May 2020 Southeast Edition by Autobody News

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Trump, Congress Agree on New Stimulus Package by Dan McCaleb, The Center Square

President Donald Trump and congressional leaders have agreed on a new, nearly $500 billion stimulus package to help small businesses im-

pacted by stay-at-home orders in response to the COVID-19 pandemic. The $484 billion deal includes $310 billion for the Paycheck Protection Program so businesses can continue paying employees. It also includes an additional $60 billion for a small business emergency grant and loan program, $75 billion for hospitals and $25 billion for a new coronavirus testing program. “I urge the Senate and House to pass the Paycheck Protection Program and Health Care Enhancement Act with additional funding for PPP, Hospitals, and Testing,” Trump wrote See New Stimulus Package, Page 3

Small Business Task Force Proposes Initial Plans to ‘Reopen Alabama Responsibly’ by Robert S. Ellerbrock III, Sierra J. Gray and David Carl Williams Jr., Ogletree Deakins

The Alabama Small Business Commission Emergency Task Force and the Subcommittee to Reopen the Economy on April 17 released “Reopen Alabama Responsibly,” a detailed report and series of recommendations on resuming business operations during the next stage of the fight against the coronavirus and COVID-19 pandemic. The subcommittee has released its “Phase One” recommendations for specific industries. The recommendations, which have been sent to

Gov. Kay Ivey for consideration, are intended to guide Alabama’s small business owners in implementing measures that align with the economic and health interests of the state “to balance both reduction in the spread of COVID-19 and an increase in economic activity.” Many of the safety measures recommended by the task force and subcommittee are similar across industries, such as: • Monitoring the health of employees and sending home any employee who See Reopen Alabama, Page 20

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Governor’s Task Force in Florida To Make Recommendations to Reopen Executives from a range of industries offered suggestions for how to end Florida’s statewide lockdown safely during a meeting of the governor’s Re-Open Florida Task Force. The first meeting of the Re-Open Florida Task Force did not include discussion about the health risks of returning people to work and the extensive testing requirements needed before returning people to normal life. The 90-minute meeting April 17 of the group led by Gov. Ron DeSantis and the Florida Chamber of Commerce focused on statistics about the state economy and business leaders

thanking DeSantis for his “thoughtful,” “decisive” and “proactive” leadership. When to lift the shutdown is still the subject of intense debate, with health professionals warning that reopening too quickly — and without proper testing and other public health measures in place — could lead to another wave of infections and deaths. Priority was given to the corporate-backed Chamber of Commerce, which advocated heavily for DeSantis not to shut down the state last month. Chamber CEO Mark WilSee Governor’s Task Force, Page 12

Most Shops Weathering The Storm – So Far by Gary Ledoux

On April 17, 18, and 19, Autobody News used its 19,000 shop email subscribers and also social media channels to conduct a survey of collision shops across the country to see how they were coping with the COVID 19 pandemic. The majority of shops responding were independently owned singe-point shops, those perhaps the most vulnerable to volatile market swings. Despite that, and a wide range of available work, (most shops operating at 25% to 75% capacity) most seem to be faring reasonably well. The majority of shops (59%) have not laid off any workers although 21% have laid off three-quarters of their people. Most shops have taken a number of precautions to protect employees and customers including use of gloves and masks, frequent hand-washing, etc. It is surmised that not many shops think the pandemic situation will last very long because only 19% have taken on work other than traditional collision repair.

The majority of shops have applied for financial assistance through the government’s CARES Act but have not received their funds yet. The sad truth is, those funds may never come because as of this writing, the funds have been exhausted. There are, however, other measures being debated to replenish the program (see related stories.) Wayne Stevens, owner of Stevens Collision in western New York is a single-point shop, certified with FCA, Hyundai, and Kia but with no DRP arrangements. At present he hasn’t laid-off any employees because he has a two-week backlog of work. He says, “My father always told me, ‘Take care of the people that come through your door, no matter what they want, and you’ll build your business.’” Doug Hassell owns Hassell Auto Body on Long Island in New York, another single-point shop that has been in business since 1963, and has enough work to stay busy—so far. The shop has no DRP arrangements and no dealer relationships although they See Body Shop Survey, Page 16

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Continued from Cover

CONTENTS CCA Meets in Mooresville Before Social Distancing Takes Effect ��6 Governor’s Task Force in Florida To Make Recommendations to Reopen ��1 Memphis Auto Repair Business to Deliver 950K Masks to Aid First Responders During Outbreak ��10 Memphis Auto Repair Shops are ‘Essential’ Businesses ��12 Small Business Task Force Proposes Initial Plans to ‘Reopen Alabama Responsibly’ ��1 TN Car Dealership Staying Open Amid Pandemic ��10 VA Car Dealerships Making Adjustments to Remain Open Amid COVID-19 Pandemic ��12

Business Leaders Share Thoughts About Collision Industry Pandemic and Recovery ��22 Coronavirus Has Dealerships Moving to Online Sales—and Car Buying May Never be the Same ��44 Detroit 3 Gain Big Market Share as COVID-19 Infects Sales, April Looks Worse ��14 First Funding for Small-Business Loans Depleted, Second Round Just Approved ��42 Ford Tests Social-Distancing Wearables ��47 GEICO, Farmers, Liberty Mutual Join Insurers Giving Breaks to Drivers, Businesses ��8 Is COVID-19 Accelerating An Industry Disruptor? ��18 Most Shops Weathering The Storm – So Far ��1 New Carvana Customers Can Delay Payments

COLUMNISTS Anderson - Now More Than Ever, Shops Need to Renew Their Focus on ‘Capture Rate’ ��26 Chess - A Quick Course on Primers ��33 Yoswick - Shops Cautioned Tough Economy Could Spur More Counterfeit Parts, Pirated Software ��30

Up to 90 Days ��12 New COVID-19 Programs Focus on Service Departments ��46 Shops Using Downtime Advantageously During COVID-19 Crisis ��28 Subaru Releases Statement on Pre- and Post-Scanning of Collision Vehicles ��4 Tesla’s Ventilator is Using a Model 3

NATIONAL Auto Glass Industry Responds to Those in Need ��20 AutoNation to Lay Off 7K Employees, Cut Costs Deeply ��32 Autonomous Shuttles Assist in Transporting COVID-19 Tests ��11

on Twitter Tuesday. “We have a deal, and I believe we will pass it today,” Senate Minority Leader Chuck Schumer told CNN. The U.S. Chamber of Commerce heralded the news in a statement. “We applaud congressional leaders and the administration for reaching a deal to increase desperately

Touchscreen and Other Car Parts ��4 Trump, Congress Agree on New Stimulus Package ��1 Used-Car Sales: Tracking the Good, the Bad & the Options ��44 Why You Should Keep Advertising During a Major Market Downturn ��47

INDEX OF ADVERTISERS

REGIONAL

New Stimulus Package

needed funding to support America’s small businesses during this difficult time,” said Neil Bradley, executive vice president and chief policy officer, U.S. Chamber of Commerce. “Every hour of every day, small businesses across the country are being forced to make difficult decisions due to the significant revenue disruptions caused by the coronavirus.” We thank The Center Square for reprint permission.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano, Andrew Staicer (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

Serving Florida, Georgia, Alabama, Mississippi, Virginia, West 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. ©2020 Adamantine Media LLC.

American Icon Automotive Finishes �� 12

Hyundai Wholesale Parts Dealers �� 43

Athens Dodge-Chrysler-Jeep-Ram �� 19

Innovative Tools & Technologies �� 29

Audi Wholesale Parts Dealers �� 41

Jim Cogdill Chrysler-Dodge-Jeep-Ram �� 10

AutoNation Ford-Lincoln �� 20

John Heister Automotive �� 22

BMW Wholesale Parts Dealers �� 43

Kia Motors America, Inc �� 13

Car-Part.com �� 16

Kia Motors Wholesale Parts Dealers �� 45

Certified Automotive Parts Association �� 14

Malco �� 6

Charlotte’s Premier Wholesale Parts Source �� 35

Mercedes-Benz Wholesale Parts Dealers �� 42

City Kia of Greater Orlando �� 30

MINI of Charleston �� 36

Classifieds �� 46

MINI Wholesale Parts Dealers �� 43

Coggin Deland Honda �� 33

Montipower Americas, Inc. �� 17

Dale Earnhardt Jr. Chevrolet �� 39

MOPAR Wholesale Parts Dealers �� 31

Eagle Abrasives, Inc �� 5

NOROO Paint & Coatings. �� 48

Equalizer Industries, Inc. �� 8

PPG Refinish �� 9

Ford Wholesale Parts Dealers �� 42

Precision Body & Paint �� 18

GM Wholesale Parts Dealers �� 47

Radley Chevrolet �� 38

Grieco Ford of Fort Lauderdlae �� 32

Rick Hendrick Chevrolet Naples �� 30

Gus Machado Ford �� 26

Riverside Ford-Lincoln �� 28

Haldon Company �� 21

SATA Dan-Am Company �� 2

Hendrick Automotive Group �� 37

Southern Polyurethanes, Inc �� 15

Hendrick BMW/MINI �� 7

Southside Kia �� 34

Hendrick Honda Pompano Beach �� 39

Spanesi Americas �� 11

Hendrick Kia Cary �� 27

Subaru Wholesale Parts Dealers �� 40

Hendrick Kia Concord �� 27

Tameron Hyundai �� 38

Hendrick Volvo Cars of Charleston �� 36

Volkswagen Wholesale Parts Dealers �� 44

Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Honda-Acura Wholesale Parts Dealers �23, 24-25

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Tesla’s Ventilator is Using a Model 3 Touchscreen and Other Car Parts by Joey Klender, Teslarati

Tesla released a video highlighting the company’s ventilator manufacturing process, which incorporates parts from its all-electric vehicles.

The video update was shared via Twitter on April 5, and shows a group of masked Tesla employees, including VP of Vehicle Engineering Lars Moravy, working in an engineering lab. Company Engineering Director Joe Mardall outlined the company’s current process of development for the ventilators, which consists of a design using Tesla car parts. The use of parts has allowed Tesla to develop machines that can assist patients in breathing while infected with the virus, while not taking away from the amount of actual ventilator parts that exist right now. The ventilator prototype uses a hospital-grade air supply system that

feeds into a mixing chamber. This combines air and oxygen to create breathable air. The air then is pressurized and fed into tubes, providing a patient with air, which alleviates their breathing issues. COVID-19 is primarily a respiratory virus that attacks a patient's lungs and breathing patterns. Ventilators also have screens that provide medical professionals with information like tidal volume

ﬂow and volume. The shortage of ventilators across the U.S. is due to a low availability of the machines. Medtronic CEO Omar Ishrak said his company has quadrupled the production of ventilators to combat the shortage. While this increased production rate has helped provide hospitals in need with additional machines, there is still a massive shortage of ventilators.

per breath, respiratory rate (usually set by a doctor to give a patient the proper amount of breathable air), and oxygen concentration. These ﬁgures will be displayed on a Model 3 dash screen powered by the vehicle’s infotainment computer and will show air pressure, air-

Tesla plans to build its in-house breathing apparatuses with car parts as a strategy to “help out the medical industry without taking away from their supply.” Mardall said in the video Tesla’s reliable car parts could help solve the shortage of ventilators, as they

are readily available and produced in high volume. As ventilators remain a rarity in some locations of the world, Tesla’s influx of available car parts could solve a big part of the coronavirus issue, as there seems to be no ceiling on how many machines the company will be able to produce. Tesla made plans to help with the production of ventilators in late March after CEO Elon Musk said he had a conversation with Medtronic’s engineering team. Tesla’s team of engineers found their company’s vehicle parts were more than capable of being used in ventilators. After Medtronic’s first Tesla-purchased ventilators arrived in New York City on April 3, the company has shifted its focus to ventilators. Vehicle production has shut down at the company’s Fremont, CA, facility and Tesla’s engineering team has turned its focus to the health care field. Its preparation of the first Tesla ventilator prototype is evidently well under way. We thank Teslarati for reprint permission.

Subaru Releases Statement on Pre- and Post-Scanning of Collision Vehicles With each new model, Subaru of America, Inc., makes advancements in technology that assist in the operation and safety of our vehicles. These advancements incorporate different sensors, cameras and control units, as well as other components, to assist with the functionality of the vehicle. They are a critical part of vehicle operation and the safety features in each Subaru vehicle. In the event of a collision, these components could incur damage, which may trigger diagnostic trouble codes (DTC), but may not be evident via a warning light on the instrument cluster. Subaru defines a collision as damage that exceeds minor outer body panel cosmetic distortion. During collision repairs, it is critical the proper function of these systems and features be restored back to pre-accident condition and performance. If these components are not evaluated, it could have a direct effect on vehicle operation and safety. For Subaru vehicles from model year 2004 and forward involved in a collision, Subaru collision repair procedure requires pre-repair scanning be performed.

