June 2012 Southeast Edition

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Norman, Oklahoma Body Shop Narrowly Escapes Next Door Tornado Devastation

by Melanie Anderson

In tornado season in Oklahoma you don’t have to be superstitious to think bad things could happen on any given day, never mind Friday the thirteenth. But for Norman shop owner Philip DeFatta, this Friday, April 13, Leon Pierce Body Repair at 521 N. Porter Ave. in Norman, OK could have been a day out of narrowly escaped a tornado that ripped through the town on April 13. The building next door is being demolished after the movies. At about 4:00 sustaining considerable damage. Photos courtesy of Philip p.m., a tornado hit the heart DeFatta, owner of Leon Pierce Body Repair. of Norman, Oklahoma and cut roughly an eight-mile swath happen. I call that ‘stuperstitious,’” through the town, especially the joked DeFatta, 43, owner of Leon Pierce Body Repair at 521 N. Porter southwest portion.

According to local reports, the Avenue.

However, that afternoon he was tornado hop-scotched through the center of town, tossing telephone dashing inside his shop to take cover poles, shredding trees and ripping off as the tornado hit. DeFatta heard the roofs. At least 10 people were taken to building next door literally explode, and debris from that building flew the hospital with minor injuries.

“I didn’t wake up that morning into his shop through the large garage thinking anything bad was going to See Friday 13th, Page 35

IA L SP E C T ISSUE PAIN

REFINISH PAINT &

of 3 issues S

OGIE TECHNOL

VOL. 3 ISSUE 4 JUNE 2012

State Farm’s PartsTrader Program Encounters Significant Opposition, Not Just From its DRPs State Farm’s forced implementation of its PartsTrader e-bidding process within its Select Service Program shops has ignited a firestorm of criticism from the industry, not just from its own DRPs. Usage of the PartsTrader software, developed in New Zealand, has been required by the insurer in several test markets nationwide, including Tucson, AZ, and Birmingham, AL, however several sources have reported shops dropping the Select Service Program as a result, up to 40% in some markets.

The Alliance of Automotive Service Providers (AASP), the Society for Collision Repair Specialists (SCRS), and the Automotive Service Association (ASA) and numerous independent industry observers have come out with strong statements cautioning their members against State Farm’s bidding process for parts procurement.

AASP called it “an unprecedented and uninvited intrusion into the business of collision repair.” The AASP released the following statement, which reads in part: “Despite posturing from the largest national insurance carrier on what it believes to be positive attributes of the program, collision repair facilities, parts suppliers, parts manufacturers and interested parties around the country have been consistent in their perception that this type of activity will ultimately harm their

businesses and the customers they serve.

“Collision repairers are in the business of selling parts, labor and materials at a retail level. Each of these revenue sources contributes to the overall success of the roughly 35,000 small businesses across the nation, allowing the business to provide employment opportunities to individuals within their community and invest in the necessary equipment and training needed to provide customers with safe, quality repairs.

As is the case with all types of business—including the business of insurance—the pursuit of a return on investment (profit) is a core principle, and one that collision repairers should neither apologize for nor relinquish to the influence of other parties.

“Insurers are in the business of insuring risk and then settling losses at market value when those losses occur. As the payer of claims, insurers should not be “market makers” for pricing of individual products and services that are components of final invoices. To date, insurance pressure and influence over collision repair market pricing has driven average profit margins to low single-digit figures, despite the fact that the business of collision repair has a high cost of entry and requires ongoing capital investments to keep pace with automotive technologies.

See Parts Trader, Page 6

Summit Software’s President and Head Sherpa Frank Terlep talks with Autobody News about the state of Digital Media for the Collision Industry

by Melanie Anderson see p. 18

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2 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

Contents

NATIONAL “V2V” Communications a Hit . . . . . . . . . . 46 AkzoNobel Announces 2012’s Most Influential Women . . . . . . . . . . . . . . . . 37 ASA Says it is ‘Fact Finding’ on State Farm’s PartsTrader . . . . . . . . . . . . . . . . 6 ASAA to ‘Educate’ Legislators on Aftermarket Parts . . . . . . . . . . . . . . . . 16 Audi A3 Development with Master Jigs and Color Matching . . . . . . . . . . . . . . . 43 Bill to End Fossil Fuel Subsidies Introduced to Congress. . . . . . . . . . . . . . . . . . . . . 37 BMW Recalling Diesel Vehicles or Fuses . 26 BMW Replaces Toyota as Most Valuable Automotive Brand . . . . . . . . . . . . . . . . 26 Carfax Study Shows Consumer Threatened

by Ignoring Recalls . . . . . . . . . . . . . . . 26 Carroll Shelby—Race Driver, Designer, Industrialist—Dead at 89 . . . . . . . . . . . 17 Chrysler Recalls 68,000 Jeep Wranglers for Fire Concerns . . . . . . . . . . . . . . . . . 26 Chrysler to Recall 127K Dodge Chargers and 300’s for Fuses . . . . . . . . . . . . . . . 26 Collision Repair Education Foundation to

PAINT SPECIAL

Auto Painting USA Collision Specializes in Cosmetic Repair . . . . . . . . . . . . . . . . . 30 Custom Painter Jim Hetzler Started Out at Age 13 with a Model Car . . . . . . . . . . . 34 DuPont™ Cromax® Pro is the Ultimate Upgrade for Your Refinish Painting Process. 22 House of Kolor® Colors Automotive World for 56 Years. . . . . . . . . . . . . . . . . . . . . 38 Leading Edge Receives BASF Automotive Refinish Distributor of the Year Award. . 23 Legendary “Crazy” Painter Mitch Kelly Cites his Top 5 Projects . . . . . . . . . . . . . . . . 32 Top Hot Rod Shines ‘Brilliant Red’ Bright with Glasurit® Paint . . . . . . . . . . . . . . . 36

talented teammates and skilled technicians to our base of nearly 1,400 Service King teammates throughout Texas,” added Abraham.

“We are very excited about Auto Body World joining the Service King Team,” stated Mark Turner, Auto Body World’s President. “Both companies believe that we’re a great match for each other, in that we share very common cultures, and while Service King brings national insurance relationships and financial strength, Auto Body World brings dominance in a new market, with a strong operations team and platform for rapid growth.”

Cathy Bonner, CEO of Service King stated, “In DFW and Houston, Service King has been recognized as one of the “best places to work” by the Dallas and Houston Business Journals, and we plan to bring our same level of health, retirement, and career benefits to all new teammates in Arizona.”

Said Eddie Lennox, “Service King is one of the fastest growing US based collision repair companies is because of the team we have in place. The people in this company focus on what’s most important and take pride in providing the best service and quality collision repairs, while caring for our customers.”

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

Southeast

COLUMNISTS I-CAR - Bonding and Rivet Bonding Technology on Steel BMW Vehicle Parts. 42 Insurance Insider - Is the State Farm Elephant in the Room a Bad Elephant? . . . . . . . . 40 Nigro - Domenico Nigro’s Q&A with Chuck Gosney of Collision Billing . . . . . . . . . . 41 Sisk - Larry Montanez Talks OEM Procedures and Repair Standards . . . . . 4 Sisk - Pompano Beach’s Auto Tech and Body: Community and Customer . . . . . 12 Weaver - Comparing Automotive Parts: Is it Apples to Apples? . . . . . . . . . . . . . 27 Yoswick - Shops and Insurers Discuss Indemnification in DRP Contracts . . . . . 39

Award Two $50K Grants . . . . . . . . . . . 10 Collision Section Secures Exhibit Space at SEMA Show. . . . . . . . . . . . . . . . . . . 46 Distracted Driving No. 1 Killer, Especially of Texting Teens . . . . . . . . . . . . . . . . . . 26 Enterprise Introduces Customer Repair Notification Tool. . . . . . . . . . . . . . . . . . 46 Female Technician Leads New Reality Series for TV . . . . . . . . . . . . . . . . . . . . 23 Ford Blocks JAC from Selling Blatant F-150 Knock Off . . . . . . . . . . . . . . . . . 26 Ford Recalls 10.500 Vehicles for Transmission Sensor Issues . . . . . . . . 26 Ford Starts Shipping its first EV, the Focus Electric, to Dealers. . . . . . . . . . . 45 Ford Tweaks GM and Doubles Down on Facebook Advertising. . . . . . . . . . . . . . 35 Forgetting to Use Blinkers Caused 2 Million Accidents . . . . . . . . . . . . . . . 47 GM to Stop $40M in Facebook Advertising —“it’s ineffective” . . . . . . . . . . . . . . . . 35 Google’s Driverless Car . . . . . . . . . . . . . . 20 Leading Edge Receives BASF Automotive Refinish Distributor of the Year Award. . 23 Major Physical Damage Indicators Up For 6 Quarters . . . . . . . . . . . . . . . . . . . . . . 16 Nissan Recalling Certain 2012 Titan Pickups for Mislabeling . . . . . . . . . . . . 26 OSHA Fines San Antonio Parts Supplier Due to Fatal Accident . . . . . . . . . . . . . . 45 Romney Claims Credit in Auto Industry Turnaround . . . . . . . . . . . . . . . . . . . . . 16 Shop Owner Arrested in ‘False Auto Theft’ Allegation . . . . . . . . . . . . . . . . . . . . . . 47 Six Found Guilty in $800,000 Auto Loan Scheme . . . . . . . . . . . . . . . . . . . 17 State Farm’s PartsTrader Program Encounters Significant Opposition, Not Just From its DRPs . . . . . . . . . . . . . 1 Taiwanese Auto Parts Makers Eye Recovering US Market . . . . . . . . . . . . . 47 Web-Est Adds No-Cost Paint Codes to Estimating Platform . . . . . . . . . . . . . . . 37 Why Your Body Shop Can’t Ignore Social or Digital Media . . . . . . . . . . . . . 18 Will Driving Become Too Safe for Body Shops and Insurers? . . . . . . . . . . . . . . 20 Women’s Industry Network 6th Annual May Conference Hosts 200 Women . . . 22

Texas-based, Service King Collision Repair is partnering with Auto Body World, Inc., with nine large scale, high volume locations throughout metro Phoenix and Casa Grande. Terms of the agreement were not disclosed.

The transaction is expected to close in July 2012. By joining Service King, Auto Body World will become a part of the third largest collision repair company in North America with 48 Texas locations throughout the Dallas, Ft. Worth, Houston, San Antonio, and Austin areas.

Service King’s expansion across Texas over the last three years has taken Service King from the 6th to the 3rd largest collision repair company in North America, doubling revenue and location count.

“We welcome our new teammates in Arizona to the Service King family,” said Service King’s President, Chris Abraham. “We’re excited about the opportunity here. Arizona is special because it’s our first venture outside of Texas, but it’s not our last.”

“Service King is committed to continuing Auto Body World’s long tradition of excellent customer service and quality repairs with good relationships in the insurance industry. We look forward to adding Auto Body World’s

Indexof Advertisers

REGIONAL ABRA Opens 20th Body Shop Location in Macon, GA. . . . . . . . . . . . . . . . . . . . . 9 Alabama Students Compete in SkillsUSA Welding Competition . . . . . . . . . . . . . . . 9 Georgia’s Blue Bird Corporation Wins Environmental Award . . . . . . . . . . . . . . 10 Gunder Presents at GCIA Legal Seminar in June . . . . . . . . . . . . . . . . . . . . . . . . 10 Hit and Run Driver with 42 tickets lets Mother Take the Rap . . . . . . . . . . . . . . . 8 Hundreds of Never Used Miami-Dade Vehicles ‘Found’ . . . . . . . . . . . . . . . . . 10 New Maaco Opens Near Closed Shop in Cape Coral, FL . . . . . . . . . . . . . . . . . . . . 8 Newest Body Shop Boy, Matt Ng, Shines in Rumble . . . . . . . . . . . . . . . . . . . . . . 46 Norman, Oklahoma Body Shop Narrowly Escapes Next Door Tornado Devastation . 1 Save The Dates for Golf . . . . . . . . . . . . . . 10 Service King Acquires Arizona’s Auto Body World . . . . . . . . . . . . . . . . . . . . . . 3 Williamson’s Paint & Body in Cairo, GA, Adds U-Haul Rentals . . . . . . . . . . . . . . . 9 Wiregrass Tech College Offers Low Cost I-CAR Platinum Rank . . . . . . . . . . . . . . . 8

Service King Acquires Arizona’s Auto Body World

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

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BASF . . . . . . . . . . . . . . . . . . . . . . . . . 7 BMW Wholesale Parts Dealers . . . . 41 Chief Automotive. . . . . . . . . . . . . . . 17 Classifieds. . . . . . . . . . . . . . . . . . . . 47 CSS USA, Inc.. . . . . . . . . . . . . . . . . . 8 Delray Honda . . . . . . . . . . . . . . . . . 37 Don Reid Ford. . . . . . . . . . . . . . . . . 22 Equalizer Industries . . . . . . . . . . . . . 4 Ford Wholesale Parts Dealers FL, GA, AL, MS . . . . . . . . . . . . . . 21 Garmat USA . . . . . . . . . . . . . . . . . . 10 Global Imports MINI . . . . . . . . . . . . 12 Gray-Daniels Auto Family . . . . . . . . . 5 Gus Machado Ford . . . . . . . . . . . . . 27 Hendrick Honda . . . . . . . . . . . . . . . 33 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Hyundai of Orange Park . . . . . . . . . 32 Hyundai Wholesale Parts Dealers . 37 Jerry Ulm Chrysler-Jeep-Dodge. 14-15 Kendall Mitsubishi. . . . . . . . . . . . . . . 6 Kia Motors Wholesale Parts Dealers. 29 Mazda Wholesale Parts . . . . . . . . . 35 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 46

MINI Wholesale Parts Dealers . . . . 45 Mitsubishi Wholesale Parts Dealers. 33 MOPAR Wholesale Parts Dealers . . 23 Nalley BMW. . . . . . . . . . . . . . . . . . . 31 Nissan Wholesale Parts Dealers. . . 41 Palmers Toyota . . . . . . . . . . . . . . . . 31 PCL Automotive . . . . . . . . . . . . . . . . 9 Porsche Wholesale Parts Dealers . 38 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Preval . . . . . . . . . . . . . . . . . . . . . . . 48 Safety Regulation Strategies . . . . . 22 Sam Galloway Mazda . . . . . . . . . . . 13 SATA Spray Equipment . . . . . . . . . 19 SCA Appraisal Company . . . . . . . . 30 Serra Mazda . . . . . . . . . . . . . . . . . . 18 Serra Automotive Group . . . . . . . . . 11 Solution Finish . . . . . . . . . . . . . . . . 42 Southtowne Hyundai . . . . . . . . . . . 35 Subaru of Gwinnett . . . . . . . . . . . . . 36 Subaru Wholesale Parts Dealers . . 43 Tameron Hyundai . . . . . . . . . . . . . . 30 Toyota Wholesale Parts Dealers . . . 40 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 44

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 3

Northeast News

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans.

She can be contacted at crsisk@chasidyraesisk.com.

Larry Montanez Talks OEM Procedures and Repair Standards with Chasidy Rae Sisk

After listening to Larry Montanez III repairs and product, copyright and trademark protection. of P & L Consultants discuss OEM procedures and repair standards at with Chasidy Rae Repair Sisk Standards AASP NORTHEAST™ in March this year, I wanted to know more about The desire for repair standards results him and his company. from the influence of outside entities, First, a little personal history. As a or according to Montanez, “repair teenager, Montanez was all but obsesstandards are made up by people who sive about cars, both in real life and on are trying to appease a different group TV. Enamored with the Batmobile, he of people who have no business being remembers that fast American muscle involved in collision repair, who are cars were—then and now—“where it’s looking to save money on it.” at.” It’s became a lifelong fascination.

Montanez notes that collision reAs an adult, he became involved in pairers want repair standards because the auto body industry as a fabricator they are untrained and are reluctant to and welder focused on customizations search for them on OEM websites. and restorations. Around 2000, MonMLO shop owners want them to make tanez became an I-CAR instructor, and insurance “partners” happy since inabout six months later, he and his mensurers desire repair standards because tor, Peter Pratti, decided to begin a they want to save money. Aftermarket consulting business aimed at teaching suppliers are also driven by greed and both sides of the business to both sides the desire to make sales, while many of the business, auto body shops and industry associations are influenced insurance agencies, in an effort to by insurers. Still, Montanez does not prove that everyone should be able to believe that the idea of creating repair get along and to work together to figure standards is not completely wrong; he out how things should be done. Monis just not comfortable with the parties tanez and Pratti strive to teach the same involved as their reasons for wanting material in the same exact way, regardrepair standards create a biased view. less of their audience.

If repair standards are created, MonMontanez and Pratti began by tanez insists that it should begin with the teaching classes on estimating as well formation of an independent group comas the triaging/blueprinting process, prised of OEM representatives, collision providing two aspects of the same subrepairers, engineers, physicists, metalject. Additionally, they offer classes on lurgists, industry experts and I-Car Tech damage analysis, welding, structural Center’s Jason Bartanen and Steve repair, airbag knowledge and safety inMarks. Additionally, repair standards formation. P & L Consultants currently should only be created where none curoffers a dozen classes, six of which rently exist and only after a request letter have been approved for the Rhode Isto the OEM has failed. They should also land Training Certification program. be supported by crash testing and computer animated drawings, and they should be reviewable every six months.

OEM Procedures In discussing OEM procedures, MonMontanez points out that this process tanez reasons that they exist to provide should not include insurance companies OEMs with liability protection and bebecause “no one cares what the insurcause of component failure as supported ance companies think.” by testing, in addition to the pressure Specifically, both OEM and afterfrom government regulations, consumer market parts should be tested to prove advocates, IIHS crash testing and that the aftermarket parts work just as NHTSA investigations, lawsuits and well as OEM parts before their use is court decisions and defects attributed to encouraged. design flaws. OEM position statements Montanez lists the pros of creatwere created for the purposes of or being repair standards as follows: more cause of OEM liability protection, comavailable procedures, lower insurer ponents failures supported by case costs, lower severity, fewer totaled vestudies, lawsuits and court decisions, re- hicles, more repaired vehicles, better engineering design flaws, ensuring safe insurer relations, more use of used

Shop Showcase

parts, more sectioning procedures and more parts options.

He also notes the following cons: more improper repairs, more liability exposure, more fatalities, more injuries, more diminished value lawsuits, more shop lawsuits, dangerous to motorists and more bad business decisions. The use of damaged components or inferior parts can lead to more injuries in collision because the vehicle will not react the way it should, and this can lead to catastrophic separation which becomes a hazard to the general driving public.

In the case of improper repairs, even if due to the parts requested by the insurance company, liability falls on the repair facility, the shop owner personally, the technician (in some states) and sublet jobbers. The supplier can also be sued, but the insurer will never be called to the courtroom for an improper repair. Because the shop is po-

Mainstream Media

4 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

tentially liable, shops should inform the customer or the insurance company if they cannot repair cars that way to avoid liability issues. In the instance of liability, safety factors are important, so only the OEM guidelines matter.

Because so much time, money and effort goes in to creating OEM procedures, these should always be adhered to. The goal behind their multiple engineering principles is to keep the occupants safe, therefore it is very important not to change the parameters of OEM guidelines. In order for repair standards to be made, a comparable amount of time, money and effort should be utilized. When OEM procedures are not available, a panel needs to collaborate to create repair standards to form a consensus that enhances the safety of collision repairs for all drivers and protects collision repair facilities from issues of liability.

See Larry Montanez, Page 31

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Continued from Cover

PartsTrader

“Feedback from other markets outside the U.S. familiar with insurermandated bidding platforms indicates that the State Farm parts bidding program is a win-lose scenario, with repairers losing both profit and control of their business. Furthermore, the negative impact of this parts program has the very real potential to quickly spread beyond parts to other areas, such as paint, and beyond the boundaries of voluntary direct-repair program (DRP) agreements to the industry at large. If State Farm contends that this parts program is indeed good for the collision industry, surely the industry would embrace the program on a voluntary basis – assuming the benefits of the program did indeed extend to more participants than just the carrier.

