Autobody News October 2011 Southeast Edition

Southeast Edition Florida Georgia Alabama Mississippi

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Fmr. U.S. Sen. Fred D. Thompson and Other Lawyers Allege State Farm Court Fraud in Avery v. State Farm This month a group of lawyers filed a petition accusing State Farm Insurance of defrauding the Illinois Supreme Court by covering up its “extraordinary support of Justice (Lloyd) Karmeier’s campaign and to thwart State Supreme Justice Karmeier’s Court Justice Lloyd Karmeier disqualification” from the Avery v State Farm class-action case originally tried in 1999. Lloyd Karmeier was the successful 2004 Republican candidate in the most expen-

sive state judicial race in U.S. history, which was conducted during the appeal of Avery v State Farm. The petition is based on an investigation by former FBI agent Michael Reece. Reece stated in his affidavit accompanying the petition: “The bottom line of my investigation is that State Farm used the Illinois Civil Justice League to elect Judge Karmeier and Judge Karmeier knew it.”

While there are no hard and fast rules as to when a Justice should recuse himself the U.S. Supreme Court said a WV appelate court judge should have recused himself in a case because he reSee Avery Claims Fraud Page 30

State Insurance Divisions Differ From One Another in Terms of Addressing Repairer Concerns Some Success Stories For decades, shops in many states have taken concerns about auto insurer practices to insurance divisions only quite often to be told, in essence, that such regulators are there to address consumer complaints about insurers, not business-to-business issues.

But even that mission isn’t being met well in some states. When John Doak took the helm of the Oklahoma Insurance Department earlier this year, he quickly announced he was reorganSee Insurance Commissioners, Page 16

P.O. BOX 1516, CARLSBAD, CA 92018

It’s a common complaint among collision repairers: It’s not worth contacting the state insurance commissioner’s office because they don’t do anything about our complaints.

Yet in recent months, some state insurance commissioners have taken actions cheered by some shops, from radically changing their department’s focus, to issuing bulletins reminding insurers of state laws on steering or other shop-related activities.

What has led to these changes, and does it mean now is a good time

for shops to reassess their interactions with state insurance regulators?

Change Service Requested

by John Yoswick

VOL. 2 ISSUE 8 OCTOBER 2011

NACE/CARS Receiving Renewed Energy and Enthusiasm from New Florida Venue

by Chasidy Rae Sisk

As most observers know by now, for the first time since 2003, the NACE/ CARS expo will be held somewhere other than Las Vegas. From October 5–8, 2011, NACE will take place at the Orange County Convention Center in Orlando, FL. As of July, attendee registration for 2011 had already surpassed double the registration of 2010, a fact largely attributed to the new east-coast location.

Kathleen Moyer of Rex’s Body Shop and Garage Inc in Vincennes, IN says she’s excited that NACE is being

held in a new location in 2011 and hopes they continue alternating locations. (See last paragraph this article.)

This is exactly what ASRW has announced they intend to do, rotating the expo to different locations around the country in upcoming years in order to attract new attendees.

Though he and his wife attend NACE every other year, Shawn H. Moody of Moody’s Collision Centers in Maine is also happy for the change of scenery, pointing out that Orlando is a more family-friendly environment than Las Vegas, and therefore more See NACE Relocation, Page 26

Training Schedule for the NACE/CARS Expo Oct. 5–8 at the Orlando Convention Center The 29th Annual International Autobody Congress & Exposition (NACE) show will take place from October 5 through 8 at the Orange

Weds. October 5

Choose from 28 Training Classes Six Add-On Education Courses ASRW Industry Forum, 4:30 pm

Thurs. October 6

County Convention Center in Orlando, FL. The full schedule consists of 80+ courses/classes, with some repeats. See pages 18–19 and 24.

Fri. October 7

Choose from 25 new Training Classes Muscle Car Network of FL display I-CAR Tech Showcase continues

Sat. October 8

General Session—Chris Brogan, 8:30 Choose from 16 new Training Classes MSO Symposium ASRW Town Hall, Health Care, 3:00 pm Exhibits Open at 10:00 am Exhibits close at 3:00 pm ASRW Welcome Reception See NACE Schedule, Page 18 Choose from 14 new Training Classes

Join Rich Evans, Chip Foose, and Charley Hutton (and many more) at the SEMA and AAPEX shows, November 14 in Las Vegas. Highlights: see page 11.

Presorted Standard US Postage PAID Ontario, Ca. Permit No. 1

2 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

Contents AL Immigration Law & Vehicle Registration . 9

Alabama Welcomes Red Light Cameras, Although Some Places Have Been

Vocally Opposed to the Technology . . . . 6

18%, Nissan up 19.2% . . . . . . . . . . . . 35

BASF Names Vitor Margaronis Marketing

Director for North America Automotive

Refinish, OEM, and Industrial/Commercial

Transport Systems Business . . . . . . . . 35

Auburn, AL, Automotive Supplier Expands

CAPA Releases Resource for Claims

Copart Adds Fifth Facility in Ellenwood,

Dick Cheney on TARP: ‘No’ to Automakers,

FL Supreme Court Upholds Household

Educational Schedule, Structure

Georgia . . . . . . . . . . . . . . . . . . . . . . . . . 4 Exclusion in Auto Policies . . . . . . . . . . 10

Ft. Myers, FL, to Host Sherwin-Williams

Automotive Finishes A-Plus™ University

Ecolean™ Level 2 Workshop . . . . . . . . . 6

GA Thieves Target Auto Batteries . . . . . . . . 4

Personnel, Adjusters . . . . . . . . . . . . . . . 9

‘Yes’ to Banks . . . . . . . . . . . . . . . . . . . . 9 Released for New MSO Symposium

At NACE 2011 . . . . . . . . . . . . . . . . . . . 29

Fmr. U.S. Sen. Fred D. Thomson and Other Lawyers Allege Court Fraud in Avery v.

State Farm. . . . . . . . . . . . . . . . . . . . . . . 1

Nalley Toyota of Roswell, GA, Wins Toyota

Ford Motor Company Issues Response

New Fiat Dealership Opens in Miami, FL . . 8

Full Schedule for the NACE/CARS Expos;

President’s Award for the First Time . . . . 4

Safelite AutoGlass Relocates Warehouse

to Tampa, FL . . . . . . . . . . . . . . . . . . . . . 4

COLUMNISTS

Attanasio - It’s a Perfect Pair: Honda’s Collision Select Program & OEC’s

CollisionLink® . . . . . . . . . . . . . . . . . . . 22

Franklin - The Ethnic Factor in Marketing . 28

Statement to ABPA Crash Test Videos . 32

Oct. 5-8 at the Orange County

Convention Center . . . . . . . . . . . . . . . . . 1

Handling People, Including Insurance

Adjusters, Means Negotiating Effectively. 38

Hughes Telematics Partners with AAA

Club to Offer Services to Members. . . . . 6

I-CAR Enhances Collision Repair Training

at SEMA 2011 . . . . . . . . . . . . . . . . . . . . 9

I-CAR Tech - Three-Dimensional Measuring

Insurance Institute Says Collision Severity

Insurance Insider - Let’s Get Some

Insurer Plans to Improve Non-DRP

Equipment–is it Really Necessary? . . . 36 Independent Testing to Move the Parts

is Down for the Fourth Year in a Row . 33

Services with Uploads . . . . . . . . . . . . 33

Battle away from Sandbox Bickering . . 27

Japan Quake Had Little Affect on Parts

Energy and Enthusiasm from New

Kia Sorentos Recalled for Faulty Front

Weaver - When Something ‘Common’

Nearly 311,000 Honda Pilots Recalled

Williams - What Happens When OEMs

SEMA Serves Up Expanded Repairer

Sisk - NACE/CARS Receiving Renewed

Florida Venue. . . . . . . . . . . . . . . . . . . . . 1

Turns Out to be Not So Common . . . . . 21

Really Support Body Shops . . . . . . . . . 34

Yoswick - CIC Participants Tell Information

Providers to Take the Lead in Chicken-or-

Egg Dilemma . . . . . . . . . . . . . . . . . . . . 14

Yoswick - State Insurance Divisions Differ

From One Another in Terms of Addressing

Repairer Concerns . . . . . . . . . . . . . . . . . 1 NATIONAL

August Sales: Chrysler Up 31%, GM up

Supplies . . . . . . . . . . . . . . . . . . . . . . . 33

Airbags . . . . . . . . . . . . . . . . . . . . . . . . 20

for Front Seat Belts . . . . . . . . . . . . . . . 20

Driven Education Sessions and Celebrity

Appearances for 2011 . . . . . . . . . . . . . 11

Subaru Legacy and Outback Recalled for

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: 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, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Indexof Advertisers

Operations. . . . . . . . . . . . . . . . . . . . . . . 4

Windshield Wipers . . . . . . . . . . . . . . . 20

Subaru/Saab Recalls Models for

Suspension Corrosion . . . . . . . . . . . . . 20

Subarus Recalled Because Moonroof Can

Detach. . . . . . . . . . . . . . . . . . . . . . . . . 20

VW Recalls Jettas With Too Long Tailpipes. 20

Southeast

REGIONAL

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. ©2011 Adamantine Media LLC.

Autobody News

Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Arrigo Dodge-Jeep-Chrysler. . . . . . 19 Autoland Scientech. . . . . . . . . . . . . 21 BASF . . . . . . . . . . . . . . . . . . . . . . . . . 5 Bill Penney Toyota. . . . . . . . . . . . . . 32 BMW Wholesale Parts Dealers . . . . 35 CARS Cooperative . . . . . . . . . . . . . 19 Cebotech/Tecna . . . . . . . . . . . . . . . . 6 Chief Automotive. . . . . . . . . . . . . . . 23 Classifieds. . . . . . . . . . . . . . . . . . . . 39 Crash-Writer . . . . . . . . . . . . . . . . . . . 8 Crystal Glass . . . . . . . . . . . . . . . . . . 11 Delray Honda . . . . . . . . . . . . . . . . . 28 Diamond Standard Parts . . . . . . . . . 9 Don Mealey Chevrolet . . . . . . . . . . 30 Don Reid Ford. . . . . . . . . . . . . . . . . 26 Equalizer Industries . . . . . . . . . . . . 30 Ford Wholesale Parts Dealers FL, GA, AL, MS . . . . . . . . . . . . . . 40 Galloway Mazda . . . . . . . . . . . . . . . 27 Garmat USA . . . . . . . . . . . . . . . . . . 25 Global Finishing Solutions . . . . . . . 18 Global PDR Solutions . . . . . . . . . . . 29 Goliath Carts . . . . . . . . . . . . . . . . . . . 6 GM Wholesale Parts Dealers . . . . . 39 Gus Machado Ford . . . . . . . . . . . . . 24 H & S Autoshot . . . . . . . . . . . . . . . . 16 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 12-13

Hyundai Wholesale Parts Dealers . 37 Kia Motors Wholesale Parts Dealers. 17 Mattei. . . . . . . . . . . . . . . . . . . . . . . . 28 Mazda Wholesale Parts . . . . . . . . . 38 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 38 MOPAR Wholesale Parts Dealers . . 16 Motor Guard . . . . . . . . . . . . . . . . . . . 4 Nalley BMW. . . . . . . . . . . . . . . . . . . 26 Nissan Wholesale Parts Dealers. . . 32 Palmers Toyota . . . . . . . . . . . . . . . . 24 Porsche Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 33 Pro-Spray . . . . . . . . . . . . . . . . . . . . . 2 Safety Regulation Strategies . . . . . 29 SATA Spray Equipment . . . . . . . . . 15 Serra Mazda . . . . . . . . . . . . . . . . . . 33 Shop-Pro Equipment . . . . . . . . . . . . 7 Southtowne Hyundai . . . . . . . . . . . 25 SprayZone.net . . . . . . . . . . . . . . . . 14 Star-A-Liner . . . . . . . . . . . . . . . . . . . 10 Subaru of Gwinnett . . . . . . . . . . . . . 31 Subaru Wholesale Parts Dealers . . 36 Tameron Hyundai . . . . . . . . . . . . . . 31 Toyota Wholesale Parts Dealers . . . 36 VIM Tools. . . . . . . . . . . . . . . . . . . . . 34 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 35

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 3

Safelite AutoGlass Relocates Warehouse to Tampa, FL

Safelite AutoGlass on August 30 announced the company will relocate its SuperCenter warehouse in Tampa, Fla. to a larger facility in northern Tampa. The move is scheduled for Sept. 15.

