumpers with the Prevals vFan Airbrush,” Orr said. “This way the shop does not have to pay their painters a full day of wages to do a few bumpers. I can come in there and get it done a lot faster, because I’m mobile and they don’t have to worry about buying any new equipment or pulling their people off other projects to do the job.

Plus, I can do it in half the time!”

Sold globally, the Preval vFan Airbrush is made in the USA, and is used heavily in the automotive, aerospace, packaging, semiconductor, solar energy and textile industries, because it’s the only airbrush on the market that converts to an airgun and achieves both 3inch fan and 1/16-inch hairline patterns. Fully portable, the vFan Airbrush can be used in all environments when powered by 150 feet of energy, Preval’s innovative, ecofriendly aerosol compressor unit.

Each canister of 150 feet of energy contains seven ounces of VOC-exempt propellant that powers more than 150 feet of linear paint coverage and up to 40 square feet of paint coverage. The vFan Airbrush is also compatible with most workshop compressors.

Orr appreciates the fact that his Preval vFan Airbrush offers his body shop customers a great alternative and a smart way for them to improve their cycle times, he said. “If a shop wants to do this type of work inhouse, they have to tape it off and then in the end they’re painting the entire bumper of the car anyway to avoid overspray. With the Preval system, I only have to paint the immediate area on the bumper and feather it off at the edges and then put the clear on top of that. So, it saves time, money and materials for them. They take what I charge and mark it up appropriately, so it’s obvi-

SHOP & PRODUCT SHOWCASE Shawn Orr Freelance Airbrush Painter Location: Chicago, IL

Telephone: 773-456-4423

By contracting body shops throughout the Chicago area, freelance airbrush painter Shawn Orr can get the work done fast and efficiently with his Preval vFan Airbrush

ously another source of revenue for them.”

Orr also likes the versatility of the vFan Portable Airbrush System, he explained. “I spray the base, the color and the clear all with the vFan. Of course, in between each phase, I have to clean the airbrush, but it’s an easy task and it doesn’t take very long. The o-rings inside the unit are coated, so you can spray urethane, water-based paints and solvents. The air coming out of the cans is a dry air, so you don’t have to worry about moisture coming through the hose and ruining whatever you’re working on.”

During his 20 years as a mural painter, Orr hasn’t found anything like the Preval vFan Airbrush, he said. “The biggest difference is that it changes from a standard airbrush to a fan pattern air cap. It goes from about a one-inch fan pattern to about three inches. With the standard air cap you can use it to get those really fine scratches for hairline touchups, starting from 1/16th of an inch to a full inch. Then, with the fan pattern, you can do a full three-inch area. The mini jet can’t do that and a standard airbrush can’t go up in size like that, so that’s what distinguishes the vFan Airbrush.”

Orr has a wide range of clients and the VFan Airbrush is a nice fit in every scenario without fail, he said.

“Lots of people call for us for touch up work and in many cases we will go to their home to do the work. It’s a combination of do-it-yourselfers, customizers, interior vinyl/leather repairers, and of course, the body shops and car dealerships.”

Orr is currently doing a mural on a truck and it might be one of his best

projects ever, he explained. “We’re currently working on a truck for Oscar’s Auto Body & Mechanical in Chicago, Illinois. The paint job has black on the bottom with silver on top and fading into it, with an Aztec tribal sign in silver. We’re obviously going to do this design with the vFan Airbrush and we’re excited to see how it comes out.”

For retailing less than $200, Orr recognizes that the Preval vFan Airbrush is a superior value. “It’s definitely a great deal, because these airbrushes will last and they can work with most air compressors.

Each can has about 150 linear feet and that is more than enough for me to do touch up. And you have two cans with the system, so there’s enough to do an entire bumper with that supply, placing each can into the EDU (Energy Disbursement Unit).”

This allows for five times longer lasting spray.

By avoiding the use of a loud air compressor, Orr is able to concentrate more on his mural designs while creating, he said. “All you can hear out of the Preval vFan system while you’re using it is the sound of the air coming out of the tip of the airbrush. You won’t hear anything coming out of the portable air cans, which is nice. When you use one of those Chinese-made air compressors, it pretty much rattles the whole house.

When I come into a body shop to work, they don’t even know I’m there, because it’s so quiet.”

To see a demonstration of the Preval vFan Portable Airbrush, go to YouTube and search for: “Preval vFan Airbrush in the Field: Auto body.”

Orr covets the mobility, versatility and convenience of working with the Preval vFan mobile airbrush system

Retailing at less than $200, the Preval vFan Airbrush is an outstanding value for body shops, mechanical shops who do occasional touch ups and automobile customizers

Preval Spray Team Phone: (877) 753-0021 email: sales@preval.com website: www.preval.com

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 21

Service King Looks for Funding For National Expansion, Cathy Bonner to Direct Strategy Dallas-based Service King plans to embark on an ambitious national expansion led by new president Cathy Bonner intended to double revenue over the next five years. Service King Collision Repair Centers is actively looking for private equity to help fund a national expansion effort.

The chain of collision-repair centers, founded in 1976 by current chairman Eddie Lennox, recently opened seven shops in Houston and the fact that some were profitable after three months prompted Lennox to expand beyond Texas. Jennifer Kirk, vice president of marketing for Service Cathy Bonner King, said Lennox is spearheading the effort. Lennox announced the growth strategy internally to the company’s 1,500 employees in a video broadcast April 17. “We were able to experiment with a lot of things in Houston that might work for us nationally,” said Lennox, 57, a former bodyrepair man who started Service King in a three-bay tin building in West Dallas.

Most of Service King’s 31 shops and 1,000 employees are in the Dallas

CAPA Elects Clark Plucinski as Board President

The Certified Automotive Parts Association has elected Clark Plucinski as president of its board of directors. He began his post April 1. Plucinski is the second collision repairer who has had this position, following Bob Anderson of Sheffield Lake, OH. I am delighted with Clark’s election,” said Jack Gillis, executive director of CAPA. “A principal thrust of CAPA’s efforts in the year ahead will be to continue to build awareness and support of CAPA throughout the industry. Clark’s vast inter-industry experience makes him particularly qualified to continue the remarkable growth that CAPA has already experienced.”

Plucinski has more than 40 years of industry experience. He started his career as a collision repair technician in 1970 at a major GM dealership.

From 1973 to 1996 he was co-owner and president of BCP Auto Body Inc., a four-location collision company in the Washington D.C. area. He then became True2Form’s executive vice president of sales and marketing, where he helped create a chain of 43 collision repair businesses in four states.

area. The privately held company, which says it has a 20 percent market share in the area, expects to repair about 70,000 vehicles and earn $150 million in revenue this year. Service King is working with wealth management firm BB&T, based in Winston-Salem, NC, to help find the appropriate investment partner.

Kirk said Service King’s goal of partnering with an investment firm is to help the company establish additional shop locations throughout the U.S.—beyond the 47 facilities it already operates in Texas.

“We are not being sold or boughtout,” Kirk said. “Our goal is to become a national organization. We just want to grow beyond Texas, and become the largest and best-run collision center in the United States.”

Service King has not yet decided much about the new locations, or how much capital it needs to acquire, or even which areas of the country it target, Kirk said. Those decisions will be made in conjunction with the eventual investment partner.

Cathy Bonner, a Dallas native, is Lennox’s sister-in-law. She has started and managed three marketing and communications firms. She will take point

JD Power Says Customer Satisfaction is Down in 2012

Customer satisfaction with the auto claims experience declined during the first quarter of 2012 for the first time in three calendar quarters, according to J.D. Power and Associates’ 2012 U.S. Auto Claims Satisfaction Study Wave 2. Overall customer satisfaction declined by 13 points to 842, the lowest satisfaction level in the past three calendar quarters, according to J.D Power. The largest driver of reduced satisfaction scores was due to a 19-point decline in first notice of loss—when the customer first notifies the insurance provider of damage to their vehicle.

Jeremy Bowler, senior director of insurance practice for J.D. Power, said 47 percent of auto claimants delayed dropping their vehicle off at the body shop to wait for a more convenient time, and 20 percent waited due to weekends or holidays. He said those customers tend to have lower satisfaction as a result of waiting an additional day or more to get their vehicle to the shop. “This suggests insurers need to do a better job of managing customer expectations for claims processing and vehicle repair times,” Bowler said.

22 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

on developing a strategic plan for growth, determining which markets Service King should enter and overseeing that plan.

“Eddie approached me and convinced me I don”t need to know how to fix a car,” said Bonner, 60, a finalist in 2007 for The Dallas Morning News” “Texan of the Year” award for her work to pass legislation creating the Cancer Prevention and Research Institute of Texas. “I just get to build on their success.”

Bonner said she intends to have a growth strategy plan completed by the first of the year.

“I had a lot of experience identifying new markets and bringing in corporations when I was with the state,” said Bonner, who was part of a team of officials in the early 1990s that helped convince General Motors Corp. to not close its assembly plant in Arlington.

“This relates to growth and getting someone who can help us achieve it—and not ex-technicians like myself,” Lennox said.

Kirk said the growth initiative would not cause any changes to Service

King’s business structure. Lennox intends to remain involved with the company, and no employee layoffs are expected, she said.

Bonner, does not get stock in Service King, says she doesn”t view her job as a long-term position. Lennox’s 34year-old son, Jeremy, will assist her.

“I”m not going to dilute the stock,” she said. “I see my role as being short in terms of achieving the goals we want to attain.”

Despite its moves to get larger, Service King has no interest in going public, said Lennox, who holds 80 percent of Service King’s stock along with his wife. Managers throughout the company own the remaining 20 percent.

“We”re well capitalized, and we have good banking relationships,” he said. “We envision doubling our revenue in three to five years.”

“This is strictly a growth strategy, and the result of a growth plan we”ve identified for 2012. The timing is right,” Kirk said. “It’s all good for the employees at Service King. It allows for more opportunity for everybody within the company to grow with us in the future.”

Hyundai of Orange Park The right part makes the difference.

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MN Court Awards $157K in Progressive Ins. Underpays

GlassBYTES has reported that the Minnesota Court of Appeals upheld a decision that gave Rapid Glass, an automotive glass repair and replacement company, $157,851.46 for 580 underpaid and unpaid claims from Progressive Insurance.

The court ruled that the glass company’s charges were fair, reasonable and competitive. Rick Rosar, president of Rapid Glass, told GlassBYTES. “The windshield has become an integral part of the vehicle’s safety system. It is not a place to cut corners when a windshield needs to be replaced…”

The court said the dispute was whether Progressive satisfied the contract by paying “the amount necessary to repair damaged property to its pre-loss condition.” “[Progressive] was not required to interpret the term ‘necessary’ because the contract provided the definition…,” the court wrote in its decision. “Under the terms of the contract, ‘necessary’ means ‘a competitive price that is fair and reasonable within the local industry at large.’”

AAIA and ASE Recognize World Class Technicians

Of the more than 759,000 automotive technicians working in the United States, 20 outstanding individuals have qualified for the prestigious 2012 World Class Technician Award. The Automotive Aftermarket Industry Association (AAIA) and National Institute for Automotive Service Excellence (ASE) work together to recognize these professional technicians who have tested and obtained ASE certification in 22 specialty areas during the 2011 test administrated by ASE. “The AAIAWorld Class Technician Award is for automotive diagnostic and repair professionals what the Super Bowl is for professional football players or what the Stanley Cup is for hockey players,” said Kathleen Schmatz, AAIA president and CEO. “Just imagine the knowledge and skills needed by a technician to pass 22 ASE tests. These folks are truly the best of the best and we are proud to be associated with them through our annual recognition in conjunction with ASE.” “This recognition partnership between AAIA and ASE goes back 26 years and represents the most significant achievement award available to our ASE-certified professionals,” said Tim Zilke, ASE president and CEO.

Women’s Industry Network Adds New Boardmembers

The Women’s Industry Network (WIN) welcomes Jessica Voss-Kehl, Senior Product Development Supervisor, 3M and Melissa Perez, District Sales Manager, FinishMaster Inc. as the newest Directors to its Board. The WIN Board consists of various industry segments including but not limited to: shop owners, jobbers, suppliers, consultants, paint companies and insurance companies.

As an all volunteer organization, WIN Board members, serving 3 year terms, work together to guide the organization as well as foster an environment that encourages the education, recruitment, retention and networking of women in the collision repair industry. New board members will be introduced and officially welcomed by seated Directors and WIN members-at-large at the annual WIN Educational Conference, Be The Change, being held May 6–8 at the Intercontinental Buckhead in Atlanta, GA. To learn more about WIN, please visit www.WomensIndustryNetwork.org or for information on becoming a member, please contact Denise Caspersen at denisec@asashop.org.

CARSTAR & Mitchell Inc. Join Efforts on Store Management

CARSTAR Auto Body Repair Experts has developed a proprietary store management system that integrates its technology solutions with the Mitchell RepairCenter Shop Workspace to deliver technology tools to its store owners. The system is the culmination of significant technical investments to realize the vision of a tightly integrated system that will significantly improve CARSTAR store performance, the company said.

It enables the capture, processing and delivery of key data elements and metrics to help stores better manage their key performance indicators. The system also will provide the information required to forge strategic industry partnerships, CARSTAR said.

