Southeastern June 2015 Issue by Autobody News

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Marion, SC, High School Student Wins SkillsUSA State Championship, Will Compete at National Level

Marion High School senior and student at the Academy for Careers & Technology (ACT) Zane Butler won the Skills USA State Championship for Collision Repair Technology held recently in Greenville, SC

Zane Butler, a senior at the Academy for Careers & Technology (ACT) and Marion High School won the Skills USA State Championship for Collision Repair Technology held recently in Greenville, SC. Butler competed in four phases; fixing dents, plastic repair, frame work and welding. Each hour and a half section was judged on how safely the contestant worked throughout the process, using the correct safety equipment, as well as how well the quality of work on the final product. He will be traveling to Louisville See SC SkillsUSA, Page 40

Employment Security Bill in GA Will be Revisited by State House of Representatives by Stacey Phillips, Assistant Editor

In Georgia, an employment security bill introduced to the state House of Representatives earlier this year is not scheduled to be heard again this legislative session. Bill HB500 addresses independent contractor compliance and misclassification. Introduced in February, the bill passed out of the House of Representatives Industry and Labor Committee on March 9 and was then withdrawn on April 2 and re-committed to the same committee. It will be revisited next legislative session in January 2016.

The bill proposes that services performed by an individual for wages shall be deemed to be employment unless: 1) the Department of Labor makes a contrary determination based upon evidence submitted of certain factors demonstrating that such individual has been and will continue to be free from control or direction over the performance of such services and as demonstrated by evidence that the individual is not prohibited from working for other companies; is free to accept or reject work assignments without consequence, is not prescribed minimum

VOL. 6 ISSUE 4 JUNE 2015

Lead Lawyer for MDL Plaintiffs in FL Discusses New Developments, ‘Bellwether’ Proposal by Stacey Phillips, Assistant Editor

Autobody News recently spoke to John Eaves Jr. of Eaves Law Firm about the recent developments with the antitrust multidistrict litigation taking place in Florida, in which body shops across the country are alleging “steering” and other retaliatory practices by the nation’s top insurers. Eaves is the lead attorney for the plaintiffs on the case: A&E Auto Body, Inc., et al vs. 21st Century Centennial Insurance Company, et al. He said that during their regularly scheduled monthly hearing in May, Florida Magistrate Judge Thomas Smith suggested preparing a “bellwether” case to move the lawsuit along faster. Typically, in a bellwether trial the judge and parties select a rep-

resentative sample from the parties involved to move the overall litigation toward a resolution. The Jackson, Mississippi-based firm is currently preparing a motion to implement this type of trial. Eaves explained that this often happens in a mass torte case and will speed things up tremendously. After this is implemented, Eaves will continue to file cases brought on by body shops in additional states and a court date will be set. In the meantime, the firm has been collecting affidavits and specific information from body shops and former adjusters across the country to include as part of the injunction they are filing. “We’ve been getting additional See New MDL Developments, Page 14

AAAS Prepares for Conference and Trade Show by Chasidy Rae Sisk

On June 11-14, the Automotive Aftermarket Association Southeast (AAAS) will hold their 2015 Annual Conference and Trade Show at the Sandestin Village of Baytowne Wharf in Destin, FL. This yearly event provides an op-

See GA Employment Bill, Page 8

AAAS will hold their 2015 Annual Conference and Trade Show at the Sandestin Village of Baytowne Wharf in Destin, FL

portunity for industry professionals to enjoy a great weekend filled with educational topics and networking opportunities. The event kicks off on Thursday evening with a Welcome Reception,

and on Friday morning, attendees will have the opportunity to participate in a fun deep sea fishing adventure in the Gulf of Mexico aboard the Destination which features a 20 by 20 foot fishing deck. At 2 PM on Friday, AAAS will hold their Board of Directors meeting, followed by the Chairman’s Reception at 6 PM. The educational portion of the event will commence on Saturday morning with AAAS Chairman Jarrett Liles welcoming attendees and delivering reports on the state of the association. The first guest speaker will be Larry Pavey, President of Federated Auto Parts, who will deliver his keynote presentation entitled “Aftermarket Changes and Trends Impacting You and Your Business.” Next, tax attorney Jeff Patterson will provide insights into the overwhelming process of third-party tax audits in “Preparing For and Facing a Third Party Government Audit.” See AAAS Trade Show, Page 6

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Contents

NATIONAL AAAS Education Foundation Announces 2015 Scholarship Winners. . . . . . . . . . 10 Allstate Joins GEICO in Rate Increase as Margins Fall . . . . . . . . . . . . . . . . . . 53 ARA Attends 2015 ISRI Annual Convention . 32 ASA Board of Directors Installed During Annual Business Meeting . . . . . . . . . . . 47 ASCCA/CAA Joint Legislative Day Focuses on Minimum Wage/Taxes on Labor . . . 22 Attorney General Reaches Settlement

Johnson’s attorney Cameron Mary said the incident was not a murder, reported Bullington. Police found a 9mm pistol in his home, which matched the 9mm shell casings that were found at the scene of the crime. Johnson had previously been released from the parish jail after posting a $200,000 bond, reported Bullington. On May 14, Criminal District Court Judge Arthur Hunter increased the bond to $1 million at Assistant District Attorney Abigail MacDonald’s request. This led to his rearrest. Second-degree murder carries a sentence of life in prison with no parole upon conviction, reported NOLA.com.

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

Allan Vigil Ford-Lincoln . . . . . . . . . . 43 Athens Dodge-Chrysler-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 16 Audi Wholesale Parts Dealers . . . . 42 Axalta Coating Services . . . . . . . . . . 2 BMW Wholesale Parts Dealers . . . . 53 Car-Part.com . . . . . . . . . . . . . . . . . . 10 CarcoonAmerica Airflow Systems . 35 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 37 Chief Automotive. . . . . . . . . . . . . . . . 7 Classifieds. . . . . . . . . . . . . . . . . . . . 54 Coggin Deland Honda . . . . . . . . . . 34 Crown Automotive Group . . . . . . . . 25 Dale Earnhardt Jr. Chevrolet. . . . . . . 4 Dent Magic Tools . . . . . . . . . . . . . . . 9 DJS Fabrications, Inc.. . . . . . . . . . . 56 Eco Repair Systems of North America, LLC. . . . . . . . . . . . . . . . 14 Equalizer Industries, Inc . . . . . . . . . 18 Ford Wholesale Parts Dealers . . . . 51 GlobalJig North America . . . . . . . . 21 GM Wholesale Parts Dealers . . . . . 45 Gus Machado Ford . . . . . . . . . . . . . 26 H & S Autoshot Mfg. Co. . . . . . . . . . 9 Hendrick Automotive Group . . . . . . 11 Hendrick BMW/MINI . . . . . . . . . . . . 31 Hendrick Dodge . . . . . . . . . . . . . . . 12 Hendrick Honda Bradenton . . . . . . 38 Herkules . . . . . . . . . . . . . . . . . . . . . 15

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

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COLUMNISTS Attanasio - Are You Prepared for Google’s Mobilegeddon? . . . . . . . . . . . . . . . . . . 48 Attanasio - Midnight Body Shops Come Out Into the Light . . . . . . . . . . . . . . . . . 34 Attanasio - resqme™ Vehicle Escape Tool and Related Products Have the Potential to Save Lives . . . . . . . . . . . . . . . . . . . . 52 Franklin - Limited Growth? What to do about it!. . . . . . . . . . . . . . . . . . . . . . . . 20 Luehr - Mastering Implementation . . . . . . 30 Yoswick - CIC Panel Discussion on Electronic Parts Procurement Takes Unexpected Turns . . . . . . . . . . . . . . . . 32 Yoswick - Multiple Parts Suppliers, Body Tech Shortage, M2 Closes, Allstate Challenges No. 1 . . . . . . . . . . . . . . . . . 18

with Middle TN Auto Dealer . . . . . . . . . 40 Automotive Art Refinish System Comes to the U.S. . . . . . . . . . . . . . . . . . . . . . . 24 Axalta Launches Online Learning Training Campus . . . . . . . . . . . . . . . . . . . . . . . 43 Barn Finds in TX Estimated at $700,000 to be Auctioned at Indianapolis Motor Speedway June 12 . . . . . . . . . . . . . . . 50 Car-O-Liner® Names New Technical Director . . . . . . . . . . . . . . . . . . . . . . . . 23 CCC Information Services Buys DriveFactor Inc. . . . . . . . . . . . . . . . . . . 45 GM Reaffirms Commitment to Launching MyPriceLink. . . . . . . . . . . . . . . . . . . . . 15 GM to Invest $1B to Expand and Renovate National Historic Landmark, the Michigan Tech Center . . . . . . . . . . . . . . . . . . . . . 20 Lead Lawyer for MDL Plaintiffs in FL Discusses New Developments, ‘Bellwether’ Proposal . . . . . . . . . . . . . . . 1 Longtime I-CAR Executive Jeff Peevy to Lead Automotive Management Institute . 49 Mike Anderson Says “Choose Your Destiny” at WIN . . . . . . . . . . . . . . . . . . 36 Mitchell’s Q2 ITR Addresses Increase in Average Collision Repair Severity . . . . . 51 Mycrsmanager Management Software System Created to Save Shops Time & Money (Pick up from W) . . . . . . . . . 44 New Chief Fume Extractor Protects Body Shop Technicians from Weld Fume Particulates . . . . . . . . . . . . . . . . . . . . . 49 New GM Silverado Engineered for Better Serviceability During Collision Repair . . 46 NOLA Shop Owner Indicted in Homicide. . . 3 NYSACTA and LIABRA Review Aftermarket Parts Bill During 2015 Lobby Day . . . . 26 PartsTrader 3.0 Released with Efficiency Features . . . . . . . . . . . . . . . . . . . . . . . 53 PPG Show Truck Gets a Bold New Look. . 40 Pro Spot’s Virtual Welding Contest at Northeast™ . . . . . . . . . . . . . . . . . . . . . 53 Quik Video Technology Looks to Target Body Shops. . . . . . . . . . . . . . . . . . . . . 42 Seneca, MO, Body Shop Flattened by EF-1 Tornado, Sustains Most Damage Recorded in County . . . . . . . . . . . . . . . 35 Sherwin-Williams Partners with Toyota for Estimator Training. . . . . . . . . . . . . . 51 Subaru Maker Reports Profit; More US Capacity. . . . . . . . . . . . . . . . . . . . . 16 Takata Acknowleges 34M Defects, Struggles to Meet Air Bag Repair Demands . . . . . 50 The Martin Senour Company Announces 2015 Third Quarter Training Schedule . 40 Turbo Charge Your Dealer Body Shop ROI— Dashboard the KPIs . . . . . . . . . . . . . . . 16 Wheelmaker Superior Moves HQ from Van Nuys to Detroit . . . . . . . . . . . . . . . 53 WIN Congratulates 2015 MIW Honorees, Scholarship Recipients at Educational Conference . . . . . . . . . . . . . . . . . . . . . 39 WIN 2015 Educational Conference Addresses Wide-Ranging Industry Issues . . . . . . . 36

A NOLA body shop owner in eastern New Orleans was charged on May 15 by a state grand jury in the death of a man who was gunned down at his shop. Woodrow Johnson Woodrow was indicted by Johnson, 39, of an Orleans Parish 1407 Linden St., grand jury on May was accused of 15 for second-dekilling Joshua gree murder in the Jackson on Feb. Feb. 5, shooting 5. He was charged death of Joshua with second-deJackson, 29. Photo Credit: OPSO gree murder. Jackson, 29, was shot multiple times at the business in the 7500 block of Chef Menteur Highway, reported Jonathan Bullington, NOLA.com. According to the police warrant, Johnson and Jackson had gotten into a confrontation at the shop before the shooting. Jackson also sent Johnson a threatening message just before he was killed. After a detective identified him as the subject, Johnson surrendered to police the same day.

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REGIONAL 1919 Pierce-Arrow Wins Best in Show at Concours. . . . . . . . . . . . . . . . . . . . . . 9 AAAS Prepares for Conference and Trade Show . . . . . . . . . . . . . . . . . . . . . . 1 Ayden, NC, Body Shop Total Loss After Electrical Fire . . . . . . . . . . . . . . . . . . . . 4 CA, TX, FL, MI, and OH are the Top Five States for Vehicle Thefts with Keys Left Inside . . . . . . . . . . . . . . . . . . 50 Car-O-Liner® Florida Expands Warehouse & Training Center . . . . . . . . . . . . . . . . . 15 Employment Security Bill in GA Will be Revisited by State House of Representatives . . . . . . . . . . . . . . . . . . . 1 Fiat Chrysler Says Wrongful Death Award Excessive, Plaintiffs Blame Jeep’s Former Fuel Tank Design . . . . . . . . . . . . 4 FL Woman Jailed 24 Years for Drunk Tweeting and Driving . . . . . . . . . . . . . . . 4 Gary Mathews Car Dealership in TN Sues Kia . . . . . . . . . . . . . . . . . . . . . . . 14 Marion, SC, High School Student Wins SkillsUSA State Championship, Will Compete at National Leve . . . . . . . . . . . 1 NABC Members Showcase Recycled Rides™ at Spring Industry Events . . . . . . . . . . . 12 Tony Molla to Join ASA Staff in Virginia . . . 4 Toyota of Orlando, FL, Again Named Toyota Certified Collision Center of the Year. . . . 8 Vehicle Insurance Tax Dropped from Road Maintenance Bill in North Carolina . . . . . . 10 Wallace State, AL Collision Repair Students in High Demand as Industry Embraces Technological Advances. . . . . . . . . . . . . 6

NOLA Shop Owner Indicted in Homicide

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Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 27, 28-29 Hyundai Wholesale Parts Dealers. . 52 Jon Hall Chevrolet . . . . . . . . . . . . . 38 Kernersville Chrysler-DodgeJeep-Ram . . . . . . . . . . . . . . . . . . 55 Kia Motors Wholesale Parts Dealers. 41 Lexus Wholesale Parts Dealers . . . 48 Maaco Franchising LLC . . . . . . . . . 23 Martech Service Company . . . . . . . . 6 Mercedes-Benz . . . . . . . . . . . . . . . . 17 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 47 MINI Wholesale Parts Dealers . . . . 53 MOPAR Wholesale Parts Dealers . . 33 Nalley BMW. . . . . . . . . . . . . . . . . . . 34 Performance Automall . . . . . . . . . . 39 Porsche Wholesale Parts Dealers . 46 Priority Honda . . . . . . . . . . . . . . . . . 20 Radley Chevrolet. . . . . . . . . . . . . . . 30 Rick Hendrick Dodge-ChryslerJeep-Ram. . . . . . . . . . . . . . . . . . . . 8 SATA Spray Equipment . . . . . . . . . 13 Stateline Chrysler-Jeep-Dodge-Ram. 22 Subaru of Gwinnett . . . . . . . . . . . . . 30 Subaru Wholesale Parts Dealers . . 49 Tameron Hyundai . . . . . . . . . . . . . . 24 Urethane Supply Company . . . . . . 19 Valspar Automotive . . . . . . . . . . . . . . 5 Volkswagen Wholesale Parts Dealers. 42

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 3

Tony Molla to Join ASA Staff in Virginia

Industry veteran Tony Molla will join the staff of the Automotive Service Association (ASA) beginning May 11 as its new vice president. In this new position for ASA, Molla will participate in industry events and build industry relations, including those with original equipment manufacturers (OEMs). He will work closely with the Mechanical and Collision Division Operations Committees, as well as perform many other duties. Dan Risley, President/Executive Director of ASA, said the contributions Molla brings to the table will benefit ASA in its future. “ASA is poised for growth and adding a wellrespected industry veteran with all-star caliber talent such as Tony will benefit ASA members and the industry,” said Risley. “He embodies our philosophy and approach of working together with the industry, and we are fortunate to have him join our team.” Molla is currently the VP of Communications for the National Institute for Automotive Service Excellence in Leesburg, VA, where he has worked for 15 years. Prior to joining ASE, Molla spent nine years as the editorial director of Motor Age magazine and Automotive Body Repair News. He is an ASE-certified automotive technician, past president of the Automotive Communications

FL Woman Jailed 24 Years for Drunk Tweeting and Driving

A 22-year-old South Florida woman was sentenced to 24 years in prison after drunk tweeting and driving, which led to the death of two people. A Broward County judge also said Kayla Mendoza will remain on probation for six years after her release, reported wfla.com. In February 2015, Mendoza pleaded guilty to two DUI manslaughter charges in the November 2013 crash that killed two 21-year-olds, Marisa Catronio and Kaitlyn Ferrante. Evidence showed that before the Sawgrass Expressway accident, Mendoza tweeted “2 drunk 2 care.” Authorities later said that after a night of drinking with coworkers, her blood-alcohol level was almost twice Florida’s legal limit. The maximum sentence Mendoza faced was 30 years behind bars.

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Council and a regular presenter and moderator at many annual industry events. Molla is an honorary lifetime member of the Mobile Air Conditioning Society Worldwide and an associate member of the Society of Automotive Engineers. “My personal relationship with ASA goes back many years, and I am honored to continue my service to the industry as part of Dan’s management team,” said Molla. “As the premier industry association representing automotive service and collision repair businesses, ASA has a key role to play in giving a voice to those who keep America moving, and I’m excited at the opportunity to help grow the organization for the benefit of our members and the industry at large.” With more than 35 years of experience in the industry, Molla has worked at all levels from technician to service manager. He was also the automotive technical editor for the Chilton Book Company, writing service manuals and has authored more than a dozen technical and car-care manuals. Molla will be based in VA, with a long-term plan of moving to North Texas, where ASA’s national headquarters is based. Contact Tony at tonym@asashop.org or (703) 4703243.

Fiat Chrysler Says Wrongful Death Award Excessive, Plaintiffs Blame Jeep’s Former Fuel Tank Design

Fiat Chrysler Automobiles has asked for a new trial following one that ended early in April with a Georgia jury awarding $150 million to the family of a 4-year-old boy killed in a fiery crash involving at 1999 Jeep Grand Cherokee. Evidence and the law did not support that verdict in April, the company’s lawyers said in a filing. The filing with the Superior Court of Decatur County says the $120 million wrongful death award is more than 11 times the largest death award in Georgia history. The $30 million pain and suffering award is more than four times the largest award upheld in the state, it says. The filing added: “The jury’s stunning and unprecedented damage awards are grossly excessive.” The jury found Chrysler, now part of Fiat Chrysler Automobiles, was 99 percent at fault in the death of Remington Walden. The driver who slammed into the back of the Jeep Grand Cherokee was found to be 1 percent at fault. Jeep was a brand of Chrysler at the time and is now an FCA brand. Attorneys for the Walden fam-

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Ayden, NC, Body Shop Total Loss After Electrical Fire

A Pitt County auto body shop was a total loss after an early morning fire broke out May 1 in Ayden, according to fire officials. The smoke is what prompted a man passing by to call it in. The fire was reported at the shop located on Old Snow Hill Road. Emergency crews confirmed the 911 call was made at about 5 a.m. “It’s a big mess in there,” said Terry Allen, a friend of the shop owner. “My buddy, Russell’s shop here caught fire. That’s a shame, he just got it rented out about two or three months ago and started making some money off of it,” said Allen. “Upon our arrival, it was very well engulfed,” said Ayden Fire Chief Sam Jones, who says the fire didn’t go down without a fight. “Commercial, metal buildings like this are unfortunately very difficult to ventilate when it’s as involved as it was we found it,” said Jones. Fire officials said the cause of the fire was electrical in nature and was ignited through a panel box. Officials at the scene estimated at least $200,000 in damages.

ily argued that the placement of the Jeep’s fuel tank behind the rear axle made it more likely to cause a fire in the event of a rear-end crash, such as the one that led to the child’s death. Newer Jeep SUVs do not have gasoline tanks located behind the rear axle. U.S. safety regulators said they were ready to take action soon to accelerate recalls, including one for gas tank fires in Jeep SUVs. The 1999 Grand Cherokee was not included in a June 2013 recall of 1.56 million Jeep SUVs as the National Highway Traffic Safety Administration and FCA had agreed to limit the recalls. The safety regulator had earlier pushed for a wider recall of 2.7 million Jeeps.

