August 2020 Southeast Edition by Autobody News

S O UTHEASTEDIT I ON

AUTOBODY AL / FL / GA / MS / NC / SC / TN / VA / WV

Shops Taking Action to Boost Business, Help Employees and Community by John Yoswick

Collision repairers around the country aren’t sitting still as business conditions continued to evolve as summer began. Here’s a cross-country tour of what’s happening as shops around the U.S. respond to the pandemic and its economic fallout. Helping employees and the community Shops continue to be generous in their efforts to help out their employees, their customers and their community. Zach DeGroot, manager of

Riverbend Body Shop in Grand Rapids, MI, said the shop covered some of the costs for police vehicle repairs after about a dozen such vehicles were damaged during rioting that followed a protest to denounce the death of George Floyd. DeGroot said the shop has always tried to do something extra on customers’ vehicles in for repairs, but is also trying to step that up, offering free detailing or “repairing unrelated damage on adjacent panels for customers so they do not have to pay out of pocket.” Christy Jones of R Jones ColSee Taking Action, Page 38

South FL Mayors Warn Governor COVID-19 Situation Will Get Worse Before It Gets Better by John Haughey, The Center Square

With south Florida the nation’s COVID-19 hot spot, Miami County mayors told Gov. Ron DeSantis on July 14 they could not issue emergency closures even if they had to. And several said they may have to—soon. “There isn’t a metric right now,” Miami-Dade County Mayor Carlos Giménez said. “We’re going to be looking at, can we establish a metric that we can publish to the community to say, ‘Look, if we don’t get to this point by this time, we’re going to

have to take additional measures.’” Giménez and mayors of Miami, Miami Gardens, Miami Beach, Doral, Pinecrest and Bal Harbour met with DeSantis in a roundtable discussion at the Miami-Dade Government Center and told the governor they need his help in conveying justifications for a potential second lockdown. “There’s a significant amount of pressure right now for us to shut down at some level,” Miami Mayor Francis Suarez said. “We are at a critical juncture that if things do See South FL Mayors, Page 3

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AUTOBODYNEWS.COM Vol. 11 / Issue 6 / August 2020

Some Positive Trends for Collision Repairers Amid Pandemic Fallout by John Yoswick

Although the tough times shops are experiencing in some markets aren’t over, the summer has brought some sunnier trends for the industry. Here is a collection of some potential good news for collision repairers. Rebound in used vehicle values means fewer totals Given the link between used vehicle pricing and the percentage of collision-damaged vehicles declared total losses rather than repairable, collision repairers tracking the fluctuation in

second-hand vehicle values this year have to feel like they’ve been on a wild roller coaster ride. Vehicles are generally declared total losses when the cost of repairs exceeds some percentage of the vehicle’s value prior to the accident. When used vehicle prices drop, it takes less damage for repair costs to hit that total loss threshold. And drop they did this spring. Wholesale used vehicle prices in the first 15 days of April decreased 11.8% compared to a month earlier, according to Manheim. The used ve See Positive Trends, Page 14

Auto Dealer Parts Departments Continue to Serve Through Pandemic by Gary Ledoux

In the last few months, much has been written and discussed within the trade press about how body shops, insurance companies and car rental companies are faring with the business slowdown caused by the corona virus pandemic. Autobody News wanted to know how the auto dealer parts departments were faring. Between June 11 and June 15, Autobody News conducted a survey of car dealership parts departments. This included dealers of all makes from Ford, GM and FCA to Mini, Mitsubishi and Tesla, and everything in between. All responding dealers said they were involved in the wholesale collision business. All except one said they were involved in the wholesale mechanical business. Responding dealers leaned toward being either General Motors or Honda/Acura dealers. We asked the following questions and received the respective responses.

In March, April and May, was your wholesale collision business (primarily body parts sold to collision repair shops) up or down, and by what percentage? All except three dealers noted their wholesale collision business was down, some by as little as 15% and some by as much as 80%. The average was a decrease of 45% and consistent with the business losses experienced by collision shops. Of those that experienced an increase in wholesale collision sales, one dealer could not be reached for comment. Another, a GM dealer in Missouri, noted that a large hailstorm was the cause of the increase. The third dealer, Richmond Ford Lincoln of Richmond, VA, took a very aggressive and innovative approach to increase sales. “We took our outside salespeople off the road and had them working the phones five or six hours a day contacting customers to see who was open and who was not and if there was anything we could do to help them out,” said Parts Director See Serve Through Pandemic, Page 36

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Continued from Cover

CONTENTS Auburn University Building New Autonomous Vehicle Research Facility ��16 Bill to Protect GA Businesses From COVID-19

Products: Part 1 of 2 ��20 Phillips - Industry Veterans Erick and Shelly Bickett Share Insight About Collision Industry ��28

Lawsuits on Governor’s Desk ��12 Classic Collision Acquires H&M Auto Body in Miami ��16 Craigslist Car Fraudster Serving 6 Years for Vehicle Fraud ��12 Despite COVID-19 Economic Shutdown, Florida Retains AAA Bond Rating ��6 Federal Judge Denies Motion to Dismiss Allstate Case ��6 Models Confirm Florida in COVID-19 Resurgence, Warn of ‘Catastrophic Consequences’ ��11 South FL Mayors Warn Governor COVID-19

not improve quickly―over the next week or two―we’re going to be under significant pressure to do something like that.” According to the Florida Department of Health’s (DOH) COVID-19 dashboard, 9,261 additional positive tests were reported July 14, boosting Florida cases since March 1 to

NATIONAL 3M Shows Support of Collision Repair Industry During Pandemic ��40 ABPA Joins New CAR Coalition ��20 Auto Dealer Parts Departments Continue to Serve Through Pandemic ��1 CAR Coalition Urges Data Control ��47 Diving Into the Fascinating World of Fasteners ��32 GEICO, Smart Ride Lawsuit Reaches Settlement ��18 GM to Call Up Hundreds of Laid-Off Workers

INDEX OF ADVERTISERS

REGIONAL

South FL Mayors

291,629, with 4,409 people dead and 18,498 people hospitalized, including more than 8,000 people now in hospitals. July 14’s reported 132 deaths is the most reported in a single day in Florida, although variations in when deaths are reported does not mean they all occurred the same day. The previous high was July 9, when 120 deaths were reported. Miami-Dade County reported See South FL Mayors, Page 12

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, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

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. ©2020 Adamantine Media LLC.

American Icon Automotive Finishes �� 16

Hendrick Volvo Cars of Charleston �� 20

Athens Dodge-Chrysler-Jeep-Ram �� 13

Honda-Acura Wholesale Parts Dealers �23, 24-25

Audi Wholesale Parts Dealers �� 41

Hyundai Wholesale Parts Dealers �� 47

AutoNation Collision Parts �� 2

IGO Insurance Agency �� 12

AutoNation Ford-Lincoln �� 18

Innovative Tools & Technologies �� 17

BMW Wholesale Parts Dealers �� 44

Jim Cogdill Chrysler-Dodge-Jeep-Ram �� 14

Brandon Ford �� 10

John Heister Automotive �� 32

Certified Automotive Parts Association �� 8

Kia Motors Wholesale Parts Dealers �� 45

Charlotte’s Premier Wholesale Parts Source �� 33

Mercedes-Benz Wholesale Parts Dealers �� 47

Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Situation Will Get Worse Before It

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City Kia of Greater Orlando �� 20

MINI of Charleston �� 20

Gets Better ��1

Truck Plants ��4

Classifieds �� 46

MINI Wholesale Parts Dealers �� 44

Coggin Deland Honda �� 26

MOPAR Wholesale Parts Dealers �� 29

Dale Earnhardt Jr. Buick GMC Cadillac �� 21

NOROO Paint & Coatings. �� 48

Dale Earnhardt Jr. Chevrolet �� 21

PPG Refinish �� 9

Eagle Abrasives, Inc. �� 15

Radley Chevrolet �� 38

Eckler’s Automotive �� 11

RGI Spray Booth Company �� 19

Equalizer Industries, Inc. �� 28

Rick Hendrick Chevrolet Naples �� 40

Ford Wholesale Parts Dealers �� 42

Riverside Ford-Lincoln �� 22

GM Wholesale Parts Dealers �� 43

SATA Dan-Am Company �� 5

Gus Machado Ford �� 34

Southside Kia �� 30

Haldon Company �� 31

Spanesi Americas �� 27

Hendrick Automotive Group �� 37

Subaru Wholesale Parts Dealers �� 39

Hendrick BMW/MINI �� 7

Symach �� 6

Hendrick Honda Pompano Beach �� 36

Tameron Hyundai �� 38

Hendrick Kia Cary �� 35

Volkswagen Wholesale Parts Dealers �� 42

TN Senate Approves Coronavirus Liability Bill for Nursing Homes, Businesses ��14 WV Auto Dealers Adapt to Coronavirus Pandemic ��8

Industry Legend Dick Schoonover Dies ��46 Most Expensive States for Car Insurance in 2020 ��44 Oil Prices Suppressed by Low Demand, How Auto Retail May React ��19

COLUMNISTS Anderson - Making the Most of the ‘Parts’ Portion of Your Business ��26 Attanasio - Will COVID-19 Change Your Marketing and Advertising Plans Forever? ��34 Chess - An Overview of Corrosion Protection

Shops Taking Action to Boost Business, Help Employees and Community ��1 Some Positive Trends for Collision Repairers Amid Pandemic Fallout ��1 Tesla Battery Day Gets a Concrete Date ��47

Hendrick Kia Concord �� 35

autobodynews.com / AUGUST 2020 AUTOBODY NEWS 3

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GM to Call Up Hundreds of Laid-Off Workers to Meet Production Demand at Key Truck Plants by Jamie L. LaReau, Detroit Free Press

General Motors Co. has a problem with absenteeism at its vital truck plants just when it needs every single body it can get on the assembly line. GM is working feverishly to replenish supplies of the in-demand pickups and full-sized SUVs after idling its U.S. factories from lateMarch through mid-May amid the coronavirus pandemic. Take Fort Wayne Assembly in Indiana, where GM builds its Chevrolet Silverado and GMC Sierra fullsize light-duty pickups. The plant has about 4,100 hourly workers and nearly 1,000 of them are off for various reasons—as many as 200 workers are off for COVID-19 related reasons. So it is increasingly harder for GM to hit the daily build target of 1,290 pickups there. If you look down the assembly line, you’ll likely see something that should never be, said a person familiar with the plant, but who is not authorized to speak to the media and asked to not be named. “They’re at full schedule, but they have every single person on that assembly line, including management, and management is not supposed to be on the line,” said the person. “It’s all hands on deck, just to build trucks.” To alleviate the problem, GM told union leaders at Flint Assembly, Fort Wayne Assembly and Arlington Assembly in Texas it will be adding hundreds of permanent workers to the plants, some starting in early August. They will not be new hires, but rather GM workers laid off at other plants who will be given the chance to permanently transfer to one of the truck facilities. “It is ... no secret that we have people on layoff from Detroit-Hamtramck and upcoming at Spring Hill, so it makes sense to shore-up our workforce in the important truck and heavy-duty SUV plants,” said another person familiar with the situation but who asked to not be named because they are not authorized to share that with the media. A GM spokesman did not comment on managers helping build pickups, other than to say GM is doing everything to address the production challenges in the plants while

keeping workers safe during the pandemic. “We are operating our plants as efficiently as possible while accommodating team members who are not reporting to work due to concerns about COVID-19 in the community,” said GM spokesman David Barnas. By month end, GM will have access to a wider workforce. Effective July 31, GM has said it will cut the third shift at its Spring Hill Assembly plant in Spring Hill, TN. The move impacts 680 workers there, 525 of whom are production and skilled trade employees. The cuts are the result of slow sales of the Cadillac XT5, Cadillac XT6 and GMC Acadia SUVs made in Spring Hill. Likewise, GM still has 430 workers laid off from Detroit-Hamtramck Assembly after the last Chevrolet Impala sedan rolled off the line Feb. 27. GM was going to transfer many of those people to the Lansing Delta Township plant, where it builds the Buick Enclave and Chevrolet Traverse SUVs, but then GM decided to keep that plant at two shifts. GM declined to provide specific details on the number of employees it will transfer to the truck plants, but, Barnas said: “We will follow the provisions of the national agreement. But we believe our staffing plans will allow us to continue supporting three production shifts at Fort Wayne, Flint and Arlington to meet strong customer and dealer demand for our pickup trucks and full-sized SUVs.” The union’s contract allows laid-off workers first dibs to rehire at the plant that they were laid off from, then they can apply for a job at a plant within a 50-mile radius of their home plant. The region expands from there. If a worker declines a transfer, they typically remain laid off, according to the contract. “All of these transfers are being done in accordance with the agreement that was negotiated based on seniority and transfers,” said Brian Rothenberg, UAW spokesman. At Flint Assembly, where GM builds its full-size heavy-duty pickups, it is running at full capacity. Workers usually hit the daily production target, but sometimes they fall short by a dozen or so, said Eric Welter, UAW Local 598 shop chairman