“The collision repair industry has gradually transitioned from a proud trade of hard-working owners and employees to a service provider that subcontracts to the insurance industry, working on net margins that it no

longer controls and that jeopardize its ability to invest in its business and attract and train qualified employees to ensure safe and quality repairs. AASP has grave concerns for its members’ future welfare if giant insurance corporations are permitted to trample on the free market philosophies that support a culture of small business success.”

John Shoemaker, of JSE Consulting, released the following statement; “The collision industry has weathered situations like this as in the Safelite Glass Program and Greenleaf salvaged parts program. Both these insurance company directed programs whittled away the shop owner’s ability to make a business decision that benefited the shop. All shop owners develop an expectation on how their business should operate as well as establishing the profit margins necessary to ensure survivability. They have developed business partnerships with local businesses to ensure that their profit margins are maintained. In-turn the local business have relocated stores to become more convenient, stocked more parts and negotiated with shop owners to maintain an edge on their

ASA Says it is ‘Fact Finding’ on State Farm’s PartsTrader

The Automotive Service Association (ASA) is conducting a multi-segmented fact-finding mission on State Farm's new electronic parts procurement program “to ensure the information collected and provided to the ASA membership and the broader industry is as accurate and thorough as possible.”

An ASA Collision Division team consisting of operations committee members and staff recently interviewed George Avery, State Farm’s claims consultant, regarding the pilot program. ASA has since posed some follow-up questions and will issue further statements as conversations continue.

Several additional interviews are being set up with other industry parties involved in the program. ASA says that as each exchange is factchecked for clarity, updates will be shared with ASA members and the industry at large.

“State Farm’s pilot program has a potential to have a tremendous impact on the collision repair industry and the motoring public,” said Denise Caspersen, ASA Collision Division manager. “It is vital for ASA to approach this situation methodically with an emphasis on facts to ensure that the results of the pilot are in the best interest of the collision repairer.

ASA has an obligation to provide our membership, and the industry, as much factual information as possible – just as State Farm has an obligation to answer the community’s concerns.

ASA also has a responsibility to address issues directly with the parties involved to provide recommendations and solutions benefitting repairers, consumers and the industry.”

Several of ASA’s volunteer leaders representing the collision repair membership also spoke with Rob Cooper, CEO of PartsTrader LLC. ASA’s questions focused on implementation plans, supplier qualifications, data extraction and quality checks on recommended parts. ASA is also following up with Cooper with additional questions and comments.

“This pilot program, which reaches beyond the insurer/repairer relationship, is at a pivotal point to potentially allow adjustments to the program as a result of industry input and analysis,” said Caspersen.

“If this tool is to go forward and benefit the entire industry, it requires transparency, mutual understanding and collaboration. ASA is committed to a collaborative process that produces the best possible outcome for the collision repairer. ASA says the key questions are the financial impact of the program on body shops.

6 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

market. The State Farm Parts Program negates these partnerships forcing shop owner’s to purchase parts from an unknown outside their market. As insurance companies move farther away from insuring vehicles and go deeper into the repair process shop owners will see further erosion of their ability to run their business. First it was glass, now it is parts, tomorrow it could be paint.

“Another issue I have with the State Farm Parts Program is the distraction it has caused in the collision industry. Every blog I read, every magazine I open up and every shop owner I talk to has the State Farm Parts Program on top of their mind.

Everybody is up-in-arms about it and not paying attention to the immediate tasks on hand. If you look around you will see that this program has caused distractions far beyond parts!

“My last thought on this is that shops are dropping State Farm as a DRP, up to 40% in some markets and State Farm does not care. They are contacting shops that were previously dropped from the DRP program for multiple reasons and signing them back up if they agree to the parts program. Does that mean that you can be

a poor performer and as long as you accept their parts program you are good again?”

See additional reaction at www.autobodynews.com, including SCRS’ statement and Scott Biggs’ blog: “State Farm – Parts Trader: It’s about losing profit, control, and your very survival” which can be read at ScottBiggs.com.

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www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 7

New Maaco Opens Near Closed Shop in Cape Coral, FL

Less than a year after the Maaco Collision Repair and Auto Painting Center in Cape Coral closed its doors, another has opened.

Collision Center Company's new franchisee, Jonathan Washer, opened a new repair shop in Cape Coral in late May, just a few blocks away from the old location.

Although the last Maaco closed in July 2011, conditions were right to open his business, said Washer.

“I’m very motivated and driven and what happened with them didn’t concern me, didn’t affect me,” he said. “I’m pretty determined to succeed.”

Todd Jenkins, who had owned a different Maaco center in Cape Coral for about five years, said his business sunk when the economy tanked in mid-2007.

“The economy just kind of pushed me out the door,” he said.

Jenkins had fewer jobs coming into the shop, despite having the corporate support and recognition of a national brand, and had trouble keeping up with operational costs and franchise royalty fees, he said.

Now he’s beating the pavement looking for work, he said.

Still, hundreds of franchisees across the country weathered the recession and Maaco had dramatic sales increases in 2010 and 2011, said Dave Schaefers, senior vice president of franchise development for Driven Brands, the parent company of MAACO Franchising Inc. and other automotive aftermarket retailers.

Opening a franchise isn’t a decision that comes lightly on either side.

To become a Maaco franchisee, owners must show a net worth of roughly $300,000 with $90,000 available as liquid cash, Schaefers said.

Washer, a retired Lee County sheriff’s economic crimes investigator, started the process of opening his Maaco center years ago and paid the down payment on his franchise in October 2010. He secured a Small Business Administration loan and invested hundreds of thousands of dollars, purchasing the industrial building where the shop is, and investing in top notch equipment to paint, repair and refinish vehicles, he said.

He’s installed a new paint mixing room, a paint booth and a separate oven in the 11,000-square-foot shop.

Wiregrass Tech College Offers Low Cost I-CAR Platinum Rank

Wiregrass Georgia Technical College with campuses in Valdosta, Fitzgerald, Douglas and Sparks, is a host site for I-CAR training classes for collision shop technicians, owners, and managers, as well as insurance adjusters.

I-CAR training currently includes seven different classifications for training: Estimator, Steel Structural Technician, Aluminum Structural Technician, Non-Structural Technician, Electrical/Mechanical Technician, Refinish Technician and Auto Physical Damage Appraiser. Each classification contains several training classes that range from four hours to two days.

A technician must have ten classes to reach Platinum and must take two classes per year to maintain the Platinum status. Wiregrass Technical College is in the I-CAR Alliance which enables students to achieve Platinum status before graduating at a lower cost than they would at work.

Formed in 1978 by the collision industry, I-CAR is an international non-profit training organization. Their focus revolves around helping the industry achieve a high level of technical training.

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CSS USA, Inc. Phone: (904) 567-3825 (866) 910-0889 www.carcoonusa.com info@carcoonusa.com 8 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

Hit and Run Driver with 42 tickets lets Mother Take the Rap

A college student from Paoli, Chester County, is in a coma more than 1,000 miles from home after a hit-and-run driver plowed into Eliza Gresh in Miami, authorities say. The teen was crossing the street on April 27 when police say a hit and run driver plowed into Gresh. Police were looking for the car, a Mercedes Benz, and the driver, Luis Moya, 24.

The car showed up at an auto body shop a week later, but not with Luis. Behind the wheel was Moya’s mom, Zoila. She told the shop owner she had gotten into an accident, but the shop owner recognized the car from police descriptions and called investigators.

Police took Zoila into custody and got in touch with Luis Moya through his mother and told him if he did not turn himself in, they would arrest his mother and charge her with filing false and fraudulent insurance claims. Moya told them to go ahead and arrest her.

Luis Moya has received 42 traffic tickets in the last five years, including tickets for reckless and careless driving.

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Williamson’s Paint & Body in Cairo, GA, Adds U-Haul Rentals

Stacy Williamson, the owner of Williamson’s Paint & Body, located at 900 1st Ave. NE, in Cairo, GA, recently added U-Haul truck and trailer rentals to the company’s auto service business.

Williamson’s Paint & Body offers its customers a variety of moving equipment and supplies designed specifically for moving household furnishings, including moving vans, open trailers, closed trailers, furniture pads, appliance dollies, furniture dollies, tow dollies and auto transports. Williamson’s Paint & Body also will offer sales items to protect their customers’ belongings and make moving easier, such as heavyduty boxes, which are made of up to 90 percent recycled content and are available in a variety of sizes.

“U-Haul is proud to be partnering with a quality independent business such as Williamson’s Paint & Body,” said Tony Fretwell, president, U-Haul Company of Southern Georgia. “Stacy is a great example of the type of successful business relationship U-Haul has used to establish a network of more than 15,000 independent dealers across North America.”

For more information: U-Haul Public Relations (602) 263-6194.

ABRA Opens 20th Body Shop Location in Macon, GA

A vacant former car dealership in north Bibb County is becoming a new body shop. Minnesota-based ABRA Auto Body & Glass bought the 20,129 square-foot former BMW dealership at 111 Riverside Parkway in Macon, GA, and spent nearly four months renovating the building, said David Kulkis, regional business development director in Atlanta.

“We believe it’s an excellent market for our business model,” Kulkis said. “And the research we did indicates we should be very successful there. It fits the profile and what we look for size, cost to renovate it, visibility from the road, proximity in the city and where the growth is (located).” The store is expected to open with about seven employees “but will grow rapidly,” he said. “We will eventually have about 30 people.”

This will be ABRA’s 123rd location in the country and the 20th in Georgia, Kulkis said.

Since the company has been “very, very successful in Atlanta,” it wanted another location in this area, he said.

ABRA opened a location on Carl Vinson Parkway in Warner Robins in January.

Alabama Students Compete in SkillsUSA Welding Competition Students from different schools in Alabama recently participated in a welding competition at Gardendale High School in Jefferson County.

The 2012 SkillsUSA welding contest was held with 20 students and instructors from 12 districts competing for the state championship. The state championship will eventually lead to a national championship.

The contest took place inside a welding and auto-body facility that stands next to the school. Tables were set with slabs of scrap metal that served as different substrates for welding.

Among the procedures were TIG (tungsten inert gas), SMAW (shielded metal arc), GMAW (gas metal arc), flux core and others.

In addition to Gardendale, other students came from Minor, Shades Valley, Wenonah, Cullman, Elmore, Randolph/Roanoake, Talladega, Walker County Center of Technology, W.A. Lecroy Career Tech Center and Bessemer Center for Technology.

The student from Gardendale was Justin Foshee, who worked with the GMAW procedure. Tim Turner is the welding instructor at Gardendale High.

“A student that takes the program seriously can come in and get certified and they can work here in the United States,” said Turner on opportunities for students who are interested in welding. “The welding industry is huge.”

The competition at Gardendale was one of several that took place.

Alabama SkillsUSA held contests for colleges at Wallace State Community College in Hanceville on April 20, and at United Association Local 572 in Tuscaloosa on April 25.

The judges were Bart Maddox of Bridge, Structural, Ornamental and Reinforcing Iron Workers Local 92, David McMahan of Lincoln Electric, Bradley Baugher of Plumbers and Steamfitters and Tommy Cox, a welding inspector.

Stevan Cornelison of the Earnest Pruett Center of Technology was announced as the winner.

SkillsUSA is not just for welding, but hosts competitions for a variety of skills, including fire fighting, masonry, advertising design and photography.

The national championship will take place next June in Kentucky.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 9

Georgia’s Blue Bird Corporation Wins Environmental Award Bus manufacturer Blue Bird Corporation received the Extra Mile Award from the Middle Georgia Clean Air Coalition for their commitment and success in bringing alternative-fueled school bus transportation to the market. The award recognizes organizations that improve Georgia’s air quality while advancing economic, environmental and energy security.

“Blue Bird was chosen because they have gone the extra mile in offering and providing a safe, attractive and viable alternative fuel choice for their buses amidst rising diesel fuel prices,” said Charise Stephens, executive director of the Middle Georgia Clean Air Coalition, speaking about Blue Bird’s Propane-Powered Vision and Propane-Powered Micro Bird. “Blue Bird is a local hero that is supplying cleaner-burning buses throughout the nation. They’ve put Middle Georgia on the map as a hub for clean technology.”

Blue Bird has manufactured buses using alternative fuels since 1991. Their current product line includes two different size school buses fueled by propane autogas and one by compressed natural gas. Now in its 85th year, Blue Bird employs 1,500 employees from about 45 counties

across Georgia. More than 500,000 school buses have been manufactured in the Peach State and delivered to communities throughout the United States and across the world.

“At Blue Bird, we are committed to providing innovative, reliable and efficient green solutions that our customers want and value,” said Phil Horlock, president and CEO of Blue Bird Corporation. “I am honored to accept this award on behalf of all our employees.”

Georgia’s Hall County Schools recently purchased 20 buses, becoming the first school district in the state to fuel with domestically produced, economical propane autogas. Vehicles fueled by propane autogas emit fewer greenhouse gases and hydrocarbons than diesel-powered vehicles.

“We hope and expect to have many more counties in Middle Georgia using clean, domestic propane autogas,” Stephens said.

“Blue Bird is proud to be an important part of the Middle Georgia community,” said Horlock. “We will continue our commitment as a school bus industry innovator, leading the way in finding smart and affordable solutions that benefit the environment and our communities.”

Collision Repair Education Foundation to Award Two $50K Grants

The Collision Repair Education Foundation’s 2012 Ultimate Collision Education Makeover $50,000 school grant application is now available online and two grants (one secondary, one post-secondary) will be awarded this year. The winning schools will be announced during SEMA 2012. As part of the Makeover grant application, schools provide their own itemized wish list, which can include any tools, supplies and equipment that are needed by the collision program.

Each of the winning schools will have their $50,000 wish list fulfilled through the Collision Repair Education Foundation and through industry donors/supporters. The application is available at the Education Foundation’s website (www.CollisionEducationFoundation.org), and must be completed by August 31, 2012. Instructors are advised to begin the application process early and industry professionals are encouraged to get involved with the Makeover grant by working with their local schools’ collision instructors to help them apply.

The GCIA encourages all its member shops to get in touch with their local schools and help the instructor apply for the grant. Part of the application requests schools to include their personalized $50,000 wish list of needed tools, equipment, and

supplies. Those lists (even if they don’t win the Makeover grant) are distributed, asking for donations for the schools. If a school doesn’t apply, their wish lists can’t be fulfilled.

The goal of the Ultimate Collision Education Makeover grant is to honor a school that has been doing an outstanding job in educating students in collision repair, but needs some financial assistance to improve their program’s teaching materials and equipment. With strained school budgets, the Education Foundation and industry supporters have the opportunity to bridge the program’s financial gap and to make a difference in the lives of the students studying collision repair.

Save The Dates for Golf

The Collision Repair Education Foundation Golf Tournament is July 19 at The Palmer Course in San Antonio. For more information, call 847-463-5244 or email Brandon.Eckenrode @ed-foundation.org.

The GCIA 16th Annual Golf Tournament is October 10, 2012 11 a.m. at Trophy Club of Atlanta, 15135 Hopewell Road. Contact GCIA Executive Director Howard Batchelor to learn more about sponsoring or reserving your player spots. Email Howard@ GCIA.org.

10 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

Gunder Presents at GCIA Legal Seminar in June

Ray Gunder will present a legal seminar, “Learn How to Stay Legal in Your Shop,” to the Georgia Collision Industry Association in late June.

Gunder will address basic legal issues relating to operating a successful collision repair shop.

The intent of this seminar is to provide information on legal basics including “Power of Attorney” and “Assignment of Proceeds” (aka Assignment of Benefits). Answers to attendee’s individual questions as to how it may benefit them, their business and their customers, will be available along with other topics such as: Understanding the Repairer’s Legal Responsibilities, Understanding the Customer’s Legal Responsibilities.

Understanding the Insurer’s Legal Responsibilities, Recognizing Legal Liabilities and How to Avoid Them, How to Turn Potential Liabilities into Significant Profits, Making your Repair Authorizations Legally Iron-Clad and Profitable, The Importance of Knowing and Understanding your State’s Laws and Regulations as they relate to your business.

For more information and date of seminar, see the GCIA website.

Hundreds of Never Used Miami-Dade Vehicles ‘Found’

Have you ever bought a brand new car only to forget where you put it?

How about 300 of them? Probably not—unless you’re Miami-Dade County, which was recently reunited with 298 vehicles it bought brand new between 2006 and 2007. Most of the misplaced motorcade is made up of Toyota Prius hybrids whose warranties either expired with very few miles on the odometer or will very soon.

Looking to save some face, the county has rushed at least 123 of the hybrids into service. The Toyota warranty covered the hybrid bits for eight years or 100,000 miles. It is unsure if the warrangy covers cars parked for five of those eight years.

The county is looking into how it lost so many cars. The leading theory is that they might be part of Carlos Alvarez’s time as mayor.

He was the mayor during the period the Toyotas were purchased, but a 2011 recall election successfully removed him from office. Apparently the voters “felt, among other reasons, that he had been behind multiple acts of misappropriation of funds.”

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www.birminghamsubaru.com www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 11

Shop Showcase

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans.

She can be contacted at crsisk@chasidyraesisk.com.

Pompano Beach’s Auto Tech and Body: Community and Customer with Chasidy Rae Sisk

At Auto Tech and Body in Pompano Beach, FL, customer service is a top priority, as is dedication to the community. The reason behind this is

Chamber of Commerce and Leadership North Broward.

On an individual level, Jay Ghanem is President of Pompano Beach’s Rotary Club and is a board member for the Boys & Girls Club of Fort Lauderdale. He also is co-chair for the West CRA for the city of Pompano Beach. Chadia Meroueh, Vice President of Auto Tech and Body, is on the Executive Board and the Board of Directors for the Pompano Beach Chamber of Commerce, and she also sits on the board of the Boys & Girls Club in Pompano Beach, and is an active member of the Kiwanis Club. Other members of the shop’s team participate yearly in the Cancer Society’s Relay for Life, sponsored by the shop.

Auto Tech and Body was founded

by Ghanem in 1999. After obtaining a Master’s Degree in Engineering, Ghanem began his professional career at a national dealership where he was responsible for opening new dealerships all over America and training the technicians and service advisors. After a few years, he decided to venture out on his own, opening a small shop with three technicians. His mission statement reads: “Auto Tech and Body is committed to being the standard in the automotive industry in South Florida by servicing our customers with the highest level of integrity and service in an

Customer service is Auto Tech and Body’s first priority. They specify that they work for the consumer, not the insurance company. The have a high customer satisfaction index level which is maintained according to sur-

Mainstream Media

founder Jay Ghanem’s philosophy that “We want to work for a company that contributes to and is part of the community, where personal values and the passion to repair cars are interconnected with the vision of being of service to our customers and the community as a whole.”

Auto Tech and Body demonstrates their interest in and devotion

to their community in multiple ways. The shop includes an in-house community center that is donated to their community for use by the Kiwanis Club, the Rotary Club, the Key Club and others. They hold multiple car wash fundraisers for different charities and host a blood drive three times a year.

Additionally, they are involved with the Rotary Club, the Kiwanis Club, the Exchange Club and the Soroptimist Club. They also donate time and money to non-profit organizations, such as the Boys & Girls Club, the Dynamos Club, the Key Club and Toys for Tots. The shop also is involved with business organizations such as BNI, the

veys conducted on a daily basis by an in-house employee, as well as monthly reviews conducted by an independent customer research firm.

Thanks to their lauded service, many

customers are repeat customers or customers who were referred by previous customers.

The shop has received multiple rewards from BASF, 3M, the Greater Pompano Beach Chamber of Commerce, and BNI, in addition to being chosen as Small Business of the Year in 2006.

They are also listed as a superior service provider on angieslist.com. The shop is home to an in-house training facility, also used by the community, where OHSA, 3M, BNI, the National Safety Council and Computer Diagnostics have trained employees and the technicians in surrounding dealerships and repair facilities, as well as the technicians at Auto Tech and Body. Their technicians receive ongoing training in all of the latest technology.

