May 2022 Southeast Edition by Autobody News

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Florida Revokes Titles of Nearly 400 Illegally Imported Cars by Chris Chilton, CarScoops

Florida is revoking the titles of almost 400 cars imported from Japan on the gray market, which the state said were registered fraudulently. A letter circulating on social media from the Florida Highway Patrol Bureau of Criminal Investigations and Intelligence said the cars’ titles are being revoked after an investigation uncovered numerous examples of cars being logged with authorities using documentation that incorrectly stated they complied with legal requirements.

“All vehicles identified in this investigation that have obtained fraudulent Florida titles will be ineligible for titling in Florida, regardless of any corrective measures taken,” the letter said. That’s bad news for the owners, but it gets worse for any of them thinking they can just sell their rides out of state to get out of a sticky fix and recover some cash. “Furthermore, the United States Department of Homeland Security has notified the Florida Highway Patrol that all vehicles in this invesSee Florida Revokes Titles, Page 6

U.S. Rep. Warren Davidson of Ohio Co-Sponsors Federal REPAIR Act by Camille Sheehan, Auto Care Association

The Auto Care Association, Automotive Aftermarket Suppliers Association (AASA), CAR (Consumer Access to Repair) Coalition and Specialty Equipment Market Association (SEMA) applaud U.S. Rep. Warren Davidson, R-OH, for co-sponsoring the Right to Equitable and Professional Auto Industry Repair (REPAIR) Act. Introduced in February by U.S. Rep. Bobby Rush, D-IL, to provide consumers rights to their vehicle’s repair and maintenance data and safeguard a free and fair repair market, the

Credit: wirestock

REPAIR Act (H.R. 6570) is the only federal right to repair legislation that addresses this critical need in the automotive industry. Davidson is an automotive industry alumnus who ran his family

Vol. 13 / Issue 3 / May 2022

Hyundai Motor Manufacturing Alabama to Launch First U.S. Built Santa Fe Hybrid Hyundai Motor Manufacturing Alabama (HMMA) on April 12 announced it will continue to grow

its sport utility vehicle production capabilities later this year with the addition of the hybrid version of the

Santa Fe. The Santa Fe Hybrid will join the Elantra sedan, Santa Fe and Tucson SUVs, and Santa Cruz Sport Adventure Vehicle on the Montgomery assembly line. The addition of the Santa Fe Hybrid will mark the beginning of Hyundai’s electric vehicle production in the U.S. The latest milestone for HMMA received the green light during a recent project agreement signing ceremony with Alabama Gov. Kay Ivey at the state capitol and was announced by José Muñoz, See Santa Fe Hybrid, Page 8

Bad Driving Has Americans on Edge The roadways changed drastically at the onset of the pandemic, even with fewer drivers on the road, traffic deaths have soared throughout the pandemic. According to the National Highway Traffic Safety Administration, despite miles driven declining by 11%, there was a 6.8% increase in fatalities from motor vehicle crashes in 2020.

See Federal REPAIR Act, Page 18

The problem continued to get worse as people returned to the roadways with fatalities increasing 12% through the first nine months of 2021. Despite a decrease in miles driven, accidents are likely to be more severe—even fatal—from reckless driving behaviors like

speeding or not wearing a seat belt. As we enter Distracted Driving Awareness Month, a new study from Nationwide found drivers are practicing poor driving behavior despite fears of others driving dangerously. Drivers say the road is considerably more dangerous today than before the pandemic, with half saying that driving is more stressful. Reckless behavior behind the wheel is happening everywhere and drivers are taking notice of other people’s wild actions. Compared to 2020: 81% think drivers are more aggressive 79% think drivers drive faster 76% think drivers are more reckless Even more frightening, more than a third of drivers (34%) believe it is safe to hold your phone while driving—whether that is to make a call, send a text or use navigation. This feeling is more prevalent in younger drivers: • 39% of Gen Z and Millennials think it’s safe to be using the phone See Bad Driving, Page 20

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Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (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 Permissions Editor: 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. ©2022 Adamantine Media LLC.

American Icon Automotive Finishes �� 14

Industrial Finishes and Systems �� 27

Audi Gwinnett �� 28

John Heister Automotive �� 39

Audi Wholesale Parts Dealers �� 43

Kia Motors Wholesale Parts Dealers �� 41

Farmers Insurance Wins NABC Award �� 28

AutoNation Ford-Lincoln �� 34

KSI Auto Parts �� 8

GM Headlight Recall Issued Over

Axalta Coating Systems �� 2

Landers Chrysler-Dodge-Jeep �� 20

Beaman CDJR Wholesale Parts �� 29

LKQ Corporation �� 19

Car-O-Liner �� 11

Matrix Edge �� 5

Certified Automotive Parts Association �� 16

Mazda Wholesale Parts Dealers �� 40

City Kia of Greater Orlando �� 38

Mercedes-Benz Wholesale Parts Dealers �� 40

Classifieds �� 46

Miami Lakes Automall �� 10

Dale Earnhardt Jr. Chevrolet �� 32

MINI of Charleston �� 28

Dominion Sure Seal, Ltd. �� 18

MOPAR Wholesale Parts Dealers �� 33

Eagle Abrasives �� 48

NOROO Paint & Coatings �� 17

Equalizer Auto Glass Tools �� 6

Parks Chevrolet �� 22

Fix Auto USA �� 13

PPG �� 9

Ford Wholesale Parts Dealers �� 44

Rick Hendrick Chevrolet Naples �� 38

GM Wholesale Parts Dealers �� 42

Rogers-Dabbs Chevrolet �� 31

Gus Machado Ford �� 30

SATA Dan-Am Company �� 7

Harper Volkswagen �� 35

Spanesi Americas �� 21

Hendrick Automotive Group �� 37

Steck Manufacturing Company �� 12

Hendrick Honda Pompano Beach �� 39

Stivers Decatur Subaru �� 36

Hendrick Kia Cary �� 26

Subaru Wholesale Parts Dealers �� 45

Hendrick Kia Concord �� 26

Tameron Hyundai �� 32

Hendrick Volvo Cars of Charleston �� 38

Volkswagen Wholesale Parts Dealers �� 47

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

Wrenchers �� 15

REGIONAL

Branch Launches 6 New States �� 8

Colors on Parade Opens in Charleston, SC �� 8

CCC Launches Integration with asTech �� 18

Florida Revokes Titles of Nearly 400 Illegally

CDK Global Supports ASE Foundation �� 46

Imported Cars �� 1 Hyundai Motor Manufacturing Alabama to Launch First U.S. Built Santa Fe Hybrid �� 1 Report: 65% of Virginia Businesses Say Gas Prices Significantly Hurt Recovery �� 10 Sonic Automotive Opens EchoPark in Raleigh, NC �� 14 Southeast Collision Conference Scheduled for June 24-25 �� 6 TN Auto Body Shop Owner Focuses on 3D Printing and Manufacturing Car Parts, Proprietary Coatings �� 12 Virginia Bans ‘Carolina Squat’ Vehicle Modification �� 16

Dingle Family Continues Journey with Their Recycled Ride �� 40 EagleMMS Software Soars to the Top of Auto Body Shops’ To-Do Lists �� 30 EV Operating Costs Appear Much More Appealing as Gas Prices Soar: Report �� 44

Low-Beam Glare �� 14

as Reservations Increase to 65,000 �� 47 Improved Semiconductor Supply Drives Truck Market Share Gains for GM �� 47 New Standardized Independent Adjuster

Porsche to Replace 1,000-Plus Cars Lost

Anderson - Tips to Help Auto Body Shops

on Sunken Cargo Ship �� 43

Get Paid for Crucial Step of Destructive

Repairify Completes Record Scans �� 6

Weld Testing �� 26

Sherwin-Williams Debuts E-Solution �� 14

Yoswick - Collision Repair Industry Trend Data Shows Need for Changes to Insurer DRP Metrics �� 34

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

GM to Expedite Hummer EV Production

Competency Exam Announced �� 42 COLUMNISTS

INDEX OF ADVERTISERS

CONTENTS

Startups, AkzoNobel to Collaborate �� 16 Supply Chain Issues and Repair Complexity Major Concerns in 2022 �� 36 Tesla Roadster Reservations Reopen

NATIONAL ‘Who Pays for What?’ Survey Shows More Auto Body Shops Billing, Being Paid for Masking During Priming �� 46

Ahead of 2023 Production �� 20 U.S. Rep. Warren Davidson of Ohio Co-Sponsors Federal REPAIR Act �� 1 USDOT Announces New Vehicle Fuel

1Collision, Auto Techcelerators Partner �� 32

Economy Standards for Model Year

2021 Ford F-150 Trucks May Suddenly

2024-2026 �� 45

Shift into Neutral �� 43 ASE Training Conference Set �� 10 Bad Driving Has Americans on Edge �� 1 Biden’s FY 2023 Budget Proposal Includes Investments in EVs, ADAS, Autonomous Vehicles �� 4

Vehicle Connectivity Surging, but Consumer Paid Subscription Share in Sharp Decline �� 4 WIN to Recognize 2022 Most Influential Women Award Winners During Hybrid Educational Conference �� 22

Hyundai Wholesale Parts Dealers �� 44

autobodynews.com / MAY 2022 AUTOBODY NEWS 3

Biden’s FY 2023 Budget Proposal Includes Investments in EVs, ADAS, Autonomous Vehicles President Joe Biden released his $5.8 trillion budget proposal for fiscal year 2023, which builds on the investments made in the Infrastructure Investment and Jobs Act, passed last year, by allocating $105 billion to the U.S. Department of Transportation.

Included in the budget are important projects for independent vehicle repair shops related to vehicle safety, autonomous vehicles, electric vehicle deployment and emissions reductions. The budget includes $49.8 million for the National High-

“From roads, tunnels and bridges to airport and port improvements, electric vehicle chargers, safe bike lanes and more, we are building a first-rate transportation system for all Americans.” — Pete Buttigieg “The investments in the presdent’s budget make traveling safer, easier, cleaner and more affordable for the American people,” said U.S. Transportation Secretary Pete Buttigieg. “From roads, tunnels and bridges to airport and port improvements, electric vehicle chargers, safe bike lanes and more, we are building a first-rate transportation system for all Americans.”

way Traffic Safety Administration’s (NHTSA) Vehicle Safety Research program, which studies vehicle improvements and other technical advances that can better protect people in a crash and reduce the likelihood of crashes. Portions of the $49.8 million will go toward Advanced Driver Assistance Systems (ADAS) and Automated Driving Systems

(ADS) research that facilitates innovation and development of new tests, tools and procedures to properly evaluate the safety of new technologies surrounding highly and fully automated vehicles. In the proposal, the Federal Highway Administration (FHWA) is allocated $1 billion in advance appropriations to work with the newly formed Joint Office of Energy and Transportation to implement the new National Electric Vehicle Infrastructure (NEVI) Formula Program. This program will assist states in creating a network of convenient, affordable, reliable and equitable electric vehicle charging stations along the Interstate Highway System to build designated Alternative Fuel Corridors. The FHWA budget also includes $400 million to implement the new Charging and Fueling Infrastructure Grants Program, designed to further increase electric vehicle charging access in locations throughout the country through competitive grants, and

$1.3 billion for the Carbon Reduction Program, which will provide formula grants to states to reduce transportation emissions. The budget proposal aligns with Biden’s climate and energy goals and includes $27.5 million in funding for the Corporate Average Fuel Economy (CAFE) program and $14.5 million for the New Car Assessment Program (NCAP). In August 2021, NHTSA responded to Biden’s Executive Order on Protecting Public Health and the Environment by amending the CAFE standards for vehicles model year 2024-2026 to require increased stringency for fuel efficiency standards. The release of the president’s budget proposal is the kickoff for the months long budget process. Lawmakers can now begin crafting the legislation that will make up the 2023 federal budget, using Biden’s proposal to guide them in the administration’s priorities. Source: Automotive Service Association

Vehicle Connectivity Surging, but Consumer Paid Subscription Share in Sharp Decline According to global technology intelligence firm ABI Research, connectivity will be available in more than half of new vehicles sold in 2022 and more than 70% in 2028.

Carmakers are committed to connectivity because of its various benefits, including fleet management, reduction of warrant costs, convenient electric vehicle (EV) ownership and over-the-air (OTA) updates. However, they still have not found an effective strategy to recoup the connectivity and airtime costs. Connected services adoption is low, especially among lower-tier vehicles, and the increase in free trial periods means the ratio of paid subscriptions will contract by 20% between 2021 and 2028. Despite moving to become ubiquitous, vehicle connectivity is still not a significant revenue source.

