August 2012 Southeast Edition by Autobody News

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U.S. Coast Guard Calls Off Search for Sanford, FL, Body Shop Owners After Plane Crash Alan and Kathleen Van Nimwegen, owners of Seminole Paint and Auto Body Shop in Sanford, FL, went missing when their private plane crashed in severe weather during a flight from the Bahamas the morning of July 16. They were the only people on board. The U.S. Coast Guard has now called off the search to locate the Nimwegens after their Beechcraft Bonanza BE 36 crashed shortly after take off about 9:20 AM on a return trip from Bahamas to Daytona Beach. The Coast Guard responded quickly, deploying a helicopter that found a massive debris field, oil slick and empty

Seminole Paint and Auto Body in Sanford

life raft around five miles off Great Harbour Cay. USCG Petty Officer Jon-Paul Rios said that searchers concentrated on the area off Great Harbour Cay, near the Berry Islands, after a Coast Guard C130 airplane spotted See Missing Shop Owners, Page 10

State Farm and PartsTrader Defend Parts Program, Questioned about Benefits to Shops

See PartsTrader Defends, Page 8

P.O. BOX 1516, CARLSBAD, CA 92018

Perhaps the most interesting question at the latest Collision Industry Conference (CIC) came at the end of a 2-hour discussion regarding PartsTrader, the electronic parts ordering system State Farm is requiring its Select Service shops in four markets to use (see related cover story). Denise Caspersen, the collision division manager for the Automotive Service Association (ASA), asked State Farm’s George Avery the same question the association first posed to the insurer formally five weeks earlier in a press release, namely, what bene-

fit, financially or operationally, does required use of PartsTrader offer shops? “If State Farm is not able to clearly demonGeorge Avery strate the benefits of this pilot application to the repair community, then this application should not move forward,” ASA’s June 12 press release stated. While Avery skillfully addressed most of the questions and comments about PartsTrader during

Change Service Requested

by John Yoswick

VOL. 3 ISSUE 6 AUGUST 2012

Public Adjuster Moratorium ‘Unconstitutional’ Says Florida Supreme Court; Shops Notice A 2008 Florida law establishing a 48hour moratorium on public adjusters was ruled unconstitutional July 5 by the Florida Supreme Court on grounds that it restricted commercial speech. The Florida Supreme Court has declared unconstitutional a state law banning public insurance adjusters from soliciting policyholders during the first 48 hours after a damaging event. The decision was a blow to the insurance industry and Chief Financial Officer Jeff Atwater, who appealed a lower court ruling that was unanimously upheld by the state’s highest court. Public adjusters serve as advocates for policyholders while negotiating insurance claims. The overturned law had prevented them from getting involved in insurance

cases for at least 48 hours after the occurrence of an event. The association representing Florida public adjusters applauded the ruling. “The ban on solicitation is a violation of public adjusters’ free speech rights - and more importantly, an unfair rule that put policyholders at a disadvantage,” said Harvey Wolfman, president of the Florida Association of Public Insurance Adjusters. “Thanks to this ruling, we can help more policyholders in those critical first hours when they need it most.” At issue in the case was a 2008 Florida law, created in the wake of Hurricane Katrina, that prohibited insurance adjusters from soliciting business for 48 hours after an event See 48-hr Moratorium, Page 11

PartsTrader Coverage Continues from the Cover Story See additional coverage of PartsTrader on pages 12, 14 and 28.

PartsTrader Draws Blistering Reaction at CIC, Shop Owners Line Up to Comment in Person by Autobody News Staff

A capacity crowd of more than 400 heard State Farm Claims Consultant George Avery and PartsTrader CEO Rob Cooper give an overview of the very controversial parts procurement system at the CIC in San Antonio. Avery, who is also the incoming Chairman of the CIC starting in January, has endured some harsh criticism since the details of the PartsTrader program were first announced. Avery and Cooper outlined the program for the few unaware of it, and explained State Farm foresees shops ordering all their parts (recycled, aftermarket and OEM) from a single provider, PartsTrader. Avery attempted some comic relief by joking that he had a button made up saying, “I Love My Job, I

Love My Job, I Love My Job,” but questions and comments from approximately 20 members of the audience made it clear that while electronic parts ordering was unRob Cooper derstood and largely positive, there was significant apprehension about insurance companies intervening and/or controlling the process. Avery said misinformation about the program is widespread, and much of the concern is based on speculation and rumors from individuals who have not tried the product. “We only have 158 stores on the pilot that are actually using the proSee PartsTrader Pushback, Page 18

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Visit our E-Store:

www.graydanielsnissannorthparts.com Participating in Collision Link Parts Manager: Steven Hill 800-530-7522 601-899-7462 fax shill@graydaniels.com Hours: Monday - Friday 7 am - 5:30 pm 6080 I-55 North Frontage Rd., Saturday 8 am - 4 pm Jackson, MS 39211

Gray-Daniels Gray-Daniels Chevrolet Chevrolet • Prompt, Accurate and Free Local Delivery • Dedicated Wholesale Staff • Large Inventory Hours: Monday - Friday 7:30 am - 5:30 pm Saturday 8 am - 4 pm

Parts Manager: Eddie Williamson 800-729-6160 601-206-5894 local 601-206-5899 fax ewilliamson@graydaniels.com 6060 I-55 North, Jackson, MS 39211

Gray-Daniels Gray-Daniels Lincoln Lincoln • Trained Wholesale Crew • In State Next Day Shipping w/Quick Local Delivery • Great Discounts Hours: Monday - Friday 7 am - 6 pm Saturday 8 am - 12 pm

Parts Manager: Bill Styrone 800-898-1944 601-591-2648 fax bstyrone@graydaniels.com 201 Octavia Drive, Brandon, MS 3904

Gray-Daniels Gray-Daniels Nissan Nissan of of Brandon Brandon

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• Collision Parts Price Matching • Dedicated Wholesale Staff • Large Inventory Hours: Monday - Friday 7 am - 6 pm Saturday 8 am - 4 pm

Participating in Collision Link Parts Manager: Jack Willoughby

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Gray-Daniels Gray-Daniels Ford Ford • No Order Too Big or Too Small • Highly Experienced Parts Personnel • Great Discounts Hours: Monday - Friday 7 am - 6 pm Saturday 8 am - 12 pm

Parts Manager: Bill Styrone 800-898-1944 601-591-2648 fax bstyrone@graydaniels.com 201 Octavia Drive, Brandon, MS 39042

Gray-Daniels Toyota • Prompt, Accurate and Free Delivery • Dedicated Wholesale Staff • Large Inventory Hours: Mon. - Fri. 7am - 6 pm Saturday 8 am - 4 pm

Participating in Collision Link Parts Manager: Steve Calhoun 800-530-7955 601-948-0576 601-965-8458 fax scalhoun@graydaniels.com 104 Gray-Daniels Blvd., Brandon, MS 39042

Gray-Daniels Gray-Daniels Scion Scion • No Order Too Big or Too Small • Highly Experienced Parts Personnel • Great Discounts Hours: Mon. - Fri. 7:30 am - 6 pm Saturday 8 am - 4 pm

Participating in Collision Link Parts Manager: Steve Calhoun 800-530-7955 601-948-0576 601-965-8458 fax scalhoun@graydaniels.com 104 Gray-Daniels Blvd., Brandon, MS 39042

2 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

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Contents 11 More Defendants Charged in Florida

Staged Automobile Accident Ring . . . . . 7

Autobody America Names Will Johnston

President . . . . . . . . . . . . . . . . . . . . . . . . 4

Director . . . . . . . . . . . . . . . . . . . . . . . 10

CREF Announces Three New Trustees . . . 31 Former Rhode Island Auto Body Shop Owner Wins $3.27 Million Verdict

Against Insurers. . . . . . . . . . . . . . . . . . 34

Body Shop Re-Opens a Year After

Freeport, NY, Shop Owner Found Not Guilty

Gerber Opens New Shop in FL . . . . . . . . . . 7

Herkules Offers Sparkle Clean . . . . . . . . . 10

Tornado Hit . . . . . . . . . . . . . . . . . . . . . . 4

Gunder Files Multiple Lawsuits for Short-Pays . 3

Insurance Adjuster Wins High Court. . . . . . 6

KIA Recognizes Georgia Plant Employees

with Party . . . . . . . . . . . . . . . . . . . . . . . 4

NC Body Shop Owner Charged in Thefts . . 4 New Personal Injury Protection Law for Florida . 6

Nissan to Add 1,000 Jobs at Canton,

Mississippi Plant . . . . . . . . . . . . . . . . . . 4

of Insurance Fraud . . . . . . . . . . . . . . . . 39

Hodges Collision Breaks Ground on Third

Location . . . . . . . . . . . . . . . . . . . . . . . . 8

Mike Causey Wins Republican Nomination for North Carolina Insurance

Commissioner . . . . . . . . . . . . . . . . . . . . 8

NABC Needs Seven Directors. . . . . . . . . . 10 NHTSA Publishes Changes to Safety

Guidelines . . . . . . . . . . . . . . . . . . . . . . 11

Public Adjuster Moratorium ‘Unconstitutional’

Rhode Island Gov. Chafee Vetoes Auto

Tampa Auto Body Issues Layoff . . . . . . . . . 7

Service, Diagnostic and Mechanical News . 22

U.S. Coast Guard Calls Off Search for Sanford, FL, Body Shop Owners After Plane Crash . 1

COLUMNISTS

Attanasio - Collision Repair is an Art Form

at Uptown Body & Fender . . . . . . . . . . 26

Franklin - Capturing the Tough Ones . . . . . 28

Hey Toby! - Matrix Wand is a Game Changer—

Part 2 . . . . . . . . . . . . . . . . . . . . . . . . . 32

Insider - With Estimates, Insurers See the

Emperor’s Underwear . . . . . . . . . . . . . 27

Weaver - Problem on the IN-Side . . . . . . . 23 Yoswick - Non-OEM Parts Industry Meets

to Discuss Patent Law Change. . . . . . . 16

NATIONAL

3M Makes Major Donations Through Collision

Repair Education Foundation . . . . . . . . 33

Adelmann Elected to CAPA Board. . . . . . . 10

Advanced Car Technology Reduces

Frequency of Crashes Says Study . . . . 19

AkzoNobel’s Wanda Brand’s 2nd “Blue

Body Bill for Insurers . . . . . . . . . . . . . . 24

Supreme Court Won’t Hear Appeal on

Kia Brakes Suit . . . . . . . . . . . . . . . . . . 15

Texas’ Collision Repair Schools—No Lone

Reason for Success. . . . . . . . . . . . . . . 36

Win a Trip to SEMA as a Garmat Sharp Shooter. 6

WIN Offers Professional Development

at NACE. . . . . . . . . . . . . . . . . . . . . . . . 19

WMABA Labor Rate Survey Complete . . . 14 YouTube is a Valuable Sales Tool for PartsTrader Coverage

AASP/NJ Joins in Opposition to

PartsTrader . . . . . . . . . . . . . . . . . . . . . 14

ASA-Michigan Members and Vendors Discuss State Farm’s PartsTrader

Pilot Program. . . . . . . . . . . . . . . . . . . . 12

PartsTrader Announces 5-Year Deal with

‘One of the Largest U.S. Auto Insurers’;

Adds 3 New Managers. . . . . . . . . . . . . 12

PartsTrader Draws Blistering Reaction at

CIC, Shop Owners Line Up to Comment

in Person . . . . . . . . . . . . . . . . . . . . . . . . 1

Suede Cruise” Event . . . . . . . . . . . . . . 10

PartsTrader Forms Industry Advisory

SkillsUSA Competition Held in Kansas City. 15

SCRS Says PartsTrader Has Sparked Four

America’s Top Auto Students Crowned at Aug 3 Deadline for Comments on

Used Parts . . . . . . . . . . . . . . . . . . . . . 10

Brunori Elected to CREF Board. . . . . . . . . 10

Charley Hutton Appears at PPG Show

Truck Events . . . . . . . . . . . . . . . . . . . . . 6

Clark Plucinski Named CREF Executive

Council . . . . . . . . . . . . . . . . . . . . . . . . 12

New Industry Associations:

UT, ID, AL and TX . . . . . . . . . . . . . . . . 28

State Farm and PartsTrader Defend Parts Program, Questioned about Benefits

to Shops . . . . . . . . . . . . . . . . . . . . . . . . 1

Co. has failed to provide her. Ms. Lovenia Wiles: 098 Suzuki Impreza: The “Parts Return Fees” associated with the return of defective after-market parts in the amount of $237.54 of which Travelers Insurance refused to provide for. Mr. Hugh Coachman: 2010 Ford Explorer: The costs associated with Tint-color $48.00, Feather Prime and Block $63.00, PMC Logic P&M invoicing @ $479.93, color-sand & polish @ $52.80, and $364.80 in labor rate difference ($48.00 vs. $42.00) of which State Farm has refused to provide him. Ray Gunder stated, “It’s been a busy week or so for our attorney Brent Geohagan. While many insurers have paid such fees without so much as a whimper, I’m anxious to get these matters before a judge and jury to set a case precedence of which our customers can use in the future to be properly compensated. Hopefully these types of actions will not be necessary in the foreseeable future, but regardless, we’ll keep ‘Pounding the Rock’”!

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

Indexof Advertisers

Says Florida Supreme Court, Shops Notice. 1

Ray Gunder of Gunder’s Auto Center in Lakeland, FL, on behalf of his company’s customers, has filed multiple individual lawsuits against several insurers for their short pays of fair and reasonable charges. Gunder instructed his company’s legal counsel, Brent Geohagan, to file four separate lawsuits seeking recovery of the costs for various services and materials provided to his customers of which several insurers failed or refused to provide ample consideration. In each instance, the individual customer has authorized Ray Gunder to act in their behalf to seek recovery of the underpayments that each know are their personal financial obligation. They are as follows: Ms. Debra Koons: 2001 Suburban; Labor Rate Difference between $48.00 and $42.00 tendered by GEICO for a total demand of $231.50. Ms. Vivian Pierce: 2004 BMW X5: Feather-Prime and Block and related materials, and labor rate difference ($48.00 vs. $42.00) for $263.54 which State Farm failed to pay her. Ms. Juanita Langley: 07 Jeep Grand Cherokee; $2184.48 (23 different issues) plus car rental short-pay $87.09 of which Infinity Insurance

Southeast

REGIONAL

Gunder Files Multiple Lawsuits for Short-Pays

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

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Allan Vigil Ford . . . . . . . . . . . . . . . . 19 BMW Wholesale Parts Dealers . . . . 33 Chief Automotive. . . . . . . . . . . . . . . 11 Classifieds. . . . . . . . . . . . . . . . . . . . 39 Delray Honda . . . . . . . . . . . . . . . . . 26 Don Reid Ford. . . . . . . . . . . . . . . . . . 4 Equalizer Industries . . . . . . . . . . . . 16 Ford Wholesale Parts Dealers FL, GA, AL, MS . . . . . . . . . . . . . . 17 Garmat USA . . . . . . . . . . . . . . . . . . 14 Global Imports MINI . . . . . . . . . . . . . 6 Gray-Daniels Auto Family . . . . . . . . . 2 Gus Machado Ford . . . . . . . . . . . . . 29 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 20-21 Hyundai of Orange Park . . . . . . . . . 30 Hyundai Wholesale Parts Dealers . 33 Kendall Mitsubishi. . . . . . . . . . . . . . 29 Kia Motors Wholesale Parts Dealers. 25 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 5 Mazda Wholesale Parts . . . . . . . . . 39 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 35

MINI Wholesale Parts Dealers . . . . 34 Mitsubishi Wholesale Parts Dealers. 31 MOPAR Wholesale Parts Dealers . . . 8 Nalley BMW. . . . . . . . . . . . . . . . . . . 27 Nissan Wholesale Parts Dealers. . . 32 Palmers Toyota . . . . . . . . . . . . . . . . 14 Porsche Wholesale Parts Dealers . 31 Preval . . . . . . . . . . . . . . . . . . . . . . . 40 Reliable Automotive Equipment . . . . 7 Safety Regulation Strategies . . . . . 23 Sam Galloway Mazda . . . . . . . . . . . 15 SCA Appraisal Company . . . . . . . . 24 SEMA Trade Show . . . . . . . . . . . . . . 9 Serra Mazda . . . . . . . . . . . . . . . . . . 27 Serra Automotive Group . . . . . . . . . 13 Solution Finish . . . . . . . . . . . . . . . . 36 Southtowne Hyundai . . . . . . . . . . . 28 Subaru of Gwinnett . . . . . . . . . . . . . 12 Subaru Wholesale Parts Dealers . . 37 Tameron Hyundai . . . . . . . . . . . . . . 18 Toyota Wholesale Parts Dealers . . . 35 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 38

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 3

KIA Recognizes Georgia Plant Employees with Party

More than 6,000 team members and guests of Kia Motors Manufacturing Georgia, Inc. (KMMG) gathered June 17 for the company’s Third Annual “Team Member Appreciation Day” at the plant to recognize the hard work and dedication of its team. The day included a wide variety of entertainment, including appearances by Atlanta Hawks legends Dominique Wilkins and Spud Webb and the championship-winning Kia Racing team. A fireworks display could be seen throughout the 2,259acre site that produces the company’s best-selling vehicles in the U.S., the Sorento and Optima. Mr. Byung Mo Ahn, the Group President and CEO for Kia Motors America and KMMG, spoke to team members and their families during the event. Ahn recognized them for the most recent accolade of being named “Large Manufacturer of the Year” by the State of Georgia and for their hard work and dedication that has contributed to making them a leader in automotive production. “Your extraordinary work has earned KMMG recognition around the globe as a top automotive manufacturer,” said Ahn.