The new 33,000 square foot facility will house an inventory of 10,000 parts. The SuperCenter also has a service shop with four service bays. The company plans to hire more service representatives, dispatchers, seasonal repair specialists and technicians, according to Safelite. The existing store will continue to serve the South area of Tampa.

“Safelite AutoGlass is committed to serving customers in the Tampa area, and this larger SuperCenter will allow us to have more inventory on hand to service customers,” said Amiee Nickerauer, Safelite’s local general manager. “Keeping people safe while they are in their vehicles is a key component to Safelite’s approach to the business. Vehicle glass is an important element of a car’s structural integrity, and we are happy to perform inspections to identify any risky chips or provide a quote on glass damage.”

Copart Adds Fifth Facility in Ellenwood, Georgia

Copart, Inc., a leading live online vehicle auction, announced August 30 the opening of its new South Atlanta facility in Ellenwood, Georgia. This latest addition to Copart’s footprint marks the company’s fifth facility in Georgia and the 154th facility worldwide.

Copart President Vincent W. Mitz said the 77-acre site will improve Copart’s service in the greater Atlanta Metropolitan area.

“Atlanta is a major market, and our new SouthAtlanta facility in Ellenwood provides additional capacity to more efficiently cover the region as demand for our services grows,” said Mitz.

Copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. The company currently operates 154 facilities in the United States, Canada and the United Kingdom.

For more information visit www.copart.com.

www.autobodynews.com CHECK IT OUT!

Nalley Toyota of Roswell, GA, Wins its First Toyota President’s Award

Nalley Toyota of Roswell, Georgia, is pleased to announce that it has won the prestigious President’s Award for the first time.

The award is given annually by Toyota Motor Sales and is awarded to select dealers for their commitment to maintaining Toyota’s high standards for customer satisfaction.

The President’s Award recognizes those dealerships that provide customers with an excellent experience for the entire lifetime of their vehicle.

In order to qualify as a President’s Award winner, dealerships must excel in each of a series of categories. Dealerships which meet the requirements in all categories receive name badge recognition at all dealer events, national recognition in an Automotive News advertisement and, of course, the beautiful President’s Award Tiffany crystal trophy.

Nalley Toyota of Roswell, which sells new and pre-owned vehicles to the Atlanta Metro area, was selected for the award based on excellence in a number of categories, including Customer Sales Satisfaction and Customer Service Satisfaction.

Nalley Toyota was selected for a President’s Award due to its commitment to both selling cars of the highest quality and providing the best customer service in the Atlanta region for as long as the customer owns the vehicle.

Nalley Toyota of Roswell is part of the Nalley Automotive Group, which has been a presence in Atlanta since 1918. Visit toyotaofroswell.com for more information.

Nalley Toyota of Roswell 11505 Alpharetta Highway Roswell, GA 30076 877-450-7521

Give us your opinion on matters affecting the industry.

write us! publisher@autobodynews.com

4 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

Auburn, AL, Automotive Supplier Expands Operations

Seung Chang Airtech, Inc. (SCA) is announcing the completion of a 95,000 plus square-foot expansion to its manufacturing operation in Auburn Technology Park North in Alabama, according to WLTZ News Columbus.

The 214,800 square-foot large manufacturing facility will help the company respond to the growing demand for its products.

“Our decision to expand our production is the result of additional business and increased demand from our clients KMMG in West Point, Georgia, and HMMA in Montgomery, Alabama.

Our Auburn manufacturing facility strategically places us in a position to grow our company, and provide additional jobs in the community,” said Dr. Daniel Yu, CEO of SCA. SCA is also announcing another major project coming to Auburn. SCA has already began occupying a 20,000 square-foot facility in the Auburn Industrial Park where it will produce vibration and noise dampening materials used in the automotive, industrial, and construction industries.

With these two projects SCA will have invested $16.8 million and will have created approximately 200 additional jobs in Auburn.

“We are excited about the announcement by SCA,” Mayor Bill Ham said. “SCA became a corporate citizen to Auburn in 2004, creating 40 jobs. In the near future, the company will employ 400 workers. I want to congratulate the leadership of the company and its employees for this achievement,” Ham added.

The Auburn automotive parts manufacturer serves the automotive industry with black plastic injection molding parts and the assembly of heater and blower modules.

GA Thieves Target Auto Batteries

Authorities say more than 77 batteries have been stolen from cars, trucks, tractors, forklifts and even golf carts in recent weeks in Macon and Bibb County, according to Claims Journal.

Authorities say the price of lead is as high as 50 cents a pound, which makes the lead-containing batteries desirable targets for thieves. Bibb County Chief Deputy David Davis said that while some stolen batteries are sold for scrap, others are being sold for reuse in other vehicles.

Police say most of the thefts have occurred in commercial parking lots where big trucks, church buses and other vehicles are parked.

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 5

Ft. Myers, FL, to Host Sherwin-Williams Automotive Finishes A-Plus™ University Ecolean™ Level 2 Workshop

The Ft. Myers, Fla. area will be the site of Sherwin-Williams Automotive Finishes next A-Plus™ EcoLean™ Level 2 workshop Oct. 5-6, 2011, at the Hyatt Regency Coconut Point, in Bonita Springs, Fla. The EcoLean Level 2 workshop is designed to further educate collision repair owners and managers to maximize profit while reducing the environmental impact of the facility’s process and environmental waste.

The course is open to all collision center representatives that have previously attended the EcoLean Level 1 workshop.

In Level 2, participants will learn the importance of a complete and accurate repair plan in a lean collision repair facility, as well as marketing and communication tactics they can use to get the word out about ‘going green’. The mechanics of an environmental management system as well as compensation solutions of lean collision facilities will be discussed.

“Integrating lean practices into your collision repair facility benefits both the facility and the environment,” said Troy Neuerburg, Marketing Manager - Business Services

for Sherwin-Williams Automotive Finishes. “EcoLean teaches collision facility owners how to improve the quality, production output and profitability of their facilities, while reducing process and environmental waste.”

After attending the session participants will leave the two day event with tangible tools to decrease the amount of waste at their facility, but will increase profitability and productivity.

To register for the A-Plus University EcoLean Level 2 workshop online, visit www.sherwin-automotive.com.

For more information on the EcoLean program, call (804) 433-9690.

Promote your business with an exclusive article featuring your products or services.

Call for details!

800-699-8251

NACE Booth #N531 SEMA Booth #11041

6 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

Alabama Welcomes Red Light Cameras, Although Some Places Have Been Vocally Opposed to the Technology

More Alabama cities are considering installing red light cameras, even as two major U.S. cities recently decided to pull the plug on their own camera systems, according to the Birmingham News.

Selma this summer became the second Alabama city with the cameras, joining Montgomery, which has used them since 2008, according to police in those cities. Opelika and Tuscaloosa are moving forward with plans to install the cameras in months to come, city officials said.

Legislation passed this year allowing Center Point and Midfield to install the cameras, and city officials in Birmingham, Dothan, Fairfield, Hueytown, Pell City and Trussville have expressed interest in using them.

Houston and Los Angeles recently decided to stop using red light cameras, according to news reports.

They join nine states and more than a dozen cities nationwide that ban the use of the cameras, after opponents argued that the programs either generated revenue without improving safety or unlawfully invaded privacy, a recent Associated Press report stated.

City officials in Los Angeles stopped the program because it was losing money, reports stated.

City officials in Dothan have been following developments in Houston and L.A. and are talking with officials in Montgomery as they decide whether to install the cameras, said City Manager Mike West.

Hughes Telematics is partnering with AAA Club to offer In-Driveconnected services to the automobile club’s 12 million drivers in 20 states.

As previously announced with State Farm Insurance, the In-Drive system operates similarly to GM’s aftermarket OnStar system. In-Drive connects the vehicle and its driver to Hughes operators in the event of an emer-

gency or accident. Devices plugged into the vehicle’s On-Board Diagnostics port and mounted on the visor connect the driver and the vehicle to Hughes’ team of operators, who are available to help drivers coordinate emergency response and detect when a vehicle has been in a crash.

AAA hasn’t finalized its offerings or come up with pricing.

Hughes Telematics Partners with AAA Club to Offer Services to Members

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 7

New Fiat Dealership Opens in Miami, FL On the heels of opening a new Fiat store in South Miami as well as in Houston, Chrysler Group unveiled on September 1 yet another dealership in the Sunshine State—one of 12 stores to open in Florida this year, according to Auto Remarketing News.

Planet Fiat, located at 9975 NW 12th Street in Miami, will be run by the father and son team of Walter and Scott Ritter. The new store is right next to the pairs existing Planet Chrysler, Jeep, Dodge and Ram Truck dealership.

Laura Soave, head of Fiat Brand North America offered her opinion on the news, saying, “We now have more than 100 open Fiat Studios across the United States. “We will continue growing our network adding more FIAT Studios almost weekly through the rest of this year. We welcome Planet Fiat to our growing network,” she added.

Moving on to highlight the evolution of the new store, the company noted that Walter and Scott Ritter updated the former used-car facility into a 3,500 square foot Fiat dealership (or studio, as the brand prefers), just west

of Miami International Airport and near the Dolphin Mall and Miami International Mall.

Remarking on the store’s inventory, Scott Ritter said,”The Fiat 500 is totally unique and fits the market we’re in today.

“There’s a broad appeal here in Miami for this car’s unique design, good fuel economy and great value.

Simply put, it’s the right car and the right time,” he concluded.

Moreover, less than two weeks ago, the company announced the opening of another Miami dealership, South Miami Fiat, located at 17220 South Dixie Highway.

Dealer Jay Rivchin opened the new store less than a mile from his existing Dadeland Chrysler, Jeep, Dodge and Ram Truck dealership.

Joining more than 100 open Fiat dealerships in the country—after a three-month renovation project, the store was complete.

Just last week the new Sterling McCall Fiat store opened in Houston at 10505 Southwest Freeway. This marked the 10th Fiat dealership to open in the state of Texas this year.

8 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

AL Immigration Law & Vehicle Registration Motor vehicle registration procedures will change when the new immigration law signed by Gov. Robert Bentley goes into effect Sept. 1, according to The Clanton Advertiser. According to an Aug. 26 press release, Act 2011-535 of the Alabama Legislature, also known as the Immigration Act, will require everyone to show proof of U.S. citizenship for every business transaction made through the Alabama Department of Revenue, Motor Vehicle Division and County Licensing Offices.

