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VOL. 1 ISSUE 8 OCTOBER 2010
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NACE/CARS Offers Array of Speakers NACE’s 2010 keynote speaker Kelly McDonald—a recognized expert on multicultural marketing and business trends and a former dealership sales executive—will address increasing diversity in the workplace and a changing workforce and customer base during the Opening General Session. Sponsored by DuPont, from 8:30–10 AM on Monday, October 11, followed NACE keynote immediately by the speaker, Kelly opening of the McDonald NACE and CARS show floor. McDonald will address the vast array of differences in the work-
force these days and how businesses can work cohesively with their customer base, their employees and their labor force as a whole. “The consumer really has the power of choice,” McDonald told Autobody News. She detailed how consumers have so much choice and information available to them online that businesses really need to cater to a customers needs, preferences and styles to win their business. For businesses, the bar is set higher than ever and the customer is fully in charge: they have specific expectations about service, convenience and communication. The multilingual needs of our country are more appar-
Mercedes-Benz USA September 8 held a grand-opening ceremony for a new cutting-edge facility in Jacksonville, Florida. Strategically located less than three miles from the Jacksonville airport, the new Southern Region facility centralizes several business units into one complex for more efficient dealer support and correspondingly higher levels of customer satisfaction. The recently constructed building totaling a combined 415,000 sq. ft., is a leased facility built to accommodate MBUSA’s needs. It is located off Interstate 95 at 13470 International
Parkway. MBUSA took official occupancy in July with four business units operating from the site including: Sales Operations Southern Regional Office; Parts Distribution Center (PDC); Quality Evaluation Center (QEC); and Learning & Performance Center (LPC). Approximately 160 employees work at the new facility, which incorporates innovative environmental systems and design using the same criteria as LEED certified buildings within each of the four business areas. “This new facility is an integral
See NACE, Page 13
Mercedes-Benz Officially Opens Facility in Jacksonville, FL
See Mercedes, Page 7
JOB DESCRIPTION— ● Run California’s largest consumer protection agency ● Oversee more than 1,500 insurers with 300,000 workers ● Control a tenth of our largest state’s economy
TASKS REQUIRED— ● Manage 1300 employees with a $200 million budget ● Field 300,000 consumer assistance calls annually ● Handle more than 35,000 consumer complaints ● Issue 170,000 agents/brokers licenses ● Investigate 24,000 suspected fraudulent referrals ● Initiate about 1,000 arrests annually ● Recover more than $48 million per year for consumers
FULL TIME POSITION, LONG HOURS— ● Requires election by voters of California ● Need to know plenty about collision repair
Who is Assemblyman DAVE JONES and why does he want to be California’s next Insurance Commissioner?
INTERVIEW by Ed Attanasio
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Contents
REGIONAL
Gonzo - It Can Still Be A Small World . . . . . . . . 17
Chattanooga Ranks 2nd Lowest for Collisions . . . 8
Yoswick - Access and Use of Shop Data . . . . . . 28
AL Ranks High in Auto Loan Delinquencies . . . . . 5
Chevy Ride & Drive Comes to GA . . . . . . . . . . . . 4 David Maus Chevrolet Launches New Website . . . 5 Dollar Thrifty Group Raises 2010 Outlook . . . . . 14
FL Insurance Execs: False Financial Statements . 12
Williams - Management Training Series . . . . . . . . 9 Yoswick - Automaker Announcements . . . . . . . . 26 Yoswick - CIC Discussions: Repair Standards . . 21 Yoswick - I-CAR Announces New Structure . . . . 11
GDOT Confronts Highway Sales Tax ‘Rumors’ . . . 8
NATIONAL
GM Recalling Workers at Spring Hill, TN Plant . . . 4
Ameriprise Fined $71K For Discount DRP . . . . . 14
Germany’s Möllertech’s Plant in Georgia . . . . . . . 5
Aftermarket Parts Industry to Consumer Reports 30
Guilty Verdict In FL Body Shop Owner’s Murder . . 6
ASRW Says 2011 Event Remains in October . . . 14
Hyundai Shifts Santa Fe Production to GA . . . . . 27
Highway Deaths Fall to Lowest Level . . . . . . . . . 20
Hyundai AL Plant Gains Elantra Production. . . . . 27
Manheim Security Guards Thwart Robbery . . . . . 6
Mercedes-Benz Officially Opens in Jacksonville . . 1
Mercedes-Benz Hiring Plans for Alabama Plant . . 4
OSHA Penalizes AL Parts Manufacturer . . . . . . . . 7 Sonic Auto Opens Buick and GMC shop in AL . . . 5
August Sales Down vs. C4C . . . . . . . . . . . . . . . 12
Kia’s Top Executive Resigns After Recalls . . . . . 31
Marchionne Targets Chrysler IPO in Q2 of 2011 . 14
NACE/CARS Offers Array of Speakers . . . . . . . . . 1 Progressive’s Round Two Against Coccaro . . . . 12
TX-Based Service King Plans Expansion . . . . . . 19
TN Offers $2,500 Tax Break on Electric Cars . . . . 5
Volkswagen Predicts EV 500 Mile Range . . . . . . 17
Sonic Auto Opens Buick and GMC shop in AL . . . 5
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COLUMNS
Lots more News . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota Gets 9,600 lining up at MS Plant. . . . . . . 10
Autoland: Mobile Airbag Co. Relies on Scanners 15
Amaradio - Aftermarket Parts, the Same? . . . . . 18 Chess - Porsche Collision Certification Program. 22
Evans - Finishing the Red Mist Car. . . . . . . . . . . 29
California Insurance Commissioner . . . . . . . . . . . .
NACE/CARS coverage . . . . . . . . . . . . . . . . . . . . . .
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Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Editorial Assistant: Erica Schroeder Contributing Writers: Tom Franklin, Stefan Gesterkamp, John Yoswick, Lee Amaradio, Toby Chess, Mike Causey, Dan Espersen, Tom McGee, Jeff Webster, Rich Evans, Ed Attanasio Advertising Sales: Joe Momber, Christina Shubert (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia Serving Florida, Georgia, Alabama, Mississippi and adjacent metro areas, Autobody News is a monthly publication for the auto body industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2010 Adamantine Media LLC.
Autobody News
P.O. Box 1400, Oceanside, CA 92051-1400; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Aegis Tools . . . . . . . . . . . . . . . . . . . . 12
Kia Motors Wholesale Parts Dealers . 2
Autoland Scientech . . . . . . . . . . . . . 16
Mattei . . . . . . . . . . . . . . . . . . . . . . . . 11
Auto Body Guru . . . . . . . . . . . . . . . . . 7
Maroone Chrysler-Jeep-Dodge . . . . . 8
BMW Wholesale Parts Dealers. . . . . 26
Mercedes-Benz Wholesale Parts
City Hyundai . . . . . . . . . . . . . . . . . . . . 4
Mitsubishi Wholesale Parts Dealers . 27
Crown Automobile Company. . . . . . 19
Nissan Wholesale Parts Dealers . . . 24
Ford Wholesale Parts Dealers
Performance Radiator . . . . . . . . . . . 18
Chassis Liner . . . . . . . . . . . . . . . . . . 10
Classifieds . . . . . . . . . . . . . . . . . . . . 31
Edwards Chevrolet . . . . . . . . . . . . . . . 6 FL, GA, AL, MS. . . . . . . . . . . . . . . 23
Galloway Mazda . . . . . . . . . . . . . . . . 12
Garmat USA . . . . . . . . . . . . . . . . . . . 20
Global Finishing Solutions . . . . . . . . 32
GM Wholesale Parts Dealers . . . . . . 30
Gus Machado Ford . . . . . . . . . . . . . 22
Honda Wholesale Parts Dealers . . . 18 Hyundai Wholesale Parts Dealers . . 27
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Malco Products . . . . . . . . . . . . . . . . . 5
B & B Equipment . . . . . . . . . . . . . . . 14
Bill Penney Toyota . . . . . . . . . . . . . . . 4
Nalley BMW
Mazda Wholesale Parts . . . . . . . . . . 24 Dealers . . . . . . . . . . . . . . . . . . . . . 28
Nalley BMW . . . . . . . . . . . . . . . . . . . . 3
Palmers Toyota . . . . . . . . . . . . . . . . . . 8
SATA . . . . . . . . . . . . . . . . . . . . . . . . . 13
Scorpion . . . . . . . . . . . . . . . . . . . . . . . 9
Tameron Hyundai . . . . . . . . . . . . . . . 25
Taylor BMW. . . . . . . . . . . . . . . . . . . . 20
Toyota Wholesale Parts Dealers. . . . 30
VIM Tools . . . . . . . . . . . . . . . . . . . . . 29
Walcom. . . . . . . . . . . . . . . . . . . . . . . 21
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www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 3
Mercedes-Benz Outlines Hiring Plans for Alabama Plant
The Alabama operations of Mercedes-Benz said September 2 that it has selected an agency to help fill more than 400 new temporary jobs at the Vance auto factory, according to reports by the Birmingham News. North American On-Site LLC, with locations in the United States and Canada, will open a new office on Sept. 13 in Tuscaloosa at 2002 McFarland Boulevard East, Suite 102. From there, the firm will provide staffing services to Mercedes and other companies in the area. The automaker said full details of the application and hiring process will be outlined in ads that will appear in Sunday’s editions of The Birmingham News and The Tuscaloosa News. People also may apply online at www.naonsite.com or in person beginning Sept. 13. The 2,800-worker Mercedes plant, which shed its temporary work force last year during a global sales slump, has seen rising demand for its vehicles this year. The temporary jobs will help the plant manage the peaks and valleys of vehicle demand. Mercedes announced the hiring plansAugust 27 during a grand opening for an addition to the plant’s shop.
E ALLE ESA OLLES W HO WH S
PART S
Chevy Ride & Drive Comes to GA
Chevrolet will join Fiesta Georgia with a high profile Ride & Drive event. Fiesta Georgia, hosted by Lanza Group, LLC, is a day-long celebration of Latino culture that serves as the unofficial kickoff to Hispanic Heritage month. “We want to bring the Chevy experience to our customers proactively,” said Chevrolet Regional Sales Operations Mgr, Tom Gilbert. “Participating in Hispanic Heritage month and the Ride & Drive event at Fiesta Georgia allows us to bring awareness to our Latino customer base.” The Ride & Drive event is an interactive event within the festival that allows attendees to fully experience Chevy’s top products. Chevy will display a Camaro, Silverado and three other models for the crowd, similar to a typical car dealership for festival attendees to experience. Participants will then be able to test drive the different models on a closed course, to learn the features and benefits each carry. Chevrolet first began their partnership with the Lanza Group this year, at Fiesta Atlanta in May 2010. The 3rd annual Fiesta Georgia will take place September 19th at the Georgia International Horse Park in Conyers, Georgia from 10 a.m. to 7 p.m.
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GM Recalling UAW Workers at Spring Hill, TN Plant
General Motors plans to recall about 400 idled union workers to its plant at Spring Hill to build four-cylinder engines for its mid-size crossover vehicles, according to reports made by the Associated Press on September 14. A person briefed about the new jobs provided the employee count to The Associated Press and said the recall is due to increased demand for the four-cylinder engines. The person did not want to be identified because the plan has not been made public. In addition, GM will announce that it is investing millions in the Spring Hill engine plant to build the next generation of the company’s Ecotec four-cylinder engine, the person said. The factory already builds three four-cylinder engines. GM spokeswoman Sherrie Childers Arb declined comment September 14 about the jobs but said a media advisory about a September 17 announcement at the plant in Tennessee was forthcoming. The automaker laid off about 2,000 workers at Spring Hill last year and about 800 of those workers have relocated to GM plants in other states. In the U.S., the engines built at the Spring Hill plant go into the Chevrolet Equinox and GMC Terrain midsize
crossover vehicles, the Buick LaCrosse luxury sedan and the Buick Regal midsize sedan, all of which are selling well. UAW Vice President Joe Ashton is scheduled to be in Spring Hill on September 17 to help make the announcement, the source said. The prospect of GM adding jobs is also welcome news in Maury County, which had a 14.5 percent unemployment rate in July. Debbie Hargis is the office manager at Bagsby Tractor and Truck Service in Spring Hill, which worked on trucks for a company that hauled vehicles for the GM plant. She said the jobs are “going to help Spring Hill a great deal. When people get hired on, it creates more of everything for the area.” She said “every business in this area has felt the effect” of the layoffs. The Detroit Free Press first reported GM’s decision to expand its engine building at the Spring Hill plant. GM laid off workers last year when it moved production of its Chevrolet Traverse after a million dollar overhaul of the Spring Hill plant, where GM 20 years earlier started building the Saturn brand.
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Germany’s Möllertech Starts Molding Plant in Georgia
Möllertech GmbH & Co. KG is investing $9.75 million to start an injection molding plant in Elberton, GA, they announced Aug. 26. The plant will serve automotive customers, primarily BMW. The company’s Moeller Tech unit will locate the plant in an existing 130,000 square-foot building that is already outfitted for plastics manufacturing, according to a news release from Georgia Gov. Sonny Perdue. Möllertech, which is based in Bielefeld, Germany, said the plant will employ 75. “It has been an exciting time for Möllertech to find a home and set up a new plant in a Southern state to supply our automotive customers,” said Moeller Tech CEO Wolfgang Bruns in a news release. Local economic development officials had said in June that they were finalizing a deal with a European plastic molder, but at the time they did not name the client. Elbert County is in northern Georgia, near the South Carolina border. The southeastern United States has seen an increase in auto assembly plants from both European and Asian automakers.
