Southeastern May 2015 Issue by Autobody News

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VOL. 6 ISSUE 3 MAY 2015

Retired Body Shop Owners Form Foundation in Honor of Daughter Kayla Mueller Who Was Killed Overseas

MS Attorney General Jim Hood asks U.S. for Probe of Steering of Customers By Insurers

Carl and Marsha Mueller, retired body shop owners in Prescott, AZ, recently formed a foundation to help

Mississippi Attorney General Jim Hood has asked U.S. Attorney General Eric Holder to investigate allegations that some insurance companies’ are “steering” auto policyholders to certain repair shops and coercing those shops to use inferior replacement parts. The intent of those practices is to pad the insurers’ bottom line, Hood said in the letter dated March 13. Hood’s letter is part of a broad legal challenge to such practices and can be viewed at autobodynews.com. It comes during an election year in Mississippi in which the incumbent insurance commissioner has a challenger. John Arthur Eaves Jr. of Jackson is the lead attorney representing 17 states thus far and 500 body shops

by Stacey Phillips, Assistant Editor

Kayla Mueller and her mother Marsha

those in need locally and internationally. The foundation, called Kayla’s Hands, was created in memory of their daughter Kayla, who traveled the world with a goal to end suffering. When Autobody News recently spoke to Carl, the former owner of Preferred Auto Body in Prescott, AZ, he and his wife Marsha were preparing for a trip to Dearborn, MI, to speak at the American Human Rights Council’s convention and accept an award in honor of Kayla. Kayla, a 26-year-old humanitarian aid worker, moved to the TurkishSee Kayla Mueller, Page 18

Florida Assignment-of-Benefits Bill May Not Advance

See Bill May Not Advance, Page 26

P.O. BOX 1516, CARLSBAD, CA 92018

In April, all indications seemed to show that the legislature failed to advance a bill that was originally meant to target water damage contractors. Many in the auto industry believed it would also affect collision repair workers. House bill 699 and complementary Senate bill 1064 were filed to protect homeowners and prevent future rate increases from assignment of benefits lawsuits. Currently, the law states that a licensed contractor or subcontractor may not adjust a claim on behalf of the insured unless licensed and compliant as a public adjuster. “However,

the contractor may discuss or explain a bid for construction or repair of covered property with the residential property owner who has suffered loss or damage covered by a property insurance policy, or the insurer of such property, if the contractor is doing so for the usual and customary fees applicable to the work to be performed as stated in the contract between the contractor and the insured,” according to bill 669. The House bill was introduced by Florida House of Representatives John Tobia (R) on February 9, 2015. It was approved by the Insurance and Banking Subcommittee as well as the Civil Justice Committee. It was being

Change Service Requested

by Stacey Phillips, Assistant Editor

by Jack Weatherly, msbusiness.com

across the nation in cases being adjudicated in the U.S. District Court for Middle Florida. The cases are being tried as multi-district litigation because of their similarities. A Mississippi case, Capitol Body John Eaves Jr. Shop Inc. et al v. file photo State Farm Mutual Automobile Insurance Co. et al, faces a Friday deadline to be refiled after Judge Gregory Presnell sent it back “without prejudice,” meaning it could be resubmitted with changes. Eaves noted that in 1963 the Department of Justice entered a consent decree with insurance trade associaSee MS Atty General, Page 14

Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership “Salesman” Exemption; Section 7(i) Exemption Is Still Available by Colin Calvert and Todd Scherwin,

Fisher & Phillips LLP

The Ninth Circuit U.S. Court of Appeals (with jurisdiction over the states of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington) has ruled in Navarro v. Encino Motorcars, LLC that Service Advisors employed by automobile dealerships do not qualify for the Section 13(b)(10)(A) overtime exemption under the federal Fair Labor Standards Act (FLSA). It is the first court to have held this way.

“Service Advisor” Status under the FLSA Section 13(b)(10)(A) exempts from the FLSA’s overtime requirements “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm im-

plements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers.” Historically, this exemption has been extended to Service Advisors. Beginning in 1973, in the federal appellate decision in Brennan v. Deel Motors, Inc., and continuing to as recently as 2013 in the Montana Supreme Court’s decision in Thompson v. J.C. Billion, Inc., courts have uniformly held that Service Advisors are covered by that exemption. The Department of Labor’s Revision to its Administrative Regulations However, the U.S. Labor Department’s (USDOL) track record in this area has been inconsistent. At some times in the past, it has said that ServSee Advisors Non-Exempt, Page 21

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2 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Contents

COLUMNISTS Attanasio - Tracking Your Success (or Lack of) Using Google Analytics . . . 36 Franklin - Story Power For Shops . . . . . . . 40 Yoswick - Legal Battle That Began with Non-OEM Parts Back in 1997 Still Being Waged Today . . . . . . . . . . . . . . . 30 Yoswick - SCRS Event brings shop associations together to discuss efforts, share ideas . . . . . . . . . . . . . . . 38 Yoswick - State Farm’s Service First Program, NABC, MT Requires DRPs, Unfair Trade in CT . . . . . . . . . . . . . . . . 44 NATIONAL American Honda Launches ProFirst Certified Program . . . . . . . . . . . . . . . . 42 ARA’s 8th Annual Hill Day and State Legislative Summit Allows Industry Members to Educate Congress . . . . . . 48

2. Ohio: $843, 36% less 3. Idaho: $877, 33% less 4. Iowa: $886, 32% less 5. New Hampshire: $905, 31% less Here are the five most-expensive states and how they compare with the national average: 47. Florida: $1,742, 33% more than the national average 48. Louisiana: $1,774, 35% more 49. District of Columbia: $1,799, 37% more 50. Montana: $1,886, 44% more 51. Michigan: $2,476, 89% more What accounts for dramatic differences from state to state, even for the same driver in the same car? “Laws make a big difference. Each state makes its own rules, and some of them result in bigger or more frequent insurance claims,” Gusner said. Other factors that influence rates can include high theft rates, widespread fraud and a higher concentration of drivers in urban areas, Gusner said. Those also mean rates change not just from state to state but from ZIP code to ZIP code. “Your driving record and your car are the same no matter where you live,” she noted, “but change your ZIP code just a couple of towns the wrong way and your rates can double.”

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

Allan Vigil Ford-Lincoln . . . . . . . . . . 20 Athens Dodge-Chrysler-Jeep-Ram. 16 Axalta Coating Services . . . . . . . . . 55 BMW Wholesale Parts Dealers . . . . 51 Car-Part.com . . . . . . . . . . . . . . . . . . 10 CarcoonAmerica Airflow Systems . 31 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 37 Chicago Pneumatic Compressors . . 6 Chief Automotive. . . . . . . . . . . . 13, 17 Classifieds. . . . . . . . . . . . . . . . . . . . 54 Coggin Deland Honda . . . . . . . . . . 36 Crown Automotive Group . . . . . . . . 45 Dale Earnhardt Jr. Chevrolet. . . . . . . 4 Dent Magic Tools . . . . . . . . . . . . . . . 4 Diamond Standard Parts, Inc . . . . . . 7 DJS Fabrications, Inc.. . . . . . . . . . . 56 Eco Repair Systems of North America, LLC. . . . . . . . . . . . . . . . 21 Equalizer Industries, Inc . . . . . . . . . 24 Ford Wholesale Parts Dealers FL, VA, GA, AL, MS. . . . . . . . . . . 47 GlobalJig North America . . . . . . . . 25 GM Wholesale Parts Dealers . . . . . 49 Gus Machado Ford . . . . . . . . . . . . . 42 Hendrick Automotive Group . . . . . . 11 Hendrick BMW/MINI . . . . . . . . . . . . 14 Hendrick Honda Bradenton . . . . . . 18 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 27, 28-29

Serving Florida, Georgia, Alabama, Mississippi, Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 Adamantine Media LLC.

Autobody News

Southeast

Assured Performance Hires Michael Quinn as Exec. VP . . . . . . . . . . . . . . . . . . . . . 52 BMW Settles FTC Charges that MINI Illegally Conditioned Warranty Coverage on Use of Its Parts and Service . . . . . . 46 CA Body Shop Sees Almost 30 Percent Increase in Profit After a Year of Lean Processes . . . . . . . . . . . . . . . . . . . . . . 12 Car-O-Liner® Names New OEM Account Manager . . . . . . . . . . . . . . . . . . . . . . . 43 Chief Names Richard Perry OEM Liason Sales Manager. . . . . . . . . . . . . . . . . . . 52 CIF Elects Jeff Peavy to Board of Trustees . 48 Consumers Pay Repair Bills with Openbay and Apple Pay . . . . . . . . . . . . . . . . . . . 46 FL and LA in Top 5 Most Expensive Insurance States . . . . . . . . . . . . . . . . . . 3 GM Names BASF 2014 Supplier of the Year. 47 Honda Adds More Recalls on Takata Airbag Flaws . . . . . . . . . . . . . . . . . . . . 47 Lawsuit Filed Against G&C Auto Body Cites Unfair Business Practices, G&C Responds ‘No Merit’ . . . . . . . . . . 16 Limited Repair Data Has Little Impact So Far on Aluminum 2015 F-150, Insurance Rates Steady for Now . . . . . 35 LORD Fusor Joins NABC as Diamond Member. . . . . . . . . . . . . . . . . . . . . . . . 40 Miller’s Optimized Welding System for AL Repairs. . . . . . . . . . . . . . . . . . . . . . 52 NABC Awards for Distinction and Shop Image, Nominations. . . . . . . . . . . . . . . 34 NABC Says “It Can Wait” to Students in Grad Season . . . . . . . . . . . . . . . . . . 46 National Auto Body Council Donates Nearly $3 Million in Recycled Rides™ Vehicles . 52 New Data: U.S. Drivers Did 3 Trillion Miles Last Year . . . . . . . . . . . . . . . . . . 48 Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership “Salesman” Exemption; Section 7(i) Exemption Is Still Available. . . . . . . . . . . 1 Nissan Expands Recalls Tied to Takata Air Bag Flaws . . . . . . . . . . . . . . . . . . . 47 PartsTrader Says Integration to Help Dealers Quote Parts . . . . . . . . . . . . . . . 52 Progressive Plans to Charge Risky Snapshot Drivers More . . . . . . . . . . . . 52 Retired Body Shop Owners Form Foundation in Honor of Daughter Kayla Mueller . . . . 1 Sherwin-Williams Renews as the ‘Official Paint Of NASCAR’ . . . . . . . . . . . . . . . . 43 South of the Square Collision in OH One of 375 Recognized for being in Top Five Percent in Customer Service by Mitchell . 50 Spanesi Expands Operations in IL and Hires Tom McGee as Business Development Manager . . . . . . . . . . . . . 51 Surveys Will Help Shops Better Understand Industry Billing Practices . . . . . . . . . . . 10 Tech Program Prepares Former Soldiers to Enter Collision Industry . . . . . . . . . . 24 Texas Collision Repair Shops Cite Legal Issues with GEICO Regarding Certain Fees . . . . . . . . . . . . . . . . . . . . 32 WIN Educational Conference May 4–6 in Baltimore . . . . . . . . . . . . . . . . . . . . . 50

Indexof Advertisers

REGIONAL ABRA Adds 267th Location, in West Nashville, TN . . . . . . . . . . . . . . . . . . . . . 6 ASA Opposes Tennessee Salvage Legislation . 6 Auto Salvage Yards in NC Searchable for Parts Pricing . . . . . . . . . . . . . . . . . . . . . 9 Brandon Collision Opens New State-of-the -Art Body and Collision Repair Shop In Tampa . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Collision Repair Education Foundation Holds Makeover Grant Event at Lawrenceville, GA’s Maxwell High School, Recipient of 2013 $50K Grant . . . . . . . 20 Enterprise Helps Collision Students At SkillsUSA. . . . . . . . . . . . . . . . . . . . . . . . 6 Florida Assignment-of-Benefits Bill May Not Advance . . . . . . . . . . . . . . . . . . . . . 1 Florida Legislature Passes HB 273, Allows Policyholders to Receive Insurance Docs Via Email . . . . . . . . . . . . . . . . . . 54 Hall Ford Hyundai in NC Recognized for being in Top Five Percent in Customer Service by Mitchell . . . . . . . . . . . . . . . 10 Herbie, Hollywood’s Most Beloved VW Beetle, Auctioned at Barrett-Jackson Palm Beach, FL, on April 17 . . . . . . . . . . . . . . . . . . . . 9 Lawyers Picked to Lead Posts in Air Bag Lawsuits . . . . . . . . . . . . . . . . . . . . . . . 46 MS Attorney General Jim Hood asks U.S. for Probe of ‘Steering’ of Customers By Insurers . . . . . . . . . . . . . 1 New Gerber Shop Location in Jacksonville . 20 Scam Artist Felon Who Posed as Mobile Mechanic Released From Jail in TN . . . 49 SCRS Welcomes NC-Based LORD Corporation as Newest Corporate Member. . . . . . . . . . . . . . . . . . . . . . . . . 8 Service King Announces Fourth Orlando, FL, Location . . . . . . . . . . . . . . . . . . . . . . . . 4 Service King Has Second Charlotte, NC, Location . . . . . . . . . . . . . . . . . . . . . . . 15 Steering, Aftermarket Parts, and Suppressed Labor Rates at GCIA’s March 19 Meeting . 4 Three Tampa Families Benefit from Recycled Rides . . . . . . . . . . . . . . . . . . . 6 TX Scam Artist Sentenced for Using Deceased MS Man’s ID . . . . . . . . . . . . 46

FL and LA in Top 5 Most Expensive Insurance States

Drivers in Maine, Ohio and Idaho pay a third less than the national average to insure a new car, according to a new data analysis from Insure.com. Motorists in Michigan pay by far the most, nearly 90 percent more than the national average. The car insurance comparison website surveyed rates from six major carriers across multiple ZIP codes in all 50 states and Washington, D.C., averaging rates for the 20 best-selling vehicles nationwide. Those models, led by the Ford F-series pickup, represented 40 percent of the U.S. new-car market in 2014. “The car you drive matters, of course,” said Insure.com consumer analyst Penny Gusner. “But where you live usually matters more.” Last year's best-selling car, the Toyota Camry LE, costs an average of $1,363 nationwide to insure for Insure.com's sample driver, a 40-year-old homeowner with a clean record. But that same driver would pay as little as $843 in Maine and as much as $2,662 in Michigan. Here are five least-expensive states, ranked on the average cost to insure 2015 editions of the 20 bestselling vehicles, and how they compare with the national average: 1. Maine: $805, 39% less than the national average of $1,311

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

Hyundai Wholesale Parts Dealers. . 48 Jon Hall Chevrolet . . . . . . . . . . . . . 32 Kernersville Chrysler-DodgeJeep-Ram . . . . . . . . . . . . . . . . . . 41 Kia Motors Wholesale Parts Dealers. 53 Lexus Wholesale Parts Dealers . . . 50 Maaco Franchising LLC . . . . . . . . . . 9 Malco. . . . . . . . . . . . . . . . . . . . . . . . 15 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 39 MINI Wholesale Parts Dealers . . . . 51 MOPAR Wholesale Parts Dealers . . 33 Nalley BMW. . . . . . . . . . . . . . . . . . . 22 Performance Automall . . . . . . . . . . 30 Porsche Wholesale Parts Dealers . 46 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Priority Honda . . . . . . . . . . . . . . . . . 35 Radley Chevrolet. . . . . . . . . . . . . . . 12 Replica Plastics. . . . . . . . . . . . . . . . 40 Rick Hendrick Dodge-ChryslerJeep-Ram. . . . . . . . . . . . . . . . . . . . 8 Safety Regulation Strategies . . . . . 34 SATA Spray Equipment . . . . . . . . . 19 Subaru of Gwinnett . . . . . . . . . . . . . 35 Subaru Wholesale Parts Dealers . . 43 Tameron Hyundai . . . . . . . . . . . . . . 38 UniCure Spraybooths . . . . . . . . . . . 23 Urethane Supply Company . . . . . . 26 Valspar Automotive . . . . . . . . . . . . . . 5

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 3

Service King Announces Fourth Orlando, FL, Location

Service King Collision Repair Centers announced on March 31 the acquisition of Duston and Roberts Collision Center. The announcement comes as the two collision repair providers officially finalized the partnership, March 27. “We’re proud to extend our services in the Orlando area with the addition of our fourth Service King location,” said Scott Ward, Service King Regional Vice President. “The Duston and Roberts Collision Center team has built an excellent organization and reputation. We look forward to the benefits this partnership brings our Orlando customers and insurance partners.” Service King now has 236 locations in 21 states. Duston and Roberts Collision Center first opened in 1987 under the leadership of current owner Farrell Duncan. The company has grown from a staff of three employees to the current 18,000 square foot collision repair center and a full-time staff of 18. Duston and Roberts currently repairs about 150 vehicles per month. “We are looking forward to the partnership with Service King,” said Duncan. For more, visit www.serviceking.com.

Steering, Aftermarket Parts, and Suppressed Labor Rates at GCIA’s March 19 Meeting by Chasidy Rae Sisk

On Thursday, March 19, the Georgia Collision Industry Association (GCIA) held their bi-monthly member meeting at Maxwell High School. Refreshments were provided for the attendees by the school. Principal Jeff Hall and Collision Director Butch Luther expressed their gratitude to GCIA and CREF for their recent donations, as well as the Atlanta I-CAR committee, represented by Gerry Poirier, for their $50,000 Makeover Grant in 2013. Howard Batchelor, Executive Director of GCIA, said the meeting went “very well.” He added, “I think those in attendance really enjoyed the meeting and learned what the GCIA is working towards on their behalf.” Batchelor opened the meeting by discussing several of the association’s current initiatives. On March 12, Batchelor and Board Member Glenn Grey met with Timothy Butler, the GA Attorney General’s Chief Policy Advisor who serves as liaison to the GA General Assembly and the National Association of Attorneys General. The group “discussed several issues that are affecting GA consumers (steering, aftermarket/salvage parts usage, and sup-

pressed labor rates),” Batchelor states. GCIA’s Executive Director continues, “I showed him our 8th annual labor rate/material rate survey and how some insurers used a most favored nation clause to pay lower amounts than the PCP. We also discussed new vehicle technology and the cost for new equipment and training and the need to get a return on the investment. We discussed the need for qualified technicians in the future and that the shop warranties all repairs, not the insurance company, as well as the fact that some insurers are making the customer pay for their rental car until their claim is paid. Mr. Butler suggested that all shop owners and managers need to know their local representatives and educate them on the issues that are affecting the industry and consumers. We hope that Mr. Butler will be a resource in the future.” Batchelor reminded attendees that CIC will be at the Crowne Ravinia in Atlanta on April 8 and 9. He also noted that SCRS will hold an open Board meeting on April 7 at 3PM and a Repairers Only Roundtable the following morning at 8:30AM. In conclusion, Batchelor disclosed that Mike Anderson will be the featured speaker at this year’s Southern Automotive Repair

Conference, taking place April 17 and 18 at the Beau Rivage Resort in Biloxi, MS. Next, Batchelor introduced guest speaker Clark Plucinski, Executive Director of CREF, who spoke about the foundation’s beginnings and their efforts to aid automotive schools across the country. Plucinski said, “It took a while for him to find the proper way to help these automotive schools,” according to Batchelor. “The automotive program is very expensive to manage and really needs support from vendors and shops. [Plucinski] said they went from nearly a million dollars a year to over $13 million in donations last year. What his foundation is doing for the industry is tremendous.” GCIA’s next meeting will be held Thursday, May 21, 2015.

GCIA www.gcia.org 770-367-9816

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Three Tampa Families Benefit from Recycled Rides

The Igarza family, Garland family, and Chapman family, all residing in Tampa, were helped out by Allstate Insurance, Catholic Charities of St. Petersburg and Gerber Collision and Glass after bad fortune had left them carless, reported Kelsey Sutherland, Times Correspondent. The insurance company, charities, and body shop helped refurbish three vehicles for these families in need. Recycled Rides, a program created by the National Auto Body Council, organized the good deeds and awarded the cars to the families on March 13. The local recipients detailed stories of difficult times and strife in submission essays, but all mentioned that they were working to make a better life. Luis Igarza and his family escaped persecution and imprisonment from the Cuban government in August when he traveled to the United States and received refugee status, reported Sutherland. Through Catholic Charities Refugee Resettlement program, the Igarza family was provided housing and a means to study English. Eventually, Igarza earned a full-time job at Walmart through the program.