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 5

Wallace State, AL Collision Repair Students in High Demand as Industry Embraces Technological Advances

Tim Grace has a list of collision repair job opportunities posted on his office window, ranging from businesses

and industries seeking employment from as close as Cullman, AL to as far away as Fort Walton Beach, FL. All have recently called Grace looking to fill employment gaps with potential Wallace State students. “I’ve never had this many jobs available for students. It’s hard to fill all of the requests. Technicians are getting older and retiring and a lot of younger guys aren’t there to fill the holes,” said Grace, Wallace State’s Collision Repair Department Head. “Technology is changing and the way we are doing things is changing. That keeps it from being a dead end street. The need for strong technicians is getting greater and greater. The job field is very broad, and there are good wages to be made out there.” Wallace State’s Collision Repair program consists of four semesters and is designed to train students to perform computerized estimates of repairs, repair and replace damaged Continued from Cover

AAAS Trade Show

When the business program resumes following a short break, “Dealing with Challenging Human Relation Issues and Situations in the Workplace” will be presented by Sherry Robertson, Vice President and Human Resources Director at IGO Insurance Agency. The educational segments will conclude with a discussion on the fastest growing retail sector in the auto care industry in “E-Tailing in the Automotive Aftermarket,” which will be presented by Behzad Rassuli, Vice President of Market Intelligence for the Auto Care Association. On Saturday afternoon, attendees can enjoy some relaxing fun and networking opportunities at the Baytowne Raven Golf Course as AAAS holds their annual Bell/Hines Memorial Scholarship Fundraiser. In addition to competing for prizes in various categories, participants in the fourperson scramble will be improving the future of the industry since funds raised at the golf tournament benefit the AAAS Education Foundation’s Memorial Scholarships.

automobile parts using computerized measuring, frame repair and glass replacement to working with fiberglass and plastics and apply paints, waterborne, solvent and clear coat finishes. Grace, who is in his 16th year with the Wallace State Collision Repair program, encourages all students in the program to become certified

not repairing them correctly. They are repairing them like they did in the 1960s and 1970s. Our metals have changed. Collision management has changed. The design of a car has changed. A lot of things are changing to make cars safer, and people need to be educated on those things in order to protect the occupants inside of a car,” Grace said. “For instance, a technician

through I-Car, the National Automotive Technical Education Foundation and Automotive Service Excellence standards. New technological advances have affected many industries, and the collision repair world is no exception. “Technology is growing so fast. It’s hard for people to keep up, but we are embracing it. We have a lot of technicians repairing cars today who are

today has to be able to read all electrical components of a car. If you change a mirror or door handle, you have to tell the car that you put the new part on it. If not, that sets your service engine light on.” According to I-CAR, the annual average salary for a technician in 2013 was $52,000. In addition, collision repair painters were making as high as $200,000 annually and body

“The need for strong technicians is getting greater and greater. The job field is very broad, and there are good wages to be made out there.” —Tim Grace, Collision Dept Head

Randal Ward, President of AAAS, explains why industry professionals should plan to attend the association’s annual conference. “Our speakers are industry leaders and experts with valuable insights and timely information that will help you lead your business, plus it offers a fantastic opportunity to build and renew friendships, as well as to network professionally in person. There’s a perfect mix of valuable information, good company, food, fun and fellowship!”

AAAS 11245 Chantilly Parkway Court Montgomery, AL 36117 800-239-7779 www.aaas.us

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technicians were making as high as $100,000 annually. Certain shops were paying as much as $52 an hour for body repair and painting, $62 an hour for frame repair and measuring and $72 an hour for mechanical and electrical repairs. Car Max, Joe Hudson’s Collision Center, Limbaugh Toyota, Earl’s Body Shop, Fontaine Trailer Company, Howard Bentley Buick GMC and Express Oil Change Tire Engineers are among the companies who have recently contacted Grace about filling potential job openings with Wallace State students. Grace has recently added three short-term certificate opportunities for students. The short term certificates are refinishing (painting), structural (framing and alignment) and unstructural (body filler, working with metal parts). Grace is also planning to add an aluminum station to the shop. Wallace State’s summer registration for collision repair and all other classes is currently underway. For more information about the collision repair department, contact Grace at 256.352.8152 or at tim.grace @wallacestate.edu. For more information about Wallace State, visit wallacestate.edu.

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Toyota of Orlando, FL, Again Named Toyota Certified Collision Center of the Year

Toyota of Orlando has won the Toyota Certified Collision Center Triple Crown Award. It is the second time the dealership has received the accolade; the previous honor came in 2012. The award was presented to Toyota of Orlando’s Scott O’Connor, Collision Center Director, by Jeff Hilton, Wholesale Parts and Collision Manager for Toyota Motor

the spirit of certification. According to Hilton, more than 175 Toyota Certified Collision Center dealers nationwide competed for the prize. “This award is quite an achievement in the Toyota family,” said Hilton. “Centers are evaluated on a point system based on customer satisfaction; manager, estimator and technician certification; facility and

The Toyota of Orlando team accepts the Toyota Certified Center Triple Crown Award

Sales, at a dinner held April 22 at Fogo de Chão in Orlando, FL. O’Connor accepted the award on behalf of the dealership’s 42 collision center employees, all of whom attended the event along with their guests. The Triple Crown Award is presented annually to the Toyota dealer collision center that best exemplifies

equipment requirements and other benchmark achievements as well as sales volume. By winning twice in three years, it’s obvious Toyota of Orlando is doing something very right.” Toyota of Orlando moved to its current location three years ago. The new facility helped the dealership qualify for award competition.

8 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

“It was an honor to receive this award the first time; earning it again makes us very proud that our efforts continue to be recognized,” said O’Connor. “Our success comes from the hard work and exceptional abilities of our entire team. Additionally, the support and training we receive from Toyota, Ben’s Paint Supply and PPG experts keep us at the leading edge of refinish technology. In particular, PPG’s MVP program has been instrumental in helping us reach our goals of maximizing productivity without compromising the quality our customers demand.” The dealership has been a PPG customer since it opened. Six years ago it converted to the ENVIROBASE® High Performance waterborne system. “We look at Toyota of Orlando as a showcase for what can be accomplished with great products and great support,” said Matt Boyd, PPG Territory Manager. “Scott and his staff have taken advantage of our Green Belt Training program, applied lean processes and earned the respect of Toyota’s management. We are very pleased to congratulate the dealership.” For more information about PPG products and the MVP program, call (800) 647-6050 or visit www.ppgre finish.com

Continued from Cover

GA Employment Bill

hours to work or does not have a minimum number of orders to be obtained; has the discretion to set his or her own work schedule; and has no territorial or geographic restrictions; and 2) the individual is customarily engaged in an independently established trade, occupation, profession or business or the Internal Revenue Service makes a determination of non-employment status due to an SS-8 issuing. The bill also proposes that the Department of Labor shall investigate reports of misclassification and maintain a web-based system of notifying the department of employment of worker misclassification. Bill HB500 can be viewed online: https://legiscan.com/GA/text/HB500

Autobody News will keep readers posted on any new developments with this bill.

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1919 Pierce-Arrow Wins Best in Show at Concours

A 1919 purple Pierce-Arrow Model 66 A-4 Tourer bought last year by Savannah philanthropist and businessman Robert S. “Bob” Jepson Jr. won Best in Show at the third annual Pinehurst,

gine with its 825-cubic-inch displacement was the largest engine made for automobiles at the time. “I think it is the outlandish color that gets people’s attention—bright

Savannah philanthropist and businessman Robert S. “Bob” Jepson Jr.’s 1919 purple Pierce-Arrow Model 66 A-4 Tourer won Best in Show on Saturday at the third annual Pinehurst Concours d’Elegance in North Carolina. The car has previously won best in class at Amelia and Pebble Beach Concours

NC, Concours d’Elegance on May 2, reported the Savannah Business Journal. “We are so thrilled that we came up here, just a beautiful part of the country,” said Jepson. “And what a bunch of beautiful cars that were here today.” The 1919 Pierce-Arrow, which stands 7 feet tall at its highest point and weighs 7,000 pounds, was once customized for silent movie actor Roscoe “Fatty” Arbuckle. Its six-cylinder en-

purple with white tires,” Jepson said. “It’s what we call our ‘low profile car’… It gives you good exercise because it’s a beast. “To turn it in any kind of tight configuration I feel like Popeye with these great big arms. … The public loves the car because it’s so outlandish.” The vehicle enjoyed a total “nuts and bolts” restoration in 2007 by Lon Kruger of Scottsdale, AZ. It previously won best in class at Amelia and Pebble Beach Concours.

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 9

Vehicle Insurance Tax Dropped from Road Maintenance Bill in North Carolina by Matt Burns, www.wral.com

A proposed vehicle insurance tax has been removed from legislation designed to reduce North Carolina’s dependence on gas tax revenue to build and maintain highways. House Bill 927 called for a 6.5 percent tax on automobile insurance premiums, which would have added about $106 to the average auto policy. But sponsor Rep. John Torbett, R-Gaston, said during a House Transportation Committee meeting May 5 that the bill remains “under construction” but that section “is not going to be in there.” Torbett didn’t say why the insurance tax was dropped, but it was clear it has drummed up intense opposition. Even after Torbett announced the change, Insurance Commissioner Wayne Goodwin and a lobbyist for the Insurance Federation of North Carolina told committee members what a bad idea an auto insurance tax would be. “It would amount to the highest across-the-board increase on car insurance in 30 years,” Goodwin said, noting that North Carolina has the lowest auto insurance rates in the nation. “This 6.5 percent—or higher—increase would definitely be passed on to drivers by insurance companies regardless of their driving records or how much or

how little they drive,” he added. Insurance industry lobbyist John McMillan said the tax could spark retaliatory taxes by other states and could drive some insurers out of North Carolina. The bill still calls for raising the fees for various services performed by the state Division of Motor Vehicles by 50 percent, such as a vehicle registration going from $28 to $42 a year and a learner’s permit

transportation programs over the next four years, Torbett said. Sixty percent of the revenue would go toward paving state highways—the money would be divided equally among the 100 counties—with another 10 percent to help cities pay for resurfacing their roads. Dredging shipping channels and other work to upgrade the ports at Wilmington and Morehead City would get 20

rising from $15 to $22.50. The highway use tax paid when a vehicle is purchased and sales taxes on rental cars also would go up under the proposal. Meanwhile, the bill would lower the gas tax from 36 to 30 cents per gallon. That change would have occurred anyway on July 1, but lawmakers in March put a floor under the tax to prevent a projected loss of $400 million from such a drop. Even with a lower gas tax, the fee increases and the shifting of some costs, such as money for the State Highway Patrol, from the Highway Fund to the state’s general budget would generate between $485 million to $593 million a year for

percent of the money, with the final 10 percent earmarked for bridge repair and replacement. “We can’t kick this can down the road because it has been kicked so long there’s not much of a can left,” Torbett said of long-delayed efforts to address highway maintenance needs. Basing transportation funding on gas tax revenue is akin to funding schools with corn futures prices, he said, noting gas prices are too volatile. Also, increases in vehicle fuel efficiency continue to eat into the amount the tax raises each year. Moving to more of a fee-based system “spreads the pain around” and helps

“This 6.5 percent—or higher—increase would definitely be passed on to drivers by insurance companies regardless of their driving records or how much or how little they drive” —NC Insurance Commissioner Wayne Goodwin

AAAS Education Foundation Announces 2015 Scholarship Winners by Chasidy Rae Sisk

Since 2005, the AAAS Education Foundation’s (AAASEF) Scholarship Program has provided deserving students with financial assistance. These scholarships are available annually thanks to the generosity of AAAS members and friends as well as the dedication of AAAS’s volunteers. Priority is given to association members, their employees and their family members who are pursuing a post-secondary education. Last month, AAASEF Chairman Clyde Darville of 3-D Service in Tampa, FL proudly announced the winners of the 2015 AAASEF scholarships for the 2015-16 academic year. In order to receive an AAASEF scholarship, students must be sponsored by an association member. This year’s scholarship recipients are: Kyle Beasley of Honoraville AL; Lauren Lewis of Greenville AL;Patrick Rumore of Birmingham, AL; Cole Turner of Wetumpka, AL; and Alex Ward of Bainbridge, GA. AAASEF also awarded six memorial scholarships which are endowed by AAAS members, family and friends. This year, Justin Lee of Union Grove, AL and Whitney Nabors of Boaz, AL received the Stan Waits Me-

morial Scholarship, while the Gertrude Ellis Memorial Scholarship was awarded to Daniel Ellard of Mobile, AL and Olivia Kempwerth of Birmingham, AL. Rachel Berbert of Marianna, FL was awarded the Dick Bell Memorial Scholarship, and the recipient of the Al Hines Memorial Scholarship was Luke Liles of Tallahassee FL. In an effort to enhance and expand the capabilities of AAAS members, AASEF also reserves scholarship funds for association members and their employees who wish to further their education or enhance their skills through trade schools, junior colleges or OEMsponsored clinics. Because AAAS collaborates with the Global Automotive Aftermarket Symposium (GAAS) Scholarship Committee, students can be considered for the AAASEF and GAAS scholarships as well as other industry awards by completing one online application at automotivescholarships.com/ AAAS. Those interested in supporting the AAAS Education Foundation can make a tax-deductible donation to AAAS using the contribution forms under the Education tab at www.aaas.us. Donations can be mailed to AAAS Edcuation Foundation, 11245 Chantilly Parkway Court, Montgomery, AL 36117.

10 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

generate enough money to fix some immediate needs, he said. After four years, extra money raised through the system would be go back to the Highway Fund and the Highway Trust Fund for longerrange needs. Lobbyists for auto dealers and rental car agencies said they feel the bill unfairly targets them through higher taxes. “We’d encourage the General Assembly to look more at options that focus on usage,” said John Policastro, general counsel for the North Carolina Automobile Dealers Association. “Right now, this bill focuses almost entirely on anyone who buys or owns an automobile and doesn’t really address the usage of the automobile, how much the roads are being used.” Still, Chief Deputy Transportation Secretary Nick Tennyson praised lawmakers for “working on a serious problem at a serious scale,” and Barry Jenkins, cochairman of transportation advocacy group NC Go!, said the effort requires a lot of vision and “political guts” to accomplish. Lawmakers said some issues in the bill still need to be addressed, such as the budgetary impact of moving Highway Patrol costs and the loss of gas tax money for air-quality monitoring programs in Mecklenburg, Forsyth and Buncombe counties. Thank you to www.wral.com for permission to reprint this article.

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NABC Members Showcase Recycled Rides™ at Spring Industry Events National Auto Body Council (NABC) members showcased the organization’s signature Recycled Rides™ program at collision industry events across the country in April, highlighting the impact that reliable transportation provides for individuals struggling to rebuild their lives.

Rick Tuuri, Chair of NABC Recycled Rides, Leo Wasilewski of Gerber Collision-Douglasville and recipient Theresa Riggins

The April Recycled Rides events are among the 104 vehicles currently in progress or completed to date in 2015. “We have already hit the 50% mark of last year’s total Recycled Rides and thanks to our members, are well on the way to surpass the number of vehicles donated last year,” said Rick Tuuri of AudaExplore, a Solera Company and the Chair of NABC’s Recycled Rides program. The NABC’s Recycled Rides program brings together collision industry members to repair and donate vehicles to

individuals and service organizations in need. Insurance carriers, rental car companies, and salvage yards donate vehicles, which are then repaired as a volunteer effort by collision repair shops. Manufacturers and suppliers contribute to the effort by donating parts and materials. Highlights of the NABC’s Recycled Rides events in April include: ● Collision Industry Conference in Atlanta where Gerber Collision and GEICO teamed up to donate a 2009 Honda Accord to a single grandmother, raising two young granddaughters. She had lost her job, her home and up until recently, was living in a Family Promise shelter. LKQ Corporation also donated parts and materials. ● Automechanika in Chicago where two Recycled Rides vehicles were donated to help give women a second chance to

Recipient Caress Pouncy is all smiles in her new Recycled Rides vehicle donated by CARSTAR of Mundelein, Illinois and Allstate Insurance

12 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

jumpstart their lives. A young woman who fell into trouble with school and the law as a teenager after the death of her parents, was selected as recipient for a 2010 Nissan Altima donated and repaired by CARSTAR of Mundelein, Illinois and Allstate Insurance. With the support of the Women With Drive Foundation, which nominated her for the Recycled Rides program, she recently completed training to be a welder, joined a union and has a new job with a local construction company. A second vehicle was donated at Automechanika to the nonprofit group Another Chance Outreach Center, based in Gary, Indiana, which provides support services and programs to veteran, battered, and ex-offender women. The refurbished 2006 Toyota Prius, donated and repaired by 1-Collision Schererville in Indiana and State Farm Insurance, will help the organization provide transportation to participants in the residency program as they transition back into independent living. ● The PPG Automotive Refinish Spring MVP Conference in Palm Desert, CA was the setting for a fourth NABC Recycled Rides presentation in April. Allstate Insurance and Ben Clymer’s The Body Shop teamed up to donate a 2009 Toyota Camry to a Coachella Valley single mother and her young children. PPG

Automotive Refinish donated paint and materials. Vehicle titling and registration services were also donated by 1-800 Charity Cars for these events as well as many other Recycled Rides nationwide.

Participants in the Recycled Rides presentation – Ben Clymer, Jr., recipient Rosa Magana, Palm Desert Mayor Susan Weber, Bobbie Neff of Community Connect, Domenic Brusco of PPG Industries, and Rick Tuuri of AudaExplore, a Solera Company

“Recycled Rides is a life-changing experience not just for the recipient but for everyone who participated and contributed to these vehicle donations,” said Chuck Sulkala, Executive Director of the NABC. “We are very proud that through our Recycled Rides program, members of the National Auto Body Council demonstrate the professionalism and integrity of the collision industry by providing many struggling families with the keys they need to help improve their quality of life.”

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 13

Continued from Cover

New MDL Developments details from the shops; those kinds of details that show the collaboration within the insurance industry in order to oppress the shops collectively,” said Eaves. “We are 90 percent prepared to file an injunction to stop the steering and retaliatory practices of those body shops that we represent.” He said that any shop owner or employee that has proof or evidence he or she would like to share can be added to this injunction, whether or not Eaves Law Firm is representing them. “We still want all we can get to make this a clear case to truly show the judge at the next phase what the shops are enduring,” said Eaves. Originally filed in February 2014, the antitrust suits were consolidated in August and now more than 500 auto body shops in 36 states are part of the multi-district litigation. Earlier this year, Judge Gregory Presnell had dismissed a large portion of the federal lawsuits without prejudice, meaning they can be re-filed. This was followed by a dismissal of

cases in Louisiana, Tennessee and Utah in April. Eaves is currently rewriting the lawsuits to include more specific information from the shops. Another recent development occurred in April when defendant Old Republic Insurance Company moved for entry of sanctions, including an award of attorneys’ fees and expenses against the plaintiffs for “…asserting frivolous claims unsupported by existing law and lacking in evidentiary support and for engaging in vexatious litigation for the improper purpose of harassing Old Republic and needlessly increasing the cost of litigation,” according to court documents. In response, the plaintiffs stated that the “Defendants Motion for Sanctions is without legal or factual merit. It is effectively a regurgitation of arguments previously made and already ruled upon by the Court. The Motion fails to put forward any facts or authority to establish the allegations against

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Defendant are frivolous. Denied by Defendant? Yes. Frivolous? No.” The plaintiffs went on to request that the Motion for Sanctions be denied. Regarding Old Republic’s Motion for Sanctions, Eaves said “We don’t believe there is any merit. We have a good cause, and a good case and that is a standard defense attorney tactic that’s used. I think you’ll see pretty soon that the judge will not honor that request.” Old Republic is represented by Fox Rothschild LLP and lawyers for the insurance company did not respond for comment. No decision had been made by Judge Presnell as of press time. The next regularly scheduled hearing for the multi-district lawsuit is Friday, June 5. Anyone with information that would like to share with Eaves Law Firm, should contact steve@eaves law.com

Gary Mathews Car Dealership in TN Sues Kia

Kia’s oldest dealership in Tennessee is suing the carmaker after receiving a letter terminating their contract in three months due to poor sales, Nashville Post reports.