Reporting to support both insurance relationships and purchasing will benefit user shops.”

“The information gathered by using the CARSTAR Solution Software and the reports available are invaluable to our store and to the entire CARSTAR network in helping analyze our numbers and in selling to our local and national markets,” said Jan Combs, of Auto Body Specialists CARSTAR in Billings, Montana.

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 23

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NHTSA Proposes Standard for Brake-Throttle Override

The National Highway Traffic Safety Administration (NHTSA) has proposed an update to the Federal Motor Vehicle Safety Standard (FMVSS) No. 124, Accelerator Control Systems, according to the AAIA Capital Report. The proposal would require manufacturers to install a BrakeThrottle Override (BTO) mechanism in all vehicles.

BTO systems would trigger the vehicle to stop should both the accelerator and brake pedals be applied at the same time, which would reduce the risk of drivers losing control of their vehicles due to the accelerator pedal sticking or the entire throttle system becoming disconnected.

The Alliance of Automobile Manufacturers has been pushing for regulators to take action on this issue for some time, and most manufacturers have already begun outfitting their new models with these systems, according to AAIA.

“America’s drivers should feel confident that anytime they get behind the wheel they can easily maintain control of their vehicles – especially in the event of an emergency,” said U.S. Transportation Secretary Ray LaHood. “By updating our safety standards, we’re helping give drivers peace of mind that their brakes will work even if the gas pedal is stuck down while the driver is trying to brake.”

This proposal would also modify the current standard by accounting for throttle disconnection during the testing procedure of all vehicles.

Comments on the proposal must be submitted to NHTSA by June 15, 2012.

Early last year, NASA engineers found no electronic cause for the claims of unintended acceleration levied at Toyota. The report prompted Transportation Secretary Ray LaHood to blame the cases on “pedal misapplication.”

Chrysler Recalls Some 2012 Town & Country and Dodge Grand Caravans for Machining

Chrysler Recalls Some 2012 Jeep Patriot And Compasses for Suspected Fuel Tank Flaws

Chrysler is recalling certain model year 2012 Town and Country and Dodge Grand Caravan vehicles manufactured from November 15, 2011, through November 21, 2011. Some vehicles may be equipped with right rear hub and bearing assemblies that were not fully machined. This could result in a decrease in durability, which may lead to wheel separation, increasing the risk of a crash. Chrysler will notify owners, and dealers will replace the right rear hub and bearing assembly, free of charge. The safety recall is expected to begin during April 2012. Chrysler recall number is m13. Owners may also contact the national highway traffic safety administration’s vehicle safety hotline at 1-888-327-4236 (tty 1-800-4249153), or go to http://www.Safercar.Gov.

Chrysler is recalling certain model year 2012 Jeep Patriot and Compass vehicles manufactured from December 17, 2011, through January 2, 2012.

Some vehicles may have been built with a fuel tank assembly containing a damaged roll-over valve. In the event of an impact or roll-over, fuel leakage could occur, increasing the risk of a fire. Chrysler will notify owners, and dealers will replace the fuel tank, free of charge. The safety recall is expected to begin during June 2012.

Chrysler’s recall number is m11. Owners may also contact the national highway traffic safety administration’s vehicle safety hotline at 1-888-327-4236 (tty 1-800-4249153), or go to http://www.Safercar.Gov.

26 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

Study Says EVs Cost $1200 Less to Run

Drivers of electric vehicles such as General Motors Co.’s Chevrolet Volt and Nissan Motor Co.’s Leaf may save as much as $1,200 a year compared with operating a new gasoline-powered compact car, scientists studying improved fuel economy found.

With gasoline at $3.50 a gallon, drivers who plug cars into electrical outlets would save $750 to $1,200 a year instead of buying gasoline for a new car that gets 27 miles (43 kilometers) a gallon when driving 11,000 miles a year, the Union of Concerned Scientists said in a study released today.

“While in this early electric vehicle market these products have higher up-front costs, knowing how much one can save by using electricity instead of gasoline is an important factor for consumers,” the study by the Cambridge, Mass.based group said.

Ford Motor Co., maker of a Focus electric car scheduled to go on sale this year, said last month the price will start at $39,995 before a $7,500 U.S. tax credit. Nissan’s Leaf starts at $35,200.

The Focus costs more than the $16,500 base price for the gasoline-powered version, Eddie Fernandez, a spokesman for Ford, said in an e-mail. The U.S. National Highway Traffic Safety Administration rates the fuel economy of the Focus SFE, a gasoline-powered model, at 33 mpg for city and highway driving. The electric Focus was certified by the U.S. Environmental Agency to offer the equivalent of 105 mpg.

Edmunds.com, an auto-researcher, predicts electric vehicles may reach only 7 percent of U.S. auto sales by 2017 even when consumers take rising gas prices into account.

The average U.S. gas price was $3.91 as of Sunday, according to U.S. motorist group AAA. That’s a 19 percent increase so far this year.

May 2012

Automakers Could Face up to $250M in Recall Fines Automakers nationwide are likely clutching their wallets and clenching their teeth after the announcement that recall fines could cost them $250 million instead of the current $17 million fine.

A bill affecting the National Highway Traffic Safety Administration (NHTSA) that would raise the maximum fine for not issuing recalls in a timely manner $233 million from its current maximum already passed the Senate and is pending approval in the House of Representatives.

Consumers Union, the advocacy group connected to Consumer Reports backing the surface transportation bill, says that the $250 million fine would elevate recalls for automakers to a level of concern instead of being a “cost of doing business.”

This isn’t the first push to increase NHTSA’s involvement in automotive recalls. We told you last month about the push to get NHTSA to oversee recalls by car rental companies. Consumers Union also supports that position.

Mopar Division Introduces First In-Vehicle Wireless Charging

After being the first to eliminate heavy, bulky owner manuals from its vehicles, Chrysler Group LLC, through its Mopar® division, will now be the first to eliminate unsightly dangling power cords in its vehicles by offering in-vehicle wireless charging. The company will first make the technology available on the all-new 2013 Dodge Dart that arrives in dealerships in the second quarter of this year.

“At Mopar, we look for every single opportunity to make our customers’ lives easier,” said Pietro Gorlier, President and CEO of Mopar, Chrysler Group LLC’s service, parts and customer-care brand.

“Our industry-first in-vehicle wireless charging system is the perfect solution for those customers on the go.”

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Gonzo’s Toolbox with Gonzo Weaver

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com.

Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

“GI—Think Like a Mechanic!”

After high school I made the choice to join the Marine Corps. It was a big step for a young guy who really didn’t have a direction, nor thought about the future. So, off I went to boot camp. I’ll admit it was tough, it was physically demanding and very mentally challenging. But, I did very well, got a lot of good marks and even a couple of special awards.

One of the biggest surprises was when my platoon was on the “mess and maintenance” week. I was assigned to the commandant’s headquarters building. I was to shine all the brass, wax the floors, and general building maintenance. One day the Sargent in charge said it was time to mow the grass. He sent me and two other recruits out with scissors to clip the lawn in front of the headquarters building. Really, I’m not kidding…scissors, and I’m not talking about a large pair of scissors, no…

more like your typical size for any home office or school desk.

Well, being the bright, eager young lad I was I had to ask.

“Sargent, ever hear of a lawnmower before?”

Not that I was being smart and all… it just struck me as dumb they wouldn’t have a lawnmower to do this job. But, then again, why not get a couple of young recruits to clip the lawn with scissors… we’ll work cheap.

“Come here soldier, see what ya think of this,” he said.

In a hall closet just inside the building there were four mowers stacked up on top of each other. They all seemed to be the same brand of mower, but all of them seemed to have been taken apart and there were lots of parts missing.

“Well, can we use them Sarge?”

I asked.

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“Those things haven’t ran since I’ve been here, but if you think you can get one of them going, it would make us all look good,” the Sargent answered.

Luckily, the Sargent had a small box of tools stashed away, which just so happened to have all the missing parts stored in it from the various mowers. After some careful maneuvering I managed to get the mowers separated, and within an hour I had three of them running. Talk about a proud bunch of Marines mowing the commandant’s lawn. OohRah! The Sargent got a promotion out of it, and I got a special award for my efforts.

Not a bad day in boot camp after all.

I really didn’t touch a car for a long time after that. I spent a long time overseas and cars weren’t on the top of the list of things to be concerned about. It wasn’t until I was stationed stateside, and I was leaving my barracks one day when I noticed these two guys sitting on the sidewalk with an entire four barrel carburetor laid out in pieces in front of them. These two jarheads had no clue what they were doing. They were taking apart anything that had a screw on it.

Clearly, these guys needed some help.

Now, I spent enough time back home working on my grandparent’s farms keeping the machinery running and reading a lot of old service manuals my dad had collected that I had a pretty good idea what I was doing.

“Need some help?” I asked.

“Sure could use a hand,” one of them said to me.

The big challenge was to put all the parts back together on the carburetor without a new gasket kit, and make it work again. I’m telling you,

this was one big mess for sure… these guys went as far as taking the small screws out of the butterfly flaps.

(Never had much luck getting those things out when they are peened into place myself.)

After I had the carburetor back together and installed on the car the last thing was to put the plugs back in and sort out the firing order. Only one problem, they broke one of the spark plugs off while taking them out.

“Looks like we’ll have to run it on 7 cylinders for now,” I told them.

It took a minute or so for the fuel to get up into the carburetor, but it did run. The exhaust was falling off, it was running pretty rich, but it was running. The guys were ecstatic!

They bought the car for 50 bucks from another Marine who was getting shipped out, and the car had been sitting for about a year right there in the parking lot. Just hearing it run was an improvement. We all hopped into the car and drove around the barracks a few times belching smoke, backfiring, and making enough noise to bring the MP’s to the scene. (They thought it was pretty funny too… let us go with a warning.)

After this little escapade I ended up being the barracks’ mechanic for everyone’s car problems. Most everything was “parking lot” type repairs, no engine rebuilds or tranny exchanges, just basic problems that could be handled with basic tools that a couple of young Marines could afford.

It wasn’t til after I was out of the service that I realized repairing cars seemed to always fall into my lap. So I guess it’s safe to say I was destined to be a mechanic no matter what. A few tech classes, a little tutelage under an old watchful senior mechanic, and I was in business for myself.

Well, here it is a few decades later and I’m still turning wrenches, I’m still scrapping a knuckle, and still making a living at it. I guess you could say it’s my career.

Looking back on it now I guess I could have done something else with my working years, but like a lot of us See Think Like a Mechanic, Page 35

www.autobodynews.com | MAY 2012 AUTOBODY NEWS 27

Northeast News with Chasidy Rae Sisk

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.

CCRE 2012 Seminar—Taking Back the Collision Repair Industry When I first found out I was going to attend the Coalition for Collision Repair Excellence (CCRE) legal seminar in Philadelphia on March 30th and 31st, I thought I would need a pillow and lots of caffeine, but I could not have been more wrong. The seminar offered a wealth of intriguing knowledge, much of which I’d never heard of or even imagined. CCRE represents

Tony began by saying that this problems that consumers have as a rewas a good industry when he first sult of repairers’ problems with insurbegan his career, but collision repairance companies and realized that ers gave it away over the past twentyconsumers have nowhere to obtain infive years in exchange for systems formation to understand the repair supposed to make their jobs easier. By accepting and following these systems, such as estimating guides, repairers have become manipulated by third-party influence. Repairers’ investment, in both time and money, should yield a profit.

Through a planned program of taking John Parese and Erica Eversman confer control of your busiLeft to right: Robert McClallen, William Bensley and Ashly Van Earl ness and realizing process other than the insurance coma whole movement dedicated to rethat the insurance company has no pany or the repairer. Reiterating viving and regaining an industry that place in your business, collision repair Tony’s point about the combination of has been guided by third-party intershops can still make a profit. As Tony the two separate contracts, Erica noted ference for decades. The experienced stressed, “This has to become OUR that in DRP contacts, the insurer may collision repair shop owners and the collision repair industry.” or may not direct business to the relawyers in attendance presented much Discussing how this problem pair facility, yet they act as if the readvice to attendees as well as the opbegan, Tony noted that there has al- pairer has obligations to the insurance portunity for shop owners to ask their ways been two separate contracts: one company while they feel no obligation own, personal questions. I will sumbetween the vehi- to the repairer. marize some highlights of the seminar cle owner and the In the contract between the vehihere with plans to exploring some of insurance com- cle owner and the repairer, the vehicle these topics in greater depth in the pany, and another owner’s obligation is to pay while the near future; however, I highly recombetween the vehi- repairer is obligated to provide a qualmend all shop owners to attend cle owner and the ity repair. As oral contracts are diffiCCRE’s next seminar, which they repairer; yet, cult to enforce, Erica recommends plan to hold in six months, in order to somehow, these having a written contract with the veErica Eversman learn first-hand that there are solutions two contracts have hicle owner to protect yourself. In this to the multitude of problems that arise joined each other as collision repair contract, it is important to define your shops now have contracts with insurcustomer, each party’s duties and what in the industry. Because it is your industry, and as CCRE President Tony ance companies through DRPs. Tony parts will be used. The specifics of Lombardozzi emphasized “no one asked: why do insurance companies these definitions vary based on indielse is going to take this industry back assume they have a say in the revidual state laws, but a valid contract except the repair shop owners thempairer’s contract with the vehicle makes it easier for the repairer to obselves.” owner while the repairer cannot intertain payment for the work they do.