“Due to the prevalence of high traffic phone data plans, end consumers have little motivation to pay for connectivity and rarely renew subscriptions after the free trial period, which carmakers are constantly extending,” said Maite Bezerra, smart mobility and automotive research analyst at ABI Research. “This is especially true for infotainment services that compete with free phone mirroring. This reality signals that it will be challenging for carmakers such as Stellantis, Ford and GM to achieve their recently announced goals to generate $20 billion in software and services revenues annually by 2030, at least 13 times what they generate today.” From premium to volume cars, nearly all carmakers are committed to deploying software-defined vehicle platforms and betting on revenues from delivering software-enabled services and features OTA. That requires the establishment of a revenue-generating consumer touchpoint where these new services will be bought or updated, essentially relying on user engage-

4 MAY 2022 AUTOBODY NEWS / autobodynews.com

ment with embedded infotainment systems rather than mirroring through CarPlay or Android Auto.

dle. ABI Research expects more than 70% of active infotainment subscriptions to be on a free trial or

“Due to the prevalence of high traffic phone data plans, end consumers have little motivation to pay for connectivity and rarely renew subscriptions after the free trial period, which carmakers are constantly extending,” — Maite Bezerra “However, most subscription revenues presently derive from essential telematics and remote services rather than infotainment,” Bezerra pointed out. Connected services subscriptions are being extended to drive higher customer engagement. The average free trial period in the U.S. is increasing from three to six months, in Europe from one to three years (e.g., Polestar), and in China, many carmakers offer free for life connectivity (e.g., NIO, SAIC-GM). The drawback of such a strategy is the ratio of subscriptions paid by the final consumers will dwin-

free-for-life arrangement in 2022. Further adding to the connected vehicle monetization challenge, software-defined vehicle platforms will considerably increase monthly data consumption—from 400500 MB to up to 2-20 GB—and connectivity costs, which neither carmakers nor end consumers have been willing to pay so far. “Nevertheless, EVs could be the panacea for low connected services adoption by final users as they significantly improve ownership convenience,” concluded Bezerra. Source: ABI Research

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Repairify Completes Record Scans

Southeast Collision Conference Scheduled for June 24-25 The Carolinas Collision Association (CCA), in partnership with the Tennessee Collision Repairers Association (TCRA) and Gulf States Collision Association (GSCA), will hold its first combined annual Southeast Collision Conference June 24-25 at the Gateway Conference Center in Richburg, SC. Before the conference kicks off, on June 23, Collision Hub’s Kristen Felder and Larry Montanez, of P&L Consultants, will do a full day’s event on total loss processes and employee pay plans. This event will also feature Rachel James of Northwestern Mutual. There will also be an industry mixer on the evening of June 23 and awards show, to celebrate area industry professionals, that will be exclusive to participating members and vendors. At the event, a vehicle will be donated by K&M Collision of Hickory, NC, through the National Auto Body Council Recycled Rides program. North Carolina Farm Bureau provided the vehicle, which will be donated to a deserving person, found by Safe Harbor. Safe Harbor is a Christ-cen-

Repairify, Inc., unveiled key insights from its record 2021 yearend, including that its family of brands completed more than 12.4 million automotive diagnostic scans and delivered more than 4.9 million diagnostic reports across the collision, mechanical, dealership, auction and reconditioning repair markets. The record-setting year marked a watershed moment for Repairify. The company completed five acquisitions and expanded its capabilities beyond collision repair technology into diagnostics for mechanical repairs, data insights for ADAS calibrations and vehicle reconditioning workflow and inspections. Beyond the delivery of a record-setting year, Repairify’s 2021 performance was capped by several strategic investments, multiple industry partnerships and a new exclusive global patent licensing and supply agreement with LAUNCH Tech. Source: Repairify, Inc.

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Florida Revokes Titles tigation that have had a Florida title canceled/revoked have been placed on a contraband list and would be ineligible for a title/registration in any state,” the letter continued. The letter finished by suggesting affected owners could export their cars from the country, keep them in non-operative condition or surrender the vehicles to the nearest Port of Entry, where they will be seized as contraband. The investigation identified several auto businesses, including Soho Alliance LLC, Soho Imports LLC, and J-Spec Garage LLC, that were engaged in fraudulently applying for vehicle titles in Florida between 2014 and 2020.

Michael Satterfield from The Gentleman Racer dug into booking records and discovered the companies are owned and operated by Andres Diaz and Nicole Chiong, both of whom have been charged with falsifying title documents but appear to have been renewed on bond pending trial. Satterfield went through the list of no-no VINs, decoding them to reveal the affected cars, and came up with some interesting information. While the majority are JDM-spec cars such as R34 Nissan Skyline GT-Rs and S15 Nissan Silvias that would have been too modern to qualify for importation under the 25-year rule that makes importing non-federalized cars easier, a Mercedes C300 and Porsche 911 Turbo also make an appearance.

tered community for rebuilding, renewing and recovery. The nonprofit supports the community through long-term recovery programs for women, transitional housing and facilitating charitable giving through programs like “Hope on Wheels.” This provides reliable transportation to women and families in their faithbased “Whole Woman” program. June 24 and 25 will feature several workshops. Assured Performance will kick off the conference with a workshop featuring Mike Anderson, followed by classes with James, David Luehr of Elite Body Shop Solutions, Felder, Montanez, Bruce Schronce of StrongLead, Michael Bradshaw of K&M Collision, David Willett of Spark Underwriters, Richard and Sam Valenzuela of NABR, Alex Whittit of Intrepid Direct and Mark Olson of Veco Experts. There will be more than $1,000 in prizes for winning attendees that participate in diverse skills challenges, judged by special guests and other industry professionals, that will only be available for members of CCA, TCRA and GSCA.

There will also be an “open mic” with industry leaders Anderson, Olson, Bradshaw and Felder, who will answer all questions from the audience. No question is off limits unless it violates antitrust. There will be live demonstrations on equipment from Lombard Equipment, Pro Spot, Autotality, Keco and Betag, and training classes for every skill level. Finally, the John Eagle vehicle will be on site thanks to Intrepid Direct Insurance. We would like to thank our Platinum and Gold Level sponsors for helping to make this possible. Platinum Level: Lombard Equipment, Calibrators of the Carolinas and Shop Fix. Gold Level: Betag North America, Assured Performance, AkzoNobel and Keco. For more information email info@southeastcollisionconference. com or visit www.carolinascollisionassociation.com For more information about how you can support Safe Harbor, visit https://safeharbornc.org/ Source: CCA, TCRA and GSCA

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Colors on Parade Opens in Charleston, SC Colors on Parade, the country’s largest mobile automotive paint and dent repair services franchise, is pleased to announce the opening of its newest franchise unit. Servicing Charleston, SC, and its surrounding counties, the new franchise is owned and operated by brothers Ryan and Aryn Hogue.

Working alongside Area Developer Steve Hughes, Ryan and Aryn will bring eco-smart automotive repair services to their community at an affordable price. In addition, the new franchise will provide car dealerships with the highest

Continued from Cover

Santa Fe Hybrid president and CEO, Hyundai Motor North America in New York City. Recently announced production enhancements at HMMA including the start of production of Santa Fe Hybrid will include $300 million in investments and the creation of 200 additional jobs.

“Hyundai Motor Company is taking its first steps toward bringing electric vehicle production to the United States. We are excited to showcase our team members in producing electric vehicles here in Alabama,” said Ernie Kim, president and CEO, Hyundai Motor Manufacturing Alabama. “Over the years, we have developed an enduring partnership

quality reconditioning services for their inventory with a quick turnaround time. Prior to joining the automotive paint restoration industry, Ryan and Aryn worked in their family’s very successful landscaping business for more than 20 years. After learning more about the earning potential and flexibility the Colors on Parade lifestyle offers, they decided to begin learning this skill and ultimately made the jump to become franchise owners. For the past year, the two brothers have been working with the Colors on Parade Charleston team to hone in on their skills. In March, they completed their franchise certification training course at the corporate headquarters in Conway, SC, and have since returned to Charleston as official Colors on Parade franchise owners. “As we continue to grow Colors on Parade with more locations across the country, it is a goal to make convenient, affordable mobile paint and dent repair services accessible for our customers,” said Jeff Cox, president of Colors on

Parade. “A key component to doing so is our group of passionate franchisees who provide a high-level of expertise and professionalism to our customers. We’re excited to welcome Ryan and Aryn to the Colors on Parade family!” With more than 30 years of experience and more than 250 operating franchises across the U.S., Colors on Parade is consistently ranked by Entrepreneur magazine as one of the nation’s top automotive franchise systems. The company’s extensive training and certification process allows new franchisees to provide customer services safely onsite while using an exclusive process. Franchise opportunities remain available throughout the U.S. More information can be found at franchising.colorsonparade.com. Source: Total Car Franchising System

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Branch Launches 6 New States Branch, a full-stack insurance company that pioneered instantly-bundled home and auto insurance, announced April 1 its expansion to six new states including Idaho, Iowa, New Hampshire, South Dakota, Tennessee and Virginia. These new additions bring Branch’s total state roster to 25 and means 49% of Americans can access Branch’s instant-pricing capability. Through Branch’s rapid growth, the company maintains a stellar customer service experience with an impressive 4.8 Trustpilot rating. Having launched in six new states since the beginning of 2022, Branch continues to attract new members with its instant-pricing capability and average annual bundled savings of $535. With the goal of national coverage halfway completed, Branch continues to pave the way for convenient and affordable insurance with the aim of being available in all 50 states before the end of 2022. Source: Branch

with Hyundai, and it’s been great to witness the profound economic impacts of the company’s continued investments in Alabama,” Ivey said. “Hyundai’s new growth plans in Montgomery will help prepare the state’s auto industry for the EV revolution while also aligning with our strategic initiatives such as Drive Electric Alabama. This is another major milestone for our friends at Hyundai.” HMMA will begin plant expansion projects ranging from additional warehouse space to enhanced assembly processes to support electric vehicle production. The Santa Fe Hybrid will begin production in October 2022. The addition of the Santa Fe Hybrid will strengthen HMMA’s position as a preferred employer in Montgomery and continue to increase high quality jobs at the plant and throughout its supplier base.

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ASE Training Conference Set

Report: 65% of Virginia Businesses Say Gas Prices Significantly Hurt Recovery by Tyler Arnold, The Center Square

The 2022 ASE Instructor Training Conference is scheduled for July 12-15 at the Embassy Suites Hotel in Frisco, TX. Hosted by the ASE Education Foundation, the conference is planned for high school and college instructors from auto, truck and collision repair programs nationwide. Offering more than 20 hours of technical update training, the in-person conference will provide separate tracks for auto, medium/heavy truck and collision repair instructors. The cost for instructors from ASE-accredited programs is $550 per person while the cost for instructors from non-accredited programs is $650 each. For more information and to register, visit the ASE Education Foundation website at https://aseeducationfoundation.org/events/ase-instructor-training-conference Source: ASE

Rising gas prices are having a significant negative impact on the economic recoveries of nearly twothirds of Virginia small businesses, according to a poll released by the small business organization Alignable. “Nearly two out of three Virginian small business owners (65%) told us they’ve been very significantly affected by the elevated gas prices over the past couple of weeks,” Chuck Casto, the head of research and news at Alignable.com, told The Center Square. “While the average for the U.S. was even higher—68%—the pain at the pump felt by Virginia’s small business owners is still quite severe, and has impacted their margins, making their recovery slower than it was earlier this year,” Casto said. The average cost for a gallon of gas in Virginia is slightly more than $4.10 as of March 30, according to AAA data. Some localities in northern Virginia are reporting averages higher than $4.20 cents per gallon. Just one month earlier, the average

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statewide cost was less than $3.44 per gallon and one year ago, the average was less than $2.73 per gallon. Some Virginia-based business associations have said that high gas prices, combined with worker shortages and rising inflation, are all having negative impacts on their members. “There’s no question that higher gas prices are a challenge for small business owners,” Julia Hammond, the Virginia state director for the National Federation of Independent Business, told The Center Square. The NFIB is the largest small business association in the country. “This latest financial burden is just the latest of a host of problems for our already struggling entrepreneurs who are already facing rising inflation, problems hiring workers and supply chain disruptions,” Hammond said. “Our small business owners here in Virginia are resilient and ready made to maneuver obstacles, but when you put all the obstacles together, it could equal disaster for mom-and-pop shops across the Commonwealth.” Businesses that rely on tour-

ism, such as hotels and restaurants in some areas, are being negatively impacted because high gas prices discourage people from traveling, according to Robert Melvin, the director of government affairs at the Virginia Restaurant, Lodging & Travel Association. Melvin told The Center Square most Virginia travel destinations are accessed through driving rather than flying, such as Virginia Beach and the peninsula. Gov. Glenn Youngkin and legislative Republicans have proposed plans to provide some relief at the pump through alleviating the gas tax. A Republican proposal to suspend the recent five-cent gas tax increase until July 1, 2023, failed to garner support from the Democrat-controlled Senate. However, the governor plans to propose a different bill, which would create a three-month gas tax holiday, during the upcoming special session. This would suspend the state’s full 26.2-cent-per-gallon tax for that time period. Both the NFIB and the VRLTA support gas tax relief.

