August 2021 Southeast Edition by Autobody News

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SEMA Intensifies Advocacy Efforts, Connects with Congressional Reps from Washington, D.C. by Juan Torres

SEMA representatives escalated their advocacy efforts by taking part in nearly 100 meetings with Republican and Democratic lawmakers from Capitol Hill during June and July. As part of the virtual 2021 SEMA Washington Rally, more than 60 SEMA-member companies joined SEMA staff in a record-high number of meetings with officials from the U.S. House of Representatives and Senate. Discussions focused on top industry issues, chal-

lenges and concerns, chief among them passage of the Recognizing the Protection of Motorsports (RPM) Act. SEMA members also spoke with federal lawmakers in opposition to electric vehicle mandates while voicing support for increased federal investments in roads and bridges, protecting motorized offroad recreational access, tax credits for businesses participating in trade shows and ensuring aftermarket businesses can market products that are interoperable with vehicles that See SEMA Intensifies Advocacy, Page 14

Nationwide Study Highlights Post-Pandemic Insights for the Automotive Aftermarket While automotive aftermarket companies, suppliers, distributors and industry professionals all try to discern their path forward in a quickly evolving landscape, a newly released study shows U.S. adults plan to drive more overall post-pandemic. “Post-pandemic” for this study is described as when vaccines are widely distributed. This could mean significant industry growth in the near future. The nationwide study, published by global market research firm The Martec Group, documents on average a 17% increase in overall vehicle

miles traveled (VMT) post-pandemic. Across all categories―household and business―respondents expect to drive more post-pandemic than before the COVID-19 pandemic. Reasons for the increase include pent-up demand for travel and activities; additionally, many people moved during the pandemic, with more than one-third moving farther away from work. “As we’ve seen through our own research and in multiple other studies, the shift to remote work is See Nationwide Study, Page 20

39 YEARS

AUTOBODYNEWS.COM Vol. 12 / Issue 6 / August 2021

GM Promises to Leave No One Behind as it Moves to an All-Electric Future by Jamie L. LaReau, Detroit Free Press

General Motors says it wants to make sure all of its customers and its employees are included in its transition to an all-electric car company. On June 29, GM CEO Mary Barra made several promises to achieve that goal, including announcing the creation of a $25 million Climate Equity Fund. By equity, that means no one is left behind as GM transforms the company. The idea is that all people have access to electrification regardless of socioeconomic status, race or

other situations. It means that electrification will benefit society, said Jessica James, a GM spokeswoman. “Climate change does not impact every community equally,” Barra said at the Aspen Ideas Festival. “As we move to an all-electric, zero-emissions future, it is on us to lead positive change and implement inclusive solutions that bring everyone along, especially our employees and communities.” The new fund will be used to support programs that help people See All-Electric Future, Page 16

Predicting What the Collision Repair Industry Will Look Like in 2035 by John Yoswick

Where will the collision repair industry be in 2035? That daunting question was tackled this spring by the Future Disruptions Committee at the Collision Industry Conference (CIC). As the panel discussion began, Sean Carey of SCG Management Consultants pointed to a weakness in the exercise itself. “Rather than take yourself forward 14 years, take yourself back 14 years,” Carey suggested. Think about comparing a 14-year-old Honda Accord to a current Honda Accord, he said: the differences in the vehicle itself, in the repair procedures used, in how estimating is done and how the entire claim is settled. “It was vastly different from where we are today, and in 14 years it will be vastly different again,” Carey said. “It’s not always easy to conceive what’s going to happen in the future. We’re guessing at best.” With that preface, Carey said

he foresees “mass consolidation” in the industry, with the formation of at least one cross-functional entity that includes an insurance company, technology companies and a large repairer group―its “own ecosystem.” “From a moment that vehicle is in an incident, this organization, under one single ownership, takes care of everything,” Carey said. “Data is going to make that very, very possible.” Direct repair and OEM certified shop networks will give way to licensed shops, each “capable of repairing only particular types of vehicles,” he said. “This mainstream, ‘bring it all in on Monday, we’ll ship it all out by Friday,’ will be a thing of the past. [Vehicles] will not be allowed to go to an unlicensed shop.” There will be far fewer vehicle repairs, but what there are will be very costly, he predicted. “Severity will climb through the roof,” he said. “Severity today will seem laughable. Think tens of thouSee Look Like in 2035, Page 12

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REGIONAL Fight Over Documents in AGA vs. Allstate Case Spills Over into Allstate vs. AGA Case ��6 Florida Governor Cites ‘Unintended Consequences’ in Veto of Auto Insurance Bill ��8 Georgia’s Traffic Congestion Among Worst in U.S. ��8 Gerber Collision & Glass Acquires 16 Repair Centers in South Carolina and Georgia ��10 Oshkosh Selects Spartanburg, SC, to Build Next Generation Postal Delivery Fleet ��10 The Boring Company Proposes Underground Loop for Fort Lauderdale ��12 Volvo Cars Invests $118M in Electrified Vehicle Production in SC ��10

Semiconductor Shortage ��46 Chrysler Top Ranked for EV Car-Shopping Experience ��43 CIECA Committees Seeking Volunteers ��8 Ford F-150 Lightning Details Reveal Surprising Premium Over Tesla Cybertruck ��4 Ford Names Croley Chief Policy Officer ��22 GM Promises to Leave No One Behind as it Moves to an All-Electric Future ��1 GM Recalls 410,000 Trucks with Dangerous

INDEX OF ADVERTISERS

CONTENTS

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, Johnny Barrett (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 Permissions Editor: 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. ©2021 Adamantine Media LLC.

Audi Wholesale Parts Dealers �� 45

Honda-Acura Wholesale Parts Dealers �25, 26-27

AutoNation Collision Parts �� 9

Hyundai Wholesale Parts Dealers �� 49

AutoNation Ford-Lincoln �� 30

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

AutoNation Ford-Memphis �� 40

John Heister Automotive �� 41

Axalta Coating Systems �� 5

Kia Motors Wholesale Parts Dealers �� 47

Beaman CDJR Wholesale Parts �� 23

Mazda Wholesale Parts Dealers �� 48

Benchmark Automotive �� 24

Mercedes-Benz of Cutler Bay �� 20

BMW Wholesale Parts Dealers �� 48

Mercedes-Benz Wholesale Parts Dealers �� 46

Car-Part.com �� 22

Miami Lakes Automall �� 37

Certified Automotive Parts Association �� 12

MINI of Charleston �� 42

City Kia of Greater Orlando �� 42

MINI Wholesale Parts Dealers �� 48

Classifieds �� 50

MOPAR Wholesale Parts Dealers �� 33

Colad/EMM Specialties �� 52

NOROO Paint & Coatings �� 21

Eagle Abrasives �� 17

PPG �� 11

Equalizer Industries Inc. �� 8

Pro Spot International �� 2

Florida Filtration & Spray Booth Services �� 16

Rick Hendrick Chevrolet Naples �� 32

Ford Wholesale Parts Dealers �� 49

Riverside Ford-Lincoln �� 36

GM Wholesale Parts Dealers �� 44

SATA Dan-Am Company �� 13

Gus Machado Ford �� 34

Sherwin-Wiliams Automotive Finishes �� 15

Harper Volkswagen �� 28

Southside Kia �� 35

Hendrick Automotive Group �� 39

Spanesi Americas �� 29

Hendrick BMW/MINI �� 7

Subaru Wholesale Parts Dealers �� 43

Hendrick Honda Pompano Beach �� 41

Sunmight USA ��18-19

Hendrick Kia Cary �� 31

Tameron Hyundai �� 40

Hendrick Kia Concord �� 31

Volkswagen Wholesale Parts Dealers �� 51

Hendrick Volvo Cars of Charleston �� 42

Wedge Clamp Systems �� 6

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

Airbag Inflators ��41 Help Wanted: U.S. Automobile Dealers Struggle to Hire Employees While Business Booms ��4 Is State Farm’s New Offer One the Industry Can’t Refuse? ��24 June CIECAST Explores Future of AI in the

COLUMNISTS Anderson - Use Tech to Kick ‘Timesuckers’ Out of Your Collision Repair Shop ��32 Yoswick - GM Scales Back Post-Crash Inspections Requirement for Collision Repair Shops ��36

Collision Repair Industry ��30 LKQ Corporation’s Elitek® Vehicle Services Expands into Remote Automotive Diagnostics and Programming ��48 Nationwide Study Highlights Post-Pandemic Insights for the Automotive Aftermarket ��1 NHTSA Launches Interactive, Searchable

NATIONAL ‘Who Pays for What?’ Survey: Auto Body Shops Increasingly Billing, Being Paid for Seat Belt Inspections ��50 16 State Attorneys General Asks EPA to Hold

Recall Dashboard ��20 Predicting What the Collision Repair Industry Will Look Like in 2035 ��1 SEMA Intensifies Advocacy Efforts, Connects with Congressional Reps

All States to Emissions Rules ��51

from Washington, D.C. ��1

AAPEX 2021 Opens Nominations ��48

Sherwin-Williams Earns Top Honors ��10

Americans Cut Driving Nearly in Half in

Signature Collision Centers Joins Forces

Early Stage of COVID Crisis ��40 Art, Innovation and Car Design Collide in the Life of Michael Santoro ��38 ASE.com Launches Spanish Language Option ��41 Audi Selects Mobileum ��50 Automotive Recyclers Applaud Executive ��44 Average New-Vehicle Price Rises $2,000 from Last Year, Hits All-Time Record High for May ��37 Axalta to Acquire U-POL Order ��6

with Crash Champions ��51 Strategies to Help Auto Body Shops Navigate the Semiconductor Microchip Shortage ��34 Tesla Wanted $16,000 for a Simple $700 Model 3 Repair ��44 The Best U.S. Cities to Own an EV, According to Research ��45 Tradiebot: New Collision Repair Training Software ��28 Used Vehicle Prices Expected to Climb to

Broadly Launches into Collision Repair ��24

Record Highs as New Vehicle Prices Stay

Cadillac SRX, Saab 9-4X Recalled Again

Steady in Q2: Edmunds ��49

for Toe Links ��43 Carmakers in North America Worst Hit by

Watch Out for Cops in F-150s ��24

autobodynews.com / AUGUST 2021 AUTOBODY NEWS 3

Help Wanted: U.S. Automobile Dealers Struggle to Hire Employees While Business Booms The U.S. economy is showing signs of returning to pre-pandemic levels, and the auto business is booming. Like many industries, U.S. automotive retail is struggling to find enough employees for dealerships to be fully staffed, much less meet their 2021 growth goals. In the 2021 Cox Automotive Dealership Staffing Study published June 21, 72% of franchised auto dealers surveyed say finding and hiring the right employees is currently a challenge. A majority of dealership leaders—approximately 65%—report that they plan to increase the total number of employees in the dealership this year, while abotu 34% said they plan to maintain their staffing level. Expanding the number of service technicians is the highest priority for dealership leaders, with 60% planning to increase the number of service technicians this year, followed by new-vehicle sales associates (54%) and used-vehicle sales associates (48%). Dealers’ desire to grow their

operations comes at a time when business is strong. According to the Q2 Cox Automotive Dealer Sentiment Index, sentiment related to the current market reached a record high in Q2 for both franchised and independent dealers, and the profit index set a record high as well. The three-month market outlook index reading is an increase from last quarter and, importantly, equal to Q1 2020, the final preCOVID-19 reading. “While the outlook for dealerships has never been better, dealers state that finding employees is a challenge due to people not returning to their positions or the workforce post-pandemic,” said Angela Drake, senior industry intelligence manager, Cox Automotive. “The traditional lack of interest in working at dealerships is exacerbated this year by pandemic-related stimulus money and enhanced unemployment benefits. “The good news is that our study found overall interest in working at dealerships is growing, and a growing number of employees in non-automotive jobs view

their skill sets as transferable to the dealership.” Job Seekers May Have Skills Dealers Desire, And Not Know It When asking potential job seekers why they would not want to work at a dealership, 32% indicate they did not have the necessary skills. However, the 2021 Dealership Staffing Study finds Heavy Digital Dealers, those dealers that significantly invest in digital retailing tools, say the right employee doesn’t need automotive experience. Instead, they are looking for the following characteristics: • Willing to go above and beyond their specific job responsibilities • Good communicators across all communication channels (verbal, written, video, etc.) • Can easily adapt to a quickly changing work environment • Tech-savvy and comfortable with learning new technology “As pandemic unemployment assistance winds down, dealers have

the opportunity to promote their job openings to a new group of job seekers who may not have considered working in a dealership,” said Bob Kostkan, senior director at Cox Automotive University. “Job seekers with restaurant and retail experience usually have the mindset, potential and skills to be successful at a dealership but may not realize that automotive experience isn’t a prerequisite for many of the open positions. “The most successful dealers offer employees onboarding and comprehensive career development training beyond what their OEMs offer to enhance engagement and retention. In fact, the top two most popular training enhancements indicated in the Dealership Staffing Study for now and into the future are online/digital tools and communication skills.” Source: Cox Automotive

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Ford F-150 Lightning Details Reveal Surprising Premium Over Tesla Cybertruck by Simon Alvarez, Teslarati

The Ford F-150 Lightning is arguably one of the most impressive all-electric pickups on the market today. Starting at a very aggressive price and designed for the F-150’s classic buyers, the Lightning seemed like a great shoo-in as the electric truck market’s next best-seller. Ford, however, has been reserved about the Lightning’s full pricing details, at least until now. And if the recent information about the F-150 Lightning proves accurate, it would appear Ford’s electric pickup will command a pretty steep premium over the Tesla Cybertruck. Users at the Ford enthusiast forum F150Gen14 recently shared a questionnaire reportedly sent by the veteran automaker. The questionnaire, which seemed designed to determine which features are preferred by consumers, featured a list of available F-150 Lightning variants and their respective options and prices. This

included every trim of the Lightning, from the Pro base model to the top-tier Lightning Platinum series.