The event, hosted by the Pennsylvania Collision Trade Guild (PCTG), was held at the Airport Hilton in Philadelphia, PA. One hundred and ten people were in attendance from varying fields, including many lawyers who specialize in this field. Many of the attendees were nonCCRE members, and twenty-five From left, Rick Dotterer, Steve Behrendt, Truman Fancher, Tony Lombardozzi, and Mike Parker states were represented with people coming from as far away as Texas, fere with the insurer’s contract with Erica also explained that insurNew Mexico and Nevada. Tony Lom- the customer? ance policies give insurance compabardozzi moderated the majority of Erica Eversman, Ohio attorney nies three options: replace the vehicle, the seminar with presentations being and General Council for Vehicle Inpay for the loss in money, or elect to given by attorneys Erica Eversman formation Services, became involved repair. Insurance companies rarely of OH, John Parese of CT and with the issues in the collision repair elect to repair because it makes them Robert McClallen of VT. industry when she learned about the equally responsible as the shop for the 28 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

quality of the repairs; however, through DRPs, insurance companies are able to assume control of the repair without accepting liability. Erica went on to discuss several legal cases and examples of the insurance companies choosing inferior shops to save money.

Insurance companies write estimates to verify there is damage and to find out how much money to reserve for the claim, but these estimates are written for internal purposes only and mean nothing because insurers do not fix cars—they just pay for repairs.

Erica noted that contracts do not override consumer protection laws, but since few consumers know their rights or realize they are being taken advantage of, insurance companies often ignore consumer protection laws or try to pressure collision repair facilities to do so.

Before introducing the next segment, Steve Behrendt of CCRE and PCTG noted that shops should have a solid contract customized for how they do business, and he revealed a sign that hangs in his shop specifying that insurance company paperwork, such as estimates, are used for informational purposes only and do Steve Behrendt not determine the methodology, extent or cost of repairs.

Continuing her presentation, Erica agreed that the insurer’s estimate is for informational purposes only, emphasizing that the insurer has no place in your business. Spelling this out in the contract allows repair shops to control their relationship with the customer, keeping the shop in the role of a professional and the insurer in their proper role. She also suggests addressing replevin in the contract, granting shops a lien that allows them to retain possession of the vehicle until they are paid for their work. One section of her sample contract also grants the shop the right to recover their lost profit if the insurance company steers the customer to a different shop.

See CCRE Seminar, Page 30

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Poway, CA, Navy Veteran Has Vehicle Painted to Honor Troops

Kano Williams, US Navy Veteran HM1(FMF/PJ), had his 2006 Dodge Magnum RT painted as a tribute piece for all armed forces, active and retired, in October of 2011. At first Kano had

decided to make the concept permanent by getting it airbrushed on my car,” said Williams.

Kano’s car was featured at last year’s SEMA show and also just fin-

The beautiful artwork painted on the car was the work of Wesley Smith at Studio Wes in Lemon Grove.

The inside of the car carries on the theme with purple upholstery and

an organization that uses all variations of vehicles as a way to create awareness for the past, present and on-going military related affairs. The group is a non-profit, veteran owned and oper-

the car wrapped with a vinyl graphic with a similar concept to the way the car is painted now. He decided to make the photos and concept permanent by having the design airbrushed on the car. All the photos on the vehicle are actual pictures of the 6 tours Kano has done throughout his career in the armed forces. The Purple Heart design is also inspired by Williams’ career as he is a Purple Heart recipient.

“The car was really getting a lot of attention with the vinyl on it so I

ished the DUB Tour in Anaheim, CA, earlier this month, where it won Best of Show in Painted Graphics. Kano’s car will also be part of the inaugural Veterans’ Cruise for a Cause in Oceanside this year.

The shop that did the build was Sinful Enhancements in Lemon Grove, CA. Owners Sinh and Han helped Kano accomplish his dream car.

more Purple Hearts embroidered in the headrests.

Kano is the CEO for an organization called Vets Cruzin’ for a Cause,

ated organization. They hope to raise money to provide bi-annual bike and car shows in selected areas, as well as, hosting an annual bike/car ride/cruise.

For more information about this organization visit: www.vetscruzinforacause.org.

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Continued from Page 28

CCRE Seminar Turning the discussion to parts, Erica insisted that shops should never offer a warranty on parts, especially aftermarket parts, but they should warrant the quality of their repairs. While insurance companies can guarantee the work of a DRP shop, this means assuming liability.

They usually offer Truman Fancher warranties on replacement parts but not on workmanship, unless specifically stated.

Noting that warranties are like insurance policies in that they have more exclusions than coverage, Erica stressed that manufacturers’ warranties will often be void if aftermarket parts are used, yet many insurance companies require shops to use these parts in their DRP contracts. She also pointed out that insurance companies are great at propaganda; many insurance ads create the impression that insurers are involved in the repair, and they focus on magical restorations.

In the Question and Answer section of her presentation, Erica noted that insurers only fear bad press and litigation as it presents unknown and unknowable costs.

While other businesses are forced to comply with Tony Lombardozzi consumer protection laws, insurance companies are generally exempt and are only investigated if there is proof that their actions are common practice.

John Parese Esq., of CT presented next in regards to tort reform.

Tort requires those responsible for harming others to compensate their victims, and the classical purpose of tort is to provide full compensation for proved harm. Tort reform proposes changes to reduce tort litigation on damages by setting procedural limits on the ability to file claims and capping the awards of damages, among other things. Advocates of tort reform include automobile manufacturers and insurance companies, in addition to the tobacco, chemical and pharmaceutical industries.

John then proceeded to show clips from “Hot Coffee,” a documentary

about Stella Liebeck’s lawsuit against McDonald’s when she spilled coffee in her lap. These clips show a different side to the case than what was seen in the media, validating this seemingly frivolous lawsuit. John stresses “If you don’t even know the basic minimal standard that you need to employ and then you harm someone, the consequences can be very significant.

John noted that these same tactics are being used to change the collision repair industry as insurance companies come out on top through public relations. Some of their methods are DRPs, insurance involvement in setting repair guidelines, misleading commercials and legislative “reforms” to allow more steering and greater control over repairs. He asked “does it feel like there’s an ever-encroaching insurer presence changing fundamental ways of doing business, relentlessly grabbing for more and more of your business, in part through a perpetual public relations and legislative campaign of distorted information?”

Continuing the presentation, John explained that consumers are misled by false perceptions that insurance companies fix cars and by propaganda reinforced by uninformed courts, legislators and state officials. They are also given false information regarding warranties, delays, quality, rentals and trust. Yet, most consumers do not even know they have been harmed!

After watching several insurance company ads that show magical repairs and stress that the insurance company repairs vehicles, the audience erupted in applause to see an anti-steering commercial. The dissemination of this type of information is one way that the collision repair industry can fight back, through recognizing the problem and playing the same game of public relations. Collision repair shops’ goals should be to get the insurer out of the repair process, remember who the customer is and use a well-reasoned strategy of informing. Make things about the process, not the money.

SCRS Executive Director Aaron Schulenburg then gave a brief but informative report on information they had received regarding the new State Farm parts bidding program (see related story this issue) and the potential impact the process could have on repairer processes and profits.

Attorney Robert McClallen of VT then began discussing assignment of proceeds. This document is useful

30 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

as it allows the repairer to effectively step into the consumer’s shoes in order to sue the insurance company and get paid for their work. By signing an assignment of proceeds, the customer gives the collision repair shop the right to force the issue and receive payment. In creating an assignment of proceeds for your shop, it is important

company for repeated short pays. During the trial, Mike stressed that he felt like he was a “co-conspirator to defraud consumers” when questioned about why he asked to be taken off direct repair programs. Rob was able to prove the insurance company practiced steering against Mike as well. In his closing argument during the trial,

Left to right: Joe Talarico, A. Brent Geohagan, John Parese and Erica Eversman gave legal advice

to clarify and specify exactly which rights are being assigned. Erica stresses that the wording of the document must be correct because shops will not have the right to sue if it only grants them rights to proceeds; it must also grant the right to act as the consumer in order to obtain payment.

On Saturday morning, the seminar resumed with a presentation by Robert McClallen and Mike Parker of CCRE as they discussed how Mike was able to use his assignment of proceeds to successfully sue an insurance

Rob stressed that the insurance companies have no legal way to do this.

“They’re just doing it because they’re big and they think they can.” Rob consolidated Mike’s 38 claims, all firstparty claims because of short pay, and he won every single case.

Mike emphasized the importance of making sure the customer knows exactly what they are signing so that, in a trial, the insurance company cannot claim customers were coerced or unaware of what rights they were assignSee CCRE Seminar, Page 44

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Industry Insight with John Yoswick

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

Contact him by email at jyoswick@SpiritOne.com.

Standards Program in the U.K. Offers Lessons for the U.S. As the discussion of how and whether through observing the U.K. market the industry should develop some sort and speaking with shops there. of formalized collision repair stanHe predicated his remarks by dards continues,with Paul Gange brings a saying that Fix Auto USA is commitEd Attanasio somewhat unique perspective on the ted to repair stantopic. dards, ensuring Gange is the president and chief that all of its franoperating officer of Fix Auto USA, chises here, for exwhich has 48 franchise locations in ample, maintain four U.S. states, as well as 151 shops the I-CAR Gold Class designation around the country using the comwith Ed Attanasio of ongoing trainpany’s services as part of a more Paul Gange ing, and use a loosely-knit “network.” third-party, VeriFacts Automotive, to But Fix Auto also has a similar organization in the United Kingdom, help ensure repairs are being done correctly. with 68 franchises in a market that has implemented a repair standards pro“Fix Auto is committed to repair gram that is most often mentioned as standards that are universally adhered a potential model for one in the United to and which ensure vehicles are reStates. turned to the road safely,” Gange said.

Speaking recently on the ColliThat said, he offered the followsion Repair Executive Webcast ing prescriptions and warnings for (CREW), Gange shared some of the those involved in the standards effort perspectives on standards he’s learned here.

Shop Showcase

Social Media for Shops

● Discussion of standards can easily lead to multiple “standards.”

Gange said the standards effort in the U.K. began in the 1970s along with the shift to unibody vehicles. One industry organization developed a standards program, which about 2,700 U.K. shops implemented over a fouryear period. But 300 other shops balked at that standard, and created and implemented a different set of standards. Eventually there were at least three such programs, and shops

found themselves being required by different insurers to implement multiple standards, just as U.S. shops often have multiple estimating systems to meet different insurer requirements.

“This was, at the very basis, a bit of a mess,” Gange said.

Some say the U.S. market is going down a similar road, with an increasing number of shop certification programs by the automakers and See Standards Program, Page 33

Other Voices on Standards

Several other industry participants offered their view of the industry standards development process during a recent Collision Repair Executive Webcast (CREW).

Mike Quinn, who co-chairs a Repair Standards Advisory Committee working on the issue, said crash testing of a vehicle repaired using methods considered safe just a decade ago showed that if used today, such Mike Quinn methods would compromise the safety of passengers in a subsequent crash.

“The results were disastrous, and if we don’t think we’re under a microscope by litigious attorneys or governmental agencies, we’re kidding ourselves,” Quinn said. “The ostrich approach has not worked for our industry. The consumer expects and should have comfort that cars are being safely repaired to a standard so their family is safe in that repaired automobile. We have to move forward.”

Denise Caspersen of the manager of the Automotive Service Association (ASA) Collision Division, agreed that standards could improve shop consistency and efficiency, as well as repair quality, customer satisfaction and the industry’s professionalism. But, she said, ASA members have expressed concerns about whether a standards program would be open to shops of all sizes, whether it would be recognized by consumers, and whether it Denise Caspersen would offer a return on investment for shops or rather just add another cost for shops.

Steve Nantau of Ford Motor Company agreed that in order to be successful, a standards program would have be recognized as valuable by consumers and insurers. He believes if the industry doesn’t develop a single, recognized program, even more automakers and other groups will implement their own such program, none of which will end up with enough “traction” for Steve Nantau widespread recognition. www.autobodynews.com | MAY 2012 AUTOBODY NEWS 31

with Chasidy Rae Sisk

Mainstream Media

This column reprints articles referring to the collision and auto repair industry as given in the general press.

Autobody News thanks the copyright holder for giving permission to reprint such works.

Complaints Lead to Arrest of Ohio Car Restoration Business Owner

by Jami Kinton, News Journal

Authorities capped a five-month investigation April 11 with the arrest of a Shelby, OH, man on multiple felony charges.

Local officials say they were prompted by complaints from 17 cases of unhappy car-restoration customers, who combined said they lost more than $300,000.

Keith Shellhouse, 46, was charged with aggravated theft, a thirddegree felony, and theft of a motor vehicle, a fourth-degree felony, said Richland County Deputy Sheriff, Rich Eichinger.

“I’ve been doing car restorations for 30 years,” said Shellhouse, owner of Independent Autobody and Pro Restorations at 4952 PlymouthSpringmill Road. “Did I steal? No, I did not steal anything.”