Clarksville-based Gary Mathews Kia is suing the Korean automaker

Clarksville’s Gary Mathews Kia is suing for breach of contract back in February 2013, and disputing Kia's claims of insufficient KiaBcertified mechanics and slow. The dealership is seeking damages and costs, according to the Post.

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GM Reaffirms Commitment to Launching MyPriceLink

GM announced on May 12 that the company is still committed to its collision parts initiative, MyPriceLink. MyPriceLink is a free automated “real time” pricing program devel-

oped by GM that provides Genuine GM collision parts to the market that are priced up-front during the initial repair estimate. In November 2014, GM announced the implementation of MyPriceLink. A week later, the company delayed the launch based on industry feedback and said it was going to work on enhancing and streamlining the workflow for all collision industry partners. Since then, the company has gained feedback from industry players including the GM Dealer Network, information providers, dealer management systems, independent

body shops, collision associations and insurance providers. In addition, GM has been working with industry estimating suppliers such as AudaExplore, CCC Information Services and Mitchell International to integrate with MyPriceLink. In the interim, GM has continued to publish list prices for collision parts. The company said the next step prior to launching the product is a market test planned at various locations this summer. “We are taking this step to ensure MyPriceLink, when launched, will be an integrated technology solution that the collision industry will be able to use with minimal disruption to their existing workflow,” GM said in a press release. “GM appreciates the industry interest and support MyPriceLink has received and looks forward to announcing the official industry launch of MyPriceLink in the near future,” the company added. “GM is committed to improving and streamlining processes that allow us to provide our customers with original parts, ensuring proper fit, function, safety and appearance, and returning their vehicle to pre-accident condition.”

Car-O-Liner® Florida Expands Warehouse & Training Center

Car-O-Liner® announced on May 15 that Car-O-Liner Florida, located on the west coast of the Sunshine State, Bermuda and the Caribbean, has opened an expanded warehouse and training center in Plant City, FL.

“The new building design maximizes space for efficient order fulfillment, customer relations, as well as practical hands-on product interaction and classroom curriculum,” said Steve Smith. “Car-O-Liner Florida is committed to supporting their local customers through this expanded facility,” said Doug Bortz, Director, Sales & Marketing for Car-O-Liner. “The additional footprint reinforces the strong customer service realized by our Florida customers and we are proud of Steve’s dedication to Car-O-Liner.”

The Car-O-Liner Florida location has recently expanded and opened a training center

The facility includes 7,750 square feet, of which over 5,000 square feet is climate-controlled for warehousing equipment, clamp rentals and parts, and general office space. A 420-square-foot classroom seats 12 students, and the hands-on area includes a Benchrack, Vision, and a twin post lift with M-802 for measuring. Car-O-Liner Florida will lead monthly I-CAR certified training classes as well as courses on frame alignment, measuring and welding. Steve Smith, Owner of Car-O-Liner Florida, has been a Car-O-Liner Distributor for 25 years.

The 420-square-foot classroom seats 12 students

For details on the training courses held at this location, view the training schedule on www.car-oliner.com. For more information on Car-O-Liner Florida, call 813-7592655, email service@car-o-liner florida.com or visit www.car-o-liner florida.com.

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 15

Turbo Charge Your Dealer Body Shop ROI—Dashboard the KPIs by Steven Feltovich, Manager of Business Consulting Services, Sherwin-Williams Automotive Finishes Corporation

Why are key performance indicators vital signs that clearly display whether your business is performing or failing? Key performance indicators (KPIs) are the gauges on the dashboard of your business. They provide the information necessary to identify changes or problems that can impact the business’s performance. Key performance indicators are quantifiable measurements which should reflect the critical success factors of your business. Many facets of your business are measurable; however, because an area can be measured does not define that specific area as a KPI. Areas can be delineated as KPIs if, and only if, they qualify as having the single most important attribute of a KPI— they can be directly linked to the success of the organization. It may be necessary to limit the number of KPIs in order to ensure that everyone within the organization remains focused on achieving the same goals and objectives. There are established industry-specific KPIs which are designed to provide leading information pertaining to operational performance and capacity utilization. Review of the data from our most recent “Body Shop Analysis” reports reveals that many collision repair facilities demonstrate near best-in-class operational performance, but they fail miserably in capacity and equipment utilization. When we analyze the most profitable collision repair shops individually, we find that they hit KPI targets in both operational performance and capacity utilization. This fact clearly indicates that KPIs are included in the determining factors of your business’s profitability. The winners in the future of the collision repair industry will be those shop managers and owners who optimize their organization’s operational performance and facility and equipment utilization. Through targeting KPIs in these critical areas of the business, collision repair centers can maximize profit and minimize costs and expenses simultaneously. Time is diminishing for those collision repair centers that are surviving on a daily basis by manipulating the business’s profit and loss statement. When the business is under increasing pressure to make concessions with insurance companies, to control rising operating costs, and to perform more vehicle collision repairs at lower overall profit margins, management must become focused on driving down the business’s costs and expenses. But few collision repair businesses are managing the whole financial picture, which includes resolving issues with customers and insurance companies, man-

aging receivables properly in order to limit exposure to a cash flow crisis, and securing daily working capital needs. Effective and efficient operation of any business demands keen decision-making skills, which stem directly from a properly informed management team. It requires more than just monitoring cash flow and management accounts to increase profitability and cash flow; it takes intense evaluation of the key “drivers” of your business. These “drivers” are the areas which have major influence on your business’s success; we refer to them as key performance indicators. Unfortunately, most of the businesses that we surveyed either are not tracking the right information or do not have accurate information necessary to make crucial business and financial decisions. Therefore, very costly mistakes are being made industry-wide during an uncertain economic time for our industry. Body shop and fixed operations managers are making significant business investments without accurate data to support their investment initiatives. Many expansion and consolidation plans are being built on a false sense of business security, when in fact the business is vulnerable to financial collapse with the current business model. Hence, in the future, the strongest organizations in terms of financial fitness and operational optimization will have the opportunity to thrive while their competitors suffer from shrinking profits and lack of sales. The collision repair industry still falls short of defining and measuring progress toward the most significant goals. Businesses tend to become overwhelmed with reaching the topmost speed and therefore neglect quality and accurate processes, which ultimately produce greater output performance. After you have established the right KPIs for your collision repair business, it will be easy to immediately determine what is not performing well and what needs acted upon. \ Some of the KPIs that we recommend for collision repair centers to monitor are as follows: ■ Average Repair Order (Dollar Amount) ■ Customer Closing Ratio ■ Sales per Estimator ■ Sales per Production Technician ■ Sales per Employee ■ Sales per Production Square Foot ■ Paint and Material Cost per Refinish Hour Sold ■ Gross Profit on Paint and Material Sold ■ Total Paint and Material Cost as a Percentage of Total Sales ■ Spray Booth Throughput ■ Metal Department Proficiency ■ Paint Department Proficiency ■ Gross Profit as a Percentage of

16 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

Sales ■ Net Profit as a Percent of Labor Sold

KPIs are not the silver bullets that will give you instant success, but they are the crucial components that are often overlooked in business management. You can also use the KPIs as a carrot to inspire your staff. People can be motivated to reach those KPI targets that you have implemented within your business structure. Post the KPIs so that your staff can see their progress in the critical areas of the business; discuss the KPIs with your staff; set up incentives that drive the organization toward achieving the business’s goals. From our research, many collision repair shops cannot recognize the real performance of their organization; they are driving the business at a high speed without any gauges on the dashboard to determine if they are capable of finishing the race. Extreme attention to the business’s financial performance, operational activities, and facility utilization will be necessary for those who plan to stay in the race. KPIs are just one necessary component of the equation; you must still have a clear and realistic strategy and the right management team and process in order to have the winning combination for sustaining business success.

Subaru Maker Reports Profit; More US Capacity

The maker of Subaru vehicles, Fuji Heavy Industries, reported a 21 percent surge in operating profit and surging sales delivered record earnings. The allwheel-drive specialist also said it would meet its North America sales target five years ahead of schedule and speed up plans to increase local production capacity here. The U.S. alone accounts for about 62% of Subaru’s global sales. In the latest quarter, U.S. sales rose 12 percent to 128,900 vehicles. In Japan, by contrast, sales slid 1.4 percent to 56,900, while China volume fell 14 percent to 13,100 units. Subaru plans to boost production capacity at its Indiana assembly plant and predicted Subaru would hit North America regional sales target of 600,000 vehicles five years ahead of schedule. It now targets 600,000 units in the current fiscal year ending March 31, 2016. North America sales rose 19 percent to 570,000 units in the just ended fiscal year.

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 17

Historical Snapshot

—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.

Multiple Parts Suppliers, Body Tech Shortage, M2 Closes, Allstate Challenges No. 1 with John Yoswick

20 years ago in the collision repair industry (June 1995) Shop owners at the Collision Industry Conference (CIC) in Hawaii expressed concerns regarding the number of part vendors that are being listed on a single, insurer-generated estimate. “It’s creating a tremendous burden on the repairer to follow up on the parts specified that are coming from different suppliers that have been searched by the computer system,” Kansas shop owner Bill Eveland said. “We have to make multiple calls to check the availability, we have them shipped only to find out that they’re COD, and then we find out in some cases that they’re the wrong parts and have to be returned. It’s happening more and more, and we’d like to have it addressed.” Eveland said he has received estimates with as many as nine different part suppliers designated – some from hundreds of miles away from his shop.

“We’re left either trying to find the parts locally at the same price or making multiple calls, buying them all over the country, and it’s getting out of hand,” he said. – As reported in The Golden Eagle. It’s an issue that, 20 years later, hasn’t gone away, and now it’s sometimes shops, struggling to meet insurer

15 years ago in the collision repair industry (June 2000) The next time you are trying to hire a technician to fill an opening at your shop, think about the 12,251 applicants - all with recent hands-on work experience in shops - who are no longer working as collision repair technicians. According to a recent study, every year more than 12,000 techs - almost 6 percent of the technician workforce - pack up their tool boxes and head off for other careers. That doesn’t include the 2,100 who retire, or the 5,250 who take other jobs (as estimators, for example) within the industry. That’s just the technicians who deIn 1995, Kansas shop owner Bill Eveland was among those cide for some reason that the expressing concerns about the growing number of parts collision repair industry isn’t suppliers being listed by insurers on a single estimate for them. demands, that may list a high number Those numbers, from an I-CAR of parts suppliers on a single estimate. Education Foundation study released

18 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

last year, go a long way in explaining why a lot of people are talking about a ‘technician shortage.’ The problem, it seems, is not just one of attracting more young people into the trade, but of keeping more technicians working in the trade throughout their productive years. There’s a common misperception in the industry that the technician workforce is aging. So few new techs are entering the industry, one posted message online claimed, that the average age of technicians is 53. In fact, the I-CAR Education Foundation study found the average age is under 36 – lower even than the national workforce average age. But there is a sharp decline in the number of technicians over 40 years old – much worse than the rate of decline of males in this age group in the general workforce. Reducing that decline – by keeping experienced techs working longer – could greatly reduce

the “technician shortage,” and at the same time make the industry much more appealing to the young people it also needs to attract. – As reported in Autobody News. The numbers have improved somewhat since then. In a similar study in 2013, the I-CAR Education Foundation reported that 6,928 technicians (4 percent of the total) left the preceding year for jobs outside the industry. The average technician age in 2013 had risen to just shy of 39 years old.

10 years ago in the collision repair industry (June 2005) Stuart Burns said there was occasional discussion around the M2 water cooler about how the company was doing, but it wasn’t until April 1 of this year that he really put much stock in it. “Some of the folks who’d talked to the paint and parts guys said they’d heard we were behind in paying the bills, but I didn’t think it was to a point where I needed to worry about it,” said Burns, a former technician (who didn’t want his real name used) with the California M2 chain of shops in California. “I looked at the stream of work

we had coming through this place, and I had a hard time believing they could be losing money.” Burns’ view of the situation changed dramatically in April when, a day after hearing M2 would be bought out by another consolidator, he found out his paycheck had bounced. The purported sale fell through, the doors at the 27 M2 shops were locked with as many as 2,000 in-process vehicles inside, and hundreds of employees found themselves with bounced paychecks for two or even three weeks of work. Estimates on the amount that suppliers and vendors were out end in the word, “millions.” There’s plenty of finger-pointing when it comes to placing blame for M2’s demise. What seems clear is this: Caliber Collision Centers in late March announced that it intended to acquire the M2 chain of shops. As those negotiations broke down in mid-April (Caliber’s Den Pettigrew said it just didn’t have enough time to complete its due diligence), M2’s major creditor, GE Capital, froze the company’s accounts and locked the shop doors in an effort to secure its investment (reportedly close to $5 million).

How good or bad a thing the M2 collapse is depends on who you talk to. At a sealed bid auction of M2 assets in late April, some of the former owners were able to get back in the collision repair business for a fraction of what they sold their businesses for to M2 just a few years ago. Given that M2 wasn’t the first consolidator to implode, it serves as a good reminder to shop owners to get as much cash, and retain as many real assets (i.e., real estate), when selling a business as one can. Accepting stock in the future success of the larger company as full or partial payment seems particularly risky in this industry. – As reported in Collision Repair Industry INSIGHT, June 2005.

5 years ago in the collision repair industry (June 2010) Allstate will have to replace several years of losses in market share with annual growth rates of 7 percent if it is to meet its goal – outlined in an internal memo obtained by Crain’s Chicago Business – to replace State Farm as the nation’s largest home and auto insurer within 10 years. Analysts say the goal could lead to Allstate acquisitions or a price war

similar to one in the industry a decade ago. No. 2 Allstate’s total annual premiums dipped 2.5 percent last year, compared to a 1.4 percent gain by State Farm. But Allstate, which controls 10.7 percent market share (compared to State Farm’s 18.1 percent) has some room to cut premiums; its loss ratio (amount paid out in claims compared to premiums received) last year was 58.7 percent, one of the best among the Top 10 insurers, while State Farm’s 72.9 percent was the highest. – As reported in CRASH Network (www.CrashNetwork.com), June 21, 2010. Rather than moving up to rival State Farm in terms of market share, Allstate has lost yet more ground since 2010. Geico blew past Allstate in 2013 to become the second-largest auto insurer; last year Geico had 10.7 percent market share, exactly what Allstate had in 2010. No. 3 Allstate had 9.9 percent market share last year. No. 1 State Farm continues to hold its own, with 18.7 percent market share last year, even more than it had in 2010.

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 19

On Creative Marketing

Limited Growth? What To Do About It! with Thomas Franklin

Almost every shop owner I speak to tells me he or she wants more business. But when we start talking about business growth, I begin to hear reluctance. Too much growth means hiring more people, which means more paper work, more reports to the government, more insurance, and on and on. It also means more capital investment to cover additional equipment and to cover accounts receivable during the interval between the time parts are purchased and checks arrive for completed jobs. Everyone wants to grow in profitability, but very few want to face the costs and pains of growth. In the end it all comes down to how much of a burning desire a shop owner or manager has to expand and grow his or her shop. When the shop owner began his or her shop many years ago, there must have been an intense drive to succeed. The growth must have been successful, perhaps doubling every few months, to bring the shop to the size it is today. So where did all of that enthusiasm go? It’s likely that some of our visions were unrealistic dreams that crashed when they met the reality of competition, government regulations, unreliable employees, unpredictable finances, faulty equipment, irrational customers and unrealistic insurance appraisers and adjusters. But if you’ve survived somehow you had enough enthusiasm, enough drive and determination to push on through those obstacles and continue to grow. So now here we are today. We’ve grown to a certain point, but

is there still enough drive and determination to grow more? Some of us have peaked and actually fallen back a bit. Others seem to have stagnated, staying more or less at the same point for years – maybe even enjoying the pause. And a few others continue to grow, but very slowly. But is that enough? Is the game still exciting? Can we still fire up the troops with a vision of greater growth, more jobs, better pay, more recognition? Or has everyone settled into a mental rocking chair of comfort and complacency, just doing enough to get along – with no more challenge or “fire in the belly?” “Stagnate” is defined as “Standing still; not flowing. Foul from long standing. To become dull or inert.” Not a pretty picture! I’ve found that the shop owners, who somehow overcame the “stagnation trap,” were motivated by a greater purpose. I recall John, a Hispanic man who put three children through college and provided a good living for his family and employees working out of a small 12,000 square foot shop. Then he expanded into a 30,000 square foot former industrial park. John’s son Danny finished his degree in business and came on board to work with John managing the business. I was there the day they opened the new shop. John’s eyes sparkled with the excitement of seeing a dream come true. No longer cramped in a tiny space, shuffling vehicles back and forth to get jobs out, John was thrilled with the opportunity to grow. His joy was in

GM to Invest $1B to Expand and Renovate National Historic Landmark, the Michigan Tech Center

General Motors, in a long expected boost for its research and development activities, will invest $1 billion to expand and renovate operations at its technical center in suburban Detroit. The plans for the 310-acre campus in Warren, MI, include new design studios and a multi-story IT building. The project also includes substantial renovations to existing r&d facilities, construction to accommodate additional testing areas and extensive office upgrades, GM said in a statement.

GM product chief Mark Reuss said work is “already underway” on the long anticipated project, which won municipal tax abatements in April. “The need to attract high quality employees is the real need,” Reuss said. “We're not here to be competitive, we're here to win. So when we do this in Warren, we’re not trying to compete, we’re trying to win.” Work is set to wrap up by 2018. The project is expected to generate about 2,600 new jobs once it is completed.

20 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

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

the realization of his dream to provide his family with more. Today the growth process has become more technical. Mastery of the new structural materials and computerized components of vehicles can determine a shop’s capacity for growth. But it is still the owner/manager leader who determines the vision of the shop. Getting technicians trained on the new processes will be a factor, but the real determinant may be the knowledge and skill of that leader. To get growing again, and possibly regain some of that early enthusiasm, a shop owner and/or manager may have to consider improving his or her own knowledge and skills. At a recent autobody association meeting, a key speaker was from Universal Technical Institute, an educational institution that offers training in collision, automotive and diesel repair. One attendee at the meeting said he had hired about a dozen graduates and all were

able to do their jobs immediately. Training for techs is readily available, but for up-to-date management skills the best choice may be the Automotive Management Institute (www.amionline.org). It was founded in 1989 to answer the demand for management education specifically for automotive service and collision repair professionals. The fields of study focus on five areas of business management: marketing and sales, operations and service, management and administration, financial management, and personnel and human resource development. Its accredited curriculum consists of more than 700 courses taught by more than 150 faculty members. Classroom courses range from 90-minute to five-day sessions. A core of self-study and on-line courses is also available. Upgrading the skills of the leader may well be the key to real shop growth in this age of rapid-fire technical advances.