ABRA Adds 267th Location, in West Nashville, TN

ABRA Auto Body & Glass announced it has added a new location in West Nashville, TN. It is the eighth repair center for ABRA in the Nashville metro area. The company’s collision repair center portfolio now stands at 267 in 20 states. ABRA’s President and Chief Executive Officer, Duane Rouse, says the company is especially excited about opening the West Nashville repair center. “The new center gives us the opportunity to show our insurance partners and customers our best-in-class operating methods and innovative service model in a stateof-the-art facility.” ABRA’s Executive Vice President of Business Development, Tim Adelmann says the company is growing across Tennessee and expects to continue with the addition of the new repair center. ABRA plans to continue expanding in the months and years ahead. It is actively seeking new opportunities to acquire repair centers and integrate them into its industryleading operating system. Interested parties in major markets should contact Scott Gerling, Vice President of Corporate Development (sgerling@ abraauto.com or 763.585.6210).

Igarza works the 10 p.m. to 7 a.m. shift, which he had been riding his bike to. Now, he has a safer means of transportation. Kathleen Chapman is a single mother of two daughters, one of whom has autism, anxiety and irritable bowel syndrome. The family relied solely on public transportation for doctor appointments and extracurricular activities, reported Sutherland. In 2010, Gary Garland and wife Cathy lost their jobs within a week of each other, as well as their only child. By 2011, they were able to find a bit of solace living at Pinellas Hope. After obtaining that housing, they we able to find jobs but their lack of transportation meant walking six miles every day, which they still believe was a blessing, reported Sutherland. The refurbished cars have provided all three families with a sense of normalcy that many take for granted. NABC teamed up in 2014 to donate nearly $3 million in refurbished vehicles, positively changing the lives of 200 individuals and their families through the Recycled Rides program.

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ASA Opposes Tennessee Salvage Legislation

The Tennessee Legislature is considering salvage legislation, House Bill 443. If implemented, this bill will allow unlicensed buyers to purchase vehicles from salvage pools. ASA believes the legislation will harm both consumers and automotive repairers in Tennessee. Approval of this bill could drive up the costs of auto repair as parts become more limited. Furthermore, vehicles that should be processed for parts could be used for unintended purposes such as resale or criminal activity. In response to the legislation, ASA sent letters to the chairman of the Tennessee House Committee on Transportation as well as the other Committee members, voicing concern regarding House Bill 443. ASA also encourages Tennessee automotive repairers to contact their representatives and explain the harmful effects of this legislation. To view and send an opposition letter for House Bill 443, please visit ASA’s legislative website at www.TakingtheHill.com > Legislation > State > Legislative Alerts and Updates and scroll down to Tennessee.

6 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Enterprise Helps Collision Students At SkillsUSA

Enterprise Rent-A-Car partnered with the SkillsUSA South Carolina Leadership and Skills Conference March 26–27 at Greenville Technical College’s McKinney Automotive Center to support collision repair education. Enterprise Rent-A-Car provided four identical, late-model vehicles to SkillsUSA South Carolina for use in vehicle repair contests taking place during the conference. SkillsUSA South Carolina is the state affiliate of the national SkillsUSA, a national nonprofit organization serving high school and college students who are preparing for careers in trade, technical and skilled service occupations. “It’s critical to provide students with opportunities for highquality, hands-on repair technician training with organizations like SkillsUSA,” said Mary Mahoney, VP insurance replacement division for Enterprise Rent-A-Car. “We’re committed to helping the next generation of vehicle repair technicians receive up-to-date training through access to the latest vehicle models and technologies. These students are vital to the future of the collision repair and automotive insurance industries, as well as our own business and vehicle service centers.”

Nearly 80 schools and more than 30 collision repair programs from across South Carolina compete in the 2015 contests. Judges test students’ repair skills related to specific National Institute for Automotive Service Excellence (ASE) and automotive repair knowledge areas, including vehicle maintenance, collision repair, automotive refinishing and estimating. Students will read engine codes with a diagnostic tool, view components, troubleshoot the problem, and explain to judges how to properly repair a vehicle. Enterprise provides vehicles for the masking and refinish preparation portion of the contest. Once the event is completed, Enterprise returns the vehicles to pre-contest condition. Enterprise’s commitment to the future of the collision repair industry extends beyond the SkillsUSA partnership. In fact, Enterprise Rent-ACar recently provided vehicles for the grand opening of a new collision repair education school at Fayetteville Technical Community College in North Carolina, and gave $65,000 to the Collision Repair Education Foundation. To learn more visit www.enter prise.com.

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 7

Brandon Collision Opens New State-of-the-Art Body and Collision Repair Shop In Tampa

Brandon Collision recently finished construction on their new 150,000square-foot facility at 8700 E Adamo Drive in Tampa, FL. Although the last facility was capable of meeting the needs of the clientele, Brandon Collision took the feedback of their customers and set out to exceed all expectations. With extended hours and all of the latest auto body and collision repair equipment, those who frequented the collision center in the past are sure to find that the upgrades have only helped to improve the already-impressive level of service. In addition to the new facility,

there are a few benefits that Brandon Collision is able to provide over some of the other auto body and col-

The Society of Collision Repair Specialists (SCRS) announced on March 23 that Cary, NC-based LORD Corporation (LORD) is its newest corporate member. LORD is known in the automotive assembly industry for their Magneto-Rheological (MR) vehicle suspensions; Autoseal coatings; electronic potting encapsulants; and Chemlok, Flocklok, and Versilok lines of adhesives. LORD Corporation’s OEM connection in vehicle assembly allows them to bring cutting edge technology to the collision repair industry

lision repair ships in Brandon FL. The service department is composed of I-CAR-certified technicians who possess the skills and knowledge needed to work on all different makes

and models, and to utilize all of the equipment within the collision center. The collision center also has booths and frame alignment jigs that cannot be found at any other body shops in the area. With the updated facility, Brandon Collision added a new aluminum room that has been added specifically for the redesigned F-150. With the proper equipment in place, the actual cost of repairing an aluminum 2015 Ford F-150 is competitive with the cost of repairing the former steel-built bodies. Brandon Collision is the first and only collision repair shop in the

Tampa area to offer a dedicated aluminum room. Another one of the advantages of utilizing the services at Brandon Collision is that they make the repair process more painless than ever before. The center has an Enterprise car rental office on site. Tampa residents interested in learning about the services provided by Brandon Collision, or who want to tour the facility are encouraged to get in touch with the service department of the collision center, which can be reached by phone at 813327-6632, or through the website at www.brandoncollision.com.

through the Fusor Aftermarket Adhesives product line. Fusor adhesives and sealers carry numerous OEM approvals, such as Fusor 108B, approved by Ford for the aluminum F-150 and Fusor 2098 approved by GM for crash durable steel to aluminum bonding on the Cadillac ATS and CTS. Fusor will participate in various industry events sponsored by SCRS, such as the Repairer Driven Education (RDE) series training segments offered at the SEMA Show. “We are partnering with SCRS because we value their deep and broad

industry involvement and hope to increase Fusor’s support to the collision repair industry,” LORD Structural Adhesives staff scientist Douglas Craig said. “This membership will allow a great channel for providing important product information and training to help collision repairers make the right repair, using the right procedures. I have worked with SCRS indirectly for many years and am really excited to take it to this new level of support.” “LORD Corporation’s nine decades of automotive products make it a re-

spected and proven manufacturer for both OEMs and collision repairers alike, and SCRS is proud to partner with such an innovative, customer-focused company,” SCRS Board Chairman Ron Reichen said. “As automotive technology and repair procedures continue to explode in diversity, we look forward to keeping collision repairers ahead of the curve with the assistance of a company whose inventions have helped define the curve itself.” For more information about LORD Corp., visit http://www.lord.com.

SCRS Welcomes NC-Based LORD Corporation as Newest Corporate Member

8 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Herbie, Hollywood’s Most Beloved Volkswagen Beetle, Sold at BarrettJackson, Palm Beach, FL, on April 17 for $32,100 Barrett-Jackson auctioned an original “Herbie,” the world’s most beloved Volkswagen Beetle, during the 13th Annual Palm Beach Auction in Palm Beach, Florida, April 17–19, 2015, at the South Florida Fairgrounds. The ’63 Volkswagen Beetle rose to fame as the star in the 1969 film “Love Bug,” which led to three subsequent films in the original series. The hammer price was $32,100. “The Walt Disney studio did a phenomenal job of taking an unlikely car and turning it into a Hollywood film star,” said Craig Jackson, chairman and CEO of Barrett-Jackson. “This specific version is one of a handful that was actually used for driving and interior shots during the movie. While there were quite a few “Herbies” used in the films, only a few remain in existence.” Known to the movie-going public as “Herbie” and to Walt Disney Productions as “5916,” this car is better known in the loyal Herbie

community as the “oil squirter,” as it was designed to squirt oil out of the

passenger-side wheel well. It was particularly famous for doing just that on a police officer’s foot in the 1977 film “Herbie Goes to Monte Carlo.” After the car’s final appearance in 1980’s “Herbie Goes Bananas” it was sold into private hands. It was later purchased by Arthur Porter, who had the car restored to its “Herbie Goes to Monte Carlo” appearance and piloted it in many vintage car races until the year 2000. Herbie spent the next few years relaxing in museums. The next owner, Doug

Kaufmann, saw to it that Herbie’s interior was restored to its “Monte Carlo” state, and reinstalled the bumpers, which had been removed for vintage racing events. “I love that our bidders can get as excited about a Volkswagen Beetle, as they can an original Shelby GT350,” said Steve Davis, president of Barrett-Jackson. “I think it shows the depth and breadth of the collector car hobby and our docket at each auction. We’re delighted that ‘Herbie’ was a part of our Palm Beach auction.” Live coverage of the Barrett-Jackson Collector Car Auction in Palm Beach was broadcast in live, high-definition TV coverage on Velocity and Discovery from Friday through Sunday, April

17-19. For more information follow the link to http://www.BarrettJackson.com/Bidder/Home.

Auto Salvage Yards in NC Searchable for Parts Pricing

The state of North Carolina is one of the largest areas in the country to find second hand automobile parts retailers. Auto salvage yards in NC can now be searched by used parts buyers on the web through the Locate Car Parts website at http://locatecarparts.com/autosalvage-yards-in-nc. The parts location tool is expected to open up a different method of finding domestic or foreign components for sale. Those who enter the state searchable system select a part as well as a vehicle year that will be used by NC yards to calculate prices. All salvage yards participating in the search system distribute price quotations. "Both North and South Carolina yards can be found while using our dedicated system to help auto parts buyers find good pricing and better selections of inventory," said a LocateCarParts. com representative. Because salvage dealers differ from a regular junk yard, parts research can be more specific. A salvaged motor vehicle is often purchased through insurance companies or at auto auctions in order to obtain the best quality components. The locator tool can be used by auto body mechanics, consumers or third-party retailers of vehicle components.

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 9

Hall Ford Hyundai in NC Recognized for being in Top Five Percent in Customer Service by Mitchell by Stacey Phillips, Assistant Editor

Hall Ford Hyundai in Elizabeth City, North Carolina recently received Mitchell’s 2014 AutocheX Premier Achiever Award for exemplary customer service. The new car dealer/body shop was one of 375 collision repair shops across North America that was honored. “This is an important measure for shops in helping to make sure they are delivering a good experience to their customers,” Jim O’Leary, Mitchell’s Vice President of Product Management, recently told Autobody News. The company’s 13th annual Premier Achiever Awards honored repairers that consistently earned customer satisfaction scores in the top five percent of their programs measured by AutocheX. “One really important part of Mitchell’s AutocheX program is having a baseline of the same data collected so that we can compare one shop’s results to another and one insurance company’s results to another so they can benchmark themselves against the industry,” he said. The Ford Hyundai dealership is located about an hour drive from North Carolina’s Outer Banks and is owned by Hall Automotive, a division of MileOne Automotive. Body Shop Manager Tony

Cartwright and his team also service the collision needs for Hall’s Honda store on the other side of town. The business has been there for 30 years and is a DRP shop for several of the major insurance companies.

Front row from left: Liberty Lang and Alex James.Back row from left: Body Shop Manager Tony Cartwright, Keith Conner, Asst. Body Shop Manager Terri Winslow, Darryl Bennett, Ananias Dossantas, Chris Davison, Mike Long, Paul Smith and Mark Bills

Cartwright said customer satisfaction has always been a priority. The business began using AutocheX a few years ago at the request of Nationwide and it is now used for all of their customers. “Autochex has been a good tool for us to help meet and exceed our customer expectations,” said Cartwright. “The feedback is very helpful in im-

Surveys to Help Shops with Billing Practices

How does your shop’s billing practices differ from other shops? Are other shops being paid for procedures you’re doing but for which you’re not being compensated? Those questions form the basis of a new series of industry surveys being conducted as a joint project by CollisionAdvice and CRASH Network. “The training and consulting work I do has shown me that many shops aren’t aware of non-included items and operations they are doing but not itemizing on estimates,” Mike Anderson of CollisionAdvice said. “These surveys will help shops understand what these operations are, and whether other shops seek and receive compensation for them – or if they truly are ‘the only one.’” The first of these surveys, which covers refinish-related items and operations, is available online now through April 30. Similar surveys on other aspects of repairs will be conducted later this year. Anderson said the surveys, which will take about 15-30 minutes each, should be completed by the shop owner, manager or estimator who is most familiar with the shop's billing practices and the payment practices of

the largest national insurers. Each individual shop location (whether a standalone business or part of a multi-shop operation) may submit one response to the survey. Each shop's individual responses will be held in the strictest confidence and not released in any way. Only cumulative data will be released through CollisionAdvice and CRASH Network. Participants who choose to provide optional contact information will receive an executive summary of the survey findings. To take the survey, visit: https:// www.surveymonkey.com/s/refinish _survey. CollisionAdvice (www.Collision Advice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. Mike Anderson and his team offer real-world, cutting edge training and guidance both in the classroom and one-on-one in the shop. CRASH Network (www.Crash Network.com) is an independent source of news and information not found anywhere else in the collision repair industry. It offers subscribers a quick-to-read weekly summary of key information and perspectives.

10 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

proving our customer service. It gives us a way to measure our performance in the eyes of our customers.” Mitchell, a provider of technology, connectivity and information solutions to the Property & Casualty claims and collision repair industries, conducted the customer service surveys by phone and on the web. O’Leary said, “There is one question that we believe is most indicative of the consumer’s experience with the repair; ‘Would you refer this shop to a friend or family member on a scale of one to 10?’” Based on the results of the surveys, Mitchell selected the award recipients, which represent 41 states and provinces across the United States and Canada. They range in size from small, familyrun businesses to large consolidators. Cartwright said the body shop’s customer satisfaction scores have improved quite a bit since using Autochex and focusing on a higher standard. “I was very surprised to win this award; it was unexpected,” said Cartwright. “Thanks to our staff for their hard work. Without their pride in doing a good job this would not be possible.” He said most of their employees, which include six technicians and four office staff in the collision shop, have

been there for several years. In addition to the recognition, the recipients receive a trophy, signage for their shops and access to a website that provides promotional materials and congratulatory messages from industry leaders. Nearly 4,000 Premier Achiever Awards have been presented since the program was launched in 2002. O’Leary said that 7,500 shops currently participate in AutoCheX. He said that some of the main advantages of the program include improved communication and loyalty with customers as well as maximizing repeat and referral business. “The benefit is providing them with very actionable, timely feedback that helps them to improve their operations,” said O’Leary. “It’s also valuable to the shops to have an objective third-party measuring their results and then use those results to make a case for receiving more business from their insurance partners.” “Autochex is a very useful tool. Anyone who is not already using it, I would highly recommend that you start,” said Cartwright. For more information about Mitchell and the AutocheX program, visit www.mitchell.com

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CA Body Shop Sees Almost 30 Percent Increase in Profit After a Year of Lean Processes there is as little waste as possible. “There is no need to hand out M & M Paint & Body Shop in El Cen- whole boxes of sand paper or gallons tro began transitioning to a lean shop of body filler,” and if too much waste after attending a Sherwin-Williams is being produced by an employee, Automotive Finishes (SWAF) the issue can be corrected in an effi“Ecolean Course” about a year ago. cient manner, explained SWAF sales Nuventory, an inventory management associate Hilary Castro. software solution for the collision reRoss trained co-owner Rosie pair industry, and 3M Automotive, Magos on how to most effectively also aided in the shop’s “lean jourutilize her inventory management ney,” which started 13 months ago. system. The course focused on three central “There are visible indicators of tasks that, according to SWAF, help lean and there are also some invisible increase profitability on all fronts: indicators. Customers who get to see 1. Making sure everything is put the body or paint department can only away in the correct place after each see the visible indicators,” explained job. the independent shop’s co-owner, 2. Ensuring that all workers use Rosy Magos. “In a small town like an accurate amount of each material ours, most people walking into a body in order to prevent waste. shop expect to see a dirty place where 3. Holding employees account- everyone is tripping over parts, untidy able for their actions. technicians, etc. Our shop has never been that bad, but focusing on the 5S These three tips fall in line with the 5 part of lean has made us prouder to S’s—sort, set in order, shine, stan- allow customers to see their vehicles dardize, and sustain—that were em- during repair. The shop in general phasized during the SWAF courses. looks like a dealership.” Magos said her ‘internal cusM&M Body Shop now makes a point to track all paint use back to tomers’ (employees) are the ones who get to react to the individual indicators, which include a more profitable shop, more money in the tech’s pockets, vehicles driving out in a shorter amount of time than before, and a lot less unhappy customers. “Technicians are now more engaged in what makes them money versus moving around clutter to try and The lean process puts emphasis on organization and labeling move a car, get a part, or find each and every repair order with set a part, or worrying about running out profit margin parameters. of a specific material when you need The California shop adopted and it the most, etc.,” said Magos. “This implemented Nuventory’s Standard translates to less frustration for them Operating Procedures (SOP), which and less work for me.” allows them to manage their materiMagos added that, not only are als, track usage, and streamline orjobs completed a day or two ahead of dering to “just-in-time” inventory, the previously scheduled out date, but according to Nuventory CEO Leslie profit has increased 27 percent in the Ross. last year. “Using Nuventory’s technician “It took a good three months to usage tracking, M & M is able to gain start seeing real results and start callvisibility on materials per hour and ing ourselves ‘lean,’ but one thing I pinpoint where there might be waste, learned at the Eco-Lean Courses from or needed training,” added Ross. Sherwin-Williams was that this is a With guidance from trusted ven- journey and not a destination. Which dors, M & M has come up with their means…we’re not there yet,” said own SOP to become more efficient. Magos. “We’ve made tremendous Each item can be traced back to the progress ... but we’ll never arrive to person who last used it, to ensure that perfection. Products keep changing, by Victoria Antonelli, Online Editor

12 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

day-to-day.” Castro explained that with insurance demands at an all-time high, as well as consolidators growing at a rapid pace, it is vital for independent shops to become as lean as possible. “M & M has had to rethink how they run their business. The old traditional way of running a collision shop has changed dramatically,” said Castro. “It is more important than ever to utilize trusted vendors that can assist with a shop’s journey.” 3M Account Representative Armando Munguia has helped train each department on OE recommendations for tracking waste with a new program that the company has developed called Color-coding helps identify what repairs are needed for Performance Analysis Tool each job (PAT). up front for the customer to pick up “Utilizing PAT, we were able to without disturbing their plans for the measure and control cost, capitalize day, etc. We keep working at it. on potential revenue opportunities, Everyone participates in the brain- drive productivity, cycle time and CSI storming of new methods, tips, tricks, improvement, explained Munguia. See Lean CA Body Shop, Page 42 etc. and we keep making progress vehicles keep changing, and new ideas on how to save time, space, materials, and money keep popping up in your minds. Every new job is another challenge to pair up the right technician, with the right tools, using the right materials at the best price, getting the right parts undamaged and on time, the right timing to get to paint, the right time to have it washed and