David Maus Chevrolet Launches New Website
David Maus Chevrolet in Florida, currently under construction, is proud to announce the launch of its new website www.DavidMausChevrolet.com. The new website offers many great features by providing users with up-to-date information on the construction of the facility, interviews with the construction crew on the project, videos on events throughout the construction period and more. David Maus Chevrolet will be the fifth dealership in the Central Florida area as a part of the Van Tuyl / David Maus Automotive Group. The construction company, RL Haines, is heading the project which will provide over 1,500 construction related jobs. The new Service Department will showcase 37 service bays with three heavy truck lifts and three detail bays. The entire line of Chevrolet vehicles will be available for sale with one of the largest inventories in Orlando. For more information on the facility or to apply for a position at David Maus Chevrolet please contact the 407-302-8800 or visit www.DavidMausChevrolet.com. David Maus Toyota Scion is open for sales and service with a location at 1160 Rinehart Road in Sanford, FL.
TN Offers $2,500 Tax Break on Electric Cars
Tennessee will offer a $2,500 tax rebate to the first 1,000 buyers of electric vehicles sold in TN, according to reports made by the Associated Press. Tennessee’s $2,500 rebate can be combined with the $7,500 federal tax credit. Keep in mind that a tax credit only offsets taxes that you owe. To get the full amount of the federal tax credit, you’d have to owe $7,500 in taxes after your other standard deductions. The good thing about a tax rebate is you get the $2,500 regardless of the amount you owe. According to Nissan, the Tennessee rebate can be applied for during purchase time. Tennessee will be one of the first states to get the electric car, the Nissan Leaf. Nissan is currently building an assembly line and battery plant in the state for domestic production of the Leaf, which will start in 2012. Nissan North America is headquartered in Tennessee. The Leaf goes on sale in December in California, Arizona, Tennessee, Washington and Oregon and then in Texas and Hawaii in January 2011. A nationwide roll-out will start in the spring. There was no mention of the Chevrolet Volt in the Tennessee press release.
AL Ranks High in Auto Loan Delinquencies
According to reports made by the Birmingham Business Journal, Alabama had the third highest auto loan delinquency rate in the country for the second quarter. A report from TransUnion ranked Alabama 49th overall in the analysis — with a rate of 0.83 percent. The report looks at the ratio of auto loan borrowers who are 60 days or more past due. Nationwide, delinquency rates decreased more than 19 percent from the first quarter.
Sonic Auto Opens Kia Shop in CA, Buick and GMC in AL
Sonic Automotive Inc., which operates 140 car dealerships, said September 3 it has been awarded a new Kia franchise in Colma, CA, and Buick and GMC franchises in Montgomery, AL. The Colma business will complement existing import dealerships in that market, said B. Scott Smith, the company’s president. The Buick and GMC franchises in Montgomery add to the presence the company has with Chevy and Cadillac.
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 5
Manheim Daytona Beach Security Guards Thwart Robbery
Watchful security personnel at Manheim Daytona Beach overcame intimidating ploys by would-be thieves and started the process that included a high-speed chase and ended with the arrest of four men and a 17-year-old juvenile who attempted to steal four vehicles. According to Volusia County deputy sheriffs, the incident began when one security guard first spotted a vehicle driving around the storage lot shortly after 3 a.m. September 1. The guard reported to her partner after noticing more vehicles being driven. Then, the Manheim personnel contacted law enforcement via 911. Sheriffs department spokesman Brandon Haught said in a report published by the Orlando Sentinel that the individuals apparently tried to intimidate the guards to open the facility’s gates. Haught described how the men lined up the four vehicles and revved the engines, thinking the guards would unlock the entrance. When the guards did not, Haught said they drove around apparently looking for another exit, eventually crashing a 2010 Nissan Maxima into another parked vehicle. When law enforcement arrived, the individuals tried to flee in a get-
away vehicle parked outside of the Manheim property. The Sentinel account of the incident described a highspeed chase that took law enforcement on a path along Interstate 4 and two secondary roads. The report went on to state sheriff’s deputies and the New Smyrna Beach Police Department used multiple rounds of spike strips to deflate the tires of the getaway vehicle and stop the men. Law enforcement officials said Christopher Mason, 21, Darrius Lowe, 19, David Williams, 19, Tacordon Riggins, 18, and a 17-yearold who is not being identified because of his age, all are accused of commercial burglary, criminal mischief and four counts of auto theft. Mason also faces a charge of violation of probation, and Lowe was arrested on an Orange County warrant charging him with aggravated fleeting and eluding. Haught indicated that all five men were taken into custody. He added Williams and the juvenile were treated at Halifax Health Medical Center in Daytona Beach for cuts inflicted by razor wire when they climbed over the fence at Manheim Daytona Beach.
Guilty Verdict In FL Body Shop Owner’s Murder
A jury deliberated less than an hour before finding a 24-year-old man guilty of murdering Vinson Phillips, the popular owner of a St. Petersburg body shop, according to reports made by the St. Petersburg Times. Pinellas-Pasco Circuit Judge Richard Luce sentenced Brandon McCalvin Sutton on September 1 to life in prison without the possibility of parole. That was the only possible sentence for his first-degree murder conviction because prosecutors had not sought the death penalty. Phillip’s widow, Renae Powell Phillips, said after the verdict that she thought to herself: “Thank you Jesus.” “He didn’t need to walk,” she said. “He took a life.” Renea Phillips testified that the night of September 4, 2007 two masked men burst into her and her husband’s bedroom, pointing handguns and demanding money from a safe in his closet, where they believed he was storing $50,000. The victims daughter, Shanika came in, and one of the men tossed her to the floor. Her mother slipped off the bed and crawled on top of her then-16-yearold daughter, trying to protect her. Renea Phillips said one of the men aimed a gun at her husband, de-
manding he open the safe and telling him: “Im not playing, man, Im going to shoot you.” There was one shot, then a burst of others, Renea and Shanika said. Then the men ran away. The safe, which contained some coins and pieces of gold jewelry, was never opened. The family called an ambulance for Phillips, but he was pronounced dead at Bayfront Medical Center. “We’re relieved for the family,” Assistant State Attorney Frank Piazza said after the verdict. Phillips, he said, “was a good man in the community.” Though the Phillips’ family members could not identify their attackers, Sutton later admitted to police that he was there at the time of the murder, but he denied having a gun or doing any shooting. But prosecutors presented evidence that two guns had been fired at Phillips, and that only two men invaded the home. Phillips, 46, owned the Phillips Enterprise body shop in the 1600 block of 18th Ave. S. in St. Petersburg. Police have not arrested a second suspect in the killing.
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Mercedes
part of our commitment to more efficiently and effectively support our dealers so that they in turn can provide the unparalleled ownership experience that our buyers expect from Mercedes-Benz,” said Ernst Lieb, president and CEO of MBUSA, who presided over the ceremony. “This facility represents our best thinking in terms of how Mercedes-Benz looks and functions.” The new complex incorporates the company’s unique Autohaus design which has been adopted by Mercedes-Benz dealerships across the country. The modern aesthetic concept
skillfully incorporates signature design elements in a way that is designed to promote interaction and create an appealing functional environment. The new Jacksonville facility houses the following business operations: ● Sales Operations Southern Region Office: The Southern Region MBUSA office supports 102 MBUSA dealerships with sales and fixed operations across 12 states including Florida, Arkansas, Louisiana, Oklahoma, Alabama, Mississippi, Tennessee, Georgia, North Carolina, South Carolina, Virginia and Texas as well as Puerto Rico. ● Parts Distribution Center: A new addition to MBUSA’s operation in Jack-
sonville, the Parts Distribution Center (PDC) supports approximately 70 MBUSA dealers in the Southeast with parts supply. The PDC will house about 15 percent of MBUSA overall parts inventory, shipping over 1.3 million lines annually. ● Quality Evaluation Center: With more than 70 personnel from various engineering and logistics disciplines representing a diverse collection of work experience and backgrounds, the Quality Evaluation Center in Jacksonville is one of only two operational units of its kind outside of Germany. The QEC team includes Daimler Quality personnel, placing engineers closer to the market and to the dealers served by MBUSA. This market proximity brings greater knowledge of
market-specific issues directly into the quality management process through faster parts evaluation and feedback to Daimler development. Local parts analysis also helps to improve diagnostic tools and technical information while the resulting rapid feedback to dealers increases the diagnostic skills necessary for improved “Fixed First Visit” performance—a key customer satisfaction component. ● Learning and Performance Center: The Learning & Performance Center is a leading edge training facility for dealership and MBUSA personnel. MBUSA facilitates over 120 classes per year in the Jacksonville Learning & Performance Center, with a total of about a thousand participants from across the Southeastern United States.
OSHA Issues Penalties to AL Parts Manufacturer
The U.S. Department of Labor’s Occupational Safety and Health Administration is proposing $60,500 in penalties against Hysco America. The department is alleging 12 workplace safety and health violations at the Greenville, AL, manufacturing plant. OSHA began its inspection in June as part of its national program to prevent amputations in the workplace. The citations include one willful violation carrying a $49,000 penalty for the company allowing an amputation hazard to continue by failing to provide machine guarding on equipment. “There is no excuse for management to wait for an accident to happen before taking corrective action,” said Kurt Petermeyer, OSHA’s area director in Mobile, Ala. “Hysco America knew that this was a hazard because they had experienced an employee injury at another location in 2009, and even though they corrected the hazard at that location, they failed to correct a similar hazardous condition at this plant.” The company has received seven serious citations with penalties totaling $10,000 for tripping hazards due to excessive debris in the facility; open-sided floors; blocked exit routes; improper railings on stairs; failure to perform periodic inspection of lockout/tagout procedures; and machine guarding hazards. The Hysco America plant employs about 75 workers and manufactures parts for Hyundai Motors. The company has 15 business days to comply, request a conference with OSHA’s area director or contest the findings. www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 7
Chattanooga, TN Ranks 2nd Lowest for Collisions The typical Chattanooga motorist drives nearly 13 years between accidents, making Chattanooga home to the safest drivers in the South, according to a new study by Allstate Insurance Co and reports made by the Chattanooga Times Free Press. Among the nation’s 200 largest cities, Chattanooga trailed only Fort Collins, Colo., for the lowest rate of collisions involving motorists insured by Allstate, the nation’s secondbiggest insurer. Allstate customers in Chattanooga had accidents involving property damage 22.7 percent less often than all U.S. drivers during the two years of collision data analyzed by Allstate. “Chattanooga drivers have always shown up well in our rankings, but this is the best year ever,” said Alison Hatcher, a spokeswoman for Allstate Insurance in Nashville. The favorable showing for local motorists gives Chattanooga more than bragging rights for the skills of those behind the wheel. Based upon favorable claims experience, Allstate cut its auto policy rates in Hamilton County by 10 percent in July — one of the biggest declines ever for the insurance giant.
“We were very excited about our crash rate being so good because in Hamilton County we got a 10 percent discount in July and most counties didn’t get that kind of reduction,” said Esther Suggs, an Allstate agent in Brainerd. “Usually rates go up every year, not down.” Suggs said Chattanooga’s medium size and calmer lifestyle help keep people safer on the road. “If you’ve driven in other cities like I have, you know that motorists in places like Atlanta seem to drive a lot more crazy, and the accident rate is much greater,” she said. Atlanta’s accident rate placed the Georgia capital at No. 146 among the 200 top U.S. cities, according to Allstate. Chattanooga, Knoxville and Nashville all were among the top 25 cities again in the 2010 “Best Drivers’ Report” with accident rates at least 10 percent below the U.S. average. Allstate officials said Tennessee’s graduated driver’s license program for young drivers, the state’s ban on texting while driving and Tennessee’s more favorable road conditions combined to help keep driving safer in the Volunteer State.
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8 OCTOBER 2010 AUTOBODY NEWS | www.autobodynews.com
GDOT Confronts Highway Sales Tax ‘Rumors’
State Department of Transportation Policy and Projects Special Assistant Stephanie Carter September 7 in Gainesville advised Kiwanis Club members not to reject the new regional sales tax for transportation until they understand how it works and what it does. The sales tax referendum goes before the voters in 2012, not this November, and a regional road project list won’t come out until next year. The 10 year, one cent sales tax goes into effect in 2013. “Until you actually see the project list and what the one penny is going to fund, I think it’s a little short sighted to come out against the penny,” Carter said. Last week Hall Farm Bureau members voted against the measure, fearing it could cut funding for Hall County projects. Carter, who reports directly to Transportation Commissioner Vance Smith, said the new Transportation Investment Act would not stop the flow of funding. “The money that is raised in this region stays in the region,” she said. “I think a lot of folks are afraid that the money raised here will build new interchanges in Atlanta and that’s not the case.”
Gainesville and Hall County are in the Georgia Mountains Region and Carter said monies raised in the region would go back into its infrastructure. Carter added that DOT would continue to spend money for transportation in Gainesville and Hall County. Carter said 75 percent of the money is going to be spent on regional projects while 25 percent would go back to the region’s county commissioners and mayors. On November’s General Election ballot this year there is a voter referendum that stretches funding for state transportation projects. According to Carter Referendum (3) allows GDOT multi-year contracts on highway projects. “So if a project is going to cost $100-million but it’s going to take three years to build they could fund it in Year One with $30-million, Year Two with $30-million and Year Three with $40-million,” Carter said. “Right now if we have to put aside that entire $100-million that money is tied up in that project even though it takes three years.If we could move to multi-year contracts it would allow us to get more projects out the door in this fiscal year and in the next and the next.”