at the plant. He declined to disclose the total number of pickups the plant targets to build each day. “We do need some help,” Welter told the Free Press. “We’re getting 100 people. They’re laid off anyways and they need the work. They’re coming from Detroit-Hamtramck, Spring Hill, Pontiac and Milford.” Welter said he learned of the 100 new permanent jobs July 13. Flint will start getting about 50 of them Aug. 10, the other on half Aug. 17, Welter said. The news hit him two days after the Free Press first reported GM will temporarily reduce its Wentzville Assembly plant, near St. Louis, MO, to two shifts starting July 20. Heavy absenteeism there among nervous workers as cases of coronavirus surge in the surrounding community was cited as a reason. When asked how long Wentzville’s third shift would be laid off and whether Wentzville would get transfers from other plants to help boost production of the midsize pickups and full-size vans it builds, GM’s Barnas said only, “We are working on a staffing plan at Wentzville that will allow us to return to three production shifts as soon as possible in order to meet strong customer and dealer demand for our mid-size trucks.” Welter said absenteeism is high at Flint Assembly, too. “It’s up there, roughly 600 people are on some sort of leave of absence, whether it’s sick leave and personal leave, and then we have people on vacation and an extra 100 on COVID leave,” Welter said. “It’s tough on the plants. But we’re running.” There are about 5,000 workers at Flint. Seven workers have tested positive for coronavirus since the plant restarted in mid-May, Welter said. The 100 workers on “COVID leave” are those who have an immune disorder and cannot work, or they are in quarantine due to exposure to someone who tested positive for the COVID-19, or they have to care for someone with the virus. “It’s a difficult environment to work in. My people are stepping up to get it done,” Welter said. “But it is hot wearing masks all day and doing the heavy work.” At Fort Wayne, GM will add 318

workers, according to a report sent to workers by shop chairman Rich LeTourneau. The report, obtained by the Free Press, is dated July 10 and says there are 737 members on family leave status, 268 members on sick leave and 157 members on leave for “something other than sick leave.” The workers will start arriving the first two weeks in August. The plant has nine confirmed COVID-19 cases, said the person familiar with the plant. By policy, GM does not release the number of COVID-19 cases in plants. LeTourneau’s letter reads: “At this point, GM has no intentions of shutting any plants down, we are being told. They do not see an end in sight as it relates to COVID-19 either.” When asked to comment on that point, GM’s Barnas said, “People on our team should not be concerned about coming to work. All of our sites are following multilayered safety protocols that are working very well to keep people safe by reducing the possibility that COVID-19 can enter the plant and preventing any spread within the plant.” Barnas said the same plant protocols can help keep people safe outside of work, especially social distancing and wearing masks. Local union leaders at Wentzville and Arlington have asked GM to shut down the plants as cases of coronavirus in their surrounding communities surged. But GM has keep both running. It’s not known how many workers Arlington will get because no one from Arlington replied to a request for comment. The UAW negotiated its current contract prior to the outbreak of coronavirus, so there is no clause to address how to handle it. The union and the automakers must stay in continual discussions on ways to address the changing situation. “I told the company a month ago this is only going to get worse, so you’ve got two choices here: You shut the plant down or you run two shifts,” said the person familiar with Fort Wayne. “They said we’ll play it when we get there. The two shifts are an option.” We thank the Detroit Free Press for reprint permission.

4 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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Despite COVID-19 Economic Shutdown, Florida Retains AAA Bond Rating by John Haughey, The Center Square

Despite a potential $10 billion hole in its $92.3 billion fiscal year 2021 budget fostered by the COVID-19 economic shutdown, Florida’s conservative fiscal policies and robust economy will help it retain its AAA bond rating with at least two of the nation’s three top credit rating agencies. Florida officials made their annual presentations to Moody’s Investor Services and Standard and Poor’s (S&P) in May, with emphasis on the economic, fiscal and budgetary effect of the COVID-19 emergency on the state’s overall credit rating and fiscal health. Florida has an AAA or AA1 overall general bond rating from Moody’s, S&P and Fitch’s. The higher the rating, the less interest paid on bonds issued by the state, making them more attractive to investors. Moody’s and S&P 2020 reports are not expected to be published until late June, but Florida Chief Financial Officer Jimmy Patronis announced June 11 that Florida got

both agencies’ gold seal of credit worthiness. “I’m encouraged by Moody’s and Standard & Poor’s analyses that Florida continues to maintain a Triple-A Bond rating and a stable economic outlook in the face of the COVID-19 pandemic,” Patronis said. “According to the agencies, Florida’s steady credit rating and strong financial position is a testament to sound fiscal management practices and healthy reserves. While encouraging, we must remain vigilant as hurricane season is here and experts are already predicting an active storm season.” Last month, Moody’s warned investors this year’s hurricane season poses increased risks for state and local governments struggling to recover from the COVID-19 emergency. “The disruption, property damage and costs of recovery from a natural disaster event in the coming months would compound governments’ coronavirus health and fiscal challenges,” Moody’s analyst Pisei Chea wrote in a report co-authored by five other analysts.

“We are not out of the woods yet,” Patronis said of Moody’s’ hurricane warning. Moody’s issued a summary May 28 that said it had completed a review of Florida bond ratings after the state’s annual presentation. “Florida’s AAA rating reflects its economic growth over the last decade, during which time the state prudently built up reserves and maintained a manageable debt and pension burden,” the summary read. “This results in a below-average annual fixed costs, affording the state additional financial flexibility to mitigate the state’s above-average exposure to climate change generally, and storm damage costs, more specifically.” S&P’s pending report also is expected to conclude Florida is well-situated to address COVID-19 challenges. Florida has been rated AAA by S&P since 2005 and by Fitch Ratings since 2010, but it only received the top rating from Moody’s in June 2018 after paying down more than $8 billion in direct debt and generating more than $3 billion in debt-ser-

vice savings over the previous eight years. The 2018 upgrade “reflects a sustained trend of improvement in Florida’s economy and finances, low state debt and pension ratios, and reduced near-term liability risks via the state-run insurance companies,” Moody’s Vice President Genevieve Nolan said. “Florida’s economy is performing strongly in terms of job growth, and long-term growth prospects are favorable despite the challenges posed by an aging population base.” Moody’s reissued Florida’s AAA bond rating last June. “Florida’s AAA rating reflects a sustained trend of improvement in Florida’s economy and finances, low state debt and pension ratios, and reduced near-term liability risks via the state-run insurance companies,” the June 2019 report reads. “The state’s economy is performing strongly in terms of job growth, and long-term growth prospects are favorable despite the challenges posed by an aging population base.” We thank The Center Square for reprint permission.

Federal Judge Denies Motion to Dismiss Allstate Case by Emmariah Holcomb, glassBYTEs.com

U.S. District Judge Carlos Mendoza denied Auto Glass America (AGA) and its owner Charles Isaly’s motion to dismiss for lack of subject matter jurisdiction in its assignment of benefits (AOB) fraud lawsuit yesterday. The ongoing legal battle is between Allstate Insurance Company, Allstate Fire and Casualty Insurance Company, Allstate Indemnity Company and Allstate Property and Casualty Insurance Company (collectively Allstate) and defendants AGA and Isaly. According to the Federal Rule of Civil Procedure, a party may “move to dismiss the claims against it for lack of subject-matter jurisdiction.” Attacks on subject matter jurisdiction come in two forms: facial and factual attacks. AGA and Isaly also say they reached two settlements with Allstate, and submitted two mediation agreements that supported disposing of several hundred state court small claims actions.

Defendants argued Allstate improperly included the settled cases to “satisfy the amount the insurance company listed in its complaint.” The defendants also argued settled claims should be deducted from the amount Allstate listed. “The mediation agreements also include other named plaintiffs involved in the settlements and do not specify how much was paid by plaintiffs. Fortunately, plaintiffs have submitted their supplemental rule disclosures, which contain detailed calculations of their alleged damages and establish that the amount in controversy far exceeds the minimum requirement. The plaintiffs have met their burden to withstand the defendants’ factual attack,” a portion of the order reads. Look to a future edition of glassBYTEs for continued coverage of this suit. We thank glassBYTEs.com for reprint permission.

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autobodynews.com / AUGUST 2020 AUTOBODY NEWS 7

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WV Auto Dealers Adapt to Coronavirus Pandemic by Lexi Browning, West Virginia Press Association

Chris Miller knows a thing or two about cars, but, like other business owners, he didn’t have a repair manual for handling the impact of the new coronavirus on the local economy. Co-owner of the Dutch Miller auto dealership chain, which his grandfather founded in the late 1960s, Miller’s family brand has become a household name in regional car talk. His grandfather, who was born on a dirt floor in Bear Creek, KY, went on to live “the American Dream” after fighting in World War II and the Korean War, Miller said. He worked professionally at a local Chevrolet dealership, and in 1967, bought out the business, creating what is now known as Dutch Miller Chevrolet. Now, more than five decades later and during an ongoing pandemic, Miller is following in the footsteps of his grandfather, making opportunities out of challenging circumstances. As the coronavirus pandemic began to surge throughout the nation earlier this year, Miller and his staff were proactive, taking measures to ensure that their employees and customers were safe. “We offer online vehicle sales now, which is something we’ve never done before,” Miller said. “All the vehicles are priced online, but people can actually have a zero-contact buying option to find the vehicle they want, work at financing, go through the process of verifying who they are and have the vehicle delivered to them without ever coming to the car dealership. It’s revolutionary.” According to Miller, comparing March, April and May of 2020 to the same months in 2019, his dealerships did not see a decrease in sales. Service and parts, however, have decreased significantly due to divided work shifts. Having manufacturers’ recent incentives, such as rebates and zero percent financing for 84 months, made buying a car “very appealing” for customers in recent months, Miller said. The dealerships have continued

to sell a consistent mix of new and used cars, he said, but for dealerships, used cars became more difficult to secure based on limited supplies and rising demands. “There was a huge interest in pre-owned vehicles,” Miller said. “You had a market that was pent up and you couldn’t acquire different vehicles for several months because auctions were closed down, so the only way you could acquire was through trade-ins, so the value of pre-owned vehicles has increased. If people are looking to trade in their old ones, right now is the perfect time because the values of used cars have actually gone up.” At Charleston Mitsubishi, owner Charles Rashid said he doesn’t anticipate sales to recover to a pre-coronavirus level for another two years. Rashid owns dealerships in Beckley, Charleston and Clarksburg in West Virginia, and another in Lexington, KY. “Business essentially stopped,” Rashid said. “We’ve always been a top 20 dealer in the country, and we tried to stay open during the virus by having a touch-free delivery for picking up and dropping off, sanitizing before and after servicing the vehicle. We had a complete no-touch policy.” But business had slowed significantly, resulting in the layoff of 30 employees, he said. Rashid applied for the Paycheck Protection Program, which was created by the federal CARES Act to assist small businesses in maintaining and rehiring laid off employees and assisting in financially stabilizing the businesses during the pandemic. “It helped us hire every single person back, thank God,” Rashid said. “Our business is still only at 25% of pre-COVID (sales), but we do have our entire staff back.” For Miller, ensuring that all employees stayed employed at his dealerships was also a top priority. “Our goal was to make sure no one lost their job—not one person,” Miller said. “We wanted to keep all employees in place and use that for the ability of further expansion because we’re a growing business. That was very important to us and to our people. We paid anybody

that wanted to work 115% of their average 2019 earnings, and anyone who didn’t (feel comfortable working) and was fearful or needed to stay home for an elder loved one at a higher risk than most people, we paid them 75% average 2019 to stay at home and care for their family members.”

The Dutch Miller Chevrolet dealership storefront is seen May 6 in Huntington, WV. Credit: Sholten Singer/The Herald-Dispatch

About 5% of employees elected to stay home, Miller said, and the rest remained intact. In mid-March, businesses across the Mountain State began to shut down, fearful of

the pandemic and the uncertainties that accompanied it. With the shutters came layoffs and a surge of unemployment insurance applications, which overwhelmed Workforce West Virginia’s system, activating National Guard members to assist in processing the backlog of applications. Rashid said, “If it wasn’t for the PPP and Small Business Administration, we’d not be able to reopen.” Rashid said it was crucial to take care of employees at a time when so much was unpredictable. “We closed in March, and in April hired back [the employees],” Rashid said. “We wanted to get employees back so they wouldn’t have to worry about feeding their family or where their next check was coming from.” Many employees, he said, still haven’t received their unemployment benefits weeks after they applied. When Gov. Jim Justice issued the stay-at-home order in late March, many of Charleston Mitsubishi’s partner businesses closed,

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Rashid said, preventing the dealership from getting certain repair services done for customers’ vehicles. “On the other side, [coronavirus] affected a number of outside vendors, such as body shops, and because of COVID-19, they’ve closed, so we can’t get that kind of work done for customers. It’s caused an increase in expenses because we supply the masks and gloves, and we’re cleaning every 30 minutes and doing extra sanitizing.” As sales decreased, interest continued to accumulate for the vehicles on the floor. Vehicles are usually acquired in three- to four-month supplies, Rashid said, and with few sales, the dealership has not been able to bring in new cars because they still had plenty of inventory that had not yet been purchased. Though he anticipates the sudden decrease in sales will take a little while to bounce back, Rashid sees an opportunity for new innovations to come to fruition. Devoting extra time each day to sanitization, he said, can also help prevent the spread of the common cold and flu.

“Not everything is bad,” he said. “I’ve wanted to go with an essentially touchless process where customers could look online, be approved online, and I’m working to access vehicles 24 hours a day to test drive, electronically sign the documents and do it at their convenience without having to talk to a salesperson.” Miller has also seen the auto industry’s sales process change because of the virus. The technological advances, Miller said, have seemingly sped up in the industry by at least a decade, paving the road to alternative sales methods. Though it’s taken both buyers and sellers time to adjust in an industry that’s traditionally hands-on, Miller said everyone is adapting to the new normal. “There are certain things that are going to stick with us,” Miller said. “Eventually, there are things we’ll see that just aren’t necessary any longer … I think going through something like this from a broad perspective will show us areas for improvement not only in business, but in government, when it comes

to how we respond to medical emergencies in our country in the future,” he said. “It allowed us to see where the deficiencies lie so we can improve them for the next time.” Moving forward, he expects several of the safety procedures they have implemented in the last several months to be adopted. “This will accelerate what happens with technology and how customers and car dealers interact in the future, and there may be some cool byproducts of this, like the elimination of paper in dealerships, or all-digital delivery and a decrease in time at dealerships,” he said. “There are some interesting byproducts of COVID-19 that will benefit the consumers in the long run.”