“Business transactions” include applying for or renewing a license plate, a driver’s license, a non-driver identification card or a certificate of title.

“It’s really going to change the way we do everything in our office,” said Tim Little, Chilton County tax collector. “Just be patient with us.

We’re going to suffer along with the public until we can get the wrinkles ironed out.”

Beginning Sept. 1, any person applying for or renewing a license plate, driver’s license, non-driver

identification card or certificate of title must come into the Motor Vehicle Registration Office and present documents proving U.S. citizenship or lawful presence in the U.S. “You will have to go in and show the proper I.D.,” Little said.

“No more online renewals. It’s going to be bad.”

Examples of acceptable documents for U.S. citizenship, original or photocopied clearly, include: ● A valid, unexpired driver’s license or non-driver identification card issued by the Alabama Department of Public Safety. ● A U.S. birth certificate. ● A valid or expired passport with I.D. and passport number. ● Naturalization documents or the certificate of naturalization number.

According to the press release, applicants trying to prove lawful presence must present one document for verification each year, such as a valid, unexpired Alabama driver’s license, a valid, unexpired non-driver identification card or a valid tribal enrollment card.

CAPA Releases Resource for Claims Personnel,Adjusters

CAPA has released a new resource for claims personnel and adjusters – The CAPA Guide to Certified Aftermarket Parts for Claims Personnel and Insurance Adjusters. CAPA’s aim is to provide claims personnel and insurance adjusters with a better understanding of the benefits of using certified parts. The CAPA Guide gives an overview of the CAPA program in a question and answer format. “The questions we asked are challenging, hard hitting and based directly on the many questions about CAPA that we have actually received from claims personnel and insurance adjusters,” said Jack Gillis, Executive Director.

“Not only will this provide claims professionals with an overview to the increasingly complex aftermarket parts world, but will no doubt be a value to shops.” See www.CAPAcertified.org.

CAPA will provide copies of the Guide to over 5,000 insurance claims personnel, adjusters, and claims executives. Bob Anderson, Chairman of CAPA’s Board and owner of Anderson’s Automotive Services in Sheffield Lake, OH, said, “I wish I had a resource like this when I began to deal with claims personnel about CAPA parts.”

Dick Cheney on TARP: ‘No’ to Automakers, ‘Yes’ to Banks

“Although I understood the reasoning, I would have preferred that the government not get involved and was disappointed "—Dick Cheney writes in his new memoir, In My Time. The auto industry endured its worst downturn since the Great Depression in 2008, and it became increasingly clear during the final days of the Bush Administration, that at least two of Detroit’s Big Three could no longer survive without immediate help. So the Bush Administration tapped into the $700 billion Troubled Asset Relief Program. While the former vice president did’t think the auto rescue was valid, he favored saving the banks— even though most felt they had caused the global economic meltdown. The new Cheney book sidesteps comments made by former Pres. Bush in his own memoir, Decision Points.

Bush defended his role in the automotive bailout, saying: “The immediate bankruptcy of the Big Three could cost more than a million jobs, decrease tax revenues by $150 billion and set back America’s GDP by hundreds of billions of dollars.” Many are still retroactively opposed to the rescue of Detroit despite historic signs of recovery by GM and Chrysler.

I-CAR Enhances Collision Repair Training at SEMA 2011 I-CAR will return to the SEMA Show 2011, November 1–4, at the Las Vegas Convention Center. I-CAR will offer eight collision repair training opportunities, including some new programs introduced in 2011. The training programs will provide attendees with updates on current vehicle design, new vehicle manufacturer recommendations, and “how-to” information on efficiently repairing vehicles.

I-CAR will be offering free informational sessions to all SEMA Show 2011 attendees. The following essions will take place at the SEMA Collision Repair & Refinish Stage: Aluminum Intensive Vehicles Structures, Automotive Aluminum MIG Welding Equipment and Techniques, Advanced High-Strength Steel Structures Design and Repair, and Advanced Lightweight Vehicle Technology and Repair.

John Van Alstyne, I-CAR CEO & President said, “The SEMA audience knows first-hand that vehicle technology is continually changing and staying informed on industry trends impacts everyone in the industry, including repairers, manufacturers, suppliers, and many others.”

Van Alstyne continued, “Reach-

ing the audience at the SEMA Show 2011 will allow I-CAR to communicate an important industry message.

Collision repair training has a powerful impact on many areas of the automotive and collision repair industries, and aside from the important goal of ensuring vehicles are properly repaired, the benefits of relevant, up-todate training can improve both individual and business performance.” To register for I-CAR training at SEMA, visit the SEMA Show 2011 website (www.semashow.com). You must be registered for the SEMA Show 2011.

Tues. Nov. 1 / 8:00 a.m. – 12:00 p.m. Exterior Panels Damage Analysis (DAM10) and Plastic and Composite Repair (PLA03) Weds. Nov. 2 / 8:00 a.m.– 12:00 p.m. Restraint Systems Damage Analysis (DAM11) and Corrosion Protection (CPS01) Thurs. Nov. 3 / 8:00 a.m.–12:00 p.m. Unitized Structures and FullFrame Damage Analysis (DAM12) and Steel Unitized Structures Technologies and Repair (SPS07) Fri. Nov. 4/ 8:00 a.m.–12:00 p.m. Advanced Material Damage Analysis (DAM08) and Recycled Parts for Collision Repair (RCY01).

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 9

FL Supreme Court Upholds Household Exclusion in Auto Policies Florida’s highest court has upheld the so-called “household exclusion” clause in automobile policies that states the injuries suffered by family members residing with an insured driver are not covered under the policy, according to reports in Insurance Journal.

The Florida Supreme Court in the case of State Farm Insurance Co. v.

Gilda Menendez reversed a Third District Court of Appeals, which ruled that the household exclusion as currently written is ambiguous and therefore should be interpreted in favor of the insured.

State Farm issued the policy to Menendez, who permitted her granddaughter Fabiola G. Llanes to use her vehicle. Subsequently, the granddaughter was involved in an accident that left her and her parents, Fabiola P. Llanes and Roger Llanes, injured.

At the time, the granddaughter was living with her parents while her grandmother resided in her own home.

In the wake of the accident, Menendez filed suit against State

Farm, the granddaughter and her parents seeking a determination whether her policy covered the injuries suffered by the family.

The household exclusion clause states that there is no coverage for “any bodily injured” to “any insured or any member of an insured’s family residing in the insured’s household.”

State Farm asserted that since Menendez allowed her granddaughter to use her car as a permissive driver, the granddaughter was an “insured” driver covered by Menendez’s policy.

Based on that reasoning, State Farm argued that since the granddaughter lived with her parents, the insurer was not liable for the parents’ injuries since the coverage didn’t extend to “any member of an insured’s family residing in the insured household.”

In response, Menendez and the Llanes said that the exclusion clause as written is ambiguous since it didn’t define who constituted the “insured” driver. They argued that since Menendez was the named insured on the policy, the household exclusion would

10 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

only apply to relatives living with her.

Under that interpretation, since the granddaughter and her parents resided at a different address, the household exclusion didn’t apply and therefore their injuries should be covered.

The Third District Court of Appeals agreed that the household exclusion was ambiguous since it could be reasonably interpreted both ways. The court then followed a judicial rule that states ambiguous policy provision must be interpreted in the favor of the insured and ruled against State Farm.

When the case appeared before the Supreme Court, State Farm and Menendez agreed that the granddaughter was a permissive driver under the policy, which defined “insured” as both “named insured” and any other person using the car “within the scope of consent.” Therefore, the insurer was liable for her injuries and any legal action taken against her.

The high court, however, declared that household exclusion was not ambiguous based on the policy.

“If the language used in an insurance policy is plain and unambiguous,

a court must interpret the policy in accordance with the plan meaning of the language used so as to give effect to the policy as written,” the court said.

The court ruled that the policy clearly had different definitions for the “named insured” as opposed to an “insured.” And even though the exclusion refers to an “insured” it clearly refers to the name insured and any permissive drivers.

“Both the broader context of policy’s defined terms and the immediate context of the policy exclusion provision point unambiguously to the conclusion that the household exclusion is applicable here,” the court stated.

As a result, the court found the policy only extended to Menendez and her granddaughter and excluded the parents.

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SEMA Serves Up Expanded Repairer Driven Education Sessions and Celebrity Appearances for 2011 The Specialty Equipment Market Association (SEMA) Show will take place at the Las Vegas Convention Center from November 1 through 4.

In gearing up for the upcoming show, the group has made several announcements regarding celebrity appearances and their expanded Repairer Driven Education (RDE) sessions provided by the Society of Collision Repair Specialists (SCRS).

Charley Hutton, formerly body shop supervisor at Boyd Coddington’s La Habra shop and known for his appearances on the TV shows American Hot Rod, Rides, and Overhaulin’, is regarded as one of Charley Hutton the most popular painters in the custom car world. He will appear Wednesday, November 2, from 2:00–3:00 p.m. at the Collision Repair & Refinish Section Stage (North Hall #10873). Charley will do an onstage interview and a question and answer session.

Working out of his shop in Nampa, Idaho-Charley Hutton’s Color Studio-Hutton has produced an impressive number of automotive refinishing projects over his career, most recently through his work using PPG Automotive Refinish. He has garnered a number of prominent honors as a result.

The Society of Collision Repair Specialists (SCRS) also added awardwinning painter, fabricator, television personality, and Autobody News Columnist Rich Evans to an already packed lineup of activities Rich Evans taking place this year in the north hall of the Show.

Evans, owner of Huntington Beach Bodyworks and chief architect of Rich Evans Designs, is known nationally for his work on television shows such as TLC’s Junkyard Wars, Chop Cut Rebuild, and Car Warriors on the SPEED Channel; and for his distinctive custom painting techniques

that allow him to create some of the most striking vehicle graphics in the world, including his much heralded “Tattoos for Cars” series.

While Evans has built his Chip Foose name on custom work and fabrication, he built his career on collision repair, and he will join SCRS at 10:00 a.m. on Wednesday, November 2, to speak about his career in the collision repair industry and the ever-changing landscape of the business and its technical side.

SEMA attendees are invited to stop by the SCRS booth (North Hall # 10727) to take part in this live interview.

Automotive designer and fabricator Chip Foose will also be available for a meet and greet at the BASF booth # 21458 on November 1 from 9 A.M. to 10:30 A.M. and November 2 from 3P.M. to 5P.M. at the MagnaFlow Exhaust products booth # 23543.

Foose is best known for his appearances on TLC’s Overhaulin’ and his

unique car designs displayed at SEMA since 2005.

The Society of Collision Repair Specialists (SCRS) also announced that their Repairer Driven Education (RDE) series, which served as the foundation for SCRS’ involvement at the SEMA Show in 2010, will expand

from two days of seminars in 2010 to all four days of the show in 2011.

SCRS said the current YTD education pre-registration numbers for 2011 have eclipsed total participants in 2010 by more than 59 percent.

“The increased participation in this section of the show and our RDE program is a huge indication of the industry’s excitement over being here in Las Vegas with us and the 120,000 other people who love the energy found only at the SEMA Show,” said See SEMA, Page 15

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 11

速

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 13

John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).