Richland County Sheriff’s Maj. Dale Fortney said the department was assisted by the Attorney General’s Economics Crimes Division and the state Bureau of Criminal Investigation, the National Insurance Crime Bureau, the Ohio Department of Taxation, the Ohio Collision Repair Board and the Bureau of Motor Vehicle Investigations. He said there were more than 30 victims, but only 17 kept good enough records to take to a grand jury.

“People had to refinance their houses, sell land,” Eichinger said. “He only finished one car since 2002 and he’s had 20-plus cars waiting. Yes, it does take time to restore cars, but then why would you continue to bring in new cars when you have so many you haven’t even started?

“I think he just wanted more and more money coming in. It was kind of like a Ponzi scheme.”

Shellhouse said previously his car restoration business has resulted in award-winning street rods. The shop also offers collision repair service, and its website promises customers a 100 percent money-back guarantee.

Some customers report a different experience.

Bill Stouval, of New York, found the shop online. “(Shellhouse) came to pick up my car on July 31, 2009,” Stouval said

of his 1986 Chevy Camaro High Rock Z28. “He told me he would do a complete restoration. He told me when he was done it would be better than when it rolled off the showroom floor.”

Stouval said Shellhouse estimated it would be a two-year project.

Stouval said he paid $5,000 up front and was told it would cost $15,000 to complete the project.

Keith Shellhouse. owner of Independent Autobody and Pro Restorations, 4952 PlymouthSpringmill Road, Shelby, OH, is taken to the Richland County Jail on April 11/JAMI KINTON/NEWS JOURNAL

“I chased him down every month and asked how it was going,” Stouval said. “He was really good at ignoring my calls. I had to call from other phones, and his mailbox was always full. Neighbors said they’d see people beating on his door, knowing he was inside but he wouldn’t open it.

“When I would get a hold of him, he did admit he hadn’t made much progress but had every excuse, ‘I’m waiting on parts. I’m about to get a divorce from my wife. I lost my cellphone.’ Normally, you’d say, ‘OK, well then you’re fired.’ But when this guy has thousands of your dollars, you can’t do much but say, ‘OK, when are you going to be back on track?’ “ Stouval said Shellhouse collected $9,400 from him.

Judy Boyd had a similar story.

“I had a 1972 Corvette and my husband at the time wanted to surprise me and have a restoration done on it,” Boyd said. “He found Keith on the Internet, but I really didn’t want someone to touch my car because I was afraid something like this would happen.”

Boyd said she paid Shellhouse $9,000.

“I took my car over to him in one piece and got it back in pieces,” she said.

On March 16, 2002, Boyd asked

32 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

that the vehicle be stripped of all body paint, repainted and completely refinished within two years.

“On Oct. 9, 2003, I went over there and found that he had disassembled it, but done absolutely nothing,” Boyd said. “He’d also left my frame out in the field and it had completely rusted.”

Boyd said all calls were “short and argumentative” and emails received no response. She finally sought legal help.

“I loved this car dearly. When I think about it, it just makes me want to cry,” Boyd said.

Members of the Northern Ohio Violent Fugitive Task Force arrested Shellhouse at 8:30 a.m. Wednesday at his business.

“Sure looked a lot different in there this time,” said Deputy Chuck Kochis, who was present in November when authorities searched the

business and seized three vehicles. “It looks like he’s actually trying to work on cars now. I’m sure he’s upset because he’s trying to build his business back up. But he dug his own grave.”

Shellhouse’s wife, Tammy, who works in Mansfield, was waiting to collect her husband’s possessions at the jail.

“He did nothing illegal,” she said.

“They raided my house with bogus search warrants.”

Shellhouse is expected to be arraigned the week of April 15. Authorities ask people with complaints to call Eichinger at 419-774-3572.

Autobody News takes no position on the guilt or innocence of the persons featured in this article and all are innocent until proven guilty.

This story is reprinted here by kind permission of the author, Jami Kinton, and the Mansfield News Journal.

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Continued from Page 31

Standards Program third-party certification programs, such as one being launched by the Assured Performance Network. ● Create a system that is free from bias. While the industry in the U.K. has shifted in recent years toward a single standard, Gange said there’s some question as to whether that program treats all repairers equally.

As an example, Gange said that most shops are subject twice a year to unannounced assessments of their compliance with the standards.

“These are arduous assessments,” he said. “They are very, very detailed.

And if you fail that assessment, you lose your certification.”

But Gange said one mobile repairer organization in the U.K., which focuses on light hits and bumper repairs, faces such assessments at only a subset of their “locations,” which are essentially vans, rather than at all locations like most other repairers. That reduces their costs of compliance, Gange said, which some traditional repairers view as unfair.

In addition to that type of sitation, Gange said he would like to see the U.S. also avoid a standards system that isn’t open to anyone willing and able to comply. Automaker shop certification programs, for example, generally require an independent shop to have a relationship with a dealer, which may make such a program open to one shop but not to another, equally-qualified shop.

“Repairers wiling and capable of investing, if that’s required, or adhering to standard specifications and doing the work that’s it’s going to take to ensure that they can repair vehicles properly should have a right to repair that vehicle,” Gange said. “I would not want there to be a standard that excludes a shop that wanted to adhere to the standard but perhaps wasn’t able to participate because it didn’t have the endorsement of another organization.”

● Don’t underestimate the cost of standards. Gange said that while the standards program in the U.K., is “at its essence positive, it’s riddled with bureaucracy, and along with bureaucracy comes costs.” Gange said that shops in the U.K. feel they bear the burden of

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these costs, including a $30,000 to $80,000 initial implementation fee, along with the equivalent of just under $8,000 a year in annual training. Much of that training is provided through Thatcham, an insurer-funded research and training organization in the U.K. Gange said the industry here may want to ensure there are multiple organizations helping implement any standards program.

“I think what we would want to have in this regard is a healthy marketplace for those that do the training and the assessments and the initial implementation,” Gange said. “That will help keep the prices down.”

Gange was asked if the standards program in the U.K. has led to increases in repair costs and total losses there.

“At some point you have to expect that when you’re spending $30,000 to $80,000 to implement a standard, and another $7,000 to $9,000 a year to maintain a standard, those costs have to come out somewhere,” Gange said. “And I think its fair to say they have come out in the cost of repairs ultimately with an increase in total losses.”

● There needs to be recognition of the standards by insurers and consumers. Gange said the U.K. standards program uses the “Kitemark” brand for shops meeting the standards; similar to the “Good Housekeeping” seal here, Kitemark is a well-recognized symbol among UK. consumers.

Without recognition by insurers and consumers of the value of choosing a certified shop, Gange said, shops not meeting the standard will use their lower costs to market lower prices – generally for a lower-quality or even unsafe repair.

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

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Airbrush Artist Shannon MacDonald Uses PPG Envirobase to Bring Icons to Life on Vehicles and Just About Everything Else

by Erica Schroeder

Airbrush artist Shannon MacDonald, who exhibited her airbrush portrait of John Lennon at the Anest Iwata booth at SEMA 2011, uses PPG’s Envi-

KILLER (parrot) was created in 1991 by Shannon and made his way onto mall backlit duratrans, large street billboards, teeshirts, motorcycles, automobiles, night clubs and more. This particular painting was done in 1994 on a Camaro show car hood. It was painted with an airbrush using One Shot sign paint kicked with Dupont gloss hardener

robase waterborne paint to bring her art alive on just about every surface.

Shannon’s art has been featured on guitars, drums, motorcycles, boats, cars, planes, helmets and of course traditional canvas or illustration board.

“I use PPG’s Envirobase on everything now,” said Shannon, “I love it and it seems to love me.”

Shannon, well known for her lifelike portraits of iconic celebrities such as The Beatles, Sylvester Stallone, James Dean, Jackie Kennedy and Elvis Presley—among others, failed art in high school due to differences she had with her art teacher. Instead of pasting macaroni on paper and throwing glitter on it she rebelled and went to the back of the room to study the “Old Masters” (Norman Rockwell, Michelangelo, etc.). Her teacher would insult her and say, “You will never get anywhere drawing those pigs”. Her teacher was referring to Shannon’s drawings and paintings of The Beatles.

After a few years of failing art, Shannon’s already paved road to go onto college with scholarships was derailed. Depressed and aggravated, she gave up art and focused on a “still successful” music career. 15

years later, Shannon was given an airbrush, as a gift. This was the instrument in her life that gave her back her art. Her first airbrushed painting was of John Lennon. She entered the painting in a contest and won first place.

Beatles fans saw Shannon’s painting and wanted more. Her fan base grew rapidly and she began to get invited to Beatles Conventions all over the USA. Owners of The Cavern Club (a Liverpool club made famous by The Beatles) discovered Shannon painting at a Beatles Convention in Connecticut. They took the news back to Liverpool and said of Shannon’s works, “We were Gobsmacked!” Eventually, so was the UK audience. With only a few years of airbrushing under her belt, Shannon was declared “The World’s Greatest Beatles Artist” in 1998 by the Lord Mayor of Liverpool.

Shannon says of the art teacher that failed her, “My art teacher has to eat her words everyday. I will always be the “main course” in her life. As far as my art goes, I owe a lot to the airbrush.”

After using mainly PPG solventbased paints for years, Shannon began using PPG’s Envirobase about a year ago and has decided to go totally green in her studio.

“I love it now,” said Shannon, although she thought she’d never get the hang of using waterborne paint at first, Shannon is now very comfortable with it. According to Shannon, when she first started using waterborne she noticed a difference right away. The waterborne paint would stay just as

MINI-REVOLUTION was created in 2007 for the Beatles’ Hard Day’s Night Hotel in Liverpool, England. (detail done with IWATA Airbrush, electric eraser, and Createx paint)

she painted it—critical to an artist who paints with such detail. With the solvent, Shannon says, sometimes the fine details would melt and merge a bit as it dried.

34 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

“As far as changing from solvent to waterborne, all I had to do was be sold on the product and what it had to offer. I was visiting ‘Ideal Distributors

“LET ME TAKE YOU DOWN” is a 10’ tall Fender Stratocaster made of fiberglass. These were made for the Rock and Roll Hall of Fame.

Together artists from around the world such as Peter Max, Yoko Ono, Keith Richards and many others were featured on Good Morning America. On that early morning’s live from NYC program, Shannon’s guitar was declared the most outstanding of them all. Tony Perkins (weather man) spotlighted Shannon’s guitar three times during the program to show the audience the unbelievable detail. (Created using PPG, Sherwin Williams, and Createx paints using an IWATA micron and electric eraser.) © 2002

& Auto Paint’ in St. George, Utah to meet with Walter Rapp. While there, I had mentioned wanting to try the new PPG waterborne; PPG’s Envirobase® changed my mind about solvents,” said Shannon, “For me, solvents tend to ‘merge’ with each other in a way that detail is lost, especially when applying top coats. I am in the detail business! I can’t afford to see hours worth of work slowly disappear after topcoating with clearcoats and/or candies. Solvents easily ‘blur’ after top coating. PPG Waterbornes do not.”

Shannon also appreciates that she is breathing in less paint fumes with the waterborne versus solvent.

“If you are a painter that loves that 24 hour a day ‘sucking on helium rush’, you might miss solvent,” said Shannon.

Shannon was also impressed with the cost savings associated with using waterborne and as a custom paint business there wasn’t a lot of cost in changing over from solvent.

“There was no big cost factor in changing over; being involved in the custom paint business is probably less invasive then a full body shop change over. As I move forward I can see the advantage; I am getting more done at a faster pace which makes way for more clientele and I am using less paint. I am saving every day,” said Shannon.

Although waterborne sprayed differently, according to Shannon, the techniques associated with using waterborne were actually quite similar to much of her artistic education.

She also noticed that with solvent, the color that it is in the can is just about the same as it comes out when you spray it; but with waterborne, the color looks a lot different in the can than when it is sprayed. So color matching with the waterborne was a bit of a challenge because you can’t really color match by eye,

This is a fine creation establishing the detail Shannon can get using an airbrush and an electric eraser. The new name attached to her creations is “Hyper-Realism”. This portrait was created for the IWATA/ANEST booth sponsored

by ASET at SEMA 2011. (IWATA micron airbrush and an Electric Eraser on white baked aluminum panel) This was the first time SHANNON performed for an audience using PPG’s Envirobase Colors. (She had done so once before using PPG Envirobase shades of black and gray for the ASET produced show…ULTIMATE AIR AFFAIR) At this point, PPG is by far SHANNON’s favorite paint to use for both illustration and automotive painting

you’ve got to spray a bit of it to know what color you’re really working with.

“I have probably 50 Anest Iwata guns,” said Shannon, who has been using their spray guns since 1994. She came to be very comfortable with the Anest Iwata guns after relying on the

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Iwata Custom Micron series when she painted her tribute stamp to Sylvester Stallone in 1996. Shannon’s process also differs from a lot of traditional custom vehicle painters; she doesn’t believe in using templates or taping off sections as she paints—she believes that gives her work too much hard edges.

Shannon says she starts by outlining what she wants to paint with pencil, then she comes in with the spray gun free-hand. She starts out with the light colors, so at first it looks like a sepia-toned painting, then she comes in with an array of translucent color.

Shannon says she prefers to paint Continued from Page 27

Think Like a Mechanic in this automotive repair business, this was my calling. I am one of many mechanics and technicians of any small town or big city who might have done something else with their life, but cars and tool boxes became our vocation. I may have chosen to be in

the ‘old-school’ way and doesn’t consider herself a graphic artist. Most of Shannon’s work has been labeled ‘hyper-realism.’