At the West Virginia Automobile Dealership Association (ADA), where Miller serves as the organization’s chairman, Miller said ADA President Jared Wyrick worked diligently to stay on top of operations by interacting with the legislators to understand rules and guidelines and staying in connection with the legal team to ensure dealers had representation and a greater understanding of ongoing events. “When it came to the survival of the business in the short and long term, he was excellent,” Miller said of Wyrick. “Having that guidance is very, very important.” We thank The Herald-Dispatch for reprint permission.

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Models Confirm Florida in COVID-19 Resurgence, Warn of ‘Catastrophic Consequences’ by John Haughey, The Center Square

Florida has ranked sixth in the nation for coronavirus spread for six weeks according to a model tracking COVID-19 transmission, and three other projection models forecast bad scenarios for the state by Oct. 1. All four models agree Florida is in a resurgence and indicate, to varying degrees, COVID-19 cases will continue to increase statewide in coming weeks, with two models warning the worst is yet to come. The Florida Department of Health’s COVID-19 dashboard reported June 18 that 85,926 people have tested COVID-19 positive and 3,061 people have died from the disease. The past week has seen record-setting days in the number of new cases, with newly diagnosed infections topping 1,000 daily in 15 of the past 16 days, including more than 2,700 new cases, and at least 25 new deaths, reported June 17. Gov. Ron DeSantis has attributed some of the surge to increased testing statewide―more than 1.5 million have been tested―and said numbers are skewered by the timing of “data dumps,” when labs report “batched”

test results. The governor has also said increased rates of those testing positive are partially because the state is targeting testing in “high-risk environments,” such as nursing homes, prisons and jails, industrial worksites and migrant farmworker communities.

An employee wearing a protective face covering, right, monitors the ﬂow of customers June 17 at an Apple retail store along Lincoln Road Mall in Miami Beach, FL. Credit: Lynne Sladky/AP

DeSantis affirmed June 16 he will not recede from his June 5 launch of phase two in his three-part reopening plan. “We’re not shutting down. We’re going to go forward,” DeSantis said. The four models suggest voluntary compliance with Centers for Disease Control and Prevention guidelines and social distancing protocols is episodic,

at best. According to a transmission model built by open-source software developer GitHub, the virus is spreading at an “Rt COVID-19 value” of 1.06, meaning each Floridian with the virus infects on average six people. An Rt value above 1.0 means the virus is spreading. Florida was below 1.0 Rt from April 29 through May 10 and was at 1.08 on May 28, according to GitHub. At 1.06, Florida has ranked sixth nationally in spread for six weeks, GitHub calculates, and it is the same “reproduction number” cited by MIT graduate and independent data scientist Youyang Gu in his COVID-19 projections model. Gu’s model uses machine learning to inform its predictions, which are incorporated into aggregates calculated by the CDC. It puts the new case peak at 8,000 daily in mid-July, dropping to 4,800 by Oct. 1. It projects daily fatalities peaking at 58 in early August and dropping to 43 by Oct. 1, when 8,257 Floridians are estimated to have died from the disease. Several weeks ago, Gu’s model offered the most dire prognostications, especially when compared with forecasts calculated by the oft-cited Institute for Health Metrics and Evalua-

tion‘s (IHME) model. In early June, IHME predicted 3,899 COVID-19 deaths by Aug. 4, a downward revision from its previous estimate that 5,440 Floridians would die from the disease by early August. The IHME model, which has been highlighted by White House officials, now projects the state could see 54,000 new daily COVID-19 infections and 438 daily deaths come October. Meanwhile, Children’s Hospital of Philadelphia Research Institute and the University of Pennsylvania have issued a similar dire forecast for the Sunshine State. Florida has “all the markings of the next large epicenter of coronavirus transmission” and risks being the “worst it has ever been,” according to June 17’s projections from institute and university researchers. “The potential for the virus to take off [in Florida] is very, very nerve-racking and could have catastrophic consequences,” University of Alabama at Birmingham Division of Infectious Diseases Director Dr. Jeanne Marrazzo told CNN on June 18. We thank The Center Square for reprint permission.

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Bill to Protect GA Businesses From COVID-19 Lawsuits on Governor’s Desk by Nyamekye Daniel, The Center Square

A bill that would offer Georgia businesses legal protection from certain coronavirus-related lawsuits is on Gov. Brian Kemp’s desk. The measure, dubbed the Georgia COVID-19 Pandemic Business Safety Act, would prevent health care facilities and providers and other businesses, including those who sell personal protective equipment, from being sued because of potential exposure to or transmission of COVID-19. The Georgia Chamber of Commerce is calling on Kemp to sign the bill. “COVID-19 threatens not only the health of Georgians but also their livelihood,” David Raynor, Georgia Chamber of Commerce’s chief public affairs officer, said in a statement. “We appreciate Senate and House leadership [for] adopt[ing] legislation that helps businesses reopen with less risk and enables hardworking citizens to provide for their families.” The act does not protect businesses or health care providers

that have been proven negligent or guilty of “willful and wanton misconduct, reckless inﬂiction of harm or intentional inﬂiction of harm.”

Mary Spoto, general manager of Madison Chop House Grille, places a sign outside the restaurant as she and her staff prepare to shift from takeout only to dine-in service April 27 in Madison, GA. Credit: John Bazemore/AP

Once the bill becomes law, it would be in eﬀect until July 14, 2021. Ashley Williams Haltom, a spokeswoman for the Georgia Trial Lawyers Association, said the association has been working for weeks

with legislators and business leaders on a piece of legislation that matches the organization’s priorities. “Throughout the process, we have been unwavering on three things: that this bill be limited to COVID cases; that it be limited in time; and that it not protect against gross negligence,” Haltom said in a statement. “We believe that we have found a compromise in SB 359 that meets those requirements. As we continue through unknown terrain in regards to the COVID-19 pandemic, we look forward to helping Georgia’s vibrant economy get back to work safely with the implementation of SB 359 into law.” Kemp has until Aug. 7 to sign or veto the bill before it automatically becomes law. The governor issued an executive order in April that includes similar liability protections for health care workers during the COVID-19 public health state of emergency. We thank The Center Square for reprint permission.

Continued from Page 3

South FL Mayors 2,090 additional conﬁrmed cases and 32 deaths July 14, raising its tally to 69,803 cases and 1,175 deaths. With positive test rates at 22.1%, and at 26.3% at one point last week, the mayors told DeSantis the situation is going to get worse before it gets better. DeSantis said he will not roll back from phase two of his threephase reopening plan, but said local governments have his support to impose mandatory face mask and other safety protocols should circumstances demand. Miami Gardens Mayor Oliver Gilbert III said the governor must emphasize the seriousness of the situation. “Right now,” he said, “people don’t believe that actually can happen.” Suarez and Gilbert leveled mild criticism at DeSantis, with Suarez saying Florida needs a new longterm strategy since “things have sort See South FL Mayors, Page 16

Craigslist Car Fraudster Serving 6 Years for Vehicle Fraud by Elizabeth Puckett, Motorious

Robert Brandon Malone, 35, of Prattville, AL, was sentenced to 71 months (5.9 years) in prison for wire fraud and the transportation of a stolen vehicle. It all started in April 2017 with a Ram 1500 a client had brought in to trade at the dealership Malone he was working at at the time. Malone proceeded to post a listing for it on Craigslist and sold the truck. After discovering the truck did not belong to Malone, the buyer returned it to the dealership, expecting a refund that he did not receive. Next, in January 2018, while working on a Chevy C10 pickup truck for someone at his repair shop, Malone posted yet another listing on Craigslist for said pickup truck. Eventually, the truck was returned to its rightful owner. However, yet again, there was no refund. Malone’s ﬁnal scam would be the one to cost him his freedom. Malone was in the process of completing the paperwork to purchase an Audi R8. Before the purchase could be completed, Malone hopped in the vehicle and drove from the dealership, in Georgia, back home to Prattville. He then contacted some-

one he knew was in the market for an Audi and sold it to that person. The buyer had left their F-150 at Malone’s place and was coming to retrieve it, but Malone posted an ad on Instagram. He sold the truck. Both new owners eventually discovered the vehicles were not his to sell; all of the vehicles were returned to their respective owners but no money was refunded to anyone. Malone was eventually indicted by a federal grand jury on three counts of wire fraud and one count of transporting a stolen vehicle in October 2019. He was put on a pre-trial release in November, which was eventually revoked in February after he was discovered doing the same thing in Pelham, AL. Malone was said to have been relatively unconcerned about getting caught even after having already been arrested for it. He is now serving a 71-month sentence on three counts of wire fraud, transportation of a stolen vehicle and other violations of Alabama state law. He was also ordered to pay an amount of $93,784.68 as restitution to the victims of his crimes. We thank Motorious for reprint permission.

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Continued from Cover

Positive Trends hicle auction company reported its mid-month “Used Vehicle Value Index” fell to 125.2 points, a 9.6% decrease from the same period a year ago. The prior record for decline in any month was 5.5% in November 2008. Manheim also pointed out, however, that when its used vehicle value index fell 10.5% over two months in the fall of 2008 at the start of the Great Recession, the horizon looked bleak then as well, yet vehicle values fully recovered seven months later. Sure enough, this year there was a strong—nearly 9%—rebound in May, Manheim reported, bringing pricing to within 1.9% of what it was a year earlier. The index then jumped another 6.6% in the ﬁrst half of June, erasing much of the spring decline and reaching a level that is actually 4% higher than last June. Admittedly, there are still factors that could lead to a lot of instability in used vehicle pricing in the coming months.

Rental car companies continue to send signiﬁcant numbers of used vehicles to the auctions as they reduce their ﬂeets in response to the drop in travel. Repossessions are also picking up, and while automakers delayed some turn-back dates on leases this spring during the worst of the COVID-19 impact, more of those vehicles also are expected to join the parade of

repairers.

Traffic levels are getting closer to “normal” Traffic analyst firm INRIX at the end of June halted the weekly reports it was producing on traffic levels around the country given that by its system of measurement—a comparison to weekly traffic in February—personal vehicle traffic on a rolling seven-day national basis was back to 100% as of June 25. As July began, more than 34 states had traffic levels higher than in February, according to INRIX, and only three states had declines exceeding 10%: Hawaii (still down 43%), California (down 12%) and Arizona (down 11%). Forty-two of Manheim’s used vehicle pricing index in June had rebounded the 98 metropolitan areas significantly after a record-setting drop this spring, reaching INRIX tracks in the U.S. levels higher than a year ago, which will help prevent more vehicles from being declared total losses had traffic at or exceeding February levels. That’s a fairly sharp recovery, used vehicles hitting the market. Still, the fact that the large de- given that in early April, traffic had cline in the spring didn’t hold should fallen to nearly half of what it had come as welcome news to collision been just six weeks earlier.

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It should be noted that the INRIX data paints a little brighter picture of traffic around the country than it would if it compared traffic in June to what it was a year earlier. Because traffic tends to rise in the spring and summer, reaching February levels in late June still represents about a 16% decline compared to a year earlier. But 16% off is significantly better than the 47% decline in April. And analysis of traffic camera data in some cities and states indicates even more of a full recovery in some markets. Using that measurement, statewide traffic in Florida and Indiana during the third week of June, for example, was down by just 4% or less compared to the same week in 2019, and down by less than 10% in Arizona, Ohio and Michigan. Looking at vehicle counts tracked on state highways in some cities also points to at least a near return to normal in some cities. Traffic on I-465 in Indianapolis in early July, for example, was actually 6% higher this year when measured against the same week last year. And traffic camera data for that week indicates just a 10% See Positive Trends, Page 39

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Auburn University Building New Autonomous Vehicle Research Facility by Chris Anthony, The Newsroom

For researchers in Auburn Universityâ&#x20AC;&#x2122;s GPS and Vehicle Dynamics Laboratory, prepping autonomous vehicles outside in Alabamaâ&#x20AC;&#x2122;s elementsâ&#x20AC;&#x2022;from the sweltering summer sun to pop-up thunderstormsâ&#x20AC;&#x2022;has become a near daily occurrence. Whether researchers are debugging algorithms, installing sensors or running data analyses, much of the work from the GPS and Vehicle Dynamics Laboratory, or GAVLAB, is done outdoorsâ&#x20AC;&#x2022;and subject to Mother Natureâ&#x20AC;&#x2122;s whims. That is about to change with the planned addition of a sophisticated new autonomous vehicle research facility at Auburnâ&#x20AC;&#x2122;s National Center for Asphalt Technology test track. The facility is expected to provide a garage with multiple bays and lifts for commercial trucks and passenger vehicles, oďŹ&#x192;ce space for researchers, a conference room and an observation area overlooking NCATâ&#x20AC;&#x2122;s 1.7-mile oval test track. The building, estimated to cost approximately $800,000, will

be one of the few autonomous research facilities in the nation attached to a test track. â&#x20AC;&#x153;The fact that weâ&#x20AC;&#x2122;ll have our own test track where we can run autonomous vehicles and autonomous testing attached to this facility I think will be an unbelievably unique asset,â&#x20AC;? said David Bevly, the Bill and Lana McNair Distinguished Professor of mechanical engineering and co-director of the GAVLAB, along with assistant research professor Scott Martin. Since Bevly joined the Auburn engineering faculty in 2001, the GAVLAB has built a strong reputation in autonomous vehicle navigation and developed a broad sponsored research portfolio, with projects ranging from the Department of Defense and the Federal Highway Administration to many private industry partners. With various sponsors visiting each month, the facilityâ&#x20AC;&#x2122;s planned observation area will give the GAVLAB team a high-quality space to demonstrate its research. Bevlyâ&#x20AC;&#x2122;s group has also conducted demonstrations for legislators and

the Alabama Department of Transportation. â&#x20AC;&#x153;I think it will be a great facility for us as a team, but also to showcase our work,â&#x20AC;? Bevly said. With a growing research thrust in transportation engineering, the autonomous research facility also demonstrates Auburnâ&#x20AC;&#x2122;s commitment to supporting these research initiatives. â&#x20AC;&#x153;Dave and his GAVLAB team are one of our top research groups on campus, and their work has elevated Auburn to an internationally prominent position in navigation and vehicle dynamics for autonomous vehicles,â&#x20AC;? said JeďŹ&#x20AC; Suhling, the Quina Professor and department chair for mechanical engineering. â&#x20AC;&#x153;Our department is proud to commit resources, along with the Samuel Ginn College of Engineering, to support high-impact researchers. We think this facility will really help set us apart from other universities in autonomous vehicle research.â&#x20AC;? We thank The Newsroom for reprint permission.