Credit: Ford Motor Company

Based on the information from the carmaker, non-commercial buyers of the Ford F-150 Lightning could expect to shell out about $53,000 for the XLT trim, but that’s a truck with a conservative 230 miles of estimated range. Customers who prefer an XLT Lightning with longer range could expect to pay an additional $7,000 for its 300-mile battery

4 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

pack. This is true for the XLT + Premium Package and Lariat variants as well. The Ford F-150 Lightning Lariat was already listed with a starting price of $67,474, or close to the starting price of the 500-mile tri-motor Tesla Cybertruck, which starts at $69,990. That’s pricey for a vehicle that still starts with only 230 miles of range. Fortunately, Ford’s 300-mile battery becomes standard with the F-150 Lightning Lariat + Premium Package, but that starts at $79,474. The Ford F-150 Lightning Lariat + Premium Package not only comes with the company’s 300-mile range battery. It also comes with a twin-panel moonroof, the company’s BlueCruise driver-assist system and Phoneas-a-Key features. These specs are comparable to the middle-tier Tesla Cybertruck Dual Motor AWD, ex-

pected to have a range of 300-plus miles, as well as standard features like a full glass roof, basic Autopilot and Phone Key functions. The notable difference between the Ford F-150 Lightning Lariat + Premium Package and the Tesla Cybertruck Dual Motor AWD, of course, would be their price. Based on the information reportedly sent by Ford to its customers, the F-150 Lightning Lariat + Premium Package starts at $79,474, while the Cybertruck Dual Motor AWD starts at $49,990 before options. That’s a premium of nearly $30,000 for the F-150 Lightning. With such a price gap in mind, Ford may have to rely on its reputation and pedigree as a truck-maker to ensure the Lightning becomes successful like its internal combustion-powered predecessors.

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 5

Fight Over Documents in AGA vs. Allstate Case Spills Over into Allstate vs. AGA Case by Rebecca Barnabi, glassBYTEs.com

It’s gotten even more complicated. If the defendants in Allstate vs. Auto Glass America and Charles Isaly (AGA) have their way, a recent decision by a state district court in Broward, FL, will be a factor in their case currently before the U.S. District Court in the Middle District of Florida’s Orlando Division.

AGA filed a copy of an order released July 1 by Broward County Judge Robert W. Lee in a short-pay case filed in the state by

AGA against Allstate. Both sides in each case have been fighting over whether or not the appraisal firm Auto Glass Inspection Services (AGIS) is “disinterested.” Whether AGIS is determined to be disinterested or not is crucial to Allstate’s argument the amounts it reimbursed AGA for auto glass replacement services were reasonable. Florida law is clear if an insurance company invokes an appraisal clause in a policy, the insurer must select an appraiser who is disinterested, said Lee in his order. AGA had sought access to the agreement between Allstate and AGIS, among other documents. “Having lost at the appellate level, Allstate was forced to face the music—it would have to turn over the limited discovery that might show whether AGIS was truly disinterested. Rather than comply, Allstate switched its position…and instead

decided to simply designate another appraiser,” said Lee in his order. Allstate had argued it switched appraisers so to “streamline” the resolution of this case—which the judge called “an odd position.” “Allstate’s argument is a hollow effort at best and disingenuous at worst,” Lee wrote in his order. The order goes on to say Allstate has avoided this issue in other cases simply by settling those cases. The judge concluded Allstate’s switch to a different appraiser provided the relief AGA was seeking and by doing so, Allstate confessed judgement in the case. As a result, the judge found AGA was no longer entitled to the documents it had sought. AGA’s legal team filed a copy of the order as Exhibit A with the U.S. District Court handling the federal case brought by Allstate in December 2018. (C) 2021 by glassbytes.com. Reprinted with permission. All rights reserved. For more information contact www.glassbytes.com.

Axalta to Acquire U-POL Order Axalta Coating Systems on July 7 announced it has entered into definitive agreements to acquire U-POL Holdings Limited from Graphite Capital Management LLP and other holders for about $590 million. U-POL is a leading manufacturer of repair and refinish products used primarily for automotive refinish and aftermarket protective applications. Axalta will accelerate growth of U-POL’s products by expanding market access through Axalta’s existing sales and distribution channels while leveraging U-POL’s distribution channels to extend the reach of its refinish coatings portfolio to new customers. U-POL’s talented global organization and its manufacturing plant and R&D lab in Wellingborough, England, bring important capabilities to the company’s commercial, manufacturing and technology organizations, enhancing Axalta’s ability to serve its customers across the globe. Source: Axalta

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CIECA Committees Seeking Volunteers CIECA’s Repair Order & Repair Status and Process Committees are being reactivated and are looking for volunteers. New chairs Chris Hall and Jim Puskas, both product managers at Entegral, invite all CIECA members to consider joining a monthly committee meeting. The committees will focus on updating the repair workflows and documentation, determining any pain points in the industry, and working on standards that need to be updated. To be considered, fill out the form available on the homepage at www.cieca.com. Source: CIECA

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Georgia’s Traffic Congestion Among Worst in U.S. by Nyamekye Daniel, The Center Square

Georgia’s interstate system congestion and vehicle travel rate are among the highest in the U.S., a recent report shows.

According to a National Transportation Research Group (TRIP) report published in late June, 57% of urban interstate highways in Georgia are considered congested during peak hours, the 12th-highest in the U.S. Georgia also has the 13th-highest rate of daily interstate travel per urban lane-mile, the report showed. Transportation officials said the data highlights the need for more infrastructure spending in the state. “With one of the most suc-

Florida Governor Cites ‘Unintended Consequences’ in Veto of Auto Insurance Bill Florida Gov. Ron DeSantis has vetoed a measure intended to replace auto insurance personal injury protection (PIP) coverage with bodily injury coverage limits and a requirement that insurers offer medical payments coverage. In a letter time-stamped at 9:12 p.m. June 29, DeSantis wrote he was vetoing the bill (SB54) because it may have “unintended consequences.” The bill received widespread support from Florida lawmakers but faced scrutiny from critics including insurers arguing that the repeal would raise rates and lead to a higher number of uninsured drivers. DeSantis seemed to have listened to the critics. “While the PIP system has flaws and Florida law regarding bad faith is deficient, CS/CS/SB 54 does not adequately address the current issues facing Florida drivers and may have unintended consequences that would negatively impact both the market and consumers,” DeSantis wrote in his veto letter. SB 54 would have repealed the state’s no-fault PIP system and

instead required mandatory bodily injury coverage of at least $25,000 for all Florida drivers. The passed version of the bill also provides the option of a $5,000 medical payment coverage (MedPay) death benefit. Bill sponsor Danny Burgess, a Republican, pointed to a 2016 Office of Insurance Regulation study that showed rates would decrease if PIP was repealed. Opponents of the repeal said it would have the opposite effect. Insurer trade group American Property Casualty Insurance Association argued the cost of an average auto insurance policy could increase by as much as 23%, or $344. Drivers with low coverage levels could see an increase as high as $805 annually. “Moving forward, we hope any proposals to reform or eliminate Florida’s no-fault auto insurance system will reduce consumer costs, combat rampant lawsuit abuse by implementing meaningful bad faith reforms, and prevent or minimize fraud,” APCIA said in a statement applauding the veto.

8 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

cessful and fastest-growing ports in the United States, Georgia is at the epicenter of that need,” said Seth Millican, executive director of the Georgia Transportation Alliance. The TRIP found travel on the U.S. interstate system has increased since 2000 at a rate nearly triple that at which new lane capacity is being added. Vehicle travel on Georgia’s interstates increased 22% from 2000 to 2019. However, vehicle travel in the state dropped by 39% in April 2020 when compared with April 2019 because of the COVID-19 pandemic. It jumped to 4% below March 2019 levels by March this year. TRIP recommended states reconstruct their interstate highways, upgrade roadway corridors and add additional highway capacity and additional corridors, among other things. The Georgia Department of Transportation (GDOT) has developed plans to expand some of its highways. The agency is exploring a plan that would allow a private company to invest in its I-285 lane expansion project, which is ex-

pected to reduce traffic congestion in the metro Atlanta area. A private-public partnership also could reduce the burden on taxpayers. Georgia’s Transportation Funding Act, passed in 2015, earmarked $5.4 billion for infrastructure projects from 2016 to 2021. The legislation also increased the tax burden on Georgians by increasing the fuel tax and other vehicle fees. The state’s motor fuel excise tax rate is 28.7 cents a gallon. Local fuel tax varies by county. The federal Fixing America’s Surface Transportation Act provided $8.3 billion to Georgia from fiscal years 2016 to 2021, an average of $1.4 million per year. “A modernized interstate system will be critical to the nation’s ability to fully recover from the COVID-19 pandemic and will require adequate investment in a federal surface transportation program that provides states and local government the funding and flexibility they will need to restore the nation’s most critical transportation link,” said TRIP Executive Director Dave Kearby.

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Oshkosh Selects Spartanburg, SC, to Build Next Generation Postal Delivery Fleet Oshkosh Defense, a wholly-owned subsidiary of Oshkosh Corporation, announced June 22 it will open a dedicated facility in Spartanburg, SC, where it will build the U.S. Postal Service Next Generation Delivery Vehicle (NGDV). The company expects to hire more than 1,000 local team members at the Spartanburg facility, and on-site supply chain partners are expected to have additional hiring needs. The USPS selected Oshkosh Defense for the multi-billion-dollar NGDV contract in February at the end of a competitive process that began in 2015. The indefinite delivery, indefinite quantity (IDIQ) contract provides for the delivery of between 50,000 and 165,000 vehicles over a period of 10 years. These vehicles will replace the existing fleet of delivery vehicles, many of which have been in service for more than 30 years. Oshkosh’s winning solution will provide a modern fleet of both zero-emission battery electric vehicles (BEV) and fuel-effi-

cient low-emission internal combustion engine (ICE) vehicles, with the option of producing any combination of models.

“Oshkosh Corporation’s advanced engineering capabilities have been driving the company for more than a century,” said John Pfeifer, president and CEO of Oshkosh Corporation. “That innovation has included a commitment to engineering and delivering a wide range of electric vehicles featuring new sustainable technologies. Now the company’s innovative NGDV will bring these sustainable technologies

into more American neighborhoods.” Oshkosh Defense plans to repurpose an expansive warehouse facility in Spartanburg with the innovative features needed to accommodate a large-scale manufacturing operation that meets the technical requirements of producing cutting-edge vehicles for the USPS. Production of the NGDVs is expected to begin summer 2023. “We’re proud to bring this historic undertaking to Spartanburg,” said John Bryant, executive vice president of Oshkosh Corporation and president of Oshkosh Defense. “Upstate South Carolina has a skilled workforce and a proven history in advanced automotive manufacturing—it’s the perfect place to produce the NGDV. More importantly, we know the people of Spartanburg take pride in their work and their community. What we build together here will reach every home in the country.” Source: Oshkosh Defense

Sherwin-Williams Earns Top Honors Sherwin-Williams received triple honors in the J.D. Power 2021 Paint Satisfaction Study, earning the top spot in customer satisfaction in the categories of Exterior Paints, Exterior Stains and Paint Retailers. The J.D. Power Paint Satisfaction Study is based on four key drivers of satisfaction: application, offerings, durability and price. The study examined the experience of 5,804 customers who purchased and applied paint or stain in the previous 12 months. Sherwin-Williams has earned top honors three years in a row for No. 1 in Customer Satisfaction with Exterior Stains and No. 1 in Customer Satisfaction with Paint Retailers. This is the second year in a row that Sherwin-Williams has earned this recognition for No. 1 in Customer Satisfaction with Exterior Paints. Source: Sherwin-Williams

Gerber Collision & Glass Acquires 16 Repair Centers in South Carolina and Georgia

Volvo Cars Invests $118M in Electrified Vehicle Production in SC

The Boyd Group Inc. announced the acquisition of 16 collision repair centers located in South Carolina and Georgia. These repair centers operated as John Harris Body Shops, originating in 1975 in Columbia, SC. The South Carolina repair centers are located in Bluffton, Charleston, Greenville, Greer, Irmo, Mt. Pleasant, North Charleston, Summerville and Sumter, and two each in Columbia and Lexington. The Georgia locations are in Augusta, Evans and Grovetown. Charleston is the largest city in South Carolina, the county seat of Charleston County and a popular tourist destination in a metropolitan area of more than 800,000 people. The state capital Columbia is located near the center of the state and is the second largest city in South Carolina. It is the primary city in a metropolitan area of approximately 850,000 people. Greenville is the sixth largest city in South Carolina and approximately halfway between Atlanta, GA, and Charlotte, NC. It is the largest city in a rapidly growing area of

Volvo Cars will invest an additional $118 million into its Ridgeville, SC, plant to build the Polestar 3 on the Volvo Car Group’s next generation electric architecture, under contract for its affiliate, Polestar Cars.

approximately 920,000 people. Augusta is two hours east of Atlanta and is the second largest city in Georgia and principal city of a metropolitan area of approximately 600,000 people. “We are very excited about this acquisition which expands our footprint in South Carolina and Georgia. We welcome these teams which have extensive collision repair experience and we look forward to working with them to provide high-quality repairs and outstanding customer service,” said Kevin Burnett, COO of Gerber Collision & Glass. “The acquisition of these repair centers will introduce our brand and leading service model to new customers and further assist our insurance clients.” The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair center owners are asked to contact Jason Hope, vice president of business development and strategic projects, at (530) 774-3887 or jason.hope@boydgroup.com. Source: The Boyd Group Inc.

