September 2020 Southeast Edition

Page 1

39 YEARS

S O UTHEASTEDIT I ON

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

Survey Finds Shop Sales Down, but Employment Steady, Optimism Improving by John Yoswick

An industry survey this summer not surprisingly found a significant decline in shop revenues this spring, but it also found shops were not continuing to lay off employees and were actually growing less concerned about weathering the storm. About 250 shops responding to a survey in June reported data on the number of full-time employees they had in June compared to pre-pandemic. Those shops combined said they had 3,718 full-time employees, an average of about 15 employees per

shop, in early March, but had dropped to 3,293 employees in June, a decline of about 11%, to an average of about 13 employees per shop. That was an improvement from earlier months, when surveys found employee counts were down as much as 18% in April and 15% in May. Additionally, nearly three in five shops in June had the same number of fulltime employees as they did pre-pandemic. “This is a family business, and the owner cares greatly for his staff and their families, and is committed See Survey Finds, Page 16

PPP Forgiveness: No Need to Rush, and Other Tips by Jeff Drew and Ken Tysiak, Journal of Accountancy

Although forgiveness for Paycheck Protection Program (PPP) loans is a foremost topic on the minds of borrowers and the CPAs who advise them, experts are saying borrowers should not rush to apply for forgiveness. Long-expected FAQs expected to clarify many PPP-related issues are still awaited from the U.S. Small Business Administration (SBA) and Treasury. In addition, the loan forgiveness application has not been updated to reflect the recent five-

week extension of the program’s deadline to Aug. 8. A big reason for these delays is that Congress is debating a new round of COVID-19 relief, which is expected to include a second PPP initiative more targeted than the first one, said Mark Peterson, the executive vice president who heads the AICPA’s advocacy team in Washington, D.C. Those discussions also may include major changes relaxing the forgiveness requirements for the smallest loans, possibly those up to $100,000 or $150,000. “The situation is very dynamSee PPP Forgiveness, Page 20

PERMIT #288 ANAHEIM, CA

PAID

Change Service Requested P.O. BOX 1516, CARLSBAD, CA 92018

PRESORTED STANDARD U.S. POSTAGE Southeast_Issue_0920.indd 1

AUTOBODYNEWS.COM Vol. 11 / Issue 7 / September 2020

Focus Advisors Releases Midyear Updates on Collision Repair Industry David Roberts, Focus Advisors’ managing director, sent an email Aug. 7 reviewing the advisory firm’s updates on the collision industry. “It’s August and we are more than halfway through a most extraordinary year,” Roberts said. “The Great Pause continues. What follows is our midyear update.” Operations Average shop revenues are down 25% to 30% across the country, though it varies by region and by the intensity of regional COVID cases. Most shops are slowly returning to

higher volumes. The best news—many operators have figured out how to maintain close to normal margins on dramatically reduced revenues. The recession of 2009 taught operators how to both survive and then improve operations while under financial duress. Lessons well-learned then are helping the best operators weather this even more extraordinary downturn. PPP loans have had a universally positive impact for those operators who were successful in their applications. The relaxation of repayment See Midyear Updates, Page 18

New CIC ‘Industry Relations’ Committee Seeks Progress by Expanding Beyond Shops, Insurers by John Huetter, Repairer Driven News

The CIC has replaced its Insurer-Repairer Committee with an Industry Relations Committee, seeking progress and greater understanding on issues that affect all other segments of the industry as well. The committee presented the virtual CIC on July 23 a slide showing all the potential stakeholders when a vehicle owner or lessee crashes a car. The list included not just the motorist, insurer and repairer, but also the OEM; dealership; sublet providers like glass, PDR and towing interests; suppliers; educators; regulators; information and tech providers like estimating systems, management systems and diagnostic providers; trade groups; and trade press. Co-Chairman Jim Keller, of 1Collision, said the panel now has “about 35 total” participants, and it seeks a “great cross-section” of representation. Core members today include representatives from four insurers,

five repairers—counting Keller’s 1Collision—Audi, SCRS, Fayetteville Technical Community College and I-CAR, Enterprise, CCC, 3M and Auto Techcelerators.

Collision Industry Conference Industry Relations Committee member Jonathan Chase, of National General, speaks to the July 23 virtual CIC. Credit: Screenshot from CIC video

Asked at one point about recyclers, Keller encouraged them to get in touch; he’d love to have some on the panel. Committee member Mark Algie, of 3M, challenged his other paint and materials colleagues to participate and noted that some supplier issues deserved attention. Co-Chairman Mark Allen, of Audi, said both he and former Insurer-Repairer Relations Committee Co-Chairman Clint Marlow, of See ‘Industry Relations’, Page 14

8/18/2020 6:09:52 PM


A SYSTEM

REBORN with ever ything you asked for in a ref inish system–color consistency and tools.

M AV ERICK APPROV ED . REQUES T A DEMO, V ISI T M AT R I X S Y S T E M . C O M

2 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 2

8/17/2020 6:33:17 PM


CONTENTS

CES 2021 Is All-Digital

REGIONAL

Learners and Implementing Hands-on

Augusta, GA, Hospital Worker in Need of Car

Efficiency Training �����������������������������������������26

Gifted One ����������������������������������������������������10

Youth In Need in TN �����������������������������������������6

NATIONAL American Views 2020: Trust, Media and

Classic Collision Continues Growth in

Democracy �����������������������������������������������������4

South FL with Imperio Auto Body &

Asbury Announces Record Q2 Results ���������������10

Collision Center Acquisition ���������������������������12

CES 2021 Is All-Digital ����������������������������������������3

Federal Panel Could Consolidate Florida Business Interruption Claims Into Class Action Suit �������������������������������������������12 Floridian Used COVID Relief Funds to Purchase Lamborghini Charged in Federal Court ����������11 TN Lawmakers to Consider COVID-19 Liability Protection, Telehealth Bills in Special Session ���8 West Virginia Has Awarded $7.6M in COVID-19Related Small Business Grants �����������������������8

Serving Florida, Georgia, Alabama, Mississippi, Virginia, West Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2020 Adamantine Media LLC.

American Icon Automotive Finishes ����������������� 12

Hendrick Volvo Cars of Charleston ������������������� 20

Audi Wholesale Parts Dealers �������������������������� 41

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

AutoNation Collision Parts ������������������������������� 13

Hyundai Wholesale Parts Dealers �������������������� 40

AutoNation Ford-Lincoln ��������������������������������� 27

Innovative Tools & Technologies ���������������������� 35

BMW Wholesale Parts Dealers ������������������������ 44

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

Brandon Ford �������������������������������������������������� 10

John Heister Automotive ��������������������������������� 34

Car-O-Liner ���������������������������������������������������� 17

Kia Motors Wholesale Parts Dealers ���������������� 43

Certified Automotive Parts Association �������������� 8

Malco ������������������������������������������������������������� 11

Charlotte’s Premier Wholesale Parts Source ���� 31

Matrix Automotive Finishes ������������������������������� 2

New CIC ‘Industry Relations’ Committee

City Kia of Greater Orlando ������������������������������ 20

Mercedes-Benz Wholesale Parts Dealers �������� 47

Seeks Progress by Expanding Beyond

Classifieds ������������������������������������������������������ 46

MINI of Charleston ������������������������������������������ 20

Coggin Deland Honda ������������������������������������� 26

MINI Wholesale Parts Dealers �������������������������� 44

Dale Earnhardt Jr. Buick GMC Cadillac ������������ 21

MOPAR Wholesale Parts Dealers ��������������������� 29

Dale Earnhardt Jr. Chevrolet ���������������������������� 21

PPG Refinish ����������������������������������������������������� 9

Eagle Abrasives, Inc. ��������������������������������������� 15

Radley Chevrolet ��������������������������������������������� 28

Equalizer Industries, Inc. ����������������������������������� 6

RGI Spray Booth Company ������������������������������ 18

Ford Wholesale Parts Dealers �������������������������� 40

Rick Hendrick Chevrolet Naples ���������������������� 38

GM Wholesale Parts Dealers ��������������������������� 45

Riverside Ford-Lincoln ������������������������������������ 22

Gus Machado Ford ������������������������������������������ 32

SATA Dan-Am Company ������������������������������������ 5

Haldon Company �������������������������������������������� 48

Southside Kia �������������������������������������������������� 30

Hendrick Automotive Group ����������������������������� 37

Spanesi Americas ������������������������������������������� 19

Hendrick BMW/MINI ������������������������������������������ 7

Steck Manufacturing Company ����������������������� 16

Hendrick Honda Pompano Beach �������������������� 36

Subaru Wholesale Parts Dealers ���������������������� 39

Hendrick Kia Cary ������������������������������������������� 33

Tameron Hyundai �������������������������������������������� 38

Hendrick Kia Concord ������������������������������������� 33

Volkswagen Wholesale Parts Dealers �������������� 42

Fiat Chrysler Blasts GM’s Attempt to Revive Racketeering Lawsuit, Calls It ‘Despicable’ ���42 FL Selected to Participate in Federal COVID-19 Vaccine Pilot Program �������������������16 Focus Advisors Releases Midyear Updates on Collision Repair Industry �����������������������������1 Honda is Asking Office Staff to Work on Assembly Line ����������������������������������������������45

Anderson - More Best Practices to Make the Most of the ‘Parts’ Portion of Your Business ���34 Attanasio - CCC Photo Estimates and AI-Supported Claims Spike in Response to COVID-19 ��������������������������������������������������36 Chess - An Overview of Corrosion Protection Products: Part 2 of 2 �������������������������������������28 Ledoux - The Advent of the Computer Age ��������39 Phillips - SCRS Open Board Meeting Highlights Include Presentations About Pressing Industry Topics ����������������������������������������������40 Phillips - The Importance of Creating Lifelong

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

Hurricane Isaias Insured Losses Estimated to Top $4.2B in U.S. and Caribbean ���������������46

COLUMNISTS

will shape our future. You’ll be able to participate in all the awe-inspiring moments of CES wherever you are in the world. We are designing a unique experience for the tech industry. Mark your calendars for the first week in January and be on the lookout for more exciting news about CES 2021. We plan to return to Las Vegas for CES 2022, combining the best elements of a physical and digital show. Source: CTA

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray

INDEX OF ADVERTISERS

BrightShift Donates Distance Learning to

The Consumer Technology Association (CTA)® is excited to share that CES® 2021 will be an all-digital experience. With the growing global health concerns about the spread of COVID-19, it is not possible to safely convene tens of thousands of people in Las Vegas in early January 2021 to meet and do business in person. An all-digital CES 2021 will allow the entire tech community to safely share ideas and introduce the products that

Shops, Insurers �����������������������������������������������1 NICB: Thousands Left to Rebuild After Isaias �����32 PPP Forgiveness: No Need to Rush, and Other Tips �������������������������������������������������������1 SEMA Show Canceled ���������������������������������������47 Survey Finds Shop Sales Down, but Employment Steady, Optimism Improving ���������������������������1 Texas Man Accused of Buying Lamborghini Urus With COVID Relief Funds �������������������������6 Webinar Highlights the Importance of OEM Certification ��������������������������������������������������47

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 3

Southeast_Issue_0920.indd 3

8/18/2020 6:10:10 PM


American Views 2020: Trust, Media and Democracy The following is an executive summary of Gallup and the Knight Foundation’s annual report on American views on trust, media and democracy. The full report can be downloaded here. https://knightfoundation. org/wp-content/uploads/2020/08/ American-Views-2020-Trust-Media-and-Democracy.pdf Americans still value the media’s traditional roles in society, such as providing accurate news and holding powerful interests accountable for their actions. The vast majority of Americans (84%) say that, in general, the news media is “critical” (49%) or “very important” (35%) to democracy. Americans are more likely today to say the media’s role in democracy is “critical,” up five percentage points since 2017. Large majorities say it is “critical” or “very important” for the news media to provide accurate and fair news reports (92%), ensure Americans are informed about public affairs (91%) and hold leaders accountable for their actions (85%). More Americans say the media is performing poorly rather than well in accomplishing these goals than did in 2017. However, Americans see increasing levels of bias in the news media; majorities see bias in the news source they rely on most. A majority of Americans currently see “a great deal” (49%) or “a fair amount” (37%) of political bias in news coverage. The percentage seeing a great deal of bias is up from 45% in 2017. Most Americans see bias in their go-to news source; 20% see “a great deal” and another 36% see “a fair amount” of bias in the news source they rely on most often. Given the choice, however, more Americans say they are concerned about bias in the news other people are getting (69%) than say they worry about their own news being biased (29%). Nearly three-quarters of Americans say they see too much bias in the reporting of news that is supposed to be objective as “a major problem” (73%), up from 65% in the 2017 study. Americans suspect inaccuracies in reporting are designed to push a specific agenda. Americans perceive inaccurate news to be intentional— either because the reporter is misrep-

resenting the facts (54%) or making them up entirely (28%). Nearly eight in 10 Americans (79%) say news organizations they distrust are trying to persuade people to adopt a certain viewpoint, while 12% say they are trying to report the news accurately and fairly but are unable to do so. Eight percent of Americans say distrusted media are trying to ruin the country, driven largely by the 1 in 5 Americans who identify as “very conservative” and 1

in 10 Republicans who feel this way. Differences in Americans’ opinions of the news media are most pronounced by political party affiliation. Almost three-fourths of Republicans (71%) have a “very” or “somewhat” unfavorable opinion of the news media, compared to 22% of Democrats and 52% of independents. Democrats and Republicans differ greatly in their ratings of the media on every aspect of performance, including providing objective news reports, holding political and business leaders accountable for their actions and helping Americans stay informed about current affairs. Sixty-nine percent of Americans, including 61% of Democrats, say the increasing number of news sources reporting from a particular point of view is “a major problem.” In contrast, 77% of Republicans say the same. While a majority of Americans across the political spectrum (80%) say the media is under attack politically, they are divided as to whether those attacks are merited. Whereas 70% of Democrats say the media is under attack and those attacks are not justified, 61% of Republicans say such attacks are justified. In addition to partisan differences in media attitudes, views also vary by age, with older Americans generally more favorable toward the news

media than younger Americans. Whereas 44% of Americans aged 65 and older have “very” or “somewhat” favorable views of the media, less than 1 in 5 Americans under age 30 (19%) say the same. Majorities of Americans say noews organizations should diversify their reporting staffs, but they differ—largely by politics—on the focus of diversity efforts. A strong majority of Americans (79%) say news organizations should hire to increase the diversity of their reporting staffs. However, while majorities say it is important for the news media to reflect the diversity of America, this ranks lowest of the priorities among the roles for media to play in society. The priorities cited by Americans who say news organizations should hire for more diversity differ greatly by race and political party. Democrats (49%) and Blacks (60%) prioritize racial/ethnic diversity in hiring, while Republicans (51%) and whites (35%) are most apt to prioritize diversity in political views. Americans commonly feel overwhelmed by the volume and speed of news, but say misinformation is media’s greatest problem. Those overwhelmed are most likely to turn to one or two trusted news sources as a solution. Four in five Americans (78%) say the spread of misinformation online is “a major problem,” exceeding all other challenges posed by the media environment. Seventy-three percent of Americans want to see major internet companies find ways to exclude false/hateful information online. More Americans say it is harder (62%) rather than easier (36%) to be well-informed because of all the sources of information available. In 2017, 58% said it was harder to be informed. Reasons Americans who say it is harder to stay informed cite for feeling overwhelmed include the mix of news interspersed with non-news on the web (72%), followed by the pace

or speed of news reporting (63%) and the increased number of organizations reporting the news (63%). More Americans (54%) say there are enough media sources to sort out the facts than say there is so much bias it’s difficult to sort out the facts (43%), an improvement from 2017 when the split was 50% to 47%, respectively. Republicans (65%) are much more likely than independents (48%) and Democrats (21%) to say there is too much bias to sort out the facts. In response to feeling overwhelmed, 41% of Americans say they only pay attention to one or two trusted sources; 31% try to consult a variety of sources to see where they agree; 17% go to the extreme of ceasing to pay attention to news altogether; and 8% rely on others to help them sort out what they need to know. Local news plays a key role in political and civic engagement. Thirty-one percent of Americans say they follow news about issues affecting their local community “very closely,” an increase from 25% in 2017. However, most Americans are not very confident in their knowledge relating to public affairs in their community. Americans who follow local news closely are more likely to vote in local elections and to feel attached to their communities. They are less likely to say that “people like me don’t have any say in what the government does.” Americans who primarily access their news online—predominantly, younger Americans—are less likely to be knowledgeable about their local communities and to feel attached to their communities. In a deeply divided nation, majorities of Americans say the media bears blame for political division. But they also see the potential for the media to heal the divide. Forty-eight percent of Americans say the media bears “a great deal” of blame for political division in this country, while 36% say they bear “a moderate amount.” But nearly identical percentages say the media could do “a great deal” (49%) or “a moderate amount” (35%) to heal those divisions. We thank the Knight Foundation for reprint permission.

4 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

AB

Southeast_Issue_0920.indd 4

8/17/2020 6:33:21 PM


SATAjet X 5500 + SATA RPS The Dream Team for perfect finishes The revolutionary

The Original

SATAjet X 5500

SATA RPS

REVOLUTIONARY: The X-nozzles are taking atomization to a whole new level NOTICEABLY QUIETER: Whispering nozzle™ due to optimized air flow geometry INDIVIDUAL: Matches any application requirement, climatic conditions and application method PRECISE: Optimized material distribution LOW MAINTENANCE: No air distribution insert required CONSISTENT: Constant fan size across the entire nozzle spectrum EFFICIENT: The optimized atomization concept enables to realize considerable material savings

CLEAN: The cup can be easily, cleanly and safely separated from the spray gun SAFE: Firm connection between lid and cup (thread) REFILLABLE: The cups can be easily refilled BENDABLE: The SATA RPS cup can be safely tilted* by up to 45° forward, right and left

* applies to all SATA RPS standard cups, however not to cup lids with minijet connection.

www.sata.com/rps

SATAjet X 5500 video www.sata.com/x5500io

Stay safe and healthy The exclusive independent distributor of SATA products in the US and Puerto Rico

Phone: 800-533-8016 www.satausa.com E-mail: satajet@satausa.com

SATA, SATAjet and/or other SATA products referenced herein are either registered trademarks or trademarks of SATA GmbH & Co. KG in the U.S. and/or other countries.