Management Training Series: When Expressions Come True
I write this story as an example of what not to do. I also write this story as a fable, to protect the indignant. Therefore, it starts like this:
Once
upon
a
time, in a far off land, there was a Larry Williams kingdom which had existed for two generations. The business of this kingdom had grown over the years, and the castle was now far too small to fulfill all of the kingdom’s needs. The present king needed to expand his castle. He called in all types of workmen, and they labored
together for many weeks in order to enlarge the castle. In the course of their various labors, they attempted to communicate and coordinate with each other. Most of the time things went well, but occasionally there were breakdowns. This is the story of the result of one of those communication errors. Long, long ago, the king’s father had decided to install over his ground floor office, a small apartment with a bath, a bed, and a private stairwell. The present king used it primarily for storage, but valued the privacy of his own bathroom. He was a quiet man, happy at his desk, and few of his subjects cared to disturb him. During the
expansion of his castle, there were of course, necessary changes made to the existing infrastructure. Intermittently, the subjects would lose their water, power, and other services, but most of the time there was warning of these events, and they were dealt with as almost routine. This particular day, however, was not routine. Unknown to anyone except for two of the workers, it became necessary to reroute the plumbing from the old apartment area. These pipes were located in the area between the first and second floors of the castle. Here is where the communication breakdown occurred. The workers as-
sumed that the old pipes were seldom used, and that there would be no need to climb down and find the overseer; post notices, etc. They thought that their repairs would be completed quickly and that no one would notice or even care about their work. They were sadly mistaken. They had completed half of their work, and clean, fresh water was again available to the old apartment. Now it was lunch time. Both men took a well deserved break, as working in the crawl space between floors was extremely difficult. They relaxed and talked to each other, listening to the sounds of the other subjects working below. Those subjects had no idea of their existence, and took no notice of them, even though the work was directly over their heads. Now it came to the king the urge to use his apartment’s facilities. He saw no need, nor had he been informed of any need, to change his normal habits. He climbed the stairs, and sat upon his throne. For many moments there was nothing unusual, and all went well. The king finished his duties, and performed the final gesture, disposing of the evidence. At this point, my story brings fantasy to life. Several gallons of the king’s bounty went down the pipe as usual, until it came to the severed end of the pipe, between the floors. It missed the two men eating their lunch and all would have been well, except for two things. The men naturally shouted in alarm, but their noises did not have the desired effect. Instead of dispersing the subjects below, their shouts drew the attention of all in the vicinity, gathering them to the source of the shouting. The second problem was the force of gravity. This force pulled everything down from the crawl space, through the false ceiling panels, and onto the heads, bodies, and workspace of the subjects below… yes, at that moment every crude joke, tagline, and job description came true. You can understand, no further work was accomplished that day. Every fable needs to teach a lesson. You might assume this lesson to be one about communication, planning, or other such items; it is not.
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 9
The lesson from this fable comes after the event. The king, who must have been informed of the results of his actions, never said a word to his subjects. Without any word from the king, the subjects were free to think the worst. They waited in vain for any sign of his distress, embarrassment or concern. Understand that it was never his intention to initiate this event, it was an accident. But the result of his silence was even worse than the event itself. He was perceived as uncaring and cold. He lost the respect of his entire kingdom. Even the relatives of the subjects working in that department were offended. Construction slowed, permits were delayed, sales slowed; subjects left for better lands. The moral is clear. If you are a manager, at any level, and an employee suffers due to your actions, apologize.
An apology costs the giver nothing, and gives the receiver everything. Admitting responsibility for your actions —even accidental ones—is a sign of moral character. Your employees will know that you care, and will return your consideration with their loyalty. You have the power. Your decision in a crisis can change an event from a catastrophe into a shared joke, or just as easily destroy or enhance your reputation. See Larry’s previous articles at www.autobodynews.com. Go to www.autobodynews.com > content > distinctive-dealerships.html Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com.
Give us your opinion on matters affecting the industry.
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10 OCTOBER 2010 AUTOBODY NEWS | www.autobodynews.com
Toyota Gets 9,600 Apps for Jobs at New MS Plant In a signal not only that jobs in the current economy are precious but that auto manufacturing jobs apparently still carry weight, in the first week after announcing it was accepting applications for hourly workers at its restarted assembly plant in Blue Springs, MS, Toyota Motor Manufacturing Mississippi Inc. has been inundated with about 9,500 applications for the approximately 1,350 hourly jobs at the site according to reports made by Edmund’s Auto Observer and the Jackson Clarion-Ledger. Construction of the Blue Springs plant, started in 2007 but suspended in 2008 when the economy soured, recently was restarted in order to build the Corolla compact car starting next year. The plant originally was earmarked to be the first-ever U.S. source for Toyota’s Prius hybrid-electric vehicle. But after shaky Prius sales during the recession over the last few years and Toyota’s decision to shutter the plant in Fremont, CA, that recently built the Corolla and Matrix, the company announced in June a plan to finish the TMMM plant and build the Corolla there.
The Ledger reports starting pay will be in the $15- to $20-per-hour range, with applications in the first week coming from 33 states, including Michigan and California. About 8,000 of the total applications came from Mississippi and there will be about 150 salaried jobs at the Blue Springs plant. Despite the influx of applications for the Toyota plant, some sources say automakers nonetheless are competing for qualified workers in the region. This is due to the construction of several new plants within a comparatively small radius, including the recently started Kia Motors America plant in West Point, GA, and a new Volkswagen Group assembly plant coming on stream next year in Chattanooga, TN. For the Toyota Blue Springs site, most workers will live locally. “Typically, the majority of the work force will come within an hour’s drive,” David Copenhaver, vice president of administration, told the newspaper. For more information about available positions with Toyota please visit http://www.toyota.com/about/careers/.
Industry Insight with John Yoswick
John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
I-CAR Announces New Structure to its Training, Recognition Programs John Edelen said that three years ago when he stepped out of retirement to take on the role as CEO of I-CAR, someone well-known and respected in the industry asked him why he would “waste his time” with an organization like I-CAR that was “no longer relevant.” “At first I was stunned, and then I was really … angry,” Edelen said, obviously choosing the adjective carefully, generating laughs among the 200 people gathered in Chicago for an I-CAR event this summer. “I-CAR irrelevant? An organization that was established by the inter-industry 30 years ago to meet the training needs of the inter-industry … irrelevant? After 30 years of efforts by volunBill Stage teers to provide
that training … irrelevant? After the industry had spent $170 million over that period of 30 years … irrelevant? Not if I could help it.” Over the last three years, Edelen has overseen I-CAR’s efJeff Peevy forts to reach out to the industry to find out what the training organization was doing right and what needed to change to ensure that its training and recognition programs were focused, valuable – and relevant – to shops, insurers and educators. Edelen said the results of that effort, which were rolled out at the Chicago meeting, is I-CAR’s new “Professional Development Program.” Under the program, I-CAR has identified the knowledge required for three levels of development (“Pro-
Level 1, 2 and 3”) within each of seven job classifications, such as “estimator” and “non-structural technician.” Other job classifications will be developed over time. The I-CAR or other training and testing recommended to reach each of the three levels is also identified, providing job-specific training paths. The “Platinum Individual” and “Gold Class” recognition program requirements will also transition over a 3-year period. By 2014, the “Platinum” designation will require having completed the training to obtain “ProLevel 3” in the appropriate job classification, as well as completion of six hours of training per year. A “Gold Class” shop will be required to have at least one “Platinum Individual” in each of four types of jobs (estimator, steel structural technician, non-structural technician and refinish technician). One key change to the Platinum and Gold Class programs, I-CAR’s Jeff Peevy pointed out, is that as the transition moves forward, I-CAR’s hands-on welding and sectioning qualification testing becomes part of the requirement to reach various “ProLevels” for some job classifications. The steel welding qualification test, for example, is required in order for a steel structural technician to achieve ProLevel 1. Similarly, paint company certification is required for a refinish technician to achieve ProLevel 3. Peevy acknowledges the system is almost a return to one that I-CAR used in the past, before abandoning it in a effort to make it easier for technicians and shops to know what was needed to earn or maintain Platinum or Gold Class status. But that simplified system, Peevy said, sometimes led to students earning needed points by taking any class that was available rather than one relevant to their work. And in recent years, he said, I-CAR has developed tools like its online “Training Manager” that helps a business track what training its employees have or need, making a return to more jobJohn Edelen specific Platinum
and Gold Class requirements easier for the business to manage, Peevy said. Edelen acknowledged that he doesn’t believe that all of these changes are apt to cause “people who don’t invest in training today to suddenly start.” “But I believe the people in our industry who are interested in improving their individual personal performance or the performance of their business now have access to a well-organized, well-structured program of professional development, one that will be better support their personal and business goals,” he said. “And I believe that creates a competitive advantage for them.” So, too, he said, the changes will help make the Platinum and Gold Class designations more meaningful. “We as an industry are reaching the point where NOT being a Platinum Training individual or Gold Class facility also will mean something,” Edelen said. “With these changes, it will become quickly and increasingly more apparent which business are prepared through training to address the increasing complexity of repair…and (which) businesses have failed and continue to fail to prepare themselves for the future. By not selecting a Gold Class business, the consumer is unknowingly accepting the risk of having repairs completed by undertrained workers.” Details on the new training and recognition programs are available at the I-CAR website (www.i-car.com). In other changes, I-CAR executives at the Chicago meeting said in the coming years there likely will be more variance in the length of classes (currently most are four hours) based on necessary content. Pricing is also likely to change, although they did not provide details; one option may be the ability to purchase all “ProLevel 1” training needed for a certain job classification at a package price. More online training options are also planned by early 2011. I-CAR is also working on a system, also expected in early 2011, that would allow veteran technicians to “test out” of at least the ProLevel 1 requirements for their job classification.
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 11
Progressive’s Round Two Against Coccaro On December 6, 2010, the legal team representing Progressive Insurance, headed up by Michael Nelson will once again travel to West Chester County, New York to present their claim of $2,800 in fraud stemming from the $34,000 repair of a one-year old Mercedes in 2005. The case had originally been tried in 2008 when a New York judge found in favor of the shop, North State Custom, and its owner, Greg Coccaro. The judge found that Progressive did not present sufficient and credible evidence to support the insurer’s claims of fraud against Coccaro and dismissed the case before the defense called their first witness. But the case now heads to trial again after Progressive appealed the decision and won the chance to retry its case. “We are disappointed that the appellate court saw fit to overturn the judge’s decision,” said Coccaro. “I am confident that Judge Smith will see through Progressive’s scheme to discredit me and my company. I appreciate all the support and encouragement. We will see this thing through no matter
what it takes so that consumers know they have a quality repair facility to go to that works for their best interest.” Coccaro’s attorney in the original case, Tony Mamo, had explained that under New York law, if Coccaro wins, he cannot recover his legal expenses, nor can he be awarded any money from Progressive. “If he wins, he just gets to walk away exonerated,” said Mamo. The highly publicized legal battle between Coccaro and Progressive Insurance involves not only Progressive’s charges of fraud in this case set for trial in December, but also involves a multi-million dollar lawsuit filed by Coccaro against Progressive for alleged deceptive business practices and patterns of violations of NY law. The discovery phase of the deceptive business practices case is nearly complete, according to Coccaro, and the depositions have also been completed. Coccaro said he expects that case to go to trial sometime early next year. Anderson Kill & Olick, P.C., a Manhattan-based law firm has agreed to represent Coccaro in his case against Progressive.
August Sales Down vs. C4C
Automakers struggled through another disappointing month in August, as weak housing and other economic data discouraged consumers from making big purchases. Auto sales tumbled from prior-year levels, as expected. Compared with August 2009, when the government’s “cash for clunkers” program fueled a surge in demand, last month’s sales were down 21 percent. But the selling pace also slowed from the previous month, slipping to 11.47 million cars and light trucks, on an annual basis, from 11.54 million in July. The selling rate last August was 14.17 million vehicles, with cars accounting for 57.6 percent, according to Autodata Corp. This August, as gas prices held steady in a sluggish economy, light truck sales accounted for 49.7 percent of the total, up from 42.4 percent a year ago. Chrysler Group LLC, Hyundai Motor Co. and Ford Motor Co. fared best in a difficult market. Chrysler was the only major automaker to report a sales increase last month, a jump of 6.9 percent, because automaker hardly benefited from the “cash for clunkers” program last summer.
FL Insurance Executives Allegedly File False Financial Statements
Two First Commercial Transportation and Property Insurance Company (FCTPIC) officers were arrested for allegedly filing false or misleading statements with the Florida Office of Insurance Regulation. Former FCTPIC president and CEO Luis M. Espinosa and vice president and chief operations officer Rene M. Cambert allegedly signed fraudulent notarized documents declaring that FCTPIC and its father company, First Commercial Insurance Co., were maintaining Florida’s required minimum capital and surplus of $4 million for insurance providers, making FCIC/FCTPIC seem like they had more reserve assets than they did, according to Florida Department of Financial Services. The allegedly fraudulent cash assets totaled more than $10 million. Espinosa and Cambert were arrested on eight first-degree felony counts, each of which could lead to up to 30 years in prison. FCIC/FCTPIC were ordered into receivership for rehabilitation and then liquidated August 2009.