10 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

Polestar is the Swedish electric performance brand launched by Volvo Cars and Geely Holding in 2017. The Ridgeville plant currently produces the Volvo S60 luxury sedan for U.S. and export markets. The fully electric Polestar 3 will join the S60 and the next generation of electrified Volvo cars coming out of the same facility. “Our South Carolina team has done a remarkable job producing the award-winning S60 and ready-

ing the plant for the next generation of electrified Volvo cars,” said Javier Varela, senior vice president of industrial operations and quality, Volvo Car Group. “Now, with the contract to produce the fully electric Polestar 3, we continue to expand our manufacturing operations for electrified vehicles.” “We are proud to bring these new growth opportunities to Ridgeville and continue to grow our presence in the United States,” said Anders Gustafsson, senior vice president of Volvo Car Americas and president and CEO of Volvo Car USA. The global transformation for Volvo Cars continues with this announcement, signifying a cumulative investment of more than $1.2 billion in the South Carolina operation with room for future growth. In addition to its manufacturing footprint, Volvo Cars continues to invest heavily in technology and design and its Americas Region sales operation, including employee training and development. Source: Volvo Car USA

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Look Like in 2035 sands, not two or three thousand, and shaving an hour here or a procedure there. These things are going to cost a lot to repair.” Other speakers agreed the repairer-insurer-OEM dynamic will change significantly by 2035.

be eliminated entirely. “Look at how you have Tesla Insurance, or Onstar Insurance from General Motors,” Spears said. “You’ll probably have a vertical that will take care of that customer much, much better than [separate companies] that don’t have the incentives to work together.” Terlep said the added cost of vehicle safety systems will have led

“It’s not always easy to conceive what’s going to happen in the future. We’re guessing at best.” — Sean Carey “One of the things I foresee has been happening outside of our country for many years,” said Frank Terlep, co-chairman of the Future Disruptions Committee. “When you buy a new vehicle in 2035, you will be getting your insurance with the vehicle. That’s going to change the model.” Jimmy Spears, a former executive at USAA who is now with Tractable, agreed the line between automaker and insurer will blur or

to more vehicles being declared total losses, with the repairable vehicle count dropping “as much as 30 or 40%.” “You’re going to have to be a licensed professional to get access to those safety systems,” Terlep added. “A lot of people don’t want to hear that, but I just don’t see the OEMs and the government releasing direct access to all the safety systems.” Committee co-chairman Jake Rodenroth agreed.

“You have to be licensed to cut hair but not to calibrate ADAS or cut panels off cars or work on electric vehicles,” he said. “That’s got to change.” Several speakers agreed by 2035, accessing OEM repair information will be less “clunky” and time consuming, no longer requiring use of multiple websites. “So in 2035, my prediction is the procedures will be living with the vehicle,” Terlep said. “You’ll be looking in the vehicle for those procedures, not on someone else’s website. The repair procedures will be presented to you based on sensors in the vehicle that will know: These areas are damaged.” Rodenroth agreed, noting collision repairers are not the only ones needing easier access to the information. “There are first-responders who need to know where they can cut a vehicle, where they can’t cut one. There are tow truck drivers who need to know how to safely tow a vehicle. They’re all in a race against time,” Rodenroth said. “They don’t have time to flip a book, or go

through an app or even to ask Siri. They need to have it easily accessible and immediate. Maybe it’s a combination of on the vehicle infotainment screen or on a handheld as they walk toward the car. But it’s got to be instant.” Also in the future, Terlep foresees more use of remote technicians, even those in other countries, for diagnosis and electronic work, given the shortage of technicians here. Rodenroth said he recommends the industry start recruiting “the tuner kids,” those who can customize a vehicle “to turbocharge it or create a bigger engine and push more fuel and air.” “They understand how the [vehicle] network works before they change it,” he said. “So when you bring them in, don’t ask them body shop questions. Ask them about how they feel about electronics and wiring diagrams, how immobilizers work and things like that. You’ll see some of them explode. I met one yesterday when I picked up a rental car. This kid was sharp. That’s the future technician right there.”

The Boring Company Proposes Underground Loop for Fort Lauderdale by Maria Merano, Teslarati

Fort Lauderdale, FL, Mayor Dean J. Trantalis announced The Boring Company (TBC) has submitted a proposal to build an underground transit system in the city. “Fort Lauderdale has received a proposal from Elon Musk’s The Boring Co. to build an underground transit loop between downtown and the beach. Called ‘The Las Olas Loop,’ this represents an innovative and unprecedented approach to addressing traffic congestion and transit needs,” tweeted the mayor. Since the beginning of the year, Trantalis has communicated with TBC about a potential project in New River. The Fort Lauderdale mayor visited TBC’s Las Vegas Convention Center Loop (LVCC) in February, a trip Trantalis called “very productive.” The mayor noted he came home with many ideas about tunneling solutions to resolve traffic congestion. So far, Musk’s TBC has suc-

cessfully completed at least two loops, the LVCC Loop in Las Vegas and the R&D Tunnel in Hawthorne, CA.

TBC kicked off LVCC Loop operations in June for the World of Concrete Convention. Videos take during the convention showed attendees were generally enjoying the underground transport system. TBC estimated a tunnel in downtown Fort Lauderdale would cost between $30 million and $60 million to construct. In comparison, the Florida Department of Transportation (FDOT) proposed building a 55 foot-high bridge with an estimated cost of $445 million. The Las Olas Loop that TBC recently proposed to Fort Lauderdale may be a bigger project than the original tunnel Trantalis wanted to be built in New River.

12 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

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SEMA Intensifies Advocacy are equipped with Advanced Driver Assistance Systems (ADAS). The bipartisan RPM Act is a top priority for SEMA, and will protect the motorsports industry against overreach from the U.S.

ed race cars. “We must continue to communicate with and educate elected officials about the issues that are important to the industry,” said Daniel Ingber, SEMA vice president of government and legal affairs. “We value the opportunity to meet with lawmakers and will continue to push for the rights of the aftermarket industry.”

including a number of lawmakers who signed on after meeting with SEMA-member business representatives and staff. SEMA urges racers and race fans to continue to reach out to lawmakers and demand that the RPM Act be passed into law. “We cannot let up on our efforts to push for the RPM Act,” said Ingber. “As the EPA attacks the motorsports industry, we must protect

“We must continue to communicate with and educate elected officials about the issues that are important to the industry,” — Daniel Ingber SEMA staff and representatives have connected with lawmakers this year to discuss key initiatives, including passage of the RPM Act. John Hotchkis, far right, of Hotchkis Performance, met with Rep. Ted Budd, center, to talk about top industry issues, challenges and concerns

Environmental Protection Agency (EPA). The bill clarifies the motorsports-parts industry’s ability to sell products that enable racers to compete and protects Americans’ right to convert street vehicles into dedicat-

The RPM Act was first introduced in 2016, after the EPA began interpreting the 50-year-old Federal Clean Air Act (CAA) to include race car conversions. SEMA has led the fight to advocate for passage of the bill, which was introduced earlier this year in the House of Representatives after enthusiasts sent more than 1.3 million letters to lawmakers urging them to pass the RPM Act. The bill currently has Congressional support from 82 co-sponsors,

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our rights to modify vehicles. The RPM Act will clarify that it is legal to modify street vehicles into dedicated race cars and give the industry the assurance it needs to continue to legally compete.” With strong bipartisan support and engagement from the industry, the RPM Act is well positioned for passage in the current Congressional year. Committees have reviewed the bill in previous years and are prepared to expedite the bill.

“It was great to meet with lawmakers who seriously considered the RPM Act, which allows street vehicles to be converted into racing vehicles,” said Braden Liberg, director of compliance and calibration engineering of the Edelbrock Group. “Without the RPM Act there is a threat to the motorsports industry. Many lawmakers are unaware of the challenges facing our industry, and it’s imperative that we work with them to ensure that motorsports businesses can continue to operate.” Racers, race fans and related businesses are encouraged to continue to contact their legislators to pass the bill and #saveourracecars by visiting www.saveourracecars.com. Source: SEMA

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All-Electric Future and communities that are more likely to disproportionately experience the effects of climate change. “We know 80% of EV owners today charge at home,” said Gerald Johnson, GM’s executive vice president. But, Johnson said, GM also realizes there are many people who don’t have a residence where they can charge a vehicle. Likewise, Johnson said GM supports an EV tax credit incentive that would include used electric cars, “to broaden the access” to EVs for more consumers. “We have an imperative to leave the world a better place than we found it,” Johnson said. Barra said GM wants consumers to be able to choose an electric vehicle as their only vehicle. Therefore, those consumers must have confidence that if they go over the vehicle’s range, which for GM is typically 300 miles, there’s a charging infrastructure to support them. Also, there have to be affordable options to buy EVs. “When we check all those boxes, our research shows that people say they are very interested in an electric vehicle,” Barra said. The philanthropic fund complements GM’s $35 billion investment in research and development of EVs and self-driving cars by 2025. Barra said GM is focused on bringing its current workforce along, while helping to build a diverse pipeline of talent, as GM gets closer to a zero-emissions future. GM will be adding jobs, but James said it is not sharing how many new jobs will be created. Barra said GM strives to be the “most inclusive company” in the world. That means creating an environment where everyone feels valued, comfortable to be themselves and emboldened to do their best work. It also means including them in a transition to EVs, Barra said. “Whether they’re an engineer or a teammate working on the assembly line in one of our plants, they need to know they are a part of our future,” Barra said. “This won’t happen overnight―it will happen over time and that time will allow

us to retrain employees. Our goal is, as we make this transition, we bring everyone along.” GM recently established GM Automotive Manufacturing Electrical College, which allows people to be retrained to work on EVs. As for the workforce of the future, Barra said, people need to have a technology basis. They don’t necessarily have to “be able to code,” but they should know enough about software and technology to be flexible to move to a variety of jobs, she said. GM has said it aspires for all of its light-duty vehicles to be zero emissions by 2035. Barra said GM’s focus on “equitable climate action” centers on four areas: The future of work: GM will prioritize its current salaried and UAW-represented workforce in its shift to EVs. GM publicly reiterated its support for the UAW to organize employees at the Ohio and Tennessee Ultium Cells LLC battery cell manufacturing plants. In May, the UAW told the Free Press it is prepared to battle GM at the new battery cell factories GM is building in Ohio and in Tennessee if the automaker won’t allow a simplified process, called a card check, to organize workers there. But days after the Free Press article, GM and its battery cell partner, LG Energy Solution, publicly expressed support for unions. They also acknowledged workers’ rights to unionize the joint venture called Ultium Cells LLC battery plants. When asked June 29 if GM would support a card check process at the battery cell plants, Johnson said, “We are supportive of the UAW. We are partners with the UAW and have been for decades. It is ultimately the decision of the employee group there, but we fully expect we’ll work together with the UAW moving forward at these plants as we do in our propulsion plants across the U.S.” EV access: GM has said it will bring 30 new EVs to market by mid-decade that offer customers a wide selection across a range of price points. The redesigned 2022 Chevrolet Bolt EV starts at $31,000 and the 2022 GMC Hummer pickup,

16 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

due out later this year, will start at $79,995. GM also announced partnerships that will use its Hydrotec fuel cells for rail and aircraft applications, which could deliver improvement in emissions beyond cars. Infrastructure equity: GM is committed to helping bring widespread charging stations and other solutions to address any charging concerns that can hinder EV ownership. Climate equity: GM will help fund organizations that are helping to find solutions to changes that will result due to climate change. GM and these groups will work at the community level looking at the future of work, EV access, EV infrastructure and other issues that arise from climate change. Starting June 29, GM is accepting proposals from outside groups for funding from its new Climate Equity Fund. Potential grantees should submit proposals aligned to GM’s four climate equity social outcomes listed above. The grant proposals will not

go to other EV companies, Johnson said, “This is targeted for grassroot organizations in communities---targeting towards awareness, understanding and engagement in climate change and an EV future.” Barra said GM strives to make mobility safer, more accessible and more environmentally friendly and it will work with community-based stakeholders to identify their needs and find solutions. GM will advocate for inclusive and equitable climate change, renewable energy and transportation-related policies at the federal, state and local levels to help ensure a sustainable mobility future for all, she said. It will help fund organizations that provide equitable access to EVs. “It means that 20 years from now, as we look back at our company and our spending $35 billion to transform the company, we can be proud in how we did it,” James said. “And we’ll know that we didn’t leave anyone behind.”

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Nationwide Study not going away,” said study author Chuck Bean, Martec partner/CMO. “However, we expect usage and ownership of personal vehicles to increase. In our study, a high percentage of respondents living in urban locations reported being likely to move to a suburban or rural location due to the pandemic.” Shifting population data along with increased VMT insights suggest the automotive aftermarket is about to experience substantial growth. The pandemic also has impacted how people maintain or service their vehicles as well as their buying behaviors for vehicles, services and parts. The pandemic has caused many consumers to delay purchasing or leasing a new vehicle. More than half of these consumers do not expect to do so until the second half of 2021, increasing average vehicle age. In addition, the majority of respondents have deferred vehicle maintenance during the pandemic. As consumers defer maintenance and push off getting newer vehicles, these factors likely will accelerate

demand for parts and services in the aftermarket. Segmentation Analysis The study identified four key segments developed using the Martec Emotion Scores (MES) to understand how consumers feel about maintaining or servicing their vehicles. Below is a snapshot of how each segment feels about servicing their vehicles during the pandemic:

Report Summary This study explores data collected from a November 2020 survey of 1,000 respondents across the U.S. For this survey, Martec intentionally captured vehicle owners and people who are primarily full-time employed. The goal of this survey was to

NHTSA Launches Interactive, Searchable Recall Dashboard The National Highway Traffic Safety Administration (NHTSA) on July 1 unveiled a new cloud-based recall dashboard to make searching for auto safety recall data easy and efficient. The dashboard offers user-friendly and transparent ways to sort, filter, visualize and export recall data. “This new dashboard provides unprecedented transparency into the recall process,” said Dr. Steven Cliff, NHTSA’s acting administrator. “More than 50 years of recall data are now easily available to the media, researchers, safety advocates and anyone interested in learning more about vehicle safety. This initiative is part of the U.S. Department of Transportation’s commitment to safety on our roadways, and it provides increased transparency and accountability to the American people.” The dashboard will be updated daily and is available at https://

datahub.transportation.gov/dataset /NHTSA-Recalls-by-Manufacturer /mu99-t4jn The new dashboard allows users to sort and filter data, search by keyword and export data in CSV, TSV for Excel, XML and other formats. It also presents data in easyto-read charts and graphs. Previously, NHTSA made its recall data available through a bulk download, requiring users to download large data files and import them into a database like Microsoft Access. This has long been available to the public, but this new dashboard makes that information easier to access and analyze. NHTSA encourages everyone to search for open recalls by using NHTSA’s VIN Look-Up Tool and to download the SaferCar app to stay informed on current recalls. Make sure to promptly address any open recalls. Source: NHTSA