Pre-scanning will reveal DTCs for items not functioning properly in the vehicle. It allows a shop to identify any issues early in the estimate process, allowing a more complete estimate and encompassing repair process. Additionally, Subaru collision repair procedure also requires post-repair scanning be performed on these vehicles. Post-scanning is critical in ensuring the malfunctioning items have been repaired and there are no remaining DTCs. It may also assist in assuring the appropriate calibrations and reinitializations have been performed. To accurately determine whether DTCs are present in a vehicle, Subaru recommends the use of the Subaru SSM4 diagnostic tool. Information regarding the purchase of the Subaru SSM4 diagnostic software application and Denso DST-i interface device can be found in the Subaru Technical Information System (STIS) at https://techinfo.subaru. com/Information/Special Tool Information. If a Subaru SSM4 diagnostic tool is not available, Subaru recommends the use of an asTechTM device. The asTechTM device per-

forms a diagnostic scan remotely using a genuine Subaru scan tool. Information regarding the purchase of the asTechTM tool can be found at https://astech.com/. Subaru does not recommend the use of a generic scanning device as we cannot guarantee the content or accuracy. Always refer to the applicable Subaru Service Manual or Technical Service Bulletin (TSB) for the most up-to-date repair procedures. Some safety and driver assistive systems will require inspections, calibration and/or aiming after collision or other body repairs. Any time a collision repair is performed, always refer to the appropriate Body Repair Manual and Service Manual for the most up-todate repair procedures. All Subaru technical information including Body Repair Manuals, Service Manuals, TSBs and more are available for purchase in STIS at https://techinfo.subaru.com>Log in/ My Account > Purchase a Subscription. Subscription options are listed on the site. If a collision repair is necessary, Subaru strongly recommends any repairs be performed by a Subaru Cer-

tified Collision Center using Subaru Genuine Parts designated for use in the specific Subaru vehicle being repaired, including all mechanical and electrical parts, body panels and structural components. Subaru Genuine Parts are manufactured to the same specifications and tolerances as the parts installed on factory new Subaru models. The use of Subaru Genuine Parts will help ensure the vehicle is restored back to its original pre-collision condition. The use of non-OEM components that may not be manufactured to the same specifications or tolerances as Subaru Genuine Parts could compromise occupant safety in a subsequent collision. The use of any aftermarket or substitute structural, body, mechanical or electrical repair parts is not covered under the Subaru of America, Inc., limited warranty, replacement parts limited warranty or Subaru Added Security (SAS) agreements or contracts. Subaru of America, Inc., is not responsible for any resultant damage caused by the use and/or installation of any aftermarket substitute part(s). Source: Subaru of America, Inc.

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CCA Meets in Mooresville Before Social Distancing Takes Effect by Chasidy Rae Sisk

During its last meeting before social distancing became the buzzword of 2020, the Carolinas Collision Association gathered March 5 at Carolina Collision Equipment in Mooresville, NC. According to CCA President Brian Davies, the meeting “continued the association’s success in assembling as a group, utilizing the training and resources of the members and advancing the knowledge in the industry as a whole. Several terrific presentations were given that evening.” “The purpose of this event was to offer members and vendors an opportunity to share the projects and tools they have been working on and using, in hopes of providing resources for the rest of the association to utilize for their benefit,” Davies said. “With this in mind, CCA provided Podium, K&M Collision and SnapOn a platform to introduce and explain their software to members and potential customers.” Davies began the meeting by discussing the past year in review

as well as the association’s plans for this upcoming year. Then, Podium’s Ryan Palmer provided an informative demonstration of Podium’s application and services. Next, Michael Bradshaw of K&M Collision shared information on SCRS’s Blueprint Optimization Tool. Davies said the tool provides collision repair shops with an easyto-use estimate analysis tool. “The application aids in the repair planning process, and scans estimates for potential overlooked labor operations, line items and customizable charges; Michael delved deeper into the purpose, background and practical use of the tool,” Davies said. The last presentation of the Mooresville meeting, sponsored by Larry Brolsma of Carolina Collision Equipment, featured Ray Racine from Snap-On. Racine discussed ADAS technology and calibrations, as well as the Snap-On solution to these industry concerns. “Ray did a great job explaining the purpose and functionality of the system, and he provided thorough responses to the questions asked be-

fore finishing with a detailed demonstration of Snap-On’s product,” said CCA Executive Director Josh Kent.

CCA Executive Director Josh Kent addresses attendees. Credit: CCA

“Attendees seemed to greatly enjoy the presentations given, as they offered insight into very relevant parts of the industry,” Davies said. “With all the new, advanced technology being put into cars, any information related to ADAS is incredibly useful, and applications, such as Podium and SCRS’s Blueprint Optimization Tool, provide shops resources to improve their operations.” “This event met the expectations CCA has for a planned event;

there was a solid attendance, speakers gave great presentations and the crowd was very respectful and attentive,” Kent added. “We also added a new member to the association at this event which is always a cause for excitement!” CCA is grateful to event sponsors, including Carolina Collision Equipment, Podium, Axalta, PPG, Finishmaster, Kemperle, W&M Sales & Services, Lombard Equipment, Sherwin-Williams, Enterprise and Professional Maintenance & Equipment. “By keeping all members up to date on the advancement of technology in the market, the industry as a whole works towards safer repairs for customers and easier repairs and processes for shops,” Kent said of CCA’s role in providing educationasl opportunities for member and non-member shops in the market. “Secondly, we create a dialogue between shops to strive towards common goals and help each other achieve success.” For more information on CCA, visit carolinascollisionassociation.com.

6 MAY 2020 AUTOBODY NEWS / autobodynews.com

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GEICO, Farmers, Liberty Mutual Join Insurers Giving Breaks to Drivers, Businesses More auto insureds and small businesses are getting a break on their insurance premiums to help them through the coronavirus crisis. Auto insurer GEICO said it will give back approximately $2.5 billion in the form of a 15% credit to its auto and motorcycle customers as their policy comes up for renewal between April 8 and Oct. 7. The credit will also apply to any new policies purchased during this period. Farmers Insurance is giving a 20% discount to more than 115,000 of its business insurance customers. Liberty Mutual is refunding 15% of premium for two months to personal auto insurance customers. GEICO’s average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle. This means GEICO expects credits to average about $150 per auto policy and $30 per motorcycle policy. The company estimates the benefit to its 18 million auto and 1 million motorcycle customers will be approximately $2.5 billion. GEICO, the second largest auto insurer in the U.S., joins a growing list of insurers offering discounts to help customers during the coronavirus crisis, a time when insureds are driving less and there are fewer accidents. “This ongoing crisis has widespread effects that will linger. That is why we wanted to give this credit for at least six months,” said GEICO President and CEO Todd Combs. “Our customers have been loyal, and we are committed to doing all we can to help them.” Last month, GEICO announced it was pausing cancellations of coverage due to non-payment and policy expiration through at least April 30. Beyond that, the company has committed to offering maximum flexibility to policyholders who need special payment options, as well as transitioning nearly all of its associates to work from home to continue providing the 24/7 service it is known for. Business Relief Drivers are not alone in getting some insurance premium relief. With many small businesses struggling as a result of stay-at-home orders, Farmers Insurance announced it will provide relief to more than 115,000 of its business insurance customers. Farmers’ business customers in

the restaurant, office, retail and service sectors across the country will receive a 20% monthly credit on their Business Owners Policy (BOP) for the next two months on their upcoming premium notices.“We understand how challenging running a business can be, particularly in these extraordinary times, and we want our business insurance customers to know Farmers cares and we want to help,” said Sharon Fernandez, president of business insurance for Farmers. This 20% monthly credit to their BOP policies is on top of other measures the insurer has already taken to help business insurance customers, including temporarily pausing policy cancellations due to non-payment, through May 1. Additionally, for all business insurance customers, Farmers is allowing extra time for business insurance customers to pay for their policies. Current GEICO customers can expect to see the discount when they renew. The insurer said customers do not need to take any action to receive this credit. Similarly, Farmers said restaurant, office, retail and service business insurance customers will see the credit effective on their policy automatically.

through at least May 22. The Boston-based insurer has also expanded all personal auto policies to cover customers who use their personal vehicles to deliver food and medicine. Standard Safeco personal auto policies typically exclude such coverage. This additional protection is in effect for all personal auto policies in all states for losses occurring from March 16 to May 22, and reported by July 1. AmFam and Allstate Earlier this week, American Family Insurance said it will return approximately $200 million to its auto insurance customers. The premium relief will come in the form of a one-time full payment of $50 per vehicle covered by an American Family personal auto policy. The typical American Family household with auto coverage has two vehicles, meaning the average relief check will be $100. American Family expects to complete the distribution of all 2.3 million checks within 60 days. Also this week, Allstate announced its Allstate, Esurance and Encompass personal auto in-

surance customers will receive a premium credit of 15% of their monthly premium in April and May, totaling more than $600 million. Customers will receive the money back through a credit to their bank account, credit card or Allstate account. Allstate said its telematics data shows that people are driving between 35% and 50% fewer miles in most states. Digital commercial lines insurer Next Insurance is cutting April premiums by 25% for its customers with general liability, professional liability and commercial auto policies. The company’s founder and CEO, Guy Goldstein, said he is challenging other insurers to do the same. This 25% reduction applies to those who pay monthly or paid their full annual premium up front and who purchased coverage before March 1. The discount is subject to state regulatory approval. As of April 4, the company said 38 states have approved it. State Farm and Progressive Corp. have said they are also considering steps to provide premium relief. We thank Insurance Journal for reprint permission.

Liberty Mutual Liberty Mutual Insurance is giving personal auto insurance customers a 15% refund on two months of their annual premium. This returns approximately $250 million to Liberty Mutual and Safeco personal auto insurance customers and builds on other customer support, including flexible payment options and delivery coverage expansion for auto policies. “Today, more than ever, we recognize the uncertainty and financial challenges our customers are facing,” said Liberty Mutual Chairman and CEO David Long. Personal auto insurance customers will receive a 15% refund on two months of their annual auto premium as of April 7, pending regulatory approval. The refunds will begin in April and will be issued either by check or in the manner the customer made their most recent payment. The payments will happen automatically. Liberty Mutual has also halted late fee charges and cancellations due to non-payment for personal auto and home customers from March 23

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Memphis Auto Repair Business to Deliver 950K Masks to Aid First Responders During Outbreak by Kelly Roberts, WMC News

The City of Memphis and hospitals are getting thousands of masks for first responders thanks to the help of a local auto body shop. The auto body work at Perfection Auto Refinish is about a third of what it usually is all because of this global pandemic. The staff there is repurposing their duties. Many workers are now delivering masks to first responders in Memphis. “The auto collision industry is supposed to be a recession-proof industry. This is an exception,” Perfection Auto Refinish Owner Jeff McCraw said. With a stay-at-home order in place, fewer people are driving and getting in wrecks, and that’s less business for hundreds of auto body repair shops in the Mid-South. Those at Perfection Auto Refinish said a chain of events made it possible for hundreds of thousands of surgical masks to make their way to them, and for the business to keep every worker on full time even with declining business.

First, an already-established vendor contract between Perfection Auto Refinish and the City of Memphis allowed the two entities to do business together. Then, an existing supply chain of masks allowed that partnership to go into full effect during a pandemic. “(The masks) will be going to various first line responders like firemen and policemen, as well as other public work employees like sanitation workers,” said McCraw’s business consultant, Rob Kabel. The city is buying more than 900,000 masks from Perfection Auto Refinish. Hundreds of thousands have already been delivered to those who need them, with Perfection Auto Refinish taking care of all the logistics. “We can palletize and warehouse these (masks) for the end users and get them to them on a per need basis,” McCraw said. With the Centers for Disease Control issuing more recommendations for people to wear masks outside, these masks are critical for essential employees reporting to work

every day. Those at Perfection Auto Refinish said it was a community effort to get these masks here for them. “The personnel at the city, Mayor Strickland has been personally involved, FedEx has helped us get this initial wave of masks in,” Kabel said. With a few hundred thousand masks still en route to Memphis, most of those 950,000 masks should be in the hands of those who need them by early next week. The City of Memphis’ Director of General Service Antonio Adams said Perfection Auto Refinish is one of seven local, traditionally non-medical companies helping the city get masks. Right now Memphis has an order of more than 2.75 million masks among those companies. Adams said the orders will be shared with Shelby County, Baptist Memorial Hospital and Methodist Le Bonheur Healthcare. The City of Memphis has spent more than $2 million on those masks. We thank WMC News for reprint permission.

TN Car Dealership Staying Open Amid Pandemic by News Channel 11 Staff

While a number of restaurants and stores have closed to prevent the spread of COVID-19, car dealerships are up and running in the midst of this pandemic. One local lot is doing their part in keeping their services available to the public. Champion Chevrolet in Johnson City, TN, told News Channel 11 they’re specifically focused on helping those who are working to keep the region healthy during this hard time. “We’re here to keep America rolling, the doctors, the nurses, the emergency services, anyone that’s crucial to keeping America rolling, we’re here to service their cars and keep them up and going,” said Tim Copenhaver, owner and operator of Champion Chevrolet. Services are still open to the entire public and special offers and deals are also being provided during this time. We thank News Channel 11 for reprint permission.