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Continued from Front Page
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ent than ever and the businesses that meet those needs will have a significant competitive advantage in the marketplace. McDonald’s presentation will be focused upon key generational segments and the Hispanic consumer. Attendees will learn about the Four Levels of Acculturation and the importance of relating to different cultures. Kelly McDonald is a recognized expert on multicultural marketing and business trends. McDonald also worked in the automotive industry for over 20 years with brands like Toyota, Nissan and Subaru in their sales and advertising department. She has knowledge of parts and services as well as industry terminology. McDonald’s speaking client roster includes: Toyota, Sherwin-Williams, Harley-Davidson, State Farm Insurance, AAA Travel, BlueCross BlueShield, and dozens of financial organizations and associations. McDonald will not be holding any seminars after her keynote speech
titled; “The Changing Face of Your Business—Inside and Out” but will be moderating one of the forums on Sunday, October 10. More information about McDonald’s services can be found at www.mcdonaldmarketing.com. McDonald will be publishing her first book, “How to Market to People who Are Not Like You” in March of 2011. Other speakers that will host some industry seminars are: Angie Kilbourne, Bob Cooper, Tony Passwater, Chris Ortiz and Richard Flint. Chris Ortiz will speak on October 12th from 4:00 PM–5:30 PM on Introduction to Lean Auto Body. The seminar will focus on the 8 Wastes of Lean, Body Shop Performance Metrics, 5S and the Visual Body Shop, Kanban and Material Replenishment and Repair Flow. Ortiz will also speak on October 13th from 7:30 AM–10:30 AM on 5S and the Visual Shop. This course is a highly detailed curriculum covering the implementation of 5S and the visual workplace. 5S is an aggressive organization and cleanliness philoso-
phy that has a profound impact on productivity and maximizing time. It is the foundational element of LEAN auto body and will be the catalyst for future ongoing improvements. Highly visual with lots of pictures of body shops and non-body shops. This is the most important LEAN auto body course. Chris Ortiz, President Kaizen Assembly, LLC, can be contacted at 360-715-2129 or 360-224-9245 or chrisortiz@kaizenassembly.com. Visit www.kaizenassembly.com. Bob Cooper will speak on October 10 from 1:30 PM–4:30 PM on THE BEST PAY PROGRAMS ON EARTH!™. Bob Cooper is an expert on keeping employees producing at peak performance. Cooper’s company works with successful shop owners and dealerships around the world. He will share some of their best-kept secrets when it comes to compensation programs. Cooper will also speak on October 12 from 7:30 AM – 10:30 AM on STOP DREAMING & START ACHIEVING™. Cooper will share the leadership skills he’s learned from the most successful clients, and then
used throughout his own career. Starting off as a technician, Cooper has grown a company that now spans the globe. Nowdays he speaks to many Fortune 500 companies, universities, and to the United States Army. Cooper is the founder and president of Elite; a worldwide company that helps auto shop owners build more profitable, successful businesses. Cooper was one of the first to predict automobile leasing, the trend toward maintenance, the growth in remanufactured components and the resurgence in dealerships targeting the service business. He also created a website to provide affordable downloadable business building solutions in both English and Spanish. To learn more about Bob and Elite, visit their website at www.EliteWorldwide Store.com or call (800) 204-3548. For additional event information, contact Hanley Wood Exhibitions at P.O. Box 612128, Dallas, Texas 75261-2128 or call 888.529.1641 or 972.536.6444. NACE and CARS run from Oct. 10–13. For more information about NACE and CARS go to nacexpo.com and carsevent.com.
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 13
Marchionne Targets Chrysler IPO in Q2 of 2011
Chrysler Group LLC will probably hold an initial public offering in the second half of 2011 as investors approved Fiat SpA’s plan to spin off its industrial business September 16 according to reports made by Bloomberg News. “I don’t think it’s the first part; I think it’s a second part of the year event,” Sergio Marchionne, chief executive officer of both carmakers, told reporters in Turin today when asked when in 2011 a Chrysler share sale would take place. Fiat, which acquired a 20 percent stake in Chrysler in June last year, September 16 announced the approval by shareholders to separate CNH Global NV, Iveco and some industrial and marine operations into a new company called Fiat Industrial SpA, leaving Fiat Auto and luxury brands Ferrari and Maserati in the new Fiat SpA. The separation would allow Marchionne, 58, to focus on carmaking and would give Fiat an entity to facilitate future alliances. The spinoff, the most sweeping corporate reorganization in Fiat’s 111year history, will resolve an issue that’s been a “thorn in the side” for
Italy’s largest carmaker, Marchionne told shareholders today. Fiat Industrial, which will start trading in Milan next January, may be valued at 8.38 euros a share, according to the average projection of five analysts surveyed by Bloomberg News. That’s 49 percent more than the 5.64 euro value estimated by the analysts for the new Fiat SpA, which will include auto-making operations and the Ferrari and Maserati luxury brands. “Fiat Industrial is undervalued by investors and will benefit from a recovery of the capital goods market,” said Gabriele Gambarova of Banca Akros SpA, who is ranked No. 1 among Fiat analysts tracked by Bloomberg and based on relative returns of the stocks they covered in the past year. “Investors will be more cautious on Fiat auto, which will have to invest to complete its commercial offer.” Before today, Fiat had risen 34 percent since the Chrysler deal and was down 1.6 percent since the spinoff announcement on April 21. Fiat auto may double its trading profit to 1.2 billion euros, according to the business plan presented in April.
Dollar Thrifty Group Raises 2010 Outlook
Car rental company Dollar Thrifty Automotive Group, Inc. raised August 31 its corporate adjusted EBITDA forecast for the full-year 2010, citing strong operating performance in the months of July and August, and the continuing projections of lower fleet costs. The company also provided an update on fiscal 2011 outlook. The Tulsa, Oklahoma-based company raised its fiscal 2010 forecast for corporate adjusted EBITDA, excluding merger-related expenses, to a range of $240 million to $260 million from the prior guidance in the range of $200 million to $220 million. The company had earlier raised it guidance in early July. Dollar Thrifty attributed the increase to projected lower fleet costs, and the continued strength in operations and ongoing cost control efforts at the company. The company also noted that it continues to expect vehicle rental revenue for the full year of 2010 to increase 1% to 2% from last year. Meanwhile, the company lowered its expected fleet cost target to a range of $230 to $240 per unit per month from the prior forecast of $245 to $255 per unit per month. Meanwhile, the company also lowered its estimate for vehicle de-
preciation per unit per month to a range of $270 to $290 for the third and fourth quarters of 2010 from $300 to $310 per unit per month, citing continued strength in residual values and favorable trends in vehicle disposition results. For fiscal 2011, Dollar Thrifty reaffirmed its previously announced fleet cost estimate of $300 to $310 per unit per month. The is expected to lead to corporate adjusted EBITDA for the full-year 2011 to range between $186 million and $198 million. The company added that it expects the used car market in 2011 to be based on solid fundamentals, though less robust than now, as demand for used cars is expected to be firm, while supply is expected to be somewhat constrained. Car rental companies are slowly recovering from the recession, which battered demand from business and leisure customers, after having struggled in recent years due to reduced travel budgets, falling used-car prices and large debt loads. DTG closed Tuesday’s regular trading session at $47.04, down $0.69 or 1.45% on a volume of 1.18 million shares, higher than the three-month average volume of 0.89 million shares.
14 OCTOBER 2010 AUTOBODY NEWS | www.autobodynews.com
Ameriprise Fined $71K For Discount DRP Incentives
The Colorado Division of Insurance (CDI) has levied a fine of $71,100 against Ameriprise Auto & Home Insurance Co. for steering by offering discounts on deductibles for utilizing direct-repair program (DRP) auto repair shops, according to a report from the CDI. According to the report, Ameriprise offered an incentive program between September 2006 and January 2010 in which customers received a $100 discount off their collision deductibles for using one of the insurer’s DRP facilities. A total of 711 consumers participated in the program during that period, and Ameriprise’s $71,100 fine is comprised of $100 for every consumer that received the discount in return for using one of its shops. In addition, the company has been ordered to pay a 10 percent surcharge of $7,100 directly to the CDI. CDI initially received a complaint in January 2010 from an Ameriprise customer who said that he/she was offered the $100 discount for selecting a repair facility on the insurer’s DirectRepair Program (DRP), and an investigation was launched shortly after, according to the final order. “The Division alleges that … the deductible reduction is considered an
inducement by incentive to utilize a repair facility participating in the DRP,” writes CDI in its official report. In addition to the fine, Ameriprise was ordered to cease use of the incentive immediately, and the fine is due within 30 days. “While the repair shops contracted with Ameriprise may have done good work, the anti-steering law ensures that consumers, not insurance carriers, are in the driver’s seat to decide where they want repairs done,” says Marcy Morrison, Colorado insurance commissioner.
ASRW Says 2011 Event Will Remain in October
Automotive Service and Repair Week (ASRW) announced its 2011 event will be held Monday, Oct. 17- Weds., Oct. 19, 2011, at the Mandalay Bay Convention Center in Las Vegas, NV. The 2011 ASRW education program will begin on Sunday, October 16. “In a year filled with changes in the automotive industry, we feel it’s important everyone knows ASRW, NACE and CARS are here to stay,” states Ron Pyle, ASA president, adding “we feel this event deserves its own week.”
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Mobile Airbag Company Relies on Autoland Scanners Autobody News
by Ed Attanasio
An essential piece of equipment can make or break any company. If a body shop has problems with a lift or a
October 2010
works for require either troubleshooting or diagnostics to re-set airbag lights before they can complete the repair and return the vehicle to the customer, he said. Car dealers and in-
Rod Salas relies on his iSCAN II to run Airbag Tech, his LA County-based mobile airbag repair and service company
paint gun, it can slow down their production significantly. That’s why Rod Salas, owner of an airbag mobile service company in Southern California, knows that his scanners have to work on every service call or he’ll lose time and of course, money. That’s also why he said he’s happy to use scanners made by Autoland Scientech, a worldwide leader in diagnostic tools since 1990. Salas, 46, has been working in the airbag industry since 2000, and in 2003 he started Airbag Tech in Downey, CA, servicing all of Los Angeles County. It’s a small company with two vans and several on-call part-time employees, including his son Rod Jr., 20, but the company is busy even in a recession, he told Autobody News. Half of Airbag Tech’s clients are collision repair companies and most of the time the body shops Salas
dividuals who find him on the Internet make up the remainder of his business, Salas said. In the beginning, body shops in L.A. weren’t getting involved with installing airbag systems, Salas said. “They would call me and say can we do an installation or come in to see what this vehicle needs. We would give them a list and they would buy the parts, so they could make some money. And then we’d come back and do the work. Now, to make more money, body shops are doing their own installations themselves, but sometimes they make mistakes. That’s when they call me and I’ll either service the airbag, perform troubleshooting and/or do the diagnostics to find the problem and clear the light.” It’s always about the light, Salas explained.” 99% of the time the light is on and they don’t know why. Most
of the time it’s the last thing they’ve done and they’re in a rush to get the vehicle ready for the customer. So, I get down there as fast as possible, half-hour to 45 minutes most of the time, to check those codes and do whatever I need to do to get the job done. That’s why I have the Autoland scanners, because they work well for almost all of the cars we encounter.” Salas was initially introduced to Autoland’s scanners a decade ago, he said. “When I started working for an airbag company ten years ago, I began to use one of Autoland’s scanners and I learned how to use it very quickly. The technology was a lot different back then and it was a little black scanner that would just read the codes. We had to look up the codes and figure out what the problem was. “So, when I started my own business, I invested in all Autoland scanners,” Salas said “First I had the iSCAN and then later I got the iSCAN II. Ease-of-use and great cov-
they’re only for backup purposes. I use the iSCAN II for pretty much all the cars I diagnose. When it comes to Honda, Mercedes-Benz, Audi, Volvo and BMW, the iSCAN II is the only one I will bring with me to the customer’s shop.” Was his investment in his Autoland scanners a good one, we asked Salas. “They’ve paid for themselves many times over by now, definitely. It cost us roughly $6,000 for the iSCAN and the package that comes with it, but it also includes a great warranty and software updates as long as we have the device.” Salas is obviously enamored with his iSCAN scanner, a tool that he can use to make money on a daily basis, but he also values the thorough support that Autoland offers him, so that he can make sure his device will work well even under heavy usage, he said. “They can train you how to use these scanners over the phone. One of my part-time guys learned how to operate the scanners in less than one
The software associated with Autoland Scientech’s iSCANII system supports 40 automotive manufacturers
erage—those are probably the best things about these scanners. I have some other companies’ scanners, but
day. It was a very simple step-bystep process and they make it very easy to understand. Also, I can get
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 15
my iSCAN II updates downloaded directly over the phone every 3-4 months free for three years. The support offered by Autoland is very good and we’re never worried about getting stuck out in the field without one. Richard Zenteno, the Marketing Director for the Americas for Autoland Scientech U.S.A., said he has recently seen a movement throughout the country in which body shops are using companies such as Airbag Tech to clearing codes and servicing their airbags. And many shops are also buying Autoland scanners themselves to do all their diagnostics in-house, he said, to retain more control of the repair and capture more revenue in the process. Autoland Scientech was founded 20 years ago, developing engine analyzers initially, Zenteno said. “We’ve been doing something right in this business for two decades to be around this long. We’re leaders in this area and our excellent reputation is the result of hard work.” Zenteno has seen body shops thrive in the world of diagnostics by embracing his company’s line of scan-
ners, he said. “The iSCAN II is a multi make scan tool that offers comprehensive coverage ranging from engine, transmission, ABS and most importantly airbags. In the body shop, it is essential to have a low cycle time and this tool helps lower the cycle time plus keep the profits in house. With our tool you’ll be able to read the current fault codes on many systems allowing you to quickly understand the problems the vehicle.” Autoland’s scanners are designed for ease-of-use and to be easily understood, Zenteno said. “The iSCAN II is a very intuitive scan tool that is fast and easy to learn. We have online step-by-step instructions to perform certain procedures and various visual guides to enable the customer to quickly get up to speed with how to connect. I believe this is one of the most feared obstacles to overcome however scanning and erasing a vehicle is very easy. You simply must connect to the vehicle, select the make and model and the system that you want to diagnose the select the function like reading or clearing codes and you are on to the next vehicle. This can be done in
16 OCTOBER 2010 AUTOBODY NEWS | www.autobodynews.com
less than five minutes and you can charge one hour for diagnosis and save the time to send two people to the dealer and wait for the vehicle to be ready.” Buy a iSCAN II and you can forget about your scanners for a long time, Zenteno said. “Autoland designs products that are very durable and most of our customers have had our tools for 10-15 years. When you invest in a machine of any type in a body shop, you don’t want to have to questions as to whether it will perform each time you use it and that’s why we’ve built these scanners to hold up in any environment.” By using Autoland scanners, can body shops build their business and improve their reputation for doing everything in-house, including diagnostics? “Like I mentioned before, cycle times is a critical compo-
nent of the operation if you want to keep a good a stable relationship with the insurance carriers,” Zenteno said. “The other critical component for the business is profitability. With our scanning equipment you are attacking both subjects simultaneously.” Does Salas think he’ll be using the Autoland scanners in 10-15 years? “The technology will change, but diagnostics and airbags will be around for a long time,” he said. “I am sold on the quality, support and coverage of my ISCAN II, so I will be using these products as long as I can. Autoland Scientech USA 1001 Cypress Creek Rd. Ste 101 Cedar Park TX 78613 (512) 336-5152 www.autolandscientechusa.com www.autotechforum.net
Give us your opinion on matters affecting the industry.