South FL Mayors of not gone according to plan.â&#x20AC;? Gilbert said the stateâ&#x20AC;&#x2022;and south Floridaâ&#x20AC;&#x201D;reopened too soon. â&#x20AC;&#x153;We werenâ&#x20AC;&#x2122;t closed long enough to actually create good habits,â&#x20AC;? Gilbert said. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t have the habit now of wearing a mask. It should be second nature.â&#x20AC;? Miami Beach Mayor Dan Gelber said he does not share DeSantisâ&#x20AC;&#x2122; assurances schools can reopen safely next month. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m not sure all of our parents feel like they know, frankly, if itâ&#x20AC;&#x2122;s going to be safe enough,â&#x20AC;? Gelber said. DeSantis said parents wonâ&#x20AC;&#x2122;t be forced to send children into classrooms with districts oďŹ&#x20AC;ering a range of options, including full-time online curriculum and distance learning. The governor reiterated research indicates children are less susceptible to the virus and are not transmission â&#x20AC;&#x153;vectors.â&#x20AC;? â&#x20AC;&#x153;That is just something I think See South FL Mayors, Page 18

Classic Collision Acquires H&M Auto Body in Miami Classic Collision, LLC., an Atlanta-based multi-site collision repair operator, announced it is has acquired H&M Auto Body in Miami, FL. This is Classic Collisionâ&#x20AC;&#x2122;s ninth South Florida location. It now operates 36 stores in Georgia, Florida, Alabama and South Carolina. With this acquisition, H&M Auto Body will be known as Classic Collision Coral Gables and expands Classic Collisionâ&#x20AC;&#x2122;s coverage from Palm Beach and Broward county into Miami-Dade. H&M Auto Body has served the Miami Dade and Coral Gables communities for more than 25 years. â&#x20AC;&#x153;After nearly three decades as an independent collision repair company, we are thrilled to become a part of an expanding com-

pany with genuine value for every team member and customer,â&#x20AC;? said Mike Maussawel, the former owner for H&M Auto Body. Classic Collision is looking toward the future and continues to implement its strategy to expand across the country despite the unique challenges brought onto the industry this year. â&#x20AC;&#x153;In spite of the diďŹ&#x192;cult market situations, we are not slowing down our plans to expand. Our teamâ&#x20AC;&#x2122;s integration model and operations playbook keep us safely performing at a high level. We will continue to acquire high-end businesses which makes a lot of sense for our customers, insurance partners, landlords, teammates and communities,â&#x20AC;? said Toan Nguyen, CEO of Classic Collision.

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GEICO, Smart Ride Lawsuit Reaches Settlement by Emmariah Holcomb, glassBYTEs.com

The Florida assignment of beneﬁts (AOB) fraud lawsuit between Government Employees Insurance Co., GEICO Indemnity Co., GEICO General Insurance Company and

GEICO Casualty Co. (collectively GEICO) and defendants Smart Ride (originally organized under the name Chipio Windshield Repair LLC), Andrew Baker, Gerald Salko, Lawrence Tenebaum and Michael Meryash (all of whom controlled Smart Ride), the Baumer Group LLC, Stealing Home LLC and Rekaba LLC reached a settlement, and the case is expected to be dismissed. Both parties submitted a joint motion for dismissal following

mediation, according to court documents. The terms and conditions discussed in the mediation and settlement were not disclosed. Background At the beginning of this year, GEICO alleged the defendants were responsible for a “fraudulent scheme” that involved hundreds of unlawful auto glass claim submissions to the auto insurance company.

GEICO’s complaint alleged the defendants “wrongly obtaining more than $144,000 by submitting fraudulent and unlawful windshield reimbursement claims,” for the last four years. According to GEICO, Baker, Salko, Tenebaum and Meryash owned and controlled Smart Ride through Stealing Home and Baumer. The insurance company also alleged the group worked with Rekaba

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LLC to produce fraudulent claims for auto glass services submitted through Smart Ride. According to GEICO, the defendants at no point “maintained any vehicles or tools for use in providing glass services, and did not maintain any glass inventory.” GEICO provided the following reasons why it should not be responsible for paying for the defendant’s reimbursement claims: The claims involved phony glass services that were not necessary, reparative or, in some cases, actually performed The claims were the product of illegal, deceptive, unfair and manipulative conduct directed at GEICO insureds. The claims were submitted through Smart Ride, which never actually performed the services, never obtained valid assignments of insurance beneﬁts from the insureds and was ineligible to seek reimbursement from GEICO for the claims in the ﬁrst instance We thank glassBYTEs.com for reprint permission.

South FL Mayors that we should understand,” DeSantis said. “I think that that should be put out there, and I don’t think that we should try to scare parents and act like somehow that this is more of a threat to their kids than it actually is. It’s a serious pathogen overall, but for whatever reason, kids are at lower risk.” Gilbert questioned DeSantis’ conﬁdence. “This conversation goes terribly diﬀerent if one child contracts COVID-19 in school and dies,” he said. We thank The Center Square for reprint permission.

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7/21/2020 6:35:10 PM

Oil Prices Suppressed by Low Demand, How Auto Retail May React by Jason Unrau, CBT Automotive Network

American oil prices have rallied back from an all-time low of negative $37.63 per barrel for May futures on West Texas Intermediate (WTI) crude on April 20. At that price, a seller would actually have to pay to have the buyer take their inventory—an unlikely scenario that would typically see sellers hold their product until the prices rebound. Last week, the WTI crude index was up to $41.40 per barrel before it began to regress once again. At the opening bell July 20, WTI crude was down to $40.25 per barrel. The price drop continues to reﬂect the decrease in demand for gasoline during the coronavirus pandemic. Fox Business is reporting usage remains below pre-pandemic consumption levels and demand is once again falling as infection rates are climbing. Relative Gas Prices Regular-grade gasoline prices tanked to $1.66 per gallon in the ﬁnal week of April when oil prices

were at their lowest. In the subsequent weeks, the price has recovered and stabilized at around $2.11 per gallon on average, nationwide. At the same time last year, the price was $2.68 per gallon when WTI crude was at $60 per barrel.

Although gas prices don’t follow crude oil futures exactly, they give a relative indication for the future. With oil prices tightening up, it’s a fair assumption that fuel prices will follow suit, assuming oil continues to lose value. How It Affects the Economy A Congressional Budget Oﬃce report highlighted the shift to smaller, more fuel-eﬃcient passenger cars when oil prices and fuel prices were near or above $3 per gallon in periods from 2005 to 2008.

Especially when oil prices hold a trend for an extended period, consumer sentiment follows suit. When gas prices are high, people drive less and purchase more conservative models. And conversely, when fuel prices are low, consumers tend to drive more, buy more vehicles, and purchase larger, less fuel-eﬃcient models. The problem with the current economic climate is that consumers are driving less while fuel prices are down because of the coronavirus. That poses an unusual challenge for auto retail. The Effect on Auto Retail Normally, a higher volume of vehicle sales would be the result of suppressed oil prices and subsequently low fuel prices. But as the virus numbers spike in many states, consumer sentiment is reversing. The Deloitte State of the Consumer Tracker from July 13 indicates American sentiment has shifted to an increasingly anxious view; 42% now say they’re delaying large purchases. Buying intent for vehicles is down 10%.

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While consumer buying intent is down, it is a minor amount right now. Dealers may have to work harder to close deals and provide exceptional service whether in-person or through online sales. But the timing is also right for automakers to once again spur on sales with aggressive incentives. As factories have resumed assembly, inventory levels are slowly recovering. Customers who may intend to keep their vehicles longer in light of the pandemic will need to perform routine maintenance and repairs to keep them functional and in good condition. It may be a time to focus on boosting revenue through the ﬁxed operations departments while holding the line on new and used car sales. It’s an unusual position in the U.S.: low fuel prices with low consumer sentiment. However challenging, dealers always prove their resiliency during tough economic times, and this will be another example. We thank CBT Automotive Network for reprint permission.

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Hey Toby! with Toby Chess

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

An Overview of Corrosion Protection Products: Part 1 of 2 on bare metal before applying body ﬁller. 8. T or F: Honda recommends weld 1. T or F: In Honda’s latest bulletin through primer when MIG welding on corrosion, it states epoxy primer and squeeze-type resistance weldshould only be sprayed to put down ing. a light coat of epoxy primer. 9. T or F: A new quarter panel has withMotors David 2. T or F: General nowMcClune al- been installed. Painting the backside lows the use of DTM sealers, which of the rear body panel is included in have built-in corrosion protection the repair adjacent welded panel as per CCC guide. materials, on bare metal. 3. T or F: General Motors’ black 10. T or F: Toyota considers adheprimer is used on bare metal surfac- sive as corrosion barrier. 11. When replacing a factory hood, es that will be bonded. 4. T or F: Toyota allows limited use which of the following items does Toyota say need to be applied? Mark of weld boding on its vehicles. 5. T or F: Toyota has a recommend- all that apply: seam sealer, cavity ed weld through primer on its web- wax and/or chip resistance primer. with John Yoswick site. 6. T or F: Fiat Chrysler does not How many of you watched the inrecommend weld through primer on terview of Marcia and Matthew Seebachan at CIC (www.repairer weld parts. 7. T or F: Honda, like Toyota, rec- drivennews.com/2019/12/05/seeommends a coat of epoxy primer the-cic-interview-with-john-eagleLet’s start with a test on corrosion protection.

plaintiffs-matthew-and-marciaseebachan/)?

California Autobody Association

Year in Quotes

ABPA Joins New CAR Collision Coalition

Fig. 2 Fig. 1

If you are not familiar with the case, John Eagle Collision had a Honda Fit come into the facility with hail damage to the roof. The shop made

CITY KIA OF Repair Association GREATER ORLANDO of CA.

with Richard The Automotive Body Parts As- Steffen sociation (ABPA) is proud to announce it has joined the CAR (Consumer Access to Repair) Coalition, a group of independent automotive parts and repair companies, associations and insurers dedicated to preserving and protecting consumer choice, transparency and affordability in the post collision 9550 S. Orange Blossom Trail repair market. Orlando, FL 32837 The CAR Coalition will work to advance policy solutions thatYoswick ad407-956-6601 with John dress the rising cost of automotive 407-554-5910 Fax collision repair for consumers. parts@citykia.com The coalition will also work to build awareness of efforts by M-F 7am-7pm automotive companies/original Sat 7am-3pm equipment manufacturers (OEMs) Sun 8am-4pm to limit consumer choices in the post collision repair process. These include limiting consumer access to data, automotive design patent abuses and the use of steering techniques and first notice of loss from withconsumers Karyn to Hendricks  Wide Delivery Area OEMs, which directs  Competitive Pricing dealers first. These tactics limit repair choices and drive up costs for consumers. Source: ABPA

Transition Planning

the decision to replace the roof using adhesive, because the insurance company would not pay the extra $3,000 to weld the roof in place as outlined in the Honda repair procedures.

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The Seebachans purchased the repaired vehicle and were involved in a front-end collision. The roof gave way and caused the quarter panels to buckle inward, puncturing the gas tank and

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causing the vehicle to catch fire. Last February, at Verifax’s annual symposium, the Seebachens’ Honda Fit was on display. You can read all about it, but when you see the vehicle in person, it is a life-changing moment. The couple sued the body shop and was awarded $31.5 million. The couple is totally disabled for life, they cannot have children and Matthew is in constant pain and has some brain damage. It is imperative you watch the video to get a better understanding of what the collision repair and insurance industries and suppliers did to these two individuals for $3,000. It is shameful. It all boils down to the fact OEM procedures were not followed in order to save a few dollars. The insurance company in this case said “it specifically denies that it coerced or forced John Eagle to perform substandard repairs” and “denies that it coerced or enticed any body shop to not follow vehicle manufacturer’s procedures, cut corners, take safety shortcuts or do anything that jeopardizes members of the mo-

toring public.” What this means to the repair industry is you are all by yourself when something goes really wrong. I am going to take a look at one repair process, corrosion protection, and see if you are following OEM procedures when restoring a vehicle to its pre-loss condition. Are you using the line item “replace corrosion protection”? Let’s have an understanding up front—“replace corrosion protection” is not a line item, it is a repair process. Depending on the repairs being performed, it might need one or two items to restore corrosion protection, but in the case of quarter panels being replaced, it uses upwards of 11 or 12. I know the insurance companies put that on their estimates, but the legal document is your signed repair order with your customer (and not the insurance company’s) and you need to list each item that goes into the repair of the damaged vehicle. The other legal aspect of using the term “replace corrosion protection” is you could be liable for any and all problems in the future related to corrosion. As with the Seebachens’

case, you are all alone if you need to defend yourself in a court of law. Going forward, list each item you used in the repair process. If you do not want to list each item, use a line that states “for all corrosion protection products used in the repair, please see attached invoice.” See Fig. 3 for example of an invoice for a quarter panel replacement using the PROS program from Kent Automotive.