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 5 ABN 5500 and RPS combo.indd 1

Southeast_Issue_0920.indd 5

7/21/20 3:50 PM

8/17/2020 6:33:22 PM


BrightShift Donates Distance Learning to Youth In Need in TN Universal Achievers Foundation (UAF) was recently recognized by Shelby County (TN) Schools and the Memphis Office of Youth Services (MPLOY) Youth Summer Employment Program for assisting 91 high school interns using the BrightShift virtual learning environment. UAF successfully and safely conducted its financial literacy and auto body shop program using BrightShift’s distance learning and secure video conferencing features. UAF is a nonprofit organization located in the poverty-stricken Frayser area. It provides a citywide youth initiative for online summer job registration and connects youth to local businesses for potential internship opportunities. “BrightShift has been a godsend,” said Tangua Houston, executive director, co-founder and instructor of UAF. “We’re black-owned. Black-operated. We hit the ground running and we’re still running.” Like many other organizations, COVID-19 created obstacles to communication and operations for UAF. Feeling the pressure to find a solution to safely continue

the mission in spite of local gathering and school restrictions, Houston turned to BrightShift. “We can’t do this,” said Houston, recalling her concerns during session planning. “We need a virtual platform.” UAF’s mission to support youth in psycho-motor and conceptual skill development, with emphasis on nurturing all student potential, aligned with BrightShift’s core values of

session—for when I needed to go back on my own—to set myself up and set the students up to use BrightShift.” BrightShift’s features were able to support UAF’s brain-based learning approach with strong operational emphasis on communal and partnership oriented change. BrightShift’s virtual classroom functionality offered the flexible, user-friendly experience they needed.

“BrightShift finds its truest value in being a platform that helps educators change and empower young lives” — John Sotiros collaboration, community and ingenuity. John Sotiros, founder and CEO of BrightShift Inc., contacted Houston directly and delivered the software straight to her team. “He loved the passion we have for our community,” said Houston, recalling her communication with Sotiros. “I love the fact that the CEO of the company took the time to demonstrate and then videotape our

“We can actually have them log in to see Mr. Mason, the co-founder and instructor for UAF, show how theory applies in the shop. They will actually see him paint the car,” said Houston, who found the platform had a short learning curve and fulfilled UAF’s accessibility requirements. “I was very honored to help,” said Sotiros. “BrightShift finds its

truest value in being a platform that helps educators change and empower young lives. The more connected our educational communities are, the better they perform and succeed. That’s what our technology is all about.” Houston is looking forward to a strong future for the program and its students. “This was a gift. We have been given new life,” she said. “We’re getting geared up for the fall and we still have students all year long. We need the platform to continue to get the youth involved. We can reach out to more people this way. It truly makes UAF more accessible.” One of UAF’s upcoming goals include boosting its apprenticeship program. BrightShift’s recent campaign, The Shift 2020, aims to provide the same features to districts and schools around the country. The development team hopes that BrightShift can give educators a safe and effective alternative to in-class education this fall. Source: BrightShift

Texas Man Accused of Buying Lamborghini Urus With COVID Relief Funds by Adrian Padeanu, Motor1.com

“The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.” This is the description you will find on the U.S. Small Business Administration’s website in the section dedicated to coronavirus relief options. However, some business owners decided to take advantage of the COVID-19 stimulus by fraudulently using the funds to purchase high-end vehicles and making other unnecessary expenditures. After a Florida man accessed the program to buy himself a shiny new Lamborghini Huracan worth $318,000, a similar story has emerged about someone from Texas. He too acquired a Lamborghini, but instead of opting for the naturally aspirated V10 supercar, he decided to go with a Lambo Urus. The high-performance SUV packing a twin-turbo V8 engine kicks off at over $222,000 in the U.S. for the 2021MY.

He reportedly secured $1.6 million in PPP loans and used some of the funds to also acquire a Rolex and a 2020 Ford F-350 truck. It goes without saying the man is now facing multiple charges, including for making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. According to the U.S. Justice Department, the $1.6M loan also funded several real estate transactions rather than being used for what it was supposed to—payroll costs, rent, interest on mortgages, etc. It’s worth mentioning the PPP loans are forgivable provided the business owner retains the company’s employees and uses the money for eligible expenses. That obviously wasn’t the case here. As if that wasn’t bad enough, the 29-year-old also spent thousands of dollars at strip clubs and night clubs in Houston and used some of the COVID relief funds for additional lavish personal purchases. We thank Motor1.com for reprint permission.

Auto Glass Tools

WK6NKIT

BTB Narrow Pinchweld Trimming Blades

sales@equalizer.com • 512.388.7715 • www.equalizer.com

6 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 6

8/18/2020 6:10:23 PM


AUTOMOTIVE GROUP TM

Hendrick BMW Northlake 10720 Northlake Auto Plaza Blvd. Charlotte, NC 28269 Mon-Fri: 7:30am-6:00pm Sat: 9:00am-5:00pm

844.612.7574

Hendrick BMW 6950 E. Independence Blvd. Charlotte, NC 28227 Mon-Fri: 7:30am-6:00pm Sat: 9:00am-5:00pm

888.845.4263

DRIVE WITH THE BEST. ORIGINAL BMW PARTSAND ACCESSORIES.

©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.

Hendrick Mini

7036 E. Independence Blvd. Charlotte, NC 28227 Mon-Fri: 7:30am-6:00pm Sat: 9:00am-5:00pm 877.317.9568

©2020 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 7

Southeast_Issue_0920.indd 7

8/17/2020 6:33:24 PM


TN Lawmakers to Consider COVID-19 Liability Protection, Telehealth Bills in Special Session by Vivian Jones, The Center Square

Tennessee lawmakers will return to Nashville on Aug. 10 for a special session to consider legislation to provide COVID-19-related liability protections for health care providers, businesses and schools. Gov. Bill Lee signed a proclamation Aug. 3 calling for the legislative special session. “It is now more important than ever that Tennessee businesses, hospitals, churches and schools have COVID-19 liability protection,” Lt. Gov. Randy McNally, R-Oak Ridge, said in a statement. “The last thing small business owners, pastors, doctors and school superintendents need to worry about are frivolous lawsuits which would further impede their ability to do their jobs in this difficult time.” Tennessee schools and businesses reopening amid the pandemic remain open to lawsuits. The state’s business community and several education organizations have asked Lee to call a special session for liability protection legislation to be considered. Lee granted protections last month to health care providers by executive order. The House and Senate debated a safe harbor liability protection bill earlier this summer but did not agree

on the final language and adjourned without passing it. Both chamber speakers committed to working to pass such an immunity bill when the Legislature reconvenes next week. “We are looking forward to coming back and finishing the people’s business to increase access to telehealth services, and to protect businesses, churches, academic and health facilities from baseless lawsuits during the ongoing pandemic,” House Speaker Cameron Sexton, R-Crossville, said in a statement. “I am committed to working deliberately and efficiently with Gov. Lee, Speaker Sexton and all members of the House and Senate to pass legislation on these issues and get our members back home quickly and safely,” McNally said. The General Assembly also will consider legislation to expand telehealth services in Tennessee and laws governing Capitol grounds and surrounding areas. Protesters have assembled on Legislative Plaza across from the state Capitol for more than 50 consecutive days. “I am very appreciative of the call to strengthen existing laws against those who deface property, who escalate peaceful protests into acts of aggression and those who seek violence towards law enforcement and judicial members,” Sexton said.

The Tennessee Constitution prescribes the scope of extraordinary sessions of the Legislature to be limited to the call of the Governor, so no further issues will be discussed. Senate Minority Leader Jeff Yarbro, D-Nashville, criticized the narrow scope of the governor’s call on Twitter on Aug. 3, saying that there is much more for the General Assembly to do to respond to the coronavirus crisis. “It’s irresponsible and more than a little tone-deaf of [Lee] to call the legislature back for a special session without addressing the full scope of unprecedented challenges folks are facing across our state,” Yarbro tweeted. “Tennessee just suffered our worst month of the pandemic,” Yarbro said in another tweet. “We’ve had 110,000 confirmed cases, almost 1,100 deaths, and there’s no clear strategy to reverse the community spread happening across the state. But that’s off limits in the narrow special session called by the

Governor.” Legislative Administration has confirmed 10 cases of COVID-19 among legislators and staff, including at least one legislator. Social distancing and sanitation procedures have been in place in the Cordell Hull legislative office building since March, and both speakers have encouraged vigilance in preparation for the special session. Some legislators have called for additional precautions to be implemented in advance of a special session. “Our staff members and visitors are required to wear masks in common areas, and they’re temperature checked, so I think that it would be hypocritical and counterproductive for members not to have to wear a mask as well,” Democratic Caucus Chairman Raumesh Akbari, D-Memphis, said last month during a virtual news conference. “We don’t want our special session to be a super-spreader event.” We thank The Center Square for reprint permission.

LAST BUT NOT LEAST COMES THE SEAL

West Virginia Has Awarded $7.6M in COVID-19Related Small Business Grants by Tyler Arnold, The Center Square

West Virginia has awarded $7.6 million in COVID-19-related small business grants since it launched its Small Business Grant Program more than three weeks ago, Gov. Jim Justice said Aug. 7. The state has received more than 2,000 applications, Justice said during a news conference Aug. 7. “We want to keep pumping that money out just as fast as we possibly can,” Justice said. Businesses that have between

one and 35 employees that have existed since Feb. 29 and have experienced financial losses because of COVID-19 economic restrictions are eligible for funding. An employer can apply for up to $5,000. The fund has $150 million in it. Eligible businesses first must register as a vendor with the state to apply. Businesses can apply for the grants at grants.wv.gov. We thank The Center Square for reprint permission.

 Fit  Function  Appearance  Performance  Materials

TM

12345678

TM

12345678

Only parts that pass our extensive tests earn CAPA Certification and carry the distinctive yellow and blue CAPA Quality Seal.

FREE 4x Monthly E-Newsletter. Subscribe Today! TM

AUTOBODY

www.autobodynews.com

capacertified.org

8 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 8

8/17/2020 6:33:24 PM


SPONSORED EDITORIAL

Now May Be The Time To Consider A Waterborne Basecoat In this slowed down economy, now may be a good time to reas-

“The color deck is dead-on”, says Jeff Smith of Pro Collision, Grand

sess your paint operation and explore how to improve its operat-

Rapids, Michigan. “If the color is in the deck, there’s no need to do a

ing efficiency and improve customer satisfaction. If you’re a high

sprayout, like we always had to perform with our previous system.”

production shop currently using a solvent system and have considered a move to waterborne, it also may be a good time to test the waters—especially if you see the value in improving the air quality for your employees and community with a low VOC product.

When evaluating your current paint system against available

waterborne options, it’s important to consider the entire refinish process—from color matching and application ease to throughput capability. As an example, PPG’s waterborne refinish system incorporates a host of benefits that can improve performance in these key areas.

Blending Ease Given that refinishing most often calls for blending, how efficient and easy a painter can perform a color-accurate blend and eliminate chances for re-dos is especially important.

To ensure color accuracy, the PPG basecoat’s latex particles

orient metallic flakes smoothly to accurately match the color travel from face to flop. A final control coat eliminates any blotchiness, mottling or halos that can occur with solvent basecoat.

In terms of throughput, the basecoat’s thin film build enables it

to dry fast. Only 2-3 minutes flash time is needed between coats, and Color Matching Efficiency

the clearcoat can be applied in 10 to 15 minutes. PPG’s EN-V® Series

Obviously, color-matching prowess is critical. So, PPG is heavily

clearcoat line offers fast bake times as low as 10 minutes.

invested in ensuring the ENVIROBASE® High Performance water-

borne system delivers color-matching excellence, especially for ve-

more environmentally progressive or is looking to improve col-

hicles wearing a finish that varies from the OEM prime. Color vari-

or-matching and cycle times in the paint operation, a move to the

ances identified by PPG’s color team are quickly incorporated into a

Envirobase High Performance system is worth considering as the

comprehensive color formula database. Formulas are updated daily

benefits can really pay off over time.

In summary, if your high-production shop desires to become

through PPG’s PAINTMANAGER XI color software. ®

A real time saver is a Chromatic Variant Deck that can significantly

reduce the need for sprayouts. Comprised of thousands of variant and prime color chips, each chip is sprayed with actual waterborne paint. autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 9

Southeast_Issue_0920.indd 9

8/17/2020 6:33:25 PM


Augusta, GA, Hospital Worker in Need of Car Gifted One by Miguel Legoas, Augusta Chronicle

After years of relying on her son to get her to work at University Hospital, Sandra Black’s smile shined as bright as the dazzling car before her eyes. “I didn’t know how to act, I kept looking at it like...‘Am I really winning this car?’” said Black, who lives in North Augusta, GA. “I’ve never won anything like that my whole life.” But the big green bow on the 2015 Ford Focus painted in her favorite color promised ‘yes, this is your car.’ The car was gifted to Black on Aug. 6 at the Kendrick Paint & Body location on 15th Street in Augusta. The gift was part of a collaborative effort between the body shop, GEICO and the National Auto Body Council Recycled Rides program. In addition, Gerald Jones Ford provided a one-year warranty for the car. CEO of Kendrick Paint & Body Stephen Kendrick Jr. said they have done this several times over the last few years, and felt it would be a good thing to do for first responders

hurting during the coronavirus pandemic. The body shop created a post on its social media where people could put in their information. GEICO then took those submissions, researched them and chose one tru-

“To know that people are wanting the best for me...I’m just not used to having that sort of momentum in my life.” Offering this kind of help, Kendrick said, is the reason they wanted to do this.

“She was just overjoyed...brings tears to your eyes when you see that happen.” — Stephen Kendrick Jr. ly deserving candidate. In Black’s case, she was actually nominated by two loved ones. Black, 46, is a technician at University Hospital. For the last few years, she has had to share a vehicle with her son and rely on him to get to work every day. Kendrick Paint & Body spokesperson Carson McLaughlin said, during the pandemic, Black’s hours have been cut, and her income has been greatly reduced. Winning the car was huge for Black. As a single mother, she said she was awestruck to have people in her corner wanting the best for her. “I’m used to being the one encouraging other people,” she said.

“With COVID, with people losing their jobs...with their hours getting cut, their pay getting cut, it’s very special to me, it’s very special to the company, and it’s very special to everybody that was involved,” he said. “She was just overjoyed... brings tears to your eyes when you see that happen.” Black said, given all of the chaos and conflict that coronavirus has created, this moment has restored her faith in humanity, and hopes similar blessings and opportunities are granted to the members of her community. We thank the Augusta Chronicle for reprint permission.

Asbury Announces Record Q2 Results Asbury Automotive Group, Inc., one of the largest automotive retail and service companies in the U.S., reported net income for the second quarter 2020 of $49.6 million and adjusted net income (a non-GAAP measure) of $48.7 million. This compares to net income of $54.9 million and adjusted net income of $45.9 million in the prior year quarter. “We delivered a very strong quarter and proved out the resilience and the flexibility of our business model,” said David Hult, Asbury’s president and CEO. “Our focus on gross profit combined with our cost restructuring efforts allowed us to remain pro-active and committed to long term growth by moving forward with acquiring 12 Park Place luxury franchises in the Dallas-Fort Worth market under more favorable terms than the prior agreement,” Hult continued. “With the addition of Park Place, Asbury will be a stronger, more diversified company.” Source: Asbury Automotive Group

888.271.2038 888.271

Central Florida’s #1 Source for all Your Genuine OEM Ford Wholesale Parts $2 Million + Warehouse Inventory of Collision Parts Updated Daily Fleet of 10 Dedicated Delivery Trucks and 2x Daily Deliveries Team of 20 Trained and Certified Parts Professionals Ready to Help You Parts

Mon-Fri 7-9 l Sat 8-4

9090 E. Adamo Drive Tampa, FL 33619

Parts Direct: 813.621.7759 24 hr Fax: 813.466.7396 wholesale@brandonford.com www.brandonford.com

10 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 10

8/18/2020 6:11:58 PM


Floridian Used COVID Relief Funds to Purchase Lamborghini Charged in Federal Court A Florida man was arrested and charged with fraudulently obtaining $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a sports car for himself. Authorities seized a $318,000 sports car and $3.4 million from bank accounts at the time of arrest. Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG), Office of Investigation’s Atlanta Regional Office, Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service’s (USPIS) Miami Division, Special Agent in Charge Kevin A. Kupperbusch of the U.S. Small Business Administration (SBA)-OIG, Investigations Division, Eastern Regional Office, Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (CI) Miami Office, and Acting Special Agent in Charge Stephen Donnelly of the Board of Governors of the Federal Reserve System and the Bureau of Con-

sumer Financial Protection-OIG, Eastern Region, made the announcement. David T. Hines, 29, of Miami, FL, was charged by criminal complaint, unsealed July 27 upon his initial appearance before U.S. Chief Magistrate Judge John J. O’Sullivan in the Southern District of Florida, with one count of bank fraud, one count of making false statements to a financial institution and one count of engaging in transactions in unlawful proceeds. The complaint alleges Hines sought approximately $13.5 million in PPP loans through applications to an insured financial institution on behalf of different companies. The complaint alleges Hines caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and funded approximately $3.9 million in loans. The complaint further alleges that within days of receiving the PPP funds, Hines purchased a 2020 Lamborghini Huracan sports car for approximately $318,000, which he registered jointly in his name and the

name of one of his companies. In the days and weeks following the disbursement of PPP funds, the complaint alleges that Hines did not make payroll payments that he claimed on his loan applications. He did, however, make purchases at luxury retailers and resorts in Miami Beach. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized over $300 billion in additional PPP funding. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and

principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses. A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. This case was investigated by the FDIC-OIG, USPIS, IRS-CI, the SBA-OIG, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection-OIG. Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Berger of the Southern District of Florida are prosecuting the case. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www. justice.gov/disaster-fraud/ncdf-disaster-complaint-form Source: U.S. Department of Justice

OIL FILTER

Scan with your Smartphone for a quick video!

WRENCH

with Spring Activated Arms and Strong Magnetic Connection!

• Universal design made for spin-on oil filter sizes from: 2.4 to 3.6 in. (60 to 93 mm).

UFWM

• Compact unit fits in tight spaces for easy accessibility in a vehicle engine. • Three spring-loaded arms and a built-in magnet establish a strong, secure grip, preventing the wrench from slipping and the filter from being dropped, crushed, or ripped when torque is applied.

Magnetic!

• Works with any 3/8 in. square drive tool like a breaker bar or ratchet. • Durable steel construction with a nickel-plated and phosphatizing finish to help prevent corrosion for long life and performance. Malco Products, SBC | Annandale, MN. U.S.A. | www.malcotools.com | ©2020 Malco_Autobody News 8.62x5.1 Sept. 2020.indd 1

Southeast_Issue_0920.indd 11

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 11

7/24/20 3:32 PM

8/18/2020 6:12:32 PM


Federal Panel Could Consolidate Florida Business Interruption Claims Into Class Action Suit by John Haughey, The Center Square

So many COVID-19 business interruption lawsuits have been filed against insurers across the country that a federal judicial panel has called for a hearing on how to legally process them all. The seven-member U.S. Judicial Panel on Multidistrict Litigation (JPML) will ponder how to proceed with more than 450 federal complaints nationwide, in addition to hundreds of lawsuits filed in state courts, July 30 in Washington. The JPML has the authority to determine whether civil actions pending in two or more federal judicial districts can be transferred to a single federal district court for pretrial proceedings. A group from South Florida has filed one of three petitions requesting the JPML consolidate more than 100 lawsuits filed by businesses seeking coverage for business-interruption losses caused by pandemic stay-home orders into one case before the U.S. District Court in Miami. Similar petitions have been filed before the JPML on behalf of plaintiffs in Philadelphia and Chicago.