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Continued from Cover

MS Attorney General

tions to halt the “steering” practice. That point is raised in Hood’s letter to Holder, which also states that “insurers are implementing programs which require the use of after-market parts or re-manufactured parts, without disclosing the use of such to consumers and in spite of the fact that such parts are not of the same like, kind and quality of the original equipment manufacturer. This practice risks both the safety of the consumer, as well as the integrity of any vehicle warranties that the consumer may have otherwise.” For example, Hood said, “body shops have reported to my office that they are pressured into accepting bids from [State Farm’s] . . . online system,” Parts Trader, “which “State Farm requires its ‘Select Service’ shops to use for obtaining parts. “Body shops have reported to my office that they are pressured into accepting bid from Parts Trader for after-market or remanufactured part that are unsafe and far below the quality of the original equipment manu-

facturer.” Hood asked Holder to see if such practices not only violate the 1963 consent decree but also federal laws and regulations. Hood said on “Anderson Cooper 360” on CNN last month that insurers that use such practices attempt to “use their economic power to grind down working people.” He said in response to a question that he is “reviewing options” as to which actions he might take. State Farm issued this statement to the Mississippi Business Journal: “Our customers choose where their vehicles are going to be repaired. We provide information about our Select Service program while at the same time making it clear they can select which shops will do the work.” Meantime, the owner of Clinton Body Shop has the distinction of being John Mosely a litigant against file photo State Farm and also Republican candidate for state insurance commissioner. John Mosley is challenging two-

term Commissioner Mike Chaney in the Aug. 4 party primary. There are no Democratic candidates. Mosley would like to see changes in how the department is run, and how campaigns for the office are run. For starters, he said that if he is elected, he would ask the Legislature to prohibit campaign contributions from insurance companies. Turning to auto insurance, he noted that the department website states that “the most an insurance company shall be required to pay for the repair of a vehicle . . . is the lowest amount that such vehicle . . . could be properly repaired or replaced . . . within a reasonable geographical or trade area of the insured.” “Most insurance policies actually provide for greater payment than what is statutorily required . . . .” Mosley said in an interview that “you don’t know what a struggle that is” to find one of those insurers that would pay beyond the minimum. He recommends changing the wording of the guideline and the state law it is based on to include a definition of “properly” by adding language to the effect of “adhering to all manufacturers’ specified repair proce-

dures.” Also, he would like the see the licensing of body shops. Currently shops may voluntarily subscribe to the standards of I-CAR, or the Interindustry Conference on Auto Collision Repair, an international not-for-profit organization. Moving to another area, Mosley said that property and casualty insurance needs more transparency. He supports the latest attempt to pass what has been called the Clarity Act, which would make it easier to determine how insurers received in premiums and how much they pay out in each zip code. The effort was launched after Hurricane Katrina and coastal homeowner’s policyholders felt that they were paying a disproportionate share. He said that Chaney has been reluctant to support the measure till this election year. He said the information is available in the commissioner’s office, but “it’s not an easy task to look and see what the losses are by zip code.” “These folks on the coast are still paying higher premiums 10 years after Katrina. And folks in the other parts of the state think their premiums are Original BMW Parts

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higher because they think they are subsidizing the Gulf Coast.” Chaney said that he “killed” two earlier versions of the act in the past because using the zip codes would have been too fragmentary. He said he and others started working on the bill last year and reframed measure, which also tracks claims and premiums by county. Gov. Phil Bryant signed House Bill 739 on March 13. If he were to become commissioner, Mosley, 61, acknowledged in response to a question that he could be seen as in a potential conflict of interest of regulating the auto insurance industry while depending on it. He agreed the best thing would be for him to put his business in a blind trust where he would have no dealings with it as long as he held office. Chaney, 71, is the 11th person to hold the position of commissioner since the department was established in 1900, he said. The department benefits from the stability of having a strong continuity, Chaney said. He said that the body shops have some valid points about what kind of parts they use, “but in many cases the original parts are not as good some of

the replacement parts they’re using. You have to worry about the safety of automobiles.” Meantime, the labor rates in Vicksburg, where he lives, are typically $50 to $55 an hour, Chaney said, adding, however, that in some cases department investigators have found that “shops are trying to get $70 to $75 an hour.” Chaney believes that the current outbreak of hostilities between body shops and insurers—at least in Mississippi—was fed by a horrendous hailstorm two years ago. The storm “did $500 million in damage from Vicksburg to Meridian in a band about 15 miles wide. A hundred and 80 million of it was in automobiles in the Jackson metro area. About 20 body shops were making all that money. That’s when our nightmare began with the body shops . . . which were billing without preauthorization” from the insurers.” “It basically was a spitting contest between the body shops and the insurance companies. We didn’t have a lot of complaints from consumers. We were able to take care of them. John [Mosley] made a lot of money during that time.”

As for contributions from insurance companies regulated by the state, he said his position is “you’ll still get good government whether you contribute to me or not.” He conceded that it takes a lot of money to run for the office. He’ said he’ll need $300,000 to $400,000 this year. As of Jan. 30, his campaign has received $136,084.13 and had cash on hand of $267,921.99, according to the secretary of state’s office. But in point of fact Chaney said: “We don’t take money from big insurance companies.” Otherwise, “if I see where I have to regulate somebody who has given me money, I’ll refuse it,” Chaney said. Or if someone is offering a campaign contribution to curry favor, “I’ll prosecute ‘em.” Mosley’s campaign was not started till late February, and so his first reporting deadline will be May 8.

Autobody News thanks the staff of msbusiness.com for permission to reprint their article.

www.autobodynews.com CHECK IT OUT!

Service King Has Second Charlotte, NC, Location

Service King Collision Repair Centers, announced today its continued expansion in Charlotte, NC, with the acquisition of Matthews Township Collision Center, which complements Service King’s existing Charlotte location on McAlway Road. The two collision repair providers officially finalized the partnership on Friday, March 27. “This is an exciting step forward in our commitment to provide the Charlotte area with the very best in collision repair services,” said Scott Ward, Service King Regional Vice President. “Our team looks forward to a successful future with this partnership.” Service King now operates 235 locations in 21 states. Gary Hogan founded Matthews Township Collision Center in 1998 as a one-employee operation. The company grew to a staff of seven teammates and built a strong reputation for honesty, integrity and excellence. His team is a consistent recipient of the Best of Charlotte and Angie’s List Super Service awards. Matthews Township Collision Center also earned an A+ rating from the Better Business Bureau. The 12,000 square-foot facility currently services 120 vehicles per month.

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 15

Lawsuit Filed Against G&C Auto Body Cites Unfair Business Practices, G&C Responds ‘No Merit’ by Stacey Phillips, Assistant Editor

Seven California auto body repair technicians have filed a lawsuit against G & C Autobody, a medium-sized MSO based in Santa Rosa, CA. The plaintiffs claim they were misclassified as independent contractors by the company and allege a violation of the CA wage and hour laws, unfair competition and unfair business practices. Joseph Lippard and Vaughn Medeiros filed the original complaint in the Superior Court of California County of Sonoma on March 17. They both worked at G & C as automotive technicians at the company’s Santa Rosa location. Since then, an additional five former G & C workers

have joined the case, all alleging they were misclassified as independent contractors: Phil Bill, Jeff Edwards, Luis Mata, Jose Sanchez and Scott Steiner. According to the complaint, “Unlawful and unfair business practices included the failure to pay earned wages including overtime wages; the imposition of paycheck deductions and paybacks to Defendant from its workers for routine and ordinary business expenses for its automotive technicians’ shop space, equipment and other overhead costs.” “The case is essentially challenging G&C’s long-standing practice of misclassifying all of their autotechs, the guys who do the body repair work

G&C Attorney Daniel Beck Responds to Charges by Ed Attanasio

Daniel Beck is the attorney defending G & C Auto Body and is the managing partner of Beck Law, P.C. in Santa Rosa, CA. When Ed Attanasio spoke to Beck regarding the charges against G&C Auto Body, Beck said he is confident that the shop can successfully defend this action, as the plaintiffs have not suffered any financial damages as they are alleging in their complaint. “This is a case of unbridled greed. Five former independent contractors claim that they were employees of G&C, although they knew very well that they were independent contractors operating their own businesses. Each one of the plaintiffs/ claimants signed contract agreements each year they were contracting with G&C, stating and confirming that they were independent contractors and not employees. There were no gray areas there, and their roles were spelled out to them time and time again. Their company names were Lippard Enterprises, Vaughn Mederios Auto Body, etc.—and they had the ability to hire people to assist them in the repair jobs, and several of them did. They had individual business licenses that were issued through cities in which they were operating; and they used all of their own tools, materials and equipment in repairing vehicles at G&C Auto Body. They were small businesses operating completely separate from the rest of the company. The plaintiffs are now trying to

take advantage of the new trend in litigation; labor cases alleging misclassification and then damages for unpaid breaks and overtime. In the case here, the Plaintiffs and claimants should not be allowed to reap the rewards of having their own businesses, and then later claim they are entitled to any unpaid wages, and compensation for missed lunches and breaks. In fact, when they were contracting for G&C Auto Body they were making way more than they would have as an employee of G&C. Joseph Lippard made more than $350,000 annually during several of the years for which he worked with G & C, and the other plaintiffs all made much more than they would have made as employees. The plaintiffs in this case want to get paid twice. They were already paid handsomely for their work and now they want to “double-dip” for money they have already received. Based on the evidence that we have, we’re fairly confident that any judge and jury will be able to see that their case has no merit, there are no damages, and the plaintiffs/claimants are greedy by trying to take advantage of a successful business. Joseph Lippard worked with G&C Auto Body for seven years, and he often bragged to people that being an independent contractor allowed him to make more money, while controlling his hours and income without the restrictions of being an employee, according See G&C Attorney Responds, Page 22

16 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

and painting, as independent contractors under the law,” said Jeffrey Beeson of Beeson Terhorst in Santa Rosa, CA, who is the lead attorney for the plaintiffs. “Our position is that they should be classified as employees.” When they were hired, Beeson said his plaintiffs were told they could set up their own businesses; however, their lawyer said there was nothing closely resembling an independent business. “All of the economic realties of the plaintiff’s working relationship with G & C and their continued, ongoing dependence on G & C Auto Body as their sole source of income, demonstrated an employment relationship,” said Beeson. According to the complaint, the plaintiffs only provided automotive repairs for G&C customers, had virtually no contact with them and had no customers of their own. “This is completely contrary to G&C Auto Body’s fiction that plaintiffs ‘ran their own business.’ They had no customers other than those of G&C Auto Body and when they brought in a customer, G&C Auto Body made the assignment of the work, set the labor

rate and amount to be charged and collected the payment from that customer. In short all customers were G&C Auto Body customers,” the lawsuit states.” In addition, Beeson said the shop purchased and supplied all of the parts, materials and supplies used in their work, determined which part would be installed on a customer’s car and controlled the details on how the work was performed and when it was completed. “Even though G&C required the plaintiffs pay weekly ‘rent’ for their work stall, G & C prohibited the plaintiffs from performing work for customers other than G & C customers at their workspace at the G & C shop,” said Beeson. The plaintiffs allege that “G&C Auto Body created an elaborate fiction in order to convince the employees they were independent contractors.” Although Lippard and Medeiros acknowledge signing documents saying they were independent contractors, they say they were in fact standardized forms used by the defendant when hiring auto body repair technicians. See G&C Responds, Page 22

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 17

Continued from Cover

Kayla Mueller

Syrian border in 2012 to work with Syrian refugees. She was abducted in 2013 after leaving a hospital and held captive by the terrorist group Islamic State of Iraq and Syria (ISIS) aka Is-

When Kayla returned from the refugee camps in Turkey in May 2013, she told the Prescott Kiwanis Club, “As long as I live I will not let this kind of suffering be normal, something we just accept.” Carl said his daughter was a prolific writer and kept daily journals from the time she was a senior in high

Kayla regularly visited Carl at his body shop. She washed cars, ran errands and helped out wherever she was needed.

lamic State in the Levant (ISIL). The Islamic State claimed she was killed by Jordanian bombers. Her family confirmed her death on Feb. 10 of this year, without commenting on the cause. Kayla grew up in Prescott. An active volunteer, she often helped at women’s shelters, local needs clinics and worked with youth. From the time she attended middle school, she volunteered for local Kiwanis Club events and homeless shelters. When she was a senior in high school, she received the 2007 Gold Presidential Volunteer Service Award for her work with groups such as Americorps and Big Brothers Big Sisters. In college, she set up the student chapter of Amnesty International at Northern Arizona University and organized a rally to raise awareness about genocide in Sudan. “She always had the heart to help and I always told her she had a gift from God and that she should use it,” said her dad Carl. “She was literally tormented by the suffering of mankind.” Considered by family and friends alike as a devoted humanitarian and activist, Kayla had previously worked with refugees overseas including Tibetans in India, Africans in Israel, and Palestinians in the Occupied Territories.

school. “One of her quotes was that she’s known for quite some time now what her life’s work is—using her hands to relieve suffering,” said Carl. That was what inspired her parents to name the foundation Kayla’s Hands. “What Marsha and I intend to do now is to move forward and do the things that Kayla couldn’t do on her own… without support and money,” said Carl. “We’re going to try to establish the foundation and fill the endowment so we can do the things that she gave her life to try to get done.” Their plans include traveling throughout the U.S. and abroad to spread the word about Kayla’s Hands. Last month, Carl attended a Kiwanis meeting in Farmington, NM, to thank the organization for its tremendous support. Carl is a past president of the Prescott Kiwanis Club. He and Marsha also traveled to Madrid, Spain in midApril to speak at a religious conference. “Everyone seems to be very interested in learning about Kayla so we’re going to try to introduce them to Kayla and thank them for the award,” said Carl. “… and promote Kayla’s Hands as much as we can so we can do the work that she was so desperate to have done.” Up until recently Carl and Mar-

18 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

sha ran Preferred Auto Body in Prescott. They sold it to Cameron Snow and his wife Erika in January 2014. Carl said the new owners have been very supportive of the Mueller family and are doing a great job with the business they ran for so many years. Carl said his first introduction to the auto body industry came in 1967 during his junior year of high school. He participated in a work program where he attended school for half the day and worked at a Ford dealership in Champaign, IL, for the remainder. He started out sweeping floors and keeping the paint room clean and eventually helped in the shop sanding and painting. He credits much of his learning from his peers. In 1981, he said business was slow due to the poor economy. Carl and the painter in the shop, Tom Gordon, decided to start out on their own and opened Preferred Auto Body. After renting a facility for three years, they purchased property in Prescott and relocated their shop. Tom sold his half of the business to Carl in 1998, which he ran with his wife and six employees until 2014. Now retired,

Carl and his wife can devote more time to Kayla’s Hands. “Our foundation is basically going to help suffering people, not just in the United States, but all over the world.” On the website created by her friends (www.forkayla.org) Kayla was quoted as saying, “It’s important to stop and realize what we have, why we have it and how privileged we are. And from that place, start caring and get a lot done.” There is an upcoming fundraising event being held in Tucson, AZ, on May 2: Celebration of Life and Fundraiser benefitting Kayla’s Hands. For more information call 520225-9786. There is also a Newsboys concert being held in Flagstaff, AZ, on May 24 to raise money for the foundation. For more information about Kayla’s Hands, email: carlmarsha muellerfamily@gmail.com or visit: www.kaylashands.org

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CREF Holds Ribbon-Cutting Event in GA at Makeover Grant Recipient Maxwell High School

On Wednesday, April 8, the Collision Repair Education Foundation (CREF) held a ribbon-cutting ceremony at Maxwell High School in Lawrenceville, GA. In 2013, Maxwell High School was awarded a $50,000 Makeover Grant, funded by the Atlanta I-CAR Committee. Brandon Eckenrode, Director of Development for CREF, notes, “Because of the support Maxwell’s program has received and the fact that it looks brand new; we were informed that their enrollment will double this coming fall. Also, the donations that their collision repair program has received have enabled them to develop a higher caliber of students, evidenced by the fact that two of their students won the SkillsUSA state competition and are now headed to Louisville in June to compete in the National SkillsUSA conference.” Attendees at the ribbon-cutting ceremony included local collision repair industry professionals, as well as those in attendance at CIC’s meetings. These participants received a tour of the program in addition to meeting with students, collision instructors and school administrators. Maxwell High School Principal, Dr. Jeff Hall, states, “The Makeover grant and support has afforded our collision instructors the ability to teach our students,

at the highest level possible, through the use of advanced equipment and supplies. More importantly, the grant ensures our students receive industry level training every day. We are fortunate to have the support of the Collision Repair Educa-

Maxwell High School Principal, Dr. Jeff Hall, speaks during the ribbon cutting ceremony on April 8

tion Foundation and Atlanta I-CAR Committee, as our graduates leave us well prepared for the workforce and post-secondary education.” According to Gerry Poirier, Chairman of the Atlanta I-CAR Committee, “The ability to obtain such great results with the school has been made possible by all the members of the Atlanta Committee. Their dedication and passion to make this program excel to such high levels is second to none. Our partnership with Maxwell’s teachers and administra-

tors has been nothing short of phenomenal and has been the key to success. We will continue to support Maxwell and are looking for additional local programs where we can duplicate these outstanding results to promote this great industry and bring in new technicians.” Eckenrode is grateful to the Atlanta I-CAR Committee for supporting the school, and he congratulates them “for coming together to assist Maxwell High School as we are seeing this support result in increased enrollment and highly trained students demonstrated by their SkillsUSA state winning students. Through the committee’s local fundraising efforts, over $100,000 has been invested into the schools collision program which has provided everything from newly painted shop floors, student scholarships, tool/equipment upgrades, and much more. To have the program look brand new and now producing state winning SkillsUSA students should prove to the industry that investing in their local collision programs through the Education Foundation pays off at multiple levels.” CREF 5125 Trillium Blvd Hoffman Estates, IL 60192 888-722-3787 www.collisioneducationfoundation.org

New Gerber Shop Location in Jacksonville

The Boyd Group announced the opening of a 7,300-square-foot Gerber Collision & Glass center in Jacksonville, FL. “This is our sixth center in Jacksonville, and its presence in the south of the city positions us with locations in about every neighborhood,” said Tim O’Day, President and COO of the Boyd Group’s U.S. operations. “This is important in a city as large as Jacksonville to ensure we are in close proximity to our customers and insurance partners.” Since entering the Florida market three years ago, the company has become the largest operator of auto body repair centers in the state, with more than 50 locations, O’Day said. The Boyd Group is a major operator of non-franchised collision repair centers and retail auto glass centers in North America. Trade names include Boyd Autobody & Glass, Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority and Autoglassonly.com.

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Continued from Cover

Advisors Non-Exempt

ice Advisors could qualify; at other times, it has said that they could not. At one point, USDOL issued an interpretative provision at 29 C.F.R. § 779.372(c)(4) in which it took the position that Service Advisors were not within the exemption. But after several courts nevertheless applied the exemption to them, for many years USDOL said that it would no longer dispute the issue. In April 2011, USDOL deleted Section 779.372(c)(4). In accompanying commentary, it said that the change was made to reflect its view that the exemption is limited “to salesmen who sell vehicles and partsmen and mechanics who service vehicles,” and that Service Advisors did not fall within this description.

The Ninth Circuit’s Ruling In Navarro, Service Advisors challenged the overtime exemption’s application in light of USDOL’s revision and statements. The lower federal court dismissed their claims, finding that they did fall within the Section

13(b)(10)(A) exemption. On appeal, the Ninth Circuit first found Section 13(b)(10)(A) to be ambiguous on the issue. The court said, “It is not clear from the text of the statute whether Congress intended broadly to exempt any salesman who is involved in the servicing of cars or, more narrowly, only those salesmen who are selling the cars themselves.” The Ninth Circuit then evaluated whether it felt that USDOL’s revised administrative interpretations represented a reasonable reading of the exemption. Despite USDOL’s shifting positions, the Ninth Circuit found: Here, the Department of Labor has interpreted the statutory exemption to exclude service advisors by choosing the narrower definition of the term “salesman.” * * * [W]e conclude that the agency has made a permissible choice. The interpretation accords with the presumption that the § 213 exemptions should be construed narrowly. On this basis, the court concluded that the Service Advisors are not exempt under Section 13(b)(10)(A). The Court specifically acknowledged that its holding conflicted with decisions of the Fourth and Fifth Circuits, of several district courts, and of

the Supreme Court of Montana.

Practical Impact of the Court’s Ruling Employers in states outside of the Ninth Circuit should note that its ruling applies only within its jurisdiction. And while in the Ninth Circuit the case undercuts the Section 13(b)(10)(A) overtime exemption where Service Advisors are concerned, even there it does not mean that Service Advisors can never be exempt from FLSA overtime. The FLSA’s Section 7(i) provides another overtime exception for certain employees paid under a bona fide commission pay plan. It applies to an employee:

● Of a “retail or service establishment” (meaning a location 75% of the annual dollar volume of sales of which (i) is not for resale and (ii) is recognized as retail sales in the particular industry); and ● More than half of whose compensation for a “representative period” (of not less than one month) represents commissions on goods or services; and ● Whose regular hourly rate of pay for each overtime workweek is more than

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Of course, an employer must determine whether the applicable overtime laws of a state or another jurisdiction include any exception like Section 7(i), or whether any similar provision is different from Section 7(i) in important ways. Thus, although automobile dealerships in the Ninth Circuit cannot rely upon Section 13(b)(10)(A) for Service Advisors (unless Navarro is later reversed or overruled), it is possible that those employees can be exempt from FLSA overtime under Section 7(i). Those dealers should evaluate whether Section 7(i) provides a viable alternative. For more information, www.labor lawyers.com. Autobody News thanks Fisher & Phillips LLP for permission to reprint their article.