write us! publisher@autobodynews.com
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com
Even in a Big City It Can Still Be A Small World with Gonzo Weaver
I’ve been in private business long enough to gain quite a following from all over the city and surrounding areas. Most of it good, I hope… and then there are some of my customers that once they get to know me they’ll bring just about anything into the shop for me to repair. Just the other day I had one of my regulars bring in a huge lawnmower for me to look at. It has a Caterpillar diesel engine on this huge grass cutting machine the likes of which I’ve never seen before. But as with anything mechanical/electrical if given the right tools and the proper information I’ll take on the challenge. It wouldn’t start; the first thing I could tell about it was the starter bendix was out of it. It would hit the flywheel spin a quarter turn and then nothing. The bendix would stay engaged and the starter motor was spinning like mad but the bendix never moved. Each time I would turn the key the same thing would happen. The engine would spin just a bit and then the bendix would just stop turning. I took the starter off and gave him a call. Since his place of business was just around the corner it didn’t take him long to show up. “I’ll go get it rebuilt,” he said, as he grabbed the starter and headed out the door.
A few hours later he was back, but the starter wasn’t repaired. He had taken it to two different starter overhaul shops and both said it was Ok… I thought that was a little strange… this thing was in dire need of a bendix. I muscled the engine over with a pry bar just to make sure there was no issues there, it was fine. I was very certain the bendix was at fault, there was no mistake about it. But, if the overhaul repair shops have as good a reputation for their work as I have, I’ll have to take another look at this whole thing and be sure I’m not diagnosing it wrong. I stuck the starter back on and as I expected the same thing was happening to the starter. I decided to skip this little problem and try to determine if anything else was wrong… because according to the owner the starter probably wasn’t the only problem wrong with it. He had already tried a new ignition switch but when that didn’t do the trick he brought it to me. After checking the wiring diagram it was clear that one wire was on the wrong post on the replacement ignition switch. I asked the owner if he made sure he put the wires back correctly when he changed the switch, he not only was extremely sure that he had them in the same place, he also took a photo of the old switch wiring
so that there was no mistake about where each of the wires went. With that information it had to mean only one thing… the ignition switch had to have been wired wrong from either a previous repair attempt or from the factory. Because, the way it was hooked up the starter solenoid was engaged the whole time the engine was running. I went ahead and moved the wires to the right spots and gave it one more try. When, I could get the starter to stay engaged long enough to spin the engine, there still wasn’t any voltage at the fuel cutoff solenoid. Something else had to be wrong with it. Time to consult the wiring diagrams again. Now it was only a matter of following the road map of a wires and trace out how all the individual safety cutoff switches played a part in the starting and running of this beast. Sure enough, one of the fail safe switches was faulty. It should start now, that is, if you could get the crazy starter to engage long enough to throw the engine over top dead and create enough compression to keep itself going. It took several attempts of flicking the key on and off to get it to happen but it did finally start. Once it started I knew why no one noticed the starter bendix was still stuck out against the flywheel… you couldn’t hear a thing
dicted that within the next 10 years electric vehicles will have a range of 500 miles or more. He went on to explain that at the point the further development of fast charging infrastructure will be unnecessary as most drivers rarely drive more than 500 miles in a day. Volkswagen plans to sell 300,000 electric vehicles a year by 2018, which would translate to 3% of all sales. VW’s hybrid ambitions could lead it to overtake Toyota as the world’s largest automaker within eight years. Key details of Volkswagen’s strategy include introducing the company’s first hybrid electric vehicle the Toureg 2010, and in 2013 three EVs,
likely to be versions of the Jetta, Golf, and the Up. At ERL, Eberhard’s main focus is the development of the lithiumion battery packs for the Golf bluee-motion and E-Up all-electric vehicles—both of which are destined for trials and eventual sale in the U.S. The batteries being developed at ERL are the 18650-type lithium-ion cells commonly found in laptops and they will also be used for the more premium Audi e-tron electric vehicles as well. Eberhard explained that the common 18650-type battery is at the forefront of electrical storage technology. There’s also a cost factor; the
with this huge motor blaring away (ear protection is in order) Now, the owner only had one more task to do. Take the starter back one more time to the rebuild shop and get a new bendix installed. I offered to install a new bendix for him, but he insisted on going back to the overhaul shop and tell them about it. He said there was something about “putting a board in the bendix” which seemed to be the way both places checked to see if the bendix was any good. I’ll bet it would hold a board… but I don’t think a little old piece of wood jammed into the starter nose cone was any match for this big diesel motor. I just hope my reputation has gotten to that end of the city, because he planned on telling them who said the bendix was bad. Even though the starter overhaul shop was convinced it wasn’t the bendix… he was going to insist on having one replaced. A day later he had a new bendix and the big old grass munching beast was as good as new. Sometimes, all it takes is experience and a reputation to get your point across. Just make sure you can back it up with clear evidence and good diagnostic skills. It’s an excellent way of gaining a good reputation, even in the big city or the small world we live in…
Volkswagen Predicts EV Success, 500 Mile Range By 2020
Volkswagen is intent on becoming the world’s leading automaker by 2018 and that means being the top dog in every segment, including hybrid and electric vehicles according to reports made by Autocar and the Huffington Post. In fact, the automaker is so serious about its electric car efforts that it recently announced plans to start building its own electric powertrains, and enlisted the help of Tesla co-founder Martin Eberhard. Eberhard is the electric vehicle engineering director at Volkswagen’s Electronics Research Laboratory (ERL) in Palo Alto, California, and speaking recently with Autocar he pre-
18650-type battery, for example, costs about half of that used by the Nissan Leaf. Incidentally, in addition to electric drive systems, the engineers at ERL are also working on new driver assistance systems and human-machine interface technologies, as well as improving the multimedia functionality and connectivity for the different Volkswagen Group brands. Some of its latest developments, for example, are the autonomous Audis that competed in the DARPA Challenge as well as the Google Earth functionality for the sat-nav systems featured in the new Audi A8 and A7 models.
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 17
Action Counts
Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta, California. Lee is president of the CRA as well as an advocate for many other industry groups. He can be contacted at lee@faithqualityautobody.com
with Lee Amaradio Jr.
Aftermarket Parts: Are they the Same? Are they Safe? Is there a Problem? What gives me the right to comment on any of the above issues and why would I want to bite the hand that feeds me? If there were no problems with aftermarket crash parts why would I even care? I am in business to make money, and to stay in business I need to treat my customers fairly and honestly. Part of being in business responsibly is serving my customers by giving them good and honest value for their money. If there were no problem with these parts I would embrace them and present them to my customers as an added value. I would be an advocate, not a critic, of the aftermarket part. Some readers have wondered why I am able to speak out as I do on the industry with boldness and confidence. Because I know that I speak the truth and its hard to argue with that. I am concerned with the diminished value of my customer’s vehicles and I am compelled to speak out. I
have ten years of documented proof along with photos and invoices to prove that what I am saying is true. Aftermarket crash parts are NOT the same as OEM unless they are made on the same assembly line to the same exacting standards. Recently (last week) I had a 2010 Toyota Tacoma come in for a repair. The estimate listed all A/M parts, even for the front impact bar. This customer did not even know that there was an A/M parts clause in his policy. The difference out of his pocket was $400 plus a deductible. He contacted his insurance company, but to no avail. He was told, in effect, “too bad.” This is the type of policy you bought—but they will guarantee the parts specified as long as he owns his vehicle. He asked us if the parts were the same and we had to tell the truth. We told him ‘no, they were not the same.’ If we answered any other way then we
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would be liable because the Toyota dealer will depreciate this 2010 Tacoma upon trade in. I have a big problem with this deceit when I am the one expected to do the deceiving. There is a big difference between allowing a well-informed discerning customer to make this decision and one who is not informed, but the former is almost never the case. Normally I am expected to be the one to convince my customer that these parts will make their car as good as new. The problem is that it’s just not true. It’s a problem for me when the customer is trusting me and my name and reputation is going on the repair. Do you really think I will keep this Toyota Tacoma owner as a customer if he realizes one day that I lied to him? What about when trade-in time comes, and he and his wife go to the dealer to pick out their new car and find out that their 2010 Tacoma can’t be traded in
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without a substantial loss? I wonder if he would blame his insurance policy, or care about the guarantee of these parts then, or would he just be upset with me, the guy who put the parts on his truck? The problem with aftermarket parts is more in the deceit that must accompany them rather than with the part itself. Because NO ONE, and I mean NO ONE, would choose these over OEM parts if cost were not a factor. The problem is that the use of these parts have far have superseded proper business ethics and the manufacturers want the collision industry to become a party to what are deceitful marketing and sales tactics. Safety is the issue, but many in the aftermarket crash part industry are bold enough to say this is all fabricated and blown out of proportion. I have been around long enough to say that collision repairs are really not investigated,
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TX-Based Service King Plans National Expansion Dallas-based Service King plans to embark on an ambitious national expansion led by new president Cathy Bonner that could double revenue over the next five years according to reports in the Dallas Morning News. The chain of collision-repair centers, founded in 1976 by company chairman Eddie Lennox, recently opened seven shops in Houston and the success of those centers—some were profitable after three months— prompted Lennox to consider the leap outside Texas. Most of Service King’s 31 shops and 1,000 employees are in the Dallas area. The privately held company, which says it has a 20 percent market share in the area, expects to repair about 70,000 vehicles and earn $150 million in revenue this year. “We were able to experiment with a lot of things in Houston that might work for us nationally,” said Lennox, 57, a former body-repair man who started Service King in a three-bay tin building in West Dallas. Bonner, a Dallas native, has no experience with auto repair. But she served as executive director of the
Texas Department of Commerce from 1991 to 1994, founded The Women’s Museum in Dallas and has started and managed three marketing and communications firms. She also is Lennox’s sister-in-law so she knows the Service King culture, Lennox said. Bonner’s primary responsibility will be to develop a strategic plan for growth, determining which markets Service King should enter and overseeing that plan. “This relates to growth and getting someone who can help us achieve it — and not ex-technicians like myself,” Lennox said. He believes that planning for major growth requires knowledge that he and his managers don’t have. “Eddie approached me and convinced me I don’t need to know how to fix a car,” said Bonner, 60, a finalist in 2007 for The Dallas Morning News’ “Texan of theYear” award for her work to pass legislation creating the Cancer Prevention and Research Institute of Texas. “I just get to build on their success.” Bonner said she intends to have a growth strategy plan completed by the
Crown Automobile Company
so to say there is no safety issues at this point is risky foolishness not unlike marketing cigarette smoking. People were getting cancer from cigarettes years long before anyone was able to prove smoking was responsible. Either way, safety is not the only issue. There is substantial diminished value, and the parts are not the same, as many of our state laws require. When will the truth about these crash parts reach the public and when will the insurers properly inform their policyholders of the facts? When will use of these parts be banned from late model vehicles? Since when did fit and finish mean nothing in a collision repair? When will the major insurers realize that using aftermarket crash parts will eventually cost them their customers? Why is the collision industry still held liable for the repair when we really don’t control the decisions in the repair process? When will we quit being the advocates of deceit and tell the whole truth and nothing but the truth.