You can see a number of items on the Kent Automotive corrosion protection cart. There are several fine companies that make these products, but I am most familiar with the Kent line.

Fig. 4 Fig. 3

I think we need do a tutorial on the many corrosion protection items used in the repair process and what the OEMs state in their repair manuals. Fig. 4.

Weld Through Primers These primers are used between mating surfaces. You can use copper-based (with zinc) or zinc-based. (Fig. 5) Let’s see what some of the OEMs state about the use of weld through See Corrosion Protection, Page 43

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

FLORIDA

GEORGIA

NO. C

Freeway Honda

Headquarter Honda

Ed Voyles Honda

Nalley Honda

800-987-0819 205-949-5460

800-497-2294 407-395-7374

800-334-3719 770-933-5870 Direct

866-362-8034 770-306-4646

Birmingham

Dept. Hours: M-F 7:30-5 greg_thomas@freewayhondaal.com FLORIDA

AutoNation Honda Clearwater Clearwater

888-205-2564 727-530-1173

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

AutoNation Honda Hollywood Hollywood

800-542-8121 954-964-8300

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

Classic Honda Orlando

888-893-4984 407-521-1115

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

Coggin Deland Honda Deland

Clermont

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

Hendrick Honda Pompano Beach Pompano Beach

954-425-8244

Marietta

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

Gerald Jones Honda Augusta

800-733-2210 706-228-7040

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

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

Rick Case Honda

Honda Mall of Georgia

877-544-2249

678-318-3155

Davie

Buford/Gwinnett

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

Dept. Hours: M-F 7-7; Sat 7-5 cdunlap@penskeautomotive.com

South Motors Honda

Milton Martin Honda

888-418-3513 305-256-2240

770-534-0086 678-989-5473

Miami

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

Gainesville

Dept. Hours: M-F 7:30-6 robertthomas@mmhonda.com

Honda of Newnan

GEORGIA

Newnan

Carey Paul Honda Snellville

770-985-1444

678-423-8183

Dept. Hours: M-F 7-6; Sat 7-4 samuel.trapani@henrickauto.com

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

Union City

Dept. Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars.com

SO. C

MISSISSIPPI

Patty Peck Honda Ridgeland

800-748-8676 601-957-3400

D fm

Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com NO. CAROLINA

Apple Tree Honda

Asheville

800-476-9411 828-684-4400

TENN

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

Crown Honda Southpoint Durham

855-893-8866 919-425-4711

Dept. Hours: M-Thu 7-11; Fri 7-6 Sat 7-5; Sun 11-5 www.southpointhonda.com

Dept.

McKenney-Salinas Honda

800-758-0007 386-626-1811

Gastonia

888-703-7109 704-824-8844 x 624

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

Dept. Hours: M-F 7:30-5:30 parts@mshonda.com

ACURA FLORIDA

FLORIDA

GEORGIA

NO. CAROLINA

VIRGIN

Acura of Orange Park

Rick Case Acura

Nalley Acura

Leith Acura

888-941-7278 904-777-1008

800-876-1150 954-377-7688

800-899-7278 770-422-3138

800-868-0082 919-657-0460

Jacksonville

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

Duval Acura Jacksonville

800-352-2872 904-725-1149

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

Fort Lauderdale

Dept. Hours: M-F 7:30-6; Sat 8-5 rubenramos@rickcase.com GEORGIA

Marietta

Dept. Hours: M-F 7-7; Sat 7-5 byoung@nalleycars.com NO. CAROLINA

Cary

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

Jackson Acura

Flow Acura

Karen Radley Acura

877-622-2871 678-259-9500

800-489-3534 336-761-3682

800-355-2818 703-550-0205

Roswell

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

Winston-Salem

Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com

Woodbridge

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

24 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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NO. CAROLINA

-5 m

oint

-6

onda

VIRGINIA

Vann York Automall

Bill Gatton Honda

West Broad Honda

336-841-6200

800-868-4118 423-652-9545

800-446-0160 804-672-8811

High Point

Dept. Hours: M-F 7:30-6; Sat 8-3

-5

TENNESSEE

SO. CAROLINA

Bristol

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

Breakaway Honda

Wolfchase Honda

800-849-5056 864-234-6481

800-982-7290 901-255-3780

Greenville

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

Piedmont Honda Anderson

800-849-5057 864-375-2082

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

Richmond

Dept. Hours: M-Fri 7:30-6:30; Sat 8-5 wbhonda@aol.com

Bartlett

Dept. Hours: M-F 7-7 ekerr@wolfchasehonda.com VIRGINIA

Checkered Flag Honda Norfolk

800-277-2122 757-687-3453

Dept. Hours: M-Sat 7:30-6 honda.checkeredflag.com

TENNESSEE

Airport Honda

Hall Honda

800-264-4721 865-970-7792

800-482-9606 757-431-4329

Alcoa

Virginia Beach

Dept. Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda.com

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

AutoNation Honda West Knoxville

Valley Honda

Knoxville

800-824-1301 865-218-5461

Dept. Hours: M-F 7:30-6 rossd1@autonation.com

Staunton

800-277-0598 540-213-9016

Dept. Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda.com

VIRGINIA

Radley Acura Falls Church

800-550-5035 703-824-5785

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

8-3 p.com

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with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Making the Most of the ‘Parts’ Portion of Your Business Parts consistently make up 40% of total repair order dollars, so it’s well worth it for shop owners to pay careful attention to the role parts play within their business. This month, I wanted to share the first of two columns outlaying some best practices related to parts I think could improve your shop’s operations and bottom line. Best Practice: Make sure you’re accurately tracking your parts profitability. As almost anyone who has attended one of my classes knows, I’m a big proponent of the value of detailed and dead-on accurate accounting practices and profit and loss statements. That’s where good P&L account and sub-account categories are needed. You shouldn’t just track labor income, for example. “Labor” is one account; the sub-accounts include “body

labor,” “paint labor,” “frame labor,” “mechanical labor,” etc. When it comes to your parts account, I believe you need sub-accounts for OEM parts, aftermarket or non-OEM parts—which may also include accessories—and salvage or

and cavity wax. These are not paint materials. They are parts you put on the vehicle. The old adage of “junk in, junk out” applies in terms of entering parts on estimates and in your shop management and accounting systems.

A “Who Pays for What?” survey last year found that 3 in 10 shops bill the insurer for added labor or materials when a non-OEM part turns out to be unsable

recycled parts. Some people break out remanufactured parts. But one often missed sub-account is “stock parts.” Stock parts include things like seam sealer, double-sided tape, weld-through primer

You might list seam sealer as an aftermarket part on your estimate because there’s not a “stock part” option in that system. But when you transfer that estimate into your management and accounting systems, you need to

Start something special. Our dealership specializes in Honda Genuine parts. When you purchase parts from our dealership, you can rest assured that you are getting the highest quality parts from Honda parts professionals that know your vehicle.

make sure the systems are mapped properly to reclassify that item into the proper sub-account. One of the other common accounting mistakes I see centers around parts price-matching, when you choose to use an OEM part in place of an aftermarket part, for example. When that happens, it’s important that whoever inputs your parts invoices understands how to properly change that to an OEM part within your management and accounting systems. If that doesn’t happen, the accounting system will presume you sold an aftermarket part, but the cost for that part goes into the OEM sub-account. That results in an overstatement of your profit on aftermarket parts, and understates your profit on OEM parts. Best Practice: Know your gross profit

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26 AUGUST 2020 AUTOBODY NEWS / autobodynews.com

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margins on different types of parts. Using your sub-accounts properly will help ensure you have accurate information on your parts profits by type. Most shops I see are making between 20% and 32% gross profit on OEM parts, for example. But keep in mind lots of factors can influence that. Your buying power can result in higher or lower discounts compared to other shops. Your mix of work can play a role; parts profits may be higher or lower depending on whether your repair a lot of domestic vehicles, or a lot of Asian or European import vehicles. Even what part of the country your shop is in can affect discounts and profits. Most shops are making between 30% to 45% gross profit on aftermarket parts. Again, buying power and discounts vary. Given that there aren’t list prices for recycled or salvage parts, most shops are marking up the cost of those parts. Don’t confuse mark-up with gross profit. When a shop marks up a part 20%, it is making a 17% gross profit; when it marks them up 25%, it is making a 20% gross profit.

Most shops find their margins on stock parts are similar to their margins on paint materials. Best Practice: Don’t make parts decisions based solely on gross profit margins. I’m not going to argue here about the merits of using OEM or aftermarket parts. But I will say you should take into consideration factors beyond just gross profit percentages. In some cases, for example, it may take a technician added time to install an aftermarket part. Given the average collision technician generates $100 in gross profits per hour, an added 30 minutes installing a part costs you $50, even aside from any impact on efficiency and cycle time. Can you get remunerated for that added labor? Perhaps. A “Who Pays for What?” survey last year found 29% of shops said they bill the insurer for this labor at the shop’s retail rate, and another 10% said they bill the parts vendor. But 21% said they only billed for this at a discounted labor rate, and another 22% said they most commonly didn’t bill for the labor in such situations.

On the other hand, some could argue the higher profit margin on a less expensive alternative part makes sense if an older vehicle has discontinued parts or is close to being an economic total loss. As you read through some of my other parts best practices, you’ll see other factors—such as the availability of the part, vendor performance and parts ordering efficiency—can play a role in making the best parts decision. Price or discount should not be the only considerations. Best Practice: Consider all the costs associated with ordering of parts. Those of you who have studied and worked to implement “lean principles” within your business know lean is all about eliminating waste. Waste includes the time we spend on things we do for free. I don’t know any shop including a line item on estimates or invoices for “order parts.” That’s work shops do “for free.” So if you’re not getting paid to order parts, would you rather do that two or three or even four times per job—or just once? Making that a reality starts with

100% disassembly of the vehicle to identify every broken, damaged or one-time-use part needed for that job. (I’ll discuss one-time-use parts more in next month’s column.) I also believe shops need to be using an electronic parts ordering solution. It saves time—no one should be waiting on-hold to place a parts order—and improves parts ordering accuracy. It ensures the parts vendor has the VIN, vehicle production date and other information to help them validate the parts ordered match the vehicle being repaired. Some electronic parts ordering systems automatically do this scrub of the parts order and tell you if a part doesn’t match the VIN. That’s a great feature for shops. Next month’s column will offer more best practices related to parts.

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with Stacey Phillips

Tips for Busy Body Shops

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.

with Stacey Phillips

Industry Veterans Erick and Shelly Bickett Share Insight About Collision Industry When industry veteran Erick Bick- in a body shop owned by a couple ett was growing up, he aspired to be of dealerships in Anaheim, CA, and an airline pilot like his dad. He real- eventually purchased the business, Stacey Phillips ized that a 9-to-5with job wasn’t for him. Auto Center Auto Body Inc. Erick always had an interest in We operated out of a 3,500cars and eventually opened a body square-foot facility behind a used shop with his partner, Shelly Bickett, car lot. Three years later, we built a who had a background in accounting. 30,000-square-foot state-of-the-art location at an auto mall where there were a number of dealers in one location. The business eventually bewith Victoria Antonelli came part of Fix Auto USA and grew to include 165 employees at nine locations, spanning over 200,000 square feet and bringing in more than $30 million in annual gross revenues.

My SEMA

Shop Strategies

Product Innovation

with Ed Attanasio Shelly: I never intended to be in the

body shop business. I went to school for accounting and was working at New York Life Insurance. When we Erick and Shelly Bickett bought into the business, I startThat was more than 35 years ago. ed doing the accounting part time. Since then, Erick and Shelly have Eventually, I worked there full time founded a number of organizations in when we purchased the company. with Gary Ledoux the collision repair industry. These inAt the time, most body shop clude Caliber Collision, the Collision managers and owners had grown up Industry Electronic Commerce Asso- in the business and didn’t have financiation (CIECA), Cyncast, Fix Auto cial or accounting experience. Erick USA and the Collision Career Insti- is a great businessman and his finantute (CCI), which supports industry cial expertise helped us a lot and set apprenticeships. us apart from our competitors. with Stacey Phillips Autobody News recently talked How did you both get started to Erick and Shelly about their caHow did your involvement in reer highlights as well as advice to shops on how to be successful in the 20 Groups eventually lead to the forfuture in light of COVID-19 and in- mation of Caliber Collision? dustry changes. Shelly: When we started our first Mike Anderson How did with you both get started business, we became involved in a in the collision repair indus- 20 Group with other like-minded try? individuals. We’ve always found the networking to be very beneficial and Erick: While in college, I took a job it’s a great way to share knowledge driving a tow truck. I eventually and best practices. It also gives you managed the tow company and then the ability to have a bigger footprint transferred to the owner’s body shop. to work with insurance companies. Later, I managed a dealer group. I Otherwise, your body shop is like a also obtained my license to become lone ship on the ocean. an insurance agent. The shop owners would meaEarly on, I realized I could be sure themselves against themselves, competitive in the body shop busi- and we soon realized that we needness. Shelly was a big influencer ed to compare ourselves with other in that decision. I was 28 years old shops nationwide. These measurewhen she convinced me to go out ments and numbers are now called on my own. In 1984, we invested Key Performance Indicators (KPIs.)

