Automatic Emergency Braking to Be Standard on All New Vehicles by 2029
The National Highway Traffic Safety Administration (NHTSA) on April 29 announced it has finalized a new rule that will make automatic emergency braking (AEB), including pedestrian AEB, standard on all passenger cars and light trucks by September 2029, in a bid to significantly reduce rear-end and pedestrian crashes.
NHTSA projects the new Federal Motor Vehicle Safety Standard will save at least 360 lives a year and prevent at least 24,000 injuries annually.
contact with a vehicle in front of them up to 62 mph, and that the systems must detect pedestrians in both daylight and darkness. In addition, the standard requires the system apply the brakes automatically up to 90 mph when a collision with a lead vehicle is imminent, and up to 45 mph when a pedestrian is detected.
This final rule applies to vehicle weighing 10,000 pounds or less, which includes nearly all U.S. light vehicles.
AEB systems use sensors to detect when a vehicle is close to crashing into a vehicle or pedestrian in front and automatically applies the brakes if the driver has not. Pedestrian AEB technology will detect a pedestrian in both daylight and in darker conditions at night. The NHTSA said the new standard will significantly reduce injury or property damage and associated costs from these crashes.
The new standard requires all cars be able to stop and avoid
The vast majority of light vehicles sold in the U.S. already come equipped with the feature. In December 2023, it was announced 20 automakers had fulfilled a voluntary pledge they signed in 2016 to equip nearly all the light vehicles they produce for the U.S. market with AEB. The list included Toyota, Honda, Ford, GM and Stellantis. That pledge had been brokered by the NHTSA and the
Virginia Passes Bad Faith Auto Insurance Bill
The Virginia General Assembly passed a bill that will require auto insurers to pay double if a court finds they arbitrarily did not pay a claim to a policyholder, set to go in effect July 1.
The bill applies to any insurer that denies, refuses or fails to pay to its insured a property damage, medical expense benefit or loss of income benefit claim in bad faith, as found by a court, and also requires the insurer to pay interest, as well as the claimant’s attorney fees and expenses.
Supporters of the bill call it a win for customers who otherwise had no recourse when an insurer refused to pay claims, but opponents say it could drive up auto insurance costs.
The American Property Casualty Insurance Association (APCIA) said a study, conducted for it by actuarial firm Milliman, Inc., projects an increase in auto insurance premiums ranging from 5.6% to 14.3%, which it said could translate to an additional annual cost of $220 million to $550 million for Virginia’s motorists. Senate Bill 256 would likely exacerbate the financial burden on Virginians, especially affecting lowincome individuals who can least afford to pay higher premiums, said Nancy Egan, APCIA s vice president of state government relations and counsel, who urged Youngkin to veto the bill.
Volkswagen Workers in Tennessee Join UAW in Historic Vote
Volkswagen employees in Chattanooga, TN, have overwhelmingly voted to join the United Auto Workers (UAW), making them the first U.S. autoworkers outside of the Big Three to successfully unionize.
The election, held April 17-19, saw more than 3,600 votes cast. Of those, 73% were in favor of joining the UAW.
This election is big,” said Kelcey Smith, a worker in the paint department at Volkswagen. “People in high places told us good things can’t happen here in Chattanooga. They told us this isn’t the time to stand up, this isn’t the place. But we did stand up and we won. This is the time; this is
the place. Southern workers are ready to stand up and win a better life.”
“We saw the big contract that UAW workers won at the Big Three and that got everybody talking,” said Zachary Costello, a trainer in VW’s proficiency room. “You see the pay, the benefits, the rights UAW members have on the job, and you see how that would change your life. That’s why we voted overwhelmingly for the union. Once people see the difference a union makes, there’s no way to stop them.”
“This is a movement for every blue-collar worker in America,” said
SC
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REGIONAL
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Columnist Mike Anderson: Battery Reconnects Lead Police to Visit Shop 3 Times Until Solution Found 6 Columnist Abby Andrews: Car Insurance, Repair Cost Increases Far Outpace Overall Rate 16 Columnist Stacey Phillips Ronak: Talent Acquisition Program Leaders Share Insight During IBIS USA 4 Columnist John Yoswick: Associations Working to Enact State Laws on OEM Procedures, Right to Appraisals 9 INSIDE THIS ISSUE PRESORTED ARANDST D S.U. AGPOST E AIDP P ERMIT 8#28 ,ANAHEIM CA P.O. BOX 1516, CARLSBAD, CA 92018 Change Service Requested
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REGIONAL NEWS
Collision Engineering Program Expands to Southeast with New Partner School 32
Crash Champions Acquires Bavarian Body Works’ 2 Atlanta Locations 35
Florida Man Arrested for Faking Car Vandalism in Insurance Scam 43
Georgia-Based Dealer Group Invests $500K in Future Auto Repair School 28
NC Shop Owner Charged with Insurance Fraud 40
New Law Targets Predatory Towing in Florida 8
New Orleans Saints Owner Acquires Ray Brandt Dealerships, Collision Centers 34
NATIONAL NEWS
ALLDATA Launches Repair Planner 8
Automakers Report Strong Hybrid, EV Sales in April 39
Automatic Emergency Braking to Be Standard on All New Vehicles by 2029 1
Average Length of Rental Continues Decline from Post-COVID Highs 44
Brian Martin Joins AkzoNobel 28
Caliber Launches Nationwide Food Drive 33
CIF Announces Repeat Annual Donor 37
DSG Acquires S&S Automotive 41
Fisker Expands Dealer Network but Warns of Possible Layoffs, Plant Closure 41
Fix Auto USA Celebrates 200th Store Milestone 29
Ford Seeks Supplier Cuts Amid EV Losses 40
South Carolina Auto Shops Ready to Help Owners Comply with ‘Carolina Squat’ Law 12
Southern Governors Oppose Unionization Efforts Among Auto Workers 33 Toyota Grants $2M for STEM Education in North Carolina 36
Virginia Passes Bad Faith Auto Insurance Bill 1 Volkswagen Workers in Tennessee Join UAW in Historic Vote 1
ZT Automotive Expands into Alabama, Acquires 13 Dealerships 38
COLUMNISTS
Abby Andrews Auto Glass Now Launches Campaign Emphasizing Nationwide Reach, Speed 19
Bosch Bringing EV Training to Technicians Nationwide 13
Car Insurance, Repair Cost Increases Far Outpace Overall Rate 16
Health Insurance-Buying Pool Can Counteract Trends Driving Up Costs for Collision Repairers 27
New Event to Give Repair Shop Owners Tools to Attract, Develop, Retain Top Talent 14
Performing Dynamic Calibrations In House Can Mean Big Returns on Minimal Investment 18
Stacey Phillips Ronak
AkzoNobel Collision Industry Experts Event Focuses on Business Strategies for Repairers 20
Collision Facility Owner Sees Value in Supporting Customers, Employees, Community 10
4 John Yoswick
Associations Working to Enact State Laws on OEM Procedures, Right to Appraisals 9 CIC Adopts Distinct Definitions of ‘Estimate’ and ‘Repair Plan’ 21
Owners: Insurers Could Take NonFinancial Steps to Improve Claims 22
Index of Advertisers
autobodynews.com / AUTOBODY NEWS JUNE 2024 3 Contents
GM
Powered
GM,
EV Battery Issues 38 Hertz Offloading More EVs as Losses Continue 26 Hyundai, Kia Lead Surge in Vehicle Thefts in 2023 47 Joe Hudson’s Collision Center Expands With 6 New Locations 36 NHTSA Investigating Ford’s BlueCruise After Fatal Crashes 34 Refinish
Performance Conference
WIN
Women
Ending Production of Last Gas-
Sedan 35
LG Settle for $150M Over Bolt
Distributors Alliance Hosts Spring Impact
30
Annual Conference Encourages Women in Collision Repair to ‘Dream Out Loud’ 42
Automotive Network Set to Present Inaugural Detroit Summit 37
3D International 21 ACT Automotive Staffing 16 Audi Gwinnett 36 Audi North Miami 28 Audi Wholesale Parts Dealers 42 Auto Data Labels 11 AutoNation Ford-Memphis 34 Axalta �������������������������������������������������������� 5 Benchmark Automotive 22 Certified Automotive Parts Association 18 Classifieds 46 CPS Products 6 Dale Earnhardt Jr� Chevrolet �������������������� 32 Empire Auto Parts 14 Ford Wholesale Parts Dealers 44 GM Wholesale Parts Dealers 45 Grieco Ford of Fort Lauderdale 37 Gus Machado Ford ���������������������������������� 17 Harper Volkswagen 35 Hendrick Automotive Group 31 Hendrick Honda Pompano Beach 28 Hendrick Kia Cary 33 Hendrick Kia Concord ������������������������������ 33 Hendrick Volvo Cars of Charleston 40 Herkules Equipment Corporation 13 Honda-Acura Wholesale Parts Dealers 23-25 Hyundai Wholesale Parts Dealers 47 Kia Motors Wholesale Parts Dealers 41 LKQ Corporation 48 Mercedes-Benz of Tampa 39 Mercedes-Benz Wholesale Parts Dealers 47 Miami Lakes Automall 26 MINI of Charleston 40 MOPAR Wholesale Parts Dealers 27 Nissan/Infiniti Wholesale Parts Dealers ���� 44 NorthAmerican Bancard 20 Ourisman Kia of Fairfax 30 Parks Chevrolet 38 Polyvance 12 PPG ���������������������������������������������������������� 15 Reeder Chevrolet 36 Reed Nissan 32 Rick Hendrick Chevrolet Naples 34 SATA Spray Equipment 2 Serra Kia �������������������������������������������������� 39 Sport Durst Chrysler-Dodge-Jeep-Ram 40 Stivers Decatur Subaru 38 Subaru of Gwinnett 29 Subaru Wholesale Parts Dealers 43 Sunmight ��������������������������������������������������� 7 Toyota-Mazda of North Miami 40 Toyota Wholesale Parts Dealers 47 Volkswagen Wholesale Parts Dealers 46 Zip’s AW Direct 19
Anderson Battery Reconnects Lead Police to Visit Shop
Mike
3 Times Until Solution Found 6
Talent
Acquisition Program Leaders Share Insight During IBIS USA
Shop
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Stacey Phillips Ronak — Solving the Tech Shortage
Talent Acquisition Program Leaders Share Insight During IBIS USA
With various talent acquisition initiatives being implemented for the collision industry, five program leaders recently shared insight about the technician shortage during a panel discussion held in March at the International Bodyshop Industry Forum (IBIS) USA conference in Anaheim, CA.
Dave Smith, an independent consultant for the collision industry, moderated the panel, which focused on what is being done to address the talent issue and the collaboration taking place.
Erick Bickett represented the Collision Career Institute as its cofounder and CEO. The institute provides a defined career path and training for entry-level technicians. The executive director of the Collision Repair Education Foundation (CREF), Brandon Eckenrode, discussed CREF’s support of educational programs, schools and students to create qualified, entry-level employees and connect them with career opportunities.
Dara Goroff, I-CAR’s vice president of planning and industry talent programming, shared information about I-CAR’s Collision Careers platform, created for the industry and external partners to collaborate to help reposition the industry as a growing, exciting and stable field. The Collision Careers website includes information about industry roles and explains a typical career path. It also has downloadable posters and printed materials for school administrators, advisors and counselors to share with career seeking students.
Jennifer Maher, CEO of the TechForce Foundation, talked about the nonprofit’s dedication to helping young people explore the technician profession and champion them throughout their journey. The national marketing and engagement director of Collision Engineering, Molly Mahoney, explained their partnership with colleges focused on delivering an immersive apprenticeship training model for collision repair training programs to help build a new generation of collision professionals.
Creating
Industry Awareness Panelists stressed the importance of bringing awareness to the collision industry.
“There are almost 160,000 new technicians needed every year to keep up with demand,” said Maher.
She noted all skilled trades — auto, diesel, motorcycle, marine, motorsports, welding, etc. — are facing a shortage.
“At the end of the day, you’re not only competing with the other sectors of the mobility industry, you’re competing with all skilled trades so you have to cast that net wider,” she advised. “You have to be able to fill the pond and they need to hear that the technician profession is a great career path.”
“We’re essentially in a trade war,” added Eckenrode. “We’re competing against the other trades for people. We want to be the first choice for these students.”
Maher said prospective candidates need to see what the industry is like and how they fit in.
“Some will be very passionate about collision; some might not be,” she said. “You need to bring them in because they may start as an auto tech, but then their curiosity is piqued, and they might migrate to collision.”
Bickett pointed out the industry needs a larger funnel.
“We need a good sample to look for the right aptitude and attitude — what’s in the head and the heart — because we’re going to spend a lot of time and energy to help these new entrants be successful.”
Goroff suggested casting that wide net through social channels, YouTube videos and other places where students are already looking for information. The Collision Careers YouTube channel has seven videos, with more to come, ready for industry use and geared towards attracting future technicians to all roles.
She also recommended creating belief.
“If somebody doesn’t believe that they will find their fit in our industry, be respected and have a career path, it doesn’t matter how much we
market to them,” she said. “We truly want people to be able to picture themselves thriving as a collision repair technician.”
When looking for employees, she suggested reaching out to a diverse audience and using words and imagery they aspirationally use to describe themselves, such as innovators, dream makers, problem solvers, creators or game changers.
Eckenrode recommended working with school counselors to help spread the message.
“We’ve heard that students are being told to pick their career path at the junior high level, so we can’t wait until they get to high school to have them consider or even be aware of this industry,” he said.
Mahoney noted technical careers are increasingly being talked about in mainstream media.
“The problem is they’re not talking about collision,” she said. “What we’re seeing, especially at career fairs, is that many of those with a four-year degree are looking for different, unique opportunities.”
However, they often don’t know where the entry points are and aren’t easy to find. Mahoney said education must be part of the solution.
Someone might walk into a school and say, ‘I want to do automotive and really want to do collision,’ but they don’t know what collision is,” said Mahoney. “It needs to be better outlined. They need to know what the career path is, and they need to hear it from the students and the technicians working today.”
Financial Support for Technical Training
According to CREF’s database, Eckenrode said there are about 960 high school and post-secondary collision school programs nationwide. Many have low enrollment numbers and limited budgets.
Programs are constantly evaluated and if they don’t have enough students, they are often the first to be considered when cutting budgets.
“The support of the industry getting involved and investing in local schools is going to be key to keep them thriving and open,” Eckenrode said.
Maher said many students lack funding for tuition, even for a oneyear or community college program.
“There is a real need for tuition scholarships,” she said. “There’s also the cost of being able to afford the tools and materials.”
Whether the barriers are childcare, groceries, family work or a job, Maher said the industry’s job is to determine how to keep students learning. Many use CREF and TechForce for scholarships to help with tuition.
Goroff said a scholarship or a donation as small as $1,000 can overcome a barrier and keep a student on a learning path.
The Power of Collaboration
Bickett said a great opportunity exists for the industry to work together to address these issues.
“It’s a huge challenge and a crisis for all of us,” he said. “Everybody can play a role to help solve the problem.”
Bickett suggested the constraint comes from shops and recommended the industry adopt a learning culture.
“As more shops adopt a strategy and there’s demand for new entrants, hard work will pay off and create success in growing the organization,” he said.
“The most important thing we can do together is to make sure this industry has a stable future and we are not sustainable without new, fresh talent continuously flowing in,” said Goroff.
She recommended uplifting each other to make this an industry of choice.
“We promote TechForce and the Collision Engineering program and will hopefully be marketing our partnerships with many others in the industry, starting with those that are not for profit,” Goroff said. “This will enable our technicians to be successful as they learn.”
CREF and I-CAR collaborate with the American School Counselor Association and attend events with counselors from across the country to share information about the industry and present it in a more professional light.
In addition to talking to counselors, Maher said it’s important to speak to students and understand what they get excited about in a career.
TechForce partnered with Collision Engineering to conduct a focus group with collision students. Using the information they learned, the organizations created a video to attract students to the profession.
“Collaborating with other organizations and being able to go into schools and listen and hear and then regurgitate back to them what they’re saying is really powerful,” she said.
4 JUNE 2024 AUTOBODY NEWS / autobodynews.com
During IBIS USA, five talent acquisition program leaders shared insight about the technician shortage and the importance of collaboration.
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Mike Anderson — From the Desk of Mike Anderson
Battery Reconnects Lead Police to Visit Shop 3 Times Until Solution Found
In a column earlier this year, I shared one shop’s story about sunlight getting magnified through a small pool of rainwater that collected in the crash wrap covering a broken sunroof — causing burn damage to the interior of the vehicle. I recently heard yet another amazing and unexpected collision repair situation, this one from Ryan Clark of Eustis Body Shop, a company with eight shops in Nebraska.