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 21

Western Associations

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

ASCCA/CAA Joint Legislative Day Focuses on Minimum Wage/Taxes on Labor with Ed Attanasio

With major concerns about bills that can greatly impact their businesses, collision and mechanical repair companies came from all over the state to attend ASCCA /CAA’s Joint Legislative Day on April 14 in Sacramento, to meet with their local legislators and discuss two “hot button” bills, one that would extend a sales tax to labor operations and another that would increase the minimum wage in the Golden State. Legislative Day speakers included Pat Dorais, chief of the Bureau of Automotive Repair (BAR), to discuss provide the two organizations with an overview of recent BAR activities while praising the ASCCA/CAA’s ongoing relationship with the BAR and State Assembly Member Brian Jones. Following a welcome from Steve Vanlandingham, ASCCA state president, everyone was briefed by Jack Molodanof, the lobbyist for both organizations, who taught the members about the correct protocol to be used

while meeting with their legislators or their representatives. Molodanof always opens with a joke or amusing anecdote, but then he’s all business. Coaching the members of ASCCA/CAA about how to approach their local representatives is always crucial and that’s why Molodanof always sets down the rules first. Molodanof was happy with the State Assembly turnout, he said. “It Member Brian was a very successJones spoke to ful legislative day the ASCCA/CAA where the automomembers during their Legislative tive repair industry Day in Sacramento, converged on the CA on April 14 State Capitol and raised awareness and educated legislators and staff about the issues that directly impact their businesses. It was wonderful to see so many new faces at this year’s legislative day!”

22 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

With more than 90 scheduled appointments throughout the Capitol’s offices all day long, ASCCA/CAA members broke into smaller groups to cover as much territory as possible. As members searched the hallways looking for politicians’ offices, body shop and mechanical shop owners were intently focused on meeting with their representatives to discuss the two main bills on their radar. CAA Executive David McClune was pleased with the attendance and the fact that so many appointments were scheduled. “This is our big moment every year when we can meet with our political representatives,” CAA Executive David McClune said. “We can influence these bills before they become laws and provide valuable feedback for our key decision makers, so we tell our members to seize the moment and make the most of it. Most importantly, we can provide them with a look into how our

members run their businesses and all of the factors that can affect them and their livelihoods.” In addition to meeting with their legislators, a copy of the ASCCA Telematics Guiding Principles was provided to every congress or assembly person they visited. “Our members did an outstanding job communicating our concerns to our elected representatives,” Vice Chair of ASCCA Government Affairs Committee James Justus said. “A special thank you goes out to ASCCA member Jeff Stitch, who attended Legislative Day even though he suffered a heart attack two weeks prior to the event. Now that’s a dedicated member! Jeff also made a passionate talk about the importance of legislative day and why every mechanical and collision shop owner or manager should participate in communicating with the politicians who can greatly impact our future in this industry.”

SB 8 (Hertzberg): Tax Reform-Extending Sales Taxes to Services This bill intends to expand the state portion of the sales tax to all services, including automotive labor, but excluding health care services; education services and businesses with less than $100,000 in annual gross sales. The bill will have a disproportionate impact on low-income individuals, because they own older cars that require more frequent repairs. If passed, it will increase the cost of vehicle service and repairs making it less affordable for working families who require transportation. Specifically, the passing of SB 8 will increase the cost for auto body repairs and may cause some vehicles that can be safely repaired to be unnecessarily “totaled”. When car repairs become more expensive due to more taxes, people will forego the repairs, leading to potential vehicle safety issues. In addition, this bill will encourage the underground economy and result in more “midnight body shops” that can charge less and thereby create an unfair advantage in the marketplace. The ASCCA and CAA are both very concerned about this bill, even though it’s still a work in progress.

“There are some large gaps still in this bill and that’s why we’re taking a wait and see approach,” Molodanof said. “It’s more of an intent bill and it’s not even close to being finalized yet, but we want to be involved in the conversation, because obviously this can affect our bottom line in a huge way.”

SB 3 (Leno): Minimum Wage: Annual Adjustment This bill would increase the minimum wage on and after January 1, 2016 to not less than $11 hourly; on and after July1, 2017 to not than less $13 hourly and thereafter commencing January 2019 based on the California Consumer Price Index. This bill would have additional burdens on automotive repair shops to pay employees double the minimum wage when employees are required to bring their own tools. “We are obviously opposed to this bill, because it could literally cripple small businesses, including automotive repair companies,” Molodanof explained. “The bill would have significant ramifications on automotive repair shops because automotive repair employers are required to pay employees double the minimum wage when employees are required to bring

their own tools. It means going from the current $18 an hour ($9/hr. is the current minimum wage) to $26.00 an hour ($13/hr. minimum wage under SB 3) and that is a huge cost increase for shops. With other costs increasing all the time for shops, including increased worker’s compensation rates, increased energy costs and increased costs associated with the Affordable Care Act, this is just another thing for business owners to deal with and that’s why we oppose it.”

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Car-O-Liner® Names New Technical Director

Car-O-Liner® hired David Scribner as its Technical Director. Scribner brings over 25 years of experience in product line management, product development, design patents and worldwide OEM homologations of automotive and heavy-duty truck service equipment. His extensive background comes from prior executive positions held within Snap-On Equipment, Bosch Diagnostics and Hunter Engineering Company. “His responsibilities as Technical Director will encompass broad areas related to leadership in our business growth and applied technologies to the automotive and commercial divisions within our subsidiary of the Car-O-Liner Company,” said Jeff Kern, President of Car-O-Liner, The Americas. “We are thrilled to have David join the team, helping to ensure our company’s expansion as we continue to serve our valued customers with technically correct, OEM-approved, total solutions,” Kern added. For more information about Car-O-Liner, visit www.car-o-liner .com.

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 23

Automotive Art Refinish System Comes to the U.S. by Chasidy Rae Sisk

Some collision repair facilities in America may be noticing a new option in the selection of refinishing systems—Automotive Art has begun distributing their European paint line in U.S. markets over the past couple years. Glenn Camacho, President of Logicar, Inc., the company that distributes Automotive Art, states, “For the past ten years, we have been operating on the doorstep of one of the largest refinish markets, North America, and exporting to over 30 countries from our Miami distribution center. During this period, we have been restricted from selling our product in the U.S. due to licensing agreements with our primary factory, but a couple years ago, we acquired a stake in a European factory which opened up the ability to supply to the North American market.” Automotive Art is expanding throughout the U.S. and Canada, and

nologies to target the industry’s value segment, while delivering high quality refinish results. Automotive Art’s website boasts that they are “one of Caribbean’s best recognized brands with a reputation for high-quality products at exceptional prices;” however, “our brand and product line is new to the U.S. market, as we introduced the current Automotive Art product line to the U.S. market two years ago,” Camacho notes. The Automotive Art Refinish System was developed to offer body shops a complete line, from fillers to topcoats, of high-quality products under one brand, and factory testing ensures they achieve their mission of ensuring that all of their products work well together to achieve perfect results. Their world-class color documentation includes tools for accurate color matching, while their color formula retrieval software provides a listing of all vehicle manufacturers’

Camacho explains. “In summary, we offer a compliant basecoat system that shops will not need to change when legislation changes in their market,

Automotive Art booth at NORTHEAST 2015

which enables large and small shops to save significant money AND get a superb refinish results. Our state-ofthe-art chromatic colour tool offers a best-in-class colour matching solution, while saving valuable time for our customers. Finally, our customers enjoy being vested in a truly comprehensive product range that boasts a line-up that starts from Body-Fillers through to Top Coats, which results in better overall performance.” Furthermore, Camacho believes

Automotive Art’s customer philosophy is different because, “We do not buy shops and lock them into contracts with high prices. We want our brand to deliver value to our customer’s operations, allowing them to save money while delivering world class refinish results. In so doing our experience has been that we make our customers more profitable and competitive, and create true ambassadors for our brand, because their shops will save multiple times any upfront money given by the big brands over the course of the contract that they are locked into. We want our customers to use our products because they believe in the value and performance Automotive Art delivers; we don’t want to buy their loyalty, we want to earn it.” Camacho encourages anyone interested in learning about or switching to Automotive Art to contact them at their toll-free number. “We have several programs to assist shops in setting up Automotive Art in their shop and in training See Automotive Art, Page 46

Camacho answers questions about Automotive Arts at NORTHEAST 2015

their current focus is on the California market. They are achieving this expansion “by opening jobbers and giving them protected areas of distribution,” Camacho explains. They have also appeared at industry events to promote their refinishing line; in March, Automotive Art exhibited at AASP-NJ’s 2015 NORTHEAST Automotive Services Show. Their booth allowed Camacho and others to demonstrate the product’s usability and superior color matching technology. Automotive Art was founded in 1990 in Barbados, supplying the Caribbean market with the latest in European automotive paint. The company began as a distributor of Glasurit Refinish systems, but their founders saw a need to develop a complete line of products using world class tech-

colors, and contains scale interfaces to ensure perfect color mixing in both their low-VOC and standard basecoat systems, along with a full line of ancillaries. The company also boasts minimal start-up costs, full technical support and in-depth product training. Camacho believes that Automotive Art distinguishes itself from the competition because, “We provide a European high-quality, low-VOC solvent basecoat refinish solution that is superior to what our competitors offer, that is positioned to deliver significant value compared to the established Abrands, while being competitive with value brands in the market. Since it is low-VOC solvent-based, it is very productive over water-base products, and shops do not need additional investment in equipment or training,”

24 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

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NYSACTA and LIABRA Review Aftermarket Parts Bill During 2015 Lobby Day of all the bills of concern with supporting documents and talking points. On April 2015, representatives from In addition to briefly discussing each the New York State Auto Collision bill, Madeiros offered lobbying advice Technicians Association (NYSACTA) to aid attendees in their endeavors. The and the Long Island Auto Body Relegislators’ lobbying packets contained pairmen’s Association (LIABRA) travOEM bulleting, letters from coneled to Albany to lobby their state’s sumers and pertinent news articles, as well as a CD featuring informative videos, including Anderson Cooper’s report on “Auto Insurers Accused of Pushing Cheap and Sometimes Dangerous Repairs.” These packets were designed to aid the collision repair representatives in their discusCollision repair representatives from NYSACTA review sions with legislators. lobbying materials Before attending their schedassemblymen and senators. These repuled appointments, Kizenberger reresentatives included Ed Kizenberger, viewed A2880, an aftermarket parts bill Executive Director of both associawhich would require insurers to distions, Ed Kizenberger Jr., Director close the type of parts they pay for to Paul O’Connell, Director Joe consumers. It would also prohibit the Stelmokas and Hank Hancock. At use of anything except OEM parts on 8AM, they were joined at the Legislative Office Building by over 40 NYSACTA members from all over the state, coming from Syracuse, Utica, Albany, Westchester, Putnam, Rockland, Rochester, Buffalo, Binghamton, Newburgh, New York City and the five boroughs. These representatives from the collision repair industry met with lobbyist Pam Madeiros and the staff from Pam Madeiros and Ed Kizenberger discuss the associations’ proposed legislation with the group Greenberg Taurig LLC, NYSACTA’s Lobby Law Firm. vehicles that are two years old or newer. The event began with Madeiros He also discussed A6684, a parts prodistributing the schedule containing curement bill intended to prevent insurmembers’ appointed meetings with ers from mandating a particular vendor local representatives and reviewing from whom shops can purchase parts each group’s lobbying schedule. She and materials. As he discussed each bill, also provided members with lobbying Kizenberger answered members’ quespackets for both themselves and the tions about the proposed legislation and legislators with whom they met; conlobbying. tained within each packet were copies Beginning at 9AM, participants met with local legislators and their staffs to teach them about the collision repair industry and how their support of the bills would positively affect the daily lives of consumers and shops. Responses were favorable with many legislators and their staff due to their own experiences with claims, while others confessed to being completely dissatisfied and Ed Kizenberger reviews the CNN special with participants disillusioned with insurers’ by Chasidy Rae Sisk

26 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

tactics that forced them to use aftermarket parts or pay the difference for OEM parts.

Madeiros, Kizenberger Jr. and Mike Orso, President of NYSACTA, met with the Leaders of the Senate and Assembly, the Attorney General’s office and the NCOIL President. In the morning, Hancock, O’Connell and Stelmokas had an appointment with Assemblyman Murray and Senator Flanagan which resulted in both legislators agreeing to sponsor bills A2880 and Attendees meet with Assemblyman Murray who agreed A6684. Hancock, O’Connell, to sponsor both bills Stelmokas, Kizenberger and One NYSACTA member re- Madeiros also had a very productive counts, “As soon as we opened up meeting with Robert Farley, Senior with a comment regarding a particu- Counsel for Senate Majority Leader lar insurance company’s tactics, Dean Skelos. staff members themselves would As the day concluded, participants break into a story of how they were gathered at the Legislative Office given a deceptive referral by their Building’s cafeteria where Kizenberger insurance company and though they noted, “Our lobbying campaign was a ‘had to’ go to the insurer’s recom- huge success. Support for our bills on mended shop.” aftermarket parts disclosure and parts The 2015 Lobby Day was very procurement were met with great unproductive and successful. While derstanding and acceptance. In addimembers were encouraged to join tion, our meetings with members of the other members’ meetings if their Attorney General’s office were very schedule permitted, Kizenberger, encouraging.”

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Gerald Jones Honda A ugus ta

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MI SS IS SI P P I

Patty Peck Honda Rid g elan d

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

Gwinnett Place Honda Dul uth

N O. CAR O LI NA

800-277-8836 678-957-5151

Apple Tree Honda

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

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Ash ev ille

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

AC U R A AL AB A M A

FL O RIDA

GEOR GIA

GE OR G I A

Jerry Damson Acura

Duval Acura

Jackson Acura

Hu n t svil le

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

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

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

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

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FL O RI D A

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28 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

Southern Motors Acura

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Crown Honda Southpoint Du r ha m

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

Hendrick Honda Ch a r lo t t e

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

Leith Honda Ra le ig h

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

Metro Honda I nd ian Trail

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

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

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

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

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

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

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

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

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

Hall Honda Vi rgi ni a Bea ch

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Valley Honda Stau n ton

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

West Broad Honda Rich m on d

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

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

K n ox v i l l e

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

NO . CARO LI NA

VIR GIN IA

V IR GIN I A

Hendrick Acura

Performance Acura

Crown Acura of Richmond

Ch a r lo t t e

C h ap e l H i l l

Ri chmo nd

Falls Ch u rch

800-768-6824 704-566-2288

888-788-7301 919-942-3191

800-523-4411 804-527-6865

800-550-5035 703-824-5785

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

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

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

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

Leith Acura

Radley Acura

Karen Radley Acura

Ca r y

Wo o db ri dg e

800-868-0082 919-657-0460

800-355-2818 703-550-0205

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

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

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 29

Lean Operations

Mastering Implementation with David Luehr

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

a well-timed verbal volley that is surely to convince the crew to your way of thinking. You offer up all the benefits of meticulous disassembly, you explain that it will make them more money, and make their lives easier, and then finally they say, “Okay boss, we’ll do it.” You have won! You secretly pump your fist, and then congratulate yourself on your massive persuasion skills! A couple days later you are walking around the shop and you notice that one of the cars in the lot still has all the trim on the blend panel. “Hmmm” you wonder? Then you see a technician performing a plastic repair on a bumper, but all the grills and fog lights are still in it? “What happened” you think to yourself, “I just got through telling these guys to do a meticulous disassembly and only two days later they seemed to have completely forgotten my eloquent speech!” What happened? The answer to this question is significant indeed! Learning how to

Has this ever happened to you? You have just returned from an amazing workshop that gave you a great idea on some new lean concept. Let’s say, how to meticulously disassemble a vehicle so that you can capture 100% of the damage at the beginning of the process. You are excited because your shop has been having too many problems on Friday afternoons with parts that were missed on the estimate and this new process of fully disassembling the vehicle will surely solve that! All that’s left to do is go back to your shop and announce to your staff that this is how we will be performing “teardowns” from now on. However, as you explain the new process to your crew that morning, instead of excitement you are instead met with resistance. “I don’t know boss, I don’t think we have the time!” or “If we take the car apart like that, we won’t remember how to put it back together!” So without hesitation, you counter with

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motivate and enable people to change their actions is likely the most important skill one can acquire. I am not talking about cheesy persuasion tech-

niques, I am talking about understanding the forces that have been used for both good and evil that have both shaped our world or simply allowed leaders to overcome resistance in collision shop change initiatives or implementations. Truth be known, most of us are

only familiar with one method of influence, our mouth. Verbal persuasion is the most popular form of influence because it’s convenient and it actually works a great deal of the time. At least with easy stuff. For resistant problems and resistance to change, verbal persuasion rarely works! Whenever someone is asked to do something, there are only two basic drivers used to decide whether it gets done or not. 1. Can I do it? (Do I have the ability?) 2. Will it be worth it? (Am I motivated?) To address these drivers there are six sources of influence that are either working for you or against you. The book “Influencer” by authors Grenny, Patterson, Maxfield, McMillan, and Switzler gives the reader an amazing look at how these six sources of influence have been used by influence masters to overcome some of the world’s most pervasive problems. Here are the six sources, but as you can imagine there is not room in this article

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to discuss all of them. I recommend you pick up a copy of this book, but to give you a small taste of its content, we will take a brief visit to Source One – Personal Motivation. How do we make the undesirable desirable? Your “yes” means nothing if you can’t say “no.” There can be no commitment if there is no choice.” - Peter Block When you force someone to say yes to your attempts to sway them by using techniques such as nagging, begging or using your authority, you may indeed get a yes, but not the kind of yes that will get you lasting change. For someone to fully buy in, they must have the opportunity to decide for themselves. So how do you do that and in turn make what seems undesirable more desirable? When it comes right down to it, we often want the same things. We may have opposing views of how to achieve it, but when it comes to the final result of the change initiative we usually all want it. The problem when it comes to ordinary verbal persuasion methods, is that the whole time we are talking and forming your arguments, the resistant audience is not really listening to you,

because they are busy unconsciously forming their own counter-arguments. When you say “Hey guys I figured out

a bunch of extra free stuff in another weak attempt to make the owner rich!” A technique that works quite well

a way we can streamline our processes and make more money doing it!” They instead hear, “Hey indentured servant, I have figured out how to make you do

is what therapists have been using for years called Motivational Interviewing. Assuming you have a level of trust established, you can sit down

with your resistant body man and explain to him that our goal is to eliminate the missed parts problems that we are plagued with. I am pretty sure he won’t argue with that! You now have a common goal. You then ask him how the problem affects him. Ask, “What do you think are the benefits of changing?” By engaging your people in discussion where they feel they can contribute to solving the problem, they are much more likely to not only agree to the change, but to help design how it will take place. I hope that this article gives you the comfort in knowing that you are not alone in your challenges to create lasting change and successfully implement better processes in your shops. Methods such as lean have been around for quite a while, but unfortunately only a few lucky ones have figured out how to have real success with it. By learning modern leadership skills such as communication and influence strategies you too can become an Implementation Master. If you would like help implementing, learning the six sources of influence or any other leadership skills, please contact me at david.luehr@elite bodyshopsolutions.com for a free no obligation consultation. Original BMW Parts

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www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 31

Industry Insight

CIC Panel Discussion on Electronic Parts Procurement Takes Unexpected Turns with John Yoswick