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Continued from Page 16

G&C Responds

“…these statements were belied by actual practice,” the complaint states. “In fact, these statements were but thin veneers designed to gain advantage over the worker and gain a significant competitive advantage over other auto body repair shops.” Beeson said that as far as they have determined, G & C is the only repair facility in the area that classifies their technicians and painters as independent contractors. Founded by Gene Crozat in 1972, the family-owned and operated business has nine auto repair facilities in Northern California; Fairfield, Novato, Petaluma, Rohnert Park, San Rafael, Santa Rosa, Ukiah, Vacaville and Windsor. “No one else does it like G & C and its practices are contrary to industry practice,” he said. The plaintiffs claim that the “Defendant intentionally and unlawfully misclassified its automotive repair technicians performing auto body repairs as independent contractors to evade its obligations under California’s employment laws.” According to California Labor Code, any person rendering services for another is an employee. Labor Code 3351 states that an employee is “every person in the service of an employer under any appointment or contract of hire or apprenticeship, expressed or implied, oral or written, whether lawfully or unlawfully employed.” Beeson said that by classifying them as independent contractors, the company did not have to take out paycheck deductions, pay business expenses, social security, payroll taxes, Continued from Page 16

G&C Attorney Responds

to Beck. In September 2011, Joseph Lippard provided comments for an article in Auto Body Repair News (ABRN) titled “Outspoken Entrepreneur Succeeds by Stressing Excellence and Value” by James E. Guyette, written about G & C Auto Body and its owner Gene Crozat. In that article, Joseph Lippard confirms he is an independent contractor and that he is the owner of Lippard Enterprises. Lippard has had as many as six people working for him within the facility, where he rents two stalls. Some crews

Medicare or cover them under workers compensation for any job injuries. They also did not have to pay for overtime, breaks or anything else California law requires of an employer. The plaintiffs said they were required to pay for all of their own mandatory I-CAR training, their own tools and any helpers G & C required they hire, supervise and train. “G & C frequently then hired away these socalled ‘helpers’ after they were trained by the plaintiffs and made them G & C employees or contractors, thereby saving all the hiring and training costs,” said Beeson. He said that by not having to pay overtime, there were enormous costsavings for G & C, in the millions of dollars. Scott Steiner, the largest producer at the Santa Rosa shop, worked between 3,393-3,575 hours per year – all for G & C. He and the other plaintiffs averaged 65-70 hours per week, Monday-Saturday, including holidays, 52 weeks a year. “Many worked after suffering onthe-job injuries for which there was no workers’ compensation coverage,” said Beeson. For example, Lippard injured his leg at work and continued working while in a wheelchair. “One G & C manager then told him if he got injured again he would be fired,” said Beeson. “If they had been paid overtime pay as the law required, they would have earned substantially more income.” Beeson said, “the pay appeared great on the surface because lump sums were paid with no tax withheld. Yet once plaintiffs stepped back and looked at their excessive work hours and did some calculations they realized if they had been treated as employees, their work day and night on big jobs. According to Lippard, he was very happy as an independent contractor, and he claimed “I never want to work hourly again,” acknowledging that he grosses $4,000 to $6,000 a week in the ABRN article. On April 14, 2012 Joseph Lippard posted on Facebook: “…Another Saturday at the shop!!! I love having free reign to work as much as I can!!!” Actual damages are paid for actual losses, but these plaintiffs lost nothing. In fact, they made many times more than what they could have possibly made as employees of G&C, and they enjoyed the lifestyle that came with owning and operating their own businesses.”

22 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

compensation and employment conditions would have been significantly enhanced.” Beeson also said they were never paid for all of their hours worked and “G & C regularly dumped work assignments on the techs for which they got no pay at all.” He said many were left with large tax liabilities they did not anticipate or understand. He said Lippard never had take home pay of $350,000 (see accompanying sidebar p. 10) “This gives them a huge competitive advantage over other auto body shops and we allege in our case we think it’s an unfair business practice in California to engage in these kinds of tactics,” said Beeson, who has covered labor law for 33 years. “We’re seeking to have our clients be given all of the wages and overtime pay, premiums for meal breaks, rest breaks that they weren’t given for four years, which is the statute of limitations,” he said. “We’re seeking to have them classified as employees and then G&C to pay them the money they would have been paid if they had been classified as employees.” According to the complaint, G&C employed approximately 50

workers in 2012 that it classified as independent contractors. There were between 15-20 automotive technicians at its Santa Rosa location, some as independent contractors and others as employees. Beeson said that over the years the company has arbitrarily changed its classification of automotive technicians from employees to independent contractors and independent contractors to employee status with no changes in their job duties, work location or working conditions. “For example, Medeiros was at one time categorized as an employee and then was re-categorized as an independent contractor with no change in his essential work duties,” said the complaint. “Bigger shops like G&C are taking over the mom and pop smaller shops. This is all part of it. They save millions of dollars by not having to pay all of the compliance requirements for employment law that all of their competitors do,” said Beeson. “They should be treated as employees and given all of the protections of employees under California law.” The case is set for trial September 15, 2015. Autobody News will continue to report on its developments. Nalley BMW

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Tech Program Prepares Former Soldiers to Enter Collision Industry also earn steel structure, aluminum structure and ASE B2 through B5 cerNo one has been able to come up with tifications, thereby covering almost the definitive numbers, but everyone every job available in the industry. A in the collision industry knows that partnership with Enterprise Rent-Aqualified, well-trained body and refin- Car provides the school with late ish technicians are hard to find. And model cars to work on in FTCC’s that’s why training the techs of to- 25,000 sq. ft. body shop that provide a real-world work environment and contains all of the latest equipment available, including an aluminum clean room; waterborne paint system; nitrogen plastic welders and two of the latest frame alignment systems. One of the most important things about the program is its relationship with Fort Bragg and the National Guard. By Fayetteville Technical Community College (FTCC) in North helping members of the miliCarolina provides over 190 occupational, technical, general education, college transfer and continuing tary as they transition to life education programs, including its brand new collision as civilians, Fort Bragg and repair program FTCC are beginning the morrow today is a huge concern for process of stocking the industry with the collision industry, especially since top recruits that are job-ready and premany will be reaching retirement age pared to meet the challenges of this within the next five years. highly coveted career. With a curricuIt’s gotten so bad that many body lum developed by I-CAR, the organishop owners complain that other zation’s Sr. Director of Segment shops are stealing their best people, by Development Bill Stage said he has offering them better pay and added seen the program at FTCC grow perks like longer vacations and week- quickly during its short time in exisends off. tence. MSOs are more prone to acquir“My biggest role is to oversee all ing existing shops over building new of our operations with the career and ones, because for one reason, they can technical schools that teach collision re-hire their personnel and bypass the repair. And there are still about 1,100 huge obstacle of finding and hiring high schools and college in the U.S. qualified techs. that have a program and most of them So, that’s why technical schools are using bits and pieces of our curall over the country are establishing auriculum if not a full bore package. tomotive repair programs at a rapid rate, in order to fill the void. One of these is Fayetteville Technical Community College (FTCC) in North Carolina, a school that provides over 190 occupational, technical, general education, college transfer and continuing education programs for 42,000 students. Opening last summer, the curriculum at FTCC cov- Body shops all over the country are anxious to hire FTCC’s ers the collision industry from new fledgling techs after graduation, according to school both the insurance perspective representatives and the repair/re-manufacturing per“We’re on our third generation of spective. curriculum and it’s called the ProfesGraduates can earn am Associate sional Development Program - EduDegree in applied sciences, along with cation Division,” Stage said. “So it’s certifications for non-structural redesigned for the schools. It’s gone pairs, refinish, auto physical damage through several evolutions and our latappraiser and estimating. They can est edition, which has been out for two by Ed Attanasio

24 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

years is called the Education Edition. We launched this package in 2012 for the schools. And we’ve spent a year talking to over 400 individuals doing research after we launched the Professional Development Program to ask employers, schools, administration, some students even to ask ‘what should we be offering the schools?’ And they basically said ‘Hey you’ve defined it for the industry, we just need the skills of an entry level technician’ and they defined that as, what we call the non-structural, Pro-level One. They told us that they want to hire a Non-Structural Pro-level One or a Refinish Pro-level One, so that’s what we’ve provided. I-CAR also learned a lot by polling body shops nationwide,” Stage said. “They told us that they want to hire individuals that have a lot of laboratory, hands-on experience, so the curriculum is designed to consist of 30% in the classroom and 70% on the shop floor. FTCC took the ball and ran with it and they’re currently using our model very well and actually teaching a lot more than what we call the Base Package consisting of Pro-Level One Non

Structural and the Pro-Level One Refinish is the Base Package.” How many schools are currently using I-CAR’s curriculum? “We have 323 schools today using it in various stages,” Stage explained. “Some started last week and some started two years ago, but they’re utilizing it and probably 9095% of them are just teaching those two entry level skills. FTCC actually just goes way beyond that, because they’re teaching some Pro-Level 2 and 3, as well as teaching things like structural steel, aluminum welding and estimating using our curriculum, for example.” Bill Buckner is the associate Vice President for Military and Veteran Programs at Fort Bragg, so he has played an integral part of the new automotive repair department at FTCC from the beginning. He is proud of the school and its goal of turning former members of the military into skilled technicians. “Body shop owners have told us that they want employees they don’t have to train,” Buckner said. “From day one, they want an individual who

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 25

real and that’s why shops are interested in what we’re doing here at FTCC, in conjunction with Fort Bragg. “We have 42,000 students that we service here at FTCC In terms and we’re definitely excited about our relationship with I-CAR,” Buckner said. “The department is only a year old, so it is growing and developing as we get the word out about the program, but we’ve obviously recognized the fact that this is a viable career option, so we want to facilitate that learning and to help the students to make the transition from the military to the workFort Bragg is working with the school to turn former ing world. soldiers into highly skilled techs “The Army in general is unskills that have been honed in a lab dergoing a forced reduction, because environment, so that they can literally of budget cuts and other factors,” hit the ground running and that’s what Buckner concluded. “So, there are we’re working toward at FTCC.” going to be thousands of soldiers that Shops all over the country are anxwill get out of the Army a little bit earious to hire FTCC’s new, fresh techs lier than they had planned and that’s after graduation, according to Buckner. where FTCC’s Collision Repair and “There are body shop chains out Refinishing Technology Program is a there that have told the school that good way to segue them into the civilthey’ll hire every graduate on the spot. ian sector, if they’ve got an interest The shortage of technicians is very and passion for the collision repair.” can be productive for the shop and for themselves. They want people who will know how to remove and replace a bumper cover; do plastic repairs, fix a dent in a fender; prep a car for paint and then paint the car without heavy supervision. They want people with

26 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Continued from Cover

Bill May Not Advance

considered by the Regulatory Affairs Committee, but as of Autobody News’s press time was not scheduled to be heard again. Although the House bill appears to be dead, an amendment could still be offered on this subject. The bill did not make it out of all of the committees to which it was referred so the bill was not currently available for action on the floor. The Senate bill was scheduled to be heard by the Judiciary Committee on April 15, but was not considered. It seems that neither bill will advance this session. Both bills reference property insurance, rather than casualty insurance and neither mentions the auto repair industry. The bill could be refiled anytime. “This bill could impact collision

Free

repair shops, auto glass shops, plumbers and more,” Don Munro of Auto Glass Appraisal Services in Tampa, FL, told glassbytes.com. “If there is a disagreement over the bill, the insurance company or auto glass shop can invoke appraisal. The assignment of benefits also allows shops to go to litigation or arbitration with insurers.” A news release was issued on April 17 by the Florida Property & Casualty Association (FPCA) entitled, “Clock Runs Out on Florida Legislature to Help Protect Homeowners from Out-of-Control Contractors and Plaintiff Lawyers.” “The FPCA’s member companies are calling on the legislature to not let this problem fester, but meet the challenge head on and put an end to these abusive practices that are harming consumers and raising insurance rates,” William Stander, Executive Director of the association, was quoted as saying in the statement.

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What are crash parts? p Take a closer look. Your insurance coverage. g Choosing th he right bod dy sh hop. A All parts are not created equal. equal Co ollissio on 101. What’s a Great Info for Shops DRP and whyy sho sho ould I caare? re? Where Where d do o aairbag irbags come come ffro rom? m? C Counterfeit ounterfeit ai airbags - what you need to know. Take a closer look. What are crash parts? Your rights as a consumer. Your insuraance coverage. Ch hoosing the right body shop. Helpiin ng you through the colllision repair pro oce ess. Collision 101. What’s a DRP and d why should I care? Where do airbags co ome from? Counterfeit airbags - what you need to know. Take a closerr lookk. What are crash parts? Your righttss as a consumer. Your insurance cove erag ge. Choosing the right body shop. Whatt are crash parts? Your riights as a co onsumer. Your insurance coverage e. Choosing www.collision.honda.com th he righ ht bod dy sh hop. Alll paarts t are not created equal. Take a closse ser look. Collision 101. What’s a DRP and why w should I care? Where do airbag gs come from? Counterffeit airbags - wh hat you need to know. Take a closse er look. What are crash parts? Your rights t as a consumer. Your insurance coverage. Choosing the right body shop. o Helping you through the colliission repair process. Collision 101. What’ss a DRP and why should I care? Wh he ere do airbags come from? Counter feit airbags - what you need to know. Takke a closer look. W What hat are are crash crash parts parts? You ur rights as a consumer. Your insurance coverage. Choosing the right bo ody shop. What are www.airbagaware.com crash parts? Yourr rights as a consumer. Your insurance coverage. v Choosing the right body sh ho op. All parts are not created equal. Take a closer look. Collision 101. What’’ss a DRP and why should I care? Where do d airbags come from? Counterfeiitt airbags - what you need to know. Take a closer look. What are crash parts? Your rights as a consumer. Your insurance ccoverage. Choosing the right bod dy shop. Helping you through the collisio on repair process. Collision 101. Wh haat’ss a DRP and why shoulld I care? Where do airbags come from? Counterfe eiit aiirbags - what you ne eed to know. Take a closer look. What are crash p paarts?? Your righ hts as a consumer. Your in nsu urance coverage. www.crashrepairinfo.com Choosing C oos g tthe e rig gh g ht b body ody sshop. hop. Y Your our rights rights as as a cons consu consumer.. What at are crash parts? You ur in nsuran nce coverage. g Choo sing the right body sh hop. All parts Great Info for Consumers are not created equal. Helping you through the collision repair process. www.autobodynews.com | MAY 2015 AUTOBODY NEWS 27

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Un ion City

770-985-1444

866-362-8034 770-306-4646

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

Dept. Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars.com

Ed Voyles Honda

Southern Motors Honda

M ar i e tta

Savann ah

800-334-3719 770-933-5870 Direct

888-785-8387 912-925-1444

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

Dept. Hours: M-F 8-6; Sat 8-5 angela@southern-motors.com

Gerald Jones Honda A ugus ta

800-733-2210 706-228-7040 Dept. Hours: M-F 7:30-6; Sat 8-5 tdunn@geraldjoneshonda.com

MI SS IS SI P P I

Patty Peck Honda Rid g elan d

800-748-8676 601-957-3400 Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com

Gwinnett Place Honda Dul uth

N O. CAR O LI NA

800-277-8836 678-957-5151

Apple Tree Honda

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

800-476-9411 828-684-4400

Ash ev ille

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

AC U R A AL AB A M A

FL O RIDA

GEOR GIA

GE OR G I A

Jerry Damson Acura

Duval Acura

Jackson Acura

Hu n t svil le

Ja ck s o nvi ll e

Ro swe l l

Savann ah

800-264-1739 256-533-1345

800-352-2872 904-725-1149

877-622-2871 678-259-9500

800-347-0596 912-232-3222

Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com

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

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

Dept. Hours: M-F 7:30-6; Sat 8-2 Tim.johnson@acuraofsavannah.com

Rick Case Acura

Nalley Acura

FL O RI D A

Acura of Orange Park J ack so n vi ll e

888-941-7278 904-777-1008 Dept. Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark.com

F o rt La u de rda l e

M ar i e tta

800-876-1150 954-377-7688

800-899-7278 770-422-3138

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

Dept. Hours: M-F 7-7; Sat 7-5 byoung@nalleycars.com

28 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Southern Motors Acura

N O . CA RO L IN A

Flow Acura Win st on -Salem

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

NO . C AR O LI N A

NO . CAR OL INA

TEN NE SS EE

V IR GIN I A

Burlington Honda

Vann York Automall

Bill Gatton Honda

B u r lin gt on

High Point

Br is to l

800-822-5108 336-584-3431

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

800-868-4118 423-652-9545

Dept. Hours: M-F 7:30-6:00; Sat 8-1 parts@burlingtonhonda.com

Crown Honda Southpoint Du r ha m

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

Hendrick Honda Ch a r lo t t e

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

Leith Honda Ra le ig h

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

McKenney-Salinas Honda G as t on ia

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

Metro Honda I nd ian Trail

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

N O . CAR OL IN A

SO . CAR OL INA

Breakaway Honda G re e n vi l l e

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

Midlands Honda C o l u m bi a

877-273-4442 803-691-8585

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

Wolfchase Honda

Priority Honda

Ba r tle t t

Ches ap eake

800-982-7290 901-255-3780

757-213-0539

Dept. Hours: M-F 7-7 ekerr@wolfchasehonda.com

Hamp t on

Colonial Honda

757-838-1672

C he ste r

Dept. Hours: M-F 7:30-6; Sat 8-5 jarmentrout@priorityauto.com

Piedmont Honda

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

A n de r so n

TE NNES SEE

Airport Honda Alcoa

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

AutoNation Honda West Knoxville

Dept. Hours: M-F 7:30-6; Sat 8-5 jwilliams@priorityauto.com

Priority Honda

VIRGINIA

800-564-9836 804-414-1960

Dept. Hours: M-F 7:30-6; Sat 8-5 swhite@piedmontcars.com

Woodb rid g e

703-690-7777

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

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

800-849-5057 864-375-2082

Hendrick Honda Woodbridge

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

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

Hall Honda Vi rgi ni a Bea ch

800-482-9606 757-431-4329

Valley Honda Stau n ton

800-277-0598 540-213-9016 Dept. Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda.com

West Broad Honda Rich m on d

800-446-0160 804-672-8811 Dept. Hours: M-Thu 7:30-6:30; Fri 7:30-6; Sat 8-3; Sun 11-3 wbhonda@aol.com

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

K n ox v i l l e

800-824-1301 865-218-5461 Dept. Hours: M-F 7:30-6 rossd1@autonation.com

NO . CARO LI NA

VIR GIN IA

V IR GIN I A

Hendrick Acura

Performance Acura

Crown Acura of Richmond

Ch a r lo t t e

C h ap e l H i l l

Ri chmo nd

Falls Ch u rch

800-768-6824 704-566-2288

888-788-7301 919-942-3191

800-523-4411 804-527-6865

800-550-5035 703-824-5785

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

Dept. Hours: M-Th 7-7; Fri 7-6; Sat 8-5 performanceparts@hendrickauto.com

Dept. Hours: M-F 7:30-6; Sat 8-5 thoover@crownauto.com

Dept. Hours: M-F 7:30-6:00; Sat 8-6; Sun 10-5 jimgraf@radleyauto.com

Leith Acura

Radley Acura

Karen Radley Acura

Ca r y

Wo o db ri dg e

800-868-0082 919-657-0460

800-355-2818 703-550-0205

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

Dept. Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup.com

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 29

—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.

Industry Insight

Legal Battle That Began with Non-OEM Parts Back in 1997 Still Being Waged Today with John Yoswick

Back in 1999, a court decision in a class action lawsuit resulted in a $1.2 billion judgment against State Farm – at the time one of the largest judgLloyd Karmeier ments ever levied against an insurer. The ruling changed the way many insurance companies dealt with non-OEM parts for years, and despite the fact that the judgment was later nullified, the “Avery vs State Farm” lawsuit even today is seen as the basis for State Farm’s limited use of such parts. But now, 18 years after that lawsuit began, the lawyers who represented the vehicle-owners in the Avery lawsuit are still fighting against the overturning of that judgment by the Illinois Supreme Court. The amount they are seeking from State Farm this time is considerably larger: triple the

damages of the Avery case plus more than a decade of interest, all adding up to more than $8 billion. Though a portion of that money would still go to the vehicle-owners who sued back in the late 1990s, the current lawsuit has nothing to do with parts and everything to do with political influence. The suit alleges that State Farm played a pivotal role in the successful 2004 election campaign of a judge to the Illinois Supreme Court – a judge that the next year became the fourth vote on that court to overturn the Avery decision and nullify the judgment against State Farm.

