August 2017 Southeastern Edition

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VOL. 8 ISSUE 6 AUGUST 2017

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DIY Repair in Florida Results in Fatal Airbag Explosion, “Alpha” Inflators are Most Dangerous Type

where we waii are erson Ha p ’ s s ho di in ther p no

18, 2016. A medical examiner ruled his mechanism is to prevent the propelby Autobody News Staff death accidental due to head trauma, lant, largely ammonium nitrate, from according to a Hialeah police report.

In a dramatic expansion of what is al- becoming hydrated and therefore unAccording police, Kuffo was in ready the largest automotive recall in stable. In chemical terms instability the back yard of his home near Miami, history, Takata Corp.—which recently can affect the burn rate of the comworking on a silver 2001 Honda Acfiled for bankruptcy protection—has pounds and behave unpredicably, leadcord, when a neighbor heard a loud just added 2.7 million vehicles to the ing to malfunction. bang. The neighbor went outside and Environmental moisture, high total. found Kuffo sitting in the passenger Vehicles made by Ford, Nissan temperatures, and age contribute to the seat of the car unconscious and bleedand Mazda are using a type of airbag process that can disastrously fragment ing from his face. Kuffo was taken to the airbags’ inflator mechanism. inflator including a desiccant, or drya trauma center, where he died the next NHTSA has determined the root ing agent, that previously was thought day. Both air bags had inflated. to be safe. Commonly encountered cause of the inflator casing shattering Honda released a statement on desiccants are solids that absorb water. problem is airbags that use ammonium July 10, 2017, which read, They are frequently used in nitrate-based propellent without a repackaged foods to retain liable chemical drying agent, i.e., See Airbag Fatality, Page 9 o m c l e e s w ws g this iss reade crispness and are in without an effective desiccant. The e ue N in in rs y ead no way explosive in propellant oxidizes hydrated fuel granr a State Insurance Regulator Expresses Openules and wafers explosively, causing their own right. the inflator’s casing to rupture and fire However the ness to Ideas Implemented in Other States desiccant’s role the shattered fragments with someby John Yoswick Industry Conin the Takata times lethal velocity.

See Takata Adds to Recall, Page 18 ference (CIC) airbag inflation Collision repair shops and associations on state or fedoften express fruseral regulation Mahalo Nui Loa Mahal tration in trying to of the insurance Insurance That May Apply if Injured in work with their industry may offer a Car Accident in NC state insurance regan example of how ulators on issues reto approach getting you or a family member find yourself

by Jeremy M. Wilson, lated to steering, regulators to act. in this unfortunate situation.

Ward and Smith, P.A. use of non-OEM The CIC “Governmental Comparts or other insurmittee” began its presentation with a Brooke Stringer of In 2015, there were over 250,000 re- Liability Insurance look at the prospect of repealing the the National Associ- ance claims pracNorth Carolina law requires that the ported car accidents in North Caration of Insurance tices they consider 1945 McCarran-Ferguson Act, the owner of a registered motor vehicle olina.

And, unfortunately, statistics Commissioners unfair or illegal. federal antitrust exemption granted suggest that nearly every driver will maintain basic levels of liability insur(NAIC) said NAIC But presentations to insurers. Bob Redding, the Autosupports state rather be involved in at least one car accident ance coverage. The purpose of liability and discussions at motive Service Association lobbyist than federal regulacoverage is to pay for claims a recent Collision tion of insurance See Insurance Regulator, Page 54 when the owner or driver of

time. Au first to e h o t ripti n. If yo bod r u’r c o s e ub

A Florida man was killed by an exploding Takata air bag inflator while doing a DIY repair in June last year.

Ramon V. Kuffo, 81, of Hialeah, Florida, was working inside a 2001 Honda Accord using a hammer when the air bag inflator ruptured, on June

Takata Airbag Recall Expands by 2.7M More Vehicles, Ca2SO4 Desiccant is Now Suspect in Certain Inflators

our publica ting t ibu ct us for a fre ion es f str onta c

in their lifetime. Given these numbers, you should be aware of the types of car insurance coverage in North Carolina that might be available should

that vehicle is “liable” for an accident—i.e., when an accident is that owner’s or driver’s fault. The minimum requirements for coverage in North Carolina are $30,000 for bodily injury to one person, $60,000 for bodily injury to two or more people, and $25,000 for property damage.

Many individuals carry additional See NC Insurance, Page 16

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2 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

Contents

NATIONAL ACA: ‘No’ to Transition Period for Border Adjustment Tax . . . . . . . . . . . . . . . . . . 15 Advance Auto Parts Cuts 475 Jobs as Sales Decline. . . . . . . . . . . . . . . . . . . . 57 Auto Care Association: Will Vehicle

the direct catastrophe losses for firstquarter 2016. Insurers’ combined ratio deteriorated to 99.6 percent for first-quarter 2017 from 97.4 percent for first-quarter 2016.

Insurers also saw some improvement from a year earlier. Net written premium growth accelerated to 4.0 percent for first-quarter 2017 from 3.2 percent for firstquarter 2016. Net investment gains[1] increased by $1.2 billion to $14.4 billion in first-quarter 2017 from $13.2 billion for firstquarter 2016. The industry’s surplus[2] reached a new all-time high value of $709.0 billion as of March 31, 2017, increasing $8.1 billion from $700.9 billion as of December 31, 2016.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales Assistant: Jessica Day Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas Online and Web Content Editor: Rochelle Beckel Serving Florida, Georgia, Alabama, Mississippi, Virginia,

West Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas.

Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2017 Adamantine Media LLC.

Audi Wholesale Parts Dealers . . 36-37 Axalta Coating Services . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . . 56 CarcoonAmerica Airflow Systems . . . . . . . . . . . . . . . . . . . 40 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 19 ChemSpec USA, LLC . . . . . . . . . . . 16 Classifieds. . . . . . . . . . . . . . . . . . . . 62 Coggin Deland Honda . . . . . . . . . . 18 Crashmax Equipment . . . . . . . . . . . . 9 Darrell Waltrip Automotive Group. . 13 Dent Magic Tools . . . . . . . . . . . . . . 10 Dominion Sure Seal . . . . . . . . . . . . 41 Eckler’s Automotive . . . . . . . . . . . . 43 ECS Automotive Concepts . . . . . . . 22 Equalizer Industries, Inc . . . . . . . . . 34 Ford Wholesale Parts Dealers . . . . 61 GM Wholesale Parts Dealers . . . . . 55 Gus Machado Ford . . . . . . . . . . . . . 48 GYS Welding USA. . . . . . . . . . . . . . . 6 Hendrick Automotive Group . . . . . . 17 Hendrick Automotive Group of Charleston. . . . . . . . . . . . . . . . . . 64 Hendrick BMW/MINI . . . . . . . . . . . . 45 Hendrick Dodge . . . . . . . . . . . . . . . 26 Hendrick Kia Cary . . . . . . . . . . . . . . 57 Hendrick Kia Concord . . . . . . . . . . 57 Herkules Equipment Corporation. . 12 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . 31, 32-33 Hyundai Wholesale Parts Dealers. . 54 Insta Finish Car Care . . . . . . . . . . . 23 Jim Cogdill Chrysler-Dodge-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 21

Jon Hall Chevrolet . . . . . . . . . . . . . 30 Jon Hiester Automotive . . . . . . . . . . 8 Kernersville Chrysler-Dodge-JeepRam . . . . . . . . . . . . . . . . . . . . . . . 25 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 51 Killer Tools & Equipment. . . . . . . . . 47 Lexus Wholesale Parts Dealers . . . 60 Matrix Automotive Finishes. . . . . . . . 7 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 50 MINI Wholesale Parts Dealers . . . . 56 MOPAR Wholesale Parts Dealers . . 39 Nissan of Richmond . . . . . . . . . . . . 44 Polyvance . . . . . . . . . . . . . . . . . . . . 20 Porsche Wholesale Parts Dealers . . 60 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Radley Chevrolet. . . . . . . . . . . . . . . 46 Rick Hendrick Chevrolet Naples. . . 52 Rick Hill Imports . . . . . . . . . . . . . . . 53 Riverside Ford-Lincoln . . . . . . . . . . 42 Robaina Industries, Inc . . . . . . . . . . 29 SATA Dan-Am Company . . . . . . . . 11 Sorbothane . . . . . . . . . . . . . . . . . . . 24 Southside Kia . . . . . . . . . . . . . . . . . 49 Spanesi Americas . . . . . . . . . . . . . . 15 Stateline Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 14 Subaru Wholesale Parts Dealers . . 59 Tameron Hyundai . . . . . . . . . . . . . . 38 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 58 West Broad Hyundai. . . . . . . . . . . . 28 Wizards Products . . . . . . . . . . . . . . 27 Yellow Jacket . . . . . . . . . . . . . . . . . 35

Autobody News Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Southeast

COLUMNISTS ‘Who Pays for What?’ Finds Improvement in Payment for Not Included Body Labor Operations . . . . . . . . . . . . . . . . . 26 Antonelli - CAA Members Tour UTI Long Beach, Learn to Negotiate Pre and Post Scans . . . . . . . . . . . . . . . . . . . . . 44 Antonelli - Techs of Tomorrow: Student Says He’s “Fascinated by Everything” in Auto Body Program . . . . . . . . . . . . . 49 Attanasio - Are You Gearing Up for Voice Search? . . . . . . . . . . . . . . . . . . . 40 “Phillips - How a PA Shop Delivers Excellent Customer Service & Receives Top Reviews” . . . . . . . . . . . . . . . . . . . . . . . 46 Phillips - Jobbers Focus on Value-Added Services for Collision Repair Facilities . . 48 Phillips - Smith Brothers Focus on Exceptional Customer Service While Dividing Time among Three Locations . . 22 Sisk - Snapsheet President: Photo-Based Estimating, Claims are the New Way for Carriers . . . . . . . . . . . . . . . . . . . . . 38 Yoswick - Retro News: Talk of Other Insurers Requiring use of PartsTrader Goes Back Five Years. . . . . . . . . . . . . . 42

Manufacturers Comply with Right to Repair Requirements? . . . . . . . . . . . 56 Auto Care Careers Now Offers Job Posting Packages. . . . . . . . . . . . . . . . . . . . . . . 41 BASF Invests $40 Million in Automotive Coatings in North America . . . . . . . . . . 60 BASF’s VisionPLUS Performance Groups Approved for I-CAR Platinum Credit Points . . . . . . . . . . . . . . . . . . . . . . . . . 52 Bill Pierce is our New Digital Marketing Manager . . . . . . . . . . . . . . . . . . . . . . . 27 CARCO Announces the Launch of SafeRIDE Certified . . . . . . . . . . . . . . . . 49 Certified Collision Group™ Appoints Martin Evans as VP . . . . . . . . . . . . . . . 35 Chief® Heavy-Duty Rivet Gun Makes Easier Work of Truck Cab Repairs . . . . 63 CIECA Uses Scans in BMS Starting June 19 . . . . . . . . . . . . . . . . . . . . . . . . 60 Dealers See Growth for NIADA Convention and Expo . . . . . . . . . . . . . . . . . . . . . . . 58 Hawaii Body Shops and Their Customers Handicapped by Insurance Issues . . . . 28 KPMG Report: Autonomous Vehicles Could Reduce the Insurance Sector by 71% by 2050. . . . . . . . . . . . . . . . . . . . . . . . . 4 Legalizing Recreational Marijuana Is Linked to Increased Crashes . . . . . . . . 52 Michael Linnerooth Named US Subsidiary Business Director for 3M AAD . . . . . . . 53 Nicholas Schoolcraft Replaces his Father at Phoenix Solutions Group . . . . . . . . . 61 Polyvance Demonstrates Nitrogen Plastic Welding at SkillsUSA Competition . . . . 61 PPG Announces Video of OEM Panel Session . . . . . . . . . . . . . . . . . . . . . . . . 56 PPG ENVIROBASE® High Performance EC520 Clearcoat Coming Soon . . . . . . 57 PPG Launches PaintManager® XI Software. 50 Property/Casualty Insurance Industry’s Net Income Drops 42.2 Percent in First-Quarter 2017 . . . . . . . . . . . . . . . . . 3 Rochelle Beckel is Online Editor at Autobody News . . . . . . . . . . . . . . . . . . 27 Service King Continues Colorado Growth, Partners With Five Star Collision. . . . . . 27 Service King Welcomes 34 Technicians to Rapidly Growing Apprenticeship Program . . . . . . . . . . . . . . . . . . . . . . . 58 Sherwin-Williams Ecolean™ Level 2 Workshop Scheduled for Chicago . . . . 63 Snap-on Introduces ETHOS Edge . . . . . . . 60 Takata Airbag Recall Expands by 2.7M More Vehicles, Ca2SO4 Desiccant is Now Suspect in Certain Inflators. . . . . 1 Takata Bankruptcy Benefits Automakers, Not Victims, Lawyers Say . . . . . . . . . . . 4 U.S. House Committee on Energy and Commerce Considers Self-Driving Vehicle Legislation . . . . . . . . . . . . . . . . . 4 Volvo Cars to Go All Electric. . . . . . . . . . . 63 When to Replace Mini-Ductor® Induction Heating Coils . . . . . . . . . . . . . . . . . . . . 60 WIN Complies with Members’ Requests for Regional Events . . . . . . . . . . . . . . . 63

According to reports by Verisk Analytics, Inc., The private U.S. property/casualty insurance industry saw its net income after taxes drop to $7.7 billion in first-quarter 2017 from $13.4 billion in first-quarter 2016-a 42.2 percent decline-and its overall profitability as measured by its annualized rate of return on average policyholders’ surplus fall to 4.4 percent from 7.9 percent, according to ISO, a Verisk Analytics (Nasdaq:VRSK) business, and the Property Casualty Insurers Association of America (PCI).

The industry experienced $7.3 billion in direct catastrophe lossesthe highest first-quarter catastrophe losses since the 1994 Northridge earthquake and $2.3 billion above

Index of Advertisers

REGIONAL 50K Florida USAA Auto Policyholders to Receive Past-Due Sales Tax Due to Total Loss Claims . . . . . . . . . . . . . . . . 10 BASF Supports 6th Annual HRAA Car Show . . . . . . . . . . . . . . . . . . . . . . . 6 Chesterfield Career and Technical Students Refurbish Car for Social Services Client Through Recycled Rides Program . . . . 14 Director Leaves FTCC’s Popular Collision Repair Program . . . . . . . . . . . . . . . . . . 12 DIY Repair in Florida Results in Fatal Airbag Explosion, “Alpha” Inflators are Most Dangerous Type. . . . . . . . . . . . . . . . . . . 1 Eldor Corp.’s 350-Job Auto Parts Plant Taking Shape in Botetourt . . . . . . . . . . . 9 Fitzgerald Collision & Repair Expands in Rickman and Sparta, Tennessee. . . . . 8 Gerber Collision & Glass Opens Repair Location in Georgia . . . . . . . . . . . . . . . 12 Insurance That May Apply if Injured in a Car Accident in NC . . . . . . . . . . . . . . . 1 Jeff Gordon to Headline 2017 CARSTAR North America’s Conference In Charlotte, NC, Set For August 23-25 . . . 6 Sisk - IGONC’s 2017 ASTE Attracts New Vendors . . . . . . . . . . . . . . . . . . . . 21 The Jim Ellis Automotive Group Raises $65,000 for Local First Responders . . . 10 Young’s Auto Body Helps First Responders Cool Off . . . . . . . . . . . . . . . 6

Property/Casualty Insurance Industry’s Net Income Drops 42.2 Percent in First-Quarter 2017

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 3

KPMG Report: Autonomous Vehicles Could Reduce the Insurance Sector by 71% by 2050 Autonomous vehicle technology could shrink the auto insurance sector by 71 percent or $137 billion by 2050, according to new research by KPMG. The white paper report titled The Chaotic Middle: The Autonomous Vehicle and Disruption in Automobile Insurance reads, in part: Since our initial white paper in October 2015, Marketplace of change: automobile insurance in the era of autonomous vehicles, we now believe that the traditional personal automobile insurance marketplace has the potential to be even more severely disrupted by new competition and shifts to other types of insurance coverage. The move to new business models will not be smooth and we anticipate a “chaotic middle” of a decade or more as companies adjust their strategies and operations.

“Our new study synthesizes our latest research and thinking and covers four underlying themes: ►Alignment for mass autonomy: Acceleration of the pace of change ►The triad of disruptors for auto insurance ►Perfect storm: Modeling the potential impact ►Chaotic middle: Dual challenge facing insurers

KPMG has extended its actuarial model by 10 years to 2050, finding that the pace of change has accelerated, pushing projections that illustrate greater declines to the insurance sector than KPMG’s previous 2015 study. It also shows an increasing need for new types of insurance products.

“Insurance companies will have to

make important strategic and tactical changes sooner than anticipated to navigate through this turbulent transformation of the industry,” said Jerry Albright, principal in KPMG’s Actuarial and Insurance Risk practice.

“New business models bring about a decade or so of a ‘chaotic middle’ as insurers adjust their strategies and operations as autonomous vehicle technologies significantly deplete the need for personal auto insurance.”

Chris Nyce, principal in KPMG’s Actuarial and Insurance Risk practice, added, “Building the latest observations into our actuarial model affirms the projected long-term decline in the number of auto accidents overall, and the share of accident claims funded by personal auto policies will also contract. Partially offsetting this, average repair costs will continue to increase at a higher rate than overall inflation as new technologies in future cars become more expensive to repair.”

The Triad of Disruption in the Auto Insurance Industry Three major forces are disrupting the current, $247 billion premium, auto insurance marketplace: 1) Autonomous technology is making cars theoretically safer, leading to a potential 90 percent reduction in accident frequency by 2050.

2) Auto manufacturers (OEMs) will assume more of the driving risk and associated liability, and have new opportunities to provide insurance to car buyers, taking market share away from traditional insurers. KPMG estimates that by 2050 there will be a significant increase in products liability

U.S. House Committee on Energy and Commerce Considers Self-Driving Vehicle Legislation

The U.S. House Committee on Energy and Commerce held a hearing on a draft package of 14 driverless car bills on June 27. The hearing follows closely behind ASA’s Mechanical Operations Committee meeting with senior House Energy and Commerce staff June 14 to discuss several issues related to driverless cars and the potential impact on repair shops.

Witnesses included: ● Mitch Bainwol, president and CEO, Alliance of Automobile Manufacturers ● John Bozzella, president and CEO, Global Automakers ● Tim Day, senior vice president,

Chamber Technology Engagement Center, U.S. Chamber of Commerce ● The Hon. David L. Strickland, counsel, Self-Driving Coalition for Safer Streets and Partner, Venable LLP ● Alan Morrison, Lerner Family associate dean for Public Interest and Public Service Law, The George Washington University Law School ● Will Wallace, policy analyst, Consumers Union ASA is reviewing the draft legislation and will make comments to the committee. To read the witness’s testimony or to view a recording of the hearing, please visit: TakingThe Hill.com.

4 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

insurance to 57% of total auto losses in order to cover the autonomous technology in vehicles, and a considerable decrease in personal auto insurance to 22% of total auto losses.

3) The rapid adoption of mobilityon-demand is quickly lessening need for personal auto coverage, with the use of fleets requiring commercial auto insurance.

“Insurance companies are varied in their level of preparedness for this disruption and many have taken limited action to face this challenge,” said Joe Schneider, managing director at KPMG Corporate Finance LLC. “As a result, auto insurers may choose to branch out into home-related products, or other commercial coverage, to benefit from diversification.”

A New Mix of Auto Insurance Coverage By 2024, the majority of travel within cities and surrounding suburbs is expected to be on-demand rather than

with a personal vehicle, and by 2035 it is expected to be the new normal in transportation. As a result, products liability coverage and other new types of insurance are expected to pay a greater share of claims resulting from roadway accidents. Cyber risk is a good example of a new type of risk associated with the era of driverless cars, and market participants are building new products to cover the potential hacking of autonomous vehicles.

Autonomous Capabilities on a Fast Track The auto insurance industry is further disrupted by the surge of “smart money” generated by a variety of sources including venture capital (VC) firms. “The infusion of capital is boosting the development of autonomous capabilities and related business models, thereby accelerating the pace at which highly automated vehicles will hit the market,” added Schneider.

Takata Bankruptcy Benefits Automakers, Not Victims, Lawyers Say

TK Holdings, the US business of Takata, filed for Chapter 11 bankruptcy due to tens of billions of dollars of liabilities from recalls and lawsuits over its air bags, along with 11 Mexican and US subsidiaries.

Most of Takata’s obligations are owed to automakers for recalling and replacing millions of its air bags, and the Japanese supplier’s restructuring plan relies heavily on financial support from its customers.

Some legal experts say the biggest worry for car companies caught in the fallout is playing out in a Delaware bankruptcy courtroom. People injured by the air bags, were appointed to their own official committee in the Japanese company’s US bankruptcy, giving them a powerful voice in the proceedings.