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The shop’s goal is to cater to their customers as individuals.

12 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

5925 Peachtree Industrial Blvd. • Atlanta, GA 30341 Parts Manager: Kevin Pace kevin.pace@atlantamini.com

The 22,000-square-foot facility is staffed by four mechanics, two body technicians, two painters, two estimators and two detailers, in addition to four administrative and customer service reps. Auto Tech and Body repairs an average of 50 cars monthly using fairly standard equipment which includes three USI Down-Draft paint booths, a Glasurit Diamond/BASF paint mixing system, Hunter Wheel alignment machines and balance machines, as well as two frame machines,

a Chief Drive-on 3 post 360 degree and a QS 2000 frame machine. Meroueh said the USI Italia paint booth “has been a great investment because it cures the paint in a shorter period of

time, uses less energy and is 100% dust free.”

The shop uses BASF paints for the mixture of vehicles they receive. They will work on any car, regardless of make, model or age. They have two ASE certified painters who work along Jay Ghanem to resolve any paint matching challenges, assisted by their high-tech computer matching system.

Additionally, the shop increases their revenue through towing, storage, paintless dent repair, mechanical maintenance, window tinting, computer diagnostics and extended warranty sales. To accommodate customers, they also work with Enterprise, Budget and Hertz to offer inhouse rentals.

In regards to environmental concerns, Auto Tech and Body focuses on four key components, according to Meroueh: awareness of hazardous materials via MSDS; use of protective equipment such as gloves, safety glasses, paint suits and respirators when necessary; the use of LED lighting and reclaimed water to reduce pollution and energy use; and a

recycling program for paint thinners, air filters, oil filters, and other items.

The shop participates in several DRPs with insurance companies that include AAA Insurance, Granada, California Casualty, Assurance America and Canada Insurance.

When discussing current problems that the shop has experienced lately, Meroueh said, “Insurance companies have been very aggressive in convincing customers to go to their preferred shops. This makes it challenging for us to keep our customers from going to where the insurance agents send them.”

In regards to current trends in the industry, Meroueh noted that con-

sumers are keeping vehicles for a longer period of time, due to the recession, which increases the demand for repairs and maintenances. Additionally, the green movement is expanding to produce more environmentally-friendly and fuel-efficient vehicles which will lead to a demand for businesses that cater to these specific vehicles.

For the future of the industry, Meroueh said that many shops are competing with dealerships that offer maintenance and body work. “We will see more consolidations, and for smaller repair facilities to survive, they will need to either specialize, diversify or market better so that they can have a share of the market with the larger companies,” she said.

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Romney Claims Credit in Auto Industry Turnaround

Mitt Romney argued against the bailout of the U.S. auto industry in 2008, in an article entitled “Let Detroit Go Bankrupt,” notes Chris Isidore, writing for CNN. Now three years after the Bush, then Obama administration, bailed out General Motors and Chrysler Group, and with U.S. auto industry sales, profits and hiring all rising, Romney believes he deserves credit for that turnaround.

“I'll take a lot of credit for the fact that this industry's come back,” he told an Ohio television station, May 7. “My own view is that the auto companies needed to go through bankruptcy before government help. And frankly, that's finally what the president did. He finally took them through bankruptcy.”

Romney is right that the 2009 bankruptcy reorganizations at GM and Chrysler played a major role in the turnarounds at those automakers. It allowed them to shed billions in debt, along with plants, workers, brands and dealerships they could no longer afford.

And he's correct that the automakers and the United Auto Workers union were initially opposed to the bankruptcy process, uncertain that the companies would survive what they expected could be months if not years in bankruptcy court.

But the billions of dollars from the federal bailout helped the bankruptcy process get done in about two months, much faster than anyone thought was possible, said Van Conway, CEO of Conway MacKenzie, a restructuring firm in Detroit.And Conway said the idea of a managed bankruptcy was not unique at the time. “Romney might very well have had the idea, but it's not an

idea no one else had on their own,” Conway said.

Other supporters of the bailouts, and even some critics of them, say that Romney deserves no credit for the turnaround, given that he opposed the federal bailout that kept the companies alive during the bankruptcy process.

Without that $81 billion in funding, the companies would have been forced to go out of business and liquidate, according to those experts.

“There was no way they could get financing,” said Conway. “They were burning money so fast, with no end in site, that no one but the government was going to give them money.”

Steve Rattner, who served as the car czar for the Obama administration, has repeatedly said that the government was the only source of financing to keep the automakers alive through bankruptcy. Rattner said in a recent New York Times opinion piece that he “spoke diligently to all conceivable providers of funds, and not one had the slightest interest in financing those companies on any terms.”

“If Mr. Romney disagrees, he should come forward with specific names of willing investors in place of empty rhetoric,” he added. “I predict that he won't be able to, because there aren't any.”

While Rattner is a long-time Democratic supporter, his view is echoed by some conservative executives in the auto industry, among them Bob Lutz, who was then vice chairman of GM. “He thinks we didn't try to borrow money from the banks,” Lutz told the Detroit Free Press in February. “The banks were even more broke than we were. Who had the money?”

Major Physical Damage Indicators Up For 6 Quarters

According to the latest available data from the Independent Statistical Service Inc. (ISS), Insurance Services Office, Inc. (ISO), and the National Independent Statistical Service (NISS), the frequency of private passenger collision claims has now been on a gradual rising trend for six consecutive quarters. Having been in a near-constant down trend since the first quarter of 2008, data through the fourth quarter 2011 shows that collision claims frequency has risen to 5.66 claims per 100 earned car years.

That represents an increase of 1.92 percent from the recent low of 5.56 claims per 100 earned car years reached in the second quarter of 2010.

Paid losses for private passenger collision claims have been on the rise as well. The data shows over $16.4 billion in physical damage losses paid for the year ending with the fourth

quarter of 2011. That is the sixth consecutive quarterly rise in paid losses.

The average paid loss once again broke above the $3,000 mark to end the fourth quarter at $3,029 compared to $2,946 a year earlier.

The average paid loss, while rising recently, has held pretty steady through the recent recession years.

The average paid loss reached a recent high of $3,027 in the first quarter of 2008 and declined fairly steadily through the first quarter of 2010, reaching a low of $2,922. It has been gradually rising ever since.

However, even while claims frequency and paid losses have been on the increase in recent quarters, it has not necessarily meant a return of business for the collision repairer. That's because, according to ISO, the number of claims paid is still below the recent highs set in early 2008.

16 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

ASAA to ‘Educate’ Legislators on Aftermarket Parts

The Alliance of State Automotive Aftermarket Associations (ASAAA) recently launched a national Legislator Education and Awareness program meant to increase recognition among state policymakers about the positive economic and consumer benefits generated by the automotive aftermarket parts and service industry.

The ASAAA said it is becoming critical for new and returning lawmakers to be educated about the benefits of alternative aftermarket replacement parts and services as policymakers in U.S. states are addressing aftermarket parts issues on many legislative fronts.

The ASAAA said its Legislator Education and Awareness program is designed to promote the importance, quality, value and availability of aftermarket replacement parts and services. The ASAAA developed a blueprint to help state associations and industry companies send unified industry messages and implement educational processes to inform state policymakers about the significance of the aftermarket parts industry to help ensure consistency and fairness in the government affairs process, and to eliminate misconceptions

about the value that aftermarket replacement parts play in the American economy.

“In state Capitols nationwide, industry advocates are faced with the challenge of educating legislative bodies about the value and importance that aftermarket replacement parts and service contribute to the nation’s economy and the motoring public,” said Barbara Crest, president of ASAAA. “However, when describing aftermarket replacement parts and service, words like ‘imitation,’ ‘inferior’ and ‘not of like kind and quality’ are used by our opposition to confuse policymakers and discredit our industry.”

The ASAAA said its campaign was developed and financed by a team of industry experts, including representatives from the Automotive Aftermarket Industry Association (AAIA), Automotive Warehouse Distributors Association (AWDA), Automotive Aftermarket Suppliers Association (AASA), AutoZone, LKQ Corp., General Parts Inc.— CARQUEST, Genuine Parts Co.— NAPA, Advance Auto Parts, Robert Bosch Corp. and Remy Power Products.

Six Found Guilty in $800,000 Auto Loan Scheme

Six people including two Mount Pleasant, SC men were sentenced in federal court for their roles in an auto loan scheme involving more than $800,000.

A judge sentenced William Brian Toadvine, 34, and Donald Toadvine, 58, to two years in prison to be followed by five years of supervised release after both were found guilty of conspiracy to commit bank fraud.

According to U.S. Attorney William N. Nettles, the Toadvines along with four other people were convicted for their roles in a scheme to fraudulently obtain auto loans by providing false documents to more than 16 different banks and credit unions. Nettles says the defendants obtained more than $800,000 from the banks and at times used the funds from one loan to pay off others in an attempt to keep the scheme running.

Daniel Kosmer Jr. of Greenville, Joyce Pozniko of Hanahan and Elizabeth Donnelly of Beaufort were also sentenced to three years of probation or supervised release after being found guilty of providing false statements on a loan application.

Carroll Shelby—Race Driver, Designer, Industrialist—Dead at 89 Carroll Shelby International, Inc., announced that Carroll Hall Shelby, a man whose vision for performance transformed the automobile industry, died at age 89. Mr. Shelby passed away at Baylor Hospital in Dallas.

The cause of death was not disclosed.

Born on Jan. 11, 1923, Carroll Shelby was one of America’s greatest success stories. Championship-winning racecar driver, “flying sergeant” wartime pilot, philanthropist, entrepreneur, car manufacturer and racing team owner, he embodied the ingenuity, tenacity and grit to overcome any obstacle.

He is perhaps the only person to have worked at a visible level with all three major American automobile manufacturers.

Carroll Shelby founded Carroll Shelby International, a publicly held corporation involved in many indus-

tries. His licensing arm has agreements with industry giants, such as Mattel, Sony, Ford Motor Company and Electronic Arts. His car company, Shelby American, has a thriving parts business as well as a line of muscle cars including the Shelby GT500 Super Snake, Shelby GT350 and Shelby GTS. The Las Vegas-based company also manufactures a limited number of the 1960s Shelby 289 “street,” 289 FIA, 427 S/C and Daytona Coupe Cobras.

Shelby considered his greatest achievement to be the establishment of the Carroll Shelby Foundation™.

Created in 1992 while Shelby was waiting for a heart transplant, the charity is dedicated to providing medical assistance for those in need, including children, educational opportunities for young people through automotive and other training programs

and benefitting the Carroll Shelby Automotive Foundation.

Shelby remained active in the management of each of his companies and the Foundation until his death, even though he endured both heart and kidney transplants in the last two decades of his life.

“We are all deeply saddened, and feel a tremendous sense of loss for Carroll’s family, ourselves and the entire automotive industry,” said Joe Conway, president of Carroll Shelby International, Inc. and board member. “There has been no one like Carroll Shelby and never will be.

However, we promised Carroll we would carry on, and he put the team, the products and the vision in place to do just that.”

Shelby is survived by his three children Patrick, Michael and Sharon, his sister, Anne Shelby Ellison of Fort Worth, and his wife Cleo.

Donations to the Carroll Shelby Foundation are encouraged in lieu of flowers. Information about the Carroll Shelby Foundation is available at www.carrollshelbyfoundation.org.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 17

Why Your Body Shop Can’t Ignore Social or Digital Media “Social Media is Word of Mouth on Steroids” —Frank Terlep

by Melanie Anderson

There’s no escape. Nearly everyone and their grandmother is using social or digital media. Is your shop up to speed with the age we live in?

According to Frank Terlep, CEO of Summit Software and Marketing Solutions, more than 112 million generation X and Y consumers, 60 million baby boomers and 20 million seniors are on the Internet, emailing, texting or using social media. And these numbers don’t even reflect the younger generation, those between 18–34 who comprise an outsized proportion of consumers who watch online videos, visit social networking sites and blogs, own a tablet and use a smart phone.

“In today’s world, every shop needs a website and social media presence to attract consumers to their brand and business,” said Terlep.

“Getting involved with digital and social media is not a matter of ‘if’ - it’s a matter of ‘when’ - because shops will end up doing it anyway and they may as well do it now and be a winner instead of a loser. Waiting to join the

social media world is losing an opportunity to increase your business.”

To connect with, market to, service or retain today’s ‘digital consumer,’ a shop must consider several digital marketing tools, techniques and strategies, such as digital databases, email,

saging, email, Facebook, LinkedIn, Twitter, Google, YouTube and other digital or social media technologies to perform their jobs, communicate with business associates, friends and family or to educate and entertain themselves.

According to Terlep, the three

Frank Terlep uses ‘personal media’ to engage a group of shop owners invited by Sherwin-Williams to San Diego’s Petco Park for a talk and a baseball game on April 26

text messaging, social media, mobile and location-based marketing, smart phones, phone apps, micro sites, search engine optimization, pay per click advertising, digital ads, promotions, ecoupons, videos and more, said Terlep.

A digital consumer is an individual who uses smart phones, text mes-

Sherwin-Williams’ Digital Marketing Seminar

Sherwin-Williams Automotive Finishes A-Plus University (a value-added program

for Sherwin-Williams body shop customers) is partnering with Summit Software

and Marketing Solutions to offer a digital marketing advanced business class

specifically for collision repair facilities. The program is launching in multiple lo-

cations this year throughout the country.

A recent workshop was held April 26 in a skybox media suite at Petco Park,

most critical steps repair and collision shops should take regarding social or digital media are: #1. Know how their website is performing

#2. Continue communication with existing or previous customers #3. Participate in social media

Your Website “The shop’s website is the hub of the shop’s whole digital marketing strategy,” Terlep said. “A shop’s website is their online lobby.” Knowing how well their website is performing should be a priority for every shop.

“Shops need to make sure their consumers can find their website from anywhere, whether it is a local search or from a variety of search engines,” Terlep said. “A website is performing well if your shop ends up on the first page of engine search. Less than two percent of customers will go to the second page of a search.”

Your Customers Staying in touch with previous or existing customers is an important marketing strategy that many shops overlook.

Terlep believes that most shops don’t market to previous or existing customers. “It’s easier to get business from old customers than it is to find new cus-

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the home of the San Diego Padres, and concluded with a catered dinner and premium seat viewing of the night's game.

The four-hour workshop was designed for shop owners and managers to

help them meet the challenges body shops face in today’s rapidly changing digital

and information age.

Parts Dept.:

Business Services, led the meeting, with input from Chris Lynch, Falls Communi-

Mon. - Fri. 7:30am - 6pm Sat. 7:30am - 2pm

Troy Neuerburg, Sherwin Williams Automotive Finishes' Marketing Manager,

cations. Frank Terlep, CEO of Summit Software and Marketing Solutions, pre-

sented the program. Terlep's rapid-fire style covered a huge menu of topics

touching on shop-consumer communications via social media, smartphone

apps, and digital marketing for the busy shop. The digital and social media strate-

gies covered included: What digital marketing means; Why digital marketing is re-

quired for success in today’s world; What a shop’s potential digital marketing

audience is; The benefits shops can expect to receive from digital marketing; The

importance of a digital marketing database; and Digital marketing tools that are

available. For more information, visit www.sherwin-automotive.com.

18 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

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tomers,” Terlep said. “Shops think, ‘Why should we keep in touch with previous customers if, on average, consumers only use a body repair shop only seven to 10 years?’ Car accidents are a bad experience and most customers want to forget about it as soon as possible, and that means they forget about the shop too. After a couple years, people tend to forget where they even had their car repaired.”

Getting customers back in the door is important to the success of a body shop, and the way to do that is to offer additional appearance-related services, such as detailing, glass repair, headlight restoration, mechanical repair services, or any other type of non-collision repairs. “There is a huge opportunity to market to existing or previous customers and many shops aren’t doing this,” Terlep said. Social and digital media are successful ways to stay in touch with your customers to get them back in the door for other services.

Your ‘Friends’ One of the biggest reasons why a body shop should be on social media is because their customers are already there.

Terlep suggests a shop focus on one of

the ‘Big 5’ —Facebook, YouTube, Twitter, LinkedIn or Google Plus. Posting items that are educational and entertaining and offering exclusive deals will get more attention than random facts.

Shops should participate in social media for two important reasons: it helps shops stay in touch with their customers, and it gives them the ability to position themselves to be online experts in their field with an online audience within their community. “A shop should want their customers to know them as an expert so their customers can tell their friends, and being on social media is the best way to do that. Social media is word of mouth on steroids,” Terlep said.

Email Marketing With all that said and despite the frenzy over social media, Terlep said the best digital marketing is still email because “80% of consumers still prefer email over Facebook or Twitter to get their information.” Customers are comfortable getting surveys, e-newsletters, ecoupons and other promotions by email. Terlep said shops are moving away from phone-based customer sur-

veys because electronic surveys garner better and more honest feedback, as well as improved tracking.

Another good reason to switch over to digital marketing is it is much less expensive than traditional marketing. E-newsletters cost only about $50 a month compared to thousands of dollars it costs to print and mail print versions of newsletters. And social media is free!

Phone Apps Another digital marketing tool for shops to consider is a phone app for their business. According to Terlep, more than 50% of the U.S. population who own a cell phone use a smart phone, and that percentage will increase as the older cell phones become obsolete. He recommends an Apple or Android app as those two platforms have the majority of the smart phone market. The benefit of a body shop having an app is that it will allow a consumer who has just been in an accident to be able to push the app on their phone without having to remember the location, phone, name or email address of the body shop. An app allows the customer to take photos, file a report and send information to the

body shop, insurance and police. “A body shop who has their own app owns a piece of real estate of the consumer’s smart phone,” Terlep said.

Goodbye TV? The three most prevalent screens today are, in order: the TV, PC and then the smart phone, tablet or mobile device. In the next five years, that order will reverse as the smart phone will become the No. 1 screen people will look at the most, becoming more popular than the television or computer screen.

So, why aren’t shops up-to-date in the electronic world we live in? It’s time and expertise, Terlep said. Most shops don’t have time during their daily operation to properly market their business digitally. And many just don’t have the expertise. “They don’t know what they don’t know,” Terlep lamented.

“Social media and digital marketing is not a passing fad. It’s here to stay. Body shops will end up using digital marketing at some point, and those who don’t wait will benefit the most,” Terlep said. For more information visit their website at www.emarketingsherpas.com.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 19

Will Driving Become Too Safe for Body Shops and Insurers?

Collision repairers are rightly concerned about collision avoidance technology reducing business in the future but may be suprised to learn that insurance companies are just as worried.

What would happen to the auto insurance industry if automobile safety improves to the point that vehicle collisions become relics of the past?

That’s the question explored by global consulting and research firm, Celent, in a new report that envisions a future of increasing emphasis on safety in the automobile industry and among government entities that leads to a massive drop off in auto insurance premium for U.S. property/casualty insurance companies.

In its own introductory words, “A Scenario: The End of Auto Insurance—What Happens When There Are (Almost) No Accidents,” by Celent Senior Analyst Robert Light, “describes a provocative, but plausible, scenario for the not distant future of the US property/casualty market, and explores that scenario’s implications.

“In that scenario, technology is widely deployed that radically reduces the frequency and severity of motor vehicle accidents. Consequently, the need for automobile insurance is substantially reduced — and insurers see a large reduction in their revenue as automobile insurance premiums drop.”

Private passenger and commercial auto premiums accounted for 39 percent of the total premium for U.S. property/casualty insurers in 2011, according to the report.

In the scenario proposed by Celent—and the authors make it clear that it is only a scenario that could or could not happen—the auto insurance portion of total P/C premium over the next decade would drop from 39 percent to just 13 percent.

Techno Trends The report examines four technological trends that are expected to have a significant impact on both the auto industry and the auto insurance industry during the next 10 years: telematics; collision avoidance; automated traffic

law enforcement; and, to a lesser extent, robot cars.

Three of those technologies— telematics, collision avoidance and automated traffic law enforcement— are available, though not necessarily widely used, today.