Autobody America Names Will Johnston President

AutoBody America, a Nashville, TN based operator of collision repair facilities in Tennessee, Mississippi and Arkansas, announced the appointment of Will Johnston to the position of president. Johnston will also continue to serve as chief financial officer while Pat James will remain the company’s chief executive officer. Johnston is a graduate of Duke University, where he studied economics, business management and marketing. After working in the process design department of Andersen Consulting, he was hired by AutoBody America, Inc., in 1999 to help create a scalable process and technology model. In 2006, he accepted an offer from Pat James to join him as an equity partner and has since been promoted from vice president to chief operating officer and chief financial officer. Johnston grew up and still resides in Nashville with his wife, Irish, and their children, Jake and Harper. AutoBody America currently has 19 locations throughout Tennessee, Mississippi and Arkansas with plans to continue accelerating their growth.

Body Shop Re-Opens a Year After Tornado Hit

A downtown Raleigh, NC, auto body business recently reopened its doors more than a year after a tornado destroyed their building. Coats Auto Body and Paint on South Saunders Street had been in the community for almost 40 years and it took only a few seconds for a tornado to rip it to shreds. The April 16, 2011, tornadoes touched down 25 times in 33 counties. The twisters killed 24 people and destroyed or damaged more than 6,500 homes and 113 businesses. It took Jim and Tana Malerba more than a year to bring their auto body shop back to life. “It’s a blessing,” Jim Malerba said. “It’s like God redecorated for us.” “The first thing that runs through your mind is, ‘What are you going to do? We have 30 employees’ 30 paychecks, what are you going to do,’” Tana Malerba said. “We were fortunate that we had the coverage and kept everybody working.” Tana Malerba said the scene “looked like a war zone” but they received a lot of support. “Everyone was wonderful,” she said. “Everybody pulled together and were helping each other out. It’s been a year filled with blessings and just chaos. We’ve met so many wonderful

people that have helped us along the way. We’ve been very fortunate,” Tana Malerba said. “Jim put things in perspective for me. He said, ‘You know, we could have been going to funerals this week instead of doing what we’re doing.’ So, we just did what we had to do to get back up and running again.” The couple relocated its business to Garner while working on the S. Saunders Street location, which was looted for scrap metal during the rebuild. They had a tough time rebuilding their South Saunders Street shop. “You know, you have to jump through a lot of hoops and I guess we weren’t really good hoop jumpers at first,” Jim Malerba said. The couple finally celebrated their new building with family, dignitaries and new friends like Steve Sebastian and Holly Turner, who became customers the day they parked at Coats to try and escape the tornado. “We just hunkered down in the car together, held each other and prayed and in a matter of minutes, watch this building get torn to shreds, and to see it rebuilt like this and, it’s amazing,” Sebastian said. Even though the Raleigh location has now reopened, the Malerbas are still planning on keeping their second location in Garner.

4 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

NC Body Shop Owner Charged in Thefts

A Tabor City, NC, auto body shop owner is the latest to be charged in a series of Brunswick County thefts involving owners of another Columbus County business. Barry Worley, 46, of Mill Branch Church Road, was charged with three counts of possession of stolen property - two felonies and a misdemeanor, said Capt. David Nobles of the Columbus County Sheriff’s Office. A magistrate released Worley, a former candidate for Columbus County commissioner, under a written promise to appear in court to answer the charges. Worley is accused of possessing a trailer, tool boxes and lawn-trimming equipment, all stolen in Brunswick County, Nobles said. Worley ran for county commissioner in 2008. He was narrowly defeated by incumbent Lynwood Norris in the Democratic primary. Four other men were charged in the case in May, three from Columbus County, including the owner of Right Way Vinyl Construction in Whiteville, a spokesman for the Brunswick County Sheriff’s Office said.

Nissan to Add 1,000 Jobs at Canton, Mississippi Plant

Nissan Motor Co. will add 1,000 jobs at its Canton, MS plant, where it will build the all-new 2013 Nissan Sentra compact. The addition of Sentra production in the fourth quarter, along with the planned November shift of the Frontier pickup truck and Xterra SUV to Canton from Nissan’s operations in Smyrna, TN will increase the Mississippi plant’s workforce to 4,500 by creating 1,000 jobs. “The Canton team has proved it can compete and win on a global scale, and it is due to this that we are adding three vehicles to our production roster in Mississippi,” said Bill Krueger, vice chairman at Nissan Americas. The expansion will increase Nissan’s investment to date in the 3.5million-square-foot plant to more than $2 billion. The automaker will also produce the new Sentra at its Mexican plant in Aguascalientes. It builds the current model there now. The Canton plant currently builds the Armada full-size SUV, Titan fullsize pickup and NV commercial vans.

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 5

New Personal Injury Protection Law for Florida

A new law went into effect July 1 to assist Florida’s fight against suspicious claims and insurance fraud problems with the personal injury protection (PIP) law. One of the biggest supporters of this law was Florida’s CFO, Jeff Atwater, who is concerned with the many relationships between pain clinics and attorneys when it comes to insurance benefits. The new law brings some major changes to Personal Injury Protection. Under the new law, only emergency medical conditions will warrant the full $10,000 in treatment from PIP coverage. Consequently, pain clinics and lawyers will have to stop making advertising claims that they can guarantee accident victims $10,000. This provision is a direct response to pain clinics that exhaust an accident victim’s PIP money whether or not the victim needs treatment.” As of January 1, 2013, the new law will cap chiropractic and physical therapy treatments at $2,500. Three other changes will include: • A requirement that victims seek treatment within 14 days of an accident • Massage therapy and acupuncture will no longer be covered by PIP • Only certain medical providers will be eligible to treat PIP patients

Charley Hutton Appears at PPG Show Truck Events

Charley Hutton, one of the custom car world’s most popular painters, will appear at the PPG Show Truck display at two major Goodguys Rod & Custom Association shows this summer. Hutton appeared at the 25th Pacific Northwest Nationals in Puyallup, WA, July 27-29, and also will be at the 11th MidWestern Nationals in Kansas City, KS, August 31-September 2 to meet show visitors and sign autographs. Well known for his laid-back and affable manner, Hutton has received an array of prestigious honors for his dramatic color schemes for high-end street rods. Accolades include Ridler Awards, Street Rod of the Year and Custom Rod of the Year awards, as well as an America’s Most Beautiful Roadster award. Hutton is also a recognized television automotive personality. He has appeared on the Discovery Channel’s American Hot Rod show with legendary custom car builder Boyd Coddington and was featured on Hot Rod TV and The Learning Channel’s Overhaulin’. He does most of his work in the Charley Hutton Color Studio in Nampa, ID, and uses only PPG Automotive Refinish products.

The parts of the law that have already taken effect include: • Tougher licensing standards for medical clinics • A new state anti-fraud task force led by CFO Atwater • Stiff penalties for providers caught defrauding the system • A requirement that crash reports written and filed by police contain the names of all passengers in the vehicles, so that people not involved in the crash cannot go to a clinic claiming they need treatment While many consumers are satisfied with this PIP reform, others still have their doubts and concerns when it comes to the lack of freedom victims will receive in their choice of medical treatment and some concerns expressed the new law favors the bottom line of the insurance companies. However, the law also includes a requirement that insurance companies reduce their PIP premiums at least 10% by October 1 or provide ample documentation why they cannot. It also requires companies to reduce PIP premiums 25% by the year 2014. That’s a lot of money saved for Florida drivers and hopefully this reform will serve its purpose and spread to other states facing similar increases in suspicious claims.

Insurance Adjuster Wins High Court The Florida Supreme Court on July 5 sided with an appellate court and struck down a 2008 law that barred public insurance adjusters from soliciting business right after a disaster. The law was enacted to prevent public adjusters, hired by policyholders to represent them during the claims process, from contacting people when they’re in shock and haven’t had a chance to resolve a claim with their insurer. Fred Kortum, a public adjuster, sued the state, saying the restriction violates the free speech rights of businesses, and the first 48 hours after a catastrophe are critical because a policyholder may make decisions that affect how much they’ll receive from an insurer. For instance, they might not preserve evidence or find all the damages. The Department of Financial Services, led by Chief Financial Officer Jeff Atwater, had defended the law, saying public adjusters are driving up insurers’ claims costs and in turn, triggering rate increases. Department of Financial Services press secretary Alexis Lambert said, “The office respects the Supreme Court’s authority and ruling in this case. No decision on next steps, if needed, has been made.”

A key disagreement was about whether the law applies to all forms of contact or just some: “A public adjuster may not directly or indirectly through any other person or entity initiate contact or engage in face-to-face or telephonic solicitation or enter into a contract with any insured or claimant under an insurance policy until at least 48 hours after the occurrence of an event that may be the subject of a claim under the insurance policy unless contact is initiated by the insured or claimant.” The Supreme Court sided with Kortum on the issue: “The Legislature’s insertion of the broad phase ‘initiate contact’ causes us to conclude that [the law] bans all public adjuster-initiated communication with a potential claimant during the forty-eight-hour period. Contact means to ‘get in communication with,’ to ‘make connection with,’ or ‘to talk or confer with.’” The court said public adjusterinitiated contact is protected as commercial free speech: “There is no reason for a public adjuster ... to contact a claimant but to engage in communication about the commercial transaction of public adjusting.”

Win a Trip to SEMA as a Garmat Sharp Shooter

GARMAT USA has announced the return of the immensely popular Garmat Sharp Shooter contest for shop owners and paint techs. This contest is designed to recognize quality paint techs and shop owners that use Garmat equipment. The Garmat Sharp Shooter Contest will run through September 18. Paint techs and their managers will have the opportunity to tell their Garmat story, in either video testimonial or written statements. Judging is based on the shop owner and paint tech's dedication to providing quality paint jobs, superior customer service, attention to safety and overall equipment knowledge. Bonus questions include an inquiry on how Garmat can improve their Garmat experience with product improvements. The first 100 entrants will receive a custom Garmat Sharp Shooter Cap. First place prizes of two leather jackets (one for the contestant and one for the owner) will be awarded to five finalists, and the Grand Prize of a trip for two to Las Vegas will go to the contest winner. Contest rules and regulations can be found at www.garmat.com.

6 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

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Tampa Auto Body Issues Layoff

The Reading Group LLC, parent company of America’s Body Co. LLC in Tampa, has filed a Worker Adjustment and Retraining Notification with the Florida Department of Economic Opportunity stating the company is likely to cease operations at 12875 Commodity Place in Tampa. Approximately 40 workers could be affected, according to the notice. The notice states the closure could happen within the next 60 days. The majority of positions affected are van body assemblers, following by mechanics and welders.

Gerber Opens New Shop in FL

The Boyd Group Inc. has announced the opening of a new collision repair center in Orlando, FL. The Boyd Group now owns and operates 10 locations in Florida, which brings the total number of U.S. locations to 149. The new Orlando repair center previously operated as K & J Customs, and will now be operating under the Gerber Collision & Glass trade name. It is approximately 17,500 square feet. The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S.

11 More Defendants Charged in Florida Staged Automobile Accident Ring The United States Attorney for the Southern District of Florida announced recently that 11 defendants were charged due to their roles in a staged accident ring. So far, the U.S. Attorney’s Office has charged 26 defendants in less than 12 months for their involvement. In the two separate indictments, defendants Obelio Rodriguez, a.k.a Ovy, 43; Maria Molina, a.k.a Cary, 41; Yuliet Tapanes, 25; Moises Madrid, 40, a licensed massage therapist; Dagoberto Milian Lopez, a.k.a Lavadora, 56; Amaurys Hernandez, a.k.a El Manco, 40; Gilda Garcia, a.k.a Hilda, a.k.a La Que Carta, 49; Javier De La Caridad Troncoso, 45; Ana Ovando, 42; and Janice Velez, 39, were each charged. They all received one count of conspiracy to commit mail fraud. Defendant Jennifer Adams, 38, a licensed chiropractic physician, was also charged in an information with one count of conspiracy to commit mail fraud. The charge carries a maximum sentence of 20 years’ imprisonment. These defendants were all allegedly trying to take advantage of Florida’s “No Fault” insurance law, under which insurers must provide Personal Injury Protection (PIP) cov-

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erage of $10,000 per person. The defendants allegedly unlawfully enriched themselves by submitting fraudulent PIP claims for chiropractic and massage therapy treatments for individuals who had participated in staged automobile accidents. The defendants recruited individuals to participate in staged automobile accidents and instructed participants on how to conduct staged accidents; what to tell responding police officers, insurance company representatives, and independent medical examination (IME) physicians; how to collect police reports; and what clinic to go to for treatment, even though the participants did not need treatment. Court documents also note that the defendants prepared fraudulent insurance documents. It would be claimed that the treatments were medically necessary and that the patients had received them. The defendants and their co-conspirators submitted these claims to various automobile insurance companies via the United States mail. Adams apparently served as named owner of the chiropractic clinics, even though the other defendants would maintain financial control of the businesses.

The clinics involved include the Chiropractic Office of South Florida and Healthcare ‘R Us in Palm Springs; New York Medical and Rehab Center and Florida Mango Massage Therapy Center in Lake Clarke Shores; OVY Rehabilitation Medical Center, HHR Rehab Medical Center, Chiropractic Center of Palm Beach Corp, and KCC, all located in West Palm Beach. Defendants Rodriguez and Lopez are currently at large and considered fugitives. Defendant Molina was arraigned on June 19. Defendant Tapanes was released on a $100,000 bond and arraigned on July 2. Defendant Madrid was released on a $50,000 bond and arraigned on June 12. Defendant Hernandez was arraigned on June 19. Defendant Garcia was released on a $100,000 bond. Defendant Troncoso was scheduled for a bond hearing and arraignment on June 20. Defendant Ana Ovando was scheduled for arraignment on June 20. Defendant Velez was arraigned before Magistrate Judge Brannon, where she pled not guilty, and was released on a $100,000 bond. Defendant Adams was released on a $50,000 bond and scheduled for arraignment on July 2. No trial date has been set for any of the defendants.

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 7

Continued from Cover

PartsTrader Defends

the CIC meeting in San Antonio, Texas, he acknowledged State Farm did not yet have an answer for Caspersen as the insurer is still evaluating feedback recently obtained from the 158 shops in the pilot program. “I don’t know the best way to answer that yet because I don’t believe we have all (the shop feedback),” Avery said. “And we are implementing changes in the pilot that now puts me in a position of needing to go back and ask, ‘Now after that change, what are your results?’ So it’s sort of a fluid process. I’m not sure how to answer your question yet, although we will respond when I have an answer. But at this point I don’t have much.” Avery and PartsTrader CEO Rob Cooper each spent about 15 minutes at CIC explaining the reasoning behind the program and offering a demonstration of how it works. Avery said his company was surprised that 17 Select Service shops in the Memphis, Tenn., market dropped the program without trying PartsTrader, a decision he felt could be have been

based on some of the inaccurate or misleading information he’s seen in press releases and blogs. Cooper reiterated that shops control which vendors have an opportunity to offer price quotes, and that shops can even use the system to order parts directly, bypassing the quote process. He said now that vendors in some of the test markets are becoming familiar with the system, the minimum bid time will be reduced from one hour to 30 minutes. He said that—along with improvements in integration with the estimating and management systems—will improve the efficiency of using the PartsTrader system.

George Avery to chair CIC George Avery was named as the next chairman of the conference. He becomes the 16th person to chair the quarterly gatherings of shops, insurers, automakers and vendors, since its inception in 1984. His first meeting as chairman will be next January 23–25 in Palm Springs, Calif. In explaining the choice of Avery, which is made by those who have previously chaired CIC, Jeff Hendler said he and the other past chairs look for

Mike Causey Wins Republican Nomination for North Carolina Insurance Commissioner Mike Causey, a former Autobody News columnist, advocate and lobbyist for auto body associations in the Southeast, has earned the Republican nomination for North Carolina Insurance Commissioner. Causey ran for the office previously and once served as the Director of Government Affairs for the Independent Auto Body Association (IABA). He was a registered lobbyist in North Carolina for the IABA, the North Carolina Autobody and Glass Association, and the Automotive Service Association of North Carolina. He defeated Richard Morgan in

a July 17 runoff election for the nomination, earning 57 percent of the vote. Causey ran as the Republican nominee against former Democratic Insurance Commissioner Jim Long in 2000. He was defeated when Long captured 57 percent of the vote. In a newspaper interview with the Beaufort Observer in January of this year, Causey said, “One of the main reasons I’m running is that I want to help people who are having problems with insurance companies.” Causey has a website to support his campaign: www.gocausey.com. See his columns at autobodynews.com.