Ryan told me they recently had a 2023 Nissan Altima SV in one of his shops for a routine quarter panel hit. When writing the repair plan, the shop determined it would be necessary to replace the left quarter panel on the vehicle. Part of the procedures for replacing the quarter panel is to remove the back glass from the vehicle.
“We had a sublet provider remove the back glass,” Ryan told me. “Another required operation is to disconnect the battery, something we performed multiple times during the repair. The first time the battery was reconnected in order to move the vehicle to a different department, the local police department showed up. The police officer asked if there had been a collision near our shop. We had not heard anything relative to a nearby crash, nor did the office divulge what type of vehicle had triggered the ‘crash event notification,’ so we moved on.”
My first thought as I was hearing about this from Ryan was that this was probably related to some sort of telematic accident alert system, so I would have thought putting the vehicle in service mode until repairs were completed would have solved the issue. But it probably would not have, as Ryan’s story continues.
“The second time we reconnected the battery, after the back glass was removed, the police showed up again,” Ryan told me. “It was at this time that the police told us that it was SiriusXM radio that notified the police of a crash event. We told them they were welcome to take a look around the shop, and it was at this time we determined it was the Nissan Altima leading to the crash notification. We hadn’t disconnected the rear antenna, so at first we were confused about what could be causing these calls.
“However, we did notice during disassembly that the amplifier in the rear glass was damaged upon removing the back glass,” Ryan said. “This amplifier is embedded in the urethane itself, and there was no tangible way on this vehicle to remove the back glass without damaging the amplifier. There was urethane surrounding the disconnect, so we were unable to remove the amplifier prior to removing the back glass.”
Ryan said he told the officer the crash notification would likely happen again when the shop next moved the vehicle from the paint department back to the body department.
“He told us he has to act when he gets these types of calls, so he would have to show up again,” Ryan said. “We looked through Nissan TechInfo again, and still couldn’t find a way to disable the SiriusXM radio.”
The police eventually showed up a third time, and that’s when Ryan reached out to me and my team. We also looked through Nissan TechInfo just to see if there was anything Ryan’s shop had missed. When we
didn’t find anything, we got Ryan in touch with a Nissan representative.
“Nissan disconnected the SiriusXM for us, and the next time we reconnected the battery, the police did not show up,” Ryan said. “It was the proper fix. We contacted Nissan once repairs were complete, and they turned back on the SiriusXM, we went through our normal post repair routine, and everything was functioning correctly. Eventually Collision Advice, and Danny Gredinberg with the Database Enhancement Gateway, found a work-around in the service section of TechInfo for the future.”
Ryan said this was a first for his company. The police officer told him he’d had similar calls to other body shops related to General Motors vehicles when OnStar hadn’t been disconnected, but that this was the first such incident related to a Nissan.
“We pull procedures on every
there are still things in these newer cars we must be prepared for so we can educate the customer on the potential issues that may arise,” Ryan said.
“The first time the battery was reconnected in order to move the vehicle to a different department, the local police department showed up.”
I want to thank Ryan for allowing me to share his experience. If other readers have similar unusual or unexpected repair experiences that might be helpful for other shops to know about, you can send them to my assistant, Tiffany Driggers, at tiffany@collisionadvice.com, and she
6 JUNE 2024 AUTOBODY NEWS / autobodynews.com
Ryan Clark of Eustis Body Shop was surprised to have the police show up at one of his Nebraska shops, saying they’d been notified of a crash at the location.
RYAN CLARK EUSTIS BODY SHOP
The disconnect for the amplifier for SiriusXM radio is embedded in the urethane for the back glass so there’s no way to remove the glass without damaging the amplifier.
autobodynews.com / AUTOBODY NEWS JUNE 2024 7
New Law Targets Predatory Towing in Florida
Florida has introduced a new law to counter predatory towing practices, ensuring greater consumer protection and industry accountability, as Gov. Ron DeSantis signed HB 179S.
Strongly backed by the National Insurance Crime Bureau (NICB), the new law is designed to prevent Floridians from falling victim to unscrupulous towing companies that impose hidden and exorbitant fees. State Rep. Melony Bell, R-Fort Meade, and state Sen. Keith Perry, R-Gainesville, sponsored the bill.
“Predatory towing in Florida has emerged as a pressing issue for the Sunshine State, significantly impacting individuals’ lives and
livelihoods, and this measure will go a long way in implementing critical reform measures,” said Eric De Campos, senior director of strategy, policy and government affairs for the NICB. “We really appreciate the hard work by Rep. Bell and Sen. Perry to address this issue, because predatory towing places significant financial burdens on unsuspecting vehicle owners as hidden towing fees leaves individuals with an unexpected and hefty expense. We also want to thank the legislature for addressing this important issue, and the governor for signing this bill into law.”
One alarming aspect the legislation aims to curb is the practice of towers charging excessive fees for short-distance tows, with reports of charges reaching up to $10,000 for a single tow. This reform is a response to the distress and financial hardship many Floridians face, particularly after vehicle accidents, where
they are most susceptible to exploitation.
The law requires reasonable towing and storage fees; mandates that towing companies accept various payment methods, facilitating easier transactions for consumers; shortens the notice of lien periods, enabling quicker vehicle recovery; and extends the time frame for owners to reclaim their vehicles before they are sold.
“There is a real need for comprehensive reform to protect consumers from unfair and exploitative practices,” said Bell. “Until meaningful reform is enacted, individuals in Florida will remain vulnerable to the pitfalls of predatory towing, with the potential for financial hardship and emotional distress looming over every parking decision.”
“We need decisive action to combat predatory towing practices and ensure fairness and transparency for Florida’s residents,” said Sen. Perry. “This law would implement important measures that protect consumers and promote accountability within the towing industry.”
ALLDATA announced the launch of Repair Planner, the newest addition to the company’s integrated collision repair platform.
ALLDATA Repair Planner is a timesaving software tool that automates the repair planning process and helps shops plan necessary inspections and structural repairs with original equipment manufacturer (OEM) accuracy.
It works with the three major estimating systems and integrates seamlessly with ALLDATA Collision® for oneclick access to related OEM information and procedures.
Benefits to shops include saving hours of research time, getting access to OEMaccurate vehicle repair and help limiting liability. ALLDATA Repair Planner calls out critical OEM procedures, ensuring shops never miss required repairs and vehicles are repaired back to OEM standards according to the manufacturer’s own criteria.
8 JUNE 2024 AUTOBODY NEWS / autobodynews.com
Brought to you by with Cole Strandberg Also on autobodynews.com & other podcast platforms Weekly episodes featuring industry thought leaders, shop owners and collision pros. We talk trends, culture, growth and scalability, giving actionable insights that will elevate your business. OUR PODCAST IS LIVE! A few of our Featured Guests: Mike Anderson David Leuhr Brandon Eckenrode Ryan Evans Rivian & many more New episodes available weekly. Listen now on:
ALLDATA Launches Repair Planner
Associations Working to Enact State Laws on OEM Procedures, Right to Appraisals
by John Yoswick Autobody News
Bob Redding, chairman of the Governmental Committee of the Collision Industry Conference (CIC), drew laughter from CIC attendees in Seattle in mid-April when he polled the audience to ask: Do you think Congress is doing a good job at getting things done? Almost everyone in the room, 95% of those responding, said no.
“It’s pretty evident that this has not been the most impactful Congress in history,” said Redding, who serves as a lobbyist for the Automotive Service Association.
He pointed to legislation that Democrats and Republicans worked together to enact in 2017 to provide the auto industry with guidelines related to research and development of autonomous vehicles — a subject federal lawmakers have since failed to further agree on in the intervening years, leading to a patchwork of state-by-state regulations.
“If the federal government doesn’t do something, some or all the states will fill the void, and that’s what we’re going to talk about here,” Redding said, kicking off a panel discussion related to state collision repair associations’ legislative efforts.
‘Right to Appraisal’ Sought
Jill Tuggle, executive director of the Auto Body Association of Texas, said ensuring a consumer’s right to an appraisal when there’s a disagreement about the amount of an auto policy loss is one of her association’s key legislative priorities.
“We’ve submitted that [legislation] twice in Texas, and it’s going to be high on our agenda for 2025,” Tuggle said. “When the right to appraisal was removed from some insurance policies, we were able to get the attention of the Texas
Department of Insurance. It was kind of an ‘uh-oh moment’ for them that they realized that they let these policies kind of sneak through.
“It is outlined on their website that they believe that the right to appraisal is a consumer right, but it is not anywhere on the legal books in Texas,” Tuggle continued. “Luckily, between the DOI and the Office of Public Insurance Council, they kind of put their thumb on that, but in the meantime, we do need to get some legislation passed. So while we will still be submitting our safe repairs bill and championing that all the way to the finish line, the right to appraisal is going to be something that we put extra effort into.”
That “safe repairs bill” would have prohibited an insurer from disregarding any repair operation or cost identified by an estimating system, or any procedure recommended by the vehicle manufacturer. Tuggle said she was surprised by the opposition to the legislation from the alternative parts industry.
“We removed any OEM-partsonly language from the bill a couple sessions ago, so it’s been several years since we’ve had anything like that in there,” Tuggle said.
She said member shops often tell her they can make more money using non-OEM parts if those parts have been tested “for the same tensile strength, weight and fitment, [so that shops] had a little bit more peace of mind that the parts would fit properly and crash the same way. So standards are really the only thing parts-wise that enters into our bill language.”
She said she truly believes shops “have the power to change policy both on the state and national level” if they use their voice as someone who lives and works within their legislators’ district.
“Oftentimes, our opposition has very deep pockets, and it would take years and years for us as
independent repairers to pool the money and resources necessary to get some of the meetings that they get very easily,” Tuggle said. “But the one thing that they don’t often have is constituents in the [lawmakers’] district. And so when they go down to the state Capitol to testify in opposition of our bills, they are often flying in from other states.
It’s pretty evident that this has not been the most impactful Congress in history.”
BOB
REDDING AUTOMOTIVE SERVICE ASSOCIATION LOBBYIST
“Legislators do care about their constituents, and they do know that when the session is over, they have to go back and look you in the face,” she continued. “They have to see you at the barbecue joint, and they have to answer to you on why they voted against something that is very important to your business, or voted for something that hurts your business. And so I would say using our voice is the most important thing that we can do.”
Puzzled by Opposition
Another panelist, Washington state shop owner Jeff Butler, said he too was puzzled by some of the controversy earlier this year over the Washington Independent Collision Repair Association’s proposed legislation calling for the use of OEM repair procedures and giving policyholders the right to call for an independent appraisal when there is disagreement about repair costs.
“The committee chair, Rep. Amy Waylen, owns dealerships, and she decided to oppose the legislation,” Butler said. “We’re a little confused as to why that’s happening.”
He said federal standards have made cars safer, so it’s not clear why there is debate about fixing them to the standards to which they were built.
“There’s a roomful of us here talking about how to fix a car,” Butler said. “And yet we have to try to pass a law in order to be able to do that?”
He said another lawmaker had sponsored the right to appraisal bill because his family had personal experience with an insurer refusing
some repair costs after his wife’s parked car was hit.
Butler said his own claims consulting business has prevailed in 14 short-pay disputes that went to mediation.
“The average short-pay was $6,000, and some were $12,000,” he said. “This is not good faith. This is just not how business is supposed to be done. But it’s happening with some carriers. And let’s be fair: There’s bad actors in every segment of life, right? There are bad repairers. We’ve all seen that.
“So I’m not naming any names or saying the insurance industry as a whole is wrong, because that’s not true,” Butler continued. “There are good insurers out there doing the right thing. But this kind of behavior needs to change, which is why the laws need to change to ensure the right to appraisal exists in every policy.”
New CIC Chairman
Also at CIC in Seattle, Dan Risley of CCC Intelligent Solutions was named as the new chairman of CIC. Prior to joining CCC in 2018, he spent five years as executive director of the Automotive Service Association. He was inducted into the Hall of Eagles, the collision industry’s hall of fame, in 2022.
“I know Dan is very passionate about our industry, he’s given of himself to an immense extent, he’s very energetic and driven, and he gets things done,” Darrell Amberson, who has served as interim chair of CIC the past several months, said in making the announcement.
Risley follows Frank Terlep of Opus IVS, who served one year as CIC chair.
The CIC chair is chosen by a committee of those who have previously served one or two years as its chair since CIC was founded in 1983.
The conference is held quarterly in locations around the country. The next meeting is July 10 in Denver, CO.
autobodynews.com / AUTOBODY NEWS JUNE 2024 9
Jill Tuggle of the Auto Body Association of Texas said they will again push next year for legislation requiring auto insurance policies to include a “right to appraisal” clause.
Bob Redding, chairman of the CIC Governmental Committee, said while Congress is sharply divided politically, state legislatures continue to address industry-related legislation.
Dan Risley of CCC Intelligent Solutions was announced as the new chair of the Collision Industry Conference (CIC).
Collision Facility Owner Sees Value in Supporting Customers, Employees, Community
As a young boy, Elias Akiki helped his father, Mounir, repair vehicles in their home garage in Massachusetts. The Akiki family had migrated to the U.S. from Lebanon in 1972 and Mounir worked at different facilities during the day and repaired cars at their residence in the evening. In 1986, he and his wife, Laura, founded Akiki & Sons Inc. in the Hyde Park area of Massachusetts.
Elias continued to help at the family body shop after school and during summer vacations. When he was 12, Elias asked the mechanical shop owner next door if he could purchase the business. Elias was told he would let him know when they were ready.
“Eventually, that time did come,” recalled Elias.
When he was 19, Elias purchased the family business, and two years later, in 2000, he bought the shop next store and named it Akiki Auto Repair.
I consider family.
Many employees have worked at the shop for more than 20 years and I’m very happy with everyone here. I don’t have a lot of turnover. If somebody decides to leave, it’s usually a mutual understanding. It’s never disgruntled; it’s just somebody going in another direction.
We want our coworkers to develop as human beings and grow, not just within our company. If that road makes them grow and they end up outside these walls, we’re fine with that as long as they’ve experienced personal growth.
Q:
How have you supported that growth through training?
A:in Boston, with about 7,000 moves a month. As the three businesses grew, Elias relocated to a larger location in Hyde Park. This includes the 20,000-square-foot collision repair facility and 10,000-square-foot mechanical shop. They currently have 100 employees, 20 of whom work in the collision business.
Autobody News talked to Elias about the importance of supporting customers, employees and the community, as well as becoming OEM-certified.
Q: What sets your business apart from others in the industry?
A: Our commitment to customers whom we consider friends, our community, and the people who work within the walls here — our employees — whom
We pay for all training our employees want to attend to help advance their career. As an I-CAR Gold Class facility, our technicians take I-CAR classes. We also arrange training for employees to keep up with their skills, such as welding. In addition, we receive training through our OEM certifications. As far as personal growth, we have a partnership with Collision Advice and Discover Leadership where we send our management and leadership team, as well as our service writers and those who interact with customers. We also have an in-house program for employees to develop their personal and professional growth.
Employees know that I’m committed to them and their growth while working together to achieve our mission of providing a world-class service and product. At the same time, I want our team to take it to another level and get paid for the work we do without putting in 10 hours of overtime. A good quality of life is important.
Many in the industry don’t want to bother training anyone because they feel the person will leave. They might and they might not. You need to put your best foot forward and think of the goodwill of the industry.
Q:
Why is it essential to be OEM-certified?
A: We are OEM-certified in every brand we can be —Acura, Ford, Chevrolet, FCA, Honda/Acura, Hyundai, Infiniti, Kia, Nissan, Rivian and
Subaru. We are working to become certified with auto manufacturers that require invitations or sponsorships. It’s essential to be OEM-certified to demonstrate that the business is dedicated to the ultimate standard of repair. Consumers know that our facility repairs vehicles according to the manufacturers’ procedures.
I explain to customers that other shops may not repair vehicles to the certified standard. We let them know that we are the only people in this entire process of repairing vehicles that work solely for them. We tell them that “You are our boss. You give us the instruction on what to do.” You can never explain that enough to customers.
Many people are always thinking about doing what is right. I tell my team to do what is right for the customer.
Q: What is your strategy when hiring new employees?
A: I have developed relationships with the vocational schools in our area and I reach out to the school liaisons, as well as local leaders and politicians. They will introduce me to potential candidates because of my activity in the community. When you’re involved, you are going to meet local politicians who have connections with vocational schools, night programs and adult retraining programs, which helps bring in new people for internships.
A:Q:How do you and your team support the community?