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autobodynews.com / MAY 2022 AUTOBODY NEWS 11

TN Auto Body Shop Owner Focuses on 3D Printing and Manufacturing Car Parts, Proprietary Coatings by Stacey Phillips

Rick Spears, owner of Malibu Collision in Knoxville, TN, has always been interested in new technologies. As a result, he strived to incorporate state-of-the-art equipment and automotive materials in his collision repair facilities over the years. Eventually, he opened TRU-DESIGN, a 3D printing company adjacent to his body shop. The company has worked on a wide range of projects, including a full-size, drivable Shelby Cobra, and produces proprietary additive manufacturing (3D-printed) coatings. “3D printing is going to change everything in the future, including the body shop industry,” said Spears. “It’s really exciting to be part of this growing field that is taking off like a rocket.” Born in Texas and raised in Florida, Spears became involved in the body shop business in 1975. He was attending school in Florida in the 1970s and received a scholarship in commercial art. “I was dating a lady whose dad owned two Ford dealerships and I began painting for his business while attending college,” Spears recalled. “I quickly found that artistry paint doesn’t act the same as automotive paint.” Hoping to work as an artist at Walt Disney World, he realized he could earn more painting cars than working as an artist. He worked his

Rick Spears said the Shelby Cobra is a great example of a full-scale, fully functional “rolling laboratory”

way up from a painter’s helper and sweeping floors to becoming a driver, then a manager, and later opened two collision repair facilities in Florida. After moving to Tennessee, Spears opened Malibu Collision Center in 1999. The company’s mission is to provide the most accurate and

quality collision repairs possible. It specializes in using advanced technology on all customer vehicles for major collision repairs, restorations and custom work. This includes working on high-end, luxury, vintage, custom and specialty vehicles. “We believe that materials such as carbon fiber, composites, fiberglass, aluminum and other advanced

Since opening TRU-DESIGN bon fiber parts for the lab. in 2010, Spears and his team have That same year, he partnered worked on a wide range of projects with the lab to print a 1965 Shelby with the Department of Energy, the Cobra replica for the Detroit Auto Department of Defense, the conShow. The goal was to complete struction industry and the automothe vehicle in six weeks with parts tive and insurance industries. In adprinted in 24 hours. “From CAD dition to printing car parts such as drawing to drivable car, the project fenders and hoods, TRU-DESIGN’s was unheard of,” he said. projects include a submarine for the The vehicle contains 500 Navy, air intake manifolds pounds of 3D-printed products, for F-16s and a house. 20% of which is carbon fiber reinIn 2014, Spears attended a forced ABS material. The 3D-printtradeshow in Washington, ed parts include the shell, support D.C., to learn more about frame, passenger monocoque, grille the use of carbon fiber. He and headrest brackets. met representatives from “The Shelby Cobra replica Oak Ridge National Labdemonstrates the power of modern oratory (ORNL), which additive manufacturing, rapid protohappened to be based in typing technology and 3D printing,” The Shelby Cobra contains 500 pounds of 3D-printed his home state of Tennessaid Spears. “It isn’t just proof that products, 20% of which is carbon fiber reinforced ABS see. They were looking for there’s more than one way to make material someone to make carbon a car—it’s the future of improving materials are the future of the auto- fiber parts for the lab’s Manufacturmanufacturing solutions in the automotive repair industry,” he said. ing Demonstration Facility (MDF), motive industry.” For many years, Malibu Col- which includes a 3D printing departSpears said it is a great example lision also concentrated on custom ment. of a full-scale, fully functional “rollwork and restoration projects. AlAfter the event, Spears met ing laboratory.” See 3D Printing, Page 16 though Spears was passionate about with ORNL and began making carthe jobs, he realized it was hard to earn money this way. Instead, he began focusing on repairing vehicles using carbon fiber, composites, fiberglass and aluminum. He also started creating custom carbon fiber parts ranging from door panels to speaker boxes. “I’ve always liked doing things differently,” he said. Malibu Collision’s work with carbon fiber and composite parts • Easy, safe removal of inner bearing race has been featured on the DIY and SPEED channels as well as at NOPI • No need for expensive tools shows. • Works much faster than other options available The shop has received numerous awards, including “Best of Knoxville” two years in a row. In addition, it is a three-time recipient Part of both the Ford Medallion Manag#71310 er Award and Ford Top Gun Award, as well as Top 10% of GM Shops Award. The company’s first attempt at 3D printing a car was in 2008. “The power went off, we ran out of materials, and had software and hardware problems printing something so big,” recalled Spears. Although he said the car turned out ugly, he saved it as a reminder of the experience.

12 MAY 2022 AUTOBODY NEWS / autobodynews.com

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Sherwin-Williams Debuts E-Solution Sherwin-Williams® is addressing critical industry needs with the launch of Collision Core™. The feature-rich Collision Core suite of programs addresses key business operations in a shop including inventory, production, color, quality and scorecard (diagnostics). Collision Core focuses on optimizing labor through connected metrics from production and cycle time to customer satisfaction and profitability. The five solutions, which can be adopted individually or all together are Collision Core Inventory, Production, Quality, Scorecard and Color. Collision Core is an interconnectable suite of intelligent applications designed to build strength and stability into the core of any collision center’s business—removing silos and connecting data, refining and validating processes, optimizing labor and resources, educating and engaging employees, reducing waste and identifying root cause and effect. To request more information, visit Collision Core. Source: Sherwin-Williams

Sonic Automotive Opens EchoPark in Raleigh, NC Sonic Automotive, Inc., one of the nation’s largest automotive retailers, on April 5 announced the continued expansion of the EchoPark Automotive brand with the opening of its newest retail hub in Raleigh, NC. This is EchoPark’s 37th location to date and third in the state, adding to its existing Charlotte retail hub and Greensboro delivery center. “Expanding EchoPark’s footprint within our home state of North Carolina has always been an important part of our growth plans for the brand,” said David Smith, CEO of Sonic Automotive. “We look forward to welcoming guests from across North Carolina and surrounding states to enjoy our award-winning guest experience, whether they’re buying a car or simply selling us their current vehicle.” EchoPark guests are able to shop in person or take delivery of their purchase at the new Raleigh location after conveniently shopping online at EchoPark.com and choosing from thousands of high quality, one- to four-year-old pre-owned vehicles with clean CarFax reports. EchoPark’s easy, transparent

GM Headlight Recall Issued Over Low-Beam Glare by David A. Wood, CarComplaints.com

A GM headlight recall over lowbeam glare includes more than 740,000 model year 2010-2017 GMC Terrain SUVs after the National Highway Traffic Safety Administration denied a petition from General Motors to skip the headlight recall. General Motors said a reflection from the headlight housing may illuminate “excessively bright light” in areas above the Terrain and outside the view of the driver. “A reflection caused by the headlamps’ housing can project a narrow beam of light 80 degrees outboard and 45 degrees upward of each lamp’s forward-center axis,” GM said. GM also said the design of the Terrain headlights allows a narrow beam of light from the lower beam light to reflect off the inner surface of the high-beam reflector. However, the high-beam headlights are not affected. The headlight problem has been going on for years because it was in June 2019 when the automaker petitioned NHTSA for a recall exemption because only one GMC Terrain

owner had complained. That complaint didn’t mention bright lights or glare, but the complainant said the headlights shined into the tops of trees.

GM also said the headlights hadn’t caused any crashes or injuries even though the Terrain model years go back to 2010. Early in March, safety regulators denied GM’s petition and told the automaker it should issue a GMC headlight recall for 2010-2017 Terrains.According to GM, dealers aren’t sure what they will do to repair the headlight problem, but headlight recall notices are expected to be mailed April 23. GMC Terrain owners may contact GMC at 800-462-8782 and use headlight recall number N222363740.

14 MAY 2022 AUTOBODY NEWS / autobodynews.com

online purchase experience includes below-market, no-haggle pricing (including taxes and fees), a firm trade-in vehicle offer, competitive financing solutions and the ability to choose from a selection of quality vehicle protection plans. After scheduling a pickup appointment at an EchoPark delivery center or retail hub location, guests will be greeted by an EchoPark experience guide to help answer any questions and finalize all vehicle purchase details before quickly getting them on their way home with their new purchase. With more than 45,000 five-star reviews to date, the EchoPark experience is clearly resonating with guests. “With the opening of our EchoPark Raleigh retail hub, we continue to enhance the service we provide our guests by offering them yet another convenient option to shop online or in-store,” said Jeff Dyke, president of Sonic Automotive. “North Carolina remains a key market for us as we continue to execute our growth strategy to meet the increasingly strong demand for preowned vehicles across the nation.”

Following its 2014 launch, EchoPark has rapidly become one of the pre-owned automotive retail industry’s most prominent success stories. The company continues to expand its EchoPark footprint into new markets and anticipates 90% population coverage by 2025, enabling its interim goal of retailing 575,000 vehicles and generating $14 billion in annual EchoPark revenues by 2025, while driving toward a 2 million vehicle annual sales opportunity at maturity. EchoPark Raleigh is located at 2333 Walnut St., Cary, NC. It is open Monday to Saturday from 9 a.m. to 9 p.m. The store can be reached at (919) 376-0022, or online at www. echopark.com/dealerships/raleigh Source: Sonic Automotive

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Virginia Bans ‘Carolina Squat’ Vehicle Modification Virginia Gov. Glenn Youngkin on March 21 signed SB777, a bill to ban the dangerous vehicle modification known as a “Carolina squat,” at a ceremony in Lynchburg, VA. The governor was joined by the bill’s patron, Sen. Mark Peake, R-Lynchburg, and other legislative and law enforcement leaders. The family of Jody “BJ” Upton Jr., a young father tragically killed in a

collision with a truck with Carolina squat modifications this year, also joined the governor for the signing. “I’m honored today to be here with BJ’s family, the public servants who acted quickly to move legisla-

Continued from Page 12

3D Printing “Using this technology, car designers can test and enhance automotive technologies in real-time,” he explained. “With the ability to quickly print a working vehicle, manufacturers will begin to innovate at rapid rates.” After printing the Cobra, Spears began producing proprietary additive manufacturing coatings. “I realized that’s my business,” he said. “I’ve been doing coatings all of my life on cars and I thought who could make it better than someone who has used it all his life.” The award-winning patent-pending TD Coat and TD Seal coatings are designed to work with a wide variety of large printer format polymer-based substrates and feature very high adherence. TRU-DESIGN also produces tools for manufacturing and specializes in creating molds using the latest advancements in composites and additive manufacturing. “Our innovative practices and

tion to my desk to address the problem, and the law enforcement heroes who will enforce this new law and keep our roads and highways safer,” said Youngkin. “Nothing can bring BJ back, but with faith, time and love we can begin to heal from the pain of losing him. But the spirit of Virginia is strong, and when Virginians see a problem they come together and act.” “On Feb. 16, a Virginian, BJ Upton, lost his life in a tragic car accident,” said Peake. “Today, joined by members of BJ Upton’s family, my colleagues in the General Assembly and law enforcement leaders, we took a critical step forward to prevent any further lives being lost at the hands of this dangerous truck modification. I am honored to have carried this bill and am grateful to Gov. Youngkin and my colleagues for coming together in support of this important legislation.” SB 777 bans “Carolina squat” style modifications on Virginia

creative ideas are some of the company’s greatest strengths,” said Spears. “The unique partnership with Oak Ridge National Laboratory enables us to stay on the cutting-edge of automotive technology, research and new materials.” Spears said large format additive manufacturing has advanced in equipment and materials in a short period. “This has led to the adoption by industries as a viable manufacturing alternative or enhancement to traditional processes,” he said. Spears said there are numerous benefits to 3D printing. Not only are complex geometries now possible, but products can also move from design to market in weeks, rather than months or years. Design feasibility can also be confirmed prior to production, less storage is typically required and there is more material flexibility. “I’m on the side of the fence I’ve never been on in my life,” said Spears. “I’ve always repaired cars; now, I am on the other side of the fence and get to help develop these cars.”