Hodges Collision Breaks Ground on Third Location

Steve Guinn, owner of two Hodges Collision Centers, announced the company broke ground on their third location in Tomball, TX. The new Hodges Collision Center will be the third location for the collision repair company. The 10,000square-foot location will house an Enterprise Rent-A-Car business as well as insurance adjuster offices. It is scheduled to open in early 2013.

Hodges Collision Center has two other South Montgomery County area locations at 130 Lane and 1002 Rayford Road. Hodges Collision Center is a new breed of independent body shops owned and operated by professionals who combine extensive automotive experience with successful methods of customer care and marketing borrowed from other service industries.

8 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

someone who has the skills, experience and CIC involvement to “direct CIC in the fashion it needs to be directed.” He said such qualifications are more critical than the candidate’s employer as that can (and has, at times) changed during a chairman’s 2-year term. “We’re not choosing companies. We’re choosing people. And I think we’ve chosen a great one,” Hendler, who serves as the CIC administrator but was also its chairman in the late 1980s. Avery acknowledged the timing of the announcement at the same meeting at which he faced strong criticism for his company’s pilot test of PartsTrader made it somewhat of “an awkward day.” But he asked CIC attendees to keep in mind his reputation of being approachable and an active CIC participants. “I know we don’t all agree, but I’ll leave you with this: You can’t shake hands over the phone. And CIC is an opportunity where those with whom we disagree have a chance to shake hands. We have some spirited discourse, of course, which I think is healthy, but it’s something we work through together, and I hope you see and will support my desire to move

CIC forward as a place that everyone can come together and express their opinion and make the industry better.” Avery is not the first insurance company representative to chair CIC. Joe Landolfi holds that distinction, chairing the conference in 1995 and 1996 at which time he was an executive with Kemper Insurance. Roger Wright was working for CARSTAR when he began his term as CIC chairman in 2003, but joined AIG Insurance several months into his term. Avery will succeed Mike Quinn, who also had an employment change during his term, joining Caliber Collision Centers this year after selling the consolidator his chain of Arizonabased shops. Quinn will reside over his final CIC meeting as chairman on October 31 and November 1 in Las Vegas. John Yoswick, is based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 9

Aug 3 Deadline for Comments on Used Parts

As part of its review of all current Federal Trade Commission rules and guides, the FTC is looking for public comments on the costs, benefits, need for, regulatory and economic impact of the Used Auto Parts Guides. Comments to the FTC on the guides must be received by Aug. 3. The FTC’s “Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry,” were issued to prevent the unfair marketing practices regarding used motor vehicle parts and assemblies, including engines and transmissions, containing used parts. The guides include details regarding misrepresentations about a part’s condition and its former use. It suggests that pre-used parts are to be clearly identified in advertising and packaging, or on the part itself. The guides also include language that describes the treatment a part is mandated to receive before it can be labeled “rebuilt” or “remanufactured.” The guides were last revised in 2002 and included an updated list of commonly rebuilt or reused parts for cars. To view the guides in their entirety, visit ASA’s legislative website at www.TakingTheHill.com.

Clark Plucinski Named CREF Executive Director

The Collision Repair Education Foundation has announced that Clark Plucinski has been named its executive director, effective July 30, 2012. “We are pleased to have someone of this caliber lead the Collision Repair Education Foundation going forward,” said Chris Northup, chairman of the Board of Trustees. “Clark is a perfect fit for our organization to continue to grow and prosper in providing dollars and products to those who provide our future technicians and leaders.”

AkzoNobel’s Wanda Brand’s 2nd “Blue Suede Cruise” Event

AkzoNobel’s Wanda brand was the title sponsor of one of the largest Midwest street rod events of the year. “Blue Suede Cruise” took place July 20–22, 2012, at Summit Motorsports Park in Norwalk, OH. Thousands of car enthusiasts gathered at the 2012 Wanda Blue Suede Cruise event to view beautifully painted Hot Rods, Customs, Classics, Muscle Cars and Trick Trucks that were on display, along with concept and show cars painted in custom Wanda colors and finishes.

NABC Needs Seven Directors

The National Auto Body Council (NABC) is now accepting nominations for its 2012 board of directors. The NABC said it will fill seven vacant positions on its board. Board candidates must be members of the organization or designated representatives of member companies in order to be included on the voting ballot. Candidates can be nominated either by themselves, or by three other NABC members. Board nominations can be submitted by mail, email or fax by Aug. 11, 60 days prior to the election. Visit autobodycouncil.org for details to submit a nomination.

Herkules Offers Sparkle Clean

Herkules Equipment Corporation introduces Sparkle Clean, an aerosol spray cleaner that can quickly spotclean all painting equipment, specifically paint guns. Back by customer requests, Sparkle Clean was originally created in 2002 and now has been reformulated with low VOC content. Effective with either solvent or waterborne paints, Sparkle Clean provides a method to quickly clean stubborn paint off of paint guns and an attached straw allows Sparkle Clean to be sprayed into small paint gun crevices easily.

Brunori Elected to CREF Board

Executive VP/GM, Dave Brunori has been elected to the Collision Repair Education Foundation Board of Trustees. The mission of the Collision Repair Education Foundation is to secure and distribute charitable donations to support endeavors that promote, qualify, and properly train employees entering the collision industry. Brunori brings over 29 years of experience in the Vehicle Refinish market and has been with Matrix System Automotive Finishes for 19 years.

Adelmann Elected to CAPA Board

CAPA has elected Tim Adelmann, executive vice president of business development at ABRA, Inc., to its board of directors. Adelmann was elected to the collision repairer position vacated by Mike West, who recently retired and closed his repair shop in Tukwila, WA. “Tim Adelmann is a long-standing and respected leader in the collision repair industry, and we’re excited to have him join CAPA’s efforts to insure that the market has truly high quality alternative parts,” said Jack Gillis, CAPA’s executive director.

10 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

Continued from Cover

Missing Shop Owners

a debris field. The Coast Guard cutter Dolphin also responded to the scene. Family of the couple, who own and operate Seminole Paint and Auto Body Shop at 2540 S Myrtle Avenue in Sanford, released a statement on the afternoon of July 16. “The families of Alan Van Nimwegen and Kathleen Van Nimwegen hold out hope for the return of Alan and Kathleen,” the statement said. “Alan and Kathleen were en route from the Bahamas to Florida, when radar contact with their airplane was lost during bad weather.” The Nimwegens were residents of a fly-in community, Spruce Creek, near Port Orange and friends said the two frequently flew to their home in Bahamas for weekends. Family friends said the Van Nimwegens said the couple flew to the Bahamas almost every weekend. They returned during the week to run their body shop. Search teams from the U.S. Coast Guard located debris thought related to the crash including a life

vest and an oxygen tank. However, no one had been found. A neighbor of the couple, formerly of Hewitt, NJ., said they had lived at their Spruce Creek Fly-In residence for at least the past 15 years. “They were good neighbors,” said Wayne Young, who said he lives two doors down from the Van Nimwegens on Wright Drive. “And good people.” He said both Alan and Kathleen Van Nimwegen were licensed and very competent pilots. “They were not rank amateurs,” he said. Coast Guard craft and personnel from Miami and Clearwater were called in to assist members of the Royal Bahamas Defence Force and the Bahamian Air and Sea Rescue participating in the search effort. Federal Aviation Administration officials said contact was lost with the Beechcraft Bonanza around 9 a.m. Monday, July 16. The plane had departed from Marsh Harbour on Abaco in the Bahamas. Marsh Harbour is the same airport from which the R&B singer Aaliyah and her entourage were taking off when their overladen plane crashed in August, 2001. All nine passengers and crew were killed.

Continued from Cover

48-Hour Moratorium

leading to an insurance claim. The new law was created with the support of insurance companies who alleged that unscrupulous public adjusters were causing them to pay unnecessary or inflated insurance claims. The ruling marks the end of a court battle that began in 2009 when an Oviedo, Florida-based public adjuster sued the state Department of Financial Services over the new law. Plaintiff Frederick Kortum maintained that the first 48 hours after a damaging event are the most critical for a policyholder because it is the window when photos, paperwork and other important actions must be taken to protect evidence, and public adjusters serve as advocates for policyholders while negotiating insurance claims. Insurance associations were in support of the ban, however, the court ruled that public insurance adjusters’ commercial free speech rights are violated if they are prohibited from soliciting people until 48 hours after an insured event.

Interestingly, the court’s opinion relied in large part on the standards of law set by Central Hudson Gas & Electric Corp. v. Public Service Commission of New York, 447 U.S. 557 (1980), the same case used by insurers to defend their free speech rights in two important collision industry cases. In those earlier cases, Allstate successfully used Central Hudson to argue the violation of commercial free speech in the Texas case of Allstate Insurance and Sterling Collision, v. Greg Abbott when the ban on insurer owned shops was challenged in court by Allstate. Central Hudson was also used by insurers in a New York case, Allstate v. Serio, that found that certain restrictions on insurer steering were violations of the insurance companies’ right of commercial free speech.

A similar ban on body shops A few years ago, the major insurance associations had also initiated support for a similar ban on body shops. The ban was introduced in the Model Act Regarding Insurer AutoBody Steering that had been under consideration by the National Conference of Insurance Legislators (NCOIL)

Property and Casualty Insurance Committee. The American Insurance Association (AIA), National Association of Mutual Insurance Companies (NAMIC), and the Property Casualty Insurers Association of America (PCI), had supported the introduction of several new restrictions on collision repair facilities in the model. The insurance industry proposal would require repair facilities to wait three days after an accident before they were allowed to solicit a vehicle owner for their business. The proposal also would ban a shop from seeking a power of attorney from a vehicle owner for the repair of the vehicle. Though the NCOIL Steering Model was “indefinitely tabled” by the committee in 2010, then-Committee Chair Sen. Ruth Teichman (KS), speaking for the group, said they were committed to revisiting the issue of steering in the future. This new decision in Florida adds further support from the courts that this type of ban on communication with consumers is a violation of commercial free speech rights, whether the ban is on adjusters, body shops, or insurers.

NHTSA Publishes Changes to Safety Guidelines

The National Highway Traffic Safety Administration (NHTSA) recently published amendments to the Highway Safety Program Guidelines for states. The proposed NHTSA Highway Safety Program Guidelines Amendments include recommendations for periodic motor vehicle inspection (PMVI). NHTSA’s proposal calls for every state to have a periodic vehicle inspection program and require vehicle owners to correct these conditions in order to reduce the number of accidents. According to the proposed guidelines, an inspection program would provide, at a minimum, that: Every vehicle registered in the state is inspected at the time of initial registration and on a periodic basis thereafter as determined by the state. The inspection is performed by competent personnel specifically trained to perform their duties and certified by the state. The inspection covers systems, subsystems and components having substantial relation to safe vehicle performance. Each inspection station maintains records in a form specified by the state.

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 11

PartsTrader Announces 5-Year Deal with ‘One of the Largest U.S. Auto Insurers’; Adds 3 New Managers

In a press statement released to media in New Zealand, PartsTrader announced that it has entered into a “locked-in five year agreement” with “one of the largest auto insurers in the U.S.” While the release did not name the insurer that it signed the contract with, the New Zealand based PartsTrader has been working with State Farm in the U.S. to test its online parts bidding system for several months now. In the statement, the company said that it has “just completed a four-state pilot of its online trading platform” in the U.S. A New Zealand news source reported PartsTrader winning a fiveyear contract with State Farm to introduce its online parts trading platform to U.S. collision repairers by early next year. The online news source said PartsTrader would add about 45 employees in New Zealand and the U.S. as a result of the deal and called the U.S. contract its “first big overseas break, though its value will depend on the volume of car parts ordered.” PartsTrader US LLC Chief Executive Rob Cooper said, “We have entered the U.S. market with a

locked-in five year agreement. If successful, the business will generate a healthy profit and most of it will flow back to our NZ investors,” Cooper said. PartsTrader said that it “fended off an international field of contenders” to win the contract in the U.S. which is “modeled on the platform [that] has operated in New Zealand since 2004.” The company said that last year in New Zealand alone, vehicle parts valued at more than $70 million were obtained through the PartsTrader platform, which is used by most of the major insurers and some 80 percent of collision repair shops in New Zealand. In late June, PartsTrader also announced it hired three industry leaders to its management team. Dale Sailer, David Merrell and Troy Holm will lead the company’s efforts in implementing the PartsTrader system in the collision repair and collision parts markets. Sailer will serve as the company’s Vice President of Business Development. Merrell joins the company as its National Account Director and Holm is its first Field Relations Manager.

PartsTrader LLC announced that it has formed an industry advisory council with the stated purpose of providing the platform’s two primary user groups (repairers and parts suppliers) with the “opportunity to provide timely and critical feedback on the platform in order to maximize the value created by the platform.” “Creating an industry advisory council is both necessary and appropriate” said Rob Cooper, PartsTrader Chief Executive Officer. “While we spoke with many collision repairers and parts suppliers during our first two years of research and initial building of our U.S. product offering, it is only through an ongoing, open engagement with our primary customer groups that we can ensure our product truly meets the needs of those using it,” Cooper said. The PartsTrader Advisory Council will consist of representatives from each user community. The initial group will include four to five repair facility advocates, with both multi-shop operators and single location operators being represented. Likewise, the group will include five to six supplier advocates, with OEM, aftermarket and recycled each being represented.

The inaugural group will include Michael Quinn, Collision Industry Conference (CIC) Chairman (Tucson, AZ); Steve Tomaszewski of Alpine Collision Centre (Grand Rapids, MI); Michael LeVasseur of Keenan Autobody (Clifton Heights, PA); Lou DiLisio of Automotive Industry Consulting (Mt. Kisco, NY); Amber Elenbaas of Pete’s Auto Parts (Jenison, MI), and Christopher Northup of General Distribution Consultants (Glendora, CA). All of these individuals are active in various industry associations and advocacy groups. “We were very careful in choosing who to invite to participate in this initial group,” said Dale Sailer, PartsTrader Vice President of Business Development. “It was critical that we assemble a group of individuals who will not be shy about expressing their opinions and are willing to hold us accountable for our stated commitments to the industry, while also being forward thinking and business savvy. We think we’ve put together a group that will be very demanding of PartsTrader on behalf of their peers, to the ultimate benefit of both user groups.” See related stories this issue.

PartsTrader Forms Industry Advisory Council

12 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

ASA-Michigan Members and Vendors Discuss State Farm’s PartsTrader Pilot Program Automotive Service Association (ASA) members and related collision industry vendors in the Michigan area were recently invited recently by ASA-Michigan, an ASAaffiliated association, to attend a “facts to date” presentation and member discussion centering around the State Farm electronic parts ordering application. The pilot is currently taking place in Grand Rapids, MI.; Charlotte, N.C.; Birmingham, AL.; and Tucson, AZ. Organized by Ray Fisher, AAM, president of ASA-Michigan, the June 28 meeting was held in Lansing, MI., at the Lansing Community College. ASA-Michigan provided the forum to present the facts to date about the pilot, along with clear statements of concern from both repairers and suppliers in the Michigan area and around the United States. “Anytime there is a ‘gamechanging’ situation – as this pilot is for the industry – it is imperative that we inform the industry with factual information, allow time to digest that information and work together to provide solutions, on behalf of the membership and potential members. During these challenging economic

times we must focus on helping repair facilities generate revenue,” said Fisher. During the four-hour meeting, Denise Caspersen, ASA collision division manager, spoke about the pilot with an audience of nearly 100 preregistered ASA members, vehicle manufacturers, staff representatives of the Michigan Auto Dealers Association and vendors. Audience members were encouraged to express their concerns, ask for clarifications to specific questions and provide additional questions to be supplied to State Farm and PartsTrader, the company providing the electronic parts ordering application. Main concerns continue to be how this application, as introduced by State Farm, will affect profitability, the unknown impacts on the relationships between shops and suppliers, and the overall current “climate” between repairers and insurers. “The opportunity for ASA to participate in a discussion with ASA members and vendors in the pilot area of Grand Rapids, MI. is invaluable in understanding the overall climate impression around the State Farm pilot,” said Caspersen.