Some quick background The original Avery lawsuit on behalf of about 4.5 million drivers who had non-OEM parts installed on their vehicles as part of their State Farm claim alleged that the parts were inferior to OEM, and thus the insurer breached its contract to return those cars to

“pre-loss condition.” A jury in 1999 agreed, finding also that State Farm had defrauded consumers by concealing known problems with the parts. In 2001 in response to an appeal by State Farm, an appellate court affirmed the decision but lowered the damage award to $1.05 billion. State Farm then filed an appeal with the Illinois Supreme Court. In 2004, Judge Lloyd Karmeier was elected to his first 10-year term on the Illinois Supreme Court. At that time, lawyers for the plaintiffs in the Avery case sought to have Karmeier recuse himself from participating in the Avery decision because they claimed his election campaign had received significant campaign contributions from State Farm. But Karmeier did not recuse himself. The next year, four of the six Justices on the Court—including Karmeier— voted to overturn the Avery ruling. The court ruled that the case should

not have been approved as a national class action because State Farm uses different policy language in different states and even within the same state. The Court found no breach of contract under any of the three different policy wordings related to the use of parts. It ruled that the plaintiffs in the case failed to demonstrate damages. And the court pointed out that plaintiffs did not contend that non-OEM parts are defective, only that they are all not as good as OEM parts. The decision emboldened insurers, some of which had curtailed calling for the use of non-OEM parts for some years after the 1999 Avery judgment, to return to pushing shops to use the parts.

New findings, new lawsuit But in 2011, lawyers for the plaintiffs in the Avery case filed a lawsuit claiming they had new evidence of State Farm’s involvement in the recruitment of Karmeier as a candidate and in fi-

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nancing the campaign that lead to his election to the Illinois Supreme Court. That campaign shattered state and national spending records for a judicial seat, with the two candidates spending more than $9 million combined. The current lawsuit argues that State Farm “delivered ‘tremendous’ financial support (at least $2.5 million and as much as $4 million) to Justice Karmeier’s campaign.” The plaintiffs’ attorneys argue, for example that State Farm attorney and lobbyist William Shepherd was on the executive committee of the Illinois Civil Justice League (ICJL), which recruited and endorsed Karmeier as a candidate for the seat on the court, and was involved with weekly conference calls with Karmeier’s campaign manager (the head of the ICJL). The money trail described in the court filings to date is a bit convoluted, indicating that the contributions largely came through intermediary organizations being influenced by State Farm. The ICJL, for example, through its political action committee made $1.1 million in direct and in-kind contributions to Karmeier’s campaign. Also at the time, the lawsuit argues, State Farm CEO Ed Rust was

part of the U.S. Chamber’s leadership team that selected which judicial campaigns to target, and Illinois was identified as a “Tier 1” state to target. State Farm donated $1 million to the U.S. Chamber’s judicial election efforts, the U.S. Chamber donated over $2 million to the Illinois Republican Party, and that organization in turn bought $1.94 million in advertising for the Karmeier campaign. Attorneys say the new evidence should lead the court to reinstate the judgment against State Farm, or alternatively redecide the case without Karmeier’s involvement. State Farm has argued that overturning the Avery ruling would be “disruptive in the extreme” to the Illinois legal system because the ruling has been cited in more than 200 subsequent court opinions. The insurer argues the contributions to Karmeier’s campaign from State Farm employees and others connected with the insurer were “quite modest,” estimated to be about $350,000. And it says the notion of “State Farm-influenced contributions” relies on an unsubstantiated argument that the insurer controls such organizations as the U.S. Chamber and the ICJL.

Deposition of a Supreme Court Justice The most recent argument in the ongoing legal battle has been over whether Karmeier can be questioned under oath. A deposition of a sitting justice on a state supreme court is extraordinarily rate. A magistrate judge earlier this year ruled the attorneys suing State Farm could submit 20 questions to Karmeier in writing, but that Karmeier could not be subjected to a formal deposition. But in a dramatic turn-about in March, U.S. District Court Judge David Herndon overturned that ruling, saying that having Karmeier give testimony is the only way to give both sides a fair opportunity to “explore the facts, and for the public, in the face of such allegation, to learn the truth.” Judge Herndon said Karmeier can be questioned about all aspects of his election campaign but not about his deliberations in any case while on the Supreme Court. In addition, he ruled that the plaintiffs’ attorneys also may depose State Farm vice president Robert Shultz about his involvement in Karmeier’s election. Shultz served on the Illinois State Bar Association committee that evaluated Karmeier and his opponent prior to the 2004 election.

The attorneys argue that Shultz should have recused himself from that evaluation committee given the Supreme Court’s pending review of the “Avery” lawsuit. But Schultz did not recuse himself, and the committee rated Karmeier as “highly qualified,” while rating his opponent, Gordon Maag, as only “qualified.” Why might State Farm have preferred Karmeier’s election over Maag’s? One possible reason: Prior to unsuccessfully running against Karmeier in 2004, Maag was one of the five appellate judges who in 2001 had affirmed the judgment against State Farm in the Avery non-OEM parts lawsuit. Judge Herndon said the deposition of Schultz could explore “whether he made any attempt to persuade his fellow committee members in any way, and if so what his motives in doing so were, and whether he was encouraged to do so by anyone acting on behalf of State Farm.” No doubt many such interim legal skirmishes will be waged before next January when an actual trial in the case is tentatively scheduled to begin. The legal battle that began over non-OEM parts back in 1997 has still not seen its final chapter.

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866.910.0899 www.carcoonworkstation.com www.autobodynews.com | MAY 2015 AUTOBODY NEWS 31

Texas Collision Repair Shops Cite Legal Issues with GEICO Regarding Certain Fees by Stacey Phillips, Assistant Editor

Numerous collision repair shops in the Houston, TX, area are having legal issues with GEICO insurance company regarding the payment of certain rates for tow bills, administrative fees, and storage on total loss vehicles. Autobody News recently spoke to some of these shops to find out more. “It is the opinion of the Houston Auto Body Association (HABA) that this is a calculated effort by GEICO to strong arm shops to accept unfair compensation for work completed by shops on total loss vehicles,” said James Brown of the Houston Auto Body Association (HABA). One of these shops is Kopriva Body Works in Houston. This thirdgeneration family-run business is currently being sued by GEICO for damages under theories of fraud, violations of the DTPA, conversion, replevin and trespass to chattels. John Kopriva, the owner of the 85-year-old collision repair shop, said, “We have never been sued or have had anything to resemble what is going on with GEICO.” Travis Crowder of Crowder Law Firm, who is representing Kopriva Body Works, said the suit is a result of fees charged by Kopriva in connection with vehicles determined to be “totaled” by GEICO. “Kopriva has generally denied the claims of GEICO and has asserted its own claims against the insurance company for sums due under a customer’s repair order and damages for bad faith prosecution of its groundless claims,” said Crowder. The court date is currently pending. Kopriva first noticed a situation with GEICO in April 2014 when a customer’s vehicle was brought to the shop after an accident. GEICO was the insurance carrier and came out to write an estimate. “We have a good working relationship with GEICO,” he said. “People who come out to estimate are fair. The way we look at it: the car writes the estimate.” When the estimator indicated the car might be a total loss, Kopriva notified the customer of the situation. The customer explained to Kopriva that due to her financial condition she couldn’t afford to lose her car and wanted to explore possibilities to save it. He helped her come up with different scenarios to

put some money into repairing the vehicle. In the meantime, GEICO called to say they were going to total the car, and asked Kopriva to determine the costs incurred. He said they seemed to have no issue with the majority of costs, but “when we told them our administrative fee was $225 they said there was no way that we’re going to pay and the amount was excessive.” GEICO informed the shop that they were only going to pay $50 towards the administrative fee. “All insurance companies that we work with—non-DRP as well as DRP—have no problem with our administrative fee,” said Kopriva. After all of the time spent working on a total loss vehicle, he said, “$225 is a reasonable cost and is certainly appropriate.” Kopriva said the next thing he knew he received a letter from GEICO stating that they were only going to pay $50 towards the administrative costs and if that was not acceptable they were going to sue. He was told to hold the car and not dispose of it. Kopriva Body Works currently has four of GEICO’s total loss vehicles at their shop. “The clock is still running on them and they don’t seem to be interested in picking these cars up,” he said. “Basically, it’s like they’ve abandoned these cars,” said Kopriva. “What’s going to be next on their list of things that they want to control?” Crowder said, “GEICO is thwarted by the fact that independent, non-aligned body repair shops are not regulated and are therefore free to charge any fee that they believe to be reasonable. In an attempt to force these independent shops to accept fee schedules that are acceptable to GEICO, the insurer has initiated these baseless suits in order to coerce the shops into accepting GEICO’s fee schedule.” Crowder represents two other body shops with suits pending against them by GEICO for similar reasons. “The most troubling thing to me is the total lack of basis upon which these suits have been filed,” said Crowder. “While there are undoubtedly shops that charge unreasonable and insupportable fees for their services, none of the clients I am representing fall into that category and yet they are being forced to incur significant attorney’s fees to defend themselves.” Ed Griffin, owner of Griffin’s Paint & Body Inc., said he had a similar experience with GEICO. A cus-

32 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

tomer brought in a car in July 2014 that was severely damaged. Although Griffin thought the estimator might total the car, instead she said it was repairable. “As normal protocol, she left me the estimate and I called the customer,” said Griffin. “After beginning repairs, our technicians found more damage.” Griffin said once they got the supplement in place, GEICO re-inspected it and finally deemed it a total loss, a considerable amount of time had passed. At that point, Griffin put together a bill, including the parts ordered and a $20 daily storage fee, which he said GEICO didn’t like since the car had been there three months. Griffin received a call from the law firm and said he was told that GEICO would pay under protest and duress. “I was kind of taken back and I didn’t know how to react to that,” said Griffin. “I feel like they are just bullying shops to get their way. We have costs of doing business that they don’t want to recognize.” In business since 1989 and a member of the Auto Body Association of Texas (ABAT), Griffin said he has never had a situation like this before

or been in a lawsuit. “GEICO’s policies and procedures are difficult to work with for us,” said Griffin. “They encourage you to do cut rate work with what they are allowing, in my opinion. That’s my battle with them. I need to be compensated and to compensate my workers fairly in order for us to do a good quality, safe repair on a vehicle.” Griffin said as a small business in a small town, it can be challenging. He finds that a lot of work is steered away from him because he isn’t a DRP. “If you don’t fully go along with their money-saving policies and procedures, you get labeled hard to deal with and potential customers are steered away via the insurance company’s strong influence they have on customers. “A lot of times I’ll have to go in my pocket to go that extra mile to make a customer happy and I should get paid for that but I don’t most of the time.” Corey Pigg, a manager of S&W Expert Collision Repair, said the shop’s relationship with GEICO as well as other insurance companies has been somewhat of a feast or famine.

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“At one moment it’s great, at other times it’s rocky,” he said. S&W has operated in Lufkin and East Texas since 1975 and opened their second location in Nacogdoches in 2001. Pigg said at the beginning of 2014, the company realized that in order to maintain profitability they would need to increase their rates. As a DRP for multiple insurance companies, S&W sent out notification to almost all of the companies they work with on a regular basis that their rates were changing in April after nearly four years of being the same. S&W also began charging a markup on outside tow bills and an administrative fee on total losses. Even though S&W is not on any sort of DRP program with GEICO, “GEICO had a big problem with all of these changes and refused to pay,” said Pigg. S&W received letters from a GEICO attorney stating the insurance company is only making “payment under protest and duress” because S&W charged an $800 markup on a tow bill that they had to pay. “We asked GEICO to leave some blank checks with us in order to pay tow tickets with, but they declined. They want us to use our own funds to pay their tow bills for free,” Pigg said. “We had no choice but to get our customers involved.” S&W found their customers to be more than willing to step up and help. Many called GEICO supervisors as well as the Texas Department of Insurance. Pigg said the response was surprising. “GEICO informed many customers that if they wanted S&W to repair their vehicle then the customer would have to pay the differences out of his or her own pocket,” he said. In just one example, Pigg said

GEICO towed a vehicle out of their facility to a shop 50 miles away to avoid paying their labor rates. “We have had GEICO supervisors email our customers contact information to other local shops in order to steer them away from S&W while the customer’s vehicle was already at our facility,” he said. Pigg said there have been some positive changes recently. GEICO began paying S&W’s new rates this year, which has helped the relationship they have with one another. However, he said GEICO still refuses to pay for certain required repair procedures and requires the use of aftermarket parts. Although Pigg said the company likes working with insurance companies for the most part, “The problem arises when an insurance company refuses to pay for work that is essential to repairing cars correctly or tries to steer customers to other facilities that may use cost cutting practices that compromise the integrity of repairs.” “While partnering with insurance companies, we’ve always let our customers know that he or she and a correctly repaired vehicle are more important than any DRP program. We would rather take a loss on a repair or not repair the vehicle at all, than fix a car improperly,” he added. Pigg, who is an active member of ABAT, said the association has given Texas shops a voice. “We are no longer accepting the insurance company’s response, ‘Well, that’s a cost of doing business.” Or “you’re the only one that charges for that.” However, it seems the more we stand up for ourselves, the bolder some insurance companies get.” Burl Richards, Owner of Burl’s Collision Center, is not involved in a lawsuit with GEICO but is aware of other body shops that are. As the Pres-

NABC Awards for Distinction and Shop Image, Nominations

Do you know of an auto body shop that had a great facility makeover last year? Or an individual in the collision industry whose selfless actions were for the benefit of others? NABC is seeking nominations for its two industry awards: the Award of Distinction and the Body Shop Image Award. NABC’s awards program recognizes individuals and collision industry facilities that have made a beneficial impact in their communities and in the industry. As part of its 2015 recognition program, the National Auto Body Council plans to publicize, highlight and call attention

throughout the year to outstanding individuals and body shops and their extraordinary efforts. “The NABC industry awards program celebrates businesses and individuals whose efforts exemplify the professionalism and integrity of our collision industry,” said Marie Peevy, Chair of NABC’s 2015 Awards Program. Online nominations and more information for both awards are available at www.NationalAuto BodyCouncil.org. Contact Marie Peevy, Awards Program Chair, at: marie.peevy@automotivetraining coordinators .com or call 630.881.7945.

34 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

ident of ABAT, he stressed the importance of shops coming together. “To me, the whole system is broken because everyone is scared to communicate because they’re afraid they’re going to step over an antitrust law,” he said. “Insurance companies have had us so scared and so concerned about that for years so we’ve started to educate ourselves and we’ve learned what antitrust really means.” Richards operates two body shops in the East Texas area. One of them is set up with the latest technology and equipment such as resistant spot welders, aluminum prep rooms and expensive frame equipment. About two and half years ago he purchased a second location without any frame equipment and an approximately 30-year-old paint booth. He said not all shops are set up for heavy collision repair, yet they are paid the same fees by insurance companies. “All costs are going up and insurance companies are saying we’re not going to pay for it because others aren’t asking for it,” said Richards. “We all have different expenses; each shop is different.” Richards said there is currently no incentive for shops to do things the right

way. One of his goals is to implement a tiered pay system in Texas. He said this would reward the shops that invest in equipment, employees and training. He hasn’t purchased additional equipment at his other shop because the insurance companies will pay him the same rate regardless of his overhead. “As a shop myself I felt like I was the only guy out there who was asking to get reimbursed and payed for procedures and processes that we were doing everyday,” said Richards. “It’s real simple. If we do the process and it is owed to us, we should be reimbursed.” During every ABAT meeting he passes on the same message to members: “If you’re not going to ask for it, you’re not going to get it.” Richards said the more shops get together they realize that “We’re competing against each other but we’re not against each other. It’s really the body shops versus the insurance companies… I don’t want it to be that way. At the end of the day it’s all about fixing the customers’ cars right.” GEICO and its attorney at David Knight and Associates in Houston, Texas were contacted but had not yet responded to Autobody News as of press time.

Limited Repair Data Has Little Impact So Far on Aluminum 2015 F-150, Insurance Rates Steady for Now comparing aluminum-bodied luxury vehicles like the Audi A8 against their steel-bodied counterparts like a BMW 7 Series and found costs for aluminum vehicles were anywhere from 9 to 20 percent greater. “Since the F-150 is a mass-market, high-selling vehicle, it’s collision claim experience could be different,” Rader said. “As more repair shops become equipped and receive training to handle aluminum, the increased volume could drive costs down. In addition, Ford has stated that they have incorporated modular designs to facility replacement to damaged parts which may save on labor costs.” For now, motorists’ yearly insurance premiums for the 2015 aluminumbodied F-150 are about the same as for the 2014 steel model—good news for Ford, according to Hannah Lutz, writing for Automotive News. But premiums could change once insurance companies study accident repair data for the redesigned pickup. To set rates for 2015 models, insurance companies use the latest data they have—from 2014 model claims. It could take about a year or more to get

When news originally broke that the 2015 F-150 would have an aluminum body, there was speculation that the cost of collision insurance would go up because repairs would be more costly and require special body tools. But Ford has subsidized repair training and new tools for dealers with body shops to help ensure competitive rates. “It’s too soon to tell whether the new F-150 is going to have higher insurance losses than the previous generation model,” Russ Rader, spokesman for the Highway Loss Data Institute affiliate of the Insurance Institute for Highway Safety, said in a January interview with the Detroit News. “We’ll need to have enough of them on the road getting into enough crashes to gather data on repair costs.” Online insurance quotes from two Metro Detroit agencies priced the 2015 F-150 XLT anywhere from $27-$54 higher than a comparable 2014 model over a 6-month period. Of course, insurance rates vary greatly, and depend on a number of factors including age, location, driving history and past driving record, as well as credit ratings. Rader’s office conducted studies

repair and other data useful to set rates for the 2015 model, insurers say. “The cost to insure the F-150 may go up, or it may go down,” said Progressive Corp. spokesman Jeff Sibel. “We won’t have [enough] data until we have claims experiences.” Insurance premiums won’t make or break sales of Ford’s highly profitable full-size pickup. They are about 10 percent of an owner’s operating costs in the first five years of ownership, Consumer Reports estimates. Ford is confident that insurance premiums for the new pickup will be similar to those for the steel model, even though some parts costs are higher, aluminum repair techs require special training and special repair equipment is needed. For instance, repairing a front door for the 2015 F-150 Crew XLT costs $1,020.95, a $166.02 increase from the 2014 model, says Consumer Reports. Ford expects insurance premiums for the 2015 model will remain under control, in part because company engineers designed the pickup so that repairs could be made to the aluminum body without replacing entire panels. “The 2015 Ford F-150 is designed

so sections of the truck are easier to repair in the event of an accident, significantly reducing time of repair and saving costs,” Ford spokesman Mike Levine said. Spot checks by Automotive News show insurance prices for the 2015 F150 match those of the 2014 model. At Esurance, a unit of Allstate, quotes for 2014 and 2015 F-150 base models were exactly the same: $629.50 for six months for the same Ann Arbor, MI, driver and $649.60 for the same Birmingham, MI, driver. Progressive’s figures differed slightly. The Birmingham driver’s 2015 F-150 would cost $1,044.50 for six months of basic insurance, $39 more than that of the 2014 model. At Allstate, F-150 insurance rates change little from those of the 2014 model, spokesman Justin Herndon said. He agreed that insurers lack sufficient 2015 F-150 claims to provide fully accurate rates. As sales of the 2015 aluminumbodied truck increase, there will be more accidents. The vast majority of F-150s being sold still are the previous-generaSee F-150 Insurance, Page 38

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Social Media for Shops Tracking Your Success (or Lack of) Using Google Analytics with Ed Attanasio