16 MAY 2022 AUTOBODY NEWS / autobodynews.com

highways by further specifying that, within the absolute minimum and maximum height ranges, the height of the front bumper is to be no more than 4 inches greater than the height of the rear bumper. Carolina squat-style modifications are impractical, and can also be very dangerous. The suspension modifications change the function and handling of the vehicles. If the front end of the vehicle is higher than the rear end, the headlights are pointed towards the sky instead of illuminating the road ahead. The truck being angled compromises the driver’s view and alters the dispersion of mechanical force in the event of a collision. The bill became law March 22 once it was formally communicated back to the House Clerk’s Office and enrolled in the Act of Assembly. Source: Office of the Governor of Virginia

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Startups, AkzoNobel to Collaborate After winning Paint the Future awards, three startups have already signed letters of intent to continue working together on sustainable business opportunities with AkzoNobel. The solution from Israeli startup SolCold is a sustainable self-cooling coating based on anti-Stokes. It uses the sun’s energy to keep the inside temperature much cooler without having to use any electricity. Latvian startup Aerones brings a robotic solution to wind turbine maintenance. Its crawling robot allows technicians to safely and efficiently perform inspections, cleaning and repairs at height. From the Czech Republic, SprayVision brings a data-driven approach to optimizing spray application of paint, offering customers full control over the process. The solution helps to reduce environmental impact by saving material and improving quality. Source: AkzoNobel

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Federal REPAIR Act business: a small-batch machining and fabricating business which was transformed into a high-volume contract fabrication and injection molding manufacturer during his tenure. “By prohibiting vehicle owners from accessing and sharing data they generate, manufacturers stop consumers from accessing third-party repair shops,” said Davidson. “American vehicle owners have a right to control their data, and a right to access third-party repair shops, tools and parts. This bill would end manufacturers’ anti-competitive practices and restore consumer property rights.” “Thanks to Congressman Davidson, the bill is now a bipartisan effort,” said Bill Hanvey, president and CEO, Auto Care Association. “We thank the representative for recognizing that consumers deserve the right to choose where they get their vehicle repaired. In a time where Americans rely on their vehicles more than ever and are keeping their

vehicles longer due to economic uncertainty, we hope that other legislators follow suit.” “AASA applauds Rep. Davidson for joining Rep. Rush on this critical legislative push,” said Paul McCarthy, president and CEO, AASA. “The consumer’s ability to continue to have choice in where to repair, service, and maintain their vehicles is at stake. The bipartisan support from this bill, as we saw with the bipartisan-supported ‘Nixing the Fix’ report from the FTC, speaks to the fact that this automotive right to repair effort is not partisan, it is to support consumers, competition and free markets. Without action, consumers will face rising costs and fewer options. We look forward to working with both representatives on this important effort.” “The CAR Coalition applauds Rep. Davidson for co-sponsoring the REPAIR Act,” said CAR Coalition Executive Director Justin Rzepka. “This bipartisan legislation is critical to protecting the rights of consumers in the post-collision auto repair market. It is also crucial to ensuring the security and accessibility of vehicle

18 MAY 2022 AUTOBODY NEWS / autobodynews.com

data. As the cost of cars and repairs rise, consumers need more choices, not fewer, when it comes to repairing their own vehicles. The CAR Coalition looks forward to working with Rep. Davidson and Rep. Rush to advance the REPAIR Act on behalf of consumers across the country.” “SEMA and the specialty automotive aftermarket appreciate Rep. Davidson standing up for free and fair competition for consumers looking to service, repair or modify their vehicle,” said Daniel Ingber, vice president, government and legal affairs, SEMA. “The bipartisan REPAIR Act must be passed to protect access to vehicle systems, tools and information necessary for independent repair and modification services for millions of consumers.” Automotive aftermarket companies can urge legislators in their district to also co-sponsor the bill by visiting autocareadvocacy.org/takeaction-tell-congress-support-rightto-repair, aftermarketsuppliers.org/ repairact, carcoalition.com or semasan.com. Source: Auto Care Association

CCC Launches Integration with asTech CCC Intelligent Solutions on March 31 announced asTech®, a Repairify company and a leader in diagnostic, calibration and programming solutions, has joined the CCC® Diagnostics network. The integration makes it easier for repair facilities to capture and document scan information in CCC ONE® workfiles. This streamlined service is available now via CCC ONE. The integration does not require a physical connection between the asTech device and CCC ONE. Information is uploaded wirelessly and the scan report is automatically attached to the vehicle’s CCC ONE workfile. Activation is simple. Repair facilities using CCC ONE select their preferred diagnostic provider(s) from those available through CCC’s network and providers send scan data directly to the workfile. Source: CCC Intelligent Solutions

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Bad Driving while driving • 35% of Gen X think it’s safe to be using the phone while driving • 20% of Boomers think it’s safe to be using the phone while driving “Half of the drivers Nationwide surveyed said in the last six months they have held a cell phone to talk, text or use an app while driving,” said Beth Riczko, Nationwide’s president of P&C personal lines. “Far too many drivers are multitasking behind the wheel, putting everyone at risk by creating dangers for themselves, their passengers, pedestrians and others on the road—I promise you it isn’t worth it.” Despite reports of increasing danger, everyone thinks other drivers are to blame and they are not the ones contributing to the problem. 85% rate their driving as excellent or very good, but only 29% give the same rating to other drivers on the road around them. Drivers of all generations seem to

share this sentiment: • Gen Z—82% say they are good drivers/36% say others around them are good drivers • Millennials—86% say they are good drivers/38% say others around them are good drivers • Gen X—86% say they are good drivers/30% say others around them are good drivers • Boomers—85% say they are good drivers/20% say others around them are good drivers While people think they are good drivers, some of the behaviors they reported doing behind the wheel would indicate otherwise. Despite two-thirds of drivers (66%) saying holding a cell phone to talk, text or use an app while driving is dangerous, half (51%) reported doing this in the past six months, with Millennials doing this more than any other age group (67%). During the past 12 months: • 54% of drivers reported driving 10+ mph over the speed limit • 53% reported eating while behind the wheel • 23% said they have audibly

yelled at another driver • 21% have given an obscene gesture • 17% ran a stop sign/light “The first step to correcting bad driving behavior is recognizing when you’re doing it, and surprisingly enough, technology can help with that,” said Riczko. “Nationwide’s SmartRide mobile app provides customized feedback on phone distractions to help our members reduce distracted driving on roadways. The app’s feedback has reduced everyday hand-held distractions by nearly 10% among those who use it.” Nationwide is advocating for state lawmakers across the country to enact hands-free legisla-

Reservations for the next-generation Tesla Roadster have reopened after Elon Musk announced that the company would start production in 2023. Anyone interested in a next-gen Tesla Roadster can reserve one on the company’s official website. Tesla requires a $5,000 credit card payment for the Roadster due on the spot and a $45,000 wire transfer ten days after the initial order. The $5,000 credit card payment is fully refundable. Tesla does not state whether the $45,000 wire transfer is refundable, but reservations will not be final until the wire transfer is officially received. The next-generation Tesla Roadster debuted in November 2017 during the Semi unveiling. Many people might still remember Tesla Chief Designer Franz von Holzhausen driving the new Roadster out of a Semi. It has been at least four years since Tesla unveiled the next-generation Roadster. The Tesla Chief Designer talked a bit about the Roadster during his appearance on the Spike Car Radio podcast in February 2022. Holzhausen shared that Tesla was working hard

on developing the all-electric supercar. “We are working on the Roadster. I wish it was, you know, we were working faster, but I have to also say that in the time that we’ve been developing it, we’ve also been learning a lot. Like, Plaid is a great learning platform, that all those experiences will, you know, make its way back to a much better Roadster than had we launched right after when we debuted it,” Holzhausen said. Now, Tesla is more equipped for Roadster production with Giga Texas starting to grow roots and the 4680 battery cell in production. Tesla still has some challenges ahead. Elon Musk always notes that getting from prototype to production isn’t easy. Lithium supplies will probably be one of the challenges Tesla faces as it aims to produce not just the Roadster but also the Cybertruck and Semi. “We’ll be in production with Cybertruck next year. We’ll be in production with the Roadster and with Semi. So that’s all coming. This year is all about scaling up. Next year it’s gonna be a massive wave of new products,” Musk said during his talk at the Cyber Rodeo last week.

Source: Nationwide

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Tesla Roadster Reservations Reopen Ahead of 2023 Production By Maria Merano, Teslarati

tion allowing drivers to only use hands-free mobile phone technology while operating a motor vehicle. The intent is to curb crashes caused by drivers distracted by their mobile devices. To date, 24 states have enacted hands-free-primary enforcement laws with active legislation pending in 21 states. Survey Methodology: Edelman Data & Intelligence conducted a national online survey of 1,000 adults (ages 18+) US car-owning consumers on behalf of Nationwide. The study was fielded March 4-11, and has an overall margin of error of ±3% at the 95% confidence level.

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WIN to Recognize 2022 Most Influential Women Award Winners During Hybrid Educational Conference by Leona D. Scott

tial’ standard every day.”

According to Catalyst.com, women in automotive repair and maintenance make up only 9.9% of the automotive workforce. In 2014, when Mary Barra became CEO of GM, she was the first woman to run a major OEM. While women are making progress in the industry, it can happen slowly and with great challenges. That’s why programs like the Women’s Industry Network (WIN) Most Influential Women (MIW) Awards are vital. The collision industry looks forward to WIN’s annual announcement of its stellar lineup of recipients, and 2022 is no different. WIN’s 2022 MIW recipients will be honored at a gala held during WIN’s 2022 Annual Educational Conference, May 2-4 in Greenville, SC. This year’s conference will be hybrid, offering an in-person event, alongside an online program to make the event accessible to more attendees. To learn more, visit www.womensindustrynetwork.com. Autobody News reached out to the seven recipients who make up the 2022 class of Most Influential Women to get their thoughts and reflections on receiving this prestigious industry award.

Alicia Figurelli, vice president, Thomas Greco Publishing, believes the recognition that awards like this provide Alicia Figurelli will help elevate the work of all women in collision repair. “Being recognized in this way as someone who has helped make a difference in our industry is exhilarating! It’s a definite milestone in my career, and I’m so grateful to help represent one of the many areas of collision repair where a woman can excel and contribute,” said Figurelli.

Allison Boever, chief human resources officer, Repairify, values the opportunity to mentor women for leadership Allison Boever roles at Repairify. “I am beyond humbled by the recognition as one of WIN’s Most Influential Women,” said Boever. “As a human resources leader, I’m a believer that when we strive for diversity, we strengthen the organization as a whole. One of my most rewarding activities in business and life is to mentor and help prepare women for leadership opportunities as our industry continues to evolve. I’m surprised and honored and will strive to live up to the ‘most influen-

Shirin Hezar, director, strategic accounts, Caliber Collision, said as a result of recent economic and cultural dynamics, Shirin Hezar she found opportunities to contribute in unexpected ways. “In today’s evolving environment, it will be key for female leaders in our industry to leverage innovative, out-of-the box thinking to ensure we keep pace with rapidly changing customer expectations,” Hezar said. “The collision industry offers many unique opportunities for female leaders. Their fresh perspectives and new ideas will shape our future, and I am honored to be part of this amazing journey.” Jennifer Hubbard, client engagement manager, CCC Information Services, looks forward to promoting careers for women in col- Jennifer lision repair even Hubbard more as a result of the award. “I am grateful for being recognized and I intend to live up to the level of success this award demands,” Hubbard said. “I am dedicated to

22 MAY 2022 AUTOBODY NEWS / autobodynews.com

spreading the word on how a career in the automotive collision industry is very rewarding. The people I meet on a daily basis are an amazing group of individuals with a strong worth ethic and are driven by our ever-changing and exciting industry.” Samantha Kita, regional vice president, operations, Gerber, is grateful for the award’s legacy and is humbled by the Samantha Kita recognition. “... It’s hard to find the words to explain how I feel. All the amazing women out there who are paving their own way while finding work-life balance, have my utmost respect,” Kita said. “Knowing that I have the support and dedication of my Gerber family makes me want to be better. I am so honored to have my work recognized by the Women’s Industry Network.”

Micki Woods, owner, Micki Woods Marketing Genius for Body Shops, is thankful for the recognition and believes the Micki Woods award highlights the overall contributions of women in collision repair. “I know I work hard and do well for my clients but there are so many other women out there working their tails off doing their best that deserve to be honored,” said Woods. “I’m proud, I’m surprised, I’m grateful, I’m humbled and I’m freaking pumped UP!” Debbie Menz, strategic account manager (retired), Axalta, will also be recognized at this year’s event. She was unable to be reached for comment before press deadline.

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Gerald Jones Honda

SO. CAROLINA

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800-849-5056 864-234-6481

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Piedmont Honda

Augusta

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

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

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

Classic Honda

Headquarter Honda

Durham

855-893-8866 919-425-4711

888-418-3513 305-256-2240

Carey Paul Honda

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

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

Hollywood

800-542-8121 954-964-8300

Buford/Gwinnett

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

Miami

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24 MAY 2022 AUTOBODY NEWS / autobodynews.com

Marietta

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

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TENNESSEE

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800-482-9606 757-431-4329

Alcoa

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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

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Valley Honda

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800-824-1301 865-218-5461

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

Bill Gatton Honda Bristol

800-868-4118 423-652-9545

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

Staunton

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Dept. Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda.com

West Broad Honda Richmond

800-446-0160 804-672-8811

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

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autobodynews.com / MAY 2022 AUTOBODY NEWS 25

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.