The insurance industry has uniformly stated standard business interruption policies do not provide coverage for pandemic-related impacts. They argue business interruption policies cover losses incurred during business shutdowns caused by catastrophes, such as floods or hurricanes, but not those incurred during the economic fallout of a pandemic. Business interruption policies specifically exclude pandemics, industry officials say, unless businesses specifically purchase pandemic coverage. It’s in every policy’s fine print, they say. The American Property and Casualty Insurance Association said forcing insurers to pay such claims would undermine the solvency of the industry. APCIA estimated business closures are costing businesses with fewer than 500 employees from $393 billion to $668 billion per month. But in lawsuits filed across the nation, policyholders argue business interruption policies should be applied to instances when there is no physical damage or destruction to a business that is being prevented from conducting business as usual by a government order.

In what could be a precursor to an avalanche of local, state and federal business interruption rulings unless the JPML consolidates cases, a Michigan judge this month sided with an insurer that rejected a $650,000 business interruption insurance claim by the owner of two restaurants. The owner contended business interruption coverage should apply because local authorities prohibited customers from physically entering his properties. However, Judge Joyce Draganchuk ruled COVID-19 did not tangibly alter the properties, which is necessary to provide coverage under the owner’s insurance policy—upholding a key contention by insurers. In late April, Florida Insurance Commissioner David Altmaier warned Gov. Ron DeSantis’ ReOpen Florida Task Force that many business owners were only then realizing their business interruption insurance policies did not cover financial losses stemming from pandemic shutdowns. In May, state CFO Jimmy Patronis called on Florida’s 27-member congressional delegation to find

a way for small businesses to recover losses related to the COVID-19 emergency shutdowns that many business interruption insurance policies don’t cover through legislation rather than litigation. “There are a lot of business owners who purchased business interruption insurance policies thinking they would be used for times like these,� he wrote. “Many responsible businesses that care deeply for their employees and their communities have spent a lot of their hard-earned dollars on business interruption insurance policies for years, and Congress should take that into consideration as they craft programs to help businesses during this crisis.� U.S. Rep. Mike Thompson, D-CA, has introduced HR 7412, the “Business Interruption Relief Act of 2020,� which would create a Business Interruption Relief Program (BIRP) to reimburse insurers that voluntarily paid COVID-19 business interruption claims. It awaits a first hearing before the House Financial Services Committee. We thank The Center Square for reprint permission.

Classic Collision Continues Growth in South FL with Imperio Auto Body & Collision Center Acquisition Classic Collision, LLC, an Atlanta-based multi-site repair operator, announced its second acquisition within the past three weeks, by acquiring Imperio Auto Body & Collision Center in Miami. This is Classic Collision’s 10th South Florida location. It now operates 37 centers in Georgia, Florida, Alabama and South Carolina. With this acquisition, Imperio Auto Body will be known as Classic Collision Doral, expanding Classic Collision’s coverage in the Miami-Dade area. Imperio Auto Body & Collision Center has served the Miami-Dade and Doral communities for more than 31 years, and has become well known for its hassle-free, responsible repairs. “After so many years as an independent shop, we feel this is the perfect time to join forces with

www.autobodynews.com

Classic Collision and continue to grow,� said Debora and Rene Alvarez, former owners of Imperio Auto Body. Classic Collision is looking toward the future and continues to implement its strategy to expand across the country despite the unique challenges brought on to the industry this year. “During these difficult market situations, we are not slowing down our plans to expand. Our team’s highly effective integration model and operations playbook keep us safely performing at a high level,� said Toan Nguyen, CEO of Classic Collision. “We will continue to acquire high-end businesses, which makes a lot of sense for our customers, insurance partners, teammates, landlords and communities we serve.� Source: Classic Collision

UPDATED DAILY

The New

Auto Body Shop

Go to www.AmericanIconFinishes.com/autobody FOR SPECIAL PROMOTIONS

Š 2020 P.O.R. Products

™ American Icon Automotive Finishes is a registered trademark of P.O.R. Products

12 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 12

8/17/2020 6:33:29 PM


PART# 66321D3000 CAN YOU NAME THAT PART?

OUR PARTS EXPERTS CAN. Not only does he know it’s a ’16 Hyundai Tucson OE right front fender, but he knows you’ll probably need fender bolts, brackets, a splash shield, insulator, liner screws, grommets... you get the idea. Whether OE or Aftermarket, we know our parts, we have the inventory and we’ll deliver everything together. You’d be nuts (part# 52950-14140) not to give us a try.

CALL US. 855-462-9042 Turn us on as a preferred vendor. ®

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 13

Southeast_Issue_0920.indd 13

8/17/2020 6:33:31 PM


Continued from Cover

‘Industry Relations’ Allstate, agreed the revamp offered an opportunity to be “evocateurs” to the industry. Allen said the point was to address “real challenges,” but stop talking “up and over.” The idea was to find something on which the industry could find more agreement, he said. “The CIC Industry Relations Committee will foster discussions that identify topics that the Industry would benefit from gaining alignment on,” the committee’s purpose states. Keller said “alignment” was the key word here. “How are we gonna do that?” he said. “Very carefully.” The committee planned a “very interactive” setup with open mics for a lively and engaging dialogue, he said. It also planned to leverage but not interfere with work done in other CIC committees, he said. Engaging other segments of the industry also was a goal, Allen said. For example, he said, if a paint company wanted to talk about an issue,

it should bring it to the committee. Committee member Amber Alley, of Barsotti’s Body and Fender, said she’s seen issues left in a stalemate during her 2.5 years on the Insurer-Repairer Relations Committee. “Neither side is wiling to give,” she said. She hoped the introduction of perspectives from segments outside of the auto body repair and insurance industries would lead to greater appreciation of others’ views and find actual resolutions, rather than applying “Band-Aids on problems that we all know exist.” Algie felt the new committee format could accomplish more than the old Insurer-Repairer Relations iteration. The presence of a third party might “calm the waters a little bit,” he said. The Industry Relations Committee’s plans for its first two official CIC discussions suggest its new direction. During the SEMA Week CIC meeting, the body would discuss operating in a pandemic, Keller said. (The live SEMA has since been cancelled, but CIC plans to convene in November, albeit virtually.) The January 2021 CIC

THE RIGHT FIT FOR THE PERFECT FINISH. Check out MoparRepairConnection.com for resources, promotions and technical information.

would examine artificial intelligence, Keller said. “This is a great starting point,” Alley said of the planned conversation on COVID-19 lessons. Nobody had experienced such a thing, and it would be naive to assume anyone in the room emerged without some negative impact, she said. Sharing successes and failures from the experience could lead to a vision for the future, she said. The committee provided a teaser of sorts for the COVID-19 discussion with comments from two of the panel’s insurers. Committee member Scott Kohl, of Liberty Mutual, noted his company has about 3,500 shops on its direct repair program. “It hit each one very, very different,” he said of COVID-19. Fellow committee member Jonathan Chase, of National General, pointed to the matter of cleaning fees. All stakeholders wanted to collaborate and do the right thing, but different parties obtained information in “different spots,” he said. Since the issue is fresh in everyone’s mind, it can be used as an example of how to to work better

together in the future, Case said. The committee wasn’t trying to say anyone acted incorrectly; rather, it wanted to discuss the different approaches, he said. Treating the cleaning issue as a case study would make everyone more effective, he said. Chase recalled “being confronted daily” with a changing environment and talking to “MSO partners” and other vendors and peers. Everyone wanted to take care of the customer and deliver safety, but the experience still proved difficult “because we weren’t all talking together,” Chase said. If the topic of cleaning a car left stakeholders struggling, it could be even harder to handle a customer complaint about their Level 5 self-driving car, but “it’s coming,” he said. We thank Repairer Driven News for reprint permission.

FREE

4x Monthly E-Newsletter.

www.autobodynews.com

PROTECT YOUR CUSTOMER’S INVESTMENT WITH ORIGINAL MOPAR PARTS ®

Authentic Mopar Parts are built to fit perfectly and function properly every time. This ensures that your customers are getting the highest quality parts manufactured to meet the original specifications and safety standards of their vehicle. MAP TO BE INSERTED INTO JIM COGDILL AD FOR BILL DOYLE - AUTOBODY NEWS Providing more peace of mind for each customer you serve. ®

JIM COGDILL CHRYSLER DODGE JEEP RAM

Toll Free: (800) 756-1611 Order Hotline: (865) 690-1611 Fax: (865) 693-2964

8544 Kingston Pike Knoxville, TN 37919

Mon.–Fri. 7:00 a.m.–6:30 p.m. Sat. 7:00 a.m.–4:00 p.m.

parts@jimcogdilldodge.com www.jimcogdilldodge.com

75

DELIVERY AREA Cookeville

Rockwoodd

14 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com 42576_COL10_H_AB.indd 1

Southeast_Issue_0920.indd 14

Chattanooga

75

40

Sweetwater

©2020 FCA US LLC. All Rights Reserved. Mopar is a registered trademark of FCA US LLC.

Middlesboro

Gate City Kingsport

La Folletto

Oak Ridge Crossville Harriman

TENNESSEE

Coeburn

KENTUCKY

Williamsburg

775

129

75 Madisonville

Morristown 81 Jefferson City Greenville 26 Newport Knoxville 40 Asheville Waynesville Robbinsville

81 Johnson City

40

NORTH CAROLINA

Cleveland

12/11/19 11:52 AM

8/17/2020 6:33:34 PM

AB


TOUCH-UP SYSTEM

®

Eliminate imperfections Not your paint job The smartest and most advanced DRY touch-up system used by professionals in refinishing is now available in more options.

TOTAL DRY SYSTEM

No water needed, less mess on spot repairs. Easy progress monitoring with the wipe of a towel.

SUPER SHARP ABRASIVES

PSA backed abrasive that cuts fast and smooth.

FLEXIBLE BONDING

Extremely shallow & uniform scratches. Prevent over-sanding and reduce buffing times.

REMOVE NIBS & RUNS

THE RIGHT TOOL FOR DIFFERENT JOBS

Nibs & Runs after painting can now be removed effortlessly. Tolecut comes in 8-cut, 4-cut, full sheets, and discs.

Tackle curved areas with Toleblock QS or Toleblock QM. For long runs or sags, use Toleblock M with 4-cut block sheets.

Grades K-800 to K-3000 Each Tolecut grade cuts like a faster grit, while giving you the finish of a finer grit. Save time and labor cost with Tolecut.

SMALL NIBS

K-3000

K-2500

MEDIUM NIBS

K-2000

K-1500

LARGE NIBS & RUNS K-1200

K-800

Toleblock M w/ 4-cut Block Sheet

Ask your local representative or SCAN for more details

ABN202008_tolecut.indd 1

Southeast_Issue_0920.indd 15

EagleAbrasives.com

Tel: 888-68-EAGLE (32453)

By

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 7/17/2020 2:15:10 PM 15

8/17/2020 6:33:37 PM


FL Selected to Participate in Federal COVID-19 Vaccine Pilot Program by John Haughey, The Center Square

Floridians will be among participants in a pilot program the Trump administration is launching to not only test a potential COVID-19 vaccine but also how it would be distributed. Florida Surgeon General Scott Rivkees revealed Florida will join Minnesota, California, North Dakota and the city of Philadelphia in the pilot program. Rivkees said he had few details, but he told hospital officials during a conference call details “will be coming as vaccines become available.” Congressional Quarterly Roll Call on Aug. 10 first reported the pilot program—the first step in the Trump administration’s Operation Warp Speed initiative, which aims to deliver 300 million doses of a safe, effective vaccine for COVID-19 by January 2021. The plan, which is not yet public, was confirmed by the four state health departments tabbed to participate in the pilot program. The Florida Department of

Continued from Cover

Survey Finds to keeping all of his staff working,” an estimator who is one of nine employees at a shop in eastern Pennsylvania said. Shop optimism had also rebounded a bit from what it was in the spring. In the second half of April, 15% of shops said they were “very” or “extremely” concerned about their business surviving even just the next month, and 25% felt that way when they looked out three months. By June, those rates were cut by about half, with just 8% worried about the next month and 14% worried about making it into the fall. In April, only half of shops said they were not very, or at all, concerned about being in business next spring; in June that had nudged up to three in five shops, with just 16% saying they are “very” or “extremely” concerned about still having their doors open a year from now. “People are using their cars as safety bubbles to go out and explore,” a survey respondent in Texas

Health (DOH) also offered scant details, with a spokesman telling Congressional Quarterly it plans “to meet with representatives from the CDC to establish the details, however, an agenda for that meeting has not been created at this time.” According to Congressional Quarterly, officials from the federal Centers for Disease Control and Prevention (CDC), the Pentagon and White House COVID-19 Task Force plan to conduct site visits to the four states and Philadelphia during the vaccine trials to develop “model approaches” for other states based in distributing a vaccine once one is approved. Scientists around the world are racing to develop vaccines to slow COVID-19’s spread. Russian President Vladimir Putin announced Aug. 11 the approval of a vaccine, which would be the first specifically crafted for the coronavirus. Putin’s announcement has been meet with near-global skepticism. Public health experts estimate at least 70% of the population must

be vaccinated to achieve “herd immunity” and have been lobbying for a national strategy to develop and distribute a COVID-19 vaccine. They fear demand will outpace supply and devolve into a repeat of the same scattershot approach that has engendered dysfunctional state-by-state testing standards and the helter-skelter distribution of personal protective equipment across the nation’s 50 states. An effective distribution plan would need to include the uninsured and convince skeptics to be inoculated by a vaccine. Logistics, potential supply chain shortages and patient monitoring standards are among issues the pilot distribution program should focus on, the Association of Immunization Managers (AIM) said in a letter, noting it has not been excluded from discussions with the CDC and White House. “The enterprise to deliver and administer this vaccine to every American who wants it will be the greatest public health effort of our generation,” AIM said. “We seek

to enhance the close coordination and cooperation between federal, state, local, and tribal authorities that will be necessary to achieve success.” The National Governors Association’s (NGA) best practices committee issued a memorandum Aug. 3 imploring states to prepare vaccine distribution plans. “Although a vaccine is not yet available, lessons learned from the acquisition and distribution of COVID-19 diagnostics and therapeutics suggest that governors may want to begin addressing the challenges of mass distribution before its arrival,” NGA said. “Immunizing the U.S. population against COVID-19 will likely require the single-largest vaccination campaign ever undertaken, and governors will play a key role in bringing together leaders from their state public health, immunization and emergency management systems to design and execute the operation.” We thank The Center Square for reprint permission.

said. “Collisions will continue.” Across a total of 151 shops that reported February to May monthly revenue figures in June, the combined total monthly revenue fell from $39 million in February—an average of $261,000 per shop—to $38 million in March, $27 million in April and $23.5 million in June—an average of $156,000 per shop, and a cumulative loss of more than $29 million. Interviews with some shops this summer offered anecdotal evidence that revenue patterns vary widely by market. “For whatever reason, in our area we’re usually about 30 to 45 days behind other businesses,” said Tim Cockrell, owner of two Cockrell’s Body Shop locations in Alabama. “March and April and May were down 15% or 20%, but all of a sudden in June, it went down to 50%.” Richard Fish, owner of six Fix Auto USA franchises in Southern California, saw things turn in the opposite direction, but also vary by location. “In June, we were at 78% of our baseline sales. So we’ve seen some rebounding,” Fish said. “At our worst [this spring], we were close to 50%.”

16 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 16

8/18/2020 6:12:15 PM


CAR-O-LINER MEASURING SYSTEMS FAST – ACCURATE – EASY TO USE

OEM

APPROVED PRODUCTS

Navigate from estimating through the most difficult repairs with THE POWER OF VISION2 SOFTWARE VISION2 X3 • • • • •

POINTX® II

Lower and upper body measuring High Measurement Point (HMP) Upper body point-to-point measuring Suspension and surface damage diagnosis Works with EVO™ anchoring, fixturing and holding systems

• Quickly find correct measuring points with the photo-based system • Electronic documentation with printed report – Get paid for your work. • Vehicle datasheet search-ability • User-friendly interface with an easy-to-learn intuitive workflow

Advanced software features are only available on Vision2 X3

CONTACT YOUR LOCAL DISTRIBUTOR FOR A DEMO TODAY! CAROLINA COLLISION

Carolina Collision Equipment, LLC (704) 662-7070 larry@cce-nc.com

Filterworks, USA (954) 422-8900 bobz@filterworksusa.com

Car-O-Liner Southwest, Co. (972) 412-5147 tcurran@car-o-linersw.com

Shop Teks Equipment (770) 806-9667 ed@shopteks.com

CAR-O-LINER SOUTHWEST

SHOP TEKS

FILTERWORKS

www.car-o-liner.com • 1-800 521 9696

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 17

Southeast_Issue_0920.indd 17

8/17/2020 6:33:37 PM


Continued from Cover

Midyear Updates terms has been a positive development. Most loans are expected to be largely forgiven. An interesting side note: anecdotally, most of the MSOs and shops that received PPP loans during the first application period obtained those loans from small and local banks and credit unions. Evidently the big banks focused on their largest customers. During the second application period, more loans were obtained from some of the big banks, but many MSOs not only didn’t get big bank loans, but some never even heard back after their inquiries. M&A Activity The current level of mergers and acquisition activity keeps surprising us. Not surprisingly, the top two national consolidators continue to make offers and acquire independent shops and MSOs. But private equity firms have really stepped up their interest and investments. Five super region-

al MSOs are also in acquisition mode. Add to these numbers several dozen sub-regional MSOs that are continuing to make acquisitions largely using internal capital sources. Finally, Driven Brands now owns a nine-shop MSO and is pursuing more acquisitions. Private Equity Interest is Driving Activity Industry buyers have changed dramatically in five years. Five years ago, the most active buyers included the four big consolidators—ABRA, Caliber, Service King and Gerber— plus seven regional MSOs—Pacific Elite, Kadels, Cooks, Craftsman, Joe Hudson, Classic Collision and Car Care—and one PE firm, Carousel Capital, which owned Driven Brands. In the years since, almost all of those firms have disappeared into larger firms. ABRA bought Cooks Collision, then sold to Caliber ABRA bought Kadels Pacific Elite got bought by PEbacked Crash Champions Car Care got bought by Service