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Autonomous Shuttles Assist in Transporting COVID-19 Tests by Auto Remaketing staff

With health care resources and personnel stretched thin, Mayo Clinic in Florida is using autonomous vehicles to transport medical supplies and COVID-19 tests. The Jacksonville Transportation Authority has partnered with autonomous shuttle fleet service provider Beep and autonomous driving systems company NAVYA to use autonomous vehicles to safely transport COVID-19 tests collected at a drive-through testing location at Mayo Clinic in Florida. JTA CEO Nathaniel P. Ford Sr. called the deployment “a historic moment for the Jacksonville Transportation Authority.” “Along with our partners Beep, NAVYA and Mayo Clinic, we are leveraging our learnings from three years of testing autonomous vehicles through our Ultimate Urban Circulator program,” Ford said in a news release. “Our innovative team saw this as an opportunity to use technology to respond to this crisis in Northeast Florida and increase the safety of COVID-19 testing.” In full autonomous mode without attendants or other people onboard, up to four

autonomous vehicles began operating March 30 along an initial route to transport COVID-19 tests from a drive-through testing site to a processing laboratory on Mayo Clinic campus.

Credit: Mayo Clinic

The COVID-19 test samples are placed in secure containers before Mayo Clinic healthcare professionals load the samples onto the shuttle. “During a time of rapid change and uncertainty, the ability to think innovatively alongside the Jacksonville Transportation Authority, NAVYA and Beep during the pandemic has strengthened all of our teams through community collaboration,” said Kent Thielen, M.D., CEO of Mayo Clinic in Florida. “Using artificial intelligence enables us to protect staff from

exposure to this contagious virus by using cutting edge autonomous vehicle technology, and frees up staff time that can be dedicated to direct treatment and care for patients,” Thielen said. “We are grateful to JTA, Beep and NAVYA for their partnership in these challenging times.” To address the fluid developments of the COVID-19 pandemic, the JTA, Beep, NAVYA and Bestmile teams partnered to create, test and deploy the routes for the autonomous vehicles at Mayo Clinic in Florida. Bestmile is a fleet orchestration and optimization software company. The routes are isolated from pedestrians, traffic and staff. Beep, Mayo Clinic and the JTA say they will closely monitor the service from a mobile command center to maintain safe operation. “Mayo Clinic is known as a leader in innovation and technology for providing world-class healthcare services to their patients in so many important areas of medicine,” said Beep Inc. CEO Joe Moye. “It is both humbling and exciting to partner with them in bringing this innovative solution to support such a critical challenge facing our

country,” Moye said. “We are equally as proud to work with our partners at the JTA, NAVYA and Bestmile … in making this happen and doing our part to support this important cause.” Beep transported the shuttles through Eagle Express Inc. from Lake Nona, FL, an innovation hub 150 miles away, where the company is headquartered in Orlando. An additional shuttle is being operated from the JTA’s Ultimate Urban Circulator program. The JTA has actively tested autonomous vehicle technology since 2017 to prepare for a conversion and expansion of its Skyway automated people mover in downtown Jacksonville into a network powered by autonomous vehicles. “The opportunity to work together with these organizations in an effort to provide a dedicated COVID-19 testing solution represents our goal as a company, and that’s to create a more accessible solution in the moments that matter, whether that be crisis, shortage in manpower and resources or other areas we can provide aid in,” said NAVYA CEO Étienne Hermite. We thank Auto Remarketing for reprint permission.

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Continued from Cover

Governor’s Task Force son, the first speaker after DeSantis, spent 10 minutes talking about Florida’s pre-coronavirus economy and which jobs are most at risk during the shutdown. “If Florida was a nation, we would be the world’s 17th-largest economy,” Wilson said. “And our goal by 2030 is to be the 10th-largest economy, and we hope you’ll keep

that in mind as you think about your recommendations.” The task force members, who were not announced until the end of Monday’s teleconferenced meeting, include the state’s top elected Republicans and representatives from some of the state’s largest corporations and trade groups, including Disney, Lockheed Martin, Florida Power & Light, AT&T and the Florida Bankers Association. Tampa General Hospital President and CEO John Couris is on the task force, but no members are doctors.

Whether Florida has seen the worst of the coronavirus crisis is unclear. The number of new cases reported each day appears to have leveled off, but every day still brings a substantial number of new infections and deaths. The Florida Department of Health reported 27,869 coronavirus cases Tuesday evening — up 811 from the night before. Florida’s COVID-19 death toll went up by 44 overnight, to 867. The number of hospitalized COVID-19 patients now sits at 4,226.

New Carvana Customers Can Delay Payments Up to 90 Days by Auto Remarketing staff

Carvana’s rush of recent activities continued April 13 with the online used-vehicle retailer making a move to help buyers who just took delivery. The company announced it is now giving customers up to 90 days to make their first payment. Customers financing with Carvana are eligible to opt in to the payment extension option, as long as they complete their purchase by April 20.

“Carvana has always been a company intensely focused on doing the right thing for our customers, and in a time when many are feel-

ing the strain between needing safe transportation to an essential job and personal finances, we want customers to know we’re here for them,” Carvana founder and CEO Ernie

Garcia said in a news release. “Our hope is that those who simply can’t put a vehicle purchase on hold are able to get what they need quickly and easily, so they can keep moving,” Garcia added. The April 13 announcement arrived after Carvana landed up to $2 billion in origination funding from Ally Financial, rolled out its touchless delivery program and secured $600 million from investors. We thank Auto Remarketing for reprint permission.

Memphis Auto Repair Shops are ‘Essential’ Businesses Memphis, TN, Mayor Jim Strickland issued a “Safer at Home” order that forces all non-essential businesses in the city to close. FOX13 has compiled a list of the businesses considered essential and non-essential. Auto repair shops are on the list of essential businesses that may remain open but must adhere to social distancing requirements. For more information on the mayor’s executive order, visit the city’s website. https:// covid19.memphistn.gov/listing-of-essential-and-nonessential-services-3-23/ For the complete list of essential and non-essential businesses, see FOX13’s website. We thank FOX13 for reprint permission.

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VA Car Dealerships Making Adjustments to Remain Open Amid COVID-19 Pandemic by Daniel Grimes, WVIR News

As the coronavirus continues to spread, some elements of life will remain the same. Oil changes, wheel rotations and even buying a brand new car may all still be necessary tasks during the outbreak. Many car dealerships are adjusting their procedures. Carter Myers Automotive, with multiple locations in VA, is offering virtual test drives and tele-purchasing, including a threeday return policy at no charge.

“We’re offering to pick up and drop off for service for anyone who doesn’t feel comfortable coming in. We’re also doing a lot of sales deliveries,” said CEO Liza Borches. For anyone who does feel comfortable heading over to the facilities, the dealership is enhancing its cleaning and disinfecting procedures in all high touch areas. It is also offering hand sanitizers to all customers. We thank WVIR News for reprint permission.

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Detroit 3 Gain Big Market Share as COVID-19 Infects Sales, April Looks Worse by Henry Payne, The Detroit News

With March auto sales infected by the coronavirus, Detroit automakers are bracing for an unprecedented spring of empty showrooms as analysts predict 2020 sales could be down as much as 30% from forecasts. The U.S. industry’s first quarterly sales reports since the the COVID-19 crisis shut auto plants and many showrooms delivered declines for every automaker. Declines were particularly acute in the last week of March as 80% of the country—39 states—issued shelterin-place orders, resulting in sales declines of 61%, according to forecasting firm J.D. Power. New York City and Detroit were the hardest hit metro markets. Yet, even as Fiat Chrysler Automobiles NV reported sales declines of 10% for the first quarter of the year and General Motors Co. was off 7%, the Detroit Three were poised to weather the downturn better than their peers due to healthy pickup sales. Buoyed by truckloads of incentives, GM, FCA and Ford Motor Co. gained a whopping 11 points in U.S. market share thanks to their most profitable vehicles. Ford isn’t scheduled to release its detailed January-March sales numbers until April 2. The sales pain spread across all sectors of the automotive market. Toyota and Hyundai saw first quarter sales decelerate, with the Japanese giant dropping 35.3% in March alone. Including its abysmal 43% March decline, Hyundai reported an 11% drop in the first quarter. Luxury automakers were particularly hard hit, with Porsche first-quarter sales chopped 20.2% from a year ago (after a record 2019) and BMW off 15.3%. The industry is bracing for difficult months ahead with March a passing rainstorm compared to the coming April hurricane. With states expected to be in lock-down until April 30, J.D. Power predicts an 80% decline in sales. After a record five years of annual U.S. sales over 17 million units, sales were expected to slow in 2020, according to J.D. Power forecasts, to a still healthy 16.8 million units. But with automakers poised for the spring selling season beginning in

March, COVID-19 has changed the landscape. Assuming sales pick up after July, annual sales should stabilize between 12.1 million and 14.8 million units for the year—down 10% to 30% from their 2019 projections. “It’s going to get much worse in April as uncertainty rises and the potential that regulations will stay in place,” said Thomas King, chief product officer for J.D. Power. “We expect 1.6 million to 2.4 million unit sales lost from March though July.” According to a University of Michigan survey, consumer sentiment tumbled last month to its lowest level since the 2008 Great Recession and is projected to hit its largest two-month decline ever. Not surprisingly, given COVID-19’s impact on seniors, the 57-years-and-up demographic saw the biggest decline—67%—in auto shoppers. “Most important is when stayat-home orders end,” continued King. “There is going to be significant economic damage, and the economic environment is going to be challenging for the rest of the year.” Dealers across the country are offering no-interest loans and unprecedented 84-month lease terms to entice buyers to profit-rich pickups in particular. To maintain truck sales, automakers doled out a record—46%—of 84-month loans, as well as a record $7,200 in incentives. As a result, pickup sales last week were down just 27% compared to 61% for the industry, leading to the Detroit Three's highest market share since 2006. In GM's stable, the Chevy Silverado pickup roared to a 26% sales gain over a year ago, with 143,698 units sold, while its Sierra cousin was plus 31%. The popular Ram pickup lifted sales 7% to 128,805 vehicles. “In terms of adapting to changing conditions, there may be no better group than auto dealers," quipped King. "They are showing remarkable ability to retain volume in the key truck segment.” GM and its dealers are offering concierge service, courtesy transportation and home delivery where permissible. But permissible varies by state: In Michigan, Pennsylvania, Washington, Kentucky and Hawaii even online sales have been sus-

pended until April 14. The Michigan Automobile Dealers Association has advised its members that automotive sales remain closed under Gov. Gretchen Whitmer’s business guidelines. Only service, parts and body-shop operations are allowed to stay open. As a result, Detroit saw a near 100% collapse in sales in the last week. “We are still actively talking with customers, answering questions and booking appointments for when the governor’s executive order lifts on April 14,” said a spokesperson for Lafontaine Automotive Group. New York Gov. Andrew Cuomo lifted that state's ban on online sales March 27. “This is an enormous win,” said New York State Auto Dealer Association President Bob Vancavage in a statement. Dealers “have been working non-stop to craft an exemption under the essential business guidelines to allow dealers to do what they do best: sell cars.” The cratering of sales in New York was a key reason that luxury auto sales took the biggest hit in

March. The state accounts for some 14% of premium sales nationwide. In contrast to pickup makers, luxury brands saw their market share decline from 14% to just 10%. In California, the nation’s largest auto market, the California New Car Dealers Association has advised all 1,400 showrooms to comply with Gov. Gavin Newsom’s shutdown order. Even home-team Tesla Inc. was forced to shut down production and showroom deliveries of its electric cars. The shutdown comes as the Silicon Valley automaker is launching its first entry-level SUV, the Model Y. Analysts expect Tesla sales to be off 30%. The Golden State’s first-inthe-nation shelter-in-place order on March 19 showed ominous signs for the industry, as San Francisco sales slid 86% the first weekend after the order. But San Francisco has modestly rebounded in the week since, implying dealers are adapting quickly to the new environment. Since a majority of luxury vehiSee Detroit 3, Page 18

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AUTOBODY are certified by FCA, Honda, Nissan, Lexus and a few others. Hassell writes, “In our shop, we work for the customer. Our customers are our friends, and we make things right for them.” When asked how he was handling his employee situation, Hassell replied, “We had one guy that was getting ready to retire, so he took this opportunity

Analysis of the Body Shop Survey

to do just that, and gave a younger guy a chance to stay on. That was very gracious of him. Other people were in a financial situation that would allow them to take a couple of weeks off without pay so that worked out. Plus, we have shifted hours around for some people and gone to a no-overtime policy. So, it’s all worked out.” Hassell not-

100%

Independently operated single-point shop Independently operated with two or more locations

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

87.2%

9.5%

MSO (Caliber, CARSTAR, Service King, etc.)

3.1%

No Response(s)

100%

TOTALS:

restoration work for the brands they usually handle—mainly Porsche and BMW. And one shop in a snow-belt area has taken on more rust-repair jobs to keep busy. Read Autobody News on-line at autobodynews.com and in-print to keep up with the industry’s latest developments.