20 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

develop foundational insights based on a nationally stratified sample. These results can be compared to the findings developed for specific organizations in order to understand how their customer base differs from the overall environment and what actions should be considered to capitalize on insights. The report provides an in-depth look at consumer expectations and market analysis findings for the

automotive aftermarket industry throughout the COVID-19 pandemic. Martec’s “Auto Aftermarket: Effects of COVID-19” report includes VMT data, vehicle usage details, figures on unperformed maintenance,

aftermarket opportunities and DIY market share trends. The majority of the segments outlined in the report are becoming increasingly DIY-focused―pointing toward a continued rise in retail and e-tail channels and DIY repairs. “Each consumer segment is approaching vehicle care differently,” said study author Emily Bielak, Martec project manager. “To succeed in capturing more market share, aftermarket suppliers and distributors need to take note of DIY [do it yourself] and IIFM [install if for me] trends detailed in our report. Trends like buying parts online versus instore likely will continue. We can examine what that means for specific value chains.” The report is available for purchase from Martec. To view key findings, the table of contents and purchasing options, visit info.martecgroup.com/automotive-aftermarket-report-covid-impacts. This study was sponsored by DRiV and Gates and supported by the Auto Care Association. Source: The Martec Group

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GM Confirms Next All-Electric Pickup Truck After Hummer EV and Silverado EV by Maria Merano, Teslarati

While Ford has the F-150 Lightning and Tesla has the Cybertruck, General Motors is taking a multipronged approach in its electric pickup truck strategy. As revealed by GM on July 19, it will be offering at least three large all-electric pickup trucks in the future. The third yet-to-be-announced pickup would join the GMC Hummer EV and the electric Chevy Silverado as part of the company’s electric vehicle lineup. The Hummer EV was announced last October and is expected to start deliveries later this year. The electric Silverado was confirmed in April. GM’s third full-size all-electric pickup truck is part of the veteran automaker’s $27 billion investment in electric vehicles and self-driving cars, designed to help the company release 30 EVs globally by 2025. GM expects to sell at least 1 million electric vehicles per year worldwide by 2025, and it expects to transition into an all-electric automaker by 2035.

During a digital media event, GMC global head Duncan Aldred noted he is confident of GMC’s chances. He also stated the new pickup truck is “pretty advanced” in its planning.

the Tesla Cybertruck hint at more than 1 million reservations for the vehicle. Ford also recently confirmed it had received more than 100,000 reservations for the F-150 Lightning. Granted, Tes-

““Do we feel confident about our ability to win in that environment? Absolutely, we do.” — Duncan Aldred The name of the upcoming all-electric pickup has not been disclosed yet, though the statements from the GMC executive suggest that the vehicle may potentially be an electric version of the Sierra pickup. A covered render of the vehicle featured in the digital media event hints at a traditional pickup design as well. The all-electric pickup truck market is still unproven, but vehicles that have been announced for the segment have attracted a significant amount of interest. Unofficial order trackers for

22 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

la and Ford’s reservations for the Cybertruck and Lightning are only worth $100 each, but they suggest public interest in electric trucks is present and substantial. Aldred believes GM’s third all-electric pickup will be successful in the market. “Do we feel confident about our ability to win in that environment? Absolutely, we do. I think we’re already showing our excellence in terms of electrification; we’ve done that through Hummer EV,” he said. *Quotes courtesy of CNBC.

Ford Names Croley Chief Policy Officer Ford has selected former U.S. federal lawyer Steven Croley to become its chief policy officer and general counsel. Croley, 55, who joined Ford on July 12, will help the company further leverage and build on its strengths in government relations, sustainability, safety, legal and privacy. The new policy leadership role was anticipated last October when Jim Farley became CEO and announced organizational changes to help the company fulfill its customer-first Ford+ plan for growth and value creation. Croley will report to Farley and work closely with Jon Huntsman, a member of the Ford board of directors who in April was appointed vice chair, policy, an internal senior advisory role to Farley and Executive Chair Bill Ford. John Mellen, who postponed his planned retirement from Ford a year ago to take on the role of general counsel, will conclude his exceptional career with the company Sept. 1, following transition of his legal responsibilities to Croley. Source: Ford

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Is State Farm’s New Offer One the Industry Can’t Refuse? by Rebecca Barnabi, glassBYTEs.com

A new offer is on the table from State Farm to auto glass providers in its National Glass Program.

Effective July 5, State Farm will offer a labor rate of $42 per NAGS labor hour in Zones 1, 2 and 3. Additionally, the company is offering the following for glass parts: • 41% off NAGS List Price in Zone 1 • 25% off NAGS List Price in Zone 2 • 0% off NAGS List Price in Zone 3 The insurer announced the changes in a letter dated June 28. State Farm periodically changes what it “offers” to reimburse shops for its insurance work. In September 2016, glassBYTEs. com reported an increase from $35 per NAGS labor hour to $38 per

NAGS labor hour. Zone 1’s pricing decreased from 25% off NAGS list price for an auto glass part to 32% off; from 15% off to 24% off the NAGS list price in Zone 2; and Zone 3 remained at 0 percent off the NAGS list price. “It’s a small change that [State Farm] made, but just the whole concept of the idea is a slap in the face,” said Rick Valentine, owner/operator of Intermountain Auto Glass in Boise, ID. As a Zone 1 shop, Valentine said he will see the NAGS percentage off go from 38 to 41%, and labor go from $39 to $42 per NAGS labor hour. The percentage off increasing is what will hurt shops like Valentine’s. The last price change by State Farm was two to three years ago, according to Valentine. Valentine said it is particularly challenging with all that is going on nationwide as well as the lingering effects of a global pandemic and a labor shortage.

He said that, for the first time, he is considering no longer participating with State Farm. “It impacts us significantly when our costs go up,” Valentine says. Intermountain Auto Glass is based in Boise, but has multiple locations to serve customers. “I’ve been through it all,” Valentine said of his company, which opened in 1996. According to Valentine, 80% of the work his business does is through insurance. “I just don’t think it’s reasonable, nor fair,” he said. In the last 18 months, Valentine said costs have escalated and supply issues have become a concern. To his knowledge, only State Farm has reduced what it is willing to pay in the last six months. “All of our costs have done nothing but go up. We counter that by passing that on to the customer,” Valentine said. (C) 2021 by glassbytes.com. Reprinted with permission. All rights reserved. For more information contact www.glassbytes.com.

Watch Out for Cops in F-150s by Steven Symes, Motorious

We certainly don’t advocate running from law enforcement when you’re told to pull over, but if you do, you might want to make sure the 2021 Ford F-150 Police Responder isn’t on your tail. That, or you better have a Hellcat or something hotter. The Blue Oval has been braggingabout how testing done by the Los Angeles County Sheriff’s Department and the Michigan State Police shows the truck is quicker at 0-60 and 0-100 mph acceleration versus other law enforcement vehicles, be they trucks, SUVs or sedans. Apparently, those law enforcement agencies even tested the police cars on the quarter mile, something you don’t see every day. What confuses us is the old adage that police can outrun you with radios so they don’t need quick cars and how that squares with these types of tests. Thankfully, Ford is here to add clarity. “Vehicle acceleration and speed contribute to how quickly first

responders can safely arrive at an emergency scene,” said Greg Ebel, Ford police vehicle brand manager. “Shaving even a few seconds off response times can make a big difference. Whether responding to an accident on the highway or a distress call from somewhere off-road, law enforcement officers can count on 2021 F-150 Police Responder to get them there fast.” Now do you get it? Police need to speed to get to emergency scenes and to chase down cretins having fun at car meets. Plus, having a truck means they can go bust people in Jeeps who try to flee on dirt roads. Before you start wishing you had this police truck, keep in mind it’s really not that quick. Michigan State Police tests show it does 0-60 in 5.4 seconds. That is 1.2 seconds quicker than the old Ford police truck, but it’s not exactly blisteringly quick by today’s standards. Plus, the thing tops out at 120 mph, which explains why Hellcats get away. Just remember, the police radio is even quicker.

Broadly Launches into Collision Repair Broadly, Inc. an award-winning provider of software solutions for local businesses, announced June 17 its official launch into the auto collision repair sector. Broadly’s reputation management and communication tools are already helping thousands of auto body shop owners boost their online presence, attract new customers, engage with the modern consumer and make payment processing simple and contactless. Since launching in 2014, Broadly has helped thousands of local business owners grow successful businesses through a variety of high impact features— including web chat, text messaging, automated review requests and contactless payments—all aimed at increasing revenue and efficiency while delivering meaningful customer experiences. For more info about how Broadly can help grow collision businesses, connect at https:// broadly.com/schedule-demo/ Source: Broadly

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

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Honda Mall of Georgia

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

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ACURA FLORIDA

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26 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

Winston-Salem

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

Woodbridge

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TENNESSEE

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Hall Honda

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Alcoa

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AutoNation Honda West Knoxville

Valley Honda

Knoxville

800-824-1301 865-218-5461

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Bill Gatton Honda Bristol

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

Staunton

800-277-0598 540-213-9016

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

West Broad Honda Richmond

800-446-0160 804-672-8811

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

Wolfchase Honda Bartlett

800-982-7290 901-255-3780

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

autobodynews.com / AUGUST 2021 AUTOBODY NEWS 27

Product Innovation with Ed Attanasio

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

Tradiebot: New Collision Repair Training Software An Australian-based advanced soft- all over the planet, Tradiebot is suc- Simulators won’t replace inware company that develops immer- ceeding by helping people and or- structors and I-CAR probably isn’t sive technology solutions for training ganizations to perform a wide range going to hire robots to teach clasand informationwith delivery in theLedoux auto- of tasks―from applying primer to a ses―yet―but augmented reality is Gary motive and trade sectors has been fender all the way to plastic and me- here to stay because it’s effective getting rave reviews from students tal welding techniques. and easy to integrate into any traiand teachers worldwide. ning program. Tradiebot, founded three years Training on a virtual ago, develops cutting-edge systems system has proven to be using technology like augmented rehighly effective in many inality and virtualwith environments. Thedustries. Today, bus drivers Stacey Phillips se systems are integrated seamlessly can learn their routes via with automotive businesses such as augmented reality systems, auto body shops, car rebuilders/cusso your kids won’t be late to school, and doctors now tomizers and large collision repair Students and trainees can learn collision repair techniques practice on virtual patients centers. from their smartphones and other personal devices while in order to improve their The company has partnered with using Tradiebot skills and techniques. some key industry players including with Anderson Beth Rutter, Tradiebot’s di- Tradiebot can provide training universities, schools andMike government bodies to develop industrial innovati- rector of industry and customer en- for anyone who works in an auto on and digital transformation through gagement, North America, can see body shop, but currently its main foits training platforms. a future where schools or training cus is developing virtual reality pro With an enormous need for new facilities rely almost exclusively on grams to train entry-level refinish technicians, as well as augmented talent in the collision repair industry immersive training.

OE Shop Certification

Product Innovation

From the Desk of Mike Anderson

reality technical information systems and a robotic 3D printing headlight Repairbot. As the world enters the age of electric vehicles, Tradiebot is prepared to be on the cutting edge when it comes to all of the associated training that will be required. “We can use virtual training for anything you can imagine, and with all of the processes associated with EVs, our solutions are ideal,” Rutter said. “We can train someone in every aspect of this industry, including auto diagnostics, estimating, aluminum repair, plastic welding and OE repair procedure, in some cases. Our systems work especially well when techs are trained for repetitive tasks.” A 2019 study on the use of virtual reality (VR) training for soft skills by professional services from See Collision Repair Training, Page 42

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June CIECAST Explores Future of AI in the Collision Repair Industry by Chasidy Rae Sisk

Artificial intelligence (AI) isn’t just a vision for the future―it’s here now, and as it becomes more prevalent in the collision repair industry, auto body shops need to prepare to navigate its integration into various technologies, or risk being left behind. During the June CIECAST, “The Future of AI in the Collision Industry,” Driaan du Toit, vice president of business development at Solera, and Evan Davies, Solera’s chief technology officer, shared insights on the ways AI is currently used in the collision repair industry, as well as its future uses. “We all know the world has changed significantly over the past few years, and so have the vehicle and collision industries,” du Toit began. “Innovation is rapid, and consumer needs are requiring and driving rapid changes, including automation in the repair and claims processes.” The COVID-19 pandemic impacted collision repair, even as the

industry’s dynamic has been altered by increased vehicle complexity, including ADAS, autonomous vehicles and electric vehicles. All these changes require body shops to have differently qualified staff and cali-

a collision repair industry ripe for AI, du Toit believes. The digital experience is convenient and fast for policyholders, resulting in predictable outcomes. For insurers, AI-assisted decisions aid with early deter-

bration equipment and capabilities, du Toit noted. “Body shops and insurers must ensure accurate and safe repairs, according to standards, and these repairs, procedures and standards are increasing as equipment becomes more complex on a day-to-day basis,” he said. Technological advances create

mination of severity and accurate, consistent assessments, while shops using AI-assisted tasks increase billable hours and deliver better customer service. “Differentiation is key to survival for body shops,” du Toit said. Consumers are ready to adopt AI in the claims process. According to research conducted by Coleman

FORD

Parks and commissioned by Solera, 72% of consumers desire a fully automated AI claims and repair experience, while 83% would trust automotive claims driven by AI. More than three-quarters of consumers would favor body shops offering more digital channels to quote, book and track repairs. “The consumer demand is relentless […] Automated and digitized workflows is no longer a wish for the consumer of the industry, but reality and actively being utilized today,” du Toit said. “And this data is a strong indication the market is keen to embrace a modern AI driven claims workflow.” Body shops benefit from digital adoption with faster cycle times, improved productivity and better customer service. According to du Toit, AI-driven processes also “drive efficiency and higher margins. Shops are increasingly pressured to have skills and capabilities to deal with more complex repairs and consumer demands towards automation. “The main benefits body shops