King Joe Hudson got bought by TSG Consumer private equity Carousel owned Driven Brands, which it subsequently sold to Roark Capital Classic Collision was acquired by New Mountain Capital We attribute the activity and the values to the number of new entrants into the collision space, mostly private equity firms—the highest we’ve seen in 20 years. New PE entrants have come flocking back to the market looking for opportunities that will benefit from increasing consolidation. Most see the stability and non-cyclical nature of collision repair as effective cash generators with modest risk. Some are looking to buy and then sell out to someone larger. And some are probably looking to coat-tail Caliber and Driven, if and when they have IPOs. PE firms come in lots of sizes and varieties. The new participants range from $350 million in assets to more than $16 billion. Some are inexperienced in the industry but anx-

Auto Pro Booths / Auto Standard Booths / Cargo XL Booths / Prep-Stations

NOW $393* / Month

$19,900

NOW $490* / Month

$24,900

NOW $590* / Month

$29,900

STANDARD FEATURES ON ALL UNITS: DIM: 14’Wx9’Hx27’L UPGRADES ARE AVAILABLE

ious to learn. Some have hired CEOs who are highly skilled executives. Others have already found their platforms and are aggressively expanding. Ten are still looking for their first platform! All of them are looking for high quality large MSOs in major metro areas. Deal Terms and Structures Today Five years ago, structures involved a variety of cash, stock, debt and earnouts with most deals being done for cash. Some deals were done as stock purchases, though most were asset purchases. Multiples ranged from five to nine times reconstructed EBITDA, with some outliers for very large MSOs. Increasingly, deals are being measured on purchase price to revenues, with smaller shops in the 35% to 45% and medium size MSOs in the 65% to 90% of revenues, depending upon the strategic fit, EBITDA levels and ongoing management teams. Today, we see the same variety of consideration with most all deals still being done as asset purchases. During this time of COVID, many are structured with both cash and ear-

/ Industrial Open Face

(FREE SHIPPING) Within 48 hrs

NOTE: Free shipping to the lower 48 states excluding Alaska and Hawaii. Ask for more details

Auto Pro Booths / Auto Standard Booths / Cargo XL Booths / Prep-Stations

/ Industrial Open Face

410 E. GRANT LINE RD BLDG 1. TRACY, CA 95376 - TEL 209.831.9209 - FAX 209.666.2089 - EMAIL INFO@SPRAYBOOTHS.NET

18 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 18

S 1 N

202

8/17/2020 6:33:40 PM


nouts with performance hurdles— some EBITDA based and some revenue based. Some are structured to share the risk between the sellers and the buyers. Multiples are trending lower for plain vanilla acquisitions but remain robust for quality platforms. OE certifications are driving increases in values—especially highend brands. National Consolidators Just Keep on Buying Assisted by an additional capital raise in the second quarter, Gerber has acquired more than two dozen shops so far in 2020, including nine in Southern California, as it enters the largest U.S. market for the first time. Caliber Collision added more debt capital and continues its growth even as its revenues have slowed. In late July, it acquired one of the premier MSOs in the Southeast, when it closed on Professional Collision of Mobile, AL. Multi-Regional MSOs Are Growing Most Rapidly Illinois-based Crash Champions, led by Matt Ebert, reached from Chica-

go across to Southern California to acquire 14-shop MSO Pacific Elite early this year using both equity and debt capital. In February, Crash added three shops in Ohio, and is on the hunt for more. Former ABRA senior executives with the backing of a highly credible sponsor, New Mountain Capital, are deploying millions of new equity capital following their takeover of Classic Collision in Atlanta last year. Led by CEO Toan Nguyen, Classic expects to challenge Joe Hudson’s position as the fourth-largest operator in the U.S. Classic now has eight of its 37 locations in south Florida, including the acquisition of the former Carolina Auto Body. (Full disclosure: Focus Advisors represented Carolina Auto Body.) Joe Hudson’s continues to beef up its management ranks and consider additional acquisitions across its Sunbelt markets. Texas-based ProCare acquired six-shop Houston operator Hodges Collision to bring its total to 41 shops. Regional MSOs are Preparing for Growth

Chilton Auto Body, a 12-shop MSO in the San Francisco Bay Area, recently hired Chris Abraham, former CEO of Service King, and a team of acquisition professionals with expectations of growing substantially. Oklahoma-based Collision Works added eight shops with a large acquisition last year, and now operates 33 locations in Oklahoma and Kansas. The Collision Works team is sized to add more capital and acquisitions. Franchise and Affiliation Opportunities Accelerate Franchisors and banner networks are finding increasing success as operators seek multiple ways to increase partnerships and revenues. Driven Brands’ portfolio of franchisors—CARSTAR, ABRA, MAACO and FIX USA—is continuing to add franchisees, as well as expand its portfolio of other automotive industry participants. Driven’s April acquisition of FIX USA and its largest franchisee, Auto Center Auto Body, reinforced its hold on most of the “waterfront” franchise opportunities. (Full disclosure: Focus Advisors

represented FIX USA.) Two banner groups, CCG and 1 Collision are growing as well. 1 Collision, which has now merged with Canada-based CSN, is expecting to rapidly add new affiliates to its current U.S. network of 50 shops. Together, the combined companies have more than 280 shops. California-based Certified Collision Group now claims more than 450 shops with $2 billion in gross revenues across the U.S. With some of the country’s largest independent MSOs in the fold, CCG is focused on helping them gain additional DRP and vendor relationships. Our Expectations Our best estimate is that 2020 will end with revenues annualizing at 80% of 2019 revenues. A realistic expectation for 2021 is that shop revenues will return to 2019 revenues. Miles driven will continue to be negatively impacted by a slowly returning economy, but positively impacted by people’s willingness and need to travel more securely without exposure to potential See Midyear Updates, Page 22

PULL UP! Repair System Glue gun Electropuller (optional)

Slide Hammers

Suction cups

Repair cosmetic and structural damage

Thread pivots

Suitable for both aluminum and steel panels

Up to 5 tons of pulling capacity

Spanesi Americas, Inc. 123 Ambassador Dr. STE 107 Naperville, IL 60540 2020 - 07 Auto Body News Spanesi FP Ad V0520 REV1.indd 1

Southeast_Issue_0920.indd 19

2 2 4 - S PA N E S I (224-772-6374)

www.spanesi-americas.com www.facebook.com/spanesiamericas autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 19

5/27/20 8:27 AM

8/17/2020 6:33:44 PM


Continued from Cover

PPP Forgiveness ic,” Peterson said July 23 during the AICPA’s weekly Town Hall covering PPP and other issues related to the COVID-19 recession and recovery efforts. Erik Asgeirsson, CEO of CPA.com, the technology and business subsidiary of the AICPA, said during the Town Hall the SBA and Treasury are not expected to release the expected 25 to 30 FAQs before President Donald Trump signs new relief legislation. Congress is trying to hammer out a package before going on recess Aug. 8. Even if the FAQs do come out, the SBA issued a procedural notice July 23 that indicated it would not begin accepting PPP forgiveness submissions from lenders until a new software-as-a-service platform currently under development goes live Aug. 10. The SBA said the launch could be delayed if new legislation changes the forgiveness process in ways that require changes to the new platform. The SBA’s notice adds another reason for waiting to work on PPP loan forgiveness applications to those covered in an AICPA blog post that published July 14, said Mark Koziel, CPA, CGMA, the AICPA’s executive vice president of public practice. “We have to be as patient as possible,” he said. The real PPP forgiveness deadline Kari Hipsak, CPA, CGMA, an association senior manager, said in an interview the important deadline in the PPP forgiveness process doesn’t come until 10 months after

the end of the loan’s covered period. At that point, if forgiveness forms have not been submitted, the funds officially become a loan that needs to be repaid. Hipsak said it’s best for borrowers to take their time and make sure they have as much information as possible so they can maximize loan forgiveness. “There’s no need to rush through the forgiveness,” she said. “A lot of businesses, I think, want to put the forgiveness behind them, but there are still a lot of unanswered questions. And so as long as there’s not a deadline to have this application submitted, other than 10 months after the end of the covered period, it’s really a business decision.” Some additional considerations related to PPP forgiveness include: Questions about utilities: Utilities are among the items besides payroll that borrowers can pay with PPP funds. But there are questions about what qualifies as a utility under the PPP guidance. “It includes the basics, such as trash collection, water, electricity, etc., but we get a lot of questions about business-specific utilities,”

Choose Original MINI Parts. MINI of Charleston 1518 Savannah Hwy Charleston, SC 29407

AUTOBODY Don’t Miss the Weekly

855-831-0254 Hours: Mon-Fri 7:30-6 Sat 8-5 rhminiparts@hendrickauto.com

Industry NEWS

Hipsak said. “And there is even some guidance that indicates that transportation costs such as fuel for a business vehicle is includible. But we don’t have all the answers for that yet.” Internet services, which have become even more vital in this time of social distancing, appear to qualify as utilities under the PPP, Hipsak said. Many exceptions to full-time-equivalent (FTE) rules: The PPP was designed to help organizations keep paying their employees as pandemic-related closures and slowdowns reduced revenue. As a result, employers who reduce their workforce generally see a reduction in their PPP forgiveness eligibility amount. But there are numerous exceptions for situations such as: An employee who was offered a chance to return to a position but refused. An employee who was fired for cause or voluntarily resigned. An employee who voluntarily requested and received a reduction in hours. There are additional exceptions as well to the FTE and wage rules,

HENDRICK VOLVO CARS OF CHARLESTON

CITY KIA OF GREATER ORLANDO

1464 Savannah Hwy. Charleston, SC 29407

9550 S. Orange Blossom Trail Orlando, FL 32837

888-830-9275 843-556-4604 Fax www.hendrickvolvocars.com

M-F 7:30am-5pm Sat 8am-5pm

407-956-6601 407-554-5910 Fax parts@citykia.com M-F 7am-7pm Sat 7am-3pm Sun 8am-4pm

Wide Delivery Area Competitive Wholesale Pricing

Your Shop Needs.

 

Sign Up Free Today! www.autobodynews.com

and borrowers should be aware of them when they apply for forgiveness. Clarification needed for self-employed borrowers: PPP guidance states that self-employed individuals must compare their 2020 income with their 2019 income to determine their maximum eligible compensation. “If you’re a self-employed individual, how do you prove what you got paid in 2020?” Hipsak said. “That’s one big question that remains for self-employed individuals.” Documentation is critical. The forgiveness applications are extremely detailed, and the final rules are uncertain in some areas. Some documentation isn’t required for submission with the forgiveness application but is required to be retained by the borrower. So it’s important to keep documentation of any facts that could become an issue related to forgiveness. “It’s always easier to be prepared going into something than having to look in hindsight and collect all the necessary data,” Hipsak said. We thank the Journal of Accountancy for reprint permission.

©2020 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.

Wide Delivery Area Competitive Pricing

Volvo Genuine Parts.

20 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 20

8/17/2020 6:33:45 PM


e of ive-

-emance duals with their

Choose Only Original

OEM PARTS!

inwhat said. ains

The exules

reforired . So ntaome

ared g to the

Large Inventory

Competitive Pricing

Acn.

Prompt & Dependable Delivery

Exceptional Customer Service

HOURS M - F 7-6 SAT 8-4

DALE EARNHARDT JR. CHEVROLET Wholesale Parts Direct Line

(850) 580-7695 Fax: (850) 574-2034

3127 W Tennessee St l Tallahassee, FL 32304

Your Local Parts Dealers

DALE EARNHARDT JR. BUICK GMC CADILLAC Wholesale Parts Direct Line

(850) 391-5470 Fax: (850) 402-4359

1850 Capital Circle NE l Tallahassee, FL 32308 autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 21

Southeast_Issue_0920.indd 21

8/17/2020 6:33:48 PM


Continued from Page 19

Midyear Updates infections. With many more vacation and business trips being taken, miles driven should be positively impacted. The Federal Reserve has been cautioning that damage to the entire economy is profound, deep and expected to impact us all for years ahead. So, while we are inclined to be optimistic, we believe caution is more realistic. When there is a widely available and distributed COVID-19 vaccine, revenues will accelerate rapidly as confidence in normal economic activity returns and overall economic growth begins to accelerate. What is the net result for the collision repair industry? Continued uncertainty, but not widespread disaster. Questions we answer every day: Should I sell now or should I wait two years until the economy and my revenues improve? For some folks, their age and their lack of a successor dictates they sell now. Others with a succession

plan—or, even better, a growth plan— have the best of both worlds. Acquirers are still looking favorably on targets today. In two years they may be less aggressive because they will have already bought their key platforms and may only looking for smaller fold-in acquisitions. For sub-regionals determined to grow into super regionals, accessing capital today is likely to be easier than in two years because of strong PE interest. Values are always suppressed when there are many sellers and a limited number of buyers. If everybody is heading for the exits at the same time, there is a danger some deals just won’t get done and that acquirers will use that opportunity to reduce valuations. Everything else being equal, savvy sellers prefer to go into the market when there are more buyers and fewer sellers. For many owners, it’s a balancing act between the growth they expect in the years ahead versus the opportunity to sell when there are multiple buyers willing to make them fair offers. With trillions and trillions of dollars being spent by the government to

prevent the collapse of the economy, there will come a time, sooner rather than later, where taxes will rise to begin reducing the debt. Our expectation is that capital gains taxes are likely to rise first. Closing a transaction in 2020 may avoid a significantly greater tax hit in 2021. What kind deal structure is possible today? Acquisition deals are likely to be structured differently than in the past. We expect less cash up front and more earned out by achieving performance hurdles over time. Sellers may also be asked to finance part of the acquisition price. On the plus side, many of the private equity investors are creating vehicles in which sellers can roll over a portion of their sale proceeds into equity ownership positions.

Will these new investors actually close on the offers they have extended? Most professional buyers that issue Letters of Intent have an established track record of honoring their purchase commitments. Even in the time of COVID, deals negotiated before the pandemic hit were largely fulfilled, although some had structural and hurdle requirements added. Inexperienced or first-time buyers may have a harder time holding the pricing of their offers as their private equity sponsors have fewer transactions under their belts. And if there is a long-term recession of incredible depth, that would be a material change that would impact valuations and closings. We thank Focus Advisors for reprint permission.

Call or Email Now for Rates: AUTOBODY ltedesco@autobodynews.com

800-699-8251

Genuine Collision Parts, Fit and Finish. Proudly Serving: Georgia, Alabama, No. Carolina, S. Carolina, Tennessee & the Florida Panhandle CERTIFIED PARTS SPECIALISTS Roger Rowland 478-464-2937 rrowland@riversideford.net Wesley Burchfield 478-464-2961 wburchfield@riversideford.net Ken Mills 478-464-2955 kmills@riversideford.net Darian Thompson 478-464-2958 dthompson@riversideford.net Andy Stokes 478-464-2946 astokes@riversideford.net Will Mizell 478-464-2962 wmizell@riversideford.net Ted Siepman 478-464-2914 tsiepman@riversideford.net Buddy Tucker 478-464-2953 btucker@riversideford.net Cody Turner 478-464-2947 wturner@riversideford.net

Parts:

• 3.8 Million in Ford, Lincoln, Mercury Inventory • Next Day Delivery Available • Over 150 Years Combined Parts Experience • Top 25 Parts Wholesalers in the USA. Parts Hours: Mon-Fri 8am - 5:30pm

800-637-4807

877-750-0590 Toll free fax

2089 Riverside Drive, Macon, GA 31204 22 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 22

8/17/2020 6:33:50 PM


autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 23

Southeast_Issue_0920.indd 23

8/17/2020 6:33:50 PM


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

FLORIDA

GEORGIA

GEORGIA

NO. C

Freeway Honda

Headquarter Honda

Ed Voyles Honda

Nalley Honda

Va

800-987-0819 205-949-5460

800-497-2294 407-395-7374

800-334-3719 770-933-5870 Direct

866-362-8034 770-306-4646

De

Hendrick Honda Pompano Beach

Gerald Jones Honda

Birmingham

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

AutoNation Honda Clearwater Clearwater

888-205-2564 727-530-1173

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

AutoNation Honda Hollywood Hollywood

800-542-8121 954-964-8300

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

Classic Honda Orlando

888-893-4984 407-521-1115

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

Coggin Deland Honda Deland

Clermont

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

Pompano Beach

954-425-8244

Marietta

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

800-733-2210 706-228-7040

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

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

Rick Case Honda

Honda Mall of Georgia

877-544-2249

678-318-3155

Davie

Buford/Gwinnett

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

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

South Motors Honda

Milton Martin Honda

888-418-3513 305-256-2240

770-534-0086 678-989-5473

Miami

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

Gainesville

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

Honda of Newnan

GEORGIA

Newnan

Carey Paul Honda Snellville

770-985-1444

678-423-8183

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

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

Union City

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

SO. C

B

MISSISSIPPI

Patty Peck Honda Ridgeland

800-748-8676 601-957-3400

D fm

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

Apple Tree Honda

De

Asheville

800-476-9411 828-684-4400

TENN

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

Crown Honda Southpoint Durham

855-893-8866 919-425-4711

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

Dept.