It was a panel discussion quite unlike any other in recent Collision Industry Conference (CIC) history, with panel members and CIC attendees questioning one another’s motivations and even clashing over what the topic of discussion was supposed to be. “Well, that didn’t quite turn out as I expected,” CIC Chairman Randy Stabler said at the conclusion of the CIC “Parts and Materials Committee” panel discussion in Atlanta. “We’re going to circle around and try to ensure that we come up with content that’s more meaningful and effective.” The panel was organized and moderated by committee chairman John Bosin of I-CAR and was billed as a discussion of the inefficiencies within the current parts procurement environment. “Randy’s over-arching goal [as CIC chairman] is he absolutely wants to drive inefficiencies out of the industry,” Bosin said as the discussion kicked off. Indeed, there was some discussion of that during the 90-minute session, with panelist Jeanne Silver of CARSTAR Mundelein in Illinois noting that in order to be most efficient, any parts procurement system must be fully integrated with her shop’s computerized management system. “Every time you go outside of your business management system, you’re actually using seconds and minutes, and in my world, every minute counts,” Silver said. Silver also said because some of the auto recyclers she has done business with in the past do not participate in the electronic parts procurement system she uses, the pool of quality used parts she has to choose from is diminished. And previously when she always ordered from a particular representative at a recycler, she said, that person knew her expectations for quality; now someone else at that recycler may handle her electronic parts order, she said, and may ship a part her shop won’t accept. But in part because few of the five panelists – three of whom had not previously participated on a CIC panel – had much if any experience with electronic parts procurement systems

other than PartsTrader, the conversation turned almost entirely into a discussion of the merits and weaknesses of that particular program and State Farm’s implementation of it. Panelist Clint Rogers, a secondgeneration North Carolina shop owner who said he had not used any other electronic parts procurement system prior to PartsTrader, said he now uses it to order parts for all his shop’s jobs, not just State Farm jobs. “It’s more efficient. It’s a better mouse-trap. That’s the reason I haven’t been resistant to it,” Rogers said. “In my case, it’s been a good thing.” Rogers acknowledged PartsTrader is not “100 percent perfect.” He pointed to problems with its export feature designed to update parts pricing but that has been found to make other unwanted changes to estimates. He said he also would like to see the system better integrated with OE Connection’s CollisionLink OEM parts program. “This is more an endorsement for the electronic process than it is the PartsTrader application, per se,” Rogers said. “It’s just the old ways, the phone calls, the faxes, not only are inefficient, but there’s no accountability. When you do it electronically, no longer can your parts man tell you, ‘I ordered that four days ago,’ when he didn’t. I can pull it up and see he ordered it yesterday.” Rogers said State Farm deserves credit for pushing shops to order parts electronically. “As an industry we weren’t driving that change,” Rogers said. “Let’s be honest, guys, no one was pushing the electronic thing until State Farm came along. They’ve introduced something that can help us. Are there problems? Yes? And does anyone like the idea of having anything shoved down their throat? No. But if you set that aside and give an electronic system a chance, I think you’re going to find there’s some very good qualities that are better than the old system. Is it perfect? Absolutely not. Is it better than calling and faxing? Of course.” But panelist Ron Reichen of Precision Body & Paint in Beaverton, Ore., disagreed sharply that shops had-

32 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

n’t already been moving to electronic parts ordering before State Farm began mandating use of PartsTrader. “We were using electronic parts ordering eight or 10 years ago,” Reichen said. “So it wasn’t new to us. To say that I needed somebody else to come in because I wasn’t doing that? Maybe the rest of the industry needed that help, but we did not.” At that point, 35 minutes after the panel discussion began, CIC attendees took to the microphone, often criticizing the direction the discussion had taken. Andy Ingalls of Gerber Collision, for example, asked why the panel was not discussing any of the other — in his opinion, superior — electronic parts procurement systems available. Stabler also urged the panel to focus on how they measure the effectiveness of these programs, regardless of which program they use. Aaron Schulenburg, executive

director of the Society of Collision Repair Specialists (SCRS), pointedly asked Rogers if PartsTrader had paid him to be at the meeting. Rogers at first said he didn’t appreciate Schulenburg’s “accusational tone.” “I think you’re trying to make a point that I’m getting paid to be an endorser, and I think you’re way off base,” Rogers said. “Frankly, I don’t appreciate it. I came down here to speak for the PartsTrader guys, but not from the aspect that I’m up here to give you a commercial. I’m giving you my honest experience with the product. Will I endorse a product for someone when the product is helping me? Absolutely. I don’t think there’s anything underhanded.” But Schulenburg pressed back. “My question is: If a product endorser paid you to be in the room, and you’re endorsing it, and the rest of the panel isn’t being paid to be in the room See CIC Panel Discussion, Page 54

ARA Attends 2015 ISRI Annual Convention by Chasidy Rae Sisk

On April 21-25, the Institute of Scrap Recycling Industries (ISRI) held their 2015 Annual Convention in

Vancouver, Canada. The Automotive Recyclers Association (ARA) was represented by their CEO Michael Wilson and President Ricky Young. Wilson notes, “The event went very well and was well-attended by recyclers of all trades, including many automotive recyclers and ARA members.” Lauded as the largest gathering of recycling professionals in the world, the ISRI convention provided professional automotive recyclers with the opportunity to attend various educational seminars on critical

issues impacting the scrap recycling and automotive recycling industries. In addition to general business topics like managing employees, ARA members took particular interest in sessions pertaining to the scrap metal market, problem of metals theft, exports and interactions with law enforcement. Wilson explains, “Participation in the ISRI Conference is important to ARA and ARA members for many reasons. Many professional automotive recyclers also operate scrap metal processing arms of their business and interact daily with ISRI member companies. Legislation often has an impact on both industries as well.” Young and Wilson also met with ISRI leaders to discuss ways that the associations can collaborate to benefit both industries. ARA’s exhibit on the trade show floor promoted their upcoming 72nd Annual Convention, scheduled for October 7-10 in Charlotte, NC as a means of encouraging scrap recyclers to attend this fall’s event, creating even greater cooperation between the two industries.

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 33

Western Associations with Ed Attanasio

Midnight Body Shops Come Out Into the Light some invaluable sales skills in the process; but did he know that his father was likely breaking the law? My curiosity piqued now, I entered into a conversation with the Patrick Dorais, gentleman. He exCalifornia BAR Chief plained that he asks body shops could fix my dents and consumers to report any shop that right there, quickly is operating illegally, and affordably. The under the table and/ whole job would or under the radar take less than an hour and I didn’t have to pay him until I was completely satisfied, he said. “If you take it to a shop, you’ll have to pay the deductible, plus it could take more than a week and of course your insurance company will raise your rates,” he said. “I can make it look brand new for say, $250?” He obviously didn’t realize that

Just the other day, I was in a grocery store parking lot in San Francisco one afternoon when a kid approached me. “Hello sir,” he said. “That’s a bad dent on your bumper there. I can fix it for you.” I laughed, but he didn’t smile in return. I realized he was serious. “Really, how old are you?” “10,” he replied. I was about to ask him if he was I-CAR trained, but I resisted. I know this industry is having problems finding good, qualified people, but this is ridiculous, I thought. Then, all of a sudden a car drove up and a gentleman (probably 35-40) looked at me and then nodded at the child. I figured out what was going on rather quickly. It was sneaky, but impressive in a way. He’s using his child to get repair work, just like Tatum O’Neal in the classic film Paper Moon. O’Neal won the Oscar for her performance in 1973 and this kid was a pretty good actor himself. At least he was keeping busy, staying away from video games and learning

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

years and worked for a few shops I had heard of, including a large MSO. In 2008, when the economy imploded, he was laid off and that’s when he started doing freelance collision repair under the table and off the radar. He was I-CAR Gold before his sudden retirement from the legitimate side of the industry, he said, so he’s not current on aluminum repair, but claims he can do just about anything that doesn’t require sophisticated equipment. If a repair is more extensive, he doesn’t need to do it in a parking lot, he explained, because he has a small shop at his home (location withheld). The next thing he told me was a shocker. “How much do you make,” I asked him? “A good week is $5,000 and the average is around $3,000,” he said. “One month I did $40,000 after a bad storm. It’s all mostly PDR and little dents. I’m good at plastic work and I can fix a bumper. The shop would just replace it, but I can save it almost every time.” I had heard for many years about

I’ve been writing about the collision industry for more than a decade now, but once I began peppering him with questions, he got nervous and starting getting back in his car. “Are you using waterborne paint and how can you possibly match the color? Is the work guaranteed? (I pretty much knew that answer). Are you trained to do this type of work or are you a do-it-yourselfer? And isn’t it illegal to do the repair here in the parking lot?” He looked down and said, “Are you a cop?” That made me laugh and I told him no. He seemed relieved. I informed him that no thanks, I don’t want you to fix my car, but can I ask you a couple questions? I told him that I don’t want to know his name, but that I’m curious about his business model and his interesting sales approach (we both laughed). In short, he is 42 and has three children, including the diminutive salesman. He has been a body tech for 20-plus

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the dreaded “Midnight Body Shop,” but this was in broad daylight and no one seemed to be sneaking around. So, I wanted to see if I could find another one of these fly-by mobile body shops and I only had to look as far as the Internet. I searched through Craigslist in my area under body shop repairs in the “Services” section, and came up with several dozen collision repair listings. I responded to one that stated it had “very low, affordable rates—I can beat the body shop’s prices!” After sending an email, my phone rang within 10 minutes. I immediately explained to the caller that I was writing an article about under the radar, illegal, so-called midnight shops and did he fit into this category? Again, I told him I don’t want to know his name and after the call I will take his phone number off my cell. Initially, he said no, but after chatting for a few minutes, he agreed. This man’s story was very similar to the one I heard in the parking lot. “I can make more money fast and I don’t have to answer to anyone except myself. I control the quality and I don’t have to wrestle with an insurance adjuster. I’m like the Uber taxi service— an alternative for people who don’t care if I’m licensed or certified—they

just want a good job at a fair price and that’s what I give them.” So, I asked Patrick Dorais, the BAR Chief of California what we can do as consumers to prevent these types of businesses from flourishing, without licenses or the proper insurance. “This issue is something we continue to address, but we can’t do it alone,” Dorais said. “We encourage any shop or any consumer that suspects unlicensed activity to contact their local BAR field office and report their concerns so we can investigate these issues. BAR utilizes two enforcement paths for unregistered shops, Dorais explained. “First, regulations for issuing citations took effect in October 2011, and BAR regularly issues citations to unlicensed facilities under this authority. Second, BAR continuously fosters relationships with district attorneys throughout the state in an effort to create support for criminal and civil filings against unlicensed facilities. In addition, BAR is exploring an industry suggestion to require regulations that providers of automotive repair services publish their registration numbering in all advertising. This will further enhance BAR’s ability to identify those who are engaged in unlicensed activity.”

Seneca, MO, Body Shop Flattened by EF-1 Tornado, Sustains Most Damage Recorded in County The National Weather Service has confirmed an EF-1 tornado touched down in Newton County the night of May 17 just east of Seneca, MO, according to Felicia Lawrence reporting for fourstateshomepage.com. The tor-

nado touched down at Highway 43, four miles south of Seneca at 12:51 AM. It tracked northeast until it lifted four miles west of Neosho at 1:01 AM. The tornado uprooted several trees, destroyed multiple outbuilding structures and blew off roofs on a few barns. Peak winds were estimated to be around 90 mph. Peak width was about 200 yards and total path of the tornado was 10.4 miles. Newton County officials say J & S Auto Services, located at the inter-

section of Highway CC and Norway Road, sustained some of the most severe damage in the county. It was completely leveled by the tornado. Community members say it stood at this corner for years and they’re shocked to see it completely destroyed. The news team ran into a man who was looking for his friend that owns the auto body shop to try and help him. The owner is believed to be Johnny Reffett of Neosho, MO, and the business location is 7060 Norway Rd in Neosho. “To see Johnny’s business, like I said, to see anybody when you’re good friends business—just one day it’s there, it’s working. The next day it’s just completely wiped out by mother nature, it’s pretty devastating. And I know he’s going to need a lot of help within the next couple of weeks just getting things cleaned up,” says Rich McCready, who is friends with the owner of J & S Auto Services. Just a few hundred feet from a See EF-1 Tornado, Page 54

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WIN 2015 Educational Conference Addresses Wide-Ranging Industry Issues by Chasidy Rae Sisk, stories and photos

On May 4–6, the Women’s Industry Network (WIN) held their 2015 Educational Conference, “Connect to Cultivate,” in Washington, DC. The social unrest and riots led to a last-minute change of venue from Baltimore to

Susanna Gotsch (l) receiving the Cornerstone Award from WIN Chair Denise Casperson. Gotsch also presented a data-driven analysis of the economy, industry and insurance markets

Washington, but WIN’s Conference Committee was able to change the venue with just three days’ notice. It was clearly successfully executed as the 2015 WIN Conference boasted the highest attendance to date with 191 participants.

As a first time attendee I was impressed with the welcoming nature of this group and especially their positivity. They made me feel like a part of this amazing industry more thoroughly than ever before. The first day’s presentations “Change Makes Me Happy... Or Is It the Other Way Around?” by Paul Gange and Jeff Peevy’s “The Sustainable Competitive Advantage” were praised as extremely interesting and informative. On Tuesday morning, WIN members started early in support of WIN’s Scholarship Industry Walk with Renee Ricciotti as event emcee and BASF as sponsor. Professional headshots were taken during the breaks as a service to members. Mike Anderson of CollisionAdvice.com presented “Choosing Your Destiny,” sponsored by Enterprise. Susanna Gotsch of CCC Information Services Inc. then presented “Smart Connections: What the Future Holds for Our Industry.” Acknowleging the general recovery of the US economy bolstered by an average of 246,000 jobs added monthly in 2014. Even though miles driven dipped during the recession, 88.7% of employed individuals still commute to work in a privately owned vehicle. More driving results in more accidents. Gotsch touched on the likely pos-

Mike Anderson Says “Choose Your Destiny” at WIN

CollisionAdvice.com’s Mike Anderson was the keynote speaker at WIN 2015. Anderson energetically hopped onstage to begin a highly entertaining, interactive presentation filled with personal anecdotes ranging from uproariously comical to tearfully touching. Attendees shouted, danced and sang at various points during Choosing Your Destiny: The Three C’s of Life. Choices. Chances. Changes. Throughout his presentation, Anderson interwove anecdotes about his challenges having Tourette syndrome.

Anderson talked about how he joined his father’s collision repair shop after returning home from the military. After taking the shop over, he abided by the philosophy “you don’t steal fish

from someone else’s pond.” Instead of recruiting employees from other shops, Anderson found people from overseas through an AIPT program, and he also invested heavily in Skills USA and in women as he looked to the industry’s future. Anderson was well-known for his skill in estimatics and DuPont Performance Coatings (now Axalta) enlisted his aid to teach classes, launching his career in consulting. Anderson sold his shops and founded CollisionAdvice.com, an on-site consulting firm for shops. He also facilitates 20 groups in the US and Canada, so he spends much of his time traveling and speaking on industry issues. “I’m not married and I don’t have kids; I decided this industry would be my legacy.” This legacy includes providing opportunities for the next generation through Skills USA as well as by promoting opportunities for women. Anderson said, “A big problem in this industry is a lack of trust. We spend a lot of money on checks and balances, but in order to put this industry back in good standing, we need to regain trust.” Anderson praised WIN’s effort to encourage, develop and cultivate opportunities to attract women to the collision repair industry. On behalf of CollisionAdvice.com, he donated $1000 to

36 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

sibility of a shortage of qualified repair technicians and the introduction of autonomous vehicles. In terms of accident frequency trending, she predicts slow but steady shifts. Gotsch also pointed how insurance has changed in the last 10 years: how it’s written, marketed, sold and priced has all changed. Auto claim severity trending is up about 3% per year, while claim frequency has also risen by 3.5% annually. Gotsch credits this to the increased frequency of storms that leads to the necessity for repairs. Gotsch examined increases in auto sales and the impact of regulatory changes on the repair process. Over 90% of new vehicles sold in 2014 contained at least one part constructed with lightweight material, just one fact leading to increases in vehicle complexity. A lot more happens with these cars when they’re in the shops in terms of technological advances in safety features and programming. She noted, “The auto segment is dealing with the transition from a primarily mechanical-based industry to a software-based industry.” Gotsch predicted, “While collision avoidance is ultimately a good thing, it will force shops to adapt to the new market to stay afloat. The market will see fewer but more expensive repairs.”

New vehicle sales have returned to pre-recession levels, Gotsch stated, and the average age of repairable vehicles has increased and is now reaching a plateau; however, there is no foreseeable plateau in the average age of total loss vehicles. Average repair costs have risen over the past four quarters, and due to OEM price-matching programs, OEM parts are seeing increased utilization. Meanwhile, labor rates have increased moderately, as vehicle scrap rates have fallen. In closing, Gotsch noted that we are living in a “100-year-old ecosystem that’s screaming for change and technology. There’s potential for continued change, but we need to be able to adapt. There are a lot of changing features and changes in the marketplace, but the marketplace is healthy and growing.” The Annual Membership Meeting, led by WIN Chair Denise Caspersen reminded attendees that the organization’s mission is to provide education, offer networking opportunities and to recognize leaders. She introduced WIN’s 2015 Strategic Initiatives, which include growing the WIN network and building the organizational capacity necessary to better serve their growing network. Next, Caspersen introduced WIN’s Board members for 2015-16. WIN’s Executive Committee for 2015–16 will in-

WIN’s Scholarship Industry Walk. He employs four women full-time whereas his two part-time employees are both male. When he owned a shop, he did not participate in DRPs, but as a consultant, “I found that there are quality DRP shops and non-DRP shops that perform poor quality repairs; I’ve also met ethical insurance people who want to do the right thing. I realized that I was wrong because I was judgmental. The first step to Choosing Your Destiny is to own your stuff, be transparent and admit when you’re wrong. WIN encourages positive dialogue, but you have to choose to be positive every day.” Anderson believes that most people in life settle for less because they’re scared of change. “People often think they’re not worthy, but life is too short. You have a right to have your needs met. Too many people look at change in terms of cost instead of gain, but most people only use 10 percent of their potential, which means they’re leaving 90 percent on the table!” Anderson believes it’s time to gather statistics on women in various fields, and he challenges I-CAR to undertake the initiative. He insists that men and women have the same capabilities. “It may not be the easiest path, but you can accomplish anything with

determination; it’s not the strongest opponent who wins but the one with the strongest will.” Anderson encouraged attendees to get out of their comfort zones. “Don’t worry about what others think. Worry about your character, not your reputation. Your character is who you are, and your reputation is who others think you are. If you’re trying to pretend that something else is holding you back, stop it!” Recalling his fear to ask girls to dance at school events in his youth, Anderson admitted that fear was the only thing holding him back, and he urged the audience to let go of that fear because “the fear is worse than what really happens. You can’t innovate from within your comfort zone—the magic happens when you step outside of your comfort zone.” “Ignore critics. Most people take themselves out of the game before even trying because they listen to their negative internal dialogue, which prevents them from seeing the opportunities in front of them. The only thing standing between you and your goal is the story you keep telling yourself as to why you can’t achieve it,” Anderson admonished. “Quit telling yourself you’re not worthy because you ARE!”