This unusual committee, which includes people whose cars lost value due to the recall, will be pitted against Honda, Toyota, and other automakers.

The OEMs have been trying to use the bankruptcy to limit their liability for installing the faulty air bags, said Kevin Dean, a Motley Rice attorney who represents injured drivers on the committee.

Because the committee has official status, Takata must provide it with funds which can be used to investigate the automakers’ liability or to challenge financial assump-

tions. Without a committee, plaintiffs’ lawyers would typically have to pay for that themselves.

“If I were a plaintiffs’ lawyer, this would be a golden goose for me,” said John Pottow, a professor at the University of Michigan Law School, of the appointment of the special committee.

Takata, Honda, Toyota and General Motors declined to comment.

Other carmakers did not return requests for comment.

Bankruptcies typically only have one official creditors committee. In the Takata case, the committee of injured drivers will sit alongside another made up of suppliers and vendors, who are likely more interested in the future of the business than compensation disputes, according to bankruptcy attorneys who are not involved in the case.

Both committees were appointed by the US Trustee’s Office, the arm of the Department of Justice that acts as a bankruptcy watchdog.

Seventeen fatalities, including one confirmed last week, and at least 180 injuries have been tied to Takata’s air bags since at least 2009.

Last week, the National Highway Traffic Safety Administration widened a global recall of the airbags, which regulators expect to ultimately cover 69 million cars and 125 million inflators. Most defective air bags have not been replaced.

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 5

Young’s Auto Body Helps First Responders Cool Off

of all, a place to kick back and get out of the heat that is normally seen For the second year in a row, a Cleve- in Cleveland and Bradley County. land business is showing its appreciThe first of these breaks was ofation to emergency first responders fered last week. Several different by offering a “cooling down” place agencies stopped by the business and during the summer months. took a quick break.

Young’s Auto Body, located at The visits by the first responders 2000 South Lee Highway, is host- also give them a chance to speak to ing all first responders every Friday the public about the services they through the summer, offering water provide, and, in some cases, actually and other drinks, snacks, and, most recruit potential officers, fire department personnel and ambulance service drivers and care providers.

“We at Young’s Auto Body appreciate the sacrifice and protection you give to our community, and as a small token of our appreciation, through the summer months, we will have cold water, sports drinks, small snacks, conversation, and appreciaEmergency Responders are being thanked tion any time between 11 a.m. to 4 this summer by Young’s Auto Body, with the p.m. on Fridays,” said Cliff Howard, company providing a cooling-off area on production manager at Young’s.

Fridays during the hot summer months. The “We are proud of our local emerfirst event was held last week. From left gency service men and women and are Young’s Auto Body Shop Manager Cliff want our community to know we Howard and Owner Greg Young; Cleveland stand with you in your efforts,” he Police officers Kody Fox and Don Nation; added. “Again we know this is just Bradley County Fire-Rescue Operations Chief a small token of appreciation, but Troy Maney, Engineer Nick Lamb, Lt. Randy we hope to help out in some way.”

Watson and Firefighter Brian Stearns; and The public is invited to drop by Young’s Auto Body GM Wade Bettis.

Contributed Photo on these days.

by Allen Mincey, Cleveland Daily Banner

BASF Supports 6th Annual HRAA Car Show Automotive paint manufacturer BASF sponsored the Classic Muscle car category at the 6th annual Hampton Roads

Bernard Chicoine’s 1967 Plymouth Barracuda, first place winner in the Classic Muscle car category at the HRAA Car Show

Autobody Association (HRAA) car show in Chesapeake, VA last month.

The car show is held each year to support the Virginia Department of Veteran’s Services, Virginia Veteran and Family Support. Roughly 60 vehicles were on display at this year’s event.

In addition, BASF Account Representative Jennifer Robertson and BASF Business Development Manager John Shoemaker passed out Chip Foose and Richard Petty posters, color wheels, pens and keychains.

“BASF is great to work with,” said Steve Jellerson, President of HRAA. “Sponsorships are key in

growing our event, and it is a pleasure to work with John and Jennifer, who are wonderful representatives of [BASF] and the auto body shop industry. I look forward to their assistance again next year.”

First place in the Classic Muscle car category went to Bernard Chicoine with his 1967 Plymouth Barracuda.

Modifications included functioning airbags, a late-model engine swap and an elaborate stereo system with a trunkmounted TV. Bob Huffman won second place for his 1972 Chevelle, and Richard Harvey won third place with his 1963 Falcon.

Jeff Gordon to Headline 2017 CARSTAR North America’s Conference In Charlotte, NC, Set For August 23–25

CARSTAR North America will come together for its first CARSTAR Conference with both U.S. and Canadian networks represented and none other than NASCAR champion Jeff Gordon will help kick off the festivities.

The CARSTAR North America Conference, themed 1NE CARSTAR, will be held Aug. 23–25 in Charlotte, NC, home of NASCAR. The events will be held at the Westin Hotel as well as the NASCAR Hall of Fame and Charlotte Motor Speedway. It will open with a special welcome dinner Wednesday night, then shift gears to focus on strategic planning, management education sessions, panel discussions, vendor partner networking events, motivational speakers, an insurance industry forum and CARSTAR Vendor Expo held at Charlotte Motor Speedway, and close

with the annual awards presentation.

Gordon, four-time NASCAR champion, current NASCAR on FOX analyst and longtime Axalta ambassador, will join the opening night festivities as the keynote speaker, presented

by Axalta. Axalta is a leading paint supplier for CARSTAR North America.

CARSTAR Auto Body Repair Experts joined Driven Brands, Inc., in 2015, and in 2016 integrated with CARSTAR Canada to become CARSTAR North America. Driven Brands is headquartered in Charlotte, and the CARSTAR Conference will showcase the Queen City and all it has to offer as well as the racing environment Charlotte is known for throughout the country.

“We’re going to be in Charlotte for the largest MSO network event of the year, so it’s perfect to have one of NASCAR’s biggest stars be a part of our event,” said Michael Macaluso, President, CARSTAR North America.

“Jeff’s success on the track has earned him a tremendous number of fans and accolades, but his work off the track on behalf of children in need is even more remarkable. We’re thankful to Axalta for their support on making this a truly special evening.”

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GYS Welding USA (Left) Steve Jellerson, President of Hampton Roads Autobody Association (HRAA), (Right) Bernard Chicoine, winner in the Classic Muscle car category at the HRAA Car Show

6 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 7

Suspect Arrested, Money Bag Stolen From Auto Parts Store

by WSAZ News Staff

Charleston Police say they have arrested a man wanted in connection with a money bag stolen from the NAPA Auto Parts store on the city’s West Side, Charleston Police say.

The theft happened about 9:20 a.m. Police say a money bag was Robert “Rocky” taken then from Pryor, 57, of the store in the Charleston, is 600 block of Vircharged with ginia Street West. grand larceny Robert“Rocky” Pryor, 57, of Charleston, is charged with grand larceny.

Police say they found the money after a getting a search warrant for his apartment.

Officers say security footage helped them determine Pryor as a suspect.

CPD says Pryor has a lengthy criminal history with police.

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Fitzgerald Collision & Repair Expands in Rickman and Sparta, Tennessee Fitzgerald Collision & Repair, a company that provides collision repair for commercial truck fleets across the United States, will add 100,000 square feet to its existing state-of-the-art repair facility in Rickman and also establish a new facility in Sparta, Tennessee.

The company will invest $9 million and expects to create 220 new jobs in the Upper Cumberland region. Fitzgerald Collision & Repair plans to create 145 new jobs at its expanded operations in RickmanOverton County and create 75 jobs at the new facility in Sparta -White County.

“The Fitzgerald family has decades of experience in the commercial trucking industry and this most recent venture to provide best-in-class collision and repair service has been a tremendous success,” Fitzgerald Collision & Repair Founder & CEO Robert Fitzgerald said. “With growing demand for our services, we can think of no better place to invest and create more than 200 new jobs than the Upper Cumberland. I’d like to thank the State of Tennessee as well as our local partners in White and Overton counties that have offered support for Fitzgerald Collision & Repair’s expansion.”

“We want to thank Fitzgerald Collision & Repair for its investment in the Upper Cumberland region.

We’re proud that Tennessee is a place where entrepreneurs like Robert Fitzgerald can turn ideas into businesses that positively benefit our local communities,” Governor Bill Haslam said. “Fitzgerald Collision & Repair’s significant expansion will create new job opportunities for residents in the Upper Cumberland and bring us one step closer to making Tennessee the No. 1 location in the Southeast for high quality jobs.”

Fitzgerald Collision & Repair recently announced a new vocational program and partnership with the Tennessee College of Applied Technology (TCAT) Livingston, which offers students training in commercial fleet truck maintenance and repair.

“There’s no question that the logistics and transportation industry is a crucial part of Tennessee’s economy,” Department of Economic and Community Development Commissioner Bob Rolfe said. “Fitzgerald Collision & Repair is a homegrown success story that plays an important role in Tennessee’s growing transportation sector. We look forward to the impact this 220-job expansion will have on residents in White and Overton counties.”

Overton County Executive Ben Danner said, “Fitzgerald Collision & Repair is working with the TCAT to put students right to work out of school in the Rickman facility, which makes them a very good fit for Overton County and the entire Upper Cumberland.”

We thank Area Development News Desk for reprint permission.

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Eldor Corp.’s 350-Job Auto Parts Plant Taking Shape in Botetourt

by Laurence Hammack; The Roanoke Times

Eldor Corp. is revving up construction of its high-tech automotive parts factory in Botetourt County’s Greenfield industrial park.

About 350 people are slated to be working at the Botetourt County plant within 5 years.

Another 300 employees are expected to be added after that

Foundations have been established and a steel structure is starting to take shape for what will be the Italian company’s North American production plant and distribution center.

The company is on track to have a 250,000-square-foot building ready for test runs in January 2018 and occupancy by late April, according to Botetourt County Administrator Gary

Larrowe.

About 350 people are slated to be working at the plant within five years. Another 300 employees are expected to be added after that, marking the largest expansion of new manufacturing jobs in the Roanoke Valley in at least a decade.

Eldor already has hired a small group of assembly supervisors and sent them to Izmir, Turkey, where they are being trained at a company plant that has the same advanced equipment to be installed at the Botetourt County location.

The company makes ignition systems, engine control units and electronic systems that it plans to distribute to auto manufacturers throughout North America.

When Eldor announced its plans in March 2016, the goal was to begin production as soon as this August.

Site preparation began right away, but construction of the building was pushed back for a re-design that Eldor officials said was needed to “adopt the latest technology developments and be ready also for the next generation of automotive products.”

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Continued from Cover

Airbag Fatality

in part: “Honda has notified the National Highway Traffic Safety Administration (NHTSA) of the rupture of a Takata driver’s airbag inflator in a 2001 Honda Accord on June 18, 2016 at a private residence in Hialeah, Florida. The rupture occurred while an individual, who was not the vehicle owner, was attempting to perform unknown repairs inside the vehicle using a hammer while the ignition switch was in the “on” position. This triggered activation of the airbag inflator, which ruptured during deployment of the airbag. The individual died the next day from injuries sustained when the airbag deployed.

“It is difficult to determine whether the cause of death in this incident was the inflator rupture, or an interaction of the hammer with the deploying airbag. While the absolute cause of death may never be fully determined, Honda now considers this to be the 11th confirmed fatality in its vehicles related to Takata airbag inflator ruptures in the U.S.

“Honda has shared all of the available vehicle history information collected to date with NHTSA and will continue to cooperate with NHTSA throughout the process of the investigation.

“Since 2009, the vehicle in the Hialeah, Florida event has been included in multiple recalls as well as a safety campaign related to its original defective Takata “Alpha” driver’s airbag inflator. Twelve mailed recall notices were sent over the course of nearly seven years to registered owners of this vehicle prior to the June 2016 incident. Our records indicate that the recall repair was never completed on this vehicle.

“Honda continues to encourage all owners of vehicles containing recalled Takata airbag inflators, especially the “Alpha” inflators found in certain 2001–2003 models, to immediately check for open recalls and, if replacement is required, make an appointment at an authorized dealer for a free repair. The 2001 Accord has one of the most dangerous types of Takata driver’s side air bag inflators. Laboratory tests show they have as high as a 50 percent chance of blowing apart in See Airbag Fatality, Next Page

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Airbag Fatality

a crash.

The victim, who police said was not the car’s owner, was working on the interior of the car with a hammer and had taken apart the car’s center console, but it wasn’t clear what he was trying to fix. It’s also not clear why the air bag deployed, but police photos show the metal driver’s side inflator ruptured and shot out fragments, Honda said. The car’s ignition switch was on, so the air bag would have been ready in case of a crash, according to Honda. Martin noted that there is a deceleration sensor that activates the air bags mounted on the wall between the engine and passenger compartment.

Honda urged owners who have received recall notices to get repairs made as soon as possible, especially those with the Alpha inflators. Those models are the 2001 and 2002 Accord and Civic, the 2002 CR-V and Odyssey, the 2002 and 2003 Acura 3.2 TL, the 2003 Acura 3.2 CL and the 2003 Pilot. Honda says it has sufSee Airbag Fatality, Page 14

The Jim Ellis Automotive Group Raises $65,000 for Local First Responders To kick off summer this year, the Jim Ellis Automotive Group wrapped up a successful charitable campaign where a portion of each sale during the month of May went to support local first responders. Thanks to the support of old and new customers alike, a total of $65,000 was raised and is being divided evenly between 10 Atlanta-area police and fire departments.

To distribute the funds raised through this campaign, the Jim Ellis Automotive Group decided to split funds between any police and fire department that is the responding agency for each of our Jim Ellis dealerships.

This means that 10 first responding agencies will receive a check for $6,500, along with a catered lunch at their department when we present the funds. The agencies receiving funds include: » Chamblee Police Department

» Cobb County Fire Department

» Cobb County Police Department

» DeKalb County Fire Department

» DeKalb County Police Department

» Doraville Police Department

» Gwinnett County Fire Department

» Gwinnett County Police Department » Marietta Fire Department

» Marietta Police Department

Going above and beyond raising funds for local first responders, Jim Ellis Automotive dealerships are hosting first responder appreciation events in each of our dealership areas. The first appreciation breakfast was held on June 22 at Jim Ellis Mazda Marietta, an event at Jim Ellis Chamblee was helf on July 20, and events are scheduled to follow over the coming months at Kennesaw (September 14) and Buford (October 19) locations.

“First responders do so much for our communities and they often do not receive the honor or appreciation that they deserve,” said Jim Ellis Automotive Group President Jimmy Ellis.

“Our local first responders put their lives on the line daily for the safety and wellbeing of complete strangers and we wanted to do something above and beyond to show our appreciation for them. Many of our customers made

50K Florida USAA Auto Policyholders to Receive Past-Due Sales Tax Due to Total Loss Claims USAA insurance companies agreed to pay an average of more than $450 in past-due sales tax to approximately 50,000 Florida auto policyholders who experienced total loss claims, based on plaintiffs’ calculations in a class action lawsuit settlement.

The settlement provides for payments of up to approximately $34 million, plaintiffs’ calculations show.

Notice of the settlement will be sent to more than 70,000 policyholders.

Plaintiffs calculate that approximately 70% of these policyholders (approximately 50,000) will recover funds under the settlement if they timely submit pre-filled-in claim forms.

USAA also agreed to no longer condition the payment of sales tax on the policyholder first purchasing a replacement vehicle.

Each class member will receive an email and mailing from Settlement Administrator Dahl Administration explaining how to make a claim.

Claims can be made by mail or at the website USAAFloridaAutoSalesTaxSettlement.com.

All 70,000 total loss policyholders can submit a claim asking USAA to review their file to determine

whether there was sales tax underpayment, and in turn USAA will pay the policyholder 108% of any sales tax that should have been paid.

The 2013 lawsuit claims USAA improperly withheld sales tax from total loss payments to auto policyholders. Class members include present and former USAA Florida policyholders who held auto insurance with a USAA company and were paid

by USAA under their policy for a total loss to their automobile between October 13, 2008 and October 15, 2016.

Policyholders will receive payment only if they make a timely claim. Approximately 30% of policyholders with total loss claims received all sales tax due from USAA as part of their total loss, and will receive no payment even if they make a claim.

Plaintiffs are represented by Atlanta law firm Hall & Lampros, LLP, (404-876-8100) and St. Augustine, Fla. firm Avolio & Hanlon, PC (904794-7005). More information can be found at www.USAAFloridaAuto SalesTaxSettlement.com. The lawsuit is Chantal Bastian, et al. v. USAA, et al., 3:13-cv-01454-TJC, USDC Middle District of Florida.

10 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

it clear that they feel the same way as they rallied behind us to support this endeavor. We look forward to continuing this campaign through the rest of the year as we host appreciation events at our dealerships and offer special discounts to first responders in both sales and service.”

In addition to the cash donations that will be made to the local first responders that serve our dealership areas, Jim Ellis Automotive dealerships are offering special discounts for the rest of 2017 to all eligible first responders. As a token of appreciation, all qualifying first responders can take advantage of $500 off their next vehicle when purchased from Jim Ellis. That is $500 off of the best negotiated price at any of our Jim Ellis dealerships. On the parts and service side, eligible first responders will receive 15 percent off parts and service at any Jim Ellis dealership through the end of 2017.

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Director Leaves FTCC’s Popular Collision Repair Program

by Steve DeVane, The Fayetteville Observer

The director of a popular collision repair program at Fayetteville Technical Community College has resigned, in part because he says the school became too closely aligned with one company.

Paul Gage, who led the program since it started three years ago, left last month.

“The college and I had a different view of how the program should be run,” he said.

Part of the issue was the relationship Fayetteville Tech has with Caliber Collision, which calls itself the largest collision repair company in the nation.

“I’d be lying if I said that didn’t have something to do with my leaving,” Gage said.

Caliber operates a program at the college called Changing Lanes. It is one of several “Transition Tech” programs intended to provide workforce training to transitioning military members, according to Pam Gibson, dean of engineering and applied technology at the college.

Former troops who successfully complete the 18-week program are guaranteed a job with Caliber, according to college’s website. Company officials could not be reached for comment.

Gage said Changing Lanes was separate from Fayetteville Tech’s twoyear associate degree program in collision repair, which is known as Collision U. “There were two paths,” he said.

“As we went forward, those two paths were starting to merge into one.”

Gibson said that while Changing Lanes is a partnership with Caliber, students in Collision U can seek em-

ployment with any collision repair company.

“FTCC is open to creating a program similar to Changing Lanes with any collision repair company that would be interested,” she said.

Paul Gage, seen here in 2014, had been the director of the collision repair program at Fayeteville Technical Community College since it started three years ago. He resighned last month. Credit: File photo/The Fayetteville Observer

The Changing Lanes program was initially located in the same shop as the associate degree program, Gage said.

When representatives from other companies would visit, they’d ask about the Caliber program.

“There was a lot of explaining to do,” he said.

Gage said Changing Lanes was eventually moved to another location on the college campus.

“There was a trust issue at that point,” he said.

Gage said he doesn’t fault Caliber for taking advantage of the opportunity to train their employees at Fayetteville Tech. He just wasn’t personally comfortable with the impact on the collision repair program.

“I want it to be for the whole industry,” he said. “I felt it was becoming too focused on one company.”

Gibson said college officials maintain “regular contact” with companies

Gerber Collision & Glass Opens Repair Location in Georgia

The Boyd Group Inc. (the “Boyd Group” or “Boyd”) today announced the June 14, 2017 opening of a collision repair center in Greensboro, Georgia, about 75 miles east of Atlanta. The center previously operated as Rodfathers Collision Center & Sales.

“This location increases our presence in central Georgia and is well-situated in proximity to the busy Interstate 20 and U.S. Route 278 highways,” said Tim O’Day, President and COO of the Boyd Group.

“We look forward to serving new customers and our insurance partners in Greensboro and surrounding communities by providing the same professional and friendly service that is the signature of all Gerber locations.”

The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair center owners are asked to contact Kim Allen at the contact coordinates below for more information.

12 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

in the collision repair industry. The college invites all companies in the industry to recruiting events called “Draft Days.”

“These companies continue to express their support for Collision U and FTCC,” she said.

Members of the military who are leaving the service can apply for either program, Gibson said.

“Changing Lanes students who wish to continue their education are welcome to continue their training at Collision U,” she said. “So far no Changing Lanes students have made that decision; however, if any do, we will work with them to award curriculum credit for the instruction they received through Changing Lanes.”

Gage also said the college was making some changes to the two-year program. He declined to provide details other than to say that his role was changing.

“Had I known that was going to happen I would have negotiated a different contract,” he said. “It may very well have been the plan all along, but it was never communicated to me.”

Gibson said the direction of the

program has not changed. Students continue to get the same certifications that have been offered. The number of students in the program is similar to previous years, she said.