A

McKenney-Salinas Honda

800-758-0007 386-626-1811

Gastonia

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

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

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

ACURA FLORIDA

FLORIDA

GEORGIA

NO. CAROLINA

VIRGIN

Acura of Orange Park

Rick Case Acura

Nalley Acura

Leith Acura

888-941-7278 904-777-1008

800-876-1150 954-377-7688

800-899-7278 770-422-3138

800-868-0082 919-657-0460

Jacksonville

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

Duval Acura Jacksonville

800-352-2872 904-725-1149

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

Fort Lauderdale

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

Marietta

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

Cary

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

Jackson Acura

Flow Acura

Karen Radley Acura

877-622-2871 678-259-9500

800-489-3534 336-761-3682

800-355-2818 703-550-0205

Roswell

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

Winston-Salem

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

Woodbridge

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

24 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 24

8/17/2020 6:33:51 PM


NO. CAROLINA

-5 m

a

4

oint

-6

onda

4

30

VIRGINIA

Vann York Automall

Bill Gatton Honda

West Broad Honda

336-841-6200

800-868-4118 423-652-9545

800-446-0160 804-672-8811

High Point

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

-5

a

TENNESSEE

SO. CAROLINA

Bristol

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

Breakaway Honda

Wolfchase Honda

800-849-5056 864-234-6481

800-982-7290 901-255-3780

Greenville

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

Piedmont Honda Anderson

800-849-5057 864-375-2082

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

Richmond

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

Bartlett

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

Checkered Flag Honda Norfolk

800-277-2122 757-687-3453

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

TENNESSEE

Airport Honda

Hall Honda

800-264-4721 865-970-7792

800-482-9606 757-431-4329

Alcoa

Virginia Beach

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

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

AutoNation Honda West Knoxville

Valley Honda

Knoxville

800-824-1301 865-218-5461

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

Staunton

800-277-0598 540-213-9016

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

VIRGINIA

Radley Acura Falls Church

800-550-5035 703-824-5785

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

ra

8-3 p.com

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 25

Southeast_Issue_0920.indd 25

8/17/2020 6:33:51 PM


with Stacey Phillips

Techs of the Future

Stacey Phillips is an award-winning freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

with Stacey Phillips

The Importance of Creating Lifelong Learners and Implementing Hands-on Efficiency Training Over a year ago, Jeff Smith, a collision repair instructor at the Northeast Arkansas Career and Technical Center, reached out to me about the overwhelming shortage of technicians. As a result of our conversation, I initiated a new column for Autobody News magazine called Solving the Tech Shortage, which has since received an award. At the time, shop owners and managers faced a shared challenge: how and where to find new technicians. My intent was to come up ways for the industry to discuss ideas on how to solve this problem. Since then, our industry has encountered new unexpected challenges due to the pandemic. In light of the recent changes in shops across the country, I felt it was appropriate to rename the column to “Add name of column” and focus on ways body shops can help recruit, develop and retain technicians for the

future. I encourage you to reach out to me with any ideas you would like to share with others in this forum. Workforce development and technician recruitment remain a top priority for repair shops across the country. Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), said there are some unique initiatives currently taking place in the industry. “The reality is the gap we have is far too wide for any one program to simply wipe away,” said Schulenburg. “The more opportunities there are to pull people into this industry, bring them up to speed with what they need and get them ready to be producing on the shop floor, the more the industry will benefit.” During the SCRS open board meeting in July, the association invited two educators from Ranken

A few years ago, John Helterbrand recognized many of the students graduating from the automotive collision repair program at Ranken Technical College in Missouri couldn’t find a job. Although they had successfully earned their associate’s degree, were eager to work and had a good work ethic, the department chair of the program said they weren’t being hired by the collision repair industry. “As an educator, that’s a big problem,” said HelJohn Helterbrand, right, department chair of the automoterbrand. tive collision repair program at Ranken Technical College, with students Spencer Woodall and Robert Burkett As a result, he set out to make some changes. Heland how they are making a differ- terbrand reached out to the school’s ence. advisory board, and then talked to students to learn about their conCreating Lifelong Learners at Ranken cerns. He soon found retention was Technical College one of the main issues. Technical College and Matrix Trade Institute to share information about the programs they have established

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

Coggin Deland Honda 2677 N. Volusia Avenue Orange City, FL 32763 Parts: Fax:

800.758.0007 386.917.1403

Mon-Fri 7:30am-6:00pm Sat 7:30am-4:30pm

26 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 26

8/18/2020 6:13:20 PM


“Students felt they didn’t fit into a shop’s culture or were making a difference; they were essentially lost in the business model,” said Helterbrand. “We’re all so busy doing processes, we forget we’re people.”

Two students at Matrix Trade Institute mapping a vehicle with one of the institute’s blueprint/ technical writing stations

Worst of all, according to Helterbrand, he found employers were often shortsighted and convincing students they didn’t need an education. “For a student, who has low self esteem, that’s detrimental for their success because they always feel like they aren’t completing something,” said Helterbrand.

Helterbrand also reached out to several OEMS in the industry with internships programs, including Toyota, Honda, GM and Ford. He found retention was very high within these programs and wanted to learn more about how they keep students motivated. “The OEMs do a very good job of what I call ‘culture experience,’” he said. A pilot project was then initiated at Ranken College using the best practices from the OEM programs. It consists of five semesters of learning, which includes a semester of aluminum training. As part of Ranken’s program, students are paired with a mentor. Together, they follow an operator game plan, outlined in a booklet that walks them through the learning process. The intent is to keep track of what is accomplished, so neither the mentor nor the student becomes overwhelmed. “The idea behind the automotive program is to make somebody productive on Day One,” said Helterbrand. This may include teaching students about tear down methods,

FORD

detailing or R&I. Industry training is provided from organizations such I-CAR, SP/2 and ALLDATA. A set of tools is also given to each of the students.

Nico is a student at Matrix Trade Institute

“If we are going to put our students to work, we need to make sure they have tools,” said Helterbrand. “We don’t want them digging in other people’s toolboxes.

They need to have something they feel is theirs.” In addition, students learn about shop culture and develop interviewing skills. The goal is to find a place for them to work in the industry after the first eight weeks of hands-on training. Helterbrand said Ranken Technical College and other accredited technical colleges and high schools must ensure students are receiving high quality education so they are marketable when they graduate. “The industry plays a very big role in this,” said Helterbrand. “We have to be able to help students prepare themselves for the industry.” Working together, his hope is they create lifelong learners who aspire to be part of the industry for the long term. More information about the pilot program is expected to be announced in late summer 2020. Implementing Hands-on Efficiency Training at Matrix Trade Institute Dustin Peugeot, CEO and co-founder of the Matrix Trade Institute, said See Lifelong Learners, Page 33

Parts Direct

866-520-7893 770-964-8604 Local

PARTS HOURS Mon-Fri 7am - 6pm Sat 7am - 5pm 4355 Jonesboro Road, Union City, GA 30291

22 Trucks Delivering to Georgia, Alabama, South Carolina Over 3 Million in Parts Inventory 8 Wholesale Reps with Over 150 Years of Experience to Take Your Calls autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 27

Southeast_Issue_0920.indd 27

8/17/2020 6:33:55 PM


Hey Toby! with Toby Chess

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

An Overview of Corrosion Protection Products: Part 2 of 2 This is the continuation of Corrosion Protection: Part 1, printed in the August issue of Autobody News.

applied. Seam sealer tape can be removed and repositioned until it is firmly pressed into place with a roller (See Fig. 15) which sets the adhesive.

will lead to an adhesive failure.

California Autobody Association with David McClune

Fig. 14

DTM sealers (Fig. 14) have the same characteristics as the generally Single part seam sealers (Fig. used seam sealers, but has corrosion 12) are an NVH control material. Its inhibtors added so it can be applied to John Yoswick bare metal. primary purposewith is to keep out moisNo OEMs recognize the use of ture, wind and sound, and it is used on all joined metals. It dries by at- these seam sealers. They all state tracting moisture and will take longer there needs to be a barrier coat beto dry than two-part adhesives, gen- tween the bare metal and the seam sealer, perferably 2K epoxy primer. erally speaking. A friend of mine used a compaEvery OEM for which I have corrosion data requires a primer to ny’s DTM seam sealer with no primbe applied prior to the application of er on a new roof panel. The vehicle returned with all of the seam sealer seam sealer. lifting off the panel. He contacted with Richard Steffen the manufacturer of the product and they would not warranty the repair. They said he did not follow OEM procedures, which stated a coat of epoxy primer was needed to be applied prior to the application of the seam sealer. I just want you to be warned before you apply this seam sealer to bare metal.

Fig. 17

Fig. 12

Sound deadener (Fig. 17) is a two-part material used for noise, vibration and harshness. It can be used to fill large gaps, but I teach using it as an adhesive between the outer door skin and intrusion beam. Work time is about an hour and it is a non-expanding material that works well on horizontal as well as

Year in Quotes

Fig. 16

Make sure you clean the primed surface with a good wax and grease remover such as Acrysol (Fig. 16). Using your thumb to put the tape in place and not cleaning the surface

Collision Repair Association of CA.

Transition Planning with John Yoswick

inal

Choose Only Orig

R T S! CHEVROLET PA Dedicated Wholesale Staff Competitive Wholesale Pricess

HOURS:

Mon - Fri 7:30-8:00 Sat 8:00-2:00

(800)355-8202 3670 Jefferson Davis Hwy // Fredericksburg, VA 22408

Fig. 13

Two-part seam sealers (Fig. 13) are used just like the single component. They have a faster drying time than single-part sealers, but cost more. Control flow sealers are used in areas where a flowable self-leveling type seam sealer is required, as Fig. 15 The next type of seam sealer is it flows up to 2 in., then cures, prein the form of tape (Fig. 15). Comventing further with flow. Self-leveling Karyn Hendricks sealers are recommended for roof mon locations of use are the hood seam sealing and on drip rails and hem, door hem, deck lid hem and trunk opening seams. A fast drying, quarter panel arches. There is no dry non-sag, high build sealer is used for time so you can paint immediately. Do not stretch the tape as it is all other areas that need seam sealer.

Shop Showcase

inal

Choose Only Orig

RTS! CADILL AC PA Exceptional Customer Service Prompt & Dependable Delivery

HOURS:

Mon - Fri 7:30-5:30 Sat 8:00-2:00

(888) 705-1539 3421 Jefferson Davis Hwy // Fredericksburg, VA 22401

Shop Showcase

28 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

with David M. Brown Southeast_Issue_0920.indd 28

8/17/2020 6:34:00 PM


FIT AND FINISH IS NO PLACE TO GET CREATIVE. CONTACT US TODAY FOR A COMPETITIVE QUOTE ON YOUR NEXT COLLISION REPAIR ESTIMATE. ALABAMA

FLORIDA

AutoNation Chrysler Dodge Jeep Ram of Mobile 3118 Government Blvd. Mobile, AL 36606 Phone: (800) 873-6343 Fax: (251) 450-4505 Benchmark Automotive 1837 Grants Mill Road Birmingham, AL 35206 (205) 823-5237

Jacksonville ChryslerJeep Dodge Ram 11101 Nursery Fields Drive Jacksonville, FL 32256 (904) 493-5540

GEORGIA

NORTH CAROLINA

Ed Voyles Chrysler Dodge Jeep 789 Cobb Pkwy. S. Marietta, GA 30060 (770) 429-1100

Leith Chrysler Jeep 5500 Capital Blvd. Raleigh, NC 27616 (800) 849-2277

Troncalli Chrysler Dodge Jeep Ram 818 Atlanta Road Cumming, GA 30040 (770) 889-8951

S!

Hollywood Chrysler Jeep Hollywood, FL Phone: (800) 275-1938 Fax: (954) 929-0143 MOPAR WHOLESALE PARTS DISTRIBUTION CENTER

TENNESSEE Crown Chrysler Dodge Jeep Ram FIAT 2120 Chapman Road Chattanooga, TN 37421 (423) 591-6534

SOUTH CAROLINA Spartanburg Chrysler Dodge Jeep Ram 1035 North Church St. Ext. Spartanburg, SC 29303 (800) 849-3691 Stateline Chrysler Jeep Dodge Ram 800 Gold Hill Road Fort Mill, SC 29745 (800) 533-5844

VIRGINIA Greenbrier Dodge 1717 S. Military Hwy. Chesapeake, VA 23320 (757) 420-6728

WEST VIRGINIA Walker Chrysler Dodge Jeep Ram 102 Orchard Park Road Hurricane, WV 25526 (800) 888-8264

e y

S:

0 0

9

Check out MoparRepairConnection.com for resources, promotions and technical information.

01

©2020 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC.

ABN_SE_COL15_2018.indd 1

Southeast_Issue_0920.indd 29

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 29 7/31/20 10:32 AM

8/17/2020 6:34:01 PM


vertical applications. You will need a foam base to apply this material. I recommend use on sail panels on quarter panels and around the gas door pocket.

comes in direct contact with bare aluminum in the presence of moisture and oxygen. A chemical reaction occurs and aluminum will start to corrode, and it will not stop. If a coating, such as primer, is applied over the aluminum after the corrosion process has started, the corrosion process is known as filiform corrosion. (See Fig. 20).

flexible foams and rigid foams.

Fig. 20 Fig. 19

Fig. 18

Sound deadening pads (Fig. 18) are used on door skins, floor pans and quarter panels. They stiffen up a panel to help with noise reduction and vibration. Vibration can lead to an opening of a panel and moisture can get in, which could result in the formation of rust. Automotive foams are used for NVH control and, in the case of structural foam and rigidity, in place of using a steel reinforment. There are

These two-part materials are designed to eliminate panel flutter, water leaks, wind and noise, and duplicate OEM sound deadening on sheet metal. They eliminate oil-canning of door skins, hood/deck lids, roof panels, rear quarter assemblies and sail panels. Do not substitute it with commercial single-part foam found at home building supply stores, which is highly flammable and attracts moisture to expand. You will need to remove the foam from areas that will be welded. If the material catches on fire, cyanide gas and carbon monoxide will be released.

Panel adhesives (Fig. 20) are now considered a corrosion protection item. When the adhesive is applied, it forms a barrier so moisture cannot get in between the joints. Toyota has limited the use of adhesives to only weld bonding, a combination of resistance spot welds and glue, which are listed in its specific model repair manuals. Toyota (CRIB 158) does not approve of panel bonding as a substitution for welding. A final note on corrosion and aluminum: as you are aware by now, aluminum does corrode. The first kind is galvanic corrosion, which occurs when bare steel

Fig. 20a

The other type of corrosion occurs naturally. When bare aluminum is exposed to oxygen and moisture, a barrier coat known as aluminum oxide (Al3O2) forms on the surface. This material will not burn off—it melts at 3725 degrees F, whereas aluminum melts at 1220 degrees F. It causes porosity in the weld site. Adhesive, body repair pins and paint do

The right part makes the difference.

CE

OUR S S T R A IA P

YOUR K

Southside KIA • Genuine Kia OEM Parts • Same Day Delivery • Efficient Service on All Orders • Fully Stocked Inventory

Call Us First For All Your Parts Needs

904.400.6634 Fax: 904.400.6654

www.southsidekiajax.com jneeley@southsidekia.net Hours: Mon-Fri 7am-7pm; Sat 8am-4pm 9401 Atlantic Blvd • Jacksonville, FL 32225

30 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 30

8/17/2020 6:34:02 PM


Charlotte’s Premier Wholesale Parts Source • Delivery Twice a Day Within a 50 Mile Radius • Hot Shot Deliveries Within 5 Mile Radius

Mercedes-Benz of South Charlotte 950 N. Polk Street Pineville, NC 28134

704-889-2310 Mon - Fri: 7-7 Sat 8-4

Qualified Parts Professionals to better serve you

Felix Sabates Ford Lincoln 7601 South Blvd. Charlotte, NC 28273

855-216-2356 Mon-Fri 7-6 Sat 7-4

Scott Clark Nissan 9215 South Blvd Charlotte, NC 28273

704-553-1414 Mon-Thu 6:30-7 Fri 7-6 Sat 7-4 aeastwood@scottclarknissan.com parts@scottclarknissan.com

Extensive Inventory with Daily Deliveries autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 31

Southeast_Issue_0920.indd 31

8/17/2020 6:34:05 PM


surface of the aluminum fender. Besides the iron particle beginning to rust, galvanic corrosion started under the rust particles. What would happen if I primed the fender? A big comeback.

not stick to it, and that is why it is necessary to remove before welding, painting and adhesive application.

Fig. 21, Sand with 180 grit DA Fig. 23

Fig. 22, Clean with a good wax and grease cleaner. Note the aluminum (black soot) on the towel

The next set of pictures show how to perform a recommended cleaning process in a clean environment. As I stated earlier, I was sanding the body of a vehicle that I took down to bare metal. I used the same DA and the sandpaper from the steel body to sand away the paint and primer on the aluminum fender. When I was finished with the fender, I put it outside, and look what happened after one week. (See Fig. 24). Metal particles were transferred from the dirty DA sandpaper to the

Fig. 24, Clean with a good wax and grease cleaner. Note the aluminum (black soot) on the towel

At https://scrs.com/wp-content/ uploads/2018/01/2016-scrs-guideto-complete-repair-planning-revised-11-16.pdf , you will find a complete list of non-included items needed for repairing aluminum. Check out I-CAR and its offerings on corrosion protection classes. Kent Automotive, 3M, Fusor and SEM have online classes on their products, and Kent has in-house training as well.

NICB: Thousands Left to Rebuild After Isaias As Hurricane Isaias leaves a path of destruction in its wake, the National Insurance Crime Bureau (NICB) warns everyone as floodwaters recede, many flood-damaged vehicles are left. This provides an opportunity for fraudsters to dupe innocent car buyers. Dishonest dealers can buy flooded vehicles, clean them up and sell them to unsuspecting buyers. Many of these vehicles come on the market after natural disasters. NICB recommends buying from a reputable car dealer; to check the car thoroughly looking for water stains, mildew, sand and silt under the carpets, headliner and behind the dashboard; and to look under the hood for signs of oxidation. Pull back the rubber “boots” around electrical and mechanical connections for these indicators. Ferrous (containing iron) materials will show signs of rust; copper will show a green patina; aluminum and alloys will have a white powder and pitting. Source: NICB

ventory Largest In Lincoln of Ford • Parts • Mercury

County e d a D im ia In M

1200 W. 49 Street, Hialeah, FL 33012 DIRECT: 305-822-8338 FAX: 305-825-3018 AVALLE@GUSMACHADOFORD.COM

• OE COLLISION PARTS, MECHANICAL REPAIRS AND HEAVY REPAIRS PARTS • SPECIAL PRICING FOR COMPETITIVE COLLISION AND MOTORCRAFT PARTS • EXPERT COUNTER LOOK-UP WITH MASTER CERTIFIED COUNTERMAN

HOURS: Monday - Friday 8 am - 7 pm Saturday 7 am - 4 pm

32 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 32

8/17/2020 6:34:07 PM

Contin

Lif

it’s velo thro of e won said esta woo ing t but thing nice ploy cian or s prod ploy erati the g whe emp and


y

Continued from Page 27

Lifelong Learners it’s critical to look at workforce development and technician training through the lens of a student. “If we forget that, whatever kind of education or training we provide won’t resonate with the student,” he said. The Matrix Trade Institute was established two years ago in Beachwood, OH, and is currently expanding to Detroit. “We’re the new kid on the block but fortunately, we have done more things right than wrong and built some nice momentum,” he said. Peugeot said that too often, employers find that entry-level technicians don’t have the proper training or skills needed to be effective and productive on the shop floor. As a result, Matrix assists employers retain and grow the next generation of technicians. Peugeot said the goal is to create an environment where shops ultimately hire fewer employees, by boosting productivity and creating a cohesive culture.