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can attain through implementing AI-driven technology in their businesses are faster cycle times across the repair process, as well as enhanced customer communications,” du Toit said. “Shops also enjoy productivity improvements because AI guides technicians through the appropriate repair procedures and minimizes the requirement for researching appropriate procedures. It helps employees in a body shop do the right thing without having to spend hours figuring out what that right thing is.” Alluding to the lack of skilled technicians entering the collision industry, du Toit pointed out AI-driven technology “lessens the burden for experience and knowledge by providing appropriate repair procedures and data for verification and guidance. Technology helps make the decisions and allows the technician to focus more on the execution of the repair. The end goal for the body shop is to repair more vehicles and to be more efficient in doing so. “My guidance to body shops and MSOs is to embrace this technology today, or face the danger of being left behind.”

du Toit examined how Computer Vision enables photo estimating in the claims process, providing an opportunity to bring speed and consistency to the damage estimating process through scalable technology that can be trusted. An automated line-by-line estimate can be generated within a few minutes after photos of the damaged vehicle are submitted. Machine learning detects damages from images, removing subjectivity and increasing consistency. Insurers use AI technology to “enhance the decision making at first notification of loss in terms of triage, ensuring that total losses do not enter the repair workflow,” du Toit said. “The most relevant benefit for a body shop appraiser is the ability to go to the intake yard, take photos and obtain a line-by-line, detailed estimate in less than three minutes, a significant reduction in the time and skills required by a repair shop appraiser to complete and submit an estimate, taking less than 10 minutes on average.” du Toit recommends using AI “to validate and justify the appraisal already received from the insur-

er to make sure you’re not missing any actions, procedures or labor times. This will significantly reduce cost to deliver against the ‘new normal’ whilst driving significantly improved customer experience and customer satisfaction ratings. Body shops want to repair more vehicles, and by implementing this technology, you’ll have that opportunity. “The benefits for body shops and MSOs are vast,” du Toit added, suggesting a digital platform with enhanced automation, which allows for seamless interaction between all parties, is “the holy grail” and leads to accurate, consistent outcomes. “Body shops and MSOs that embrace this in their processes will most certainly lead and probably win this race,” he said. Looking at next-generation AI, Davies explained the objective is “to automate the claims management process as much as we can, and to do so in the appropriate way, by using advanced AI algorithms […] which allow us to enable human-level decision making and provide insights and information that can predict and project the direction of where a claim

should go. By doing so, we can increase the efficiency and accuracy of the claims workflow process.” The meta data collected through Computer Vision flows into the decision-making process of how to best create a dynamic workflow based on consumer needs and behaviors, which can be further augmented with more information about the vehicle itself. “Advanced AI algorithms allow shops and insurers to utilize information obtained during the claim initiation to flow into the decision-making process to create a dynamic workflow,” Davies said. “The outcome of AI across its entire life cycle will result in increased renewals, increased cash out settlements, reduced leakage, improved margins, auto authorization, increased straight through processing and claims auditing.” AI assists shops in determining the way to “best understand how to provide that decision-making for the best outcome of our consumers, our insurers and the body shop in that entire life cycle itself,” Davies said, as he discussed collision repair industry trending towards EVs and See June CIECAST, Page 42

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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.

From the Desk of Mike Anderson with Mike Anderson

Use Tech to Kick ‘Timesuckers’ Out of Your Collision Repair Shop I was writing an email to one of my collision repair clients recently, and used Google to try to find a different term for “waste of time.” One of the results that popped up was “timesucker,” defined as “an activity to which one devotes a lot of time that might be better or more productively spent doing other things.” Spending time on something that doesn’t create value for you. There’s actually a noun for that. Timesucker. Who’da thunk? That got me thinking about some of the things in the collision repair industry that are timesuckers, taking up a lot of time for auto body shops. I was emailing the client because I’d been looking at some changes I’ve found in what the average collision repair business is spending on “SGA wages.” SGA stands for sales and general administration. Those are all the folks in your business who aren’t actually working on cars. Their wages are sometimes referred to as “non-productive employees,” not because they aren’t doing important work, but to separate it from the wages of technicians and those actually producing repairs. I knew from working with my 20 groups and private clients that several years ago, an average collision repair facility’s SGA wages were hovering around 10% of total gross sales, on average. From what I’m seeing now, that average has increased to between 13% and 14%. For example, a shop with $3 million in annual sales had been spending $300,000 in administrative wages, not including benefits; today, that number is closer to $390,000. That is a huge increase. I will admit the sample size I’m using to extract this data isn’t large. But regardless of the actual numbers, it’s no secret administrative costs in the collision repair industry have risen. You’re probably as aware of the reasons for that as I am. Some of it could be because insurance companies have shifted more and more

of their administrative tasks over to shops, both DRP and non-DRP. Another reason: It requires more administrative time just to research OEM repair procedures. And there are more administrative tasks involved in delivering an exceptional

customer service experience. And increases in labor rates generally haven’t kept up, so SGA wages continue to rise as a percentage of gross sales. So what should a shop owner do? Try to reduce SGA staff? It’s very difficult to try to get employees to do more with less. It just leads to stress and burnout for everybody. So what you really need to figure out is where the timesuckers are in your shop. What are things that require time that could be better spent on things that add more value? What is your team doing manually now that could be automated, that could be made easier using technology? A good place to start―I challenge the auto body shops I work with to take a new look at their management system. According to our “Who Pays for What?” surveys, more than 90% of shops are using a management system. But when was the last time you contacted the supplier of your management system and said, “Can I get some update training on this? Can you help me discover how to automate more of the things we do?” For example: Maybe you’re still calling customers to remind them of their appointment the next day. Could your system automatically send those customers a text mes-

32 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

sage reminder about it rather than your staff having to call? Maybe you’re calling potential customers who don’t schedule a repair right after an estimate. Is there a way to automate a text or email follow-up instead? When I work with a collision repair business on SGA wages, I like to start with a big easel pad or white board and ask them to write down everything they do manually so we can start figuring out if there on things on that list their management system will do for them. Ask your system provider: Are there ways I can use your software to do this task? That’s being proactive instead of reactive. Think about your parts processes, for example. Does your management system automatically show you the status of all parts, or do you have to chase this down?

If you have a designated parts person, there’s a chance he or she is spending up to half of their administrative time inputting parts invoices into the system. Does the system allow you to import a parts invoice from a vendor so you don’t have to enter it yourself? Bingo, you just knocked off 15 to 20 timesucker hours a week. How about rental car updates? Are you doing this manually, or can your management system update the Enterprise Entegral system automatically, for example? It all comes down to working smarter, not harder. In almost every collision repair business, there are timesuckers that could be eliminated using technology.

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 33 6/30/21 1:56 PM

Strategies to Help Auto Body Shops Navigate the Semiconductor Microchip Shortage by Chasidy Rae Sisk

The global semiconductor microchip shortage has been impacting vehicle manufacturing for the past year, but as the shortage persists, some experts anticipate its effects could be felt by the collision and automotive repair industries in the second half of 2021, potentially causing delays in cycle time as replacement parts become less available. Although collision repairers cannot control disruptions in supply, Jade Terreberry, director of dealer sales analytics at Cox Automotive, offered “7 Strategies for Navigating the Chip Shortage” during a recent educational webinar, presented by Autotrader and Automotive News’ PowerTraining. Moderator Terry Kosdrosky, audience engagement and social media editor for Automotive News, welcomed attendees and introduced Terreberry, who promised to identify “opportunities in areas where you can focus in the coming months to drive strategy, precision and accura-

cy to meet your goals. We’re going our businesses[…] We’re going to to cover seven very specific strate- talk about driving our business into gies, but the message is bigger than the future.” Before exploring the strategies, that.” Identifying the cause of the Terreberry emphasized the impormicrochip shortage as “continued tance of auto body shop owners unaftershocks of the pandemic,” Terre- derstanding the market, where their berry said, “A year ago, we couldn’t business is today and where they say how big this supply and demand want to be in the future. imbalance situation would Shops only want three become, but we also know things: to make more monthis industry is tough, and ey, to sell more orders and it’s gritty, and it’s smart, to create loyal, lifetime and we always use technolcustomers, and every acogy to change, adjust and tion taken by the business really catapult us into the should be designed to drive future. those direct outcomes. Jade Terreberry “If you think about the It’s easy to “get caught disruptions [in the past] that creat- up in a lot of the minutiae of feeling ed global supply chain issues, we like we are doing things to move the always make it through,” Terreber- needle within our business, but if we ry said. “Not only do we make it can’t measure how it drives those dithrough---in this industry, disrup- rect outcomes, we cannot be focused tion is truly the catalyst that helps on it today,” Terreberry said. “We us change and find better ways to have to stay focused on our goals.” be more efficient and smarter to Acknowledging the disruption meet our consumers’ needs in better varies by industry segment, Terreways to ensure that we have a multi- berry insisted each impacted segpronged revenue stream approach to ment requires a specific strategy.

“We have to be efficient with the dollars we spend, we have to be extraordinarily careful and we have to understand what’s working and what’s not,” she said. “Ultimately, the market is different by the day, and consumer demand is also different. We know that these supply chain constraints are out of our control, but we have to focus on some of the things that are in our control for us to be able to close the gap and just focus on our market share. Supply chain constraints are out of our control, but how we handle them isn’t.” Terreberry offered several strategies for dealing with the microchip shortage that body shops may find useful. “Not all personalization is created equal. You cannot be everywhere all the time. This is quality over quantity messaging,” she said. “We believe our clients understand data, want to use data and want to be as efficient as they possibly can. So, we really started focusing on growing this audience. “Our biggest competitive dif-

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ferentiator is the amount of data we have and our ability to […] be able to translate that into a consumer experience, and into consumer advertising that captures those folks at the right place in the funnel, drives them back to our experiences, gives them the ability to navigate through those and then gives you the ability to work quality leads and spend your time doing quality things is more important than ever.” Shops that want to make more sales, increase profitability and establish a loyal customer base should “measure everything to be efficient with your time and your money,” Terreberry said. This means “keeping your funnels full, but using technology to your advantage and being laser-focused. For those of you that have used reporting, whether that’s in your CRM or whether that is in Envision, or within a third-party data aggregator’s tools to understand what’s working or what not, I want to challenge you to take that one step further, because of the current market conditions. “And that one step further means using the data that exists there

to look in the rearview mirror, to tell a performance story or to measure an ROI equation,” she said. “Today, you have to look at so many different things. If you’re not using that data to decision make, promote, optimize and determine where to spend your time, you’re not using the data the right way. But your competition is using it correctly, and that’s how they’re finding that edge on you, day by day.” Collision repair facilities, service shops and dealerships should also “be nimble and be aware. Consumers don’t stop wanting or needing their cars when there’s a chip shortage,” Terreberry said. “Use the full picture of everything at your fingertips to make decisions. Be laser-focused with your time, and plan your work.” Terreberry offered additional advice to dealerships related to streamlining inventory acquisition to disposal strategy, reimagining certified pre-owned segments and extending slow-moving inventory beyond the immediate market. She also discussed the importance of focusing on fixed ops, not-

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ing, “Fixed operations [is] the most stable segment of revenue that you can have within your organization today. We all know people just started using their vehicles more. We expect to see more and more people return to the office place, but right now, 43% of consumers are saying that they plan to put more miles on their cars on 2021 than they did in the years before the pandemic, and 41% of consumers have told us that they have summer plans and are planning on using their vehicles to get there, versus other methods of transportation. “And so, we’re seeing this steady increase of consumers visiting [the Kelley Blue Book] Service and Repair Guide. Just this year alone, over 9 million service shoppers have gone to the service and repair experience, indicating that people are not only hitting the roads again, but that they have a different expectation and a different way that they want to interact than they ever had before.” Terreberry recommended businesses set specific goals around each strategy that it chooses to imple-

ment, but she also stressed the importance of considering conversion. “Are you converting consumers into transactions?” she asked. “Sadly, not everybody is going to succeed, but ultimately, the market share and measurement of your success in today’s environment from a multi-pronged profitability perspective is what is going to help you navigate through […] database decisions that you can make to streamline in those areas and start moving the needle, and to streamline our processes and to train our people on how to meet consumers where they want to meet us with the experience that they want to have, because if you don’t, somebody else will.”