“The focus continues to be on providing a quality work force for the collision repair industry,” she said.

Gage said he feels good about the work he did at the college.

“The program belongs to Fayetteville Tech,” he said. “They have the right to do what they feel is best for the program and the community.”

Gage said he is going to do consulting work for schools that want to start similar programs. He’s also going to work with a company in Texas.

“I hope the program continues,” he said. “I hope it continues to be successful.”

Gibson said Fayetteville Tech has a strong team that will make sure the program continues to go forward.

“We greatly value what Mr. Gage brought to the program, but his departure will not impact the program’s ability to continue to provide outstanding training to our students and employees for the industry,” she said.

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www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 13

Chesterfield Career and Technical Students Refurbish Car for Social Services Client Through Recycled Rides Program

by Contributed Report, The Progress - Index

Students at the Chesterfield Career and Technical @ Courthouse and automotive partners from across the region recently presented ChesterfieldColonial Heights Department of So-

cial Services client Tywanda Auld with a refurbished Pontiac G6 through the National Auto Body Council’s (NABC) Recycled Rides™ program.

Recycled Rides™ is a NABC nationwide community service program in which the collision-repair business community collaborates with other automotive industry partners, technical schools and vehicle insurers to repair and donate vehicles to families and service organizations in need.

As part of the program: ► CTC @ Courthouse students provided the workforce.

State Farm Insurance Company donated the vehicle. ► Firestone Complete Auto Care on Ironbridge Road donated the tires and vehicle safety inspection. ► NAPA Auto Parts on Southlake Boulevard donated parts and supplies. ► 1-800 Charity Cars provided the expertise to coordinate licensing and securing a title for the vehicle on behalf of the new owner. ► FinishMaster Automotive and Industrial Paint on West Broad provided the paint and materials necessary to complete the job.

“Community service continues to be a strong component to a wellrounded education in Chesterfield County Public Schools,” said Superintendent Dr. James Lane. “Through Recycled Rides™, our students have participated in and been an active part of providing reliable transportation to a local resident in their own community. What a great example of a true, hands-on learning opportunity!”

Auld is a participant in the Chesterfield-Colonial Heights Department of Social Services’ Virginia Initiative for Employment not Welfare (VIEW) program. During the last 18 months, she has strived to alleviate the ►

14 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

barriers that prevented her from meeting personal and professional goals.

Auld has worked diligently to become self-sufficient in supporting herself and her family. One of her biggest challenges has been the inability to secure reliable transportation, which now has been resolved with the donation of this vehicle.

“This vehicle will enable me to go to work and pursue promotional opportunities, not to mention, taking my children to doctor visits and helping them to participate in extra-curricular activities, something I have not been able to do for quite some time,” said Auld.

“I’m so pleased that our students can participate in such a worthy project, and particularly one that will make such a tremendous impact in the life of a resident who really needed their help,” said County Administrator Dr. Joe Casey.

Since the Recycled Rides™ program’s inception in 2007, more than 1,000 vehicles have been donated nationwide. NABC members are recognized and acknowledged as responsible businesses that give back to the communities they serve.

We thank The Progress-Index for reprint permission.

Continued from Page 10

Airbag Fatality

ficient supplies of replacement inflators available to fix all of its recalled vehicles.

“It’s essential to safety that highrisk inflators are replaced immediately,” the National Highway Traffic Safety Administration said in a statement.

Honda says its service procedures recommend disconnecting the battery when working on the air bag system. Owners can go online and subscribe to Honda service manuals and find out proper procedures for many repairs. It costs about $10 per day, Martin said.

Multiple owners of the car were mailed 12 recall notices over seven years. “Our records indicate that the recall repair was never completed on this vehicle,” Honda said in a statement.

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Mitchell 1 Shop Management Workshop Coming to Orlando in October Mitchell 1 will hold this year’s final Shop Management Workshop, Oct. 5-7 in Orlando, Florida at the Rosen Plaza Resort. The training is designed for auto shop management software users who want to learn more advanced capabilities, shortcuts and new features to run their businesses more efficiently.

The two-day training session focuses on best practices and guides users through all levels of functionality of Mitchell 1 Manager™ SE and ShopKey Shop Management SE. Emphasis is on features in the 7.0 version of the software, but previous versions are also covered. Topics include program setup, inventory, reporting, scheduling, advanced transactions and aftermarket cataloging. A session led by Mitchell 1 product managers will focus on helping automotive repair shops get the most value from their integrated repair information source, ProDemand®. Attendees will also learn about the Mitchell 1 SocialCRM shop marketing service during a casual evening reception.

A practice lab equipped with computers and staffed by product specialists will be available throughout the event so attendees can practice and apply the skills they are

learning in the training sessions.

The workshop will be led by John Dwulet, senior product manager for Mitchell 1’s management software solutions, and Tim McDonnell, senior market manager for Manager SE, who together have over 40 years of combined shop management system training experience. Attendees can expect lively discussions on how to use the management system to energize their business, increase profits and boost productivity.

“This advanced training turns existing shop management system customers into power users who get the most out of their software and business,” said Dwulet. “The sessions will uncover strategies that attendees can use to compete successfully against dealerships, maximize their maintenance and repair opportunities, and enhance their relationships with customers.”

Adds McDonnell, “For the experienced Manager user, the workshop provides two days of comprehensive training that increases the value of their shop’s software investment. The interaction between attendees, sharing methods and tips, plus the new friendships everyone takes home, is price-

less.”

Attendees will be welcomed with a cocktail reception on Thursday evening. Workshop sessions run from 8 a.m. to 5 p.m. on Friday and Saturday. The registration fee is $200 per attendee, plus applicable tax, and covers seminars, breakfast, lunch and refreshments each day.

Participants are responsible for transportation to Orlando and hotel accommodations, and may reserve a room in the discounted Mitchell 1 hotel block at the Rosen Plaza Resport through Sept.13. Workshops fill up fast, so early registration is encouraged. For more information about the workshop or to register, visit the shop management workshop registration website.

Attendees can earn 30 AMI credits toward the Accredited Automotive Manager (AAM) designation by completing the workshop. At the end of each workshop, AMI course completion forms will be handed out to those attendees who wish to pursue AMI credits.

For more information about Mitchell 1, visit mitchell1.com, call (888) 724-6742, or locate an independent sales consultant at mitchellrep.com.

ACA: ‘No’ to Transition Period for Border Adjustment Tax

The Auto Care Association (ACA) expressed its disappointment that U.S. House Ways and Means Committee Chairman Kevin Brady, R-Texas, proposed a five-year transition plan for the Border Adjustment Tax (BAT) that is intended to subdue BAT critics. The BAT, which would impose a new 20 percent tax on imported goods and services, would result in a $20 billion annual tax increase on automotive parts. “There is no tweaking, modification or transition period that will negate the harmful effects of the BAT tax,” said Bill Hanvey, ACA President and CEO. “No matter what [Chairman Brady] proposes, consumers will foot the bill and numerous family-owned businesses in the auto care industry will suffer catastrophic losses.” The ACA is part of Americans for Affordable Products, a national coalition opposing the BAT. The BAT would create higher auto repair costs and is estimated to cost the average American family $1,700 annually in higher prices on everyday consumer items. “This tax hike would burden middle class households who have seen their wages stagnate in recent years, while enabling profitable, multi-national corporations—to operate virtually tax-free,” said Hanvey.

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 15

Continued from Cover

NC Insurance

coverage beyond these limits. And, doing so often is a good idea. If you cause a car wreck and someone is injured, the cost of even one trip to the emergency room or a few days in the hospital can easily exceed $30,000. If you caused the wreck, you can potentially be personally liable for any additional damages, and these bodily injury damages are not limited to medical bills. Such damages may include any future medical costs associated with ongoing care, lost wages, diminished future earning, pain and suffering, scarring or disfigurement, loss of use of part of your body, or the permanency associated with any continuing injuries.

In addition to bodily injury liability coverage, North Carolina requires car owners to have at least $25,000 in property damage liability coverage.

Amounts under this type of coverage are available to repair or replace a vehicle damaged by the at-fault driver (i.e., to fix or replace the “innocent” driver’s vehicle). What about the atfault driver’s vehicle? In order for the at-fault driver to receive any insurance funds to repair or replace his car, the at-fault driver will have to collect under the collision (property damage) coverage of his own policy. This same result applies if both drivers in an accident were at-fault—each proceeds through his own policy.

Underinsured Motorist (UIM) Coverage and Uninsured Motorist (UM) Coverage Your liability insurance coverage protects your assets and also protects any driver you might injure by supplying funds to be paid toward their bodily injury or property damage. In some cases, however, another driver’s insurance could be absent or insufficient, so other import coverages you shouldn’t overlook are Underinsured Motorist Coverage (“UIM”) or Uninsured Motorist Coverage (“UM”).

UIM coverage applies when the insured owner or driver is injured by the driver of another motor vehicle without insurance coverage sufficient to fully compensate for all resulting injuries. UM coverage applies if the insured owner or driver is injured by a driver who was driving (illegally) without any insurance coverage at all.

Thus, in these situations, as the injured party, you are compensated under your own personal insurance policy in

addition to, or in lieu of, the at-fault driver’s insufficient or the nonexistent policy.

For example, suppose you have UIM coverage of $250,000 per person and you are injured due to someone else’s negligence. The at-fault driver has $30,000 in liability insurance coverage. If you have significant medical bills or other personal injury damages, the at-fault driver’s insurance would tender the full $30,000.

Then, because your injuries exceed the $30,000 limits of the at-fault driver’s insurance, your own insurance company would pay up to an additional $220,000 (to get to $250,000 total) as part of your UIM coverage.

The same general approach applies with UM coverage.

Medical Payments Coverage Medical payments coverage (“med pay”) may be available under your insurance policy to help pay medical expenses for you, anyone else in your vehicle, or any other covered person who needs medical care because of an accident. The amounts are usually relatively small ($1,000 to $5,000). But, this money will be paid regardless of who is at fault and is generally paid soon after the accident. This can be very helpful early on after a car accident, before the covering insurance carrier determines the total amount to be paid, especially if there are medical expenses that require early payment or pre-payment.

Other Insurance Other types of insurance coverage may provide funds if you are injured in a car accident. It is not uncommon, however, for injured individuals to “miss” the other potential sources of recovery.

And, anyone who signs a broad settlement agreement or release in accepting one set of insurance proceeds may never be able to recover under other insurance policies. Thus, one of the most helpful benefits lawyers can provide after a car accident is exploring all possible sources of insurance coverage before settlement.

An important concept in automobile insurance coverage is that insurance policies do not just cover the actual driver. In fact, insurance policies “follow the car” in North Carolina.

So, if a driver who borrowed a friend’s car causes an accident and hurts you, you would first pursue the liability policy of the car’s owner. However, if that policy does not provide sufficient cov-

16 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

erage, you also could then proceed against the actual driver’s insurance policy. Also, most insurance policies apply to anyone living in the same household as the insured who is related to the insured by blood or marriage.

So, if there is insufficient coverage under one policy, it is important to look for coverage of anyone else who lives in the same household and is related to the insured.

A party may also have additional types of insurance coverage. This can include an “umbrella” insurance policy that provides, in the event of significant damages, coverage beyond the automobile insurance limits.

Also, if the at-fault driver was traveling in the course and scope of his employment, then the driver’s employer’s liability policy may apply for additional coverage.

This list is not exhaustive, and there are numerous other insurance coverage issues that may arise. But, the variety of possible coverage underscores the necessity of performing a full investigation of potential insurance recovery sources if you are injured in a car accident (in addition to the potential personal liability of the at-fault driver if there is insufficient insurance coverage).

How Do You Determine Coverage if You Are in a Car Accident?

If you are in a car accident, review your insurance policy to see what types and amounts of coverage may be available to you. Then, consider the insurance of the other party or parties involved in the accident. Part of this analysis will depend on who was “atfault” for the accident—you, the other driver, or both? Depending on who is liable, and how much coverage is available, you will need to fully examine the possibility of other insurance coverage.

Sadly, sometimes car accidents involve serious personal injuries. If you are injured in a car accident by the negligence of another, reaching out to an attorney to assist with these claims is typically the best approach. Involving an experienced, committed attorney will ensure that you protect your rights and also receive guidance through a challenging, and often complex, situation. Among other things, your attorney can help guide you through these insurance issues and help ensure you are not missing potential insurance coverages that can help compensate you for the full scope of your injuries and other losses.

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Continued from Cover

Takata Adds to Recall

Ammonium nitrate is an inexpensive propellant that cycles through five solid states depending on temperature.

Generally this occurs in a predicable way and as the vehicle goes from the heat of sunshine to the cold overnight, the temperature swing is large enough for the ammonium nitrate to change from one phase to another. Ammonium nitrate also absorbs moisture from the atmosphere readily, hence the need for a desiccant to keep the compounds dry.

The desiccant is there to stabilize this process and, if it fails, may make ammonium nitrate dangerous, engineers say.

Takata’s inflators have used a variety of chemical agents to keep the propellant dry in its devices over the years, with some combinations showing a greater propensity to fail than others, federal regulators said.

Ford, Mazda and Nissan installed these inflators in vehicles manufactured for the United States market from 2005 through 2012, according to Takata. All are on the driver’s side of the vehicles. The affected vehicles are from the 2005 through 2012 model years.

At least 17 people have died and more than 180 injured due to the problem. These inflators have caused the largest automotive recall in U.S. history with 42 million vehicles and up to 69 million inflators being called back for repairs.

The latest recall is the first involving the inflators that use calcium sulfate as a drying agent. The inflator can combust in an “over-aggressive” manner, potentially rupturing and causing harm, according to a filing Takata submitted to the highway safety administration.

Takata previously believed that a particular drying agent, calcium sulfate (Ca2SO4), stopped the propellant from degrading, but now suspects that desiccant is inadequate and is a potential hazard.

Takata originally used a toxic

airbag propellant called sodium azide.

But that compound is volatile and could release toxic fumes into the car when the airbags deployed, especially if damaged. Ammonium nitrate, they concluded, would do the job more effectively and at lower cost.

In 1981 Mercedes-Benz was the world’s first automobile manufacturer to present the airbag and a propellant driven belt tensioner as restraint systems to the public in a series-production car. American manufacturers followed suit and delivered their first test fleets with compressed-air operated airbags, these restraint systems—which were conceived as an alternative to seat belts—sometimes led to serious injuries and in a few cases even fatalities.

Autoliv, a Swedish-American automotive safety products manufacturer, said in 2014 that it avoided using ammonium nitrate because of stability issues. Key Safety Systems, the recent buyer of Takata’s bankrupt assets, said at the time that it used guanidine nitrate and tetrazole— which experts said was more expensive but less risky and more durable than ammonium nitrate. TRW Automotive, a large supplier of safety parts based in Michigan, also used a propellant based on guanidine nitrate.

The National Highway Traffic Safety Administration now says that tests done by Takata show that—for the first time—this type of calcium sulfate-desiccated inflator “will pose a safety risk if not replaced.” The agency says it has no reports of any inflators with this desiccant actually rupturing.

Takata said in documents filed with the safety agency that it tested the inflators returned from Nissan and Ford vehicles which use calcium sulfate as a drying agent. Although none of the inflators actually ruptured, some showed a pattern of deterioration in the ammonium nitrate propellant over time “that is understood to predict a future risk of inflator rupture.”

NHTSA said in a statement that not all Takata inflators with a desiccant are being recalled. Takata used

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different drying agents in its other inflators, the agency said.

Nissan said the new recall affects just over 515,000 Versa subcompact hatchback and sedans from the 2007 through 2012 model years. Mazda said its recall covers about 6,000 BSeries trucks from 2007 through 2009.

Ford, which has the most vehicles involved in the latest recall, is reviewing the information and will file a list of models within the time required by law.

The latest recall raises doubts about the safety of other Takata Corp. inflators that use ammonium nitrate and drying agents. The doubts over Takata’s propellant raise questions of whether the recalls should be limited to humid regions.

For as far back as 2014 NHTSA said that it would urge automakers to expand recalls of certain drivers’ side airbags that had previously been limited to states and territories with high humidity. The company has now agreed to recall all original equipment inflators without a drying agent in phases by the end of 2018. NHTSA gave Takata until the end of 2019 to prove that inflators with the drying agents are safe, or they must be recalled as well.

Takata pleaded guilty to criminal charges in January 2017 and agreed to pay a $1 billion fine related to its faulty airbag inflator systems. After filing for bankruptcy protection in June, it is selling assets to be able to continue manufacturing components.

The company has said that it expects to fund the airbag repairs through the asset sale and that it has secured financing to ensure it can continue operations, including dealing with the defective inflators, while it restructures.

NHTSA said Takata has assured the agency that it will keep making inflator parts available.

“This recall now raises serious questions about the threat posed by all of Takata’s ammonium-nitrate-based airbags,” Senator Bill Nelson, Democrat of Florida, said in a statement. “If even more are found to be defective, it will take us from the biggest recall ever to something that could become mind-boggling.”

The agency is urging people whose inflators have been recalled to get them replaced as soon as possible.

To find out if your car or truck is part of the recall, go to nhtsa.gov/recalls or airbagrecall.com and key in the 17digit vehicle identification number.

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Southeast Associations

IGONC’s 2017 ASTE Attracts New Vendors with Chasidy Rae Sisk

On September 29-30, the Independent Garage Owners of North Carolina (IGONC) will host its 2017 Automotive Service and Technology Expo (ASTE) at the Embassy Suite and Convention Center in Cary, NC. The association is excited for this year’s event, and IGONC Executive Director Bob Pulverenti states, “The ASTE is the largest aftermarket automotive show in the Southeast, designed for shop owners, service advisors and technicians. This must-attend event features some of the nation’s top trainers delivering cutting edge information at a price that one would expect to pay for just one seminar. We’ll have raffles, an awards dinner, and a lot of fun, and we already have many new vendors signed up to join us for the first time ever. Don’t miss out—join us for training classes, a trade show and much more!”

IGONC’s 2017 ASTE will begin on Friday morning with a full-day course on “Getting to Yes with Confidence”

taught by 180BIZ Founder Rick White whose presentation will arm service advisors with the tools necessary to ensure success during each sales situation.

From 9AM-12PM, attendees will have the opportunity to attend one of four valuable training sessions. Bill Haas, owner of Haas Performance Consulting, will focus on delivering superior customer service during “Customer Care and Communication,” while ACDC CEO Craig Van Batenburg’s presentation on “Electrical Analysis for the Confused” is designed to help technicians understand ohms law, volts, amps and resistance. Chris Peace, Instructor for AC Delco’s “EVAP Diagnostics” provides an overview of evaporative emissions and the systems that control them, and “Light Duty Diesel: Exhaust Aftertreatment Systems,” taught by CARQUEST Instructor Joseph Smith Jr., presents the operation and design of complex light duty diesel vehicles, providing skills and knowledge that can be applied to today’s pickups and

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com. vans, as well as diesel-equipped cars.

During lunch, Skip Potter, Executive Director of the National Automotive Service Task Force (NASTF), will present “Aftermarket Access to OEM Service Information.” During this presentation, Potter will discuss current laws that require all U.S. vehicle manufacturers to provide independent technicians with the same level of access to service information made available to their franchise dealer techs and how these entities can work together to provide the vehicle owner with the best possible customer service experience.

Four informative seminars will also be available from 1-4PM on Friday afternoon. During “Strategies for Effective Leadership,” Haas will suggest ways to implement effective leadership strategies that will create a positive, empowering culture for employees. Van Batenburg’s “Introduction to High Voltage Systems” expands on his morning session as he covers the components used in high voltage systems. In “Diagnosing Multiplexed Data Business Networks,” Peace will guide techs to hone their problem-solving skills for serial data failure modes in multiplex networks, while Smith’s “Scan Tool Analysis: Modern Air/Fuel Management” will concentrate on air/fuel management strategies implemented in Advanced Tier platforms.

Following Friday’s training sessions, attendees will enjoy an evening of networking with peers at the Hotel Managers Reception, IGONC’s Casino Night and a Hospitality Suite.

Five beneficial learning opportunities are on Saturday morning’s agenda.

NAPA’s Duane Throckmorton will teach important skills for utilizing working with “Subaru Diagnostics,” White will review common selling errors service advisors make in “Advisor Mistakes and How to Avoid Them,” and attendees can learn about “Plug-in Hybrid/EV Tech Tips on Chevy Volt and Nissan Lead” with Van Batenburg. Also, Autoshop Solutions CEO Danny Sanchez will advise on how to successfully use Facebook as a marketing tool with enhanced targeting during “Reaching the Peak of Your Shop’s Social Potential,” while CARQUEST Instructor David Patrick will teach techs to more effectively diagnose a variety of drivability is-

sues using fuel trim data through his presentation, “Scan Tool Analysis: Understanding and Using Fuel Trim Data.”