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first of the year. “I had a lot of experience identifying new markets and bringing in corporations when I was with the state,” said Bonner, who was part of a team of officials in the early 1990s that helped convince General Motors Corp. to not close its assembly plant in Arlington. Service King offers several programs that Lennox says are unique— including a computer program developed by vice president Jeff McFadden that allows insurers to monitor and audit the entire repair process. “We also have some operations programs that [vice president] Danny McKinley put into place that no one else does, and those products really made me more bullish on growth,” Lennox said. Despite its moves to get larger, Service King has no interest in going public, said Lennox, who holds 80 percent of Service King’s stock along with his wife. Managers throughout the company own the remaining 20 percent. “We’re well capitalized, and we have good banking relationships,” he said. “We envision doubling our revenue in three to five years.”
Continued from Page 18
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Highway Deaths Fall to Lowest Level Since 1950 Traffic deaths have plummeted across the United States to levels not seen in more than a half-century, spurred by technology, safety-conscious drivers and tougher enforcement of drunken driving laws according to reports made by the Associated Press. The Transportation Department said September 9 that traffic deaths fell 9.7 percent in 2009 to 33,808, the lowest number since 1950. In 2008, an estimated 37,423 people died on the highways. Government and auto safety experts attributed the improvement to more people buckling up, side air bags and anti-rollover technology in more vehicles and a focus in many states on curbing drinking and driving. Economic conditions were also a factor. Transportation Secretary Ray LaHood called the new data “a landmark achievement for public health and safety” but cautioned that too many people are killed on the road each year. “While we’ve come a long way,” he said, “we have a long distance yet to travel.”
Forty-one states, the District of Columbia and Puerto Rico saw reductions in highway fatalities, led by Florida with 422 fewer deaths and Texas, down 405. The rate of deaths per 100 million miles traveled also dropped to a record low. It fell to 1.13 deaths per 100 million miles in 2009, compared with 1.26 the year before. Year-to-year declines in highway deaths have occurred in previous economic downturns, when fewer people are out on the road. Traffic deaths decreased in the early 1980s and early 1990s when difficult economic conditions led many drivers to cut back on discretionary travel. Last year’s reduction in fatalities came even as the estimated number of miles traveled by motorists in 2009 increased 0.2 percent over 2008 levels. Barbara Harsha, executive director for the Governors Highway Safety Association, said the new data was “particularly encouraging given that estimated vehicle miles traveled actually increased slightly in 2009,
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thus exposing the public to greater risk on our roadways.” LaHood said the weak economy was a contributing factor as many Americans chose not to go out to bars and restaurants after work or on the weekend. But he said many motorists are more safety conscious behind the wheel. About 85 percent of Americans wear seat belts while benefiting from safety advances found in today’s cars and trucks. Side air bags that protect the head and midsection are becoming standard equipment on many new vehicles. Electronic stability control, which helps motorists avoid rollover crashes, is more common on new cars and trucks, while some luxury models have lane departure warnings and other safety features. Dave McCurdy, president and CEO of the Alliance of Automobile Manufacturers, which represents General Motors, Toyota, Ford and others, said the improvements were “the payoff from years of manufacturer-driven safety improvements,
like antilock brakes and electronic stability control systems” along with efforts by law enforcement to keep the roads safe. LaHood, a former Illinois congressman, has also sought to crack down on distracted driving, urging states to adopt stringent laws against sending text messages from behind the wheel, as well as other distractions. The annual highway safety report also found: ● Motorcycle fatalities broke a string of 11 years of annual increases, falling by 16 percent, from 5,312 in 2008 to 4,462 in 2009. ● The number of people injured in motor vehicle crashes fell for a 10th consecutive year. An estimated 2.2 million people were injured in 2009, a 5.5 percent decline from 2.3 million in 2008. ● Alcohol-impaired driving deaths declined 7.4 percent in 2009 to 10,839 deaths, compared with 11,711 in 2008. Alcohol-impaired fatalities fell in 33 states and Puerto Rico.
CIC Discussions: Repair Standards and Ford Compares OEM to Non-OEM Parts by John Yoswick Special to Autobody News
Let’s say the industry developed a formal set of “repair standards” for collision repair. What then? This was the question a Collision Industry Conference (CIC) committee introduced at CIC’s meeting in Chicago in July. Jeff Patti, chairman of the Industry Standards Committee, said his committee felt that, in addition to working on the proposed set of standards, it should also begin the process of considering what might be the next step. He outlined the proposed creation of a non-profit organization that would oversee the final development and implementation of the standards. Although designed primarily to prompt discussion of the topic, Patti’s proposal included details down to the level of potential costs for launching such an organization and possible fees for those wishing to participate. Such an organization, Patti said, would be limited to one focus: the de-
velopment and implementation of the standards. It would work to gain consensus from “all stakeholders in the industry” for the standards, he said, thus following the guidelines established by the American National Standards Institute (ANSI), the body that essentially sets standards for ‘standards development.’ “Its mission would be to establish and manage collision repair standards developed by collision industry stakeholders,” Patti said. “That’s everybody in this room. Everyone will have a say in what goes on. This won’t be limited to any one particular segment.” As hoped, the proposal did prompt discussion at CIC. Scott Biggs, of Assured Performance Network, said he felt that rather than create another industry organization that would need to build awareness, creditability and funding, the standards could instead be overseen by an existing industry organization such as ICAR.
Others questioned the need for involvement of anyone other than collision repairers in creating repair standards. “It’s ultimately the repairer who would abide by the standards,” Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), said. “When you have ‘stakeholders,’ there are special interests involved. There are lots of organizations out there that are directed for consumer protection that are easily swayed and don’t necessarily protect the consumer. There’s a lot of skepticism out there about abiding by repair standards that are developed by other entities with vested interest in how they want us to act.” CIC administrator Jeff Hendler agreed. “Developing standards for the collision repair industry does not need to involve insurers, database providers or anybody else but those people touching that car,” Hendler said. “The body shop person already is standing side by side with an insurer who is saying, ‘Yeah, I know that’s the right
way to repair the car, but we won’t pay for it.’ That’s BS.” Patti and others said that part of what ANSI requires in the development of standards is consensus of all affected stakeholders. Part of why the standards should be overseen by an independent sole-focus organization, he said, is to avoid influence by special interests. “This has to be a consumer driven organization,” he said. “We have to look out for our mutual customer.” Schulenburg also questioned how effective the industry would be at trying to implement “voluntary” standards. “Things that are voluntary tend not to be followed, and those that do follow them in our industry often see no benefit for doing so,” he said. “We’re often held to the lowest common denominator.” The discussion of the issue will continue at a meeting scheduled for Las Vegas on November 4, the day following the next regular CIC meeting. See CIC Discussions, Page 23
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 21
Hey Toby!
Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
Attending the Porsche Collision Certification Program with Toby Chess
Hey Toby—We are repairing at 2007 Porsche Cayman and the insurance company wants us to recon the wheel. Do you know if Porsche has a position statement on reconditioned wheels? —Mick from Marina Del Rey.
Hey Mick—I did not know the answer when you e-mailed me, so I called Mike Kukavica from Porsche Cars of North America (PCNA), and he said that Porsche only allows refinishing of their wheels, but nothing else. He invited me to attend the introductory course for Porsche collision certification program, which I accepted. After attending the week long program, there are a couple of other items that you need to know about replacing wheels and tires on Porsches.
is equipped with the TPM System, then a special valve system must be used. Next the group looked at the rear spoiler on the Boxter and Cayman models.
First, all production tires need to be passed by Porsche’s engineering department for handling, hydroplaning and high speed durability requirements. Only after passing the test, the specific tire will get an “N” designation. You can purchase a Michelin Pilot Sport with and without the “N” designation. You may have to purchase another tire if there is more 30 percent difference in the wear. Porsche states that mixing tires is not permissible and will affect vehicle performance, safety and can affect the vehicle’s warranty. Another item that you need to be aware of is the Tire Pressure Monitoring System, which was available since the end of 2005. The system continuously monitors the air pressure on all 4 tires. When you change a wheel, the system needs to recalibrate itself which is done by test driving the vehicle and checking the display unit for proper function. Finally, Porsche wants new valve stems when replacing a wheel. If the vehicle
had to remove the rear spoiler from a new Turbo. Mike Kukavica demonstrated the operation and explained the correct removal of the rear spoiler (Fig 6). Porsche has a special tool the fits in to inner and outer mounting rings.
Figure 2
Figure 7
Figure 3
Figure 1
4). There is no adjustment for the part, so how does tech know the proper angle of the hole before securing the rear body panel. Porsche has a special jig that aligns the part in its proper position (Fig 5). The jig secures the rear body panel with eight different location bolts and pins. After the jig and part has been installed, the part is tack welded before the final welding operation. Speaking of spoilers, the group
Figure 3 shows the rear body panel of a Cayman set in place. The position and angle of the rear body panel is critical to the correct operation of the rear spoiler. Without the knowledge
Figure 4
and angle setting tool, the rear body panel can be placed in a position that the spoiler will not operate correctly. The hole is used to secure the hydraulic piston for the rear spoiler (Fig
Figure 5
22 OCTOBER 2010 AUTOBODY NEWS | www.autobodynews.com
Figure 6
Sean Vlaszof of DC Autocraft in Burbank, CA, reinstalling the rear spoiler on the Turbo (Fig 7). One afternoon session was the reSee Hey Toby!, Page 24
Paul Massie, powertrain and collision product marketing manager for Ford, said he believes that Ford’s analysis of the parts shows they are not of equivalent “like kind and quality,” a requirement for replacement parts in 20 states. But Massie said that perhaps more important than comparison and testing of individual parts is to determine how they impact the overall response of the vehicle in a collision. Non-OEM bumper parts that are thicker or heavier than Ford parts, for example, Massie said, could affect that response just as much as those that are lighter and thinner. That’s why Ford engineers also conducted simulated computer modeling of the non-OEM parts’ response in a crash, again finding significant differences to the Ford parts. “The use of these tested aftermarket copy parts will change the dynamics of the crash process resulting in a differing response from the vehicle safety systems than those calibrated by Ford Motor Company,” the company concluded based on its research.
Continued from Page 21
CIC Discussions
Ford Compares non-OEM parts Also at CIC in Chicago, Ford Motor Company announced the findings of its comparison of some Ford service parts to corresponding non-OEM replacement bumper beams, bumper brackets, and radiator core supports, Ford cited some critical differences. Spot welds on some of the non-OEM parts did not meet Ford specifications, for example, and the type of material (as well as its thickness and weight) often differed from the OEM part. The non-OEM radiator core support for the 2004-07 F-150, for example, was made out of plastic rather than magnesium and steel like the OEM service part. A non-OEM replacement for the 2005-09 Ford Mustang’s single-piece ultra-highstrength steel bumper beams was found to be made of two mild-steel pieces welded together. A non-OEM bumper bracket for the 2006–08 Ford F-150 were half as thick and weighed less than half what the OEM parts weigh.
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Massie said he hopes Ford will do some actual crash testing of the parts, but recognizes there is ample competition within the company for the research time and funds that would require.
Other news at CIC In other news and discussion at CIC in Chicago: ● A CIC subcommittee shared a document outlining proposed standards for the digital images of damaged vehicles that insurers require. The goal of the standards is to help reduce some of the variation in insurer requirements, subcommittee chairman Randy Hanson said, although as with all standards, it won’t eliminate some individual circumstances under which an insurer may require additional digital images. “But for the everyday claim, 80 percent of them that you deal with every day, we think there’s a great case for standards,” Hanson said. An outline of the proposed standard is available under the “Repairer-Insurer Relations Task Force” section of the CIC website (www.ciclink.com). ● State Farm explained that “Select Service” shops will now receive a
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3-digit number—similar to a credit score—from the insurer based on its measurement of the shop’s performance. The number, on a scale of 1 to 1,000, will be updated monthly and is established using a proprietary formula that takes into account the key performance indicators (KPIs) State Farm uses to track each shop’s performance. The report also indicates how the shop’s number compares with other shops in the program (even taking into account, State Farm’s George Avery said, such things as differences in the types of vehicles repaired), and lists three areas that the shop could focus on to improve its score. ● Mike Quinn, co-owner of Arizona-based 911 Collision Centers, was named as the next chairman of the conference. Quinn has been a long-time participant at CIC as well as in the National Auto Body Council (NABC). His company operates seven shops in Arizona and Nevada. He will succeed Russell Thrall who completes his second year as chairman at the last CIC meeting of the year on November 3 in Las Vegas.
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tionary about safety, I had the guys remove their safety glasses for the shot. Porsche policy is to wear safety glasses when working on their vehicles.)
Continued from Page 22
Hey Toby!
The windshield was test-fitted and it’s location marked prior to the final installation.
Porsche procedure is to weld bond the two sections together. A specific structural adhesive is spelled out in the repair manual.
Figure 12
mends weld-thru primer to all bare metal mating surfaces that are to be welded (except when weld bonding). MIG spot welds are made through a 7mm diameter hole.
Figure 8
moval and installation of the front windshield.
Figure 9
Scott Cramer-Bornemann of DC Autocraft repositioning the removal tool. (Before anyone emails me a cau-
Figure 10
Porsche sells its own windshield adhesive kit. One last item on the windshield. Part of the Porsche certification program is to have a tool to set the proper angle of the wiper blades (Fig 11). Improper blade angle will cause the wiper blades to chatter. Another whole afternoon was devoted to structural repairs. The group assembled a front lower frame rail. Two complete rails were used.