2. Given the current pandemic situation, to what degree is your shop operating? (Choose one)

1. What is your type of shop? (Choose one) ANSWER:

ed that in his area of Long Island there is a heavy concentration of shops. Some are busy, some are dead. One shop in northern California noted that their DRP work had all but dried up so they were knocking on doors of businesses that were still open to find work. One highend shop in Utah has taken on some

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

100%-plus (backlog of work)

5.3%

100% - 75%

17.0%

75% - 50%

22.3%

50% - 25%

27.6%

25% - 5%

21.2%

We’re temporarily closed

6.3%

No Response(s)

100%

TOTALS:

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3. Have you had any layoffs due to work changes? (Choose one) ANSWER:

100%

Yes - Laid off a quarter of my staff

4. What changes have you implemented in your workplace? (Choose all that apply)

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

12.7%

Closed front office

29.6%

Pickup / deliver customer cars

54.9%

100%

Yes - Laid off half of my staff

6.3%

Yes - Laid off three-quarters of my staff

21.2%

Sanitation stations / enforce social distancing

78.0%

No - Have not had to lay off anyone

59.5%

Use face masks and rubber gloves regardless of the shop operation

56.0%

Other

16.4%

100%

No Response(s)

TOTALS:

5. Have you taken on any other type of work such as restoration or custom work?

TOTALS:

6. Have you applied for assistance under the CARES Act just passed by Congress? (Choose one)

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

ANSWER:

Yes

19.1%

73.4%

If yes, what type of work? Comment below

7.4%

No Response(s)

100%

ANSWER:

100%

TOTALS:

NUMBER OF RESPONSE(S):

RESPONSE RATIO:

Yes - I have submitted a application but have not yet received the funds

62.7%

Yes - I have submitted a application and have already received the funds

10.6%

8.5%

11.7%

6.3%

100%

No - But I plan to at a later time No - I do not intend to use CARES funds No - I have not heard of the CARES Act

TOTALS:

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Is COVID-19 Accelerating An Industry Disruptor? by Neil Pitt, Motorious

How is the collector industry adapting to so many shutdowns? Collector and classic car auctions have been around since the early 1970s, when notable Kruse International held its first collector car auction in Auburn, IN. The Kruse classic car auction quickly grew and became a destination event for car guys each Labor Day. Although Kruse International was plagued with economic disruptions and legal debacles, it enjoyed some successes, including being purchased by eBay in 1999 for stock valued at $130 million. Thomas Barrett, a car collector from from Phoenix, AZ, was inspired by the success of Kruse International in the early '70s and decided to hold his own auction to cull his personal collection. Later, Barrett partnered with a friend, Russell Jackson, to form what is now arguably the most well-known collector car auction on the planet, Barrett-Jackson. Over the past five decades, many others have joined the auction industry, focused on a hobby and relentless passion for the automobile.

Continued from Page 14

Detroit 3 cles are leased, J.D. Power predicts a lot of pent-up demand in that segment once shelter rules are lifted. For Detroit automakers, there were some bright spots outside of their core truck lines and the small-volume Bolt electric car. Sales of Chevy's entry-level, $22,295 Trax SUV soared even as the rest of the brand's SUV lineup did not fare as well. The entry-level Spark sedan saw sales gains, but Autotrader analyst Michelle Krebs warned against a trend of small car purchases. “We anticipate that sales of subcompact and compact cars (and SUVs) will struggle the most in the coming year. These segments tend to be bought by the least credit-worthy buyers, who already pay high interest rates and are the most vulnerable to layoffs in this economic crisis,” she said. Overall, Chevy saw the least degradation among GM brands with sales off 3.8%. GMC dropped 5.5%, Cadillac 15.8% and Buick 34.7%. For Fiat Chrysler, sales of the family-friendly Chrysler Pacifica

As the use of technology has become more prevalent and purchasing items online has become the norm, the collector car market has also transitioned to an online model. Most physical car auctions include the ability to bid and purchase by phone or through a myriad of platforms, such as Auction Mobility and Proxibid. Many of the collector car classified sites also include auction platforms as demonstrated by Hemmings and Motorious. The collector car market is very different from the retail daily driver market, in that most people are looking for a unique vehicle that is typically not found within driving distance of their home. According to Speed Digital, a technology provider for Collector Car dealers, approximately 80% of collector vehicles are sold online with the first “tire kicking” the moment the vehicle is unloaded from the transporter. The past decade has seen the rise of a once obscure company, Bringa-Trailer (BaT), that originated as a grassroots community discussing cars. BaT is now the preeminent online destination for purchasing collector cars and boasts a bid of $3.125 million for

minivan climbed 5%. Jeep’s allnew Gladiator pickup continued to impress with its third consecutive quarter of 15,000-plus sales though the Jeep line declined 14% for the quarter. That paled next to Fiat’s 49% free fall. “We expect some automakers will use the crisis to clean their houses, choosing to eliminate models and even brands,” said Krebs. “Long-suffering brands like Fiat might not survive the crisis.” Despite the sales gloom, TrueCar projected the average transaction price of vehicles to be up 3.2% in March 2020. Transaction prices have been key to industry profit margins, but TrueCar analyst Eric Lyman sounded a cautionary note as COVID-19’s effect on sales did not set in until mid-month. “Historically, there’s been a strong correlation between consumer confidence and average transaction price,” he said. “We’re now seeing one of the largest one-month declines in consumer confidence in nearly 50 years. April will provide a much clearer picture of the full impact caused from the coronavirus.” We thank The Detroit News for reprint permission.

a 2015 Ferrari LaFerrari (did not meet reserve.) As the COVID-19 pandemic spreads across the U.S. and "social distancing" has become part of our daily vocabulary, many of the physical auctions have been forced to either postpone or take the auction completely online. The following auctions have online only offerings within the next few months. Motorious—March 13-27 RM Sotheby's—March 20-28 Vicari Auctions—April 17-18 Pros & Cons of online only auctions Pros: 1. Reduced travel cost. Both consigning and buying online can have significantly reduced costs associated with personal travel (airfare, hotels, meals.) 2. Reduced transportation costs. Potentially, the cost of shipping associated with transporting vehicles to and from the venue is reduced. This is especially true if the vehicle is a "no sale" as the consignor is on the hook for transportation to the venue and then back after the auction. 3. Flexibility. Technology allows the use of alerts on particular vehicles,

making a better use of time as compared to being on-site watching vehicles cross the block of no interest to the buyer. 4. Leveraging a larger car community. Platforms such as Bring-a-Trailer allow commenting, which provides information and sometimes specific expertise from a worldwide audience. Cons: 1. No physical inspection. There is no substitute for a personal physical inspection. While websites offer numerous photographs, videos and detailed descriptions, there are always opportunities for errors. 2. Missed comradery. Many of the annual auction events provide an opportunity for enthusiasts to get together. These events have become a highly anticipated pilgrimage and a chance to bond with like-minded individuals. As the COVID-19 pandemic subsides, will we see more online auctions or will the car community bounce back to reveling in exhaust-filled venues listening to the chatter of the auctioneer? We thank Motorious for reprint permission.

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Auto Glass Industry Responds to Those in Need COVID-19 continues to impact the U.S., but some in the auto glass industry worked together to help those in need. Paul Bycok, of Glass One Auto Glass, used social media to challenge those in the industry to give back. He, along with others, went into their community to deliver “care boxes” to the elderly. According to Bycok, some of the items included in the boxes were toilet paper, water, rice, canned and packaged soup, toothbrushes with toothpaste, bar soap, pasta, pasta sauce, muffin mix, coffee, tea and cookies. “A lot of us have been blessed by this crazy industry. Let’s hope this passes over, but be mindful of others who (may) need a drop box of help,” Bycok said. We thank glassBYTEs.com for reprint permission.

www.autobodynews.com

UPDATED DAILY

Reopen Alabama displays symptoms of COVID-19 • Limiting the number of people inside a business • Continuing social distancing • Enhancing sanitation measures; and • Increasing employee education regarding COVID-19. The recommendations for several industries include temperature screenings—the taking of employees’ temperatures prior to the employees entering the workplace. Though there has been some reluctance to implementing this practice due to potential data privacy and employment law issues, on March 17, the Equal Employment Opportunity Commission (EEOC) provided additional guidance for employers with workforces returning to work. The guidance made clear the implementation of screenings during the present COVID-19 pandemic, including taking temperatures and asking questions about symptoms prior to entering the workplace, is consis-

FORD

tent with the Americans with Disabilities Act of 1990 (ADA), which permits inquiries and medical examinations because the coronavirus is considered a direct threat, and such inquiries are consistent with guidance from the Centers for Disease Control and Prevention (CDC) and other public health authorities. Further, employers can require employees to wear protective gear and observe infection control practices. However, when an employee needs a related reasonable accommodation because of a disability under the ADA or a religious accommodation under Title VII of the Civil Rights Act of 1964, the employer should provide modifications when feasible and does not cause undue hardship to the business. A reasonable accommodation could include the use of non-latex gloves, modified face coverings for interpreters or others who communicate with employees who lip-read, gowns designed for individuals who use wheelchairs or modified equipment to allow for the wearing of religious garb. To read a summary of indus-

try-speciifc recommendations, see the original post here. It is important to remember the task force’s report only contains recommendations for the governor to consider. Ogletree Deakins will continue to monitor and report on developments with respect to the COVID-19 pandemic and will post updates in the firm’s Coronavirus (COVID-19) Resource Center as additional information becomes available. Critical information for employers is also available via the firm’s webinar programs. This article was drafted by the attorneys of Ogletree Deakins, a labor and employment law firm representing management, and is reprinted with permission. This information should not be relied upon as legal advice. We thank Ogeltree Deakins for reprint permission.

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Business Leaders Share Thoughts About Collision Industry Pandemic and Recovery Assured Performance is taking bold the future. action to support our certified repair Since this industry is directly imAutobody News recently reached out network. pacted by miles driven and employto leaders in the collision repair indus- We’ve created a special ment, people NOT driving try to find out how they are best man- subsidy and stimulus proand forced to stay at home aging the inevitable interruptions to gram for our certified repair will be significant and could “business as usual” during the current providers we hope will help be devastating if the shutcoronavirus restrictions. in the short term and actualdown lasts too long. In addition to sharing their insight ly reinvent and turbocharge In the short term, it is a on how this will affect the industry, their businesses for the long great time for shops to imthey offered some advice to business term. plement new systems, train Dean Fisher owners and employees. staff and refine their sales, For immediate relief, we have instituted a payment pro- marketing and production processes. Farzam Afshar, CEO of VeriFacts gram, discount incentives and ac- We can all be far better businesses Automotive celerated rebate redemption for the coming out of this crisis if we do this VeriFacts Automotive is working cost of certification. As a stimulus, well and execute a smart business closely with our customers, insurers we have introduced a new program improvement plan. and OEMs to adapt our practices in to help drive sales and re-engineer these challenging times. business operations to save money Dean Fisher, President of CARSTAR We are conducting many of our and manpower. The safety of our customers and team coaching services virtually to ensure Through an agreement with members is always our first priority, we are keeping our team members Bodyshop Booster, certified net- and we are taking steps to protect the and the shop employees safe. We are work shops can offer consumers health and wellbeing of our team and following OEM guidelines and their insurers a hands- customers. on shop certification visits. free estimating and repair We have implemented a numAlso, we’ve shared tips with process that protects the ber of precautions based on the adour customers about how shop employees, the con- vice of the Centers for Disease Conthey can enhance their busisumer and the insurers. trol, the World Health Organization ness practices to ensure shop The new process com- and other health authorities to minicleanliness, follow social bines photo and remote virdistancing rules and provide tual estimating with a fully Farzam Afshar convenient customer service. documented and/or certified While there will be short-term repair. The process eliminates the declines in repair volume as fewer need for the consumer or the insurer people are on the road each day, we to come to the shop by using a pickup will see business return to previous and delivery system, centralized aplevels as this challenge subsides. pointment setting with an active cal We may also see daily driving endar and special tools for the shops’ trends increase, as people may be re- websites. luctant to return to air travel, trains These combined with full elecand public transportation. tronic visual documentation will en In addition, people may hold on able consumers and insurers to interto their vehicles longer rather than act with shops in a new and far better investing in a new car, which will way of doing business. translate to more repair needs. Programs like this can save re We always advise shop owners pairers hundreds of thousands of and managers to use the good times dollars each year and save insurers to prepare for potential millions. The process is far downturns, and to use the easier for consumers and ofdowntime to productivefers a “hands-free” solution ly plan for the future. This during this time of social is the ideal time to conduct distancing and quarantining. your facility and equipment Consumers do not have to maintenance, participate in come to the shop and they employee training, complete will have higher confidence Scott Biggs your annual financial review than ever before because of and planning and do your employee the repair documentation. reviews. Our certified repairers’ survival is essential to all of us. It may be the Scott Biggs, CEO of Assured perfect solution for these uncertain www.hiesterautomotive.com Performance times and become the new norm in Compiled by Stacey Phillips

mize the risk of the transmission of COVID-19 for both team members and customers alike. Following the municipal, provincial, state and federal guidelines for health and safety that are local to the repairers remain paramount during this COVID-19 pandemic. Increased rates of cleaning frequently touched surfaces, spaces and property is a common directive as well as making hand sanitizers and disinfectant wipes more available to both customers and employees. Jim Keller, President of 1Colllision Network 1Collision has addressed our locations as a group in regard to safety precautions by issuing bulletins, holding group web meetings and conducting discussions with shops about the ways they are protecting employees and customers. To help capture traffic to your door, educate consumers on the vehicle disinfecting measures they can take, as well as the policies and procedures your repair facility has implemented.