After lunch, during which the trade show will be open, the final five educational seminars of the 2017 ASTE will be offered from 2:30-5:30PM. Tools and techniques concerning vehicles plagued with lean codes, rich codes, misfires, and more will be explored during Throckmorton’s “Fuel Systems Analysis,” and Haas will talk about how the right employees aid shops’ competitive advantage in “Employees, Your Future Depends on Them (Finding and Keeping the Right People).”

Patrick’s course on “Effective Electrical Troubleshooting: Digital Storage Oscilloscope Applications and Testing” will cover appropriate testing methods of major automotive systems, and Steve Smith, Sales and Management for ProCut, will discuss how brakes have been serviced and how the industry is moving to rotor matching as the proper brake service on today’s vehicles with “Why Should We Resurface Brake Rotors.” Finally, Aaron Lowe, Senior Vice President of Regulatory and Governmental Affairs for the Auto Care Association, will present “Telematics and Autonomous Vehicles,” providing an overview of vital efforts by national trade groups to ensure access to embedded telematics systems and software for the independent repair industry.

Saturday evening’s festivities will include a Hotel Manager’s Reception, Banquet and Hospitality Suite.

Many vendors are scheduled to participate in the trade show portion of IGONC’s 2017 ASTE, including Autoshop Solutions, AASP National, AC Delco, IGO Insurance, Meadowbrook Insurance Group, SampsonBladen Oil Company, Auto Supply Company, NAPA Auto Parts, CARQUEST, 180BIZ, Jasper Engines & Transmissions, Southern Bank and Taylor Lubricants, among others.

The cost for the 2017 ASTE is $695 for a super pass which provides access to all events for all employees from one location. Individuals can purchase a single pass to all events for $199 or a oneday education pass for $99. Awards banquet passes are available for $45 each. For more information or to register, visit www.asteshow.com.

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 21

Shop Strategies with Stacey Phillips

Stacey Phillips is a freelance writer and editor for the automotive industry.

She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.”

She can be reached at sphillips.autobodynews@gmail.com.

Smith Brothers Focus on Exceptional Customer Service While Dividing Time among Three Locations At Smith Bros Collision Center and Truck Accessories, brothers Chad and Adam Smith work hard to ensure every repair is a positive experience for their customers.

“We believe our customers come first and great service is something they deserve,” said Chad, co-owner of the Mississippi-based business. “Through

The McComb location was acquired by Smith Bros Collison Repair and Truck Accessories in 2004

continuing education and process improvement, we empower our team with knowledge to serve our customers and exceed their expectations.”

In 2000, the brothers acquired a dealership shop in Brookhaven, MS, that was shutting down. Adam was 21 years old at the time and had a few years of experience in the body shop industry, while Chad was 28 and had a background in finance and accounting.

The Smith brothers rented the building from the owner of the dealership, kept the same team of employees in place and named the shop Smith Bros Collision Center and Truck Accessories. Four years later, they acquired a second location in McComb.

A third location was added in September 2015 in Hattiesburg.

Autobody News talked to Chad about the family-run business and how the brothers operate three locations while focusing on excellent customer service and staying active in the industry.

As a family-owned business, Q: how have you and your brother divided responsibilities?

When we first started and grew A: from one to two shops, it made sense that one of us primarily stayed

at one of the locations. At the time, we had to manage the individual shops,

which prevented us from expanding the business.

When we opened the third location, we realized that we couldn’t be in three places at the same time. We promoted someone from within the organization and hired general managers who could handle day-to-day operations. It also enabled us to focus on growing the business. We are now able to manage operations from any of the three locations. Neither of us just put our feet up and work from home.

Adam or I are always at one of the shops, although we’re not necessarily on the same schedule. Sometimes we’re both at the same place, depending on what is going on at a certain time.

Working in a family company Q: can often be challenging. Can you share any advice with those in a similar situation?

It has been a good experience A: for us. Fortunately, we haven’t had any issues working together. I

think one of the main things is having a good understanding that family comes first. It’s so important to always put family above anything businessrelated. Make sure you are on the same page knowing what your end goal is as far as where you want your business to go.

The reception area at the company’s Brookhaven location

Ask the tough questions. Do you want to have a business that relies on insurance relationships and profitability in order to be sustainable and not necessarily focus on the customer?

I’m not saying the two are exclusive to one another. Or do you want to have a business that focuses on customer relations and still be profitable? It’s critical to make sure you both have the same idea about the business model

22 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

you want to run and what you want to achieve.

long-term relationships with our customers.

car and truck mechanical repair shop.

We also provide a great selection of truck accessories at each of our three locations. In our part of the country, trucks are very prevalent. We might have a customer who has purchased a new or used truck and he/she wants to add certain things to it, such as a bed cover or step bar.

By selling truck accessories, we potentially have an up sale. We try to stock items that make someone’s ride “one-of-a-kind.” This includes access to a complete line of coolers and freezers. In addition to making a retail sale, it gives us an opportunity to build

our customers’ vehicles in the proper manner according to manufacturers’ specifications. Over the past few years, we put a lot of effort into obtaining our OEM certifications and are currently certified with most of the major players. I believe only one in 10 shops will exceed or meet the standards for these certifications.

We are also working on becoming I-CAR Gold Class and are on track to be Honda ProFirst certified.

On average, accidents occur every 10-12 years, and some reports say 1517 years. Although it’s not a normal

How has offering additional What is the importance of havQ: services to collision repair benQ: ing OEM certifications? efited Smith Bros?

One of our goals is to be a bestIn addition to collision repair A: in-class collision repair busiA: work, we have a full-service ness. We make every effort to repair

See Smith Brothers, Page 24

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 23

Continued from Page 22

Smith Brothers

occurrence for most customers to get into an accident, the industry tends to see repeat customers. It’s important to build a relationship with them so they are educated on the repair process and feel comfortable doing business with your shop. Part of this is having OEM certifications to provide another level of comfort to customers.

Being OEM certified gives you another feather in your cap with your customers showing them that you’ve taken the initiative to make sure your employees are trained through the proper channels. It’s also something else you can market and something your competitors might not have.

How has your involvement in an Q: industry association been helpful to your business?

We’ve been members of the Mississippi Collision Repair A: Association (MSCRA) for the past

15 years and I’m the Secretary-Treasurer on the Board of Directors.

Many times, fellow shop owners feel that being a member of an association might look unfavorable to their insurance partners, but it’s definitely doesn’t.

The purpose of a trade association is not to bind together for the greater good and be adversarial to your insurance partners and collude, because that’s illegal. The purpose of an association is to educate. It helps shop owners learn about new products coming out as well as new processes and ideas that you can implement to improve your business. That might mean profitability, production or employee retention. I think the biggest thing to gain from being part of an association is giving yourself the opportunity to learn something you can take back and apply to your business. In addition, the networking is tremendous.

For various reasons, many collision repair facilities have looked at the shop across the street, across town or even in the next town as competitors.

Although we are competitors, there’s another side of that relationship that we’ve always neglected—networking.

An association will allow or should allow you to network with the same people who are fighting the same battles that you are fighting, so you can try and learn from one another.

Can you tell us about the recent Q: consumer guide released by the Mississippi attorney general and how

will it be helpful to all parties who were involved?

I was one of the members of A: the Mississippi Auto Repair Task Force that provided feedback for

the Consumer Guide to Insurance and Auto Body Repair. I feel that it will help the industry simply because it’s a

members who share the same beliefs that we do. We try to always put customers at the forefront in whatever decisions we make and make sure that when the time comes to deliver the vehicle, they are satisfied. It’s important to not be shy of that relationship or standoffish. Instead, build a relationship with your customers that you can be proud of and serve them in a way they want to be served.

With more than 1,200 followQ: ers on Facebook, how have you been using social media?

We are mainly using it for conA: sumer awareness and education in our business. We let customers

In September 2015, the company added a third location in Hattiesburg

document produced by a third-party outside of our industry—the attorney general’s office—which is focused on consumer awareness and consumer protection.

The attorney general was trying to gather all the information by building this taskforce composed of body shops in the state, as well as insurance representation, OEMs and even aftermarket representation.

It was a good collaboration of all entities involved in the repair process and the end result is a document that I believe is unbiased. The document provides information for consumers so they really understand what questions to ask about their insurance policies, as well as their rights when choosing a repair facility and the differences between parts usage.

If you look at the document, it even says what consumers should do when they pick up their vehicles to hold the repair facility accountable so they are assured of receiving a proper and safe repair.

It was a great effort among all involved and I don’t think it was sided toward any one party. I think it was a well-weighted out document that ultimately did what it was supposed to do, and that is to educate the consumer on their rights.

Smith Bros has received very Q: favorable online reviews from customers. What sets your company apart?

I honestly think we have good A: employees who are good team

24 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

know about our retail side and the different accessories we sell as well as our service center.

Facebook is so user friendly— you can post pictures and articles from your phone. Shops can take beforeand-after pictures and post them to their page. You just need to ask your customer first to make sure it’s OK that you are using pictures of the vehicle. We also found that if you follow certain industry-related pages, you can share articles on your own business

Facebook page.

There are no limitations on social media. There is always more that you can do and we’re not using it as well as I think we should.

We have a relationship with a third-party company that manages our website and sets up our Facebook posts to go out three times a week, 30 days in advance. They probably determine 80 percent of our Facebook posts, but we still retain the right to do individual posts as we see fit.

Originally, I was trying to be so intentional and methodical with Facebook and really think it through. I finally realized that it’s better to just be free form. If there is something that is related to your business and you think it is of value, post it on Facebook!

Customers are going to look at it.

Even if they don’t click on it, if they are looking through their feed they are going to see your post and your company name and that’s all you really want. You want to give them information that is of value to them and you still want that front-of-mind awareness that they constantly see.

Then, in the event they might have an accident, your business name comes to mind.

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‘Who Pays for What?’ Finds Improvement in Payment for Not Included Body Labor Operations “Who Pays for What?” survey finds improvement in payment for not-included body labor operations; latest survey on frame and mechanical operations is now open.

More shops are now being paid “always” or “most of the time” for nearly two dozen not-included body labor operations compared to a year earlier, according to the latest findings from the “Who Pays for What?” quarterly survey series.

Mike Anderson of Collision Advice, creator of the surveys, said that’s something he’s pleased about as the latest of the surveys, covering frame and mechanical labor operations, opens now through July 31.

“Though many of the increases are slight, and within the margin-oferror for the survey, there are a number of procedures that have seen significant jumps,” Anderson said. “Clean-up of airbag residue is a good example, rising 9 percentage points since 2016.”

Other procedures for which more shops are now reporting being paid “always” or “most of the time” include clean-up of old urethane (up more than 6 percentage points compared to 2016), application of weld-thru primer (up more than 8 percentage points), and duplication of OEM seam-sealer (up

6.6 percentage points).

The current survey, conducted by CRASH Network and Collision Advice, asks shops about their billing practices – and insurers’ payment practices – regarding about two dozen “not included” frame and mechanical labor operations. Shops can take the survey before the end of July by clicking below: https://www.surveymonkey.com/r/Q3 DDCP3

Newly-released data from the “Who Pays for What?” body labor survey, completed this past April by a record 1,042 shops around the country, contained some other evidence indicating the surveys’ positive impact: Of the 20 “not-included” body labor operations covered in both the 2016 and 2017 surveys, 18 had a higher percentage of shops (compared to a year earlier) now negotiating to be paid for them.

“If you don’t bill for it, you will never be paid for it, yet the biggest percentage of shops not billing for these procedures say they never thought of billing for them when they are required as part a repair,” Anderson said. “These surveys were designed to help raise that awareness.”

26 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

Each of the four different “Who Pays” surveys explores a different area of shop operations. The current survey focuses on “not-included” mechanical and frame labor operations, asking shops how frequently they are paid for each of the operations by each of the eight largest auto insurers in the country.

The current survey also asks about frame and mechanical labor rates, payment practices related to “set-up and measure,” and billing practices for wheel alignments and air conditioning recharging.

Survey participants will receive a report with complete survey findings at no charge, broken down by region, insurer and DRP vs. non-DRP. The report also includes analysis and resources to help shops better understand and use the information presented.

Anderson said the survey, which will take about 15-30 minutes, should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released.

The results of previous surveys are also available online (https://www .crashnetwork.com/collisionadvice).

Collision Advice (www.CollisionAdvice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. CRASH Network (www .CrashNetwork.com) is a subscription newsletter offering news and information not available from other industry sources.

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Bill Pierce is our New Digital Marketing Manager

Bill Pierce has taken the position of Digital Marketing mananger at Autobody News. He is a web developer, graphic artist and marketing manager with over 16 years of experience in the industry. He holds a BA from San Diego State University. He enjoys keeping up with the latest trends in social media, online marketing and web development. He is pasBill Pierce sionate about the local music and art scene and has produced over 40 art shows. As a graphic artist, he has designed over 400 concert posters for bands. He has appeared on radio and national television. His artwork has been shown throughout the United States, as well as; Japan, Spain, Iceland, Italy, Belgium, and the UK. He grew up in Vermont and Mississippi and has lived in San Francisco CA, Greenbelt, MD, and Washington, DC. He enjoys swimming, camping, hiking, biking and spending time with his family in North County.

Contact Bill at: bpierce@autobodynews.com.

Rochelle Beckel is Online Editor at Autobody News

Rochelle Beckel has joined Autobody News as Online & Web Content Editor. Rochelle has been a California resident her entire life, having spent her early years growing up in North San Diego County and college/postgrad years in the Bay Area. She graduated with a BS in Journalism from San Jose State University, where she was an active Rochelle Beckel member of the student newspaper and student magazine editorial staff. After graduating in 2014, she worked as a technical writer at an investment services firm and an account coordinator at a recruitment advertising agency in the Bay Area before moving back to San Diego in July. She looks forward to applying her passion for reading, writing and editing to her new role at Autobody News. Her other passions include exploring new cities, alternative music, Pringles, “Friends” (both the sitcom and her own), her boyfriend and her family.

Contact Rochelle at: rbeckel@autobodynews.com.

Service King Continues Colorado Growth, Partners With Five Star Collision

Service King Collision Repair Centers®, a national leader in high-quality automotive collision repair service, today announced the organization has added its seventh Colorado location.

The announcement comes as the company finalized a deal to partner with Five Star Collision Center, Inc., a 22,000 square foot repair center located in Thornton, Colo.

As part of the deal, Five Star Collision Center will begin operating as Service King, effective immediately.

“This is another proud step in Service King’s recent growth across Colorado,” said Clayton Geisendorff, Service King Market Director. “We continue to partner with the industry’s top repair centers in an effort to deliver upon Service King’s promise of superior collision repair service backed by a lifetime guarantee. Five Star Collision Center and its team certainly succeed in delivering high-quality service, and we look forward to a successful partnership together.”

The deal marks Service King’s second in Colorado this year as the organization operates 325 high-quality collision repair centers in 24 states across the U.S. The organization ex-

pects to continue its national expansion through its strategic growth initiative.

“The entire Five Star Collision Center team is proud to join the Service King family,” said John Santistevan, previous owner of Five Star Collision. “Our customers and teammates have built Five Star Collision into what it is today. The support and resources provided by this partnership will only enhance the overall experience we are able to provide. We look forward to a very bright future under the Service King name.”

Santistevan founded Five Star Collision Center in 2000 and the business quickly earned a reputation for superior customer service and highquality repairs.

Service King is one of the fastest growing national operators of highquality collision repair service and works with all national insurance carriers to provide a best-in-class repair experience for customers.

For more information on the organization, or to find a local Service King repair center, visit www .ServiceKing.com and follow the company on Facebook, Twitter and Instagram.

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 27

Hawaii Body Shops and Their Customers Handicapped by Insurance Issues

by Stacey Phillips

On the north side of the Big Island of Hawaii, in a quiet little town named Kamuela, Judith was at home watching a football game. She noticed her back door was open and soon realized her 2014 BMW X3 had been stolen from her garage. Two weeks later, police located and recovered the vehicle about 100 miles away on the opposite side of the island, in an area called Puna. Not only had it been driven approximately 2,000 miles, but the entire vehicle had been vandalized, the exterior had large dents and scratches, the seats and seat belts were cut, the tires were flat and there was graffiti throughout the interior.

The vehicle was taken to a tow yard in Hilo where a GEICO auto damage appraiser told Judith the car was repairable for less than $8,000. “I went into a tirade,” said Judith, who is 76 years old. “I felt that there was no way

Matsumoto.

“Rissa took me under her wing.

She was just a blessing. She was so helpful,” Judith said.

After the vehicle went through a thorough mapping and blueprinting process at Auto Body Hawaii, GEICO was again notified. The vehicle was re-

Excerpt of the Appraisal clause from Judith’s GEICO insurance policy: 6. Appraisal: If we and the insured do not agree on the amount of loss, either may, within 60 days after proof of loss if file, determine an appraisal of the loss. In that event, we and the insured will each se-

inspected by a third appraiser, who then determined it to be a total loss.

The shop recommended that Judith reach out to Billy Walkowiak, CEO of Collision Safety Consultants.

“We recognized that the owner needed someone who would be representing her best interest,” Rissa said. “With these kinds of situations,

lect a competent appraiser. The appraisers will select a competent and disinterested umpire. The appraisers will state separately the actual cash value and the amount of the loss. If they fail to agree, they will submit the dispute to the umpire. An award in writing of any two will determine the amount of the loss. We and the insured will each pay his chosen appraiser and will bear equally the other expenses of the appraisal and umpire. We will not waive our rights by any of our acts relating to appraisal.

“These body shops are getting beat up left and right, and there is nobody there to help them.

It is happening all over the islands,” — Billy Walkowiak

“I call him the ‘Terminator’ because he is,” Judith said. “I knew I needed help because the car was a total. They never want to say it’s a total because they have to give the value of the car.”

Walkowiak said GEICO’s licensed adjuster, Bill Harwood, the auto damage supervisor for GEICO’s Hawaii Claims Office – Outer Islands, told him he was the GEICO appraiser and wanted to use the evaluation from CCC to determine the value of the vehicle. Since they did not agree on the amount of the loss, the next step was choosing an umpire. Walkowiak provided three names.

“He said the umpire has to be a licensed adjuster on the island,” Walkowiak said. “I had a copy of the policy and it doesn’t say the umpire has to be licensed and doesn’t say it has to be someone from Hawaii. The policy said a competent umpire.”

Eventually, they agreed to use an independent appraiser recommended

by GEICO who turned out to be located out of state.

“Mr. Harwood recommended the See Hawaii Body Shops, Page 30

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• Dedicated Delivery • Large Stock of OEM Parts that the vehicle could be repaired for the amount they suggested so I called the main office of GEICO and asked for another adjuster.”

The vehicle was then towed to GEICO’s DRP shop and a second appraiser was assigned to re-inspect the car. Judith said she was informed once again that the car was repairable.

“The car is worth over $50,000,” she said. “I said, ‘there is no way I’m accepting that.’”

She called the local BMW dealership and they suggested contacting Auto Body Hawaii in Kona. Judith had her car towed to the shop, which is owned and operated by Dale and Rissa

your average consumer does not know what their rights really are or even know they actually have rights.

We see it happening over and over on a daily basis. People need to read and understand their insurance policy.”

Judith hired Walkowiak to help determine the actual cash value of the BMW. “Once it was totaled, they offered a value much below what I believe the value of the vehicle was,” Walkowiak said. “She [Judith] invoked the appraisal clause, which says that each party shall hire a competent and disinterested appraiser.”

28 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

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Continued from Page 28

Hawaii Body Shops

umpire that we ultimately agreed to use,” Walkowiak said. “I found it comical that not only was he not a licensed adjuster but he also wasn’t even located in Hawaii, which was the original reason Mr. Harwood rejected my umpire recommendations. I guess this now sets a precedent for our next umpire selection.”

After receiving the umpire’s ruling, Walkowiak said he was able to obtain an additional $6,700 for Judith’s vehicle.

“It was a long hard battle fought, but GEICO was forced to finally declare it a total loss and the grieving GEICO paid me $34,000,” Judith said, who describes her feeling as “finally in a joyous frame of mind.”

“It took the stress off because I knew there was someone there to help,” she said. “The guy [Billy Walkowiak] is sharp. It was well worth the money.”

Janice Hobart, GEICO’s Assistant Vice President of Corporate Communications, told Autobody News that “GEICO was happy to work with our customer to resolve the issues throughout the claim.”

After dealing with this situation, Walkowiak said it has actually motivated him to get his adjuster’s license in Hawaii.

“These body shops are getting beat up left and right and there is nobody there to help them,” Walkowiak said. “It is happening all over the islands. It has been going on a long time and they have been struggling. It’s getting worse because nobody has challenged them [the insurance companies].”

In addition to working on another total loss claim in Hawaii, Collision Safety Consultants is assisting with two diminished value claims in the Aloha state.