Tips to Help Auto Body Shops Get Paid for Crucial Step of Destructive Weld Testing In a previous column, I wrote about the critical necessity to perform destructive testing of welds prior to welding on any vehicle—and regardless of whether your shop is being paid for that procedure. But I also believe you should be paid for this crucial work, and that’s what I hope to address here. Those of you who have read my articles in the past on better negotiating know I believe the process involves four questions: Is the procedure necessary? Is it included in any other labor operation? Are there pre-determined times? If not, what it is worth? Looking at any of the OEM repair procedures should convince you that it is necessary. Here is some of the wording I’ve seen: BMW: “To determine the optimum electrode contact force for

spot-welding, carry our spot-weld shear tests on sample sheet metal.” Ford: “Place the welded sample in a vice and carry out destructive weld tests by peeling the scrap metal apart using large lock-type pliers. Measure the weld nugget to determine the nugget meets Ford weld nugget requirements.” Hyundai/Kia: “Test welding must be performed before welding vehicle body.” Toyota: “Welding strength must be validated by tuning the welder and performing destructive testing.” I could go on and on, but you get the idea: It is a necessary procedure. The next negotiation question: Is it included in any other labor operation? No matter which estimating

system you are using, you should be able to find that the user’s guide— often referred to as “procedure pages”—lists set-up and performing test welds as a not-included operation. If you can’t find it, visit the Database Enhancement Gateway website (www.DEGweb.org), and read the estimating system providers’ responses to inquiries about this, including #15358 (Solera/Audatex), #12565 (Motor/CCC) and #16652 (Mitchell). None of the estimating systems publish a labor time for destructive testing of welds, so the answer to the third negotiation question is no. That leaves you with the fourth question: What is it worth? I can’t answer that question for you. Perhaps you could conduct your own time study. In any case, remember it should be based on how long it takes an average tech-

nician—one with five to seven years of experience—to gather the tools, equipment and supplies needed, perform the task safely, and return the tools, equipment and supplies to their store area, and clean the work area. Remember, too, material costs for this process are not included. That can include OEM-approved wire, welding tips/nozzles, shielding gas and gun liner. If you’re buying welding coupons, keep that cost in mind. You can also improve your chances of being paid for this necessary step by documenting the process. Shoot images of the test welds prior to testing, while the test welds are in the vise, and after they destructively tested. If you use an electronic quality control app, you can set it up to require these photos, ensuring they are time- and date-

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stamped. Some shops also actually label and store the test welds to help limit their liability should any questions about the repair arise down the road. Remember the automakers state the welding coupons you use should be of the same material with the

International and a program consultant for Jaguar Land Rover North America and Subaru of America. Others mistake he sees: Not checking to ensure the correct wire type is in the machine, not understanding what makes a good quality weld, not following the specific

In addition to photographing the destructive testing of welds, some shops label and store the test welds as part of their documentation

same coating that the new replacement panel will be attached to. In some cases this may require multiple different coupon thicknesses and coatings, such as galvanized. That’s a common oversight, according to Rick Miller of Wadsworth

placement of welds called for by the automaker, or the use of MIG welding because of a perception that it’s easier than squeeze-type resistance welding. Potential sources of coupons include I-CAR, your welder manufac-

turer or Custom Metal Shearing in Ohio (www.custommetalshearing. com). Some other resources that may be helpful: CollisionHub offers a welding validation series (collisionhub.com/ product/oem-weld-validation) and will build customer QR series for shops to put on their welding equipment to offer “just in time” training for the tech. SCRS has some great information on its website, including video of a panel discussion on OEM expectations about welding at www. youtube.com/watch?v=x85ZcSGvbU4&t=9s American Honda offers twoday hands-on welding training for anyone in the industry, with a discount for Honda and Acura certified shops. Attendees will learn how to identify steel strengths and thicknesses on Honda vehicles, and how to find Honda service information requirements for each type of recommended attachment method. After completing 13 unique practice joints, attendees are expected to complete multiple replacement pro-

cedures. To register, visit academy.veri factsauto.com, or for questions, email collisioinrepairtraining@na .honda.com. “Anyone may enroll, but I would suggest this is not a class for beginning welders,” said Scott Kaboos, national assistant manager for collision repair training and technology for American Honda. “It is an advanced level class, and so far we have had a 50% pass rate, mostly because some attendees did not have prior basic training.” Listen, I mean this in love, but we as an industry need to get it together! We must follow the OEM procedures. Not setting up and performing destructive weld test is not negotiable. All of the steps above should help your shop join those being paid regularly for performing destructive testing of welds. But whether or not you choose to pursue being paid for it, I can’t stress enough that you need to ensure your technicians are absolutely performing this crucial step every time they will be welding on a vehicle.

Farmers Insurance Wins NABC Award The National Auto Body Council (NABC) President’s Award is designed to honor the NABC member company that supports the vision of the NABC through donation of its time and resources. For 2021, the NABC President’s Award was presented to Farmers Insurance, selected by a vote of the NABC Board members. The Farmers Insurance nomination received overwhelming support from the NABC Board based on Farmers strong commitment to the NABC. Throughout 2021, Farmers Insurance assisted with the gifting of nearly 30 NABC Recycled Rides vehicles, and provided its staff with the time and resources to act as chairman of the NABC Fundraising committee and support NABC activities.In addition to presenting Farmers with the NABC Presidents Award, the NABC will make contributions to two organizations in the recipient’s honor— one selected by NABC and one by Farmers. Source: NABC

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autobodynews.com / MAY 2022 AUTOBODY NEWS 29 6/30/21 1:37 PM

EagleMMS Software Soars to the Top of Auto Body Shops’ To-Do Lists by Ed Attanasio

Two brothers were driving from Connecticut to Maine, and they decided to spend the time brainstorming instead of playing 20 Questions or the license plate game. It’s a 4.5-hour trek, so to kill time they began talking about difficulties in the auto body industry and how it has lagged from a technological perspective for many years. That journey turned out to be highly productive for the Koutmos brothers, Yanni and Alex, because by the time they reached their destination, the pair had an idea for a product that could help any collision repairer track consumables usage and get paid for them by the insurance companies. They named it EagleMMS and were excited about their new baby and how it could change the collision repair industry. EagleMMS is a technology company committed to providing collision repairers with the insight needed to run at peak efficiency.

From family-owned independent shops all the way to large MSOs, EagleMMS is a materials management software saving shops thousands of dollars month after month. Yanni is a seven-year veteran of the auto body industry, having spent nearly one year as a certified appraiser from the insurance side and

gramming language community, and has spent more than a decade developing reliable and robust software systems. After a highly productive brainstorming session, Yanni and Alex sought to develop a lightweight, high impact solution to address the disparity regarding stagnant insurance rates and rising materials costs to help business owners in their mission of providing excellent car care and customer service, without sacrificing their bottom line. After nearly a year and a half of intensive development, they were poised to offer the industry a cutBrothers Yanni, pictured, and Alex Koutmos developed ting-edge solution that can EagleMMS, a software program that can help shops get help shops reclaim lost revpaid for materials and other expenses related to every car enue on items and products repair they used on almost every six years as a frame tech and master repair. That car ride has turned into a body man. Alex is a former Amazon soft- product gaining traction and receivware engineer, currently one of the ing five-star reviews nationwide. leading experts in the Elixir pro“We started out venting about

the industry and all of the problems associated with it,” Yanni said. “The insurance companies are always going to be playing with labor rates and ignoring things like inflation and supply chain issues. Their numbers are consistently outdated and arbitrary. The paint companies have informed the shops earlier this year that they’re going to raise their prices significantly. “In addition, it’s harder and harder to find qualified people to fix these vehicles and it’s more and more difficult to recoup their costs for materials. We knew if we could come up with software that could help shops to recoup their costs, it would be a hit.” Yanni’s mantra is “If something comes into your shop and it costs you money, it should always make you money on the way out,” he said. “Too many shops have gotten used to not charging for things, so we’re re-educating them. Once they see how much they can recover, they realize how much money has been bleeding out of their businesses for

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literally decades.” By creating precise documentation that clearly states the products being used down to each piece of sandpaper and every ounce of rubberized undercoating, for example, EagleMMS is also educating the insurers.

By building a comprehensive and detailed invoice on every repair, EagleMMS is saving shops thousands of dollars every month

“The system builds an invoice and as the tech scans every QR code, it goes into the document,” Yanni said. “Every product you use is invoiceable and once your people become familiar with that concept, it becomes part of their daily lives. Then

once you get the insurance company onboard, they will normally stop fighting you.” Simple is one of the best adjectives to describe EagleMMS, Yanni said. “Getting started with EagleMMS is easy and straightforward. After adding all of the materials that you want to track into EagleMMS, you’ll be able to generate QR code tags to put near your materials. With your QR tags in place, all your technicians need to do is scan a QR tag,” he said. “Technicians scan the needed material QR tag and then provide checkout details. The technician selects the repair order and the quantity used, and it’s immediately added to the invoice. After the scan is completed, the repair order invoice is automatically updated. All that’s left to do is submit the shop’s EagleMMS invoices in order to get adequately reimbursed.” In addition to providing accurate repair order material usage invoices, EagleMMS also enables users to manage all aspects of material management from the shop floor. “Technicians can report low or

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out of inventory items, so that your parts people can order more inventory before running out,” Alex said. “You can also analyze your data to find out which materials are being used, by whom and at what rate, in order to better optimize your production process.” EagleMMS is web-based and does not require any cumbersome mobile or desktop applications. Techs can access their shop’s information and perform the job right from their phone. Another benefit is EagleMMS is not tied to any particular material manufacturer or supplier. “When we designed EagleMMS, a critical objective was to have a product that was extremely fast and streamlined,” Yanni said. “That’s why it takes less than five seconds—start to finish—to add material usages to repair orders. We’ve also made it very affordable with a monthly subscription of $49 and an optional $499 one-time setup fee if customers choose to have us set up their inventory and print their QR code tags and technician QR tag binders.”

1Collision, Auto Techcelerators Partner 1Collision and Auto Techcelerators, LLC have announced a partnership where Auto Techcelerators will provide consulting, software, mobile apps and training to help 1Collision affiliate locations open and operate ADAS service and calibration businesses. 1Collision affiliates will now have access to advice, training, software, mobile apps and other solutions that will help them launch and operate a profitable ADAS services and calibration business in their local markets. The agreement provides support for site identification and preparation, equipment selection, software and mobile apps that identify ADAS systems, components and required calibrations to managing their calibration businesses and documenting, invoicing and validating all aspects of the calibration process. Source: 1Collision

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autobodynews.com / MAY 2022 AUTOBODY NEWS 33 3/11/22 4:00 PM

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.

Collision Repair Industry Trend Data Shows Need for Changes to Insurer DRP Metrics

Shop Showcase

Collision repairers have for some substantially, but the largest increas- repairable non-comprehensive claim time been saying changes they are es that we experienced in 2021 are grew slowly from 2011 (23 hours per seeing within their business point to not likely to be repeated in 2022. claim) through 2019 (23.9 hours), but with Ed Attanasio a need for insurers to adjust their key Where most analysists are predict- then jumped to 24.7 hours in 2020, performance indicators (KPIs) metrics for direct repair claims. Recent industry data from CCC Intelligent Solutions support the trends shops are reporting. Average repair for exwithcosts, Ed Attanasio ample, rose 8% in 2021, about one percentage point higher than U.S. inflation overall; the average part cost across all part types—OEM and aftermarket—was also up 8% last year, the “largest annual increase we have seen” since CCC began reportwith Ed Attanasio ing that data in 1997, according to CCC’s Susanna Gotsch. “Moving forward, most ana- With more larger repair jobs during the pandemic, cycle time across the industry has risen lysts expect that we’ve seen most of the increase in parts costs that we are ing [the industry] will see the most and to 25.8 hours last year. Gotsch going to see,” Gotsch said.Attanasio “We’re pressure in 2022 will be on wages.” said the pre-pandemic growth was with Ed not likely to see part prices reverse Average total labor hours per related to vehicle complexity, but the

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34 MAY 2022 AUTOBODY NEWS / autobodynews.com

larger increase in the last two years is based in part on the increase in the percentage of non-drivable claims. Compared to 2019, there was more than a full percentage point jump in DRP claims with repair costs above $10,000 in 2021, and a 2.5 percentage point jump in claims between $5,000 and $10,000. That results in longer cycle times, Gotsch said. “For each $1,000 increment, we essentially see an additional two full days in the overall repair time, or keys to keys time,” she said. “Industry wide, DRP repairs are now taking over 12 days, two full days above where they were in 2020, and a little less than two full days longer than they were in 2019. By the time we get to a $10,000 or higher repair, the average repair time exceeds 35 days. “Subsequently, we hear more