We support the community in many ways and make sure we are present and accountable. If the community needs help, we step up and take care of it, whether it’s street cleaning, litter pickup, tow truck service or a road race. We sponsor every event we are asked to sponsor. We’re boots-on-theground and very present. I believe it’s important for the community to know that we feel it’s our community, too, and we’re helping to create a better place for everyone.
I take pride in being accessible. I’m vice president of the Hyde Park Main Street Association, which supports the area in many ways. We’ve remodeled about 20 abandoned homes in the neighborhood and rented them to families. I’m also a member of the Hyde Park Board of Trade. By
improving the surroundings, my neighbors are healthier and happier, which gives more prestige to the area.
A lot of shop owners think that they’re visiting the community where they work but need to realize they are improving their circumstances when they improve their surroundings. It’s not just a $100 donation. It’s a way of life.
I’ve been active in the Alliance of Automotive Service Providers (AASP)-Massachusetts for about four years and encourage colleagues to join and help support the industry. We have a lobbyist who is helping us increase reimbursement rates. When association members were picketing at the statehouse in 2021, I took coworkers with 60 of our towing trucks and wrecked cars. Although the law wasn’t changed, our labor rates have increased over the last couple of years, probably more than they’ve gone up in 30 years.
It makes a difference getting together and speaking up 100%. You may not get everything you ask for, but people take notice.
We are also members of the Society of Collision Repair Specialists (SCRS). The national organization has a lot of information that helps the industry. We reach out to them to learn about their offerings, such as the health care and 401K plans.
For the past year, I’ve taught the appraisal class in the evenings at the local vocational school for those who want to become a Massachusetts licensed appraiser. Two students in the class are now working with me and two people in the auto body program next door have joined my company. By putting in that time, I was able to hire four employees. That might not have happened, but you need to be willing to do the work and give back to the industry that has given so much.
Q: What is your advice to shop owners about getting involved in the industry?
A: I’ve noticed that some people feel it’s someone else’s job. I used to be one of those people until I realized that if everyone keeps thinking that, then no one will do it. In the generation before me, someone carried the torch. It’s a tiring, thankless job but we must pass the torch continually. Everyone needs to carry a little bit so that the load isn’t that much and we are making progress, even if it’s slowly.
10 JUNE 2024 AUTOBODY NEWS / autobodynews.com
Stacey Phillips Ronak — Shop Strategies
Many of Akiki & Sons’ employees have worked at the collision repair facility for more than 20 years.
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autobodynews.com / AUTOBODY NEWS JUNE 2024 11 VEHICLEEMISSIONCONTROLINFORMATION
2016MY California:
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ALL APPLICABLE FEDERAL MOTOR VEHICLE SAFETY , BUMPER , AND THEFT PREVENTION STANDARDS IN EFFECT ON THE DATE OF MANUFACTURE SHOWN ABOVE . PASS. CAR C⁄ TR : 4Q2 ⁄ LA43 ACV30L--CEPGKA A ⁄TM: --01A ⁄ U241E MADE IN U.S.A. 08270 00000000000000000 KENTUCKY, INC. 02⁄ 04 D. BY HOND VEHICLE CONFORMS TO ALL APPLICABLEFEDEMOTOR VEHICLE SAFETYAND THEFT PREVENTION STANDARDS IN EFFECTON THE DATE OF MANUFACTURE SHOWN ABOVE.V.I.N.: 00000000000000000 TYPE:MPV STK A AA5 --NH737M --A --A 2200KG(4894LBS) 1155KG (2546LBS)P235/55R18 R 1080KG (2381LBS)P235/55R18 99V VEHICLEMFD.BYFORDMOTORCO.INU.S.A. DATE: FEDERALMOTOR 01/03 FRONTGAWR: 2735LB AT 240 kPa/35 1240KG70R16SL REARGAWR: 3325LB 1508KG P235/70R16SL 16X7.0J GVWR: 5880LB/2667KG WITHTIRESRIMSCOLD WITHTIRESRIMS PSICOLD TIREANDLOADINGINFORMATION TIRE SIZE COLDTIREPRESSURE 303kpa 44psi 303kpa 44psi 303kpa 44psi Thecombinedweightofoccupantsandcargoshouldneverexceed 505 Kg or 1114Lbs. P265/70R17 P265/70R17 P265/70R17 FRONT REAR SPARE SEEOWNERS MANUALFOR ADDITIONAL INFORMATION SEATINGCAPACITY TOTAL 3 FRONT 3 REAR 0 VEHICLE MFD .BY: TOYOTA MOTOR MANUFACTURING, GVWR 4233LB GAWR FR 2668LB RR 2668LB THIS VEHICLE CONFORMS TO ALL APPLICABLE FEDERAL MOTOR VEHICLE SAFETY , BUMPER , AND THEFT PREVENTION STANDARDS IN EFFECT ON OF MANUFACTURE SHOWN ABOVE . PASS. CAR 08270 00000000000000000 KENTUCKY, INC. 02⁄ 04 VEHICLE MFD. BY HONDAOFAMERICA MFG., INC. 06⁄’10 THIS VEHICLE CONFORMS TO ALL APPLICABLEFEDERAL MOTOR VEHICLE SAFETYAND THEFT PREVENTION STANDARDS IN EFFECTON THE DATE OF MANUFACTURE SHOWN ABOVE.V.I.N.: 00000000000000000 TYPE:MPV STK A AA5 --NH737M --A --A GVWR 2200KG(4894LBS) TIRESIZE RIMSIZE GAWRF 1155KG (2546LBS)P235/55R18 99V 18X7 1⁄2J GAWRR 1080KG (2381LBS)P235/55R18 99V 18X7 1⁄2J VEHICLEEMISSIONCONTROLINFORMATIONConformstoregulations:2016 MY California: Not for sale in states with California emissions standards. TWC/HO2S/WR-HO2S/CAC/TC/DFIU.S.EPA:T2B4 LDV 2.3L-Group:GFMXV02.3VJW Evap:GFMXR0125NBV Noadjustmentsneeded. FEDOBDII Fuel:Gasoline ABZ FOR ADDITIONAL INFORMATION ABOUT AUTO DATA LABELS: visit our website at www.AutoDataLabels.com email us at labels@AutoDataLabels.com | or call us at (631) 667-2382 ©2022 LKQ Corporation. Visit us at Portal.LKQcorp.com and LKQcorp.com IT’S AS EASY AS CLICK IT & STICK IT QUALITY PHOTOS PRODUCE GREAT REPLACEMENT LABELS Quality of Lighting: Orientation and File Format: Angle and Distance: Multiple Angle Photo: Proof Photo Before Submission:
Not for sale in states with
emissions standards.
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Insurance Institute for Highway Safety.
In June 2023, NHTSA and the Federal Motor Carrier Safety Administration announced a separate notice of proposed rulemaking that would require heavy vehicles, including tractor trailers, to have AEB, which the agencies are in the process of finalizing.
“The new vehicle safety standards we finalized today will save hundreds of lives and prevent tens of thousands of injuries every year,” said U.S. Transportation Secretary Pete Buttigieg
“Automatic emergency braking is proven to save lives and reduce serious injuries from frontal crashes, and this technology is now mature enough to require it in all new cars and light trucks,” said NHTSA Deputy Administrator Sophie Shulman . “In fact, this technology is now so advanced that we’re requiring these systems to be even more effective at higher speeds and to detect pedestrians.”
www.autobodynews.com
As a new “Carolina Squat” law takes full effect in South Carolina, auto repair shops are gearing up to assist car owners in meeting the new regulations, which could come with significant costs. The law penalizes drivers whose car’s front fender is raised 4 or more inches above the height of the rear fender.
Joey Lemmon, owner of Hound Dog 4x4 in Columbia, SC, told News 19 how the pandemic initially disrupted the auto repair industry. “We had a lot of parts not being able to get shipped and people were waiting on parts for weeks and months, multiple months. It was just really difficult, different to see how quick something could change just shutting everything down,” he said.
Now, Lemmon said his shop has returned to pre-pandemic operational levels. “We can get most of our stuff if its in stock with our distributors within one to two days at most. We’re back up to pretty much where we were; we
can have just about any part there is within a week.”
The law went into effect Nov. 12, 2023, but included a 180day grace period. Now that the grace period has ended,
Lemmon explained.
Under the new law, drivers face a $100 fine for the first offense, $200 for the second, and a $300 fine with the loss of driving privileges for a year on the third offense.
mechanics are now ready to help car owners bring their vehicles into compliance. However, the costs for these adjustments can be steep.
“It can range anywhere from something as simple as $400 or $500 up into a couple of thousand dollars just depending on what all the vehicle’s gonna need,”
William Bennett, a master trooper with the South Carolina Highway Patrol, said the law aims to prevent future collisions caused by poor driver visibility of the roadway or other vehicles. Bennett said the modified stance can also change the angle of the “squatted” vehicle’s headlights as seen by other drivers, momentarily blinding them.
“That could be a cause of some collisions happening and so that’s ultimately, with us enforcing these laws, like the Squat law, we’re trying to prevent collisions from happening,” Bennett told the news outlet.
12 JUNE 2024 AUTOBODY NEWS / autobodynews.com
l CONTINUED FROM COVER
South Carolina Auto Shops Ready To Help Owners Comply With ‘Carolina Squat’ Law www.polyvance.com 800.633.3047 PLASTIC REPAIR YOU CAN COUNT ON Polyvance® equipment and training will help you repair more plastics, keep more labor hours in your shop, and improve your cycle time. request a demo
Bosch Bringing EV Training to Technicians Nationwide
By Abby Andrews Autobody News
Bosch’s Mobility Aftermarket division, along with its supplier, AVI, is bringing the Bosch EV Training Tour to up to 20 cities around the U.S. this year, with plans to expand both the reach and depth of the mobile training events in coming years.
“The main purpose is that we really want to help technicians in the new world of mobility,” said Daniel Angelo, director of technical services at Bosch. “We have a huge [EV] market already. The early bird gets the worm.”
The tour began in March with the first of three classes for Bosch employees to validate the content before taking the show on the road.
The first single-day, eight-hour class for technicians is scheduled for July 9 in Houston, TX. Bosch has 19 more events scheduled across the country between July and January 2025. Each will have room for 20 attendees. The cost is currently $650 per attendee. See the full schedule and register at aviondemand.com/ shop/service-centers/bosch-evtraining-tour.
Angelo said the single-day course, led
by a Bosch-certified AVI professional trainer, will teach the basics to technicians with any level of familiarity with EVs. In addition to learning the fundamentals of an EV, attendees will learn about legislation and U.S.
AVI, said the training tour will prepare independent repair shops to service EV models as many are aging well past the warranty.
standards, then work hands-on with a Toyota Prius hybrid car and an EV training aid cart. After completing the course, techs will be able to perform regular maintenance and troubleshooting.
Next year, Bosch plans to offer a more intensive three-day course, after which techs will be qualified to perform more complex tasks, like opening battery packs.
Tom Rayk, director of training at
“Without firsthand experience and training, many technicians will be unable to provide these services safely and successfully, and could potentially lose business,” Rayk said. “Our technical aids, combined with the Bosch EV repair curriculum, will arm technicians and shop owners with the realworld experience they will need to prepare for the electric vehicle transition.”
Angelo said Bosch wants to schedule the tour stops so no technician has to drive more than 150 miles for the training.
“The concept is that shops don’t have to send their technicians to California, Florida or Michigan,” he said.
The tour stops are being selected based on three factors: the rate of EV adoption in the area, local shops that have requested such training, and the number of shops in the area participating in the Bosch Module
Program, an independent repair shop network. There are about 9,000 nationwide.
In addition to professional technicians, Bosch wants to include automotive and collision repair students, and is working with tech schools to get their programs involved.
Angelo said about 25 students, all under 20 years of age, attended the class held in March in Florida.
“None grabbed their phone once in about two and a half hours,” he said. “They are really paying attention. That was a good test.”
Bosch hopes the training tour helps address the technician shortage by exposing not only young people at the start of their careers to opportunities in new technology, but also more experienced working technicians possibly looking to make a change.
In addition to expanding to more cities in the next few years, Bosch plans to add training courses for more advancing technologies, like autonomous vehicles, connected vehicles, ADAS and diagnostics.
Learn more about the Bosch EV Training Tour at aviondemand. com/shop/service-centers/boschev-training-tour.
autobodynews.com / AUTOBODY NEWS JUNE 2024 13
The Bosch EV Training Tour trailer.
New Event to Give Repair Shop Owners Tools to Attract, Develop, Retain Top
Talent
By Abby Andrews Autobody News
A new live event aims to empower repair shop owners and managers to find the right employees, develop them into a high-performing, selfmanaging team, and retain them.
The inaugural Repair Shop Growth Systems LIVE 2024 workshop is scheduled for May 31-June 2 at the Guttman Development Strategies headquarters in Mt. Arlington, NJ. Over three days, attendees from collision repair, diesel, transmission and general auto repair shops will participate in a series of educational sessions and breakout groups. Event organizers aim to hold similar workshops around the country going forward.
Chris Lawson is the founder of Technician Find, a leader in automotive technician sourcing, which is co-hosting the event with Magical Solutions and Shop Management Alliance.
Lawson said one of the scheduled presenters, Eddie Lawrence, a shop owner, has a quote that sums up the main focus of the event: “With the right staff in place, you gain freedom, and you can’t place a price on that.”
“He tells the story about how it took him 10 years to figure it out, and he could’ve saved himself a lot of pain if he’d had a workshop like this to address those items,” Lawson said.
Each of the three days zeroes in on a different piece of the staffing puzzle many shops are currently facing: the first day is about attracting employees, the second is about growing those employees into teams, and the third is about retaining them.
Main Issues in Repair Shop Staffing
Lawson said the automotive repair industry is facing many of the same problems as other trades. Older technicians are leaving at a higher rate than new technicians are coming in, partly due to a stigma attached to the idea of working in a trade.
But he said the other issue, which he sees personally through his work with Technician Find, is that shops don’t know how to market themselves to attract top talent.
“They don’t know how to package and communicate what they offer, their unique culture,” Lawson said. “All their job ads look exactly the same.”
In addition, Lawson said, job boards are not the best place to look for new employees.
“If someone is a good tech and they
want to work, they’re already working, so they’re not typically trawling job boards,” Lawson said. “So you have to go outside job boards to social media to find them.”
How This Workshop Will Help
“All shops seem to have a sticking place,” Lawson said. “Some have problems attracting talent. Some have problems developing it, some have trouble retaining it.”
and Frank will talk about how to get employees behind causes, to increase retention and attract top quality talent.
Howard Guttman is a management consultant and trainer who works with Fortune 500 companies to develop highly productive, self-managed teams. He will present a session on how to do that in repair shops.
Shawn Gilfillan is Guttman’s nephew and owner of two auto repair shops.
There will be several breakout sessions to focus on individual “sticking places,” and attendees will receive workbooks so they leave with a plan to address theirs.
“There will be certain key action items within each of those areas, so they can pick which ones they want to implement when they go back to their shop, to help them get unstuck,” Lawson said.
Speakers
and Presentation Topics
Lawson said he will present his “technician attraction blueprint” that has helped Technician Find generate more than 80,000 applications for repair shops over the last six years.
Lawrence will share his “life calibration” strategy, which uses gears, knobs and dials to help people gain clarity and make progress in their lives, which he developed after he realized he wasn’t ensuring his shop’s 20 employees “felt their life worked inside and outside of the shop,” Lawson said.
“He started something called the ‘life calibration,’ born out of a near tragedy in his life, which he shares with his employees,” Lawson said. “He uses it as a retention tool.”
Leigh Anne Best are the co-founders of Brakes for Breasts, which organizes auto repair shops to raise money every October for the Cleveland Clinic, which is working on a vaccine for breast cancer. Their nonprofit has donated hundreds of thousands of dollars since 2011. Best
out of the daily operations of his shops, because his employees are now capable of managing those tasks.
Gilfillan will also give a presentation on how to structure pay and create a profit-sharing plan to retain top talent.
“I speak with a lot of shop owners and general managers, and it surprises me how a lot of them aren’t really clear on what they should be paying their staff,” Lawson said. “When I fill them in based on prevailing rates in their area, they’re not sure how to back into that number. Shawn will teach a class on how much you should be paying and how to calculate that, by looking at your numbers.”
Carm Capriotto will share “The Rise of the Mechanical and Technology Specialist,” about rethinking techs’ job titles to make them more specific to the role they play in their shop.
Lawson said that gives the technicians clarity on their own role and boosts morale, while showing the public they have certain specialties that make them critical to auto care and maintenance.