Shannon also uses an electric eraser, a drafting tool. A tool she calls her “second favorite”. She has been in the process of working on an air eraser for a few years now. It will come to fruition with the help of Anest Iwata.

Her version will be more like a polishing tool like that of a dentist. It will have different variables and several eraser tips of various densities.

“Speaking as the number one Beatles artist in the world, it’s a heavy ride to get to number one—but once you’re there it’s almost more difficult

to stay there and fend off all the number twos who want your spot,” said Shannon, “But I’m very lucky to have the spot I do.”

Shannon is currently working on a Beatles tribute piece that represents and celebrates the 50th Anniversary of the last member to join and finalize the famous quartet, Mr. Richard Starkey (Ringo Starr). She will fly to the UK to unveil that piece in Liverpool.

This August, in Salt Lake City, Utah, she will be one of the headlining artists at the event “ASET presents The Ultimate Air Affair”.

She also plans to attend SEMA again this year with ASET (Automo-

tive Spraying Equipment Technologies) and Anest Iwata. Shannon will be displaying and painting live, as well as introducing some new SHANNON PRODUCTS including her air eraser mentioned earlier in this piece.

Shannon is also teaching both custom automotive and illustration worldwide for those looking to start a career in airbrushing or for those who are accomplished looking to take it up a notch. For those interested call Shannon’s studio in New Jersey at 310-739-4930 or ASET at 800-6285449.

See more of Shannon’s art, as well as her music, at www.theshannongallery.com.

this business but quite honestly, it might have actually chosen me. Can’t say it’s been that bad of a deal.

I’m sure everyone in the business has a story to tell of how they got started, and when I get the chance to hear someone else’s story I’ll take the time to listen. It’s really fascinating to me how we all ended up here… bending over the hood of a car or truck.

I’m very proud of the auto indus-

try, and I’m proud to be a part of it.

Whatever some people may think about the job of a “mechanic” or how they might try to degrade it, there’s one thing to keep in mind…. it’s a necessary part of the world we live in. This country is built on moving goods, products, and people from one place to another, and without mechanics everything would come to a complete stop.

As a tribute to all of the mechan-

ics, technicians out there… a tip of the hat to one and all… your dedication and hard work should be commended. If no one else will say it… I will… Thank you for your continued efforts. You keep fixing them and I’ll keep telling your stories.

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Tony Lombardozzi INTERVIEW by Chasidy Rae Sisk

Sharing the Message with CCRE President Tony Lombardozzi

If you’re in the collision industry and are not familiar with the Coalition for Collision Repair Excellence (the CCRE), and you consider yourself a truly independent operator in the business, you need to look them up (theccre.com.)

During CCRE’s legal seminar in Philadelphia on March 30 and 31, 2012, CCRE President Tony Lombardozzi repeatedly demonstrated himself to be a dedicated proponent for independence in the collision repair Chasidy Rae Sisk industry and a valuable source of information. Fortunately, he took the time to chat with me so that I might have the opportunity to share some of his wisdom with a wider audience of Autobody News readers. See my column on p. 22 of this issue for more on the CCRE. I was curious about how Tony originally got involved with CCRE. Back in 1996, Tony felt that the national collision associations were not looking out for the consumers’ best interest or the benefit of the collision repair industry as a whole. So, he researched CCRE and attended a meeting. Tony was impressed with the organization because they represent the portion of the industry that says they should be able to operate without thirdparty influence, and also, the shops involved with CCRE are fiercely consumer-oriented.

CCRE helps member shops and other shops across the country through education. Their legal seminars focus on helping repairers understand what an insurance policy entails compared to a repairer’s contract with the consumer, and that there is no correlation between these two contracts. They also hold seminars on business management where they teach collision repair facilities about the cost of doing business, property business management and how to operate a profitable shop in an ethical manner. Additionally, CCRE helps independent shops learn about marketing tactics so that they can compete in the industry.

In regards to CCRE’s legal seminar in Philadelphia on March 30 and 31, Tony notes that this seminar yielded

more positive feedback than any other seminar CCRE has held, increasing their organization by several new members.

Tony Lombardozzi

Tony believes that the information presented at the seminar is important because “the majority of this industry has a misconception about who the real customer is.” He goes on to clarify that many repairers have been trained to believe that they are just an extension of the insurance industry and will not be able to survive without allowing insurers to dictate the shops’ business practices. But that is not true.

The collision repair industry is a separate entity that has nothing to do with the business of insurance unless a repair facility signs a DRP contract.

Otherwise, there is no relationship.

Tony notes that without pressure from insurance companies to accept their methodology of how this industry should work, “we wouldn’t be in the situation we’re in. Instead of understanding that we should be doing business as independent business owners with no influence by a third party, we allow insurers to dictate how we’re going to do business, and that’s a real problem.”

Tony cites many collision repair conferences as part of the problem because the majority of guest speakers are from the insurance industry and the conferences are heavily influenced by this third-party presence. Collision repairers should not go to an event for the collision industry and be told by insurance companies how the shops will need to do business in the future.

When asked about the most important message of the CCRE seminar, Tony stresses “basically what they should realize is no one else is going to take this industry back, except the repair shop owners themselves.” The insurance companies definitely will not

36 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

volunteer to relinquish control, so the best thing that repairers can do is step outside the box, understand the CCRE concept, compare it to what they are doing now and see if the shops are happy with the status quo. If they are okay, there is no reason to complain.

Unfortunately, many collision repairers are afraid to look at the issues because they fear what they may find.

According to Tony, “I don’t know if we have enough time to recover the industry that we gave away because it took thirty years to give it away and you’re not going to take it back in one year… The industry remains in a hole because of the fact—I mean, we’re stagnant, but fees paid to body shops have been stagnant for years—the reason we can’t get out of stagnation is because we’re allowing ourselves to be governed by a third party that has no interest in making us successful… People in this business are beginning to see that there’s no way out of the box unless they make changes. Hopefully,

they’ll realize that at a faster pace than they have in the past, and you’ll see a big turnaround in this industry.”

Tony believes that a segment of the collision repair industry believes in the system the way CCRE does, and he hopes that those who attend CCRE’s seminars will take the information they learn, study it, practice it, and network with other repairers to encourage them to look into the CCRE Philosophy because it is a better way to do business.

He insists that by following the methods learned at the seminar, repairers can become more profitable while streamlining production output.

The problem is that the collision repair industry as a whole has been brainwashed by insurer buzz words such as “making things lean,” “cycle time” and “rental days.” Insurers have lured the industry into using systems that are supposed to increase the shops’ accuracy and efficiency, but all of that money saved in efficiency ends up See Tony Lombardozzi, Page 46

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Boyd Group Achieves Record Sales in 2011, Acquisitions The Boyd Group Income Fund reported record sales in 2011 thanks to several acquisitions made throughout the year that added $94.1 million to the company’s top line. The company also reported a same store sales increase of 6%, a more important indicator of business conditions.

Brock Bulbuck, President and Chief Executive Officer of the Boyd Group, said, “The addition of Cars Collision to our operations had a strong positive impact on our results for the year, as both the performance and integration of this business continues to meet our expectations. We also saw meaningful positive samestore sales growth in 2011 despite the headwinds from persistent challenging market conditions as well as a difficult comparable period in 2010 given a significant hail storm experienced in the Arizona market late in the year. Miles driven continued its trend downwards this past year due, in part, to elevated levels in unemployment and gas prices. However, the merits of our business model and related strong industry position and geographical diversity have proven to counter this downside.”

Farmers Recognizes Caliber Collsion as MSO of the Year

Farmers Insurance announced that Caliber Collision Centers has been awarded the 2011 National Multiple Shop Organization of the Year Award for outstanding operational and customer satisfaction management. Under the leadership of Steve Grimshaw, President and CEO and Mark Sanders, Chief Operating Officer, Caliber Collision delivered the proactive management and self-discipline required by Farmers to further improve Farmers policy retention and customer value. “We wish to congratulate Caliber Collision on being named Multiple Shop Organization Group of the Year,” said Odom Wu, national director of auto specialty claims for Farmers Insurance. “Caliber Collision has consistently provided Farmers Insurance’s customers with excellent customer service, and a strong commitment to quality vehicle repairs, thus earning them the distinguished honor of MSO Group of the Year.”

“Thanks to the hard work and commitment of Caliber Collision’s more than 2,500 associatese are honored to be awarded Farmers Insurance’s 2011 National MSO of the Year,” said Steve Grimshaw, Caliber Collision President and CEO.

CollisionPartsSource.com Platform Now Available

VehicleOwnersGuide.com announced that CollisionPartsSource .com, a parts e-commerce platform, is now available for free to collision repair facilities in the United States and Canada. CollisionPartsSource. com creates a marketplace where collision repair facilities can list parts they have on hand for sale or trade to other collision repair facilities or publish a parts wish list. Parts suppliers or other collision repair facilities can view shops’ wish lists and submit offers via email directly to the repairer from CollisionPartsSource .com for the listed parts. The process is designed to facilitate the communications between collision users of parts and those that wish to provide them.

Parts such as assemblies that are still usable but not returnable, uniside assemblies that are only partially used, or parts that weren’t returned for what-ever reason and are in shops’ parts rooms can be made available to other repairers.

For more information, or to use the free module, visit www.EstimateScrubber.com or www.CollisionPartsSource.com.

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Diamond Standard Says its Warranty Exceeds the OEMs

Diamond Standard Parts says its Limited Lifetime Warranty from the Diamond Standard Brand and its associated manufacturers group, Reflexxion Automotive and Production Bumper Stampings, exceeds the service parts warranty on OEM structural bumper components, stepbumper assemblies and face plates, and replacement hoods. The company says the warranty on all of its new parts exceeds the warranty offered by the OEMs, who typically offer coverage for 12 months or 12,000 miles from the date of installation or purchase.According to Diamond Standard, state regulations regarding aftermarket or crash parts warranty are typically general and require insurer or collision center disclosure statements such as: “must disclose estimate is based on use of body parts not manufactured by the original car manufacturer and that warranty applicable to the parts is provided by the manufacturer.” One state, for example, goes a step further and requires that “a copy of the part warranty will be provided with the estimate.” Diamond Standard has published aftermarket parts regulations for all 50 states on its website, diamondstandardparts.com under the Certification banner.

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On Creative Marketing with Thomas Franklin

Tom Franklin has been a shop sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

“Power Babes” Throw a Successful Event Last year, as summer approached, I wrote an article about holding an event in the summer to bring in new business. I was pleased recently to learn of an event put on by a shop in my area. “POWER BABES,” a professional womens’ networking group in the vicinity of the shop, meets regularly to explore and discuss issues of interest and importance to the members. The location of the meeting is different each time, and often held at a place of business of interest to the members. The marketing lady at the host shop learned of this group of about forty women and invited them to hold their next meeting at the shop.

The current group president expressed an interest in holding a meeting that focused on a women’s car care clinic. It was agreed that the meeting would be held at the shop.

Automobile repair people who describe a vehicle problem using the jargon of the industry can confuse not just women, but many uninformed people. Several automotive professionals would be invited to speak on car care issues in their area of expertise. To help the women in the group better understand what is going on when they need a vehicle repair, the professionals would be asked to make detailed presentations during the car care clinic. Several did agree to come.

A lot of information for the meeting came from “Vehicle MD.” They were kind enough to provide everyone with a copy of their magazine (http://vehiclemd.com). A woman assistant manager at an auto parts company surprised the group by providing very detailed technical information they could all understand. And a manager from Americas Tire Company

provided a wealth of little known information about tire care. Several other of the shop’s vendors were invited to speak, but had to decline because of the short notice. A local Nissan dealership provided a technician along with a no-emissions “Leaf” vehicle from the dealership for the group to examine at great length. The ladies had this rare opportunity to learn many technical details about this state-of-the-art vehicle in a way they never could have without the help of an expert technician.

The cost of providing food and drink for a group this size might convince many shop owners that an event like this could not be cost-effective.

But the fact is this was a highly profitable venture. The tour of the shop alone convinced many women in the group that this was an exceptionally clean, technically advanced place to bring their car when they needed autobody repair. The close personal contact with the owner and marketing people also convinced many that this was a highly ethical, caring place to bring a vehicle. From the viewpoint of the shop, follow-up is what made the biggest difference in cost effectiveness. Photos of the event and key members of the group were posted on Facebook and the shop’s website.

Comments by ladies attending the event were recorded by the host — especially comments praising the attractive layout and the shop’s neatness and cleanliness — and also posted on Facebook and the shop’s website.

While this was obviously nice publicity for the shop, the women running the networking group were well aware that this would also be a big help in their recruiting efforts to get other

Iowa Collision Repair Centers Raise $1,329 for Charity BODYPROS Collision Repair, a group of Des Moines-based collision repair centers, has raised a total of $1,329 for the Iowa Chapter of the Leukemia & Lymphoma Society (LLS) Team in Training during the Arena Football League Iowa Barnstormers’ home games.