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Dept. Hours: M-F 7-7; Sat 8-5; Sun 10-3 santosr1@autonation.com

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800-542-8121 954-964-8300

Dept. Hours: M-F 7-7; Sat 7-5; Sun 9-5 hernandeze@autonation.com

Classic Honda Orlando

888-893-4984 407-521-1115

Dept. Hours: M-F 7-7; Sat 8-4 parts@classichonda.com

Coggin Deland Honda Deland

Clermont

Dept. Hours: M-F 8-7; Sat 8-5 pepe.guevara@headquarterhonda.com

Pompano Beach

954-425-8244

Marietta

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

800-733-2210 706-228-7040

Dept. Hours: M-Fri 7-6; Sat 7-5; gerardbruno@hendrickauto.com

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

Rick Case Honda

Honda Mall of Georgia

877-544-2249

678-318-3155

Davie

Buford/Gwinnett

Dept. Hours: M-F 7-7; Sat 7:30-4 robbutton@rickcase.com

Dept. Hours: M-F 7-7; Sat 7-5 cdunlap@penskeautomotive.com

South Motors Honda

Milton Martin Honda

888-418-3513 305-256-2240

770-534-0086 678-989-5473

Miami

Dept. Hours: M-F 8-7 mfranceschi@southhonda.com

Gainesville

Dept. Hours: M-F 7:30-6 robertthomas@mmhonda.com

Honda of Newnan

GEORGIA

Newnan

Carey Paul Honda Snellville

770-985-1444

678-423-8183

Dept. Hours: M-F 7-6; Sat 7-4 samuel.trapani@henrickauto.com

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

Union City

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

SO. C

MISSISSIPPI

Patty Peck Honda Ridgeland

800-748-8676 601-957-3400

D fm

Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com NO. CAROLINA

Apple Tree Honda

Asheville

800-476-9411 828-684-4400

TENN

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

Crown Honda Southpoint Durham

855-893-8866 919-425-4711

Dept. Hours: M-Thu 7-11; Fri 7-6 Sat 7-5; Sun 11-5 www.southpointhonda.com

Dept.

McKenney-Salinas Honda

800-758-0007 386-626-1811

Gastonia

888-703-7109 704-824-8844 x 624

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

Dept. Hours: M-F 7:30-5:30 parts@mshonda.com

ACURA FLORIDA

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Dept. Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark.com

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800-352-2872 904-725-1149

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877-622-2871 678-259-9500

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Marietta

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

Winston-Salem

Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com

Brentwood

Dept. Hours: M-F 7:30-6; Sat 8-2 jtrail@garyforceacura.com

24 MAY 2020 AUTOBODY NEWS / autobodynews.com

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Dep corey

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

-5

TENNESSEE

SO. CAROLINA

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

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800-982-7290 901-255-3780

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Dept. Hours: M-F 8-6; Sat 8-5 fmarshall@breakawayhonda.com

Piedmont Honda Anderson

800-849-5057 864-375-2082

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

Richmond

Dept. Hours: M-Fri 7:30-6:30; Sat 8-5 wbhonda@aol.com

Bartlett

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

Checkered Flag Honda Norfolk

800-277-2122 757-687-3453

Dept. Hours: M-Sat 7:30-6 honda.checkeredflag.com

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Airport Honda

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800-264-4721 865-970-7792

800-482-9606 757-431-4329

Alcoa

Virginia Beach

Dept. Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda.com

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

AutoNation Honda West Knoxville

Valley Honda

Knoxville

800-824-1301 865-218-5461

Dept. Hours: M-F 7:30-6 rossd1@autonation.com

Staunton

800-277-0598 540-213-9016

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VIRGINIA

Karen Radley Acura Woodbridge

800-355-2818 703-550-0205

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

Radley Acura Falls Church

800-550-5035 703-824-5785

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

autobodynews.com / MAY 2020 AUTOBODY NEWS 25

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In the sales process, especial- ress) and sales volumes. Parts availabilly during a shrinking market, it’s ity will likely become a challenge, with critical to educate consumers about manufacturer supply chains weakening making the proper repair facility internationally and the within the U.S. choice. By using effective sales and Talk to your employees, and most closing techniques, and writing a importantly listen to what they are feelcomplete and accurate repair plan, it ing…be compassionate, and assure will likely be the difference between them they are being heard and you will help in any way you can. Always rebreakeven and a respectable profit. On the financial side, I recom- member, without our employees, there mend managing your numbers dai- is no business. ly; close more sales and manage all Collision business owners must costs, especially labor and parts. be strong, smart, courageous and lead With monthly building their organization by taking payments, whether you are calculated risks. in a lease or a mortgage, Henry Ford once said, have conversations with the “The competitor to be feared bank or building owner to is one who never bothers delay a payment or two to about you at all, but goes help weather the storm. Anon making his own business alyzing all expenses to cut better all the time.” The leadJim Keller costs and being more effier that does nothing will cercient is always a good exercise. tainly lead to failure. Also, grant programs are becoming available on both a federal and Aaron Schulenberg, Executive state-by-state basis, that are potential- Director of SCRS ly beneficial to collision shop owners. The Society of Collision Repair The most critical issues I see for Specialists (SCRS) recognizes many shops are the early reports that have collision repairers are being inunindicated lower claims volumes, which dated with emails and information will mean lower WIP (work in prog- surrounding the current events un-

folding, and many of our members are reaching out trying to understand what it means to their businesses. As an association, we are largely relying on those with specialized expertise to offer guidance, and then finding ways to share that guidance through our free channels of communications. These include Repairer Driven News www.repairdrivennews .com, and a new resource page we have set up: www.scrs.com/covid19 -resources. The resource page is continually updated with information about workplace preparation and help, as well as financial aid and relief to help small businesses and citizens across the U.S. As essential businesses, we know the critical role collision repairers are playing right now for customers and employees. We’ve seen many examples of businesses taking enhanced precautions against COVID-19, ranging from zero-contact interactions with customers at drop-off and pick-up, that allow for adherence to social distancing policies surrounding personal contact. We’ve also seen examples of busi-

nesses promoting services to “clean,” “sanitize” or “disinfect” customer vehicles. SCRS urges caution with the language used in your promotion of services. For instance, your facility can assure that you “apply disinfectant,” but there is no testing protocol to ensure that you “disinfected” the vehicle. In our interaction with other industries, this has been a repeated caution; describe only what you performed, rather than a promise of what it accomplished. The information is constantly evolving, the situation changing, and the best advice we can offer is to make ample use of the resources available to you to stay abreast of the current events. But most importantly, remain positive. We are an industry that fixes broken, seemingly unfixable incidents every day, as we restore safety and peace of mind after unexpected tragedy. While the conditions are unchartered territory for us all, as an industry we will find our way through to the other side, using our professional experience to serve the motoring public as they turn to us in their time of need.

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Now More Than Ever, Shops Need to Renew Their Focus on ‘Capture Rate’ Even before the coronavirus outbreak, I was telling shops I work with a renewed focus on “capture rate” was increasingly important. Now it’s become critical. Here’s why: Look at any reliable source of claims counts in the U.S. over the last couple of years, and you’ll see they are declining. The increasing number of vehicle on the road with advanced driver assistance systems (ADAS) is reducing accidents. Not by a lot, and it varies a bit by region, but by about 2 to 4% a year overall, most analysts agree. That might not be particularly noticeable—yet. I think it has been masked by shops feeling like their sales increased in recent years, but that’s because severity has been getting higher. The ADAS impact on claims count has also been offset until recently because low unemployment and low gas prices were keeping more

vehicles on the road for more miles. But we’re a little bit like the frog in that old analogy: Put a frog in a pot of boiling water, and it will jump out. But put it in a pot of tepid water and only slowly bring up the temperature, and the frog will boil to death. Similarly, a 2 or 3% decline in claims counts each year might be easy to ignore, but in five or seven years, you’re going to be wondering why the water around you has gotten so hot. So now, and especially in response to this pandemic, we have to get back to the fundamentals, including focusing on capture rate, something most of us did when we were first in business. You need to convert more of your potential customers into actual repair orders. How do you do that? How about following up on estimates written? If a customer gets an estimate but

doesn’t schedule the job, call them the next day, then three days later, then five days after the estimate. One of the major clients I work with said those type of follow-up calls are helping them capture 20% of those jobs that weren’t scheduled at the time of the estimate. That’s a big deal. The pandemic and work slowdown has shops following up like never before. I talked to a shop in late March who told me, “We’re following up on estimates we wrote a year ago.” The reality is all shops should have been doing that type of follow-up all along. Another thing you should be doing: Monitor where your work is coming from. Most management systems can help you do that. Unfortunately, I look at many shops’ “referral” or “source” reports and see just generic categories like “insurer” or “internet”

or “dealer.” That’s not good enough. Capture your source information in detail. Let’s say you’re a direct repair shop for ABC Insurance. If you run the source report and see you repaired about 20 cars a month through DRP claims paid for by ABC, and now you’re only doing 15 a month, you need to get proactive and find out why. You can also track how many claims were paid for by various insurers through a “Body Shop Scorecard” report available through Enterprise. It shows you by insurance company how many of your customers were in an Enterprise rental while their vehicle was in your shop. If you are seeing fewer rentals covered by a particular insurer, find out why. Don’t just list “dealer” as a source; identify which dealer. Again, if you see a decline in those referrals, See ‘Capture Rate’, Page 40

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Shops Using Downtime Advantageously During COVID-19 Crisis by Chasidy Rae Sisk

As the U.S. strives to prevent the spread of COVID-19, most states have instituted some version of a shelter-in-place order. Many businesses are experiencing a decrease in workload, including collision repair shops and related businesses. While furloughs are happening, experts advise against it, especially in light of aid offered by the U.S. government, including the Paycheck Protection Program (PPP), which provides small businesses with forgivable loans to keep employees paid. Most shop owners are doing everything they can to maintain their employees, including pursuing less traditional schedules and duties. Industry leaders agree that looking for the opportunities within the current situation will help collision repair professionals maintain a more positive outlook and come out in a good position on the other side. “No one wants to face declining car counts and repair volume, but if

there is a silver lining to all of this, it does provide an opportunity to focus on how you can improve your business during the downtime,” VeriFacts CEO Farzam Afshar recently said. Improving the business can take a variety of forms, including maintenance, financial and training opportunities. During this period, many shops are using the extra time to clean and sanitize their entire facility. Deep clean the paint booth, change filters, service or upgrade equipment, power wash the building and reorganize to enhance efficiencies to prepare for the day the work starts coming back in the door. Kevin Anderson of Elite Auto Body in Gambrills, MD, has his team gutting the shop, purging junk and painting the floor and walls. At Downingtown Collision in Downingtown, PA, Tim Hedrick is “working because I’m trying to make sure my guys can collect a real paycheck and not unemployment. I’m paying them to do maintenance and

sweep and other stuff around the shop.” At Parks Royal Body Works in Boise, ID, the technicians are still processing their current workload, but after that, Matt Thornton has plans to deep clean the building, convert the booths to LED lighting and replace office carpet. “That should keep them busy for a couple of weeks. We are taking it day by day and keep adjusting our ideas and finances as needed,” Thornton said. “We applied for the PPP, which will really help.” The team at Cocoa Auto Salvage in Cocoa, FL, is employed on special projects like resetting the yard, maintenance and auditing as well. Owner Shan McMillon is also using the downtime to evaluate her inventory and update settings in her electronic platforms. “I have more time to work on my business, instead of in my business, and I’m trying to take full advantage of that,” McMillon said. DCR Systems LLC is processing paperwork and accounts receivables

during the lighter supply of vehicles, according to Marketing Specialist Pam Giarrizzo. “The team is working on ways to communicate with the insurance companies and the customer to try to lessen or eliminate short pays. It just takes more communication with both parties,” she said. “Develop your fully reopen checklist and get to work. ‘Fill the potholes,’ meaning go take care of the little things in your systems and processes that you just always seemed too busy to take the time needed and fix,” said John Hill of The Autotrends in Greensboro, NC. “If your building needs a little paint, it’s the perfect time to freshen things up.” On a recent CIECAst, Mike Anderson of Collision Advice recommended shops analyze their financials to look at areas they can reduce or eliminate. Closing out repair orders, chasing receivables and establishing new accounts may be worth a look, See Shops Using Downtime, Page 28

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with Erica Schroeder

Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who 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.