He will talk about how implementing his uncle’s strategies helped him step
For more information and to register, visit www.repairshopgrowthsystems. com/get-tickets1712943095826.
14 JUNE 2024 AUTOBODY NEWS / autobodynews.com
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THE NEW ERA OF DIGITAL PAINT MIXING.
How PPG’s Innovations are Improving Key-to-key Productivity
and Shop Profitability
In today’s competitive marketplace, the high production collision repair center must be relentless in improving key-to-key productivity. That holds especially true in the paint operation, where color accuracy and throughput performance play a key role in a shop’s overall performance.
Taking advantage of emerging digital color tools is one area where significant gains can be achieved. For example, marrying the innovative PPG MOONWALK® automated mixing system with the ENVIROBASE® High Performance waterborne system is proof of what can be accomplished.
With over 40,000 users worldwide, the Envirobase High Performance system is well known for easy blending, color match performance and overall efficiency. The MoonWalk system was designed specifically to take the Envirobase system to the next level of color accuracy and performance.
The process of creating an automated paint mix is simple. After retrieving the matching formula, the technician loads the required toners on a dispensing rack. With one click, the MoonWalk system takes it from there. It automatically dispenses the exact amount of each toner—at an accuracy ten times more precise than the standard. To further eliminate waste, the system is designed to ensure all of the toner is used, down to the last drop.
“It mixes to the hundredth—not to the tenth—so it’s much more accurate with color match,” explains Frank McClosky, owner, McClosky’s Collision Repair, Baytown, Texas. “Knowing that the color is going to match the first time, there’s no need to mix extra paint that you might need to tint.”
“This is a great advantage for us,” adds Carl Garcia, owner of Carl’s Collision Center, Fall River, Mass. “It’s 100% accurate. No waste. And it has increased our efficiency by at least 15%.”
Going all in With Digital Tools
The MoonWalk mixing system is just one of PPG’s recent efforts to advance color-matching performance beyond paint. Recently it introduced the PPG LINQ™ ecosystem to help painters improve repair processes using an innovative cloud-based platform and interconnected digital tools:
• DIGIMATCH™ spectrophotometer, with a compact, multi-angle color camera for reading the actual vehicle color
• VISUALIZID™ digital color visualization tool enabling the technician to compare 3D “virtual sprayouts” to determine the best color variant formula
• PPG LINQ™ Color cloud-based software for easily identifying the best color from PPG’s extensive formula database
• MAGICBOX™ wireless device connects the software to the scale, enabling the technician to complete the mix quickly without the need for a separate PC
The Envirobase High Performance paint system is compatible with every tool in the PPG LINQ digital ecosystem, making it the perfect solution for modern collision centers.
autobodynews.com / AUTOBODY NEWS JUNE 2024 15
SPONSORED EDITORIAL Learn more at ppgrefinish.com
Car Insurance, Repair Cost Increases Far Outpace Overall Rate
By Abby Andrews Autobody News
The U.S. Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) shows the cost of auto insurance and vehicle repairs rose 22.2% and 11.6%, respectively, between March 2023 and March 2024 — more than six and three times the overall increase of 3.5%.
In an April 16 webinar hosted by CCC to take a deeper look into its now-quarterly Crash Course Report, experts touched on the sharp increase in costs for both insurance and repairs, which are connected.
Kyle Krumlauf, director of industry analytics for CCC and coauthor of the Crash Course Report, said now-common features like
increase in 2022, though those hikes could fall in line with general inflation later in 2024, Krumlauf said.
Bahnsen said there are also increases in the percentages of underinsured and uninsured motorists — 14% of drivers are completely uninsured — and third-party claims submitted for injuries caused by uninsured and underinsured motorists have increased 40% since 2021.
“There are a lot more under- and uninsured motorists,” Bahnsen said.
“If you get in an accident with one who caused the loss, you’re going to have to make a claim where you didn’t before. That will push even more of that group into the uninsured or financially stressed category, compounding the issue.”
ADAS, infotainment setups and new powertrains are all making repair of modern cars more challenging. That is putting more pressure on insurance companies’ claims departments and auto body shops to work accurately and efficiently.
“More scans and calibrations are needed,” Krumlauf said. “That contributes to the average repair taking 14 days; 63% have at least one supplement. That adds to claims costs and rental car costs.”
Erik Bahnsen, assistant director of industry analytics, said the complexity of medical treatment for people injured in crashes is also increasing, meaning those costs are rising too. On top of that, the percentage of the population age 65 and older is increasing, and those people tend to need more procedures after being involved in a crash. Both of those factors are contributing further to the increase in average bodily injury claim payments, up 7% since 2022, which translates to higher rates passed on to customers.
Krumlauf said vehicle replacement parts have gotten more expensive, and the average number needed per repair has also risen.
Labor rates have also increased — up 7.4% in 2023 on top of a 7%
tech — AI can offset some menial tasks people do in insurance.”
He said it remains to be decided how and when to integrate that technology, and how to pair it with the talent and processes within companies.
“We all have been resilient over the past couple of years,” Krumlauf said. “We need to continue to be agile and prepared for change. We don’t know if these are the norms we can expect to see in the future.”
Bahnsen said there has always been complexity in the nature of casualty claims. He agreed repetitive tasks should be automated using technology to prevent “accuracy leakage” when those tasks are done by hand.
“We need to start from 2022 and go forward,” he said. “The same old formulas just don’t work anymore.”
One webinar attendee asked what the industry should focus on to control claims costs, since inflation is not in repairers’ and the insurance companies’ control.
Christ said total losses make up a disproportionate amount of claim losses as a whole.
“We need to figure out how to better control total loss costs,” he said. “It takes 25 days on average to determine a total loss. If we can speed that up, we can reduce the cost to determine, and that will have an affect on claims as a whole. We need to improve operational efficiency to bring down cost as well.”
Tim Christ, solution expert, said that lack of coverage for some drivers also affects subrogation, which affects cycle time.
As used car prices soared during the pandemic — the average adjusted vehicle valuation amount increased 49% between 2020 and 2022 — and then cooled off, that has affected which cars get totaled, Krumlauf said. There was a 1.5% increase in vehicles flagged total loss in 2023, primarily due to used vehicle values decreasing. Krumlauf said 70% of valuations are for vehicles 7 years or older.
The increased total loss frequency decreases the ratio of repairable vehicles. Higher physical damage severity losses, which might have been repaired a year ago, are more likely now to be totaled, increasing shop capacity and lowering overall cycle times.
Further, the used vehicle loan to value ratio in Q1 2023 was 126%.
“More people are starting to default on auto loans,” Krumlauf said. “Credit card delinquencies and debt have both increased over the past couple of years. Delinquencies are at levels not seen since the 2008 recession. As households are confronted with affordability challenges, [insurance customers] might increase deductibles, decrease limits or eliminate some coverage.”
Key Takeaways
Krumlauf said “talent, tech and resilience” are the main points of the Q1 2024 Crash Course Report.
“There are talent challenges within the collision repair industry and insurance market as well,” he said. “Part of that can be confronted with
Christ said he is “super interested in tech but also frustrated with the industry” being slow to adopt it. He said he recently spent 30 minutes on the phone with his insurance company to report a claim.
“We are not using tech to make filing claims easier. We need to create as streamlined and efficient a process as possible,” he said.
Using 10 to 15 years of data to create benchmarks don’t work anymore, Christ said.
16 JUNE 2024 AUTOBODY NEWS / autobodynews.com
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Performing Dynamic Calibrations In House Can Mean Big Returns on Minimal Investment
by Abby Andrews Autobody News
asTech, a Repairify company, hosted a webinar April 23 to encourage collision repairers to consider making the relatively small investment in equipment to perform dynamic calibrations, rather than subletting out the work.
“There are lots of reasons why I would want to keep that in house,” said Kris Bjerke, director of R&D, calibrations and implementation for asTech.
Doing those calibrations themselves, rather than paying a subletter, helps shops maximize profits, better control cycle time and improve customer satisfaction, while ensuring the work is done properly.
aftermarket tool, like asTech’s All-InOne with adasThink, which identifies required calibrations by reviewing repair estimates and comparing them to OEM service information. Those reports can also be shared with insurance companies to prove why those calibrations were necessary, Bjerke said. The adasThink tool works with all estimating systems — automatically with CCC and manually with Mitchell and Audatex.
As an example, he showed an adasThink report for a 2021 Cadillac Escalade, which identified six necessary operations as well as the required tools.
Once the dynamic calibrations have been identified, the vehicle can be driven to set them. Bjerke said certain driving conditions are necessary for accuracy.
Weather needs to be considered before performing a dynamic calibration. Heavy rain or snow will make it hard for
always wear their seat belt while performing dynamic calibrations, as some modules won t learn if it’s not buckled.
Driving the vehicle to complete the calibration can take anywhere from 10 seconds to 20 minutes, Bjerke added. Using the adasThink connects repairers to asTech technicians, who can give an idea of the time range.
Finally, once a post-scan is complete on the entire repair, the vehicle should be taken on one more test drive.
“The dynamic calibration drive was for learning,” Bjerke said. “[The test drive] will show you if all systems are on.”
One webinar attendee asked how much training an in-shop technician needs to complete a dynamic calibration.
“The biggest thing is reading, understanding and executing on service information,” Bjerke said.
Bjerke suggested taking photos of the scan tool report to make
will need a deeper understanding of the process.
Another webinar attendee asked about how vehicle modifications like lifted or lowered suspensions can affect ADAS features.
Bjerke said asTech can’t guarantee calibrations on aftermarket modifications not also manufactured by the OEM. He recommended telling a customer to take the vehicle back to whoever did the modifications or to a dealership.
“It’s better to have that conversation up front, instead of getting to the point where you did the repairs but now you have to call the customer and tell them you can t complete calibrations,” Bjerke said. “Obviously you have to get estimators to notice those things at the beginning.”
“Remember, what are the consequences if you can t get the calibration to finish?” Terry added. “If you start [a dynamic calibration on a modified vehicle], it might not be able to finish, and the worst case scenario
While static calibrations can require more expensive investments in both equipment and establishing the right conditions within a shop, most shops can do dynamic calibrations on their own already, Bjerke said.
“Most (shops) are already doing pre- and post-scans,” he said. “With that equipment or partnerships you have, you are able to do dynamic calibrations without much more investment other than training.”
Dynamic calibrations are performed by putting the vehicle in a “learning” mode and then driving it, so it resets its calibrations itself by looking for items along the side of the road, like guard rails and stop signs, to make sure those systems are “seeing” correctly so they work properly.
Bjerke said shops will need a digital inclinometer, like the Stead & Fast Digital Angle Finder, available at most auto parts or hardware stores or through online retailers like Amazon for less than $25, and at least one level surface, either the shop floor or a frame or alignment rack.
Next, they need their scan tool, either one made by an OEM or an
18 JUNE 2024 AUTOBODY NEWS / autobodynews.com
Dynamic calibrations are performed while driving the vehicle, which automotically resets them, unlike static calibrations, which require specialized equipment and particular shop conditions. Image via Shutterstock YOUR ASSURANCE OF QUALITY www.capacertified.org
Auto Glass Now Launches Campaign Emphasizing Nationwide Reach, Speed
By Abby Andrews Autobody News
Auto Glass Now recently announced a new marketing campaign, its first as a nationwide brand, to establish name recognition among potential customers and drive home the “now” part of its name.
Auto Glass Now has more than three decades of service as a regional company. It acquired 11 other similar companies across the U.S. to create a national brand, which then joined Driven Brands in 2022. It currently has more than 200 locations in 35 states, as well as
more than 700 mobile units, offering auto glass repairs, replacements and ADAS calibration.
The new campaign, which will encompass social media, web, instore displays and vehicle branding, emphasizes Auto Glass Now’s key offerings, including same or next day service, convenient appointments, a price match guarantee, choice of in-store or mobile repairs and the acceptance of all insurance.
Kyle Ankrom , Auto Glass Now’s vice president of marketing, said about half of all customers looking for auto glass repair don’t have a specific brand or shop in mind when searching for service.
“Now that we have this power of this national brand, we want to help customers know who we are and what we stand for,” Ankrom said. “We wanted to do it in a bold way to break through from what we see as a ‘sea of sameness’ of the options that are out there.”
The 12 brands that came together under the Auto Glass Now banner were all strong competitors at their regional levels, but neither had a national presence.
“They’ve always had this sort of underdog mindset and spirit,”
Ankrom said. “We wanted to emphasize that as we took it to a national scale. It’s what makes our technicians and shop managers work harder for the customers.”
The campaign also focuses on the brand’s speed of service promise.
“It’s built into our name — we’re Auto Glass Now, not auto glass
new campaign is one of the first steps in unlocking the growth potential of the brands it already has.
“This is the first campaign we’ve launched as an integrated Auto Glass Now brand,” said Nick Ouimet, president of Auto Glass Now, in a statement. “We’ve
later,” Ankrom said. “That’s the key benefit we focus and deliver on, and that’s why when you see the spot and hear the jingle, it’s all about ‘we can get your auto glass serviced now.’”
Ankrom said the company is always looking to expand, but the
completed the work to integrate multiple acquisitions under the Auto Glass Now banner, and we’re ready to make a splash with this campaign.”
Auto Glass Now collaborated with the agency Erich & Kallman to bring the campaign to life.
Improved mobility.
autobodynews.com / AUTOBODY NEWS JUNE 2024 19
Auto Glass Now has more than 700 mobile units nationwide.
An image from the new campaign.
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AkzoNobel Collision Industry Experts Event Focuses on Business Strategies For Repairers
By Stacey Phillips Ronak Autobody News
Approximately 280 shop owners from 180 cities and 28 states gathered May 9 at the AkzoNobel Collision Industry Experts Event (CIEE) in Orange, CA.
Throughout the day, attendees had an opportunity to network with colleagues and attend educational sessions led by AkzoNobel team members.
To be successful in a competitive environment, Dan Carranza, AkzoNobel’s national sales director, Vehicle Refinishes USA-Mexico, stressed the importance of continuous learning and working on the business.
“It’s the work you are doing when the lights are off, outside of 8-5, attending functions like this and honing in on your craft,” he said.
Highlights from Educational Sessions
Amy Durbin, Vehicle Refinishes key account manager and former North America talent acquisition manager, discussed small business human resources (HR) best practices and recommended managers “know what they need to know” daily to do the right thing. She said HR compliance doesn’t have to be complicated and imparted
some basic compliance principles.
Business services consultant Tony Adams talked about implementing a four-day workweek. He explored the pros and cons of how a shop owner can decide if it is the right fit for their facility. Kena Dacus, owner of Dacus Auto Body & Collision Repair in Kansas, also shared her shop’s experience implementing this atypical schedule for employees.
Tim Ronak, senior services business consultant, assisted shop owners and managers in navigating the OEM selection and application process. This included exploring the best opportunities for OEM certifications, which ones make financial sense for the facility, and how to get started. He also reviewed current tools to capitalize on OEM certification options.
To help create raving fans at a shop, Rick Fifer, services development manager, talked about the value of managing customers’ expectations and the opportunity to shape customer perception before conducting the initial damage review. He also discussed the impact a shop’s initial damage review and scheduling process have on cycle time and customer satisfaction.
Senior Services Consultant Jeff
Baker shared information on how to supercharge staff engagement to maximize profit flow with “Gamification.” He also explored using interactive tools to improve a business’s process, sustain change, improve employment engagement and enhance key measurements.
Collision coach strategies were shared by Jim Lovejoy, senior services consultant. Lovejoy explained why increased awareness of coaching is important, identified attendees’ preferred coaching style, and provided a step-by-step process for coaching employees in three standard situations.
New refinishing processes were discussed by western technical manager Ryan Brown. As vehicle technology evolves, Brown said refinishing systems may impact composite materials. He provided tips on quickly reviewing and identifying the correct refinish process and product to do a proper repair.
Michael Giarrizzo and Pam Giarrizzo from DCR Systems talked about streamlining a business’ process to focus staff and boost profit. During the session, attendees learned techniques to streamline and clearly document and communicate the shop’s process while optimizing
staff and equipment. The presenters also reviewed how to identify process waste.
Industry Speakers Provide Insight Carranza shared the one word he has used — inspire — to transform his team, business culture and personal life, based on the book “The One Word That Will Change Your Life.” He also explained his vision of how one word can positively impact the collision repair industry into a “Do Something Industry.”
Debby Robinson, executive director of the National Auto Body Council (NABC), talked about becoming a community collision repairer of choice. She shared insight into creating a community outreach program based on a business’s strategy, time and resources, the area’s needs and employees’ personal interests.