BODYPROS Collision Repair, the greater Des Moines area’s only collision network, will hold a a 50/50

raffle at all Iowa Barnstormers home games to benefit the Iowa Chapter of LLS Team in Training. “What an electrifying night, both outside and inside!” said BODYPROS Collision Repair’s Christy Jones of the April 14 game. “With the Iowa Barnstormers’ first home field win, BODYPROS Collision Repair raised $415 for the Iowa Chapter of the Leukemia & Lymphoma Society.”

38 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

women to join their network. If structured properly, events like this can be a win-win for both the shop and the attending group.

Profiles of leading players in the group were also captured so acknowledgements could be sent to the key people and, in some cases, their subordinates and family. This action fitted in nicely with the shop’s effort to maintain broader profiles of repeat customers and prospective customers.

A while back I wrote about a shift away from broadcasting to what has been called “narrow-casting” in promotional parlance. Using today’s powerful preference identification technology, advertisers know just about everything you like to eat, to wear, to read, and more. If you can build a database with searchable fields for gender, marital status, family members, occupation, professional affiliation, vehicles owned (also by

other family members), pets, social networks, birthdays, anniversaries and more, you have a tool for perfectly targeted promotional calls, mailings, emails and invitations.

Because of the professional nature of the women in this group, I would call this a truly brilliant marketing event for this shop. Most of these ladies drove recent model, highend cars. Because most were also very active in business, they do a lot of driving and given the urban area in which they reside, a certain number of at least small accidents are bound to occur. Because of most of the ladies’ immaculate attire, you could see they cared a great deal about appearance and so would choose to keep their vehicle in spotless condition. All of these factors added together amount to a group of the very best prospective customers a shop could hope to attract.

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DOE to Accelerate New HighTech Materials for Autos

The Department of Energy recently announced a new $14.2 million effort to accelerate the development of new high-tech materials for vehicles that will help reduce U.S. dependence on foreign oil and pollution. The announcement specifically named carbon fiber composites and advanced steels and alloys as targets for the funding.

“By investing in next-generation vehicle materials and components, we are helping U.S. manufacturers improve the fuel efficiency of our cars and trucks and ensuring American companies remain at the cuttingedge of the global auto industry,” said U.S. Energy Secretary Steven Chu. “Lighter, stronger materials will help improve the performance of our vehicles while saving families and businesses money at the pump.”

The department acknowledged that replacing traditional components with lightweight materials, including advanced high-strength steel, magnesium, aluminum, and polymer composites, allows manufacturers to include additional safety devices, integrated electronic systems, and emissions control equipment on vehicles without increasing their weight.

LKQ’s ‘Promise of Protection Program’ has Launched

LKQ Corp., the largest provider of aftermarket and recycled collision replacement parts and refurbished collision replacement products in the nation, has announced what it describes as “the strongest warranty protection in the aftermarket category.”

Effective immediately, LKQ says it will indemnify licensed auto repair shops against injury or damage caused by a defective aftermarket vehicle replacement product distributed by LKQ. LKQ says its “Promise of Protection” is unique in the auto parts industry offering unparalleled product liability indemnification.

“We have always stood behind our product quality and offer lifetime warranties for all of our aftermarket crash parts, that’s not new,” said Rob Wagman, president and CEO of LKQ. “Our Promise of Protection goes one giant step further by offering product liability indemnification.

“This new program clearly demonstrates our higher level of quality assurance beyond the lifetime warranty, so our customers can be totally confident when buying and using our products in their repair businesses.”

OSHA Publishes Final “Right to Understand” Rule

OSHA published its final rule aligning its Hazard Communication (HazCom) Standard with the Global Harmonization System for Classifying and Labeling Chemicals (GHS).

The rule, known as HazCom 2012 or the workers’ “Right-to-Understand” rule, substantially changes OSHA’s current standard and affects over 40 million employees at more than 5 million facilities nationwide. Employers must train all employees on the new HazCom standard before December 1, 2013. Now that the final rule has been published, hazard communication procedures must change. Facilities must apply new chemical classification criteria, replace ALL MSDSs with new Safety Data Sheets, update or replace chemical labels, and train employees on the new standard.

To help industry professionals understand the changes they must make, Lion Technology will offer the Preparing for OSHA’s New GHS Rule Web Seminar monthly through the end of the year, on May 15, Jun 21, Jul 17, Aug 16, Sept 25, Oct 23, Nov 15, and Dec18. More information: www.lion.com/Preparing-forOSHAs-New-GHS-Rule.

VW Names OEConnection as Collision Program Provider

OEConnection LLC, the parts e-commerce technology leader for OEM distribution networks, announced today that it has been chosen by Volkswagen of America, Inc. (VWoA) to support their ongoing Collision Programs.

Under the agreement, dedicated resources from OEConnection will conduct field visits to thousands of collision repair facilities and hundreds of Volkswagen dealers throughout the U.S. to promote the VW Genuine Advantage Parts Program. OEConnection field consultants will educate and train Volkswagen dealers and their wholesale body shop accounts on CollisionLink®, the online parts ordering and fulfillment solution from OEConnection, which was selected by VWoA in 2010 to automate its discount parts program and help VW dealers compete with aftermarket parts suppliers.

The multi-year consulting agreement follows successful collision initiatives in 2011 that led to a marked increase in incremental sales of Genuine VW collision parts. Improved Genuine VW parts usage helps Volkswagen customers have the best possible repair experience and ensures optimum occupant safety.

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www.autobodynews.com | MAY 2012 AUTOBODY NEWS 39

Matrix System Launches World’s First Premium Low VOC Solvent Basecoat

A

by Melanie Anderson

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Matrix System Automotive Finishes, a Michigan-based company that distributes nationwide and in Canada, recently launched an entire line of toners that deliver 3.5 pounds per gallon or less VOC emissions. This revolutionary technology offers customers exceptional hiding with ease of application and no need to upgrade shop equipment. Matrix, a division of Quest Specialty Coatings, unveiled its new line at the NACE Show in Orlando, Florida, last October where professional vehicle refinishers Ken Papich, Matrix’ were the first to Director of Sales discover the Matrix System’s MPB-LV Premium Low VOC Basecoat system.

MPB-LV (Matrix Premium Basecoat-Low VOC) sprays like other premium high VOC solvent systems, which makes it “hard to believe that it is low VOC,” Ken Papich, Director of Sales, told Autobody News. Additionally, the MPB-LV utilizes the Matrix System Color Variant Selector System to ensure a great match every time. The new premium low VOC basecoat gives the California and Canadian markets, and other regions contemplating low VOC regulations, the opportunity to choose between waterborne or low VOC solvent basecoat.

Matrix partners with several regional warehouse groups to distribute their products to jobbers that sell to body shops and the retail public across the United States and Canada.

“Because of this network, Matrix now has inventories that are only hours, or minutes, away,” said Papich.

“This really helps lower the operating costs of jobbers and they no longer need to stock so much product. We also have relations with an international distributor which takes Matrix all over the globe. It’s a great American story, as we make all our paints in Michigan and export all over the world.”

Matrix System Automotive Finishes is one of the industry’s most successful manufacturers of high quality color, clear coats, primers, hardeners and reducers. Matrix was established as a company dedicated to developing

high performance and affordable refinishing products that perform as well as or better than the leading national brands. The company’s mission is to produce high-quality automotive finishes and provide great value to their customers. “Matrix products sell for less without sacrifice,” said Papich.

Matrix has been in business for 30 years, starting with the production of premium clear coats, primers, hardeners and solvents. “We started when there was little competition, as the major paint brands owned the entire market,” said Papich. “We built great relationships with raw material suppliers, and because of lower operating

Company Facts

cuShade Intermix System now leads the product line, giving body shops the ability to produce over 98,000 colors with exact formulas. It has been estimated that Matrix basecoat colors have been sprayed on over one million vehicles with accurate color match and excellent performance.

Like its entry into the clear coat market, Matrix was a pioneer as an alternative automotive refinish brand.

“We were able to save body shops nearly 40% of the paint cost and provide a consistent income for our jobbers,” said Papich. Today, AccuShade has evolved to a multi-quality intermix systems—premium to economy®

● Founded in 1983, Matrix employs over 100 full-time associates. ● Matrix products are manufactured in a 52,000-square-foot modern production facility in Commerce Township, Michigan. ● Matrix System’s corporate headquarters, warehouse, and training facility are located in Walled Lake, Michigan. ● 1.4 million gallons are produced annually. ● 4.0 million dollars of modern production paint equipment. ● Bulk resin and solvent tanks are hard piped to mixing tanks. ● 16 bulk resin and mixing tanks on electronic load cells hard piped to filling lines. ● 7 automated filling lines with batch coding systems and automated labeling systems.

Online Contest

Matrix is offering a “Peel to Win” online promotion to all their body shop customers who purchase a gallon of Matrix System’s MP-1000 “Coast to Coast” DTM Primer Surfacer Sealer. To qualify, customers need to purchase a specially marked gallon can of the MP-1000 DTM Primer Surfacer Sealer, peel the sticker, follow all instructions on the back and visit the Matrix website to register. Winning prizes include iPads, Iwata Air Guns and spray guns, VISA gift cards, mixing equipment and more. The program runs until September, 2012.

costs, produced premium products at nearly half the price of the major competitors. We never had to cheapen our products to keep the selling price low.

This quest for staying true to our formulas paved the way for loyal end users.” Today, Matrix is one of North America’s largest clear coat manufacturers.

Back in 1997, Matrix introduced the first Intermix Paint System, called AccuShade. Since bursting onto the national scene, Matrix System has been selling its AccuShade® Intermix Paint Systems, FX Series custom colors, clears, primers, and reducers to over 350 paint stores and thousands of body shop customers. The Ac-

40 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

priced basecoats, single stage paints, and now the world’s first premium low VOC solvent basecoat—MPV-LV. Not all the paints and products that Matrix offers are low VOC. Matrix sells multiple products for all markets, including international.

“Many people think California must only use low VOC, but a large part of the state doesn’t require this.

We comply by providing accurate information for our distributors regarding what’s legal and what’s not.”

Moving forward, Matrix is creating “Coast 2 Coast” products that are legal in all of North America. “Our new paint products perform so well, we didn’t tell customers that they were

using low VOC coatings because we felt body shops wouldn’t want to buy products they didn’t ‘have to’ or would have preconceived notions that they wouldn’t perform,” said Papich. “So, some of our labels do not feature the scary words ‘low VOC’ but we do provide all the necessary regulatory information.”

While some may think the current regulatory environment is complex, Papich doesn’t think so. “If you take the time to read and understand the rules, they are very simple. I only wish the rules didn’t vary between counties or states.”

In addition to the Matrix label, the company manufactures coatings for several other brands and distributors.

“Paint manufacturing is a complicated and costly endeavor,” Papich said.

“Smaller distributors and manufacturers now contract with us for less than it costs to make paint themselves, and with consistent results.”

Papich grew up in the paint business, working in his family’s paint store in San Diego, CA in the early 1980s as a teenager. He helped grow the family store into two large profitable locations. “I always wanted to be in law enforcement, but couldn’t give up my passion for the paint business.

In the early 1990s, we sold our stores to Sherwin-Williams and my dad retired. I continued to work for SherwinWilliams in various roles, my last as the Regional Sales Manager overseeing 21 locations and 140 employees.

In 2008, I moved to Matrix and have been truly blessed to work for such a great group of people.” Since 2007, the company has doubled in sales and Papich thinks it’s only the beginning.

“Matrix is a lean company where we all wear a lot of different hats. I’ve learned so much in the past few years, and it’s all been fun. I look forward to our future as Matrix continues to experience record growth globally.

“Matrix has definitely earned our place in the market as a premium line at great value,” Papich added. “Today, we’ve become a viable alternative to the major brands, without sacrifice.

We’re committed to adding additional field resources, along with developing state-of-the-art technology. I see continued global growth for Matrix as we strategically increase market share and brand awareness. Matrix is a great line worth looking into. We have a great story to tell and can prove it.”

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A Decade of Innovation Turns Paint Industry Literally Upside Down by 3M Collision Staff

At 3M, scientists and engineers are encouraged to look at things differently to develop new product solutions, new technologies and in some cases, new industries. For one such scientist, the ability to look from a different perspective at a major challenge faced by automotive professionals revolutionized the industry. It literally turned the way that vehicles, airplanes, boats and other equipment are painted, upside down.

“We spent a lot of time in the shop environment, working with painters to understand their challenges, pain points and everyday working processes,” said Dr. Stephen Joseph, Division Scientist, 3M Automotive Aftermarket. “As part of observing the repetitive process of mixing paint in separate containers, pouring this paint through a paper strainer into the spray gun reservoir and then cleaning up the spray gun afterwards, it struck me that there had to be a better approach.

“For example, why not take the

container of mixed paint and place that directly on the spray gun, thereby eliminating the transfer step? If this new cup that doubled as a spray gun reservoir could then be disposed of, we could also eliminate much of the solvent associated with gun cleaning.”

Dr. Joseph spent many hours building prototypes and developing concepts around the idea of using just one cup for both mixing and spraying. Inspiration came from a variety of sources.

“Things in everyday life take on a totally different perspective when you are trying to solve a particular problem,” said Dr. Joseph. “Closing the container of mixed paint off with a lid and inverting the spray gun to facilitate connection was the Eureka moment. It enabled us to develop a product design that could be attached to just about any spray gun and essentially eliminate the traditional mixing cups and spray gun reservoirs that customers were currently using. After the relevant patent applications were filed, we spent a lot of time field testing a variety of prototypes to understand what was important to our

customer.”