Shops Cautioned Tough Economy Could Spur More Counterfeit Parts, Pirated Software

Shop Showcase

The economic fallout from the coro“That was knowing the supply determine the diagnostic routines to navirus pandemic is likely to be felt chain. The internet kind of changed essentially copy. worldwide, and that has law enforce- that. As great as the internet is at conGreg Potter of the Equipment with Ed Attanasio ment bracing for almost inevitable necting people that are good, it’s also and Tool Institute said it’s safe to say uptick in crime, including illegal busi- really good at connecting people who every manufacturer of aftermarket ness activity. are bad with those who don’t know scan tools reverse-engineers to some Shops should take a number of the other person is a bad source,” Jar- degree. measure to avoid perpetuating—or dines said. “But at the end of the day, “Even if you are given all the falling victim to—criminal activity. it all comes down to knowing your great data that you (license from) the The Automotive with Anti-CounterEd Attanasio supply chain. If you can trust your OEMs, you still have to implement feiting Council (A2C2), a coalition supply chain, if you would put a part those features and functions into your of 11 automakers, is reminding shops (you buy from a source) on your own aftermarket tool,” Potter said. “You to avoid counterfeit airbags and other car, we can’t ask for anything more have to validate and verify that that automotive parts. tool is doing what it’s supposed to from you.” Dee Pagdilao, of American HonAuthorities caution parts aren’t do. How do you do that? You get the da, said A2C2 offers a visual guide to the only automaker product subject OEM tool, you send a command, you some of the mostwith common see what the reaction is, you monitor Edindications Attanasio to pirating. that a part may be counterfeit, includShops buying an aftermarket that traffic, and then you take your ing labels that don’t match one anoth- scan tool should determine whether tool and you do the same thing. er (such as two different part numbers the tool maker licensed the needed “That’s your validation effort, on the same package) or that cover information from the automaker, or back and forth. That can certainly other labels; labels with conflicting just “reverse-engineered” it by put- be called reverse-engineering. You information (“made in Thailand” and ting an OEM scan tool on a vehicle are monitoring the messages from with Ed Attanasio “made in Japan”); or, most commonly, and using monitoring equipment to the OEM tool and making sure your labels with odd misspellings of such common words as Ford. Genuine automaker airbags are shipped one per box, with a “Class 9” hazardous material label, Pagdiwith Stacey lao said; counterfeiters, however,Phillips often save money by shipping multiple airbags in a single box, or by skipping the hazardous material label. Shops concerned a part they re• Delivery to 100 Mile Radius of Naples ceived may be counterfeit should contact the Nationalwith Intellectual Property Stacey Phillips PARTS HOURS: PARTS DIRECT LINE: Rights Coordination Center (IPRC) M-F 7am to 6pm 239-734-3215 2 3 39 9 734 734 3215 21 (www.iprcenter.gov), part of the U.S. Sat 8am to 5pm Fax: 239-591-3051 Immigration and Customs Enforcement and the U.S. Department of 5665 N. Airport Pulling Rd. / Naples, FL 34109 Homeland Security. At Rick Hendrick Chevrolet Naples, How can shops best avoid purwith Stacey Phillips we we’ ee’re ’re re re yyou yoour oneee-stop -sto stop op ssho hop fo forr chasing or installing counterfeit parts? The first step is to know your parts supply chain, Abe Jardines of the IPRC said. “My first job when I was 17 years old was delivering parts to auto shops in New Jersey a local Phillips car withfor Stacey dealer,” Jardines said. “Every guy at those body shops knew me by name, and I knew them by name. The next time my mom needed a body shop, I could call that guy up and say my mother is coming in. I knew who I trusted.

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tool does the same thing and gets the same responses back.” But Donny Seyfer of National Automotive Service Task Force (NASTF) said it’s not really that type of “professional” reverse-engineering that is a problem. “It’s the, ‘How can we steal the software off the OEM tool and then sort of implement it into our own tool, and then sell it, in some cases representing it as an OEM tool,’ that’s the problem,” Seyfer said. “In some cases, they’re not even taking the (OEM tool) copyright information off. As you use it, you see that and say, ‘Huh, that’s not even the brand of the tool I’m using.’” Seyfer that type of piracy undermines the companies producing both OEM and legitimate aftermarket tools. “So if you buy those (pirated) tools just to save a few hundred bucks,

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30 MAY 2020 AUTOBODY NEWS / autobodynews.com

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and those other (legitimate scan tool) companies keep raising the prices because they’re spending all their time going to court (to fight the piracy,) now you’ll understand why,” Sey-

fer said. “Customs and border patrol snags these things constantly, by the case load. Truck loads in some cases.” Jack Rozint of Mitchell International said his company’s software

similarly gets pirated, and he said that the same online sources where that pirated software is being sold also often offers knock-offs of automaker scan tools for sale.

tool maker has integrated the test you need,” he said. But Seyfer also acknowledged aftermarket scan tool makers in general have focused on the mechanical repair segment of the market and won’t necessarily know what the collision industry needs until the industry conveys it. Scott Brown, a founder of Diagnostic Network, an online community designed to provide resources and support for diagnostic technicians, said aftermarket scan tools in some cases offer more functionality than OEM tools, particularly on vehicles that are a few years old. OEM scan tools don’t always display data in a format that is most helpful to technicians. “A lot of times, the aftermarket tool companies listen and end up fix-

by Clark Schultz, Seeking Alpha

AutoNation said April 3 it's taking dramatic measures after seeing significant declines in new and used vehicle unit sales, including a yearover-year decline of approximately 50% during the last two weeks. The retailer is placing 7,000 employees on unpaid leave, implementing temporary base pay reductions for associates and freezing all new hiring. Widespread spending cuts are also being initiated. On the financial front, AutoNation discloses it had borrowings outstanding of approximately $790 million on March 31 under its revolving credit facility and about $140 million under its commercial paper program. “Based on those borrowings and the maximum leverage ratio contained in our amended and restated credit agreement, we had approximately $1.1 billion of liquidity, including over $400 million of cash and approximately $700 million of availability under our revolving credit facility,” AutoNation said. We thank Seeking Alpha for reprint permission.

Deciding Which Scan Tools are the Best Fit for Your Shop How can a collision repairer know an aftermarket scan tool will adequately emulate the OEM tool? “Well, that’s the big challenge. You really can’t,” said Donny Seyfer of the National Automotive Service Task Force during a panel discussion earlier this year at the Collision Industry Conference. “Until you have it in your hands and plug it into the car, you don’t know if it works or not.” Seyfer said he thinks that’s why the collision industry is largely defaulting to OEM scan tools (or to using scanning service providers that use them.) “I’m not saying that’s necessarily the right solution, because unless you’re working on (a vehicle) that’s really, really new, you have a pretty good chance that the (aftermarket) scan

AutoNation to Lay Off 7K Employees, Cut Costs Deeply

ing that, providing a way to display the data in a way that (best helps shop technicians find) the diagnostics needed,” Brown said. Greg Potter of the Equipment and Tool Institute agreed. “The automakers do a good job developing diagnostics for next year’s vehicles, because they have to. That’s their job, their focus,” Potter said. “But some of them don’t do a real good job in upgrading or enhancing diagnostic software that is a couple of years old. They move on to developing stuff for the future. But for the aftermarket, that’s their sweet spot. They focus on collecting information and enhancing software as they learn how people are using it, learning what the weaknesses are and correcting those issues.”

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Hey Toby! with Toby Chess

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

A Quick Course on Primers Recently, I received a call from a glass blew out, and did not deflect friend who owns a high-end colli- the bag onto a passenger. I hate to sion repair facility in the Los Ange- think about the consequences. les area. I was called to come and look at In June 2019, a 2017 Ford Rap- the truck. tor was repaired at his shop. The I asked the painter how he shop replaced the A-pillar on the prepped the vehicle prior to painting. passenger’s sidewith of the David vehicle. McClune Last He said the body technician sanded December, it rained in L.A. for three the bare aluminum with 180 grit sanddays straight, and the vehicle devel- paper and primed it with epoxy primoped a water leak at the windshield. er. The vehicle was returned to the shop First problem: you cannot just and the glass company that installed sand bare aluminum and think it is the new windshield was called to ready for paint. You need to clean come back and reseal the glass. the bare metal with a stainless steel Everyone was surprised when brush. I use the small “toothbrush” the glass on the passenger’s side post types because they do a better job of did not stick to the A-pillar. What removing the aluminum oxide from Johnfailure. Yoswick we have here iswith an adhesive bare aluminum (See Fig. 1) compared In other words, the adhesive did not with the larger traditional brush. stick to the substrate. Let’s take a look at aluminum Imagine if the vehicle were in- oxide. volved in another accident and the Aluminum oxide (Al2O3) is a airbag struck the windshield and the naturally-forming compound on bare

aluminum. Metallic aluminum is very reactive with atmospheric oxygen and moisture, and a 4-nm passivation layer of aluminum oxide forms on any exposed aluminum surface in a matter of hundreds of a second. This layer protects the metal from further oxidation. The melting point of aluminum is 1,221 degrees Fahrenheit, compared to aluminum oxide, which melts at approximately 3,700 degrees. This oxide layer is much harder than the aluminum and helps the material resist corrosion and abrasion. However, it also acts as an insulator that can create issues during welding, like porosity, as well as during the repair process—body filler adhesion, adhesive adhesion and certain types of primers and finish coats will not stick to it. In the case of the shop’s problem with the windshield, the aluminum oxide and phosphoric acid caused the

adhesive to degrade and not stick to the pillar.

California Autobody Association

Year in Quotes

Fig. 1

Remember, use a stainless steel brush rather than a steel brush to prevent galvanic corrosion (See Fig. 2).

Fig. 2

Collision Repair Association of CA. with Richard Steffen

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with David M. Brown Southeast_Issue_0520.indd 33

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As a best practice, clean the area with a good wax and grease remover like Kent Automotive’s Acrysol (Fig. 3).

tached to the vehicle (Fig. 7). Note the strip of gray epoxy primer where the windshield will be attached. After seeing what happened at my friend’s shop, I taught his staff about the various types of primers used in the repair process. It would be beneficial to give the same information here so repairs are done properly, reducing the chance of a comeback or catastrophic failure.

Self etch primer (Fig. 4) uses phosphoric acid to etch the metal. If the acid has not fully dissipated, it will attack the adhesive, which will lead to an adhesive failure. The only recommend primer to be used in this repair is epoxy primer (Fig. 5).

Fig. 3

Fig. 6

I asked the painter to bring over the epoxy primer he was using. It turned out to be self etch primer. Fig. 5

After cleaning the part with the brush and Acrysol, I brushed on a coat of epoxy primer with a foam brush (Fig. 6 showing the process, but not the vehicle in this article) After a 30-minute dry time, the vehicle was ready to be primed and painted. The epoxy primer on the windshield flange is the only coating where the windshield will be at-

Fig. 4

Fig. 8

Fig. 7

Here is a quick course on primers, starting with weld-through primers (WTP.) There are three major types of WTPs—copper-based, zinc-based and self etch (Fig. 8).

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WTPs are primarily used when MIG or spot welding together two or more panels. The coatings on the inner flanges are removed and the WTP is applied to the bare metal. Allow it to dry prior to welding. It should be noted the primer is cleaned from the hole when MIG plug welding. Also, Fiat Chrysler does not recommend the use of WTPs, preferring spot welding through the E-coat. Remember, E-coat is not electrically conductive, so a shut clamp will be necessary for the first weld (See Fig. 9).

welding, but not when MIG welding. Audi and Ford recommend their WTP and Honda/Acura recommends Kent’s Self Etch WTP. The next category of primers is Direct to Metal Primers (DTM), because they contain an acid that etches into the metal. Self etch primer (Fig. 10) comes in a spray can or quart container that can be sprayed. This primer contains phosphoric acid, which etches the surface, and zinc for corrosion protection. This primer is used over bare metal to provide a solid base for high-build primers and paints. Self etch primers are not used under body fillers, on plastic parts or under seam sealers. To use it prior to applying seam sealer, first allow it to thoroughly dry—the acid needs to be totally evaporated—and follow with some sort of sealer.

Fig. 9

Some vehicle manufacturers do not recommend copper WTPs because in the past, some paint manufacturers were selling the primer, but it did not contain any zinc and would dissolve when cavity wax was applied to mating surfaces. Most of the copper WTPs have been reformulated with zinc added. The zinc WTPs are the most common. Any excess zinc primer on any surface to be painted needs to be removed—paint does not like to stick to zinc. The self-etch WTP uses phosphoric acid to etch the metal and has zinc for corrosion protection. Once completely dry, paint can be applied directly to metal that may have gotten some of the primer. Nearly all OEMs require WTPs. Honda recommends WTP when spot

Fig. 10

A characteristic feature of this process is the primer particles are

Fig. 12

suspended in a liquid medium, migrate under the influence of an electric field (electrophoresis) and are deposited onto an electrode, or in this case, the metal of the vehicle. The final step is to rinse and bake the vehicle, resulting in a smooth finish. We in the collision industry do not have the ability to replace the E-coat the OEM has, but we have a product that comes very close—epoxy primer. Epoxy primer is known as a 2K primer, consisting of the primer and hardener. It can be applied to any rigid metal surface (steel, aluminum, SMC, fiberglass, etc.) It can be applied as a high build primer or reduced to be sprayed on as primer-sealer.