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Erick: The formation of the 20 Group started with a group of California shops coming together to talk about the challenges of software we were all using. At that meeting, we realized the benefit of having discussions about business development issues and this led to the formation of our 20 Group. The industry was going through a lot of change and having the association of great operators was really important. When you are all by yourself, you’re not exposed to different viewpoints and other ways of doing things. Through the 20 Group process, we learned that the best form of continuous improvement is posting results and comparing them among the group. We were all active nationally at that time and a group of six business owners decided to form Caliber Collision in 1991.

What role have you played in creating technology for the industry? Erick: It was that learning through the 20 Group that was an incentive to eventually start CynCast in 2000, a technology company serving thousands of collision repair shops that was later sold to Enterprise Rent-A-Car. We built technology predominantly to create transparency around shop performance. In a 20 Group, that’s fairly easy to do because everyone brings in their financials in a common format. Since there wasn’t anything already built for the industry in the late 1990s, we started the Collision Industry Electronic Commerce Association (CIECA), the only industry organization providing standard methods of electronic commerce. Having e-commerce is critically important. The way things are going now with APIs

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(application program interfaces), and how software components and computers interact, it’s all becoming more integrated, leading to efficiencies for the industry. At Cyncast, we built the first Estimate Management Standard (EMS) data pump. EMS was created through CIECA and we used this standard to build the first EMS pump, replicating all information automatically from remote estimating systems. In the 1990s, we created the first Customer Satisfaction Index (CSI) system in the Collision Repair Management System (CRMS) so shops could share data. We also built many web-based claims tools to be used by shops. Shelly: Another concern for shops is the technology in vehicles today. Vehicles may have technical changes from one year to the next. Technicians may think they know how to repair them, but it’s essential they look up and be well-versed in OEM procedures.

What are some of the challenges and growth opportuni-

ties in the industry? Erick: Entrepreneurs are very proud, and at the same time, they are stubborn. In the late ‘80s and early ‘90s, we watched the transition from adjusted claims to DRPs. At that time, there were highly respected industry leaders who dug in their heels, telling other shop owners not to participate in a DRP. We, on the other hand, saw the value and opportunity and leveraged significant growth from these new relationships. Early on, we worked with insurers to help develop their DRP programs. I’m finding that a similar situation is happening right now in regard to OEM certifications. We’ve been talking about OEM certifications within our Fix Auto franchise network, and we strongly feel that shops have to be certified. At the same time, we see people digging their heels in, even at our own shops asking, “What is the ROI?” Shelly and I decided to move ahead with certification, knowing that it would pay off in the future. Some shop owners don’t think it’s important to be certified with all makes and models of vehicles, but what they

don’t understand is that the first level of change will be filters on First Notice of Loss (FNOL.) As an example, that means if you aren’t certified with Nissan, you aren’t going to be repairing Nissans. Shelly: Vehicle technology is advancing rapidly. First and foremost, we need to repair cars correctly according to OEM procedures and ensure we put people back in a safe vehicle. I hope and pray for and believe that OEMs, insurers and body shops will be completely aligned in the correct repairs of vehicles. We’re starting to see that now with insurers directing work to those shops that have OEM certifications; that’s a great thing.

What are some of the effects of COVID-19 on the collision repair industry? Shelly: I think reacting quickly to COVID-19 and making changes was really important. However, I think we’ll see shops go out of business, whether that’s consolidators deciding to close locations or independents who can’t make it through. Even if

they reacted quickly, we’re going through something very significant. In a very short period of time, some shop owners have lost 50% of their business in weeks. Erick: I think it’s all about how shops respond when coming back to the new market. No doubt, it’s going to be very different than what we experienced before. As a result of the pandemic, we took out the duplication in our business and created efficiencies, but unfortunately, we had to lay off 55% of staff. We learned how to do things differently out of necessity and shame on us if we don’t come back differently and go back to doing things the same way. Smart operators are going to take what they’ve learned from this situation and develop a different structure for their businesses. Those who don’t adjust to the business climate are not going to be competitive.

What do you think the future holds for collision repairers?

Erick: One of the things that our expeSee Erick and Shelly Bickett, Page 35

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Diving Into the Fascinating World of Fasteners by Ed Attanasio

How many bumper covers, fender liners and plastic shields are currently sitting in the middle of the road in this country? I would guess thousands, and why are they there? Undoubtedly one of the main reasons is that one or more retainers—aka fasteners, bolts, screws, clips and rivets—failed. Why? Due to fatigue, of course, but in many cases it’s because they were incorrectly installed or the wrong ones were used.

CEO Russ Ramsey is launching a website that will enable shops to make a profit on retainers and make it easy to find the correct hardware for each repair

Since 1988, the people at Blue Vista Data Systems (BVDS) in Las Vegas, NV, have created efficient systems to turn lost money into profits when it comes to clips and fasteners. Every auto body shop on the planet has a plethora of retainers with specific applications, and with more than 700 car models out there containing an average of 30 locations requiring them, it’s a big deal. The company recently launched a new website, bluevistadata.com, containing more than 28,000 retainers, broken down by location, OE designation and cost, complete with diagrams and specs for each. With seven programmers working day and night to get the site clicking like a new Tesla, BVDS launched it July 1. The site lists every retainer and its location, and is designed so anyone can use the system without changing their current distributor. For more than three decades, BVDS has been a pioneer in the development of many of the retainer-related inventory and invoicing systems used today. CEO Russ Ramsey explained retainers are small in size and often

forgotten, but their impact on a shop’s profits can be significant. Things like retainers and other smaller items are often not included in estimates. It’s the old Catch-22—f you invest in too many retainers and they never get used, that’s obviously problematic. But if you don’t have the right ones on hand, that can be even worse, possibly cutting into your cycle time. “We have been in this business for a long time and have helped a lot of shops to make money on retainers, by making it easier to find the right ones and invoicing them correctly,” Ramsey said. “Our website has tackled the problems associated with retainers because with this system, all of the information they need is right there, with photos and drawings and an easy way to track them. “It also enables your shop personnel to find out what they might need from the OE dealer prior to the repair.” Annually, the overall number of OE retainers spike because every time an OE gives a vehicle a facelift or re-engineers it, new fasteners hit the market. If you’re not on top of it, you might be lost, especially if you’re working on a 2021 car, for example. That’s why BVDS developed the most complete and comprehensive system out there to keep track some of the smallest, but most important, parts on any automobile. Kurtis Rosenborough is the owner of Certified Auto Body Center in Las Vegas. He has been purchasing retainers from Ramsey and BVDS for at least 20 years, he said, saving him tons of money and time. “I have used their products and their systems for a long time,” he said. “When cars changed big-time back during the mid-1990s with so much plastic all around, the game changed dramatically. We’re spending approximately $2,000 every month on clips and rivets and couldn’t get reimbursed by the insurance companies until we began using their system. “We never got paid and now we do because our invoices are iron clad, listing exactly what we used and how many of them we installed. It also saves our parts manager time, because he finds the vehicle and all of the retainers are listed. Even some

of our insurance adjustors have used Blue Vista to research all of the hardware required on a particular repair.” Rosenborough’s retainers went from being an expense to becoming a profitable small but important part of his business. “There are so many clips, fasteners and other retainers on the newer vehicles, it’s mind numbing,” he said. “Too many shops think that many retainers are ‘one size fits all’ but that’s not the case. They install a Christmas Tree retainer, which is not ideal for many O.E. and does not meet any of their standards. Why would you spend hours and hours doing a great repair on a vehicle and then install the wrong or poor-quality parts?” Body Shop Manager Mike Giovengo at Friendly Ford in Las Vegas has known Ramsey for decades, and praises him as “the Man” when it comes to the world of retainers. His shop ponies up more than $18,000 retainers annually, many of which are rivets for the aluminum F150s. Getting paid for them in

the past required a little dance with his insurance companies, but now Giovengo waltzes right through and gets paid. “When it comes to things like retainers, you won’t get reimbursed unless you ask for them up front,” he said. “A lot of shops don’t keep that in mind, so when they are rushing around to finish the repair, they realize they need a few clips or rivets, for example. They just want to get the car done, so they install the retainers and eat the cost. “The numbers really can add up. We fix roughly 1,200 vehicles every month, so if every car requires $8 to $40 in retainers, that equals between $9,600 to $48,000 annually. So, Russ and BVD have helped us to get them into our repairs more easily with specific and accurate information to document the cost.” For shops who want to subscribe and use the system, the cost is $40 to $55 monthly, and there are a series of short videos to train parts managers, technicians and estimators how to use it.

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SEMA Show Goes On with Ed Attanasio

Media and Publicity for Shops with Ed Attanasio

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

Will COVID-19 Change Your Marketing and Advertising Plans Forever? A friend of mine who owns a body that is even more evident now. shop always swore marketing and We all know by now the COadvertising were a waste of time VID-19 global pandemic is going to withhe’s Stacey and money, but now singingPhillips the change our lives forever, and the way blues. body shops operate as well. It is alrea When things are going well and dy causing body shops to reevaluate the cars are coming through the doors, their thinking about current and future many shop owners never even think advertising and marketing campaigns about marketing and advertising—unStacey Phillips til now. If you’rewith currently doing half your normal volume and walking around in a haze, I could say “I told you so,” but that’s not how I roll. With most shops reporting a 50% drop in business since mid-March, shops that neverwith thought marketing Stacey Phillips was essential are sitting around scared and unprepared. This is why I’ve always said marketing is not a “start and stop” thing. It should always be idling in to accommodate social distancing and the background and tailored based on work-from-home protocols initiated with Phillips to combat COVID-19. car counts and the timeStacey of the year, but to do zero marketing is a mistake How does the future look for

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began tailoring their advertising to accommodate these indeterminate several months. With fewer people in their vehicles, some shops decided to nix things like radio advertising— both satellite and terrestrial—outdoor advertising—billboards, bus boards and other signage—and some mobile apps that target drivers in their cars. Shops are now heavily pushing things like pickup/drop-off services, free car washes for customers and photo estimates, as well as safety protocols for customers and their employees. One thing that has changed dramatically during stay-in-place orders is companies have realized letting their employees work at home is not a bad thing. In fact, many businesses have found out people working virtually are even more productive. Some large high-tech companies such as Oracle, Facebook and Apple

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have asked their employees to work virtually with no immediate plans to change the plan. So, how do body shops get their marketing messages to those people who are in their homes 90% of the day? Industry author, speaker and consultant John Stuef has held literally every position in a body shop. He entered the industry as a painter’s helper and then became a painter, a body man, manager and then owner. For many years, he owned several successful shops, and currently he’s a regional manager for a large MSO. Two things Stuef has been doing since he bought his first shop involve getting out there in the public and hitting the streets for business. “There will obviously be a lot less business out there until this thing is definitively over, which won’t truly happen until we have a vaccine that actually works,” he said. “Advertising isn’t going to get you what you need fast enough, plus it’s too expensive, especially when your marketing budget is temporarily limited.” So, Stuef is suggesting a few things to do that might bring you some faster results.

The old adage is advertising is buying exposure while marketing is earning it. “Tapping into proven sources of revenue is the best way to operate during these unprecedented times, especially when time and money are limited,” he said. “Whenever we wanted to create some new business, we went back to what always worked, like visiting dealerships and insurance offices. “There is no silver bullet, but actually getting in front of people and interaction have always been effective for us. You can’t imagine the power of free pens and doughnuts.” Stuef and many other shop owners, managers and marketing people are looking at how COVID-19 will affect consumer buying habits and the collision repair industry. “It’s all about short term decision-making right now and those shops that will be able to pivot quickly will have a distinct advantage,” Stuef said. “With so many uncertainties out there to deal with in both our professional and personal lives, a shop’s marketing should stress safety, comfort and trust more than ever.”

Angel Iraola at Net Business Consulting and Solutions in Oakland, CA, is currently performing marketing triage for a wide range of small businesses during the pandemic. “With the economy taking a major hit, consumer behavior is likely to change dramatically through the end of the year and well into the first quarter of 2021,” he said. “For those with less disposable income, or considering retirement, this economic slump might result in a sharp decline to their spending habits. “Right now, consumers are wisely taking a ‘wait and see’ approach, so body shops should consider their target audience and how their lives will change as a result of the current economic climate. It’s a whole new ballgame and only those who will adapt quickly will survive.”

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Erick and Shelly Bickett riences have resulted in is that we’ve been able to predict what’s going to happen. We are going through more dramatic change, danger and opportunity than ever seen in our industry before. I think the future of the entrepreneurial collision shop is going to be dictated by how repairers respond to the changes coming. Independent collision shops owners add a ton of value and can survive if they work together and take the necessary actions to respond to market needs. At the same time, they need to remain competitive and look for efficiencies while removing duplication and waste in their businesses. If independent shops don’t do these things, they’ll likely become extinct. The full article is available online and includes information from Erick and Shelly about what prompted them to sell ACAB Automotive Group and Fix Auto USA to Driven Brands.