Contact him by email at jyoswick@SpiritOne.com.

Industry Insight

CIC Participants Tell Information Providers to Take the Lead in Chicken-or-Egg Dilemma with John Yoswick

What may have seemed to some at the most recent Collision Industry Conference (CIC) as a debate about esoteric computer jargon was actually a discussion about who gets access to all the information in a shop’s estimates.

Speaking ahead of the meeting, Fred Iantorno of the Collision Industry Electronic Commerce Association (CIECA) said the way a shop’s estimating data currently flows through any of the current electronic connections in the industry—to the shop’s management system, to insurers, to parts suppliers, to rental car companies or CSI providers— Fred Iantorno can be compared to repairing a car without applying the needed corrosion protection.

“You can’t see what’s inside of

these systems to see if the corrosion protection has been put there or not,” Iantorno said. “But over time, it’s like a time bomb waiting to happen. The rust will show up, because essentially the corrosion protection hasn’t been changed since 1999.”

Iantorno, along with a number of collision repair trade associations and organizations, has been lobbying for a shift by the information providers away from using the older “EMS” standard for transferring estimate data to using the news “BMS” standard. Understanding what those acronyms stand for is less important, he said, than understanding the key difference between the two.

The EMS file includes every scrap of data included in an estimate: the customer’s information, the vehicle information, the parts and labor information.

So if a shop, for example, orders parts electronically, the parts vendor receiving the parts list via the EMS file gets

not only what parts are needed but information about the customer and his or her insurance. A rental car company also might be getting all this information even if all it really needs is information on when a customer’s car will be repaired and the rental returned.

Because the newer BMS standard provides shops with more control over what data gets shared—thus making it easier to protect the privacy of data for customers, business partners and themselves—collision repair organizations have for years been calling for the information providers to enable shops to use BMS rather than EMS. And EMS was created a full decade before BMS, Iantorno points out, it’s based on older technology, making it akin, he said, to using a 1990s cell phone rather than one sold today.

Asked again about BMS at the CIC meeting held this summer in Salt Lake City, Utah, Jack Rozint of CCC

Information Services said his company has implemented BMS in some limited instances.

“There are some large collision groups that are using it to consolidate data, and there’s a couple paint company value-added programs that are using our implementation of BMS to get repairer data to support their 20 groups,” Rozint said. “To be frank, the majority of our customers are using applications on the other end—receiving the data from Jack Rozint the shop—that are still using EMS, so all our systems still support EMS.” But Aaron Schulenburg of the Society of Collision Repair Specialists was among those at CIC who pointed out that it’s a bit of a chicken-and-egg situation; those receiving data from

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shops, he said, can’t switch from EMS to BMS until the information providers enable shops to use BMS. “Unless somebody turns the switch first, it will never happen,” Iantorno told Rozint.

“Right now, the list of applications that are BMS-capable to receive that format is a very short one,” Rozint said. “So we need the people who have the applications that are going to take in the EMS to come to us and say, ‘We want BMS implemented to replace the EMS interface,’ and we need our customers to tell us that that application is important.”

But Tony Passwater, chairman of CIC’s Data Privacy Committee said CCC, Mitchell International and Audatex just need to do what companies in other industries have done to push for a shift to new, better technologies.

“They just need to say that as of a certain date, the EMS standard will be sunsetted,” Passwater said. “Starting on that date, only the BMS standard will be supported. Then the application developers aren’t going to have to make (their) systems import EMS files. And believe me, it’s a lot easier for them to use BMS. But you

have to tell the application developers you won’t use it anymore. That’s as simple as it is. It is a chicken-and-egg syndrome. The information providers have got to set that sunset.”

Another CIC participant, speaking privately after the meeting, said he may hand out buttons for shop owners to wear at this fall’s trade shows saying, “No BMS now? No thanks.”

In other news and discussion at CIC in Salt Lake City: ● Representatives of several of the paint companies say that testing of waterborne clearcoats continues, but that several challenges remain. “It looks odd when it goes on—almost white—but dries super-clear,” Bob Burgess of PPG said. “It looks really good, but it’s not as fast (as solvent-based clearcoats).”

Paul Maiersperger of DuPont concurred based on his company’s development of waterborne clears. “The durability has always been an issue, and the productivity, because everyone wants faster and faster clears,” he said.

“That’s something we need to address.” ● The CIC Definitions Committee said it is doing its regular review of CIC’s definition of a “Class A” collision repair facility, considering how

to address issues, for example, as whether or not a shop chooses to be equipped to do aluminum repairs. ● Jordan Hendler, executive director of the Washington (D.C.) Metropolitan Auto Body Association, was honored for her efforts earlier this year that helped prevent a teenage girl from jumping off an I-95 freeway overpass in a suicide attempt. Hendler called 91-1 as she approached the girl on the edge of the overpass, then kept talking to her, pleading with her not to jump.

She kept talking to the girl as another by-passer approached from the other end of the overpass and was able to grab the girl and pull her back off the barrier she had climbed over. Hendler said it took both of them to hold the hysterical girl down until emergency responders arrived about four minutes after the call to 9-1-1.

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

Continued from Page 11

SEMA

SCRS Executive Director, Aaron Schulenburg. “A bigger, growing, thriving section, with a noticeable increase in the footprint of the collision industry in the Show means that we have done our part working with SEMA to make this an attractive environment for both exhibitors and attendees in our industry, ensuring that both have successful and inspirational shows.”

Show attendees who identify Collision Repair and Refinish as their primary business interest has seen a 47 percent increase in show registration compared to the 2010 YTD figures.

For more information, complete with full expo and education session schedule, please visit www.semashow.com.

www.autobodynews.com CHECK IT OUT!

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 15

Continued from Page Front Page

Insurance Commissioners

izing the department’s anti-fraud division to focus on investigating insurance company fraud against consumers, rather than the other way around.

Doak fired six of the nine investigators of the anti-fraud unit, which had 142 open fraud cases, 120 of them involving complaints by insurance companies against policyholders. The anti-fraud division “had lost sight of its core mission,” Doak said, and it must now “focus on the white collar crime that threatens our policyholders.”

“Investigating Steve Regan policyholders is not a function of the Insurance Department,” deputy insurance commissioner Randy Brogdon said.

Steve Regan, chairman of the Collision Industry Conference (CIC) Governmental Committee, points out that insurers still have other ways to pursue the consumer fraud or other concerns they had brought to the

Oklahoma Insurance Department.

Regan said Doak was realigning a department that had essentially become an extension of insurance companies—without the authority to do so— rather than a regulator of insurers.

Buoyed by the apparent change in focus, the Oklahoma Auto Body Association is reportedly trying to increases its interactions with Doak’s office.

Meanwhile the Georgia Collision Industry Association helped develop a working relationship with Ralph Hudgens, that state’s insurance commissioner, by getting involved early in the election process last year. The association interviewed all the candidates for the office, both to understand their positions and to help make the candidates aware of the association and it’s members’ interests. When the commissioner ’s office formed a property and casualty advisory board Carl Garcia after Hugens’ election, GCIA had a seat on that board.

Shop owner Bruce Halcro, president of the Montana Collision Repair

16 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

Specialists, said “persistence” has been the key to his group’s working relationship with that state’s insurance division.

The commissioner’s office, Halcro said, has been good about issuing bulletins to shops and insurers about new state laws the association has helped enact.

Those laws include a prohibition on insurers requiring vehicle-owners to take their cars to a specific shop for an estimate or repairs, and a requirement that insurers establish criteria for participation in a direct repair program—and open the program to any shop meeting that criteria.

This year, Halcro said, a new law was passed that prohibits an insurer from “unilaterally disregard(ing) a repair operation or cost identified by an estimating system” that the insurer and shop have agreed to use to determine the cost of repair. Halcro said the association will be meeting with Insurance Commissioner Monica Lindeen’s office “to find out how she will regulate that.”

The California Department of Insurance last year issued a memo reminding insurers of the state’s regulation requiring that all non-OEM parts specified be equal to OEM in terms of quality, safety, fit and per-

formance, and carry permanent identification of their manufacturer.

“It has come to the Department’s attention that certain aftermarket bumper reinforcement bars may be significantly different in terms of like kind, quality, safety, fit and performance,” the memo states.

At the time, California Autobody Association Executive Director David McClune called the memo “a first step” toward the standardized parts traceability system the association said is necessary to enable a recall of parts found to be faulty or unsafe.

Though it operates essentially independently of the state insurance commissioner’s office, the Massachusetts Auto Damage Appraiser Licensing Board (ADALB) helps shops in that state deal with concerns about insurers, said shop owner Carl Garcia, who serves on the board. The ADALB consists of two shop representatives and two insurance representatives, all appointed by the Governor, and a fifth member, appointed by the state insurance commissioner, who serves as the chairman.

Garcia said one function the board serves is to oversee the licensSee Insurance Commissioners, Page 25

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Continued from Cover

NACE Schedule

Note also the ASRW Industry Forum, Weds. 4:30-7:00 pm, to attend 1.Trends in Collision Repair: A Futurist Discussion (collision) and 1. The Changing Climate of Insurance Agreements (collision)

October 5

Wednesday / 8am–12pm

Title: Inspecting Repairs for Quality Control (QUA01) / Instructor: Bob Zelano / Code: IC01

Title: Steel Utilized Structures, Technologies & Repair (SPS07) / Instructor: I-CAR Instructor / Code: IC02

Title: Collision Repair for Toyota, Lexus, and Scion Vehicles (TOY01) / Instructor: I-CAR Instructor / Code: IC03

Wednesday / 8:30am-10am

Title: How to Build a Better You / Instructor: Bryan Dodge, Dodge Development / Code: WE01NC

Title: Marketing for a DRP - Acquiring the Business / Instructor: Hank Nunn, AutoNation / Code: WE02N

Title: Creating a Positive Work Environment / Instructor: Felicia Funchess, BASF / Code: WE03N Title: Post Repair Problems Related to Undercarriage Issues, TPMS and ESC Lights / Instructor: John Shewbridge, Hunter Engineering / Code: WE04N

Wednesday / 8:30am-11:30am

Title: Ignite the Internet! Internet Marketing for Auto Repair Professionals / Instructor: Danny Sanchez, Autoshop Solutions / Code: WE05C

Title: Creating Raving Fans for Your Business / Instructor: Chris Chesney, CARQUEST Technical Institute / Code: WE06NC Title: The Mechanics of Estimating / Instructor: Mike Anderson, Collision Advice / Code: WE07N Title: Sherlock Holmes Diagnosis / Instructor: Jim Morton, Morton’s Automotive Technical Services / Code: WE08C

Title: Hybrid Technology (Powered by CARQUEST Technical Institute) / Instructor: George Lesniak, CARQUEST Technical Institute / Code: WE09C

Wednesday / 10:30am-12pm

Title: What to Do When an Inspector Knocks on Your Door / Instructor: Eric

18 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

Schmitz, KPA / Code: WE10NC

Title: Give Me Your Keys Please / Instructor: Tony Nethery, Colormatch Automotive Refinish / Code: WE11NC Title: Why Lean Implementations Fail in the Collision Repair Industry (Repeated on Thursday-TH10N) / Instructor: Tony Passwater, AEII / Code: WE12N Title:Design-BasedRepairs(RepeatedonFriday-FR10N)/Instructor:Richard Perry,Chief Automotive Technologies / Code: WE13N