Walkowiak wants other shops to know they are not alone and how important it is to reach out for assistance when a consumer or body shop is struggling with an insurance company.

“There is someone out there to help their consumers and help them get paid for proper repairs,” he said.

“It pains me to watch how long some of these insurance claim interactions take to reach a conclusion,” said Dale Matsumoto, owner of Auto Body Hawaii. “The time it took from the first estimate to the time the vehicle was de-

Tim Ronak: Body Shops in Hawaii Facing a Sea of Change

Tim Ronak, Senior Services Consultant with AkzoNobel Automotive and Aerospace Coatings, works with several shops in Hawaii, including many that have agreed to be part of some form of a Direct Repair Program (DRP). Autobody News reached out to Ronak to find out more about the current state of the collision repair industry in Hawaii.

“Most of the businesses on the Island(s) are owned by the operators and function much like a family business,” Ronak said. “For years, the assertion has been that the rate paid for repairs has been ‘determined’ by the insurer paying the bill, and occasionally they adjust rates up or down as well as deem whether required procedures are billable or not. termined to be a total loss and Judith accepted the settlement was ridiculous and unacceptable. We are finding that much time and money are wasted due to the inefficiencies of the insurance company. Many of the delays the consumer experienced could have be reduced if the insurance company utilized experienced appraisers and pricing tools that are more reflective of the actual local market prices. Just the fact that this is happening implies that this process is unfairly stacked against a consumer when they have a loss.”

Sabrina Dela Rama, manager of the Tony Group Collision Center in Waipahu, located on Oahu, is dealing with similar issues. Recently, Dela Rama went to court regarding a situation with her aunt’s vehicle and Farmers Insurance.

“Farmers decided to short pay this claim by trying to pay us their contracted rates and not the market rates, as we are not a direct repair shop for Farmers,” Dela Rama said.

Both parties were referred to mediation and according to court documents, Farmers refused to mediate. The case was recalled and the parties were ordered to mediate again. When no resSee Hawaii Body Shops, Page 35

30 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

“The fragmented small ‘family’ business mentality has handicapped the industry in Hawaii more than it has in most other areas of the country. It has an extreme cost of living, yet has a lower labor rate than many areas in the U.S. that have much lower costs of living.

“With all this effort to limit reimbursement for collision repairs, it is interesting that Hawaii, according to NAIC Insurance Information Institute, was the most profitable state for insurers to sell auto insurance for the 10 years ending in 2014.

“This is where the challenge comes in… some insurers felt that since they pay a specific rate in some shops (either through a DRP or otherwise) or define certain procedures as not billable (conceded

by DRP shops) that it should apply to all shops. The conflict started when one shop became manufacturer-certified to be able to support the new vehicles produced and sold by their organization. The manufacturer required some expensive equipment and also a commitment to participate in ongoing training for technicians. The manufacturer also required performance of specific repair procedures in a specific way to ensure the safe operation of all safety systems after repairs are completed.

Initially, the facility simply tried to avoid conflict by not performing repairs for specific customers whose insurers were unwilling to reimburse for all procedures at the rates the facility charged. The manSee Tim Ronak, Page 34

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Continued from Page 30

Tim Ronak

ufacturer stepped in and indicated that they indeed needed to provide service (including collision repairs) for vehicles they sold.

“This created two conflicts: 1. DRP (asserted) Rates were inadequate to provide an adequate return for the required new ongoing investment in training and equipment that would be critical to ensure the capability to repair back to the manufacturer-recommended state ensuring consumer safety. The investments will no longer be one-time expenditures, as the investments will be ongoing as new technology will displace old technology at a more frequent pace than in the past, requiring a

more frequent and sizable investment.

“Aside from the anti-competitive legality of an insurer attempting to limit reimbursement to a consumer based on what that insurer can contract with elsewhere, consumers are free to select repair shops they feel will perform repairs to their satisfaction at a reasonable rate. In this case, the facility researched local retail rates and voluntarily left DRP programs that did not reimburse consumers at the competitive retail door rates charged by the facility. An attempt by an insurer to limit or cap rates paid to reimburse consumers to the specific contracted DRP rates when working with facilities outside of that DRP contract is prohibited through the Sherman Act and is a

34 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

defined anti-competitive behavior.

“2. Specific procedures required by the manufacturer to return the vehicle back to a state ready for the next collision need to be performed.

If the procedures are required by the manufacturer and as part of a certified repair, it does not leave the facility any realistic options. The procedures NEED to be performed and completing them for free while paying technicians with no reimbursement is an unrealistic expectation. Not performing the recommended procedures will leave the consumer at additional risk than they were exposed to prior to the repair.

“In June 2017, an article reported that Thatcham in the UK had seen repair severity increase 30 percent

in just the last three years and blamed manufacturer safety system technology. The efforts of insurers to manage severity through rate capping and denial of procedures is becoming a huge friction point. In an environment where severity is increasing due to advancing technology, the losers seem to be the repair shops that face a severity metric they have no ability to manage. This conflict is starting to elicit change, but the constant battle and accusations of charging for things that are not needed is something that can take a toll on anyone. The reality is that this market out in the Pacific is facing a sea of change and the technological tsunami of new vehicle safety systems and Advanced Driver Assistance Systems (ADAS) is forcing many out of their comfort zone.”

Continued from Page 30

Hawaii Body Shops

olution was reached, it went to trial and the court found in favor of the plaintiff.

Since that case was settled, Dela Rama began working on two more files involving Farmers Insurance.

She said they have invoked the appraisal clause on one of the files, which Dela Rama believes is a first on Oahu.

“Even after Farmers lost in court, they are using anything they can to not pay a fair and reasonable repair—how is that?” Dela Rama said.

The second file involved a claimant’s vehicle and the insurance company paid in full, including body supplies, after a demand letter was sent to their insured.

“They [the insurers] continue to cause Tort Interference to avoid paying a reasonable and fair market rate,” said Dela Rama.

Tortious interference is defined by the Legal Information Institute at Cornell Law School as “…a common law tort allowing a claim for damages against a defendant who wrongfully interferes with the plaintiff’s contrac-

tual or business relationships.”

According to the 2016 Hawaii Revised Statues (HRS) Insurance Code: §431:10-220 “Policy must contain entire contract. (a) No agreement in conflict with, modifying, or extending any contract of insurance shall be valid unless in writing and made a part of the policy.”

Dela Rama said that after a loss is accrued and an estimate is prepared, the insurance company usually sends a letter stating if the insured or claimant chooses a shop that is not part of a DRP and the shop charges more than what the Farmers estimate is, they will have to pay the difference.

“The issue is that it is also misleading, as this letter is given out when the initial estimate is done, which is missing a lot of required procedures; therefore, customers think that’s all the insurance will pay,” Dela Rama said.

“That letter seems to be breaking HRS 431:10-220 as the insurance company is making changes after a loss accrued; that’s not in the entire contract/policy. They’re changing the policy verbiage to limit rates and coverage after the fact.”

Hawaii is a “no-fault-state” meaning that the insurance company will pay

for injuries up to a certain amount.

“Because ‘no-fault’ applies to injuries, not to vehicles or property, the driver at fault in an accident is responsible for damage to vehicle and property,” according to Hawaii Motor Vehicle Insurance Information.

“Even though we’ve been involved in these recent situations with Farmers, we are not anti-insurance,” Dela Rama said.

The Tony Group currently has direct repair contracts with insurance companies and also works with nonDRP insurance companies.

“I want shops to realize that our duty is to complete repairs for our customers,” Dela Rama said. “We are obligated to them. Sometimes, we as collision repairers forget who the customers are.”

“We don’t build these vehicles,” Rissa Matsumoto said. “We, as the repairer, have the responsibility to repair these vehicles back to their safety condition prior to the accident.”

Farmers Insurance declined to comment.

www.autobodynews.com

Certified Collision Group™ Appoints Martin Evans as VP

Certified Collision Group™ (CCG) announced the appointment of Mr. Martin Evans to Vice President of Business Development on July 18.

A seasoned business development executive, Evans provides more than 25 years of direct automotive refinish distribution and key account development and management including large MSOs across the U.S. and Canada.

“Our team and board’s broad industry relationships allows us to continue to attract the industry’s most dedicated, talented and proven professionals; those who are truly committed to helping the industry by addressing today’s significant challenges and opportunities alike”, stated Bruce Bares, CCG President and CEO. CCG now operates in 22 states and is quickly expanding beyond 135 locations. It provides non-intrusive competitive solutions to well-established collision repair businesses with Proven Performance relative to repair capabilities, customer satisfaction and client KPI’s.

For more information visit: www .certifiedcg.com

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 35

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No. Carolina Audi Asheville Asheville 828.232.4002 828.350.3560 Fax M-F 7:30am-5:30pm Sat 8am-4pm www.audiasheville.com

Audi Cary

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Virginia Audi Roanoke Roanoke 540.562.0168 540.562.4819 Fax M-F 7:30am-5:30pm; Sat 9am-1pm precision-parts@duncanauto.net www.audiroanoke.com

Audi Virginia Beach Virginia Beach 757.687.3488 757.687.3490 Fax M-F 8am-6pm audi_parts@checkeredflag.com www.audivirginiabeach.com

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Charlottesville 434.951.6160 434.293.5151 Fax M-F 7:30am-6pm; Sat 8am-1pm spalmer@flowauto.com www.flowaudicharlottesville.com

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Cary 877.204.5449 919.469.1431 Fax M-F 7:30am-6pm; Sat 8am-5pm parts@leithimports.com www.audicary.com

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 37

National News

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Snapsheet President: Photo-Based Estimating, Claims are the New Way for Carriers with Chasidy Rae Sisk

by Chasidy Rae Sisk

In early May, Allstate announced it will be dropping its drive-in inspection stations, instead directing customers to the photo estimating system available through its mobile app – citing that customers have embraced the technology, with many opting for the virtual experience. According to Snapsheet President CJ Przybyl, this represents a new normal for the industry which he discussed during an informative webinar on May 31.

A small number of insurance companies have implemented mobile self-service technology, specifically the ability to send a branded self-service mobile app to a customer in order to obtain photos of a damaged vehicle.

Przybyl calls this “the first step toward virtual claims.”

“Very few carriers are doing this themselves, starting with mobile selfservice and getting photos from the customers,” he said during the webinar. “But these photos only capture the first portion of the claim. There’s still a need to negotiate supplements, handle triaging and total losses, deal with complaints and so forth. All sorts of other mechanisms happen outside of mobile self-service to process a claim, and though you could utilize self-service for up to 20-50% of a claim, it would be very taxing and painful on the backend, leading more carriers to realize they need a full virtual claims platform.”

Compared to mobile self-service, virtual claims refers to the ability to process 100% of a claim by obtaining photos through multiple channels, tracking the progress in a dedicated software platform, and centralizing all estimating resources.

Przybyl explained, “This doesn’t mean you’ll estimate and settle 100% of claims virtually, but we’re moving in that direction. With technology like our virtual claims platform, 100% can start and be triaged perfectly based on photos and information. Full automation of claims requires more technology and a new way of processing claims.”

Automated claims integrate a virtual claims platform with data in order to apply machine learning and fully

automate the generation of estimates and other tasks. Przybyl noted, “As we’re implementing this technology at Snapsheet, we’re taking the data that’s been submitted and using it to make intelligent decisions, utilizing the analysis from machine learning and artificial intelligence.”

Przybyl stressed that there’s no chance that insurance adjusters will go away within the next ten years, but rather this process can actually supplement their jobs. According to Przybyl, “Around 70% of our claims communications are fully automated. Processing a claim requires more than just utilizing visual learning to generate an estimate.

It’s a more comprehensive process and that needs to be considered holistically, which is the value Snapsheet’s virtual claims platform provides.”

Serving 45 automotive insurance carriers, Snapsheet offers scalable, cloud-based claims software, operating in a single, unified platform that is completely customizable for each specific insurance carrier’s workflow.

The platform allows carriers to track and analyze new metrics and automate metrics traditionally found offline, control costs, enable payments, streamline shop interactions and control the customer experience.

“Many carriers will struggle to handle photo estimating on a large scale because their infrastructure is not built for that,” Przybyl explained. “Our scalable software allows for infinite data storage and the ability to easily add modules to solve problems, and we’re always innovating, employing code updates two or three times each day. Because of this commitment to flexibility and constant innovation, we’ve become the largest provider of virtual claims processing.”

In 2013, Snapsheet processed 10,000 virtual claims, and the company forecasts that it will handle over 400,000 claims in 2017. When insurance carriers need an estimate, they provide the claim to Snapsheet’s customer support team to capture photos and triage the claim.

Once Snapsheet receives photos, their estimators prepare an estimate and then work with the shops, keeping the adjuster and carrier informed,

38 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

trading data and analytics, and giving the customer a virtual experience.

Przybyl stated, “This isn’t just a piece of mobile technology; it’s about having the customer self-select into the right virtual method and then having all of the real-time tools to be able to engage them, preempt problems with predictive analytics, handle all of the engagements, and basically use technology to have your resources feel like they’re standing over the customer’s shoulder when, in reality, the customer is in the field, doing the work themselves and then internalizing all of the outcomes.”

Przybyl believes most of the damage is captured in these photos, providing a good idea of the needed supplements. “We have 98% accuracy on the original estimate based on photos, and a lot of our technology is built around getting the right photos from the customer to make the correct assessment. Teardown will reveal the

additional damage, and we still need to handle supplements and negotiate with the shop which gets their information from normal sources, such as OEM requirements.”

All of Snapsheet’s estimators are W-2 employees with proper licenses on file, and Snapsheet’s information is provided to shops on the original estimates. According to Przybyl, “We are using technology to optimize operations, but more of our data has to do with the customer experience. We help insurance carriers with their processors; there are a lot of claims, and frequency and severity are both up. Snapsheet’s platform can help these carriers today.”

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Social Media for Shops Are You Gearing Up for Voice Search? with Ed Attanasio

“Siri, what is the meaning of life?”

“I find it odd that you would ask this of, me, an inanimate object.”

Siri and I are not getting along right now. I accidentally called her Cortana the other day and she is obviously still fuming. I asked her for movie times just now and she said go ask Cortana.

Whether her name is Siri, Cortana or Alexa, she and her sisters are going to be more and more in all of our lives from now on. Say goodbye to the keyboard generation, because typing is a drag and takes way too much time— just ask your kids.

If you spend time with anyone in their twenties, you’ll notice that they prefer voice assistants over keyboards.

This is a funny reversal of what happened in the early days of personal computing when the keyboard was part of the problem. Voice control is here to stay and there is no doubt that cell phone and tablet manufacturers

are looking for more ways to make voice even more prevalent in every aspect of society.

There are three main reasons that are driving voice searches: 1) Voice search is starting to become part of the Generation Z’s mobile behavior as

they spend more of their day accessing apps and making them a bigger part of their lives. 2) Enhanced voice search apps such as Siri and Cortana are supported by AI technology and

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

new proactive voice concierge services and 3) The growing consumer demand for wearable devices with voice control as a main feature. With voice search gaining major momentum, companies (including body shops) should be figuring out ways to optimize voice search and deliver seamless services, all from a mobile platform in all of their online marketing efforts.

If you’re doubting the importance of voice search, check out these stats: According to GlobalWebIndex, voice search is increasing at the expense of browser-based search. In a recent study commissioned by Google, 55% of users under the age of 18 use voice search apps more than once daily, in comparison to 41% of adults.

This study also revealed that 57% of people 18-25 aren’t worried about

protocol when using their smart phones, compared with only 24% of adults polled. As a result, companies will have to react to how your current and potential customers “voice their search” as the keywords and approach differ from text search in their browsers.

The numbers are compelling and companies like Apple and Google are undoubtedly listening. These are numbers compiled by HubSpot, Search Engine Land and Statistica: ■ 19% of people use Siri at least daily.

■ 37% use Siri, 23% use Microsoft’s Cortana AI, and 19% use Amazon’s Alexa AI at least monthly.

■ 20% of search queries on Google’s mobile app and on Android devices are voice searches.

■ 60% of smart phone users who use

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voice search have begun using it within the past year, with 41% of survey respondents having only begun to use voice search in the past six months.

■ 43% of mobile voice search users do so because they say it is quicker than going on a website or using an app.

■ 21% of mobile voice search users do so because they say they don’t like typing on their mobile.

While many marketing experts and trying to learn on the fly about the ins and outs of voice search, others feel it’s much ado about nothing at least for now. One of these people is Luke Middendorf, the owner of WSI Connect, a digital marketing firm in Concord, CA, that includes body shops as some of his clients.

“To be honest, voice search is actually pretty low on our radar, Middendorf said.”I’m just not convinced that customers are using it to source local services. I know there are a lot of articles out there that point to unprecedented growth, but I believe that most of those are related to the weather fore-

casts, driving directions, or branded searches (ordering a pizza from Dominos).”

By continually monitoring consumers’ online behavior and tracking their habits on their personal devices, Middendorf is able to find consistencies that will hopefully anticipate the next best thing. “There is a lot of research that goes into choosing a local service provider, including body shops, contractors, plumbers, etc.,” he said. “People like to look at a few different options which includes the companies’ websites and online review profiles. This is difficult to accomplish with voice. The most important things businesses need when it comes to digital marketing are mobile friendly websites (only about 40% of the prospects that we meet with have one) and a strong local SEO strategy (I’d say around 5% of the prospects that we meet with have any kind of strategy). If a business has both of those and still has capacity for more clients they should look at PPC, email marketing, and social media.

Once they successfully implement those they can consider content marketing and marketing automation. At that point we might start looking into

voice search.”

Angel Iraola, the owner of Net Business Consulting & Solutions in Santa Rosa, CA is currently trying to figure out a way for his clients to leverage this technology to their advantage, he said. “We think that those companies that will adapt quickly to the different types of voice search will succeed in that arena where others will be left behind, just like with any new type of technology,” Iraola said.

“If you ask Siri for a list of the top body shops in any region, you will get 15 results, so how do you get to be #1? These are the things we need to know now, instead of 2-3 months from now where everyone else is on the same path.”

Iraola says that voice search is not only here to stay, but will eliminate keyboards altogether on personal devices soon. “Many of these smart houses with sophisticated systems that control climate, electronics, etc. are run on voice and our cars are going that way too, so get ready for voice search and be prepared for when it truly explodes. People have realized that typing is time-consuming and a little clunky when you can just talk and get what you want.”

Auto Care Careers Now Offers Job Posting Packages

Unlimited and bulk job posting packages are now available on the Auto Care Careers Industry Job Board.

“We are very pleased to announce that custom bulk and unlimited posting packages are now available,” said Courtney Hammer, director, job and career development, Auto Care Association.

Each posting made on the Auto Care Careers Industry Job Board is automatically shared on multiple jobs boards via a broad industry network, including Auto Care Association, Automotive Service Association (ASA), etc.

“With the addition of custom bulk and unlimited packages, we are making it easier for companies of all sizes to share more exciting career opportunities and connect with thousands of qualified candidates interested in a career in the dynamic auto care industry,” continued Hammer.

Hiring managers will find the new job posting rates by visiting http://jobs.autocarecareers.org/rate.

www.autobodynews.com

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 41

Historical Snapshot

—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988.

He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

Talk of Other Insurers Requiring use of PartsTrader Goes Back Five Years with John Yoswick

20 years ago in the collision repair industry (August 1997) A ban on the use of non-OEM parts on vehicles covered under warranty, and a call for insurers to share more information about their claims handling guidelines were among the issues debated by shop owners, association leaders and other participants at the National Leadership Conference held in August.

The National Leadership Conference brings together leaders in the industry for a day of training as well as discussion of national issues. The conference allows participants to prepare and debate industry position papers or resolutions.

At the conference held in Anaheim, CA, three resolutions were approved with little or no opposition among the more than 100 participants:

“Who Pays for What?” survey earlier this year), although more than 60 percent of the shops using such a system say they are paid “always” or “most of the time” based on the materials invoice by the eight largest auto insurers.

15 years ago in the collision repair industry (August 2002) It’s a frustration every independentlyowned autobody or automotive shop owner has faced: The job that gets held up, the part that gets unnecessarily damaged or replaced, the technician time that gets wasted–all because of a lack of service or repair information from the automakers.

After years of griping about the lack of easily-accessible OEM vehicle information, there may be some light at the end of the tunnel for independent • One stated that non-OEM shops hoping to get the inforparts should not be used in the mation, training and tools aurepair of a collision-damaged tomakers have long made vehicle that is still under waravailable to their franchised ranty if the use of such parts dealers. A combination of cowould violate the warranty. operation and coercion culminated last fall in an agreement • Another called for a change by more than a dozen of the In 2012, Bill Haas in federal regulations to re- was helping lead the OEMs to make such informaquire airbag systems be re- Automotive Service tion available by January 1 of placed (or otherwise made Association’s effort next year. While a giant step on access to OEM operational) as part of the reforward, there is still work to repair information pair process if a vehicle had be done, according to Bill such systems originally.