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Industry Insight

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

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GM Scales Back Post-Crash Inspections Requirement for Collision Repair Shops

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General Motors recently rolled out without any structural repair.” subject to damage” for which further a significant overhaul of the vehi One exception: GM wants “ev- inspections are needed. For each of these, the new doccle inspections it calls on auto body ery seat belt of every [GM] vehicle with Ed Attanasio shops to perform post-collision, say- inspected every time” a vehicle is in ument lists different steps necessary ing the changes in no way compro- for repairs, “regardless of the [crash] based on whether there has been an mise safety. severity level or what’s being done” airbag or pretensioner deployment. The automaker previously had to the vehicle. If a front airbag has deployed, for a long list of such inspections it required “after any collision,” including inspection ofwith the steering wheel Ed Attanasio and column, the instrument panel mounting points and brackets and seat mounting points. It now says most inspections are necessary only after “any collision that exceeds minor outer body panel cosmetic distortion.” This with Ed Attanasio eliminates the need for some “pretty invasive” steps, said John Eck, General Motors now says most post-crash safety inspections are necessary only after “any collision that exceeds minor outer body panel cosmetic distortion.” collision manager for GM, in a webinar about the changes, like “re- When damage is more than example, the steering wheel must moving the headliner or…dash, or “minor outer body panel cosmet- be replaced; if not deployed, a visumeasuring a steering when ic distortion,” GM has a list of the al inspection of the module cover is withcolumn, Ed Attanasio all you’re doing is replacing a fascia “unrelated components that could be sufficient, provided no “deformation,

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distortion or indentations” are seen. There is also additional information from GM’s engineers about many of the inspections, such as what to look for during visual inspections of different components. Given only a seat belt inspection is required in the event of collision repairs that involve only “minor outer body panel cosmetic distortion,” Eck was asked to clarify what types of repairs that might include. “If you’re looking at just the front quarter panel, no mounting brackets or no structural support brackets are damaged,” Eck cited as an example. “Or a fascia that might be cracked but the bumper bars aren’t damaged and there’s no airbag deployment. Or that side mirror that comes off backing out of a garage.” A dime-sized dent on a rocker panel? “A rocker panel is not a cosmetic outer body panel,” Eck said, mean-

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ing safety inspections must be done. The document applies to all GM vehicles, though it has been integrated into GM’s online repair procedures only for 2021 and 2022 models so far. Use the search term “inspection” to find the document in GM’s online system for those vehicles. Until it is integrated with the repair information for older vehicles, it can be downloaded at the www.genuineGMparts.com website. Eck emphasized the inspection document in no way replaces any of the needed vehicle repair procedures such as scanning or calibrations. “This is simply talking about what you should be inspecting during the repair process,” he said. “It is only part of the process. It doesn’t replace any of the other requirements we may have.” Eck was also asked about the issue of insurers refusing to pay for the post-crash inspections GM calls for. “It’s a touchy issue for me as an OEM. We’re not the ones paying the bill,” Eck said. “The repairers are the ones doing the work. Our job is to provide all the content and all the

information necessary for the repairer to say, ‘This is what I need to do to repair the vehicle properly, safely, and to make sure it’s ready to go back on the road.’ And he should get paid for the work that is necessary for that to happen. But it’s hard for us as an OEM to step in the middle of a conversation about a transaction that is happening between the repairer and the insurer.” He said he hopes insurers see the revised post-crash inspections as “a reasonable approach without compromising safety.” He also said vehicles continue to change, and the excuse of “Well, we’ve never paid for that in the past,” shouldn’t apply. “It’s what should we be doing now with what we have and what we know and what these vehicles are expected to do and perform relative to protecting the occupants inside and [pedestrians] outside the vehicle,” Eck said. GM acknowledged last year that among 17 automakers, it and Subaru were the only two that required extensive inspections following any collision, regardless of severity.

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Average New-Vehicle Price Rises $2,000 from Last Year, Hits All-Time Record High for May The estimated average transaction price for a light vehicle in the U.S. was $41,263 in May 2021, according to the analysts at Kelley Blue Book. New-vehicle prices increased $2,125, up 5.4%, from May 2020, while increasing $493, up 1.2%, from April 2021. “Last month’s average transaction price performance highlights an all-time high in year-overyear growth for the month of May,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. “Many manufacturers reported year-over-year gains in average transaction prices. The largest increase came from Mitsubishi, up 12% from this time last year.” As one of the most affordable manufacturers with the lowest average transaction price in May, Mitsubishi reported recovery within the retail space moving into the second quarter of the year. A majority of the models within the Mitsubishi lineup experienced yearover-year average transaction price increases in May 2021.

The latest Outlander and Outlander PHEV are Mitsubishi’s highest-priced vehicles, with MSRPs starting at $25,795 for the 2022 Outlander and $36,295 for the 2021 Outlander PHEV. Overall, the Outlander model line saw sales more than double for May 2021 when compared to May 2020. The inclusion of the PHEV trim level within the model lineup aided sales and pricing gains. Despite the large gap in average transaction prices for luxury and non-luxury segments in May 2021, non-luxury vehicles had a larger year-over-year price increase at 4.9%, up $1,805, while luxury vehicles climbed 2.9%, or $1,597, from this time last year. Standard full-size SUVs and pickup trucks contributed to the growth among non-luxury segments. The third and fourth highest-priced models within the segment include the GMC Yukon XL ($79,695) and Yukon ($77,031), both priced substantially above the industry and segment average. Source: Kelley Blue Book

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Art, Innovation and Car Design Collide in the Life of Michael Santoro Landing a job as a car designer with Chrysler at 21 was unheard of. I think everyone can agree a well-de- As the new kid on the team, Santoro signed car is a piece of art, like a Do- was able to bring a young and fresh natello or a Rodin. perspective to everything he worked While it’s true automobiles on for the carmaker. are created to transport people and “I knew that this was a great opthings, that doesn’t devalue their portunity and a dream job,” he said. design or aesthetic appeal, which is “You have a better chance of playing why some call them “sculpture in in the NFL than you do becoming a motion.” professional car designer in the United States, so I was A vehicle starts out as excited to get a chance.” a series of illustrations that Santoro was able to see eventually become a clay sculpture. Throughout the a car design team in action process, a wide variety of and learned as much as he sometimes conflicting pricould. orities must be considered Michael Santoro “Within a given studio, when creating a car design. of San Diego, CA, is each designer creates his or These include the needs of a former automo- her own proposal. You’re tive designer and the driver and passengers, inventor competing with your cowho now the ability for the design teaches car design workers for the opportunity for your design to go into to be manufactured and the and oversees his hopes and dreams of the de- company MacCase, production.” the creators of the signer who created it. Most production proApple-specific case Michael Santoro of grams are on four-year cymarket San Diego, CA, is a forcles. Once the vehicle is in mer automotive designer who now production, they will normally do teaches car design. He founded and a facelift every two years, at which oversees a company making Apple point they will do things like tweakaccessories, which has met with ing the front and rear fascia or addhuge success, and is also a high- ing new wheel options. ly-respected artist known for paint- For a car’s exterior, designers ings of his favorite Formula One work with industrial sculptors to drivers, including Niki Lauda and create full size models in clay over Ayrton Senna. a wood and foam structure. Once A native of New York City, San- the model is complete, it’s presented toro graduated from the world-re- to upper management, who choose nowned High School of Art & De- from the various proposals presentsign, where he was a member of ed. the first-ever industrial design high In this case, it was Chrysler school program in the country. CEO Lee Iacocca and Vice Chair After graduating from Pratt In- man Bob Lutz, among others. For stitute with a bachelor’s degree in the Cirrus/Stratus program, eight industrial design, Santoro was ac- full-size clay models were done. The cepted as the first-ever post-gradu- board liked Santoro’s design for the ate design intern at Chrysler Corpo- Cirrus and it went into production, ration where, upon completion, he eventually chosen as the 1995 Car of received an offer to join the staff. the Year. Santoro spent six years as an Did Santoro get a bonus when automotive designer at Chrysler, he and his team received the highly where he created the groundbreak- prestigious award? ing cab-forward exterior design “No, but I got to see my design of the 1995 Car of the Year, the made real and put into the world. first-generation Chrysler Cirrus and That’s a happiness no one can ever its sister vehicle, the Dodge Stratus. take away.” Before leaving Chrysler, Santoro When a car is created, a series penned the 1996-2006 Jeep Wran- of safety features are integrated into gler, bringing it back to its iconic the design with a goal of protecting roots while pushing it forward into the inhabitants while still looking cool. the new century. by Ed Attanasio

38 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

“Much of what we made was predicated on how to mass produce it and whether or not it was safe,” he said. “We were always made aware of it and communicated with engineering on a regular basis. “We also had to look at any design from a collision repair perspective. When the car gets in a wreck, how will the technician be able to fix it? Will they have to remove a lot of parts to do the job? What are the replacement costs? These are the things that any design team has to keep in mind all the time.” Fewer parts mean easier and less complex repairs while saving money, Santoro said. “We concentrated on using fewer parts with a focus on things like fit and finish, as well as making everything lighter and more aerodynamic. If a bumper assembly consists

including the Lamborghini Jota show car. They made a grand total of 14 Vectors with 12 still in existence, which means you might see one occasionally at a SEMA Show, for example. In 1999, Santoro took his skills designing cars to create the MacCase, the company that would produce the world’s first Apple-specific case. It was an instant success and lauded for its originality and custom fit. MacCase now features the Premium Leather Collection and ships to Apple users worldwide. Santoro’s painting career began when he was only 17 in New York City. “I did a drawing and took it to a local gallery called l’art et l’automobile and the owner, Jacques Vaucher, encouraged me to do more,” he said. “That piece sold quickly and pretty soon Jacques was asking for more art. It was pretty cool to be a successful artist in New York as a teenager!” Santoro’s career as a car designer has been written about in publications like AutoWeek, Automobile, Road & Track, The Detroit Free Press and Car Styling. Santoro is also well-known for creating amazing exteriors He was also featured in a for race cars New York Times article in of nine parts as opposed to 20, for 1994, “The Designers Who Saved example, the replacement cost will Chrysler.” be lower and the repair logically will Santoro has also been a part of be easier when it goes into the body student design reviews at the Colshop.” lege for Creative Studies in Detroit, After six years with Chrysler, MI, and Art Center College of DeSantoro returned home to New York sign in Pasadena, CA, as well teachCity, where he went from designing ing transportation design at Pratt Inautomobiles to airplanes, as a con- stitute in New York City. sulting designer for Walter Dorwin He currently teaches two coursTeague, America’s oldest design es, Introduction to Automotive Deconsultancy. There he worked on sign, Professional Techniques, Tips, numerous programs including cre- Tricks and Secrets for the Aspiring ating conceptual design interiors for Car Designer and Automotive DeBoeing Aerospace and the produc- sign Level 2, both of which are curtion interior for the Gulfstream G5 rently available on Udemy.com. aircraft. After two years in that position, Santoro returned to automotive design work, as a consultant working Don’t Miss the Weekly Industry on the Vector M12 supercar and NEWS Your Shop Needs. Vector M12 “American Anthem” Sign Up Free Today! show car shown at the North Ameriwww.autobodynews.com can International Auto Show. Additional projects followed,

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Americans Cut Driving Nearly in Half in Early Stage of COVID Crisis The COVID-19 pandemic and associated restrictions in the spring of 2020, such as stay-at-home orders, led to a drastic drop in U.S. road travel and a sharp increase in the number of people who chose to stay home all day. While the dramatic change in traffic patterns was widely noted last year, new research from the AAA Foundation for Traffic Safety’s New American Driving Survey (2020) provides compelling month-by-month data that examines the types of trips and the characteristics of the people who altered their driving habits. According to the research, the average number of all daily personal car trips plunged 45% in April 2020 and 40% for trips by all modes of transportation combined. The dip in travel moderated later in the year but remained below 2019 levels. “The COVID-19 pandemic has had a profound impact on our commute habits and patterns in the United States,” said Dr. David Yang, executive director of the AAA Foundation for Traffic Safety. “Findings

based on our survey data provided some contextual information to understand better how this unfortunate event has affected the way we travel.” Daily trips for all modes of transportation fell from an average of 3.7 trips per day in 2019 to 2.2 trips in April 2020, before slightly recovering. After abruptly decreasing in April 2020, daily trips by U.S. residents rebounded somewhat in May and June and then remained at approximately 20% to 25% below their 2019 levels during the second half of 2020. The survey results show early in the pandemic, reductions in travel were most substantial among teens and young adults (ages 16–24) and among those ages 65 and older. But later in 2020, reductions in travel were more uniform across various age groups. Other key findings: Daily Car trips: (as a driver or passenger) fell from 3.2 pre-pandemic

to 1.8 in April 2020, before rebounding slightly to 2.6 trips for the rest of the time period. All travel by any mode: Daily trips in April 2020 by people living in urban areas dropped 42%, versus 25% for their rural counterparts, before leveling off to a 20% to 30% reduction in both groups for the rest of the survey period. Travel by transit, taxi or rideshare: The proportion of people who reported making any trips by transit, taxi or rideshare plummeted from 5.5% pre-pandemic to 1.7% in April of 2020, before leveling off at approximately 2.4% for the remainder of the year. Commuter Travel: Work-related travel by all transportation modes dropped by 40% in April 2020, likely reflecting a mix of layoffs, job losses and telecommuting. Commuting trips made by workers on days when they worked decreased by approximately 22% relative to pre-pandemic levels

as well. In the following months, commuting trips returned to approximately 26% below pre-pandemic levels among the population as a whole, likely due to increases in the proportion of Americans who were working. Commuting remained approximately 25% below pre-pandemic levels among workers on days when they worked, indicative of continued widespread telecommuting. Staying At Home: The percentage of the population who remained in the same place all day fluctuated between 9% and 14% before the pandemic but increased to 26% in April 2020, before stabilizing at levels slightly higher than those before the pandemic for the remainder of the year. The proportion of respondents who stayed in the same place all day quadrupled among those with the highest levels of education (from 5% in the second half of 2019 to 21% in April 2020), whereas it doubled (from 15% to 30%) among those who did not attend college.

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Marital Status: The percentage of married people staying home nearly tripled from 8% in 2019 to 22% in April 2020, versus 12% and 29% for unmarried people. The numbers for both groups remained elevated over pre-pandemic levels for the remainder of the year. Despite fewer cars on the road and more people staying home, the National Highway Traffic Safety Administration (NHTSA) recently estimated 38,680 people died in motor vehicle traffic crashes in 2020---the

largest projected number of fatalities since 2007. It is an increase of about 7.2% over 2019. “It’s counterintuitive to see the rate of traffic deaths spike when so many of us were driving less often,” said Jake Nelson, AAA’s director of traffic safety advocacy. “As the U.S. climbs out of the COVID-19 pandemic, highway safety officials will need to double down on curbing speeding, substance-impaired driving and failure to buckle up.” Source: AAA

ASE.com Launches Spanish Language Option The National Institute for Automotive Service Excellence (ASE) has added a new Spanish language option to its ASE.com website. By clicking on “English” in the lower right corner of the homepage, visitors to ASE.com can select “Español” as their preferred language. The Spanish-language option features the same easy navigation and helpful information as the

English version, including how to prepare for, earn and maintain ASE certification. Earlier this year, ASE announced it had expanded the number of test offerings with Spanish-language translations to include all of the auto series certifications tests (A1-A8), as well as the G1 auto maintenance and light repair certification test. Source: ASE

GM Recalls 410,000 Trucks with Dangerous Airbag Inflators by David A. Wood, CarComplaints.com

More than 410,000 Chevrolet and GMC trucks are recalled because the roof-rail airbag inflators could rupture. Some of the trucks were recalled in December 2020 for the same problem, and this latest recall supersedes the previous recall. Included in the recall are 2015-2016 GMC Sierra 1500, 2500 and 3500 and Chevrolet Silverado 1500, 2500 and 3500 trucks that may have roof-rail airbag inflator end caps that may detach from the inflators. It’s also possible the airbag inflator sidewalls may rupture. The roof-rail airbag inflators are located above the headliners and may contain defects that cause the separations of the inflator end caps or splitting of the inflator sidewalls. The automaker says compressed gas will escape from the inflator, and the end cap or possibly other components can be launched into the vehicle and injure truck occupants.

