July 2023 Southeast Edition

NHTSA Tells Automakers Not To Comply With MA’s Right To Repair Law

The National Highway and Transportation Safety Authority (NHTSA) on June 13 sent a letter to 22 automakers, telling them not to comply with a Right to Repair law recently enacted in Massachusetts, citing “significant safety concerns.”

to dealership service centers.

It was first approved by Massachusetts voters in 2020, but delayed for years by a lawsuit brought by the Alliance for Automotive Innovation, a trade group representing automakers.

Toyota To Build New EV SUV Powered by Batteries Built in NC

Advancing its commitment to vehicle electrification and building where it sells, Toyota will assemble an allnew, three-row, battery electric SUV at Toyota Kentucky starting in 2025. The company’s first U.S.-assembled BEV will be powered by batteries from Toyota North Carolina.

The new battery plant, which is currently under construction, will receive an additional $2.1 billion investment to support the company’s drive toward carbon neutrality.

“We are committed to reducing carbon emissions as much as possible and as soon as possible,” said Ted Ogawa, president and chief executive officer, Toyota Motor

North America. “To achieve this goal, customers must have access to a portfolio of options that meet

Credit: Shutterstock

“While NHTSA has stressed that it is important for consumers to continue to have the ability to choose where to have their vehicles serviced and repaired, consumers must be afforded choice in a manner that does not pose an unreasonable risk to motor vehicle safety,” the NHTSA said in the letter.

The law requires automakers to allow access to their vehicles’ data, so owners can get them fixed by independent repairers if they choose, rather than be forced to go

Finally, in March, Massachusetts Attorney General Andrea Joy Campbell announced she would begin enforcing the law June 1, despite the lack of a decision in the federal lawsuit. A last-minute motion to block the enforcement by the Alliance for Automotive Innovation was denied.

The letter from the NHTSA claims the Massachusetts law is in conflict with and is therefore preempted by the Safety Act, which

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their needs now and in the future. It is exciting to see our largest U.S. plant, Toyota Kentucky, and our

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CA Man Pleads Guilty To Stealing Identity of VA Auto Shop Owner

A Los Angeles, CA, man pleaded guilty May 23 to fraud and identity theft charges in connection with stealing the identity of the owner of a Richmond, VA, auto shop, Lotsey & Hardy Tire Company.

According to court documents, around January 2022, Daniel Cruz , 30, obtained the owner’s personal information and used that information to take over the auto shop and its owner’s accounting software, bank accounts, email

INSIDE THIS ISSUE

addresses and phone numbers. Through approximately February 2023, armed with this sensitive information, Cruz re-routed calls placed to Lotsey & Hardy to his own phone, transferred money to his personal bank account from bank accounts of the shop and its owner, took out loans in the owner’s name, ordered and picked up auto parts in Los Angeles and billed them to the Richmond auto shop, and ordered auto parts by impersonating the shop’s owner.

Columnist Mike Anderson: How to Create a Winning Customer

Columnist Stacey Phillips: Solving the Tech Shortage: Providing Direction, Showing Vulnerability & Re-messaging the Collision Repair Job

Columnist John Yoswick: Auto Body Shop Owners Decide Where to Focus Attention, Resources in Near Future

Columnist Abby Andrews: Mitchell Hosts High School Students to Show Career Opportunities in the Collision Repair Industry

COLUMNISTS

Index of Advertisers

Stacey Phillips — Solving the Tech Shortage

Providing Direction, Showing Vulnerability & Re-messaging the Collision Repair Job

With a passion for creating new products, Erin Suchara joined 3M as a research and development intern in 2019. After graduating from the University of Michigan the following year with a bachelor’s degree in chemical engineering, she took on a full-time role at the company as an advanced application engineer in Maplewood, MN.

a key role in structuring Caliber’s Technician Apprentice Program (TAP), created for aspiring auto body technicians to acquire the skills necessary to begin a career in the industry. Sorensen also encourages others to get passionate about taking steps to solve this challenge.

“We all need to have a driving force,” he said. “If we don’t have that

part of a local collision repair program to help influence the curriculum for producing skilled technicians and getting involved in the community to raise awareness about the industry. He also encouraged participation in programs such as SkillsUSA.

“It’s one of my favorite activities and has been so rewarding,” he said. “I’ve seen so many incredible stories of young adults getting involved with SkillsUSA and building a career.”

In addition to young people coming out of school and entering the industry, Sorensen has found adults are also interested in a collision repair career. As a result, he said shops need to work toward providing a career path to help them reach their potential.

“We need to be there to guide them through that,” he said. “I’m up here on stage because somebody at my company wanted me to reach my full potential.”

Show Vulnerability

USA. “I think it’s easier when you’re surrounded by people to take time to reflect.”

“Part of it is that we get back to our normal life—the day-to-day operations—and we have so many different things going on,” added Bartanen. “We need to plan better, think about these things, embrace them and feel like we are going to make a change.”

This includes listening to staff, being empathetic and having a sense of purpose.

He pointed out the industry might not be attractive to many based on comments industry professionals make on social media and some of the regular exchanges that take place in shops. “We need to be better behaved if we’re going to attract and retain talent,” he recommended.

Re-messaging the Job

“I’m from the Gen Z generation… We like to know what we’re doing and why it has a purpose,” explained Suchara. “My job is exactly that. I know what I’m making, who is using it and the difference it’s making.”

Hoping to encourage other Gen Zs to join the collision industry, Suchara participated in a panel discussion in April at IBIS USA focused on overcoming the talent shortage. The panel was moderated by IBIS Worldwide CEO Jason Moseley and included Jason Bartanen, Collision Hub’s director of industry relations, and Max Sorensen, senior vice president of operations for Caliber Collision.

Panelists provided the following insight on providing direction, showing vulnerability and remessaging the job.

Provide Direction

Sorensen oversees approximately 375 collision centers in the Midwest and Northeastern regions of the U.S., and is dedicated to educating young people about the collision repair industry and helping them reach their potential. He estimates the industry will require around 110,000 technicians over the next five years.

In response, Sorensen has played

force as an industry, in five years from now, we will be in a bad spot.”

He stressed the importance of providing new entrants structure, so they can continue their journey to become technicians.

Suchara agreed. Joining 3M during the pandemic, she said it was difficult to connect and learn with people in the lab. She soon realized the importance of creating structure to be successful.

“My job changes on a daily basis,” she said. “I talk to everyone from product developers to marketers, so having structure for what I do has helped me at the start of my career.”

Bartanen recommends having employees specialize and learn to excel in certain areas.

“By doing that, I think we’ll have safer and more efficient repairs,” he said.

Create a Culture & Career Path

According to panelists, creating a culture and career path is critical to a business’s success.

“Make sure that you have the culture set and there’s an expectation of it down the line,” said Bartanen, who leads Collision Hub’s in-shop virtual training and coaching program.

Bartanen suggested becoming

Since she didn’t grow up in a body shop environment, Suchara has learned everything from scratch. Being able to ask questions and learn from mentors has helped her advance in her career.

As a younger employee, Suchara has tried to be more vulnerable.

“Sometimes, I play the new card and say, ‘I don’t know,’ and ask questions,” she shared. “It’s not always easy to do and doesn’t always come naturally.”

“I couldn’t agree more with that, whether you call it vulnerability or humility,” said Bartanen. “That’s not inherently what we have done in the collision industry.”

Rather than saying they know everything, Bartanen encourages employees to have the humility to admit they don’t always know, put trust in their research and leverage the expertise of other staff and peers for assistance.

“I think a lot of self reflection needs to happen,” he recommended. “Taking the humble route is a great way to go.”

Be a Disciple

After talking about talent shortage solutions, many find it is challenging to implement new ideas.

Suchara said it’s often more natural to reflect on these issues while attending conferences like IBIS

When Suchara entered the industry, she was surprised her role wasn’t advertised as a job that required a lot of skill and had the potential to earn a good wage. “I think the messaging could use a little refresh,” she acknowledged.

“We definitely have to change the narrative because it’s not just working with your hands anymore,” said Sorensen. “Technicians need to know the ins and outs of that vehicle because it’s a supercomputer on wheels.”

“Who better to do that than the digital natives… who were born with a tablet in their hands,” added Bartanen.

When people share information about a collision repair career, Bartanen often hears them start by saying not everybody will be a doctor or a lawyer.

“That immediately sets the tone that technical education is a secondary option,” he said. “Why can’t we go after the valedictorians? Many of them surely like to work with their hands, are creative and like technology.”

He encourages the industry to look at everybody as a potential job candidate. “Let’s not just isolate it based on our preconceived beliefs of what happened when we were younger, when kids were shuffled to ‘that end of the school’ because they weren’t the best at math or English,” he said. “You need all those skills now.”

Pictured, left to right, are IBIS Worldwide CEO Jason Moseley; Max Sorensen, senior vice president of operations for Caliber Collision; Erin Suchara, advanced application engineer at 3M; and Jason Bartanen, Collision Hub’s director of industry relations.

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VW Gifts Damaged Vehicles To TN Collision Repair Programs

By Heather Mullinix Crossville Chronicle

Students at Tennessee College of Applied Technology in Crossville, TN, and across the state will have the chance to apply their skills in collision repair on new model vehicles thanks to a donation from Volkswagen Group of America.

“We’re glad to make something good out of something that was initially not so good,” said Ian Leavy, Volkswagen assistant general council. “Anything we can do to help improve the general talent pool of the people who are going to be working on our vehicles is a positive.”

The vehicles were damaged in transit. They are all new 2022 Audi models with varying levels of body damage, from some dents and scrapes to more extensive damage.

Additional vehicles are being donated to programs across the country.

“We’re big partners with the state of Tennessee and the educational resources we have,” Leavy said. “I’m with the factory [in Chattanooga], and workforce development is one of our main priorities. TCAT has

Representatives of Volkswagen recently presented the collision repair technology program at TCAT-Crossville with four 2022 Audi vehicles damaged in transit. On hand for the presentation are, from left, TCAT collision repair instructor Nancy McInerney; TCAT-Crossville Vice President Stacy Johnson; Tennessee Speaker of the House Rep. Cameron Sexton; TCAT-Crossville President Cliff Wightman; Volkswagen representative Ian Leavy; and Cris Perkins, Jeff Sisk and John Williams with the Tennessee Board of Regents. Credit: Heather Mullinix

been a big partner of ours over the years.”

Crossville campus instructor Nancy McInerney was thrilled to see a line of new vehicles ready and waiting for her students.

“This gives my students an opportunity to work on new models,” McInerney said. “I’m very appreciative.”

In addition to four vehicles for the Crossville campus, the donation includes 17 vehicles total to be

2023 Techs Rock Awards Announces Winners

used at campuses in Livingston, Chattanooga, Morristown and Knoxville.

“It’s going to help students train on the best and most unique equipment out there and allow them to be ready for the workforce, which is our mission,” said Cris Perkins, assistant vice chancellor of advancement for the Tennessee Board of Regents. “This is just a wonderful partnership.”

TCAT-Crossville President Cliff Wightman said, “I know Nancy is looking at these and thinking, ‘I can fix these.’ We’ll make good use of them.”

There are currently nine students enrolled in collision repair technology at TCAT-Crossville. The 16-month program offers rolling admissions.

Learn more about the collision repair program and other programs offered at TCAT-Crossville at tcatcrossville.edu.

TechForce Foundation® announced the category winners in the 2023 Techs Rock Awards, created to honor professional technicians who are full of passion and grit, exhibit true excellence in their work and inspire the next generation of techs.

Meet the category winners at TechForce.org/Vote. Voting for the grand prize winner is closed, but the results will be announced soon.

More than $18,500 in prizes will be awarded to this year’s honorees. Each of the five category winners received prizes valued at more than $1,900 from TechForce partners Advance Auto Parts, AutoZone, Cengage Learning, CRC Industries, Ford Motor Company, Nissan, Snap-on Industrial and WD-40 Company.

In addition to their category winner prizes, the grand prize winner, chosen by popular vote, will receive an all-expenses-paid trip to STX 2024 in Nashville, TN, valued at $3,000, courtesy of Advance Auto Parts; and additional prizes valued at $6,000 from AutoZone, CRC Industries, Ford Motor Company, Nissan, Snap-on Industrial and WD-40 Company.

Source: TechForce Foundation

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Mitchell Hosts High School Students to Show Career Opportunities in the Collision Repair Industry

By Abby Andrews Autobody News

San Diego, CA-based Mitchell recently teamed up with the owner of a regional MSO and a local high school to show students in both the automotive repair and robotics programs career possibilities they might not have considered before.

He said he got the idea to also invite students in robotics programs when his daughter took a robotics class and he noticed similarities in the components of robots and new cars.

Luke Burger, senior solutions specialist for Mitchell, told the students the goal was to show them all the different facets of the automotive industry, especially collision repair.

“We want you to see the software, tools, different components to get data from vehicles,” he said. “Hopefully you’ll find something interesting.”

Ben Sikora is the auto body instructor at Santana High School. He said when he took the job at the beginning of the previous school year, it was clear the program had “gotten passed by the industry over a decade ago.”

be interested in re-opening it. A week later, Sikora had the keys to the school’s shop.

Leger had another reason to support the re-establishment of the auto body program—he owns three Fix Auto body shops in the San Diego area that all need to be staffed.

one at a high school in Ramona, CA, where he co-owns a fourth Fix Auto shop, until that program was closed.

Over two consecutive days, about 50 students from Santana High School in Santee, CA, first stopped by Mitchell’s Technical Research Center in San Diego, and then visited Fix Auto Poway.

At Mitchell, students saw a static calibration of a 2018 Honda Accord equipped with ADAS features along with 3D imaging software, used to determine vehicle dimensions that appear in the company’s estimating solution and database of repair and reference information. They also got a chance to look at a pair of Rivian R1T electric trucks. After lunch, they went to Fix Auto Poway to see every step of the repair process, from intake to delivery.

The demonstration was part of Mitchell’s efforts to address the growing technician shortage problem in the collision repair industry; the company also donates software subscriptions to schools around the country through the Collision Repair Education Foundation (CREF), and is a supporter of the Enterprise Holdings Foundation and Ranken Technical College collision engineering program.

Scott Baierl, senior vice president of engineering and content for Mitchell, said the hope is to show young potential technicians all the cool new technology on today’s vehicles to get them interested, while helping schools get the tools needed to train them.

“It was important to modernize it so students are ready to get a job working on cars that actually exist,” Sikora said.

Sikora got to work immediately applying for grants with CREF and other organizations. He has won enough funds to purchase new welders and a waterborne paintmixing system, and will soon have estimating software, thanks to Mitchell. He said he hopes to also get a calibrating system like the one demonstrated.

“Cars are changing, but they’re not going away,” Sikora said. “People are still banging them into each other.”

Sikora said he started working in a collision repair shop when he was 17. He later owned a custom restoration shop, which was how he met Gary Leger, the owner of a 1967 Bronco and the father of a student at Santana High School. Leger knew the auto body program at the school had just been shuttered after the last instructor retired, and asked Sikora if he would

“The older generation is aging out,” Leger said. “We have to show [younger people] it’s not just banging on fenders anymore. There are more computers in a Honda than in a 737.”

Leger said he has been involved with the auto body program at Santana High School for about four years, and was also working with

He said a graduating senior from Santana’s program will start working at one of his shops full time in June.