Wednesday / 1pm-5pm

Title: Collision Repair for Ford & Lincoln Vehicles (FOR05) / Instructor: ICAR Instructor / Code: IC04

Title: Overview of Cycle Time Improvement for the Collision Repair Process (CYC01) / Instructor: I-CAR Instructor / Code: IC05

Title: Hybrid Electric & Alternative Fuel Vehicles (ALT02) / Instructor: I-CAR Instructor / Code: IC06

Wednesday / 1pm-2:30pm

Title: Building a Team That Works Without You / Instructor: Bryan Dodge, Dodge Development / Code: WE14NC

Title: Game On: Engaging the Gen Y Customer / Instructor: Ryan Schneider,

Insomniac Games / Code: WE15NC

Title: Back to Basics - Body Shop Financials / Instructor: Hank Nunn, AutoNation / Code: WE16N

Title: Winning With a Professional Road Map / Instructor: Becky Glauser, ContactPoint / Code: WE17NC

Wednesday / 1pm-4pm

Title: Winning Women Customers / Instructor: Margie Seyfer, Impact Presentations / Code: WE18NC

Title: Lean 3.0 - Flow = A Practical Path to Using Lean to Improve Process Flow / Instructor: John Swiegart, The Body Shop @, and Steve Trapp, DuPont / Code: WE19N

Title: I Object! / Instructor: Maylan Newton, E.S.I. / Code: WE20C Title: Farming Your Indsutry / Instructor: Aaron Clements, C and C Automotive / Code: WE21C

Title: Variable Valve Timing System Diagnosis (Powered by CARQUEST Technical Institute) / Instructor: Glenn Young, CARQUEST Technical Institute / Code: WE22C

Wednesday / 3pm-4:30pm

Title: Creating a Business That Works FOR You, Not Just BECAUSE of You /

Instructor: Robert Clements, E-Myth Benchmark / Code: WE23NC

Title: Positioning Your Shop for Success in the Internet Economy / Instructor: Maurice Sternemann, Demandforce, Inc. / Code: WE24NC

Title: GREEN - It Benefits People and Business (Panel) / Instructor: Trish Serratore (Moderator), ASE / Code: WE25NC

Title: Zeroing in on Profit Improvement Opportunities through Process Driven Repairs (Repeated on Friday - FR20N) / Instructor: Scott Peirce and John Spoto, 3M Company / Code: WE26N Title: The Changing I.T. Environment– The Clouds Are Rolling In / Instructor: Fred Iantoro, CIECA / Code: WE27N

Title: Stop Guessing and Start Knowing / Instructor: Tom McGee, ALLDATA / Code: WE28N

October 6

QUEST Technical Institute) / Instructor: Jim Cokonis, CARQUEST Technical Institute / Code:TH02C

Thursday / 2pm-5pm

Title: Introduction to Lean / Instructor:Bernie Blickenstaff, Pro FinishesPLUS / Code:TH03N

Title: Crash Course in Internet Marketing! Internet Marketing for the Collision Industry / Instructor: Danny Sanchez, Autoshop Solutions / Code:TH13N

Title: Increasing Technician Efficiency–It’s a Team Effort / Instructor: Ryan Kooiman, Standard Motor Products / Code:TH04C Title: The Changing Marketplace Continues...Now What Drives the Bottom Line?–Part 1 / Instructor: Bob Greenwood, Automotive Aftermarket ELearning Centre Ltd / Code:TH05C

Title: Essential Electronics (Powered by CARQUEST Technical Institute) / Instructor: Carl Schweikert, CARQUEST Technical Institute / Code:TH06C

Thursday / 12pm–1:30pm

Thursday / 3pm-4:30pm

Title: TPMS Update (Powered by CAR-

Title: Leading Change / Instructor: Felicia Funchess, BASF / Code:TH08N

Title: Accessory Belt Drive System Diagnosis / Instructor: Bobby Bassett, Gates Corporation / Code:TH01C

Title:Attitude is Everything! / Instructor: Maylan Newton, E.S.I. / Code:TH07NC

Title: Negotiation Skills–Key to Improved Profitability / Instructor: Hank Nunn, AutoNation / Code:TH08N

Title: Why Lean Implementations Fail in the Collision Repair Industry / Instructor: Tony Passwater, AEII / Code:TH10N

Title: Parts Procurement Tips for Estimators (Panel) / Instructor: Mike Anderson, Collision Advice and Ron Kuehn, Collision Business Solutions, Inc. / Code:TH11N

Title: Leading and Succeeding: Cultivating Leadership Skills That Benefit You and Your Organization / Instructor: Marcy Tieger, Symphony Advisors, LLC/ Code:TH12NC Title:Electrical Troubleshooting for the Body Shop Tech / Instructor: Jim Morton, Morton’s Automotive Technical Services/ Code:TH14N

October 7

Friday / 7:30am–10:30am

Title: The Power of Change / Instructor: Richard Flint, Richard Flint International / Code: FR01NC

Title: Simple Cycle Time Solutions / Instructor:Ron Kuehn, Collision Business Solutions, Inc. / Code: FR02N

Title: The Changing Marketplace Continues...Now What Drives the Bottom Line?–Part 2 / Instructor: Bob Greenwood, Automotive Aftermarket ELearning Centre Ltd. / Code: FR03C

Title: Gas Direct Injection (Powered by CARQUEST Technical Institute) / Instructor: Jason Virdin, CARQUEST Technical Institute / Code: FR04C

Title: Insurance and Collision Repair Issues 2012 / Instructor: Robert Passmore / Code: PCI01

Friday / 8:30am-10am

Title: Communicating With People Who Drive Us Crazy / Instructor: Margie Seyfer, Impact Presentations / Code: FR05NC

Title: Dismantle the Social Network! Social Media Marketing for the Automotive Industry / Instructor: Danny Sanchez, Autoshop Solutions / Code: FR06NC

Title: Blueprinting Basics / Instructor: Bernie Blickenstaff, Pro FinishesPLUS / Code: FR07N

Title: Practical Uses for eLearning in Collision Repair / Instructor: Dick Elder and Steve Trapp, DuPont / Code: FR08N

Title: Understanding Continuous Improvement / Instructor: Mike Ander-

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 19

Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca

www.autobodynews.com

Autobody News

Kia Sorentos Recalled for Faulty Front Airbags

FLORIDA • GEORGIA • ALABAMA • MISSISSIPPI

Subarus Recalled Because Moonroof Can Detach

The National Highway Traffic Safety Administration along with Kia Motors have announced a recall of more than 10,600 ‘07 and ‘08 Kia Sorento sport utility vehicles.

The problem: Faulty programming may incorrectly deactivate the front passenger airbag for adult riders, according to Consumer Reports.

The issue affects the Occupant Classification System (OCS) installed in 2007 and 2008 model year Sorento SUVs manufactured from June 2006 through September 2007.

The OCS is designed to turn off the airbag if a child or a baby seat is in the front passenger seat. Faulty programming, however, will also prevent the passenger airbag from deploying during a collision if a heavier adult rider is occupying the front seat. (The "passenger airbag off" warning light on the Sorento’s dashboard, however, does alert drivers and occupants of the deactivation.)

Kia is currently advising owners of affected Sorento vehicles to bring their SUVs into local dealerships where technicians will reprogram the OCS to operate correctly.

For more information, consumers can contact Kia’s toll free customer service live (800-333-4542) or visit the NHTSA website: www.SaferCar.gov.

Subaru is recalling 69,590 2011 Legacy and Outback vehicles because the moonroof glass can loosen and detach from the roof during driving, according to the National Highway Traffic Safety Administration.

"The moonroof glass comes loose or off," said NHTSA in its recalls summary of the problem. "The amount and position of the adhesive between the glass and retainer was inadequately applied. The moonroof glass can loosen and detach from the vehicle during driving, resulting in a potential road hazard for other vehicles, increasing the risk of a crash."

It is the second recall for the 2011 Legacy and Outback this week.

Earlier, Subaru recalled 195,080 2010-'11 Legacy and Outbacks because components inside the wiper motor bottom cover may overheat and could lead to a fire, according to NHTSA. In other documentation filed with the federal government, Subaru said it has received one technical report of the moonroof defect in the U.S. Subaru dealers will inspect the glass adhesion condition and either apply additional adhesive or replace the moonroof glass. The recall is expected to begin in October. Owners can contact Subaru at 1-800-7822783.

Subaru is recalling 195,080 Legacy and Outback vehicles from model year 2010 to 2011 because the bottom cover of the windshield wiper can overheat, causing the wiper to malfunction, according to Consumer Reports.

If the wiper is inoperable, then it can reduce visibility and increase the likelihood of a crash, or the overheated wiper can cause a fire.

The affected vehicles were manufactured from January 7 through May 20, 2011.

The safety recall is expected to begin in November. Subaru will notify owners and dealers will replace the

front wiper motor bottom cover assembly for free.

For more information owners can contact Subaru at 800-782-2783, or The National Highway Traffic Safety Administration’s Vehicle Safety Hotline at 888-327-4236 or visit Safercar.gov. The Subaru safety recall number is WVV-32.

Subaru Legacy and Outback Recalled for Windshield Wipers

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20 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

VW Recalls Jettas With Too Long Tailpipes

October 2011

Subaru/Saab Recalls Models for Suspension Corrosion

Volkswagen of America has a hot tip, literally, for owners of its latest Jetta cars. Be careful of your Jetta’s exhaust pipe, according to Consumer Reports.

Last week, the German car company along with the National Highway Transportation Safety Administration issued a recall for certain 2011-2012 model year Jettas.

The problem: stainless steel tips added to the end of exhaust pipes may extend the length of the factoryinstalled pipes beyond design specifications. This flaw may make it possible for a person to receive exhaust system burns—say, by inadvertently brushing an exposed leg against the exhaust pipe tips while unloading the trunk after a shopping trip. Approximately 30,300 Jetta models may have had these steel tips installed at shipping ports during the vehicles’ importation into America.

Volkswagen says in November it will notify affected owners to bring their Jettas into local dealerships. Technicians will inspect the Jetta’s exhaust system and, if necessary, replace the tips to bring the pipes’ length back to design specifications. For more information, consumers can contact Volkswagen’s toll-free customer care line (800822-8987) or visit the NHTSA’s website: www.SaferCar.gov.

Subaru is recalling 295,123 2002 to 2007 Impreza, 2003 to 2008 Forester, and 2005 to 2006 Saab 92X vehicles due to corrosion, which could cause the front lower control arm in affected vehicles to break, according to Consumer Reports.

The control arm could break at the hanger bracket if the bracket is exposed to salty and humid road environments, such as roadways covered in snow-melting agents. A broken control arm can cause a driver to lose control of the vehicle and increases the risk of a crash.

Affected vehicles were sold in or are currently registered in the following states: Connecticut, Delaware, Iowa, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Minnisota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin, and the District of Columbia. Affected vehicles were manufactured between Sept. 5, 2000 and Nov. 26, 2007. Subaru dealers will inspect for corrosion and either rustproof or replace the front lower control arms for free, depending on how much corrosion damage has already occurred.

Vehicle owners can call Subaru at 800-782-2783, or visit Safercar.gov.

The U.S. National Highway Traffic Safety Administration and American Honda have issued a recall of 20092011 model year Honda Pilot SUVs for concerns over the sport utility vehicles’ front seat belts, according to Consumer Reports.