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Continued from Cover

Serve Through Pandemic Roland Chartier. “Then we extended credit from net 30 to net 60 for our large customers. “The only change we made to our delivery service was to give all drivers face masks, gloves and supplies to sanitize their vans. Customers were no longer required to sign for delivered parts. The drivers asked for names and noted them on the route/ delivery sheets. We had some of our larger accounts order large stock orders just in case the supply chain was interrupted,” Chartier continued. “When other dealers cut staff or service to customers, we would have our outside sales people work those areas extra hard calling shops and letting them know we were servicing the area. We were able to pick up a few new shops with this tactic. It was hard work and a little luck.” In March, April and May, was your wholesale mechanical business (primarily mechanical repair parts sold to tune-up shops, brake shops and general repair shops) up or down and by what percent? Once again, all except three dealers noted their wholesale mechanical business was down. The smallest decline was 5% and the largest 80%, with an average decline of 39%. One of the three “up” dealers was, again, Richmond Ford Lincoln. The other two were unavailable for comment. Have you had to furlough any parts department personnel and if so, who? Sixty-six percent of respondents said they had to furlough at least one person in their parts department. Some had to let multiple people go. This included 13% who furloughed road sales people and 31% who furloughed stock clerks. Those hit the hardest were delivery drivers, with a 47% furlough rate, and counter people, with a 53% furlough rate; 38% of respondents dismissed both a driver and a counter person. One parts manager noted they cut hours but kept the same number of drivers. Have you altered your parts delivery service and if so, how? This was fairly evenly divided, with 49% saying yes and 51% say-

ing no. Fortunately, for body shops, none of our respondents said they completely stopped delivering. Seventy-eight percent of those who made a change chose to limit the number of delivery runs made per day. A few chose to limit deliveries only to select accounts, one limited delivery by mileage and one limited delivery by dollar value of the order. One VW dealer in northern California noted, “We were allotted one

extra time? Parts department personnel have been using the time to clean up their physical department, check bin counts to ensure inventory accuracy, painting, erecting new shelves and general reorganizing. Some used the time for training. Some updated account information. And some parts managers said with furloughed employees, there was no free time—those that remained were just as busy as before.

“We took our outside salespeople off the road and had them working the phones five or six hours a day contacting customers to see who was open and who was not and if there was anything we could do to help them out,” — Roland Chartier driver and told to make do.” Several dealers said customers were picking up parts at the dealerships in lieu of a reduced delivery capacity. Some dealers used Uber or a taxi service. How have your customers responded to changes in delivery policies? Overall, respondents noted shops understood the situation and were very accepting that business changes were necessary at the dealer level. One Honda parts manager said that because the shops were operating at reduced capacity, they did not deliver after 2 p.m., and most shops seemed to be OK with that. A parts manager at a California Acura dealer said the shops were just happy the dealership was still open and they were able to pick up parts as needed. How much trouble have you had getting parts from your primary OE brand during the height of the pandemic? Respondents said those OEs with the best fill rate during this time were, in no particular order, Honda, Toyota, Nissan, Hyundai, Kia, Mercedes-Benz and BMW. However, the degree to which other OEs may have had trouble fulfilling dealer orders may or may not have been caused by the pandemic. Civil unrest or other factors outside the control of the OE may have played a factor. Also, parts manager answers may have been influenced by a particular order or two or a particular part or type of part that may have been temporarily unavailable. Assuming your business has been slow, how have you used the

Already, people have started driving again and business have started reopening. In view of the events of the past few months, how do you view the future of your parts dept? ▪ 33% said: “It will return to its pre-virus levels but will take several months. I expect to rehire my furloughed people eventually.” ▪ 27% said: “I plan to retain some of

the changes we made during the pandemic and there will be a ‘new normal.’” ▪ 22% said: “My parts business has changed little over the past few months. I expect to continue on business as usual.” ▪ 18% said: “It will return to its pre-virus levels in a fairly short amount of time. I expect to rehire my furloughed people fairly soon.” One GM dealer in Michigan said, “We are already back to normal. All employees have already returned.” Do you foresee any long-term negative effects from the pandemic and if so, what? Twenty-seven percent of respondents said yes, while 73% said no. Several of those that said yes said it will take a long time for people who have been out of work to recover. A parts manager at a West Coast Mercedes-Bens dealer noted, “I think this will be an ongoing, seasonal issue for a few seasons/years. The collision business will take on the majority of the decline each time.” An unidentified parts manager See Serve Through Pandemic, Page 44

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autobodynews.com / AUGUST 2020 AUTOBODY NEWS 37

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while he spends more time in the office getting supplements handled, “to keep cash flow up and make sure all the bills are paid and we still make money.” At Zara’s Collision Center, in Springfield, IL, “We are upholding our commitment to bringing new talent into our industry by hiring full-time a recent high school graduate who had completed a semester-long internship during the pandemic,” shop owner Brad Zara said. “We have also brought on another recent graduate for a summer internship even though business is down.” Adam Reiter of Golden’s Paint & Body Shop in Hot Springs, AR, said the shop has continued to spend all reimbursement the shop has received for added “COVID-19 cleaning” of vehicles to buy gift cards for local businesses through a chamZara’s Collision Center, in Springfield, IL, is trying to use ber of commerce program that clever messages in its social media to let people know also matches the funds to buy how the shop is continuing to safely serve them during groceries for displaced workthe pandemic ers.“Five thousand dollars has Iowa is letting the shop’s other techni- been raised by our shop,” Reiter said. cians do more of the production work “The gift cards will be used as prizes minimum salary equivalent to four days of work, and isn’t requiring them to work more than four days a week. A working manager at a shop in

Continued from Cover

Taking Action lision 1 in Des Moines, IA, offered a “pay it forward” campaign in which each of the shop’s customers in May and June received a $25 gift certificate to a local restaurant, and could designate a charity to receive a $50 donation from the shop. “We’re offering employees later start times so they can help with family or household needs,” the owner of a Chicago area shop said. “We’re offering them four 10-hour days, if that helps, and with that, we’re actually seeing more customer volume in the evening hours.” Auto Craft Collision Center in Kewaskum, WI, extended through June a 10% discount, up to $250, it began offering customers earlier this spring. Carney Cataldo of Cataldo’s Collision in Dubois, PA, gave all employees a $1,000 bonus. A shop in the Pacific Northwest supplemented its painters’ wages to help ease the downturn in flat-rate hours, and an Arizona shop has given commission employees a guaranteed

for customers and bonuses for employees.” Shifts in marketing Zara and Reiter are also among the shops reporting a variety of changes in their marketing efforts given what’s happening in their area. Reiter said he brought in a film crew to shoot a new television ad after the shop was “deeply cleaned and completely repainted.” “We have been utilizing clever messages on our Facebook page to let people know that we are continuing to safely serve them throughout the pandemic,” Zara said. Todd Doyle of Arrowhead Auto Body in Hermantown, MN, has taken a different approach. “We had changed our radio and TV ads to COVID-related topics, telling customers that we are open and how we are cleaning for their safety,” Doyle said. “But we have changed back all our advertising to our normal ads because I’m personally sick of all the ads talking about COVID.” John Naylor, an estimator and manager at Heritage Collision Center in Sherman, TX, said the shop has stepped up efforts to encourage and

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thank customers for posting online reviews. Josh Smith, operations manager at Collision Specialists in Jackson, TN, said although the shop doesn’t like photo-based estimates, it is doing some as a selling tool. One California shop owner said he is contacting more mechanical repair shops to exchange customer referrals. Another said she has made sure all her employees “have business cards and are encouraged to hand them out.” The direct repair coordinator at a two-shop collision repair business in Pennsylvania said he’s getting more involved with several community Facebook pages. “Believe it or not, it helps immensely,” he said. Mask policies vary Among more than 200 shops responding to a survey in June, about 30% were requiring customers to wear masks to enter the shop office. “The door is locked; people have to ring a bell before they come in—with a mask,” Bill McElroy of Bill McElroy Auto Body in Bensalem, PA, said. Many shops said they are leaving it up to the customer to decide.

“Whatever they are comfortable with. Some do, some don’t,” said Candace Dietzen, owner of The Body Shop of Barrington in Lake Barrington, IL. “We have masks available for customers upon request,” said Tyler Perkins, collision center manager at Ford of Clermont in Florida. “My employees have to wear masks whenever a customer enters,” a Georgia shop owner said. But policies regarding masks appear to be in flux from shop to shop; several shops said they had been requiring customers to wear a mask earlier, but stopped at some point in June. A shop owner in Oregon said he hadn’t been requiring it, but would if state policy called for it—something that went into effect in late June. And the percentage requiring masks for customers is somewhat under-reported because at least 10% of those saying they don’t require a mask also said such a policy isn’t needed because customers aren’t being allowed inside. “No one enters our building. We meet them in the parking lot in full PPE gear,” said Mike Kime of Kime Collision in Standish, MI.

Think Genuine Subaru Parts.

Continued from Page 14

Positive Trends decline on state Route 315 in Columbus, OH, and only a 6% decline on I-85 in Charlotte, NC. Demand for gasoline, as measured by how much was being delivered to retail stations around the country, also has rebounded to close to “normal.” Back in April, according to the U.S. Energy Information Administration, gas deliveries had tumbled by 47% compared a year earlier. But by the last two weeks of June, the amount of gasoline being delivered was just 10% below what it was during the same period last year. Some shops point to help from insurers A poll of shops in the second half of June asked shops if they have been offered any assistance from insurance companies to help their business during the pandemic. A large majority said no. “Just the opposite. Most insurers are auditing more files and becoming very nitpicky,” a shop owner in Hawaii said. “They just want you to cover

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rental even when the pandemic caused parts delays,” a shop in Northern California commented. But at least one in four shops said they could point to something helpful insurers were doing. Those included shops saying they were being paid for the added labor for “COVID-19 cleaning” of vehicles. Shops on Progressive’s direct repair program also said the company has followed through on its pledge in mid-April to share with those shops more than $2 million of the money the company was saving from the drop in claims Progressive and other insurers were experiencing. “Progressive gave us $1,000 to help with the reduction in work,” one Florida shop reported, a dollar figure that was confirmed by more than a half-dozen other Progressive direct repair shops. A shop owner in Hawaii said GEICO had increased shop labor rates, and shops on USAA’s direct repair program in Oregon and Illinois reported the insurer suspended the performance-based bottom line discount the shops are required to give that insurer.

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autobodynews.com / AUGUST 2020 AUTOBODY NEWS 39

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3M Shows Support of Collision Repair Industry During Pandemic by Stacey Phillips

When reports were first coming from China in early January regarding the coronavirus, Dave Gunderson, vice president of 3M’s Automotive Aftermarket Division (AAD), said the company saw the writing on the wall. Having been through previous pandemics, such as SARs, 3M executives realized the need to take action. “Every day at 3M, we think about improving lives,” said Gunderson. “Those of us working in the automotive aftermarket have been thinking about ways to support collision repairers during the pandemic.” Operating in more than 240 countries, the company manufactures and sells 52,000 different products and has more than 96,000 employees. Autobody News recently talked to Gunderson about the state of the industry during COVID-19 and what 3M has been doing over these past few months to show its support. “We realized that we needed a new operating rhythm and it had to be simple, yet effective,” said Gunderson. “It came down to three overarching guidelines: people, prioritization and rebound.”

How has 3M protected people during the COVID-19 restrictions?

First and foremost, the top priority is to make sure that our teams and customers are staying safe. We have stay informed about the guidelines from the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO). We took action to limit any exposure and ensure our teams have the right measures in place. We also converted all of our support to be handled remotely. Customer support is key for us, but we need to do it in the safest possible way. Since June 4, we started bringing 3M employees back to the 3M Center campus who aren’t able to physically do their jobs from home. We also created new rules and training for employees. For anyone who travels and meets with customers, we’re going through

another level of training to ensure em- the industry and we have more than ployees know how to properly use a 25 on-demand classes for techs. We respirator or face covering. It’s called also host one-hour “how-to” webifit testing. Sometimes, you see peo- nars multiple times per week and ple with a face covering over their post them on YouTube. The sessions focus on a deeper undermouths but not their noses. standing of body shop proThat’s not effective or the proper way to wear a face cesses and procedures. covering. If you wear a resI don’t think we’ll ever pirator, it’s essential that it replace the need for physical fits correctly. If you have a training at our internal cenbeard, a respirator will not ters, but we’ve found that fit properly because the air Dave Gunderson, you can do a lot of training vice president of can come around the sides. online. 3M’s Automotive In our industry, it’s not just We also launched an appliAftermarket Division important during COVID-19. cation, “Ask Me Anything,” (AAD) where technicians can reach If you are working with any industrial application, certain respi- out to 3M on the fly and have a comrators are required. We are reinforc- pany representative answer questions ing that with employees. in a timely manner. From a customer standpoint, we’re learning how to reengage and What are some of the most “ask before going.” In the past, 3M significant changes you’ve representatives stopped by multiple seen over the last few months? body shops on their regular routes. As the economy is openThat has changed since COVID-19. ing back up across the U.S., Now, we call first and ask how the shop owners and managers want to we’re seeing the return of miles be served. We’re finding that some driven faster than we were expectrequest training over the phone while others prefer someone to come in person. Rather than showing up and assuming that’s OK, we are asking their preference. Our customers are very appreciative of this.

In terms of prioritization, what prompted 3M to focus on training, and what training is available?