“I’m lucky to have a bit of a younger crew,” he said.

Later that afternoon, Leger and one of his employees led the students in smaller groups around the shop floor at Fix Auto Poway, which has 27,000 square feet of production space and repairs about 200 vehicles per month—including Rivians, which has certified the shop as a repair center.

“Cars are changing, but they’re not going away. People are still banging them into each other.”

BEN SIKORA AUTO

BODY

INSTRUCTOR, SANTANA HIGH SCHOOL

Neal Hoffman, far right, solutions specialist, and Luke Burger, senior solutions specialist, second from right, both with Mitchell, demonstrate using a device to scan a 2018 Honda Accord equipped with ADAS features.

High school students watch a demonstration at Mitchell’s Technical Research Center in San Diego, CA.

Gary Leger, owner of Fix Auto Poway, leads students on a tour of his 27,000-square-foot shop.

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How to Create a Winning Customer Experience

A lot of people think Collision Advice is just Mike Anderson, but I think it’s important people understand it’s so much more. We have 12 people on our team right now, amazing teammates who all have certain expertise. We have Maria Quintero and Mark Head, who both specialize in accounting assistance, for example, and we have Jeff Oldenettal and Danny Gredinberg, who specialize in estimating and parts. So we’re really a complete team.

Every year, we have a theme that shapes the work we do as we train and coach the shops we work with. This year’s theme is: Be extraordinary. Kevin Brown, author of “The Hero Effect,” spoke at our recent conference, and said he believes nobody notices normal. That’s why we need to be extraordinary in everything we do.

Sheryl: Sure. Customer service and customer experience are definitely two different things. When you think of customer service, those are individual moments or aspects of the customer experience. The customer experience is the entire customer journey: How are we making the customer feel, what are the emotions they feel when they interact with our brand?

system in place where I can schedule an appointment, or request a photobased estimate? Again, is it easy to do business with you?

Mike: Right, and you’re not talking about a photo-based estimate as a claims settlement strategy, but more as a marketing strategy. Because we’ve found that when customers have had an accident, they’re feeling a high level of anxiety. If they can submit photos to you or request information from you outside of normal business hours, it kind of lowers their anxiety because they feel like at least they’ve got the ball rolling. We’re not trying to write a repair plan based on photos. We’re trying to provide convenience for our customers to get the process started.

acknowledging the emotions you’re hearing from them. It can be as simple as, “I understand how frustrating this is, and I am here to help you every step of the way.”

And then that leads us to guiding them through the process. They need our direction. Unless they just got their car repaired by you just a couple weeks ago, they need you to guide them every step of the way on what the repair process looks like. All this has to be authentic, so it should never be scripted. You can use scripts to practice with, but if that wording doesn’t feel natural, do not say it that way. You don’t want to come across as inauthentic. Think about what you would say if a friend called you and told you they had been in an accident.

So for my column this month, I wanted to have one of my awesome teammates, Sheryl Driggers, share some of her insights on something she’s very passionate about: creating the extraordinary customer experience. Sheryl is a former shop owner in Florida, and she and I recently presented together on this topic at the Midwest Collision Repair Trade Show in Kansas. Here’s what we talked about.

Mike: Sheryl, let’s start out with what you see as the difference between “customer service” and the “customer experience.”

The customer experience actually starts with your employees’ experience. In order to create an extraordinary customer experience, we first have to create an extraordinary experience for our employees. How we talk to our employees, how we treat our employees, their ongoing experience with your company directly influences the experience of your customers. So that is No. 1.

Mike: And the customer’s experience is shaped even before they start to interact with those employees, doesn’t it?

Sheryl: Yes, even before they pick up the telephone and call us. It starts the moment they have any kind of interaction with our brand. We have to make it radically easy for customers to do business with us. And I don’t mean just easy, I mean radically easy.

We live in a world where you can order almost anything and get it the next day, if not the same day. Customers want that instant gratification, that instant response. So if I were to do a Google search, would your shop come up on the top of the list? Is there a chat feature on your website? And can I do business with you at 2 a.m. when I’m actually finally getting to my todo list? Is there an auto-reply set up, so when I reach out at 2 a.m., I’m not wondering whether I actually submitted something and you’ll get back to me in the morning, or if it went into a black hole. Do you have a

Sheryl: Exactly. Next, when they pick up the telephone and call your shop, what kind of information are they going to get from your customer service team? We of course have to have the conversation about insurance and the claim information, but that is not what we should lead with. We should first and foremost be building relationships from the first moment that we interact with a customer.

We can do that through the three things that you’ve taught for years, Mike, and that’s trust, empathy and direction. Start to build trust with the customer by pointing them to your online reviews, to your social media pages, to what other people are saying about your shop. If you have certifications, are you mentioning that to the customer, and then explaining what that means to them? Demonstrate empathy with at least one statement

Mike: So how about when they arrive at your shop?

Sheryl: When a customer walks through our doors, studies show that we have seven seconds to make a first impression. Even if we’re on the telephone with another customer, we can absolutely acknowledge the customer who walks through our doors through non-verbal cues. We should never communicate that we’re thinking about all the other tasks we need to complete. We should be completely focused on who is in front of us, actively listening to that customer, providing a personalized customer experience.

One of the best questions to ask during a repair consultation is: What is concerning you the most about this process? Whether it’s the claims process, or the repairs process, every single customer is different. And so that really helps us not just regurgitate information, or just check things off a task list.

We don’t want to just “process” a customer. We want to build relationships. So even in that first interaction, our focus needs to be on listening in order to understand what is most important to them so we can provide an individualized, extraordinary customer experience

I’ll share more about what Sheryl and I talked about in my next column.

Sheryl Driggers, one of the teammates at Collision Advice and a former shop owner, shares some of her insights on creating the extraordinary customer experience.

“One of the best questions to ask during a repair consultation is: What is concerning you the most about this process?” SHERYL DRIGGERS COLLISION ADVICE

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Not To Comply

requires automakers to initiate a recall of vehicles that contain a safety defect—which, according to the NHTSA, includes the open remote access to vehicle telematics required by the state law.

“Open access to vehicle manufacturers’ telematics offerings with the ability to remotely send commands allows for manipulation of systems on a vehicle, including safety-critical functions such as steering, acceleration or braking, as well as equipment required by Federal Motor Vehicle Safety Standards such as air bags and electronic stability control,” the NHTSA said. “A malicious actor here or abroad could utilize such open access to remotely command vehicles to operate dangerously, including attacking multiple vehicles concurrently.

“Vehicle crashes, injuries or deaths are foreseeable outcomes of such a situation,” the NHTSA said.

The Massachusetts Right to Repair Coalition released a statement condemning the NHTSA’s letter, calling it the “latest auto manufacturers’ stall tactic.”

“On behalf of 2 million voters and thousands of independent auto repair shops across Massachusetts, we are outraged by the unsolicited, unwarranted and counterproductive letter from NHTSA that conflicts with the Department of Justice’s statement submitted two years ago in federal court stating that there was no federal preemption,” said Tommy Hickey, executive director of the Right to Repair Coalition.

“NHTSA’s letter is irresponsible, having been transmitted without any new evidence and after the conclusion of the federal trial, despite having been asked by the judge to participate in the court proceeding and declining.

“NHTSA’s letter fails to acknowledge the evidence and testimony presented at the trial that demonstrated the viability and security of an open access platform,” Hickey continued. “This is yet another delay tactic the manufacturers are using to thwart the will of their customers, Massachusetts voters who voted 7525 in favor of their right to get their car repaired where they choose. The FTC, the Biden Administration and many members of Congress have all come out in support of Right To Repair.”

Crash Champions Opens New Tampa Repair Center

The Crash Champions Collision Repair Team on May 23 announced the opening of a new high quality collision repair center in Lutz, FL. The new facility is located at 26430 Pine Creek Drive.

The announcement expands Crash Champions’ leading network across the state, which includes 50 high-quality collision repair centers and supplements its nationwide network of more than 600 locations in 36 states.

“On the heels of an historic year of growth in 2022, the opening of a new high-quality repair center in the Tampa market is another proud step forward for our team,” said Matt Ebert, Crash Champions founder and CEO. “This is a strategic market in our overall growth plan, and we look forward to serving local customers and business partners with the reliable and high-quality collision repair service they expect from Crash Champions.”

Crash Champions customers and business partners benefit

from the company’s lifetime guarantee on all repair work valid at any location nationwide.

Collision repair professionals and technicians interested in joining Crash Champions are encouraged to apply at careers. crashchampions.com. Collision repair operators interested in selling their business are encouraged to visit www. crashchampions.com/sell-yourshop to learn more about the process and opportunities.

Source: Crash Champions

“On the heels of an historic year of growth in 2022, the opening of a new high-quality repair center in the Tampa market is another proud step forward for our team,”

MATT EBERT CRASH CHAMPIONS FOUNDER AND CEO

19-State Coalition Challenging EPA on California Truck Regulations

By Mary Stroka The Center Square

Iowa Attorney General Brenna Bird announced June 6 she’s leading a coalition of 19 states challenging an EPA decision regarding trucks, emissions and California.

The coalition filed a petition for review June 5 in the U.S. Court of Appeals for the District of Columbia Circuit regarding the EPA’s April 6 decision to grant the California Air Resource Board waivers on regulations for heavyduty on road vehicles and engines.

EPA found the California board’s Advanced Clean Trucks, Zero Emission Airport Shuttle Bus and Zero Emission Powertrain Certification regulations meet criteria for a waiver under the Clean Air Act.

In the Clean Air Act, Congress decided there would be two programs for control of emissions from new motor vehicles: EPA emission standards under the Clean Air Act and California emission standards under state law. Other states can adopt California’s standards, as

Congress determined California could be a pioneer for new emission standards and control technologies.

Amendments; the Advanced Clean Trucks Regulation, the Zero Emission Airport Shuttle Bus Regulation and the Zero Emission Powertrain Certification Regulation, EPA announced March 31. The ACT Regulation requires manufacturers produce and sell more medium- and heavyduty zero-emission vehicles and near zero emission vehicles in California.

thousands of dollars, according to a news release from Bird’s office. Eight other states have adopted California’s ban, and more are considering it.

“California’s truck ban will not only increase costs, but it will devastate the demand for liquid fuels, such as biodiesel, and cut trucking jobs across the nation,” the release said.

EPA can deny a California waiver request in three cases: if California’s determination that its standards are at least as protective as applicable federal standards is arbitrary and capricious; if California has no need for such standards to meet compelling and extraordinary conditions; or if California’s standards and accompanying enforcement procedures are inconsistent with section 202(a) of the Clean Air Act.

EPA granted a waiver for the 2018 Heavy-duty 2018 Warranty

The Advanced Clean Truck regulation requires truck manufacturers who certify vehicles with combustion engines to sell an increasing percentage of zero-emission trucks for California sales from 2024 to 2035,the board said. By 2035, zero-emission truck/chassis sales would need to be 55% of Class 2b–3 truck sales, 75% of Class 4–8 straight truck sales and 40% of truck tractor sales. Owners of at least 50 trucks must report on their existing fleet operations so the board can help ensure fleets purchase and use available zero-emission trucks.

Currently, 2% of heavy trucks sold in the U.S. are electric, and electric trucks cost hundreds of

Iowa’s trucking industry currently provides almost 100,000 jobs, or nearly one in 13 jobs in the state, the release said.

According to Bird’s office, California’s Advanced Clean Trucks regulation violates the Clean Air Act and other federal laws.

“Iowa isn’t going to take a backseat as the EPA and California try to regulate truckers out of business,” Bird said. “We’re pushing back.”

Alabama, Arkansas, Georgia, Kansas, Kentucky, Indiana, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, Ohio, South Carolina, Utah and West Virginia have joined the petition.

Credit: Shutterstock.

Memphis, TN, Man Charged With Trafficking Counterfeit Airbags

Mohammed Al-Abadi, 51, of Memphis, TN, was indicted and arrested for one count of trafficking in counterfeit goods and one count of causing the criminal transportation of hazardous materials by air carrier, U.S. Attorney Kevin Ritz announced May 17.

According to Ritz and the information presented in court, from about Oct. 1, 2019, to Jan. 14, 2021, Al-Abadi imported counterfeit motor vehicle airbag parts from China, assembled them and then sold them on eBay to unsuspecting automobile repair shops and individual customers. Federal agents recovered more than 2,000 counterfeit airbags and parts from the defendant’s residence and place of business.

“The alleged actions of the defendant have placed unsuspecting motorists and the general public in harm’s way,” said Ritz. “Vehicle airbags are subject to strict quality standards which must be followed to ensure passenger safety. The defendant’s alleged actions undermined the efforts of the automobile industry

and regulatory bodies to keep the public safe.”

“The diligent and extensive investigative work by our special agents led to the discovery of the sale of fraudulent, counterfeit airbags, sold by bypassing regulatory oversight meant to keep dangerous and ineffective products out of the U.S. market,” said Special Agent in Charge Rana Saoud, HSI Nashville. “The defendant will now have to answer for his alleged criminal actions that put consumers lives at risk.”

“Counterfeit air bags are not regulated or tested to ensure they meet federal safety standards, and when transported and used by unsuspecting consumers, they can be unsafe and lead to potentially grave consequences,” said Todd Damiani, special agent in charge, Department of Transportation Office of Inspector General, Southern Region.

“The indictment and arrest handed down demonstrates the continuous coordination with our federal and prosecutorial partners to curtail the flow of these

dangerous and illegal automobile products into the United States.”

If convicted, Al-Abadi faces up to 10 years imprisonment and a fine of $2 million for trafficking in the counterfeit airbags and up to five years’ imprisonment and a fine of $250,000 for causing the transportation of hazardous materials by air carrier. Both charges also carry a period of up to three years supervision following release from imprisonment. There is no parole in the federal system.

Members of the public are reminded an indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt.

This case is being investigated by Homeland Security Investigations and the U.S. Department of TransportationOffice of Inspector General.

Assistant U.S. Attorney Raney Irwin is prosecuting this case.

Source: U.S. Attorney’s Office Western District of Tennessee

Carbeat Ignites Digital Transformation

AkzoNobel’s automotive refinishing customers are experiencing a digital transformation using Carbeat, a datadriven digital project management process simplifying the shopfloor workflow, while tracking critical data using a seamless blend of technology and services.

Historically, collision repair shops used manual processes to monitor a vehicle’s repair process. Carbeat transformed this process with a powerful and intuitive digital production workflow dashboard that collects all datapoints while a vehicle cycles through the repair shop.

AkzoNobel’s customers are experiencing a 10% to 15% reduction in vehicle cycle time by applying the Carbeat visual communication and data management processes, which depending on a shop’s volume of vehicle repairs, may result in reducing the total time required to repair a vehicle by one to three days.

For more information and additional customer transformation success stories using Carbeat, access the Carbeat website at www. carbeat.com.

Source: AkzoNobel

newest plant, Toyota North Carolina, drive us into the future together with BEV and battery production for our expanding electrified lineup.”

North Carolina Brings the Power Toyota is investing $2.1 billion in its North Carolina battery manufacturing plant for new infrastructure to support future expansion. This brings total investment in Toyota North Carolina to $5.9 billion.

“Toyota’s significant investment in our state, now nearly $6 billion, is terrific news and more evidence that North Carolina is a leader in the clean energy economy,” said North Carolina Gov. Roy Cooper. “Toyota believes in our world-class workforce to power its future success and I appreciate this enormous commitment here.”