“We believe the best recruiting model is a great retention model,” said Peugeot. Their focus is to “revitalize, retain and recruit.” “We all fight that battle of trying to get the best and brightest to feel good about entering the trades,” said Peugeot. “We have to put forth the effort to make that as appealing as possible, not only for trainees, but also for the people in their lives who

a reason to leave the business, because they are being provided with all of the skills required to do their jobs effectively. The next step is revitalizing employees by investing in their skills and growth, offering specific skills training and increasing production. Ultimately, Peugeot said this allows shops to recruit differently and find employees to focus on specific functions that work well in the busi-

“We’re the new kid on the block but fortunately, we have done more things right than wrong and built some nice momentum,” — Dustin Peugeot need to support and be proud of their decision.” He stressed the importance of investing time and energy into the development of current employees. The first step is talking to employers about the various ways they can encourage their teams to become more involved in their own development and plot a career path, based on training, education and growth. By taking this approach, Peugeot said employees will never have

ness and increase throughput. For shop owners looking to find the next generation of the workforce, Peugeot encourages them to set up their businesses in such a way that they are considered the best landing spot for a recruit, regardless of their education. “We have to look within before we can start complaining about Millennials or work ethic or people wanting to get into the trade,” he said. Currently, Matrix offers 20-week

programs in collision repair and refinish, automotive maintenance and service advisor training, all of which focus on a hands-on efficiency-based curriculum. Students typically intern after the first two or three weeks. Peugeot said students are seen as productive members of the business the first day of an internship. Similar to the program at Ranken College, participants receive a tool set and are shown how to organize it. Rather than relying on outdated textbooks, the programs focus on modern technology, such as interactive, game-style learning simulation. They have found this enables individuals to perform, feel valued and grow within their internships. The majority of the time, Peugeot said the internships turn into full-time employment. Peugeot said it’s critical to help the industry become a better place to onboard employees and develop employees who work hard, show up on time and want to work. “We can’t blame the students of this generation,” he said. “We have to look within and find out how we can become better employers, recruiters and growers of talent.”

d Nee em u ia Yo d Th K s t r e d Pa Ne nts ate ists u The n You c i o c e l ed ry Wh Dis f D ecia nto

ry se e e o e p a v v v i i S t l e m In ti r tisfy e c D e n Tea Parts ompe v ily ,I nsi • Sa a e e C t D d x m e E • Ti s an ers Fre • e • av ofit tom

S

Pr

s

Cu

Parts Dept.

888-837-3085 Fax 919-466-6354

Mon-Fri 7-6 // Sat 7-5 90 MacKenan Drive Cary, NC 27511

www.hendrickkia.com

Parts Dept.

877-686-9320 Fax 704-566-2140

Mon-Sat 7-7 7550 Hendrick Auto Plaza NW Concord, NC 28027

www.hendrickkiaofconcord.com autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 33

Southeast_Issue_0920.indd 33

8/17/2020 6:34:08 PM


with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

More Best Practices to Make the Most of the ‘Parts’ Portion of Your Business In a previous column https://www. autobodynews.com/index.php/ from-the-desk-of-mike-anderson/ item/20425-from-the-desk-of-mikeanderson-making-the-most-of-theparts-portion-of-your-business.html I shared some best practices shops can use to improve their parts-related processes and profits. Here a few more. Best Practice: Check the OEM information. You might presume that checking OEM collision repair information for each repair is something related to just procedures. But it also plays a role in streamlining your parts processes as well. One way in particular: Identifying any non-reusable or one-time-use parts that need to be on your estimate and parts order. We’re not just talking about clips and fasteners. On some vehicles, there are interior or exterior trim pieces that are one-time-use, as well as some suspension or supplemental restraint system parts. It’s important to know that while the estimating systems are doing a better job of identifying all one-timeuse parts, those systems—nor even the OEM electronic parts catalogs— identify all of them. The only way to make sure you are aware of all of them is to read the OEM repair information. Not all of the automakers identify one-time-use parts in the same way. Toyota/Lexus, for example, uses a black dot to indicate something is a non-reusable part. Nissan/Infiniti uses a black dot with a white X; sometimes these parts are color-coded in the automaker’s documentation. Mazda uses a white “R,” Subaru uses a star and Ford uses a symbol of a trash can to signal something is a one-time-use part. There are other automakers, such as BMW, General Motors and Porsche, that currently don’t have a symbol, but instead use wording within the procedures to identify one-timeuse parts. It might say, “Remove and replace,” for example, or “Remove and discard,” or “This is a non-reus-

able part.” So you can’t just glance at the OEM repair procedures. Take the time to read them thoroughly. And when you list one-time-use parts on your estimate, include a line note indicating that the OEM has designated it as such. The OEM repair procedures can also alert you about which parts can be repaired and which cannot. Many automakers, for example, say that components of certain strengths of steel should not be repaired, only replaced. The procedures also can designate “if this, then that” statements related to parts. One example might be “If an airbag deploys,” then certain other parts on the vehicle must be replaced, even if they don’t appear damaged. The time to have all this information is up front, so you don’t get into a job and only then discover you didn’t order all the parts the OEM procedures require. Best Practice: Improve the parts information in the estimating systems—for yourself and the rest of the industry. If you determine a part needed as part of a repair wasn’t shown in the estimating system, or if you find some other information gap, like a one-time-use part not being identified in the estimating system, don’t just order the part and move on. Contribute to the solution! It’s easy: Visit the Database Enhancement Gateway (www.DEGweb. org) and submit an inquiry. It’s a quick process, particularly after you’ve done it a few times. The DEG will reach out to the estimating system provider, which in turn will research whether information was indeed missing or inaccurate, and if so, correct it. That may well help you in the future, as well as help all the other shops working on that make and model of vehicle. If we all work together on this, we can help make the estimating databases more complete. Some may argue you shouldn’t have to do that,

given what shops spend on the estimating system. But at the end of the day, complaining does not solve the problem. By taking the time to submit inquires to the DEG, you help control your own destiny. As Mike Jones of Discover Leadership says, “You can be the wind or the flag. The wind dictates which way the flag blows. The flag is subject to the wind. Always be the wind.” Best Practice: Maximize efficiency through better parts receiving. Receiving parts might seem the most passive process in your shop: The delivery driver brings in the parts and drops them off. But the best-run shops use some very specific steps related to parts receiving. They are mirror-matching all parts, for example. Take the new part out of the box or packaging, and compare it to the old one to make sure at

that point in the process the parts for the job are accurate. Given the average body technician generates $100 in gross profit per hour, you don’t want that technician stopping work and spending time to come find you to tell you a part is incorrect or missing. In my previous column, I talked about the value in using an electronic parts ordering system. Some of those systems can help with parts receiving processes as well. Some allow the parts vendor, when fulfilling the order, to electronically push the parts invoice back to your management system to automatically post the invoice for you. We did a survey of more than 400 body shop parts managers, and they said they spend at least 40% or 50% of their time just manually rekeying parts invoices. So if your electronic parts system can streamSee More Best Practices, Page 46

We’ve Got the Genuine Chevrolet rolett Pa Parts artts You u Ne Need!

919-557-9103

Parts Hours: Mon - Fri: 7:30 - 6:00 Sat: 8:00 - 5:00

John Hiester Chevrolet

www.hiesterautomotive.com

3100 N. Main Street Fuquay-Varina, NC 27526

34 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 34

8/17/2020 6:34:12 PM


PANEL PAINTING JUST KEEPS GETTING EASIER! Innovative UltraRack > Holds hoods, tailgates, doors, lift gates, deck lids, cargo doors and fenders > Efficient single-hand operation, uninterrupted spraying > Complete paint coverage inside and out > Seven locking positions mimic the part’s position on the vehicle for a seamless match > Complete system – no accessories needed to buy > 4 industrial-grade Total-Lock caster wheels for stable mobility; zero movement when locked

> INNOVATIVE ULTRARACK PART # URPS

Innovative Door-Fender Single

> INNOVATIVE DOOR-FENDER SINGLE PART # I-DFS

> Securely holds a fender or door > Complete paint coverage inside and out > Easily adjusts to perfect working height > Eliminates missed edges > Mount parts in the same positions as on the vehicle for best color and texture match > Wide stance adds uncompromised stability > Protective rubber boots keep critical areas free of overspray > 4 industrial-grade Total-Lock caster wheels for stable mobility; zero movement when locked > Durable powder-coat finish > Three-year warranty > 32″W x 22″D x 40″H > Weight rating: 50 lbs.

VISIT INNOVATIVETOOLS.COM TO VIEW VIDEO DEMONSTRATIONS AND TO FIND A DISTRIBUTOR NEAR YOU autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 35

Southeast_Issue_0920.indd 35

8/17/2020 6:34:17 PM


National News with Ed Attanasio

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

CCC Photo Estimates and AI-Supported Claims Spike in Response to COVID-19 more than doubled from January to April, as carriers are accelerating use and adoption of digital tools in response to COVID-19. Sisk“Industry use of photos for method of inspection has been growing and insurers are seeing benefit to both cycle time and customer satisfaction,” said Susanna Gotsch, director, industry analyst for CCC. “The recent spike is likely indicative of a with Chasidy Rae new Sisknormal as we’re seeing greater use of digital by carriers that have been in market and new insurers coming online with digital solutions.” CCC also reports a similar trend in estimates written using CCC® Smart Estimate, the world’s first AIguided estimating solution. Smart claims have expanded at a record Estimate applies AI and estimating with Victoria Antonelli pace exceeding double-digit growth logic to photos captured with Quick through May of this year. Estimate. Many shops that used to think of CCC’s Senior Vice President of photo estimates as an option are now Product Management Jason Verlen making them the norm for a wide has extensive experience in the softrange of reasons. ware industry, with specific experti CCC’s statistics show the rapid se in product management, big data adoption of digital technology is in and analytics. Before joining CCC with Gary Ledoux direct response to social distancing in May 2015, Verlen spent five years and work-from-home protocols initi- at IBM, where he was VP of big data ated to combat COVID-19. The com- analytics. “The use of AI-supported claims has accelerated from steady adoption by industry leaders to a massive increase in use and adoption by the with Gary Ledouxindustry at large,” Verlen said. “Our data, and the conversations we are having with customers, strongly suggests that this point in time will mark a digital revolution in claims.” “We’re seeing every industry embracing new technologies, rethinCCC’s Senior Vice President of Product Manageking how they work, and focusing ment Jason Verlen reported the usage of CCC® with Stacey Quick Estimate, the company’s mobile photoPhillips on personalizing experiences for estimating solution, has more than doubled their customers. The insurance infrom January to April of this year in response dustry is no different.” to COVID-19 By creating an easy-to-use syspany’s industry data indicates the in- tem for customers, insurance adsurance industry recently surpassed 3 justers and shops alike, Verlen has million estimates initiated leveraging seen all three parties using more and photo technology, sinceEd tracking be- more photo estimates than before. with Attanasio gan in 2018. “The adoption rate was already The company also reports the going up, but then the pandemic turpercentage of claims processed ned it into a complete transformation,” through CCC® Quick Estimate, its he said. “Shops are more concerned mobile photo estimating solution, now about safety for its customers At any point, a piece of technology can go from being discretionary to essential, and in many cases, this is what’s happening now with photo with Chasidy Rae estimating within the collision repair industry. Recently, CCC Information Services, Inc. (CCC) reported photo estimates and AI-supported insurance

National Events

National News

Techs of Tomorrow

and employees for obvious reasons. More and more insurers are asking for our mobile photo estimating solution and shops realize that they’re

“It’s providing a vastly better and safer consumer experience and we’re getting more and more users every month,” he said. “We know from history that people will use technology to adapt for whatever reason, and then don’t change back. The pandemic has made photo estimating systems more relevant than ever before and shops that were reluctant to use them are now embracing this technology.” Another reason CCC’s photo estimating is quickly CCC’s statistics show the rapid adoption of digital technology gaining in popularity is the is in direct response to social distancing and work-fromfact the technology is better home protocols initiated to combat COVID-19 and the public is more comgoing to get more work by making it fortable using it on a daily basis. part of their processes.” “There was a little friction two to Those who are adopting the sys- three years ago because the first getem now will likely use it for the long neration of any technology is always term. Verlen said. going to be inferior to the technology

In Reverse

OE Shop Certification

OE Shop Certification

Shop Management

Competitive Pricing Free and Fast Delivery Knowledgeable Wholesale Parts Staff Hendrick Honda Pompano Beach 5381 N. Federal Hwy. Pompano Beach, FL 33064 PH

954.425.8244

Start something special. Mon-Fri 7:00am-6:00pm Sat 7:00am-5:00pm

Auto Body Attorney

36 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

with Bruce Roistacher Southeast_Issue_0920.indd 36

8/17/2020 6:34:19 PM


AUTOMOTIVE GROUP

www.genuinegmparts.com

TM

GM’s Conquest Parts Program

Bump The Competition “Bump” keeps growing and now includes over 7,000 part numbers “Bump” includes many popular parts categories: Bars, Absorbers Mirrors Moldings Doors Panels Fascias Radiators, Condensers Fenders Rods, Struts, Fans, Hubs, Belts Frames Supports, Brackets, Braces Grilles Wheels Hoods Windows, Windshields Lighting

Over $11 Million Dollars of Inventory

PH 800.446.8148 6252 E. Virginia Beach Blvd. • Norfolk, VA 23502

It’s easy to get Genuine GM Parts at aftermarket competitive prices. 1. Send a complete insurance repair estimate to your GM dealer. 2. Your GM dealer will review and notify you about Genuine GM Parts that are eligible for “Bump The Competition” discounts. 3. Place your order and take advantage of the savings!

M-F 7-5:30 • Sat 8-5

PH 888.837.3087 100 Auto Mall Drive • Cary, NC 27511

M-W 8-8 • TH-F 7-6 • Sat 8-5

Or even easier... 1. Use CollisionLink. 2. “Bump” eligible parts are marked and discounts automatically applied to your order.

VIRGINIA

Norfolk

NO. CAROLINA

Cary Charlotte

CHA RLOT TE

PH 800.763.2489

5101 East Independence Blvd. • Charlotte, NC 28212

M-F 8-6 • Sat 8-5

SO. CAROLINA

Hoover ALABAMA

PH 877.339.7278

Atlanta GEORGIA

3277 Satellite Blvd. • Duluth, GA 30096 At Gwinnett Place M-F 7-7 • Sat 7-5

FLORIDA

PH 800.239.5100 1620 Montgomery Hwy. • Hoover, AL 35216

M-F 7:30-6 • Sat 8-12

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 37

Southeast_Issue_0920.indd 37

8/17/2020 6:34:22 PM


it replaces,” Verlen said. “One of the main issues back then was the quality of digital cameras in cellphones, but you look at them now and they are amazing. The enhanced camera capabilities lead to greater clarity, and we’ve applied technology to guide users in taking the right pictures, so picture accuracy has improved, adding a whole new level of credibility, which is so important, especially for shops that are using it for the first time.” CCC offers the industry’s only end-to-end digital auto insurance experience, from telematics data used by insurers for policy quotes and premium discounts, to incident management, where telematics can be used to alert an insurance carrier after a crash event, to photo- and AI-powered applications for repair, total loss and casualty claims management. Using mobile, AI and IoT together with its industry platform, CCC connects the broader auto insurance ecosystem supporting more than $100 billion in transactions each year. In June, CCC announced the availability of CCC® Quick View, a photo-guided vehicle inspection so-

lution. Quick View enables auto underwriters to efficiently and affordably complete vehicle inspections virtually by offering policyholders a mobile app to easily capture vehicle photos.

When CCC’s patented Damage Detection Heatmaps® are applied, shops and insurer can easily assess a vehicle’s condition, including pre-existing damage

Once photos are received, CCC’s proven AI-enabled photo analytics and Damage Detection Heatmaps® are applied, allowing insurers to assess vehicle condition, including the identification of pre-existing damage. Quick View also makes it easy for insurers to assess the presence of custom equipment. Policyholders can capture and share photos at their con-

You’re Going To

venience typically in five minutes. Early use of Quick View by a large, national insurer shows marked improvements in cost, speed and the identification of pre-existing damage. Specifically, Quick View reduced costs by 75% over manual inspections, led to 60% of inspections being completed in less than 24 hours and identified pre-existing damage on more than 15% of assessed vehicles. “Insurers are looking to balance the need to understand risk with the ability to efficiently and consistently conduct vehicle inspections,” said Naved Siddique, CCC’s group vice president, insurance services group. “Quick View offers policyholders a guided experience to make photo capture easy, while AI and heatmaps help insurers with their virtual vehicle assessments. “Quick View has additional inherent value as vehicle photos can be integrated with CCC’s claims solutions, making them readily available for review by insurers should a physical damage claim arise in the future,” Siddique said. “We’re excited to apply our mobile, AI and

heatmap capabilities to the inspection process, supporting the broader needs of our insurance customers.” CCC Quick View empowers drivers to carry out photo collection digitally and at their convenience. Insurance carriers can use digital photos to be more productive and effective in determining the condition of a new policyholder’s vehicle. CCC Quick View offers features such as guided photo capture, which enables consumers to receive a Quick View invite, prompting and guiding them through photo collection and submission and geo-coding that verifies where photos were taken, helping identify garage location. It also enables users to take photos that can be integrated with CCC’s claims solutions, making them easily available for comparison if a physical damage claim is initiated under the applicable policy in the future, allowing carriers to potentially mitigate prior damage claims.

AUTOBODY www.autobodynews.com

Love

The Way You’re Treated! Local

(205) 443-7651

Toll Free

(800) 467-0699

Fax

(205) 823-4697

• Delivery to 100 Mile Radius of Naples PARTS HOURS: M-F Sat

David Bonnett (205) 443-7655

dbonnett@tameron.com

Mike McKoewn (205) 443-7654

mmckoewn@tameron.com

Frank Jackson (205) 443-7651 fjackson@tameron.com

7am to 6pm 8am to 5pm

PARTS DIRECT LINE:

Ca C Call a l Us Us!! U

239-734-3215 2 39 39 734 734 3215 21 Fax: 239-591-3051

5665 N. Airport Pulling Rd. / Naples, FL 34109

At Rick Hendrick Chevrolet Naples,

we’ we ee’re ’re re re yyou yoour oneee-stop -sto stop op ssho hop for for

Parts

Outside Sales

Dale Nall (205) 443-7653 dnall@tameron.com

David Cartee (205) 443-7651 dcartee@tameron.com

1595 Montgomery Hwy. / Hoover, AL 35216 38 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 38

8/17/2020 6:34:34 PM


pecader s.” drin dinsuotos ctive new

ures hich uick ding and verhel-

phoCC’s asily sical the allgate

with Victoria Antonelli

In Reverse with Gary Ledoux

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

The Advent of the Computer Age In January 1980, BYTE Magazine computers. If you’ve never taken a announced in an editorial “the era of look at these at these smart machines, off-the-shelf personal computers has you’re in for a pleasant surprise.” The arrived.” article went on to explain the differwith Gary Ledouxence between hardware and the new and Apple Tandy (RadioShack) had already been selling computers emerging world of software. for more than a year and the soon- Another trade magazine artito-be ubiquitous IBM PC, which cle looked at three different computwould set the standard for some time er systems designed specifically for to come, would be introduced in Au- body shops. One was called Auto Regust 1981. Individuals’ lives and the pair Management Systems. One was business world at large would soon made by Kennedy Communications be changed forever. and sold for $29,900; that’s $79,600 in with Stacey Phillips Beginning around 1982, a lot 2019 dollars. And one was produced of ink was spent within the collision by Triad Systems of Sunnyvale, CA. industry trade magazines addressing The magazine devoted an entire computerization and how and why article to the ADP/Audatex estimatthe industry should embrace this new ing system and how easy and effimedium. cient it was. Another article asked “Is One collision industry maga- Your Shop Ready For A Computer with Attanasio zine noted, “As we moveEd through the System” and provided a 15-question ‘80s, shop owners around the coun- check list to help the reader decide. try are discovering a new tool for get- But the latest in technology came ting and keeping a competitive edge: from a company called Mitchelmatix.