I have my shops mix it up the epoxy primer in a 4:1 cup in the morning (it has an eight-hour pot life) and, depending on the job, I tell the body tech to brush it on with a foam brush as a first option. Dry time is about 30 minutes. For example, let’s say you are replacing upper fender reinforcement on a vehicle, the attached part is welded into place and now the bare metal needs to be coated with primer. In this case, the body tech does it in his stall with the foam brush.

Fig. 13

Note: do not mask the vehicle for primer, and the car does not need to be moved to the paint department.

HENDRICK VOLVO CARS OF CHARLESTON Fig. 11

Whereas regular self etch primer is not sanded, this product is sandable. The same rules apply to this primer as with self etch primers. Another type of self etch primers is DTM primers. Similar to regular self etch primer, these primers are color coded to match the inner structural panels (rails, aprons, etc. Fig. 13) of a vehicle. You should follow the same rules of use as the self etch primers. The last of the DTM primers is epoxy primer (Fig. 5). Electrodeposition primer is applied to a manufactured vehicle by submerging the vehicle in a container or vessel holding the coating bath or solution and applying direct current electricity through the EPD bath using electrodes. The object to be coated is one of the electrodes, and a set of “counter-electrodes” are used to complete the circuit.

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department and seal it. (See Figs. 14 & 15) Moreover, Honda released a bulletin in March saying “never apply seam sealers to bare metal and apply 2K epoxy primer to the bare metal.” Toyota states in Collision Repair Information Bulletin (CRIB) #63 to “apply epoxy primer or wash primer over bare metal. Do not apply body filler over bare metal.”

After about 30 minutes drying time, the vehicle can have seam sealer applied to the welded joints. The tech does not need to go to the paint

color or clear coat.” Ford, GM and Audi recommend in their repair manuals epoxy primer on bare metal glass bonding surfaces. Finally, Honda said in its March repair news “2K epoxy is to be applied to all bare metal surfaces prior to applying seam sealer, body filler or other refinishing products.”

Fig. 18

Fig. 14 Fig. 17

Fig. 16

In CRIB #127, it says “body fillers should not be applied to bond surfaces. Epoxy primer applied directly to properly prepared bond surfaces should NOT be refinished with

Fig. 15

particular primer has a flex agent added, making it ideal for small plastic bumper repairs.

Furthermore, primer can be applied using a foam or standard brush, small roller or dobber as well as being sprayed on. The last primer is specialty high build primer. A few paint manufacturers have a high build primer (Fig. 16) in a handy spray can for small areas. This

In Fig. 17, the bumper repaired area was sanded and two coats of high build primer were applied in the body department. This primer works great with a short wave infrared light (Fig. 18). The primer was completely dry from the top to the base in less than two minutes, and the total repair was done by the body repair technician. Think of the time saved. I hope this article is helpful to you and your staff.

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gent plas-

ired s of n the orks light

dry than was cian.

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Continued from Page 28

Shops Using Downtime as well as audits and associate reviews, which often get deferred due to workload. With the reduction in work, many shops may be tempted to reduce or even eliminate marketing efforts, but successful shop owners disagree with that approach. “If your shops are slow, use this opportunity to put yourself in front of your customers,” said Brian Shaw from Sudden Impact Auto Body & Paint in Salisbury, NC. “I’m not a very good speaker and don’t do well on camera, but right now, at least in North Carolina, our customers are sitting at home scrolling Facebook. Try to have fun and stay positive!” At Body Works Plus in Charlotte, NC, Brian Davies has been sending email blasts to previous customers, which generate a 55% return ratio; the day after he sent the first blast, he received a job. He contracted a local marketing company to set up a free valet

for customers to have their vehicles picked up and dropped off, sans contact. “We amped up our budget for marketing and started promoting our business on two new radio stations. Last week, I did a Facebook Live about a special we’re offering, and that went really well,” Davies said. “If things slow down, we’ve taken on a project to repair a veteran’s truck, and if it comes to it, we’ll paint the floors and perform maintenance.” “Do not stop marketing. If anything, increase it,” Hill said, recommending shops keep an eye on the future throughout this crisis. “Everyone is a startup now, and it’s a great time to adjust those pay plans you were too timid to address. Get help wanted ads out. We all knew the labor market was too tight with everyone employed, and now, we can get and retain some quality applicants. “It’s going to be a real-life game of musical chairs when people get back to work,” Hill said. “Plan now so you can get the right people lined up for the right chairs. The hysteria is going to end, and while it may be a little jagged getting to the new nor-

mal, I believe that many of us will like it better, ultimately.” Preparing for the future by ordering parts ahead of time, especially in light of staggered deliveries, can be helpful, Anderson recommended. Paul Morro of Morrobuilt in Raleigh, NC, agreed. “Because I work on 40- to 50-year-old British cars, parts supply is critical, and when I received an email from my next-day supplier that they were temporarily shutting down operations, I placed a large hard parts stock order from a different supplier that is still in operation to ensure I can satisfy future customer vehicle repairs,” Morro said. “I normally order as needed, but I wanted to be certain that I’d prepared for whatever the future holds.” Another common practice among shops is revising their employees’ work schedules in some way. “We’re still open five days each week, but our techs have gone to a four-day workweek, reducing payroll by approximately 20%,” said Stan Creech, from Creech Import Repair

Inc. in Raleigh, NC. “During idle time, we clean the shop, paint, update equipment and perform maintenance.” R&N Motor Company, Inc. in Sanford, NC, has emailed its customer base to offer vehicle pickup and drop-off, is focused on sanitization and has begun preparing for equipment updates. “We lost a tech to a government job, but it couldn’t have happened at a better time,” Manager Robert Crawford said. “There’s still enough work coming in to keep two techs going. If we get caught up, they leave an hour or two early, but we still pay them to make up for the lack in billable hours. We are making plans to hire a new tech.” In Little Egg Harbor, NJ, one of the areas of the country hardest hit by COVID-19, John Molinaro of Streamline Auto Body erred on the side of caution. When New Jersey Gov. Phil Murphy implemented a stay-at-home order, Molinaro instructed employees to follow the order, “although we are essential,” he said. “They have received full pay for the time they are out, and my

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rent will be paid on time,” Molinaro said. “My customers were supportive in our decision with regards to delays in completing their vehicles, as well as our scheduled customers understanding our decision.” Molinaro didn’t pay his techs without assigning them some work, though. “We used this time to review SOPs and learn new procedures and technology from the products and tools we use,” he said. “Each employee is asked to view two hours of training videos each day, and Collision Hub has been amazing in having videos in one place for my techs to view, offering over 850 videos on YouTube.” Anderson recommended shops take advantage of downtime by reviewing repair guides from the manufacturers they repair and investing in training. Crawford, Davies, Creech and Thornton all have plans to train their teams as well. Often, shops complain training causes delays in the repair process, but with a lack of workload, this is the perfect opportunity to take advantage of the many virtual train-

ing opportunities available. Due to the current situation, many associations and industry supporting companies are providing free resources and training opportunities online. Here are just a few websites offering free or discounted webinars: CollisionHub.com FordHarrison.com ShopMarketingPros.com business.spanesi-americas.com/ youtube.com/user/SCRSCollision youtube.com/user/ButlerCollision rts.i-car.com worldpac.com/training/classes/online/ thepowerofa.org/coronavirusadvocacy/ nada.org/coronavirus/resources/ sema.org/corona-updates/ tstseminars.org/ elitebodyshopsolutions.com/ Although there are many challenges ahead, there are plenty of ideas to help shops keep employees working with a little creativity and positivity. Good luck, and stay safe.

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Think Genuine Subaru Parts.

Continued from Page 27

‘Capture Rate’ you can look into whether there’s been some change at the dealership. Maybe there’s a new general manager or service writer who is sending work to his buddy’s shop down the street. Similarly, don’t use a generic source as “internet.” Indicate whether that customer found you through your social media, your shop website, an OEM shop locator, etc. Another way to monitor and improve capture rate for direct repair shops, or those who receive “open assignments” through an information provider, is tracking the metric of “assignment received to estimate start date.” This report shows you how much time on average passes between when your shop receives an assignment and when you begin to write the estimate. Often when a shop tells me they need more work, we’ll check out their assignment-to-estimate metric and see it shows it’s taking them five or six days after getting an assignment to get that customer’s estimate

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started. Those shops don’t need to be attracting more work; they need to be getting on assignments in a more timely manner. Capture rate will also increase in importance if something leads to an increase in the rate at which consumers are shifting to newer cars with more ADAS. That might seem hard to fathom with the slow-down in car sales we’ve seen. But that decline might at some point prompt some sort of “cash for clunkers” federal incentive to attempt to revive new car sales. The good news in such programs for shops is that newer cars are more likely to be insured and thus repaired after an accident. But it could also push a lot more ADAS-equipped cars onto the roads. That could mean the annual decline in claims could jump to 5 or 7 or 10% a year. So we all need right away to start refocusing on basic best practices, like improving capture rate. Because it’s going to be much more competitive for claims. The water around us is going to start heating up, and we can’t wait too long to respond.

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First Funding for Small-Business Loans Depleted, Second Round Just Approved by Rick Barrett, Milwaukee Journal Sentinel

A $349 billion coronavirus loan program for small businesses has run out of money less than two weeks after it was launched, the U.S. Small Business Administration said April 16. The Paycheck Protection Program, part of the Coronavirus Aid, Relief and Economic Security Act passed by Congress in late March, is aimed at helping businesses meet payroll. As long as they keep their employees—or rehire those laid off —the loan amount covering eight weeks of paychecks can be forgiven. Wisconsin ranks 10th in the nation in both approved PPP loans, 31,702, and approved dollars, nearly $7.3 billion as of Monday, according to the SBA that’s made the federal program available to businesses with fewer than 500 employees. Nationwide, 70% of small businesses surveyed by the National Federation of Independent Businesses said they at least tried to apply for PPP money. However, many

applications could not be processed because of overwhelming demand and now the initial round of funding has dried up. On its website, the SBA now says the agency is unable to accept new applications based on a lack of available funding. The Treasury Department says by law it will not be able to issue new PPP loan approvals due to the lapse, putting a pause on the program that’s become a lifeline for millions of businesses. The loans have been dished out on a first-come, first-served basis. As of Thursday morning, the SBA said it had approved roughly 1.6 million applications for more than $339 billion in loans since the program was launched April 3. “The money running out has been a big fear that drove a lot of people to apply,” said Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. For some businesses, the program was too good to be true. “There was this understanding

that the government was going to help any business with eight weeks of payroll. But when you start working through the details, you have to be operating right now with a full, normal payroll … and with the governor’s shelter-at-home order in Wisconsin,

Bob Roden combines a field of winter wheat on his family’s farm, Roden Echo Valley LLC, in the West Bend area. They milk 700 cows on any given day and have 1,800 acres of corn, soybeans, winter wheat and alfalfa that they cultivate. Credit: Michael Sears, Milwaukee Journal Sentinel

it’s effectively closed businesses like bars and hair salons that don’t have a payroll right now,” Poels said. There have been delays in getting the money out and some banks and credit unions haven’t had the closing

documents or systems in place to make the transactions. “I liken it to trying to put a firetruck through a garden hose. You literally had, overnight, thousands of lenders who didn’t have access to the SBA system all trying to get access at once,” Poels said. The Trump administration has asked Congress, which set the program’s original ceiling, for another $250 billion, although that request has stalled in the Senate. Late on April 15, Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza issued a statement noting the historic demand for loans and pleading for Congress to pass additional funds for the program. “The SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time,” they said. “We urge Congress to appropriate additional funds for the Paycheck Protection Program — a critical and overwhelmingly biparti-

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san program.” Democrats have demanded that in approving more money for the program, Congress should also pass more funds for hospitals and state and local governments. They also want to bolster food stamp benefits and mandate some of the funds go to businesses owned by women and minorities. Republicans, on the other hand, have pushed for this money to be approved without any additions or mandates, arguing it’s the only program at risk of evaporating thus far. A breakdown of the PPP loans on SBA’s website showed that, as of Monday, the average loan size was $239,152, and 70% of the loans were for $150,000 and under. Construction companies were approved for the largest share, nearly 14%, or $34 billion. In second place were companies that provide professional, scientific and technical services, with 12.3% or $30.35 billion. Manufacturers were in third place with 12.25%, or $30.32 billion. Thousands of businesses are still awaiting word on their loan applications. “There were a lot of technical

problems early on. And there have been communication problems. Some individuals applying for money never knew whether they were approved or not,” Poels said. As word leaked out this week that the PPP funding was nearly gone, one Wisconsin bank had 24 loan processors working through the night processing as many applications as they could, said Eric Skrum, communications manager for Wisconsin Bankers Association. If your application wasn’t submitted before April 15’s cutoff, don’t throw out the paperwork. “I would hold on to it. Then you’re prepared so that if Congress does in fact move forward and fund the program again, you will be that much further ahead,” Skrum said. Still, for a program of this size rolled out quickly, it’s gone quite well, said Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce. “I think the federal government worked with great speed, but with that comes haste and not a perfect delivery system to get this into the economy,” Sheehy said.