One challenge they faced was developing the cup for the system. While 3M invented both a liner-and-cup system and a linerless system, they decided to pursue the liner technology because this offered a variety of enhanced benefits to the customer, for example the ability to spray upside down. The linered system is a closed system, during spraying it creates a vacuum, which effectively pulls the paint out of the liner, thus collapsing the liner. Being a closed system there is no air vent for paint to leak out during spraying. You also have the ability to stay 90 degrees to the panel from any angle, even upside down, which optimizes material transfer, and helps to reduce material waste. In order to move the project forward, 3M developed and invested in much of the equipment to manufacture the parts internally, which ultimately enabled the product to be launched.

“After evaluating numerous different iterations of cups, lids, adapter designs and filters, we finally determined the optimum combination,”

added Dr. Joseph. “It took a number of years to progress from the original concept to the launch, but the PPS™ System quickly gained customer acceptance throughout Europe and the US.”

Industry at Point of Change What set the stage for the development and rapid growth of the PPS™ System technology were several critical issues in the body shop. The industry was transitioning from siphon to gravity fed spray guns, which was being driven primarily by the improved transfer efficiency of these guns with top-mounted cups. Shop owners were looking for more efficiency and less material waste and concerns over solvent use and disposal were growing.

Painters were still pouring paint into separate containers, straining it through filters and transferring it into a spray gun. Following spraying, they had to clean the spray gun with solvent and either clean or discard the used mixing cups and filters. These conventional systems were time-con-

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suming, contributed to volatile organic compound (VOC) emissions and continually wasted expensive paint.

Although 3M’s Automotive Aftermarket Division sold a number of different products to the vehicle repair industry such as abrasives, masking products and polishing glazes and compounds, prior to the PPS™ System, 3M had essentially no sales in the paint mixing area of the shop.

Technology = Performance In its basic definition, the 3M PPS™ System is a disposable mixing and filtering system designed for use with primarily gravity fed paint spray guns.

The PPS™ System eliminated the need for separate mixing cups and filters, and only the spray gun channel and adapter need cleaning since paint never comes into contact with the pot and collar.

A range of threaded adapters for different spray guns provide painters with the ability to attach the 3M system to just about any spray gun.

3M™ PPS™ System product attributes include: • Uses the same cup for mixing and

spraying • Disposable liners save cleaning solvent and time • Integral paint filter means fewer defects • System allows gun to be used at any angle • Unused paint can be temporarily saved in a capped liner • Slashes solvent usage for gun cleaning

The Impact of an Innovation Today, some 60,000 shops in more than 90 countries use the 3M PPS™ System. Annually, an estimated 20 million vehicles have some coating applied using the 3M system.

After switching to the 3M PPS™ Paint Preparation System, customers report as much as a 70 percent reduction in the use of cleaning solvents, which translates to a reduction of an estimated 46.2 million gallons of solvents. This reduction in solvent use directly reduces global VOC emissions and promotes a safer and healthier workplace since operators are exposed to smaller amounts of solvent vapors.

These 46.2 million gallons of solvent reduction translate to more than $330

million in solvent cost and solvent disposal cost savings over the past decade.

In addition, the PPS™ System minimizes paint transfers, allowing operators to mix smaller quantities of paint or to easily switch colors between repairs without disposing of the paint. This can help reduce the amount of paint required for a job by as much as 2 to 4 ounces per mix, leading to significant cost and waste reductions.

As a result of its success in the automotive market, 3M has expanded the product line into other industries that use spray guns, such as aerospace, marine, woodworking and signage, where customers are looking for solutions to help them manage their VOC emissions, improve efficiency and reduce waste.

A Decade of Awards – New Product Additions Are on the Horizon In the last decade, the 3M™ PPS™ Paint Preparation System has collected major awards from industry groups, environmental organizations and design leaders from around the world.

• In the U.K., Awarded 2002 Product

of the Year by “Bodyshop Magazine” and “Auto Trade” • In South Africa, Won the 2002 “Innovation Award” from “Automotive Refinisher” • In Spain, Named the “Best New Product” for 2001 by Galeria de Innovacion Motortec • In France, Won the Bronze Trophy in the Garage Equipment section of the auto exhibition Equip Auto • Selected by the Design Council in 2002 as one of its Innovation Stories • Won the 2002 Horner’s Award for Plastics • Received the 2006 SAE International Environmental Excellence in Transportation Award The development of the 3M PPS™ product family has continued throughout the decade, with the additions of new cup sizes – including the 3 oz cup for the EPA Rule 40 CFR Part 63 – Subpart 6H – and complementary products like the 3M Accuspray™ System and the 3M™ PPS™ Sun Gun™ Color Matching Light.

Additional product and solution announcements are planned for 2012 to continue the industry innovation and expand the 3M platform.

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Rich Evans CoSponsors Fundraiser for Baby Cancer Foundation

by Melanie Anderson

Autobody News columnist Rich Evans, owner of Huntington Beach

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Bodyworks and award-winning painter and fabricator, co-sponsored an exclusive fundraising event held April 13 at the Lush Lounge in Long Beach.

‘The Party,’ co-hosted by Motor Media and Swipe 4 The Kids, raised awareness and $2200 for America’s Baby Cancer Foundation and the Orange County chapter of JDRF (formerly known as Juvenile Diabetes Research Foundation). The guest-list only event featured a silent auction which included several unique items, including autographed footballs from former NFL stars Vince Ferragamo

and Mike Lansford, autographed guitars and luxury watches.

Spinning eclectic tunes for ‘The Party’ was guest DJ Chris Vrenna, formerly a drummer for Nine Inch Nails and keyboardist for Marilyn Manson. In 1994, Vrenna won a Grammy for his live performance with Nine Inch Nails at Woodstock.

Racing personality Gordon “Lug Nutzz” Stewart, who has covered extreme sports, entertainment and the music industry on several radio and TV networks, hosted

Patricia & Rich Evans with friends

the party with his own brand of charitable enthusiasm.

Special guests included former NFL stars Mike Lansford (barefoot kicker for the Rams), former Raiders player Jim Weatherley and Lance Zeno of the Green Bay Packers, NASCAR and off-road racer Felix ‘Nighthawk’ Giles, Chef Steve Cassarino, Diggity Dave with MTV’s Pimp My Ride, and 11-yearold race car driver Brandon 11-year-old race car driver, Brandon Weaver Weaver of Bakersfield, CA. Custom car designer Rich Evans starred in the first season of Speed Channel’s Car Warriors and has several other TV credits, including Chop Cut Rebuild, Monster Garage and Chopper Nation. Rich is currently shooting a pilot for a new show which DJ Chris Vrenna and emcee Gordon “Lug Nutzz” Stewart he’ll produce—a documentary about car building America’s Baby Cancer Foundation (www.babycancer.org) for the past around the world.

“As a car builder, I hope to in- several years at the shop. The kids spire and influence the younger gen- visit with Santa, receive gifts and sit eration that working with their hands in several designer cars. “Our parties and learning something new is cool,” get the kids out of the hospital for the day and they get the chance to sit in Evans said.

Evans, his wife, Patricia, and really cool cars,” Evans said. “We try their three children, Dylan, 20, Lytra, to help them get their minds off their 12 and Drahcir, 8, have been hosting illnesses for a few hours and they look forward to coming to the shop and Christmas parties and other events for

About the Charities

America’s Baby Cancer Foundation was founded in 2000 in Long Beach, CA as Sebastian’s Baby Cancer Foundation by Bernard and Antonia Hicks following the loss of their child, Sebastian, at the age of 19 months. Sebastian was born with cancer of the neck and brain and during his short lifetime, his parents realized the desperate need for research, aid and education for families faced with baby cancer. ABCF is devoted to children and their families suffering from child-related cancers. Cancer is a leading cause of disease-related deaths among children in the United States and increasing every year. In addition, the number of cases of babies being born with cancer is on the rise. For more information, see www.babycancer.org.

JDRF has worked to improve lives and cure Type 1 diabetes for the past 40 years through research funding and advocacy. Its mission is to discover, develop and deliver advances that cure, better treat and prevent Type 1 diabetes. Last year, the foundation dropped its formal name of Juvenile Diabetes Research Foundation because 85% of those in the U.S. with Type 1 diabetes are adults. JDRF is an organization for all ages and all stages of the disease. For more information, see www.jdrf.org. www.autobodynews.com | MAY 2012 AUTOBODY NEWS 43

Chef Steve Cassarino with Rich Evans

seeing the cars. My wife and I are very involved with America’s Baby Can-

Continued from Page 30

CCRE Seminar ing. He also makes sure to explain what aftermarket parts are before using them in his repairs, and most customers refuse aftermarket parts, even when their insurance companies force them to pay the difference. Rob pointed out that the CCRE seminar is all about independence. Collision repair shops do not work for insurance companies, and documentation will help shops get paid which is their right.

The forms will get a shop halfway there, but you have to truly believe that you deserve to get paid for your work.

On Saturday afternoon, a panel of lawyers were brought to the front of the room to answer attendees’ specific questions. The panel consisted of Joe Talarico of NY, A. Brent Geohagan of FL, John Parese of CT, Erica Eversman of OH, Robert McClallen of VT, William Bensley of PA, and Ashly Van Earl of LA. The panel answered many questions from the audience pertaining to contracts, writs of replevin, mitigating damages and so forth.

Several key points were made

cers Foundation because the children who die of this disease are very young and don’t get to see a glimmer of a long life. We want to bring some happiness into their lives. We want to support them, encourage them and make them feel speNFL alumni Jim Weatherley and Chef Steve Cassarino cial.

“I do as much Phillis Lane, co-founder and charity as I can to help bring awareness about disabilities President of America’s Baby Canand diseases,” said Evans. cers Foundation, attended ‘The “People don’t recognize or slow down enough to pay attention to certain diseases until they or a loved one get it. For me, I try to get more involved and learn as much as I can about the body and the diseases that affect us.

Fighting cancer makes me feel grounded and Felix “Nighthawk” Giles appreciate life more.” and reiterated during this session: ● Because shops are the consumers’ only advocate, it is a conflict of interest for a shop to have a contract with the insurance company. ● Though collision repair facilities do not work for insurance companies, insurance companies have completely bought into the mentality that they do.

This allows shop the opportunity to use this incorrect belief to their advantage. ● The insurer’s estimate is a hypothetical, educated guess that can be used as a guideline, but the repairer’s invoice represents the cost of the repair and is the final answer. ● Class actions do impact insurance companies. If every shop reports their loss through a class action or through a credit reporting agency, the total amount will show the insurer’s debt to repairers.

When the seminar wrapped up, attendees seemed reluctant to leave, but everyone walked away with a vast amount of new information and ideas for how to run their collision repair facilities independently. As Tony Lombardozzi stressed repeatedly throughout this seminar, they learned that “there is a better way to do business.”

44 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

Party’ which was held over the Long Beach Grand Prix weekend.

“Rich and Patricia Evans are once again providing America’s Baby Cancer Foundation the opportunity to broaden awareness of what is a little discussed disease that affects children. Our organization and the families we help are most appreciative of their support.”

Co-host of the ‘The Party,’ Swipe 4 Kids, is a brand new program that gives 50% of merchant electronic service fees towards endowing art, music, sports and educational enhancement programs at local schools. www.autobodynews.com For more information, see: CHECK IT OUT! www.swipe4thekids.com.

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Collision Repair Estimates—Excellence Now Required

in search of how to achieve estimating are needed, inadequate estimates initially identifying all of the damage, prove disastrous for shops using estiboth visible and hidden. This ap- excellence. We will begin by answerproach provides tremendous value in ing one significant question. “Why mates as a guide for workshop scheddoes traditional estimating still exist if uling. If the estimates are half right terms of cycle time reduction alone. with what you consider to be a week’s “What can we do to improve the cusThere is so much lost time and money it is so ineffective?” You can probably worth of work you will have actually tomer experience and our own profin the redundant steps assoscheduled two weeks of real work into itability in a fiercely competitive ciated with traditional visia one-week time slot. This creates market?” ble damage estimating. e bottlenecks and fires within your busiFaced with demanding customers Consider the amount of at ness that consume you and your staff, and aggressive insurance companies, time consumed by ordering c body shop owners around the world parts multiple times per reslow production and stop your busiGive us toyour opinion on matters thesuppleindustry.

Want to Contribute to this Edition? t, are forced confront this question pair affecting order, writing nessSouthwest from ever moving forward. nevery day. ments, rescheduling Due to the weaknesses of tradis.