OE Shop Certification

OE Shop Certification

Shop Management

AutoGenuine Body Attorney Think with Bruce Roistacher Subaru Parts. Truck Topics with Gary Ledoux

A trade magazine article noted shop estimators loved their estimating manual but now Mitchellmatix was going to make them easier to use by inserting a bar code into the book. The bar code was then read when a computerized wand was passed over the strip by the estimator. The mini-computer was then hooked up to a telephone line, a call made to one of 19 IBM computers spread around the country. Two and a half minutes later, the estimate printed out on a dedicated printer at the body shop. The cost of doing all that was about $10 per estimate plus the cost of the call—if it had to be long distance. Most calls were said to be local. ADP also entered the field in mid-1984 with the introduction of “Tele-Estimating,” a computerized estimating system handled over the

NO. CAROLINA

Stivers Decatur Subaru

Parkway Subaru

Decatur (800) 833-0454

Troncalli Subaru

Cumming (770) 889-8951 Direct (678) 341-4220 Fax (678) 341-4221 www.troncallisubaru.com

Flow Subaru

with Stacey Phillips

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

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

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

See Computer Age, Page 44

GEORGIA

NO. CAROLINA

National Associations

phone allowing a shop to use computerized estimating without having to buy the computer. “Simply call a special toll-free number and read off the damage codes from a completed AUDATEX worksheet, and within minutes your estimate is processed, printed and distributed.” A spot survey conducted by a trade magazine and published in December 1982 indicated that of 600 body shops surveyed across the country, 101—17%—had a computer system. Of those that did not have one, 20% said they were considering buying one, while 80% said they would not consider buying one. Then as now, change comes hard to the collision repair industry. One respondent noted that he had purchased a computer system to help run his shop but the monthly cost of

Jim Armstrong Subaru Hickory (888) 905-6135

Wilmington (800) 424-9434 (910) 793-8710 Fax Mon.-Fri. 7-6; Sat. 8-2

Subaru Concord Concord (888) 387-1377

SO. CAROLINA

Peacock Subaru Hilton Head Hardeeville (866) 539-6293 TENNESSEE

Kelly Subaru

Chattanooga (423) 490-0181 (423) 385-7269 Fax Mon.-Fri. 7:30-5:30; Sat. 8-2 parts@kellycars.com www.kellycars.com

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 39

Southeast_Issue_0920.indd 39

8/17/2020 6:34:36 PM


National Associations

Stacey Phillips is an award-winning freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

with Stacey Phillips

SCRS Open Board Meeting Highlights Include Presentations About Pressing Industry Topics The collision repair industry recent- GM’s ADAS document, information ly had the opportunity to attend the about data privacy and the SCRS Society of Collision Repair Special- award-winning Blueprint Optimizaists (SCRS) open board meeting, held tion Tool (BOT). virtually in July. At the start of the meeting, “The open meeting was for Schulenburg announced SCRS would anyone wishing to learn more about be holding a live electronic vote of the current state of the association’s board members for the first time. activities and pressing industry top- Following the meeting, the winners ics,” said Aaron Schulenburg, ex- were announced. They included the ecutive director. incumbent, Amber Alley of Barsotti’s Open to association members Body and Fender; Tony Adams of and non-members, the meeting in- Weaver’s Auto Center; and John Moscluded updates and presentations ley of Clinton Body Shop. All three will from SCRS staff and comsit on SCRS’s board of direcmittees outlining current tors for the next three years. initiatives. The agenda also “We had five outstanding featured guest presentations candidates,” said Brett Baiand comments from indusley, SCRS chairman of the try colleagues. board. “The wealth of knowl The following is a sumedge that each of them has is John Eck, GM mary of some of the highoff the charts. Whoever wins collision manager lights from the meeting, the election in those three which included a presentation about spots will do a great job.”

Since the start of the pandemic, and industries to help drive the indusSchulenburg said the situation has try forward. These include notable impacted every one of its member groups such as the American Society businesses. As a result, the organiza- of Association Executives, the U.S. tion has strived to offer guidance and Chamber of Commerce and the Naassistance to members. tional Federation of Independent Busi “It certainly has been ness, as well as newly-formed something that has taken a coalitions like the America’s significant amount of focus,” Recovery Fund Coalition. he said. “We all feel fortu“We are working to idennate that SCRS has a role of tify ways to help the small support for its members and businesses we represent and we have taken a lot of great the information we could Brett Bailey, SCRS bring to the marketplace,” pride in doing that.” chairman During his executive he said. director’s report, Schulenburg shared During the open board meeting, some of the COVID-19 resources the John Eck, collision manager at GM, organization provides on the SCRS and Chris Blackmore, GM program website (https://scrs.com/covid19-re- manager, shared information about sources), which includes information GM’s Advanced Driver Assistance about workplace preparation and Systems (ADAS) support document and post-collision inspection. health, and financial aid and relief. The four-part ADAS document He also mentioned the organization’s involvement with other entities outlines the answers to questions that

The RIGHT

COLLISION PARTS FOR YOUR COLLISION JOB. Visit these Genuine Hyundai Parts Dealers

Florida

KEY HYUNDAI

Jacksonville 4660-100 Southside Blvd.

866-973-6996 904-565-2281 904-565-2210 Fax

M-F 7:30am - 5:30pm Sat 8am - 4pm manderson@lynchauto.com

Tennessee

DOWNTOWN NASHVILLE HYUNDAI Nashville 1512 Broadway

888-707-0658 615-341-3176 Fax

M-F 7:30am - 5:30pm partsmanager@downtownnashvillemotors.com

www.downtownhyundainashville.com

North Carolina HUNTER HYUNDAI Hendersonville 2520 Asheville Hwy.

828-698-5343 828-214-5581 Fax M-Sat 7am - 6pm

TRUST FORD PARTS

CERTIFIED PARTS WHOLESALING DEALERS

FLORIDA

GEORGIA

Brandon Ford

AutoNation Ford

888.271.2038 813-621-7759 Parts Direct 813-466-7396 24 Hr Fax

866-520-7893 770-964-8604 770-306-6715 Fax

TAMPA

Hours: M-F 7-9; Sat 8-4 wholesale@brandonford.com

UNION CITY

Hours: M-F 7-5; Sat 7-5

Grieco Ford of Fort Lauderdale FORT LAUDERDALE

954-390-6400 954-390-6449 Fax

Hours: M-F 7-6; Sat 7-2:30 bcofer@griecocars.com

40 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 40

8/18/2020 6:13:41 PM

aros at th in F syste catio calib pres ADA viat loca calib men avai mati docu www tech tems colli men sion vehi been cess er O GM


arose as a result of GM’s attendance He outlined GM’s draft concept customers. Next, he said companies at the VeriFacts Automotive summit in regard to post-collision inspection, should evaluate their solution partin February. The sections include which includes the steps for visual ners. This includes asking where the system description, component lo- inspections and affirming diagnos- data is stored, who has access to it cation, calibration and slow tics. If approved, a final doc- and how it is transferred. calibration. ument will be available to Lauer recommended leveraging “Several in the industry the industry with details and data storage providers for multiple pressed us to help identify photos. solutions and carefully reviewing all ADAS terminology, abbreSchulenburg said SCRS agreements that require data sharing. viations and component fields numerous concerns “You want to make sure that locations as well as how to from members in regard to the right security wording and legal Chris Blackmore, GM calibrate,” said Eck. data privacy. documentation is in place in all those program manager This technical docu“Data protection is a very agreements to not only protect your ment, Document ID #5577683, is important issue right now,” he said. collision center, but all the vendors you available with GM Service Infor- “We believe that electronic commerce work with, the customer and the data mation (SI) and also as a free PDF needs to take place, but we provider,” he said. document on GM’s website: https:// should be able to count on the He advised shops to look www.genuine gmparts.com/pdf/ companies that we are workat what he referred to as setechinfo/gm-driver -assistance-sys- ing with that it takes place curity detection and response tems-aid.pdf. responsibly.” capabilities. Blackmore then talked about GM’s He then introduced “You want to work with collision inspection process. Brandon Lauer, vice president partners who are proactively “We recognized that the require- of business development and Brandon Lauer, vice looking to ensure that there ments process we laid out for a colli- client experience at Claim- president of business is nothing egregious taking development and sion are extremely labor-intensive and sCorp., who talked about the place, data is always being client experience for vehicle invasive,” he said. “We’ve proactive steps businesses can protected, and providers ClaimsCorp. been working on reviewing that pro- take in regard to data privacy. have a security officer in cess and document since January.” Lauer offered tips on how shops place or are audited by a third-party This involves talking to oth- can protect their businesses. First, he organization to make sure data secuer OEMs and working closely with stressed the importance of always ask- rity is the No. 1 priority,” he said. GM’s internal engineering team. ing for consent and authorization from He then offered recommendations

on what to look for in a security partner: ▪ Third-party certification ▪ Annual investment in enhanced security ▪ Storage solutions that abide by GDP laws ▪ Team members dedicated to security ▪ Full transparency of data usage ▪ Deletion practices ▪ Auto Claims Economy industry knowledge ▪ Strong data transfer and protection processes ▪ Data usage agreements At the close of the meeting, Schulenburg shared information about the award-winning SCRS Blueprint Optimization Tool (BOT), powered by NuGen IT, an OEC company. “We worked with NuGen IT due to their tremendous development resources and shared vision in what we could accomplish with the BOT,” said Schulenburg. The BOT was the recipient of a 2020 SEMA New Product award and See Meeting Highlights, Page 45

Order Audi Genuine Parts from these select dealers.

Audi Part Professionals are experts on collision parts, replacement components and mechanical items.

ALABAMA

Audi West Palm Beach

Irondale

866.441.3309 561.615.4175 561.615.4179 Fax M-F 7:30am-6pm parts@audiwpb.com

Audi Birmingham 205.986.7410 205.986.7438 Fax M-F 7am-6pm; Sat 8am-4pm daniel.williford@audiofbirmingham.com

West Palm Beach

www.audiofbirmingham.com

GEORGIA

FLORIDA

Audi Jacksonville Jacksonville

866.413.8557 904.565.2216 Fax M-F 7am-7pm; Sat 8am-5pm cdrake@audijax.com www.audijax.com

Audi North Miami

North Miami Beach

305.952.5952 305.944.4009 Fax M-F 8am-6pm; Sat 8am-5pm amartinez@audinorthmiami.com www.audinorthmiami.com

Audi Gwinnett Duluth

678.258.2536 770.476.9311 Fax M-F 7:30am-6pm parts@audigwinnett.com

VIRGINIA Flow Audi

Charlottesville

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

Audi dealers strive to make you an Audi Genuine Parts fan. autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 41

Southeast_Issue_0920.indd 41

8/17/2020 6:34:41 PM


Fiat Chrysler Blasts GM’s Attempt to Revive Racketeering Lawsuit, Calls It ‘Despicable’ by Eric D. Lawrence, Detroit Free Press

Fiat Chrysler Automobiles pushed back Aug. 10 against General Motors’ attempt to revive its racketeering lawsuit, two days after FCA’s former lead labor negotiator, convicted in the UAW corruption scandal, compared GM’s tactics to those of disgraced Sen. Joe McCarthy’s anti-communist witch hunts. The legal drama pitting the two automakers against one another is now in its ninth month despite U.S. District Court Judge Paul Borman’s dismissal of the case in July. Perhaps instructive was a new order Aug. 10 from Borman noting that he is not seeking another reply from GM. GM had ratcheted up the allegations last week, saying it had found new evidence of offshore accounts in the Cayman Islands, Switzerland, Luxembourg and other countries designed to fuel a bribery scheme to harm GM and claiming that ex-GM board member Joe Ashton, who is awaiting sentencing in the federal probe, was actually a paid mole. GM’s original lawsuit, filed in November, claimed FCA corrupted the bargaining process, costing GM billions of dollars, in an effort to hurt GM and force a merger, which never happened, of the two companies. Alphons Iacobelli, the former labor negotiator who later went to work for GM and made the McCarthy comparison, and other FCA officials caught up in the corruption probe are defendants, too, but GM also referenced others, including Ashton, who was a former UAW vice president, and two ex-UAW presidents. FCA, not surprisingly, said essentially that GM should not get another bite at the apple. And in keeping with the intrigue offered in GM’s effort to have its case reinstated, FCA offered its own bit of color and said GM has simply gone too far. “GM’s proposed amended complaint reads like a script from a third-rate spy movie, full of preposterous allegations that FCA paid not one, but two, ‘mole(s)’ to infiltrate GM’ and ‘funnel inside information to (FCA)’ using money ‘stashed’ in a ‘broad network’ of ‘secret overseas (bank) accounts.’ ... None of that is

true. That GM has extended its attacks to individual FCA officers and employees, making wild allegations against them without a shred of factual support, is despicable,” FCA said in its response Aug. 10.

The company followed up with a statement that “GM’s proposed amended complaint is the latest example of the lengths it is prepared to go to, attacking a competitor that is winning in the marketplace with yet more baseless accusations. As we have said from the date this lawsuit was filed, it is meritless and we will continue to vigorously defend ourselves.” FCA also highlighted the stakes for both companies at a time when the automotive industry is under tremendous strain and FCA is working toward a merger that would make it part of an entity larger than GM. “GM’s attempts to tarnish FCA’s reputation and that of individual FCA officers and employees will not distract us from our mission of providing customers with outstanding and exciting cars, trucks and SUVs or from completing our landmark combination with [PSA Group,]” FCA said in a statement provided by FCA spokesman Jeff Bennett. GM said it stands behind its pleading. “FCA’s corruption of the collective bargaining process remains undeniable—a federal investigation is ongoing and there have already been multiple guilty pleas. New facts uncovered through GM’s investigation which FCA tries to discount—including offshore accounts in multiple countries—implicate numerous individuals and make GM’s RICO case even stronger,” according to a GM statement provided by spokesman David Caldwell. “GM seeks to uncover in court

the full extent of harm the FCA bribery scheme caused GM. Nothing in the defendants’ replies counters the significance of these allegations and the direct harm the defendants’ corruption caused GM, and the court should amend its prior judgment and reinstate our case.” The UAW, which is not a defendant, not only said it had no knowledge of the offshore accounts, it forwarded an angry letter from Ron Gettelfinger, a former union president, who said GM was forcing him to break his silence. Gettelfinger, who has not been implicated in wrongdoing as part of the wide-ranging federal probe, was nevertheless named once in the recent GM filing, as in “payoffs through these foreign accounts to Ron Gettelfinger.” But Gettelfinger denied GM’s claims, calling them a “malicious and utterly baseless attack.” “I have never had control over any financial account in any foreign country, nor has any member of my family. Further, neither I, nor any member of my family, have ever re-

FLORIDA

ceived one cent from a foreign account like GM claimed,” Gettelfinger said. In addition to Gettelfinger, exUAW President Dennis Williams, who has been implicated as an unnamed union official in court papers but not charged, was referenced by GM. In addition to the fight between the automakers, the case has been noteworthy because of the way Judge Borman had attempted to have it resolved. At one point, he ordered the CEOs of GM and FCA, Mary Barra and Mike Manley, respectively, to meet, but that did not happen. Borman had indicated that the case would be a waste of resources if it were to proceed, and the country, buffeted by the COVID-19 pandemic and the eruptions of anger over systemic racism following the death of George Floyd at the hands of Minneapolis police, needed to heal. We thank the Detroit Free Press for reprint permission.

MISSISSIPPI

Orlando Volkswagen South Orlando

Volkswagen of South Mississippi D’lberville

Fax: 407-581-0671

Fax: 228-354-8184

866-651-8873 407-581-0630

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

228-864-6622

M-F 7:30am-6pm; Sat 8am-3pm robert.myers@raybrandtautogroup.com

Orlando Volkswagen North Orlando

321-214-3169

Fax: 407-644-9408 M-F 7:30am-6pm; Sat 7:30am-5pm spearce@vtaig.com

42 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 42

8/17/2020 6:34:41 PM


Kia.com

Precise fit and finish, easy installation and a limited warranty direct from Kia— all genuine advantages of Genuine Kia Parts. Your local Kia retailer has all the parts you need. From headlights to tail lights, bumpers to fenders and hoods, there is no substitute for genuine. The only way to assure that you are getting Genuine Kia parts, backed by the Kia Warranty, is to order them from your local Authorized Kia Dealer. Contact your local Kia dealer for assistance and delivery of the parts you need. *Genuine Kia replacement parts (except battery) sold by Authorized Kia Dealer under warranty are covered for the greater of (1) the duration of the New Vehicle Limited Warranty or (2) the first 12 months from the date of installation or 12,000 miles, whichever comes first. Labor charges not included when not installed by an Authorized Kia Dealer. Warranty is limited. See Kia’s Replacement Parts and Accessories Limited Warranty for further details.