See WIN, Page 38

www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 37

Continued from Page 36

WIN

clude Denise Caspersen as Chair, Petra Schroeder as Vice Chair and Melissa Miller as Administrative Vice Chair. Beverly Rook-Twibell will serve as Treasurer with Jessica Rob acting as Secretary. Margaret Knell is WIN’s Immediate Past Chair. WIN’s Cornerstone Award is designed to recognize the efforts of a member whose actions and unique contributions demonstrate her commitment to the WIN mission and vision and who also sets an example for others. This year’s winner was Susanna Gotsch, a popular choice. Ruth Weniger of Powerful Business Strategies LLC then led an exercise on the Value of WIN. Weniger asked attendees to share the value they get from WIN. One attendee noted, “This is where I come to get my inspiration.” Caspersen asked WIN members to consider joining the association’s committees. 357 members have been added so far this year, compared to 371 at the end of 2014. Updates were provided by the Marketing and Communications, Scholarship, Sponsorship, Governance, Nominating, MIW and Industry Outreach Committees. Attendees then proceeded to two of

three 30-minute sessions. The first option was “Feedback: Giving and Receiving” by Marianne Godwin and Mary Yama of Mitchell International. Noting that most people are terrified of feedback because it’s rarely good, Godwin stated, but, “Feedback is a gift. If it’s given in the right manner, something can happen.” Giving quality feedback includes behavior and its impact. Next, perspective, and then a suggestion or request. After demonstrating, Yama and Godwin asked attendees to practice in pairs.

connection. Building on the description of the ideal customer, headlines capture the essence of what you can do for your customer by featuring what makes your business remarkable. The third breakout session was “Bridging Silos: Using Marketing Concepts to Attract, Retain and Grow Talent” with Sandra Herron of MiddlEdge, Inc. A WIN member survey of the most pressing issues identified: 1) aging workforce and a lack of younger, trained employees; 2) finding skilled, trained technicians and

Chair Denise Capersen introducing WIN’s 2015-16 Board to Conference attendees

“Reality Marketing” with Cheryl Senko of PPG Industries reviewed the general small business environment and your customer’s perspectives, opinions, challenges and pains. Defining your ideal customer and considering solutions to the inconvenience, loss of vehicle value and use, and unexpected expenses. Reality Marketing develops compelling “headlines” to address the customer’s discomfort and your solutions to create an emotional

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reinforcing a pride in their craft; 3) employee involvement; and 4) retaining quality employees. Herron believes applying marketing tools to HR challenges is logical because employee behavior mimics consumer behavior and customer satisfaction is closely correlated to employee satisfaction. Good marketing begins with good research. Listening to the workforce also allows for decision-making based on

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facts, rather than intuition and feelings. Herron explained segmentation which is the art and science of grouping customers with similar needs and preferences, as well as targeting, the process of identifying niches with specific, actionable needs and preferences. Positioning is the process of branding the organization in the mind of the target market. Herron explained how marketing people use the “marketing mix” to build capabilities for delivering on the customer promise, and this consists of produce, price, placing and promotion. Because marketing people know that both markets and consumer expectations change, they stay on top of trends. Likewise, when it comes to collision repair industry businesses interested in attracting and retaining quality employees, it’s important to heed relevant trends, such as learning opportunities, salary data and competitor benefits. WIN held their Gala Dinner and Most Influential Women Award ceremony on the last evening. On Wednesday morning, Sean Carey of SGC Management Consultants Inc. presented Connected Cars/Connected Claims followed by Ruth Weniger’s Time Management ‘There’s No Such Thing.’ As the 2015 WIN Educational Conference concluded, all in attendance seemed in agreement that the event was successful, informative and inspirational.

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WIN Congratulates 2015 MIW Honorees, Scholarship Recipients at Educational Conference

On Tuesday, May 6, WIN ended their day of educational training with a Gala Dinner and Award Ceremony in recognition of their 2015 Most Influential Women (MIW) honorees and 2015 scholarship recipients. After dinner, where photos of past and present MIW honorees were prominently displayed, WIN members and guests gathered to toast WIN as association Chair Denise Caspersen emphasized the importance of recognizing women in the industry.

2015 scholarship recipients. (l to r) Shelby Woods, Faith Schoovaerts, Leni Casares, Claudia Felici, Corina Rutland

Beverly Rook-Twibell and Petra Schroeder, Scholarship Committee Co-Chairs, then recognized WIN’s 2015 scholarship recipients. Jasmine Herrera from Main East High School received the scholarship for a second-

ary school. Also absent from the event were post-secondary scholarship recipients Kayla Adams of TN College of Applied Technology and Maria Carmen Mendez from Universal Technical Institute. Post-secondary scholarship winners were: Shelby Woods from Southwestern IA Community College, Faith Schoovaerts of Washburn Tech, Lake Technical Center’s Leni Casares, Claudia Felici of TX State Technical College, and Corina Rutland from Moultrie Technical College. WIN Sponsorship Chair Susanna Gotsch and Marcy Tieger reminded everyone that MIW began in 1999 under Akzo-Nobel. Emphasizing the importance of networking, Gotsch admitted that women generally aren’t as effective at this as men, “but MIWs don’t have that problem. Effective leaders engage with each other in a way that inspires ideas.” The first 2015 MIW recognized was Cheryl Boswell of DCR Systems LLC. She recognized her father as her inspiration. Lauren Fix, the Car Coach, was honored next, and she urged attendees to “Remember: nothing can stop you but yourself.” Lisa Siembab of CARSTAR and Executive Director of ASA-CT said, “there are no shortcuts to anyplace worth

going.” Ruth Weniger said she wanted to be “someone who is leaving something good behind.” Caspersen again thanked attendees as the evening resumed with cocktails and socializing. WIN’s 2015 MIW awards were sponsored by ABRA Auto Body and Glass, AkzoNobel, AllState, AudaExplore, Enterprise, Nationwide, CCC Information Services, Mitchell,

MIW winners with event announcers. (l to r) Marcy Tieger, Cheryl Boswell, Lisa Siembab, Ruth Weniger, Lauren Fix, Susanna Gotsch, Denise Caspersen

OEM Collision Repair Roundtable, PPG, Safelite Solutions, SCA Appraisal Company, and Valspar Automotive. WIN also acknowleged its returning board members include: ● Amy Nuttall, USAA ● Beverly Rook-Twibell, Safelite So-

lutions ● Denise Caspersen, National Autobody Parts Warehouse ● Jaclyn Byers, Estimatics Team Manager, State Farm Insurance Co. ● Jessica Rob, Business Service Development Specialist, Akzo Nobel Coatings, Inc. ● Katie Henwood, Axalta Coatings Systems ● Margaret Knell, I-CAR ● Marie Peevy, Owner, Automotive Training Coordinators, LLC. ● Melissa Miller, CARSTAR Franchise Systems ● Michelle Sullivan, Akzo Nobel Coatings, Inc. ● Nina Pedraza-Zinna, Director of Field Operations, SCA Appraisal ● Petra Schroeder, Axalta Coatings Systems ● Shellie Andrews, Dana’s Collision ● Susanna Gotsch, CCC Information Services ● Terri Neely, Nagy’s Collision Centers ● Trish Gould, Controller/Human Resources, Keenan Auto Body New board members were introduced and officially welcomed: ● Cheryl Boswell, DCR Systems ● Yen Hoang, UYL Finishing

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The Martin Senour Company Announces 2015 Third Quarter Training Schedule

The Martin Senour Company announced its 2015 third quarter training schedule, with courses running from July 1–September 30. Training courses emphasize painter certification and maximizing shop profits, and will be held at Martin Senour training facilities nationwide. Martin Senour Automotive Finishes Director of Sales Jeff Hartl noted that the brand’s training sessions are designed to help shop owners, managers and technicians better execute environmentally responsible practices and improve their repair techniques with today’s innovative painting systems. Hartl also pointed to Martin Senour’s highly successful showing at the recent NAPA EXPO in Las Vegas, NV. “More than 100 collision repair facility owners, managers and techs, along with a large number of our existing and prospective jobbers, all learned how to best maximize their profits while increasing productivity and repair quality using Martin Senour products,” he said. In particular, Martin Senour professionals will teach the following course topics during the third quarter of 2015: ● Pro//BASE™ Refinish System Painter Certification ● VORTEX® Waterborne Painter Cer-

tification ● Estimating Solutions for Profit ● Color Adjustment and Blending ● Improving Workshop Efficiency ● Achieving Service Excellence ● Fleet FGP ● Jobber Level 1 A complete listing and schedule of the 2015 third quarter Martin Senour training schedule, course descriptions and training center locations is as follows: Atlanta 7/13/2015, Painter Certification, 3 days

7/13/2015, Color Adjustment and Blending, 3 days

7/16/2015, Estimating Solutions for Profit, 1 day

7/17/2015, Improving Workshop Efficiency, 1 day 7/17/2015, Achieving Service Excellence, 1 day

Chicago 8/3/2015, Pro//BASE™ Refinish System Painter Certification, 2 days 9/14/2015, Painter Certification, 3 days

AG Reaches Settlement with Middle TN Auto Dealer

Middle Tennessee auto dealer, Wholesale Inc., has agreed to change its advertising practices and pay the State of Tennessee $50,000, Attorney General Herbert H. Slatery III announced on April 20. The agreement centers around two advertising mailers sent to would be customers. One of the mailers specifically targeted service members living near Fort Campbell. After reviewing a service member’s complaint filed at Fort Campbell, the State alleged that the defendant made numerous false representations in violation of the Tennessee Consumer Protection Act. According to the State, a fictitious lender called “CreditAble Auto Funding” claimed to be “by military, for military” and was offering a limited amount of loans to military personnel. “Our men and women in uniform deserve to be told the truth when considering a consumer purchase,” said Attorney General Slatery. “My office will continue to pursue any business or person who acts unfairly or deceptively towards military members and their families.” Under the settlement, Wholesale Inc. is required to maintain proof to support all advertising claims and will be required to include the com-

pany name on all advertisements sent to consumers. Additionally, Wholesale Inc. is to develop written policies and procedures for reviewing and approving its advertisements. “This is another example of teamwork between the Attorney General's Office and the Division of Consumer Affairs,” said Tennessee Department of Commerce and Insurance Deputy Commissioner Bill Giannini. “By working together, we strive to protect Tennessee consumers while still being a great place to do business.” Any consumer receiving an advertisement they believe is unfair or deceptive should file a complaint with the Tennessee Division of Consumer Affairs by visiting http://tn.gov/consumer/ or calling 615-741-4737 or 800-3428385.

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Continued from Cover

SC SkillsUSA

Kentucky with his teacher Eric Lee at the end of June to compete on the national level. “I’m very proud of Zane,” Lee said. “He has an excellent, natural ability and he is fun to be around. He is maturing into a fine young man.” Butler said he really enjoys the welding portion of his curriculum and plans follow that direction at Florence Darlington Technical School in the fall. Also participating in the state competition was Mullins High School senior Jonathan Cook, who placed second for estimating and Joseph Cebreiros who competed in painting and finishing. Their instructor Lee was recently named Teacher of the Year for ACT and said he is passionate about the program. “In two years I expose these students to dozens of different skilled career paths they can follow. The Auto Collision Repair Technology program is often misunderstood for it is far more than just fixing a car that’s been in a wreck.”

PPG Show Truck Gets a Bold New Look

PPG Automotive Refinish has repainted its popular show truck. The truck, a 75-foot 2016 Freightliner Cascadia tractor-trailer rig, now features a red, white and blue paint scheme reminiscent of the stars and stripes of the American flag. “The PPG show truck represents our company wherever it travels,” said Cristina Fronzaglia-Murray, Manager of Marketing Communications, PPG Automotive Refinish. “We

PPG’s 75-foot 2016 Freightliner Cascadia tractor-trailer show truck was recently repainted

wanted it to be an absolute showstopper, one that clearly displays what our products can do. We also wanted the paint scheme to recognize and celebrate the freedom we have in this country—from the ability to pick the cars we drive to the color and paint we choose for them.” Steve Breakfield and the team at Motorhead Racing and Design Co., Charlotte, N.C., came up with the design. Gerber Collision & Glass in

Grand Rapids, MI, was awarded the refinish project. Led by fleet operations manager Fred Honoré II and Chris Hansen, General Manager of the company’s Grand Rapids truck location, the crew stripped and sandblasted old paint off the trailer before using several premium PPG DELFLEET® Evolution products including F3995 Epoxy Primer, the FBC Basecoat System and F3921 2.1 VOC Clearcoat to achieve the bright, colorful finish. “We were privileged to be a part of this,” said Honoré. “To be chosen by PPG to paint its show truck, that’s a real honor. This is the kind of thing you tell your grandkids—that your work was respected enough by your paint supplier that they trusted us with a job as important as this. We loved painting this truck.” Veteran PPG driver Chad Hook will drive the truck, which has a brandnew cab tailored to his requirements, to major custom car and truck shows sponsored by the Goodguys Rod & Custom Association, the National Street Rod Association (NSRA) and other automotive enthusiast groups. For a schedule and more information about PPG Automotive Refinish products, call (800) 647-6050 or visit www.ppgrefinish.com.

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Quik Video Technology Looks to Target Body Shops by Stacey Phillips, Assistant Editor

A video technology currently being used at dealership service centers could potentially benefit independent body shops and insurance companies, according to the company’s COO Jack Gardner. Quik Video, based in Quincy, Massachusetts, enables technicians to Jack Gardner, COO make and send perof QuikVideo, based sonalized videos to in Quincy, MA their customers via text and email that provide them with a visual on the repairs being recommended. After launching Quik Video in October 2014, Gardner said service managers have found that it has saved them time and money and increased their Customer Satisfaction Index (CSI) scores. “Just as it has increased revenue in the service department it will do the same in the body shop,” said Gardner. “Customers have the same lack of understanding when you explain recom-

mended repairs just like the service department. The customer simply has no frame of reference, but when provided with video proof and an expert analysis from a technician or body shop professional, they understand it.” Although the product is primarily being used at dealerships, Gardner said they are looking at other applications, such as independent body shops and insurance companies. “We feel that insurance companies will embrace the

product as the video means they can approve the repairs in a timelier manner,” he said. “By having video reports, the need to have adjusters visit the body shop several times or at all on a claim is no longer necessary.” He predicts that insurance companies in the United States will rely on video from the body shop, as they have done in the UK, to speed up the ap-

proval process and increase their CSI. Gardner has worked at all levels of the automobile industry including service, sales and OEMs. He said that over the years he has seen changes from the advent of the internet to the speed at which customers now demand information. While working in Europe, he came across a system at a trade show originally adopted by BBC and the European Commission. It was used by BBC reporters to video news stories when cameramen weren’t available. The European Commission found it was helpful to record video conferences and speeches for viewers who couldn’t attend. “I immediately recognized the opportunity this application would have in the automobile industry, given the lack of trust between the consumer and the dealer,” said Gardener. “Having been part of the industry during this period where the lack of trust was generated I saw this product being key to repairing and enhancing industry relations with the consumer.” He developed a partnership with the manufacturer and worked with

seven full-time programmers to design the system for use in the automobile industry. “We had to devise a manner in which the system was easy

Kevin C., a master technician at Colonial VW in Westborough, MA, is making a Quik Video on a customer’s car after completing a complimentary safety check

to use. It had to be simple and require little or no additional work for dealer staff, and it had to be quick, thus the name Quik Video,” said Gardener. When a customer drops off a car and meets with the service advisor, a video request is created with the repair order number, customer name, email and cell phone number. That information is automatically populated into an Apple iPod located in the service bay. Once the technician is working on the

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car, he records his recommendations. It takes a minute and 10 seconds to make and send a one-minute video. A full reporting suite was built into the system so the dealer can monitor and track both increased sales and staff performance. Some of the other features include: automated follow up on declined work, automated appointment reminders, daily, weekly and monthly reports, up sell reports, video proof of

is completed at what Gardner calls the “second opinion location.” “We have proven with our system we can get that approval number of 34 percent up to just north of 70 percent,” said Gardener. He said this is measured by comparing the conversion rates from the prior month and the same month of the previous year. He uses the acronym SUBB – the customer sees it, understands it, they believe it and they buy it.

“Just as [Quik Video] has increased revenue in the service department it will do the same in the body shop” —Jack Gardner, COO of Quik Video.

completed work and video damage assessment on vehicles at check-in. Gardener said they maintain all videos on their servers so a dealer can retrieve prior videos at any time. Gardner said when a multi point inspection is conducted on a customer’s car while in the shop studies have shown that nationally about 34 percent of the recommended repair is converted. The remaining 66 percent

Nigel De Silva, Service Manager at Infiniti of Norwood in MA, began using QuikVideo in October 2014. “We now have a process that has full incorporated video production in our service department and I am happy to report that we are number one in the region across the board, said De Silva. “In an age where technology is constantly evolving, having video in my service department without a doubt

gives me an unfair advantage.” In January 2015, Peter Slota also introduced QuikVideo to his service department. The service manager of Colonial Honda in Dartmouth, MA said he has found that, “It’s making us more money, providing transparency and building trust with our customers and based on the customer response I feel sure we will see an increase in our CSI scores.” QuickVideo has mainly been used in the northeast part of the United States. With a head office in Boston, MA the company recently opened an office in San Francisco, CA and another in Toronto, Ontario, Canada. The company offers a 90-day trial with a money-back guarantee. The monthly subscription rate varies between $795 and $1,295 per month and is based on the number of repair orders. Gardner said that discussions are at an advanced stage with two OEMs in North America to introduce the product to their dealer network. Further plans include opening two new offices in Florida and Texas within the next six months. More information is available online: http://qkvideo.com/

Axalta Launches OnlineLearning Training Campus

To keep pace with changing customer demands and expectations and in anticipation of future trends, Axalta Refinish Training is launching the Axalta Learn-

ing Campus in North America, a new way to access training content and track progress. The Axalta Learning Campus will provide learners with the ability to register for traditional Learning and Development Center classes as well as provide links for eLearning, quick tiptype videos, webinars and more. It will also enable learners to select the content that is most important to them. The Axalta Learning Campus can be accessed at axalta.us website, under Products and Customers > Training or directly by logging onto http://www.axaltalearningcampus.com. Once on the Axalta Learning Campus, participants can create personal profiles and select the classes and eLearning modules for the products they use.

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Mycrsmanager Management Software System Usable Over Smartphone Devices by Stacey Phillips, Assistant Editor

After investing four years creating and beta testing a management software system for the collision repair industry, Robert Williams recently launched MyCrsmanager (CRS). Williams, the owner of Foxwood

Collision Center in Fresno, CA, said his intent was to build a system that would offer administrative staff a user friendly program to improve communication with customers and vendors, as well as help shop owners better manage their businesses in order to save time and money. “CRS is intended to be used for more than just a management system. We have a manager and customer app for the iPhone and android devices so you can actually run your business from anywhere,” said Williams. “My ultimate goal is to get body shops to realize there is an alternative to what they’re used to.” First introduced in November 2014, MyCrsmanager software is a cloud-based program that imports estimates from CCC, ADP and Mitchell, allowing the user to price, order, receive and return parts and supplies directly online. Customers receive real time status updates automatically as technicians log in and out of the stages of production. Using the CRS apps, supplements and delays can be sent to customers for signatures or as customer updates from an administrative PC, tablet and/or smart phone. Each CRS customer has his or her own web page tracking the repair from start to finish, with the capability of storing photos and videos. Williams said there are many ways to use the program and allow a shop owner to save hours of time on the phone with vendors, car rental companies and customers. “The program is designed to send notifications via e-mail, text and/or phone messages to the customer prior to the scheduled appointment, throughout the repair, and after the repair is complete,” he said. Rental car companies receive a notification prior to the customer picking up a rental car and a

notification when the customer vehicle has been picked up, with complete timeline documentation within every customer RO. Parts and supply vendors receive pricing requests, electronic orders and returns, which Williams said virtually eliminates the need to call vendors. Williams said one of the key features of the software program is its own internal accounting module, eliminating the need for an additional accounting software system. The accounting module fully integrates with QuickBooks and has been adapted for MSO operators. “The program captures and financially evaluates every

aspect of every repair,” he said. It electronically sends initial and follow up insurance notifications to the customer as well as automatically reaching out to a potential customer at designated intervals by e-mail and text in an attempt to close a sale. The employee time clock not only tracks in and out times and production stage, but also allows the employee to schedule vacations, PTO and internally message administration. The shop calendar documents upcoming customer arrivals, estimator, technician and admin appointments. The program includes a department value summary with a breakdown of every department percentage of in process sales. A consignment paint cabinet module notifies the vendors directly of inventory count.

Bringing About Change Williams was running Foxwood Collision out of a 7,000 square foot location when he was presented with an opportunity to purchase an old theater for his business in 2003. After a year of remodeling the 24,000 square foot space, he relocated in 2004. After the move, Williams said his

44 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

business grew from earning $100,000 in 2005 to nearly $500,000 by 2008. “When doing all of this volume, the software programs on the market couldn’t fulfill my needs as a body shop owner,” said Williams. “What I tried to do is write a lot of this stuff out and put in on boards in the shop … to manage the business and make it operate more efficiently and have the customer more involved.” The business owner began to implement various methods to better communicate with his customers. He said that with the amount of cars they were working on at that time the employees sometimes had to move vehicles to a different dealership to work on the repairs before bringing them back. An issue came up when Williams was driving a Camero to a muffler shop and happened to see the owner of the vehicle who wasn’t aware his car had been removed from the premises.