Both the NHTSA and Honda report that the stitching that holds the driver’s and front passenger’s seat belt to their respective anchor webbings may be missing or incomplete.

Such flaws may allow the seat belt to detach from its anchor during a collision and increase the risk of injury.

Nearly 311,000 examples of the

popular Honda SUV may have this default.

Honda says it will begin to notify affected owners on or near October 3 and advise them to bring their Pilots in to local dealerships.

Technicians there will inspect the front seat belts and, if necessary, will perform the repair for free.

Pilot owners can obtain more information about the recall from American Honda (800-999-1009) and from the NHTSA’s website: www.SaferCar.gov.

Nearly 311,000 Honda Pilots Recalled for Front Seat Belts

www.autobodynews.com CHECK IT OUT!

Gonzo’s Toolbox

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com.

Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. 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.

When Something ‘Common’ Turns Out to be Not So Common with Gonzo Weaver

Ok, who out there knows everything about automotive repair? Who out there has seen it all, and wouldn’t be surprised if something so common to do now turns out to be not so common? Well, one thing is for sure—it ain’t me. I learn something new about this crazy car business every day. Especially when it comes to the electronics in today’s cars.

Even though I’ve spent a lifetime repairing these electrical nightmares that come into my shop, it still has its surprises. These days it’s not only the wiring, but some of the results I see from the scanners that can be just as unexpected.

My buddy Tom’s 2005 Cadillac Escalade EXT was having some problems. It’s a well kept, clean and in great shape ride. The suspension system was sending the driver its little notice across the dash message banner, “Suspension system service needed”.

“Sure, bring it in Tom. I’ll throw it on the scanner and see what’s going on,” I told my old pal.

I grabbed the Tech 2 with the CAN unit hooked up to it and headed to the car. Only one code, C0660 was stored—“Level Control Exhaust Valve”.

“Ouch Tom, that’s going to mean a new pump unit, because the valve isn’t something that is sold separately, as far as I know,” I told him, “But let’s run the diagnostic test and make sure.”

Tom and I are old friends, and he gets a kick out of watching the technical wizardry of the scanners, and the processes we as technicians and mechanics go through to make the repairs on these cars. He’s known me for so long he knows I’m not one to skip or guess at the repair. I like to know that what I’m doing is correct and as precise as it can be.

With Tom watching over my

shoulder (as he always does), I pulled up the diagnostics for the code on the shop PC. I printed a copy to carry out to the car, and Tom read step one of the diagnostics out loud.

“Perform a Diagnostic System Check. What’s that?” he asked.

“Read the codes, check for anything that looks out of place…stuff like that, and verify complaint,” I told him.

“Well, what do ya think?” he wanted to know.

“Let’s go to step 2,” I said.

Tom reads on: “Step 2 : 1.Install a scan tool.

2.Turn On Ignition, with the engine Off. 3.With the scan tool, command the exhaust solenoid On and Off Does the exhaust solenoid valve turn ON and OFF with each command?

Yes or No.” After several years using a scanner it’s not uncommon to activate a

solenoid or a component this way. A lot of times I use this same test to check transmission shift solenoids, or turn on a blower motor, maybe even activate the A/C compressor. There are so many components that can be activated this way, and it makes the job a lot easier once you get the hang of using the scanner. This was no different, or was it?

I found the section on the scanner and hit the ON button; instead of a “click” or a constant OFF on the screen information I got an error message. “No communication with Suspension Module”. I tried it several times, same results every time.

Tom looking a little puzzled, “It should have activated the solenoid or something right?”

“What was the question on 2 again, Tom?” I asked, since he was holding the paper work.

See Common, Page 23

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 21

Company Connections

with Ed Attanasio

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

It’s a Perfect Pair: Honda’s Collision Select Program & OEC’s CollisionLink® Memorable partnerships make for great history: Hope and Crosby; Mantle and Maris; Jobs and Wozniak; Donny and Marie; Tom and Jerry—to name but a few. American Honda and OEConnection’s (OEC) CollisionLink® program can now be included on that renowned list of successful alliances. Since 2009, the automaker’s wholesale parts program, Collision Select, has connected a large number of body shops to their Honda and Acura dealerships’ parts departments Bill Lopez via OEC’s Colliis OEC’s Director sionLink parts proof OEM Program curement system.

Management Through Honda’s program, the carmaker enables its participating dealers to assist body shops in enhancing their cycle times, alleviating shop returns, and streamlining parts ordering, but most importantly for repairers and parts managers, it allows shops to incorporate more Honda and Acura Genuine parts into their repairs.

To further support an already healthy working relationship, American Honda is providing additional support to its dealers, through an aggressive promotional campaign known as “A Perfect Pair,” designed to provide further exposure and ultimately sign up additional collision facilities nationwide.

OEC’s Director of OEM Program Management, Bill Lopez, 47, has seen the collision industry from disparate perspectives over the past 22 years.

After college he worked as a Claims Manager with Farmers Insurance, where he learned estimate writing, the importance of cycle times and the issues common to insurers, body shops and their customers. He also worked in business development with a paint manufacturer, an online estimating company and even joined an internet startup for a time in Silicon Valley.

Lopez manages all of OEC’s OEM relationships which include alliances with major nameplates such as Ford, GM, Chrysler, Nissan/Infiniti, Volkswagen, Southeast Toyota and the aforementioned Honda/Acura. Of this group, Honda/Acura, Ford, Nissan/In-

finiti and Volkswagen have exclusive agreements with OEC, which means their original parts programs can only be featured on a site such as CollisionLink, according to Lopez.

Lopez cites several major reasons why OEC has grown at a steady rate since it re-launched CollisionLink in 2006: “Since we have data access agreements with virtually all automakers, we’re able to scrub the parts to determine that in fact they’re the right parts for that damaged car Lopez explained. “CollisionLink is built on parts efficiency and order accuracy, which leads to fewer returns. And the end result is improved customer satisfaction, between the body shops and the dealerships. Those four things make up our core value proposition.”

According to OEC statistics, approximately 4,500 to 5,000 body shops use CollisionLink on a daily basis.

“There are somewhere between 35,000 to 40,000 body shops in the United States currently,” Lopez said. And we know that roughly 12,000 of them do the lion’s share of the business. So we work with almost half of these major players and continue to add more all the time.”

Lopez knows the ongoing struggle that exists between insurers and body shops based on his extensive experience. That's why he says he knows the value of CollisionLink for companies like American Honda and their dealerships throughout the country.

“One of the major metrics that insurance companies look at closely is parts utilization.Ashop can either use an OEM part, a recycled part, an aftermarket part, or a re-manufactured part. When an estimate is written, a percentage is assigned to one of these categories. It’s called ‘part content’ and it’s one of the many metrics used by insurance carriers to rate their DRP’s performance.

“If a shop has a 95% OEM parts content, an insurance company looks at that and says, ‘this shop is using a lot of OEM parts and it’s costing us money. They’re not doing a good job of managing their average repair costs, so I have to go in there and scold them.’ Of course insurance companies like to see more recycled, aftermarket, and remanufactured parts in their estimates, because the percep-

22 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

tion is that these parts are cheaper to purchase, but OEC’s CollisionLink is challenging that paradigm.”

Says Lopez, “Body shops are now telling their insurers, ‘sure, I’m using a lot OE parts in my repairs, but I’m not costing you any more, because my costs are in line with my peers. So, don’t worry about my repairs, because CollisionLink helps take advantage of all these OE programs, where I can essentially buy original parts at aftermarket prices.”

Educating insurance companies of CollisionLink’s core value proposition as well as its ability to administer OE discount programs is an important role for Lopez. “A large part of my job involves educating the insurance companies about CollisionLink... I tell them to take a look at our software, because they can get more OE parts on their

The parts crew at AutoWest Honda in Roseville, California uses OEC’s CollisionLink to get more Honda parts into their shop customers’ repairs.

From left, Parts Technician Dave Slay, Parts Technician Scott Munsterman, Parts Manager Ron Shaw, Parts Technician Kevin Duell and Parts Technician Raymond Albright

customers’ vehicles, thereby increasing their policy holders’ satisfaction while managing their repair costs.”

Getting dealerships to jump onboard is also a huge part of the equation.

Says Lopez, “It’s contingent on the dealership relationship. If the dealer responds quickly, [CollisionLink] works well and the body shop will use it. The dealerships pay for it, but it’s free to the shops, so hopefully the dealer is continually touting it and educating them about it.”

Once they take the time to look at CollisionLink and the OE programs it administers, body shops see the value and will at least consider it. “When the shops realize that they can use an OE part instead of an aftermarket part at the same price and retain the same margin, now they’re listening and the

light goes on,” Lopez said.

Lopez is pleased to be working with American Honda for a wide range of reasons. “Honda is an awesome company to work with, because they’re very methodical and everything they do is carefully planned and strategically positioned. We’re very fortunate to be an exclusive partner with Honda, because they are definitely in a class by themselves when it comes to collaborating with us and innovating with them. They’re worldclass and sincere in their efforts to provide optimum service to the marketplace that helps them to sell more parts, but in the end, everything they do is fair and well-thought out.”

The data shows American Honda is number one when it comes to selling parts utilizing CollisionLink.

“Their program parts are converted at a higher rate by more body shops using Collision Select via CollisionLink. Honda has a field service team that’s 100% dedicated exclusively to the success of their Collision Select Program and that’s why they hit great conversion numbers consistently.”

One Honda Parts Manager who believes in the power of CollisionLink is Ron Shaw, 49, who has been with AutoWest Honda in Roseville, Calif. since 1991. He runs a department employing 19 people and sells approximately $7 million in parts annually.

Although Shaw does not personally implement CollisionLink every day, he delegates those duties to a select group of his counter people.

“I have key people I rely on to coordinate a lot of the computer duties around here and they’re very good at it,” Shaw said. “Yes, there’s no doubt that CollisionLink is a useful tool. Once our body shops decide to use it, they definitely like it, but there are a lot of smaller mom and pop shops in this area that aren’t completely onboard for anything involving the computer. We try to educate all of the customers we’ve got, to let them know that if they sign up for this program and use it, they’ll be able to use more original parts. I’m sure they’re all game for that, because they want to use OEM parts whenever they can, as a rule. It’s absolutely a benefit See It’s a Perfect Pair, Page 33

Continued from Page 21

Common

“It wants to know if Yes, see Diagnostic Aids, If NO, go to step 3,”” Tom reads on, “But it doesn’t say what to do if there is no communication.”

Normally, if I was activating a solenoid I would listen for that “click”, if I didn’t hear the “click” I would read the screen to see if the activation was accepted, and see if it had switched from ON to OFF, but I’ve never seen the scanner go from perfect communication to “no communication” as soon as I tried to activate a solenoid. Just to double check things, I wanted to activate the compressor from the scanner, since it was on the same page as the exhaust solenoid. I tried it, same thing, “No-Comm”.

Ok, for all you techies out there— before you read the rest of this— what’s your first idea as to what’s going on with this vehicle? Is it a buss line problem, a suspension module problem, or is it merely the exhaust valve? No fair if you’ve already run across this, time to take your guess.

Ok, now don’t change your answer.

Here we go with the rest of the story.