Haas of the Automotive Service Association.

• A third deemed the current system by “There’s really three aspects to which shops are compensated for rethe OEM information issue: availabilfinish materials “archaic,” and called ity, accessibility and affordability,” for the use of refinish materials manuHass said. “At some point, all of these als or guides found to be fair, objective things are going to have to fall in and acceptable across the insurance place. [Last fall’s letter by the OEMs] and repair industries. might address the availability issue, but that doesn’t mean that the infor– As reported in Auto Body Re- mation is accessible and it certainly pair News. There has been only some doesn’t mean it’s affordable.” movement in the industry toward the That’s why ASA and a variety of goals of the three objectives. Federal industry organizations are still battling air bag regulations have not changed. the OEM service and repair informaSome states, including Arkansas, lim- tion issue on a number of fronts. its the use of non-OEM parts on vehicles still under the manufacturer’s – As reported in Autobody News. warranty, though non-OEM parts pro- Though efforts to pass federal “Right ponents are working to loosen such re- to Repair” legislation to ensure access strictions. And 20 years later, less than to OEM repair information failed, a 20 percent of shops are using a mate- similar regulation was passed at the rials invoicing system (according to a state level in Massachusetts, giving the

42 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

aftermarket repair industry legal leverage to ensure automakers have complied with the voluntary agreement.

Haas left ASA in 2012 and is trainer and consultant with Educational Seminars Institute.

craftsmanship in regard to the refinish process of a repaired panel.

– As reported in Autobody News.

Still 10 years later, more than half of shops (51.9 percent) in a “Who Pays for What?” survey (www.CRASHnetwork .com/collisionadvice) earlier this year 10 years ago in the collision repair reported being paid body labor industry (August 2007) time rather refinish labor time A position statement on the for “feather prime and block.” “feather fill and block proceAlmost half (47.4 percent) of dure presented by the Automore than 750 shops respondmotive Service Association ing said the painter completes (ASA) “Refinish Subcommitthat process in their shop, 23.3 tee” has been approved by the percent said the process was association’s board of direcIn 2012, George split between the painter and tors.

Avery of State body tech, and another 10.2 The approved statement Farm said it was too early to know percent said a combo tech makes clear that as an indusif other insurers (who does both body and paint try standard, the process of would adopt use work) does the feather prime “feather fill and block” occurs of PartsTrader and block process. Less than during the refinish process of 1-in-5 shops (19.1 percent) said a body a repair. ASA recognized the necessity technician completes all of the feather of this process to provide the consumer with the highest standard of repair and See Use of PartsTrader, Page 44

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Western Associations

Victoria Antonelli is a freelance writer and model, based in Los Angeles.

She has been writing for the collision industry since 2013. She can be reached at vantonelli.autobodynews@gmail.com.

CAA Members Tour UTI Long Beach, Learn to Negotiate Pre and Post Scans with Victoria Antonelli

Hillel Shamam. “UTI Long Beach has more collision students now—100 On Thursday, June 22, members from on any given day—and they have a several California Autobody Associa- graduation every six weeks.” tions in Southern California gathered At 6 p.m. there was a meet and with students at Universal Technical greet style dinner for UTI Long Beach Institute-Long Beach for the chapters’ students and CAA members. The two groups had the opportunity to chat about the industry, upcoming projects at the technical school, and a variety of other topics as part of the second annual UTI Tech Showcase.

“The UTI Tech Showcase was better this year than last, but we had only half the attendees,” said Shamam.

Shamam added that there CAA members from across Southern California were given were several shop owners and a tour of the UTI Long Beach state-of-the-art facilities more than 40 collision stumonthly meeting. The evening started dents at the meeting. off with a campus tour at 5 p.m.

“It was a tremendous opportunity “The tour was great,” said CAA for our collision program students to Glendale/Foothill Chapter President, meet and have dinner with local colliby Victoria Antonelli

Continued from Page 42

Use of PartsTrader

prime and block process.

5 years ago in the collision repair industry (August 2012) In New Zealand where a version of PartsTrader was first developed in 2003 for the largest insurer in that country, nearly all insurers have since adopted use of the system. Does State Farm foresee PartsTrader being available for use by other U.S. insurers and shops outside of the Select Service program?

“Too early to tell,” State Farm’s George Avery said, “but State Farm worked with PartsTrader with the intent to have a tool flexible enough for anyone to use.”

Avery has said that part of the reason State Farm mandated use of the system by Select Service shops in the four pilot markets is because a “critical mass” of both shops and vendors was needed in each market to make a test viable. But does State Farm foresee eventually making use of PartsTrader an option (just as it does not mandate

which estimating system a shop uses) given that the insurer already has other means to measure a shop’s performance and given that State Farm believes the system will prove beneficial for shops (and thus would not need to be required in order to gain acceptance)?

“Again, too early, but our vision would be to have all Select Service repair facilities use the tool,” Avery said.

– As reported in CRASH Network (www.CrashNetwork.com), August 13, 2012. Though rumors – often passed along by PartsTrader personnel – of other insurers adopting use of PartsTrader have circulated for several years, no other insurer has mandated use of PartsTrader.

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44 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

sion shop owners who represent their future employers,” Larry Hohl, president of UTI-Long Beach. “And those employers were able to experience the high standard of education, lab training on state-of-the-industry equipment, and professionalism that we use to prepare our students for a highly successful career.”

Jake Rodenroth, director of client services at asTech, showed attendees how to negotiate pre and post scans

At 6:45pm, guest speaker Jake Rodenroth, director of client services at asTech, took the podium. He covered diagnostic solutions and services

for the collision repair industry, specifically how to negotiate and justify pre and post scans.

“I’m trying to educate shops on how to staff, react to, implement OEM repair info, and ultimately build their business around diagnostics,” said Rodenroth “Especially now that more and more mechanical parts are becoming electrical, and therefore more difficult to work with.”

He added that these issues are not only diagnostic; they also affect the collision repair side.

“This technology isn’t going anywhere; it’s not a fad,” Rodenroth said.

“We have to prepare ourselves as best we can.”

However, this isn’t a “one size fits all” type of adjustment. Rodenroth said the measurements owners need to take to keep their shops up-to-date rely heavily on a variety of variables, including what state they’re in or whether they’re located in an urban or

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rural area.

“There are going to be some new requirements in Southern California that will change the current standards for emissions tests,” said Rodenroth.

An inside look at the UTI Long Beach classrooms

“As a result we will continue to see more clean diesel engines and small displacement gas engines built around efficiency, which will include turbo-charging and supercharging as well as start/stop and cylinder deactivation.”

Along with EV and Hybrid vehicles, Rodenroth said these exotic propulsion systems can create additional challenges for collision repairers when they require service.

For shops in rural areas that may have fallen behind on OEM requirements due to a lack of resources, Ro-

denroth said now is the time to get caught up before it’s too late.

“Shops use platforms like CCC and Outlook every day and feel completely comfortable navigating the programs. Shops must implement OE service information programs into their daily duties in a similar fashion,” he stressed. “Manufacturer service information sites provide the best resource for properly repairing the vehicle. I recommended subscribing to them if there’s a particular car you work on frequently; some of them are even free.”

Rodenroth added that shops need to ask themselves, “What are the trigger points in my business when we de-

cide we need to go look?”

He said the answer is right when that customer walks in the door. Don’t commit to repair a vehicle you don’t quite understand or lack the training and equipment to service.

Another topic Rodenroth discussed was the difference between aftermarket pre/post scan equipment and OEM pre/post scan equipment.

“At asTech, we tested the two side by side and noticed a pretty big difference, specifically around module counts, build data, functionality and updates,” he explained. “Everyone wants to talk about it, but we actually proved in a lab that OEM scanning equipment is the better choice.”

Rodenroth said if asTech could’ve taken the cheaper option, they would have.

“At asTech we spent over $600,000 on OEM scan tools and growing to support our client shops in the field,” he said. “We recently incorporated mobile into our busiAttendees of the June 22 CAA meeting were able to view ness to support our remote some of the repair projects the UTI students had been working on operations. We truly want to

FIX what we find.”

Rodenroth has 17 years of collision repair and mechanical experience and is Jaguar Landrover structural alu-

minum certified. He previously worked for ABRA Auto Body & Glass as part of their corporate operations and integration team.

“The discussion was well-received and informative,” said Shamam.

“It was great to meet more shop owners as well.”

For more information on CAA, visit calautobody.com. For more information on UTI Long Beach, visit www.uti .edu/campus-locations/longbeach-ca.

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Stacey Phillips is a freelance writer and editor for the automotive industry.

She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.”

She can be reached at sphillips.autobodynews@gmail.com.

Shop Strategies

How a PA Shop Delivers Excellent Customer Service & Receives Top Reviews with Stacey Phillips

When Jim Pfau talks to his customers at Alan’s Collision Center, he often asks if they are familiar with their vehicle insurance policy. The general manager of the Philadelphia, PA body shop said that since the average person does not have a clear understanding of their policy, he takes the time to explain the issues associated with the repair process, such as labor rates and parts usage.

Alan Zeitz founded Alan’s Collision Center in 1973. Just two years later, he decided to move to Florida and sold the business to Dennis Winokur and Bob Neisser.

“Our mission is to ensure vehicles are repaired safely and returned to pre-collision condition,” said Pfau, who has worked in the industry since

is important to review us. By the end of the repair, we usually wind up with a new friend. Google and Facebook are so important. Almost everyone reads reviews during a big decision and I understand the value of that.

We are NOT a DRP (direct repair program) shop, and we do believe in factory certifications. The industry is slowly changing, and I believe that over the next five years, certifications will be mandatory in order to keep your doors open. We do invest in our shop annually. The equipment we own is up-to-date and well-maintained. We are also an I-CAR Gold Class shop.

Alan’s Collision has a unique business model. We are certified for Ford F-150, Mercedes Benz, Hyundai, Honda and Nissan. A large percentage of our work is referred by two local new car dealers.

Our employees make all the difference. They are mature and work hourly so the work is topnotch and it shows. We have 15 people employed at Alan’s and most of them have worked here Alan’s Collision Center is located in Philadelphia, PA for over 20 years. We have a he was 16 years old. “We deliver the pair of twins who started right out of best customer service and workman- high school—Mike Kochis (lead metal ship possible and put our customers tech) and Steve Kochis (lead painter). first…always.”

Mike and Steve have never worked in Pfau was hired in 2012 to mod- another body shop. The brothers are ernize the business. Since then, the now in their 50’s. company has invested thousands of How has your background in dollars annually in the latest, most adthe industry prepared you to vanced equipment and training. work as general manager at the colliAutobody News talked to Pfau sion repair facility? about the importance of communicating to customers throughout the repair I spent all of my youth in my process, his views on scanning vehifather’s garage doing restoracles and the reason he thinks the shop tion work. When I was 18 years old, I consistently receives top reviews. landed my first job at Faulkner CadilYou have 19 five-star reviews lac as an engine rebuilder. on Facebook as well as five-star I was then hired at Acura of Huntreviews on Customer Lobby. Congratingdon Valley as a lead technician and ulations! What do you think sets Alan’s transmission specialist. Soon after, I Collision Center apart from others in was promoted to service manager. the industry?

During my first year as a young manager, I won a trip to Aruba, all exHonestly, it is simple. Listen to penses paid for being number one out your customers, educate the of 25 for customer satisfaction. customers, and keep them in the loop.

Later on, I was promoted again to Do quality work and sell yourself at the service director. I was in charge of four delivery. We show all of our customers award-winning service departments. the work performed and explain why it Our body shop manager had a heart

Q:

Q:

A:

A:

46 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

attack and I was asked to take over collision. This was a huge adjustment, as I

ter. It took me five years, but when I left, it was well in the black.

Five years ago, I was asked to take over the store at Alan’s Collision Center and modernize it. This has by far been my biggest challenge yet, and the most fun. I have an awesome group of friends on Facebook.

We exchange ideas and war stories every day.

Jim Pfau, general manager of Alan’s Collision Center

had never dealt with an insurer before.

I felt it was time to move on and “fix” another business, so I went to work for a local MSO. Quickly, our store became number one in service and received numerous awards.

Once I had everything dialed in, it was time to move on to my next project. I worked for a local Chevy dealer that had a dying collision cen-

How do you communiQ: cate the repair process to customers and what is the

importance of doing so?

During the first point of conA: tact, we review the scope of the damage and how we will repair it. We also inform customers about the way their insurance policy dictates what an insurance company will pay. The biggest eye-opener for consumers is See PA Shop Delivers, Page 50

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Industry Training

Stacey Phillips is a freelance writer and editor for the automotive industry.

She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.”

She can be reached at sphillips.autobodynews@gmail.com.

Jobbers Focus on Value-Added Services for Collision Repair Facilities with Stacey Phillips

More than 20 years ago, auto body shops routinely ordered individual paint colors from a paint distributor to repair vehicles. “You’d order it by the job,” explained industry veteran Joe Mattos. “That’s where the origin of the word ‘jobber’ came from.”

Over time and as the process evolved, jobbers placed paint mixing systems in shops where techs could mix their own colors. Today, “jobbers,” often referred to as PBE (paint, body and equipment) distributors, are taking on new roles in the collision repair industry.

“One of the key benefits of using a jobber is to have a partner to lean on who is up-to-date on industry trends and provides value-added services to help shops thrive in the competitive market,” said Kevin Bohte, sales manager at Mike & Jerry’s Paint and Supply. “With consolidation at an alltime high, it’s important for collision shops to really think about choosing a jobber who will be able to grow with them in an ever-changing industry.” The Louisiana company is a member of Refinish Distributors Alliance (RDA), a national organization of PBE distributors.

Mattos, manager of management analytics for ComCept (a provider of distribution management software), said the PBE industry is separated into generalists, such as O’Reilly’s and NAPA, that also sell hard parts; specialists, such as FinishMaster, National Coatings & Supplies (NCS)/Single Source (which merged in 2016); and other distributors that sell only automotive paint and body shop supplies.

He said most jobbers specialize in one or two of the five major automotive refinish paint manufacturers that dominate the U.S. market: Axalta Coating Systems, AkzoNobel, BASF, PPG Industries and Sherwin-Williams.

“Since approximately 65 percent of a collision shop’s paint and material purchases are paint liquids, jobbers focus on selling and supporting specific paint lines and can usually gain the shop’s remaining business if the shop purchases paint,” said Mattos, who sold his PBE business—Pro Finishes PLUS—to NCS in 2013.

“Abrasives, adhesives, masking and

safety items make up most of the remaining 35 percent of purchases.”

Over the last several years, paint companies have been providing additional services, often becoming a onestop-shop for collision repair facilities.

“This has become especially prevalent

over the last five years as the competition has increased significantly,” said Mattos. “A good jobber provides valuable services to its customers and can have a profound influence on a shop’s profitability.”

According to information from The Romans Group, compiled in a report by Focus Investment Banking automotive group in May 2017, jobbers are providing more value-added services to shops including the use of technology and software, order process automation and performance metrics.

There are many important considerations when choosing a jobber to ensure it is the best fit for the body shop.

Not only is it helpful to ask for referrals from other shops and interview the jobber, but Mattos also suggested checking with the paint manufacturer for recommendations.

Paul Derdich, western regional vice president of NCS/Single Source, said most shops choose jobbers based on relationships. “If I were a body shop owner, I would see what the company had to offer as far as business consulting and monitoring my purchases.”

Once a paint distributor is determined, a shop can usually expect a long-term partnership with a jobber.

“The distributor’s sales personnel then become a valuable resource for the collision shop, providing everything from equipment and accessory purchase guidance to training for the shop technicians,” said Paul Fiore, senior director of government affairs for the Auto Care Association.

“While their most basic function is to provide the actual vehicle paint used

48 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

in a collision repair to the shop, that simple transaction has become much more sophisticated, reflecting the evolution of vehicle construction and paint technology,” said Fiore, who was a former shop owner and liaison to the Paint, Body and Equipment Specialists community of the Auto Care Association. “The vast majority of body shops utilize distributors to enhance their ability to run an efficient, profitable business.”

“I would encourage all collision shops to seek out distributors in the marketplace who will serve them,” said Robert McKenzie, executive director of RDA. “Seek people out who are going to be more apt to have personal, direct service in the marketplace for you.”

Value-Added Services Provided

by Paint Distributors:

Inventory Management and Delivery Mattos said many jobbers will analyze

a shop’s inventory and create a stocking strategy to minimize the shop’s investment in product.

For example, Derdich said NCS/ Single Source offers a system that allows shops to track their inventory using bar codes. “Not only can we track paint purchases, but we can assess how many pieces of sandpaper a body man uses,” he said. “We can also do an analysis of estimates so if a shop feels like they are not profitable we can find out what’s missing.”

In terms of delivery, Mattos said, “Jobbers can also make special deliveries in emergency situations so that shop production does not suffer.”

Training/Education Training shop personnel is an important role of many paint distributors.

This might include paint systems such as waterborne systems, color matching and troubleshooting. Whether See Jobbers, Page 50

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Techs of Tomorrow: Student Says He’s “Fascinated by Everything” in Auto Body Program

by Victoria Antonelli

Justin Maldonado started taking courses at Texas State Technical College in Harlingen, TX 10 months ago. Before his “love and passion for vehicles” led him to pursue a career in collision repair, he spent his winter holiday and summer breaks painting gym floors across the state.

“This is a job that I had been doing since I was 12, so I’ve never had a normal Christmas or summer break,” Maldonado explained. “Every year I would be gone for months at a time just to be able to buy my own school clothes and help my dad, who had five other kids to provide for.”

Through this job, Maldonado was able to paint some of the most renowned gyms in Texas, including the San Antonio Spurs, Houston Rockets, Texas A & M, Dallas Mavericks, and University of Texas floors.

“Now that I have a wife and son, it’s so hard to leave them and not miss them while I’m on the road,” he said.

“This is why I came back to school; I just want a job that allows me to come home and see them at the end of the day and is good pay, along with many other benefits.”

Maldonado’s father, who also

attended Texas State Technical College, supported his decision to pursue trade school. Other members of his family were not as on board.

“Most of my relatives wanted me to become a doctor or lawyer, but I just

cheap products off Amazon and started painting YETI cups for gas and food money,” he explained. “I would paint the cups, put on the logo of the customer’s choice, and clear coat them as a way to help my wife pay the bills while I am still in school and am not working yet.”

Maldonado said he’s enjoyed every part of his courses so much, it’s almost impossible for him to pick a favorite project.

“I have been put on projects painting rims, and others where I’ve painted cars; each of them presented a new obstacle to overcome, making them all exciting to be a part of,” he explained.

Texas State Technical College Student Justin Maldonado “Currently, I am working on an F-150 with rust and couldn’t see myself working in a doc- a ton of body work that I am taking tor’s office for the rest of my life,” he care of, and after, we will paint the said. whole truck then bed line the fender Despite having no recent experi- flares, rocker panels and tool box as ence in the field, Maldonado said he’s well.” catching on fast to the concept of body Maldonado will graduate in Dework, prepping, and painting. He’s al- cember 2017. He plans on securing a ready been able to use his newfound job before then. skills to make money on the side.

“Early on in the first semester I For more information on Texas State bought a cheap paint gun and some Technical College, visit www.tstc.edu.

CARCO Announces the Launch of SafeRIDE Certified

CARCO, a leading provider of mobile technology that helps prevent automobile insurance fraud as well as background screening and monitoring services, has released SafeRIDE Certified, an independent vetting service that monitors both the driver and the car that riders use for appbased rideshare services.

SafeRIDE Certified is a risk monitoring and fraud prevention management solution for both the driver and the vehicle. It ensures that each driver displaying the SafeRIDE Certified shield in the app and on their vehicle undergoes ongoing monitoring by CARCO. SafeRIDE Certified also certifies the clean title and possible fraud events, and its in-house team of experts validates the vehicle.

Will Pagan, CARCO’s Senior Vice President states, “We are excited to introduce SafeRIDE Certified to the ridesharing market as it incorporates a comprehensive solution to the complicated issue of driver and vehicle risk management.”

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PA Shop Delivers

always aftermarket or salvage parts usage. They are always under the impression that if they demand OEM parts, the insurance companies will simply say OK. We explain the entire process and how we interact on their behalf to get the claim paid correctly.

We continually update consumers throughout the repair process. We make them aware of any issues that require their attention regarding the insurance claim. We also show them industry publications and arm them with information to refute an insurance script. I have always believed that an informed customer is a good customer.

Our repair process is not anything elaborate. We blueprint the repair after a complete tear down, order parts through CollisionLink and research ALLDATA for a correct repair. A work order stays with the vehicle and is quality checked at each hand-off point. We match parts for correctness and then monitor the cycle time in the office. We also use our paint scale in the front office to determine the true costs of repair.

Every file has the quality control Continued from Page 48

Jobbers

classes are held at the shop or locally offsite, jobbers often hold classes for shops to ensure techs are knowledgeable about the products they use and can best utilize them for repairs.