After that experience, Williams set up a white board in his shop and asked employees to write down every time a vehicle leaves the shop. He wanted to improve the way he gave consumers a status report on their vehicles. Williams was finding that these challenges were slowing down his cycle time. With 40 bays and 60 employees running three shifts Williams said, “I had to find a better way.” Then in 2008 the industry implemented changes that affected his business. One of these was that insurance companies began conducting thirdparty surveys and enforcing them. “If you weren’t in the top tier, they would put you on hold so you wouldn’t get that work and other shops would,” said Williams, who was a DRP for several insurance companies during that time.

In response, he began investigating several software programs available and found that they offered features that helped manage the body shop but didn’t give him the ability to communicate with customers. It was then he said he realized there was a need in the industry to address these issues.

Improving Business “At the end of 2008, I knew my white boards weren’t keeping up and I needed to find a better mousetrap,” said Williams. He talked to a company that builds software and asked them to create something that would allow him to update customers on the status of their vehicles as things happen, in real time. When the project was complete, he said the software was cumbersome and wasn’t what he had envisioned. He and one of his friends who was a programmer worked for the next four years to create an alternative. Meanwhile, with the downturn of the economy, his business took a turn in 2009. “My shops went from doing $500,000 a month to $160,000 a month,” said Williams. “For me to survive this I had to completely change the way I did business.” This included consolidating all of his shops. “I knew at this point my salvation was to continue to work on this program and to make it the best it could be so I could compete and do a better job at what I needed to do,” said Williams. After using the software in his body shop, he has found it has changed the way they do business. The biggest advantage, said Williams, is that there is instant communication. “Customer feedback regarding this feature has been overwhelming. When my customers come in they tell me they love the updates they receive about the vehicle repair and the ease of signing documents. Williams offers customers the option of paying $329 per month or signing a 12-month contract for $289. More information is available online: http://www.collisionrepairstatus.com/ or call 559-273-5259.

www.autobodynews.com C

CCC Information Services Buys DriveFactor Inc.

CCC Information Services Inc. (CCC) acquired DriveFactor Inc., a provider of a technology platform for insurance telematics. CCC, an SaaS technology provider to the U.S. auto insurance industry, said it will strengthen and extend DriveFactor’s technology to create the first full-service, open telematics platform for auto insurance. “Steve McKay is an insurance veteran and telematics visionary. He, Mac Fraser, and the rest of the DriveFactor team have been pioneers in delivering a proven, device-

agnostic platform for insurance telematics,” said Marc Fredman, Senior Vice President of Corporate Strategy & Development, CCC. “DriveFactor’s technology provides superior flexibility and data quality for underwriting and marketing, and by integrating telematics data into existing claims operations carriers will have the first full-service solution to satisfy their policyholders and improve efficiency. We’re excited to welcome the DriveFactor team to the CCC family and look forward to working together to bring sustained innovation to customers.”

McKay said, “Telematics is rapidly evolving and holds enormous potential for carriers to increase consumer engagement, strengthen loss ratios, and improve claims performance. To realize the promise of telematics and stay ahead of the curve, carriers will need to access an array of technologies–from OEM systems to device and service providers. A full-service, open platform delivers choice and scale to carriers as their needs in telematics grow and change. I’m excited by the data, expertise, and network

that CCC will bring to our customers.” Fraser, Chief Information Officer, DriveFactor added, “CCC is a trusted partner to more than 350 insurance companies that rely on CCC to connect with their business partners and execute more than one million claims-related transactions every day. The combination of CCC and DriveFactor creates unmatched insurance, claims, telematics, and technology expertise that will enable us to deliver on nearand long-term opportunities.” Terms were not disclosed by CCC.

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New GM Silverado Engineered for Better Serviceability During Collision Repair by Stacey Phillips, Assistant Editor

When General Motors initiated the redesign of the Chevy Silverado 1500 full-size pickup truck several years ago, an important aspect of the project was to incorporate features to reduce the time, cost and complexity during the collision repair process. “When we design trucks, we don’t only consider what features our consumers demand from a full size-truck,” said Mark Szlachta, Advanced Service Design Engineer for General Motors. “We also approach the process

as a service engineer was to look at the project from a body repair perspective. “I’m looking at the vehicle from the perspective not how it’s going to look when it’s done, or how it’s going to be built, but how it will fare in the event of a crash. How we are going to take it apart, how we’re going to put it together and try to make sure that at the very least we don’t lose any serviceability,” said Szlachta, who has a background in collision repair. “In fact, our job is to always improve serviceability.”

Tom Wilkinson, communications manager for Chevy Trucks, said, “The other thing that continually evolves are safety standards and crash testing, such as new roof crush standards and new offset front impact

The 2015 Chevrolet Silverado truck

standards. We have to do a lot of reengineering to make sure that you’re doing well in those tests.” The new Silverado is constructed using significant amounts of highstrength steel, particularly in the frame and cab structure. He said this makes the truck stronger and more rigid for improved safety, ride and vibration control, and helps reduce mass for improved fuel economy. When Autobody News asked

Engineers incorporated several features into the new Chevrolet Silverado’s body structure in order to help reduce the time, complexity, and cost involved with body repair

with our technician hat on, ensuring we engineer a truck that is straightforward and cost-effective to repair.” When Autobody News asked Szlachta the various requirements that went in to redesigning the truck, he said that one of his primary goals Continued from Page 24

Automotive Art

their staff, and we will identify a jobber in their region that can supply their needs. Since our system is a userfriendly, solvent basecoat system and we offer superb colour tools to get the right colour match, the conversion is quick. A shop can be up and running with our new system in only a couple days.” So why would you consider switching to Automotive Art’s line? Ac-

Szlachta said a full-size pickup truck is typically re-engineered every five to seven years. “The reason why we change is because technology changes,” he said. These new technologies help make the truck quieter, stronger, lighter and more fuel efficient.

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Wilkinson if there were any plans to change the Silverado’s body components to aluminum during this midcycle update, he said there are no plans to do so. “We already use aluminum hoods on full-size and midsize trucks,” said Wilkinson. “Given the ongoing wave of new, refreshed and redesigned vehicles being introduced each year, it’s more important than ever that automakers focus on design for affordable reparability,” said John Van Alstyne, President and CEO of I-CAR, the Inter-Industry Conference on Auto Collision Repair. “Understanding and adapting to the issues and opportunities associated with advanced materials and technologies is not only a key consideration in the early stages of the design and engineering process, but the impact on repair must also be considered upfront to ensure complete, safe and quality, and affordable repairs throughout a vehicle’s total lifecycle.” The 2015 Silverado is currently being sold by Chevrolet. For more information, visit Chevrolet.com

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ASA Board of Directors Installed During Annual Business Meeting The Automotive Service Association (ASA) held its annual business meeting April 21 at the Westin Crystal City Hotel in Arlington, VA. The week kicked off April 20 with a welcome reception sponsored by Feder-

“I am very excited about where ASA is going. We’re in the midst of reorganizing our business model, and we are building up our industry relationships and want to get more members involved in the association,” said Seyfer, whose father, Don Seyfer, served as chairman of ASA from 1996-1997. Following the board and committee meetings, attendees enjoyed a private tour of George Washington’s home, Mount Vernon. At the conclusion of the tour, the group shared dinner and honored outgoing ASA Chairman Darrell AmberAttendees of ASA’s recent annual meeting in Washington, son, AAM, for his service to D.C., enjoyed a private tour of George Washington’s ASA. home, Mount Vernon Dan Risley, ASA Presiated Insurance. On April 21, there dent/Executive Director said, “With were association meetings in the more than 40 years of experience in morning, including a closed board of the collision industry, Darrell brought directors meeting and an affiliate di- valuable insight to the leadership of rectors meeting, followed by a lunch- ASA during his two years as chaireon. In the afternoon, ASA members man. We remain profoundly grateful attended an open board meeting, fol- for his contributions to ASA, as well lowed by the swearing in of a new as the automotive industry in its enchairman and other board members. tirety. We wish him all the best in his Donny Seyfer, AAM, Seyfer next endeavor.” Automotive, Wheat Ridge, CO, is The Automotive Service AssociASA’s new chairman. ation’s new board of directors began

their term at the close of the annual business meeting. Serving two-year terms on the board are Seyfer; Darrell

ASA’s new board of directors, who were installed at ASA’s recent Annual Board Meeting in the Washington, D.C., area. Front row, from left to right: Bill Moss, AAM, secretary /treasurer; Donny Seyfer, AAM, chairman; Roy Schnepper, AAM, chairman-elect; Darrell Amberson, AAM, past chairman. Back row, from left to right: Ed Cushman, AAM, general director; Scott Benavidez, Collision Division director; and Bob Wills, AAM, Mechanical Division director

Amberson, AAM, LaMettry’s Collision Inc., Minneapolis, MN, as immediate past chairman; and Roy Schnepper, AAM, Butler’s Collision Inc., Roseville, MI, as chairman-elect. Bill Moss, AAM, EuroService Automotive, Warrenton, VA, a former general director, was nominated to serve a one-year term as secretary/treasurer.

Ed Cushman, AAM, C&H Foreign Auto Repair, Spokane, WA, was elected to serve a two-year term as general director. Moss’s move into the secretary/treasurer role leaves a general director vacancy that will be filled at a later date. Bob Wills, AAM, Wills Auto Service, Battle Creek, MI, begins the second year of his two-year term as Mechanical Division director; and Scott Benavidez was elected to a two-year term as Collision Division director. Risley also serves on the ASA board of directors in an ex-officio capacity. ASA’s next national event is the NACE | CARS 2015 expo and educational conference in Detroit, MI July 23-25, held in conjunction with several other industry events throughout the week. For more information, visit www.CARSevent.org and www.NACE expo.com. To learn more about ASA, visit www.ASAshop.org or call (817) 5142900.

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e-mail: www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 47 shartman@autobodynews.com

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

Are You Prepared for Google’s Mobilegeddon? with Ed Attanasio

Technology doesn’t stand still and that’s vices, but if your site is not mobile opwhy no one was surprised when on timized (responsive) you may miss out April 21, Google, the planet’s leading on these customers’ business.” search engine, released changes to their algorithm giving with mobile-friendly webHere’s everything you need to know Ed Attanasio sites a boost on devices with smaller about Google’s Mobilegeddon: screens. It seems like an obvious move, Only smartphones will be impacted. but change is always painful and webGoogle’s search results on laptops and site operators don’t like surprises, so tablets will be unaffected by the new many of them are allegedly shocked algorithm. But, it’s still a pretty sigand perplexed. But, the seasoned pros nificant deal when you consider the with Ed Attanasio out there are prepared for what people fact that mobile makes up almost half are calling the “Mobilegeddon” and of all Google searches. Studies also many have already adapted all or most show that 70% of all mobile searches of their clients’ web sites as they emare performed by users ages 18-30, a brace this new regime. demographic almost every business is Algorithm changes are never hungry for. pretty, because businesses rely heavily Relax – time is on your side. Your on Google to send traffic to their webwebsite people received a two-month sites. Google owns two-thirds of the warning in preparation for MobilegedU.S. search market, so when Google don, so if they look surprised, don’t fall changes its code, companies have to for it. Normally, Google doesn’t premove quickly to decipher and adapt to announce algorithm changes, but Mothe new way of doing things. In 2011, bilegeddon could have such a dramatic a key Google algorithm change calcuimpact on mobile search results that lated to promote high-quality content they decided to give businesses a little caused the eventual ruin of several time to get ready. Four months ago, companies nationwide due to a signifGoogle released a “mobile-friendly” icant dip in traffic and revenue. test that enables websites to see if their Web developers and online marsites are equipped for the algorithm keters are understandably concerned tweak. Mobile websites with clunky about the change. The top spot on a videos, sluggish mobile pages and search page characteristically attracts blocked image files will suffer the 20% to 30% of the page’s clicks while wrath of Mobilegeddon. slots #2 and #3 generate 5% to 10% of Websites can adjust on the fly. the clicks. And if you’re not on the first Unlike previous algorithm tweaks, page, you’re going to receive roughly websites can upgrade their “mobileless than 1% of users’ attention. In the friendliness” at any time to appear Search Engine Optimization (SEO) higher in Google’s search results, so it world, Mobilegeddon is the Super doesn’t have to be done immediately. Bowl, Masters and World Series all Google also said that the algorithm rolled into one. It’s a make it or break it tweaks will be rolled out over the moment for every business with a web course of a few weeks, so the changes site in search of a mobile presence. might not be immediately noticeable Luke Middendorf, president of anyway. WSI Connect in Concord, CA is telling Some mobile-unfriendly sites body shop marketing people to Keep could still get favorable search placeCalm and Carry On when it comes to ment. Google’s algorithm judges sites Mobilegeddon. “Google’s search enbased on numerous criteria, of which gine is putting a new focus on mobile- mobile-friendlness is just one. The friendly sites when it comes to their company’s aim is to provide the most ranking algorithm,” he explained. relevant results, even if it’s to a site “This means that if your site is not mothat isn’t optimized for mobile. bile friendly it will rank lower, or perIs this move to accommodate more haps not at all when it comes to mobility a timely re-adjustment by customers using keywords to search Google and how can it benefit body for information. These changes will shops? “With so many new collision-reallow customers to get the information lated apps out there and the fact that they need from all of their mobile demore and more consumers are using

SEMA Show Goes On

their smart phones for everyday tasks, body shops can definitely get business from their mobile sites,” Angel Iraola an award-winning site developer explained. “If you have a site or app that will appear easily on someone’s cell phone and for some reason your competitor hasn’t adapted Angel Iraola, the to this new algopresident at Net rithm, then obviBusiness Consultously you’ll capture ing & Solutions in Santa Rosa, CA that business and said that small they won’t. Or at companies are the very least, paying way too you’ll get a soild much to switch shot at getting that over to Google’s new mobile-centric vehicle. It may not algorithm, called become a huge part “Mobilegeddon.” of your sales and marketing efforts, but if you get 10-12 new customers every year, why not be prepared for Mobilegeddon?”

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48 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

Iraola, the president at Net Business Consulting & Solutions in northern California was able to change all of his clients’ web sites to the new Google algorithm quickly and seamlessly, he said. “Some web developers are making mountains out of mole hills and overcharging small companies to changeover. I’ve heard crazy prices ranging from $1,500 to $2,000 and even more. That’s ridiculous and a complete rip-off. To convert your web site, it should not cost you more than $600-$700 and it shouldn’t take longer than 6-7 hours to complete the entire job.”

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Longtime I-CAR Executive Jeff Peevy to Lead Automotive Management Institute I-CAR announced on April 27 that Jeff Peevy, Senior Director Segment Development – Collision Repair & Field Operations, has been recruited to lead the Automotive Management Institute (AMI) as its next presiJeff Peevy dent. His last day with I-CAR was May 15. The opening created by Peevy’s departure is not expected to be immediately filled. Peevy has been associated with I-CAR for nearly 25 years. He joined the organization in 1990 as a committee member, served as an instructor and rose to become a top regional manager, leading the South Central Region for six years. In 2006, Peevy was promoted to National Field Operations Manager and then joined I-CAR’s leadership team in Hoffman Estates to head Field Operations in 2007, later becoming senior director, managing both Field Operations and the newly formed Collision Repair Segment

team since 2012. “The I-CAR ecosystem will miss Jeff, and at the same time, we also are thrilled that he is taking on a new challenge that will also serve the interests of our industry,” said ICAR CEO and President John Van Alstyne. “While Jeff has played a key role helping drive positive change at I-CAR over the past several years, this commitment transcends Jeff—customer focused continuous improvement is now part of our DNA at I-CAR. We wish Jeff well and look forward to exploring possible synergies with AMI that will benefit the collision repair industry, especially in new curriculums such as our new Production Management Role, which will be launching later this year.”

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New Chief Fume Extractor Protects Body Shop Technicians from Weld Fume Particulates

On April 24, Chief Automotive Technologies introduced a heavy-duty weld fume extractor. The new fume extractor collects weld fumes at their source. The fume extractor is part of Chief’s product line expansion into “fusion” products. The fusion group includes a new rivet gun as well as a full line of spot and MIG/MAG welders that had previously been marketed under the Elektron brand. “Welding and brazing produce toxic fumes that can be harmful to the technician operating the welder or those working nearby,” said Bob Holland, Director The Chief FE7 Fume of Collision in Extractor helps North and South protect body shop America for Chief technicians from parent company weld fume particle Vehicle Service Group (VSG). “Continued exposure can lead to illness, lost time and worker’s compensation claims. Some facilities utilize overhead vacuum systems to clean the air, but the new Chief fume extractor offers superior protection by capturing weld fumes before they reach the

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technician’s breathing zone.” The Chief fume extractor uses an electric motor to draw weld fumes through a cylindrical arm that leads to a large ProTura® Nanofiber cartridge. The filter offers a MERV 15 efficiency rating. MERV (Minimum Efficiency Reporting Value) ratings vary from 1 to 16, with higher ratings indicating greater efficiency in trapping airborne particles. The filters in the Chief fume extractor provide the ultimate combination of high efficiency, low operating costs and longer filter life. A built-in pressure gauge on the fume extractor shows when the filter should be replaced, and the machine’s “Quick Seal” door release provides fast filter removal and maintenance with no tools required. While traditional fume extractor arms are made of plastic tubing, the Chief fume extractor’s arm is manufactured of powder-coated aluminum with cast aluminum joints. The sevenfoot arm holds a bell-shaped extraction hood with an integrated 360-degree handle, and an ember catcher prevents hot particles from reaching the filter. To learn more, visit www.chief automotive.com/OnOurLines/ or call (800) 445-9262.

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Barn Finds in TX Estimated at $700,000 to be Auctioned at Indianapolis Motor Speedway June 12

A collection of rare cars stored inside a Texas barn is estimated to be worth nearly $700,000, reported the website inquisitr.com. A man identified only as ‘Jack’ originally purchased the vehicles in the

1960s. The cars remained untouched for 40 years despite the owner’s plans to eventually restore them. The vehicles include a 1908 REO Model G Boattail Roadster/Sedan Tonneau, a 1923 Milburn Electric Model

Motostalgia will be in charge of the June 12 rare car auction at the Indianapolis Motor Speedway

A collection of rare cars found inside a Texas barn is estimated to be worth nearly $700,000. Photo Credit: www.inquisitr.com

27L, a 1932 Cadillac 370B V-12 Victoria Convertible, a 1933 Cadillac Model 370C V-12 Town Coupe, 1937 Kozy Coach Travel Trailer, and a 1938 Cadillac Series 90 V-16 Fleetwood Limousine—which was originally owned by the Wrigley family. Examiner reports that the individual vehicles are worth between $45,000 and $350,000. The entire collection is estimated to be worth at least $700,000, according to Motostalgia auctions, which will manage the sale. NY Daily News reported that the most valuable of the cars is the 1932 Cadillac Victoria Convertible, which is actually a prototype. Jack’s prototype has a V-12, while the more recent prototype has a V-16. It is estimated to be worth $350,000.

Jack’s 1923 Milburn Electric is one of the last fully electric vehicles manufactured by the company. It is worth an estimated $125,000. The 1908 REO Model G, which is estimated to be worth $95,000, includes an interchangeable back seat and boattail. Jack’s 1933 Town Coupe is “one of only 952 built.” The vehicle, which still runs, is estimated to be worth $75,000. Jack was hesitant to part with his collection, but eventually admitted he doesn’t have the time or energy to restore the rare cars, and decided an auction would be the best decision. He will, however, keep two of the rare vehicles in the garage. The rest will be auctioned off at the Indianapolis Motor Speedway on June 12.