I took a chance, since I had some sort of communication with the module. I thought I might as well look at the wiring diagram and see if I could activate the valve and the compressor directly at the module. On pin #B5— Dk. Blue—of the module was the ground signal from the module to the exhaust valve. I grounded the lead— “click” the valve worked, (and that was what the code was for) I then found the ground lead that activated the compressor relay; lead A10 – Lt. Blue—it too worked.

“Now Tom, that doesn’t mean that it’s working back there at the compressor, just because I turned them on, is no guarantee its pumping air into the shocks. You know, I’m not a 100% sure what’s going on, let’s get a second opinion. I’m thinking, module, and if it is the module we’ll have to reprogram it. But before I condemn the module, I think we should get that second opinion.”

Since I didn’t sound sure of myself, Tom said he would run over to the dealer and see what they said. I was concerned that my Tech 2 might be the problem. I couldn’t be sure

without finding someone else with the same equipment and do the same test.

Not only was it for Tom’s Escalade, but also for my sake. I wanted to be sure my scanner was working OK. It wasn’t even an hour later, and he was back over to my shop.

“They said it needs a compressor assembly and both shocks. Because they said the shocks are leaking.”

“Leaking? Tom, has it ever dropped since the pump stopped working?”

“No, never has” “I don’t think you need shocks, but I’ll have to lean towards the pump, but that doesn’t explain the “nocomm”, we both know the code said the exhaust solenoid was out—two different scanners same results there.

I’m sure they’re more familiar with it than I am, sounds like we should start with a compressor. I’m not ruling out the module yet, and I’m very positive that you don’t need shocks. But, there might be some feedback signal that the test isn’t telling me about that might be the cause of the “No-comm”.

Let’s change the compressor”.

Got a new compressor assembly and put it into place.

“Start it up Tom.”

As soon as he turned the key he knew it was fixed, the suspension message was gone, and the dash was back to normal.

“Tom, let’s back it out of the way of the lift and try the scanner again.”

We did just that, and wouldn’t ya know it, each and every time I activated the solenoid or the compressor it came on. The code was no longer current but was in the history file. I cleared the codes and ran thru the test again—all clear.

Ok, what did you think it was?

How many guessed that it wasn’t the exhaust valve that was bad, even thought that was the code. What it turned out to be was the pressure sensor mounted on the pump. When the info didn’t make it to the module, the module shuts down any and all operation— including, scanner capabilities. I wouldn’t have believed it myself, but I watched it happen right in front of me.

So if you run across a suspension system on one of these Escalades, and the test asks to activate the exhaust solenoid, and the scanner says “NoComm”, check that pressure sensor for its reference return signal. You can bet I made a note about this one.

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 23

son, CollisionAdvice / Code: FR09N

Title: Design-Based Repairs / Instructor: Richard Perry, Chief Automotive Technologies / Code: FR10N

Title: Ready, Set, Simplify: Tips to Simplify Your Work (and Your Life) / Instructor:Becky Glauser, ContactPoint / Code: FR11NC

Friday / 1pm-2:30pm

Title: Reality Repair Shop–What Would You Do? (Panel) / Instructor: T.J. Reilly, Same Day Auto Service / Code: FR12C Title: Immobilizer Service Opportunities (Powered by CARQUEST Technical Institute) / Instructor: Mark Olinger, CARQUEST Technical Institute / Code: FR13C

Friday / 3pm-6pm

Title: Survival Skills for Today’s Employer: HR Best Practices / Instructor: Cory King, Fine, Boggs & Perkins, LLP / Code: FR14NC Title: Finding the Opportunity in Every Challenge (Panel) / Instructor: Aaron Clements, C and C Automotive / Code: FR15C

Title: Hybrid Vehicle Service (Powered

by CARQUEST Technical Institute) / Instructor: Adam Robertson, CARQUEST Technical Institute / Code: FR16C

Friday / 4pm-5:30pm

Title: Understanding Legal Structures: The Key to Asset Protection and Tax Reduction / Instructor: Dan McNeff, Legally Mine / Code: FR17NC Title: Leadership Best Practices–How to Inspire, Delegate, and Coach Your Team to Success / Instructor: Mike Anderson, CollisionAdvice / Code: FR18NC

Title: Confident Selling–Do You Believe / Instructor: Maylan Newton, E.S.I. / Code: FR19NC

Title:Zeroing in on Profit Improvement Opportunities Through Process Driven Repairs / Instructor: Scott Peirce and John Spoto, 3M Company / Code: FR20N

Title:Customer Service Done Differently / Instructor: Tony Nethery, Colomatch Automotive Refinish / Code: FR21N Title: New Marketing Technologies to Level the Playing Field / Instructor: Joe Gibson, CustomerLink / Code: FR22C

Title: The Alignment Printout as a Diagnostic Tool / Instructor: John Shewbridge, Hunter Engineering / Code: FR23N Title: Market & Grow with Pizazz & Personality: 5 Easy Steps to Stand Out

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from your Crowded Market & Make Headlines / Instructor: Suzanne Shafer / Code: FR24NC

Title: Waterborne Products, Systems & Application (REF07) / Instructor: I-CAR Instructor / Code: IC09

Saturday / 7:30am–10:30am

Title: Strength Training–Meeting the Current & Future Demands of Your Business / Instructor: Larry Baker, LVB & Associates / Code: SA05N

October 8

Title: Wanted: Leaders That Lead! / Instructor: Richard Flint, Richard Flint International / Code: SA01NC

Title: Survival Skills for Today’s Employer: Compliance with Wage/Hour Laws / Instructor: Cory King, Fine, Boggs & Perkins LLP / Code: SA02NC

Title: Fluid Technology (Powered by CARQUEST technical Institute) / Instructor: Louie Nelson, CARQUEST Technical Institute / Code: SA03C

Title: Developing a Diagnostic Game Plan (Powered by CARQUEST Technical Institute) / Instructor: Jim Garrido, CARQUEST Technical Institute / Code: SA04C

Saturday / 8am-12pm

Title: Plastic and Composite Repair (PLA03) / Instructor: I-CAR Instructor / Code: IC07

Title:Collision Repair for Ford & Lincoln Vehicles (FOR05) / Instructor: I-CAR Instructor / Code: IC08

Saturday / 8:30am-10am

Title: How to Build Bulletproof Estimates / Instructor: Peter Kennedy, Collex Collision Experts, Inc. / Code: SA06N

Title: Pre-Production Processes to Increase Sales and Improve CSI and Cycle Time / Instructor: Robert Ricj, Gates Business Solutions / Code: SA07N Title: Accessory Belt Drive System Diagnosis / Instructor: Bobby Bassett, Gates Corporation / Code: SA08C

Title: CEO From the Inside Out / Instructor: Ruth Weniger, Powerful Business Strategies, LLC / Code: SA09NC

Title: Simple Front Office Staffing Solutions / Instructor: Ron Keuhn, Collision Business Solutions, Inc. / Code: SA10NM

Saturday / 1pm-5pm

Title: Hail, Theft, Vandalism Damage Analysis (DAM09) / Instructor: I-CAR

Instructor / Code: IC10

Title: Corrosion Protection (CSP01) / Instructor: I-CAR Instructor / Code: IC11

Title: Vehicle Technology & Trends (NEW11) / Instructor: I-CAR Instructor / Code: IC12

Continued from Page 16

Insurance Commissioners

ing of all appraisers, both at shops and insurers. He said that process includes a written estimating test on the fundamentals of estimating.

“If you don’t know how to use the manual and don’t understand the concepts, you’re not getting licensed,” Garcia said. “It’s amazing how many people aren’t passing the test because they don’t understand how to correctly use the manuals.”

Garcia said the ADALB and insurance division help enforce such regulations as a prohibition on running drive-in claims at a shop, and a requirement that insurers send an appraiser to a shop within three business days of a supplement request, returning the completed supplement within one more business day.

Texas Among the Most Active Texas has had perhaps the most active insurance division in terms of addressing shop associations in recent years.

For the second time within a year, the Texas Department of Insurance this past June issued a bulletin reminding insurers that a one-year-old state law prohibits them from “directly or indirectly” limiting auto insurance coverage by limiting policyholders from using a shop of their choice.

The bulletin also states that while an insurer is not required to pay more than a reasonable amount for repairs or repair parts, neither that nor policy language suggests that the reasonable amount for repairs or parts must be based on the amounts charged by DRP shops.

Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, said the bulletins were triggered in part by a survey of insurers the Department conducted with input from the Houston Auto Body Association. The Department asked about labor rate determination, shop referrals to consumers, DRP agreements, reimbursement caps or thresholds and other claims practices

by the insurers.

“The Texas Department of Insurance, and not the association, said, ‘Hey, this is existing Texas code, and based on some of the survey answers we’re getting (from insurers), it may or may not be being followed,’” Schulenburg said.

Elected vs. Appointed What do many of these states’ insurance commissioners have in common? Many are among the 11 such commissioners in the U.S. (including those in Kansas, Louisiana, North Carolina and North Dakota) who are elected to the position rather than appointed by a governor.

“If you operate in one of those 11 states where you have elected insurance commissioners, it seems like inquiries from individual or organization may be addressed a little quicker,” Regan said.

So is working toward making insurance commissioner an elected position a worthwhile endeavor for collision repairers hoping a state regulatory body more responsive to its needs?

The last time such a change was made in a state was in 1988, when

California voters passed sweeping insurance reform with Prop 103. Many long-time collision repairers in that state say the change to an elected insurance commissioner has been a positive one though hardly a cure-all.

Regan said elected or appointed, the key to getting an insurance commissioner attuned to the needs of the industry are tenacity and consistency.

“The most important thing is you have to ask,” Regan said, noting that a state representative can sometimes provide a good entrée into a commissioner’s office for shops. “I hear it all the time: divisions of insurance do nothing.

All that leads to really is people saying.

‘Why bother asking?’I’d like to flip that on its head. Let’s start asking. We’ve seen some success stories. If you don’t ask, you won’t get anything.”

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

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Continued from Front Page

NACE Relocation

likely to attract attendees who can correlate the trip to the expo with a family vacation to Florida. His absence from NACE in the past has often been due to the distance between Maine and Las Vegas, and he likes the idea of toggling the location between the east and west coasts.

Mike Morgan of Mike’s Paint and Body in Crawfordville, FL also approves of the new location. He last attended NACE in 2003 with his son, but in prior years, he took his employees and their families when the expo was held closer to home, such as Orlando, New Orleans and Atlanta, because it “was a great morale booster for the shop.” Now, he hopes SEMA will follow NACE’s example of alternating locations.

Shawn H. Moody also finds SEMA fascinating to attend when it runs concurrently with NACE, but he feels NACE has made a wise decision by not competing with SEMA because “we need to keep our industry focused.” He is currently com-

pleting his newest facility and needs to “tool up.” He is particularly interested in attending the exhibits about frame machines, CCC, measuring and resistance welders.

Kathleen Moyer also prefers the separation of the two events, and she is eager to see the new products in the industry, particularly in the computer line, as she likes to keep her shop thoroughly stocked and up-to-date with the newest and most effective technology.

Audra Fordin of Great Bear Auto in Flushing, NY will be attending NACE for the first time this October. She is excited to see what new technology is available or will be soon to “make the auto body shop run more smoothly with less footprint on the environment and to work on an auto body program with the Girl Scouts of America”.