Shift into Genuine Nissan and Infiniti OEM Parts
Figure 11
George Pedroza from Estorgas Collision Center, Long Beach, CA is applying the specified Porsche adhesive to the inner mating surface of the frame rail (Fig 12). Prior to the installation of the adhesive, a special adhesion promoter is applied to the bare metal surface. Porsche also recom-
Figure 13
Agasee Bagoumyan from DC Autocraft welded the frame rail utilizing a Porsche approved resistance spot welder (Fig 13). Porsche recommends Genuine Mazda parts are specifically designed, engineered and tested for Mazda vehicles. Customers and repair professionals prefer the quality and satisfaction that only comes from genuine Mazda parts.
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only an open butt joint (no butt weld with backers). Porsche also wants epoxy primer applied to all bare metal surfaces. Furthermore, all sealant must be applied over primed surfaces. In other words, no direct to bare metal sealants. Finally, when installing an outer panel over 2 interior panels (quarter panel, for example) that have been weld bonded, Porsche recommends spot welding over existing spots welds. Porsche does not want welding through cured adhesive.
entirety. Rivet bonding is also permitted as outlined in the repair manuals.
Stephen Hurt from Park Place Bodywerks, Dallas Texas, removing the driver’s side trim panel on the 2011 Panamera (Fig 15). There are four aluminum bolts the secure the cassette. These bolts need to be replaced and torqued to 10 Newton meters. The side air bag sensor is located in the door trim panel. It is a pressure sensitive sensor (Fig 17). It is imperative that the cassette is totally sealed. The pressure builds between the outer shell and trim panel on a side impact, which sets off the side air bags.
Figure 20
Figure 15
Another afternoon was devoted to the Panamera. The group had to remove the inner door cassette. Figure 14
Note the three weld bonded panels on the Cayman.
Some notes on Ultra High Strength Steels in Porsche vehicles. No straightening or reshaping UHSS parts. UHSS parts are replaced in their
Figure 17
Any air leaks will prevent the side air bags from working properly. Figure 16
Figure 18
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Sergio Barba from Estorgas Collision Center and Moses Mora from European Auto Body, Escondido, CA, holding the passenger’s side door cassette (Fig 18). The group removed door handles that required special tools and techniques from Cayman, Cayenne and Panamera. The group removed the front and rear bumpers from a new Cayenne and Panamera.
Figure 21
Stephen Hurt reinstalling the front bumper on the 2011 Panamera (Fig 21). The front bumper to hood is checked with a 1mm gauge. The front bumper is suppose to be flush with the hood, but 1 mm higher.
The graduating class of week of September 17th. Front row (l to r) Agasse Bayoumyan, Ricardo Sandoval and George Pedroza. Second Row: Moses Mora, Sean Vlaszof, Scott Cramer-Bornemann, Stephen Hurt, Sergio Barba and Mike Kukavica
The week-long class looked at the entire Porsche Automobile line. The front rails on the Panamera are aluminum and the replacement requires special tools, materials and techniques. This will be the next class for the techs.
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Figure 19
(Ed—We’re not sure, but we don’t believe the author drove away in this car.)
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 25
Industry Insight
John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
Automaker Announcements Carry Implications For Repairers with John Yoswick
A number of automakers in recent weeks have issued bulletins, launched programs or made announcements that could impact collision repairers —whether at dealerships or independent shops. Here’s a wrap-up of this recent news from the OEMs.
Mercedes The slight rebound in vehicle leasing in the last few years is seen as good news for collision repairers because consumers tend to have damage on leased vehicles repaired. But Mercedes-Benz now offers a new lease protection product that waives up to $7,500 in wear-and-tear charges and up to $200 in missing parts on a vehicle being returned at the end of a lease. Unlike other lease protection plans, this waiver doesn’t require the consumer to wait to get reimbursed for the wear-and-tear charges they pay out of pocket. That’s likely to make the program more popular with dealers, who have found any money the customer has to pay out just decreases their down-payment on the next vehicle.
Volkswagen Volkswagen of America has launched a certified collision repair facility program for its dealers and independent body shops. The automaker says the national launch follows a pilot program with 15 shops. Certification under the program requires nomination by a dealer, specific technician training, use of VW-approved equipment, and an onsite inspection. Certified shops will be listed on VW’s website and will have access to vehicle-specific training on a dedicated program website. Volkswagen will also provide customers with free 24-hour towing of vehicles under warranty to its certified shops. Dealers can nominate a shop (or independent shops can request more information) by contacting Volkswagen at VWcollisionparts@VW.com. Ford Ford’s latest findings regarding nonOEM structural parts have been widely reported. But while non-OEM part advocates are quick to point out that Ford’s testing involved only
“computer-simulated” crash testing, Ford hasn’t ruled out doing some actual crash testing. In discussing such testing, Paul Massie, collision product marketing manager for Ford, said he recognizes there is ample competition within the company for the research time and funds that would require. “Our engineers, our resources, our safety department are all dedicated to building the next generation of Ford vehicles,” Massie said. “There aren’t extra resources to stop what they’re doing and look backwards, so [looking at it] shows you the importance of this issue.” Honda American Honda is urging collision repair shops to check for any applicable safety recalls when repairing a Honda or Acura vehicle. The automaker attempts to notify the current registered owner of any vehicle being recalled, but said not all owners receive such notices. Recall information from Honda is available by VIN at www.recalls.honda.com or www.recalls.acura. com. Recall information for all makes of vehicles also is available through the Big Three estimating systems or through the NHTSA (www-odi.nhtsa. gov/cars/problems/recalls/recallsearch.cfm).
Positions on Parts Honda, Hyundai, Toyota and Nissan are among the automakers to recently issue bulletins or position statements regarding the use of crash parts used in the repair of their vehicles. “Hyundai Motor America does not support the use of aftermarket, imitation or recycled collision repair parts,” the company’s statement reads. “The use of such parts or other nonoriginal Hyundai equipment for the repair of any collision-damaged vehicle may negatively affect crashworthiness and occupant safety during a collision therefore is not supported by Hyundai. Additionally, Hyundai does not support the use or re-use of components removed or recycled from an existing collision-damaged vehicle. Like the Hyundai statement, the Nissan memo to its dealership parts managers states warns that the parts of the vehicle are designed to work together as a system and integrating
26 OCTOBER 2010 AUTOBODY NEWS | www.autobodynews.com
non-OEM parts into these systems can change the crash performance in a future collision. Nissan said this is particularly true “with regard to safety and structural components. American Honda earlier this year issued a position statement, similar to one from Toyota late last year, that it does not support the use of non-OEM or used structural parts or supplemental restraint system parts in the repair of its vehicles. But in August, Honda also issued a bulletin more broadly cautioning against the use of “aftermarket, counterfeit or gray-market” parts in the repair of Honda or Acura vehicles. That prompted the Automotive Aftermarket Industry Association (AAIA) to complain to the Federal Trade Commission (FTC). The AAIA says Honda’s statements violate the Magnuson-Moss Warranty Act by saying failure to use Honda replacement
parts will cause consumers to lose warranty coverage on their vehicle. Honda’s position statements do not say the use of non-OEM or salvage parts void the vehicle’s warranty. They say Honda’s warranty does not cover any part not purchased from an authorized Honda dealer, and that Honda is not responsible for “any subsequent repair costs associated with vehicle or part failures caused by the use of parts other than Honda parts purchased from an authorized Honda dealer.” But Kathleen Schmatz of AAIA is asking the FTC to force Honda to retract the statements, saying they are using unsubstantiated warnings. “To our knowledge, Honda has provided no specific evidence to support their claim that there are problems with use of nonHonda aftermarket parts for their vehicles, or that use of such parts creates warranty-related issues for their customers,” Schmatz said. Original BMW Parts
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Hyundai AL Plant Gains Elantra Production
The 2011 Hyundai Elantra will join its larger sibling, the Sonata, in production at Hyundai Motor Manufacturing Alabama (HMMA) starting in late fall 2010. This change, along with the recent move of the Santa Fe to a production facility in Georgia, will further increase Hyundai’s overall U.S. production capacity, which was already producing over half of total U.S. sales volume. “Hyundai’s philosophy is to build our vehicles where we sell them, and with the addition of the Elantra to our U.S. production mix we now manufacture our three most popular models right here in the U.S.,” said John Krafcik, president and CEO, Hyundai Motor America. The all-new 2011 Elantra sedan will make its public debut at the Los Angeles Auto Show this November, while sales are scheduled to begin early next year. Sonata is the best-selling vehicle in Hyundai’s U.S. lineup, with sales of 128,484 though the end of August, a 50% increase over the same period last year. Elantra sales through the same period of 90,960 are up 21% over the same period last year. HMMA has consistently ranked as one of the highest quality plants in
Hyundai’s worldwide operations and is an outstanding example of Hyundai’s focused commitment to quality. This year Sonata was again ranked in the top-three in quality by the J.D. Power and Associates Initial Quality Study in the competitive midsize sedan category. The HMMAbuilt Sonata was also recently awarded Auto Pacific’s first-ever President’s Award in recognition of its record-setting consumer performance in 48 categories ranging from the basics of comfort and convenience, to performance and environmental friendliness. More than 1,200,000 vehicles have rolled off the HMMA assembly line since production began on May 20, 2005. “We’re thrilled to be adding another pillar of the Hyundai lineup to our production mix here at HMMA,” said Ashley Frye, director of production, HMMA. “We’ve been extremely proud to build both Sonata and Santa Fe on our assembly line, both of which have been hugely successful models for Hyundai in the U.S. and we hope to carry that momentum with us as we embark on the new 2011 Elantra.” Think About It
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Hyundai Shifts Santa Fe Production to GA Kia Motors Manufacturing Georgia is moving production of the 2011 Hyundai Sante Fe from its factory in Montgomery, Alabama to its West Point, Georgia, plant this fall, the company confirmed August 31, but it won’t be adding more jobs for now according to reports made by the Associated Press. The West Point facility has about 1,900 workers currently, up from about 1,200 when it opened last year. That will be enough to handle the second shift that is being added on Oct. 1 to accommodate Santa Fe production, a spokesman said. Kia did say, though, that West Point, which makes the Sorento, has enough production capacity (300,000 vehicles annually) to eventually employ up to 2,500 workers. That would allow for the prospect of additional vehicles being built there some day, and for more employment. Hyundai has built autos in Alabama where it also makes the Sonata sedan since 2005. Kia began production last October in West Point, about 80 miles from the Hyundai facility in Montgomery, just across the Georgia state line. Both Kia and Hyundai are owned by Kia Motors Corp. of South Korea.
Automotive industry consultants have speculated that Hyundai eventually would shift manufacturing of the Santa Fe to West Point because it is more efficient to produce sedans and SUVs separately. Kia-Hyundai has experienced considerable growth in the U.S. market with sales of the popular Santa Fe and the Sorento increasing. Both models are marketed as crossover SUVs that combine a carlike ride with the utility of a truck-based sport utility vehicle. In August, Kia Motors America announced record July sales of 35,419 units, a 20.7-percent increase from July 2009, with year-to-date sales up 16.3-percent. The 2011 Sorento was the brand’s best-selling vehicle for the seventh consecutive month. In a statement, Gov. Sonny Perdue said, “The seeds that were first planted on our initial trip to Korea in 2003 continue to bear new fruit today. Production of ... the Kia Sorento created thousands of jobs in West Georgia, and now the addition of the Hyundai Santa Fe will create additional jobs and investment.” For more information please visit www.hyundai.com.
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Industry Insight
John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
Access and Use of Shop Data Raise Privacy Concerns for the Industry with John Yoswick
all the ramifications of that,” Passwater Concerns about data privacy prompted said. the formation this spring at the ColliThe topic was also highlighted by sion Industry Conference (CIC) of a taskforce focused on the subject. At a panel during the CIC Insurer-ReEd Attanasio pairer Relations Committee, which CIC in Chicago inwith July, Tony Passwater, an industry discussed a “data rights” proposal crafted by another CIC committee. trainer and executive director of the That statement says no third-party should capture or use in any way data Indiana Auto Body Association, said produced by a shop—even if developed using or transmitted over a thirdthat the new taskparty’s software or network—without force that he chairs the specific authorization of the shop. has in recent weeks Tony Passwater been discussing The intended use of the data and who will have access to it must be clearly and finalizing its objectives. The primary issue, he said, is that stated, the proposal reads. as the industry’s information providers Aaron Schulenburg, executive move toward “cloud computing” sysdirector of the Society of Collision tems—in which a shop’s estimate and Repair Specialists (SCRS), said the even management system information problem isn’t that information providers don’t get shops’ permission is stored on the system provider’s computers rather than the shop’s— to aggregate and sell their data. It’s concerns are being raised about access more that shops aren’t given any choice but to sign away that right if to and use of the data. they want to use any of the Big Three “I don’t think the current data priestimating systems, he said. Granting vacy policies and terms-of-use address
Shop Showcase
What shops want from parts vendors A new survey found that when it comes to
But perhaps discouraging to OE Con-
parts suppliers, collision shops prize order
nection and InfoMedia was the fact that the
electronic parts ordering, and are not very
an average importance rating of 7.32, indi-
accuracy most, aren’t overly interested in
satisfied with the quality of remanufactured
or non-OEM parts.
The survey by phone and fax of 300
information provider because the subscription for that location was no longer maintained. Passwater said information providers argue that they should have some rights to estimate data prepared by users that are based on the information provider’s labor times and other data. But he compared it to buying lumber, saying that doesn’t allow you to own the land the wood was grown on nor give the lumber yard any right to the house you build with it. It’s my house. At some point in time, I should have the right to say what I do with my house,” Passwater said. Scott Biggs, of Assured Performance Network, said some shops might not be overly concerned about this issue but likely will be if down the road the information providers charge a shop for access to the shop’s own aggregated data that the shop currently has access to as part of its management software system fee.