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AASP/NJ Joins in Opposition to PartsTrader The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) has joined the groundswell of shops and associations in opposing State Farm’s pilot parts-bidding program. “We are in total agreement with our fellow industry associations and members such as AASP National, SCRS, AASP/MA, AASP Illinois and the many individuals who showed up at last week’s CIC meeting in San Antonio, who are standing together to voice complete opposition to this latest intrusion into our members’ businesses,” says AASP/NJ ExecuCharles Bryant tive Director Charles Bryant. “We are calling for all of our colleagues across the country to speak up and voice their displeasure with a program that could potentially devastate the industry.” AASP/NJ President Jeff McDowell echoed Bryant’s statements. “How many more times are we going to let the insurance industry change the rules to their advantage? Things are hard

enough out here. Enough is enough,” McDowell said. Although the PartsTrader pilot program has only been introduced in a few test areas, AASP/NJ said it is encouraging members to get as much Jeff McDowell information as possible before it reaches New Jersey. “You will see that the vast majority of shops who have ‘volunteered’ for the program have regretted it. We don’t want that happening in New Jersey and we will do everything we can to prevent it.” Bryant thinks the controversy is one the collision industry needs to act on immediately. “We hope the rest of the country continues to step up and join us. It is our industry. We need to keep it that way,” Bryant said.

www.autobodynews.com C

WMABA Labor Rate Survey Complete

The Washington Metropolitan Auto Body Association (WMABA) has announced that the results of its 2012 labor rate survey. The survey was conducted to determine a more equitable labor rate since, according to WMABA Executive Director Jordan Hendler, some areas around DC haven’t seen a rate increase in five-plus years. “So many of our members tell us that they’re very rarely, if ever, surveyed by any insurer,” says Hendler. “When they attempt to tell the carrier their new rates, they’re often stonewalled or referred to another manager. In many cases, the shop is told that their rates aren’t competitive, and [the insurer] will have to inform all of their customers not to go to that shop or risk paying the difference. This type of threat seems to be the unnecessary approach that most insurers take with any labor rate request or needed repair procedure.” Results for average body labor rate were: Baltimore: $43.64; Annapolis: $43.51; Hagerstown: $43.59; Washington DC: $43.35; Virginia Beach: $44.4; Charlottesville: $44.28; Richmond: $45.34; Roanoake: $43.34 In addition to showcasing posted labor rates throughout the WMABA

region, the project uncovered a surprisingly small number of shops that actually utilize paint and material (P&M) cost accounting programs. “I think mostly it’s a lack of understanding or going against the norm,” said WMABA President Barry Dorn. “I know that many insurers do not and will not recognize [a cost accounting program]. The old method of using a multiplier as a method of reimbursement is antiquated at best. Petroleum prices, and thus paint prices, continue to escalate; for some reason, the rates do not. The calculators take all arguments away from everyone. They’re accurate and something this industry needs to embrace.” According to WMABA, hundreds of shops participated in the labor rate survey process, although many didn’t, something that Dorn doesn’t understand. “I don’t understand the logic behind their decision,” Dorn says. “Without this survey, you’re forced to ‘go it alone,’ balance bill the customer or complain to anyone who will listen – none of which is a solution. I don’t remember the last time a carrier surveyed me. Your association did this to get a real, factual and third-party perspective rather than hearsay.”

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Supreme Court Won’t Hear Appeal on Kia Brakes Suit

The Supreme Court refused to hear an appeal of a $5.6 million verdict against Kia Motors Inc. in a class-action suit over allegedly faulty brakes in Sephia sedans. The high court decision ends an 11-year legal battle. The Pennsylvania Supreme Court last December upheld a decision that awarded $600 — $5.6 million total — to 9,400 owners of 1997 to 2000 Kia Sephias in Pennsylvania that had brakes that allegedly wore out much faster than normal. Owners in other states have pursued separate claims. A jury in New Jersey found Kia Sephia owners could be reimbursed up to $750 for brake repairs. The Pennsylvania suit was first filed by a Kia owner that had gone to a dealer five times to get the brakes repaired on her 2001 Sephia between January and October 2000. Kia changed the brakes beginning in the 2001 model year.

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America’s Top Auto Students Crowned at SkillsUSA Competition Held in Kansas City Hundreds of automotive students gathered in Kansas City, MO for a showdown for gold. Armed with their tool boxes and spray guns, they represented the top collision repair and automotive refinishing students from around the country. SkillsUSA returned to Kansas City on June 23-27, 2012 for its 48th annual National Leadership and Skills Conference, a showcase of career and technical education students. Quality career and technical education was the centerpiece of the conference. More than 15,000 students, teachers, education leaders, and representatives from more than 1,100 national corporations, trade associations, businesses and labor unions participated in the event with 94 hands-on skill and leadership competitions. SkillsUSA organizes this event, and it is considered the single greatest day of industry volunteerism in America every year at an estimated cost of more than $35 million. Each SkillsUSA Championships contestant is a state-level gold medalist. When the dust cleared, four students claimed the gold medals, taking home the country’s top honors in their competitions, along with scholarships, prize money and new tools.

Automotive Refinishing Technology The automotive refinishing technology competition included surface preparation, spray gun operation, paint mixing, matching and applying, solving paint applications problems, determining finish defects, causes and cures, and utilizing safety precautions. The winners were: Spencer Cook (Gold) - High School, Mid-Coast School of Technology, Rockland, ME Derek Meehl (Gold) - Postsecondary, Saint Cloud Technical College, Saint Cloud, MN James Chesser (Silver) - High School, Lewis & Clark Career Center, Saint Charles, MO Aaron Dressler (Silver) - Postsecondary, Penn College of TechWilliamsport, PA Nathan Aguiar (Bronze) - High School, Diman RVTHS, Fall River, MA Jessica Crowley (Bronze) - Postsecondary, College of Western Idaho, Nampa, ID “I plan to initially work on street cars, but would really like to get into custom refinishing,” said Meehl. “I’d like to be like Chip Foose.” Collision Repair Technology In the collision repair competition, stu-

dents were tasked with straightening, welding, repairing a plastic bumper and conducting a structural analysis. There also was a written test on estimating and structural analysis, plus an ASE exam. The winners were: Jason Lucius (Gold) - High School, Vanguard-Sentinel Career & Tech Ctr - Sentinel, Tiffin, OH John Stanton (Gold) – Postsecondary, Kaskaskia College, Centralia, IL Jackson T Winslett (Silver) - High School, Alvin High School, Alvin, TX Michael Annis (Silver) – Postsecondary, Washburn Tech, Topeka, KS James Johnson (Bronze) - High School, Center of Applied Tech North, Severn, MD Owen Boyle (Bronze) - Postsecondary Penn College of Tech, Williamsport, PA Begun in 1967, the SkillsUSA Championships has grown from 54 competitors in three contests to more than 5,600 competitors in 94 handson skill and leadership contests this year. SkillsUSA adds contests to the SkillsUSA Championships to meet the demands of new and expanding occupations. SkillsUSA affiliated instructional programs represent 130 different occupational areas.

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Industry Insight

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

Non-OEM Parts Industry Meets on Possible Patent Law Change with John Yoswick

Non-OEM versions of many more vehicle parts could be manufactured and available much sooner after a new vehicle model is introduced if backers of proposed changes to federal patent laws are successful. An update on the legislation being pushed by the Quality Parts Coalition (QPC) was among the topics at the recent Automotive Body Parts Association (ABPA) convention, held in Vancouver, British Columbia. Eileen Sottile of the QPC urged the aftermarket part manufactures and distributors attending the conference to contact Congress to support the coalition’s legislation (HR 3889), which would reduce the time automakers can use design patents to prevent other companies from producing replacement crash parts. Sottile said the bill would reduce the patent protection from 14 years to just 2.5 years, and the 2.5-year clock would start ticking when the automaker introduces the car, even if that vehicle introduction is in another country months before it is introduced in the United States. Sottile said the QPC wanted to eliminate all design patent protection on the parts, as called for in earlier bills it introduced in Congress, but settled for a 2.5-year moratorium because Rep. Darrell Issa (R.-Calif.), who is sponsoring the bill in the U.S. House, “felt very strongly that we had to find a balance between protecting intellectual property and allowing competition.” She said a sponsor is being sought to introduce a similar bill in the Senate. Although one has not yet been announced, the QPC has recently announced that three more members of Congress have signed on as cosponsors of the House bill. Reps. Bill Cassidy (R-La.), Walter Jones (RN.C.) and Dennis Ross (R-Fla.) are now supporting the bill At the ABPA event, Sottile outlined how the QPC’s monthly lobbying and public relations budget of about $70,000 is being funded. LKQ Corporation has donated $3.7 million, she said. The ABPA has contributed $1.5 million, mostly through an optional $50 fee that some ABPA mem-

bers voluntarily contribute for each shipping container of non-OEM parts they ship or receive. Other major contributors include Nationwide and State Farm ($115,000 each), the Automotive Aftermarket Industry Association ($99,000), Allstate ($92,000) and AutoZone ($60,000).

Certification program update Also speaking at the ABPA event, Bob Frayer of NSF International, said his organization has certified about 1,800 non-OEM parts, and is adding about 100 parts a month to that list. Launched in 2010 with the backing of the ABPA, the NSF parts certification program is in part a response to unhappiness within the nonBob Frayer OEM parts industry with the time and expense involved with having parts certified through the 25-year-old Certified Automotive Parts Association (CAPA) program. Frayer acknowledged that most of the NSF-certified parts are bumper-related parts, the first category for which NSF offered certification, but he said NSF is now certifying non-OEM plastic, sheet metal and lighting parts as well. He said EMC Insurance, Farmers, Grange and USAA are among the insurers calling for the use of NSF-certified parts. “We’re continually talking to insurance companies, and hopefully as the program grows and we have more part in the program, you’ll see more insurers writing NSF parts,” Frayer said. Unlike the CAPA certification program, NSF does not require that its labs conduct the actual testing of the parts; NSF merely audits that the parts manufacturer has had testing done by a qualified facility. But Frayer said NSF subsequently pulls 25 to 30 individual parts out of the distribution stream each month for testing at NSF. “We expect by the end of this year to have over 250 parts that we’ve ac-

16 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

tually tested at NSF,” Frayer said. “If we do see problems with parts, those testing numbers will increase. We’ll be testing more parts if we see any indication that there’s something less than what was (initially submitted and) certified and being supplied to the market.” Frayer was asked at the ABPA event how it develops the specifications that determine whether a part earns certification. “The basis for the certification is always the OE (original equipment) service part,” Frayer said. “The OE service part is the standard with which we use to measure the aftermarket part.” Frayer said a committee, which includes parts manufacturers, determines acceptable tolerances for deviations from the OEM service part. “Because we can measure the OE service part and find, for example, it has a yield strength of ‘x’ or an ten-

sile strength of ‘y,’” Frayer said. “The question is: What kind of tolerance would seem reasonable to put around those numbers. So the (non-OEM) manufacturers help provide the initial guidance with that. But I can tell you what happens is as we go forward, we start testing parts. We start seeing how much variation we see in the OE parts. And that gives us a pretty Eileen Sottile good indication of whether the tolerances that we initially applied (for non-OEM part certification) are appropriate or not. I can tell you without exception the tolerances that our manufacturers have given us and worked with us to develop up front are as tight or tighter than what we’re seeing in the OE service parts.” See Patent Law Change, Page 29

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Continued from Cover

PartsTrader Pushback

gram,” Avery said. “So there’s a lot of people out there that are starving for information. That information comes from a variety of sources. It comes from your friends, it comes from associations, it comes from me, perhaps in the press, and of course press releases and blogs.” “We give [repair centers] $3 billion to purchase parts annually,” Avery said. “We handle 35,000 claims per day. We are a mutual company, which is owned by the policyholders. We have a moral and legal obligation to make sure that money is spent in a prudent manner. We are not interested in short-term gain for our customers. We are interested long term for our customers.” Avery said that State Farm did not expect a dramatic decrease in cost of repair or dramatic changes in cycle time, “but it probably will happen.” He said that State Farm is not a company that routinely asks repairers for discounts on repairs. “We did not expect open arms,” Avery said. “We know change causes ripples. We know we are getting into your business. However, in a previous test with OEConnection, we maintained the repair facilities’ parts margin. We know how important that is.” He added that “there is no standard platform for parts, and we think it will benefit the insured.” Avery said that after putting out a request for proposal and selecting PartsTrader, they spent over a year developing the format. “We asked repairers, dealers and suppliers to help us build this tool, and they did. We just concluded our feedback phase last week with repairers and are evaluating that now.” He also stressed what the insurer did not expect: • “We didn’t expect e-mails, calls and faxes with misleading information.” • “We didn’t expect press releases mentioning non-Select Service repairers who we didn’t have contact with.” • “We didn’t expect to lose 17 facilities in one pilot area who never tried [PartsTrader].” • “We didn’t expect statements from Select Service shops that never used [PartsTrader].” Avery emphasized that State Farm is still in pilot mode, concluded the feedback phase from all the pilot shops during the week of July 9–13 and are

now in an evaluation phase. Avery concluded his presentation by saying, “It boils down to trust. Those who repair cars make a decision about who they want to partner with. State Farm is driven by the customer. Those who fight to maintain the status quo will become irrelevant fast. I don’t think we were number one for 90 years by beating up our business partners.” “Good businessmen and women need to speculate,” Avery said at one point. “They need to look forward to determine what the next step is. What’s dangerous is to speculate on faulty information, or misinformation.” PartsTrader CEO Cooper followed Avery with a brief presentation showing how the program works. He said he understood the skepticism of the industry, but wanted to assure repairers that PartsTrader’s interests were in the right place. “We’re 100 percent committed to making this product the best for parts procurement, and making it a win for repairers,” said Cooper. Cooper then ran through a demonstration of the product and commented specifically that: • The suppliers in the system are in there because the repairer invited them to join. • They have integrated with the three information providers (CCC, Mitchell, Audatex). The files they get from them are EMS, but they convert them to BMS. Therefore, they’re not seeing any information that is not directly applicable to parts. “The two functions of PartsTrader are parts sourcing and ordering,” said Cooper. “You can do direct order now if you want, but if you do have time, the expectation is that you’ll get quotes. But it’s completely under the repairer’s control.” About 20 repairers, association leaders and consultants spent the next 90 minutes questioning and criticizing State Farm’s pilot program. None of them spoke in favor of the program. Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, was the first person to address Avery and Cooper. He said other parts vendor companies chose to compete by providing a value proposition, and let the customers choose to use their service based on merits and value. He emphasized that the backlash against PartsTrader isn’t about the product so much as it is how it entered the market.

18 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

“SCRS and our members aren’t opposed to [PartsTrader] for the sake of opposition. We don’t have an issue with electronic parts ordering, [our members] already do that. We believe there are a large number of solutions out there that already incorporate electronic parts ordering. We don’t oppose efficiency and process improvement… we don’t oppose innovation.” “What we do stand in opposition [to is] when insurers mandate solutions that don’t bring solutions to anyone other than themselves and the benefit isn’t derived or understandable by anyone other than the person mandating it,” he said. “For a company who has promoted open platforms in other areas, who’s taken estimates from all three carriers, who’s worked hard to make sure the repairer had the opportunity to use whatever systems and processes and solutions they wanted, this is a step backwards for [State Farm]. “Companies here choose to compete: here’s our product and here’s what it does,” said Schulenburg. “The real issue here isn’t that PartsTrader has a solution; it’s about how it came to the market. The largest insurer hired [PartsTrader] to come up with a solution for them – that’s the problem.

“We won’t refuse [the product] for the sake of refusing. We don’t oppose innovation. We have yet to see the benefit for repairers being forced to use it. When insurers mandate solutions where there is no tangible benefit for anyone but themselves, I think it’s a step back for State Farm. It appears you entered into the market knowing what you wanted to do regardless of repairer feedback. The need doesn’t seem to be there on the repairer side, but it does seem to be there for insurers.” Dave McBroom, president of the Florida Auto Body Collision Alliance and also representing the Florida Automobile Dealer Association, said bluntly that the program is a failure. “I’ve spent extensive time with shops and vendors, some involved with the pilot program and some not, that are trying to make a decision on what to do,” he said. “I’ve spoken to many who have said it is inefficient, cumbersome, creates additional work, and requires additional personnel at shops and at vendors. Most are losing gross profit dollars. Some refuse to participate in the bidding process. Used parts bidding is a total disaster. This is not good for this industry.” See PartsTrader Pushback, Page 35

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WIN Offers Professional Development at NACE

The Women’s Industry Network (WIN) will offer professsional development classes at the International Autobody Congress and Exposition (NACE) during Automotive Service and Repair Week (ASRW) in New Orleans, Oct. 1013, 2012. The organization, dedicated to engaging women in the collision repair industry, will have an informational booth (N1518) where attendees can discover more about WIN and join the organization. “NACE is the perfect venue to share WIN’s mission of supporting women in the collision repair industry,” said Terri Neely, WIN board member and co-chair of the NACE Planning Committee. “It provides a great opportunity to network with women from across the country and introduce them to WIN and all the wonderful benefits we have to offer.” WIN will host the Women’s Professional Development Track of classes at NACE. These classes, presented by notable professionals, are open to all attendees and cover topics including leadership, networking, personal communication and professional development within the collision industry.