Early on, we confronted the reality that we can’t do it all. Purposeful prioritization is more important than ever before and has been based on customer needs. We heard from the market about the need for training and have worked very hard to accelerate hands-on training. With the COVID-19 situation, we pivoted our strategy and amplified and stepped up our education, especially in the area of virtual training. In the past, technicians typically went online at night after work. Our goal is to help technicians sharpen their skills and support shop owners while they prepare for an economic rebound. We launched our 3M online platform in 2018. In March, we introduced a webinar series for

ing. People are getting out and starting to drive. I think that’s good news and an encouraging sign for our industry. Depending on the part of country, miles driven are about 75% to 85% of what they were pre-COVID and are continuing to increase. The RV industry is also recovering quite well, and sales are up. If you think about how people are using their cars, that’s changing. We’re still going to birthday parties, but we have drive-by birthday parties. We’re going to church, but staying in our cars. In the 1950s, people looked forward to going to a drive-in movie or restaurant. Using the car was passion-driven. Today, and especially with the COVID-19 situation, cars are becoming our safe haven. Recent surveys show that people are going to be driving more after the pandemic and avoiding the use of mass transit and shared mobility due to hygiene concerns. When we think about getting into someone else’s car, we’re not sure if it has been sanitized.

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However, we have comfort in knowing that our cars have been cleaned. Another reason is due to congestion. For many years, there was a big push to use mass transit to reduce consumption. But now the question is becoming: do you want to be safe or worry about causing congestion? All of this is positive for the collision repair industry. We need to continue watching these trends closely and prepare for the future. I understand that sometimes it feels like it is going to take forever. But if you look back in history, I think the auto aftermarket recovers much faster than other sectors. Peo-

ple don’t need to buy anything; they just get back in their cars and begin to drive.

How is 3M supporting the industry as it gets ready to ramp up again?

It is important for us to track the market and be ready for the rebound. We want to make sure that we have the right products available and the support the industry needs to service customers. Prior to COVID-19, 3M was always committed to balanced distribution of respirators to our existing industrial, retail and health care customers. In this unprecedented crisis, 3M is directing a substantial majority of the respirators we produce to our heroic and courageous health care workers and first responders, followed by critical national infrastructure during the pandemic. 3M is also going to be 3M is directing a majority of respirators produced to health launching two new prodcare workers and first responders, followed by critical national infrastructure ucts for sanitization over the

If we can help assure customers that their cars will come back safe, clean and sanitized, then consumer confidence will help drive additional repairs. We’re a trusted leader in this industry and work hard to serve the needs of customers. For the automotive aftermarket division, our strategy and vision are to create the future of care and repair with our customers and industry partners. We’re in the industry for the long-term and want everyone to know that we’re in this together. 3M’s global headquarters is located in Saint Paul, MN next couple of months. They have been thoroughly tested to ensure they are safe to use on automotive interiors. When developing the products, we took into account efficiency and productivity in the shop because we

understand that every minute counts during a repair and want to create the most value for our market. Since safety and sanitization is top of mind right now, we have detailed information on our website showing examples of how to use sanitizer on a vehicle based on information from the CDC. You would think it’s intuitive, but for some of these chemicals to work, they have to saturate or stay wet for a certain amount of time.

For more information about 3M’s training resources, visit: https:// www.3m.com/3M/en_US/learningmarketplace/automotive-academy/ collision-repair/.

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Contin

Continued from Page 22

Corrosion Protection

al primer, high build primer and/or a primer surfacer. (Fig. 6) Let’s look at what the OEMs

primers. Toyota wants zinc-rich weld through primers on all mating surface. Honda states you will use weld through primer on all mating surfaces that will

Fig. 6, 2K Direct to Metal Primer

Fig. 5, Weld Through Primers

be spot welded, but no WTP when MIG plug welding. Fiat Chrysler states it does not want weld through primer used on its vehicles. 2K Direct to Metal Primer This primer is a two-part direct to metal system. It is the closet product to factory applied electrodeposition primer. It can be used as a bare met-

Fig. 7

state about epoxy primer. Toyota and Honda want a coat of epoxy primer applied to all bare metal surfaces before body filler, adhesives, urethane primers and seal sealers are put on. Honda says that the EP can be applied with a spray gun, roller, foam brush or a dobber. (Fig. 7) Nissan, Ford, GM, Audi and Mercedes-Benz recommend the use of epoxy primer to all bonding surfaces prior to the application of adhesives. Self-etching primers (Fig. 8a) are used on bare metals. The primer contains phosphoric acid and should not be used where glass adhesives are applied. If the acid is not totally cured or a seal coat is not applied, an adhesion failure will most likely occur. The same scenario applies to body fillers and seam sealers. The next sets of primers are colored self-etching primers (Fig. 8b). These primers are used on interior sheet metals that are different colors than the exterior of the vehicle. The same rules that are applied to regular self-etching primers pertains to these primers. Cavity wax (Fig 9) is a semi hardening or a hardening material that will

“creep” into seams, folds and hems to seal off the parts from moisture and

Fig. 8a

Fig. 8b

air. This product is applied after the vehicle has been painted because paint will not stick to it. Toyota says in CRIB 1997 it will

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be applied to the inside of new doors, hinges, quarter panels, rails, front hood hems and rear deck lid hems. Undercoatings (Fig 10) are applied to the underside of a vehicle to provide protection from the various road hazards, such as rocks. It also

acts as a sound deadener. You may have to make a test panel (non-included item) to determine the number of coats of material needed to match existing undercoatings. Stone guard or chip guard is applied to areas such as the bottom of

Fig. 9

Fig. 11

Fig. 10

door skins, rocker panels and quarter panels prior to reﬁnishing. Honda and Toyota state in the repair manuals the collision repair facility needs to make sure the application will be the same texture as the OEM applied materials. In other words, you will need to make test panels and that is a non-included operation. We will discuss more corrosion protection products next month.

Most Expensive States for Car Insurance in 2020 by Denny Jacob, PropertyCasualty360

In a country as large and diverse as the U.S., each state offers a range of pros and cons across a number of aspects. Whether it’s the cost of being a homeowner, the proximity to nature or their state and local tax rates, there is something for everyone. While it might not be the first factor someone might tout when talking about their state, the cost of car insurance is an important quality for many. An analysis by Insure.com found that the average cost of car insurance in 16 states is more than $100 above the national average, which came in at $1,517 this year. What state an insured lives in is a significant factor when determining the cost of car insurance, but insurers also consider gender, age, the vehicle and credit score. State-specific factors like insurance laws, claim and crime rates, and the number of uninsured drivers can influence the premium as well.

Whether you live in an expensive state or a cheap state, Insure.com says to shop at least three insurers and “always make sure you’re comparing apples to apples when it comes to coverage levels and deductibles.” And when buying a new car, it’s always wise to shop for insurance as you look for the car so the premium won’t tear through your budget. Insure.com commissioned Quadrant Information Services to calculate auto insurance rates from six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm) in 10 ZIP codes per state. It averaged rates in each state for the cheapest-to-insure 2020 model-year versions of America’s 20 best-selling vehicles as of January and ranked each state by that average. With this in mind, explore the slideshow to see Insure.com’s list of the most expensive states for car insurance in 2020. We thank PropertyCasualty360 for reprint permission.

Continued from Page 36

Serve Through Pandemic from an East Coast Toyota dealership said, “We will see a new way of doing business; COD only—no charges.” Finally, an Acura parts manager said the last four months had really “put the icing on the cake.” He noted that paying for such computer programs such as CCC, Parts Trader and OPS Trax have added thousands of dollars per month to their operating costs. That, combined with other wholesale costs and a steep downturn in business, has simply made the wholesale business untenable. But rising wholesale business costs and declining proﬁts for dealers has been an issue for 40 years or more. Fortunately for the collision and mechanical repair shops, auto dealers, being as creative and resilient as they are, always seem to ﬁnd a way to mitigate these business issues and keep serving the automotive aftermarket repair industry.

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Industry Legend Dick Schoonover Dies Dick Schoonover, of Woodbury, Little Lakes-Little League and MN, who grew his family auto body Lake Region Youth Hockey. shop into a nationally-recognized He was a student of the game company while helping to advance and he shared his competitive spirthe collision repair indusit with all who played for try as a whole, died July 9, him. 2020. He was 84. In addition to his love Dick graduated from for family, Dick loved the Murray High School in family business. In 1973, 1955, where he had played he moved Schoonover football, basketball and Auto Rebuild to Shorevbaseball, earning a letter iew. Dick was an innovain all three sports over four Dick Schoonover tor and was always two years. That was also where steps ahead of the comhe met the love of his life, Beryl. petition. He set the bar high for Dick and Beryl were married customer service and quality and in 1956 and started their family in made sure his employees had the St. Paul, MN. Dick went to work best tools, equipment and training for his dad, Chuck, at the family available. During his leadership, business, Schoonover Auto Re- he grew the company to a nationbuild. Dick took it over in the mid ally recognized repair facility. ‘60s after Chuck’s early passing. Dick was involved in the Dick and Beryl built a home collision repair industry, serving in Shoreview, MN, and raised on many boards and committees their three sons. Dick balanced at the state and national level for small business ownership with ASA, ASC, I-CAR and others. family time. He encouraged the Dick helped develop legislation, boys to be active in sports and rules and procedures granting helped them develop a love of the rights to consumers and leveling game, especially hockey. Over the the playing field with auto insuryears, Dick coached Legion ball, ers.

In his spare time, Dick gave back to the community that meant so much to him. Besides coaching youth sports, he served on the Northwest YMCA board, was a Roseville Rotarian and sponsored many youth teams year after year. He and Beryl enjoyed golfing and were members of Midland Hills and Indian Hills Golf clubs. He was an avid reader and would read anything related to news, politics and business. He also loved cars and shared that love with his sons. Dick was a man of many talents: businessman, entrepreneur, visionary, mentor, coach. Most importantly, he was a loving man who would do anything for his family. His drive for excellence, integrity, hard work and dedication proved anything could be achieved, and any obstacle could be overcome. He often used the phrase “tough mustang” to encourage family members. With Beryl, his wife of 64 years, at his side, Dick passed away at home. In addition to his wife, Dick is survived by sons Jeff (London Savant), Scott and Mike (Gayle); grandchildren Alyssa, Lindsay

(Ben), Courtney, Abby (Drew), Anna and Matthew; great-grandchildren Jaxon, Maddox, Keegan and Josie; sister Jodie Roche (Michael) and nephew Ronan (Rebecca). He was preceded in death by grandson Patrick. The Schoonover family would like to thank the caregivers from St. Therese and CareAparent, who provided comfort, care, companionship and support while Dick was in hospice. A memorial services will be held at a later date. Memorials preferred to Patrick Schoonover Heart Foundation, www.playforpatrick.org, or King of Kings Lutheran Church, Woodbury, www.kingofkingswoodbury. org. Source: Tribute Archive

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CAR Coalition Urges Data Control

Tesla Battery Day Gets a Concrete Date

The Consumer Access to Repair (CAR) Coalition recently sent a letter to members of the U.S. House of Representatives’ Committee on Energy and Commerce, speaking out against a previous request on behalf of auto manufacturers opposing consumers’ choice over the use of the data generated by telematics in their vehicles. According to the CAR Coalition, limiting that choice is driving out repair competition, while the consumer cost of auto repair has risen dramatically. The previous request, in a letter to the same committee sent by the Alliance for Automotive Innovation on behalf of auto manufacturers, called for a fiveyear federal preemption of any state action regarding access to telematics data. The CAR Coaltion said such a move which would only strengthen the manufacturers’ developing monopoly of the automotive collision repair chain. Source: CAR Coalition

by Simon Alvarez, Teslarati

It turns out the long wait for Tesla’s highly-anticipated Battery Day event will be a bit longer, but it will certainly be well worth the wait. In a recent announcement on Twitter, Tesla CEO Elon Musk stated the tentative date for Battery Day will be Sept. 15. But that’s not all, as the event will be held along with the Annual Shareholder Meeting. Musk posted the announcement this weekend, later adding the event will be held in Fremont, CA. Musk noted Battery Day will include a tour of Tesla’s cell production system, among other things. Considering the location of the event, it appears Tesla may be bringing investors to its secret and rumored skunkworks lab located at the company’s Kato Road facility, just a few minutes away from the Fremont plant. Speculations are abounding about what Tesla would reveal in its Battery Day event. The last time Tesla held a similar event was Autonomy Day in April 2019, and that included a deep dive and discussion

of the company’s custom Hardware 3 chip. Everything about HW3, from its design to its performance, was discussed intensively. This same amount of attention to detail is expected for Battery Day.

In classic Elon Musk fashion, Battery Day has experienced some delays, a lot of it due to the coronavirus pandemic. If Musk’s recent Twitter announcement is any indication, this delay is due, at least in part, to the fact the company seems determined to show its shareholders what its battery cell technology is like firsthand. And considering how impressive Tesla’s batteries already are today, it’s pretty exciting to see what the company has in store for the future. Previous reports point to Tesla

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discussing its next-generation battery cells at Battery Day. These cells are rumored to be capable of lasting a million miles if used in electric vehicles, and decades if deployed as battery storage devices. If Tesla does discuss cells that match these speculations, then the entire electric vehicle industry—and the shift to sustainability as a whole—will likely change forever. Among the remaining roadblocks for widespread EV adoption are the limitations of the current generations of batteries. Batteries today are capable in their own right, but they are still more expensive compared to a traditional internal combustion engine. Tesla’s rumored million-mile batteries are expected to reach, and perhaps even go beyond, price parity with gas-powered cars. By doing so, Tesla would be able to accelerate the EV transition even more. We thank Teslarati for reprint permission.

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