The facility will be Toyota’s hub for developing and producing lithium-ion batteries needed for its expanding portfolio of electrified

vehicles. Production at the Liberty plant is slated to begin in 2025 with six battery production lines, four for hybrid electric vehicles and two for BEVs.

“The future is bright at Toyota North Carolina,” said Sean Suggs, president, Toyota Battery Manufacturing, North Carolina.

“With this proactive infrastructure investment, we will be able to quickly support future expansion opportunities to meet growing customer need.”

The May 31 announcement confirmed Toyota Kentucky will lead the company’s vehicle carbon reduction efforts with its first U.S.–assembled BEV, a three-row SUV.

The decision to assemble a BEV in the U.S. demonstrates the company’s belief in electric vehicles and its commitment to design, engineer and produce vehicles for the market.

Source: Toyota

Call or Email Now for Rates: AUTOBODY

South Carolina Auto Body Shop Closes While Seeking New Location

An auto body shop based in Horry County, SC, has to close while looking for a new site due to a rezoning request denial.

Avant Auto Repair has been operated by Sylvester Avant in his home’s backyard since 2007. According to local news station WMBF News, inquiries were made last year into the business’s zoning compliance, as Avant’s home is zoned residential-only.

Avant asked for a rezoning, but was denied. At a county council meeting in January, he was given five months to find a new site for the business and move all of the vehicles out of his home’s backyard.

“A lot of places are for rent but are not under my zone compliance for my businesses as far as mobile, stationary and towing,” Avant told WMBF News. “A lot of places are not in the right zoning for that, so it’s hard to find places to rent

to get that approved.

The county declined to renew Avant’s business license, which expired April 30, saying it no longer issues licenses for home-based businesses, Avant said.

Horry County Councilman

Tom Anderso n told WMBF News he is personally trying to help Avant find a new location. Avant is hopeful he will find a new location, and said he is saving money for a down payment on a property.

“A lot of places are for rent but are not under my zone compliance for my businesses as far as mobile, stationary and towing,”

SYLVESTER AVANT AVANT AUTO REPAIR

GM Discusses Collision Repair Network Program, Easing Parts Challenges

By John Yoswick Autobody News

Representatives of General Motors, speaking at the Women’s Industry Network (WIN) Educational Conference in May, talked about recent and upcoming changes to the automaker’s Collision Repair Network (CRN), which currently includes just over 700 auto body shops.

Megan Sullivan, collision program manager, said nearly all of the required tools and equipment to

C8 and Cadillac CT6—can now participate in a “sharing program” for the specific fixtures and tools that level of the network requires.

“We realize they may only see a Cadillac CT6 a couple of times a year in their shop, and we were getting feedback that some of the tools were really expensive for the low amount of repairs,” Sullivan said.

CRN shops with technical questions about repair procedures— or the lack of a procedure—can email the automaker’s collision repair technical support team.

CRN shops also can use a free dashboard through AutoHouse technologies that allows them to see how they compare to other shops in terms of cycle time and other metrics.

the day after a crash is detected, but only if the driver contacted OnStar after the accident and if no injuries were involved.

Given the automaker’s access to that telematics data, the GM representatives were asked if GM has future plans to partner with insurance companies.

“Yeah, we absolutely do,” Doherty

Doherty said. “Is it getting better? It is. We’ve seen a back-order decrease of about 30% since the beginning of the year. So we’re getting some relief, but it is difficult.”

She said the current increase in new car sales “helps our case for the need for service parts.”

qualify for the program are now specbased, rather than requiring specific brands or models. Shops seeking to qualify for the second level of the program—which is required in order for a shop to purchase restricted structural parts for the Corvette

Kelli Doherty, independent aftermarket collision manager at GM, said that dashboard will in the future be used as part of a ranking program of CRN shops.

In terms of more proactively driving work to CRN shops—beyond GM’s shop locator site and the marketing assets available for shop use—Sullivan said OnStar subscribers are emailed a link to the shop locator

said, noting OnStar Insurance has launched to help GM “understand that market better.” “OnStar has a great read on what happens to a vehicle the instant there’s an accident. So we have some great data. We have to figure out how that translates to what’s in the best interest of the consumer, and how we can get that vehicle repaired safely and properly.”

Sullivan and Doherty were asked about the continued challenge with back-ordered parts.

“It’s painful. I’m not going to lie,”

The owner of an independent shop at the conference told Doherty she’s experienced dealers not performing needed calibrations she has sublet to them, despite providing the service department with exactly what collision repair work had been done to the vehicles. Doherty said dealers are held to the same standards as independent shops in terms of GM’s shop certification, and “if we find out [needed calibration] is not happening, there’s clearly some communication that will happen.” Doherty was also asked about when the automaker describes a procedure as “required” versus “recommended.”

“You need stronger language, is that what you’re asking? We’ve heard that feedback,” Doherty said, saying she is working with the GM engineering team about such language, and that GM “understands the position it puts you in.”

“We’ve seen a back-order decrease of about 30% since the beginning of the year.”

KELLI DOHERTY INDEPENDENT AFTERMARKET COLLISION MANAGER, GM

Cole Strandberg

The Benefits of Bringing More Services In-House for Auto Body Shops

Body shops have always focused on repairing vehicles after an accident, but there are many other services they could provide to increase revenue and profits and improve customer satisfaction. One way to expand their offerings is by bringing in-house some services they currently outsource, such as ADAS calibration,

and training for technicians. Body shops will also need to ensure that they have the necessary processes in place to manage these services, including developing new workflows for ADAS calibration, training staff on new processes, and developing pricing strategies for these services.

This, for the time being, is optional

wraps, ceramic and protective coatings, performance upgrades and more. These services can provide customers with the ability to personalize their vehicles and make them stand out from the crowd.

There are several benefits to adding a customization component to a collision business. Firstly, it can provide an additional source of revenue and profitability for the body shop. This can help to diversify the business and reduce its dependence on collision repairs.

Secondly, offering customization can improve customer satisfaction, build loyalty, generate repeat business and meet the needs of a wider range of customers. Additionally, offering customization can provide a competitive advantage over other repair-only body shops.

Thirdly, offering customization can help to attract new customers. By promoting these services, the body shop can attract people who are looking for things beyond repair and

give clients more excuses to walk into your building. As an added benefit, customers for these services tend to be in a bit of a better mood and more willing to spend on non-insurance, more profitable work.

Bringing things like ADAS calibration, alignment and customization services in-house can provide numerous benefits for body shops. By investing in the necessary equipment, training and processes, body shops can offer a more complete and efficient repair service to their customers while also increasing profitable revenue and improving customer satisfaction. It is important for body shops to evaluate their current offerings and consider the potential benefits of expanding their services to include these in-house options. With the right investment and approach, body shops can differentiate themselves from the competition and position themselves for long-term growth and success.

alignment and customization services. As an added benefit, most of these services have high margins and tend to be “easier” than the bulk of collision repair work. Plenty of shops are doing these things inhouse. Should you?

ADAS Calibration

Advanced Driver Assistance Systems (ADAS) have become increasingly common in modern vehicles. These systems use cameras, radar and other sensors to assist drivers with tasks such as lane departure warning, automatic emergency braking and adaptive cruise control. However, if these systems are not calibrated correctly after a collision repair, they may not function properly. This can compromise the safety of the vehicle and its occupants.

By bringing ADAS calibration inhouse, body shops can ensure they are providing a complete and safe repair service to their customers. This can also help to reduce the time and cost associated with outsourcing these services. Additionally, having inhouse ADAS calibration capabilities can provide a competitive advantage over other body shops that do not offer these services.

To bring ADAS calibration inhouse, body shops will need to invest in the necessary equipment and training. This may include ADAS calibration tools, software

for many OEM certifications. As evolution in vehicle safety systems continues to advance, it won’t be. Get ahead of the curve with this one.

Alignment

Proper wheel alignment is critical for vehicle handling, fuel economy and tire wear. After a collision repair, it is essential to check the wheel alignment and make any necessary adjustments. However, if the body shop outsources this service, it can add time and cost to the repair process.

By bringing alignment in-house, body shops can provide a complete and efficient repair service while reducing turnaround time and cost. It can also provide a competitive advantage over other shops.

To bring alignment in-house, body shops will need to invest in the necessary equipment, such as alignment machines and lifts, as well as training for technicians.

Oh, and did I mention alignments are among the most profitable services body shops can offer?

Customization

In addition to collision repairs, there are many other services body shops can provide to customers. One area often overlooked is customization and accessories.

Customization services can include a wide range of options, such as aftermarket wheels, vinyl

Credit: Shutterstock

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CONTROLVEHICLEEMISSIONINFORMATION

Fuel: Gasoline

2200KG(4894LBS)

Conformstoregulations: 2015

Californiaclass/stds: PC/ULEVqualified

U.S.EPAclass/stds: LDV/TIER2

Group: FGMXV01.80111.2L Evap:SFI/HO2S/TWCFGMXR0095805

Thecombinedweightofoccupantsandcargoshouldneverexceed352kgor776lbs.

Conformstoregulations:2016MY

VEHICLEEMISSIONCONTROLINFORMATION

U.S.EPA:T2B4 LDV

VEHICLEEMISSIONCONTROLINFORMATION

Conformstoregulations:2016MY Not for sale in states with California emissions standards.

U.S.EPA:T2B4 LDV

FEDOBDII

TWC/HO2S/WR-HO2S/CAC/TC/DFI

2.3L-Group:GFMXV02.3VJW Evap:GFMXR0125NBV

Fuel:Gasoline ABZ

Noadjustmentsneeded.

FEDOBDII

TWC/HO2S/WR-HO2S/CAC/TC/DFI

Fuel:Gasoline ABZ

California: Not for sale in states with California emissions standards.

Noadjustmentsneeded.

2.3L-Group:GFMXV02.3VJW Evap:GFMXR0125NBV

Everyone in Collision Repair Process Plays a Part in Solving Problems With Supplements

By John Yoswick Autobody News

Virginia shop owner Barry Dorn said he doesn’t see “who is winning” as the time involved with processing supplements grows.

“My concern is that we all lose that trust with that customer,” Dorn said, during a panel discussion on supplements during this spring’s Collision Industry Conference (CIC). “They see a $1,000 photo estimate turn into a $20,000 blueprint. The trust is lost. The customer knows somebody is lying to them. They just don’t know who.”

He said it’s also hard on frontline employees---both at shops and insurance companies—who have to “go through this frustrating, laborious process,” and might question if it’s something they really want to continue to do, at a time when there’s already a labor shortage.

supplement, the vast majority had two supplements, and some had three or more supplements,” Amberson said, noting about three-quarters of the 100 jobs were non-DRP. “The average response time, from the time we submitted the first supplement, to when we got the response from the insurer, was 4.2 days. When you looked at the DRP jobs, those were obviously much lower because we get almost immediate response. Those were less than one day.”

But one of the larger insurers had average response time of more than six days, and another more than eight days.

“And I’m not talking about resolution. I’m just talking about a response,” Amberson said. “This is detrimental to all of us, including the insurer. My question is: How long is it going to take the insurers to figure this out so they can get response times down? Those of us who have been around a while recall a time when non-DRP response times were far less than that.”

Andrew Batenhorst of Pacific BMW Collision Center in Glendale, CA, said his shop also measures insurer response time.

Wright said the pandemic may have sped up insurers’ move toward “no-touch” or “low-touch” claims processing, but that transition started at least a decade ago in an effort to reduce claims processing costs.

“That’s measurable to the guys in the ivory tower,” Wright said. “They can’t control severity. Severity is biproduct of the technology we have today and the complexity of the car. So what’s important to the insurance executives, is controlling [claims processing] costs. That means finding a way to handle claims faster—not necessarily better, but faster. Unfortunately it’s caused this [supplement] dilemma we have that’s gotten worse.”

“We’re caught in the middle most times on the supplement process,” he said. “We don’t get paid in general to write supplements. When we have to come back, that’s a cost. It’s factored into our cost of doing business, but when there’s not documentation, or if we can’t find the vehicle or there’s nobody there to walk through the vehicle with us, we almost have to start over.”

Documentation Should Help

Aaron Schulenburg of the Society of Collision Repair Specialists agreed shops that aren’t providing adequate photos, OEM procedures and other documentation to support the supplements they submit need to start doing that.

“It’s almost cruel and unusual punishment,” concurred Mike Giarrizzo, CEO of DCR Systems, which operates eight collision repair shops under partnerships with dealers. He said his company explains to customers what to expect.

“We tell them we’re going to provide their insurer with every bit of evidence and documentation necessary to fix the vehicle correctly,” he said. “We’re going to go out of our way to provide any information that their insurer needs, and convey what needs to be done and why. But we can’t control the way they respond to that.”

Cycle Time Impact

Darrell Amberson of LaMettry’s Collision in Minnesota pointed to the cycle time ramifications of getting supplements approved. He said his company looked at 25 insurance jobs from each of four of the company’s locations.

“Virtually all of them got one

“And I have a conversation with the local [claims] managers about how they’re doing,” Batenhorst said. “If we get measured all the time on [key performance indicators], I like to flip the table back on them, and a lot of them are really surprised by what we show them. Having that open conversation can make a difference. Not every carrier is going to be open to that. But one by one, if you start opening up a dialogue, and you realize there’s a way to talk about these things, you can make a difference. They have different metrics than we do, obviously, but we all need to figure this out together.”

The Insurer View

Two of the panelists representing the insurance industry during the CIC discussion shared their perspectives on what could improve the supplement process. Consultant Roger Wright, a former vice president of claims at AIG, sees a role for the automakers.

“We really need the OEs to help clarify some of the procedures they have,” Wright said. “They just don’t make sense to insurance companies, and that’s why they’re so resistant sometimes to paying for certain things.”

Wright said while many shops are doing better at blueprinting and documentation, much of the industry still isn’t, also contributing to supplement processing issues. Phil Langley, vice president of client services for SCA Claim Services, agreed.

“But a big part of the problem is that if the repair industry does a better job of meeting those expectations, there should be a change in outcome,” Schulenburg said. “I think where the frustration rises is there are so many shops who have prioritized doing exactly that, and are doing it very well, and instead face almost a more difficult challenge” in getting supplements approved.

Shop owner Dorn agreed shops should provide good documentation supporting the supplements they submit.

“But I think that needs to be a twoway street when there’s a denial,” Dorn suggested. “If we have to fully document why we are doing something, I think the other industry stakeholders need to document why they’re not [paying for] it.”

Dorn said he sees the industry at a turning point in terms of supplements.

“I can guarantee you that already today—it’s what, about 11 o’clock— we’ve probably already had 100 shop visits where someone from our company shows up and no one is there to even show us where the vehicle is,” Langley said. “If we could work on that, that would be a good first step.”

He said after working with hundreds of insurance companies and thousands of shops, each with their own processes, some standardization across the industry would help.

Credit: Shutterstock

“We can’t continue to go down this path,” he said. “Fundamental change has to happen. We have to get away from the archaic ways that we’ve been doing things for 30 years. Everyone is frustrated. No one is winning. No one is happy about this. So let’s agree we have to change the process.”

Mike Giarrizzo of DCR Systems said making shop employees negotiate through the supplement process has become “almost cruel and unusual punishment.”