From his experience working with shops, OEMs and software companies, Collision Advice President Mike Anderson discussed what a collision repairer’s business success looks like today vs. what it will look like tomorrow. This included moving to a four-day workweek, trends with OEM insurance and certifications, and how environmental, social and governance (ESG) may impact the industry.
20 JUNE 2024 AUTOBODY NEWS / autobodynews.com
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CIC Adopts Distinct Definitions of ‘Estimate’ and ‘Repair Plan’
by John Yoswick Autobody News
Proposed formal definitions of “estimate” and “repair plan” drafted by the Collision Industry Conference (CIC) Definitions Committee received strong votes of support from CIC attendees at the conference held April 17 in Seattle, WA.
CIC has long maintained a glossary of industry terminology on
Committee chairman Chris Evans of State Farm said the new “estimate” and “repair plan” definitions were initially proposed by another CIC committee, and went through “several iterations” before being distributed to the wider industry for review prior to the Seattle meeting.
The first proposed definition states an “estimate” is “an initial assessment of vehicle damage which approximates the cost of repairing or replacing the damaged parts, including labor and materials.”
That differs from the proposed definition of a “repair plan,” which is described as a “comprehensive vehicle damage assessment of necessary steps and procedures for repair created by the repair facility to determine cost of parts, labor and materials.”
understand as a body is that CIC is not a standard-setting body,” Hendler said of the rationale to keep the definitions brief and nonprescriptive. “We’re not here to change the marketplace. So while the repair community feels very strongly that the OEM repair procedure is all there is, and that’s all that should be used, that’s not necessarily part of the definition of a repair plan. That
“We did talk about that one of the defining factors of a repair plan was that the shop is the creator, the initiator of it.”
definition as proposed.
“There’s a lot of things that could go into this definition,” Schulenburg said. “It could say that you have to pull the OEM procedures. It could say that you have to do a teardown. But when you’re looking at a definition, if a repair facility writes their repair plan, that’s still a repair plan, even if they didn’t tear it down, right? I think that’s the whole nature of if it, that it is a comprehensive assessment of everything I need for my process to bill for it. There’s a part of me that wants to see this so much stronger, to reinforce it. But the other part of me, from a definition standpoint, thinks this is probably the right definition for whatever somebody’s repair plan is within their own facility.”
Hendler concurred.
its website, available at ciclink.com/ wiki-introduction, as a way to facilitate understanding and communication within the industry.
Committee member Jordan Hendler said some of the feedback the committee received revolved around the view the repair plan definition should include reference to such a plan being based on OEM repair procedures.
“One of the things we have to
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could be your practice, your business decision, but we have to be cognizant in this body that it’s not the only way it’s done, and we’re just trying to say what a repair plan is. So just keep that in mind when you’re looking at the definition: Does this say what a repair plan is, not necessarily what it should be.”
Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, said he understood the need to keep the “repair plan
“We did talk about that one of the defining factors of a repair plan is that the shop is the creator, the initiator of it,” she said. “They’re the only ones that could do that. So we felt like that component was really important as a differentiator between ‘estimate’ and ‘repair plan.’”
Put to a vote of the CIC body, the estimate definition received 92% approval from attendees, and the repair plan definition received a thumbs-up from 78% of attendees.
autobodynews.com / AUTOBODY NEWS JUNE 2024 21
Chris Evans, chairman of the CIC Definitions Committee, oversaw the approval process at CIC in Seattle of definitions of “estimate” and “repair plan.”
CIC DEFINITIONS COMMITTEE MEMBER 3DProducts.com @3DCARCARE
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Shop Owners: Insurers Could Take Non-Financial Steps To Improve Claims
by John Yoswick Autobody News
Ask collision repair shop owners what they wish auto insurers would do differently, and most will start their list with “pay a higher labor rate” or “compensate us for the OEM repair procedures we are performing.” But shops say there are also some nonfinancial things insurance companies could do that would improve the claims process for shops and consumers — and maybe even for the insurers themselves.
Sue Black, who with her son co-owns Dean’s Auto Body in Sheboygan, WI, said she’d like insurers just to better think through the “hidden” costs of parts sourcing.
“We all know that parts are hard to get our hands on anyway,” Black said. “If we would be able to order these supplemental parts from vendors that were within a 50- to 75-mile radius for us, for example, rather than from way across the country, I think that would cut down on some time as
actually hinder customer service and the claims process, and increases cycle time and rental expense,” Latuff added. “They could look at tracking different things that would reward the appraiser for making the right decision on that claim. But right now, the appraiser who does the right thing on that claim for that car, for that consumer, can be the nail that sticks out, and they get [negative] attention because their file scored higher on some report.”
Improved Communications
For Tom Ricci, owner of Body & Paint Center in Hudson, MA, his idea for an improvement insurers could make is something that’s “as easy as flipping a switch.” Too few insurers in his state, he said, allow a shop to download an insurer-prepared estimate, resulting in wasted shops’ time rekeying those estimates and not being able to upload supplements.
“Open the communication lines. That would decrease our cycle time,” Ricci said. “I don’t know how they don’t get that. Some of these companies just want to hang on to the way things were. It’s not all insurers. There’s probably a half dozen very good companies, letting you pull down estimates and do ‘warm exchanges’ of supplements. But the rest of them are impossible.”
well, waiting for those parts to come in.”
Black also pointed to long wait times for supplement approvals as another such hidden cost. Will Latuff, president of Latuff Brothers Auto Body in St. Paul, MN, agreed virtual claims processing has seemed to add to the need for better shopinsurer communication.
“Since COVID, it’s been very difficult,” Latuff said. “They don’t necessarily owe us a conversation when they send the supplement because it is the customer’s policy and not ours, but it sure helps the process move a lot faster and smoother, with less rework. So I think even if they’re going to maintain a virtual presence for handling supplements, that process needs to be refined.
“I think the insurers should realize that the restrictions and guidelines that they put on their appraisers
Tiffany Silva of Accurate Auto Body in Richmond, CA, would like to see more insurance companies offering — and marketing —auto policies with OEM parts endorsements.
“They just don’t seem to be carrying the same message from here in New Mexico to Nebraska to California.”
“It is amazing when we have a customer come in that has that endorsement and we don’t even have to look for used or aftermarket parts,” Silva said. “So we’re trying to educate our customers to add that endorsement to their policy so the next time when we see them, there isn’t all the talk about aftermarket parts and the objections to them. It’s so incredibly inexpensive. My last customer told me it cost them about $15.”
The other issue Silva thinks insurers could help shops address is pre-repair payments to customers that shops aren’t told about.
“Last year in particular was probably our worst year in terms
of having to track down money,” she said. “My office manager spent so much time on that. There’s no communication. Sometimes it gets deposited straight into the customer’s checking account, and they spend it having no idea that it was even in there. One customer spent $10,000 and then couldn’t pay us. But we had released the vehicle because the insurance company didn’t tell us they had pre-paid them.”
She said the shop has made multiple changes to its authorization form in an effort to find out if a customer received funds from the insurer, and to make the customer aware that money will be owed to the shop.
Scott Benavidez, owner of Mister B’s Paint and Body in Albuquerque, NM, said his wish for the insurance industry is similar: that companies would do a better job of “communication from the top down.”
“We go to the Collision Industry Conference and we hear the top of the chain [at an insurance company] say one thing, and when you get down to the local market, they say something totally different,” Benavidez said. “They just don’t seem to be carrying the same message from here in New Mexico to Nebraska to California. So I’d like to see them get better at that.”
His other hope is that insurers would get back to making decisions about what is “reasonable and necessary” rather than “usual and customary.”
“I don’t really think it’ll ever happen because it’s going to cost them too much money, but if we could get there, it would solve a lot of problems,” Benavidez said.
OEM Parts Policies, Pre-Repair Payments
22 JUNE 2024 AUTOBODY NEWS / autobodynews.com
New Mexico shop owner Scott Benavidez thinks insurers could improve the consistency of their messaging from the top of their claims organization down to local markets
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Dept Hours: M-F 7:30-6; Sat 8-5 tdunn@geraldjoneshonda com
Rick Case Acura Fort Lauderdale
800-876-1150
954-377-7688
Dept� Hours: M-F 7:30-6; Sat 8-5 rubenramos@rickcase com
Jackson Acura Roswell
877-622-2871
678-259-9500
Dept� Hours: M-F 7-6; Sat 7:30-6 kmcmillan@jacksonacura com
Honda Mall of Georgia
Buford/Gwinnett
678-318-3155
Dept Hours: M-F 7-7; Sat 7-5 cdunlap@penskeautomotive com
Milton Martin Honda
Gainesville 770-534-0086
678-989-5473
Dept� Hours: M-F 7:30-6 robertthomas@mmhonda com
Honda of Newnan Newnan 678-423-8183
Dept� Hours: M-F 7-6; Sat 7-4 samuel trapani@henrickauto com
Nalley Honda Union City 866-362-8034
770-306-4646
Dept Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars�com
MISSISSIPPI
Patty Peck Honda Ridgeland 800-748-8676
601-957-3400
Dept Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda�com
828-684-4400
Dept Hours: M-F 8-5; Sat 8-4 appletreeparts@hotmail com
McKenney-Salinas Honda Gastonia
888-703-7109
704-824-8844 x 624
Dept Hours: M-F 7:30-5:30 parts@mshonda com
Vann York Automall High Point
336-841-6200
Dept Hours: M-F 7:30-6; Sat 8-3
864-234-6481
Dept Hours: M-F 7:30-6; Sat 8-5 hgrparts@anderson-auto net
864-375-2082
Dept Hours: M-F 7:30-6; Sat 8-5 swhite@piedmontcars com
Nalley Acura Marietta 800-899-7278 770-422-3138
Dept� Hours: M-F 7-7; Sat 7-5 byoung@nalleycars com
Flow Acura
Winston-Salem
800-489-3534
336-761-3682
Dept� Hours: M-F 7:30-6; Sat 8-1 www flowacura com
Karen Radley Acura Woodbridge 800-355-2818
703-550-0205
Dept� Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup com
24 JUNE 2024 AUTOBODY NEWS / autobodynews.com
Tree Honda Asheville
Apple
800-476-9411
Fred Anderson Honda Greenville
Piedmont Honda Anderson 800-849-5057
Please contact these dealers for your Honda or Acura Genuine parts needs. FLORIDA ACURA FLORIDA
GEORGIA
ALABAMA HONDA FLORIDA GEORGIA NO. CAROLINA GEORGIA VIRGINIA FLORIDA NO. CAROLINA GEORGIA
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Airport Honda
Alcoa
800-264-4721
865-970-7792
Dept Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda com
AutoNation Honda
West Knoxville Knoxville
800-824-1301
865-218-5461
Dept� Hours: M-F 7:30-6 rossd1@autonation com
Wolfchase Honda Bartlett
800-982-7290
901-255-3780
Dept Hours: M-F 7-7 ekerr@wolfchasehonda�com
Checkered Flag Honda
Norfolk
800-277-2122
757-687-3453
Dept Hours: M-Sat 7:30-6 honda�checkeredflag�com
Hall Honda
Virginia Beach
800-482-9606
757-431-4329
Dept Hours: M-F 8-7; Sat 8-5 fox@hallauto com
Valley Honda Staunton
800-277-0598
540-213-9016
Dept Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda com
West Broad Honda
Richmond
800-446-0160
804-672-8811
Dept Hours: M-Fri 7:30-6:30; Sat 8-5 wbhonda@aol com
Honda and Acura Genuine Parts
autobodynews.com / AUTOBODY NEWS JUNE 2024 25
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Doug Snyder, a body worker at Volkswagen. “Our vote shows that workers everywhere want a better life on and off the job. Fair pay is important, but so is time with our families. So is a voice for safety in our plant. We’re looking forward to getting to the bargaining table with the company and winning a contract that makes things right at Volkswagen.”
The move to unionize at Volkswagen Chattanooga comes amid a broader wave of union activities across the South, where more than 10,000 non-union autoworkers have signed union cards in recent months, spurred by the Stand Up Strike victory at the Big Three. Public campaigns have been launched at major auto companies including Mercedes-Benz, Hyundai and Toyota.
As Chattanooga workers celebrate their victory, attention turns to the upcoming second union vote, at Mercedes-Benz in Vance, AL, scheduled for May 1317.
On April 16 — the day before the election began at the Volkswagen plant — six Republican governors from Alabama, Georgia, Mississippi, South Carolina, Tennessee and Texas publicly condemned the UAW’s efforts to unionize auto plants in their states, arguing the UAW’s presence could disrupt their local economies and align too closely with political interests, particularly noting the union’s support for President Joe Biden’s reelection.
“As governors, we have a responsibility to our constituents to speak up when we see special interests looking to come into our state and threaten our jobs and the values we live by,” the statement said.
While reporting its Q1 2024 financial results April 25, Hertz announced it will sell off 10,000 more electric vehicles from its fleet than originally reported — a total of 30,000, following significant depreciation charges.
Hertz initially announced in late 2021 it was buying 100,000 Tesla Model 3s. Then, after reporting record earnings for 2022, the company announced in early 2023 it was increasing its investment in EVs, with plans to order 175,000 from General Motors and 65,000 from Polestar.
However, the depreciation of Hertz’s EVs has been exacerbated by a price war initiated by Tesla. In January, Hertz announced it would sell off 20,000 EVs from its rental fleet — about a third of the total it had purchased — due in part to high collision repair and logistics costs. A month later,
it announced it was pausing purchasing more EVs from Polestar.
The losses continued into the first quarter of 2024. Hertz said it incurred a $195 million charge to vehicle depreciation to write down the EVs held for sale.
The news of this accelerated selloff follows a distressing financial disclosure: Hertz reported a net income loss of $392 million for the quarter, a substantial increase from the $126 million loss recorded during the same period last year. The loss per share deepened to $1.28, almost tripling what financial analysts had projected.
The EV missteps also led to a change in leadership at Hertz. In March, it announced it was replacing CEO Stephen Scherr with Gil West, the former COO of Delta Air Lines and GM’s Cruise unit.
26 JUNE 2024 AUTOBODY NEWS / autobodynews.com
l CONTINUED FROM COVER Volkswagen Workers Call or Email Now for Rates: AUTOBODY kcashman@autobodynews.com 800-699-8251
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Hertz Offloading More EVs As Losses Continue
Health Insurance-Buying Pool Can Counteract Trends Driving Up Costs For Collision Repairers
By Abby Andrews Autobody News
Small businesses, like many collision repair shops, are getting hit the hardest by trends causing rises in health insurance premiums -- making it more difficult to offer benefits in an increasingly competitive employment market.
causing premiums to go up, said Kevin Dunn, founder and CEO of Decisely. Those increases are affecting small employers more than larger ones.
“This year, for small businesses, the average increase for health care insurance was 12% to 14% year over year. For larger businesses, their rate only went up 9% to 10%,” Dunn said.
Small businesses like collision repair shops are seeing a larger increase in health insurance premiums than much bigger employers
Joining a plan like the one offered by the Society of Collision Repairers (SCRS) through Decisely, a technology and brokerage insurance firm, can give individual shops the buying power of a much larger group. Like everything else, inflation is
“Small businesses get more of the brunt of that increase. That unfortunately isn’t something that’s going to be changed overnight.”
Dunn said health care premiums are affecting shops’ ability to offer those benefits, which makes it harder to attract and retain employees. A survey of collision repair technicians, conducted earlier this year by I-CAR, SCRS and consulting firm Ducker Carlisle, found only 16% of respondents were offered health insurance through their employer.
“It’s tough getting people into the trade, and we won’t if no one is providing insurance,” Dunn said. “The competition is not just another shop down the street, but also restaurants,
retailers, etc. all around you.”
Decisely worked with SCRS to build a health insurance program for its members and their employees.
SCRS opened the plan for enrollment in September 2022, and now has about 1,500 enrollees at shops nationwide.
“It’s tough getting people into the trade, and we won’t if no one is providing insurance.”
— KEVIN DUNN CEO AND FOUNDER OF DECISELY
Dunn said small businesses spend more on insurance premiums than a large organization, because an insurance carrier’s risk is spread over a much smaller pool of employees.
“The law of large numbers says it’s unlikely everyone will get sick or injured at the same time, so the (premium) rates should be stable every year, because they can spread the risk of some people being sick while others are healthy,” Dunn said.
But for a small business with 25 employees, all it takes is for one person to get very sick or injured, and the following year, premiums can rise 40% to 50% so the insurance
company can ensure it doesn’t lose money again.
“The premiums really aren’t stabilized because they’re so small,” Dunn said.
With the plan offered by SCRS, its members are aggregated together to look and buy like a large employer, Dunn said. Each employer has its own individual contract with Decisely, but the insurance carriers Decisely is partnered with look at the entire aggregate.