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carriers saying their customers are running out of allocated rental days, and many carriers have said they are looking at…their policies to determine if those [limits] should be adjusted.” Another data point of note from CCC’s recently-released annual Crash Course Report: The national average body rate in 2021 ($52.86) was up just 1% from the prior year, the smallest percentage increase since 2011, in a year when overall inflation in the country was 4.7%. CCC reports overall claim counts were up nearly 10% in 2021 compared to the prior year, but still down more than 13% from 2019. “Month-by-month comparisons, however, show volumes have been steadily rebuilding,” CCC said in the report. For example, overall claim counts in January 2021 were down 19% versus January 2019, but by December 2021, overall claim counts were down just 5.9% compared to December 2019. One statistic in the CCC report will be of little surprise to shops: The percentage of claims with supplements continues to increase. Back in

2001, more than 50% of DRP claims did not have a supplement, according to CCC. Today, it’s just over 30%. The percentage involving two, three or four supplements has nearly tripled over that time span to more than 30%. “In addition, the share of the overall repair cost added during

for DRP shops concerned about the metrics insurers are using to measure their performance: The decline in labor hours per day that has been occurring since 2017 only accelerated in 2021. Direct repair shops were producing about 2.5 labor hours per repair day on drivable vehicles in the second half of 2021, down from just

CCC data shows labor hours produced per day for DRP claims has been declining since 2017

supplements has also grown, where over 35% of the overall repair cost is added during supplements for those claims with four or more supplements,” the report said. Another interesting statistic

over three hours during the same period in 2020, and down from more than 3.5 hours in 2016 and 2017. For non-drivable cars, shops were producing about two labor hours per day during the second half

of 2021, down from above 2.5 in 2018 and 2019, and about three in 2017. CCC cites such factors as the technician shortage and the increased number of non-drivable repairs as the likely cause of the change. But a number of shops said they would point to other causes. “For us, it’s absolutely the parts shortage,” one shop owner said. “It’s got us stopping and starting on jobs like never before, and spending way too much time shuffling cars around in the shop and back lot.” Two other collision repairers said they think the decline is only going to continue because of the ever-increasing vehicle complexity. “It’s not like you can just hang a replacement fender or replace a bumper cover any more,” one shop manager said. “Those jobs have mostly gone away. There’s electronics involved with almost every part now.” Still another had what he acknowledged was just a theory. “A lot of CCC’s data reflects only DRP claims,” he said. “Many See Need for Changes, Page 39

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Supply Chain Issues and Repair Complexity Major Concerns in 2022 by Ed Attanasio

Before the pandemic hit, people in the collision repair industry were most concerned about a lack of qualified employees and the growing complexity of OE repairs. Those problems still exist, but now the crippled supply chain has been added to the equation. It’s a whole new world and scary in many ways, so how will auto body shops be able to navigate through these uncertain and troubled times? Solid, carefully researched and highly relevant data can surely help everyone in this industry. Director/ Industry Analyst Susanna Gotsch from CCC Intelligent Solutions, Inc., is well-known for being the author of the company’s annual Crash Course since 1995, where she interprets the numbers and forecasts what is going to happen next. Gotsch’s historical perspective supported by data is invaluable for anyone who works in the automotive industry. Gotsch set the table for this year’s report before diving into the numbers. “It’s hard to fathom that we are nearly two full years into the pandemic, but one thing we know for sure: The natural pre-pandemic order of things has been altered, leaving us searching for a new normal or rhythm to how we live, communicate and conduct business,” she wrote. Obstacles created by supply chain issues are a concern to every body shop in the world right now. “Despite new variants and ongoing debates on how best to balance public health and economic well-being, the U.S. economy has roared back, with consumer buying things like cars, homes, furniture, electronics and other goods,” she said. “As a result of the increased demand, supply chains have been pushed to their brink, either from shortage of goods or people to deliver them. “Whether it’s the auto industry’s shortage of semiconductor chips or metals critical to development of electric vehicles, or the medical industry realizing many of the most critical drugs and supplies are only manufactured overseas, all industries are hav-

“Unfortunately, new vehicle pandemic, the Crash Course said. While repairers are seeing an technology such as ADAS and EVs increased number of non-driveable have added increased complexity DRP repairs relative to the preced- and requirements for new skillsets, ing two years, both driveable and training and tools for the collision non-driveable repairs are taking repair industry,” she said. “So, while longer, and repairer productivity is the industry has demonstrated its relower. silience and ability to adapt to new “Unfortunately, as repair costs vehicle technology over the years, climb, repairer productivity can adapting takes time, and today’s ensometimes suffer, custom- vironment means these repairs may er satisfaction can fall and cost more.” the likelihood that the cusA sharp increase in motor vetomer needs to bring their hicle fatalities occurred in 2020 and vehicle back for additional 2021 in the U.S., highlighting the work after repairs complet- need for new directives to improve ed also increases,” Gotsch vehicle safety. An estimated 20,160 people explained. “And it’s not just repair time that is tak- died in motor vehicle traffic crashes ing longer. The time to get in the first six months of 2021, acDirector/Industry Analyst Susanna Gotsch from CCC an appraisal has increased cording to the NHTSA—an increase Intelligent Solutions forecasts that supply chain problems, for traditional channels of 18.4% from the first six months inflation and repair complexity will continue to be major where the customer either of 2020, and the highest number of obstacles for collision repairers in 2022 is visited by an insurance fatalities during the first half in 15 data pointing to higher wages in staff appraiser or brings their vehicle years, based on this year’s Crash Course. 2022,” she said. “The disruption in for a DRP appraisal.” Ultimately, the key to combat The fatality rate per 100 million experienced over the last two years has accelerated the pace of innova- higher costs is to improve produc- vehicle miles traveled increased to 1.34 for the first six months of 2021, tion across all industries, leading to tivity, Gotsch outlined. the transformation of how business is conducted as technologies such as artificial intelligence (AI), telematics, mobile and cloud are being • Large Inventory of Genuine Subaru Parts Update Daily adopted to help inform and speed • Team of Expert Parts Specialists Ready to Help You processes, and combat challenges • Fast Free Daily Delivery to the Atlanta Metro Area stemming from labor shortages, new • Very Competitive Pricing and Discounts consumer expectations and other market dynamics.” The automotive repair industry is still struggling to find employees, Gotsch reported. “Representatives from Universal Technical Institute predict a wave of retiring baby boomers will create 100,000 auto technician job openings over the next decade or so, with the Bureau of Labor Statistics projecting a 4% decline in employment in the overall auto technician field through 2029,” she said. “FindLocal: 404-248-1888 ing technicians with the right skill24 Hr. Fax: 404-425-5800 sets is also a growing challenge as vehicle complexity increases.” Parts Hours: Most collision repairers inMon. - Fri. 7:30am - 6:00pm dicate the technician shortage has Sat. 9:00am - 5:00pm been the primary reason for longer backlogs of work. Repair work is up as auto accident frequency has riswww.stiverssubaru.com en. Many shops have indicated they www.subaruonlineparts.com 1950 Orion Dr. cannot repair as many vehicles at dway@stiversonline.com Decatur, GA 30033 the same time as they did before the ing to re-examine and restructure their supply chains.” The supply versus demand imbalance has also impacted U.S. inflation in a huge way, which hit a 40year high in December 2021, Gotsch said. “Labor shortages have also driven up wages across nearly all industries, with Conference Board

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versus 1.28 for the first six months of 2020 and 1.07 during the same period in 2019. Fatal accidents either involving just one vehicle, speeding, illegal substances or failure to wear a seat belt rose disproportionately—underscoring how more drivers are more reckless than ever before. Some of those states with the highest fatality rate per 100 million vehicle miles traveled in 2019 are also those states experiencing the most growth in population. What caused this lack of inventory in 2021? “Extreme weather and cyber security were not the only challenges in 2021 that forced people and businesses to evaluate business models,” Gotsch wrote. “Many industries like the automotive industry had moved to a just-in-time inventory system prior to the pandemic—an approach that was sorely tested over the last year as consumer demand increased much faster than anyone had planned. “Inventories had been drawn down from plants being closed at the outset of COVID, and then operating

at lower levels of production while trying to balance employee safety and production demand,” she continued. “As industries scrambled to meet demand, they met the same challenges: Higher raw material prices, higher transportation costs from higher wages and fuel prices, record spot container shipping rates (14 times higher now than during the same period in 2019), more money and time to unload goods at shipping ports, and shortage of employees on site.” In the P&C insurance and automotive sector, dealers, OEMs and aftermarket parts sellers have been operating with lower parts inventories, based on numbers outlined in the report. “Demand for parts has rebounded faster than many of the parts manufacturers and distributors expected, leading to an increase of ‘out of stock’ from aftermarket or ‘backorder’ scenarios for OEM parts,” Gotsch said. “Even when parts are available, they may be stuck overseas where the issue is getting the parts from the warehouse to the ports, onto the ship and then unloaded and delivered to the U.S.”

Parts delays and challenges finding qualified technicians are the two primary reasons repairers have seen their throughput of repairs and productivity fall and repair times grow. CRASH Network in Q4 2021 reported 96% of shops surveyed were experiencing delays, and the national average scheduling backlog reached 3.4 weeks, versus the pre-pandemic Q4 average backlog of only 1.7 weeks. Shops are focused more than ever on blueprinting the repair to identify parts needing replacement and delaying the start of the repair until all parts have arrived on site. This is leading to delays in the average days from estimate completion to vehicle in for both driveable and non-driveable DRP repairs. In conclusion, supply chain disruptions, extreme weather, cyber threats and labor shortages are disrupting historical trends, and have also made pricing and reserving for insurance much harder. Fewer commuters mean less traffic and fewer accidents. “Nearly two years in from the early shelter-at-home orders and a

sizable share of the working population in the U.S. is still working remote at least one day per week,” the report said. “Many companies have postponed plans to bring employees back to the office numerous times, even in a hybrid model. Research from the Federal Reserve Bank of Atlanta, Stanford and University of Chicago suggests nearly 40% of U.S. jobs can be done at home, and office occupation levels tracked by Kastle Systems continue to stay well below 50% across their 10-city average.” With many vehicles traveling at faster speeds on less congested roads during the pandemic, vehicles in accidents were seeing higher Delta-v’s, with greater damage to both the vehicle and its occupants. Delta-v is a measure of a collision’s severity or force. Higher forces in an accident increase not only the damage to a vehicle but also the likelihood for occupant injury and more severe injuries. The professional disciplines of accident reconstruction and injury causation have clearly established axioms. All other factors being equal, the following are true: in-

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creasing the severity of an impact, in terms of impact force, increases the amount of damage to a vehicle, and increasing the severity of an impact, also in terms of impact force, increases the risk of injury to the vehicle’s occupants. According to a survey by Workplace.com, 37% of U.S. employees will be working remotely in 2022, according to Gotsch’s data, with between 29% to 39% of the time spent working in the U.S. possibly done remotely, with 22% of employees able to work remotely three to five days per week without affecting productivity. With potentially fewer people on the road during rush hour, congestion levels may remain lower, and some of the auto claim trends experienced during the pandemic may become more permanent. Overall miles driven and trips taken might not see a significant decline, but more telework would still lead to fewer rush-hour trips, less congestion in urban areas and freer movement of remaining traffic. This is important because the variable shown to be most highly

correlated to vehicle accident frequency is a large number of vehicles on the same road at the same time— i.e., congestion typical of morning and evening rush hour traffic. So, with miles driven recovering, but fewer during historic peak rush hour times, does automotive claims data suggest different driving patterns will continue in 2022 and beyond? Overall claim counts including comprehensive losses were up 9.6% in 2021 versus 2020, while non-comprehensive losses were up 10.2%. The acceleration of repair costs is always a major issue for body shops nationwide. Gotsch’s report said in 2021, the industry experienced a much larger increase in repairable claim costs than in prior years. The average total cost of repairs overall for all repairable appraisals was $3,708, up 8% from 2020 and up 14% from 2019. Growth in the average number of parts replaced per claim as well as more labor hours per claim largely account for the rise in repair costs. Increasing vehicle complexity—both in terms of the materials used in the construction of the vehicles, as well

as an increased number of standard options—are helping to lift costs. The distribution of repair cost dollars has changed little over the last 20+ years, the timeframe in which CCC tracked this information. In 2021, the increase in both the share of overall dollars spent on replacement parts and sublet/miscellaneous operations continued. The average price paid per replacement part had historically experienced only moderate increases at an aggregate level. However, supply chain issues in 2021 drove prices up sharply. At the close of 2021, the industry’s share of replacement part dollars was split at 64.4% OEM versus 35.6% non-OEM. Between 2001 and 2021, the average number of replacement parts per non-comprehensive appraisals increased from 5.1 parts to 9.1 parts for driveable vehicles; from 18 parts to 22.3 parts for non-driveable vehicles; and from 8.0 parts to 12.1 parts for the combined driveable and non-driveable claims. www.autobodynews.com

Continued from Page 35

Need for Changes of the top independent shops have cut way back or eliminated DRP agreements in recent years, like we have. Not to knock the big MSOs, but even some people I know who work at them say they’re not as productive as shops with an owner on-site. They can help contain costs, but it’s not usually through better productivity. I think the CCC data reflects more DRP claims going through those MSOs.” MSOs with 25 or more shop locations last year accounted for 43% of uploaded DRP appraisals, according to CCC, a percentage that has grown nearly four-fold since 2008. Whatever the cause, even CCC acknowledged labor hours produced per day isn’t likely to rebound soon. “With many repairers seeing repair volumes grow while still unable to find the technicians needed, we expect we will continue to see labor hours per repair day remain below where it was pre-pandemic,” Gotsch said.