Phil Langley of SCA Claim Services said more standardization in how shops and insurers handle supplements would be a positive step

“We have to get away from the archaic ways that we’ve been doing things for 30 years.”

— BARRY DORN

OWNER, DORN’S BODY & PAINT

Hyundai Donates $50,000 To Savannah, GA, Organizations

Hyundai Motor America announced a new partnership with Savannah State University, and the continuation of its partnership with Memorial Health Dwaine & Cynthia Willett Children’s Hospital of Savannah and Safe Kids Savannah.

As Hyundai expands its presence in Georgia, the company seeks to invest back into the community by supporting organizations doing important work in the fields of education and safety. Ceremonial checks were presented to the two organizations in Georgia.

“Hyundai is committed to progress for humanity and improving the wellbeing of society, which includes supporting today’s youth to prepare for a better tomorrow,” said Brandon Ramirez, director, corporate social responsibility and external relations, Hyundai Motor America. “We are proud to partner with Savannah State University to provide STEM scholarships and to expand our partnership with Children’s Hospital of Savannah and Safe Kids Savannah in the areas of child passenger safety and driver education—two respected institutions that are also dedicated

to children and young people in our community.”

The donation to Savannah State University will help provide scholarships to undergraduate students in the science, technology, engineering and math (STEM) fields. Additionally, the funds will be used to provide STEM camps to children to help expose more young minds to these areas of study and promote more diversity in these careers

“Savannah State University is excited about our partnership with Hyundai,” said Cynthia Robinson Alexander, president, Savannah State University. “This ongoing collaboration will allow us to better serve our students and our community. We know this is the first of many great initiatives and look forward to working together to have a lasting impact on our region.”

The continued partnership with the Children’s Hospital of Savannah and Safe Kids Savannah is part of Hyundai’s corporate social responsibility initiative, Hyundai Hope. The donation will help provide for additional consumer educational events, including child passenger safety and driver education

programs.

Safe Kids Savannah is a local coalition of organizations and concerned individuals with the common goal of preventing accidental childhood injuries and deaths. Children’s Hospital of Savannah and Safe Kids Savannah will host car seat safety check events, where certified technicians will inspect car seats for proper fit and installation, and check for any expiration or manufacturer recalls. Families will also receive free replacement car seats if needed.

“As the sponsoring agency for Safe Kids Savannah, we are thrilled to partner with Hyundai Hope to help advance our car seat safety program,” said Heather Newsome, assistant chief nursing officer, Memorial Health Dwaine & Cynthia Willett Children’s Hospital of Savannah. “This donation allows us to help parents who otherwise would not have access to an appropriate car seat for their children. Our goal at the Children’s Hospital of Savannah is to help improve safety for all children.”

Source: Hyundai Motor America

Stealing Identity

In all, the loss resulting from Cruz’s crimes totaled at least $34,514.87.

Cruz is scheduled to be sentenced Aug. 31. He faces a mandatory minimum sentence of two consecutive years in prison for aggravated identity theft, and a maximum penalty of 20 years in prison for wire fraud.

Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account sentencing guidelines and other statutory factors.

Jessica D. Aber , U.S. attorney for the Eastern District of Virginia, and Kyo M. Dolan , special agent in charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after Senior U.S. Magistrate Judge Summer L. Speight accepted the plea.

Assistant U.S. Attorney Shea Gibbons is prosecuting the case.

Ource: U.S. Attorney’s Office Eastern District of Virginia

Midwest Collision Repair Trade Show Hosts Successful Second Annual Event

By Cole Strandberg Autobody News

The Midwest Collision Repair Trade Show was held May 19-20 in Kansas City, MO. Despite being only in its second year, the event expanded its trade show floor and attracted top industry speakers and regional shop operators.

Hosted by several auto body associations, including the Missouri Auto Body Association,

with a trade show featuring vendors from around the country.

Gina Cotton , executive director of the Nebraska and Missouri auto body associations and show coordinator, expressed her appreciation for the warm welcome from Kansas City and the sponsors.

“It has been amazing,” Cotton said. “We are so appreciative of Kansas City for welcoming us and I’m so appreciative of all the sponsors.”

Kansas Auto Body Association, Nebraska Auto Body Association (NABA), South Dakota Auto Body Association and the Iowa Collision Repair Association (ICRA), the show offered valuable insights and information over the course of two days.

The energetic weekend started May 19 with Mike Anderson’s “Be Extraordinary” presentation, setting a positive tone. Panels covering various topics such as EVs, estimating technology, marketing and culture received favorable feedback from both attendees and vendors. Renowned speakers and panelists included Dirk Fuchs from I-CAR, Jake Rodenroth from Lucid Motors, Rod Cahoy from PPG, Dan Risley from CCC, Danny Gredinberg from DEG, Casey Lund from Collision Leaders (formerly Warrensburg Collision), Mark Claypool from Optima Automotive and more. The first day concluded

Day Two continued May 20 with breakout sessions and an open trade show floor throughout the day. During lunchtime, attendees enjoyed a keynote speech by Dan Meers , also known as “KC Wolf,” the beloved mascot of the local Super Bowl Champion Kansas City Chiefs. Attendees also savored local BBQ from the renowned Kansas City Jack Stack BBQ.

The show wrapped up with a panel, “There is Nothing Without the Right Culture,” moderated by Frank Terlep from Opus IV. Panelists included Lirel Holt from Powered By U, Lund, Anderson, Ron Reichen from Precision Collision Centers, and Dillon Lapp from Twin River Body Shops.

“Hopefully, we’ll see you at our 2024 Midwest Trade Show!” said Cotton.

Static Solutions: Eric Renken at the Static Solutions booth.

Mike Anderson of Collision Advice presented “Be Extraordinary.”

A panel discussion, “There is Nothing Without the Right Culture,” featured, left to right: moderator Frank Terlep of Opus IV, panelists Mike Anderson of Collision Advice, Lirel Holt of Powered by U, Ron Reichen of Precision Collision Centers, Casey Lund of Collision Leaders, and Dillon Lapp of Twin Rivers Body Shop.

David Gomez at the Start2Finish booth.

Keynote speaker Dan Meers, aka the Kansas City Chiefs’ mascot, “K.C. Wolf,” on the main stage.

Jeremy Baines, left, and Lori Handke, right, at the Car-Part.com booth.

Terry Ticell, left, and Tom McFinch, right, both of I-CAR, in front of the FOCUS Investment Banking Booth.

Mike Anderson, left, and Mark Claypool, right, at the Optima Worldwide booth.

Please contact these dealers for your Honda or Acura Genuine parts needs.

Carlock Honda

Birmingham

800-987-0819

205-949-5457

Dept Hours: M-F 8-6 robert thompson@carlockcars com

AutoNation Honda

Clearwater

Clearwater

888-205-2564

727-530-1173

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

AutoNation Honda Hollywood Hollywood

800-542-8121

954-964-8300

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

Classic Honda

Orlando

888-893-4984

407-521-1115

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

Headquarter Honda

Clermont

800-497-2294

407-395-7374

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

ACURA

FLORIDA

Acura of Orange Park Jacksonville

888-941-7278

904-777-1008

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

Duval Acura

Jacksonville

800-352-2872

904-725-1149

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

Hendrick Honda

Pompano Beach

Pompano Beach

954-425-8244

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

Holler Honda

Orlando

407-442-1938

Dept Hours: M-F 7-6; Sat 7-4 parts@hollerhonda com

Rick Case Honda

Davie

877-544-2249

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

South Motors Honda

Miami

888-418-3513

305-256-2240

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

Carey Paul Honda

Snellville

770-985-1444

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

Ed Voyles Honda

Marietta

800-334-3719

770-933-5870 Direct

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

FLORIDA

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

Gerald Jones Honda

Augusta

800-733-2210

706-228-7040

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

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

Apple Tree Honda Asheville

800-476-9411

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

Breakaway Honda Greenville

800-849-5056

864-234-6481

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

Piedmont Honda Anderson

800-849-5057

864-375-2082

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

Karen Radley Acura Woodbridge

800-355-2818

703-550-0205

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

GEORGIA

SO. CAROLINA

ALABAMA

FLORIDA

GEORGIA

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 is an online ordering portal for repair facilities to order parts directly from the Honda/Acura Dealer(s) of their choice.

TENNESSEE VIRGINIA

VIRGINIA

Auto Body Shop Owners Decide Where to Focus Attention, Resources in Near Future

By John Yoswick Autobody News

An article published in the June 2023 issue of Autobody News asked a half dozen shop owners to reflect on a recent change they had made in their business and how it worked out.

Now, some of those same shop owners—and others—look ahead rather than back, sharing what challenges they see and where they will be focusing added resources in the next year or two.

Melanie Allan of Craftsman Collision in Long Beach, CA, said she’s a little concerned about the impact of a recession, if one occurs.

“The number of $1,000 deductibles that I’m seeing is just off the charts,” she said. “It used to be $250 and $500. Now everybody seems to have $1,000 deductibles, and that’s a big chunk of money. We just fix regular cars, Corollas and Accords. There’s not a lot of affluence around here. So I’m concerned that people will not keep going on a claim when they realize they have a $1,000 deductible.”

Walker’s Auto Body in Concord, CA, said her shop is also gearing up to repair Rivian’s electric vans.

“We’ve been working on electric transit buses for a long time, and haven’t had any issues, but we are getting a little bit nervous about bringing in the Rivian vans,” Walker said. “I really have to brush up on the safety part of it: Where are we going to store these vans when sitting idle? There’s lots of stories out there.”

Another potential focal point Walker mentioned: “I’m probably going to be working toward selling my shop in the next three years,” she said. “I’ve been doing this for 35 years. But I also don’t want to just walk away from the industry, because I feel I have so much information I can share.”

purchased,” Hamm said. “The guy and and his father worked there, and they were just done. I bought it from him, and he actually became an estimator for me. We’ll be able to grab more work from a neighboring town.”

Hamm said he’ll also be focused on getting more OEM certifications and streamlining processes.

“I’ve also been thinking about shifting to a four-day work week,” he said. “That way people have more of a balance between work and home, and I think it will help us keep our guys and get more people to jump on board. I’m kicking that around to

see how I can implement it.”

Repair Quality

Second-generation shop owner Tiffany Silva of Accurate Auto Body in Richmond, CA, said her company is staying focused on proper, safe repairs.

“We just brought on AirPro Diagnostics,” she said. “We have multiple scanners here and we preand post-repair scan every car, but I just pre-scanned a car and the [aftermarket] scanner didn’t catch there was a blown airbag. How frustrating is that?”

She said the shop holds some OEM certifications.

“But I’m letting go a lot of the OE ‘recognition’ and sticking with just the ‘certifications,’ the ones that have brought value to me,” she said.

She’s investing in ongoing technician training, noting she’d just flown two techs for training by Equip Automotive Systems.

“It was $7,500 for two days, but I’m reassured they are doing a safe, proper repair when it comes to replacing a quarter-panel as the OEMs want, with the OEM procedures,” she said.

She said Yelp and Google reviews now have a “massive” impact.

“So we do whatever we can for customers. We’re bending over backwards for customers right now, more than ever,” she said. “We have to keep that up.”

In Slidell, LA, Frank Rinaudo of Frank’s Accurate Body Shop also said Google reviews are a main focus.

“I think there was a time when customers trusted that if their insurance company said, ‘Go here,’ they did that,” Rinaudo said. “Now they do their own research. We monitor why they came to us, and Google reviews are the No. 1 thing.”

He said his shop is non-DRP but has nine OEM certifications.

“We’re heavily pursuing that, particularly in the electric vehicle arena,” he said. “We’re onboarding with Rivian, Lucid and Mercedes currently. So marketing, certifications and training are the three big focuses.”

EVs, Customer Co-Pays

Like Rinaudo, Gigi Walker of

Tom Ricci, owner of Body & Paint Center in Hudson, MA, said with most insurers in his market paying labor rates of $43 or less, he’s considering whether to start collecting more from customers.

“There seems to be a wave going on of people getting off all the programs and starting to do a copay just like with medical and dental insurance,” Ricci said. “We’re faced with that. How many customers will we lose? And can we afford not to? I think the numbers are going to drive me there. We just can’t do it for this rate any more. That to me is the next big hurdle. I’ve heard a lot of people say you don’t lose that many customers, but I’m not sure how warmly it will be received.”

A New Location

Keith Hamm, owner of AutoCraft Collision, a 10-employee, 11,000-square-foot shop in Paso Robles, CA, said he’s currently focused on the opening of a second location.

“It was an existing shop in a great location, about 20 miles away in a neighboring town, that we

Shop owners are looking at how to tackle the biggest issues facing the collision repair industry today.

“We monitor why [customers] came to us, and Google reviews are the No. 1 thing.”

— FRANK RINAUDO OWNER, FRANK’S ACCURATE BODY SHOP

Wren’s Collision Group Acquires 2-Location

Atlanta MSO

Wren’s Collision Group, a privately-owned collision repair MSO, announced June 5 it acquired Brian’s Paint and Body, a two-location MSO in the metro Atlanta market, expanding its total number of locations to 13.

During the sale of Brian’s Paint and Body, the utmost priority for Brian Trevena was ensuring the continued well-being of his team and customers, preferably through a family-run organization. This requirement was met by Wren’s Collision Group.

Widely acknowledged by consumers and the collision repair industry as one of the leading privately-owned auto body repair companies in the southeast, Wren’s Collision Group is renowned for its commitment to delivering exceptional customer satisfaction while maintaining cost and operational consistency. The company takes great pride in fostering long-term local relationships and providing benefits to insurance partners. With a reputation for outstanding cycle times, consistent and efficient

vehicle repairs, and a focus on toplevel customer care and teammate satisfaction, Wren’s Collision Group stands out in its field.

Owners James and Phil Wren emphasized, “Our family-owned business takes immense pride in serving our communities, partners and team. Across our 13 locations, we employ nearly 200 driven professionals. With recent investments in our infrastructure, we believe we are well-positioned to support the ever-emerging changes occurring within our industry.”

James Wren, who is also the CEO, added, “One of the most rewarding aspects of our growth is witnessing our team members embrace the challenges and opportunities that come with organizational expansion. We are committed to providing our employees with a meaningful career, not just a job.”

Wren’s Collision Group will continue its pursuit of high-quality locations to expand its presence within the Southeast.

Source: Wren’s Collision Group

Federal Right To Repair Legislation Receives Landslide of Support

Auto Care Association, MEMA Aftermarket Suppliers, CAR Coalition and SEMA are applauding a new group of bipartisan cosponsors of the REPAIR Act (H.R. 906), which will ensure choice, fairness and safety in the vehicle repair market.

Originally introduced by the bipartisan team of U.S. Reps. Neal Dunn, R-FL, Brendan Boyle, D-PA, Warren Davidson, R-OH, and Marie Gluesenkamp Perez, D-WA, eight additional members signed on quickly in support of the REPAIR Act in April.