Advanced Car Technology Reduces Frequency of Crashes Says Study A new study shows advanced auto technologies such as forward-collision avoidance systems — especially those that brake automatically — result in sharp drops in car crashes. The Insurance Institute for Highway Safety said forward-collision systems and adaptive headlights, which shift direction as the driver steers, has the biggest impact in reducing accidents. The study by the industryfunded group also found that lane-departure warning systems appear to hurt, rather than help — though it’s not clear why. Other systems, such as blind-spot detection and park assist, aren’t showing clear impacts on crash patterns yet. “As more automakers offer advanced technologies on their vehicles, insurance data provide an early glimpse of how these features perform in the real world,” says Matt Moore, vice president of the Highway Loss Data Institute, an affiliate of IIHS. IIHS examined forward-collision systems offered on Honda Motor Co.’s Acura vehicles, Daimler AG’s Mercedes-Benz and Volvo vehicles. Property damage claims for Acura and Mercedes models were 14 percent lower when vehicles were

equipped with forward-collision warning with automatic braking than when they weren’t. Collision claims for vehicles with adaptive headlights fell as much as 10 percent. “These lights appear to help in more situations than we anticipated, though we don’t know why,” Moore said. Mercedes and Volvo also offer versions of forward-collision warning systems that don’t include automatic braking. These appeared to lower crash rates, too, but not to the same extent as versions that do include it. But a review of claims in General Motors’ Buicks and Mercedes vehicles for claims from lane-departure systems showed claims from vehicles with the systems actually increased, although in numbers so small as to be statistically insignificant. IIHS said drivers may be getting false alarms because of poor lane markings, which rely on cameras to track lanes. It takes a long time for advanced safety features — which typically begin on luxury cars — to reach all cars on the road. IIHS estimates it takes at least 30 years for a promising safety feature to spread to 95 percent of vehicles on the road.

The National Highway Traffic Safety Administration has been studying forward-collision warning systems since 2010. NHTSA said this week it is researching braking technologies that rely on “forward-looking sensors” to supplement driver braking or to engage automatic braking in response to an impending crash. The agency believes these technologies show promise for enhancing vehicle safety. NHTSA has mandated significant safety equipment including front, side and side curtain airbags, safety belts, electronic stability control, and tirepressure monitoring systems. The government is considering requiring rear-visibility cameras. Not all safety equipment is mandated or has shown safety benefits. Antilock brakes, for example, spread quickly through the U.S. fleet even though they’ve never been required. IIHS notes that despite promising results on test tracks, real-world crash data haven’t shown large benefits. But antilock brakes are essential for electronic stability control systems, which help prevent rollovers and other crashes.

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GM to Recall 413,418 Cruzes Made in 2011 and 2012 GM says it will recall a total of 413,418 Chevrolet Cruze cars in the U.S. from the 2011 and 2012 model years to fix a problem that could lead to an accumulation of automotive fluids in the engine compartment. It’s the car’s fifth recall in the past two years. The company said fires can break out during engine oil change procedures. Oil spilling or dripping onto hot parts of the engine, exhaust-system or the engine shield could cause the shield to ignite and fire could spread in the engine area. The company knows of 30 fires caused by the problem, but no injuries have been reported, spokesman Alan Adler said. Flames engulfed and destroyed cars in two cases reported to federal safety officials. GM said it will modify engine shields under the vehicles to prevent fluids from being trapped. GM is notifying owners about the repairs, which are free and should take about 30 minutes.

Isuzu Recalls Rodeo Sport, Amigo SUVs for Rust Risk

More than 11,000 Isuzu SUVs are being recalled because parts in the rear suspension can rust and break away from the frame. The recall affects Amigo SUVs from the 1998 to 2001 model years and Rodeo Sport SUVs sold as 2001 and 2002 models, the National Highway Traffic Safety Administration said in documents posted on its website. Isuzu said the rear suspension link brackets can rust and become detached from the frame. The problem can hurt the vehicle’s handling and cause a crash, but it was unclear if there have been any wrecks or injuries. The recall covers SUVs sold or registered in 21 states and Washington, D.C. Those are places where salt is used to clear the roads. Salt can cause metal to rust.

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Honda Recalls 172,200 US Vehicles for Faulty Doors

Honda is recalling 172,200 small SUVs and cars in the U.S. because the doors may not close. The recall affects 166,000 CRV SUVs from the 2012 model year and 6,200 Acura ILX small luxury cars from the 2013 model year. Honda says that if the inside driver or passenger door handles are used at the same time as the power or manual door locks, the inner door latch may not work. This means a door may not latch, or it could latch and open when the locks are used. The company says no crashes injuries have been reported because of the problem. Honda says dealers will inspect the cars and fix them if needed. Owners should get letters from the company starting in mid-August

Audi Recalls 13,000 Q5 Crossovers for Faulty Glass

Volkswagen, the corporate parent of Audi, will recall over 13,000 Q5 crossovers because the front glass panel on its panoramic sunroof may shatter in extremely cold temperatures. In a filing posted to the website of the National Highway Traffic Safety Administration, VW said it was made aware of the problem last winter by dealers who reported that the front glass panel on some Q5s had broken. Subsequent laboratory testing of the sunroof panels at temperatures as low as -40 indicated that the glass on some units might separate from the surrounding frame, potentially causing the glass to shatter. If the glass were to break with the vehicle in motion, the glass could injure passengers and cause a potentially hazardous distraction for the driver, the automaker said. On June 20, VW decided to conduct a recall. Andrew Lipman, an Audi spokesman, wrote in an e-mail that there were no known accidents or injuries attributable to the defect. VW said that beginning in early August, dealers would replace the front glass panel on the affected vehicles.

22 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

August 2012

Ford Recalls 2013 Escapes for Engine Fire Danger, Previously Carpet Potentially Interfering with Braking Ford Motor Co. is telling owners of one version of the brand-new Ford Escape not to drive the SUVs until dealers can fix fuel lines that can crack and spill gasoline, causing engine fires. The company issued the unusual warning on July 19 and said it is recalling 2013 Escapes equipped with 1.6-liter four-cylinder engines. Dealers will pick up the Escapes and drop off a loaner car that customers can use until the repairs are finished. The company is hoping to ship parts and get all the SUVs repaired in the next two weeks. Ford says it has three reports of fires: two at the factory and one while a customer was driving an Escape. No one has been injured. The recall affects 11,500 Escapes in the U.S. and Canada. Only 4,800 have been sold to customers. The rest are on dealer lots and will be fixed before they are sold, spokeswoman

Marcey Zwiebel said. “We are obviously taking very quick action in the interest of our customers’ safety,” she said. Escapes powered by other engines are not affected, nor are other Ford models with 1.6-liter engines, Zwiebel said. This is the second recall of the redesigned Escape, which went on sale in June. On July 14, the company said it would recall more than 10,000 Escapes to fix carpet padding that could interfere with braking. The new version of the SUV is among Ford’s top-selling vehicles. People bought 28,500 Escapes last month, up 28 percent from June 2011. Ford says owners should call dealers to get the problem fixed. If parts aren’t available, dealers will drop off loaner cars for use until the repairs can be made. Once the parts arrive, it will take less than an hour for technicians to replace the fuel lines, Zwiebel said.

Lexus is Latest in Toyota Pedal Entrapment Recall

The long, nagging problem of reports of unintended acceleration and sticky pedals just won’t go away for Toyota Motor Corp. The Japanese automaker expanded its 2009 recall of vehicles for pedal entrapment to include 154,000 model year 2010 RX 350 and RX 450h (hybrid) SUVs from its Lexus luxury line, the first new recall for the issue since early 2011. The automaker told National Highway Traffic Safety Administration that it is still seeking a fix for the Lexus vehicles. “We are aware of 12 reports of accidents and two reports of minor injuries that may have resulted from this condition,” Toyota spokesman Brian Lyons said. This is the third expansion of the recall. Toyota has now recalled more than 7 million vehicles to address the issue since November 2009, when it first recalled 4.5 million vehicles. In total, Toyota recalled more than 10 million vehicles to address trapped pedals and sticky accelerator pedals. NHTSA said it was urging “consumers impacted by the recall to immediately remove the floor mat and

have their vehicles serviced promptly.” The government safety agency said it approached Toyota regarding this most recent condition in May, “after the agency observed an increase in consumer complaints and other reports regarding pedal entrapment in these vehicles. When Toyota confirmed last week it had received a significant volume of complaints on the same issue, NHTSA asked the manufacturer to conduct a recall.” Toyota said, “The remedy plan is under development, but will involve modification or replacement of the accelerator pedal and replacement of any Toyota-designed all-weather floor mat not specified for the vehicle.” The 2009 recall initially covered 2004-10 models because the accelerator pedal can get stuck wide open by an unsecured or incompatible floor mat. That remedy was different than the November 2009 entrapment recall, so if both versions of pedal entrapment are counted, Toyota has recalled 7.8 million vehicles. The government already has imposed fines of nearly $49 million on Toyota for failing to conduct three separate recall campaigns in a timely manner.

Gonzo’s Toolbox

Problem on the IN-Side with Gonzo Weaver

The tow truck came around the corner of my shop with a 2003 Focus strapped down on the bed. It’s Stacey’s daughter’s car. Stacey is the office manager at the body shop just down the street from my shop. Her daughter’s little Ford had called it quits at a stop sign for a trip on the back of a tow truck. Now it was up to me to find out what’s going on. The tow driver brought the keys in to Katie (my daughter and office manager), she had already talked to Stacey and had the work order filled out. Katie asked the tow driver, “Where did you drop it at? Stacey said it won’t start.” “It started great for me,” the tow driver said, “I put it along the side of the building for ya.” I found the car right where he left it and I’ll have to admit, it did start up, but I wouldn’t call it great. I made it into the service bay with it bucking, jerking, and coughing like

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

crazy, along with a terrible rotten egg smell coming from each end of the car. The service light was on so I thought I would start with finding out what trouble codes were stored. P0300, P0301, P0302, P0303, P0304, and P0316 - all misfire codes. It’s a good thing it didn’t have any more cylinders because I’d bet it would have added them onto its list of trouble codes too. Rather than get into looking at the actual data logger section of the IDS, I figured I’ll open the hood and see what’s going on. The car has the 2.0 liter ZETEC engine under the hood. It’s a fairly easy engine to pull the spark plugs on so I thought I would at least take a look at them. The odometer shows 184,000 miles on the little pavement pounder, so I was thinking the worst, that many miles… hey, anything is possible. As I pulled the first sparkplug boot off, a splash of coolant

came out of the cavity. Well, that’s a little different, didn’t quite expect that. I pulled #2, same thing. Then the next one, again more coolant, and only the very tops of the spark plugs was sticking out. There were no signs of any kind of leaks anywhere on the engine, in fact, the reservoir was full and the engine showed no outward signs of overheating. It just didn’t make any sense how all this coolant could end up in there. I blew all the coolant out, dried all the plug wires off, and re-installed them. After giving the key a turn the little engine came back to life and purred like new. Amazing, simply amazing how well it ran considering how badly it came into the shop. But within 15 minutes or so the engine started to act up again. It coughed and chugged, shucked and stuttered, and then it finally died. Now it won’t restart, what the? What’s going on here? Time to check a little further… I pulled #1 spark plug. It was bone dry, actually “very dry” and “very hot.” Exhaust gasses, I’ll bet. I let the car sit for about another 15 minutes and tried it again. A quick turn of the key and it ran like new just as before, but this time I was ready for it. I had it hooked up to the scanner and checked out the O2 sensor readings. It was just as I suspected. The front O2 readings were a complete mess. There was no pretty oscillating wave going up and down on the screen, more like a jagged old saw blade with half its teeth missing. I watched the scope patterns for several minutes, soon the engine started to cough and die just as it did before. I checked the compression this time. Well over 200 PSI, yikes! Looks like all those misfires added up to a lot of raw gas going into the converter. With all the plugs firing now the converter was only getting even more cooked than before. I filled Katie in on everything I had found. She can handle it from here. I was expecting Katie to come out and tell me to order a converter, or send it to the exhaust shop, or drop what I’m doing because it was going to be more than she wanted to spend

on it… something like that, but that didn’t happen. Somehow the word “IN” had more meaning to it than originally intended. Before I knew it a call came from Stacey, she was going to have a new engine installed. Huh? I didn’t know I was putting a motor in. think I missed something here. So how in the world did a clogged converter turn into a new engine? It was the very first thing Katie had told Stacey. Katie said to her, “He found coolant in the spark plug area.” Even though she mentioned that I blew off all the coolant that was on the sparkplugs, somehow it got turned into a leaking head gasket. (I think the guys at the body shop were helping out with the diagnostics.) It took the better part of the afternoon to get the whole thing straightened out. Katie asked Stacey how the coolant ended up in the spark plug area. It was from a coolant hose that had split about two weeks earlier. Stacey’s daughter had someone change the hose for her, but they never thought about looking for any coolant getting trapped on top of the engine. My guess is it probably took a day or so before it ever started to miss. About then the service light would have come on and the real trouble would have started to build. I’ll bet she drove around with it misfiring for a week or so before she told her mom how bad it was. Katie explained the mix-up to me and how everyone had the wrong idea about the engine’s condition. I can’t blame anyone for all of this. In most cases, when someone hears there is coolant “in” the engine they assume it’s a bad deal and most likely in the combustion chamber causing major problems. Well, in this case, it was only “ON” the engine and not “IN” the engine. A new converter installed and everything is back “IN” great shape again. I’ve got to make a point of explaining things a little better next time. My bad, I made the assumption that everyone knew what I meant See The IN-Side, Page 33

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 23

Rhode Island Gov. Chafee Vetoes Auto Body Bill for Insurers Rhode Island Governor Lincoln Chafee vetoed a bill that would have allowed auto body shops to sue insurers, citing the bill would have sent car insurance rates soaring in Rhode Island. The legislation called for setting standards for declaring a vehicle a total loss if the cost to repair the vehicle is less than 75 percent of the value of the vehicle; require an insurer to negotiate payment for auto body repairs in good faith; and allow private rights of action by auto body shops against insurance companies. Gov. Lincoln Chafee said in a news release, “No other state in the nation allows auto body shops to set repair prices outside of the marketplace, determine whether a vehicle should be totaled without the input of the consumer and the insurance company, or to be an outside third party now authorized to effect an existing insurance policy between a consumer and an insurance company.” He continued, “I believe this bill would hurt Rhode Island consumers by raising their auto insurance rates and impairing their existing contract agreements with their insurance companies.” Earlier in June, the proposal to allow auto body shops to sue insurance companies that do not pay them what they believe they should be compensated for repairs generated a fiery, hour-long debate on the floor of the state House of Representatives. The bill ultimately passed the 75-member chamber on a vote of 38 in favor and 20 against. However, Governor Chafee vetoed the controversial bill approved by lawmakers that would have given auto body shops the right to sue auto insurance companies if negotiations do not lead to an “agreed price.” Supporters, including Rep. Stephen Ucci, a Johnston Democrat and the bill’s sponsor, repeated the mantra that the bill would “level the playing field” between local auto body shops and auto insurance companies and ultimately be good for Rhode Island drivers. But other lawmakers voiced concern that the proposal would only lead to higher auto insurance rates in Rhode Island, which already has among the highest rates in the nation. Rep. Robert Watson, R-East Greenwich, called the proposal “special interest legislation” put together “on the fly.”