CA, TX, FL, MI, and OH are the Top Five States for Vehicle Thefts with Keys Left Inside

More and more drivers are making it easy for thieves by leaving keys inside their unlocked vehicles, according to a report in Insurance Journal. A new report by the National Insurance Crime Bureau (NICB) found an increasing number of thefts of vehicles with the keys left inside. For the years 2012 through 2014, at total of 126,603 vehicles were reported stolen with the keys left in the vehicle. While overall vehicle thefts are declining, vehicles stolen with keys left inside are trending in the opposite direction. As a percentage of overall thefts, 5.4 percent of vehicles stolen (39,345) in 2012 had their keys in them. That figure rose to 6 percent

(42,430) in 2013, and in 2014, it increased again to 6.7 percent (44,828). To show the significance of these numbers, if the 44,828 thefts were removed from 2014’s reported estimated total of 659,717, the thefts would fall to 614,889. The last time national vehicle thefts were that low was 1966. The top five states that posted the most vehicle thefts with keys during this reporting period were California (19,597), Texas (8,796), Florida (7,868), Michigan (7,726) and Ohio (7,452). The top five core-based statistical areas were Las Vegas-Henderson-Paradise, NV. (6,185); Detroit-WarrenDearborn, MI. (4,882); Atlanta-Sandy

Springs-Roswell, Ga. (3,234); Philadelphia-Camden-Wilmington, PA-NJ-DEMD. (3,141) and New York-Newark -Jersey City (2,917). Looking at day-of-week data, Saturday saw the most thefts with keys (19,147) followed by Friday (18,719) and Monday (18,647). “Stealing a vehicle is very difficult with today’s anti-theft technology and leaving the keys in the vehicle is an open invitation for the opportunistic car thief,” said NICB President and CEO Joe Wehrle. Wehrle was not shocked by the numbers? “In fact, I’m sure the numbers are probably higher, because we are only able to determine the thefts

where the car was recovered with the keys inside, or where someone admitted they left the keys in the car or the ignition. Many times that is not admitted in the police report or the insurance claim,” he said. He said NICB also see cases where the owner gives up the car by leaving the keys in it to allow it to be stolen. “Anyone who does that is committing fraud,” he said. Leaving a vehicle running while running into a store or to warm it up before a chilly winter commute might make sense to an individual, but it creates a perfect moment for a car thief who looks for such an opportunity, NICB warns.

Takata Acknowleges 34M Defects, Struggles to Meet Air Bag Repair Demands

Takata Corp. has acknowledged that its airbag inflators in nearly 34 million vehicles are defective—a decision that sharply expands the scope of the airbag crisis and could prompt one of the largest recalls for a safety defect in U.S. history. Tataka’s acknowledgement marks a reversal from its long refusal to declare that its inflators are defective. Nonetheless, Takata is having a hard time keeping up with demand for air bag replacement parts. Though the company has refused to expand previous recalls that focus only on hot and humid parts of the country, car manufacturers like Honda and Toyota have broadened their recalls to include other states, writes Eric T. Chaffin in the blog legalexaminer.com. That means millions of vehicles require new air bag inflators—those parts deemed defective by the National Highway Traffic Safety Association (NHTSA).

According to a recent report in the Journal Sentinel, in Wisconsin, as in many cities throughout the country, car owners are being told that there are no parts available to complete repairs. Just a few weeks ago, the NHTSA reported that nearly 90 percent of vehicles with defective Takata air bags had not yet been fixed. The administration considered taking additional, aggressive steps to speed up the process. The NHTSA has the authority to require more manufacturers to produce the air bag inflators, but has never used it. Honda—the automaker most affected by the recalls—assured the administration it had already made agreements with additional air bag suppliers like AutoLiv to bump up production. Still, it takes time to make the adjustments needed at the manufacturing level to produce the required volume of additional parts. In Wisconsin, Toyota is putting car own-

50 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

ers’ names on a waiting list, to be notified when the parts become available. President of the Automotive Dealers Association of Mega Milwaukee noted that because Takata had such a majority of the air bag market, they haven’t been able to keep up with demand. Still, he recommended that people get their name on the list rather than wait, to expedite repairs once the inflators arrive. Takata and many auto manufacturers have focused on repairing vehicles in more hot and humid areas of the country. Takata’s tests on the malfunctioning air bags seemed to reveal that hot weather and high absolute humidity, along with age, were factors increasing the risk that the air bags would explode upon deployment, sending shards of metal and plastic into the interior of the car and potentially seriously injuring and even killing occupants. That means people in Wisconsin and other cooler, dryer areas may be

waiting six months to a year to get their vehicles fixed. This has left drivers confused as to the best course of action. Some have considered shutting off their air bags, but that hasn’t been advised as air bags typically do save lives, and the recalls do not mean that every air bag will explode. For now, drivers are advised to turn passenger air bags off if there are no other passengers in the vehicle. Honda Moves to Increase Repairs Despite the slow process of repairing the air bags, Honda has recently launched an ad campaign encouraging car owners to get their vehicles in for repairs, though the campaign has so far been limited to hot and humid areas. Honda has announced that those customers who cannot get their vehicles fixed will be offered “transportation alternatives,” which may include loaner or rental cars.

Mitchell’s Q2 ITR Addresses Increase in Average Collision Repair Severity lifecycle the more opportunity the aftermarket has to replicate the part and the more potential salvages out there.” Horn said what he found interesting was that the midcycle for the Camry was surprisingly still high, around 80 percent OEM utilization. “The takeaway for shops is that it

robust new car sales, that lowers the value of the cars in off road today.” He In the latest edition of Mitchell’s Q2 Insaid there is a downward trend of the dustry Trends Report released in May, actual cash value of vehicles being apGreg Horn addressed the driving facpraised and repaired. tors behind rising collision repair costs. “When you start to see falling acHorn, Mitchell’s VP of Industry Relatual cash values and rising repair costs, tions, looked at the increase in average that means that we’re going to see repair severity in terms more cars being totaled of an estimate, parts, out,” said Horn. “Ris“Rising costs and lower values labor, paint and materiing costs and lower valals. ues equal more total equal more total losses” Horn’s feature artilosses.” cle, “What’s Driving the This can be attrib—Greg Horn, Mitchell’s VP of Industry Relations. Costs to Repair Today’s uted to more complex Top Selling Car,” examvehicles being built and ined four top-selling mid-size sedans in changes so quickly,” said Horn. “There added technology, which both add to the United States to find out if the design may be more alternative parts available the overall cost of the repair. lifespan of the vehicles affects parts uti- than there were the last time you reThe complete report is available lization and overall repair costs. paired that vehicle on the salvage side at www.mitchell.com/industry-trendsThe 2012 mid-size vehicles in- and on the aftermarket side. He said report. Mitchell will also host a wecluded a new Volkswagen Passat, a that by conducting a good diligent binar on June 2: Industry Trends Live. midcycle Toyota Camry, as well as a search of alternative parts, it could po- Horn will provide a deeper look into Ford Fusion and Chevy Malibu that tentially help shops repair more cars the trends, information and studies were both in the last years of their de- due to an increase in the parts supply. highlighted in this quarter's industry sign cycle. “We found that the vehicles The second quarter industry trends report. In addition, Horn will discuss that were the oldest had absolutely the report also included information about other current events of interest such as lowest use of new OEM parts,” said average length of rental, current events Google’s self-driving cars. “I think Horn. The new 2012 Passat had the in the collision repair industry and this industry is changing at a faster highest use of OEM parts and the highlighted new vehicle sales data. rate than I’ve seen changes in the 27 Camry had substantially more OEM “When you look at the big picture, we years I’ve been involved in it,” said utilization than both the Fusion and the process almost seven million estimates Horn. To sign up for the webinar, visit Malibu. “When it gets to the end of the a year,” said Horn. “When you look at go.mitchell.com/register. by Stacey Phillips, Assistant Editor

Sherwin-Williams Partners with Toyota for Estimator Training

Toyota Motor Sales, U.S.A. and Sherwin-Williams Automotive Finishes announced the 2015 schedule for the annual Toyota Certified Collision Center estimating program, with SherwinWilliams continuing as one of the facilitators for the program’s training workshops. Conducted through the University of Toyota, the workshops will be held in Phoenix, AZ August 26 and Dallas, Texas September 22. “Our Gulf States Toyota shops that have participated in the Estimating Solutions for Profit classes have averaged better than a $150 increase in their repair order value,” according to Travis Rice, Manager of Collison Operation for Gulf States Toyota. The workshop, B005 Collision Repair Estimating, comprises realworld estimating scenarios and industry-specific issues pertaining to body shop operations and insurance company relations. Attendees who participate in this estimating program will get hands-on experience with the techniques, skills and information necessary to write and negotiate more accurate (and profitable) estimates. For information, contact Toyota or visit www.sherwin-automotive.com/ collision-repair/training-support.

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New Product Showcase

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

resqme™ Vehicle Escape Tool and Related Products Have the Potential to Save Lives with Ed Attanasio

Body shops and the collision industry in general have taken on the role of imparting useful safety information to its customers. If you’ve ever read a body shop blog, you will often find short posts like Leaving Kids Alone in CarsKnow the Risks and Consequences; I Put the Wrong Fuel in My Vehicle! What Should I Do?; Tire Safety Tips and 3 Misconceptions about Passing on the Road, for example. But isn’t there a conflict of interest there, because body shops make money when people get into accidents, right? Bruce Miles, a blogger for the collision industry disagrees. “Not really, because we know that people are going to get into accidents every 9–10 years like clockwork and that’s something we can’t control, like the weather,” Miles explained. “But, we don’t want drivers to get into bad accidents, because then obviously the cars will likely be totaled out by the insurance companies. And if the accident is fatal, well we want to help people to avoid that at all cost. So offering its customers simple common sense safety tips to avoid those big crashes is something the industry can do and should do, in my opinion.” So, knowing that automotive safety is an important thing that body shops want to convey in their blogs and part of their overall message to consumers, I was intrigued when I encountered a company called resqme™ at the NADA Exposition in San Francisco, CA. a few months back. Located in Santa Barbara, CA, resqme invented and produces the resqme tool, a device that saves drivers’ and passengers’ lives worldwide. This device was recently featured on 20/20 and the Today Show, as well in publications such as Autoweek, Consumer Reports and Popular Mechanics. More than 3 million drivers worldwide own one and now car dealerships, repair facilities and other automotive-related businesses are either giving them to their customers free or offering them for sale. What exactly is the resqme tool and how does it save lives? It’s a window-breaker and seat-belt-cutter—an emergency tool for the safety of any driver. In the event of an emergency and possible vehicle entrapment, the

resqme tool holds a sharp blade to cut a jammed seatbelt and a spring-loaded spike to shatter the car window. Designed in 2003, the resqme emergency escape tool has now saved more than 35 lives and probably more that have never been reported. After identifying a need for a portable and compact version, the resqme tool was developed and is now manufactured in the United States and distributed worldwide. Just last year alone, this amazing tool saved 16 lives, including three in submersion accidents: 10 in situations in which young children were trapped in a vehicle with the keys inside and three more rollover accidents where people were hanging upside in their vehicles. Autobody News recently sat down with Laurent Colasse, the inventor of the resqme tool and the president of this 12-year-old company. “We’re proud of the resqme tool, because obviously we’re making a change and people can see that it’s saving lives,” Colasse explained. “People have escaped fires, rollovers, children locked in a hot car and of course submersions. Prior to the invention of this tool, people were basically helpless, but now this device gives them a chance to make it out alive. They’re great for car dealerships and automotive repair businesses and for a nominal charge we can put their company name on the side of the device.” The resqme tool became a national story after Ashley Neufeld, 21, along with two other friends from Dickinson State University in North Dakota died in a tragic accident in 2009. Their SUV crashed into a farm pond in Stark County, ND, and submerged with the three young women still inside who were unable to escape. As a result, in honor of Ashley, a foundation was created to raise funds with a customized resqme tool with her name to benefit local sports and also to help promote safety against car entrapment. “Knowing Ashley, it was an opportunity to provide a tool to a bunch of people, so that possibly it would never happen to another family,” said one of the foundation’s initiators. This fundraiser was an unex-

52 JUNE 2015 AUTOBODY NEWS | www.autobodynews.com

pected success and quickly became an overwhelming experience as a pure expression of amazing solidarity in the community of Brandon, ND where Ashley grew up. Several thousand resqme units with the name Ashley Neufeld have been sold raising more than $56,000 to date. In addition to the resqme tool, the company also manufactures several other lifesaving devices, Colasse said. “We want our products to become a lifestyle for people who are socially responsible and want to stress safety for themselves and the people around them. That’s why we’re always looking to inventing other tools like the resqme original keychain car escape tool.” Other products designed and sold by resqme include: alertme™ Lifesaver Alert: About the size of a bluetooth earpiece and lightweight, less than an ounce, the alertme™ is the latest and safest life-

saver electronic device that helps prevent accidents caused by falling asleep behind the wheel. Its ergonomic design makes it very comfortable to wear and improves your vigilance on the road. protectme™ Pepper Spray: A handheld aerosol canister with maximum strength & UV marking dye that sprays an irritating formula in the eyes, nose and mouth of a person threatening your personal safety. In response to their customers’ demands, resqme, Inc. has opted to cobrand with Sabre Red by offering the best compact pepper spray in the market place. The protectme™ pepper spray is an effective means of nonlethal self defense for people concerned with safety and security. Used by police departments, security agencies, and individuals concerned with security and self defense. prepareme™ Lifesaver Kits: All kits come with a combination of basic See Vehicle Escape Tool, Page 54

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PartsTrader 3.0 Released with Efficiency Features

PartsTrader® announced May 5 that it has started rolling out its PartsTrader 3.0 release. “The release of PartsTrader 3.0 is a major step in the evolution of the application. The features contained in this release continue to move both our repairer and supplier users to greater efficiencies in the parts procurement process and the new reports being added will provide managers with tools that help them better understand their business,” said Margaret Ho, Director of Product Management & Integration for PartsTrader. Major highlights of this release include a re-designed Quote Selection Tool, enhanced management reporting and inventory quoting capabilities. The Quote Selection Tool has fewer steps needed to select the quote. This release includes new management level reports. The first phase of the time saving inventory quoting system to be rolled out is the Hotlines Automatch integration for recycled parts suppliers, soon to be followed by the DMI data platform integration for OEM dealers. Suppliers will be able to quote far more efficiently than traditional phone or fax based methods.

Pro Spot’s Virtual Welding Contest at Northeast™

Pro Spot International hosted a virtual welding contest to educate attendees and bring attention to the importance of training at this year’s AASP Northeast™ Show held in Secaucus, NJ, in March. Ron Olsson, president of Pro Spot International, explained that teaching welding can be difficult, and as with all technical skills, practice is required. Pro Spot designed the simulator to cover a variety of weld techniques and applications to fully simulate today’s demanding collision repair environment and learn what their strengths and weaknesses are. The competition was judged by averaging each participant’s scores in the speed, work angle, arc length, straightness, travel length, stickout and defects. This year’s winner was Anthony Dworniczak, of Mario’s Complete Auto and Collision Repair in Philadelphia, PA. Dworniczak was awarded a new big screen TV. “We really want to work on education and training within the industry as well as introducing the technology to more schools,” said Ashley Olsson, Communications Director for Pro Spot. “Providing solutions that allow technicians to constantly improve their skill is extremely important to our company.”

Wheelmaker Superior Moves HQ from Van Nuys to Detroit

Allstate Joins GEICO in Rate Increase as Margins Fall

Superior Industries International Inc., a longtime aluminum wheel manufacturer led by former Visteon CEO Don Stebbins, is relocating its global headquarters from California to suburban Detroit. The move from Van Nuys, CA, to Southfield, MI, just north of Detroit, will result in the loss of about 50 managerial and clerical positions in California, the Los Angeles Business Journal reported.Superior is the largest manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America. The company operates five manufacturing facilities in the U.S. and Mexico that employ approximately 3,000 people. Superior plans to invest up to $2.5 million and create 75 jobs. As a result, the company has been awarded a $900,000 Michigan Business Development Program performancebased grant. Michigan was chosen over competing sites in Texas and Tennessee. The city of Southfield is providing support to the project in the form of expedited permitting through the city’s building department. California’s loss is Michigan’s gain with 75 new jobs along with the $75 million investment expected.

Allstate Corp., the largest publicly traded U.S. seller of car and home insurance, said it’s raising rates for drivers after profitability declined at its namesake auto unit. Allstate joins Berkshire Hathaway Inc.’s GEICO in lifting rates after margins worsened. First-quarter underwriting income for Allstate auto fell 48% to $144 million, the insurer said. “We didn’t make as much money in auto insurance this quarter, in part because of weather, in part because we have to adjust prices, reflecting economic activity,” Allstate Chief Executive Officer Tom Wilson said in a conference call. He said customers have been driving more miles as the economy improves, increasing the number of claims. Allstate recently extended its share price loss to 4.4% this year. The average premiums paid by customers have been “steadily increasing,” Matt Winter, Allstate’s president. In addition to the Allstate brand, Wilson’s company also sells coverage through the Esurance and Encompass units.

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Continued from Page 32

CIC panel discussion

to endorse other [products], I think there’s something disingenuous to the audience about that,” Schulenburg said. Rogers then acknowledged that PartsTrader had paid for his flight to the meeting in Atlanta. “If what you’re saying that someone paying $200 for my flight here is Continued from Page 35

EF-1 Tornado

flattened auto body shop is a family home that sustained severe roof damage and damage to a lot of their other property. The Gilbert Family ran to their storm shelter just before the tornado hit last night. They waited about

me getting paid when I take a day off of work to come down here, I think that’s kind of silly, Aaron,” Rogers said. “Two hundred dollars and now I’m a paid endorser? Let’s be serious.” The panel discussion continued but only occasionally focused on inefficiencies in the current parts ordering environment. After the meeting, Stabler and Bosin said they’d not known PartsTrader had picked up Rogers’ travel expenses, although Bosin said a

PartsTrader representative on the CIC committee had suggested Rogers when Bosin was looking for shop owners to be on the panel. Stabler said steps would be taken to avoid any such issues in future CIC presentations. Bosin said he plans to present his own look at inefficiencies in electronic parts procurement at the next CIC meeting, being held July 21 and 22 in Detroit in conjunction with NACE.

15 minutes inside for the storm to pass. Once they got out, they saw a lot of their property had been damaged. The roof of their home was exposed. There were uprooted trees in their front yard, their garage was damaged, along with the pool, and two barns. Cheryl Gilbert says she didn’t want to get out of bed last night, but is glad her husband insisted they go to the shelter.

“When you hear the warnings, take heed. Because you never know when it’s going to turn into something and it might effect you. You know, just that fast, everything was blown. So, it’s like I really hope people pay attention when they hear the warnings,” said Cheryl Gilbert, a longtime Seneca resident whose home also received tornado damage.

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Continued from Page 52

Vehicle Escape Tool

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Flow General Motors

Ph: 800-GM-Built Direct: 336.760.7038 Fax: 336.245.1423

Flow Lotus

Direct: 336.760.7038 Ph: 800-GM-Built Fax: 336.245 .1423

Flow SAAB

Direct: 336.760.7038 Ph: 800-GM-Built Fax: 336.245.1423

Flow Toyota

997 Folger Dr., Statesville, NC 28625 Direct: 704.978.4650 Fax: 704.873.4236

Keffer Kia

271 W. Plaza Dr., Mooresville, NC 28117 Ph: 888.411.5599 Direct: 704.360.1560 Fax: 704.658.9382 kiaparts@kefferauto.com

Kernersville Chrsyler Dodge Jeep Ram

Ph: 888.314.7278 Direct: 336.564.0259 Fax: 336.996.0742 www.autobodynews.com | JUNE 2015 AUTOBODY NEWS 55

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