The report describes telematics as the “creation and use of data regarding driving behavior that is stored in an onboard device and made available to insurance companies and other entities.”

Collision avoidance technologies include “a broad set of capabilities built into vehicles that warn the driver of dangerous situations and in some cases take active control of the vehicle to avoid a collision.”

Among the law enforcement technologies currently in use to varying degrees are red-light cameras and speeding violation cameras that take photographs of driver infractions and are able to produce and send a violation ticket to the vehicle’s registered owner.

While robot cars are in the prototype stage—Google’s driverless car may be the most well-known example (see sidebar)—they are vehicles “equipped with [their] own sensing devices, processors, data sets (e.g., Google Street View), and control systems.” The technologies allow the robot car to operate autonomously “in actual street and traffic conditions,” the report says.

In the Celent scenario, if all of these technologies are utilized to their fullest extent: The insurance industry would see a decline in auto liability premium from 25 percent of the 2012 total to 20 percent of total 2012 industry premium over the first five years. Auto liability would then drop by another 10 percent of 2012 industry premium over the next following five years.

Auto physical damage would drop from 14 percent of total 2012 industry premium to 10 percent by the end of the first five years and then to 3 percent in the second half of the decade.

Between 2013 and 2017, total P/C industry premium would drop by 9

Give us your opinion on matters affecting the industry.

write us! publisher@autobodynews.com

20 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

percent and by 26 percent from 2018 to 2022.

The four functional units of auto insurers that would see the greatest impact are: marketing, sales and distribution, policy service and claims.

A scenario of reduced auto collisions resulting in a decrease in auto premiums over the next decade, while not assured, is plausible because the impacting technologies already exist.

Whether or not such a scenario plays out depends on political and economic decisions, according to the report.

Technologies such as telematics, collision avoidance and, to some extent, robot cars are market-driven. If auto manufacturers believe consumers are willing to pay for such upgrades then the technologies will likely be improved upon and deployed.

In the political realm, federal and local governments will have to decide whether to mandate and deploy law enforcement “technologies given their very significant impact on how citizens and voters use motor vehicles,” the report concludes.

Google’s Driverless Car

Google’s self-driving car got its li- buy now. cense as the state of Nevada became Electronic Stability Control, the first in the nation to license the which uses computers to help drivers company’s vehicles. More than maintain control during abrupt ma30,000 people are killed each year in neuvers, has been shown to reduce crashes despite huge advances in auto fatal crashes by as much as a third. safety. The overwhelming majority of ESC is now required on all new cars those crashes are caused by human- but was first used, on a wide scale, on driver error. Computer driven cars SUVs. Statistics show top-heavy could reduce traffic deaths by a very SUVs to be less prone to roll over in significant degree, said David real-world crashes than regular cars.

Champion, head of auto testing at Beyond that, there are various Consumer Reports, but only if all cars other “driver assistance” technoloare computer-driven. gies.

“I think if all the cars were selfBlind spot alerts warn drivers of driving, it would be a benefit,” he cars in adjacent lanes and forward said. “I think a mixture would be a bit collision alerts sound an alarm when chaotic.” a driver is closing in too quickly on a That’s because humans are better car ahead. at predicting the behavior of other hu“We’ll start seeing more features mans than computers could ever be, that will migrate from just these alerts he said. and warnings to taking a little more “When I’m approaching an inter- control,” said John Capp, director of section, I look to see if the other active safety technology at General driver is looking at me,” said Cham- Motors. pion. “If he’s looking somewhere else GM’s new Cadillac XTS, for inand inching forward, I’m going to lift stance, will brake automatically if a off the gas.” driver fails to respond to an imminent For the foreseeable future, human collision. Nissan’s Infiniti division has “drivers” will continue to bear the ulti- a several models that provide slight mate responsibility, even in Google’s braking to nudge a vehicle back into self-driving cars. This means you its lane if it begins to drift out. won’t be able to lounge in the back seat Many luxury cars are now also and check email on your way to work. available with “active cruise control” You’ll still have to sit in the driver’s that allows a car driving at highway seat and pay attention. cruising speeds to automatically Self-driving cars, like Google’s, maintain a safe following distance beuse sensors to watch cars, pedestrians hind the car ahead. In some models, and other obstacles. They combine a these systems can work even in stopnumber of technologies that are al- and-go city traffic. ready available on cars today, includSystems like these could be helping GPS tracking, wheel motion ful, said Champion, but also present sensors and radar, with additional the possibility of over-reliance or technology and sophisticated soft- abuse. ware that allow the car to read street “It all comes down to the person signs and signals and actually drive behind the wheel using the system,” itself through traffic. he said.

Google’s cars, modified Toyota Sometimes these systems can Want toinContribute to this Priuses, are still the testing stages causeSouthwest confusion. For Edition? instance, some and aren’t available to the public. But reports of unintended acceleration in some so-called “driver assistance” Toyota cars were triggered by drivers technologies are already helping to failing to understand how an “active lower traffic deaths in cars you can cruise control” system worked. publisher@autobodynews.com

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Make us your one-stop shop today! www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 21

Women’s Industry Network 6th Annual May Conference Hosts 200 Women

The sixth annual Women’s Industry Network Conference kicked off in Atlanta with over 200 women from all segments of the collision repair industry. The first day included a keynote address on “Extreme Change: Adapt, Overcome & WIN as One” by Robyn Benincasa, World Champion Adventure Racer, San Diego City Firefighter and Founder of World Class Teams and Project Athena Foundation. Dr. Linda Gravett of Gravett and Associates inspired conference attendees with her strategies for managing stress and maintaining inner peace utilizing exercises borrowed from Tai Chi, Yoga and Tae Kwon Do. The afternoon session included an update on vehicle design and collision avoidance technology and its impact on the industry presented by Kim Hazelbaker, Senior Vice President, Highway Loss Data Institute.

Included in the day was recognition of the nine conference scholarship winners including six students: Nicolette Cole, Le’Trina Ervin, Tiffany Owen, Leslie Mendoza, Jennifer Watkins, Kinsey Simmons; one instructor, Greg Brink; and two

collision repair facility employees: Deborah O’Kean and Jessica Gauthier.

Margaret Knell was awarded this year’s Cornerstone Award, given each year to a board member that exemplifies the values and ideals of WIN. Also recognized were WIN’s 2012 Corporate Sponsors: AkzoNobel; DuPont; Allstate; ASE; BASF; Enterprise Rent-a-Car; State Farm Insurance; Hertz; 3M; LKQ; Sterling Autobody Centers; Geico; Fix Auto; Carstar; PPG; ABRA Auto Body & Glass; CAPA; Finishmaster; Symphony Advisors; Sherwin Williams; Mitchell; CCC Information Services; Insurance Auto Auctions; Audatex and Car-Part.com.

“We want to thank every one of our sponsors for their support of WIN. Their commitments are essential to achieving our mission of engaging women in the collision repair industry,” said Victoria Jankowski, WIN’s chair.

Day two at the WIN conference started off with the Annual Scholarship Walk Presented by Fix Auto where more than 100 women laced up their

sneakers and trekked through Atlanta’s Buckhead district. Over $1700 was raised through individual donations.

The funds will be directed toward WIN’s various scholarship programs.

Following the walk, WIN’s second keynote speaker, Cathy Bonner, CEO, Service King Collision Repair Centers, shared the top performing skills that she has learned through forty years of professional and personal success. Cathy had a unique message that has been built on years of teaching leadership through the programs she developed called Leadership America and Power Pipeline and her own management experiences in both the public and the private sectors of America.

Susanna Gotsch, Director Industry Analyst, CCC Information Services, gave an industry update titled “The Latest Trends, Market Dynamics & Business Drivers Impacting Our Industry.” Ms. Gotsch explored the ways economic and demographic changes have impacted the automotive claims and repair industries.

The afternoon continued with

three breakout sessions: “Why Women Should Do Business with You” presented by Lori Johnson, Owner of Ladies, Start Your Engines!®; “Quality Control: Are you Looking Closely Enough and at the Right Time?” presented by Shawn Collins, a Senior Technical Service Engineer at 3M; and “Customer Service…Back to Basics” presented by Dianne Young, Founder and Master Instructor for Propel Training and Development.

After two exciting, fast-paced days spent networking and learning from dynamic speakers, the conference wrapped up with the closing session “Take Control…Be the Change.”

Michelle DeMaris, WIN member and conference attendee, said, “I’ve learned we have to take charge of changing the perception of females in the industry and own that concept.”

Linda Sommerhauser, a long time WIN member, added her thoughts, “I feel energized and invigorated to go back and work more with our schools and advisory boards and to advocate for shops to sponsor internships within their facilities.”

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Leading Edge Receives BASF Automotive Refinish Distributor of the Year Award BASF Automotive Refinish presented its Distributor of the Year Award to Leading Edge Auto Refinishers, Inc.,

thinking and ability to differentiate itself in Arizona. With a strong record of continued growth and outstanding cus-

Chuck Soeder, far left, Vice President, Automotive Refinish and Industrial Coatings Solutions for BASF; and Denise Kingstrom, far right, Strategic Accounts Manager, Automotive Refinish for BASF present the business’s Distributor of the Year Award to the Leading Edge team. From left are: Soeder; Travis Leybeck, Paul Derdich, Mike Priest, John Rang, Matt Johnson, David Brannon, Troy Schooley, Steve Balsley, and Vaughn Lindberg of Leading Edge; and Kingstrom

Phoenix, Arizona, at its annual ColorSource™ Conference on April 19 in La Jolla, California.

“Leading Edge received the award because of its innovation, forward

tomer service and support, as well as commitment to waterborne conversions, Leading Edge is a true partner with BASF,” said Denise Kingstrom, BASF’s Strategic Accounts Manager.

Leading Edge has been family owned and operated since 1993.

“We are very proud to receive this award on behalf of the entire team at Leading Edge. It would be hard to imagine operating Leading Edge without all the talented people in the organization,” said Matt Johnson, co-owner of Leading Edge. “We would also like to thank BASF for supporting our business initiatives. Without BASF’s singleline ColorSource PREMIER program, much of what we have accomplished in Arizona would have not been possible.

BASF is vital to our success. It’s a unique partnership because we all succeed together.”

ColorSource PREMIER is a program designed by BASF exclusively for single line distributors of BASF refinish paints and coatings. ColorSource PREMIER distributors are key strategic partners with BASF. To learn more about becoming a ColorSource PREMIER distributor, please contact Denise Kingstrom at denise.kingstrom@basf.com, or 248632-2420, or visit www.basfrefinish.com.

Female Technician Leads New Reality Series for TV

Pam Oakes and the employees of Pam’s Motor City in Fort Myers, Fla., are starring in a new reality series, “Car E.R.” Sponsored by AC Delco, “Car E.R.” follows Oakes, Peter (her long time fiancé) and the rest of the gang at Pam’s Motor City as they deal with tricky automotive repairs, esoteric customers and serious attitudes within the shop. Of course, not everything’s a problem, and there’s a lot of fun and good times, too. Pam's Motor City was named a Motor Age Top Shop in 2008.

Unique to this series is that Oakes owns and operates the repair shop, day in and day out. Not many women dare to venture into this highly male-oriented field of work, but she follows in her father’s footsteps, and gives the boys a run for their money. The series is slated for first-run distribution via the Internet, with future television broadcasts on the horizon. To see the first few shows, click www.car-ershowcom and connect with the show on Twitter @CarERShow and Facebook.

Pam is also the author of Car Care for the Clueless: Successful Used Car Buying 101.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 23

WILL YOUR SHOP QUALIFY?

24 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

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Jerry Damson Acura

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 25

Service, Diagnostic and Mechanical NEWS

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Autobody News Chrysler to Recall 127K Dodge Chargers and 300’s for Fuses

Chrysler Group will voluntarily recall 127,346 2011 and 2012 Dodge Charger and Chrysler 300 sedans in the United States and Canada to fix a fuse problem that could disrupt the vehicles’ antilock brakes and electronic stability control systems. A plastic insert surrounding a fuse in the vehicles may become distorted because of thermal expansion and contraction, Chrysler said in a statement today. The problem could affect vehicle control and increase the risk of a crash. Drivers are alerted to the problem by the vehicle ABS/ESC warning lamp, the statement said, noting that despite the failure, drivers will retain basic brake function. The recall affects all 2011 and 2012 units built before Dec. 20, 2011. The recall includes 119,072 vehicles in the United States and 8,274 in Canada.

According to documents submitted to the NHTSA, the affected system is supplied by Global Automotive Systems of suburban Detroit, a unit of Dura Automotive Systems. The defective part is in the vehicle’s power distribution center. Chrysler said it was unaware of any accidents or injuries related to the recalled vehicles.

Ford Blocks JAC from Selling Blatant F-150 Knock Off

The Chinese-made JAC 4R3 is a facsimile of Ford’s F-150, right down to the blue oval on the hood, and Ford has blocked the Chinese company from selling it. “Not going to happen,” said Bill Coughlin, president and CEO of Ford Global Technologies in an interview. In the past, other car companies have found it difficult to protect their designs from Chinese copiers, but Ford is not among them.

“We can protect ourselves in China, it’s not easy, but you can do it. Is it expensive? Not really.”

The Chinese government requires foreign OEMs to partner with their own domestics but Ford and JAC are not partners. It remains to be seen whether JAC will respect the decision, or build its knock off F-150 anyway.

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Nissan Recalling Certain 2012 Titan Pickups for Mislabeling

Nissan Motor Co. is recalling certain Titan pickup trucks from the 2012 model year because they have improper seating-capacity labels that could lead owners to overload the vehicles and increase the risk of a crash.

The recall reflects tight safety regulations in the auto industry and the fact that manufacturers cannot depend on the common sense of drivers to insure vehicles are operated in a safe manner. Customers may contact Nissan at 615-725-1000.

Chrysler Recalls 68,000 Jeep Wranglers for Fire Concerns

Chrysler is recalling about 68,000 Jeep Wranglers manufactured in 2010 due to the chance of a vehicle fire resulting from debris collecting in the transmission. The automaker said in a filing with the National Highway Traffic Association that the pullback of 67,872 Jeeps with an automatic transmission reflects concerns that the transmission skid plate, which is close to the catalytic converter, can collect debris and ignite without warning. The company said it will notify owners, and dealers will replace the skid plate free of charge.

The move comes after the NHTSA began investigation complaints about fires in 2010 Wranglers earlier this year.

Distracted Driving No. 1 Killer, Especially of Texting Teens

The National Highway Traffic Safety Administration reports that distracted driving is the number-one killer of American teens. Five seconds is the average time a driver’s eyes are off the road when texting. When traveling at 55 mph, that’s enough time to cover the length of a football field.

According to a national survey released by the Ad Council, 60 percent of young adult drivers (16–24) said they have texted while driving. In 2010, more than 3,000 people were killed and an additional 416,000 were injured due to distracted driving, which includes texting while driving.

26 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

Carfax Study Shows Consumer Threatened by Ignoring Recalls

A new study from Carfax shows that choosing to ignore auto recalls threatens the safety of consumers everywhere. In 2011, over 2.7 million used cars were for sale online with safety recalls that were never fixed. Car owners and sellers can help improve public safety by actively checking for open recalls and having them fixed by franchise dealers. There’s no excuse—recall repairs are free and finding cars with open recalls is easy.

“We’re making a lot of progress, but there are still too many open recalls out there,” said Larry Gamache, communications director at Carfax.

“Many of these cars change hands without the buyer ever knowing a recall exists, increasing the safety risks both to passengers in the car and others on the road. We all need to do our part to make sure these cars are identified and fixed—buyers, sellers and owners alike. A simple online check for open recalls is all it takes to help make our roads safer.”

California, Florida and Texas lead the nation with the most used cars for sale with open recalls, each having well over 100,000 last year.

More about recall campaigns is available at www.safercar.gov.

BMW Replaces Toyota as Most Valuable Automotive Brand

BMW has overtaken Toyota as the world’s most valuable automotive brand, an annual ranking of the world’s top brands shows. MercedesBenz, Volkswagen and Audi improved their brand value, according to the BrandZ Top 100 Most Valuable Global Brands study released by market research company Millward Brown. The world’s most valuable car brands in $ billion 1. BMW $24.6 2. Toyota $21.8 3. Mercedes $16.1 4. Honda $12.7 5. Nissan $9.9 6. VW $8.5 7. Ford $7.0 8. Audi $4.7 9. Hyundai $3.6 10. Lexus $3.4

June 2012 BMW Recalling Diesel Vehicles or Fuses

BMW is recalling 24,340 vehicles equipped with diesel engines from the 2009-11 model years that may fail to meet U.S. and California emission control requirements.

About 2,740 2011 and 2012 model year X5 xDrive 50i and X6 xDrive 50i vehicles, and 21,600 3-series diesel models, will be recalled, the automaker said. The recalls were scheduled for May 9, with a customer letter to follow, BMW North America spokesman Dirk Arnold said.

The vehicles were manufactured at factories in Spartanburg, S.C., and Germany.

BMW said certain emissions components, including the SCR catalyst, the DEF mixer and the EGR valve, may improperly overstate vehicle mileage, causing emissions standards to be exceeded and the illumination of the “Service Engine Soon” light.

BMW said the repair will require the inspection and replacement of one or more of the emissions components and the reprogramming of the vehicle’s engine control unit.

Ford Recalls 10.500 Vehicles for Transmission Sensor Issues

Ford is recalling 10,500 vehicles, including the 2012-’13 Ford Mustang, 2012 Ford Expedition, 2011-’12 Ford F-150 and 2012 Lincoln Navigator, due to transmission and light calibration problems. “These vehicles may have a transmission range sensor (TRS) that was calibrated out of specification for reverse gear,” said NHTSA. “If this condition exists, the transmission may not go into reverse or when the driver pushes the shift lever in the reverse “R” position and the vehicle’s transmission does go in reverse, the “R” may not illuminate on the dashboard of the F-150, Expedition or Navigator models and/or the backup lamp on the rear of the F-150, Expedition, Navigator or Mustang vehicles may not illuminate. The recall is expected to begin on June 25. Owners can contact Ford at 1-866-4367332.

Gonzo’s Toolbox

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

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

Comparing Automotive Parts: Is it Apples to Apples? with Gonzo Weaver

“Yes, I need a price on an alterAlternators, starters, voltage regulators, window motor assemblies, light nator for my car,” the caller asks. I bulbs, serpentine belts… the list goes give them a price for the brands I sell, on and on of the various cheaply and before I’m even finished they’ll with Richard Arnold made replacement parts available. tell me how much the last guy would Being able to distinguish what parts sell the part for. That’s fine, I know are good or bad is part of being a pro- everyone is looking for a bargain, and fessional in this crazy world of auto- shopping around for prices is all part of it. However, let’s compare apples motive repair.

When a customer calls wanting to apples — not just prices to prices. prices on a certain than A perfect example is the comwithjob, Edmore Attanasio likely this isn’t the first phone call mon external regulator for a Ford they’ve made today. The way I can product. The prices will range from a tell this is how they answer certain few bucks to as much as $30. The difquestions I ask to narrow down the ference is quality, of course. You can options on that particular part or job. tell the difference for yourself by just “What’s the motor size? Two- or four- picking one up. The cheap regulator EricaIfSchroeder door? Automaticwith or manual?” these feels like a feather compared to the questions aren’t a hit and miss an- more expensive one. The question is swer, chances are they’ve been … do they both work? Yes they do, through this before, and have a pretty but there’s no doubt the cheaper one good idea what the cost is, or at least will not take any abuse, or a fluctuatwhat they’ve found out from the auto ing signal, or load variations as well as the better made part. No doubt the parts cheapo depot.

Jobber Journal

cheaper one will need to be replaced sooner than you think.

From the professional side, it takes just as long to diagnose a problem and make the repair with a wellmanufactured part as it does to put on one of those bottom-of-the-barrel parts. The big difference is you only have to do the job once, rather than repeatedly. That eats up diagnostic time, shop time, and doesn’t make for a very happy customer.