Providing Information/Metrics Jobbers can be the top source of information for the shops they work with.

They commonly collect basic data from their customers and combine it with sales data to provide materials cost analyses to shops. “This can help a shop determine areas of improvement,” explained Mattos. Additional information, such as paint and material (P&M) profitability, refinish hours per RO benchmarks, re-repair information and actual P&M sales/hour calculations are also commonly shared.

“Monitoring of costs and how it relates to a facility’s business is something else we do as a supplier,” said Derdich.

“That’s a huge value for a customer.”

Business Consulting Increasingly, more jobbers are taking on the role of small business consult-

sheet, ALLDATA research and electronic notes among our staff. When our customers see everything in place, it gives them a sense of confidence.

In your opinion, what is the importance of scanning vehiQ: cles and what steps have you taken to

explain this to consumers, employees and the industry in general?

This is a big topic! It is not only A: important, but also a legal obligation. Can you imagine if a repair shop

did not scan and calibrate the collision avoidance system and the owner was in an accident as a result? Personally, I do not pre-scan every repair. Pre-scanning, in my opinion, is to catch any system failures early in the repair process. If a vehicle is in for minor body repair, I do not see the need to pre-scan. However, those vehicles will always get postscanned and calibrated. This is extremely important to review with the owner of the vehicle prior to the repair.

We arm them with the position statement from the vehicle manufacturer and explain why it is important. We also explain to the owner why aftermarket scan equipment cannot properly see all of the data. We use an outside vendor

ant for some of their shops; however, in the majority of cases Derdich said smaller distributors will often rely more on a paint company to help them with small business consulting.

Many shops are finding multiple benefits having a team of knowledgeable professionals who truly understand the business and can advise them on business decisions.

Personal Service It’s not uncommon for distributors to visit collision repair facilities on a regular basis, usually weekly, and provide relevant industry information.

“In our business, we like to get to know our customers on a personal level and also take the extra step to learn as much about their business so we can better service them,” said Bohte. “We believe our relationship should extend beyond our products to value-added and other services designed to help a collision center operate to its fullest potential.”

“Jobbers are rethinking their business model to deal with industry dynamics,” said Mattos. “However, the basic functions of a jobber continue to be an important link to the collision repair industry.”

50 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

that has OEM software, with the exception of Mercedes-Benz.

I have been heavily engaged with one insurance company that is flat-out refusing payment to the vehicle owner.

This insurance company is one of, if not the largest, in our country. I have spoken to the managers there and they hold the position, “…that if there is no light on the dash, the vehicle does not need a scan or calibration.” This is oldschool thinking and despite the numerous articles and position statements I have provided, they will not change their point of view. As a result, I have made several complaints to the Pennsylvania Department of Insurance, contacted our Attorney General Josh Shapiro, who happens to be one of our customers, and wrote to every local news outlet. I will not give up until I get this resolved for the consumer. As far as the industry goes, I am very disappointed. I am disappointed by how many shops do not follow OEM procedures. The OEMs have set the standard for which we are to repair the vehicle properly—not the insurer.

The industry is in turmoil, but it will get better as we weed out the poor repair shops that do not care about safety.

PPG Launches PaintManager® XI Software

PPG has introduced its all-new PAINTMANAGER® XI software, the latest addition to the company’s state-of-the-art Color Solutions XI product line.

The all-new PaintManager XI software features critical advancements in color retrieval, mixing and management functions and offers a more intuitive workflow designed to simplify the overall automotive refinish process. The software program provides formulations for OEM cars and trucks, commercial fleets and custom colors through one convenient application.

“This is a significant industryleading innovation,” said Tracey Johnson, PPG senior manager, global color IT. “PaintManager XI software has been specifically developed to help PPG customers streamline refinish operations and more easily manage and evaluate shop performance. That, in turn, yields greater productivity.”

PPG Color Solution XI products are now being rolled out in the U.S. and Canada.

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Legalizing Recreational Marijuana Is Linked to Increased Crashes

by Staff, HLDI News

Legalizing recreational marijuana use in Colorado, Oregon and Washington has resulted in collision claim frequencies that are about 3 percent higher overall than would have been expected without legalization, a new Highway Loss Data Institute (HLDI) analysis shows. This is HLDI’s first report on how marijuana legalization since 2014 has affected crashes reported to insurers.

More drivers admit to using marijuana, and it is showing up more frequently among people involved in crashes. Though there is evidence from simulator and on-road studies that marijuana can degrade some aspects of driving performance, researchers haven’t been able to definitively connect marijuana use with more frequent real-world crashes. Some studies have found that using the drug could more than double crash risk, while others, including a large-scale federal case-control study, have failed to find a link between marijuana use and crashes. Studies on the effects of legalizing marijuana for medical use also have been inconclusive.

Colorado and Washington were

the first states to legalize recreational marijuana for adults age 21 and older with voter approval in November 2012. Retail sales began in January 2014 in Colorado and in July 2014 in

additional controls to examine the collision claims experience of Colorado, Oregon and Washington before and after law changes. Control states included Idaho, Montana, Nevada, Utah

A new Highway Loss Data Institute (HLDI) analysis shows states with recreational marijuana use have collision claim frequencies that are about 3 percent higher overall

Washington. Oregon voters approved legalized recreational marijuana in November 2014, and sales started in October 2015.

HLDI conducted a combined analysis using neighboring states as

and Wyoming, plus Colorado, Oregon and Washington prior to legalization of recreational use. During the study period, Nevada and Montana permitted medical use of marijuana, Wyoming and Utah allowed only limited use for

medical purposes, and Idaho didn’t permit any use. Oregon and Washington authorized medical marijuana use in 1998, and Colorado authorized it in 2000.

HLDI also looked at loss results for each state individually compared with loss results for adjacent states without legalized recreational marijuana use prior to November 2016.

Data spanned collision claims filed between January 2012 and October 2016 for 1981 to 2017 model vehicles.

Analysts controlled for differences in the rated driver population, insured vehicle fleet, the mix of urban versus rural exposure, unemployment, weather and seasonality.

Collision claims are the most frequent kind of claims insurers receive. Collision coverage insures against physical damage to a driver’s vehicle in a crash with an object or other vehicle, generally when the driver is at fault. Collision claim frequency is the number of collision claims divided by the number of insured vehicle years (one vehicle insured for one year or two vehicles insured for six months each).

BASF’s VisionPLUS Performance Groups Approved for I-CAR Platinum Credit Points

BASF’s VisionPLUS® Performance Group program is now I-CAR–approved. In 2017, each Performance Group member will receive seven ICAR Platinum points for meetings they attend, helping them maintain ICAR Platinum status each year. “Our Performance Group community is growing and getting stronger each year,” said Craig Seelinger, BASF VisionPLUS Program Manager. “We continuously strive to develop the best-performing and most profitable collision shops in the country, and this first-in-the-industry approval from ICAR demonstrates the value these meetings bring to BASF customers.”

2016 was a strong year for both growth and profitably across the board for Performance Groups. Members meet several times a year to discuss current industry issues, best-practices,

profit improvement and insurance relations.

“BASF has been an invaluable partner of ours for more than 10 years,” said Jason Bartanen, I-CAR Director—Industry Technical Relations.

“The BASF Refinish Performance Groups strengthens this commitment and emphasizes the need for continuous business process improvement.

We’re excited to reach BASF students in a new way, and are happy to support and expand the I-CAR BASF management training.” BASF VisionPLUS University classes were I-CAR certified last year. Certifying the Performance Group meetings was the next evolutionary step and provides deeper insights into the shops’ business practices. For more information contact Craig Seelinger at (313) 720-8231 or craig.seelinger@basf.com.

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Estimated effects of recreational marijuana sales in 3 states Change in claim frequency for vehicles up to 33 years old, 2012-16 “The combined-state analysis shows that the first three states to legalize recreational marijuana have experienced more crashes,” says Matt Moore, senior vice president of HLDI. “The individual state analyses suggest that the size of the effect varies by state.”

Colorado saw the biggest estimated increase in claim frequency compared with its control states. After retail marijuana sales began in Colorado, the increase in collision claim frequency was 14 percent higher than in nearby Nebraska, Utah and Wyoming. Washington’s estimated increase in claim frequency was 6 percent higher than in Montana and Idaho, and Oregon’s estimated increase in claim frequency was 4 percent higher than in Idaho, Montana and Nevada.

“The combined effect for the three states was smaller but still significant at 3 percent,” Moore says. “The combined analysis uses a bigger control group and is a good representation of the effect of marijuana legalization overall. The single-state analyses show

how the effect differs by state.”

Each of the individual state analyses also showed that the estimated effect of legalizing recreational use of marijuana varies depending on the comparison state examined. For example, results for Colorado vary from a 3 percent increase in claim frequency when compared with Wyoming to a 21 percent increase when compared with Utah.

HLDI’s new analysis of realworld crashes provides one look at the emerging picture of what marijuana’s legalization will mean for highway safety as more states decriminalize its use. In the coming years, more research from HLDI and others will help sharpen the focus. As HLDI continues to examine insurance claims in states that allow recreational use of marijuana, IIHS has begun a largescale case-control study in Oregon to assess how legalized marijuana use

may be changing the risk of crashes with injuries. Preliminary results are expected in 2020.

In addition to Colorado, Oregon and Washington, five other states and Washington, D.C., have legalized marijuana for all uses, and 21 states have comprehensive medical marijuana programs as of June. An additional 17 states permit limited access for medical use. Marijuana is still an illegal controlled substance under federal law.

“Worry that legalized marijuana is increasing crash rates isn’t misplaced,” says David Zuby, executive vice president and chief research officer of the Insurance Institute for Highway Safety.

“HLDI’s findings on the early experience of Colorado, Oregon and Washington should give other states eyeing legalization pause.”

We thank HLDI News for reprint permission.

Michael Linnerooth Named US Subsidiary Business Director for 3M AAD

3M Automotive Aftermarket Division announced the appointment of Michael Linnerooth to the role of U.S. subsidiary business director in the Automotive Aftermarket Division (AAD).

Linnerooth has held several sales and marketing positions across the 3M Consumer Business Group during his career at 3M. His background in sales, business management, marketing, Six Sigma, business analysis and key account management make him well qualified for this role. Linnerooth was most recently the U.S. subsidiary director in consumer health care in the Consumer Business Group.

He is a graduate of the University of Tulsa with a Bachelor of Arts degree in finance. He began his career at 3M in 1993.

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Department, noted that his agency oversees the fifth-largest insurance market in the country, and the 14thlargest in the world, larger than the inwho serves as vice-chairman of the CIC surance markets in India, Australia committee, said the U.S. House has apand Spain. His agency keeps an eye proved legislation overturning the anon more than 1,700 insurance compatitrust exemption for health insurance nies, and licenses more than 200,000 companies. But, he said, it was too insurance agents. early at that time to know if the Senate “Last year we handled 12,329 would also include that in its healthcare complaints, and took 46,993 phone legislation, nor if lawmakers would calls,” Buono said. “We recovered alhave interest in also ending most $3 million for Pennsylthe antitrust exemption for vania consumers.” property-casualty insurers.

He said steering of conHe also said the Repubsumers to insurers’ preferred lican-controlled Congress shops is “one of the things we has also expressed plans to do hear about,” and he said roll back some financial inthe Department offers a guide dustry regulations (known on consumer shop choice; it ASA’s Bob Redding as the Dodd-Frank legisla- said the Republican- recommends that consumer’s tion) passed in response to controlled Congress choice be based on the shop’s is likely to scale the 2007–08 financial crisis. longevity and reputation in back regulation Among other things, that the community, the availabilon the financial legislation created the Fedity of a lifetime warranty, and industry eral Insurance Office (FIO), a history of working with the which some viewed as a step toward insurer involved in the claim. increasing federal regulation of inBuono said he think it’s unlikely surance, something that has previ- that insurers are directly forcing someously been left almost entirely to the one to take their car to a particular states to handle. shop.

Redding said the FIO was given “What I worry about are…where limited authority, and “unfortunately a person says, ‘You know Bob’s Body it failed its first series of tests, that we Shop just takes a long time. But we were all very hopeful about, dealing can get you in this shop right away,’” with just studies” of the need for ad- Buono said. “That’s steering. So we ditional federal regulation of insurwant to make sure those types of conance. versations aren’t happening. The choice “They were late, and not as strong is up to the owner.” as they should have been,” Redding He was asked whether complaints said of the FIO reports. to his Department about steering have That has added fuel, he said, to to come from the consumer or if they Congressional arguments to scale back can be filed by a shop. or eliminate the FIO as part of Dodd“We’ve had shops file the comFrank reforms. plaint on behalf of the consumer,” he State insurance regulators also acknowledged. “But really what would agree the FIO should be on the chop- help us is if the consumer would file it, ping block, Brooke Stringer of the because we get a little more informaNational Association of Insurance tion about what was said and how it Commissioners (NAIC) told CIC at- was said. We can work through that tendees at the meeting. with the consumer.”

“We believe FIO is an unnecesAaron Schulenburg of the Socisary federal entity,” Stringer said. ety of Collision Repair Specialists sugShe said state regulators suffigested that Buono’s Department might ciently oversee insurers, including “rewant to review a video public service solving more than 2 million consumer announcement put out by the Montana inquiries and complaints in the past Department of Insurance some years year.” ago that addressed the more subtle One such regulatory agency, the forms of steering.

Pennsylvania Insurance Department, “That’s actually a really great also had a speaker at the meeting who idea,” Buono said of such a video, sayseemed open to the idea of pursuing ing it could be something the Departseveral suggestions made by CIC atment could include on its Facebook tendees. David Buono, a consumer lipage. “That’s something you could alaison for the Pennsylvania Insurance most role-play to help consumers…unContinued from Cover

Insurance Regulator

54 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

derstand what steering actually is.” his Department has not received comAnother CIC attendee suggested plaints from consumers about insuffiBuono’s Department review two Illi- cient settlements. nois Department of Insurance conHendler asked if perhaps there sumer guides on what to do if filing a could be more required disclosures on claim with your own insurance com- photo appraisals to alert consumers to pany, and what to do if another party’s their potential limitations. insurance company is handling the “I think that is something that I claim. could absolutely look into Jordan Hendler of the and take back to see if a disWashington (DC) Metropoliclaimer of that nature should tan Auto Body Association be added or could be added,” told Buono that PennsylvaBuono said. “It’s something nia’s recently-enacted regulawe could talk to our legislation allowing the preparation tive liaisons about to see what of estimates using only photos Dave Buono of the we could do to try to make a was modeled after a similar Pennsylvania Insur- change.” ance Department regulation in Virginia. She Buono also said state regexpressed openness asked if Buono’s Department ulations on the use of nonto the idea of using was concerned about conOEM parts are clear. new tools to sumers getting insufficient educate consumers “If there are aftermarket settlements if they cash-out about steering and parts that insurance companies the limitation of based on such estimates, or are using that do not fit, hopephoto appraisals that potential vehicle safety isfully no one is saying you’ve sues aren’t being pointed out in such sitgot to use them anyway,” Buono said. uations.

“That would be an issue, in my eyes, in “It’s one of those things I worry terms of indemnification, of putting [the about,” Buono said, noting that state vehicle] back to the way it was before lawmakers, not his Department, enact that loss, no better and no worse. It such regulations. He said he would would obviously be worse. If you are prefer photo appraisals only be used having those situations, don’t be afraid See Insurance Regulator, Page 58 for minor damage, but he also noted

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Auto Care Association: Will Vehicle Manufacturers Comply with Right to Repair Requirements?

The Auto Care Association and Coalition for Auto Repair Equality (CARE) expressed concern as to whether or not all vehicle manufacturers will be in compliance with new Right to Repair requirements that will take effect for 2018 and later model year vehicles.

The statement came at a hearing being held at the Massachusetts State House by the Joint Committee on Consumer Protection and Professional Licensure to determine if car companies were in compliance with the first-in-the-nation law requiring that vehicle manufacturers make available, at a fair and reasonable price, the same service information, tools and software that they provide their franchised dealers.

Aaron Lowe, senior vice president, government and regulatory affairs, Auto Care Association, who testified on behalf of the association and CARE, said, “Many car companies are doing a ‘good job’ in meeting the current Massachusetts Right to Repair requirements. However, new requirements will be taking effect for MY 2018 that will mandate vehicle manufacturers make all of their diagnostic and repair software available from the cloud and inter-

face with the vehicle using a device meeting industry J2534 or ISO22900 industry standards.”

In late January, both groups sent letters to the manufacturers requesting information as to whether they would be in compliance with MY 2018 requirements. Lowe testified that the association only received 10 responses to the letter stating that they would be in compliance.

“I want to be clear that while we are not implying that the eight remaining companies are not in compliance, with the model introductions a month away, we are concerned by their lack of response despite our multiple attempts to reach them,” said Lowe.

The Auto Care Association and CARE testimony also pointed out that the two groups had not received any response from Tesla.

“While we have a lot of respect for the technological innovations spearheaded by Tesla, I want to take this opportunity to publicly ask Tesla to take action to ensure that their customers are not forced to patronize the small number of repair facilities for repair and maintenance of their expensive vehicles,” said Lowe.

Lowe also focused on Right to

Repair requirements for heavy-duty vehicles more than 14,000 pounds.

“Unlike the light-duty manufacturers, compliance reports we have received have led us to the conclusion that some companies in the heavy-duty industry do not appear to be taking these commitments seriously. We therefore request that this committee amend this legislation to include the heavy-duty industry in the Right to Repair compliance study,” said Lowe.

Finally, the associations highlighted the fact that late model vehicles are transmitting an extensive amount of data regarding their health, performance, geolocation, mileage and safety status only to the vehicle manufacturers.

“Most car owners are unaware of the amount of vehicle data being transmitted to the vehicle manufac-

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PPG Announces Video of OEM Panel Session

The 2017 PPG MVP Conference featured a panel discussion in which representatives from Audi, Toyota, Mazda and Collision Diagnostic Services (asTech) discussed their positions on OE repair procedures, system diagnostics, and recalibration.

In this video you’ll hear from the experts as they take a deeper dive into the hundreds of onboard systems on today’s vehicles, any of which can be affected by a collision, including the repair process itself. Watch as this distinguished panel fields tough questions from some of the highest performing collision repair shops in the country.

This video is now available online at the PPG MVP Business Solutions YouTube channel here: https://youtu.be/dP-AN3nRLh8

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turer or how it might impact their repair choices,” Lowe said. “While telematics is not currently part of the Right to Repair legislation, we believe that it is critical that car manufacturers provide more transparency to their customers regarding the telematics systems on their vehicle and that they provide control to the car owners regarding how, and to whom, the data produced by their vehicle is shared.

While not everything is perfect, the forward-thinking actions of this legislature and of the people of Massachusetts have, for the most part, led to the successful implementation of the legislation ensuring competition in the vehicle repair market. Our organizations are proud of the Right to Repair effort, and also of the level of cooperation we have received from many manufacturers,” Lowe said.

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Coming Soon: PPG ENVIROBASE® High Performance EC520 Clearcoat

PPG will soon launch its EC520 EnV® High Production Clearcoat, a new innovative clearcoat designed specifically for use over ENVIROBASE®

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EC520 features an advanced resin technology that is highly compatible with waterborne basecoats.

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The new clearcoat has been engineered to ensure easy use, generate superior productivity and yield consistent high-level results.

“EC520 will soon be available to PPG customers who are looking for exceptional quality and efficiency in a clearcoat that is compatible with waterborne basecoat,” said PPG’s Tim Jones, manager, water collision segment, automotive refinish. “We’ll release product details in the very near future, but suffice it to say the new clearcoat—a perfect match with Envirobase High Performance basecoat—is one more component in our commitment to give our customers the most versatile and effective automotive refinish products possible.”

For more information about EC520 and other PPG automotive refinish products, call (800) 6476050 or visit www.ppgrefinish.com.

Advance Auto Parts cut nearly 500 jobs as it seeks a turnaround predicated on store upgrades after two consecutive years of sales declines.

The Roanoke-VA-based company will transition from four divisions to two, just North and South, CEO Tom Greco said in a June 19 memo. He also announced plans to improve the company’s online presence to better cater to do-it-yourself customers.

The company, which has more than 5,000 stores, employed about 74,000 workers as of February, according to a public filing.

Advance Auto Parts spokesperson Laurie Stacy said the company had not cut any positions at its stores, where the company has been focusing its investments.

“These organizational changes

ensure our structure and resources are properly aligned with our shortand long-term strategic business plan,” she said in an email. “We are

focused on productivity enhancements in areas that do not affect our customers while also significantly improving the customer experience.”

A source said that the company is targeting field and corporate leadership to streamline and reduce product costs in this round of layoffs.

Advance Auto Parts stock has fallen almost 28% since the start of the year.