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Dingle Family Continues Journey with Their Recycled Ride “It was so miraculous, I still can’t believe it happened even now,” As part of Autobody News’ “After Dingle said. “The people at Mike’s the Donation” series, we focus on Auto Body and the Rose family are families, individuals and nonprofit incredible, because they make their organizations who give away cars benevolence program a priority evthrough NABC’s Recycled Rides ery year. After receiving these blessings, I realized that I now have a reProgram. Mike’s Auto Body is a leader sponsibility to help others—to pay it when it comes to philanthropy, and forward.” Since receiving the vehicle, nationally known for giving people a hand up as opposed to a hand out April and Eugene Dingle have been through its Benvolence Program. In doing everything they can to give December, the California Bay Area back to their community, and their MSO, owned by the Rose family, Nissan Versa has played a signifigave four families “nearly new” cant role in their journey. “Back then, I was the chaplain completely refurbished cars—bringing its total number of donations to assistant at Moffett Field in Sunny100. vale, CA, so I had a 1.5-hour commute from our home in Suisun City,” Eugene said. “I was also studying to become a chaplain at Gateway Seminary in Fremont, and running the religious education programs at Travis Air Force Base at the same time.” In December 2018, Eugene transferred to MaryThe Dingle family is still driving the 2013 Nissan Versa land to join the 175th War they received in 2015 as part of Mike’s Auto Body’s Field Wing in Middle RivBenevolence Program er. He now proudly wears Many of these recipients have two hats—one as an active member decided to pay the benevolence for- of the Air Force and another as an ward and help others in need, and assistant chaplain. It’s a role he loves the Dingle family is a prime exam- because it allows him to help people ple of the power of giving. as they navigate through their lives In November 2015, Mike’s in the military. Auto Body presented a 2013 Nis“It can be a stressful existence san Versa to Staff Sgt. Eugene Din- and a lot of what I do involves crigle from Travis Air Force Base and sis management,” Eugene said. “I his wife April as part of its annual offer the men and women I help presentation on Veterans Day at the with 100% confidentiality, which company’s Fairfield, CA, location. is something they appreciate. We At the time, Eugene was a do everything we can to keep these member of the 60th AMXS Squad- people in the Air Force and this can ron and had to commute to and from be a very stressful job, but the rehis assignment at Moffett Air Base wards are many.” as well as get his children to and When Mike’s Auto Body gives from school. Thanks to their com- anyone a vehicle, they first re-conpletely refurbished vehicle from dition every part of the car. With Mike’s Auto Body, the Dingle fami- 112,000 miles now on the Dingles’ ly was able to function normally. 2013 Nissan Versa, the vehicle is In addition, the Rose family still going strong after a few treks gave the Dingle family one year of that tested its ability to go the disinsurance coverage and a trunk full tance. of gifts for the children. “When we moved to Maryland, Eugene said he couldn’t stop we drove there with the Versa and a smiling when he first saw his 2013 van that we purchased. It was a little Nissan Versa for the first time six scary with my wife, the kids and a years ago. dog and it was wintertime,” Eugene by Ed Attanasio

40 MAY 2022 AUTOBODY NEWS / autobodynews.com

said. “My friends told us take the southern route to avoid the snow and the mountains, and that was good advice. It took us six days to get there.” Before moving to Maryland, Eugene and April donated their time generously to Mike’s Auto Body, which included walking in the Veterans Day Parade in Fairfield, CA. In addition, Eugene did the invocation at the Veterans Day presentation and April sang the National Anthem at the 2016 Christmas presentation in Antioch. “We feel like we’re part of the family at Mike’s Auto Body now. Sal Contreras and the Rose family have been wonderful to us,” April said. “We’ve become good friends with the people at Mike’s—they’re truly special!” The car now gets Eugene to and from his job—another 1.5-hour commute—while April uses the van to transport her children to their activities. “The car is a workhorse and we wouldn’t be in the position we are

now without it,” Eugene said. “One of my daughters, Ariel, is now playing competitive basketball and volleyball, and we are also taking care of our parents who live in Washington, D.C. My father Lovair is 85 [former Air Force]; and we are also taking care of my wife’s parents [David, 78, and Carlisle, 76]. The car gets us to where they live, so we can take them to our appointments, etc.” One random and wonderful event happened as a result of the benevolence car, Eugene said. “Our little pug named Bishop was an escape artist and one day he ran off and we figured we’d never see him again,” he said. “But, because of the media coverage we got through Recycled Rides and Mike’s Benevolence Program, a veterinarian all the way in New Jersey knew my name when they found Bishop and scanned his microchip. We didn’t update the contact information, so if they hadn’t known our name from the press coverage, we would have never been reunited with Bishop!” Finish It Like a Masterpiece with

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autobodynews.com / MAY 2022 AUTOBODY NEWS 41

New Standardized Independent Adjuster Competency Exam Announced by Ed Attanasio

When an adjuster walks into your auto body shop to write an estimate, the decisions they make can affect the repair from start to finish. If your number and their number don’t agree, it can lead to an avalanche of supplements and potentially open up a tug-of-war between you and the insurer. How qualified is the adjuster and can you rely on their assess-

its kind in the independent claims industry. Adjuster Score will provide secure, fully proctored multiple choice and practical claims testing for new and experienced property and auto adjusters. The exams will test key competencies including but not limited to basic computer skills, policy knowledge and application, estimating knowledge and application, building construction and vehicle knowledge, damage identi-

“We want IA firms to be able to assess an applicant at a glance—similar to a credit score or a standardized test score like the SAT or LSAT,” — Chris Stanley ment of the vehicle in question? A test score could help shops strip out a lot of question marks across the board, and be confident of an accurate sheet. AdjusterTV.com and IAPath. com have partnered to create a new company, Adjuster Score, offering a standardized independent adjuster core competency exam, the first of

fication and customer service skills. “It’s important that we test applicants not only on how well they can build a diagram in the estimating software, but also how well they can use that software in the context of a claim,” said Mathew Allen, Adjuster Score co-founder and owner of AdjusterTV.com. “We feel that Adjuster Score

scratches several important itches in the claims industry,” Allen said. “It will provide adjusters with a narrow roadmap for building their skills and equipment, and will calibrate third-party adjuster training companies to the skills that firms and carriers need new adjusters to have. It will also provide IA firms with an objective measure of an adjuster’s skills, knowledge and equipment.” “We want IA firms to be able to assess an applicant at a glance— similar to a credit score or a standardized test score like the SAT or LSAT,” said Chris Stanley, co-founder of Adjuster Score and owner of IAPath.com. A user’s Adjuster Score will have an aggregate total score that is then broken down into specific scores for soft skills, technical skills and policy skills, among others. In addition, adjusters will be able to gain points every time they get a new license, certification or important piece of equipment. This will help firms and carriers to know who’s ready to deploy. Adjuster Score is rapidly gain-

ing traction with insurance companies and the collision repair industry, as well as with both fledgling and veteran adjusters. Insurance claims adjusters play a vital role in the insurance industry. They are often called upon to conduct interviews, study police reports and inspect damages, among other duties. It can be a fast-paced career that has its financial rewards, and there are a number of different areas an insurance claim adjuster can work in. But education and licensing requirements vary state to state, so without a standardized national test, no one can quantify someone’s skillset definitively. A test levels the playing field and offers a number everyone can use to measure and compare, as well as offering that much-needed peace of mind to insurance companies and consumers alike.

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2021 Ford F-150 Trucks May Suddenly Shift into Neutral by David A. Wood, CarComplaints.com

A 2021 Ford F-150 recall includes more than 47,000 trucks because the transmissions may suddenly shift into neutral for no apparent reason. The 2021 Ford F-150 trucks may have problems with the diagnostic trouble code (DTC) for low transmission fluid that may activate when it shouldn’t. The 2021 Ford F-150 trucks are equipped with 3.5L GTDI, 2.7L and 5.0L engines and 10R80 transmissions. All the trucks were built between July 28 and Dec. 20, 2021. Ford emphasizes the 2021 F-150 trucks are not equipped with Auto Start-Stop technology. The truck can shift into neutral while driving at any speed, coasting to a stop as the electronic shifter tries to engage park below speeds of 2 mph. The shifter will automatically shift into park when the F-150 comes to a complete stop. As for why this is happening? “A transmission calibration

diagnostic logic was inadvertently activated for certain vehicles without Auto Start-Stop technology,” Ford said. A 2021 Ford F-150 driver will see an illuminated wrench light, but the transmission will begin working normally during a key-off/key-on cycle. Ford saw an increase in “transmission fluid pressure low” DTC P0868 codes being set on specific 2021 F-150 trucks equipped with 3.5L GTDI, 2.7L and 5.0L engines and 10R80 transmissions. Engineering found one of the powertrain diagnostic logic software branches was turned on in error when the trucks were built. There were 28 warranty claims between Oct. 22, 2021, and Feb. 9. Ford expects to mail F-150 recall letters May 2, and dealers will update the powertrain control module software. Ford F-150 owners may contact Ford at 866-436-7332 and ask about F-150 recall number 22S15.

Porsche to Replace 1,000-Plus Cars Lost on Sunken Cargo Ship In February, the Felicity Ace, a cargo ship on its way from Germany to the U.S., caught fire before sinking March 1. It also took around 4,000 VW Group cars with it to the bottom of the ocean. Lamborghini had to restart Aventador production to replace the 15 cars it lost on the ship, and now Porsche has announced it plans to replace the more than 1,000 vehicles it lost too, according to a new Autocar report. Porsche CEO Oliver Blume relayed the news to reporters during the company’s annual results call. Blume said it is “up to us” to replace the vehicles, which won’t be an easy task as the brand faces significant supply chain issues and semiconductor shortages like the rest of the auto industry. Neither situation will help Porsche, though the company is hopeful. Blume added Porsche is “used to working with challenges over the last two years.” Blume didn’t provide a timeline for when customers would receive their replacement vehicles, nor did Blume specify the models lost. We know Lamborghini lost 15

Aventador Ultimae models, though the cargo ship was also transporting Urus SUVs and Huracan supercars. Lamborghini lost 85 vehicles in the incident. VW Group dealers began notifying affected customers in February, with estimates suggesting the lost cars were worth more than $401 million. Bentley, Audi and VW also lost vehicles on the ship. Audi has already announced it will build an extra 1,800 vehicles to compensate for the loss, while Bentley plans to replace half of the 189 vehicles it lost on the ship. Bentley plans to replace the other half of missing cars by the end of this year. There had been hopes that the ship was recoverable, with a large salvage vessel towing the cargo ship to a safer area; however, that didn’t happen. The ship’s extensive damage could not withstand rough weather, dooming the ship. The ship now rests two miles below the ocean’s surface in international waters. The incident happened 220 nautical miles off the coast of Portugal’s Azores Islands in the North Atlantic. It’s unclear who will salvage the ship now.

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EV Operating Costs Appear Much More Appealing as Gas Prices Soar: Report by Steven Loveday, InsideEVs

According to a new analysis by the Zero Emission Transportation Association (ZETA), electric cars are saving owners money, attributed to operating costs, which comes as no surprise. To be clear, the general idea here is not news. We’ve shared comparisons time and time again showing how an electric car can be cheaper to own than a similar gas-powered car once you factor in long-term ownership costs. EVs are much more expensive up front, though they tend to save owners money on fuel and maintenance over the years. If this wasn’t already provable in a growing number of cases, it’s becoming even more of a reality as gas prices soar. While electricity prices are also rising, they’ve remained relatively consistent over the years, with a more gradual rise. Meanwhile, gas prices have proven more volatile over time. Moreover, due in part to Russia’s invasion of Ukraine, oil prices have spiked to record highs, and gas prices are following suit.