Over the years, the number of times I’ve had someone bring in a car and tell me they have put five or six alternators on the car, and it still doesn’t work, is beyond comprehension.

The unsuspecting customer will almost certainly have the same reaction on the phone or at the service counter.

“There has to be something electrically wrong with the car,” they’ll say.

Even though I haven’t checked the car out yet, I’ll still ask them, “Where are you buying your parts?”

Nine chances out of ten they are buying the cheap knock-off brands because of the cost, and under certain applications, these knock-off brands fail constantly.

By the time I get the car in the shop and run the needed tests, I’m already stretching their pocket book just to give them the answer I already assumed it would be.

“It’s a cheap part that’s causing the problem,” I’ll tell them, and when I give them the price of the “quality” part I know I’m in for an argument.

“It shouldn’t cost that much. I’ll just go get another one myself,” the now irate customer will tell me. It could be they really wanted me to find something else wrong with it, because they know it can’t be the part.

Then again, it could be because they don’t want to change it again.

Whichever the case may be, I’m the lucky guy taking the brunt of the customer’s meltdown at the front counter.

Why is it that the second largest purchase most people make in their lifetime is left to using cheap discount parts as a way to keep their family truckster on the road? You know, if

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the original manufacturer used some of these discount parts, most of those cars wouldn’t make it from the manufacturer to the show room floor without breaking down.

One morning when I arrived at the shop, a customer was waiting for me with a rear main seal for me to see. I had just replaced the seal in his car a few weeks earlier. There wasn’t a problem with the car, his problem was that he believed that I over charged him for the seal. While he was at one of those discount parts stores, he purchased a rear seal himself, and after having some time to think about it, he figured I should know just how ticked off he was.

Needless to say, now he’s thinking every bit of the labor cost must have been exaggerated as well.

There was only one way to solve this problem. I called my supplier and had them send down another seal just like the original one I had purchased.

With the customer standing in front of me, we took both of the seals out of their boxes and laid them on the counter.

“You see, they are actually the same,” the aggravated customer tells me, “They’re the same color, same design and obviously are identical.

You overcharged me!”

I’ll admit they looked the same, and I was getting a little worried that I wouldn’t find a difference between the two of them. I wanted to prove my point that not all parts are created equal, but how? As this anger management class dropout got even more steamed, he started to make his point known how he felt about mechanics in general, parts stores, and the world at large. I picked up the two seals while he was standing on his soap box proudly putting down anyone who had anything to do with the car business. When I gently snapped the actual seal area that touches the crank shaft back and forth, I had the answer and the difference was obvious.

“Sir, if you’ll calm down a minute, I’ll show you the difference.

The one you brought from the discount part store has fewer coils on the See Apples to Apples, Page 31

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 27

DuPont™ Cromax® Pro is the Ultimate Upgrade for Your Refinish Painting Process

The transition to waterborne paint is well underway countrywide. Today, volatile organic compounds (VOC) in paints are seen as harmful to the environment and because of that many states in the U.S. have enacted regulations that are making auto body shops switch to waterborne basecoat to reduce VOC emissions while ensuring they meet all standards.

Europe and Canada already use waterborne and many OEM’s have also converted to using water-based paints. Most paint companies are developing new low-VOC primers and clearcoats along with color coats to meet the expected regulations that the entire country will need to comply with in the coming years.

Auto body shop owners will tell you that the change to water is happening and the majority agree that it is not as difficult or as costly as many first suspected. The decision on choosing which waterborne paint to use can be critical to shop productivity. DuPont™ Cromax® Pro waterborne basecoat is helping shops meet all of the new requirements while also meeting production goals. Cromax® Pro is formulated with 88% less solvent but 25% more pigment. The results have been astonishing. Painters are calling it the easiest waterborne to use and most productive waterborne basecoat available. Cromax® Pro also complies with the toughest emissions regulations and helps to reduce cycle times and improve shop efficiency.

“DuPont did more than formulate a basecoat to help our customers meet all of the environmental regulations,” said Harry Hall, DuPont Performance Coatings North America Sales Director. “With Cromax® Pro, you can paint cars faster than ever before.

And that speed of production improves your bottom line.”

Cromax® Pro delivers single-visit application, 1.5 coat coverage for the majority of colors and application is easier, faster and more dependable.

No flash time between coats helps to significantly reduce cycle times. Cromax® Pro’s wet-on-wet process means that basecoat can be applied non-stop until full coverage is achieved. Fewer coats reduces the opportunity for dirt and contamination and fewer bake or drying cycles reduce energy costs.

You can paint more cars in less time because painters get the job done with a single trip into the booth.

“We made the switch in November 2007 and since then, Cromax® Pro is all I use,” said Rande Lance, Lead Paint Technician & Paint Shop Manager at Prestigious Auto Body & Painting in Goleta, CA. “It’s very user-friendly and holds up extremely well when you push it to the limit.

Plus, it’s a great finish. It looks better than solvent, and it’s much better in regard to speed and efficiency.”

Cromax® Pro also has excellent color match because DuPont has industry-leading digital color tools that work in all types of shops and provide ease-of-use and confidence as well as fan decks that are sprayed with actual Cromax® Pro colors.

Step 4: Flash Basecoat – Allow basecoat to flash until matte.

Step 5: Basecoat Application – Second coat: apply one medium coat to repair area.

Step 6: Flash Basecoat – Allow basecoat to flash until matte.

Step 7: Effect Coat Application – Apply a final half-coat to complete hiding and to set the flake.

Step 8: Flash Basecoat – Allow basecoat to flash until matte.

Step 9: Final Step – Clearcoat is applied.

Cromax® Pro eliminates up to four steps in the repair process so you can move more cars through your shop every day.

The changeover from solvent-borne to Cromax® Pro bring shops a number of important advantages.

Body shops that make a living on being able to paint fast, match colors perfectly and are economical in the process are winning with this product.

A lot of collision shops have put off the transition, in part beAttendees learn the benefits of DuPont Cromax® Pro at a DuPont cause of cost concerns Refinish Systems North American Training Center with equipment and DuPont™ Cromax® Pro water training. But according to Harry Hall, borne basecoat is a 5-step process: that isn’t the case. “When switching Step 1: Surface Preparation – Repair to waterborne, you don’t need to buy area is cleaned, degreased, primed and all kinds of new equipment and new sanded to prepare for basecoat. spray booths to make the conversion,” Step 2: Blender Application – Apply said Hall. “Shops will, however, need one or two closed coats on the fade- a new stainless steel spray. Because of out area. the water, you need a gun that won’t Step 3: Wet-on-Wet Basecoat Appli- rust.” cation – Spray one full coat of CroIn addition to a new paint gun, max® Pro to 75% hiding. Follow waterborne paint does have a little difimmediately with a half-coat to comferent technique.

DuPont trains plete hiding and to set the flake. painters at one of their 11 DuPont ReStep 4: Flash Basecoat – Allow finish Systems North American Trainbasecoat to flash until matte. ing Centers and will also spend a Step 5: Final Step – Clearcoat is apweek at the shop once they are fully plied. setup to make sure painters are comCompare to competitors’ waterfortable.

Your employees are your most borne basecoat 9-step process: Step 1: Surface Preparation – Repair valuable asset. Providing them with opportunities to increase their knowlarea is cleaned, degreased, primed and edge and improve their skills makes sanded to prepare for basecoat. good business sense. It’s a smart way Step 2: Blender Application – Apply to increase productivity, profitability one or two closed coats on the fadeand customer satisfaction. out area.

DuPont offers outcome-based, Step 3: Basecoat Application – First continuing education that is designed coat: apply one medium coat to repair to enable even the most experienced area.

28 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

painters to raise the bar for quality, productivity and cost efficiency.

The Refinish Systems Training Centers are located throughout the United States and Canada and educate over 4,000 collision repair technicians annually. In Canada, they are located in Pointe-Claire, QC (Montreal), Ajax, ON (Toronto) and Coquitlam, BC (Vancouver).

In the United States, the Centers are located in Lionville, PA (Philadelphia), Marietta, GA (Atlanta), Jacksonville, FL (Florida State College of Jacksonville), Plymouth, MI (Detroit), Itasca, IL (Chicago), St. Louis, MO, Pomona, CA (Los Angeles) and Anaheim, CA. The centers are fully equipped and staffed by capable instructors who have a solid background in collision refinishing.

“My body shop switched to DuPont Cromax® Pro and I couldn’t be more pleased,” said Rob Daku, Owner and Production Manager at Daku’s Auto Body Shop in North Catasauqua, PA. “DuPont’s waterborne paint is easy to use, looks great when applied, and is so much faster.

DuPont made sure that we were comfortable with waterborne and their training was great.”

“Not all waterborne basecoats are the same. Give us the chance to show you our product and I am sure you will want to upgrade to Cromax® Pro,” continued Hall.

Environmental requirements and regulations are coming, so make the decision to go with DuPont waterborne and join the thousands of body shops around the country that are upgrading to the next level of productivity.

For more information about DuPont Cromax® Pro, go to upgrade2cromaxpro.dupontrefinish.com or call 1-800-GET-DUPONT. To register for a DuPont training course, call 1-800-338-7668, prompt 7, fax/email Student Enrollment Form, or login to www.pc.dupont.com, click on DuPont Refinish, click on Training then log into eCareerTrack.

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www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 29

Auto Painting USA Collision Specializes in Cosmetic Repair

Auto Painting USA Collision (APUSA) is a production auto painting and collision shop specializing in cosmetic body repair and auto repainting. APUSA offers four varieties of paint finishes starting with The American, which is a low-cost synthetic enamel factory basecoat/clearcoat paint job. The American paint service is guaranteed for two years against cracking, peeling and flaking. The most popular paint job is The Floridian, which is a DuPont Nason 2K Polyurethane paint job. The Floridian is guaranteed for three years against cracking, peeling, flaking, and fading.

The Simulator includes a simulated basecoat/clearcoat, three full coats of integrated clear, free pinstripes, and a five-year guarantee against fading. The Ultimate includes a factory-like basecoat/clearcoat, ultra wet look, free pinstripes, and a lifetime guarantee against fading or paint failure.

Along with full paint jobs, APUSA also performs spot work for those cars that only need small areas repaired and some minor body work, up to $5,000-$6,000 per job. The ticket

average is approximately $650-$700 per car, with an average of seven to 10 cars per day, 25 to 40 cars per week.

The cost to paint a car is $55 to $75 for paint and materials, with a profit margin between 20% to 30% after all ex-

Tom Kobus, President and Daughter Heather

penses. Sales are approximately $750,000 per shop per year. APUSA is committed to customer satisfaction and is proud to say there are zero complaints with the Consumer Affairs Dept. of Florida. It is their policy to bend over backwards for customers.

As a car enters the production line, it first goes to the body person for

any repair work that is necessary. Typically, that includes rust damage and minor dents or body work. Next, the car moves into the area where it is sanded and prepped for painting. From the prep area, it proceeds to the masker for taping and then into the paint booth where a gallon of paint, or the equivalent of three coats, is sprayed on the car. Before the car is finally ready for delivery, a detailer cleans all paint overspray from the windows, tires, and bumpers, then cleans all the windows, Armor-alls the tires and dashboards, and blows all the dust and dirt out of the interior.

Presently the company has three locations between Ft. Lauderdale and Miami. These locations are supervised by Vice President, Claudio Casasnovas. Claudio has been a valued employee with APUSA for over 20 years. A new location opening in Phoenix, AZ, with two or three more locations in the works. These new locations are part of a Licensing Agree-

ment Program, which allows new or already established auto paint and body shops to license the name and purchase materials at a huge discount.

By becoming a licensed owner of an APUSA shop, shops benefit from a name that is recognized and associated with quality and value. They also become part of a team that is well known and respected in South Florida for over 35 years. Training is offered to all licensees to run a smooth and profitable business. In addition, advertising through direct mail, TV, radio and Internet is provided. For more information on joining the team and Licensing Agreement Program, go to www.autopaintingusa.com and click on business opportunities.

Auto Painting USA Collision (APUSA) originally started in Delray Beach, FL and has its roots in a company called Electro Bake Auto Painting. Tom Kobus, the owner and President of APUSA, began working for Electro Bake Auto Painting in 1975. Tom started as a manager, then was a supervisor and became Executive Vice President before buying two

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shops in 1982 in Delray and Lake Worth. In 1984, Tom bought Congress Auto Paint and Supply Inc. (the holding company) and the remaining two shops, Pompano and Stuart.

Over the next four years, Tom opened the remaining five shops: Davie, Hollywood, West Palm Beach, North Palm Beach and Ft. Lauderdale. In 1987, Tom changed the name of the company to Auto Painting USA and in 1988 the holding company was changed to Auto Painting USA Enterprises Inc.

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Continued from Page 4

Continued from Page 27

Montanez reminds repairers that it generally takes three to four years to develop a vehicle, and manufacturers have spent many millions of dollars on designing and testing, using crash tests, CAAD drawings, algorithms and so forth, and their instructions need to be taken seriously.

Though some aftermarket parts are not very different from OEM parts, a problem arises if the OEM changes the substrate of their material which can change corrosion rates and multiple other variables. For example, using an aftermarket radiator that does not meet OEM standards can cause overheating which will not be covered under the OEM’s warranty.

These standards can be referenced at i-car.com or nastf.org which both provide links to OEM websites. Alldata.com and autoepi.org also offer information on some OEM procedures.

See www.autobodynews.com for a list of OEM guidelines to give you a minimal reminder on specific OEM cautions, processes and procedures.

retaining spring. This spring is what keeps the rubber seal up against the crankshaft to prevent any leaks. Look at the one I just purchased, and you’ll see it has twice as many coils on the spring,” I calmly explained to him.

(OK, I “tried” to say it calmly).

After a bit of scrutiny on his part, he did see the difference between the two so-called “exact” parts. He apologized for his belligerent ranting and said he would make good on his promise not to buy any more parts based on the dollar amount. I hope so — that sure would make my day go a lot smoother.

These days, with even more parts coming in from different countries, and at different quality levels, the tech has to be on his toes to make sure what they are installing on a customer’s car is actually a decent component. Even today, I’ll do my best to sway the customer into buying quality parts rather than going the cheap route. If they insist on using a cheaper part, I’ll be the first to tell them what the results will be.

Larry Montanez

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Apples to Apples

Comparing apples to apples is still a good method of explaining things to someone who might have a difference of opinion. One bad apple doesn’t spoil the whole bunch; even good parts fail sometimes. But I’d put my money on a quality part any day. Service is the name of the game in the automotive repair business — knowing which “apple” is the right one for a customer’s car is just another part of the service good shops provide. There are plenty of apples out there in the orchard, and sorting out the bad ones aren’t about who has the best TV commercial or newspaper ad. Ask a mechanic, he’ll www.autobodynews.com know the difference between good parts andCHECK bad ones.IT AsOUT! the old saying goes; “Ya get what ya paid for.”

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www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 31

Legendary “Crazy” Painter Mitch Kelly Cites his Top 5 Projects

by Ed Attanasio

If there’s a list somewhere containing the names of the automotive industry’s top artisans/painters, Mitch Kelly is right up there at the top. The

owner of Kelly & Son in Bellflower, California and the creator of Crazy Paint, Mitch and his father Tom are proud to say that they’re not average painters and they run a shop that is not average either.

Tom Kelly’s grandfather started pinstriping vehicles back in the 1940s and Tom is well-known for working with Von Dutch as well as Ed “Big Daddy” Roth and still works alongside his son on a wide range of projects.

colors, stripes everywhere, including gold leaf—-it’s just really cool stuff.”

It all began 39 years ago when a teenager started to learn the family business to make some walking around money. “When I was 13, my dad told me to tape off some wheels on some vans,” Kelly explained. “He was doing lots of vans back then. In the 1960’s everybody had a van and they wanted graphics on them. He was fast. He’d lay them out, paper them and Scotch Bright them and I learned how to do it all.

The first thing I did was paint wheels. They used to have those old western-style wheels with ribs on them and you’d have to paint between the ribs and color match them to the vehicle. I would do a couple sets of wheels every day and Dad would give me $10-$15 per wheel. So, as a 13year-old, I was making good money, sometimes $150 per day.”

little pinky. I realized early on that I a magazine! It was my first really sedidn’t want to do pinstripes, murals or rious graphic effort and I was so hand lettering, so I figured out that I proud.” needed to get into the painting side. I Mitch Kelly’s number two projlearned about as much as I could ect came at age 19. “After a while, I about two-color toning, fading and started getting better and better at graphics to where I could do them at a painting cars. One day, a couple high level. My father and I are still a brought in a 1969 Corvette that they team. He’s 72 now and we still work wanted candy red. I used a red and together.” gold pearl base with the red candy on ABN sat down with Mitch Kelly top. It came out with a very different recently to chronicle his top five projects over the years and the first one he cited was the very first car he painted completely from start to finish while a high school student. “My friend had a 1978 Z-28, and asked ‘would I put some stripes on his car’? I said yeah, but not for free. For $200, I put three-colored stripes around his car for a hot Kelly includes this truck he painted for Thor Wear as one of his top five projects ever rod look. That was my first success, because it made the cover of effect by just messing around with the Hot Rod magazine. I was still in high colors. school and I got my first cover! I They wanted a silhouette of thought to myself, “I must have at them together painted on the hood, least some talent to make the cover of so we ghosted it in. It looked awe-

Hyundai of Orange Park The right part makes the difference.

One of Kelly’s current projects is this 1957 Chevy Bel Air. The crew at Kelly & Son is (from left) John Weening, Mitch Kelly, Brandon Hedden, Thomas Kelly (Mitch’s son) and Tom Kelly (Mitch’s father)

Mitch Kelly, 52, is at a stage in his professional career where he is ready to start giving back to the industry in which he made his name.

“I have a ton of knowledge and at this point in my life, I want to share it,” says Kelly. “Back in the day, my cars were on at least three magazine covers every year, whether it was a truck, motorcycle or hot rod magazine. More recently, a motorcycle that I painted will be appearing on the cover of Ground Pounder magazine.

It’s a cinnamon-colored Harley painted with PPG paint and I really like working on bikes lately. We did one Harley that has more than $13,000 worth of paint, with multiple

Tom Kelly didn’t want his son’s future in the paint business. “At one point, my father told me, ‘This is fine and all, but I want you to get a regular job.’ I worked six hours a day in a cabinet shop, but I also stayed on at my dad’s shop. Between the cabinet shop, my dad’s shop, and school, I was putting in 13-hour days. Eventually I went to work with my father full-time in 1978.

“My father is probably the best pinstriper in the world, in my opinion, and many will agree. His talent and his ability to stripe stuff is phenomenal,” Mitch says with evident pride.

“He’s a super artist and he’s very creative. He’s got all my ability in his

32 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

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some and the customers loved it.

They gave me a $300 tip, which was unheard of way back then! That rocked my world and I realized how important good customer service can be. Meeting deadlines and giving them exactly what they want is crucial, and I learned a lot about it with that Corvette.”

Number three on the Mitch Kelly countdown happened roughly 20 years ago, he said. “One day in 1992, I got a phone call from the people at the Association of Volleyball

their sponsor. They asked me, can you airbrush a mural of a 30-40 foot volleyball player diving for volleyball on the side of a semi-truck? And I told them, yes—we can do that.

After I hung up the phone, I turned to my dad and said, ‘Uh, we can do this, right?’ and he said we’ll give it our best shot! We got the job and did an image of Sinjin Smith, who was one of the world’s top volleyball players at that time and they were really happy with it.”

That semi led to a lot of new business on a corporate level, Mitch explained.

“After that initial meeting with the people from Miller Lite, things really started happening. It’s totally different from working with customers off the street. For one, my business clients never even come to look at Mitch Kelly is well-known for painting semis, including the trucks after they’re finthis beauty he designed and painted for one of his ished. They just send the sponsors, PPG check after seeing it on TV Professionals (AVP). At that time, or in publications. We started doing a they had a countrywide tour featurlot of these semi trailers for the AVP ing some of the country’s best vol- and they let us do the things we do leyball players and Miller Lite was best—our graphics, fading and

blending. We worked closely with their designers to make them pop and it’s been a great relationship.”