“This is why we deserve criticism,” he said. “Nonsense like this plays out in the final days of the session. This is wrong.” A statement released by the Auto Body Association of Rhode Island (ABARI) said, “Though [Chafee’s] veto message states that he is concerned about the consumer, he clearly put the consumer and small business’s interests aside and bowed to the pressure of the real ‘special interest group’ —the billion-dollar insurance companies. Over 200 auto body repair shops have gone out of business in the State of Rhode Island in just the last decade. We’re in a crisis that hurts the consumer. This veto is just another example of why Rhode Island is considered one of the least friendly to small businesses in the nation. “ABARI has fought to pass laws that protect consumers and small business from insurers who care only about their bottom line. H-7782A was no different. Insurers always claim that rates will go up, regardless of the legislation’s substance, because it’s the last scare tactic they have left. The truth is collision premiums have been declining in Rhode Island, the opposite of their certain predictions. “As we have for almost two decades, ABARI will be back next year to continue to expose the lies, reveal the truth, and fight to ensure that consumers receive a safe and quality repair, and that small businesses can thrive in the State of Rhode Island. We will continue to educate the consumer, the legislature and the Governor’s office on the unfair and deceptive practices used by insurers on a daily basis —practices that benefit only the insurers.” The Property Casualty Insurers Association of America (PCIAA) applauded the Governor’s decision, calling it a victory for consumers. “Governor Chafee’s veto of H7782A represents the triumph of everyday Rhode Island consumers over well-connected political insiders,” the PCIAA stated. “The governor carefully considered the legislation and rejected this latest attempt by a group of body shops to further increase their revenues at the expense of Rhode Island drivers. We applaud the governor for taking this important stand against special interest legislation and the politics-as-usual approach which fails to protect the

24 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

people’s interests. “Residents in Rhode Island already pay among the highest auto repair bills in the nation, and H-7782A could have driven costs even higher and possibly jeopardized driver safety by forcing vehicles that should have been totaled to be repaired. The bill would have ultimately provided a body shop a blank check to charge whatever it wanted and deprived insurers of the ability to negotiate a fair price by threat of litigation. No other state in America requires such a onesided arrangement, and in the end, the consumers would be the ones to lose out. “This legislation was a dramatic overreach by the body shops. We hope this veto sends a strong message that enough is enough. It is time to put an end to the body shops’ legislative agenda which has caused the average repair cost to accelerate at a rate more than twice the national average.” The American Insurance Association praised Gov. Chafee for vetoing “reckless auto body legislation.” Gary Henning, Northeast region vice president for the American Insurance As-

sociation (AIA), said: “AIA commends Gov. Chafee for vetoing H. 7782A, legislation which represented poor public policy that would have led to an explosion of litigation. No other state in the nation allows auto body shops to set non-negotiable rates and attempt to force them on third party payers under threat of litigation. Rhode Island is already one of the most expensive states in the nation for auto body repair and this bill would have made the problem even worse. “Governor Chafee stood with consumers by taking a stand against this bill. The governor’s veto protects policyholders from increased repair costs and increased litigation.”

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 25

Shop Showcase

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

Collision Repair is an Art Form at Uptown Body & Fender with Ed Attanasio

When people see the facility at Uptown Body & Fender in Oakland, CA, for the very first time, they’re usually pleased, confused and definitely intrigued simultaneously. “This is a body shop?” they ask. “It looks

Co-Owners Lisandro Allendre (left) and Giovanna Tanzillo have owned and operated Uptown Body & Fender for two decades

as 12-15 per month, in some cases. Co-Owners Lisandro Allendre and Giovanna Tanzillo started Uptown Body & Fender to create a place where its customers could come and “forget why they are here,” according to Tanzillo. Both owners are servicefocused and well aware of the fact that the customer experience is just as vital as the repair, Allendre explained, but their connection to the community is just as important. “We’re very concerned about doing the highest quality of repairs we can, but in the end, we also value our role in this neighborhood,” Tanzillo said. “Over the years, we’ve been able to help so many people by loaning our facility to non-profits and by encouraging local artists to display their works here. As a result, we’ve become a part of the creative scene here in Oakland. We believe in doing more than repairing cars, because we want to be more than just a body shop and valuable to the community.” The Uptown district is a formerly depressed industrial area in Oakland that has recently undergone a lot of changes and today is a Mecca for new restaurants, cafes, performance spaces and art galleries. Right smack in the middle of it all, Uptown Body & Fender has become an integral part of this burgeoning scene, Tanzillo explained.

like an art gallery or a really nice coffee house!” they say. Some have called Uptown Body & Fender the “anti-body shop” and one magazine understated it as “out of the ordinary.” All of the above are accurate descriptions of this amazing shop that pipes in classical music, features a chic interior design and has an espresso/tea bar for its customers and visitors. Since it opened its doors in 1992, Uptown Body & Fender has been fixing cars Uptown’s amazing blue and gold “Car-Beast” contains all and providing its facility to of the shop’s offices and has been lauded in several publilocal non-profit and arts cations for its sleek and unique look community organizations for fundraisers, showings, performances “It’s an exciting time for this area, and meetings. If you check Uptown’s because it’s going through changes monthly schedule by signing up for and in a good way. We have a place their email newsletter online at that stores classic cars right next to us www.uptownbody.com, you’ll find and nine art galleries around us. We events such as the First Friday Art love being here, because every day is Murmur, silent auctions, jazz perdifferent and the people we encounter formances and much more—as many are wonderful, vibrant and creative in-

26 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

dividuals and we feed on that type of energy.” The body shop’s sleek and original design was created by Oakland’s Ace Architects, and it’s been praised in publications such as World Architecture News and San Francisco Chronicle

piece of Uptown’s shop and surely a conversation starter for first-time customers coming through the door. Tanzillo started her career in collision as a bookkeeper for an auto body shop in downtown Oakland in 1978. Her late husband at the time was in the insurance business, so he helped her to get a job at a busy shop and find relief from their four teenage children, she said. After learning the business while working there, Tanzillo started Uptown Body & Fender with her business partner Lisandro Allendre 20 years ago. He is a body man with more The interior of the “Car-Beast” looks more like a high-end than 50 years of experience café than a body shop office and together they’re a formagazine. An enclosure that contains midable team. She runs the office, inall of the shop’s offices is called the teracting with customers and making “Car-Beast.” It’s a steel enclosure that them comfortable about the repair looks like a truck that married a tank. process, while he operates as the This amazing structure is the centerSee Uptown Body & Fender, Page 31

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Inside Insurance

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

With Estimates, Insurers See the Emperor’s Underwear with The Insurance Insider

Emperors and underwear? Referencing royalty’s skivvies in an article about body shops? Everyone in the kingdom thinks that the shops represent the peasants, while insurers are the heirs to the throne. Rumor has it that a CEO from one of the top three insurance carriers in the U.S. is a second-cousin to the Queen of England. If that’s true, as royalty, there are privileges that we insurers are entitled to that quite frankly shops aren’t. What is it exactly that us royals get that most of my readers don’t? I’m not talking about “money,” although I suppose there may be some merit in that response. What insurers get is tons and tons of data. If we don’t have it, we can get it. Just like that gentleman in the red suit who is recognized by his “Ho, ho ho,” we know if you’ve been naughty or nice. We also know who writes a good estimate and who doesn’t. We also see the Emperor’s Un-

derwear. That’s right, we see your BVDs, Fruit of the Looms, or whatever your brand of choice is. We see and know what you don’t want us to know. We know that the customer matters—and I’m not referring to cus-

tomer service. I am referring to the fact that the customer matters when you write an estimate. I know that the estimate is the one thing that shops claim is more holy and pure than the Pope himself. Shops often say, “The damage is the dam-

age,” “The estimate is the estimate,” “The cost to repair is the cost to repair.” I say that the royal underwear is in need of cleaning. The customer dictates the cost to repair. It’s conceivable that we could have a dozen different estimates from the same shop with different bottom lines to repair the same car. Sadly, you know that I’m right. I also know that Santa Claus isn’t real and the Wizard of Oz is a phony. I looked behind the curtain. I’ve seen. We’ve seen. We all know. Here’s why you know I’m right. If the shop participates in a direct repair program, the labor rate is going to be $x in accordance with the contract. The shop writes x hours to repair a given panel, x to cover the car, and x to blend the adjacent panel. If the shop isn’t on a direct repair program, the labor rate, labor hours,

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cover car, blend time and P-pages will all be inserted into the estimate at a different amount, say, x + y. If the shop is working with an independent appraiser and it’s someone they know, it may be x + y + z. If the shop is doing work for a fleet account, such as rental car company, it will be x – y – y - y. If the customer is paying for the work out of their own pocket and the shop is slow, it’s going to be x – y. If the shop is busy and doesn’t need the work, it’s back to x. If the customer happens to be a neighbor or friend, it’s going to be x – y – z. And if the customer is your mother-in-law, it’s going to be x + y – z, plus a free detail. I could continue, but the point is made. The customer matters. But in case it’s still not clear, let me drive it home faster than a body man priming a See Emperor’s Underwear, Page 28

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 27

On Creative Marketing

Capturing the Tough Ones with Thomas Franklin

I was recently talking with an estimator at a relatively busy shop in my area. I asked what his biggest problem was these days. He said it was the people who came in for an estimate but wouldn’t leave the car. He said no matter how much he promised, he couldn’t close the deal on many of the tough customers. It occurred to me that he might be putting too much faith in the power of words. Some people simply have a distrust of sales pitches, phony promises and fancy words. Maybe they responded to one too many TV commercial promises or a phone solicitor or one of the many over-hyped ads for products that never live up to their promises. So what do you do when you run into one of these supreme word skeptics? I suddenly remembered a Caribbean black fellow who owned a small shop in an affluent white neighborhood and had an almost perfect

record for closing jobs and getting the keys. I asked him how he does it. He told me that because of his color, he had to work harder to win a prospective customer’s trust. He knew they might doubt what he said, so he used several tactics to hold onto a prospective job. He would often bring his top body man out to give a professional opinion on what needed to be done. He might also take a prospect into the shop and show him or her some jobs in progress and a couple of recently competed jobs. If that didn’t close the deal, he had one final strategy. He would have his body man come out and actually buff out a scratch or two or make some minor repair right on the spot. Then he’d have the customer touch a buffed out area to feel how smooth the surface had become. He said when a customer would see how serious he was about going the extra mile, they would almost always let his shop do the job.

Continued from Page 27

How do we know this? Data, and lots of it. Almost every decision you make when writing an estimate is decided by who is paying the bill. This is the sad reality of the business. The damage is never just the damage. That’s the “Emperor’s Underwear” in this industry that nobody is supposed to see. And the actual cost to repair that vehicle? “Well, it all depends.”

Emperor’s Underwear

10-hour repair on a quarter panel after the shop has been notified that an adjuster is coming out to see the vehicle. That “8-hour repair” on a quarter panel becomes five hours for the rental car company, two hours for you mother-in-law, six hours to your friend, nine hours if an independent appraiser comes to your shop, 10 hours if the insurance company is reducing the refinish time on a repaired panel, 11 hours if you know the reinspector from the insurance company is going to hack the estimate, and seven hours if it’s a customer-pay job.

SCRS Says PartsTrader Has Sparked Four New Industry Associations: UT, ID, AL, and TX

According to Aaron Schulenburg, president of the Society of Collision Repair Specialists, concern over State Farm’s parts bidding program has caused a spike in their membership and prompted the formation of at least four new auto body associations. New associations have popped up in Utah, Idaho, Alabama and Texas. Though the banding together of shops is primarily a de-

fensive action against State Farm’s online parts bidding and ordering program through PartsTrader, Schulenburg said it was good to see more unification in the industry. “For that, I thank both State Farm and PartsTrader,” Schulenburg quipped. “I can tell you that I’ve had the pleasure of talking to a lot more repair shops that I haven’t had the opportunity to speak with before.”

28 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

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

It occurred to me that another reason for his show-and-tell success with some of these people is the fact that nationally, about 28 million people have some sort of hearing loss. And there are probably another million or so who have English as a second language. And then there is the possibility that the prospective customer’s mind is distracted. Perhaps he or she is still emotionally tied up in recalling the accident. It’s possible that many estimators mistakenly think that their prospective customers have heard what they were saying. And even if they did hear it, how many might not have understood what they heard? My Caribbean friend’s show and tell – and possibly touch – approach to selling the job could have somehow bypassed these comprehension limitations and reached the prospective customer on a different level. There are several major ways people receive and process informa-

tion: the usual auditory method of listening, plus visual-verbal (reading words), visual non-verbal (simply seeing an object), and tactile (also called kinesthetic). Kinesthetic people mostly respond to real-life situations or objects they are able to touch and feel. These people perceive best by experiencing or doing things. It would seem some other industries make use of this information. Miller & Associates (Dallas, Texas) excels as a premier provider of sales, customer service, and support to the foodservice equipment industry. They say they view themselves as the customer’s best conduit for information. They say they take a tactile approach to sales by encouraging touching every channel in which equipment is supplied. Through this kind of education and after-the-sale service they say they thrive with end-users like schools, chains, and institutions.

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A visual and tactile approach has also been used to improve driving skills. Usually we steer a car using mainly visual information to perceive the road’s shape and bends. One professional driving school went beyond this usual approach and developed a driving simulator with visual and/or tactile information guides. These were used to virtually present the drivers’ lateral position and to enhance their steering performance. The tactile guide improved driving accuracy more than the visual guide, proving that the tactile information of the virtual position of a car is the more useful for assisting and improving a driver’s performance. The estimator doesn’t have to get into these technical details on why a prospective customer will respond better to a visual and/or tactile presentation than to a predominantly talking approach. Just knowing it is possible to have this alternative to the usual estimate delivery should improve closing results. And there should be some satisfaction in knowing the prospect won’t be turned off by distrust of what he or she thinks may just be exaggerated sales pitches and phony promises.

Continued from Page 16

Patent Law Change

OEM replacement part is the standard Frayer said NSF uses OEM replacement parts – rather than those originally sold on the vehicle – as the standard because it has found examples of variation between OEM replacement parts and the original parts. He cited an example of bumper absorbers for a Ford Mustang. “What we found was there was a huge difference between the OE part and the OE service part,” Frayer said. “It’s obviously a change made by the manufacturer. The vehicle was introduced with one set of requirements for the absorber, and then they changed to a different set (of requirements). Our thinking is that, generally speaking, the OE service part represents what the manufacturer’s latest thinking is as to what is needed for that vehicle.” Frayer said NSF has not received a single verified complaint about a certified part. “We’ve had three complaints to date that I’ve been made aware of,” Frayer said. “One complaint was due to some shipping damage. One was a part

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that was actually shipped to the body shop as a certified part but as it turned out it was not a certified part. And the third one was a part that reportedly did not fit the application. We were not able to get the part back. But through some pictures that we received, we were able to verify the lot number of the part. We acquired another part from that same lot, put it on a vehicle and verified that it did fit. So we were not able to verify that there was a problem with that part.” Frayer said anyone with concerns about a NSF-certified part can notify him directly through NSF’s website (www.nsf.org), or “there should be some indication on the part or packaging itself who you would contact relative to a complaint.” Frayer said the problem of shops receiving a non-certified part when a certified part was ordered is something NSF’s parts distributor certification program is designed to address. Separate from the parts certification program, the distributor certification was launched last year. Three companies – LKQ Corporation, PartsChannel, and most recently Michigan-based Micro Platers and Paint—have earned the NSF distributor certification, and Frayer said about a half-dozen other

distributors are in “various stages of discussion with NSF regarding getting certified.” A certified distributor can sell any parts, whether those parts are certified (by NSF or CAPA) or not. A distributor can be certified, however, only if it (among other requirements) picks up return parts from customers within two business days (for customers serviced daily); has a system of tracking returned parts confirmed to be defective; evaluates on a case-by-case basis reimbursement of a shop for labor associated with the sale of a defective part; and has a tracking and recall procedure to support a manufacturer’s recall of safety-related parts (hoods, lights, radiator supports and bumper parts). One of the keys to the distributor certification program, Frayer said, is ensuring that distributors have a system in place to ensure that a non-certified part is not substituted when a certified part is ordered.

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YouTube is a Valuable Sales Tool for Body Shops by Ed Attanasio

Many body shop owners who have already embraced social media are reluctant to use YouTube to promote their businesses. They feel likes it’s too expensive to produce videos and many claim they don’t have anything to say to their customers. But, once they try it, body shops are reporting positive results via YouTube, with increased traffic to their websites, blogs and other social media sites. They’re tracking new customers from their YouTube videos and discovering the value in these short, informational clips—ranging in subjects from “How to Spray Waterborne” to “Online Estimates” and all the way to things such as humorous TV commercials and interviews with customers, painters, body men and even front desk people. The simple fact is that most successful YouTube videos aren’t professionally produced and involve just one person talking to a camera. They’re shot with inexpensive equipment, without special effects, high-tech sound or any lighting more than sunshine or the artificial light emanating from the light bulbs in your shop. Shop’s normally use employees and friends in their videos and usually the pay is: 1) Continued employment and/or 2) A free lunch. Here are five main things to consider when producing YouTube videos to promote your business: 1) Know the Market Spend a few minutes going through YouTube to see what other collision repairers, vendors and jobbers are doing on the site. You will find the videos that do the best are generally funny, upbeat and/or offer useful information. Think either comical or instructional or maybe even a combination of both. Find out what videos in your market have attracted the highest number of views, favorable ratings, most subscribers and best comments and try to figure out what they’re doing right. 2) Use Keywords Galore The easiest (and cheapest) way to direct potential customers to your videos on YouTube is by incorporating carefully selected keywords and inserting them in the title, description, and tags of your videos. To find new keywords, use the Google Keyword Tool to devise variations of your keywords for additional tags.