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Continued from Page 54

Insurance Regulator

to reach out to us just so we can make sure we’re addressing it appropriately.”

Likewise, he said, “operational safety is paramount” when it comes to part choice. He was asked about an insurer saying all it would pay for is a used suspension for a vehicle.

“If you’re putting a used suspension on a car, that is something that I would hope the insurance company and the shop would have a good enough relationship that they can say, ‘Look, this is a bad repair for x, y and z reasons,’” Buono said. “I know I’m living in a perfect world [but] we can’t have consumers being put in a unsafe situation. If you do have [that happening], please, let us know.”

John Yoswick, a freelance writer 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@Spirit One.com.

Dealers See Growth for NIADA Convention and Expo 71st Annual Event Breaks Last Year’s Record for Overall Attendance and Again Draws Rave Reviews.

For the second year in a row, the NIADA Convention and Expo broke previous records.

The final count is in, and it shows the 2017 Convention, held June 12-15 at The Mirage in Las Vegas, edged the 2016 total for most attendees in the 71-year history of the event.

Overall attendance was up for the fifth consecutive year, and the number of dealers was also up from last year.

And just as in 2016, nearly 20 percent of those attending the 2017 convention did so for the first time.

The reviews from attendees and exhibitors were overwhelmingly positive to see what they’re saying).

Among attendees who responded to NIADA’s post-convention survey, 98 percent said they were satisfied with the event, 88 percent said the Convention met their objectives, 94 percent said the information presented was very useful, 98 percent said the speakers and panelists were very prepared and more than three-fourths gave the sessions “good” or “excellent” ratings.

In addition, 95 percent said they are likely to attend future NIADA events, 96 percent said they are likely to recom-

mend NIADA events to others and 99 percent said they plan to engage with NIADA in the future.

“An awesome investment in my business,” wrote Larry Schmidt of Countryside Auto and Cycle in Fond du Lac, Wis. “Four days of industryspecific training along with trade vendors to improve my business – that’s an investment every dealer should be making. I’ll be back next year.”

The 170-plus vendors and industry partners that exhibited in the 60,000square foot Expo Hall also felt they got their money’s worth – 84 percent of respondents to the exhibitor survey rated the value of their NIADA Convention experience “excellent” or “good.”

Alvlis Tabaks of Elva DMS said his company exhibited at NIADA’s event for the first time and “the experience we got there was beyond our expectations.”

“The event structure was perfect and gave the right balance between the sessions and the Expo,” he said. “So we managed to get useful information from industry experts and had enough time to interact with attendees at our booth.”

The exhibitors gave the Convention a 90 percent overall satisfaction rating, while 95 percent approved of the level of decision-makers among

the attendees and 90 percent said they are likely to be back to exhibit at the 2018 Convention and Expo – which will be held June 18-21 at the Rosen Shingle Creek Resort in Orlando, Fla., as NIADA’s biggest event leaves Las Vegas for the first time since 2009.

Just as it surpassed its record-setting predecessor in attendance, the 2017 Convention topped the 2016 event with more sessions on more topics than any previous NIADA Convention. That included for the first time a dedicated area of focus on certified pre-owned, as well as sessions addressing retail, compliance and an even more extensive Buy Here-Pay Here component.

In addition to keynote speaker Captain Richard Phillips – inspiration for the hit movie Captain Phillips – the featured speakers included many of the top names in the used vehicle industry, beginning with NIADA’s own Chuck Bonanno and Shaun Petersen. Others included leadership trainer Dave Anderson, TrueCar CEO Chip Perry, Cox Automotive’s Janet Barnard, attorney Tom Hudson, KAR Auction Services chief economist Tom Kontos, FBI Special Agent Edward Parmalee, AutoZone’s Ray Curry and NABD president Ken Shilson, among many others.

Service King Welcomes 34 Technicians to Rapidly Growing Apprenticeship Program Service King Collision Repair Centers® continues to add to its quickly growing Apprentice Development Program as the organization today welcomed 34 technicians at seven elaborate signing day events held across the country. The events sig-

naled the start of a hands-on 52-week paid training program designed to prepare aspiring technicians for a successful career at Service King and in the collision repair field.

Service King’s popular apprentice program has now more than doubled in size since its unveiling in 2015 with more than 40 programs underway in 16 states across the country. The latest signing day comes less than a week after the White House and President Trump signed an executive order aimed at expanding apprenticeships and vocational training programs in the U.S. “The entire Service King family is thrilled to welcome our latest sign-

ing class to the Apprentice Development Program,” said Tyra Bremer, Service King Vice President of Talent Development. “This is an exciting step in their careers and we look forward to providing a challenging, hands-on path towards rewarding careers at Service King.”

The official signing day events took place in Fort Worth, TX, Chicago, Denver, Pasadena, CA, Santa Clara, CA, Columbus, OH, and Charlotte, NC. The Service King Apprentice Development Program officially launched in 2015 featuring a 52-week paid training program for aspiring auto body technicians across the U.S. Today, it continues to grow as demand for experienced, skilled technicians increases across the industry.

Service King’s unique program provides personalized instruction and training to technicians by capping individual programs at less than five apprentices per supervisor. Each class is immersed in a detailed, progressive curriculum that fosters a focused learning environment allowing apprentice technicians to master each element of the collision repair process. Furthermore, all learning takes place in the live setting of a Service King Collision

58 AUGUST 2017 AUTOBODY NEWS | www.autobodynews.com

Repair Center.

The Apprentice Development Program has been widely heralded across the collision repair industry and featured in the media, including recent stories by Dallas CBS affiliate KTVT. Aspiring technicians interested in joining the Apprentice Development Program are encouraged to visit ServiceKing.com/careers to connect with a representative from the Service King recruiting team.

Service King, one of the fastestgrowing providers of high-quality collision repair service, operates 324 repair centers in 24 states across the U.S. For more information on the organization, or to find a local repair center, visit www.ServiceKing.com and follow the company on Facebook, Twitter and Instagram.

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www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 59

When to Replace Mini-Ductor® Induction Heating Coils

While mechanics and body shop owners love their Mini-Ductor® Venom® and Mini-Ductor II, the effectiveness of these portable induction heaters – and safety – are contingent on the state of the coils used with them. Many don’t realize that these coils need to be replaced over time, but how do you know when to do so and where can you go to buy them?

Coil Replacement Mini-Ductor coils are manufactured in a variety of lengths and sizes to fit inaccessible areas. Standard coils need to be replaced anytime that the metal underneath the fabric coating becomes exposed otherwise, you can get sparking and the possibility for fire, which defeats the purpose of using induction heating in the first place vs. a torch. Another sign that coils need to be replaced is if the fabric becomes noticeably brown. Each coil will last for several hundred uses or more subject to use.

Bearing Buddy coils are much longer (41” to 96”) than standard coils.

They need replacing when metal becomes exposed and/or turns brownish like standard coils, but also when they become brittle since they are made of finely twisted copper.

Where to Buy Replacement Coils Mini-Ductor coils are available for sale through all of our domestic and

international partners. If you would prefer to buy them directly from Induction Innovations, coils are available in our online store here on this website.

However, you should know that we sell them at the same price as our channel partners, though our partners offer additional discounts from sales promotions, product bundling, free shipping, or otherwise so be sure to check with the Induction Innovations partner near you first.

About Induction Innovations Induction Innovations, Inc. is a family owned and operated manufacturer of high performance inductionheaters. Our headquarters and all manufacturing is located in Elgin, Illinois, just west of Chicago. Induction Innovations was founded by president Tom Gough in 2000 after the first model of the Inductor® Series was developed, which uses high-frequency magnetic fields to heat ferrous metal objects without an open flame, cutting torch time in half. The Inductor Series now includes the ProMax, Max, Glass Blaster. The Mini-Ductor® is a handheld induction heater that is now available in 110V, 220/230V and 12V (battery powered) versions. Both the Inductor Series and Mini-Ductor are used for repair and maintenance in the automotive, construction, farm equipment, industrial, and marine industries.

Snap-on Introduces ETHOS Edge

The Snap-on® ETHOS® Edge full function scan tool takes entry-level diagnostics to a new high in performance and coverage. ETHOS Edge delivers the scan tool functions that technicians expect from Snap-on including codes, live data graphing, functional tests, relearns and adaptations. It provides coverage for nearly 50 domestic, Asian and European vehicle makes dating back to 1983, as well as OEM-specific coverage for over 100 vehicle systems. Timesaving features include Auto vehicle ID to read the VIN so technicians don’t have to and One-Touch Code Scan and Clear, which reads all available vehicle systems to help technicians get moving when they aren’t sure which system is the root cause. The Steady-Charge battery system in the ETHOS Edge charges the lithium-ion battery from the vehicle, eliminating changing or charging batteries. To learn more about the new ETHOS Edge, visit us online at http://diagnostics.snapon .com/ ETHOSedge.

CIECA Uses Scans in BMS Starting June 19

CIECA, the Source of the Collision Industry data communications standards, began work June 19 on a new project to implement the exchange and transmission of scanning diagnostics results within the Business Message Suite (BMS). “Vehicle Scanning has become an integral part of the entire repair process on certain vehicles. Pre-repair and Post-repair scanning has become necessary in certain situations. The information received from the vehicle scan tool should be saved with the other Repair Order documentation for subsequent review, auditing, and other purposes. Repairers and the industry need a method to retain and exchange this data with the entire RO file,” said Darrell Amberson, of LaMettry’s Collision Inc., and author of the CIECA project request.

The project is being fast-tracked to meet the needs of the industry. Contact CIECA to participate in the project. Please forward this email to others in your company that might be interested in joining the project. More information about the scanning project, CIECA, how to join, and its standards can be viewed on the CIECA web site: www.cieca.com or Fred Iantorno at fred@cieca.com.

BASF Invests $40 Million in Automotive Coatings in North America

“These investments reflect our continued market growth and underscore BASF’s commitment to developing a sustainable production platform that provides customized coatings solutions,” said Chris Toomey, BASF Senior Vice President, Coatings Solutions North America.

Increased waterborne basecoat

capacity in Tultitlan and electrocoat emulsion capacity in Greenville enables BASF to continue to drive innovation through production of state-of-the-art automotive coatings.

Waterborne basecoats are low volatile organic compound paint products that give vehicles their color and electrocoat or e-coat is the primer coat applied to vehicles to prevent corrosion.

“BASF is a process and product innovator. We’re the global leader in integrated process and we pioneered waterborne basecoat technology as part of our commitment to social responsibility and environmental protection,” said Frank Hezel, Vice President, BASF Coatings Mexico.

“Our added capacity positions us well to continue our innovations to serve our automotive coatings customers.”

For more information about BASF’s Coatings division visit basfcoatings.com

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Polyvance Demonstrates Nitrogen Plastic Welding at SkillsUSA Competition

Last week, technical school students from across the United States gathered in Louisville, Kentucky for the SkillsUSA competition.

Trades of every sort were represented, from collision repair to cake decorating.

In the collision repair technology segment, Alan Zimmerman of Vanguard-Sentinel Career and Technology Center in Fremont, Ohio won the secondary competition, and Joel Hartstack of Southwestern Community College in Creston, Iowa won the post-secondary competition.

Polyvance congratulates these winners and all of the contestants who made the trek to Louisville to represent their states.

In the plastic repair portion of the competition, Kurt Lammon of Polyvance presented a demonstration of a new nitrogen plastic welding component which will become an of-

ficial part of the competition in 2018.

So, in 2018, competitors will be required to repair a 3” long cut and a tab using 3M’s two-part repair material and, in addition, will be required to repair a 3” long tear to the edge of the bumper with the Polyvance nitrogen plastic welder.

The technical requirements of the new nitrogen plastic welding component are shown at the SkillsUSA YouTube channel, which may be reached by searching “2018 SkillsUSA Nitrogen Plastic Welding Requirements” or going to this link: http: //bit.ly/2tyEIOq To help underfunded technical schools across the country prepare for this new plastic welding requirement, Polyvance is promoting a “tech school trade-in program”.

Body shops that donate their old nitrogen plastic welders (of any make) to a tech school will be able to take the tax deduction on the donation, and, when they purchase a new Polyvance plastic welder, Polyvance will provide a $300 rebate to the shop.

Contact Polyvance at 800-633-3047 for more information about this tradein program.

Nicholas Schoolcraft Replaces his Father at Phoenix Solutions Group Phoenix Solutions Group announced, today, that Nicholas Schoolcraft will join the Phoenix Solutions Group leadership team, replacing his late father, Steve Schoolcraft.

“Steve’s extraordinary vision and leadership have positioned Phoenix Solutions Group as the collision industry’s most innovative and comprehensive marketing consulting company,” said Tina Biancalana, Vice President for Phoenix Solutions Group. “Steve’s ambition was to build an organization that puts our clients’ needs at the center of everything we do. Every Phoenix staff member can attest to this goal as being achieved.”

“The Phoenix Solutions Group leadership team has complete con.dence that Nick is the ideal person to further Steve’s vision and legacy,” added Biancalana.

“Nick’s background in marketing and customer experience consulting has demonstrated his remarkable talent for developing solutions that deliver results and drive customer and employee engagement. Also, his knowledge of the traditional as well as digital marketing space will be a welcome addition to the Phoenix Solutions team.”

Steve Schoolcraft passed away

May 19th but collaborated closely with Nick over the past five years to help position Phoenix Solutions Group as the industry thought leader it is today.

Over Nick’s career, he has spent time working with Fortune 100 clients to develop marketing and customer experience strategies that deliver tangible results. In his recent role at Accenture, Nick led many customer experience transformation projects where he identi.ed and evaluated complex customer and employee experience problems and created solutions that delivered business value, while increasing customer and employee engagement. Nick’s relentless focus on delivering value for customers – while incorporating business demands into actionable strategy – has enabled him to propel signi.cant business value through optimized processes and overall operational alignment.

Before Accenture, Nick worked for a leading national media company where he helped develop digital and traditional marketing campaigns that transformed the way advertisers interact with their customers. These marketing campaigns not only increased ROI and engagement but delivered on the expected outcomes of the organization.

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WIN Complies with Members’ Requests for Regional Events

by Chasidy Rae Sisk

In response to members’ requests, the Women’s Industry Network (WIN®) hosted its first three regional events in Southern California, Chicago, IL, and Atlanta, GA, on June 13 and 14. Ac-

Marcy Tieger spoke at WIN’s Southern CA Regional Event on June 13

cording to WIN Board of Directors member Denise Kingstrom who coordinated the events, “We had over 50 attendees in total participate in our June regional events with over 50% being non-members who were interested in continuing to participate locally. We were very happy to see the excitement and participation with these events and expect them to grow as we continue in these three markets and expand to new areas.”

On June 13, the Southern California Regional Event, sponsored by BASF and Brad Mewes from Supplement, featured an industry presenta-

tion from Marcy Tieger, Managing Director of Symphony Advisors. ICAR sponsored WIN’s Chicago event which included a presentation by Elise Quadrozzi, Director of Business Development for I-CAR. Rick Fifer, North America Business Service Manager for Akzo Nobel, provided the industry update at WIN’s Atlanta event on June 14 which was sponsored by ABRA. With a strong network of over 400 members representing all segments of the collision repair industry, WIN offers many opportunities to get involved with ongoing initiatives as well as future regional events which serve to

WIN’s Chicago Event on June 13 was sponsored by I-CAR whose Elise Quadrozzi provided an industry update

conference. WIN events offer not only networking opportunities but also leadership and development opportunities,” Kingstrom stated.

Responses to WIN’s Regional Events were very favorable, and Kingstrom shared, “The events were very well received and were the first time we hosted official Regional Events for both members and non-members. All of the surThe Atlanta Regional Event was held on June 14 and vey results showed extremely included a presentation by Rick Fifer positive feedback and requests “further drive and expand WIN’s mis- to continue with the events on a regular sion, provide more frequent opportuni- basis.” ties for both networking and education For more information, visit www as well as create a local network of re- .womensindustrynetwork.com.

Sherwin-Williams Ecolean™ Level 2 Workshop Scheduled for Chicago

Sherwin-Williams Automotive Finishes announced it will hold its next 2017 EcoLean™ Level 2 workshop on August 29-30, 2017 at the Hilton Chicago/Oak Brook Hills Resort & Conference Center. While there, the group will have the privilege of touring CARSTAR All Line Auto Body, one of the leading CARSTAR franchises in North America. This collision facility has completely implemented lean production principles and subsequently seen its production and profitability levels dramatically increase.

The EcoLean Level 2 workshop is an extensive, two-day course that further implements the SherwinWilliams message by educating shop owners on the connection between environmentally sound business decisions and the reduction of process and environmental waste. It is exclusively designed to educate attendees about maximizing profitability by improving productivity throughout their facilities.

“The best way to start to move the numbers is by scheduling efficiently, implementing damage analysis, blueprinting, and a predictable parts process.

This is all discussed in our EcoLean Level 2 workshop that provides collision shop owners and managers with

sources and mentors. The events were also an opportunity to reach women who are unable to attend WIN’s annual

the tools to immediately help align their Purpose, their People, and their Process on the production floor,” says Lee V. Rush, Sherwin-Williams Manager of Business Consulting Services. He notes that EcoLean courses have been built by some of the best consultants in the industry, and will provide collision repair professionals the opportunity to relax in the company of their own peers while learning from one another over the two day period. The EcoLean Level 2 workshop curriculum includes: • Repair Planning for Rapid Throughput • Damage Analysis/Blueprinting • Parts Correctness All class materials, lunch on both days and a group dinner are included in the workshop fee. Breakfast vouchers are included with hotel room reservation. Hotel and transportation costs are the responsibility of each attendee.

To register for the EcoLean Level 2 workshop online, visit our website: www.sherwin-automotive.com/ ecolean2.

For more information on the Sherwin Williams EcoLean program, visit: www.sherwin-automotive.com/ ecolean or call (216) 332-8524.

Volvo Cars to Go All Electric

Volvo Cars, owned by China-based Geely Automotive, has announced that every Volvo it launches from 2019 will have an electric motor, marking the historic end of cars that only have an internal combustion engine (ICE) and placing electrification at the core of its future business. The announcement represents one of the most significant moves by any car maker to embrace electrification and highlights how over a century after the invention of the internal combustion engine electrification is paving the way for a new chapter in automotive history. “This is about the customer,” said Håkan Samuelsson, president and chief executive. “People increasingly demand electrified cars and we want to respond to our customers’ current and future needs. You can now pick and choose whichever electrified Volvo you wish.”

Volvo Cars will introduce a portfolio of electrified cars across its model range, embracing fully electric cars, plug in hybrid cars and mild hybrid cars. It will launch five fully electric cars between 2019 and 2021, three of which will be Volvo models and two of which will be high performance electrified cars from Polestar, Volvo Cars’ performance car arm. Full details of these models will be announced at a later date.

Chief® Heavy-Duty Rivet Gun Makes Easier Work of Truck Cab Repairs

Chief’s Heavy-Duty Rivet Gun puts out 10 metric tons of compression force—plenty of power to install new rivets or press out existing rivets in the thick steel and aluminum used to build heavy-duty truck cabs. It also uses 8 metric tons of tension force to hydraulically retract the punching tool from metal sheets easily and simply – with just the push of a button.

“The Chief Heavy-Duty Rivet Gun has the advantage of strong twoway operation – it powers out and it powers back,” explains Lee Daugherty, director of collision sales, the Americas, for Chief parent company Vehicle Service Group (VSG). “This means it smoothly punches in selfpiercing rivets, and then easily powers back out of even the thickest sheet metal materials. It delivers the force needed to repair today’s cab structures, as well as future trucks that will likely incorporate even more highstrength metals.”

The pneumatically driven Chief Heavy-Duty Rivet Gun includes a dial to provide infinite adjustment of the working pressure. This allows the technician to control the output compressive force as well as the retract

tension force. The rivet gun can be used to press out or install self-piercing rivets and to punch precisely sized holes to accept flow form or blind rivets. Optional attachment kits are available to install blind rivets as well as blind nuts and blind bolts.

Because the Heavy-Duty Rivet Gun is larger than standard rivet guns in order to deliver higher power output, Chief offers it with a new optional cabinet equipped with a boom.

The boom takes some of the weight of the gun off the technicians’ shoulders to reduce strain and improve mobility.

The Chief Heavy-Duty Rivet Gun is part of the full line of heavy-duty collision repair equipment available from Chief, including: Centurion heavy-duty frame rack, Cam Scan HD™ photogrammetric measuring system, Vulcan ADU adhesive debonding unit, Rotary® Lift Mach Series mobile column lifts, Chassis-Liner Heavy-Duty Trucker™ frame rack.

To learn more about the Chief Heavy-Duty Rivet Gun, visit chief automotive.com/Shop-Tools/HDRivet-Gun/, contact your local Chief distributor or call (800) 445-9262.

www.autobodynews.com | AUGUST 2017 AUTOBODY NEWS 63

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