The fourth notable accomplishment for Kelly is another truck proj-

to do more of those!’ I’ve done at least 15 trucks for them over the years and at least a total of 50 jobs overall, so it has turned out to be an excellent account.”

This now takes us to the fifth fabulous project performed by Mitch and his crew—another semi for a major brand name. “Fifteen years ago, we got a call from the people from Mazda’s racing team and did a semi for them featuring a Mazda race car on the side and with the logos.

Mitch Kelly is well-known for his amazing work on When the people from motorcycles. This green beauty is his own personal Mazda saw it, they were ride and proud of it thrilled. The next call was ect that came from some of his another car and trailer. They needed motorcycle work, he said. “I’ve alit in just three weeks time and it had ways loved motorcycles of all kinds to be in Texas for a TV commercial. and I was racing for a while. So, we They said we don’t care about the were painting a bike one day for a price. It was the biggest project money-wise that I had ever done. We company called Thor Wear and they asked us to bid on a truck job for got it done three days early and it led them. We got the bid and then worked to a bunch of work with Mazda after with their designer and it came out that.” great. They loved it! We took it to a For more information about big show and it got amazing reviews.

Mitch and his work, go to: The big boss saw it and said, ‘We need www.kellyandsoncrazypainters.com

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Custom Painter Jim Hetzler Started Out at Age 13 with a Model Car

the young man under his wing, and even though Roth was in California Custom Painter Jim Hetzler, 53, of and Hetzler lived in Iowa, Roth Muscatine, Iowa is a world class pin- talked to young Jim over the phone stripe and airbrush artist whose career and became his mentor. “He is the started at the tender age of 13 when one who gave me direction,” Hetzler his hobby was building model cars. said.

Hetzler became a selftaught artist when his interest in art grew over time in high school. His love of art, his friends’ referrals and word of mouth soon grew to be a fulltime business. In the early 80s his career took off, launched by the Honda Motorcycle Gold Wing touring bikes.

“They came from the manufacturer in only three colors,” Jim Hetzler is a world-class pinstripe and airbrush artist Hetzler said. “People wanted who started painting when he was 13. custom paint jobs and the “It’s a funny thing,” Hetzler more I did, the more referrals I got and said. “I enjoyed building model cars my business grew to cars, trucks and as a pre-teen and I wanted to paint semis.” pinstripes on my cars but didn’t Today, Hetzler is a world class know how to begin. I wanted to learn pinstripe and airbrush artist and speand know the secrets of pinstriping, but back in those days it was hard to find someone to teach me.” One day he saw an advertisement in a magazine and bought a $5 book on how to pinstripe. That book was written by famous car builder and airbrush/pinstripe Jim Hetzler won the House of Kolor Prestigious Car Painter Award artist, Ed “Big in 2007 when he painted this 1940 Buick Daddy” Roth. Roth was the creator of the “Rat Fink and cializes in lettering, graphics, pingang” monster hot rod characters striping, gold leaf and airbrush and is which became rock-art icons, ap- highly recommended for his symmetpearing on airbrushed T-shirts, rical, multi-colored fine line stripes as posters and hot rods. Roth’s cartoon well as his realistic airbrush techcharacters were known for symbol- niques and ability to apply the most current techniques to any project. Jim and his wife, Chris, own and operate Hetz Pinstriping and JC Hetz Studio Signs and Graphics in Muscatine, Iowa.

With 40 years experience as a pinstriper, 35 years as an airbrush artist and 25 years in the custom Jim Hetzler painted his own 1950 Ford Club Coupe painting business, Hetizing the rebellious nature of the zler has too many projects to count.

1960s hot rod movement. Roth took But some of his favorite projects inby Melanie Anderson

34 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

clude pinstriping the Good Guys 2009 Street Rod of the Year, custom painting his own 1950 Ford Club Coupe, and creating the paint job on a full-

One of the highlights of his career, Hetzler said, has been the honor of working with Jon Kosmoski, who founded House of Kolor in 1956.

Today, they work together to create new products for House of Kolor. “When I first started using their paints 25 years ago, I was impressed and thought they had a great product. In my world, Jon is a rock star. To be involved with custom painting at this level is amazing One of Jim's favorite projects was painting this full-sized semi for for me.” the University of Iowa’s Hawkeye Football team.

Hetzler often travsize tractor trailer semi for the Uni- els with the House of Kolor, taking his versity of Iowa’s Hawkeye Football talent on the road and showcasing Team.

House of Kolor paints. He is a regular Jim was given the title of “Pin- showcase artist every year at the striping Legend” by Northern and SEMA show in Las Vegas. He also will Southern Rodder magazines and has be at the Back to the 50s car show in received many awards for his graph- Minnesota in June. In August, he’ll be ics and designs throughout the years. in Louisville, Kentucky for the Street In 2007 and 2011, Hetzler received Rod Nationals. In his spare time, he the House of Kolor Prestigious Painter holds his own workshops in pinstriping Award. He’s been using House of and airbrushing, as well as working as Kolor products for 25 years and for a pinstripe instructor for “getaway the past two years, has been testing the workshops” in Orlando and Las Vegas. new Shrimrin2 Formula.

Hetzler’s trademark signature is “I like the new line even more,” “Hetz” and can be found on all his Hetzler said. “It’s incredible paint and projects. His online, Facebook and gives you the ability to create thou- personal connections in the custom sands of colors from 16 base colors. It’s easier to use and you can intermix it for any color combination.”

The newest line of paint from House of Kolor, released in June 2011, is a solventbased paint with low VOC. What makes the Shrimrim2 Formula special, Hetzler says, is Jim Hetzler won the House of Kolor Prestigious Car Painter Award the ability to custom in 2011 for this 1934 Ford create a multitude of colors and intermixing Kandy with painting world have made him fabases and creating special effects with mous. “I can go anywhere in the U.S. its line of pearls and flakes. and people know who I am. It’s kind “House of Kolor has been my of scary,” Hetzler said. paint of choice for the last 25 years,” For more information, visit Hetzler said. “House of Kolor paints http://www.hetzstudio.com/ or contact is the foundation of all my artwork Jim at (563) 263-2803 or at jhetand graphics. It’s vibrant, easy to zler@machlink.com. work with and is convenient to mix colors. Using their paints has enwww.autobodynews.com hanced my artwork and really made CHECK IT OUT! the colors pop.”

GM to Stop $40M in Facebook Advertising—“it’s ineffective”

General Motors will stop advertising on Facebook, citing the ineffectiveness of the paid ads, The Wall Street Journal reported May 15. The move came days before Facebook’s initial public offering that valued the social media giant at near $100 billion. The automaker will still utilize free Facebook pages for marketing. Joel Ewanick, GM’s top marketer, said the company was “reassessing our advertising on Facebook, although the content is effective and important,” the Journal reported, adding that “the content” referred to the free pages.

GM spends about $40 million to maintain all aspects of its Facebook marketing, including about $10 million on paid ads, the Journal reported.

The automaker began to reconsider advertising on Facebook earlier this year, according to the Journal, and Ewanick and other members of GM’s marketing team recently met with representatives from Facebook but the meeting didn’t sway GM from its decision to pull the ads. GM spent $2.8 billion in advertising in the United States and $3.9 billion globally in 2010, the most recent year for which data is available.

Ford Tweaks GM and Doubles Down on Facebook Advertising

Responding to GM’s announcement that it is pulling Facebook paid advertising, a Ford representative tweeted: “It’s all about the execution. Our Facebook ads are effective when strategically combined with engaging content & innovation.”

“We’ve found Facebook ads to be very effective when strategically combined with engagement, great content and innovative ways of storytelling, rather than treating them as a straight media buy,” a Ford spokesperson said in a statement. “We continue to have a strong, collaborative relationship with Facebook, which includes first-of-a-kind vehicle reveals, advertising and innovative ways of sharing content. Our engineers have also been working with Facebook engineers to develop unique and safer ways of integrating the car experience with Facebook.” Ford has been a vocal supporter of Facebook marketing for quite some time. Most recently, the company was one of the first to pay for Facebook’s new logout ads. The automaker has also been working closely with the social networking giant to figure out how to integrate Facebook into Ford Sync. Ford has 1.5 million Likes and 378,000 Likes on their Facebook Pages, respectively.

Continued from Cover

Friday the 13th

door that was left open in his haste to reach safety. “I was holding onto the frame rack thinking I was going for a ride with it.”

While his shop suffered no dam-

Phillip DeFatta

age, the building next door was destroyed and is now being demolished.

Two cars, both owned by DeFatta, were damaged in the parking lot. One vehicle was totaled and the other nearly totaled.

Less than 30 minutes before the tornado hit, DeFatta heard the news on the radio about an approaching storm and he sent his five employees home.

DeFatta stayed at the shop and was working under a frame machine when he heard the tornado sirens go off. He went outside to watch the storm.

“I’m from Texas,” DeFatta said.

“In Texas, you can watch the tornados because you can see them coming. So, I went outside looking for it. That was my takeaway lesson from this,” he laughed. “Don’t stand outside looking for a tornado.” The tornado came wrapped in swirling, heavy rain, making it impossible to see. “I never saw it, never heard it. It just came.” DeFatta, who has been in town for only a few years, is told by the older folks in town that it’s a rare occurrence for a tornado to hit the heart of Norman.

Today, DeFatta says the town is still cleaning up. “Overall, we had mild damage but there are still messes, tree limbs, to clean up.” Damage to cars in town is making the shop busier these days too.

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Top Hot Rod Shines ‘Brilliant Red’ Bright with Glasurit® Paint

Greening. “We knew up front that he would be going to Detroit with the car, so we had the goal of going for the Ridler from the beginning.”

The shop has been a loyal BASF customer for years, after Sales Representative Ray McCutcheon called on them and helped them solve some particularly challenging paint issues. “Ray got us started with Glasurit years ago, and we’ve been working with him and BASF ever since,” said Greening, who runs the full-service street rod shop with his father Dwayne Peace's Ridler-Award-winning '55 T-Bird gets its Jeff. first prime coat at Greening Auto Company “The ‘55 T-Bird represents ativity, engineering and workmanship our typical approach and quality finwas chosen from among 63 very ish,” observed Greening. “What made strong contenders that had been pared it different were some of the areas we down to the “Great 8” before the ultidon’t normally get into. Just look at mate winner was announced at the the underbody and engine compartDetroit Autorama® back in February. ment detail.”

The ‘55 T-Bird had been in the Greening Auto Company looks to family for more than 20 years and the BASF to help them deliver show-wincustom build was a family affair, handled by Peace’s sons in an outbuilding behind his house. The uncompromising design and build of the custom hot rod brought in a number of outside shops and some of the country’s top automotive craftsmen. Greening Auto Company in Nashville, Tenn., was one of these partner shops, called upon to handle the paint Final fitment of all billet parts took place after the car work and some machining du- had been primed ties. ning results with every project, and In a meticulous process that took that sometimes involves the kind of six months, Greening machined all of problem solving that started their rethe side trim, as well as the grill, tail lationship. “One example where we lights and wheels; and painted the lean on Ray for technical help is when show-stopper with BASF’s Glasurit® we’re facing problems with a repair 90-Line™ Brilliant Red waterborne that involves blending back into an alpaint. In the process, they demonready-painted panel,” said Greening.

“Fortunately, we don’t do this very often, but when we do it needs to be flawless.”

Greening Auto Company’s work on the Ridler-Award-winning ‘55 TBird is a great example of how BASF’s industry-leading products and commitment to adding value after the sale gives its customers a competitive edge.

“Our focus is on adding value to strated once again why the premium our products and supporting our cusGlasurit line is a favorite of top cus- tomers to help them be more efficient, tom builders. cost-effective and successful,” said “Dwayne Peace found us through Market Segment Manager Tony a customer referral,” recalled Jesse Dyach. “That translates into the top This year’s winner of hot rodding’s top prize—the Don Ridler® Memorial Award—was a 1955 Ford Thunderbird owned by Dwayne Peace of Tyler, Texas. This masterpiece of cre-

36 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

quality finishes that make our customers stand out.”

The commitment to customer satisfaction demonstrated by McCutcheon’s work with Greening Auto Company is an integral part of BASF’s business model and company culture. “Our work with high-end cus-

and to add value through expert, responsive service with all of our customers, including the collision repair shops that are the core of our business.”

It’s no wonder that many of the country’s top custom builders choose to go with BASF. And it’s no coincidence that Glasurit paint has been on six of the last 11 Ridler Award winners. That same commitment to excellence extends to every BASF Automotive Refinish customer, and also to their demanding customers.

So, it should come as no surprise that among users of Glasurit paints, more than 50 The '55 T-Bird took hot rodding's top prize at the 2012 percent of their volume is in Detroit Autorama, the latest Ridler Award winner to high-end and luxury vehicle sport premium Glasurit paint applications — twice that of tomizers, restoration specialists and the premium brand’s nearest comstreet-rod builders like Greening re- petitor. flects the ‘passion around the paint’ For more information about that makes our business fun and perBASF Automotive Refinish products sonally satisfying,” said Dyach. “In and services, contact your BASF repturn, our passion at BASF is to offer resentative by calling 800-825-3000, the world’s finest automotive coatings or visit www.basfrefinish.com.

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Bill to End Fossil Fuel Subsidies Introduced to Congress ‘Brown energy’ is subsidized much more heavily than ‘green energy.’

Many consumers and business owners, especially those skeptical of the green energy movement, are not aware that the fossil fuel industry gets far more in subsidies than does the renewable energy industry.

Oil and gas companies are subsidized at almost six times the rate of renewable energy. From 2002 to 2008, the federal government gave the fossil fuel industry over $72 billion in subsidies while the renewable industry received about $12.2 billion.

The End Polluter Welfare Act would end fossil fuel subsidies, and save over $10 billion a year and more than $110 billion over 10 years. Senator Bernie Sanders (I-VT) and Rep. Keith Ellison announced they would introduce the bill to Congress during a press conference with 350.org. The bill would specifically end tax breaks for fossil fuel companies, plus eliminate special financing, end taxpayer funded R&D, and set fair royalties policies. Bernie Sanders describes the End Polluter Welfare Act in an op-ed piece for Reader Supported News as the “most comprehensive ever introduced on this subject.” Sanders added that the Act “ends all the tax breaks,

the special financing arrangements, and the federal research and development funding.”

A fact sheet distributed by 350.org lists the money that would be saved by eliminating fossil fuel subsidies: ● $14 billion saved by eliminating the intangible drilling deduction ● $12 billion saved by repealing a 2004 law that allows fossil fuel corporations to take deductions aimed at helping American manufacturers by claiming they are manufacturers ● $6.8 billion saved by closing the loophole that allows corporations like BP to deduct money they spend cleaning up their own oil spills and paying damages ● $2.4 billion saved by stopping fossil fuel companies from investing through Master Limited Partnerships, an option not available to clean energy businesses ● $3.7 billion saved by shutting the federal Office of Fossil Energy ● $10.6 billion saved by recouping lost royalties for offshore drilling in public waters.

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AkzoNobel Announces 2012’s Most Influential Women

AkzoNobel Automotive & Aerospace dividuals who have a passion, a vision Coatings Americas (A&AC) an- and a vested interest in its future,” nounced the three recipients of its 2012 said Margret Kleinsman, general Most Influential Women in the Colli- manager for AkzoNobel A&AC sion Repair Industry (MIW) Award.

Americas. “The leaders we are honorAkzoNobel’s annual MIW award ing with this prestigious award all program, which launched in 1998, rec- share these qualities and are among ognizes and promotes the contributions the top tier of those who continue to of key leaders within the collision re- make this a vital industry.” pair industry. The company said 69 AkzoNobel said it will present women have received the award over the 2012 MIW awards during a cerethe program’s 14-year history. mony July 19 at the San Antonio ConThe 2012 MIW awards will vention Center in San Antonio, in honor three women who hold leader- conjunction with the 2012 I-CAR Inship positions within the U.S. and dustry Event and Collision Industry Canadian collision repair industry. Conference (CIC) meeting.

AkzoNobel said the recipients were selected for their contributions to the Web-Est Adds No-Cost Paint organizations they represent, the collision industry at large and their reCodes to Estimating Platform spective communities.

Web-Est announced the addition of This year’s three recipients are: paint codes to their collision estimatKim Parsons, president of Autoing application. “We’re excited to motive Collision Technologies Inc. in launch this new feature in our proRandallstown, MD. gram,” said CEO Eric Seidel. “This Catherine Mills, executive difeature will provide the paint code of rector of the Florida Autobody Collithe vehicle to the estimator using the sion Alliance in Orange Park, Fla. vin decoder. This will make it easier Kim Roberts, manager of Fix to match the paint color of the vehicle Auto in Barrie, Ontario, Canada. that the shop is working on.” Mr. Sei“The collision repair industry’s del also says that this new feature will Give us your image opinion on matters affecting industry. collective strength, and longcome at no extra forthe the user.

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www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 37

House of Kolor® Colors Automotive World for 56 Years

by Melanie Anderson

Back in 1956, House of Kolor®, based in Minneapolis, Minnesota, was founded by world-renowned custom painter, Jon Kosmoski, and 56 years

later, is still a strong player in the world of automotive color.

House of Kolor produces basecoats, surfacers, primers, sealers, thinners, reducers, dry pearls and flakes and other specialty products.

The company is known in particular for its premium custom finishes.

1930 Ford Pickup, Mike Smyth

tom paints that wouldn’t tarnish, crack or sun-fade, even in severe climates or radical temperature changes. In addition, he wanted paints that could withstand the many coats required for a custom job. When Jon’s products and

skills came together, his paint jobs began to win awards, and people began to talk. Word spread and by 1965, House of Kolor was nationally renowned as high-caliber paint for customizing vehicles.

In 1997, House of Kolor became part of the Valspar Automotive Coatings Division. Jon continues to play an important role in House of Kolor.

He travels around the world conducting training classes and continues to share his innovative ideas, helping to keep House of Kolor on the leading edge of custom automotive coatings.

“After all these years, I’m still passionate about House of Kolor as ever,” said Jon. “In fact, I can walk through a car show and pick out the cars that have the House of Kolor paint on them. They are that much richer and brighter. The people at House of Kolor know that it is all about quality and longevity. That’s why we use the best pigments and solvents that money can buy.”

The company’s roots were inspired by a ‘40 Chevy Coupe. Jon had rebuilt the car and took it to the best paint shop in town. But the paint job was less than satisfactory and Jon knew it could be done better and so he decided to learn how. And, as they say, the rest is history. Jon quickly became well-known for his skills as a custom painter, however, he was displeased with the problematic nitrocellulose laquers and alkyd enamels of the day, which would sometimes sun1956 Chevrolet 210 Post, Gary Uhas fade or cold-crack.

Jon wanted something better and House of Kolor maintains its inif it wasn’t already available, then he tegrity and reputation as a leader in the decided he would have to invent it. custom coatings industry by using Together with a doctor in polymer only the finest ingredients in the prochemistry, Jon set out to produce cus- duction of its award-winning paint

38 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

products. The unique product line gives custom painters the freedom to use their imaginations to design, invent, and create “one of a kind” custom paint jobs.

The newest paint from House of Kolor is called Shrimrin2 and comes with a supporting line of new clears, primers and more, said Nick Dahl, General Manager with House of Kolor. Shrimrim2 is the second generation of the proven Shrimrin Basecoat technology introduced in 1982.

“Through new polymers and innovative chemistry, we are able to meet and exceed waterborne with a solvent-based system which allows the painter to create an unlimited pallet of easy-to-mix colors and to use colors that are the most exciting,” said Dahl, who has been with the company for 17 years. “Shrimrim2 basecoats are ultra productive, easy to apply and range from metallic, pearl and kandy basecoats. Shrimin2 Basecoats are a three-component system that consists of our S2-FX Karrier Bases, S2-FX Effect Pacs and RU Series Kosmic re-

ducers. This new system is the future of custom painting and is available now and compliant throughout the United States, including the strictest

1934 Ford 3 Window Coupe, Robert Darrow and Jim Hetzler

districts in California. House of Kolor is hitting a home run with solventbased custom paints that are coast-tocoast compliant.”