He likens the PPP loans to the $1,200 coronavirus checks that should be showing up in the mailboxes of individuals soon, and the $600 in weekly federal unemployment money that is supposed to be coming. “Those individual and business lifelines are critically important … The severity and speed of the COVID-19 impact on the economy is unlike anything we’ve seen,” Sheehy said. Some Wisconsin businesses say the application process went smoothly enough for them. “I thought it was amazingly simple,” said Eric Isbister, CEO of GenMet, a metal fabrication company in Mequon that employs 46 people. “When I bought this business 20 years ago, we had an SBA loan with paperwork that was inches thick. This was much quicker,” he said. Keefe John, president and CEO of Ethoplex, a Germantown internet service provider, said he received approval on a PPP loan in less than a week. It helped, he said, that he already had a relationship with an SBA-approved lender. “We just wanted some extra working capital to help us out during

uncertain financial times. We will use it to retain our employees and give people sick leave if they get the virus. I think small businesses need to do everything they can now to survive and remain competitive,” John said. His company currently employs 10 people. “We are actually looking to hire more now. We’re seeking technicians to do customer installations in southeast Wisconsin,” he said. Bob Roden, a dairy farmer from West Bend, said Wednesday he was waiting to hear whether his PPP loan was approved. He and his family milk about 700 cows and grow corn, beans and wheat on 1,800 acres. They have nine employees. Roden said his milk and grain prices have been sinking, with no bottom in sight as coronavirus wreaks havoc on the global economy. “The loan is going to help, but it’s a band aid not the answer,” Roden said.

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Used-Car Sales: Tracking the Good, the Bad & the Options by Joe Overby, Auto Remarketing

Based on auto industry analyses, a rough March for used-vehicle sales appears to have spilled over into April, and as PureCars says in its latest COVID-19 report, dealers are “facing obvious headwinds” in preowned. But, some silver linings: the dive in used- and new-car sales appear to have hit its trough, according to Cox Automotive. And there are dealers who are realizing “some success” with strategies to shore up their used-car sales, as PureCars outlines in its report. First outlining the challenges, PureCars said in the report, “Aggressive APR offers mean used payments can be higher than new, RO data suggests shoppers are fixing versus trading up or out, auction prices continue to fall and wholesale markets have all but stopped operating as a way to dispose of depreciating used assets.” But there are some remedies dealers are finding that work. PureCars emphasizes some used-vehicle shoppers “are sitting on the sidelines,” so

“aggressive” strategies in pre-owned might not be the best course at the moment. “However, some dealers are gamblers and we’ve seen some success with the following tactics; low-funnel search awareness, social budget reallocations to move ‘up funnel’ to reach broader in-market shoppers to take advantage of falling CPM rates, overlay ORACLE dataset to hyper-target local in-market audiences, aggressively (re)pricing vehicles to drive intent and piggy-backing on OEM CPO program benefits where available,” PureCars said. Here’s how the numbers have shaken out recently in pre-owned. Franchised dealers had a 24% drop in used-car retail sales the week ending April 5, according to J.D. Power Valuation Services, following 32% sequential and nearly 40% year-over-year declines in March. Of the 25 states that provide vehicle sales data to Cross-Sell Interactive (part of Dominion Dealer Solutions), only one shown in a state-by-state comparison graph—

North Dakota, which was up 10%— showed year-over-year growth in combined new- and used-vehicle sales in March. The heaviest decline shown in Cross-Sell’s data set was in Missouri, where combined new and used sales were down 52%. New York was next at 46%. Several others, like Texas (down 28%), Michigan (27%), Indiana (25%) and Colorado (25%), had declines near 30%. Overall, new- and used-vehicle sales fell 19.6% year-over-year, among states in Cross-Sell’s data set. In the 25 states that report data to Cross-Sell, there were 1.91 million used-vehicle sales for March, which was up 9.1% from the 1.75 million used sales in February. However, the picture changes when looking at year-over-year comparisons. Used-car sales in the 25 states were down 21.1% from the 2.42 million sold in March 2019. Total used-vehicle sales in March fell 18.4% year-over-year, according to Cox Automotive, which

estimated the used-car SAAR for the month at 32 million. It was 39.2 million in March 2019 and 39.8 million in February, Cox said. For retail used (which Cox Automotive defines as sales from either franchised dealers or independent dealers, excluding private-party sales), the SAAR was approximately 17.3 million for March. It was 20.6 million a year ago and 21.2 million in February. In addition to the 18% drop in total used sales for March, Cox Automotive also observed a 38% decline in new-car sales, with the downturn in both picking up as the month went along. A bit of a silver lining though, as Cox Automotive said in an analysis: “The decline in sales bottomed last week, as we’ve seen seven consecutive days of improvement in year-over-year declines of both new and used through Wednesday, April 8.” We thank Auto Remarketing for reprint permission.

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Coronavirus Has Dealerships Moving to Online Sales—and Car Buying May Never be the Same by Mark Phelan, Detroit Free Press

The way we buy cars may never be the same, as auto dealers adjust to working under COVID-19 restrictions and customers discover they prefer the new approach, which leans heavily on internet sales and vehicle demos and could include valet-style pickup and delivery service for everything from test drives to oil changes. “This is going to fundamentally change how people view buying a car,” said Rhett Ricart, CEO of Ricart Automotive Group in Columbus, OH, and chairman of the National Auto Dealers Association. “By the end of this year, you’re going to see 80% to 90% of U.S. new car dealers with full e-commerce capability in their shops” to handle everything online but the test drive and—maybe—the final signature, he said. Online deals at Ricart’s domestic dealerships have doubled during the last six weeks, he said. In Michigan, Gov. Gretchen

Whitmer’s extended “stay home” order clears the way for that, after a month when nearly all vehicle sales were prohibited in the state. It allows “workers at motor vehicle dealerships who are necessary to facilitate remote and electronic sales or leases, or to deliver motor vehicles to customers, provided that showrooms remain closed to in-person traffic.” Michigan dealers have been hoping and making plans for just such a change. Deliveries could begin as soon as they work out a process that addresses all the legal documents that are part of buying a vehicle. “We’re seeing a fundamental change in the way cars will be sold,” said Doug North, owner of North Bros. Ford in Westland, MI, and chairman of the North American International Auto Show. “This pandemic is going to create some permanent changes.”

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44 MAY 2020 AUTOBODY NEWS / autobodynews.com

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New COVID-19 Programs Focus on Service Departments by Auto Remarketing staff

Two new auto service programs are now available to help dealers during the COVID-19 pandemic, one providing data on closed repair order volume, which could help new-car dealerships understand and respond to changes in demand for vehicle maintenance and repairs. DriveSure is a customer retention product designed for new car dealerships, and it has compiled data on closed repair order volume. The data is a seven-day moving average of the weekly number of closed repair orders per dealership. It is a compilation of nearly 100 U.S. new-car dealerships. Updated daily, the data is meant to help dealership general managers and service directors understand rapid market changes. DriveSure says that on average since late February, reporting dealerships have shown a 40% drop in closed repair orders. “This is a time of uncertainty for all of us,” DriveSure President Bill Springer said in a news release. “We are sharing this aggregated information to help dealerships get some clear answers and be able to make decisions based on trends they

are seeing relative to other dealerships throughout the United States," Springer continued. DriveSure will also offer and curate tips for minimizing the long-term negative effects on fixed operations. “We know dealerships will be relying heavily on service revenue as vehicle sales sharply decline,” Springer said. “This information will give decision makers an opportunity to stay ahead of changes to service demand as much as they can and come out strong on the other side.” In other news, CarAdvise, which describes itself as “the nation’s largest consumer fleet,” has launched No Contact Car Care, an expansion of its digital technology in response to COVID-19. CarAdvise designed No Contact Car Care to protect people still relying on their vehicle for essential goods and services. The company said many of its customers are gig economy workers such as shoppers and others in areas such as rideshare and delivery. “Their current role is absolutely critical during this pandemic as they have been instrumental in maintaining the supply chain and supporting the economy,” CarShare writes.

The company describes No Contact Car Care as an automated, digital process. During that process, the user schedules, approves services and pays all from his or her smartphone. The process requires no human interaction. CarAdvise says with No Contact Car Care, consumers and automotive service center employees can maintain a high level of safety and operate under governmental distinction as an essential business. The company features a network of more than 20,000 shops nationwide. It is working with each national brand, franchise location and independent shop to adopt and become certified in No Contact Car Care. CarAdvise says it designed the effort to exceed CDC and local safety guidelines “because it removes human interaction entirely.” The company says No Contact Car Care is a fully digitized avenue that promotes social distancing beyond the recommended 6 ft. CarAdvise customers take the following steps: Schedule service online through CarAdvise. Drop keys at the counter or dropbox at the shop. Electronically approve and pay for services. Pick up the vehicle upon completion of service, with no direct

human interaction. CarAdvise electronically stores all receipts in the CarAdvise dashboard. That requires no signing or receiving a paper receipt. “Now is a time for not just every company in the automotive industry to unite, but also for every citizen in the United States to do their part to ensure we do everything we can to stop the spread of this deadly virus,” said CarAdvise founder and CEO Greg Tepas. “No Contact Car Care is our way of helping protect those who are continuing to provide crucial supply chain services to every American, as well as those who help keep those drivers on the road by servicing their vehicles," Tepas continued. CarAdvise has also pledged to donate $1 for every No Contact Car Care service performed now until Dec. 31. That is an effort to help COVID-19 victims. The company will also allocate the funding toward the Center for Disaster Philanthropy and the World Health Organization’s COVID-19 Response Fund. CarAdvise said it has asked additional industry leaders to join in and donate to the cause. We thank Auto Remarketing for reprint permission.

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Why You Should Keep Advertising During a Major Market Downturn Businesses nationwide are taking a hard hit due to the Covid-19 pandemic, and the print media industry is no exception. Often times during an economic crisis, businesses may end up cutting marketing expenditure in an effort to save money. However, history tells us that cutting advertising budgets during a downturn can actually hurt your business long-term as opposed to helping it. Forbes gives us a list of several different brands who benefitted by maintaining their marketing budget during an economic downturn. Here are their stories. Kellog’s Cereal Brand In the 1920’s, Post Foods Cereal brand was the category leader for ready-to-eat cereal. During the Great Depression, Post cut back on their advertising budget while Kellogg’s Cereal Brand doubled their advertising spend, investing in radio and introducing a new cereal called Rice Krispies, featuring “Snap, Crackle, and Pop.” Kellogg’s profits grew by 30% resulting in the company becoming the

category leader, a position it has maintained to this day. Toyota Corolla The 17-month recession of 19731975 was triggered by the energy crisis. In late 1973, the U.S. government issued its first miles-pergallon report in which Toyota Corolla was second to Honda Civic in fuel efficiency. Since Toyota was experiencing strong sales, when the economic downturn hit, the temptation was to drop their ad budget, which they resisted. By adhering to its long-term strategy, Toyota surpassed Volkswagen as a top imported carmaker in the U.S. by 1976. Taco Bell and Pizza Hut In the 1990-1991 recession, Pizza Hut and Taco Bell took advantage of McDonald’s decision to drop its advertising and promotion budget. As a result, Pizza Hut increased sales by 61%, Taco Bell sales grew by 40% and McDonald’s sales declined by 28%. Amazon

Amazon sales grew by 28% in 2009 during the “great recession.” The tech company continued to innovate with new products during the slumping economy, most notably with new Kindle products which helped to grow market share. As a result, in the minds of consumers, Amazon became an innovative company by introducing a lower cost alternative to cash-strapped consumers. While the temptation now may be to cut back on advertising, you may want to reconsider. Instead, redirect your brands’ message to match the current economic climate but be careful with the type of message you put out there, especially during these fragile times. Covid-19 has impacted many individuals on a personal level, and you don’t want to risk coming off as insensitive or exploitative. Whatever your message may be, it’s best to keep a positive, inspirational and helpful tone. Sources: Forbes – When A Recession Comes, Don’t Stop Advertising, By Brad Adgate

Ford Tests Social-Distancing Wearables by Yoel Minkoff, Seeking Alpha

Ford is experimenting with wristbands that vibrate when employees come within 6 ft. of each other as part of a broader array of new safety protocols.

The devices could be deployed more widely once the carmaker reopens its idled manufacturing plants. Ford is also expected to subject all workers entering a facility to a thermal-imaging scan and will provide staff with masks and, in some cases, plastic face shields. We thank Seeking Alpha for reprint permission.

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48 MAY 2020 AUTOBODY NEWS / autobodynews.com

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