“That helps us to stabilize health care costs,” he said.
The program available to SCRS members also offers doctor visits, imaging and labs, generic prescription drugs, urgent care and mental health treatment with no copay. Only emergency department visits require a co-pay.
“We encourage everyone that if you have a problem, go to the doctor,” Dunn said. “It shouldn’t be your credit card that prevents you from doing that, because you have insurance and your premium should take care of it.”
Putting off care for illness drives up costs in the long term, as people often wait until it has progressed to a point they need the emergency department, or needs longer term care that takes them out of work.
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Georgia-Based Dealer Group Invests $500K in Future Auto Repair School
Master Automotive, with two dealerships in Augusta, GA, and Aiken, SC, announced it committed $500,000 to Augusta Technical College in Georgia towards the establishment of the new Automotive Institute at the college’s expanded campus. The donation will fund the development of a state-of-the-art facility designed to elevate automotive training to national standards, reported WRDW/WAGT News.
Located at the former Johnson Cadillac site on 1122 Walton Way in Augusta, the institute is set to commence its first classes in the fall of 2025.
Currently, Augusta Tech offers a diploma and various technical certificates in automotive technology. With the addition of the new institute, the college plans to broaden its educational programs to include specialties such as auto body and collision, and light, medium and heavy diesel technologies. Augusta Tech also intends to incorporate automotive industry classes into its associates degrees within the School of Business.
Spanning 65,000 square feet, the new Automotive Institute will significantly expand beyond the current 10,000 square feet dedicated to the automotive program.
Rashell Tanner has been named as the inaugural recipient.
The institute will also bear the name Jim Hudson Automotive Institute, following a $1 million donation from the Jim Hudson Automotive Group. Additional significant contributions include $1 million each from the Augusta National Golf Club and the Knox Foundation, which have been instrumental in acquiring the facility.
In a gesture complementing the corporate donation, Augusta Technical College President Dr. Jermaine Whirl, along with his wife Marqueta, have pledged $10,000 to establish the Dr. Jermaine Whirl Presidential Leadership Scholarship. This scholarship will annually benefit the student elected as president of the college s Student Government Association.
“Together with partners like Will Schafer at Master Automotive, we are building a national model for automotive training,” Whirl said.
“There is a major need for a facility such as this in our community and we are excited to be a part of it,” said Schafer, owner of Master Automotive.
The development of the Automotive Institute is one of the “big 5” projects poised to position Augusta Technical College as a premier educational destination in the realm of automotive training.
AkzoNobel announced the appointment of Brian Martin as business development manager for its Automotive & Specialty Coatings division in North America.
Martin, who has more than two decades of experience in the collision repair sector, reports directly to Dan Carranza, sales director of Automotive & Specialty Coatings for the U.S. and Mexico.
In his new role, Martin is expected to be instrumental in the development of dealership collision programs. His responsibilities will include acting as the AkzoNobel brand ambassador to all OEMs, a critical function as vehicles become increasingly technologically sophisticated. His primary task will be to capture and communicate OEM collision repair procedures to clients, ensuring the company stays at the forefront of industry developments.
Martin’s appointment comes at a time when the importance of specialized knowledge in OEM procedures is more significant than ever, given the rapid advancements in automotive technology.
28 JUNE 2024 AUTOBODY NEWS / autobodynews.com
Brian Martin Joins AkzoNobel Audi Genuine Parts make your repair easier amartinez@audinorthmiami.com www.audinorthmiami.com • One of the Largest Inventories of Audi Genuine Collision Parts in Florida Mon-Sat 8am-6pm Knowledgeable Wholesale Parts Staff Mon-Fri 7:00am-6:00pm Sat 7:00am-5:00pm PH 954.425.8244 Hendrick Honda Pompano Beach 5381 N. Federal Hwy. Pompano Beach, FL 33064 Competitive Pricing Free and Fast Delivery Start something special.
Fix Auto USA Celebrates 200th Store Milestone
Fix Auto USA recently celebrated the grand opening of its 200th store, taking the opportunity to reflect on its progress since its founding in 2011 while looking forward to its next goals.
The 200th store is Fix Auto Palm Desert South in Palm Desert, CA, owned and operated by Henry Arroyo, a multi-store owner. Arroyo now owns five locations in California — one each in Cathedral City, Indio and Palm Springs, and two in Palm Desert.
Fix Auto USA was founded in 2011 to create a network of highperforming, independent body shops to ensure the best quality repairs and customer service. The first 30 locations banded together to bring the mission to life, quickly transitioning from a locally-known business to an industry-leading collision repair family.
“When Fix Auto USA joined the Driven Brands collision group back in 2020, it was clear that this group of owners was determined to be the best of the best,” said Sabrina Thring, collision president, Driven Brands. “The dedication to their craft, customers and one another
has laid the groundwork of this thriving network. Reaching this milestone is just the beginning, and I can’t wait to be a part of this continued growth.”
in 13 states.
Thring said the growth has been propelled by franchisees, many of whom have opened multiple locations while running the kind of
During a media roundtable May 3, Driven Brands executives said they decided in 2018, when Fix Auto had 111 stores, to celebrate No. 200. They got there by adding 20 to 25 stores every year, which they aim to do again by the end of 2025. Fix Auto now has locations
businesses that attract new owners.
“Our owners built this brand, positioning us an industry leader in collision repair,” Thring said.
Arroyo said he was honored to open Fix Auto’s 200th location.
“I joined the Fix Auto USA network in 2014 and haven’t looked
back,” he said. “Today, I own five locations, with Palm Desert South being my most recent opening. This network has given me so much and I can’t wait to continue building my business and representing the Fix Auto USA brand.”
Arroyo is deeply rooted in the communities around his facilities, giving back to the children, the homeless and any person in need through hosting toy drives, collecting coats, clothing, toiletries and more, working with Martha’s Kitchen. Arroyo is also an active member in the National Auto Body Council, participating in the Recycled Rides program to gift multiple vehicles to families and veterans in need. Most recently, Arroyo and his team donated two vehicles to local families in January.
“With owners like Henry leading the way for this brand, I have no doubt that we will continue to reach new heights,” said Brian Newberry, vice president of collision development, Driven Brands. “Opening the 200th location is just one step in our growth, and I am thrilled to see what is in store next for this brand!”
autobodynews.com / AUTOBODY NEWS JUNE 2024 29
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Driven Brands and Fix Auto USA executives joined the team at Fix Auto Palm Desert South in Palm Desert, CA, to celebrate the store’s grand opening -- making it the 200th Fix Auto.
Refinish Distributors Alliance Hosts Spring Impact Performance Conference
The Refinish Distributors Alliance (RDA) held its Spring Member RDA Impact Performance Conference, April 23-25 at the Embassy Suites Uptown Charlotte in North Carolina. Executive Director Ben Jacobson welcomed another record turnout, which included RDA members, manufacturer partners and valued guests.
Jacobson opened the meeting with two new Emerging Services initiatives, now known as Impact Services. “The Clean Shop” initiative is a sales-generating program that will strengthen relationships with vendor partners by enhancing products and services that are often overlooked in the sales process.
The second initiative introduced involved two companies interested in developing Impact Services in coordination with RDA leadership to support the RDA vision of enhancing its members’ added value. This includes smart billing software that captures found dollars on commonly missed items, providing estimate data, dashboarding capabilities and inventory control that will help strengthen all partnerships.
The first day ended with a welcome reception and dinner at NASCAR Hall of Fame.
The second day was focused on speakers whose presentations revolved around these new initiatives.
Special guest NASCAR drivers Chase Briscoe and Noah Gragson provided an exciting interactive question and answer presentation that did not disappoint.
“We were thrilled to welcome new faces: a new member, two potential members and a new vendor partner,” Jacobson said. “Their fresh outlooks and collaborations are essential for our continued growth and prosperity.”
RDA would like to thank all its supporting partners who sponsored this event and made it a success.
RDA/IMPACT is the largest national group of independent refinish distributors dedicated to providing quality services and products to
their collision shops. RDA has 17 members, representing more than 500 locations. Members service more than 5,000 collision centers throughout the U.S. RDA represents a cross-section of all major refinish brands and does more than $700 million in sales as a group, comprising around 18% of the refinish business nationwide.
Those interested in joining RDA/ IMPACT should contact Jacobson at 303-345-7166 or via email at b.jacobson@rda-impact.com. For more information on RDA/IMPACT, visit www.rda-impact.com or contact Melisa Jolls at 917-854-3451 or email m.jolls@rda-impact.com.
30 JUNE 2024 AUTOBODY NEWS / autobodynews.com
Ben Jacobson, left, RDA, and Steve Sklenar, right, Autobody News.
L to R: Melody and Gil Shaw, Wesco Group, with NASCAR Cup Series drivers Noah Gragson and Chase Briscoe.
Matt Johnson, left, and Melody and Gil Shaw, Wesco Group. Matt Johnson, Wesco Group.
L to R: Doug Jensen, Redshaw Paint Supply; Tony Larimer, SATA; Brad Buckner, Medco; and Dave Voth, Redshaw Paint Supply.
Ryan Ross, AkzoNobel.
The entire group of attendees, including RDA members, partners and guests, at the NASCAR Hall of Fame in the Hall of Honor.
Cliff White, left, AkzoNobel, and Corey Zimmerman, right, Zimmerman Auto Body Supply.
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Collision Engineering Program Expands To Southeast With New Partner School
Sandhills Community College in Pinehurst, NC, will offer the innovative Collision Engineering program as part of its existing collision repair and refinishing technology program.
Founded by the Enterprise Mobility Foundation and Ranken Technical College in St. Louis, MO, the Collision Engineering program aims to help fill the more than 110,000 collision technician job openings expected through 2027. With the addition of Sandhills Community College — the first school in the Southeast to offer the program — it is now partnered with eight schools around the U.S., including Ranken Technical College; College of Lake County in Grayslake, IL; Contra Costa College in San Pablo, CA; Texas State Technical College in Waco, TX; Parkland College in Champaign, IL, and Metropolitan Community College in Omaha, NE.
The program offers a defined two-year apprenticeship model, through which students receive real-world experience by working alongside technicians in repair
facilities while also earning their associate’s degree. This unique model provides students the opportunity to earn an income while completing their training.
learned in the classroom to work. This will help change students’ lives with a great start to a great career in the automotive collision industry.”
“We always want the best for our students, and the opportunities the Collision Engineering program offers are unmatched,” said Brian Garner, Sandhills transportation department chair and instructor.
“The program’s unique model will offer eight weeks in class, then eight weeks at a paid apprenticeship with a local employer, putting the skills
“We look forward to expanding the reach of our program in North Carolina to streamline industry advancements within local communities across the U.S.,” said John Helterbrand, Collision Engineering national program director. “Our approach is to address the talent shortage regionally, starting with the colleges we serve, with the aim of improving training methods by bringing the industry and educational institutions together through a collaborative partnership.”
The Collision Engineering program’s unique two-year apprenticeship model not only increases the number of qualified technicians to address the ongoing industry technician
shortage and skills gap, but also offers advanced education and ever-expanding career opportunities for participating students.
“As a leading provider of mobility solutions, Enterprise Mobility recognizes the need to fill tens of thousands of jobs at collision repair businesses due to the ongoing technician shortage and skills gap,” said Enterprise Mobility Vice President Mary Mahoney. “As the program expands, we continue to work closely with industry partners to ensure our training meets the latest trends and advancements of today’s vehicles, enhances students’ education and career prospects, and opens doors for them faster.”
Sandhills’ collision repair and refinishing technology program is currently accepting applications for the first cohort of Collision Engineering students, with classes beginning later this year. For more information, visit www.beacollisionengineer. com or contact Brian Garner at garnerd@sandhills.edu.
32 JUNE 2024 AUTOBODY NEWS / autobodynews.com
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Caliber Collision, alongside its affiliated brands Caliber Auto Glass and Caliber Auto Care, announced the opening of its 13th annual Restoring You™ Food Drive to address the alarming rise in hunger within the communities they serve.
The food drive mobilizes Caliber’s extensive network, which encompasses more than 30,000 team members across 41 states, to contribute to more than 165 food banks nationwide.
The drive rallies support from not only Caliber’s team, but also from customers and business partners. Contributions to the food drive can be made through non-perishable food items or monetary donations at any Caliber location or online at www.caliber.com/why-caliber/ restoring-you/food-drive-2024. The deadline for contributions is July 1.
The Caliber Foundation will add an additional 25 cents for every dollar raised, with all donations being tax-deductible.
Southern Governors Oppose Unionization Efforts Among Auto Workers
In a statement released April 16, six Republican governors from Alabama, Georgia, Mississippi, South Carolina, Tennessee and Texas publicly condemned the United Auto Workers’ (UAW) efforts to unionize auto plants in their states.
The statement, released by the Office of Alabama Gov. Kay Ivey , came the day before 4,300 Volkswagen employees in Chattanooga, TN, were set open a vote on UAW membership through April 19.
The UAW is intensifying its campaign to organize workers at auto manufacturing sites in traditionally anti-union Southern states, building on recent victories that secured substantial concessions from major U.S. automakers.
The governors argued the UAW’s presence could disrupt their local economies and align too closely with political interests, particularly noting the union’s support for President Joe Biden’s reelection.
“As governors, we have a responsibility to our constituents to speak up when we see special interests looking to come into our state and threaten our jobs and the values we live by,” the statement said.
“As governors, we have a responsibility to our constituents to speak up when we see special interests looking to come into our state and threaten our jobs and the values we live by,”
— KAY IVEY OFFICE OF ALABAMA GOVENOR
The statement said the governors are concerned automakers would leave their states if the plants become unionized.
“We have worked tirelessly
on behalf of our constituents to bring good-paying jobs to our states...Unionization would certainly put our states’ jobs in jeopardy,” the statement said.
Volkswagen’s Chattanooga plant, which produces the German automaker’s EVs for North America, has been a battleground for unionization efforts, with the UAW narrowly losing votes in 2014 and 2019. In December, workers there filed charges against management for illegal unionbusting efforts.
Workers for Hyundai and Mercedes-Benz in Alabama have filed similar charges against their employers.
After the UAW negotiated record-setting contracts last fall for 150,000 workers at General Motors, Ford and Stellantis, nonunion workers at the Chattanooga plant received an 11% pay increase, but their wages still trail behind those at unionized Detroit automaker facilities.
autobodynews.com / AUTOBODY NEWS JUNE 2024 33
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Nationwide Food Drive
General Motors announced it will discontinue the Chevrolet Malibu — the brand’s last gasoline-powered sedan — by the end of this year as it focuses on electric vehicles, starting with the next-generation Chevrolet Bolt EVs.
Since its debut in 1964, the Chevrolet Malibu has been a staple on roads worldwide, with more than 10 million units sold. However, the iconic model will see its production halted in November, as GM repurposes its manufacturing efforts towards electric vehicles at its Kansas assembly plant with an investment of $390 million.
The move is part of GM’s broader transition away from traditional cars to more crossover and sport utility vehicles, which have been
gaining popularity.
The Malibu’s discontinuation follows closely on the heels of the Chevrolet Camaro’s production end last year, leaving the Corvette as the sole remaining Chevrolet car model in the U.S.
GM also announced plans to temporarily pause production of the Cadillac XT4 at the same Kansas plant after January 2025, which will result in temporary layoffs. Production is expected to resume in late 2025 with both the Bolt EV and XT4 sharing the assembly line.
The market response to the Malibu has been mixed, with sales dipping 12.5% in the first three months of the year. However, overall sales in 2023 showed a 13% increase to 130,000 units.
Crash Champions Acquires Bavarian Body Works’ 2 Atlanta Locations
Crash Champions announced the expansion of its Atlanta, GA, footprint with the successful acquisition of Bavarian Body Works.
The acquisition, which was finalized May 10, adds two highquality collision repair centers, located at 476 Cobb Pkwy SE in Marietta, GA, and 1491 Howell Mill Road in Atlanta. Bavarian Body Works transitioned operations to Crash Champions effective immediately.
“We’re certainly proud to continue expanding the Crash Champions brand across Atlanta,” said Crash Champions founder and CEO Matt Ebert. “This is a strong acquisition for our team, as Bavarian Body Works has earned a trusted reputation across Atlanta for more than three decades. We look forward to welcoming their team to Crash Champions and adding this proven pair of high-quality repair centers to our growing organization.”
Crash Champions now operates 17 locations across the greater Atlanta market, part of its national
Harper Volkswagen
network of more than 640 repair centers in 37 states and Washington D.C. Crash Champions backs all work with a written lifetime warranty and is a trusted name among many of the top automotive insurance providers.