For more information, visit HouseofKolor.com or contact: 901 3rd Avenue South Minneapolis, Minnesota.

Phone: (800) 845-2500 Phone: (601) 798-4731 Email: houseofkolor@valspar.com

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Industry Insight

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

Contact him by email at jyoswick@SpiritOne.com.

Shops and Insurers Discuss Indemnification in DRP Contracts with John Yoswick

Should repairers be held solely re“The argument from the repairer sponsible if a repair process or part standpoint is that if the insurer…had they choose fails—even if that process left me to do what I do—put the part or part was chosen at the behest of an on I want to put on, or do the operawith Ed Attanasio insurer? tion the way I wanted to do it—none That was one of the questions at of us would be in that court to begin the heart of a panel discussion on “in- with,” Wano said. demnification” at the Collision IndusPerhaps not surprisingly, insurers try Conference (CIC) held in on the panel viewed the issue differOklahoma City in late April. ently. Allstate’s Randy Hanson said Rick Tuuri,with who Ed chairs CIC’s that, first, he’s not sure it’s much a Attanasio “Insurer-Repairer Relations Commit- topic of concern. He said that in the tee,” said the topic was triggered by decades he’s been involved with his the indemnification clause found in company’s DRP, he doesn’t recall a many direct repair agreements. That question from shops coming up about clause requires the participating shop it. to “indemnify” (or “hold harmless”) “I can also say in 30-plus years, I the insurer, which could prevent the have not once evoked an indemnificashop from pursing a legal claim tion clause in a contract for a DRP against the insurer, or make the shop partner,” Hanson said. “Not once.” responsible to compensate or defend He said five of the six indemnifithe insurer in a legal claim arising cation elements in the Allstate DRP from repairs made under the agree- agreement have nothing to do with rement. pair issues. They prohibit such things “I think for repairers it ultimately as a shop making a claim against the comes down to this: If the contract is insurer if a shop employee makes a going to hold me to indemnify the in- workers’ compensation claim, or surer against anything caused by the someone having repaired vehicles repair, then insurers should ultimately under the agreement seeking Allstate say, ‘You’re responsible for indemni- employee benefits. fying us, so you make all the (repair) But Hanson said Allstate needs decisions and we’ll pay you for what repairers to fix cars for its policyholdthe repair is,’ ” panelist Aaron Schu- ers, so if concerns about indemnificalenburg, executive director of the So- tion prevented enough shops from ciety of Collision Repair Specialists signing the agreement, his company (SCRS), said. “I think most repairers would have to find ways to address would be fine with that. I think where that. the issue comes is when insurers start “I don’t want to be so crass as to to be involved in the process by spec- say take it or leave it, but they’re not ifying part types or repair proce- going away,” Hanson said of the indures—to identity how the repair shop demnification clauses. “Everybody is does their job – protecting themselves to a certain exwhile also asking tent. To an extent that we can’t do to be indemnified business together? Let’s have a conagainst anything versation. I’m open for that. I think that results from we’ll listen. And I think we’ll make that. If there’s in- changes where it’s appropriate.” volvement in the Panelist George Avery, a claims decision-making consultant with State Farm, said at Gary Wano process, I think the first that like Hanson, he hasn’t seen repairer believes there should also be the indemnification clause being involvement in the liability.” much of an issue for shops on his Oklahoma shop owner Gary company’s direct repair program. But Wano agreed. He said he thinks that, he also said State Farm did make a indemnification or not, if a problem significant change to its indemnificaoccurs based on a repair, the shop and tion clause. insurer will both find themselves in “Our initial Select Service agreecourt. ment did have a one-way hold-harm-

Shop Showcase

Social Media for Shops

less against us,” Avery said. “It was in our benefit. As a result of input from our (repairer) advisory council, we changed that and now it’s both ways.

We added a two-way hold-harmless for both the repairer and for us.”

But he also pointed out that some of what shops consider insurer involvement in the repair process is driven by the insurer’s policy contract with its customers. He said State Farm’s insurance policy, for example, says it can designate the type of replacement parts for which it owes.

“George has a good point: The policy is the policy,” Schulenburg conceded. “You’ve set an expectation with your policyholder on what you owe for. I don’t think there’s an issue there at all. You owe for what you contracted for. However, there are third-party claimants, and they don’t have a policy with you.”

Schulenburg also pointed out that insurers attempt to involve themselves in repair decisions beyond just parts.

The policy doesn’t inform the consumer that the insurer may say, “We’re going to section this rail here versus putting it in at a factory seam,” Schulenburg said.

He said that intrusion by insurers into the repair process, pressing shops to do something that deviates from OEM recommendations or their own repairers expertise, is why shops are concerned about the indemnification clause.

Speaking from the floor of CIC, California shop owner Randy Stabler raised several other concerns he has related to indemnification. He said the fact that Avery and Hanson Randy Stabler haven’t seen indemnification result in an issue doesn’t mean it couldn’t.

“I’ve never had a fire in my shop, but I have fire insurance,” Stabler cited as an analogy.

He also said it would seem fair that insurers cross-indemnify shops, in case an adjustor, for example, slips and falls while at the shop, or makes inappropriate comments to a shop em-

ployee that results in a claim against the shop. He also pointed out that shops have business insurance to protect themselves in the case of an error or omission, but that insurer offering that coverage is basing that policy on protecting the shop, not the insurer with which the shop has a contract.

“When you actually go to your (business) insurance company and say here’s my DRP agreement and they actually look at that, they go, ‘Ooooh.

Ooooh. We don’t like that so much.’

So that’s another practical issue we have to be aware of.”

Schulenburg pointed out that the indemnification discussion came about as part of the committee’s effort to craft a set of guidelines for the “most beneficial and productive repairer-insurer relationships.”

“So insurers could say, ‘Look, it’s in there; you should read your documents and if you don’t like it, don’t sign it,’ and repairers could say, ‘Let me fix the car and get out of my business.’ But neither of those things really get us to the goal of this committee, which is to build better relationships between the two parties.”

To that end, committee chairman Tuuri said he drafted a position statement on the topic that reads in part, “Indemnification clauses in DRP agreements…should be fair to both insurer and repairers.”

Wano, Avery and Schulenburg said that initially that seemed like a good addition to the committee’s guidelines for mutually beneficial insurer/shop relationships.

“We’re not solving the world’s problems here,” Wano conceded. “But as www.autobodynews.com long as the carriers and repairers are willing toCHECK sit down IT andOUT! take a look at these things.”

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www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 39

Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Is the State Farm Elephant in the Room a Bad Elephant? with The Insurance Insider

This is an interesting story and I don’t tinually raising it. I realize it’s not enknow quite where to start. How about: tirely the shops’ fault, but I can assure Elvis has just entered the building and you that when shops are repairing one Chasidy Rae of Sisk nobody noticed. with Is it possible for Elvis their own vehicles, they’re looking to walk into a room and take a seat yet harder for the best price on parts. have nobody notice that the King is in the house? It’s impossible, right?

Well, it seems just as impossible that collision repairers didn’t mention State Farm and with parts atChasidy the most reRae Sisk cent Collision Industry Conference (CIC) meeting. They are the most common words affectionately uttered by body shops owners throughout the country these days. So how is it possible that during one of the industry’s biggest stages, CIC, there wasn’t even a mention?

Yes, there were some sidebar conversations during breaks. Yes, there was a lot of discussion at an associaWe all have a responsibility to be tion meeting held in conjunction with cost-conscious when spending someCIC. And yes, there have been some one else’s money. When you repair a press releases. customer’s vehicle, you are spending But when everyone had a chance THEIR money. Yes, you are spending to address State Farm publicly, no- THEIR MONEY. I don’t care if it’s an body noticed that the elephant was in insurance claim. The money the inthe room. I know the elephant was surance company pays you is from the there. insured’s premiums.

Maybe a gag order was issued?

If you understand and respect that Maybe the industry felt that State concept, you would treat an insurance Farm deserved a break? Or could it be claim like it was a customer-pay job that the industry realized that it’s not from a family member. Instead, we as bad as some have made it out to be? have an industry that couldn’t care I am among those who think State less about the cost of parts because Farm’s parts move isn’t as bad as they aren’t paying for them and will some make it out to be. While there make more money by choosing the are pros and cons, the reality is that highest-priced parts. overall it’s a good thing. If State Farm Don’t all of us have a responsibildidn’t take the lead on this, the indus- ity to make sure the customer’s car is try would have continued to flounder repaired in the most cost-effective around for years to come. The ineffi- manner possible? If the answer is cient parts ordering model employed ‘yes,’ why are body shops all over the by the collision repairers is archaic country crying foul? If State Farm was and wasteful. trying to eliminate your parts profit, Why wouldn’t State Farm want a like an ill-fated pilot program many shop to order the most cost-effective years ago, then you’d have a right to part on a given repair? Why should complain. But finding the most costState Farm have to reimburse a shop effective part shouldn’t be something for a more expensive part if the exact insurers have to ask or require you to same part is available at a cheaper do. You should have been doing it price? Paying more for the same part since the first car entered your buildis a waste of insured’s premium dol- ing. lars.

Although insurance companies If shops were more cost-con- inserting themselves into the body scious over the past 10 years, insurers shop’s business isn’t a popular submay have been in a position to lower ject, you might as well get used to it. the cost of insurance instead of con- I’ve been around this industry long

Northeast News Shop Showcase

enough to know that unless an insurance company requires it, it’s not going to happen. Allstate requiring CCC’s first estimating system facilitated the widespread adoption of electronic estimating. If that didn’t happen, we might still be writing estimates by hand.

Why is Allstate requiring their direct repair shops to be I-CAR Gold Class? It’s because the vast majority of the industry doesn’t want to invest money into training.

Shops shouldn’t be forced to keep up with the latest technology and repair methodologies.

They should be seeking training without any interference or mandate by an

Mainstream Media

40 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

insurance company. But they don’t.

There are many other examples of insurance companies changing the industry but I think my point has been made. When there are inefficiencies in the system, money to be saved or a better way to serve the customer, unless an insurance company decides to play the role of the evil villain, shops aren’t going to do it willingly.

If the majority of shops were operating at a high level (as a few are), there would be no reason for any carrier to manage the shops’ business. Insurance companies are similar to the government. You are better served resolving the problem yourself, otherwise your fate will be decided for you.

Elvis sang a song titled, “Don’t Ask Me Why.” The next time you are at an industry meeting and want to complain about insurance companies taking over the industry, remember the King’s song…and this article.

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The Community-Focused Body Shop

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

Domenico Nigro’s Q&A with Chuck Gosney of Collision Billing with Domenico Nigro

The following is an interview with Domenico: For years, there have been Chuck Gosney, President of Collision consultants that have been telling Billing, a company that could help shops how to get paid by using the reference manuals, P-Pages, and other bring the changes the collision with JanetindusCheney tips on writing a complete sheet. How try desperately needs. In this interview, Domenico Nigro asks some are you different? direct questions on exactly how this Chuck: The other consultants do a company could bring needed change. great job of explaining what is inDomenico: Chuck, what exactly is cluded and not included and what to with Frank Sherosky Collision Billing? ask for. We have all been to their workshops and get excited and go out Chuck: Collision Billing was cre- on Monday and start writing repair orated to keep the insurance compa- ders the way we should. When you nies in check and to help the auto ask for those things, the insurance body shops get paid for the work company’s response is that they don’t they are doing. Nobody was repre- pay for that and the shop has no resenting the shops, so we created course to get paid for it and they stop Collision Billing to level the playing asking for it. What the shop is lacking field. We have two main services is data to substantiate the operation, or that we provide for the collision in- someone who will challenge the industry, the first being our Full surance company on the shop’s beBilling Services, and, of course, our half. That’s where we come in, and Claims Database. that’s how we’re different.

Shop Showcase

Industry Business Beat

Domenico: How does your full billing services work?

Chuck: Our full billing services are similar to the professional billing services used in the medical field, and much like a medical biller, we work with the shop in submitting their final blueprint for repair to the insurance company. We work with the shop to make sure they are billing for all operations performed to repair their customer’s vehicle to pre-accident condition. We then use data gathered from our experience and our claims database to justify the charges to the insurance company.

Domenico: So you simply submit the finished paperwork to the insurance company once the job is done?

Chuck: Actually, we work the job from the moment the car arrives at the

shop to the time the shop receives final payment for the job. The estimator writes the original blueprint for repair and we take over from there, adding any additional R&I or other operations that may have been missed.

From that point forward, we handle all communication with the insurance company. We then make them justify why they refuse to pay by using our arsenal of tools and experience to show them the validity of the operation.

Domenico: So what has been the response so far?

Chuck: Given our knowledge of the three major estimating platforms, the P-Pages, database reference manuals and our Claims Database, we have been very successful in getting our clients paid on the work they have See Domenico Nigro, Page 45

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www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 41

I-CAR Tech

This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.

Bonding and Rivet Bonding Technology on Steel BMW Vehicle Parts As BMW Groups’ vehicle construcAnother reason for bonding and tion technology advances, so does the rivet bonding is the increased corrorepair process required to fix them sion resistance of the repair joints. properly. Conventional welding, Corrosion protection is extremely imwhich has been used primarily in portant during repairs because BMW BMW Groups’ repair processes in the offers a 12-year corrosion warranty. past, is slowly becoming the secondary method to bonding and rivet bond- Repair Overview ing technology. BMW currently The recommended BMW sectioning recommends primarily using bonding joint on outer body panels requires a with Lee Amaradio Jr. and rivet bonding to replace exterior pre-fabricated E-coated reinforcement body panels, structural parts, and sec- plate, available from BMW, along tioning specific locations in conjunc- with VIN-specific repair information. tion with VIN-specific repair The sectioning joint locations are in a procedures. Changes in recommended similar area as the previously recomrepair procedures affect all current mended weld joint, but may have production models. This does not moved to accommodate the reinforcemean that all models, and all parts, are ment plate. The reinforcement plate affected though. Consulting VIN-spe- has studs built into the part. This recific repair procedures should always quires notches to be placed into the be the first step in the repair process. existing part and the new part.

The same is true for Mini and for Special plastic lock nuts are used Rolls-Royce vehicles (see Figure 1). to hold the parts in position until the adhesive cures. If the joint calls for them, rivets, which may be special blind rivets or punch rivets (also called self-piercing rivets or SPRs), are then installed on mating flange areas where applicable. When the adhesive is cured, the studs on the reinforcement plate are removed and the surface is prepared for the application of the BMW-recommended epoxy metal filler.

Figure 1 - This BMW 5 Series has several parts The sectioning procedure for a that need to be rivet bonded withduring Danrepairs Espersen rail is similar to an outer body panel.

BMW Group has been recomThe difference is this repair joint uses mending bonding and rivet bonding a repair element that fits into the rail. techniques to replace damaged aluA bolt is inserted into the repair eleminum parts for over a decade. The ment. When the bolt is tightened recommendation has now been brought to repairs on steel vehicles. The theory behind the repair of both aluminum and steel parts is similar, although the adhesives and preparation material used can vary by the repair situation and the materials being joined (see Figure 2).

Amaradio Explains CRA

Consumer Callout

Still Some Welding Bonding and rivet bonding does not replace all welding procedures for BMW. There are some areas that will still require welding to be done. These areas can only be identified with the correct repair information.

Tools and Equipment Availability All of the tools and parts, including the reinforcement plates, repair elements, rivets, and adhesives needed to complete bonding and rivet bonding procedures for BMW are available to independent collision repair facilities.

It is highly recommended, however, that before any repairs are attempted, the technician acquire training from BMW on the tools and techniques to correctly perform these repairs. It is also critical to have access to the most current and up-to-date repair procedures and sectioning locations from BMW.

ALL OEM Information

The Right Cause with Mike Causey

Reasons for the Change There are several reasons that BMW has made the transition from conventional welding and STRSW to bonding and rivet bonding. One of the main reasons is the use of heat-sensitive steel. With bonding and rivet bonding, there is no heat generated that would weaken the steel, allowing the steel to retain its strength.

Figure 2 - The repairs on this aluminum front end are similar to the repairs on steel vehicles

down, the repair element expands against the inside of the rail, causing the adhesive to emerge. The bolt is removed once the rivets have been installed and the adhesive is cured.

Automaker Actions and Announcements

42 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

with Janet Chaney

Conclusion BMW recommends primarily using adhesive bonding and rivet bonding to replace exterior body panels, frame rails, and when sectioning. The repairs are vehicle specific and require special tools, equipment, and procedures.

BMW recommends specific training before doing these repairs, and having access to their specific repair information.

The recommended change in repair procedures from BMW is just one of the many examples of the challenges that collision repairers face on today’s HSS and UHSS vehicles.

While traditional repair methods are still used on these vehicles, how and where those repair methods are used is constantly changing. For more information on working on HSS and UHSS vehicles, attend I-CAR’s Best Practices For High-Strength Steel Repairs (SPS09) course.

Audi A3 Development with Master Jigs and Color Matching by the Audi Quality Assurance Department for the A3

Exterior Master Jig At Audi, the master jig is the main instrument used by the Quality Assur-

Front cubing measurements with CNC coordinate machine

Master jigs are used to optimize dimensional fits and the colors and materials matching operations.

ance department to attain a premium impression and perfect fits.

The task of the exterior master jig is to optimize and fine-tune dimensional fits on every vehicle project before a production launch. This involves coordinating the fits of all parts that are visible on the exterior with one another.

These parts range from sheet metal panels such as doors, engine hoods and trunk lids to exterior trim parts such as bumpers, headlights, taillights, windows, mirrors, door handles, spoilers and decorative trim strips.

Optical measurements on joints master jig

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Rear cubing measurements with CNC coordinate machine

The measurement and analysis fixtures of the exterior master jig are housed in a dedicated building together with the interior master jig.

Other tools—which are also fundamental to successful coordination—are used in this area before work is performed on the exterior master jig.

The joint master jig is used to check for dimensional conformity of the underbody and its individual components, such as the front and rear floors and to coordinate them to one another.

It ensures that all components can be joined without stresses. This is necessary to be able to produce a highquality body in the later production process, which is the foundation for the premium image of Audi vehicles.

Using what are known as exterior function cubes, experts analyze the vehicle’s exterior trim parts in a local zero-reference environment.

Correction data is derived from this process, which is used to optimize components at an early phase. When they fit to the cubes, they are added to the exterior master jig for further fine tuning.

Work in the zero-reference environment of the exterior master jig begins about nine months before production launch. Previously inspected panel parts of the body’s exterior skin and the parts mounted to them, such as doors and hoods and lids, are built up on a frame constructed of solid aluminum profiles.

Exterior trim parts are also added to the assembly to analyze the interplay of all body parts.

This gives specialists a stepwise method for perfecting the dimensional tolerances of parts, achieving flush fits and perfecting the lines of joints.

An additional fine-tuning step involves working with reference bodies that are equipped in a way similar to that of an exterior master jig.

This is done so that the paint application can also be considered in a final fine-tuning step. Although the paint is only as much as 15 hundredths of a millimeter (0.04 inch) thick, by Audi’s way of thinking, even this plays a major role in dimensional optimization.

The seam pattern on the new Audi A3 does not always follow exact mathematics; in some zones, subjective impressions are also considered in the tuning process.

Take the front bumper, for example, which is slightly offset to the rear at its transition to the fender so that the customer always perceives a harmonious transition when looking at it from above. Another example: the seams at the fuel filler door. The upper seam was intentionally made smaller than the lower one, to give the subjective impression of a better fit for the observer.

Along with dimensional conformity, the exterior master jig also yields information on color fidelity, gloss level and the tactile feel of sheet metal, aluminum and plastic parts. In addition, it provides information on the firm seating of all components and their easy assembly and whether optimization potential exists in the component concepts.