FLORIDA

Century Kia

Tampa 800-250-8864 (813) 873-8319 Fax FREE Delivery Parts delivered by Autoway

Coral Springs Kia

Coral Springs 954-344-8706 (954) 753-5424 Fax M-Sat 7-7 www.coralspringskia.com

Deland Kia

Deland 386-734-7800 (386) 822-9278 Fax parts@delandkia.net www.delandkia.net FREE Local Delivery

Fuccillo Kia of Cape Coral

Cape Coral 239-829-1956 (239) 242-7002 Fax M-F 8-5:30, Sat 8-3 dgarabedian@fuccillo.com

Miami Lakes Kia

GEORGIA

Southside Kia

McDonough 678-783-2193 (678) 783-2298 Fax M-F 7:30-6; Sat 8-4

Miami Lakes 305-556-2777 M-F 7-7; Sat 8-5

Jacksonville 904-400-6634 (904) 400-6654 Fax M-F 7-7 jneeley@southsidekia.net www.southsidekiajax.com

Sons Kia

SO. CAROLINA Kia of Greenville

Greenville 864-516-2700 (864) 520-8981 Fax aburgos@kiaofgreenville.net

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 43

Southeast_Issue_0920.indd 43

8/17/2020 6:34:43 PM


Continued from Page 39

Computer Age maintaining the system far exceeded its usefulness. In January 1985, a trade magazine ad for Digitree Systems of Boulder, CO, offered a complete body shop management software system including estimates, job costing, repair orders and full accounting with payroll for $1,995. Together with a computer of the purchaser’s choice, a shop could computerize for less than $5,000 ($11,946 in 2019 dollars.) By mid-1986, a trade magazine article noted, “Like it or not, we are now living in the computer age. For many years, computers have been used for various business applications and we find them more and more in each aspect of our daily lives. You probably can’t remember when your monthly department store bill was not prepared by a computer. In fact, if all the computers now in use were suddenly shut down the whole world would be thrown into chaos.” Despite this obvious statement, many shops had still not computerized. The article was followed by an ad for Team Management Network computers featuring a “portable computer,” forerunner to the laptop, which could be brought out to the car to complete an estimate, then reconnected to the main computer system. According to an article published in the fall of 1986, 32% of all body shops would seriously consider installing a computer system within the next year. That means 20,000 shop owners were asking, “What can a computer do for my business?” The article suggests the No. 1 priority for shop owners should be computerized job costing. A January 1987 article about computerized estimating systems noted, “Although the traditional role of computers in business tends to be in bookkeeping and finance, a properly written estimating program can provide the starting point for a whole new level of efficiency and profitability.” A three-page spread in a January 1987 trade magazine offered short descriptions of computerized estimating systems and body shop management computer systems from 16

companies, including S & S Development Systems, Tru-Time Systems, Inc., and Keep It Simple Software and Cad Design Systems. It seemed everyone and their brother was jumping on the computer bandwagon. Many systems were designed to run on an IBM XT or AT computer system or Tandy system. Some did not require the hardware system to have its own hard drive. Making the right choice was very confusing, especially for those people with no background or knowledge of the computer world. And those who did have some knowledge were quick to point out the system purchased today could be obsolete in a year, further scaring shop owners. By January 1988, many shops had accepted the inevitable and computerized their shops, but many were still on the fence. Those that made the leap found, much to their delight, learning the management programs was not that difficult. And once mastered, shops didn’t know how they lived without computerization. Computer systems of the period could have included not only a shop management system but also esti-

mating software. At that time, more than 20 different brands of collision shop-related software were available, including shop management and estimating systems. One computer advocate noted, however, that most shop owners bought a computer for the wrong reason—to write estimates. He noted the real value in a computer was job costing—knowing how much money was made on each individual job. The concept of job costing would take some time to sink in. An early 1988 ad for Digitree computers noted the popular computer was now being shipped with the “Mitchell Connection,” an automatic estimating program containing the entire text of the Mitchell crash estimating guides The ad noted the Digitree program required an IBM or compatible computer with MS DOS 3.1, 640K RAM and a 40MB hard drive, pretty standard stuff for the times. A 40MB hard drive! Imagine! More space than one will ever use! The 40 MB hard drive was obsolete in a fairly short time, causing people to buy compression programs for their software, making the entire

system unstable. Despite the burgeoning computer industry, a trade magazine article in the summer of 1988 discussed various uses for a new tool in the body shop—the fax machine, ideal for, among other things, placing parts orders. The article noted, “The fax machine is here to stay, and most successful collision shops will have fax machines in use in the near future.” The fax concept had been around for years but only commercially acceptable and viable since the early 1980s. By the end of the decade, computers equipped with the proper software could create an estimate, job costing, create work orders, order parts, create estimate supplements, analyze data, log technicians on and off a job, create technician progress reports, maintain parts and materials inventory, create work flow, perform accounting procedures and do word processing. www.autobodynews.com

UPDATED DAILY

Choose Original MINI Parts. North Carolina Hendrick MINI Charlotte 877-317-9568 (704) 566-6571 Fax M-F 7:30-6; Sat 9-5 HendrickMINI.com The Dealers Above Are Original MINI Parts Distributors

©2020 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.

YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. Original BMW Parts & Accessories.

No. Carolina

Hendrick BMW

Charlotte 888-845-4263 704-531-3323 Fax M-F 7:30am-6pm Sat 9am-5pm www.hendrickbmw.com

Hendrick BMW Northlake

Charlotte 844-612-7574 704-379-3101 Fax M-F 7:30am-6pm Sat 9am-5pm www.hendrickbmwnorthlake.com

©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.

44 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 44

8/17/2020 6:34:44 PM


Continued from Page 41

Honda is Asking Office Staff to Work on Assembly Line by Kurt Verlin, The News Wheel

Are you currently waiting on the delivery of a Honda you ordered? When it arrives, it may have been assembled by one of Honda’s accountants. According to a report from local radio station WOSU, white-collar employees at Honda’s plant in Marysville, OH, have been asked to fill in for a rapidly dwindling blue-collar workforce.

Honda is still scrambling to regain normal inventory levels after its factories were shut down between March and May, and it can’t backfill assembly line positions fast enough to recover. “Regardless of whether or not you wanted to, you could be subject to it,” said a Honda employee

who wished to remain anonymous. “They took volunteers first, but my understanding was they didn’t receive many volunteers for this activity, so then they made it mandatory.” WOSU was able to procure an email in which a Marysville general manager outlines why Honda employees working in the research and development, purchasing and accounting departments were requested to work on the factory floor. Chief among the reasons were COVID-19 and the $600 benefit that unemployed workers are receiving until the end of July. Though Honda is taking precautions—daily temperature scans for employees, mandatory masks and the ability to test for COVID-19 on-site—it confirmed it has recently seen an increase in cases across North America. Honda’s anonymous worker believes that whenever an assembly line worker gets sick, they’ve been in contact with 40 other workers. People in the regular assembly line workforce are also absent for other COVID-19-related reasons,

such as finally taking the time to receive elective surgeries they had initially postponed because of the

pandemic, and dealing with the medical, familial and other impacts brought on by the coronavirus. According to Jamie Karl of the Ohio Manufacturers Association, Honda’s Marysville plant already needed workers before the pandemic, which has only made the situation worse. Honda says it is targeting “sometime in August to return to proper staffing levels,” but with the COVID-19 situation only getting worse in the U.S., it is difficult to imagine how the automaker will pull that off. We thank The News Wheel for reprint permission.

Meeting Highlights 2020 SEMA Global Media award. Schulenburg said the windows-based application is an automated version of the Guide to Complete Repair Planning, providing collision repair facilities with an intelligent, easy-to-use estimate analysis tool. “It immediately identifies labor operations, line items and customizable charges that could be overlooked on an estimate,” he explained. “Based on the feedback and insight we’ve received, we’ve identified a very successful utilization of the tool in identifying the opportunities being missed and the financial impact for the end user,” said Pete Tagliapietra, business development leader of NuGen IT. Live demos of the BOT are being held every Wednesday at 2:30 EST. An access code is available on the SCRS website: https://scrs.com/bot/. Visit https://scrs.com/events/ to learn more about the next SCRS open meeting and visit the website for membership information.

INSIST ON GM GENUINE PARTS ONLY ORIGINAL PARTS PROTECT THE VEHICLE’S VALUE. Call Callll Any Ca Any ny of of These Thes Thes Th esse e Wholesale Wh W hol oles esal ale Parts Pa P arrtts Dealers De D ea alle errs Below Belo Be Belo low No. Carolina

John Hiester Chevrolet

Parks Chevrolet

FUQUAY-VARINA

CHARLOTTE

919-557-9103

910-552-6862 Fax

M-F 7:30 am - 6 pm Sat 8 am - 5 pm www.hiesterautomotive.com

800-722-3994

704-598-4020 704-596-9989 Fax

M-F 7:30 am - 6 pm tmorgan@parkschevrolet.com

So. Carolina

Florida

Jim Hudson Buick GMC Cadillac

Dale Earnhardt Jr. Chevrolet

COLUMBIA

888-852-1606

803-695-2485 803-776-1666 Fax

M-F 7:30 am - 6 pm jwash@jimhudson.com

TALLAHASSEE

850-580-7658

850-574-2034 Fax

M-F 7am - 6pm Sat 8am - 4pm

william.finuff@hendrickauto.com

www.DEJChevyParts.com

Rick Hendrick Chevrolet Naples GENUINEGMPARTS.COM

NAPLES

239-734-3215

239-591-3051 Fax M-F 7 am - 6 pm Sat 8 am - 5 pm

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 45

Southeast_Issue_0920.indd 45

8/17/2020 6:34:46 PM


Continued from Page 34

Hurricane Isaias Insured Losses Estimated to Top $4.2B in U.S. and Caribbean by Danielle Ling, PropertyCasualty360

Early insured loss estimates for Hurricane Isaias are in days after the storm rocked the East Coast, knocking out power for millions and creating significant property damage from the Carolinas to New York. Isaias became the second hurricane of the season to make landfall in the U.S., touching down Aug. 3 in Ocean Isle Beach, NC, after hitting the Caribbean. Isais previously made landfall in the Dominican Republic as a tropical storm before hitting the Bahamas as a hurricane. On Aug. 10, Karen Clark & Company (KCC) issued an early insured loss estimate for Hurricane Isaias, evaluating losses in both the U.S. and the Caribbean. Based on its hurricane reference models, KCC estimates the insured loss from Hurricane Isaias will be around $4 billion in the U.S. and $200 million in the Caribbean. This estimate includes the privately insured wind and storm surge damage to residential, com-

mercial and industrial properties and automobiles, KCC says and does not include NFIP losses. Isaias created havoc all along the Atlantic coast last week. Strong winds knocked out power for over 3 million residents, leaving millions in New York and New Jersey in the dark for almost a week.

The Category 1 storm made landfall in North Carolina on Aug. 3 with maximum sustained winds of 85 mph, bringing torrential rains, storm surge, damaging winds and tornadoes. The Mid-Atlantic and Northeast recorded wind gusts of 60 to 70 mph as the core of Isaias passed through the region. Downed trees and pow-

er lines caused structural damage to properties, crushed automobiles and disrupted transportation services throughout the affected area for several days. The Caribbean, Puerto Rico, the Dominican Republic and the Bahamas were subjected to powerful winds from Isaias, tearing down trees and power lines. In Puerto Rico, around 350,000 customers lost power and many communication towers were rendered inoperable. Areas of the Bahamas impacted by Isaias were among the regions devastated by Hurricane Dorian last year. Worsening Isaias’s impact in these areas, not all repairs needed after Dorian had been completed by the start of this hurricane season. In the wake of Isaias, roof damage and structural damage from downed trees were observed in commercial and residential buildings, according to KCC’s loss report. We thank PropertyCasualty360 for reprint permission.

More Best Practices line that, you’ve greatly reduced time spent on a process for which your shop can’t bill. I can’t write about parts without mentioning one of the mistakes I see some dealership management make. At some dealerships, the body shop isn’t given financial credit for parts sales. I think this a bad idea for several reasons. I think it reduces the likelihood that someone within that shop is responsible for following up on parts credits, for example. It also could lead to less than ideal repair-vs.-replace decisions; if those making parts decisions are paid on commission, and the shop gets no credit for a part sale, they may choose to repair a part when replacing would be the better decision for the repair. Do you have questions related to parts? Want more ideas and best practices? Reach out to me, and check out our parts-related videos when you subscribe to our free YouTube channel (https://tinyurl.com/AdviceYouTube).

AUTOBODY MARKETPLACE

The Secrets of America’s Is noblwe for aila Greatest Body Shops avpurchase!

When all you need to do is move a vehicle, use:

by: Dave Luehr and Stacey Phillips

The Book That Will Challenge Everything You Know About the Collision Repair Business.

> EASY TO USE <

SAVES YOU TIME AND MONEY

Order your copy today and join the Body Shop Secrets community!

Go to www.forkliftwrecker.com and watch our video.

www.bodyshopsecrets.com

877.593.6959

Waterborne Wax and Grease Remover SINCE 1985

R CKE

A R C Y L

PO

Available from YOUR local Jobber or CALL: 973.335.2828 FAX: 973.402.7222 polycracker@netscape.com

For more information, contact the authors at info@bodyshopsecrets.com

Looking for Good Collision Personnel? •1,262 Collision Techs resumes online •1,295 Painters resumes online •1,177 Estimators & Mgs resumes online •11,256 Mechanical Tech resumes online

ACTautostaffing.com or 727-733-5600

FREE 4x Monthly E-Newsletter. Subscribe Today! AUTOBODY

www.autobodynews.com

Advertise In Our CLASSIFIED SECTION For $50 Per Column Inch! Place an ad in our

AUTOBODY MARKETPLACE section of Autobody News.

800-699-8251

ltedesco@autobodynews.com

46 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 46

8/17/2020 6:34:49 PM


s

time your

hout I see ake. shop parts sev-

hood s reparts ould .-reking mist for o red be . ated best heck you nnel ube).

Webinar Highlights the Importance of OEM Certification by Emmariah Holcomb, glassBYTEs.com

“You’re making the investment today for the return down the line,” said Connor Smith, CARSTAR original equipment manufacturer (OEM) manager, as he began describing the value in auto glass businesses gaining OEM certifications in an industry webinar. The webinar, The Importance of OEM Certification, was hosted Aug. 11 by the Collision Industry Electronic Commerce Association (CIECA) and took a closer look at the long-term benefits available to the industry. Smith shared his insight on why now is the time for businesses to start looking into becoming OEM certified, which certifications are the most beneficial to shops, what the return on investment (ROI) looks like once gaining certifications and what the future of certifications look like. Automotive technology plays a large role in why Smith thinks “now is the time to look into OEM certifications.” During the webinar, Smith

mentioned some of the related challenges associated with newer-model vehicles. “Everyone knows your standard Corolla is more high tech now than it was 10 years ago,” said Smith. “All of the advancements and safety-marketed features makes repairs more challenging, especially when you factor in the

future. He stressed the importance of always having a good relationship with your local dealers. “The first thing you should do is research various certification requirements and other needs,” said Smith. “Be aware that some certifications will require dealer sponsorships—this is why building a relationship with them is key.”

“There’s one consistent thing, the OEs are here and they aren’t going away,” — Connor Smith training. The best way to get OEM certifications of any type is through training.” When it comes to which certification shop owners should consider, Smith had a simple but direct answer: “Business owners should choose the one that they have the most equipment for and that doesn’t need a huge investment to start.” He advised industry business owners to look at their local dealerships and inquire if they need or have a body shop. This, according to Smith, can lead to a possible partnership or sponsorship in the

Finish It Like a Masterpiece with Genuine Parts.

There were a number of attendees concerned about the ROI associated with gaining specific OEM certifications. Smith responded to their concerns by stating, “This is a long-term game and you should think of this like a 401(k) for your business; it’s wrong to want shortterm gains from these certifications.” Although the cost associated with certifications is high up front, according to Smith, there are several areas for future growth. By choosing this type of investment for your business you could gain

The Dealers Below Are Mercedes-Benz Genuine Parts Specialists:

NO. CAROLINA

Mercedes-Benz of Winston-Salem Winston-Salem

M-F 7am-7pm Sat 8am-4pm

336-659-6004 Fax

704-889-2310

800-489-6537 M-F 7:30am - 5:30pm

www.mbwinstonsalem.com

Going Forward According to Smith, the future of OEM certifications are uncertain, but they are a big factor in the “right now.” “There’s one consistent thing, the OEs are here and they aren’t going away,” said Smith. He also stated these types of certifications are becoming a standard which may lead to issues with future repairs if your shop or technicians aren’t certified. “I honestly think it’s worth the investment to keep your business,” Smith concluded. We thank glassBYTEs.com for reprint permission.

SEMA Show Canceled SEMA, the Specialty Equipment Market Association, announced Aug. 5 that due to COVID-19 and concerns event facilities and services will be unavailable, the SEMA Show will not be taking place in 2020.

Mercedes-Benz of South Charlotte Pineville

additional technicians, marketing support from the OEs, which include an influx of brochures as well as digital content, and more. “The potential for additional techs could also get your business additional cars within the year as well, you just have to keep reminding yourself that it’s a big investment upfront, but a minimal maintenance investment,” Smith said.

While both event organizers and industry members have been working tirelessly to deliver an outstanding SEMA Show in November, mounting uncertainty has rendered continuing with the event inadvisable. SEMA expects the decision will bring much needed clarity to an uncertain picture and will help exhibitors, attendees and partners plan accordingly. Recent SEMA Show survey results indicated interest in a possible virtual tradecshow with related

live elements. SEMA will be working with industry members to determine interest levels on specific alternatives. “The SEMA Show is committed to furthering businesses in the automotive specialty equipment market, and to providing manufacturers and buyers with the best opportunity to connect, promote new products and discover new trends,” said Chris Kersting, SEMA president and CEO. “We appreciate the spirit, hard work and innovation our industry puts into the SEMA Show each year. While we are disappointed circumstances prevent us from hosting the Show in November, we look forward to getting everyone together in 2021 for another outstanding event.” Full refunds for SEMA Show exhibitor booth deposits and attendee registration fees will be issued. Updates will be posted to www. SEMAShow.com. Source: SEMA

autobodynews.com / SEPTEMBER 2020 AUTOBODY NEWS 47

Southeast_Issue_0920.indd 47

8/17/2020 6:34:49 PM


Are you tired of floor covering products that look dirty too soon and can’t be cleaned or easily removed? Floor Wrap is the floor protection you can stick with. Our chemical resistant bright white polypropylene Floor Wrap is the highquality, high-strength, low-cost alternative to typical adhesive polyethylene fabric floor coverings. The durability and strength of polypropylene allows our film to be rapidly cleaned between applications. The film is corona treated to quickly attract and trap dust and overspray. The satin finish provides a bright, non-glaring, skid-resistant surface. Our aggressive adhesive backing ensures a quick and secure application—and the properties of poly-proplene allow quick and efficient removal when it is time to replace.

Order before Oct. 31, 2020, and we’ll pay your shipping!* Mention code #FSABN0420

*Applies to new orders of $450 or more. Offer applies to High Strength Floor Film only.

Floor Wrap High Strength ®

Ideal for epoxied, tiled and floors with smooth surfaces

Ideas that stick. The industry’s leading manufacturer and supplier of self-adhesive auto body repair films.

TO ORDER: toll-free 888-264-3770 • haldon1@att.net www.crashwrap.com ISO 9001 Certified Quality Assured, Consistency Guaranteed

36 in. x 120 ft. Roll, White #FW136W-HS

$171.24

36 in. x 500 ft. Bulk Roll, White #FW536W-HS

$472.85

Perfect Line (Every time) Our new and unique line perfection tape is abrasive resistant and allows you to sand directly on the tape surface without shredding. As tape wears, orange appears to let you know before you go through. • Works for sanding body filler and primer • Chemical resistant • Conforms to contours • Helps eliminate the need for multiple applications of material • Saves time and material

0.6 in. x 150 ft. roll #PL6150 $6.97/roll

48 SEPTEMBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_0920.indd 48

8/17/2020 6:34:49 PM


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.