“Bavarian Body Works has built a longstanding, trusted reputation for premier quality and customer service across Metro Atlanta,” said Hans Ryden, owner and president of Bavarian Body Works. “As we engaged with Matt Ebert, it became clear that Crash Champions was a like-minded organization, and that this move would provide tremendous value to our customers, community and team members. We are proud to join their team.”
•
autobodynews.com / AUTOBODY NEWS JUNE 2024 35
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Toyota Grants $2M For STEM Education in North Carolina
The Toyota USA Foundation announced a $2 million grant initiative targeted at Randolph and Guilford Counties in North Carolina, part of the Driving Possibilities program, designed to prepare students for future science, technology, engineering and math (STEM) careers.
Driving Possibilities focuses on PreK-12 education to provide students with access to rewarding careers, including opportunities in the auto industry. The long-term initiative aims to close educational gaps for students through innovative, hands-on STEM programming while addressing the essential needs of students and families.
“Our goal is to increase awareness of future STEM careers while helping build sustainable programs in the communities where our team members live and work,” said Tellis Bethel, group vice president of social innovation at Toyota. “With $2 million in the first year, we are excited to expand Driving Possibilities here in North Carolina, home to our first battery
plant in North America.”
This program is not just about classroom learning; it integrates professional development for educators, community engagement and family support, offering a comprehensive approach to STEM education.
“The Driving Possibilities framework provides a holistic approach to ensure all children have equal access to opportunities and a pathway to high-growth careers,” said Sean Suggs, president of Toyota North Carolina. “In collaboration with community partners and businesses, we are focusing resources inside and outside the classroom to help students overcome barriers.”
“We are excited for Toyota’s partnership and investment in communities across North Carolina,” said North Carolina Gov. Roy Cooper. “These grants will help enhance the STEM education of students in Randolph and Guilford counties and prepare them to lead successful careers in a variety fields, including our state’s thriving auto industry.”
Joe Hudson’s Collision Center Expands With 6 New Locations
Joe Hudson’s Collision Center (JHCC) expanded its operational footprint by acquiring six new locations, including Patton Brothers Body and Frame in Athens, GA, and five Precision Hail and Collision locations across Texas.
Patton Brothers Body and Frame has had a long-standing tradition of excellence since its inception in 1959. “The acquisition of Patton Brothers Body and Frame marks our entry into northeast Georgia,” said Brant Wilson, CEO of JHCC. “This strategic move allows us to broaden our reach while honoring the legacy and commitment to quality established by former owner Rodney Patton.” In Texas, the acquisition of five Precision Hail and Collision
locations represents a deliberate effort to strengthen JHCC’s presence in a competitive market.
“We recognize and value the expertise and experience of the team at Precision Hail and Collision,” said Wendy Patrick, chief administrative officer of JHCC. “Their longstanding reputation for excellence aligns perfectly with our commitment to delivering exceptional service to our customers.”
“Our dedicated teams ensure that every new location receives the support and resources necessary to thrive within the Joe Hudson s family,” said
Cameron Dickson, COO of JHCC. “We pride ourselves on our ability to maintain the high standards of quality and service that define Joe Hudson s Collision Center even as we integrate multiple locations simultaneously.”
Joe Hudson s Collision Center was established in 1989 and is headquartered in Montgomery, AL. It now has locations in 16 states.
36 JUNE 2024 AUTOBODY NEWS / autobodynews.com
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CIF Announces Repeat
The Collision Industry Foundation (CIF) announced National Coatings & Supplies/ Single Source committed again to the CIF Annual Donor Program. This marks the fourth consecutive donation at the First Responder (highest) tier.
Introduced in 2021, the Annual Donor Program was designed to bring needed recurring resources to the foundation, so it can deliver on its mission to “Answer the Call” when those in the industry have been impacted by catastrophic events such as wildfires, hurricanes, tornados or flooding.
Learn more about the tax-deductible donations for the program at www. collisionindustryfoundation.org/ uploads/1/2/0/0/120099486/ cif_ad_order_form2023-1119.pdf
For more than two decades through the generous support of corporations and individuals, CIF has been able to assist hundreds of collision repair professionals in need after a disaster.
Women Automotive Network Set To Present Inaugural Detroit Summit
By Abby Andrews Autobody News
The Women Automotive Network (WAN), a global community of more than 34,000 professionals and allies committed to the advancement and empowerment of women in the automotive field, is hosting its first Women Automotive Summit: Detroit, June 4 at the Suburban Collective Showplace in Novi, MI. More than 350 in-person attendees are expected, as well as 700 online. Registration is open at womenautomotivenetwork. com/en-us/pages/womenautomotive-summit-detroit. The agenda includes a full slate of speakers presenting on a wide range of topics: building a resilient workforce, finding success in the competitive automotive industry, the importance of internal networks, the future of women in automotive, intuitive business decision-making and how to make your own career plan. In the evening, WAN will
present the Woman of the Year and Global DEI Champion of the Year awards during a joint cocktail reception with WardsAuto, which is holding its AutoTech event June 5-6. WAN will be exhibiting and hosting a panel discussion during AutoTech.
WAN has held a European Summit annually since 2019, but this is its first event in North America. Stephanie May , director of WAN, said respondents to the
organization s bi-annual survey were insistent on seeing such an event. “The last couple of years, there has been a lot of noise about ‘When are you doing a physical event in Detroit?’” May said. “So now we’re doing a physical event in Detroit.” WAN offers resources to women in the automotive industry for career advancement, community and support, and empowerment and education, while also celebrating women’s success stories. May said the organization covers the entire automotive industry. It was originally focused more on manufacturers and suppliers, but as it has grown, it is seeing more aftermarket companies and dealerships involved.
In addition to its live events, WAN also has a mentorship program and produces monthly interviews with leaders in the automotive industry.
Photo of the European Summit held in 2023. This June’s event is the first Detroit Summit.
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General Motors and South Korea’s LG Energy Solution have agreed to create a $150 million fund aimed at providing compensation to owners of Chevrolet Bolt EVs impacted by battery defects.
This decision is a resolution to a class action lawsuit sparked by numerous fire incidents linked to the vehicles’ batteries.
The settlement was detailed in documents filed in a U.S. court May 16.
GM launched the Chevrolet Bolt EV in 2015, using batteries produced by LG. However, the partnership faced challenges starting in 2020 when GM initiated recalls of the vehicle due to escalating complaints concerning battery fires.
“GM, LG Energy Solution and LG Electronics have agreed to a settlement with plaintiffs to resolve class action litigation related to the Bolt EV battery recall,” GM said in a statement to Reuters.
Under the terms of
the agreement, Bolt EV owners who had a battery replacement or installed the latest advanced diagnostic software might be eligible for compensation. Specifically, owners who implemented the final software remedy at a GMauthorized dealership before Dec. 31, 2023, may receive up to $1,400. Additionally, those who sold or terminated their vehicle’s lease before the availability of the software remedy, as well as those who previously received a battery replacement, will be entitled to a minimum payment of $700.
GM ceased production of the Bolt EV last year, clearing the path for newer EV models. The move was part of a broader strategy shift after the company announced a billion-dollar recall campaign in 2021 to address the battery fire risks, a situation that significantly halted Bolt production and sales for more than half a year.
ZT Automotive Expands Into Alabama, Acquires 13 Dealerships
ZT Automotive, a division of ZT Corporate, announced an expansion into the Alabama market with the acquisition of 13 dealerships previously owned by Florida’s Greenway Automotive Group. The acquisition includes brands such as Toyota, Honda, Nissan and Chrysler Dodge Jeep Ram FIAT, positioning ZT Automotive to potentially generate more than $195 million in annual revenues. “Our commitment to delivering top-notch service and optimizing operational efficiency has consistently driven revenue growth and enhanced profitability throughout our automotive business,” said Taseer Badar, chairman and CEO of ZT Corporate and CEO of ZT Automotive.
The deal includes three dealerships in Florence and one in Tuscumbia, which will undergo rebranding to reflect the local cultural heritage, becoming Singing River Toyota, Singing River Honda, Singing River Nissan, and Singing River Chrysler Dodge Jeep Ram FIAT, honoring the region’s rich musical and recording studio legacy.
A spokesperson for ZT
Automotive confirmed wholesale parts availability from the acquired dealerships will remain the same.
This acquisition emphasizes our commitment to creating value for our customers, investors and talented team, said Sheheryar Shah, chief investment officer of ZT Corporate. We plan to continue acquiring top-quartile and cash-flowing dealerships where we can leverage our operating strength to enhance business operations and profitability. Our automotive portfolio continues to deliver strong returns, and we are confident that the Alabama acquisition will yield similar results.
This expansion follows ZT Automotive’s successful operation of nine other dealerships in Texas, Florida and Georgia. With the addition of these new locations, ZT Automotive not only increases its market share but also enhances its service offerings in a new geographic area.
The transaction was facilitated by Alan Haig of Haig Partners, acting as the seller s advisor, with BMO serving as the lender.
38 JUNE 2024 AUTOBODY NEWS / autobodynews.com
LG
EV Battery
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Issues
Automakers Report Strong Hybrid, EV Sales in April
Toyota reported a 15% increase in sales in April compared to the same month last year, making it the bestselling manufacturer in the U.S., as the 183,339 units it sold topped second-place Ford’s 170,302.
Ford
While Ford’s total sales were 3% lower compared to April 2023, sales its hybrid vehicle lineup increased 60% from the same month last year, setting a new monthly sales record, led by the F-150 PowerBoost Hybrid, which boasted a 93.6% increase in sales.
Ford said the impressive performance reflects a broader trend in consumer preference for more sustainable and versatile vehicle options. The new 2024 model of the F-150 Hybrid has particularly resonated with customers, many of whom opted for the 7.2kW Pro Power Onboard feature, which allows the truck to supply power not only to job sites and tailgate parties but also in emergency situations, such as power outages.
The best-selling hybrid pickup overall for the year, the Maverick Hybrid, sold 26,061 units in the first
four months of 2024 alone. Ford said 59% of Maverick Hybrid customers are new to the brand, switching mainly from small SUVs to the smaller, more efficient pickup model.
Hyundai
Hyundai Motor America reported total April sales of 68,603 units, a 3% decrease compared with April 2023. There were two fewer selling days in April 2024. Hyundai set total sales records in April for Elantra HEV (+3%), IONIQ 5 (+59%), IONIQ 6 (+41%), Tucson HEV (+44%), Santa Fe HEV (+12%) and Palisade (+31%). Hyundai’s electrified (hybrid, plug-in hybrid and electric vehicle) sales grew 26% while battery electric sales grew 31%.
Kia
Continuing its push toward sustainable mobility leadership, the all-new EV9 delivered its best sales performance to date in April and Kia America shattered its all-time monthly EV sales record, increasing 61% over the previous record set in April 2022 total. Kia sold 65,754 units in April, with SUVs accounting for 81% of the mix.
Three Kia utility vehiclesCarnival (+18%), Telluride (+5%) and Sportage (+2%) - each delivered the best April sales in their respective histories. In addition, sales of the all-electric EV6 grew 65% year-overyear while the new Sorento (+24%) and ICE Forte (+11%) also posted year-over-year gains.
Honda
American Honda’s April sales totaled 116,586 units, with balanced sales of cars and light trucks resulting in its second best sales month of 2024.
Honda brand sales topped 106,000 units in April, up 15.7% year-over-year and the brand’s third straight month above 100,000 units.
Honda’s electrified sales exceeded 21,000 units, with CR-V hybrid and Accord hybrid achieving a 46% and 51% model mix respectively. The Allelectric Prologue posted initial sales as units began arriving at dealers in the last few days of April.
Acura brand sales topped 10,500 units in April, its second best month of 2024. The first allelectric model from Acura, the 2024 ZDX and ZDX Type S, began arriving at dealers May 1.
Mazda
Mazda North American Operations reported total April sales of 31,125 vehicles, a decrease of 3.8% compared to April 2023. Yearto-date sales totaled 131,228 vehicles sold, an increase of 8.7% compared to the same time last year. With 27 selling days in April, compared to the same the year prior, the company posted a decrease of 3.8% on a Daily Selling Rate (DSR) basis.
Subaru
Subaru of America, Inc. reported 55,863 vehicle sales for April 2024, a 9.5% increase compared with April 2023 (51,014). SOA also reported year-to-date sales of 208,859, a 7.4% increase compared with the same period in 2023.
In April, Forester remained the top seller, with 17,850 vehicles sold, an 85% increase compared to April 2023. Outback also continued to have a strong showing, with 13,131 vehicle sales. Crosstrek sales followed closely behind, with 12,127 vehicles sold, a 17.6% increase over April 2023.
autobodynews.com / AUTOBODY NEWS JUNE 2024 39
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NC Shop Owner Charged With Insurance Fraud
A Gaston County, NC, man faces felony charges of insurance fraud, North Carolina Insurance Commissioner Mike Causey announced. Christopher Mark Rogers, 51, of Dallas, NC, is accused of compromising vehicle repair integrity. Rogers, who owns a body shop in Iredell County, allegedly engaged in deceptive practices by failing to use new parts for vehicle repairs despite receiving payments from National General Insurance Co. to do so.
The alleged offense happened May 31, 2023. Causey encourages North Carolinians to help keep insurance premiums low by reporting suspicious fraud.
“Insurance fraud is not a victimless crime,” Causey said.
“It hits all of us in the pocket through higher premiums.”
Anyone who suspects insurance fraud or other white-collar crimes should report it anonymously by calling the N.C. Department of Insurance Criminal Investigations Division at 919-807-6840 or toll free from anywhere in North Carolina at 888-680-7684.
Ford Seeks Supplier Cuts Amid EV Losses
Ford is pressing its suppliers for cost reductions to improve profitability of its electric vehicle division, Model e, which reported a $1.3 billion loss in the first quarter of 2024.
In a memo from Ford to its EV suppliers, first reported by Crain’s Detroit Business, Liz Door , Ford’s chief supply chain officer, said the automaker needs to “deliver affordable EV products to our customers.”
Door asked suppliers to look for ways to make manufacturing operations more efficient and reduce capital spending. She also called for further costreduction proposals on the EVs in Ford’s lineup, including the F-150 Lightning, Transit and Mustang Mach-E.
Ford told Reuters it is working on making its EV division profitable. “We value our suppliers’ collaboration and asked them to share their ideas for cost reductions,” the company said in a statement.
Ford’s Model e division,
which focuses on EVs and related software, is hemorrhaging billions in an intense competition with Tesla and other industry leaders, who are dropping prices on their own EVs. The division’s first-quarter loss translates to more than $100,000 for every EV Ford sold.
In response, Ford CEO Jim Farley announced a cutback in projected spending on building out the Model e unit, scaling down from an anticipated $10 billion to between $8 billion and $9 billion.
The push for cost efficiency is part of a broader strategy that includes reevaluating Ford’s focus in the European market. Martin Sander , head of Ford’s European passenger car division, hinted at a potential pivot towards hybridelectric vehicles in response to consumer preferences.
“If we see strong demand, for instance, for plug-in hybrid vehicles, we will offer them,” Sander noted.
40 JUNE 2024 AUTOBODY NEWS / autobodynews.com
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Fisker Expands Dealer Network But Warns of Possible Layoffs, Plant Closure
While Fisker Inc. announced May 2 it added six more dealer partners in the U.S. and Guam, a leaked email to employees said the Californiabased EV startup faces potential layoffs and facility closures if it fails to secure financial stability.
Fisker said it added three new dealer partner locations in California — one in Sacramento and two in Los Angeles County — as well as in Kansas City, MO, and Forest City, PA, and a new distributor in Guam.
“We are excited to welcome our new dealer partners to the Fisker family and look forward to them opening for business,” a Fisker spokesperson said in a statement.
The email, confirmed by several employees and obtained by Business Insider, sent earlier in the same week by John DiDonato — the newly appointed chief restructuring officer — serves as a “conditional notice” to employees, indicating job terminations could take effect June 28 if the
through. The email could have been sent in order to comply with the Worker Adjustment and
“Every decision is made following thorough
analysis and careful consideration of the available
options, including the appropriate locations and workforce for the go-forward business, as well as our ability to manage our liquidity and sell our inventory,”
FISKER SPOKESPERSON
operating cash requirements, including maintaining discussions with prospective buyers and investors and exploring various restructuring alternatives,” the email said, but there remains a significant risk these efforts may not be fruitful.
“Every decision is made following thorough analysis and careful consideration of the available options, including the appropriate locations and workforce for the go-forward business, as well as our ability to manage our liquidity and sell our inventory,” A Fisker spokesperson said.