Body shop owners as a rule are adept at studying and interpreting all kinds of numbers and statistics, and that’s why the successful ones are very good at tracking their performance. They calculate each minute that goes into every vehicle and what exactly their profit will be at the end of each day. They know how to read Excel sheets and decipher the numbers and use them to refine their processes. It’s in their DNA and in a fast-moving, highproduction environment having useful numbers at your disposal is vital. So, when it comes to online marketing, website development and SEO, the average body shop out there wants to know where their money is going and how many customers they are engaging through the Web and other online endeavors. They want to know where the buck starts and ends, in clear terms and with data they can use. “I have been doing a blog now for eight months, but I have no idea whose reading it,” one shop owner told me recently. “People tell us they visit our website all the time, but how much time do they spend there and is it leading to new customers?” is another question pretty much anyone in the collision repair industry would want answers to. Body shop owners and managers have 1,600 different things going on every day, so worrying about their results through their online marketing efforts is probably issue #1,601. But, even if they’re making good money and the shop is full of cars, they’re always keeping both eyes on the bottom line. The worst thing for a body shop owner is to think he or she is not getting good value for his or her money. And that’s why Google Analytics can placate the troubled minds of collision repairers all over the world, because it provides real, concrete and undeniable numbers that can tell you whether you’re succeeding or floundering online. What exactly is Google Analytics? Google Analytics is a free web analytics tool that generates detailed statistics about activity on a website. On its website, Google explains that the system “helps you analyze visitor

traffic and paint a complete picture of your audience and their needs, wherever they are along the path to purchase.” As the world’s most popular web analytics tool, Google Analytics is currently installed on over 10 million websites, including 60% of the top 10,000 websites on the planet and 50% of the top 1 million websites in the world. Website owners use the service for two main reasons—it’s 100% free to use and also highly reliable. Another plus is the fact that Google made it as simple as possible, so that body shop people that are on the lower-tech side can quickly use it and make it a part of their overall online marketing package. To learn how to use it, there are a ton of very useful videos on YouTube. David Moore, owner of Collision Websites in Tulsa, OK, has been using Google Analytics for all of his body shop clients since day one and has used it as an invaluable tool for their success online. “When I show shops how it works, the light goes on,” Moore said. “It is a tool and if you really learn how to use it, you can do some great things with it. For instance, many of my clients use it to track the results of some of their marketing efforts, such as e-mail marketing, online ads and other promotions. By referring to Google Analytics right after sending out 2,000 email newsletters, for example, you can see if it works or not. If your traffic does not increase, then obviously you have to come up with a new approach. Maybe the graphics didn’t draw people in or maybe the timing of the newsletter was poor. Google Analytics can help you to re-calibrate your marketing, based on real results.” The reports you’ll receive from Google Analytics are many, but here are the main measurable factors that you will surely want to know and refer to often: ● A graph showing the daily traffic the website receives. ● The number of visitors who came to the site during a specific time period. ● The average number of pages that visitors viewed while on the site. (The industry average is approximately 1.8

36 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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

caught up in how many visits their site is getting and I tell them they should be more concerned about the quality of the visits,” he said. “When someone visits your site or your blog, how many pages are they looking at and how long are they staying on each page? If people are looking at your site for less than a minute and only visiting one page, maybe you need to re-design your site, so that people will stay for a while.” So, if information is key and the numbers tell the story, sign up for Google Analytics today and start knowing rather than guessing when it comes to your success (or lack of) online.

pages.) ● Bounce rate: What a visitor does once they land on the homepage. If they leave the homepage without looking at any other pages, that’s considered a “bounce.” ● The average amount of time a visitor spends on the site ● Depicted in a pie chart, Google Analytics will tell you how much “Direct Traffic” you’re getting. This means that the user knew the URL, typed it in and hit “Enter.” ● Content View shows what pages visitors are visiting. Watch this section to measure how many people are doing what you want them to do, such as clicking on pages like “Locations,” “Map,” or “Blog.”

We asked Moore, What are the most significant numbers to be looking for when studying monthly Google Analytics reports? “Some body shop owners get all

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Industry Insight

SCRS Event Brings Shop Associations Together to Discuss Efforts, Share Ideas with John Yoswick

Collision repair association leaders from around the country met in Secaucus, NJ, in mid-March to share ideas and discuss state legislative or regulatory successes and efforts. The “2015 East Coast Resolution Forum,” an event sponsored by the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP) of New Jersey, was held in conjunction with AASPNew Jersey’s NORTHEAST™ 2015 trade show. Ed Kizenberger, executive director of the New York State Auto Collision Technicians’ Association (NYSACTA), moderated the meeting and told attendees about the legislation his association is supporting that would prohibit insurers from requiring repair shops to use specific vendors or processes for the procurement of parts or other necessary materials. The bill (SB 1207) is similar to one introduced in New York in 2013, and to

bills introduced this year in Illinois and Minnesota as well. Kizenberger also shared a letter he wrote to New York Attorney General Eric Schneiderman, asking him to view the February 11 “Anderson Cooper 360” segment on CNN examining insurer involvement in the collision repair industry. He urged Schneiderman to join other state attorneys general in either filing a lawsuit against insurers regarding some of their practices, or to join Sen. Richard Blumenthal (D-Conn.) in urging U.S. Attorney General Eric Holder to examine consumer steering and other insurer practices. Such efforts can pay off, Oklahoma shop owner Gary Wano said at the meeting. He said he was among a handful of repairers who met with representatives of his state’s Attorney General’s office last fall to discuss several issues, including “steering.” The timing, he said, was fortuitous.

Continued from Page 35

proved gas mileage and a higher residual value expected from the use of advanced powertrains and high-strength materials, we expect cost of ownership for the allnew F-150 will remain similar to or less than today’s levels. Reduced repair times for certain major collision repairs are expected to help keep insurance rates competitive as well.” Because the F-150 is such a highvolume seller Ford offered dealers with service shops a voluntary Collision Repair Program that trains workers how to repair the new vehicle. Ford said more than 1,500 dealers have participated in the program as of January, which includes tooling upgrades that will cost between $30,000 and $50,000. Ford will chip in up to $10,000 in rebates to purchase equipment for aluminum repairs to any interested dealer with a service shop. “It is important to note that less than 50% of our dealers have body shops, although we expected that only 20–30 percent of our dealers needed equipment and training due to the larger volume of collision work those dealers do,” spokeswoman Elizabeth Weigandt told the Detroit News. “The majority of collision work (80 percent) is done by independent shops.”

F-150 Insurance

tion steel-bodied pickups. In March, 21 percent of F-150s sold were aluminum, said Ford’s chief sales analyst, Erich Merkle. The number of 2015 pickups that have been built and shipped since production started late last fall is about 72,000, according to estimates by the Automotive News Data Center. Ford says the 2015 F-150’s insurance premiums will remain steady. Ford’s repair parts program “is going according to plan,” a spokeswoman said. The experiences of vehicles that recently switched to aluminum support Ford’s view. For example, insurance for aluminum-intensive vehicles saw “no significant change” from the rates for the steel-bodied versions of the previous model year, State Farm Insurance spokesman Dick Luedke told Automotive News. “Insurance rates represent only about 11 percent of the average cost of ownership for F-150 customers, while fuel and depreciation costs represent about 68 percent of ownership costs,” Ford said in a statement. “With im-

38 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

“The Assistant Attorney General looked at us and said, ‘Wow, that just happened to me,’” Wano said. “Her son had just been involved in an accident, and GEICO Insurance told her to go to a shop 20 miles away from her home, after she already said she had a particular repair facility she liked to use in her neighborhood.” The information from the shops led Oklahoma Attorney General Scott Pruitt to issue a warning to consumers about steering, and to a subsequent public service announcement on the topic produced by the state insurance department. The phone number listed in the public service announcement connects consumers with a taskforce that can take verbal as well as written complaints from consumers. “This is the most action we’ve seen in Oklahoma since the early 1990s,” Wano said. SCRS’ Aaron Schulenburg said such efforts help those in other states

as well; the Oklahoma public service announcement, for example, helped prompt a nearly identically-worded one in Montana. Legislation is a big focus of the Alliance of Automotive Service Providers (AASP) of Massachusetts. House Bill 857 would change two currently-required consumer disclosures. Under the bill, the current disclosure on any estimate that includes nonOEM parts would have to be in at least 12-point type rather than at least 10-point type; it would also be extended to say that use of such parts may void existing warranties, and would have to include notice of the consumer’s right to use the shop of their choice. The second change would require any insurer recommending shops to also tell the consumer verbally or in writing that, “Under Massachusetts law, you have the right to choose a registered repair shop of your choice. All registered re-

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pair shops must guarantee their repairs.” Another Massachusetts bill (HB 883), similar to one introduced two years ago, would require the state’s insurance commissioner to establish a minimum labor rate insurers must pay to shops based on the average of the hourly rates paid by insurers in five surrounding states (where labor rates are as much as $10 higher). The commissioner would have to review the minimum hourly rate once every three years. AASP-Massachusetts is also backing two other bills that will make changes to the state’s Auto Damage Appraiser Licensing Board (ADALB). One bill would shift oversight of the board from the Division of Insurance to the Division of Professional Licensure. Jillian Zywien, executive director of AASP-MA, said all other state licensing boards are under that division, and the association believes the ADALB should be as well. The second bill (H 816) would add two additional members to the 5member ADALB. The board currently includes two representatives affiliated with the body shop industry, two af-

filiated with insurance companies, and a chairman (appointed by the commissioner of insurance) who is not affiliated with either industry. Under the proposed legislation, the state attorney general would appoint two additional board members, one representing the attorney general’s office and one representing consumers. “The ADALB oversees all licensed appraisers in Massachusetts and is a place where repairers and consumers can seek remedy for improper repair appraisal negotiations,” Molly Brodeur, president of AASP-MA, said. “The Board’s current configuration has eroded its mission. There is also undue influence from the Division of Insurance, which further complicates the ADALB’s ability to act. Our legislative and regulatory agenda is focused on bringing order and functionality back to the ADALB.” Representatives from Connecticut at the meeting discussed the awaited decision in The Hartford’s appeal of the $34 million dollar judgment against the insurer in a class action lawsuit brought by the Auto Body Association of Connecticut (ABAC) and several shops in the state. The two sides in the case squared off before the

Connecticut Supreme Court in January, with The Hartford appealing the 2013 judgment that awarded repairers millions in compensatory and punitive damages after a jury agreed The Hartford suppressed labor rates through unfair trade practices. “There’s no specific timeframe, but my sense is probably within the next three to six months we’ll have a decision,” said attorney John Parese, though he is not personally involved in the case. With interest, a ruling in the shops’ favor would probably result in a net award of close to $40 million. Tony Ferraiolo, the president of ABAC, was asked at the meeting if he feels that’s enough to change the insurer’s behavior. “It’s taken 14 years since we filed the case to get to the final decision on this thing,” Ferraiolo said. “Even if they do have to pay that amount, can you imagine what they made by not having to change the way they do business for the 14 years?” Ferraiolo said the association also is supporting legislation (5655), introduced on behalf of a jobber in the state, that calls for clarification of state sales tax regulations on automotive

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paint. Ferraiolo said his state is one of five with a “double-taxation issue, where we are paying tax to the jobber on paint-related materials, and then charging customers a tax on it on the other end.” Tony Passwater of the Indiana Auto Body Association said he has created a website (www.iHaveBeenSteered.com) and a toll-free phone number (855-No-2-STEERing) to allow consumers to decribe their interactions with an insurer related to shop choice. Passwater said consumers who may be hesitant to fill out a “complaint form” may be more apt to “share what their experience has been.” He said sharing the CNN story as well as others on social media is helping build consumer awareness. “I think we’re making some inroads with consumers, which is what we’ve never been able to do very well in the past because it’s hard to reach consumers,” Passwater said. “I really believe that social media is our equalizer.”

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e-mail: www.autobodynews.com | MAY 2015 AUTOBODY NEWS 39 shartman@autobodynews.com

On Creative Marketing

Story Power For Shops

with Thomas Franklin

Most people think they know what It’s well known that attracting re“P.R.” means when they see it. peated, ongoing visits to one’s webMovies, TV, recorded music and other site, will require regular updating with forms of entertainment rely heavily on content that is attention-grabbing. A promotion and most people think that shop’s site that is heavily into proP.R. is just a synonym for “promo- moting its state-of-the-art equipment tion.” But the fact is P.R. stands for and technical knowledge may be of “public relations,” a very distinct as- interest to insurance executives lookpect of marketing. The dictionary tells ing for a DRP shop, or a dealership with Dick Strom us “public relations” consists of principal choosing an authorized col“methods and means by which a perlision shop, but few average drivers son or an organization seeks to pro- will pay much attention to this technimote a favorable relationship with the cal detail. But adding an additional dipublic.” It is often confused with mension to the site with newsworthy “publicity” which is the effort to get stories of accidents, drivers and events favorable mention is media and the could bring new, regular traffic to the press. Some shops create favorable site. public relations by holding events, There is a problem in getting a sponsoring schools, sports teams and goal like this realized in most shops. family oriented activities that will re- Estimators are focused on getting the flect well on the concerns and gen- necessary information needed to presLee Amaradio erosity of the with shop. Very few are entJr. the estimate, capture the job, colsuccessful in obtaining broad media, lect the keys, and then get the job in publicity, and press coverage of their process. Adding a requirement to P.R. activities. draw out the accident story could be The heart and soul of good pub- regarded as interference with their job licity is the attention-grabbing story. or just a waste of time. The entire Children, pets and traumatic experi- process has to be made painless and ences are some of the favorite subjects trouble free. Fortunately today’s smart of publicity stories. This is where a phones all have a memo-recording typical shop could excel at adding feature. All the estimator need do powerful publicity to its spectrum of when the conversation begins is marketing tactics. Day in and day out switch on the memo-recording feature shop estimatorswith are presented with on his or her smart phone. If desired, Sheila Loftus stories of accidents and driver and the customer can be asked to listen passenger trauma. Probably the ma- back to check for any errors in underjority of these stories are unintereststanding. Or the story can be foringly similar, but the occasional warded to the shop’s marketing person oddball story can be just what is to see if the story really has P.R. poneeded to put a spark of life and intertential and to clear it with the cusest into the shop’s marketing mes- tomer for use on the shop’s site and sages. other media. Customers that don’t ob-

Opinions Count

Action Counts

Your Turn

LORD Fusor Joins NABC as Diamond Member

The National Auto Body Council citizenship initiatives to contribute pos(NABC) announced the addition of itively in the communities where we LORD Corporation, manufacturer of af- work and live,” said Tim Jackson, Rewith Janet Chaney termarket repair adhesives, to its top-tier gional Manager/I-CAR Liaison at Diamond level membership. LORD LORD Fusor. “We look forward to colFusor joins 31 Diamond members and laborating with our colleagues to pronearly 300 total National Auto Body mote the positive impact our industry Council members across the country makes in local communities nationwho donate time and resources for com- wide.” NABC members represent community service programs that help panies from all facets of the collision change lives and impact thousands of in- industry—independent body shops, dividuals. “We enthusiastically support MSOs, insurance companies, rental car the National Auto Body Council’s vision companies, parts and material suppliers and mission. They are a perfect comple- and manufacturers, and industry conment to our company’s core beliefs and sultants.

Shop Showcase

Industry Overview with Janet Chaney

40 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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

ject to the use of their story may also be willing to provide photos, or allow shop photos of their vehicle along with the story. At this point the entire story may be appropriate for YouTube, Facebook and other media. While the customer stories can provide good update content for media, weekly or monthly, another story has great potential to build customer loyalty. Most shops were started by one person or siblings or by an entire family. Very often that story is one of overcoming difficulties and possibly even hardships to arrive at the thriving, stable enterprise it is today. It is often a story of help received, from family, friends, suppliers and even potential customers. People are drawn to stories of perseverance and deeply felt caring. An effective story can make the viewer feel he or she is a participant in the struggle and trauma that evolved into the customer friendly business that it has become. I recall one shop that had

photos of three generations that built the business posted in the waiting area. Naturally these photos on the website and related media will add great depth to the story. Of course this story should have a special, permanent place on the shop’s site, but it can have even more P.R. value if it is told to audiences whose members’ vehicles could one day become jobs. Owners who belong to chambers of commerce, civic government or social groups, or other organizations that meet regularly, could have an opportunity to tell their growth and development stories. Especially young people with an entrepreneurial bent can be inspired by speakers willing to talk about their struggles to get where they are today. The purpose of P.R. is to promote a favorable relationship with the public. There’s no better way to create a favorable impression than telling an inspiring or entertaining story.

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American Honda Launches ProFirst Certified Program by Victoria Antonelli and Stacey Phillips

After more than two years of research and development, American Honda Motor Co. announced the launch of the ProFirst Certified body shop program in March. “Today’s vehicles are more complicated and more sophisticated with a higher degree of technology than ever before in the way they are designed, built and the materials used,” said Gary Ledoux, Assistant National Manager for American Honda Motor Co. “Honda and Acura are no exception.” Ledoux said collision technicans cannot repair “tomorrow-tech” vehicles with “yester-tech” knowledge, training, tools and equipment. “That’s what ProFirst Certified is all about—proper, complete and safe repair of Honda and Acura vehicles through proper training, repair information and equipment.” The program is open to independent and dealer-owned collision shops. To qualify, shops must be either an I-CAR Gold Class shop or a VeriFacts VQ or Medallion shop. In addition, shops must complete Honda/Acura-specific training hosted by I-CAR, meet tool and equipment requirements, meet facility requirements, and have a CSI system in place. “I think this is going to help raise the bar for all shops inasmuch as the quality of the repair they provide,” said Continued from Page 12

Lean CA Body Shop

“We created an Approved Product List (APL) based on 3M SOPs in each department. With the proper training, willingness and ability to make changes, our goal was to increase sales-reduce cost and improve profitability.” Magos offered the following advice to shops looking to begin their lean process: ■ Inquire where to get the training. Your paint rep should be able to connect you to lean seminars offered all over the country. We were approached by Hillary Castro, our paint rep, regarding attending Eco-Lean I Seminar. We were very glad we did. In fact, we were so excited about the whole concept of “lean” (not just the 5S part), that for the Eco-Lean II we also took with us our Production Manager and our Parts Manager all the way from California to Florida. The investment was well worth the cost. ■ Put your seat belt on and be ready for a rough ride. But if you concentrate on the PRIZE instead of the

Ledoux. “With the advent of the unibody car in the early 1980s, technology changed dramatically and shops had to change to keep up.” He said the same thing is happening today. “But the person who will benefit the most, is the person who should benefit the most—the Honda and Acura owner when their car is repaired by a ProFirst Certified shop.” He added that car-building technoloogy is not going to stand still. He predicts that “Ten years... or maybe even five years from now, we may be driving cars that use a technology that hasn’t even been invented yet. ProFirst Certified will change and adapt with the collision industry and business needs of American Honda to help bring value to participating shops, and proper repairs for Honda and Acura owners.” “No brand earns more Top Safety Pick awards than Honda,” said Steve Osborne, Assistant VP of the Parts, Service & Technical Division. “It is only logical that we support safe and proper collision repair of our customers’ vehicles and that we identify repair shops that are certified to possess the necessary skills, training and equipment to perform those repairs.” During its development, the ProFirst Certified program involved people and departments with American Honda including parts marketing, service training, service engineering, and service publica-

PRICE, the rough ride will be more bearable. Tough times don’t last, tough people do. ■ Be patient and persistent. The hardest thing is changing habits. If it’s hard to change your own habits, try changing all your team at once. Be very patient. As the saying goes, “A swift sea never made a skillful sailor.” Magos concluded, “I went about this the hardest way. I knew I wouldn’t get a buy-in from the techs until they started noticing that there was any benefit for them; the typical ‘What’s in it for me’ mentality. As John Maxwell stated, ‘A manager says: ‘go,’ a leader says: ‘let’s go.’ I led the way by making many changes until there were measurable results, and then they bought into the concept. I’ve heard of shops doing this in a weekend. I don’t see how that would have been possible for us. Maybe just the 5S part, but the habit forming and the total buy-in takes time, patience, focus, a true love for what you’re doing and your people and perseverance.” M & M Paint & Body Shop is located at 503 E Main St, El Centro, CA 92243. To learn more, visit their website at http://mmbodyshop.com/.

42 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

tions. The company worked with several of their business partners, including Axalta Coatings, I-CAR and VeriFacts. I-CAR worked with Honda several years ago with the initial launch of the Honda ProFirst program. Gold Class was, and still is, the principle training requirement for body shops looking to get ProFirst Certified. “Partnering with Honda to bring a portfolio of training modules to the industry, and recognizing Gold Class designated businesses as a path to the ProFirst program builds upon what they have already been doing to help assure the total capability of a repair shop to perform complete, safe and quality repairs,” said John Bosin, I-CAR Director of OEM Segment Development. “Honda is one of the earliest and most significant contributors to I-CAR’s Repairability Technical Support (RTS) Portal and they continuously work with ICAR to ensure their information on the ‘RTS Portal’ is comprehensive and a valuable resource to the industry.” Verifacts shops are also eligible. “VeriFacts is excited and honored to be a preferred program partner for the Honda ProFirst Certified Program,” said Nancy Fiorino, the National Director of Sales for VeriFacts Automotive. “Honda clearly shares our passion for excellence, earning IIHS recognition as 2015 Top Safety Picks in virtually all vehicle categories.