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“This month’s Consumer Price Index shows once again that gas prices are surging, which has been exacerbated by Putin’s invasion of Ukraine,” said ZETA Executive Director Joe Britton. “American families are losing money at the pump to a commodity that is increasingly unpredictable and unaffordable in an already-expensive pandemic year. Our analysis shows that American consumers don’t have to choose between driving their car or saving money. Electric vehicles are affordable now.” Note that “affordable” is highly subjective here. Just because a family can potentially save money over time by choosing an EV over a gas car doesn’t mean it will prove true in all cases. In addition, if a car shopper simply can’t afford the upfront cost of an EV, they won’t be able to take advantage of the potential opportunity. Finally, even with high gas prices, it almost always makes sense to keep the car you already own, especially if there aren’t major issues with it. Buying a new car right now

when inventory is scarce and prices are high may not be the best plan. At any rate, ZETA put together a report comparing the operating costs of electric cars versus gas-powered cars. We’ll say right up front these studies should always be taken with a grain of salt, though they do paint an interesting picture of the situation as it’s unfolding. Reports such as this typically rely on a small data set, and there are an immense amount of factors and variables involved. ZETA used three of the most popular gas-powered vehicles. It looked at a select number of U.S. states and aimed to compare the operating cost of the gas-powered vehicles to that of similar EV models. ZETA claims its research suggests, unlike gasoline prices, EV charging costs aren’t “dependent on global oil markets—and are therefore not subject to the same price shocks, disruptions and supply shortages.” “Instead, EVs run on electricity, which is cheaper than gasoline and is produced domestically from increasingly renewable and locally derived resources,” Britton said. “As Congress moves forward to pass

new transformative clean energy investments to electrify the transportation sector and bolster domestic auto manufacturing, EVs’ sticker prices and total cost of ownership will only continue to come down, paving the way for electric vehicles to become the new—and affordable—normal in the United States.” Based on the details in the study, ZETA suggests, as of March, driving an electric car is significantly less expensive than a gas-powered equivalent. The EV advocacy group goes so far as to say “EVs are three to five times cheaper to drive per mile than gas-powered vehicles.” It added in some states, the savings appear to be even higher. ZETA mentioned earlier data from Consumer Reports that claimed EV owners were saving between $6,000 and $10,000 over the lifespan of the car as compared to gas-powered vehicles. That report was published in late 2020, when average U.S. gas prices were much lower than they are today, though several more expensive EVs have also come to market since then, and electricity prices have risen slightly.

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USDOT Announces New Vehicle Fuel Economy Standards for Model Year 2024-2026 The U.S. Department of Transportation’s National Highway Traffic Safety Administration on April 1 announced new, landmark fuel economy standards which follow President Joe Biden’s executive order to drive American leadership forward on clean cars. The new standards will make vehicle miles per gallon more efficient, save consumers money at the pump and reduce transportation emissions. The new Corporate Average Fuel Economy (CAFE) standards require an industry-wide fleet average of approximately 49 mpg for passenger cars and light trucks in model year 2026, the strongest cost savings and fuel efficiency standards to date. The new standards will increase fuel efficiency 8% annually for model years 2024-2025 and 10% annually for model year 2026. They will also increase the estimated fleetwide average by nearly 10 miles per gallon for model year 2026, relative to model year 2021. Strong fuel economy standards strengthen U.S. energy indepen-

dence and help reduce reliance on fossil fuels. Since CAFE was signed into law in 1975, the standards have reduced American oil consumption by 25%, or approximately 5 million barrels a day since then. The new CAFE standards for model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, as compared to continuing under the old standards. Increasing vehicle efficiency and reducing fuel use will save American families and consumers money at the pump. Americans purchasing new vehicles in 2026 will get 33% more miles per gallon as compared to 2021 vehicles. This means new car drivers in 2026 will only have to fill up their tanks three times as compared to every four times that new car drivers today do for the same trips. “Today’s rule means that American families will be able to drive further before they have to fill up, saving hundreds of dollars per year,” said U.S. Transportation Secretary Pete Buttigieg. “These improvements will also make our

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country less vulnerable to global shifts in the price of oil, and protect communities by reducing carbon emissions by 2.5 billion metric tons.” The new standards will also reduce greenhouse gas emissions and air pollution. These reductions will improve public health and provide environmental justice for communities who live near freeways and other heavily trafficked roadways, which are disproportionately low-income communities of color. “NHTSA is helping American families by making life more affordable—and the air cleaner for their children,” said Dr. Steven Cliff, NHTSA’s deputy administrator. “These vehicles will be better for the environment, safer than ever, and cost less to fuel over their lifetimes. We are proud to fulfill President Biden’s mission to move us to a more sustainable future, one that strengthens American energy independence and helps put more money in American families’ pockets.” This announcement of new standards comes as the automobile

industry is retooling production for future models in response to rapidly growing market demand for cleaner, more fuel-efficient vehicles. Nearly all auto manufacturers have announced new electric vehicle models. More robust fuel economy standards will encourage the industry to continue improving the fuel economy of cars powered by internal combustion engines as the transportation sector transitions to electrification. The final fuel economy standards follow Biden’s Executive Order 13990, which directed NHTSA to review the 2020 “The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks” final rule. These CAFE standards also support the Biden-Harris Administration’s priorities to cut costs for American families, improve public health, combat climate change and create and sustain good-paying jobs with a free and fair choice to join a union. Source: NHTSA

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‘Who Pays for What?’ Survey Shows More Auto Body Shops Billing, Being Paid for Masking During Priming

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The percentage of auto body shops saying they are paid regularly by the eight largest auto insurers for the labor involved in masking prior to applying primer has grown significantly since 2015, according to the “Who Pays for What?” survey series. Seven years ago, fewer than one in four shops (24%) said they were paid “always” or “most of the time” when masking was required as part of the priming process. In January of this year, that had grown to 45%, a figure that has been consistent for three years in a row. Perhaps just as significantly, the percentage of shops saying they have never billed for the procedure has fallen from about 39% in 2016 to just 25% today. While the surveys ask specifically about billing for the labor involved in the procedure, Mike Anderson of Collision Advice is concerned some collision repair businesses may not be sufficiently considering the costs for the materials involved.

CDK Global has expanded its support of the ASE Education Foundation with a second donation of $20,000 to provide technician toolboxes to aspiring automotive students with a demonstrated need. This donation is in addition to the CDK donation announced earlier in March that will support the foundation’s diversity, equity and inclusion program. Data shows 94% of students who focus on a CTE (Career and Technical Education) course of study graduate from high school on time versus 86% for other high school students, a result that holds true in low-income areas as well. For those students to start their first job, they need the basic tools of the trade. Even with a student discount, sets of starter hand tools can cost $1,000 to $2,000, and this can discourage otherwise promising students from pursuing automotive service careers before they even get started. Source: ASE

“As inflation drives up the cost of shop supplies, it’s important for shops to review their billing practices,” said Anderson, who conducts the quarterly “Who Pays” surveys in conjunction with CRASH Network. “We see many shops billing for this masking procedure through their parts code tables as a body operation with a manual line for materials, and they are not capturing enough for materials. Shops should review this because it can vary based on the specific job.” The latest quarterly “Who Pays for What?” survey is now open through April. It focuses on “not-included” body labor operations. Shops can take the survey at: https://www.surveymonkey. com/r/76X7BMV Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information

presented. Anderson said the survey, which has been streamlined to take less than 15 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at https://www.crashnetwork.com/ collisionadvice Collision Advice (www.CollisionAdvice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. CRASH Network (www.CrashNetwork.com) is a subscription newsletter offering news and information not available from other industry sources. Source: CRASH Network

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Improved Semiconductor Supply Drives Truck Market Share Gains for GM General Motors Co. sold 512,846 vehicles in the U.S. in the first quarter of 2022, with improved semiconductor supplies supporting higher production and market share in key truck segments. “Our ability to meet pent-up demand improved dramatically thanks to a tremendous effort by our supply chain and manufacturing teams to keep our plants operating at close to normal levels,” said Steve Carlisle, executive vice president and president, GM North America. “Supply chain disruptions are not fully behind us, but we expect to continue outperforming 2021 production levels, especially in the second half of the year.” According to GM Chief Economist Elaine Buckberg, industry light vehicle volumes will grow this year and top 2021 levels, thanks to a strong labor market, higher vehicle production and pent-up demand. “Ordinarily, a U.S. economy this strong would translate into light vehicle sales in the 17 million range,” she said. “Improvements in the supply chain should lift auto sales as the year progresses, despite headwinds from higher inflation and fuel prices.”

GM estimates total light vehicle SAAR for the first quarter was 14.1 million, down from 16.8 million a year ago, due to lower inventory and production levels. GM deliveries in the first quarter were down 20% from a year ago, but they were up 16% from the fourth quarter. GM’s production in North America has increased sequentially each quarter since the end of September 2021, and the company ended the first quarter with 273,760 vehicles in dealer inventory, including in-transit units, which are rising. Inventories were 128,757 units at the end of the third quarter of 2021, and 199,662 at the end of the fourth quarter. GM expects inventory to remain relatively low throughout the year due to high demand. GM’s performance, along with a more stable operating environment, has already translated into market share gains for GM in key truck segments: The combined retail market share of the Chevrolet Silverado HD and GMC Sierra HD pickups was a segment-leading 41.5% during the first quarter, according to J.D. Power PIN— up more than 10 percentage points from a year ago and GM’s strongest

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Chevrolet Silverado medium duty line, which is a popular choice for upfitters, was up 23%. Fleet sales, which were 24% of GM total sales in the first quarter, grew 10% year over year, with commercial and government deliveries up 14% and 18%, respectively. Chevrolet Tahoe sales to government customers increased 243%. The first quarter saw GM reach several milestones as the company scales EV capacity in North America to more than 1 million units by the end of 2025. GMC’s launch of the HUMMER EV is going according to plan, with early production focused on satisfying orders of the launch edition. Production of the Chevrolet Bolt EV and Bolt EUV will resume April 4. Chevrolet dealers continue to repair customer vehicles and recently resumed deliveries of some completed Bolt EV and Bolt EUVs in inventory. Production of the Cadillac LYRIQ began March 21, nine months ahead of the company’s original target. Cadillac will begin taking orders for future editions May 19. Source: GM

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quarter in HD retail market share in over a decade. The Chevrolet Silverado 1500 and GMC Sierra 1500 also led their segment during the quarter, with combined retail market share of nearly 42%, up 2.6 points year over year, according to J.D. Power PIN. The combined retail market share of the Chevrolet Tahoe, Chevrolet Suburban and GMC Yukon and Yukon XL reached 69% during the first quarter, up 5 points year over year. GM’s sales in the segment were up 10%. The Cadillac Escalade had its best first quarter since 2007, with a 7% sales increase. In another sign of robust economic growth, commercial customers have been upgrading and expanding their fleets. GM delivered its best commercial sales quarter in nearly three years with sales velocity at the end of the quarter reaching a 15-year high. In the commercial market, sales of full-size pickups were up 5%, compact SUVs up 131% and mid-size pickups up 23%. Total first-quarter deliveries of the Chevrolet Low Cab Forward were up 48% compared to a year ago. The

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General Motors is expediting GMC Hummer EV production after receiving more than 65,000 reservations. “Production’s actually slightly ahead of plan, and we’re putting things in place now to actually expedite that as well, so we can deliver these reservations quicker than we originally thought. We’re seeing momentum building,” Duncan Aldred, GMC’s global vice president, told CNBC. He also said GMC Hummer EV reservations had exceeded expectations. Once again, the demand for electric vehicles remains strong. Ford was in a similar situation with the Mustang Mach-E. Aldred said about 95% of people are converting their Hummer EV reservations into orders, a much higher number than GM expected. Unfortunately, he estimated the company will not be able to fulfill new Hummer EV pickup orders until 2024. Meanwhile, the Hummer EV SUV is expected to arrive in 2023. “What we’re looking at now is how can we build the maximum

amount and how can we deliver, fulfill these reservations as quickly as possible? We’re doing all the studies on that, and we’re confident we can go a lot quicker than we originally thought, but it still means a reservation now probably means delivering in ’24,” said Aldred. GM has invested billions in transitioning from an internal combustion engine producer to an electric vehicle manufacturer. The legacy automaker plans to build most of its EVs at Michigan’s Orion and Factory ZERO facilities. The Orion plant is expected to produce up to 360,000 EVs per year by 2025, while Factory Zero could make up to 270,000 units by mid-decade. GM unveiled the Hummer EV SUV after the pickup version. Megan Hart, assistant marketing manager for the Hummer EV, noted newer reservations seemed evenly split between the SUV and pickup truck versions. In December 2021, GMC announced Factory ZERO had already produced the first 2022 Hummer EV pickup trucks. The announcement kicked off customer deliveries.

autobodynews.com / MAY 2022 AUTOBODY NEWS 47

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