DSG Acquires S&S Automotive
Distribution Solutions Group, Inc., announced its operating company, Lawson Products, acquired S&S Automotive, Inc., a major player in automotive and industrial parts supply based in Woodridge, IL. This acquisition promises to strengthen Lawson Products’ Kent Automotive division, in the North American automotive dealership and collision repair market.
“Similar to Lawson’s Kent Automotive business, S&S Automotive is an industryleading distributor in the automotive dealership market,” said Cesar Lanuza, president and CEO of Lawson Products.
Retraining Notification (WARN) Act, which requires a 60-day notice before major layoffs or closures.
“We’re very excited to announce this acquisition that leverages the best of both companies. On a combined basis, S&S and Kent Automotive will enhance our ability to serve customers with auto-related supplies and tools, as well as vendor-managed inventory (VMI) services to dealerships and collision repair customers in this growing market.”
“We are diligently pursuing all options to address our
Fisker also recently reduced the price for its 2023 Ocean SUV models. The top-tier Ocean Extreme trim dropped $24,000 to a new price of $37,499. Similarly, the Ocean Ultra trim is now priced at $34,999, down from $52,999, and the Ocean Sport at $24,999, reduced from $38,999. The price cuts were effective as of March 29, and mirror reductions in Canada and Europe.
This acquisition, which includes an annual revenue of approximately $40 million from S&S Automotive, was funded through a combination of DSG’s cash and its available credit facility. It is also expected to be accretive to DSG’s adjusted EPS and EBITDA margins.
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WIN Annual Conference Encourages Women in Collision Repair To ‘Dream Out Loud’
By Abby Andrews Autobody News
The Women’s Industry Network held its 2024 Annual Conference, themed “Dream Out Loud,” May 6-8 in Newport Beach, CA, with a lineup of speakers, discussions and networking opportunities to celebrate and empower women in the collision repair industry.
The event also featured a gala, where this year’s Most Influential Women recipients were recognized, as well as a walk to raise money for student scholarships and a threevehicle giveaway to deserving local recipients by the National Auto Body Council’s Recycled Rides program.
Creating a Welcoming Culture
Among the presentations on the second day of the conference was a panel discussion on “Creating a Welcoming Culture.”
Moderated by WIN Chair Liz Stein, of OEC, the panel addressed how to foster engagement and teamwork among employees coming from diverse backgrounds, with a range of needs.
Melanie Allan, of Craftsman Collision in California, said her shop hired a consultant to help define their
company vision and core values, which are revisited annually. She also said the shop is “big on transparency,” sharing important numbers like KPIs and recognizing employees for their “wins.”
commission to an hourly rate for its technicians, which both attracts younger technicians who do not yet have the skills to completely repair a car, and encourages more
WIN Chair Liz Stein, far left, of OEC, moderated the panel discussion, “Creating a Welcoming Culture.” Panelists included, second from left to right, Lisa McNally of American Family Insurance, Annie Karrick of the Boyd Group/Gerber, Taryn Limpach of Safelite Auto Glass, Kena Dacus of Dacus Auto Body and Collision Repair in Kansas, Christy Harris of CCC, Ritu Shannon of Enterprise and Melanie Allan of Craftsman Collision in California.
She said the shop adjusted its pay structure for some of its employees from commission to hourly, so when the number of cars coming through slows down from time to time, employees don’t get testy.
Kena Dacus, of Dacus Auto Body and Collision Repair in Kansas, said her shop also switched from
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experienced technicians to take the time to teach them.
“We did that five years ago, and it was a big game-changer,” Dacus said.
Dacus said her shop switched to a four-day workweek, which has proven instrumental in helping employees establish a better worklife balance.
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Allan recommended doing fun things when possible. Being in California, her shop sometimes has to deal with power “brownouts,” scheduled by the utility companies. When those happen, the shop closes and everyone goes somewhere like a local pool hall.
“Do a fun thing out of the ordinary, and they will talk about it for a year,” Allan said.
Dacus said her shop does employee engagement surveys, every six to 12 months as needed. Replies are anonymous, which can be “scary to open yourself up to that, but it’s good to get that information,” she said.
Her shop also holds an all-staff meeting once per week to share the “new and good” in their life, which has proven to be a good way to get to know each other outside of work and learn what motivates them.
Ritu Shannon of Enterprise said her company encourages employees to donate time and money to nonprofits important to them. Employees can spread out donations over multiple pay periods, and Enterprise will match those. The company also gives them paid time off to volunteer for nonprofits of their choice, and organizes volunteering opportunities for employees to take advantage of.
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Glass said Safelite gives employees eight hours of paid time off to volunteer per year, and established the Safelite Foundation, which employees can request to make grants to organizations important to them.
Lisa McNally of American Family Insurance said her company hires a lot of people who are new to the industry, and assigns them a mentor on day one. Shannon said Enterprise also has a mentorship program that matches employees, not necessarily to a mentor in the same department.
“When an employee feels supported and invested in, that’s when they feel job loyalty,” Shannon said. “Mentors benefit too, as they learn new perspectives.”
Annie Karrick of the Boyd Group/ Gerber and Christy Harris of CCC said their companies have both established employee resource groups for different segments, including veterans, the LGBT+ community, women and people with disabilities, to both bring together people who share similar backgrounds and people who are allies or want to learn more.
NABC Recycled Rides Presentation
On the final day of the conference, three deserving women from San Clemente, CA, received the keys to
daily life, through the NABC Recycled Rides program.
Cindy Cepeda, a military wife facing transportation challenges after a family car accident, received a 2019 Acura RDX, donated by the Auto Club of California and repaired by Caliber Collision.
“Having this car is one of greatest blessings in recent years. Now I can get to work, pick up my kids from school and do our daily routines. I am so grateful,” Cepeda said.
Celina De la Torre, a single mother and membership clerk, was presented a 2020 Mazda CX-5 donated by GEICO and repaired by Crash Champions. De la Torre had sold her car to help a friend in need and had been relying on borrowed vehicles.
This means a lot,” said De la Torre. “This is a big help for my family and me. I just can’t believe it. Thank you so much.”
Maria de Tate, another single mother working as a housekeeping supervisor, received a 2019 Hyundai Sonata donated by GEICO and repaired by Fix Auto Brea. Struggling with a deteriorating 2005 Toyota Camry, de Tate was facing immense financial burdens due to necessary repairs.
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Florida Man Arrested For Faking Car Vandalism in Insurance Scam
Ivan Gomez of Florida allegedly caused nearly $25,000 in damage to his own MercedesBenz, then claimed it was vandalized at a repair shop where he’d dropped it off for an oil change, in hopes of a hefty insurance payout, police said.
Gomez has been charged with falsifying a police report and criminal mischief, WINK News reported.
The Lee County Sheriff’s Office said deputies were called to WSP Tires in Tice, FL, following a report of a car burglary by Gomez. However, upon arrival, they discovered a scene that raised suspicions immediately. The MercedesBenz had smashed windows and slashed leather seats.
“A suspect is reporting that his car was vandalized, with almost $25,000 worth of damage and the tires, windows broken, it appears like someone had done this, and he wanted to report it to his insurance company,” said Lee
County Sheriff Carmine Marceno
“As we start to piece it together, it just doesn’t make sense.”
Investigations revealed Gomez owed $45,000 on his car at the time he filed the insurance claim. Detectives then obtained surveillance footage from a neighboring business, capturing Gomez in the act of vandalizing his vehicle.
A witness from the business next door spoke to WINK News, detailing what they saw on the video: “He came in, parked on the side of the property and then got out … and you can hear it in the video: he hit and kept hitting the glass,” the witness said, adding Gomez was slashing the inside of his vehicle as well.
“It’s important to understand that when someone does this, it’s why our insurance rates go up, because when someone makes a false claim, and we have to pay that, overall, we all pay for that in the end,” Marceno added.
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GEORGIA NO. CAROLINA
Average Length of Rental Continues Decline from Post-COVID Highs
New data from Enterprise showed the average length of rental (LOR) for collision-related rentals in Q1 2024 declined by just over one day year-over-year, to 17.6 days.
The results followed the typical trend of LOR decreasing in the first quarter of the year, and it also continued the steady decreases seen from post-COVID highs, with Q1 2023’s 18.7 days and Q1 2022’s 18.2 days.
However, it is still higher than the same quarter in 2021, when LOR was 13.3 days, and in 2020, when it was 13.2 days.
West Virginia had the highest overall LOR at 21.8 days, a 0.6-day increase from Q1 2023. Colorado had the second-highest LOR at 21.1 days, followed by Rhode Island (20.9) and Alaska (20.7).
North Dakota had the lowest LOR with 13.1 days, a 1.5-day drop from Q1 2023. Hawaii wasn’t far behind at 13.2 days, followed by Iowa at 13.6 days.
Only three states had increased LOR: West Virginia (+0.6), Maine (+0.2) and New Mexico (+0.2). Vermont and Delaware were flat. Washington had the largest decrease of 2.3 days, closely
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followed by Montana and Louisiana at 2.1 days each, and South Dakota, Utah and Alaska at 2.0 days each.
John Yoswick , editor of the weekly CRASH Network newsletter, offered some insights from data he’s received.
“The continued decline in LOR in Q1 2024 aligns with the decline we’ve seen with repair shops’ backlog of work in the same timeframe,” Yoswick said. “On a national basis, the average backlog reached a two-year low in January — just shy of four weeks. That’s down by nearly two full weeks since the high of 5.8 weeks in the first quarter of 2023. But the average backlog remains significantly higher than the same period in January 2020 (2.1 weeks) and January 2021 (1.6 weeks).
“We’re also seeing continued decline in the amount of work-inprocess (WIP) that shops have, which often benefits throughput, and can be another sign that partsrelated challenges are easing a bit,” Yoswick continued. “We measure WIP as the number of repair jobs that a shop has in-process compared to that shop’s typical monthly repair job count. The more
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than 550 shops that shared data with us in March had WIP that on average was equal to 57% of their typical monthly volume. That was down 11 points from the prior quarter, and 8 percentage points lower than a year earlier.”
Greg Horn , PartsTrader’s chief innovation officer, compared delivery day trends he is seeing.
“PartsTrader uses median delivery days, plus two standard deviations, to track the delivery times and the impact of the outliers,” Horn said. “We compared the results of Q1 2024 median parts delivery data to the Q1 results for the preceding three years. Q1 2024 median delivery days for all parts saw an overall decrease of 1.9 days compared to Q1 2023.”
Horn also compared Q1 2024’s results to Q1 2021, finding median delivery days have not returned to 2021 levels, which correlates parts availability with length of repairable vehicle rentals: “While we have seen an impressive reduction in median delivery times for all part types, we are still not at 2021 and prior years’ performance levels.”
Asked what makes the difference, Horn offered: “There
isn’t a single factor, such as a single manufacturer, union strike or port bottleneck; this is an industry struggling to reach pre-pandemic production and delivery levels, and we’re not there yet.”
Drivable
For rentals associated with drivable claims, LOR was 15.8 days, a relatively minor 0.3-day drop from Q1 2023.
Rhode Island had the highest drivable LOR at 19.3 days, followed by Colorado at 19.0 days. West Virginia had the highest drivable increase, up 1.6 days to 17.6. New Mexico also saw a significant increase, up 1.2 to 18.0 days. Twenty other states, plus Washington, D.C., had drivable increases in Q1 2024.
The lowest drivable LOR was North Dakota with 10.4 days, followed by Hawaii at 11.8 days and Iowa at 12.0 days. California saw the largest drivable decrease, down 1.2 days, with Utah close behind with a full 1.0-day decrease.
Non-Drivable
Non-drivable LOR in the U.S. was 25.0 days in Q1 2024, a 2.5-day drop from Q1 2023.
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West Virginia recorded the highest non-drivable LOR at 33.2 days. Colorado (30.6 days), Montana (30.5 days), New Mexico (30.4 days) and Alaska (30.2 days) all had non-drivable LOR greater than 30 days.
D.C. had the lowest non-drivable LOR with 20.6 days, followed by Iowa (21.0 days) and New York (21.9 days).
Vermont was the only state to record a higher non-drivable LOR over last year, as its Q1 2024 result of 27.5 days represented a 1.1-day increase.
South Dakota had the largest decrease, down six full days to 24.7 days. Both Louisiana and Washington had decreases greater than five full days (5.3 days and 5.0 days, respectively). Thirteen additional states, plus D.C., had non-drivable decreases greater than three days, with 29 additional states notching decreases greater than a full day.
“The percentage of shops in January that said they could schedule a job within two weeks (33%) was virtually unchanged from Q4 of 2023 but was 20 points
He also observed that a backlog decline of any percentage between October and January is notable:
“The first quarter is traditionally the busiest of the year, and in the eight-year history of backlog tracking through the ‘Who Pays for What?’ surveys, there had never been a decline in backlog between October and January. That might suggest the drop in backlog is more dramatic than the 1.3-day decline, compared to Q4 of 2023, reflects.”
Yoswick also tracks regional backlog differences, as they do vary: “The Southwest region, which includes California, reported a 1.9-week average backlog in January, a small increase from the prior quarter, but still the shortest average backlog of any region. The New England states reported a oneweek jump in backlog to an average of 5.3 weeks, perhaps because of several snow events in January. The average backlog remained flat or down in the other parts of the country; the largest decline was in the Pacific Northwest, where the average fell 2.2 weeks to 4.7 weeks.”
Ryan Mandell , director of claims performance for Mitchell
“Calibration frequency in January 2024 increased to 21.35%, compared to 15.1% in January 2023,” Mandell said. “The numbers from February and March have not developed enough to give a full picture of the Q1 numbers.”
Total Loss
LOR associated with total loss claims was 16.4 days in Q1 2024, a 2.0-day drop from Q1 2023.
West Virginia had the highest LOR at 20.1 days, followed by Kentucky at 19.4 days. North Dakota had the lowest LOR at 14.4 days, beating out Florida at 14.6 days and Iowa at 14.7 days.
As with non-drivable rentals, Vermont was the only state to see an increase in total loss LOR, up 0.9 days to 18.8 days.
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Alabama’s total loss LOR of 16.4 days was unchanged. Montana had the highest decrease, down 8.1 days to 15.8 days, beating the second-highest decrease in Washington (17.6 days, down 6.1). Twenty-eight other states had total loss decreases greater than two days.
“Overall, repairable claims volume fell by 0.87% in Q1 2024 compared to Q1 2023, fueled primarily by mild weather conditions in January through March,” Mandell said. “A cooling used vehicle market also drove total loss frequency higher — 20.8% in Q1 2024 vs 20.1% in Q1 2023. Overall total loss market values decreased by 1.96% in Q1 2024 compared to Q1 2023.”
AUTOBODY
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Hyundai, Kia Lead Surge in Vehicle Thefts in 2023
Kia and Hyundai vehicles experienced the highest theft rates in 2023, breaking the yearslong trend of full-size pickups topping the list, according to a new report issued by the National Insurance Crime Bureau (NICB).
the Hyundai Elantra, Hyundai Sonata and Kia Optima, with thefts numbering in the tens of thousands.
These models surpassed traditionally high-theft vehicles like the Chevrolet Silverado 1500 and Ford F-150 pickups, which also feature on the list but in lower ranks.
protect their vehicles.”
Statistics from the report further revealed more than 85% of stolen passenger vehicles are eventually recovered, with a significant 34% recovered within just one day of being reported stolen.
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Social media trends highlighting how to steal these vehicles likely played a factor in pushing Kia and Hyundai models to occupy six spots, including the top three, on the list of the 10 most stolen vehicles. Leading the list are
“These rankings highlight the persistent threat of vehicle theft across the country,” said NICB President and CEO David J. Glawe. “NICB works with law enforcement agencies and industry partners to deploy advanced technologies and strategies to combat vehicle theft from organized criminal networks and individuals. Even as we work to deter crime, it is crucial for owners to remain vigilant and take proactive measures to
This report comes after another NICB trend analysis, which indicated the U.S. is still experiencing a surge in vehicle theft rates that started at the onset of the pandemic. This past year, the nation saw another increase as vehicle theft claims rose 1% from 2022 to 2023.
Top 10 Vehicles Stolen in the U.S. in 2023
1. Hyundai Elantra - 48,445 thefts
2. Hyundai Sonata - 42,813
3. Kia Optima - 30,204
4.Chevrolet Silverado 150023,721
5. Kia Soul - 21,001
6. Honda Accord - 20,895
7. Honda Civic - 19,858
8. Kia Forte - 16,209
9. Ford F-150 - 15,852
10. Kia Sportage - 15,749
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