In May, an additional 16 members of Congress have now signed on to the REPAIR Act, bringing the total to 28 supporters of drivers’ right to choose where they get their vehicle maintained and repaired. The new representatives include:

• U.S. Rep. Donald G. Davis, D-NC

• U.S. Rep. John H. Rutherford, R-FL

• U.S. Rep. Jay Obernolte, R-CA

• U.S. Rep. Chellie Pingree, D-ME

• U.S. Rep. Mark E. Amodei, R-NV

• VU.S. Rep. Bill Posey, R-FL

• U.S. Rep. Chris Pappas, D-NH

• U.S. Rep. Salud O. Carbajal, D-CA

• Resident Commissioner Jenniffer González-Colón, R-PR

• U.S. Rep. Zachary Nunn, R-IA

• U.S. Rep. Jim Banks, R-IN

• U.S. Rep. Glenn Grothman, R-WI

• U.S. Rep. Gabe Vasquez, D-NM

• U.S. Rep. Josh Gottheimer, D-NJ

• U.S. Rep. Christopher H. Smith, R-NJ

• U.S. Rep. Dina Titus, D-NV             Bipartisan support of the bill continues to grow. The REPAIR Act is the only bill that addresses vehicle maintenance and repair restrictions, including heavy duty vehicles the U.S. economy depends on for freight transport. Automotive aftermarket companies can urge legislators in their district to also co-sponsor the bill by visiting repairact.com.

Source: Auto Care Association

The New Fusor 800HD Plus Series

Proven for over 40 years, Fusor aftermarket collision repair adhesives return vehicles to pre-accident condition. Whether used in panel, weld, and rivet bonding; finishing or cosmetic repair; or seam sealing and sound control—Fusor duplicates OEM appearance on a varitey of applications - making vehicles look new again. www.fusor.com

Inaugural Episode of Webinar Series Looks At IIHS’ Study of Issues Reported With ADAS Repairs

By Abby Andrews Autobody News

AirPro Diagnostics’ new webinar series, TechTalk 360, hosted its firstever episode May 17, “Consumer Experiences with Crash Avoidance Feature Repairs,” presented by David Zuby, executive vice president and chief research officer for the Insurance Institute for Highway Safety (IIHS.)

A full replay of the presentation is available on AirPro Diagnostics’ YouTube channel, at youtube.com/@ airprodiagnostics1282.

The webinars, co-hosted by Jordan Hendler and George Avery, will be presented every other month.

During the roughly one-hour webinar, Zuby discussed IIHS’ recent report on its survey of owners

repaired ADAS feature; 85% were the vehicle’s original owner. Most sought a repair of the feature due to a recall or service bulletin from the automaker, but one in five owners did so because the vehicle had collision damage. The least common reason to seek a repair was because the car displayed an error code.

Of the respondents, about two-thirds took their vehicle to a dealership service center. The rest either went to an independent repair shop or didn’t know.

Zuby said a majority of the respondents said the features were recalibrated as part of the repair, which he said is good news.

“We have heard a lot of windshield repairs and others aren’t getting the recalibrations required,” Zuby said. “So at least from this sample of owners’ perspectives, [recalibration] is by and large taking place.”

Since most of the vehicles owned by survey respondents were newer, they were covered by insurance or a warranty, and respondents were largely satisfied with how much they had to pay out of pocket for the repair.

“It just takes time for these new issues to be fully addressed.”

Zuby said there is a concern that if consumers continue to experience problems, there will be less interest in the technology, and car buyers as a whole will be less likely to purchase vehicles with those features.

“As a safety organization, we’d like to see more cars equipped with them,” Zuby said.

The IIHS will continue to study the reasons behind the high rate of postrepair issues.

of vehicles with repaired crash avoidance features, also known as Advanced Driver Assistance Systems (ADAS.)

Zuby said U.S. roadway deaths hit a low of about 32,000 in 2011, but since then, they have been steadily rising—increasing 32% over the next decade to about 43,000 deaths in 2021, the most recent year of data available.

The popularity of ADAS features is also increasing, Zuby said. Nearly half of the entire car parc on U.S. roads has a rearview camera at this point, while other features, like active lane centering, are still only available on a few new models.

“These features are important because [data] shows they are helping drivers avoid crashes,” Zuby said. “They work, so we want to make sure when they’re involved in a crash, they go back on the road working properly.”

However, the features also drive up the cost of repairs, requiring more labor for recalibrating and more expensive replacement parts.

“Mistakes in repairs are leading to a decrease in effectiveness,” Zuby said.

IIHS surveyed 500 people who owned vehicles, mostly from model years 2015-2021, with at least one

Significantly more respondents reported problems with the feature after it was repaired by an independent shop compared to a dealership service center. “That speaks to the lack of availability of repair information to independent repairers, which Right to Repair legislation would make more widely available,” Zuby said.

Post-repair issues were also more likely if the vehicle went to the shop for collision damage or a windshield replacement, as compared to a recall or service bulletin.

“That reflects that crash repairs have gotten complicated,” Zuby said. “The info needed to get it done is not fully available to all repairers yet.”

Zuby said those results surprised IIHS researchers.

“It speaks to fact the calibrations are complicated, and even when they’re being carried out, they’re not being done right,” he said. “Calibration instructions are often not clear, and they can change year to year, model to model within the same OE.

“It’s a cause for concern that the industry needs to pay more attention to making sure information about calibrations is not only clear, but also followed,” Zuby added.

Respondents also reported some features had to be repaired more than once---about a third had more than one repair, and about a third later needed a repair for a separate problem. But the repairs generally improved the feature’s performance, the survey showed.

“As the number of features on cars on the road is growing, it may lead to more repair issues initially, but over time, I think the problems people experience will decrease,” Zuby said.

As an example, he pointed to Ford’s introduction of an aluminum body on the F-150.

“The repair costs initially were higher and took longer [than for steel], but in the most recent update, there was no difference,” Zuby said.

“We suspect part of it is growing pains, but we also suspect we need to make repair info more readily available, to not just OE shops but also independent shops,” Zuby said.

“Self-diagnostics were the least common reason to seek repair; we also think the auto industry could do more to make systems capable of alerting when a repair is needed,” he added.

Zuby said automakers have an obligation to make repair processes as simple as possible, and insurers also have to understand what they’re insuring so they’re not pushing back against estimates.

“It’s a cause for concern that the industry needs to pay more attention to making sure information about calibrations is not only clear, but also followed.”

— DAVID ZUBY IIHS

“Se Habla Espanol ”

LG Energy Solution, Hyundai To Build EV Battery Plant in Georgia

By Maria Merano Teslarati

LG Energy Solution (LGES) and Hyundai are teaming up to build a battery cell manufacturing plant in Savannah, GA. Hyundai Motor Group and LGES signed a memorandum of understanding on May 26 in Seoul, Korea. Each company will hold a 50% stake in the joint venture for the U.S.-based battery plant. The companies plan to invest more than $4.3 billion in the battery facility. The parties agreed to produce EV batteries so Hyundai could accelerate its electrification efforts in North America. The battery plant would allow Hyundai EVs to qualify for the Inflation Reduction Act’s $7,500 tax credit.

“Hyundai Motor Group is focusing on its electrification efforts to secure a leadership position in the global auto industry. We will create a strong foundation to lead the global EV transition through establishing a new EV battery cell plant with LG Energy Solution, a leading global battery producer, and long-time partner,” said

Jaehoon Chang, president and CEO of Hyundai Motor Company.

Construction on the new battery facility is expected to start in the second half of 2023, with cell production slated to begin by the end of 2025. Hyundai and LGES aim for an annual production capacity of 30 GWh at the battery facility in Georgia, enough to support the production of 300,000 EVs annually. Hyundai Mobis will assemble battery packs using the cells from the plant in Georgia. After assembly, the battery packs will go to U.S. manufacturing facilities producing Hyundai, Kia and Genesis EV models. Hyundai aims to become one of the top three global automakers by 2030. The company is already preparing to achieve its goal by investing $18.1 billion in electric vehicle production.

The Asian automaker plans to increase its annual production run rate for EVs to 3.64 million globally by 2030. Hyundai will launch 31 EV models from its brands, including Kia and Genesis, to reach its goal. Most of Hyundai’s EV models will be available in all major markets.

Kia Recalls 100K Sportage SUVs For Possible Power Brake Failure

By David A. Wood CarComplaints.com

Nearly 100,000 Kia Sportage SUVs are recalled because they could lose their power brakes.

The recall involves 2023 Kia Sportage vehicles equipped with brake booster diaphragms that become misaligned which can cause internal vacuum leaks.

The SUV could lose its power brake assist which can cause extended stopping distances.

As a result of losing power brakes, the brake pedal will feel hard to press as a driver attempts to stop the Sportage.

In January, Kia determined a brake booster vacuum leak caused lean combustion diagnostic trouble codes.

Kia worked with the supplier to investigate the brake booster vacuum leak and discovered a gap in the brake booster shell which could allow the booster diaphragm to slip out of position.

Kia found 65 complaints from Sportage drivers who said their

brake pedals felt too hard, but there were no crash or injury reports.

Engineers studied the problem and determined the vehicle assembly process didn’t cause the problem, but misaligned brake booster diaphragms caused the hard brake pedals.

Kia went on to find 73 complaints of hard brake pedals due to brake booster failures between March 24, 2022, and May 5, 2023.

Kia Sportage brake booster recall letters will be mailed July 21. Kia dealerships will possibly replace the Sportage brake boosters.

Kia Sportage owners may call 800-333-4542 and ask about brake booster recall number SC272.

NC Woman Says Her Insurance Company Totaled Her SUV For ‘Minor’ Damage

A Charlotte, NC, resident told a local news station her 2016 Toyota Highlander wound up being declared a total loss by her insurance company, after the repair estimate on what looked like a minor scrape and dent came to $17,000.

Meghan Murray told WCNC Charlotte she was in a hurry in December 2022 when she accidentally scraped the right side of her SUV along a pole in her garage, damaging the rear door.

Murray said just before Christmas, she took the SUV to an auto body shop in the city’s NoDa neighborhood, where she was given an initial estimate of $5,000.

In January, she got a call from her insurance company,

informing her the estimate had ballooned to $17,000—more than 75% of the vehicle’s preaccident value, the threshold established by the North Carolina Department of Insurance.

WCNC Charlotte shared photos of the SUV outside the body shop, with its front and rear bumper covers removed, as well as several interior panels and the rear seats. The news report did not include the estimate itself.

“The only way for it to be drivable would be to go forward with the work and fix it because, at that point, it was completely taken apart,” Murray said. Murray advised other owners to do more research and find the “reasons behind a business getting one-star reviews.”

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Seat Belt Problems Cause Recall of 175,000 Ford Broncos

By David A. Wood CarComplaints.com

Ford Bronco front seat belt problems have caused a recall of more than 175,000 Broncos with five-door body styles.

The 2021-2023 Broncos have front seat belt latch plates which may be difficult to access from their stowed positions.

block unhindered access to the latch plate,” Ford said.

The government contacted Ford in May about a 2023 Bronco five-door vehicle that had problems with the front seat belt latch.

Ford said a Bronco occupant could “experience some dissatisfaction or be discouraged if they are unable to easily access the seat belt latch in its stowed position.

In addition to causing problems for drivers and their passengers, the seat belt problem also violates federal safety standards.

As of May 10, Ford is not aware of any warranty or field reports, or crashes or injuries related to the seat belt latch plates.

“The stowed position of the latch plate, as determined by the seat belt webbing sewn loop, is in a position that does not have enough space between the seat back and the interior trim to allow the test

Ford Bronco recall letters will be mailed June 30. Ford dealers will add a sliding clip latch stop to the driver and front passenger seat belts. Ford Bronco owners may call 866-436-7332 and ask about recall number 23C16.

Volkswagen ID.Buzz Headed To North America, Marking Return of an Icon

By Maria Merano Teslarati

Volkswagen officially launched the long wheelbase version of its all-electric ID.Buzz van coming to the U.S. and Canada, June 2 in Huntington Beach, CA, a wellknown surfing spot. The electric van is inspired by the company’s minibus transporter—the Bulli or T1 Transporter—from the 1950s.

Volkswagen vans were popular with surfers back in the day. Some might say the Volkswagen microbus is the precursor vehicle that inspired van life. “The original T1 was introduced in late 1949/early 1950, and with the help of some memorable Volkswagen advertising was becoming popular all over the world. The T1 was produced for around 17 years, so there were plenty of used, more affordable models around for surfers to travel in, live in and, more importantly, transport their surfboards, either inside or on top,” explained Andrew Burgess from Revolution Campers.

For the North American market, Volkswagen increased the wheelbase of the ID.Buzz to 127.5 inches—9.9 inches longer than the European version— providing room for a spacious third row for up to seven

new heat pump for increased efficiency in the winter. It also is available with a new 282 hp electric drive motor. The ID.Buzz coming to North America will have an 85 kWh battery pack.

Classic Collision Adds Location in State of GA

Classic Collision, LLC, announced a new closing June 2—the acquisition of Wright One Paint & Body in Augusta, GA.

seats. The German automaker believes the long wheelbase ID.Buzz is primed for the North American market. Meanwhile, in Europe, Volkswagen aims to keep customers on their toes by expanding the ID. Buzz’s “range of applications.” The long wheelbase ID.Buzz has a

As for features, Volkswagen equipped the ID.Buzz with a heads-up display, a nextgen infotainment system and remote parking with a smartphone. It also has a high-tech panoramic sunroof with smart glass, which can change from transparent to opaque via voice assistant or touch slider.

Volkswagen ID.Buzz vehicles bound for North America get a little extra love since they feature air-conditioned seats and an illuminated VW logo at the front. The German automaker plans to start delivering the first ID.Buzz units in the U.S. by 2024.

Wright One Paint & Body was a family owned and operated collision repair center. It has been serving the C.S.R.A and its surrounding counties for 15 years. The goal at Wright One is to be there for the customer throughout the entire process.

“Our mission at Wright One Paint and Body has been to provide high quality repairs with excellent level of customer satisfaction and whole heartily believe that Classic Collision will uphold our mission,” said Harold Wright, former owner.

“Wright One Paint & Body has been a top performer in our home state of Georgia, and we look forward to welcoming them to the Classic family as we continue to expand our footprint in Georgia where it all started,” said Toan Nguyen, CEO of Classic Collision.

Source: Classic Collision

Ford Expands Mobile Service Program

With increased demand for remote services, Ford announced it’s expanding its Mobile Service program to now include Escape SUVs, allowing customers at its smaller-volume dealers more convenient options for vehicle service. Ford is targeting to have nearly 1,000 Escape SUVs to be used as Mobile Service vehicles by year’s end, giving smaller-volume dealers a more affordable way to deliver Mobile Service and larger dealers a way to supplement their existing fleets. The Escape also frees up service bays at dealerships and gives customers more convenient choices on how and where they want vehicle service. Customer use of Ford remote services has increased 45% since Q4 of 2022.

“Adding the Escape to the mobile maintenance fleet now gives our smaller-volume dealers the ability to provide this convenient service to more customers,” said Todd Rabourn, North America regional CX director, experience implementation.

“These Escape vehicles are hitting the road to provide everything from software updates to light repairs, plus offering the ability to accelerate

how we resolve current recalls.”

Participation in Ford’s Mobile Service program is voluntary, and once enrolled, dealers can use a 22/23MY Escape they have in stock or order a unit. Exterior colors of Oxford White, Star White and Iconic Silver, along with a specialized wrap, will indicate the vehicle is a Mobile Service unit. All vehicles in the program must have embedded WiFi or have means for internet access.