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ability to order parts electronically received cating that 17 of the 21 other attributes were more important to shops.
Still, nearly 3 out of 5 shops respond-
shops was commissioned by the Collision
ing say they use one or both of the elec-
earlier this year. It asked shops to rate nearly
they don’t use them because they prefer the
Industry Conference (CIC) parts committee
permission for the shop data to be used should be an option for the shop, not a requirement, Schulenburg said. “We all need aggregated data,” Mike Lloyd of California Casualty said. “But as far as the individual repaier’s data, I believe that belongs to the shop. You should have that in the agreement with the vendor that Mike Lloyd you’re using. You should also have in the agreement that if you move to a different vendor, how do you get your data back so you can put it in your (new) system?” That’s an issue several people on the panel brought up. One panelist, for example, said he was aware of an multi-shop operator who closed one location and could not get the data created for that location back from the
tronic parts ordering systems. The rest said
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dicating a higher level of desirability.
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scale of 1 to 10, with the higher number inPerhaps not surprisingly, order accu-
racy, quality parts, competency and help-
fulness of the parts personnel, timely
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list of shop’s desires.
A large parts inventory – something
ing via phone or fax. Some non-users, howas the reason they don’t use the systems.
With regard to non-OEM parts, the sur-
vey found that over half of the shops said their vendor does not supply them with return-rate
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“7” or lower on a scale of 1 to 10.
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Remanufactured parts fared slightly
as an “8” or higher.
Complete findings of the study are
available on the CIC website at: www.CIClink.com.
28 OCTOBER 2010 AUTOBODY NEWS | www.autobodynews.com
M-F 7:30am - 5:30pm mhooks@crownautomobile.com mtramell@crownautomobile.com www.crownautomobile.com
Custom Corner
Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com
Finishing the Red Mist Car from the Movie Kick-Ass with Rich Evans
Soft-Sanders™ blocks. I conCustom Corner tinue to use the same blocks,
with my color sand system. I’m going to cut it down with 800, then cut with 1000 followed by 1200, then 1500, 2000, and finally 2500 sand paper. I come over it with the with Thomas Franklin 6 inch DA on the areas I can reach with 3000. That just makes my buffing system a lot easier. So after 3000 (with the help of the 3M five step sysThis column is part three, continued tem that they call Perfect Finish. The with2010 Thomas Franklin from our September issue titled 3000 grit sand paper is usually on a Building a numbered car exactly like hook back, so I’m using a foam disk the Red Mist in the movie “Kick-Ass.” with the p3000 (PN02085, without the To read the previous parts to the foam backing is PN02075). column go to www.autobodynews.com After that we’re ready for buff> columns > Rich Evans. ing. The first step is going to be the As with lastwith month’sDick (part two) arcompound, this will buff to remove Strom ticle I’m going to go into some detail sand scratches completely and this on the finishing of Woody’s Red Mist. system is for a faster cut and less heat, We left off with sanding with the use 3M Super Buff 3 wool pad
with Rich Evans
On Creative Marketing On Creative Marketing
Opinions Count Opinions Count with Dick Strom
Action Counts with Lee Amaradio Jr.
Action Counts with Lee Amaradio Jr.
Your Turn with Sheila Loftus
Your Turn with Sheila Loftus
Shop Showcase with Janet Chaney
(PN05703). I like to use the 3 wool compounding pad, (PN05719). You want to wheel it up until you get your gloss back and then we’re going to move to step 4 which is the perfect machine polish (PN06064 or 06065) to remove compound swirl marks. The pad that you’re going to use is a perfect plus foam polishing pad (PN05738), using medium pressure. Suggested buffing speed is in the range of 1200 to 2000 rpm. Then you want to come back and wipe with a yellow 3M perfect detail cloth (PN06016), then we’re ready for step five, ultrafine machine polishing (PN06068 or 06069) to eliminate fine swirl marks, even on dark-colored vehicles. Polish with a medium pressure, ultimate foam polishing pad (PN05733) and then we’ve got a completed project. As always I want to tell you about new products that I’ve come across recently which I’ve job tested and really like. I found a universal pad washer which reduces scratches. It is phenomenal, made by Grit Guard. I learned about this at the Auto Geeks show in Florida. If you don’t have one of these pad washers you have got to get one. It saves money and time washing out your pads and cleaning them, and it also improves your finish. This does everything for you and doesn’t make a mess. Go to gritguard.com and see all the different things they offer you. It’s guys like these that are saving us time and money and always just going to that extent of how we can make it easier for the end user (that’s us). How we can make our jobs go faster and better is by using quality product that solves problems. I’ve been using it for over 5 months now and it’s a great product. You need it in your shop. So our pads are staying clean, and we’ve got a buffed vehicle. Now 3M’s got a perfect clean and shine (PN06084) with which I clean up all the compounds on the edges so we’re not applying scratches. After the car is buffed is I’m putting the graphics on to match
the graphics in the movie Kick-Ass car. They want this car to look just like it so basically I used my vinyl plotter, get the measurements, and I asked Larry White come by and set them up in the computer. All we have to do then is push a button. We get our graphics laid out where I want them. I use a masking paper, then transfer paper to transfer it to the car. Just like applying stickers. So now we’ve got our design laid out, I gave Sims a call for their hot rod flat, my buddy Gabe over there supplied us with the product. I’m just going to apply two wet coats and with those flats you really want to lay it downwet on wet, otherwise you’ll get zebra stripes in it. That’s the key to shooting the single stage flats. I applied two wet coats and when you unmask it, you’ve got your graphics. I’m ready to add the yellow letter “M”, surrounded by yellow. So we put a white base down, mask everything up. I use a 3M fine line, and I number my pull strings because after I put the white down then the yellow, I
put one coat of clear on it, because we’re not burying these graphics under the clear. They are pretty much sitting on top of the paint. You’re See Finish the Red Mist Car, Page 31
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 29
Aftermarket Collision Parts Industry Responds to Consumer Reports Article The October issue of Consumer Reports ran an article called Are low-cost replacement bumpers safe? in which it stated “some safety experts are concerned about the internal bumper parts: a bumper beam, bumper isolators, foam, crush cans, brackets, and radiator supports. In a frontal crash, those pieces work together to properly transmit the crash pulse, or vibrations from impact energy that moves through the vehicle, to air-bag sensors and away from the passenger compartment to reduce or prevent injury. “There’s a lot of engineering that goes into making a crash-protection system,” says David Zuby, chief research officer for the Insurance Institute for Highway Safety. “You can’t willy-nilly change those parts because the system may not work the way it was designed.” The article went to say that “Ford reported that its engineers had found alarming differences in two aftermarket parts tested. One bumper bar was made of mild steel, instead of the ultrahigh-strength steel that the original Ford part uses. A radiator support was
made of plastic instead of the magnesium used in the Ford part. In computer-simulated crash tests, the fakes changed the timing of the crash pulse, which might affect air-bag deployment. “Differences in material could result in a difference in the timing of the air-bag deployment,” says Mike Warwood, Ford’s parts marketing and remanufacturing manager. “The air bag might deploy earlier than it should or later than it should. Or it might deploy when it shouldn’t or not deploy at all when it should.” “Ford’s testing follows a demonstration last year by Toby Chess, a master collision-repair instructor, who used a reciprocating saw to easily slice through an aftermarket bumper bar. The saw couldn’t cut through the original automaker bumper bar.” Now a major automotive aftermarket association, ABPA, has responded to the Consumer Reports article. Eileen A. Sottile, co-chair of the ABPA Legislation & Regulation Committee, issued the following statement: “As a publication that purports to provide a “reliable source of informa-
tion consumers can depend on to help them distinguish hype from fact and good products from bad ones,” Consumer Reports has sorely missed the mark with its piece, “Are low-cost replacement bumpers safe?,” featured in the October 2010 article, “Save on car insurance.” The aftermarket collision parts industry maintains the highest standards of quality and safety in the parts we provide to the collision repair industry. In doing so, we also ensure that there is an economical parts option available in the marketplace — a benefit that is extremely important to most Americans, whether they are fixing their own vehicle or having work done by a repair facility. The availability of aftermarket parts also helps keep the prices of car companies’ replacement parts lower, allowing for more vehicles to be repaired rather than declared total losses, thus avoiding the financial stress car owners face when they are left to pay the balance due on the loans of their totaled vehicles. Consumer Reports bases its highly questionable recommendation
that consumers “demand that they [aftermarket parts] be replaced with original equipment,” on egregiously unscientific tests and unwarranted criticism from organizations that have a significant financial stake in the outcome of the debate on aftermarket parts: Ford Motor Company’s hypothetical assertions supported only by computer simulations of a couple of parts merely represent one more play by the company to create a monopoly for its own replacement parts; and quotes from the Insurance Institute for Highway Safety appear to be based on presumption rather than actual research and factual data. Rather than providing a reliable source of information for consumers, Consumer Reports is doing nothing more than re-reporting unsubstantiated hype from fierce competitors. I expect this magazine to be held to a higher standard, and hope that Consumer Reports will involve the aftermarket industry in any future reporting on this issue and uphold its responsibility to draw its own unbiased conclusions.”
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Continued from Page 29
Finish the Red Mist Car
going to want to pull the lines so that clear doesn’t make such a big dry edge. Let it meld itself in there. To number the fine line, I use quarter inch on this and number them sequentially so you know which one to pull first and avoid a mess. Now we’ve got the “M” painted, it’s assembly time. It took me about 8 hours to assemble this car, give it a full detail, go back over it, judge myself. Obviously we painted some wheels for this vehicle as well to match the vehicle in the movie. I added my little touches to it. I put red caliper covers on (MPG Rich Evans caliper covers from mgpcalipercovers.com, or you can just go to calipercovers.com and visit Mike Barland). My website can link straight to them. I’ve got the car ready, judged it, everything looks good, ready for shipping. I got a super charger for it. The owner, Woody Frees and his two sons, 13 and 15, are installing that, along with other finishing items. They took delivery of this car on the 25th of August.
I’m excited to see the car get delivered and have one of my cars being seen in Florida. This car is number 7, (93 more to go), and we’ve got two more in the works now. I thought this one was pretty special. I really liked
We’re moving closer to SEMA, I’ve got six vehicles going and I can’t wait to show off some of the new cars I’m doing. Go to Mopar.com, to follow my build on a custom Challenger. I’m teaming with Mopar to bring some
Grit Guard (call 866-592-5925, or see their demo at the 2010 SEMA Show in Las Vegas, Booth #12645 and #12639), and Soft-Sanders™. Thanks to Woody and his family for giving me the opportunity to do a
the story behind it: a father and sons project. It’s a great bonding project and it’s something that they’ll remember for the rest of their lives. They’ll have a scrap book of 799 photos that shows me doing every step prior to them getting the car. As a builder that means everything to me. I’m excited to see another one done, and always waiting for the next one.
product so you can trick out your own car. It’s a lot easier than these Mustangs. The parts I’m creating for the Challenger can be bolted on within two hours. You can fully change the look of your Challenger, not that they aren’t cool already, but cooler is always better. We’re supposed to be done with that October 1. I’d like to thank my sponsors on this project, Sherwin-Williams, 3M,
great project. Alright, see you guys at SEMA next month. You can follow progress at my websites, huntingtonbeachbodyworks.com and Richevansdesigns.com.
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Kia’s Top Executive Resigns After Recalls
The top executive at Kia Motors has resigned after the company recalled more than 100,000 vehicles worldwide over defective wiring, the automaker said September 6 according to reports made by the Associated Press. Chung Sung-eun, vice chairman and CEO of South Korea’s No. 2 automaker, stepped down on September 3, according to company spokesman Michael Choo. “His resignation comes in the light of the recent global recall issued by Kia Motors,” Choo said, without elaborating. He said no successor has been named. Chung was one of two Kia CEOs. Kia Motors Corp. is an affiliate of South Korea’s top automaker Hyundai Motor Co. Together they form the world’s fifth-largest automotive group. Chung’s resignation comes amid a wave of recalls that have shaken the global auto industry since Japan’s Toyota Motor Corp. began calling in vehicles in October last year. South Korea’s Yonhap news agency reported that Hyundai Motor Chairman Chung Mong-koo asked Chung to step down to take responsibility for the recalls as they sug-
gested possible quality problems. Neither Choo nor Hyundai Motor spokeswoman Song Meeyoung could confirm the report. advertise Chung,Tothe former Kia execuAdvertising at: tive,call is no relation to Sales the Hyundai chairman, Choo said. 800-699-8251 Early this month Kia issued a global recall e-mail: totaling 104,047 veadvertising@autobodynews.com hicles for a defect in electric wiring that controls mood lighting www.autobodynews.com inside the car and could cause heat-related damage, according to Choo. Of that total, 35,185 vehicles were recalled in the United States, he said. the NEW Seoul-based Kia has a See complex management system. Though Chung held the top rank, day-to-day operations come under the control of two presidents: Hank Lee for overseas www.autobodynew operations and Seo Young-jong for domestic operations, according to Choo. Seo also holds the title of CEO, said Pamela Munoz, a Kia spokeswoman. Kia, which posted a 61 percent surge in second-quarter net profit, manufactures vehicles in South Korea as well as at overseas plants in China, Slovakia and the U.S. Kia shares tripled in value in 2009.
Autobody News
www.autobodynews.com | OCTOBER 2010 AUTOBODY NEWS 31