Leaders in the collision repair indelivery dates, extending tional estimating, we have become an dustry say that an accurate estimate is rental car provisions and reindustry of excess capacity in order to publisher@autobodynews.com publisher@autobodynews.com critical to the sucallocating technicians to compensate for the flawed estimating cess of their organvehicles they can work on. practices ¾ more facility space and izations. In fact, Ultimately, this creates an equipment than we really need. And several answers to this nearly every shop I environment of internal friction with- come up with why do wePromote need thatyour extrabusiness space? with Promote your business with have worked with out any positive energy being directed question on your own. Many of us That’s right, so we can park all of an exclusive article featuring an exclusive article featuring were taught to do it this way. Manover the past year toward process improvement. those dead cars in it! You know those yoursome products services. your services. shops or would has emphasized Some might refer to the im- agement within dead ones which areproducts waiting fororparts, The source for timelyof proved processToasadvertise the importance “blueprinting,” claim that their customers expect a trasupplement approvals and/or available call Joe Momber at: Steveninformation Feltovich every the that estimate or, as “damage analysis,” or “repair plan- ditional estimate. Some would say technicians. How much does it cost 800-699-8251 they commonly referred to it, the ning.” Regardless of what you decide that insurance companies demand a your business to park and store those body shop needs! e-mail: damage traditional estimate as the preliminary dead vehicles on the expensive real “blueprint” for damage repairs. to call your comprehensive CALL:we Joe Momber Call for details! jmomber@autobodynews.com Many shops have moved toward assessment process, the fundamentals estimate. Often, simply fear thefor at- details! estate of your available production CALL 800-699-8251 a more comprehensive damage asremain www.autobodynews.com the same. tempt to try something new. Many floor space? In some cases, the vehi800-699-8251 800-699-8251 Start Your sessment process, whichFREE consists of So, let us set out on our journey people in our industry have proven cles are even parked on the frame maMail Subscription. that these obstacles are not insurchine for a day or two due to a mountable and there is a better way to deficient estimate.

Give your customers what they deserve... The Best. assess collision damage.

Ultimately, our customers and inThe real winners in collision resurance partners are the victims of our he NEW Genuine Mazda parts are specifically designed, engineered Register Your Email for Our and tested pair are implementing and refining the broken and failing practices. We must for Mazda vehicles. Customers and repair professionals prefer the “blueprinting” process. This process implement a comprehensive damage quality and satisfaction that only comes from genuine Mazda parts. assessment process designed with one is designed to lower the shop’s overall goal in mind—get it right the first time. costs while increasing productivity. odynews.com at www.autobodynews.com This requires getting the parts, number Does it work? Absolutely. The objective here is a 100 percent complete of labor hours and costs for materials damage assessment before loading the right the first time and every time. vehicle into the production area.

One recent trend that I’ve obThe result is phenomenal: served is some shops have begun to • More customer confidence in the make their frame repair pulls before shop’s capabilities completing the final damage assess• Reduced cycle time, predictable ment. This arrangement provides outdelivery dates standing accuracy in the areas of parts • Increased technician touch time orders, labor times and other associper day ated products and services needed to m • Less administrative work complete all of the repairs. There RX-8 2012 All of these benefits are achiev- must be a higher level of awareness of able with a process-driven damage asthe estimate’s importance and its impact on our business. The estimate disessment program in place. The FLORIDA ALABAMA rectly affects the following listed correct process will reduce the comSam Galloway Mazda Dean McCrary Mazda Serra Mazda items: mon errors, variations and redundanFort Myers Mobile Birmingham cies which are inherent in traditional 1. Revenue 877-872-1232 800-304-3326 205-661-5878 estimating activities.

2. Profits Fax 251-300-3433 3. Negotiation Practices When I am involved in a facility 239-454-5500 888-448-7278 Toll Free Mon - Fri 7:30-6 Fax 239-274-2460 Fax 205-661-5879 analysis to determine the root cause of 4. Workshop Scheduling and Loadmazdaparts@deanmccrary.com Mon - Fri 7:30-6; Sat 7:30-2 Mon - Fri 7:30-6; Sat 8-4 ing scheduling problems, I frequently find bpfaff@gallowayauto.com caseyc@serramazda.com 5. Repair Processes the cause to be directly related to an www.samgallowaymazda.com www.serramazda.com 6. Cycle Time inaccurate initial estimate. Since jobs are scheduled into the production area 7. Workshop Flow Order your Genuine Mazda Parts from one of these parts specialists in your area.

See Collision Estimates, Page 46 based on labor hours and the parts that

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Continued from Page 36

Tony Lombardozzi going to the insurers in the form of underpaid services. Collision repair facilities never see that added profit.

Meanwhile, shops continue to bill at the same rates that they have been billing for quite some time. If a repair shop adds a $50,000 piece of equipment to their overhead to enable them to be more efficient and repair more cars, the insurer reaps the benefit of those savings by forcing the shop to accept a lesser value for their services.

Usually in business, the business owner makes an investment and gets a return on that investment, yet that is frequently not the way things work in this industry due to third-party interference; however, without this influence, collision repair shops can work on less cars and increase profitability.

When I questioned Tony about why many shops seem indifferent or unaware of these issues, he told me “what’s happened is, most of the younger people in this business have come up through the ranks believing the insurance industry is their partner.

Continued from Page 45

Collision Estimates 8. Production Efficiencies 9. Finished Product Quality 10. Customer Satisfaction and Referrals 11. Insurance Company Relationships 12. Organization’s Reputation 13. Employee Compensation/Morale At this point, you will begin to understand the motivation that some shops have for pursuing accurate, estimating excellence. Perhaps the time has come to change our old habits and begin to design and implement some new “lean” processes, starting with the estimating tasks and activities.

You will soon come to find that your entire operation can be transformed by simply taking control of the estimating process—this is truly the “blueprint” for profit improvement.

Removing the obstacles to implement a comprehensive damage assessment process is not easy. If it were, every collision repair shop in the country would have already embarked on this new frontier. But in today’s marketplace, an effective estimating process is no longer a “wish

They don’t know there’s another side to this business.” Frequently, industry events and meetings discuss making business decisions with their “insurance partners”, propagating this incorrect attitude toward the repairers’ relationships with insurance companies. Many collision repairers are never made aware that there is another side to this industry and a better way to do business which is removing the thirdparty influence from the equation.

Through their direct repair programs, insurers teach repairers that they will always have work and never need to advertise which makes it seem like the insurance company has a right to be involved since the shop has an agreement with them; however, these repairers are never exposed to the other side of the collision repair industry, and when they try to learn about shop independence, they are threatened with losing their place in the program. “That’s called big business intimidation,” Tony points out.

Too often, repair shops do not explore the option of independence because fear is the largest thing driving the collision repair industry. Shops fear that they will be blackballed or steered list” item. It is a crucial component in order to gain a substantial competitive advantage and remain a profitable organization. Several shops are now posting a 40 percent decrease in their key-to-keys cycle time, which is primarily attributed to their new damage analysis procedures.

Without adequate and appropriate training for the body shop management staff, estimating vehicle damage will continue to be a disorganized and underutilized tool. Our research and experience confirms that the collision repair industry lacks the skill and knowledge base in regard to estimating: only three percent of the front-line estimators have had any formal training within the last five years. However, with training and some exposure to a more complete process, it is far more likely to yield positive results—for the collision repair center, the insurers and most importantly the customers. The collision repair industry has many training resources on this subject.

You’ll find them advertised in the trade press, and promoted by suppliers and automotive associations who are willing and ready to help your organization improve.

46 MAY 2012 AUTOBODY NEWS | www.autobodynews.com

against if they take a stand toward independence. They fear losing work or going out of business completely, but Tony insists that there will always be work and these shops are failing to realize that their services are needed.

They are taught by insurers that they will be rewarded for behaving as they are told and punished for going against the grain. The most important thing that independent shops have to learn is that they need another way to market their business.

Tony believes that collision repair facilities across the country should be concerned with redirecting the way the industry is run because if they look at how bad this industry is compared to how it was fifteen years ago, they will see a major and disturbing difference.

Instead of asking about the past, present and future of the industry, many repairers only ask what the insurance company wants them to do so they will continue to receive work, but at this rate, all that many shop owners will be left with is the real estate that they own.

Tony recommends researching manufacturing industry statistics and looking at the collision repair industry which is at the bottom.

With inflation, the monetary value of a repair has decreased over time, but no one accounted for the disparity this causes. Many repairers believe that they cannot raise their rates because the insurance companies will not allow it.

Tony warns, “If inflation changes and begins to escalate, you’ll see a lot of body shops go out of business. Because we’re too far behind. We can’t beat economics.” This is why he advises repairers to do their research and plan ahead.

Though the CCRE would like to fund consumer education commercials in the future to inform consumers about the issues in the industry and their own rights, CCRE refuses to be influenced by any third party. The insurance industry has influenced every aspect of the collision repair industry, he laments. “Everybody’s got their hands in our pockets except us.”

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Insurer Report Card in Oregon Ranks State Farm #1, Farmers and GEICO Replace Allstate at Lowest Rank State Farm and two smaller Northwest-based auto insurers continue to be among the best at taking care of their customers after an accident. And some of the other larger, best-known insurers – including GEICO, Allstate, Farmers Insurance and Safeco – are among the worst.

That was the finding of the latest survey of businesses that interact with auto insurers on behalf of vehicleowners every day: Oregon collision repair shops.

“Collision repair shops on a daily basis see how various insurance companies take care of Oregon drivers after an accident, so we feel it’s worthwhile to ask how they rate the various insurers,” said Barbara Crest, executive director for the Northwest Automotive Trades Association (NATA), which conducted the survey of Oregon shops. “We believe their views will be helpful to insurance companies and consumers.”

About 600 collision repair shops throughout the state received the sur-

INSURER

Overall Grade*

State Farm Oregon Mutual Mutual of Enumclaw USAA California Casualty Travelers Unitrin American Family The Hartford American Commerce Insur.

Liberty Mutual Ameriprise Country Companies North Pacific Esurance Progressive Nationwide 21st Century (formerly AIG) Safeco Allstate GEICO Farmers Insurance

(followed by grade in 2011) B+ (B+) B (B+) B (B) B- (B-) C+ (C+) C+ (B-) C+ (B-) C+ (C+) C+ (C+) C+ (C+) C+ (C) C (C) C (C+) C (C) C (C) C (C) C (C) C- (C) C- (C-) C- (D+) D+ (C-) D+ (C)

Non-DRP Shops**

DRP Shops**

B B B BC+ C+ C+ C C C C C C C C C CCD+ CCD+

AAAn/a n/a n/a B B+ n/a n/a B n/a n/a n/a n/a C+ n/a C B n/a n/a B-

© 2012 by Northwest Automotive Trades Association

n/a = Insufficient responses from shops in the DRP to assign a grade. * Based on responses from all shops. ** Based only on responses from shops participating in (or not participating in) that insurer’s DRP.

vey, which asked them to grade the Top 22 auto insurers in the state in terms of how well each company’s “policies, attitude and payment practices ensure quality repairs and customer service for Oregon motorists.”

This is the sixth time the association has conducted such a survey since 2004. Crest pointed to a number of items of interest in the findings of the latest survey: • Repairers have consistently Place an ad in our given the same three companies a AUTOBODY grade of B or better all six times the MARKETPLACE survey has been conducted. State Farm has continued to hold on to the section of top spot, receiving an overall grade of Autobody News.

B+ again this year. Two Northwest insurance companies, Oregon Mutual Give us your opinion on matters affecting the industry. of Enumclaw, maintained and Mutual kmangum@autobodynews.com a grade of B to again finish just below State Farm. State Farm is the largest auto insurer in Oregon: Mutual of publisher@autobodynews.com Enumclaw and Oregon Mutual are ranked 12th and 13th, respectively.

• Only two insurers, Allstate and Liberty Mutual, saw their grades improve from the previous survey. Allstate improved from its last place finish last year with a D+ (its grade advertise The source for timely since 2008) to a C-Tothis year. That call Joe Momber at: information that every helped Allstate nudge up past GEICO 800-699-8251 grades dropped, body shop needs! and Farmers, whose making them the only e-mail: two to receive

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D+ grades this year. But Farmers, GEICO, Safeco and Allstate remained as the four lowest-ranked insurers as they were last year.

• Other insurers seeing half-grade drops this year were Oregon Mutual, Travelers, Unitrin, Country Companies and 21st Century (formerly AIG).

• California Casualty is the most improved insurer over the years the survey has been taken. In 2004, the company earned a C- and was ranked 16th among the insurers. It has improved over the years to this year’s C+ and fifth-place finish.

• One-third of shops gave Farmers a “F,” the most failing grades received by any insurer. (By comparison, GEICO, the second-to-lowest graded insurer received half as many Fs as Farmers.) State Farm received an “A” from nearly-two thirds of shops, twice the number of second-place finisher Oregon Mutual.

• In most cases, the grades given a particular insurer from shops involved in that insurer’s direct repair program (DRP) were higher than those given by shops that are not part of that insurer’s program. This was particularly true with Safeco and Farmers; their DRP shops gave them grades of B- or better while non-DRP shops gave these same insurers grades of D+. But even Progressive and 21st Century direct repair shops gave those insurers only average grades of C+ or lower.

“Collision repairers say the insurers receiving the highest grades – which includes both larger and smaller insurance companies – do the best job of taking care of Oregon drivers after an accident,” Crest said. “We hope consumers will take these ratings into account when choosing an auto insurer, and that insurers that received lower grades will to work to improve Want Contribute performance.” their www.autobodynews.com More than 70 shops throughout CHECK IT OUT! Oregon responded to the survey.

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CALL: Joe Momber for deta jmomber@autobodynews.com www.autobodynews.com www.autobodynews.com | MAY 2012 AUTOBODY NEWS 47

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