Each Escape operating as a Mobile Service vehicle will be upfitted with a jumper cable charger, inverter and harness, and tools provided by the dealer. “We already have one mobile service van in operation, and it’s on the road constantly, doing light repairs and recall work,” said Carm Scarpace, dealer partner, Westfield Ford. “Adding an Escape to our fleet is really helping us serve customers faster and more efficiently on their terms.” Scarpace said providing mobile service has created a new culture within the dealership in how they approach customer experience. Their Escape mobile service unit is currently helping to resolve up to 10 recalls a day for customers.

Source: Ford

Ranger Design Expands Fleet Upfit Operations North Charleston, SC

Ranger Design, a leading manufacturer and service provider of innovative fleet upfit solutions and commercial van equipment, opened a new fleetupfitting and manufacturing facility in North Charleston, SC.

This new facility is Ranger Design’s third expansion in the past 10 years, adding to sites in Rochester, NY, Seattle, WA, and Montreal, Canada.

“Our geographic expansion into the southeast U.S. and the build-out of our fleet upfit solutions capabilities are a significant part of our overall growth plan. It positions us for new opportunities and enables us to better serve our current customers,” said Ron Cowie, president and CEO of Ranger Design.

This latest 62,000-square-foot facility will provide Ranger Design with additional warehousing capacity and will be a one-stopshop for resellers and fleet managers offering design, manufacturing and upfitting

services for commercial EV and ICE vehicles.

“This $1.5 million investment will allow our current distributor network to participate in local fleet projects that include installation, reporting and logistics. Also, it will enable us to better serve our North American MercedesBenz fleet customers, as well as providing an option for large fleet customers with regional needs,” added Cowie.

As a Tier 1 OEM supplier to Ford, Mercedes-Benz and Stellantis, with a network of more than 200 resellers across the U.S. and Canada, Ranger Design has become the trusted partner for fleets, OEMs and resellers with its turnkey solutions, unmatched customer support, fast delivery times and state-of-the-art logistics and installations.

Located on Sightline Drive in North Charleston, SC, the new facility is expected to be fully operational in October 2023.

Source: Ranger Design

Automakers

Being Pressured To Make Emergency Calling Tech Standard and Free

Most new cars come with built-in technology that can automatically call for help in an emergency and give the precise location of your vehicle, even if you are unable to call. This technology—known as automatic crash notification—has been in use in the U.S. since OnStar debuted in 1996.

This life-saving feature is now mandatory in all new cars sold in most of Europe. But in the U.S., it’s only optional, and it can cost a lot of money. In a recent investigation, Consumer Reports (CR) found most automakers still require a subscription fee that can be more than $100 a year to keep automatic crash notification active, and they’ll disable it if the fee’s not paid.

CR found 14 car brands do offer free automatic crash notification on at least some vehicles, while seven offer free trial periods of five years or longer. Two automakers—Tesla and Fiat—don’t offer this service at all in the U.S.

More than 700 lives could be saved each year if all new vehicles had this safety feature, according to a 2019 study from the National Highway Traffic

Safety Administration. Fifty-one percent of Americans say it’s either extremely or very important that their next vehicle has a system that will call emergency services when the airbags deploy, according to a new nationally representative survey conducted by CR in March.

To help save lives, CR is ramping up a new campaign to pressure automakers to make automatic crash notification come standard in all new vehicles, and keep it active for free.

More than 20,000 consumers signed a new CR petition in its first three days. It’s aimed at the automakers General Motors, Stellantis, Mitsubishi, Nissan, Subaru, Toyota and Tesla, which do not offer free automatic crash notification in all their models.

CR has raised this issue with the auto industry in the past, and one automaker says it made a difference. Hyundai recently announced it will include automatic crash notification free on new vehicles sold after 2024 as part of its BlueLink connected suite, and it noted CR’s advocacy played a role

in its decision.

“We believe providing these customer benefits at no cost is the right thing to do and is in alignment with our brand DNA over the years,” a spokesperson for the automaker said in a statement. “Consumer Reports’ information was one piece in our decision-making process.”

CR said it’s time for more automakers to make the same move.

“Automatic crash notification can save lives. It should come standard on all new cars, and remain active—and free—regardless of what happens with subscriptions for other connected services,” said William Wallace, CR’s associate director of safety policy.

Wallace noted automatic crash notification is often bundled with convenience features such as remote start, WiFi hotspots and concierge services. But CR’s engineers have found it would be easy for automakers to separate automatic crash notification and offer it free while still charging for other connectivity services.

“People injured in a crash shouldn’t have critical medical care

delayed because they choose not to pay for features like remote start or a mobile hot spot,” Wallace said. “It’s one thing for automakers to charge extra for conveniences, but this is about safety, and safety isn’t optional.”

It’s not just safety advocates who are calling for change.

“All cars should be required to have this feature, and nobody should pay for it,” said Dr. Eileen Bulger, a professor of surgery with University of Washington Medicine in Seattle who has researched the benefits of this feature on crash survival rates and presented those findings to the federal government.

“It’s a safety feature.”

Today’s new cars and trucks come with standard safety features that used to be optional for an extra charge, including seat belts and rearview cameras. Automatic crash notification is a proven safety feature that makes a real difference in saving lives. It’s time for automakers to make it available for all consumers in the U.S., just as many of them are already doing for consumers in most parts of Europe.

Source: Consumer Reports

NHTSA Proposes Automatic Emergency Braking Requirements For New Vehicles

The U.S. Department of Transportation’s National Highway Traffic Safety Administration on May 31 announced a Notice of Proposed Rulemaking that would require automatic emergency braking

The proposed rule is a key component of the Department’s National Roadway Safety Strategy, launched in January 2022 to address the national crisis in traffic fatalities and serious injuries. The

systems and features that help to prevent crashes.

The NRSS is complemented by unprecedented safety funding included in President Joe Biden’s Bipartisan Infrastructure Law, and in February, the department announced more than $800 million in grants to help communities carry out projects that can address highcrash areas. DOT also launched the next phase of the NRSS, its Call to Action campaign, and released a one-year progress report and accompanying data visualizations that highlight the extent and magnitude of the U.S. roadway safety problem.

the use of the technology to save even more lives. That’s why our proposed rule would require all cars to be able to stop and avoid contact with a vehicle in front of them up to 62 miles per hour. And the proposal would require pedestrian AEB, including requiring that AEB recognize and avoid pedestrians at night,” NHTSA Chief Counsel Ann Carlson said. “This proposed rule is a major safety advancement.”

If adopted as proposed, nearly all U.S. light vehicles (gross vehicle weight rating of 10,000 pounds or less) will be required to have AEB technology three years after the publication of a final rule.

and pedestrian AEB systems on passenger cars and light trucks. The proposed rule is expected to dramatically reduce crashes associated with pedestrians and rear-end crashes.

NHTSA projects this proposed rule, if finalized, would save at least 360 lives a year and reduce injuries by at least 24,000 annually. In addition, these AEB systems would result in significant reductions in property damage caused by rearend crashes. Many crashes would be avoided altogether, while others would be less destructive.

“Today, we take an important step forward to save lives and make our roadways safer for all Americans,” U.S. Transportation Secretary Pete Buttigieg said. “Just as lifesaving innovations from previous generations like seat belts and air bags have helped improve safety, requiring automatic emergency braking on cars and trucks would keep all of us safer on our roads.”

NRSS adopts the safe system approach and builds multiple layers of protection with safer roads, safer people, safer vehicles, safer speeds and better post-crash care. As part of the safe system approach, this rule highlights safer vehicles and USDOT’s effort to expand vehicle

An AEB system uses various sensor technologies and subsystems that work together to detect when the vehicle is close to crashing, and then automatically applies the vehicle brakes if the driver has not done so, or applies more braking force to supplement the driver’s braking as necessary to avoid or mitigate the severity of the crash.

“We’ve seen the benefits of the AEB system in some passenger vehicles already even at lower speeds, and we want to expand

This notice is a direct response to a provision in the Bipartisan Infrastructure Law to create a rule to establish minimum performance standards requiring that all passenger vehicles manufactured for sale in the U.S. be equipped with an AEB system. A Preliminary Regulatory Impact Analysis that presents the benefits and costs associated with the proposed rule also accompanies the NPRM.

S ource: NHTSA

Tesla Reportedly Tells Cybertruck Parts Suppliers To Expect 375K

Annual Production

By Joey Klender Teslarati

Tesla has told suppliers to prepare for Cybertruck production by stating it plans to build 375,000 units of the all-electric pickup every year, according to a new report.

call earlier this year.

The truck has amassed a significant number of pre-orders: nearly 1.5 million, according to a reservation tracker. With production nearing, Tesla has

Autel Debuts Remote XLink Programmer

terms of engineering and design

The Tesla Cybertruck was unveiled in November 2019 and has been delayed several times since, but the automaker has finally started making significant strides toward initial production. The first lines have already been built at Tesla Gigafactory Texas, which the company showed during its first quarter earnings

finally started communicating to suppliers regarding its plans for annual output, according to a report from Electrek.

Tesla has evidently called the Cybertruck program “Project Everest” and is already asking suppliers to meet a base production volume of 375,000 Cybertruck units per year, according to the report.

This is a significant figure for initial production, especially considering CEO Elon Musk has stated in the past on several occasions that the Cybertruck has been one of the most difficult vehicles to figure out in

Tesla is set to have initial release candidates for the Cybertruck ready by August, the report also said. Tesla has not officially released any details regarding the pickup’s first deliveries, only saying the pricing and other important details would be given at a delivery event sometime in the third quarter.

Tesla has brought forth new designs for the Cybertruck from its initial production prototypes unveiled in 2019 or later. The most recent Cybertrucks, seen at Investor Day earlier this year, were equipped with a variety of new features, including a new yoke steering wheel design.

Tesla has also finalized the design for the Cybertruck, which gives even more indication production is likely going to start soon. This has been confirmed by both Musk and Tesla’s Chief Vehicle Designer Franz von Holzhausen

Autel released the MaxiFLASH XLink, a 3-in-1 programming, communication and Remote Expert-ready touchscreen device.

With the 6.5-inch standalone XLink, technicians can use Autel’s widely-used Remote Expert platform to contract experienced programmers and diagnosticians with OE software subscriptions and tools to complete needed tasks.

The XLink enables technicians via the Remote Expert platform to obtain expert help and access to OE data remotely, a J2534 passthru programming capability allows techs to flash modules with a Windows PC and OE subscriptions onsite, and an enhanced VCI that supports the latest communication protocols and is compatible with all Autel MaxiSYS tablets.

The XLink’s standalone Remote Expert capabilities enable technicians to use the Remote Expert platform without tying down their MaxiSYS Ultra, MS919 or MS909 tablets.

Visit Autel.com to learn more about the MaxiFlash XLink.

Source: Autel

Auto Insurance Customer Satisfaction Plummets As Rates Continue To Surge

Nearly one-third (31%) of U.S. auto insurance customers say they experienced a rate increase during the past year, as the industry raises rates an average of 15.5% and insurers continue to fight the forces of record high loss ratios.

Auto insurers lost an average of 12 cents on every dollar of premium they collected in 2022—the worst performance in more than 20 years— leaving them few alternatives but to raise rates at the expense of customer satisfaction.

June 13, satisfaction with auto insurance has dropped 12 points (on a 1,000-point scale) year over year, the largest decline in the past 20 years. The decline is largely driven by lower satisfaction with the price customers pay for insurance, a factor that has declined 25 points this year.

This phenomenon is driving an increase in adoption of usage-based insurance (UBI) programs, which base the cost of a policy on a driver’s behaviors using telematics data. Customers new to an insurer have a

with auto insurers has plummeted this year, as insurers and drivers come face to face with the realities of the economy,” said Mark Garrett, director of insurance intelligence at J.D. Power. “While insurers are caught between a rock and a hard place when it comes to balancing profitability with customer experience, there are several ways they can blunt the negative effects of rising costs, such as proactively offering customers UBI alternatives, clearly signaling and explaining necessary rate increases and consistently delivering on brand promises to instill trust.”

Key Findings of the 2023 Study Surging rates topple customer satisfaction: Auto insurance price increases are three times higher than other categories tracked by the Consumer Price Index (15.5% vs. an average of 4.9%). Overall customer satisfaction with auto insurance providers is 822, down from 834 a year ago. The decline is driven by a 25-point decrease in customer satisfaction with the price of their policies.

of billing and payments. Among those customers who received a bill in the mail and paid in full via credit card, nearly half (45%) said they had a price increase, compared with more than one-fourth (28%) of those who received a digital bill and made automatic recurring installment payments.

Not all customers react the same: Some groups of customers had a more negative reaction to price increases, including those who either rent their residence or do not bundle their home and auto insurance; are single car/single driver households; are open to switching insurers; or those who have a lower perception of their insurer being trustworthy.

UBI sees record adoption: Participation in usage-based insurance programs has more than doubled since 2016, with 17% of auto insurance customers now participating in such programs. Price satisfaction among customers participating in these programs is 59 points higher on average than among non-participants.

According to the J.D. Power 2023 U.S. Auto Insurance Study, released

high UBI participation rate of 26%.

“Overall customer satisfaction

Price increases were likely more prevalent: More customers likely experienced increases but awareness is affected by the method and frequency

As UBI adoption gains, growing pains emerge: While more customers than ever have adopted UBI, the programs are still relatively new. Onethird (33%) of customers currently

Credit: Shutterstock

using UBI have been on the program for less than one year. Concerns over accuracy of data collected by UBI technologies has become a pain point, with just 38% of customers indicating that the information collected is “always accurate.”

Softening the blow of a price increase: While price increases are never good for customer satisfaction, notifying customers in advance through their preferred channel (e.g., phone call from their agent) and making the reason for the increase clear as well as discussing any options that may be available, such as UBI, can make a big difference in how they are perceived by customers. The amount of the price increase also affects customer satisfaction, with a 137-point difference in price satisfaction between those experiencing an increase of more than $300 vs. those experiencing an increase of $50 or less.

Highest-Ranking Insurers

The study measures customer satisfaction with auto insurance in 11 geographic regions. Highest-ranking auto insurers and scores, by region, are as follows:

California: Wawanesa (843) (for a fourth consecutive year)

Central: Shelter (851) (for a third consecutive year)

Florida: State Farm (833)

Mid-Atlantic: Erie Insurance (863) (for a second consecutive year)

New England: GEICO (836)

New York: New York Central Mutual (842) (for a second consecutive year)

North Central: Erie Insurance (844) (for a third consecutive year)

Northwest: The Hartford (836) (for a second consecutive year)

Southeast: Farm Bureau Insurance

-Tennessee (866) (for a 12th consecutive year)

Southwest: State Farm (835) (for a second consecutive year)

Texas: Auto Club of Southern California (AAA) (839)

Usage Based Insurance (UBI): GEICO (824), Progressive (824) and State Farm (824) in a tie

The 2023 U.S. Auto Insurance Study, now in its 24th year, examines customer satisfaction in five factors (in alphabetical order): billing process and policy information; claims; interaction; policy offerings; and price. The study is based on responses from 41,437 auto insurance customers and was fielded from January through April 2023. New this year, the study has introduced a national award category for UBI, along with diagnostics that influence UBI participants’ experience with insurers’ usage-based auto products.

Source: J.D. Power

Gas Prices Creep Higher As Drivers Fuel Up Ahead of Memorial Day

By Andrew Gross AAA

The seasonal surge in gasoline demand leading into the long holiday weekend resulted in the national average for a gallon of gas rising four cents since May 18 to $3.57 as of May 25.