“Similarly, VeriFacts VQ Medallion and VQ facilities are recognized by Honda and consumers alike for their sustained excellence in collision repair. These exceptional repair facilities open their shops to independent thirdparty verification, giving the vehicle owner complete peace-of-mind that their vehicle was repaired using the latest repair methods, technology and procedures—tested and backed by Honda and industry best practices.” She added that the program will help ensure a safe, smart and transparent repair process. Some of the benefits include a plaque for display plus free online access to all Honda and Acura service and repair information and parts catalogs. The shop’s contact information will be placed on the American Honda body shop locator website. Qualified shops will receive exterior signage, collateral promotional materials, and free access to a collision tech-line for help via telephone. The cost of the program will be $2,700 annually. A limited number of shops will be awarded ProFirst Certified status in select U.S. metro areas. Axalta Coating Systems will provide inspection services to audit shops initially and then on an annual basis to confirm consistent compliance with program requirements. For info, contact profirst@ahm.honda .com.

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Sherwin-Williams Renews as the ‘Official Paint Of NASCAR’ NASCAR® and Sherwin-Williams, the nation’s largest specialty retailer of paint and paint supplies, announced a three-year extension to their Official Partnership. The newly signed extension will designate Sherwin-Williams as the “Official Paint of NASCAR” through 2017. “Our continued partnership with Sherwin-Williams is another example of FORTUNE 500 brands successfully using NASCAR as an integral part of their marketing mix,” said Norris Scott, Vice President Partnership Marketing. “Sherwin-Williams’ integrated approach using our intellectual property, both at track and at retail has proven highly effective. We look forward to expanding the Sherwin-Williams relationship across its multiple business divisions.” By continuing as an Official NASCAR Partner, Sherwin-Williams will also retain its designation in the “Official Automotive Paint of NASCAR” and the “Official Transportation Finishes of NASCAR” categories. Sherwin-Williams Automotive Finishes division will further expand its visibility as one of the leading product innovators and servicers to the collision repair and original equipment industries. Sherwin-Williams is the

only direct distribution automotive refinish manufacturer and provides service to its collision repair and OEM customers through nearly 200 company stores in the U.S. and Canada. “We’re extremely excited and honored to continue and expand our role as the ‘Official Automotive Paint of NASCAR,’” said Adam Chafe, Vice President of Marketing for SherwinWilliams Automotive Finishes. “Since 2000, some of the biggest names in motorsports have trusted their vehicles’ finish to Sherwin-Williams. We aim to help teams cross the finish line and ensure that their cars and sponsors always look their best on the track; that also holds true with every repair and repaint our collision repair center customers provide for their end customers.” The designation as the “Official Transportation Finishes of NASCAR” will also help Sherwin-Williams further expand its visibility as one of the leading product innovators and servicers to the fleet refinishing, heavy truck and bus, aerospace and commercial manufacturing industries. “More than a dozen NASCAR teams currently use Sherwin-Williams Automotive Finishes,” said Bobby Moody, Director of Motorsports for

Sherwin-Williams. “The 30-plus drivers who now use Sherwin-Williams have more than 200 NASCAR Sprint Cup Series victories between them and make up a virtual ‘who’s who’ of NASCAR’s finest finishers.” Through its renewal, SherwinWilliams maintains its role as a Contingency Sponsor in the NASCAR Sprint Cup Series™ and NASCAR Touring & Weekly Series. As part of the Contingency Program, Sherwin-Williams will be title sponsor of the Fastest Lap Award in the NASCAR Sprint Cup Series.In addition, Sherwin-Williams continues as a Proud Partner of the International Motor Sports Association™ (IMSA®), extending a partnership that began in 2013. For more information about Sherwin-Williams Automotive Finishes, or the brand’s motorsports program, visit www.sherwin-automotive.com or call 1-800-798-5872.

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Historical Snapshot

State Farm’s Service First Program, NABC, MT Requires DRPs, Unfair Trade in CT with John Yoswick

setts shop owner Chuck Sulkala said ingly passed a bill that requires insur20 years ago in the collision repair the project, coordinated by the Na- ers to admit any qualified collision reindustry (April 1995) Members of the with Automotive Service tional Chasidy Rae Sisk Auto Body Council (NABC) pair shop into their direct repair Association (ASA) Collision Operaand Habitat for Humanity, was a pub- program (DRP). Senate Bill 388, tions Committee are optimistic about lic demonstration of the many positive which was signed by the governor, is “Service First,” an enhanced claims intended to help ensure that handling program introduced by State non-DRP shops can compete Farm. According to a State Farm news with DRP shops for cusrelease, the pilot program was schedtomers, and is in some ways within Chasidy Rae Sisk uled to be introduced several states an anti-steering law because by mid-May. It would streamline auto it will remove barriers that damage claim handling and repair can develop from DRP relaprocesses, allowing customers to go tionships. directly to qualified facilities for in“I think it will go a long spections and estimates without visitway toward leveling the playing State Farm drive-in claim service ing field,” said Gene Dziza, Sulkala led a National Auto Body Council (NABC) with Chasidy Rae Chuck Sisk centers. owner of Collision Craft in project in 2000 to build a Habitat for Humanity home for a The news release states that the Kalispell, MT, who pushed family in need. The NABC raised $67,000 in donations for the project, and more than 300 volunteers from the indusprogram would also allow repair fafor the bill for six years. “I try helped build the Kansas City home from the ground up cilities who discover damages after think that in our industry, it’s over the course of 10 days the initial estimate to make repairs a really good idea to have us without reinspection by State Farm efforts undertaken by members of the going back to open competition based claims staff. on the merits of the service you prowith Chasidy Raeindustry. Sisk “We don’t think another inspecThe NABC needed to raise vide, not who you are affiliated with. tion is automatically required when $50,000 to fund the project, but more It will give our customers a lot more the work is being performed by a than $67,000 in contributions had choice.” well-qualified expert with whom we been received as of last month, Sul– As reported in Auto Body Rehave a solid business relationship,” kala said. More than 300 volunteers— pair News. Interviewed three years Chasidy Raefrom Siskshops, insurers and industry sup- later, Montana shops said the state’s said Bill Hardt, with State Farm assistant vice president of claims. pliers—helped build the home from unique law was working. “We can’t “We see this as a very progres- the ground up over the course of about change the [DRP] criteria, but we sive and much needed addition to the 10 days. have the right to see it and decide if process to provide quality repairs for Sulkala admitted the project got we want to meet it,” Donna Fastenau the consumer, and believe it supports off to a rocky start because the foun- of Hank’s Body Shop in Billings, MT, the historical focus of all honest and with Chasidy Raedation Sisk for the home—poured by con- said. “The companies that had previethical repair facilities,” said ASA’s tractors prior to the arrival of industry ously removed us…had to open the Collision Division Director Russ volunteers—was more than five door and let us back on,” agreed Max Verona of East Rockford Collision inches out of square. Yates of Yates Body Shop in Butte, Center in Rockford, IL. “The key word is ‘was,’” Sulkala MT, who said his shop had been re– As reported in Collision Expert. said. “We fixed it. It’s the same thing moved from multiple DRPs because State Farm continued the “Service we do in our businesses every day of his insistence on including neceswith Chasidy Rae Sisk First” program for about a decade, but when we take a wrecked car and put it sary procedures on his final bills that by 2001 had already begun rolling out back into the shape that it needs to be. other shops may not. “Select Service,” the program that That’s what we did to a foundation that eventually succeeded “Service First.” was off. That set us back by a day or 5 years ago in the collision repair Verona died in 2006 at the age of 73. two. But that house is a solid, quality industry (May 2010) house, and the woman who’s moving Connecticut Attorney General Richard with Chasidy RaeinSisk there with her three kids is abBlumenthal has voiced support for a 15 years ago in the collision repair solutely thrilled and delighted about it.” court injunction being sought by the industry (April 2000) On the same evening that ABC’s – As reported in Autobody News. Auto Body Association of Connecticut “20/20” news program was blasting The NABC went on to even larger (ABAC) to halt The Hartford’s unfair the collision repair industry for con- projects, including raising $500,000 in use of in-house appraisers. sumer deception with and insurance fraud, Last November, a Connecticut Chasidy Rae2003 Siskfor a medical facility at a camp a Kansas City family received the in Montana for children with cancer. Superior Court jury found The Hartkeys to a new home built by industry ford had engaged in unfair trade pracvolunteers. tices, and awarded nearly $15 million 10 years ago in the collision repair In a presentation during a Colli- industry (May 2005) to shops in an ABAC-led lawsuit sion Concepts reception, Massachu- The Montana legislature overwhelmbrought against the insurer. The asso-

Associations Assembling Southeast News

Western Associations

Southwest Associations Southeast Associations Northeast Associations Midwest Associations

National Associations

Northwest Associations Shop Showcase

44 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

with Ed Attanasio

ciation subsequently filed for punitive damages and for a court injunction to end The Hartford’s exclusive use of in-house appraisers, which the association says excludes independent appraisers and forces shops to accept artificially low labor rates. In Blumenthal’s filing with the court, he said “the state has an interest in preventing the unfair suppression of labor rates that significantly harms the state’s economy and results in extreme economic hardship for independent automobile body repair shops.” A spokesman for The Hartford, which has denied any wrong-doing and has said it will appeal the jury award, told The Hartford Courant newspaper that the insurer was “disappointed that the attorney general has chosen to support a position that the body shop owners admit is intended to increase costs for Connecticut consumers,” and that it “is important to us that our customers have access to a repair program that provides great service at a fair price.” – As reported in CRASH Network (www.CrashNetwork.com), May 1, 2010. A final decision in The Hartford’s appeal of the lawsuit is expected later this year from the Connecticut Supreme Court. At stake are: $14.7 million in compensatory damages the jury awarded to the shops; $20 million in punitive damages against The Hartford added by the judge; interest that could bring the total to close to $40 million; and the injunctive relief that Blumenthal was supporting. Following his election to the U.S. Senate in 2010, Blumenthal became largely silent on auto insurance issues, until earlier this year when he announced that he is urging the U.S. Department of Justice to investigate whether insurers are directing consumers to collision repair shops that have agreed “to use cheaper and possibly more dangerous parts.”

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BMW Settles FTC Charges that MINI Illegally Conditioned Warranty Coverage on Use of Its Parts and Service

BMW of North America LLC has agreed to settle Federal Trade Commission charges that its MINI Division violated the Magnuson-Moss Warranty Act by telling consumers that BMW would void their warranty unless they used MINI parts and MINI dealers to perform maintenance and repair work. In an administrative complaint, the FTC alleged that BMW, through its MINI Division, violated a provision in the Warranty Act that prohibits companies from requiring that consumers—in order to maintain their warranties—use specific brands of parts or specified service centers (unless the part or service is provided to the consumer without charge).

“It’s against the law for a dealer to refuse to honor a warranty just because someone else did maintenance or repairs on the car,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “As a result of this order, BMW will change its practices and give MINI owners information about their rights.” The proposed order settling the FTC’s complaint prohibits BMW from violating the Warranty Act and the FTC Act in connection with any MINI Division good or service. The settlement also: ● bars BMW, in connection with the sale of any MINI Division good or service, from representing that, to ensure a vehicle’s safe operation or maintain its value, owners must have

TX Scam Artist Sentenced for Using Deceased MS Man’s ID

A Texas man was sentenced to five years in prison for pulling off an internet scam that involved selling a non-existent 2003 Ford F350 using a deceased Mississippian’s identity. John Wiggins, 52, of Round Rock, TX pleaded guilty on April 15 in Lafayette County Circuit Court in Mississippi to two counts of Fraudulent Use of Identity involving a Craigslist scam. He was ordered to pay full restitution of $3,500 to the

NABC Says “It Can Wait” to Students in Grad Season

With grad season comes the excitement of sharing photos, videos and texts with friends and family. But it also means elevated risk for teen drivers, particularly when they are sharing those photos and texts while driving. The National Auto Body Council (NABC) is teaming up with its members nationwide in the collision industry to help reduce this danger on the road by partnering with AT&T to support its It Can Wait® campaign. “The collision repair industry sees firsthand the negative consequences of distracted driving and want to help people reduce their risk of being in an accident,” said Dan Young, Senior Vice President of CARSTAR and Chair of the NABC’s Distracted Driving Initiative. “Through the It Can Wait campaign, we can educate drivers about the dangers of texting and driving, and engage drivers, their families and friends in putting down the phone and focusing on the road.” Tips are: Take and share your photos and videos before you get in the car; Designate someone who isn’t driving to manage the GPS; Drivers should install an app that silences incoming texts and notifications.

victims of the scam, one a resident of Colorado and the other a resident of Oklahoma. Wiggins was able to obtain money from the victims who were trying to purchase the truck. “Our office is committed to making the internet a safer place for all of us to work and play,” said Attorney General Hood. “I appreciate Judge Gregory for handing down the maximum sentence for this crime.”

routine maintenance performed only by MINI dealers or MINI centers, unless the representation is true and BMW can substantiate it with reliable scientific evidence; and ● requires BMW to provide affected MINI owners with information about their right to use third-party parts and service without voiding warranty coverage, unless BMW provides such parts or services for free. The Commission vote to accept the consent agreement package containing the proposed consent order for public comment was 5-0. The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject

to public comment for 30 days, beginning today and continuing through April 20, 2015, after which the Commission will decide whether to issue the order on a final basis. Interested parties can submit written comments electronically.

NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

Lawyers Picked to Lead Posts in Air Bag Lawsuits Two South Florida attorneys and a lawyer who represented former Vice President Al Gore in the 2000 election recount have been chosen for leadership posts in lawsuits over defective auto air bags. U.S. District Judge Federico Moreno is presiding over dozens of lawsuits consolidated in Miami federal court. The lawsuits seek unspecified economic and personal injury damages against air bag maker Takata

Corp. and numerous auto makers. South Florida attorney Peter Prieto of the Podhurst Orseck firm will be chief counsel for all plaintiffs. Curtis Miner, of the Coral Gables firm Colson Hicks Eidsen, was named lead counsel for the personal injury plaintiffs. David Boies of New York, who represented Gore, was picked co-lead counsel for plaintiffs seeking economic damages along with Todd A. Smith of Chicago.

Consumers Pay Repair Bills with Openbay and Apple Pay

Openbay, an online car repair marketplace, has announced that its mobile app can now be integrated with Apple Pay to pay for vehicle fixes and maintenance. The company says its offering is also good news for the car dealerships, independent shops and mobile mechanics who provide services via Openbay, as it lowers their risk of responsibility for fraudulent charges. “Openbay remains the only nationwide mobile and Web app for consumers to search for, compare mechanics, book an appointment and pay for auto repair,” said Openbay’s founder and CEO Rob Infantino in a statement. “With Apple Pay, we continue to innovate and maintain a first-mover advantage for vehicle repair.” Openbay outlined the benefits on both the consumer and serviceprovider sides. Consumers will receive convenience and security, as well as the ability to minimize costs by comparing multiple offers, the company said. Users will also be able to earn Openbay Rewards with every completed automotive service. Automotive service-providers, for their part, will experience the cost benefit of not having to invest in EMV and NFC point-of-sale terminals.

46 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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GM Names BASF 2014 Supplier of the Year

BASF received General Motors’ (GM) Supplier of the Year Award for the 10th time in the past 13 years. The award was presented to Joe Schmondiuk, Vice President of Global Accounts

dustry and are pleased that we were able to support them on several key product launches in 2014.” BASF’s Coatings Division supports GM by combining modern paint processes with special effect pigments and technologies. BASF offers a broad array of color solutions and processes that enable car makers to improve productivity and environmental performance. “These companies are the bestof-the-best suppliers, and deserving of special recognition for their outstanding contributions,” said Steve Kiefer. Joe Schmondiuk, BASF Vice President Global GM vice president, Global PurAccounts, OEM Coatings Solutions (center) acchasing and Supply Chain. “We’ve cepts the GM Supplier of the Year Award from had some good ‘wins’ of late, solid (left) Greg Warden, GM Executive Director, sales, strong earnings, and some Body Engineering and (right), Randy Pappal, nice awards, and you should know GM Executive Director, Global Purchasing that we could not have accomBody Group plished any of it without you and BASF Corporation, during GM’s an- your teams, and your hard work.” nual awards ceremony at Cobo Center GM’s Supplier of the Year proin Detroit. gram began in 1992, and each year a “BASF is pleased to have once global team of purchasing, engineeragain earned this recognition from ing, quality, manufacturing and logisGM,” said Schmondiuk. “It demon- tics executives determine the winners strates the great commitment and capa- of the Supplier of the Year Award. bility of our team to offer the innovative Winners represent “World Class” persolutions that GM needs. We view GM formance leaders in the areas of qualas a key partner in the automotive in- ity, technology, price and service.

Honda Adds More Recalls on Takata Airbag Flaws

Bloomberg News has reported that Honda Motor Co. added about 100,000 vehicles in the U.S. to existing recalls for flawed airbags made by Takata Corp. after discovering it hadn’t properly identified these models as being produced for the market. The new recalls cover 104,871 units of the 2008 Honda Pilot SUV, 2001 Accord and 2004 Civic sedans, according to a filing posted on the website of the National Highway Traffic Safety Administration. The additions were made after the automaker identified the batches hadn’t been properly identified as being produced for the U.S. Honda’s latest recall comes after its U.S. advertising campaign on March 16 urging owners to immediately replace potentially lethal airbags. The automaker is trying to ensure car owners take action to prevent more fatalities and injuries after a rupturing airbag in a Honda car claimed a fifth victim in January. Takata bags can fail during deployment and propel metal shards at passengers, a flaw that has led to millions of vehicle recalls by at least 10 automakers. About 25 million vehicles with Takata airbags have been recalled worldwide since 2008, Reuters has reported. See related story this page.

Nissan Expands Recalls Tied to Takata Air Bag Flaws

Bloomberg News has reported that Nissan Motor Co. plans to expand a regional U.S. recall of cars with potentially defective Takata Corp. air bags after a woman said she was injured last month by shrapnel from the device in her 2006 Sentra sedan. Nissan will file an incident report with the U.S. National Highway Traffic Safety Administration to expand its recall, a company spokesman, Steve Yaeger, said in an interview. The expansion will cover Sentras from the 2004 to 2006 model years that weren’t part the earlier regional recall, Yaeger said. “Before that accident we didn’t have enough data to recall,” Yaeger said. “We’re moving as quickly as we can to expand the recalls.” Regulators are investigating airbag inflators that may malfunction, deploying with so much force that the part breaks and hurls metal shrapnel at the car’s occupants. At least five fatalities in the U.S. and more than 100 injuries have been reported industrywide. Lawyers for 20-year-old Sabra Wilson, who suffered cuts, burns and partial hearing loss in a March 21 accident in Louisiana, filed a lawsuit alleging the Sentra’s passenger-side air bag deployed even though no one was in the seat. See related story this page.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 47

CIF Elects Jeff Peavy to Board of Trustees

The Collision Industry Foundation (CIF) recently elected Jeff Peevy with I-CAR to the Board of Trustees to carry on the Foundation’s initiatives throughout the coming years. Jeff Peevy is a well-known speaker and moderator at industry conferences and events across the United States. Peavy is the Senior Director of Field Operations and Segment Development at I-CAR. As a 32 year industry veteran, he has been a technician, shop manager, instructor, National PBE Manager for a large U.S. supplier, and Director of Technical Training and Application Research for an automotive paint manufacturer. Peavy stated, “During hurricane Katrina I saw firsthand how important the CIF mission is and look forward in assisting in its growth and promotion.” Chairman William Shaw commented on Peevy’s appointment, saying, “The CIF Board of Trustees is very excited and honored to have Jeff join our team. His industry experience and credibility is only shadowed by his passion to help others. He will be a key contributor to delivering the CIF’s mission of helping collision industry professionals in need.”