GM says corrosion inside the inflator may occur from moisture because of how the supplier manufactured the inflators, and the problem can worsen in high temperatures. Three roof-rail inflators ruptured in 2015 Silverado trucks in June, one in Florida and two in Texas. The trucks weren’t occupied when the inflators exploded, and in all three cases the steel inflator sidewalls split open and released gas stored in the chambers. This was enough to convince General Motors to order the truck recall. General Motors dealers will replace both front roof-rail airbag modules. Interim owner recall letters are expected to be mailed Aug. 16, then truck owners will receive second notices when replacement parts are available. GMC Sierra and Chevrolet Silverado owners may contact GMC at 888-988-7267 or Chevrolet at 800-222-1020. GM’s recall reference number is N202324251.

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 41

Continued from Page 28

Collision Repair Training Price Waterhouse Coopers discovered when compared to traditional training methods―self-paced online learning and classroom education― VR simulations helped employees become more confident in their ability to perform their jobs, taught them faster and created a stronger emotional bond to training content. They compared the three main forms of learning―classroom, elearning and VR training―and found people retained the imparted information more effectively using VR. Tradiebot’s smart platforms can fast-track training and hiring, which is more valuable now than ever due to a lack of a skilled and experienced workforce in collision repair, for example. “The global manufacturing industry is undergoing a transformation with how work is to be done. We need to be smarter, faster and more agile to accommodate the rapid changes in market demand,” ac-

cording to a company press release. “Tradiebot is developing the technology to adapt, repair and rebuild. Our systems bring knowledge and mastery of skills to your fingertips with a tap on a touch screen. Design detail and sophisticated machines

to retain the information at approximately 90%,” Rutter said. “Since studies claim that people retain 5% of what we see one hour after it’s presented and roughly 30% after reading it, you can see that the in-

crease in retention is significant with VR.” Another big part of the Tradiebot approach revolves around the fact it’s done everything it can to make all of its training modules fun and engaging in order to create a comfort zone to promote learning. “When the user puts on their gear and jumps into the paint booth, they are intrigued, and once they realize that it’s fun, they are less anxious and more open to learning,” Rutter said. Will Tradiebot help get more young people interested in becoming collision repair professionals by making training easier, more hands-on and fun? “If you look at it, the collision repair industry doesn’t do a lot to attract new talent, by starting them out at minimum wage and in many cases, saddling them with major debt from student loans,” Rutter said. “But, if Tradiebot can get students interested in learning through full immersion and virtual reality, the future for this industry will get a much-needed boost with a fresh and skilled labor force.”

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Making learning fun and less stressful, Tradiebot will hopefully attract new skilled professionals into the body shop world as a result

will take the time and tedium out of even the most complex preparation and repair processes.” By using Tradiebot, job candidates can hit the ground running as opposed to learning on the job.

Continued from Page 31

June CIECAST AVs, which are “highly specialized vehicles that require special skills and information.” “Start embracing and implementing this technology,” du Toit said. “Body shops will be allowed to focus more on executing repairs and less on the administration around estimating in the future. There will be less need for skills and experience as many things will be driven by the machine. Insurers will adopt AI driven workflows, and this will be the new normal. “Don’t fight it; embrace it! Humans will always be required to teach the machine and verify its results, but the need will become less as the AI gets smarter. Human interaction will be more focused on the outliers and more complex and sophisticated processes. “The willingness to adopt and implement AI has increased significantly,” du Toit concluded. “The demand is real. The change is real. And it’s here today.” A replay of the June CIECAST is available online.

They’re able to absorb the data more quickly and remember it longer, as well as practice without experiencing anxiety. “By using our systems, students are able to see it, hear it and do it, and by doing all three, they are able

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Chrysler Top Ranked for EV Car-Shopping Experience

Cadillac SRX, Saab 9-4X Recalled Again for Toe Links by David A. Wood, CarComplaints.com

Stellantis NV’s Chrysler brand ranked highest in the 2021 Pied Piper Omnichannel PSI® for Electric Vehicles (EVs) Auto Industry Study. The study answered the question, “What happens when EV customers shop for a vehicle by first visiting the brand’s website or a dealership website, and then visiting a dealership in person?” BMW was ranked second of the 21 battery electric or plug-in hybrid EV brands evaluated, followed by BMW’s Mini brand. How customers shop completely changed in the late 2000s with widespread acceptance and use of smartphones. More recently, brands that traditionally relied only on in-person sales have embraced new online digital retail tools. For the auto industry this has meant the appearance of “Buy Now” or “Buy from Home” buttons on brand and dealer websites, along with other online digital retail tools like inventory search, payment calculator, trade-in value estimator, test-drive request and others. Source: Pied Piper Management Company

A General Motors rear toe-link recall has been issued a second time for 2010-2016 Cadillac SRX and 2011-2012 Saab 9-4X vehicles. More than 380,000 vehicles are recalled because the rear suspension toe-link adjusters may not have been tightened properly. Owners are warned to not drive their vehicles if they experience any of these warnings: • Service Traction Control message • Service Stabilitrak message • Stabilitrak warning light stays on or flashes intermittently • Service Rear Axle message • Chimes in combination with warning messages • Sway or wander while driving • Loud metallic or other unusual noise from the rear suspension • Off-center steering wheel • Uneven wear between the rear tires A customer who experiences these warnings should have the vehicle towed to a GM dealership. GM recalled 2010-2015 Ca-

dillac SRX and 2011-2012 Saab 9-4x vehicles in September 2014 because the jam nuts in the rear toe-link adjusters may not have been torqued to specification. GM dealers were told to inspect the toe links and increase the torque or replace the toe links if they were loose or damaged.

After the 2014 recall GM received reports of loose toe links in vehicles that had been repaired, so the automaker checked dealer repairs and determined some dealers had failed to follow instructions. GM revised the service procedures and also made them available to independent repair shops. GM further updated the service information in October 2020 to instruct technicians to always

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replace the toe links rather than adjusting them after an alignment or other service. Then in November 2020, the National Highway Traffic Safety Administration (NHTSA) opened an investigation into toe-link problems on 2010-2015 Cadillac SRX SUVs. At least nine SRX owners said the rear toe-link adjusters separated in vehicles that had been repaired during the recall. On June 7, NHTSA informed GM it had received additional toelink complaints and the problem was severe enough to conduct another recall. All the vehicles recalled in 2014 will need to be repaired again. Dealers will replace the adjustable toe links with non-adjustable toe links once owner recall letters are mailed Aug. 9. Cadillac SRX customers may call 800-458-8006 and Saab 9-4X customers may call 800-9559007.

Winston-Salem (800) 489-3534 (336) 725-3554 Fax Mon.-Fri. 8-5; Sat. 8-1 subarupartsws@flowauto.com www.flowsubaru.com

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 43

Automotive Recyclers Applaud Executive

Tesla Wanted $16,000 for a Simple $700 Model 3 Repair

The Automotive Recyclers Association (ARA) issued a statement July 14 in response an executive order signed by President Joe Biden on July 9 calling on the Federal Trade Commission (FTC) to institute rules to curb anti-competitive restrictions that limit consumers’ repair choices. The executive order includes dozens of specific initiatives, including a requirement the FTC undertake a rulemaking on repair and maintenance. “The ARA has been a member of the national Right to Repair Coalition for several years,” said ARA President Scott Robertson. “Consumers and the general public are supportive of this issue, and I am encouraged by the recognition it has received within our federal government.” ARA has met with the FTC on multiple occasions to discuss attempts by automobile manufacturers to push Recycled Original Equipment (ROE) parts out of the market with misinformation campaigns and barriers to consumer choice. Source: ARA

by Ameya Paleja, Interesting Engineering

How much does one pay for minor repairs for a Tesla car? As one Tesla owner found out, almost half of the vehicle price. After hitting some debris on the road that damaged his battery pack, the owner visited a Tesla service center, where he was handed a repair estimate of $16,000. Unable to foot that bill, the owner sought help from a non-authorized garage, which diagnosed and resolved the issue for $700. The standard Model 3 Tesla is rear-wheel drive, with an option to make it all-wheel drive. For users who exercise this option, the company puts a drive unit in the front, next to the battery pack. The cooling system runs through the car and connects to the battery pack through a nipple. For this Tesla owner, the debris resulted in the coolant leaking at the nipple of the battery pack. But since the nipple was molded outside the battery pack, which is not serviceable at a Tesla Service Center, they could only offer

replacement of the entire battery pack. This resulted in the quote shooting up to $16,000. Unfortunately for the owner, his insurance did not cover damages due to road debris, forcing him to look elsewhere.

He found help at Electrified Garage, which diagnosed the problem and found a simpler solution. They cut off the nipple and then threaded it back into the battery pack with a $15 brass fitting that can be found at any hardware store. They were able to fix the leak and charged the owner $700

for labor and their expertise. The real question is whether this is safe. Electrified Garages says, unlike internal combustion engines that generate a lot of heat, electric cars operate at temperatures well below 140 degrees. Most of the heat comes from the lithium-ion batteries, which they tested during the fix. Such instances reiterate the need to allow owners the Right to Repair, whether it be smartphones or smart cars. The increasing usage of technology has allowed companies to force subscriptions or channel after-sale services only through limited outlets, causing inconvenience and larger bills for device owners. This is set to change after President Biden is expected to allow Right to Repair in different sectors, beginning with agriculture. Interesting Engineering reached out to Tesla for their comments but hadn’t received a reply yet.

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44 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

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The Best U.S. Cities to Own an EV, According to Research by Steven Loveday, Inside EVs

Electric cars are becoming more and more popular, and that means some cities are racing to become more EV-friendly. AutoInsuranceQuote.com has put together an extensive EV study

to help determine which cities are the best---and worst---to own an electric car. Aside from ranking U.S. cities related to the benefits of EV ownership, the study also provides opinions and experiences from current electric car owners, a long list of

frequently asked questions and much more. There’s also a detailed description of the 10 best cities explaining precisely why they’re the best. Finally, the site ranks a total of 50 cities from best to worst when it comes to EV ownership.

The cities are ranked based on three specific metrics: charging stations per capita, local government EV incentives and cost of electricity. California is the only state with multiple cities on the list, which comes as no surprise. The study also notes the Midwest is the only region that doesn’t have a city in the top 10. The 10 best cities offer an average of 27 government incentives, and charging stations per capita range from 25 to 110. We should also probably mention a few of the worst cities to own an electric car, though you can visit the study to see the whole list and all of the details. At the No. 50 spot is Milwaukee, preceded by Jacksonville, FL, at 49, Detroit at 48, Houston at 47, and Cleveland at 46. The study includes a wealth of other information worth checking out.

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 45

Carmakers in North America Worst Hit by Semiconductor Shortage North American vehicle production has been the worst affected by the shortage in the supply of semiconductors, including for its high-profit, low-inventory vehicles, according to the latest research from AutoForecast Solutions. It comes at a time of very high demand for vehicles in a market rebounding from the Covid lockdown. The question is, how will leading vehicle makers in the region position themselves so that this does not happen again? Kicking off discussions at this week’s Finished Vehicle Logistics North America Live conference, Joe McCabe, president and CEO, AutoForecast Solutions (AFS), said that the impact of the semiconductor shortage on production volumes globally was forecast to equal 4.57m units this year, with 285 plants impacted around the world (as of June 15). In North America, the forecast for vehicle production before the semiconductor crisis came to light was around 15.9m, according to AFS data. That has been revised down to 15.25m by AFS, meaning a significant amount of production has been lost. The production shortfall is being exacerbated by other issues at the moment, including airfreight under-capacity and vessel congestion at the West Coast ports in the US, all of which is impacting critical part supply for the Asian-based OEMs in North America. Impact on segments McCabe said the crossover vehicle (CUV) segment in North America was taking the brunt of the impact, with 48% of production affected by the semiconductor shortage. Crossovers are defined as those SUVs that share a platform with a passen-

ger car rather than a pickup truck. Around 16% of pick-up truck and large SUV production is also affected, which is hitting carmaker bottom lines quite hard as they are the highest profit vehicles, but these are all deemed recoverable in terms of production because vehicle makers do not want to lose such high value sales and will now find any means of getting them on the lots rather than sitting in storage waiting for microchips. That includes building the models with fewer chips. “They are building [pick-up] trucks without features like start/ stop and are going to analogue for the speedometers,” said McCabe. “They are [taking] out stuff that isn’t life-saving and pulling the content out just to get them on the market. You will see much more of that – reconfiguring the product to make sure they have more on the lots because the biggest issue is the sparsity of product on the dealer lots.” That point was backed up with direct input from one of the dealerships in the US. Brion Stapp, dealer principal, at Stapp Interstate Toyota, said that inventory was at its lowest point in decades and that even though vehicle haulers were making multiple calls a week at his dealership, more than 40% of the dealership’s supply for the next three months is presold. “As those trucks roll in on a daily basis we unload them and put them right into the sold inventory for our customers to take delivery,” he said. Whatever it takes, North American vehicle makers are will be getting those higher end vehicles on the lots and recovery in production and sales for this segment is expected

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by the third quarter of this year, according AFS, while recovery for other segments it not expected until 2022. The passenger vehicles, or sedan, segment has been less affected, though a sizeable 28% of production is delayed. However, recovering passenger car production is not a priority for OEMs in North America. The profit margin is much lower and new sedan sales have been declining for some years. A lot of production in this segment has either been cut completely or moved offshore to markets where they are still selling slightly better. Future proofing supply Now the vehicle makers are looking at what they can do so that this shortage never affects them as badly again. According to McCabe there will be a lot more vertical integration, with carmakers setting up direct partnerships with the semiconductor manufacturers, as Ford did in the past with the aluminium industry to secure its supply base.