AAA forecasts that Memorial Day road trips will be up 6% over last year, with more than 37 million Americans driving to their destinations.

“The rise in demand for gasoline is helping to push pump prices higher for now,” said Andrew Gross, AAA spokesperson. “But the increase is mitigated by the low cost of oil, which is wobbling around in the low $70s per barrel. Pump prices could stabilize or fall once this long weekend is in the rearview mirror.”

According to new data from the Energy Information Administration (EIA), gas demand increased from 8.91 to 9.43 million b/d over the same week. Rising demand has helped to

boost pump prices. Meanwhile, total domestic gasoline stocks decreased by 2 million bbl to 216.3 million bbl. If gas demand grows amid tighter supplies, drivers will likely see pump prices rise.

The May 25 national average of $3.55 is eight cents less than a month ago and $1.02 less than a year ago.

Since May 18, these 10 states have seen the largest increases in their averages: Wisconsin (+15 cents), Colorado (+12 cents), Indiana (+9 cents), New Jersey (+9 cents), Idaho (+9 cents), Montana (+8 cents), Connecticut (+8 cents), Maine (+7 cents), New Hampshire (+7 cents) and Michigan (+7 cents).

The nation’s top 10 most expensive markets: California ($4.81), Hawaii ($4.75), Washington ($4.63), Arizona ($4.58), Nevada ($4.24), Oregon ($4.20), Utah ($4.08), Illinois ($3.97), Alaska ($3.94) and Idaho ($3.83).

Source: AAA

for the part only, and any labor charge is the consumer’s responsibility.

*Kia Genuine replacement parts sold but not installed by an

Dealer are covered for

months from purchase date, regardless of mileage,

OSU & Wilberforce University Team Claims Top Spot in First Year of EcoCAR EV Challenge

The Ohio State (OSU) & Wilberforce University Team was named the winner of Year One of the EcoCAR Electric Vehicle (EV) Challenge, taking the lead in the four-year collegiate engineering competition. West Virginia University took second place and University of Alabama finished third in the judged competition, held May 21–26 in Orlando, FL.

Managed by Argonne National Laboratory and sponsored by the U.S. Department of Energy (DOE), General Motors and MathWorks, the EcoCAR EV Challenge is a crossdisciplinary competition among 15 North American universities designed to build an EV talent pipeline through cutting edge automotive engineering education and practical application.

Participating teams are tasked with complex, real-world technical EV challenges, including enhancing the propulsion system of a 2023 Cadillac LYRIQ to optimize energy efficiency while maintaining consumer expectations for performance and driving experience throughout the four-

year competition. Diversity, equity and inclusion are at the forefront of the EcoCAR EV Challenge, which promotes STEM to inspire the next generation of an EV workforce that is representative of all communities.

“Year One of EcoCAR is all about generating big ideas and developing a strategy for the remainder of the competition,” said Acting Assistant Secretary for Energy Efficiency and Renewable Energy Alejandro Moreno. “These students are already demonstrating the capacity and drive needed to pursue careers in the EV sector and become trailblazers in the mobility industry.”

While OSU has been in Advanced Vehicle Technology Competitions (AVTC) for more than two decades, this was the first time they chose to form a collaborative partnership with another school to compete in the program. Last fall, the team set out to establish a partnership with Wilberforce University (HBCU).

This presented unique challenges with integration between the two groups of students, but the team has now proven they can compete

successfully as one cohesive team. The team excelled across all judged categories in Year One, earning top three finishes for 12 of the precompetition deliverables, 10 of which were first place finishes. The team will take home $10,000 in prize money from industry sponsors.

In Year Two of the competition, each student team will receive a Cadillac LYRIQ, a next-generation battery electric vehicle (BEV) provided by GM. Teams will be tasked with reengineering the vehicle to add new energy efficient and customer-friendly features designed to address the decarbonization needs of the automotive industry.

“As a proud EcoCAR sponsor, we are honored to continue to provide the tools and training to help build the next generation of EV talent,” said Ken Morris, vice president, electric and autonomous vehicles at GM. “As this competition progresses, we look forward to seeing how the students incorporate their ideas from this year and put their skills to the test in reengineering their Cadillac LYRIQs. We congratulate

the Ohio State and Wilberforce team on their first-year win and are excited to see what the remainder of the competition has in store.”

“The team’s complex embedded system designs were impressive,” said Lauren Tabolinsky, global academic student programs manager at MathWorks. “We look forward to seeing the teams continue to use MATLAB and Simulink to build and simulate their EV designs throughout the duration of the multi-year competition.”

For more information about the EcoCAR EV Challenge, visit avtcseries.org.

Source: EcoCAR EV Challenge

The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today!

Stivers Decatur

Subaru

Decatur

(404) 248-1888

Fax (404) 425-5800

Mon.-Fri. 7:30-6; Sat. 9-5 dway@stiversonline.com www.stiverssubaru.com

Troncalli Subaru

Cumming

(770) 889-8951

Direct (678) 341-4220

Fax (678) 341-4221

www.troncallisubaru.com

Flow Subaru Winston-Salem

(800) 489-3534

(336) 725-3554

Fax

Jim Armstrong Subaru

Hickory

(888) 905-6135

(828) 322-9372 opt 5

Mon.-Fri. 8-5

parts@jimarmstrongsubaru.com www.jimarmstrongsubaru.com

Parkway Subaru Wilmington

(800) 424-9434

(910) 793-8710

Fax

Mon.-Fri. 7-6; Sat. 8-2

’re focused on getting you the Genuine Parts you need — fast and competitively priced. Put us to the test on your next Subaru repair or service job.

Mon.-Fri. 8-5; Sat. 8-1 subarupartsws@flowauto.com www.flowsubaru.com

GEORGIA

NO.

BendPak Opens New Global HQ

BendPak, Inc., a leading manufacturer of vehicle service equipment and specialty consumer products, purchased a new global headquarters in Agoura Hills, CA.

The 22,256-square-foot administrative building, built in 2012 for the Conrad N. Hilton Foundation, is situated on 12 acres in the foothills of the Santa Monica Mountains, just west of Los Angeles. BendPak expects to move from its current Santa Paula, CA, offices by the end of the summer.

The award-winning building is modern, environmentally sensitive, and energy-efficient. It earned LEED Platinum® certification, the highest level available for sustainable buildings from the U.S. Green Building Council.

The new headquarters will be home to client and customer service, engineering, product development, marketing, information technology, human resources, accounting and management.

State Farm Facing Class Action Lawsuit Over Luxury Vehicle Repairs

By Mika Pangilinan Insurance Business Magazine

State Farm has been hit with a class action lawsuit over allegations that it refused to cover the cost of repairs for luxury vehicles.

Filed in Broward County in Florida on May 18, the lawsuit stems from an incident involving Assaf and Ada Sasson, who owned an all-electric 2022 Porsche Taycan insured with State Farm for more than $100,000.

The Sassons’ vehicle was damaged in a May 2022 collision, which prompted them to seek repair services.

The vehicle was taken to a Porsche dealership and was then referred to a local Porschecertified collision shop. This referral was made to ensure the repairs were conducted according to the manufacturer’s specifications and to preserve the vehicle’s warranty, according to the lawsuit.

The recommended shop provided an estimate of

$8,360.87 for the necessary repairs that was allegedly rejected by State Farm.

Instead, the insurance giant created its own estimate of $6,267.03 for the damages, the lawsuit claimed, based on

and the actual costs of the repairs.

An initial breach of contract complaint was filed against State Farm in August 2022 with regards to this incident. However, lawyers said they discovered evidence suggesting State Farm has consistently failed to honor the policy requirements for determining collision benefits on high-value vehicles.

alternative labor hourly rates not representative of the prices charged by certified repair facilities.

According to the suit, State Farm offered to pay only its estimated amount, minus a $500 deductible. The Sassons were consequently forced to cover the difference between the estimate

ALABAMA

Audi Birmingham Irondale

205.986.7410

205.986.7438 Fax

M-F 7am-6pm; Sat 8am-4pm daniel.williford@audiofbirmingham.com www.audiofbirmingham.com

FLORIDA

Audi North Miami North Miami Beach

305.952.5960

305.944.4009 Fax

M-Sat 8am-6pm amartinez@audinorthmiami.com www.audinorthmiami.com

Audi West Palm Beach West Palm Beach

866.441.3309

561.615.4175

561.615.4179 Fax

M-F 7:30am-6pm parts@audiwpb.com

Working on this new information, the Sassons sought to amend their initial complaint and pursue a class action lawsuit, encompassing claims that date back to September 2018.

State Farm spokesperson Roszell Gadson declined to comment specifically on the case when approached by Law.com, stating “the filing of a lawsuit does not substantiate the allegations within the complaint.”

GEORGIA

Audi Gwinnett

Duluth

678.258.2535

770.476.9311 Fax

M-F 7:30am-6pm parts@audigwinnett.com www.audigwinnett.com

TENNESSEE

Audi Knoxville Knoxville

800-382-2787

865-691-3742

865-251-3227 Fax

M-F 7:30am-6pm; Sat 8am-2pm www.audiknoxville.com

brianmaillet@harperdealerships.com

Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers and are supported by a nationwide network of distribution centers to help ensure non-stocked parts are delivered the next day.

Source: BendPak

MA Senators Want Explanation from NHTSA on Right To Repair Position

U.S. Sens. Elizabeth Warren and Edward Markey , who both represent Massachusetts, on June 15 sent a letter to federal officials asking for an explanation of the letter sent earlier the same week to automakers, telling them not to comply with the state’s recently enacted Right to Repair law. The letter was addressed to U.S. Transportation Sec. Pete Buttigieg and National Highway Traffic Association (NHTSA) Deputy Administrator

Sophie Schulman

Warren and Markey said “NHTSA’s decision to give auto manufacturers a green light to ignore state law appears to favor Big Auto, undermine the will of Massachusetts voters and the Biden Administration’s competition policy, and raise questions about both the decision process and the substance of the decision by NHTSA’s leadership.

“We are asking NHTSA to explain its rationale for its

harmful actions and respect Massachusetts state law by reversing course,” the senators continued.

The letter pointed out that NHTSA had “ample opportunity” before the law took effect June 1 to raise preemption arguments through the judicial process, and even declined multiple requests from the judge to participate.

“Instead, NHTSA sent the June 13 letter with no warning, circumventing the legal process, contradicting a judicial order, undermining Massachusetts voters, harming competition and hurting consumers, and causing unnecessary confusion by raising this novel view two weeks after enforcement of the law began,” the senators wrote.

Quarter Page (no bleed) | 4˝ x 5˝

The senators said NHTSA’s position goes against the Biden administration’s policy to combat monopolies in repair markets.

NHTSA’s letter to automakers relies on the same argument used by the automakers themselves, the senators said: “an irresolvable conflict between maintaining data security and providing independent repair shops with the data they need to conduct repairs. Auto manufacturers have routinely raised safety concerns as a way to ‘change the subject’ and distract consumers from the fact that vehicle repair and maintenance services from independent repair shops keeps the cost of service and repair down.”

The senators said those safety concerns had already been addressed in a U.S. district court, which concluded they did not override Massachusetts’s right to enforce the law.

www.autobodynews.com

Congratulations to Brandon Eckenrode, newly named executive director of the Collision Repair Education Foundation (CREF).

While Eckenrode’s collision industry career began in 2002 in I-CAR’s marketing department, he joined the foundation’s team as associate director of development in 2009. As director of development from 2012 through 2021, Eckenrode was heavily involved with CREF’s successful growth through his management of various projects and events that helped the organization gain visibility within the industry and beyond.

For the past two years, he served as the foundation’s managing director, a role that has required him to “work closely with CREF’s Board of Trustees, staff and our partners to execute the organizational goals and strategic mission.”

His skill and passion have earned him the well-deserved promotion to executive director of the foundation. Eckenrode is honored by the opportunity to “lead the amazing CREF team.”

Source:

CREF

Orlando Volkswagen South Orlando

866-651-8873

407-581-0630

Fax: 407-581-0671

M-F 7:30am-6pm; Sat 7:30am-5pm rwright01@vtaig.com

Orlando Volkswagen North Orlando

321-214-3169

Fax: 407-644-9408

M-F 7:30am-6pm; Sat 7:30am-5pm spearce@vtaig.com

Jim Ellis Volkswagen Atlanta

800-653-5547

770-454-7711

Fax: 770-986-0001

M-Sat 7:30am-7pm vwwholesaleparts@jimellis.com

VIRGINIA

Checkered Flag Volkswagen

Virginia Beach

757-687-3465

Fax: 757-687-3514

M-F 8am-5pm volkswagenparts@checkeredflag.com

Auto Aftermarket Industry Outperforms Expectations, Growing 9.7% in 2022

The Auto Care Association and MEMA Aftermarket Suppliers, in partnership with S&P Global, have released the 2023 Joint Channel Forecast Model report, providing valuable insights and strategic guidance for the automotive aftermarket industry.

The annual report gives an indepth industry outlook with the latest and most reliable market projections, channel performance analysis and emerging trends.

This year’s report finds that despite the recent increase in economic strain for many Americans due to rising costs, the industry continues to show its reliability and ability to adapt across the service and retail sectors, continually adjusting to meet demand in an ever-dynamic market.

The 2023 Joint Channel Forecast Model finds that the automotive aftermarket grew 9.7% in 2022, outperforming expectations (previously forecast at 8.5%). With high inflation persisting, the industry is expected to grow an additional 8.1% in 2023 before settling to more modest—but still

substantial—growth rates that will continue to make the industry an attractive one for investors.

Key topics in the new report include:

Market size projections in billions of dollars through 2026, along with year-over-year percent change

Sales dollars and market share for the retail, service, and dealer channels

Key economic projections through 2026 such as GDP, consumer price index, and the CPI for Motor Vehicle Maintenance and Repair Forecasts for motor vehicle sales through 2026

Detailed factors influencing the growth in the aftermarket

“Consistency, reliability and adaptability—that’s what the motoring public have come to expect from the auto care industry over the years, but especially in more recent times with many Americans facing the very real rise in their cost of living,” said Bill Hanvey , president and CEO, Auto Care Association. “The latest

Joint Channel Forecast Model demonstrates this reality with the latest market figures surpassing expectations yet again.”

“The automotive aftermarket continues to prove that it can succeed on two fronts—the longstanding production and manufacturing that gives the aftermarket its strong foundation and the innovation and entrepreneurship that are required with the bourgeoning technology changes and opportunities in transportation,” said Paul McCarthy , president and CEO, MEMA Aftermarket Suppliers. “This year’s Joint Channel Forecast provides an impressive outlook for the aftermarket and underscores the value of investment in this industry.”

The auto care industry continues to show its reliability and ability to adapt across the service and retail sectors, continually adjusting to meet demand in an ever-dynamic market. While new vehicle inventory is being replenished as the supply chain pressures have eased somewhat across the industry, the vehicle

parc continues to age and increasing costs of both new and used vehicles continue to encourage owners to keep their vehicles longer. These factors have provided tailwinds to the automotive aftermarket as vehicle miles traveled have returned to pre-pandemic levels.

The full Joint Channel Forecast Model is intended to help provide further details about the factors influencing the growth of the auto care industry to help businesses make informed decisions, identify growth opportunities and optimize their market strategies.

The Joint Channel Forecast Model report is available to Auto Care Association and MEMA Aftermarket Suppliers members as a membership benefit.