ARA’s 8th Annual Hill Day and State Legislative Summit Allows Industry Members to Educate Congress The Automotive Recyclers Association (ARA) held their 2015 Hill Day and State Legislative Summit in Washington, DC on March 16 and 17, and over the course of those two days, association members from across the country had the opportunity to educate Members of Congress and their staff about the industry. Participants also received current information on ARA’s issues and activities as well as enjoying some time networking with their automotive recycling peers from other areas of the U.S. and even other countries. When the State Legislative Summit began on March 16, attendees received information on recent legislative successes and current problems facing auto recyclers by various state legislatures. Attendees identified key issues impacting the automotive recycling industry in a discussion led by Norman Wright, ARA’s Past President and Governmental Affairs Committee Chairman, and Jessica Andrews, ARA’s Director of State Government Affairs. Andrews identifies some of these issues as “access to salvage and end-of-life vehicles, efforts to incorporate NMVTIS reporting and enforcement into state statute, build-

New Data: U.S. Drivers Did 3 Trillion Miles Last Year

New estimates released by the U.S. Department of Transportation’s Federal Highway Administration (FHWA) show that Americans drove nearly 3.02 trillion miles in 2014, the highest point since 2007 and the second-highest since data collection began 79 years ago, fueling calls for greater investment in transportation infrastructure to accommodate growing volumes of traffic. The new data reaffirm projections made by U.S. Transportation Secretary Anthony Foxx in “Beyond Traffic,” his 30-year vision for transportation, which shows significant increases in gridlock nationwide unless changes are made in the near-term. “Americans are driving their cars at near-record levels, and being stuck in traffic is costing drivers an average of nearly five days a year,” said Secretary Foxx. “To ensure this problem doesn’t get worse, greater innovations and investments are needed. We can’t keep treating America’s 21st-century traffic needs with 20th-century solutions.” According to FHWA’s latest “Traffic Volume Trends” report—a monthly estimate of U.S. road travel—Americans drove an estimated 3.015 trillion miles last year, roughly the same distance as 323 round trips from Earth to Pluto.

Drivers in December 2014 logged 251.4 billion miles, the highest level for any December since data collection began in 1939. At 5 percent higher than the previous December, it was the year’s biggest single-month increase and the nation’s tenth consecutive month of VMT growth. Traffic in the South Gulf—a block of eight states including Texas and Kentucky—rose to nearly 49.1 billion vehicle miles traveled (VMT), a gain of 6.4 percent over the previous December and the tenth consecutive month of increased traffic for the region. All states recorded traffic increases in December. At 10.5 percent, Indiana led the nation with the largest single-state traffic increase compared to the same month a year earlier, followed closely by Oklahoma at 9.3 percent and Montana at 8 percent. “Data like these are critical to helping federal and state transportation leaders understand the challenges facing American drivers,” said Deputy Federal Highway Administrator Gregory Nadeau. “The nation’s growing demand on roads and bridges underscores what we have been saying—increased investment is needed if we are to keep our roads from becoming parking lots.”

48 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

ing relationships with industry stakeholders and state governmental agencies, and the importance of keeping an eye on local and city regulations.” This discussion led to a sharing of resources, such as legislative language, past experiences and issue strategies. The group’s ultimate goal, according to Andrews, was “enhancing ARA’s grassroots advocacy structure.” Later that afternoon, Speaker of the U.S. House of Representatives John A. Boehner (R-OH) made a special guest appearance to speak to ARA members about major issues impacting the nation, and he encouraged attendees to recognize the importance of being aware of and staying involved with concerns facing their own businesses and the professional automotive recycling industry as a whole. According to Michael E. Wilson, ARA’s CEO, “Speaker Boehner entertained questions by the very appreciative group for over 30 minutes. It was an historic moment for our industry to be the focus of the Speaker’s remarks, and ARA members now know that their issues are understood at the highest level of the U.S. Congress.”

On March 17, ARA proudly held their annual Hill Day event with members representing 23 states engaging in more than 70 congressional meetings, 25 of which were scheduled with actual Members of Congress. These elected representatives repeatedly stressed the importance of programs like ARA’s Hill Day to help them make informed decisions on policies impacting the automotive recycling industry and the use of recycled OEM parts. According to Wilson, “In addition to ARA members talking with their congressional delegations about the general industry issues and local concerns, they also educated policymakers about the need for auto manufacturers to provide parts data to all stakeholders in the automotive parts supply chain, especially in light of the ongoing and increasing recall campaigns. In the coming weeks, ARA staff will be following up on the relationships that ARA members initiated and cultivated during these events.” ARA www.a-r-a.org

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Scam Artist Felon Who Posed as Mobile Mechanic Released From Jail in TN A convicted felon from TN known for posing as a mobile mechanic is back on the streets. Jonathan Methany advertised his auto repair services on Craigslist. Rather than fixing people’s cars, he would steal them and sell them for scrap. Tiffany Wright and her family hired a mobile mechanic last year. He was supposed to fix the Hendersonville family’s SUV. “My husband gave him the keys to the truck plus $450,” Wright said.

The man they would later identify as Matheny disappeared with the money for the parts and their SUV. It was never found. Channel 4 soon heard from more victims of the same man. It turned out Matheny had a history of doing the same thing across several counties. Nashville Metro police tracked one victim’s vehicle to a salvage yard where Matheny had sold its parts for $369. “He’s just terrible,” said Jerry

Matheny, Jonathan Matheny’s father. “He will use and rip off anybody he can just to make a dollar.” Jerry Matheny has been watching Craigslist ads carefully after learning his son was recently released from jail. He wants potential victims to beware of a mobile mechanic with a scorpion tattoo on his neck. “You just try to keep him from hurting other people,” Jerry Matheny said. “That’s all you can do.”

Channel 4 was unable to determine if Jonathan Matheny ever went to court on charges in Sumner County, but he was sentenced last year in a Nashville case where he sold a man’s car for parts. Court records show that Jonathan Matheny was sentenced to two years for that crime. He got credit for the six weeks he served waiting for trial, but it’s not clear if he ever served the rest.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 49

South of the Square Collision in OH One of 375 Recognized for being in Top Five Percent in Customer Service by Mitchell by Stacey Phillips, Assistant Editor

South of the Square Collision, owned by Rick and Susan Stickland, recently received Mitchell’s 2014 AutocheX Premier Achiever Awards for exemplary customer service. The family-owned business, based in Ohio, was one of 375 collision repair facilities across North America that was honored. “This is an important measure for shops in helping to make sure they are delivering a good experience to their customers,” Jim O’Leary, Mitchell’s Vice President of Product Management, recently told Autobody News. The company’s 13th annual Premier Achiever Awards honored repairers that consistently earned customer satisfaction scores in the top five percent of their programs measured by AutocheX. “One really important part of Mitchell’s AutocheX program is having a baseline of the same data collected so that we can compare one shop’s results to another and one insurance company’s results to another so they can benchmark themselves against the industry,” he said. The Sticklands opened South of the Square Collision in Medina in November 1999. Their newest location in

North Ridgeville was opened in March 2013. There are 34 full-time employees between the two facilities. South of the Square Collision has been using AutocheX while on the

achieve a high level of satisfaction!” Mitchell, a provider of technology, connectivity and information solutions to the Property & Casualty claims and collision repair industries, conducted

Rick and Susan Stickland of South of the Square Collision in OH

DRP programs with Allstate, Farmers and Nationwide Insurance companies. “It’s a great tool to give feedback to us as business owners and our employees to see where we excel and sometimes where we may need some work,” said Susan. “CSI drives our business and it is our goal to be on top every year. We’re always excited to hear when we

the surveys by phone and on the web. O’Leary said, “There is one question that we believe is most indicative of the consumer’s experience with the repair; ‘Would you refer this shop to a friend or family member on a scale of one to 10?’” Based on the results of the surveys, Mitchell selected the award recipients,

which represent 41 states and provinces across the United States and Canada. They range in size from small, familyrun businesses to large consolidators. In addition to the recognition, the recipients receive a trophy, signage for their shops and access to a website that provides promotional materials and congratulatory messages from industry leaders. Nearly 4,000 Premier Achiever Awards have been presented since the program was launched in 2002. O’Leary said that 7,500 shops currently participate in AutoCheX. He said that some of the main advantages of the program include improved communication and loyalty with customers as well as maximizing repeat and referral business. “The benefit is providing them with very actionable, timely feedback that helps them to improve their operations,” said O’Leary. “It’s also valuable to the shops to have an objective third-party measuring their results and then use those results to make a case for receiving more business from their insurance partners.” For more information about Mitchell and the AutocheX program, visit: www.mitchell.com

WIN Educational Conference May 4–6 in Baltimore

The Women’s Industry Network (WIN) announced the complete lineup of programming is now set for the 2015 Educational Conference Create and Cultivate, being held May 4–6 at the Baltimore Waterfront Marriott. The schedule of presenters includes some inspiring leaders from around the collision repair industry who have powerful messages to share. Building on Mike Anderson’s keynote address, Choosing Your Destiny, the mainstage program schedule includes: ● Change Makes Me Happy… Or is it the Other Way Around? by Paul Gange, Fix Auto USA ● The Sustainable Competitive Advantage by Jeff Peevy of I-CAR ● What the Future Holds for Our Industry by Susanna Gotsch, CCC Information Services Inc. ● Connected Cars/Connected Claims by Sean Carey of SCG Management Consultants LLC ● Time Management – There’s No Such Thing by Ruth Weniger of Powerful Business Strategies, LLC In addition to these topics, breakout sessions will include: ● Reality Marketing facilitated by Cheryl Senko of Cherly Senko Consulting ● Bridging Silos: Using Marketing

Concepts to Attract, Retain and Grow Talent facilitated by Sandra Herron of MiddleEdge Consulting ● Feedback: Giving and Receiving facilitated by Marianne Godwin & Natalie Lindsey, Mitchell International. “We are extemely proud of the program that has been assembled for the 2015 Educational Conference,” said Jessica Rob, co-chair of the WIN Conference Planning Committee. “This year’s program not only focuses on topics that are most requested by our members, but also showcases a diverse and talented group of individuals from within the collision repair industry.” Rounding out the three days of education will be the celebration of the 2015 Most Influential Women honorees, the Annual Scholarship Walk raising funds for the WIN Scholarship Fund, and the Annual Membership Meeting. Visit http://thewomensindustry network.ning.com/page/2015-confe rence or contact Jessica Rob at jessica.rob@akzonobel.com or Yolanda Sandor at yolanda.sandor @basf.com.

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Spanesi Expands Operations in IL and Hires Tom McGee as Business Development Manager

After opening operations in Illinois two years ago, Spanesi Americas recently announced that they have doubled both their warehouse and training space. The expansion project also includes an addition to their existing office building as well as the dock and loading area.

Spanesi Americas recently doubled their warehouse and training space in Illinois

Tim Morgan, Managing Director for Spanesi Americas, said the expansion is a result of an overwhelming response to the company’s products. Morgan began consulting for the company in 2012 and set up their North and South American operations in October of that year. “When I started this project I knew the products Spanesi had to offer were what the US and Canadian collision repair markets were looking for and the response has been extraordinary,” said Morgan. “This has allowed us to be able to expand our facility in

such a short time to meet the needs of our customers.” The family-owned equipment company is based in the small town Padova, Italy near Venice. Spanesi’s product lines are manufactured in Italy and include: Straightening Benches, Multibenches, Touch Electronic Systems, Vacuum Systems, Welding Machines, Infrared Lamps, Lifts, Painting Tools, Spray Booth Equipment, and Manual, Pneumatic, Electric and Hydraulic Tools. The Illinois facility will now have a dedicated warehouse space to store parts for spray booths and measuring systems as well as a single area for product training. Another recent development at Spanesi is the hiring of Tom McGee as Business Development Manager. “Tom’s experience in the collision repair industry will be extremely valuable to our group as we continue to grow and provide exceptional products and service to our customers,” said Morgan. McGee has more than 30 years of experience in the collision repair industry. This includes Collision Director for Automotive Training Institute, Collision Industry Relations Manager for ALLDATA, and nearly 18 years at I-CAR where he held a variety of posi-

tions including President & CEO and Technical Director. McGee graduated from Ferris State College in Big Rapids, MI, and is an ASE Certified Master Auto Body & Paint Technician and Collision Repair Estimator. McGee, a recognized industry speaker, was also elected into the Collision Industry Hall of Eagles in 2001. “I am very excited to join the Spanesi team,” said McGee. “I have been very impressed with how the Spanesi product line is designed to repair the latest vehicle technology. It is exciting to join an organiTom McGee was zation that has hired as Business such a strong focus Development on the technician Manager at and deploys its reSpanesi search and development to make their jobs easier.” Morgan said Spanesi Americas’ mission is to bring new products and technologies to body shops in the Americas to enable technicians to perform repairs to a high standard of excellence. “The unique feature of Spanesi over

the competitors is that we have our own body shop,” said Morgan. “We offer a full solution for the complete body shop.” Owner Orazio Spanesi started in the collision repair industry when he was 14 years old and in 1969 he opened his own body shop. In 1989, he decided he wanted to try and make better equipment so he traveled the world to find out what was available. “Everything that we design, we design it with the technicians in mind,” said Morgan. “It’s tested by technicians long before it ends up in the hands of end users.” Over the years even as the vehicles have evolved, the majority of what we’ve had in place for years is still the same way, especially with our universal fixturing system, that has been around since 1991. Morgan said with the company’s focus on products that are growing fastest in the market, Spanesi expects to increase overall shipment capacity by nearly 20%, while adding approximately 35 jobs in North America. The company has also increased inventory to enhance their delivery system. For more details, contact Timothy Morgan, 1.224.SPANESI (772.6374) tmorgan@spanesi-americas.com, www.SPANESI.com.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 51

National Auto Body Council Donates Nearly $3 Million in Recycled Rides™ Vehicles

Members of the National Auto Body Council (NABC) teamed up in 2014 to donate nearly $3 million in refurbished vehicles, positively changing the lives of 200 individuals and their families through the organization’s Recycled Rides™ program. Progressive Insurance led the effort in 2014, partnering with NABC shops across the country to donate vehicles to 117 military service members and veterans. GEICO, Allstate, State Farm, Esurance, Farmers and Insurance Auto Auctions each donated at least 10 vehicles, with the additional vehicle contributions from Hertz, Enterprise Rent-a-Car and Copart. Caliber Collision team members led the effort on the repairer side, volunteering personal time to refurbish 20 Recycled Rides vehicles. Service King, CARSTAR, ABRA Auto Body & Glass, Gerber Collision & Glass, the Van Tuyl Group and many more independent body shops all contributed to the success of the 2014 Recycled Rides effort. A future generation of collision repair professionals also had the opportunity to participate in community service projects through the Recycled Rides program while learning their craft at

Miller’s Optimized Welding System for AL Repairs

The new Millermatic® 350P auto body aluminum repair system provides all the equipment, from the power source to the gun and wire, to make quality aluminum auto body repairs. Miller Electric Mfg. Co. has introduced the new Millermatic® 350P auto body aluminum repair system. The company said it was designed to provide high weld quality and simplify repairs on aluminum auto body panels and beds, such as found in the 2015 Ford F-150 truck. It was also created specifically to address the challenges posed by welding thin gauge aluminum, such as warping, distortion and burn-through. It builds on the Miller® Millermatic 350P MIG power source and can also be used to Pulse weld with silicon bronze, steel and stainless steel wires. Miller aimed to simplify the process of aluminum welding, particularly for welding operators who may not be as familiar with this material or the challenges it can pose. The Millermatic 350P system features the components necessary to meet the specifications set forth by Ford and the Assurance Performance Network for completing weld repairs on the Ford F-150 aluminum-body truck. For more, visit www.MillerWelds.com.

Washburn Institute of Technology, Manhattan Area Technical College, Western Nevada College, Pennsylvania College of Technology, and Technical College High School–Brandywine. “Recycled Rides is a life-changing experience not just for the recipients but for everyone who participated and contributed to the event,” said Nick Notte, NABC Chairman. “We are very proud that through Recycled Rides, members of the National Auto Body Council are able to make an impact in their local communities as well as showcase the professionalism and integrity of our collision industry.” According to Rick Tuuri, NABC’s Recycled Rides Program Chair, the momentum and successful efforts from Recycled Rides in 2014 have carried through into 2015. To date, 79 Recycled Rides vehicles have already been donated or are in the process of completion. Chuck Sulkala, NABC Executive Director, urged industry members to step up in 2015 to donate more vehicles and sign up to host Recycled Rides events. “We have many more yet unfulfilled requests from nonprofit organizations seeking transportation on behalf of their clients,” said Sulkala. “Our in-

Assured Performance Hires Michael Quinn as Exec. VP

Assured Performance announced on April 6 the appointment of Michael Quinn as Executive Vice President. Quinn will assume responsibility for the general business operations at Assured Performance including sales, marketing, and business development. Quinn has more than 25 years industry experience. He cofounded a 7-shop collision repair business in Arizona & Nevada. Quinn worked for Caliber Collision for 2 years before assuming the role of President at UParts Inc. Quinn served as Collision Industry Conference (CIC) Chairman for two years (2010- 2011) after having led several of its committees. He has also been an active board member on the National Auto Body Council (NABC) for more than 11 years. There he chaired the Katrina Relief program to serve those displaced by hurricanes Katrina & Rita. Quinn also initiated and chaired the Recycled Rides and the First Responder Emergency Extrication (FREE) programs. Quinn is the recipient of numerous industry awards, including the Hall of Eagles, NABC Pride Award, and ASA/SCRS Humanitarian award.

52 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

dustry is in the unique position to make a difference in the lives of these individuals by providing reliable transportation so they find and maintain jobs, take care of their families, and rebuild their lives.” The National Auto body Council’s mission is to develop, implement and promote community-based initiatives that exemplify the professionalism and integrity of the collision repair industry. In addition to Recycled Rides, the National Auto Body Council’s community initiatives include:

● First Responder Emergency Extrication—One-of-a-kind vehicle extrication program that provides local firefighters and/or first responders with the opportunity to practice hands-on, life-saving techniques on late model vehicles and the challenges they present from advanced metals to multiple restraint systems.

● Distracted Driving Initiative –NABC partners with national organizations, such as AT&T on the “It Can Wait” campaign, to provide resources to implement local community efforts that help save lives by educating drivers of all ages about the dangers of inattentive and distracted driving.

Progressive Plans to Charge Risky Snapshot Drivers More

Progressive Corp., the fourth-largest U.S. auto insurer, said it will begin increasing rates for some risky customers who participate in a program that allows the company to electronically monitor driving habits. The decision to lift premiums is a shift for Mayfield Village, Ohio-based Progressive, which previously highlighted how customers can agree to a rate and then win discounts for safe behavior. Its Snapshot program rewards customers who drive fewer miles, avoid hard braking and minimize travel from midnight to 4 a.m., according to the company’s website. “In our new program that we just began to roll out, we are affording more customers discounts for their good driving behavior while for the first time, increasing rates for a small number of drivers whose driving behavior justifies such rates,” the company said in its annual report this month. Chief Executive Officer Glenn Renwick has said Snapshot could help the company encourage safer behavior and retain the most valuable customers. He has lamented the reluctance of some potential customers to sign up for the offering.

Chief Names Richard Perry OEM Liason Sales Manager

Chief Automotive Technologies has named Richard Perry OEM and strategic account sales manager. Perry previously served as global repair product manager for Chief, and has been with the company since 1996. In his new role, Perry will work side-by-side with OEM engineers to ensure Chief collision repair products work properly with the next generation of vehicles. He will provide OEMs with input about proper collision repair procedures, while also leveraging his knowledge of new vehicle design to grow the Chief product line. Perry will help introduce new collision repair products, technologies and procedures to other key customers. He will continue to serve on the I-CAR International Board of Directors, act as a collision advisor for SkillsUSA, and represent Chief at Collision Industry Conference (CIC) and National Automotive Technicians Education Foundation (NATEF) meetings. “I am excited to have someone of Richard’s caliber on the Chief sales team,” says Bob Holland, director of collision in North and South America for Chief parent company Vehicle Service Group (VSG).

PartsTrader Says Integration to Help Dealers Quote Parts

PartsTrader® has announced that an integration project is in development with DMI Inc., a business unit of CDK Global. The integration is designed to help OEM automobile dealers more efficiently respond to quote requests from collision repair shops. When responding to a quote request PartsTrader will automatically update inventory information and pricing from the dealers own Dealer Management System (DMS). This information will be displayed on the PartsTrader quoting screen so that dealers no longer have to access multiple systems to quote accurately. Prices will be updated automatically based on the dealers settings and allow dealers to better understand the profitability on a part by part basis. For repair shops requesting a quote, the response from dealers using the DMI data services platform will be faster, and have greater accuracy in its quote components. More accurate pricing during the estimating process will reduce estimate supplements benefiting both repairers and insurers. “With this integration with the DMI platform, PartsTrader continues to streamline the quoting process on both sides of the buyer and seller relationship,” said Dale Sailer, VP.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 53

Florida Legislature Passes HB 273, Allows Policyholders to Receive Insurance Docs Via Email The Florida Legislature has passed House Bill 273, which allows policyholders to receive insurance documents via email as opposed to regular mail delivery if they choose that option. The bill now goes to Gov. Rick Scott for his signature. If he signs the

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