Audi specialists are always faced with exciting new challenges in their work at the exterior master jig—challenges they must overcome to fulfill stringent requirements for the overall impression of the vehicle’s exterior.

Different materials such as steel, aluminum, plastics, rubber and glass must be cleanly fitted to one another.

The overall impression is only distinctive and high- end if all edges and their radii fit precisely to tenths of a millimeter; only then is the run of the tornado line from the fender over the door to the side wall frame pleasing to the eye.

Interior Master Jig The interior master jig is a body produced to a specific design level that does not exhibit any deviations at the points where interior components are mounted.

Ten months before production launch, the components are coordinated and fitted to one another using optical and tactile measurement methods.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 43

Along with verifying functional criteria—free movement of parts, firm seating, ease of installation, harmonious actuation forces and sounds— the primary focus of measurement work with the interior master jig is on visual properties. All parts are inspected for grooves, voids and blisters.

Special attention is given to checking of seams, e.g. on the centre console that is made up of numerous individual components—from knee pads to the MMI terminal.

The four air nozzles in jet design at the front of the cockpit are highly complex parts. Each consists of over 30 individual components.

Allowable tolerances are on the order of a few hundredths of a mil-

Measurements on instrument panel with coordinate machine

limeter in the design feature for adjusting the air stream to spot mode or diffuse mode. Therefore, the supplier assembles and checks every part in a 100 percent automated process.

A parts that helps to ensure optimal sitting comfort is the center armrest with its height and length adjustments.

A high-quality aluminum die cast body with a two-component material joint ensures full adjustment acoustics.

Another highlight in the Audi A3: the three-dimensional decorative trim strips in the doors—they are embedded in a soft film without any gaps.

The complex mounting feature on the rear side was not released in the internal master jig process until it was perfectly tuned to assure an elegant impression and no noise.

The decorative ring on the gear shift grip is embedded with a precision of just a few hundredths of a millimeter to assure perfect tactile feel for the driver.

Audi has even implemented elaborate solutions in the luggage compartment of the new A3: when the cargo floor is folded upward, springloaded plastic latches hold it in place for the customer.

Special cubes are used to check the fits of functionally relevant vehicle

Visual surface inspection of a trim strip

subassemblies. In the doors of the new A3, quality experts worked until pleasant-sounding window tracking and door closing acoustics were assured under all conditions.

This was technically implemented by features such as “post-tracking,” in which the window slides into the window guide starting at the front.

Only then did the window seal perfectly on the roof profile of the window guide with a constant insertion depth.

Another focal point was the double seal between the door and the body.

A continuous seal was attained with the help of color imprint methods and optical measurement technology.

Only with this high level of precision could the stringent quality requirements for closing noise, closing comfort and interior acoustics be met.

On the interior master jig, specialists also ensure that the door trim has precise, uniform gaps in its transition to the body door to ensure noisefree operation over the entire life of the vehicle at the customer. A new fastening concept with a flocked stop rail was coordinated and implemented.

Audi A3—Color matching The interior of the new Audi A3 integrates about 150 colored components; customers can choose from five color schemes.

all and resolves any issues with suppliers.

The colored parts in the A3 interior are extremely diverse. They consist of 34 different types of semi-finished goods—such as fabrics, leathers and films—and ten types of plastic; they come from 45 suppliers across the globe.

This broad variety of materials results in many difficult neighboring interactions. For example, when smooth plastic meets textured surfaces, such as in the area of the center console, the different reflectance values of the materials can generate different, undesirable colors as perceived by an observer.

Visual color evaluation of roofliner

Special pigments are necessary to dye parts with different material

chemistries in the same color hue. All components are dyed through, and

Color hue check and gloss measurements in cockpit

many are also painted—some with high-gloss paint. In the new A3, for example, high-gloss components include the control panel for the climate control system and the frame of the MMI monitor. UV-stabilizers in the plastics prevent colors from bleaching out over a period of years.

Quality Assurance coordinates colors in its light studio whose lighting system can be adjusted to produce three different light environments: clear daylight, warm evening light or artificial light as in a showroom.

This is necessary, because individual materials give a different color

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Discussing analysis results of functional cubing for door

All parts, from decorative trim strips to the carpeting, must be precisely matched and coordinated. Audi Quality Assurance coordinates them

44 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

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impression under different lighting conditions. This effect—known as metamerism—must of course be avoided.

Visual surface inspection of a trim strip. All employees participating in color matching efforts must first pass a special vision test, because the optical measuring instruments at Quality Assurance—such as the spectral photometer—can only provide objective measured values of the surfaces.

Such instruments cannot measure the impression the color makes on a person, because only people can simultaneously detect and evaluate color, gloss level and surface texture.

Therefore, if there is any doubt, in the end it is the subjective impression of trained employees that is the decisive factor in achieving perfect color harmony.

Color matching work is also performed in the finished, assembled interior, i.e. with components in their mounted positions and from the viewing perspective of the driver. This is done, because the appearance of certain components such as pillar trim changes due to the texture of the trim material.

Continued from Page 41

Domenico Nigro

performed. We have helped shops get paid for operations where previously they were told “We don’t pay for that” and we were able to show that the insurance prevailing rates were not accurate to get some shops their true labor rates.

Domenico: I’m familiar with the PPages and reference manuals, but what exactly is the Claims Database?

Chuck: The Claims Database is our number one tool in assisting our clients in getting paid. It’s where we track different components of the estimates and log them for future use. For example, we can find if a certain insurance company has paid for a specific operation (such as a finish sand and buff or test drive car), paid for itemized materials, or are even suppressing the labor rates for the area with deceptive estimating practices. It’s real simple. We submit this data to prove our point.

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Domenico: That sounds like it would be extremely useful. Do shops have to use your billing service to get access to that information?

Chuck: Actually, we realized early on how powerful the data was, and we wanted to make it available to the masses. So we created a subscription model that allows shops to submit their estimates along with the corresponding insurance estimates to contribute to the database. They can then request from Collision Billing information to be sent to an adjustor on specific operations or rates. To follow our earlier example, let’s say an insurance company claims they won’t pay for finish sand and buff, so we then show them examples of where they have. Now, it’s up to them to justify why the operation is paid on one side of town, but not on the other.

Domenico: You have mentioned a few times that you will pursue payment. What is meant by that and how far are you willing to take it?

that information to get our members paid, period. We see trends where insurance companies have “policies” that they don’t pay for specific operations. We don’t see any justification for their “policies,” especially when the information providers state that those are not included operations. We will challenge them to do what’s right and start paying for the operations, and if we have to, we will take them to court. One of our partners and legal council, Erica Eversman, has successfully won many cases. With the data we are collecting, we will be able to achieve on a global scale what she has accomplished at the local and state level. This data can also be used to share with both the Department of Insurance and the States Attorney Generals to show patterns of unfair trade practices.

For more information on Collision Billing, call 517-489-4280 or go to www.collisionbilling.com.

Chuck: We are collecting and tracking a lot of information. We will use

All opinions presented are those of the author. Autobody News does not endorse or recommend any company or service discussed by columnists in the course of their editorial submissions.

OSHA Fines San Antonio Parts Supplier Due to Fatal Accident

Ford Starts Shipping its first EV, the Focus Electric, to Dealers

A San Antonio company has been fined $46,000 by OSHA in connection with a fatal loading dock accident.

A worker at Certifit Incorporated in San Antonio was preparing a loading dock for a delivery when the delivery truck backed over him.

Investigators with the Occupational Safety and Health Administration said the auto body parts supplier is being cited for serious violations that compromised worker safety, including failure to make sure someone was available to give first aid.

The Occupational Safety and Health Administration cited Salt Lake City, Utah-based CertiFit Inc. for nine serious safety violations at the company’s facility in San Antonio. OSHA initiated the inspection after an employee, 40-year-old Solomon Roberts, was killed when a delivery truck backed into a loading dock.

OSHA found the company failed to ensure that a trained person in first aid is present, provide training on evacuation procedures, repair and maintain electrical equipment and rolling ladders.

Ford started shipping its first electric passenger car to dealers the weekend of May 19, according to Reuters. About 350 Focus Electric cars will be sent to 67 dealers in California, New Jersey and New York over the next couple weeks. Manufacturing executives signed off on the decision on May 18. Each dealer will get about six cars, one of which will be a demonstration model, the reports said. Ford declined to comment on the news. The people asked not to be named because the plans are confidential.

“We are still on track to begin shipping the Focus Electric this spring,” Ford spokesman Wes Sherwood said.

The Focus EV will compete in the burgeoning electric vehicle market against Nissan’s Leaf and GM’s Co.’s Chevrolet Volt.

In April, Ford CEO Alan Mulally said he would not consider it a failure if Ford sold fewer than 5,000 Focus EVs in its first year.

In the first four months of 2012, GM sold 5,377 Chevrolet Volts, while Nissan sold 2,103 of its Leaf electric cars. Both vehicles were launched in late 2010.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 45

Collision Section Secures Exhibit Space at SEMA Show

After debuting at last year’s SEMA Show, the Collision Repair & Refinish section will return to provide buyers with a dedicated area on the show floor where they can quickly and easily meet with major refinish companies, paint booth manufacturers, parts suppliers and manufacturers, estimating and management software companies, manufacturers of structural repair and welding equipment, safety equipment and other related products.

The section has been identified as one of the fastest growing areas of the show, and is on track to surpass last years’ numbers. The 2012 SEMA Show takes place Tuesday through Friday, October 30 through November 2, in Las Vegas, NV. “We’ve seen interest from the collision repair market increase over the years,” said Peter MacGillivray, SEMA VP of events and communications. Last year, due to significant growth and interest from the collision repair industry, show organizers created a new floor section called “Collision Repair & Refinish” to make it easy for those in the professional repair business to connect with manufacturers in the industry. SEMA Show exhibitors are categorized by

market segments and display their products in sectionalized floor areas.

Buyers interested in the Collision Repair & Refinish segment, for example, often visit the Tools & Equipment section of the SEMA Show. The related section features products, such as new lifts, grinders, jacks and more, to help shop owners work smarter and faster.

Last year’s SEMA Show featured more than 300 companies that were of high interest to the collision repair business owners attending the show.

“One of the unique things about the SEMA Show is that is encompasses the entire automotive parts and accessories industry,” said MacGillivray. “Participants are able to accomplish a great deal in a short amount of time.”

Other floor sections at the SEMA Show are Business Services, Global Tire Expo Powered by TIA, Hot Rod Alley, Mobile Electronics & Technology, Powersports & Utility Vehicles, Racing & Performance, Restoration Marketplace, Restyling & Car Care Accessories, Trucks, SUVs & Off-Road, and Wheels & Accessories.

Newest Body Shop Boy, Matt Ng, Shines in Rumble For some time now, Edwards Paint and Body, in St. Augustine, FL, has been making shop space available a to about 20 young martial artists who call themselves the Body Shop Boys. The group’s benefactor is co-owner Jimmy Edwards, who with his son-in-law, Todd Raven, felt the boys needed a place to compete other than the streets, said shop co-owner Chris Cheshire.

The Body Shop Boys’ newest member already has something to brag about around the garage. Former Menendez athlete Matt Ng won his first local match at Rumble in the Ancient City mixed martial arts event at Ketterlinus Gym. Ng recently moved back to St. Augustine. It wasn’t long before Ng became one of the Body Shop Boys, training for fighting events weeknights at Edwards Paint and Body.

“Everybody has something to teach,” Ng said. Fighting at 158 pounds, Ng said he’s trained all over and most recently fought in Georgia. He said the St. Augustine event was a great thing to get people interested in the sport.

“It’s a good-sized event,” he said.

“I do it because I love it. I’d really like to do more. Ng wasn’t the only member of the Body Shop Boys to compete in the early matches. Joseph Green, who was not on the original schedule, picked up a victory over Michael Dukes in a submission grapple match. With Russell unable to fight Saturday, the main event

was probably the 155-pound title bout.

St. Augustine fighter Teddy Hudson came in with a 5-0 record and was the two-time defending Ancient City champion. Yet he was stopped by challenger Richard Evers.

“V2V” Communications a Hit

An “overwhelming majority” of drivers who have experienced technology that allows vehicles to communicate with each other have a highly favorable opinion of its safety benefits, according to data released today by the U.S. Department of Transportation (DOT). Together, the National Highway Traffic Safety Administration (NHTSA) and the Research and Innovation Technology Administration (RITA) have been working with the auto industry, state and federal partners to research the effectiveness and feasibility of connected vehicle technology that enables vehicles to “talk” to one another with Wi-Fi-like technology that could help prevent crashes altogether. The Department announced the results of six “driver acceptance clinics” that were held across the country at the Intelligent Transportation Society of America’s 2012 Annual Meeting. The pilot programs gathered feedback from 688 drivers who participated in tests of “vehicle-to-vehicle” communications.

An overwhelming majority of drivers would like to have the features included in their own vehicles, and most believe the technology would be useful in improving driver safety.

Enterprise Introduces Customer Repair Notification Tool

Enterprise Rent-A-Car has launched a new customer repair status notification system for collision repair shops that uses text and email messages to keep customers updated on the status of vehicle repairs.

Enterprise said the new customer repair status notification system was developed in response to studies conducted by J.D. Power & Associates that revealed customers of all ages prefer to receive repair status updates through email and text messages. The system is now part of Enterprise’s Automated Rental Management System (ARMS) suite of products.

The feature allows shops to update all of its customers, not just its Enterprise rental customers, through either customized or automated messages. The system also provides shops with a written record of information communicated to customers to help avoid misunderstandings, Enterprise said.

The system is available to all body shops that use the ARMS Automotive Data Manager application, Enterprise said. For more information, visit ARMSAutoSuite.com.

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Matt Ng throws a kick in his bout with Bert Smallwood during Saturday’s Rumble in the Ancient City mixed martial arts event at Ketterlinus Gym. Photo by Gary McCullough

“It was awesome,” Evers said. “I love to fight like that. I was nervous and excited,” he said. Evers came out aggressively and put Hudson into the ropes multiple times. However, Hudson never really panicked and kept himself in the fight.

Knowing how close the match was, both fighters came out swinging wildly in the final round. Neither contender was able to dominate, and Hudson reacted with complete disappointment when the winner was announced.

46 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

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Forgetting to Use Blinkers Caused 2 Million Accidents

Blink, blink. A new study suggests failure to properly use turn signals causes 2 million accidents annually, a more serious problem than distracted driving.

When’s the last time you used your own turn signals? According to research by the Society of Automotive Engineers, drivers either neglect to use their signals when changing lanes, or fail to turn the signals off 48% of the time. And when making a turn, the failure rate is around 25%. That works out to 2 billion times a day drivers fail to use signals, or 750 billion times annually.

A lack of courtesy? Laziness? Poor training? Whatever the reason, the SAE study says the problem results in about 2 million roadway collisions annually. That’s more than twice the 950,000 accidents linked to distracted driving, which has become one of the central topics of the U.S. Department of Transportation under Sec. Ray LaHood.

“This is a first of its kind report on a subject that amazingly, has never been studied,” said Richard Ponziani, P.E., President of RLP Engineering and author of the report. Yet, despite the fact that turn signals are simple, ubiquitous and “extremely effective,”

there is an epidemic lack of compliance even though “all drivers have an ongoing duty to use it, just as they have a duty to stop at a stop sign or at a red light.”

Anecdotal evidence suggests that police put little effort into enforcement, less than they devote to speeding, or running stop signs and red lights. Other than shifting priorities, the new study suggests an alternative that it dubs the “Smart Turn Signal.”

They “are the perfect complement to the Stability Control System since Stability Control predominately prevents single-vehicle crashes, whereas the Smart Turn Signal prevents multivehicle crashes,” suggested Ponziani.

Such a system would automatically shut off a turn signal, likely by timing out after a set delay or by detecting when a vehicle has finished changing lanes, much as today’s cars automatically cancel the signals after making a turn at an intersection.

For scofflaws who simply don’t use their signals, the system would work much like a seatbelt reminder. It would be able to sense if drivers routinely ignore their turn signals and start to flash what the study calls a “friendly” reminder.

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Taiwanese Auto Parts Makers Eye Recovering US Market

Sales of new cars in the U.S. grew 10% from the same period of last year, showing a positive sign for that market, as well as good news for major auto-parts suppliers in Taiwan.

Industry sources said that major American automakers are optimistic that the U.S. new car market will reach about 15 million units this year, and Taiwan’s suppliers of original equipment (OE) parts to American automakers can expect bigger orders.

Hota Industrial Manufacturing Co., Ltd., a major supplier of transmission parts, for example, currently indirectly supplies differentials and torque converters to the Big-Three American carmakers through major customer BorgWarner, is preparing for increasing orders this year.

In the third quarter of 2011, Hota won an order for torque-converter parts for Chrysler`s pick-ups, saying that the order volume has been increasing month by month, leading to its record-high monthly revenues in the first three months this year.

Increasing orders from the U.S. and smooth exports to China motivate institutional investors to forecast that Hota`s revenue could challenge a new

Shop Owner Arrested in ‘False Auto Theft’ Allegation

Massachusetts police arrested a man on charges of stealing a car from a body shop, then arrested the owner of the body shop on charges of filing a false stolen vehicle report and misleading or lying to police during the investigation.

The 2007 Acura TL sedan was reported stolen by Jose Munoz, 41, owner of Munoz Auto Body, 11 Alden Court, in Lawrence, MA, on April 26.

Police said Munoz knew who had stolen the car and agreed to come to the station to speak to police. Munoz said he had sold a Honda Accord to Gorki Rafael “Bebo” Gonzalez, 26, of 25 Hale St. Gonzalez came back to the shop April 25 saying he didn’t like the color of the Honda and wanted his Give us your opinion on matters the industry. moneyaffecting back, which Munoz said he kmangum@autobodynews.com wouldn’t do.

Munoz told police he went to the paint room to paint another car, and when he returned to the office, nopublisher@autobodynews.com ticed the Acura that had been parked in front of the business was missing. A security video showed Gonzalez entering the office, taking the keys to the Acura, then driving off in it.

Munoz told police he called Gonzalez, who told him he would regot his money The source for timely turn the Acura whenToheadvertise back for the Honda. call Joe Momber at: information that every Munoz told police he agreed to 800-699-8251 pay Gonzalez back in return for the body shop needs!

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high of NT$3 billion (US$100 million) this year.

The aftermarket (AM) replacement parts market in the U.S. is also expected to benefit from increasing new car sales, said industry sources.

Taiwan, as the largest supplier of AM collision replacement parts to the U.S. market, is also expected to win more orders.

Tong Yang Industrial Co., Ltd., the world`s largest maker of AM plastic body parts, began capacity expansion for AM products at its headquarter factory in Tainan, southern Taiwan in 2011, and has raised capacity of plastic parts, sheet-metal parts and cooling-system parts by 23%, 75% and 73%, respectively, hence is fully prepared for increasing AM-parts orders from the recovering U.S. market.

Crispin Wu, Tong Yang`s president, pointed out that employment in the U.S. has shown recovery, and consumer spending in February set a seven-month high, in addition to new car sales growth in March, all of which show an almost confirmed economic recovery, which will also pump up demand for AM parts in the second half.

car, but then decided to go to the police to report the car stolen. Munoz admitted he knew who had taken the Acura but didn’t provide that information to the officer who took the report. He told police Gonzalez had threatened to kill him if he went to the police.

During the interview at the police station, Munoz received several calls from Gonzalez threatening Munoz and his family because he knew Munoz was at the station.

Munoz was still at the police station when he received a call from his brother that Gonzalez was at the body shop with his friends, causing a scene.

Police went to the body shop and arrested Gonzalez, charging him with Contribute larceny of Want a motor to vehicle, extortion to by threat of injury and threatening to commit a crime.

Capt. Michael Driscoll said the investigation continuedpublisher@au and Munoz was arrested and charged with filing a false report of a motor vehicle theft, and misleading or lying to police during an investigation.

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