Auto Care members can access the Joint Channel Forecast report in the 2024 Auto Care Factbook at digital.autocare. org/2024factbook. MEMA Aftermarket Suppliers can access the report at mema.org.

Source: Auto Care Association

Carolina

New-Vehicle Sales Incentives Climbed in May As Transaction Prices Increased Slightly

The average price Americans paid for a new vehicle in May remained below the manufacturer’s suggested retail price (MSRP) for the fifth consecutive month, according to data released June 12 by Kelley Blue Book, a Cox Automotive company.

The average transaction price (ATP) of a new vehicle in the U.S. increased in May to $48,528, a month-over-month increase of 0.5% ($251) from an upwardly revised April reading of $48,277.

New-vehicle transaction prices in May were up 3% ($1,393) compared to year-ago levels. The year-overyear increase in May of 3% was the smallest in 2023; in May 2022, newvehicle prices were up 13.5% year over year.

Meanwhile, auto manufacturers’ incentive spend in May rose to the highest level in the past year at 3.9% of the ATP, averaging $1,914. One year ago, average incentive spending was 2.5% of ATP.

In May, the average price consumers paid for a new vehicle fell to $410 below MSRP, or sticker price. For comparison, a year ago, the average ATP was $637 above MSRP. As lower prices and higher inventory levels likely drew in buyers, sales volumes in May were up month over month by 0.7% and up 22.1% year over year, higher than most forecasts and fed in part by a healthy dose of fleet deliveries.

“The modest new-vehicle price increase in May was offset by increased incentives, so many buyers were able to find deals below sticker,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “This is good news for consumers as manufacturers are seeing higher inventory and increased competition and need to push sales to keep inventory moving.”

Average Prices for Non-Luxury Vehicles Rise Slightly in May

The average price paid for a new non-luxury vehicle in May was $44,960, an increase of $158 compared to April. Year over year, non-luxury prices increased by 3.7%. The average non-luxury sticker price rose to $45,362 in May, so buyers paid below MSRP by $402. Several non-luxury brands--

-including Mazda, Alfa Romeo, Acura, Infiniti and Cadillac—saw ATP increases between 1% to 2.2% month over month in May. Ford and Kia showed the most price strength in the non-luxury market, transacting at more than 3% over sticker price in May.

Average Prices for Luxury Vehicles Rise in May but Remain Below $65,000

The average luxury buyer paid $64,396 for a new vehicle in May 2023, up $239 from April, and the second month in a row that transaction prices for luxury were

with the industry change. The ATP for EVs in May is down a noteworthy $9,370 (down 14%) compared to one year ago. New EV pricing peaked in June 2022 and has fallen more than $5,800 so far in 2023. EV incentives are trending higher.

“When it comes to EVs, automakers are trying to find a balance between pricing and profitability,” said Michelle Krebs, executive analyst at Cox Automotive. “EV sales in May are estimated to have increased by 4.7% compared to April and are up 44% year over year. This may be due

to a combination of tax credits and manufacturer incentives that are encouraging sales.”

Auto Incentives Offered by Manufacturers Continue Trending Upward as Supply Increases Incentives averaged $1,914 in May to reach the highest point in a year, increasing to 3.9% of the average transaction price compared to 3.5% in April. While May incentives increased by $229 month over month, they remain historically low.

For comparison, Kelley Blue Book estimates incentives averaged 7.3% of ATP in May 2021 and 9.9% in May 2019. The luxury car segment had the highest incentives in May 2023 at 7.7% of ATP. Meanwhile, vans had the lowest incentives at only 0.3% of ATP.

“Incentives are up to nearly 4% in May, a sign that automakers are trying to move vehicles,” said Rydzewski. “The majority of luxury brands have higher inventory levels than the current industry average, along with all the domestic nonluxury brands. As supply continues to increase, industry average incentives will keep increasing.”

Source: Kelley Blue Book

Credit: Shutterstock

below $65,000. Across key segments, luxury vehicle ATPs were a mixed bag in May, with high-end luxury cars and luxury full-size SUVs showing price declines between 0.5% and 1.6%. Entry-level luxury cars ATP remained stable. Luxury cars and luxury full-size SUVs saw price increases between 0.1% and 3.3%.

Strong luxury vehicle sales have been a primary reason for overall elevated new-vehicle prices. This trend continued in May, with the luxury vehicle share at 18.4% of total sales. However, luxury share is trending down after hitting a high of 19.5% in February 2023.

New Electric Vehicle Prices Down More Than $9,000 from One Year Ago

The initial estimate for the average price paid for a new electric vehicle (EV) in May is $55,488, mostly stable from last month and aligned

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Automakers Report May Sales Results

Automakers on June 1 released new-vehicle sales results for the month of May.

Kia

Fast-growing Kia America continued its hot streak as the brand posted total May sales of 71,497 units, marking the second-highest monthly sales total in company history and the 10th consecutive month of yearover-year sales increases.

May sales were up 23% over the same period last year, with several models posting double- and even triple-digit sales increases, including: Seltos (+171%); Stinger (+102%); Carnival (+80%); Soul (+45%); Telluride (+35%); Sportage (+24%) and Sorento (+13%).

May sales were driven by Kia’s lineup of SUVs, which increased 35% year-over-year and accounted for 74% of the brand’s total volume. The Sportage, Telluride and Seltos models also set best-ever May sales records, up 17%, 29% and

39%, respectively, over each model’s previous record-setting May performances set in 2021.

In addition, Seltos set an all-time monthly sales record with sales up 15% over the previous best-ever monthly sales performance set by the model in March 2021.

Sales of Kia’s electrified models set a new May record—posting a 33% increase over May 2022— and a new any-month record up by 4% over the previous record which was set in April. Sales of the all-electric Kia EV6 also set a new May sales record, increasing 7% over May 2022. In addition, overall sales of the model increased 80% over last month thanks in part to a marketing campaign and competitive lease program.

Mazda

Mazda North American Operations (MNAO) reported total May sales of 33,262 vehicles, an increase of 117.2% compared to May 2022. Year-to-date sales totaled 153,997 vehicles, an

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increase of 20.6% compared to the same time last year. With 25 selling days in May, compared to 24 the year prior, the company posted an increase of 108.5% on a Daily Selling Rate (DSR) basis.

CPO sales totaled 5,262 vehicles in May, an increase of 4% compared to May 2022.

Hyundai

Hyundai Motor America reported total May sales of 70,001 units, an 18% increase compared with May 2022. Hyundai set best-ever total sales in May for Elantra HEV (+152%), Elantra N (+70%), IONIQ 5 (+28%), Santa Fe HEV (+266%), Tucson PHEV (+206%), Tucson HEV (+95%) and Santa Cruz (+12%). Hyundai fleet sales were 5,931 and represented 8.5% of total volume for the month.

Hyundai sold 64,070 retail units in May, an 8%year-over-year increase from May 2022. Hyundai set best-ever retail sales in May for Elantra HEV, Elantra N, IONIQ 5, Santa Fe HEV, Tucson PHEV, Tucson HEV and Santa Cruz.

Hyundai eco-friendly vehicle sales of 12,097 represented 19% of retail and a 93% year-over-year increase.

Subaru

Subaru of America, Inc. (SOA) reported sales of 54,531 vehicles for May 2023, a 28.2% increase compared with May 2022 (42,526). SOA also reported yearto-date sales of 248,924, a 12.8% increase compared with the same period in 2022.

In May, Outback was the top performer by volume with 17,146 vehicle sales. BRZ sales for May 2023 increased 217.4% over the same month in 2022, while Impreza posted a 126% increase in May. Forester sales for May 2023 increased 92.5%, and Ascent sales increased 20.4% compared to May 2022.

S ource: Kia, Mazda, Hyundai, Subaru

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Tesla Cleared in NHTSA Investigation Regarding In-Car Gaming Feature

By Iulian Dnistran InsideEVs

The National Highway Traffic Safety Administration (NHTSA) has closed the investigation it started in late 2021 regarding the ability of Tesla vehicles to display video games on the center infotainment screen even while the car was in motion.

The government agency cleared the American EV brand, saying in its most recent update that no safety-related defect exists, according to TechCrunch.

In 2021, videos surfaced online showing video games being played on the center screen of Tesla vehicles even in motion, which was deemed a safety issue by the NHTSA. Admittedly, the EVs warned those inside that “playing while the car is in motion is only for passengers,” but nothing could stop the driver from actually playing while driving.

The NHTSA contacted Tesla, saying: “Distraction-affected

crashes are a concern, particularly in vehicles equipped with an array of convenience technologies such as entertainment screens. We are aware of driver concerns and are discussing the feature with the manufacturer.”

Soon after, Tesla rolled out a software update that disabled the gaming feature of its vehicles while on the move, restricting it to a stationary-only feature. The NHTSA released a statement in December 2021 confirming the EV maker had agreed to disable the feature until further notice.

Even as Tesla reported that 97% of vehicles had completed the update within a month of it being issued, the NHTSA continued its investigation, with the agency reiterating at the time the Vehicle Safety Act bars companies from selling cars that pose significant safety risks, including from distracted driving.

Now, the investigation has officially ended and Tesla has been cleared.

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Repairify™, a portfolio company of Kinderhook Industries, LLC, on June 8 announced the upcoming release of the new asTech® AllIn-One solution for local and remote automotive diagnostics, calibrations and programming to simplify the repair process.

The asTech® All-In-One is a comprehensive tablet-based solution with local and remote capabilities that’s enabled for both asTech® remote OEM tool solutions and OEM Compatible diagnostics, as well as ADAS calibrations and programming.

The asTech® All-In-One is the most powerful solution of its kind available in the automotive repair market. It features the broadest capabilities of any asTech® device and the most comprehensive OEM vehicle coverage, including those using the DOIP, CANFD, K-Line and secure gateway protocols.

The asTech® All-In-One was officially available June 12. For more information, visit astech. com/all-in-one.

Source: Repairify

Toyota Changes Tune on EVs, Announces New Battery Tech

By Simon Alvarez Teslarati

While Toyota has been lagging in the battery-electric vehicle segment, a recent announcement suggested things may be changing.

like the Tesla Model Y, it was so uninspiring, few were sold. It didn’t help that it faced a major safety recall and a production halt.

But now the company says it will produce high-performance, solid-state batteries to improve vehicles’ driving range. Such innovations are also expected to cut the costs for the company’s EVs.

The plan was shared by Toyota on June 13, the day before the company’s annual shareholders meeting, as noted in a Reuters report.

and said it is developing a means to produce those batteries commercially by 2027 or 2028.

Solid-state batteries are superior to current battery technology, though they are expensive and scaling their production is a challenge. Toyota said it will produce an EV with a lithium-ion battery that features a range of 621 miles for the high end of the market. The company also said an EV powered with a solid-state battery should have a range of about 745 miles, and it should be capable of charging in just 10 minutes.

This year’s Women’s Industry Network (WIN) Educational Conference was held May 1-3 in San Antonio, TX, and, Laura Kottschade, operations manager of Jerry’s ABRA® Auto Body & Glass – Mankato in Minnesota, and Jeanne Esquivel, business development manager, Enterprise Holdings, were presented the WIN Cornerstone Award by WIN Chair Tanya Sweetland, general manager, OEC.

Over the past several years, the Japanese auto giant has reiterated its support for hybrid solutions and shunned the idea of a shift to all-electric vehicles. And when it released the bZ4X, an allelectric car to rival best-sellers

PPG Launches Paint Films Solutions

PPG on May 23 announced it will deliver paint and clear film solutions for automotive and industrial customers through PPG Advanced Surface Technologies, a new joint venture formed with entrotech, Inc., a provider of technology-driven film solutions.

Paint films are multilayer applications in which at least one layer is made from paint. They provide a range of environmental benefits, including lower energy consumption, as well as new aesthetic options. The technology is currently used for automotive applications and has potential applications across a range of industrial end-uses.

PPG established its paint films capabilities in 2021 with the acquisition of Wörwag, a Germanybased coatings supplier. The JV will consist of the PPG Wörwag film assets and the automotive films business of entrotech.

The automotive films portfolio of entrotech includes automotive clear protective films and the Aero Sustainable Material Technology line of paint films.

Source: PPG

Toyota said it is looking to launch its next-generation lithium-ion battery technology in 2026, which should offer longer range and rapid charging capabilities. The company also mentioned a “technological breakthrough” that addresses issues in solid-state batteries,

If Toyota were to pull off its ambitious battery plans, it would effectively leapfrog a lot of its competitors in the electric vehicle market. But while the company’s expected specs for its solid-state batteries far exceed the capabilities of commercially produced batteries available today, one would have to wonder how they will stack up against the batteries produced by the world’s most prominent EV makers in the coming years.

The WIN Cornerstone Award recognizes high impact actions and unique contributions that demonstrate commitment to the WIN mission and vision, and set an example for others to follow.

WIN scholarships are presented annually to deserving students enrolled in a post-secondary collision repair technology program. The 2023 program’s expansion was designed to attract more students and increase the number of awards, starting with doubling the award rate this year and enabling a variety of students to grow in their collision repair career journey. There were a record 20 WIN scholarships awarded this year.

Source: WIN

Lordstown Planning To Bring Litigation Against Foxconn

By Joey Klender Teslarati

Lordstown Motors has never had a smooth road, battling money issues, production bottlenecks and other issues, until it was saved by Foxconn in 2021. However, the EV startup is now planning to move forward with litigation against its lifeline in relation to Foxconn’s allegations of a potential breach of contract.

In May, Lordstown filed an 8-K with the SEC stating it received a letter from Foxconn in late April, accusing the automaker of breaching its investment agreement “due to its previously disclosed receipt of a notice from the Nasdaq Stock Market LLC indicating that the company was no longer in compliance with the $1 minimum bid price requirement for continued listing on The Nasdaq Global Select Market.”

Lordstown responded by stating the allegations were “without merit,” and the terms of the investment agreement

would not permit Foxconn to terminate the agreement at the time.

The two companies were in discussions to seek a resolution, but Lordstown said “no assurances can be given that the parties will reach a resolution of these matters.”

Lordstown shares fell more than 30% on the news that day.

However, it appears an agreement or negotiations moving toward one have broken down, as Lordstown said in a new 8-K filed in early June it “intends to enforce its rights through litigation” because Foxconn has breached the two companies’ investment agreement through “a pattern of bad faith.”

These moves have “caused material and irreparable harm” to Lordstown, the company said.

“In light of Foxconn’s conduct, the company believes that it is unlikely that Foxconn will complete the Subsequent Common Closing,” Lordstown said in the filing.

There also appears to be a disagreement on terms of the

investment agreement.

“On June 5, [Lordstown] received the letter...in which Foxconn did not acknowledge its obligation to complete the Subsequent Common Closing and instead asserted that Foxconn’s reading of the investment agreement would not allow for the adjustment of the number of shares to be purchased on account of [Lordstown’s] recent reverse stock split,” the filing said. “Foxconn’s interpretation would give Foxconn the right to purchase a windfall of over 60% of [Lordstown’s] Class A common stock for $47.3 million. [Lordstown] rejects Foxconn’s interpretation of the investment agreement and has so advised Foxconn in a letter dated June 7.”

Lordstown has since stated it is seeking a financial and strategic partner for the production of the Endurance pickup.

“We anticipate that production of the Endurance will cease in the near future,” it said in a 10-Q.

2023 Toyota bZ4X.