There will also be greater investment by smaller-scale semiconductor manufacturers, according to McCabe. “More small-scale chip players will try to scale up and take advantage of government money because it is now an issue of national security,” he said. “They will take the billions and build more plants.” As reported earlier, the Biden Administration in the US has signed in an executive order designed to fortify US supply chains, including those supporting the production of semiconductors. Currently only 12% of global semiconductor manufacturing is in the US. In March Biden said the new administration in the White House would work with industrial leaders to identify solutions to the current shortfall. It is going to cost $37 billion in the short term to install the required capacity to satisfy US demand for semiconductors onshore, something the president said the government would be pushing for through House and Senate. Finish It Like a Masterpiece with

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*Kia Genuine replacement parts sold but not installed by an Authorized Kia Dealer are covered for 12 months from purchase date, regardless of mileage, for the part only, and any labor charge is the consumer’s responsibility. autobodynews.com / AUGUST 2021 AUTOBODY NEWS 47

AAPEX 2021 Opens Nominations

LKQ Corporation’s Elitek® Vehicle Services Expands into Remote Automotive Diagnostics and Programming

AAPEX is now accepting nominations for the second annual Shop Owner of the Year, Service Advisor of the Year and Technician of the Year awards. The awards recognize and elevate the essential services that auto repair professionals provide to keep the world’s 1.4 billion vehicles on the road. Nominations are due Sept. 1 and should be submitted online at www.aapexshow.com/serviceawards AAPEX 2021 will take place Nov. 2-4 at the Sands Expo and Caesars Forum Conference Center in Las Vegas. An independent panel of shop owners and industry leaders will select the award recipients. AAPEX will announce and honor recipients of the three prestigious awards Nov. 2, during the Keynote Session at this year’s in-person event. The AAPEX Service and Repair Awards were established in 2020. Source: AAPEX

Effective June 22, Elitek Vehicle Services, LKQ’s diagnostic services business, is expanding beyond onsite mobile diagnostics and repair to also include remote automotive diagnostics and remote programming. Repair facilities can now call one company, Elitek, to service all their diagnostic service needs. Since 2019, LKQ’s Elite Electronics and VeTech Automotive Electronics brands, now branded Elitek Vehicle Services, has grown to become the largest independent provider of mobile, on-site vehicle services to automotive collision repairers, mechanical repairers and national fleets in the U.S. With the addition of remote diagnostics, Elitek can provide shops with a seamless, end-to-end process and value proposition. Remote diagnostics: Shop technicians can plug in an OBDII device that remotely connects the vehicle to Elitek’s call center. The technician, with support from a centralized Elitek diagnostician, conducts the diagnostic scan(s), produces a scan report, enables remote programming where applicable and invoices for the

service. Mobile diagnostics: If additional onsite services are required, including ADAS calibration or mechanical, Elitek’s mobile service can be deployed to complete the repair, using an array of OEM software, tools and certified technicians. Increasing vehicle technology leads to more complex repairs, and Elitek is uniquely positioned to partner with the repair community to diagnose, repair and calibrate vehicle electronics, including ADAS systems. The combination of remote and mobile diagnostic services offerings puts Elitek a step ahead of the competition and serves customers better than ever with mechanical, AC service 1234YF, module programming, electrical repairs and an array of diagnostic services. Owning a full range of OEM diagnostic tools and offering these numerous services to automotive repair facilities helps improve a shop’s cycle times, reduces rental terms and improves the customer service experience, for both the repair shop and the vehicle owner.

“With the formation of Elitek, LKQ now provides the most comprehensive diagnostic services in the repair industry,” said Terry Fortner, LKQ’s North America vice president of sales and marketing. “Elitek is the premier provider of both remote and mobile diagnostic services. This expanded offering allows us to be more responsive to our customers, including those outside of our current mobile servicing locations.” “Our goal is to continue to provide superior customer service,” said Don Smith, director of Elitek’s Remote Division. “With the addition of remote services, we can be more responsive to a broader range of customers. And with LKQ’s Promise of Calibration, customers have the additional peace of mind in knowing that Elitek will stand behind the work performed.” For more information on Elitek’s remote capabilities or to pre-order a remote scanning device, contact Smith at dgsmith@lkqcorp.com, visit the website at https://elitekauto. com or call 888-8-ELITEK. Source: LKQ Corporation

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48 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

Used Vehicle Prices Expected to Climb to Record Highs as New Vehicle Prices Stay Steady in Q2: Edmunds Consumers seeking relief from new car prices in the used car market might be a bit dismayed by used car prices as well, according to the car shopping experts at Edmunds. Edmunds data reveals the average transaction price (ATP) for used vehicles climbed to $25,410 in the second quarter of 2021 compared to $22,977 in Q1 and $20,942 in Q2 2020, marking the highest quarterly used ATP Edmunds has on record. “Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” said Jessica Caldwell, Edmunds’ executive director of insights. “Car shoppers are used to getting deals, and often far below the sticker price for new, so anyone returning to the car market for the first time in a while is in for some serious sticker shock.” Although used car prices are expected to climb to new levels in Q2, Edmunds data reveals new car prices appear to be leveling off—the ATP for new vehicles hit $40,827 in

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Q2 2021, compared to $40,070 in Q1 and $38,895 in Q2 2020. Edmunds experts note this is due to a shift in the mix of vehicles available in the new market: Edmunds data reveals the share of pickup trucks dropped to 17.1% in Q2 2021 compared to 22% in Q2

action price during the pandemic, but the well of inventory has finally run dry,” said Caldwell. “Consumers who can be more flexible are buying more passenger cars and SUVs, and although they’re paying inflated prices for these vehicles, comparatively they command much

“Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” — Jessica Caldwell 2020, while the share of SUVs and passenger cars increased. SUVs made up 54.6% of the market in Q2 2021 compared to 51.3% in Q2 2020, and passenger vehicles made up 23.8% of the market in Q2 2021 compared to 23% in Q2 2020. “Pricey, optioned-out pickup trucks have been the darling of consumers and the primary culprit in boosting the industry average trans-

less than their truck counterparts. Other shoppers are forced to sit out of the market until what they want comes back in stock.” Edmunds analysts note the car shoppers who are still making purchases in the current market likely represent a more affluent portion of the population. “This is not a buying environment for people on the fringe of

being able to afford new car ownership,” said Caldwell. “Average loan terms are already quite long and interest rates are relatively low on average, so the consumer really has to make up the difference in price.” Edmunds experts advise consumers who are considering making a purchase over the Fourth of July weekend or later this summer to make a concerted effort to shop around their trade-in, which can be done for free on sites such as Edmunds. According to Edmunds data, the average trade-in value for used vehicles climbed to $21,224 in June, marking a 75.6% increase compared to June 2020. “In these unique market conditions, car shoppers must remember that they have the most negotiating power through their current vehicle,” said Ivan Drury, Edmunds’ senior manager of insights. “Although it’s important to do your research on available incentives, getting competitive quotes for your trade-in will be the smartest way to guarantee the biggest discount on your next vehicle.” Source: Edmunds

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 49

‘Who Pays for What?’ Survey: Auto Body Shops Increasingly Billing, Being Paid for Seat Belt Inspections General Motors’ recently-revised post-crash inspections continue to call for inspections of seat belts “after any collision,” and “Who Pays for What?” surveys continue to find an increasing percentage of auto body shops are billing—and being paid—for this procedure by the eight largest auto insurers. In 2016, when Collision Advice and CRASH Network first asked about seat belt inspections in their “Who Pays for What?” survey, nearly two-thirds of shops—63%—said they had never billed for it. This year, that has nearly reversed, with 62% of shops reporting they have charged for the labor to inspect seat belts. Among those shops, about one in three—34%, up from 24% in 2016—say they are paid for that procedure “always” or “most of the time,” and nearly an equal percentage say they are paid at least “some of the time.” The trend is good news for shops and consumers. But for this procedure in particular, Mike Anderson of Collision Advice, who

conducts the surveys in conjunction with CRASH Network, is concerned more with just making sure it gets done.

“Every OEM has a very specific procedure for how to inspect seatbelts,” Anderson said. “No matter whether you charge for it or not, we have an obligation to make sure that we’re fixing vehicles safely and properly, and that means following the OEM repair procedures when it comes to seat belts.” The latest quarterly “Who Pays for What?” survey is now

Audi Selects Mobileum Mobileum Inc., a leading global provider of analytics-based roaming and network services, risk management and testing and monitoring solutions, is pleased to announce Audi is deploying Mobileum’s Connected Car Testing solution to test and monitor the end-toend quality of service (QoS) of its connected cars. By implementing Mobileum’s Connected Car Testing solution, Audi ensures its customers will experience the best online infotainment, safety, navigation and communication capabilities while they are in the car. Mobileum’s Connected Car Testing solution allows Audi to remotely test its connected cars from a centralized location, and it provides unparalleled KPIs to monitor and improve the connected car experience. In addition, Mobileum will enable Audi to support important safety features. Source: Mobileum

open through July. It focuses on “not-included” frame and mechanical labor operations. Shops can take the survey at https://www.surveymonkey.com/r/L3H3JQP Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 to 20 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at www.crashnetwork.com/collisionadvice. Source: CRASH Network, Collision Advice

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Signature Collision Centers Joins Forces with Crash Champions Crash Champions, a leading independent collision repair company, announced June 22 it has entered into an agreement with Signature Collision Centers, one of the largest family-owned, independent collision repair companies on the East Coast, by which Signature will join the Crash platform through a strategic transaction.

Following the transaction, Signature founder and CEO Charles “Chuck” Pipkin will retain an ownership stake in Crash and transition to a new role as an executive board member with the company, where he will work closely with Crash Champions founder and CEO Matt Ebert to continue growing the business at the national level.

“This partnership represents a collaboration between two of the leading names in the U.S. collision repair industry,” — Matt Ebert The newly combined company will operate under the Crash name and banner, creating a nationwide platform with 118 locations strategically located across 12 states and Washington, D.C. Headquartered in Annapolis, MD, Signature operates 24 high-performing locations across states throughout the greater Mid-Atlantic and Southeast, including Pennsylvania, Maryland, North Carolina, Florida and Washington, D.C.

“This partnership represents a collaboration between two of the leading names in the U.S. collision repair industry,” said Ebert. “Our growth strategy is rooted in identifying the right shops and owners who can be true partners and stewards of the Crash brand. This means not only creating near-term value when they join the company through a transaction, but creating long-term value through continued contributions as members of our leadership and own-

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ership teams. Chuck and his team are the ideal partners, and we’re excited to welcome them to the Crash family and extend our brand to the East Coast.” “This is a monumental moment for Signature, one that we’ve been working towards for a long time,” said Pipkin. “Since our founding in 2004, we have been committed to building this business with a very specific vision and set of values. As we looked to the future, it became clear that we needed to join forces with like-minded individuals in order to take our business to the next level and achieve the full value of our platform. “Our search for that partner started and ended with Crash Champions, which not only has the team and resources to accelerate our growth, but shares the same operational ethos and commitment to excellence,” Pipkin said. “This is the next logical step for our business, an exciting new chapter and an ideal opportunity to continue building our legacy under a new powerful name and brand.” This will be the 42nd successful transaction Crash Champions has

completed since July 2019. Through these transactions, Crash has transformed itself from a regional player operating eight locations in the greater-Chicago area to one of the fastest growing collision repair companies in America, with what will be 118 locations across 12 states―California, Colorado, Florida, Illinois, Iowa, Kansas, Maryland, Missouri, North Carolina, Pennsylvania, Ohio and Wisconsin, as well as Washington, D.C.―at the closing of this transaction. “We have enjoyed significant growth over the last two years by carefully planning and executing a national M&A strategy, including identifying the right targets, partnering with talented management teams and properly integrating each operation into our platform,” added Ebert. “Our pipeline for quality M&A remains strong, the Crash brand still has significant room to grow, and we look forward to continuing our marketplace expansion.” Terms of the deal were not disclosed. Source: Crash Champions

16 State Attorneys General Asks EPA to Hold All States to Emissions Rules The attorneys general of 16 states on July 6 urged the U.S. Environmental Protection Agency to refrain from reinstating California’s waiver under the Clean Air Act which gives that state, and only that state, the authority to regulate which cars the rest of the nation drives. The attorneys general of Ohio, Alabama, Nebraska, Arkansas, Oklahoma, Georgia, Kansas, South Carolina, Indiana, South Dakota, Texas, Kentucky, Utah, Louisiana, West Virginia and Mississippi sent a letter July 6 to EPA Administrator Michael S. Regan urging the agency to continue the policy under the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule. The letter argues the U.S. Constitution recognizes the states as equals, and does not give California special rights denied to every other state. Under the Clean Air Act, the prior administration created national standards for vehicle carbon emissions for model years 2021 through 2026, treating all states as equal sovereigns subject to one

federal rule. Recently, the Biden Administration proposed California, and no other state, should be given a “waiver” from national carbon emissions standards and allowed to set its own standards. The waiver, designed decades ago to allow California to manage its severe smog problem, has instead been used by California to target fuel efficiency and global warming. The letter sent by the attorneys general makes clear any attempt to restore California’s waiver is unconstitutional and causes harm to non-Californians, needlessly driving up the costs of new vehicles and allowing California to exercise power denied to every other state. “In this great union of sovereign states, the Golden State is not the golden child,” the attorneys general wrote. A copy of the letter to the EPA can be found at https://bit.ly/3wmywrE Source: Kansas Attorney General’s Office

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August 2021 Southeast Edition

Articles inside

Steady in Q2: Edmunds

Semiconductor Shortage

Repair Shops

to Research

State Attorneys General Asks EPA to Hold

Recall Dashboard

Out of Your Collision Repair Shop

Ford Names Croley Chief Policy Officer

the Life of Michael Santoro

Software