3) Create Your Own Channel and Make Playlists Prior to uploading your videos, setup your own YouTube Channel, including a profile and a graphic look you devise. Always include a link to your web site, blog, Facebook page and Tweeter hash tag. Playlists are a great way to get your videos watched by a lot of people. To assemble one, add your videos to a new playlist and incorporate other peoples’ videos dealing with the same topic. Then, select a catchy name that will help people to find them through a search. By assembling a library of videos, you can attract more people and hopefully keep them engaged longer. 4) Use Multiple Calls to Action If you don’t ask, you won’t get it. Sure, they like your video, but how can you get them to respond? Here are some calls to action that are all available on YouTube and can be used to get your visitors more involved: •Please rate this video. •Follow me on Twitter. •Find me on Facebook. •Subscribe to my videos. •Visit my blog for more great videos. •Embed this on your site. •Please post your comments. •Send this video to your friends. •Check out my channel. 5) Promote Your Videos Uploading videos to YouTube isn’t enough. You need to promote them. These are some ideas: •Ask people you know to share their lists and contacts. •Embed your videos in your blog. •Email your YouTube link to your friends and contacts. •Write an article about your video and post it to article directories and forums. •Post your video on LinkedIn, Facebook, Twitter and other social media forms. So, now you’ve done a few or all of these things and here is the million dollar question—will you get any results and most importantly, will you attract new customers? Well, rest assured, because the final answer is an emphatic yes. I recently sifted through a wide range of YouTube’s body shoprelated videos and was able to find several shops in different parts of the country that have garnered a ton of views and comments. But, have they

30 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

led to new business and increased revenues? “No doubt,” Rich Villaneuva, the marketing manager at Michael J’s Body Shop in San Jose, CA said without hesitation. “Doing things like Facebook and YouTube have taken us to a whole new level. We know we’re one of the only body shops in this valley that’s doing things like YouTube as intently as we are, and that’s why our organic search results put us right at the top of all the search engines’ rankings. And by polling all of our customers, we know that YouTube is working for us.” By hiring an outside company to help them, Michael J’s Body Shop has been able to attract a lot of direct, nonDRP work, Villaneuva explained. “We’ve been working with a company called Reach Local and they’ve been excellent in teaching us and pushing us in the right direction. Lots of shops get a few DRPs and get complacent, but by doing things like YouTube and linking them to our Facebook page, blog, Twitter, etc.—we’re able to get a fair share of direct business. We never want to put all of our eggs in one bas-

ket, so we’re always looking for that ideal combination of walk-in customers and DRP repairs.” Michael J’s Body Shop has produced four videos and is currently producing more, showing their repair techniques through a series of do-ityourself online tutorials. Villaneuva is pleased to report that making the videos is virtually free, he said. “I do it all myself with a Sony camera and some very simple software to do the editing. I narrate them and don’t let them go over three minutes in length. In today’s society we know that not all of our customers will embrace this form of social media, but we want to attract those who do.” Steve Kendrick Jr., 36, is the owner of Kendrick Paint and Body with three locations in the Atlanta, GA area. He has been doing social media since day one, he said, and doesn’t understand when he hears that most body shops see little or no value in it. “My grandfather started this business in 1952, and I think a lot of shops in this country are still operating with See YouTube, Page 33

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CREF Announces Three New Trustees

The Collision Repair Education Foundation announces the addition of three new Trustees to its Board of Trustees: David J. Brunori, Matrix System Automotive Finishes; James A. Fichera; and William Lawrence, LC Automotive Investments, LLC. Dave Brunori brings over 29 years of industry experience, currently in the role of Executive VP/General Manager with Matrix. He has grown the company from a start-up to over $60M in revenue. Prior to Matrix, he was with PPG Industries for nine years and Lilly Industries for two years, all in vehicle refinish. He currently serves on the Oakland County Technical Advisory Committee in Southwest, MI. He holds a Bachelor’s Degree in Chemistry and a Master’s Degree in Operations Management. Jim Fichera brings over 40 years of industry experience, 23 years with Steel Center A.V.T.S. in Jefferson Hills, PA as a Collision Repair Instructor. Steel Center A.V.T.S. won the Collision Repair Education Foundation’s Ultimate Collision Education Makeover Grant in 2009. The school program completed NATEF certification (one of first in PA). He is an ICAR Welding Instructor and holds a Bachelor’s Degree from Indiana Uni-

versity of Pennsylvania. He believes that education is key to fill the workforce needs of our communities; educating our youth is vital to continue to meet the local and national needs. Bill Lawrence brings over 43 years of industry experience. He is the owner and president of LC Automotive Investments, LLC, which he has held for 8 years. He previously was with Allstate Insurance for 28 years and has spent the remaining 15 years in the collision repair side of the business. He previously served on the Foundation Board and as Foundation Chair and the advisory boards of CCC, Keystone, Nationwide, Safeco, Allstate, and VeriFacts. His company supports various local charities as well as OxFam, World Vision, etc. He holds a Bachelor’s Degree in Marketing. Chairman Northup noted, “The Collision Repair Education Foundation is fortunate to have these three individuals joining the Board of Trustees. Their individual and combined experience will provide a diverse background and knowledge base for our Board. It’s reassuring and humbling to participate with this high level of individuals who graciously give of their time and resources to our worthy cause.”

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Continued from Page 26

Uptown Body & Fender

shop’s production manager, overseeing the repair of approximately 200 cars monthly. “Lisandro and I met while working at Downtown Auto Body and that’s where I learned the business,” Tanzillo explained. “I started out writing estimates and pretty soon the customers thought I was one of the owners. When we left to start our own shop, people asked us, ‘Where are you going?’ I told them there’s only one place to go from Downtown and that’s Uptown!” The shop has received a ton of business by donating their beautiful facility to non-profit organizations, but that’s not why they do it, Tanzillo said. “By allowing non-profits, other community groups and the local art community access to our facility, it definitely creates goodwill and a lot of people who would never know about our shop come here for art shows and fundraisers. We don’t even need to advertise anymore, because people find out about us through these events and through our ongoing involvement

in everything around us.” Karen Sternstein with the Oakland School for the Arts holds an annual fundraiser at Uptown Body & Fender. Without the shop’s facility, her organization’s event might not take place every year, she said. “Giovanna dropped out from heaven to help us. They saved us at least $1,500, which is huge for a non-profit operating on a small budget. I’ve also been to other events held at Uptown Body & Fender, and each time it’s a professionally run operation. These people are special, because they’re not just all about the money. It’s refreshing to know that folks like Giovanna and www.autobodynews.com Lisandro are here in Oakland to give, IT OUT! so many instead ofCHECK just taking—like companies do.”

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Hey Toby!

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@yahoo.com

Matrix Wand is a Game Changer—Part 2 with Toby Chess

This month’s column is Part 2 of the Matrix Wand article that appeared in the July, 2012 issue. See summary of the Matrix Wand’s capabilities at the end of the article referencing photos. If you missed last month’s article, see it at www.autobodynews.com.

support and from the strut tower to 2 points on the bumper reinforcement. In the distance table of the photo, the left side of the bumper reinforcement was longer that the right side. Now, you could not see any damage to the reinforcement, but it was bent according to the measurements. I asked the cuswith David McClune tomer which part of the bumper got caught on the barrier and he stated it was the driver’s side. The shop ordered both the cover and reinforcement at the same time instead of buying the cover and finding out when it was to be installed that the rebar was also bent. It should be noted that parts come from Honolulu once a week. Think of the Figure 1 cycle time savings plus the extra paper A customerwith at Autobody JohnHawaii Yoswickwork and phone calls. Dale Matbrought in his 2009 BMW convertible sumoto, owner of Autobody Hawaii, told me that when they compared the with the front bumper on the passenger seat. It seems that he caught the new reinforcement to the damaged bumper on a concrete barrier in the one, it was very evident that the part parking lot as he was backing up and had sustained damage to the left end. A 2009 Nissan Xterra had been pulled it off. While he was waiting for an estimate, I photographed the car. estimated by an insurance adjuster. Damage was to the right fender, right What I found was amazing. I measured from the strut tower to the core suspension and front bumper cover.

The adjuster wrote the estimate for an A/M fender and cover (Figure 1). The gap on the fender was 3mm larger with the AM fender than the

deed 3mm shorter. The adjustor wrote no frame time on the vehicle. The vehicle was put on a hoist and raised so that I could measure the bottom of the

California Autobody Association

Year in Quotes

Figure 4

original on the left side. I measured both fenders, and in the distance table, the length at the back of the part showed that the A/M fender was in-

Collision Repair Association of CA. with Richard Steffen

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Continued from Page 23

YouTube

The IN-Side

that ‘50s mentality. In the past, if you when I said there was coolant in the worked hard and did quality repairs, spark plug area. (I should have said you’d succeed. But now, with all the “On top of the engine.) Katie knew competition and technology out there, what I meant, but as the phone conit’s a different world. If you’re not into versations went on, the word “IN” social media, computerized systems just kept pushing the coolant deeper that help your business and things like and deeper inside this little Ford. YouTube, you’re already a step behind Katie is a wonderful gal, I got to hand the competition.” it to her; she did a great job of exBy producing 16 videos, Henplaining things. I’m a lucky guy to be drickto Jr. Contribute is dominating YouTube, able to work with my daughter in a Want to this esSouthwest Edition? pecially in Georgia. “When people family business, and even luckier to search through YouTube for a body have her as an asset “IN” the office, shop in Georgia or Atlanta, they’re especially when she can explain going to publisher@autobodynews.com find us first and that’s so things to a customer and get good old important. We hired a person on a dad “OUT” of a jam. part-time basis to handle all of these things, from Facebook to Twitter Promote your business with Promote your business with and creating a YouTube Channel an exclusive article featuring an exclusive article featuring and it’s paid for itself many times over.” your products or services. your products or services.

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3M Makes Major Donations Through Collision Repair Education Foundation

3M has come to the aid of 676 secondary and post-secondary collision programs across the country by several product donations through the Collision Repair Education Foundation. This product donation, valued at $882,800, will ease collision department budgets by providing students with the opportunity to work with upto-date supplies. 3M was able to supply 676 schools with Meguiar’s sanding/finishing discs, headlight and spot repair kit, pistol grip rotary polishers, and other items. In addition, 49 of those schools also received donated vinyl tape packages to aid their collision programs product needs. 3M Automotive Aftermarket Division Business Development Manager Mark Algie said, “3M continues to be committed to all segments of the collision repair industry and through the help of the Collision Repair Education Foundation, we are able to help a lot of great schools, instructors, and students. We value what these schools are all about and what they do to prepare the next generation of techs, estimators and I’m sure some owners for our industry. We will continue to provide resources that will give these

schools the ability to enhance their individual programs and prepare their students for a career in our industry.” Collision Repair Education Foundation Board of Trustees Chairman Chris Northup said, “To put in perspective the level of which 3M has assisted secondary and post-secondary collision schools across the country, since 2009 3M has annually averaged roughly $900,000 in donations through the Collision Repair Education Foundation. Through the letters we receive back from collision instructors, it is apparent that they are extremely grateful and overwhelmed by 3M’s generosity and willingness to assist them in providing up-to-date materials for their school’s collision programs. This will only benefit the collision students’ technical education and collision repair businesses will be able to hire these well-trained students as productive, capable, and efficient employees from day one on the job. On behalf of the Board of Trustees, the staff, and the collision school programs nationwide that have benefited from these product donations, thank you to 3M for continuing to support the organization at such a high level.”

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 33

Former Rhode Island Auto Body Shop Owner Wins $3.27 Million Verdict Against Insurers by Melanie Anderson

Ten years ago, former Cumberland, RI auto body shop owner David F. Miller was wrongly accused of insurance fraud, and after being handcuffed and arrested in front of customers and his children, and losing his license,

insurance fraud. However, all the charges against Miller were dismissed by the Office of Attorney General in 2005 when it became clear that AMICA and Met Life had helped instigate the charges, and had withheld documents that would have undermined the case against him.

David Miller in front of his body shop that his children now own and operate

business and home, all charges against him were later dropped. In an ensuing six-year legal battle to clear his name, Miller finally found justice on May 29 when a Superior Court jury in Providence, RI returned a verdict against two of the country’s largest automobile insurance providers, finding that Metropolitan Property and Casualty Insurance Company (Met Life) and AMICA Mutual Insurance had acted with “malice” and “bad faith.” In finding Met Life and AMICA liable for abuse of legal process, the jury awarded Miller $3.27 million, which includes interest, compensatory damages, emotional distress, legal fees and punitive damages. Miller is now 60 years old and battling a rare form of cancer. According Miller’s attorney, Michael Kelly of the Law Offices of Michael A. Kelly, post-trial motions are scheduled for the end of July “and then we’ll see whether there is an appeal.” On May 29, the jury concluded that the auto insurers acted with “wickedness” when the companies instigated the filing of criminal charges brought against Miller by the Rhode Island State Police in 2002. At the time, Miller was charged with obtaining monies under false pretenses and

Miller’s suit contended that Metropolitan and AMICA abused the legal process by withholding certain information critical in the case from the State Police and the Attorney General. The jury returned a verdict which found that Metropolitan and AMICA had both intentionally withheld vital information during the course of Miller’s criminal prosecution and that the companies were liable for an abuse of process. “The jury found that the insurance companies withheld from the state police and the Attorney General’s Office the fact that cars were not required to be fixed in accordance with their estimate, and number two, that their appraisers were cost-shifting,” said Kelly. “The testimony from the appraisers from both companies was that they would write for newer parts when they knew it wasn’t going to be replaced they wrote for that part to increase the overall estimate to compensate for the low labor rates. Labor rates were fixed by the insurance company. Of course, they wouldn’t negotiate, and since they have an anti-trust exemption, they can just fix the rates, and they all had the same rates and they were all artificially low to try to either force customers to go to preferred shops and/or to try to

34 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

get independent shops to become preferred shops,” Kelly continued. “The jury specifically found that insurance companies didn’t tell the state troopers about the cost-shifting or about the fact that the cars weren’t fixed in accordance to the estimate because body shops weren’t required to. And they didn’t tell that Mr. Miller was sending documents to the insurance companies indicating he wasn’t fixing the cars in accordance to the estimate because the labor rates were too low,” Kelly said. “The jury agreed with us that had the state troopers and the Attorney General’s Office been informed of these facts, the troopers on the stand said they would have handled the case completely different.” As far back as 20 years ago, Miller had been outspoken about what he considered unfair practices by the insurance industry. The testimony and evidence presented during the threeweek trial established that Miller had been a leading advocate in the state legislature for fair reimbursement to auto body shops by insurance companies for many years. Evidence in the case proved that Miller’s advocacy led

to an extremely adversarial relationship with Met Life and AMICA over several issues, including fixed labor rates paid to auto body shops in Rhode Island by insurance companies. “I think that it is clear here that the insurance companies, Met and AMICA, went after Mr. Miller because he was pushing to change the labor rate in the legislature, and they couldn’t find anything that he was doing wrong, so they went to the state police and made scurrilous allegations that weren’t true to get the state police to do their dirty work,” Kelly said. “Unfortunately, because of the withholding of information, the state police went with their suggestion of a sting, and it is truly a tragedy for Mr. Miller. He lost everything. He lost his business, his license, his house, and everything else he owned, cars, everything. He had to transfer his auto body license to his son. His business went down approximately 70% immediately after the arrest.” In its decision, the jury found that AMICA and Met life had acted “with such willfulness, wickedness, or recklessness that amounts to criminality, which for the good of society and

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warning to the defendant, ought to be punished.” In awarding punitive damages, Kelly said it’s always unusual in the state of Rhode Island for a jury assesses punitive damages because the jury has to find conduct that is malicious, wicked and which rose to the level of criminality. “I hope that the jury’s decision will give more individuals and small business owners who have been wronged by corporate behemoths like AMICA or Met Life the courage to keep fighting against their corrupt tactics,” said Miller after the decision. “It may have taken me years to defend my reputation, rebuild my business and prove that I did no wrong, but this verdict vindicates me. The jury’s verdict brings the real wrong-doers in this case—Met Life and AMICA—to justice,” he added. Looking back over the past 10 years about a case that has consumed his life, Miller said he is relieved it’s finally over. “My life was in limbo. I got cancer, I went broke. I can’t count the ways it affected my life,” he said. “I want to pick up the pieces and get on with my life.” Today, Miller’s Auto Body is run by Miller’s children, Candace and David.

Continued from Page 18

PartsTrader Pushback

Dan Hunsaker, owner of Dan’s Paint and Body in Tucson, AZ, introduced himself as a “Select Serviceaholic.” He said his shop was one of the first to pilot the program four months ago, and since then he has realized it doesn’t work. “I feel like the donkey that got dumped into the Kentucky Derby,” said Hunsaker. “It’s not efficient. How can I improve on a one-click efficiency? I currently electronically upload my parts order. I have my vendors. Everything is done instantaneously. Now I have to wait for an hour and monitor the program. My big problem is that my parts guy is on that [PartsTrader] screen six hours a day off and on. That represents $50,000 a year out of my pocket to administer that program.” Hunsaker concluded by saying, “It’s sad that this has happened. In our industry, [State Farm] was the one insurer we could count on. Now, we don’t trust State Farm like we did.” Ron Reichen, a Select Service shop in Beaverton, OR, drew applause when he told Avery, “ I don’t go down

to State Farm and say I need to evaluate your underwriting department because I see a lot inefficiencies. The reality is: Leave us alone. You guys sell insurance. Let us repair cars.” Rick Starbard, president of the Alliance of Automotive Service Providers of Massachusetts (AASP/ MA), as well as president of AASP National and owner of a Boston area body shop, said “When insurers meddle in relationships between us and our customers, they cause irreparable harm to our industry. This product is redundant. We can do everything shown today through our own management systems. We survive on parts profits. What we get for labor is peanuts.” Stating that the new parts program would negatively impact repairers’ parts profit, Starbard continued, “In a state like mine, we survive on parts mark-up. I suggest repairers run this agreement up the flagpole with their accountants.” Tony Passwater, president and owner of AEII Consulting, said the program is not needed because the parts procurement model in the United States is efficient and repairers have trusted relationships with existing suppliers. He also said that al-

though it is only a pilot now, it could evolve into a big problem for repairers, likening it to the evolution of the direct repair program model. John Mosley, who wrote a personal letter to Avery in May to express his concerns over the parts program and thank him for unifying collision repairers over their opposition to it, was at the CIC meeting representing Alabama repairers. He said he had continued confusion over the program details even after Avery and Cooper’s talk. “I’m still as uninformed and confused as when I got here,” said Mosley. “Is this something that we’re going to have in all states? Have you already signed a contract?” Avery responded, “To me, there’s a difference between a test and a pilot. You test something to see if it will work; you drill a pilot hole before you’re going to drill. So a pilot does suggest that your intent is to continue to move, but you have to make sure that pilot hole is in the right place and is right. We’re going to continue to work the pilot in the four pilot areas and fix these things that are clearly deficiencies, and then we will evaluate whether that will be something company-wide for Select Service repairers.”

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www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 35

Texas’ Collision Repair Schools—No Lone Reason for Success by David M. Brown

The National Automotive Technicians Education Foundation (NATEF) is a Leesburg, Va.-based regulatory body whose sole purpose is to ensure quality auto body training and education. NATEF continuously evaluates courses and subjects being taught in collision repair schools. In Texas, there are 11 NATEF-accredited programs, comprising seven high school and four post-secondary programs that serve students and industry in the Lone Star State, reports Trish Serratore, president of NATEF, Three of the secondary programs are at Trimble Tech, Pasadena and San Benito high schools. All use the ICAR curriculum. The Fort Worth Independent School District has its only Collision Repair Program at Trimble Tech High School, says its instructor, Roger Alfaro, ASE Master Certified in Collision Repair/Refinishing Technology and Estimating. Dr. Alma Charles directs all CTE programs at FWISD. Accredited by NATEF in NonStructural Analysis and Damage Repair (Body Components) Structural Analysis and Damage Repair, Trimble Tech has had a body-repair program since 1956 and participates annually in SkillsUSA, Alfaro says. Students begin in their freshman year, so a program graduate completes 721 hours of instruction including those first two components, 300 and 260 hours respectively, and 161 hours for Refinishing Technology, guest speakers, field trips and potential-job visits. “I actually took the Auto Body class and graduated from Trimble Tech in 1983,” he says. He then attended Tarrant County College, earning an associate degree in Applied Science in Auto Body. After working in a shop for about 6.5 years, he was hired as the Collision Repair instructor in January 1991. A 2011 graduate, Martin Urbina, was an intern at Frank Kent Cadillac in Fort Worth. “I graduated from high school and work to support my family,” he says. “I’m still going strong by also going to college to further my education. I believe those ethics were instilled in me by having majored in Body Shop.” Outside of Houston, Pasadena High School uses the I-CAR training curriculum for a two-year course, articulated with nearby San Jacinto College

South for five courses. In place since the 1960s, the program accepts about 20 juniors annually following intensive vetting, explains Chad Phillips, the program instructor, an ASE Master Collision/Refinishing technician. “A six-week-long safety program is followed by education in automobile construction and instruction on correctly disassembling and reassembling a variety of cars. Next, students learn to weld using ICAR standards

Credit: Texas State Technical College

and train on vehicles provided through donations from AYES, auto manufactures and San Jacinto College. This is followed by dent-repair practice on vehicles and donated panels from Toyota; then students prime and refinish their panels. “It’s a lot to complete in the first year along with the six ICAR modules, but we have to get them ready for potential internships,” Phillips says. Pasadena High School hosts three meetings a year for administrators, instructors and local auto dealerships to get together and evaluate the program and its current needs. Throughout the year, students work on portfolios preparing to interview in April as well as complete 24 hours of job shadowing. At this time, too, dealer/collision shop managers visit the school to interview qualified students for possible internship placement. Once placed, students will typically work a 40-hour week with a mentor during the summer between their junior and senior years. “When we return back to school, the intern, now a senior, goes to school a half of a day and then to work,” he says, noting that Pasadena places 5-7 students in collision internships annually. San Benito High School serves the San Benito community, adjacent to Mexico and separated by the Rio Grande River. In existence since 1978 at San Benito High, the school’s Collision Repair and Refinishing program pre-

36 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

pares students as if they were already at a body shop or at the community college, says Hector M. Rendon, director of Career and Technical Education Programs. One teacher provides the instruction through three different classes for grades 10 through 12. Courses include Principles of Manufacturing (9th); Energy, Power & Transportation Systems (10th); Collision Repair and Refinishing (11th); Advanced Collision Repair and Refinishing (12th); and, for qualified students, a practicum in Transportation, Distribution and Logistics class (12th). On completion of coursework, students can then test in two NA3SA/ASE areas for certification after completing the two-and-a-half year program: Painting and Refinishing and Nonstructural Analysis and Damage Repair. The San Benito program has been NATEF/AYES certified since 2005. “By participating in NATEF, we were able to restructure to define the

necessary tasks needed by our local businesses to assist in providing qualified entry-level employees,” Rendon explains. Similarly, through the AYES program, students can participate in a 400-hour paid internship during the summer of their junior years. When students complete their internships, they may work full-time or continue their education at the respective dealer manufacturer training centers or college. A tool scholarship valued at $3,200 is made available at minimal cost. “The one thing I liked about the job placement is that it is very different from the classroom environment,” says student Roberto Rodriguez. “You are always busy and on your toes. It is about production and profits.” Texas colleges, also using the ICAR curriculum, have equally robust programs. In operation since 1935, Kilgore College is in Kilgore, between Longview and Tyler in east Texas, two miles south of Interstate 20. The Automotive Program is a member of the Training Alliance with I-CAR.

For the two-year degree, students take courses such as Automotive Suspension and Steering Systems in the fall semester and Collision Repair Estimating and Collision Repair Shop Management in the spring. James Burns, an owner of a local used car dealership, attended the program to maximize profit. “With the information I have learned through the program, I can now make the proper repairs, turn a better profit and put a better-looking vehicle on the lot,” he says. Student Ramiro Aguilar began a career: “Starting with no knowledge or experience in the field, through the proLeslie Eaton grinding. Photo credit: Andrea Vasquez, gram I was able to complete San Jacinto College marketing department my co-op time at a local body lum for certificate seekers and the 71- shop that I now work at full time!”. credit two-year curriculum for the Automotive collision repair is Associate of Applied Science Degree. taught at the North and South camThe classes are approximately 6- puses of San Jacinto College in the 7 hours a day, five days a week for the Houston area. The Central campus duration of the specific program. teaches Automotive Mechanical repair. Courses in the certificate program inThe San Jacinto College Autoclude Vehicle Trim and Hardware in motive Collision Repair Technology the first semester and Structural Program began in the mid 70s and was Analysis & Damage Repair, I, II and one of the first programs in the HousIII, in the second. ton area to teach I-CAR classes. The “We are a small but effective operation, allowing direct personal contact with each student,” says Joel Laws, the program director and primary instructor. In the 10-year-old Auto Body Program, he sees 20-25 students annually flowing through the new 40 credit-hour one-year curricu-

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auto collision program has 186 students enrolled and places 75 percent of its graduates in jobs, says David Baisden, who started teaching at San Jacinto College as an adjunct instructor in 1978, and in 1981 became a fulltime instructor. All of the full-time auto collision instructors are I-CAR trained, members of the I-CAR Industry Training Alliance and certified through the National Institute for Automotive Service Excellence. “Being I-CAR Industry Training Alliance members also allows our students to be eligible for I-CAR Gold Points, which can be used for further certification with I-CAR after completion of the auto-collision program,” Baisden says. His associate Jake Stahl, teaches at the South campus, and Glen Kirkwood is the full-time instructor at the North Campus, with many adjunct instructors collegewide. Instructors also train in most major equipment and paint systems and take training courses to keep up with the latest industry standards, he says. Several degree and certificate options are offered: an Associate of Applied Science degree in four semesters, earning 62 college credits; a Certificate of Technology in three semesters, 42 college credits; or an Occupational Certificate completed in as little as one semester. Night and weekend classes are also available. “By incorporating industry professionals in curriculum planning, we ensure that our students have an advantage once they enter the job market after completion of the program,” he says, noting that they participate in activities such as the San Jac Auto Body Club, the Technical Honors Society and SkillsUSA. “It’s always been my dream to be in the auto body industry, and now I’m excited to learn more so I can get a job doing something I love,” says Pedro Chacon, 19, an auto collision student who works at a local tire shop, takes a full load of courses and works at his family’s restaurant on his days off. A former student, Leslie Eaton, 54, is a retired NASA associate engineer and enrolled in Baisden’s class in the early 90s after she discovered a gasket leak in her 1972 Toyota Corolla and wanted to save money on repairs and car maintenance by doing them herself. “I still do maintenance and repairs on my cars, and now when I’m

buying a used car, I can recognize if it’s had any prior damage, which gives me more bargaining room,” she says. In Waco, the Auto Collision and Management program at Texas State Technical College began in August 1969. The program offers four achievements: Refinish Certificate, 41 credit hours; Auto Body Certificate, 40 credit hours; Refinish & Auto body Combination Certificate, 61 credit hours; and an Auto Collision & Management Associate Degree, 70 credit hours. Each certificate requires a year, and the Associates Degree is a two-year program. The instructional staff includes seven instructors, all with Master status from ASE, one lab maintenance technician and one secretary. Facilities comprise three collision labs, two refinish labs and classroom space. In the fall semester 2011, 163 majors were enrolled, says Archie Watley, program chairman. Through the use of industry partnerships with major players, the program has kept equipment and training current. “The fact that our graduates have been prepared on vehicles with state-of-the-art design and electronics greatly assists them in moving smoothly and quickly into the workforce,” he says. One result of this high level of training has been participation and success in SkillsUSA. In the mid 90s, Watley was assigned advisor to the local VICA organization (now SkillsUSA), and three of his students placed first, second and fourth in the state. That year, in June, at the finals in Kansas City, Mo., his first-place winner took first nationally. This year, students Rebekah Shadowens and Brandon Wennin, traveled to Kansas City to compete in SkillsUSA, she in Collision Repair Technology, he in Automotive Refinishing Technology. “While neither placed in the top three areas, their display of skills and competitiveness prepared them mentally and physically for their entrance in this field of study,” Watley says. “Now, we begin searching for new talent.” Note: The writer thanks Joe Thigpen and Ric Menard, AYES state managers for Texas. Employed by the Texas Auto Dealers Association, Thigpen manages the AYES schools in Texas except the AYES schools in the Houston area, managed by Menard, who is employed by the Houston Auto Dealers Association.

www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 37

Continued from Page 32

Matrix Wand Part 2

all of the new parts still had a negative caster. I found that the right side was back at the lower control arm mount-

ized the supplement. The car was pulled and realigned that Friday and was delivered the following week. The insurance company had to pay for an additional eight days of car rental and all of this could have been

hooked up to the office thru the Internet. Rob began looking at my picture and noticed that I used the fender

Figure 8

the vehicle and determined that the right rail was down by 10mm. The problem was there was no damage to the rail. I proceeded to call Rob Bailey (the matrix guru) about this inaccuracy. The Matrix computer can be

Figure 5

Figure 9

Figure 10

holes on the passenger side (fender was already removed), but the top of the bolts on the driverâ&#x20AC;&#x2122;s side. He said that computer was picking up the difference between the depth of the hole and the top of the bolt. He told me to either remove the bolts or install the bolts and take another photo and remeasure. I installed the fender bolts on the passengerâ&#x20AC;&#x2122;s side and rechecked the measurement and this time there was no sag in the right rail. By the way, I measured the bolt head and sure enough it was 10mm high.

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ing brackets by 10mm. I proceeded to measure the under hood and bumper reinforcement. The photo showed that the vehicle was 10 mm short on the right rail. The adjustor was called on a Wednesday, and we sent him the data for additional frame labor and another alignment. He called back and author-

avoided with a Matrix photo. I left the Big Island on a Thursday morning. The next day I went to Island Fender and met with Van Takamoto, the owner of the shop. We photographed a 2008 Toyota Prius, which was in the shop for a fender replacement only. I measured

38 AUGUST 2012 AUTOBODY NEWS | www.autobodynews.com

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WE WANT TO BE YOUR SOURCE FOR REAL VOLKSWAGEN PARTS. With your skill and our parts, every collision repair will be a bang-up job. And that will add up to more repeat business for both of us. Call your order in today.

Here are some of the types of measurements that can be performed with the Matrix Wand: • Measure width, length and height. (Figure 2) • Point-to-point measurements and compare with Mitchell Data Inc. (Figure 3) • Measure under hood, bottom of vehicle to determine damage. (Figure 4) • Measure under hood damage and compare to factory specs. (Figure 5) • Measure door openings and “B” pillar positions. (Figure 6) • Measure engine cradle for damage. (Figure 7) • Measure strut, knuckle, spindle and lower control arm for damage and also determine what parts are bad without guessing. (Figure 8). • Measure if a sub frame has shifted, and this procedure could be added to the estimate at the time of tear down and not when it goes to the alignment shop. (Figure 9 and 10)

The only way that you can appreciate this revolutionary piece of equipment is to see it in operation at your shop. Either call me at 310-995-7909 or email me at tcspeedster@yahoo.com and I will set up a demo for you.

Freeport, NY, Shop Owner Found Not Guilty of Insurance Fraud Lorraine Pilitz, owner of Autotech Collision at 120 E. Merrick Rd. in Freeport, NY, was accused of submitting fraudulent records for an insurance claim in September of 2010, but a jury recently found her not guilty on all five felony counts. According to the Nassau County District Attorney’s Office, Lorraine Pilitz (formerly Christie-Pilitz) 54, of Merrick and owner of Autotech Collision, (also known as Autotech Collision Rockville Center) was charged in September 2010 with three counts of fourth-degree insurance fraud and falsifying business records. If she had been convicted, Ms. Pilitz could have faced three years in jail. On June 22, a jury found Ms. Pilitz not guilty on all five charges. According to her attorney Oscar Michelen, the charges stemmed from a 2009 auto accident in which the vehicle Ms. Pilitz was driving in was rear-ended by another motorist. Authorities previously stated that in 2009, Pilitz was driving a 2007 PT Cruiser that was owned by her body shop when she was rear-ended. While the severity of the accident was in

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Lorraine Pilitiz sits on one of her company tow trucks in 2005. Photo credit: Newsday File, 2005 / Dick Yarwood

dispute Pilitz submitted a claim to GEICO, the company that insured the other driver, claiming that her car was totaled. GEICO attempted multiple times to see the car so that they could assess the damage, but were unable to for six weeks. GEICO claimed that when their representative saw the car at Pilitz’s body shop, it had already been dismantled inside the shop. GEICO agreed to pay the full cost of the damages, and asked Pilitz for proof of the vehicle’s value — a bill of sale that would prove her ownership of the car and a list of expenses related to the storage and repair of it. At the time Nassau County Dis-

trict Attorney Kathleen Rice said that Pilitz provided GEICO with a handwritten list of expenses and a “fraudulent bill of sale indicating that she paid Autotech $12,491, including $991 in tax, for the vehicle, and a fraudulent MV-50 (a DMV form used to transfer ownership of any vehicle owned or controlled by a dealer). The DA also claimed that during the D.A.’s investigation, another forged MV-50 was discovered, this one containing the forged signature of Pilitz’s father, who died seven months prior to the date on the form, according to Rice. “Lorraine Pilitz knows the system and thought she could play it to her advantage, but she got caught,” Rice said. “When people defraud insurance companies, it results in higher costs for the rest of us. By investigating and prosecuting insurance fraud cases, we are doing our part in keeping costs down for honest ratepayers.” Ms. Pilitz always maintained her innocence and testified at trial that she was only trying to obtain what she was entitled to under the law.

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Order your Genuine Mazda Parts from one of these parts specialists in your area. www.autobodynews.com | AUGUST 2012 AUTOBODY NEWS 39