When discussing what NACE could do to attract new attendees, Shawn H. Moody believes NACE has made two critical decisions that, if continued, will have a positive effect on attendance: “having NACE the first week of October is perfect timing… November is too late” as

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well as no longer competing with SEMA. He does suggest “if you really want to restore attendance, you need to lower exhibitor costs and also bring the paint manufacturers back.”

Mike Morgan suggests “there should be a national discussion on how to fairly set labor rates by some independent entity agreed upon by all.”

Overall, most auto body shop owners that do not plan to attend cite distance and cost as a reason, as well as the implicit cost of time away from their business. Domenico Nigro of Nigro’s Auto Body in Philadelphia, PA states “I think NACE would be a wonderful and worthwhile trip for my body shop business. Unfortunately, I just cannot get away from my shop for that length of time, nor do I have anyone that I can spare. This pains me because I know how helpful NACE could be.”

The NACE expo is a portion of Automotive Service and Repair Week (ASRW) which includes the International Autobody Congress and Exposition (NACE) and the Congress of Automotive Repair and Service

(CARS). In 2011, it will include over eighty educational sessions as well as exhibits showcasing products, services and on-floor competitions. The ASA Marketplace will showcase current car technology. Participants in NACE include BASF, DuPont and many other well-known brands.

Kathleen Moyer plans to attend the expo with two of her employees in 2011. She has been in the auto body industry for 37 years and has attended NACE every year since the expo began.

Moyer finds NACE extremely educational and claims “I’m going to try to attend as many years as I can.”

Shawn H. Moody’s opinion is “We’re in the collision repair business so for us, the choice is clear, and it’s NACE. The educational component of NACE alone makes it worth attending.”

ASA has announced that New Orleans, LA, will be the location of the next ASRW Service and Repair week. This will be the 30th anniversary of the first NACE expo and will follow the Thurs-Sat timeframe beginning on Oct. 10. NACE was last held in New Orleans in 1995; CARS was last there in the late 1980s.

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Inside Insurance with The Insurance Insider

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Let’s Get Some Independent Testing to Move the Parts Battle away from Sandbox Bickering “The Insider” is an auto insurance company executive who wishes to remain anonymous. This column reflects his opinion and not necessarily that of

Autobody News’ staff or contributors.

Since the arrival of the first non-OEM crash part from overseas a few decades ago, the debate has raged on over the value, safety and benefit of using these parts. It’s important to note that the rage hasn’t come from the consumer (you know, the person that actually has the parts installed on their vehicle).

So if the consumer doesn’t seem to care, who does and why?

The people who seem to care the most are the companies trying to sell parts. The reason is pretty simple: money. So the next time you see a press release, a simulated crash or a reaction to test with a recipro-

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cating saw involving crash parts, be advised that what you are witnessing is a demonstration of big business fighting for market share and profitability.

I’m sure there are some safety concerns that need to be addressed.

But if there were a significant enough problem, I would surmise that a lawsuit involving a few high-powered attorneys illustrating the faultiness of non-OEM crash parts and the resulting death of a vehicle’s occupants would have happened at least once in the past few decades. If you are aware of one, please send it to Auto.Insurance.Insider@gmail.com. Lacking that, what we really have are two kids who can’t play in the same sandbox.

The end result is a lot of propaganda, rife with chest-puffing, staged testing, wasted money, name-calling and an increased cost of parts to the consumer in order to offset the needless expenses—despite the car manufacturers trying to lead you to believe that it’s all in the name of safety.

Hey, automakers, don’t waste any more money trying to convince us that the parts aren’t safe. Do everyone a favor: show us the lawsuits and scientific data illustrating the fatal consequences of using non-OEM crash parts.

If you can’t, please spend your money some other way. Maybe donate it to a charity. Or here’s a suggestion: Consider reducing the price of your parts.

The non-OEM parts market can be divided among the “certified” or “noncertified.” Some might argue that they are one in the same, but I can assure that they are different most of the time. I should clarify: Sometimes a certified part is placed in a non-certified box. Why? Because it’s probably more economical for the parts manufacturer to produce and stock one part as opposed to two. However this represents a very small proportion of parts.

Unfortunately, certification doesn’t carry the high praise one might think.

Most shops scoff at certification as nothing more than a way to charge more money. That isn’t the case. Certification provides a set of guidelines and a quality standard that the parts manufacturers must achieve. The certified non-OEM crash parts have improved as a direct result of certification.

So I may have just told you everything you already knew about non-OEM parts. But here’s something maybe you haven’t thought of: Have you watched any of the recent car manufacturers’ crash tests involving non-OEM crash parts? Have you seen the now infamous reciprocating saw demonstration of a non-OEM bumper reinforcement being cut in half? Did you find it odd that the parts being tested were never identified? Yes, they told us the year, make and model of the vehicle for which the parts were designed. But did they tell us what type of certified part was used? Was it Diamond Standard? CAPA? Platinum Plus? NSF? My guess is that we will never know. Why? Because they probably didn’t use certified parts for their tests.

They used non-certified parts that are well-known throughout the industry as inferior. [Ed—See Toby Chess’ last column (Sept.) on clarifying the certification of parts tested.]

Here’s another suggestion. An organization that is not connected to the parts industry should pay to have an independent company blind-test a series of parts. There should be one sample for each type of part (OEM, non-OEM, and certified non-OEM). If there is more than one certification (CAPA and NSF, for example) for a given part, then each type of certified part should be represented.

The parts should be tested by an accredited engineering company not associated with any of the OEMs, parts manufacturers or distributors. The tests should include static and dynamic testing. I would even recommend the ultra-scientific reciprocating saw test.

Then we would finally be able to put an end this bickering between companies vying to discredit the other. We’d have test results that would be difficult to dispute.

If you don’t support my idea, send me an e-mail telling me why. Otherwise, I will assume my throngs of devoted “Insider” followers are in full support, prepared to rally and take the hill. Charge!

Got a comment or question for the Insurance Insider? Email him at: Auto.Insurance.Insider@gmail.com.

www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 27

On Creative Marketing The Ethnic Factor in Marketing with Thomas Franklin

It’s no secret that large numbers of recent immigrants now live in many areas in the United States. Most gather themselves into close-knit communities where their native language predominates. Fortunately, for quality collision shop owners, few of these immigrant communities have a quality body shop in their own ethnic area.

If there is a shop, chances are it’s rather primitive and not up to insurance claim quality. This opens the door for an astute shop owner nearby who will put someone on the payroll who speaks their language and can help market the shop to that community.

I’m familiar with a shop that opened in a community that had large numbers of Chinese families in the surrounding area. The shop owner hired an attractive Chinese lady who spoke fluent Mandarin and Cantonese for the front desk and he also hired a

Chinese-speaking estimator and parts manager. For several years this combination served him well. His Chinese personnel changed a few times, but he always kept some at his shop and enjoyed a significant number of jobs from the Chinese community.

With an economic downturn, when one Chinese employee left, he didn’t replace her immediately. Gradually, as the economy continued to decline, he lost all of his Chinese employees. He intended to replace one or two but it didn’t happen and little by little his Chinese community business fell away. Employees are a shop’s biggest expense. It’s understandable that adding any new employee is costly, but I’m certain that a careful analysis of the situation would reveal that the benefits of reaching the Chinese community would have more than paid for a Chinese speaking employee for this shop owner.

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses.

He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

Is there any alternative to hiring an estimator or front desk person who speaks the language of a local ethic group? Perhaps one economical solution would be to hire a technician who speaks the local language. I know of more than one shop where most of the technicians are Hispanic but where one is also used to handle phone communications with Hispanic speaking callers. Would this work for other ethnic minorities? Had the shop owner who had a Chinese parts manager used that person to also handle Chinese-speaking callers, he might have continued to pick up business from that community.

Assuming a shop owner decides to take advantage of potential business from an ethnic community near his or her shop, and is willing to employ someone who can speak the language, what is the next step? Fortunately, marketing to an ethnic group is often

easier than marketing to the general public. If there is an ethnic newspaper or other local publication, many people in that community will actually read it (as opposed to an increasing non-readership of general newspapers today). Ethnic readers are more likely to look at ads in the publication and respond to them. They will particularly respond to an ad or article that has a quote by someone in their community who says the body shop did an excellent job on their car and they were very satisfied.

These days many ethnic communities also have radio stations and even a TV station broadcasting in their own language. Once again, this is a captive audience that is more inclined to respond to ads and messages than the general public. Ethnic minorities also tend to be very cost conscious and likely to respond to discount or See The Ethnic Factor, Page 39

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Educational Schedule, Structure Released for New MSO Symposium At NACE 2011 Details surrounding the Multiple Shop Operator (MSO) Symposium—the newest event at Automotive Service & Repair Week (ASRW)—were released, including educational content, speakers and the full schedule.

The MSO Symposium will take place Thursday, Oct. 6, featuring an all-day program consisting of education and networking specific to MSOs. Sponsors of this highly anticipated event include CCC Information Services, Toyota Wholesale Parts, DuPont Performance Coatings, The Romans Group LLC, Enterprise RentA-Car and UniCure Spray booths. The MSO Symposium is hosted by Matthew Ohrnstein, managing director of Symphony Advisors.

The MSO Symposium will start with a networking breakfast, followed by a full day of panelists, keynote speakers, facilitated discussions, a CEO roundtable, Q&A sessions, and a concluding networking reception.

Schedule of Events: 7:30 am - 8:30 am: Networking Breakfast.

8:30 am - 10:00 am: General Session with Chris Brogan (social media guru) 10:20 am - 10:30 am: Welcome and Opening Comments.

10:30 am - 12:00 pm: Lessons Learned From The “Big 4”.

Facilitated by: Matthew Ohrnstein, Symphony Advisors.

Guest Panelists: Rollie Benjamin, ABRA Auto Body & Paint, CEO Cathy Bonner, Service King Collision Centers, President; Brock Bulbuck, The Boyd Group, CEO; Steve Grimshaw, Caliber Collision Centers, CEO. 12:00 pm - 1:30 pm: Networking Luncheon. Topic: “Money Talks: The Investor’s View of the State of the Financial Markets and What Does The Next Five Years Look Like For Owners of and Investors in Multiple Collision Repair Shop Operators”.

Keynote Speaker: Rex Green, BB&T Capital Markets, Managing Director.

1:30 pm - 3:00 pm: Scale Matters: The Evolving Relationship Among Insurers, MSOs, Suppliers and Information Service Providers.

Facilitated by: Vincent Romans, The

Romans Group.

Guest Panelists: Bill Brower, Liberty Mutual Insurance, AVP & Manager, Auto Physical Damage; Jim Dickens, CCC Information Services, Senior Vice President; Terry Fortner, LKQ Keystone, Vice President; Jim Gadberry, Nationwide Insurance, Associate Vice President; Shawn Hezar, Apex Auto Body, CEO; David Smith, Enterprise Rent-a-Car, Vice President 3:00 pm - 3:30 pm: Networking Break 3:30 pm - 5:00 pm: The Art of the Deal - Acquiring and Developing New Locations.

Facilitated by: Matthew Ohrnstein, Symphony Advisors Guest Speaker: John Walcher, Veritas Advisors.

Guest Panelists: John Gagliano, Collex Collision Experts, CEO; Harry Hall, Dupont Performance Coatings, North America Sales Manager; Pat James, Auto Body America, CEO; Brandon Thomas, Collision Revision, President.

5:15 pm - 7:30 pm: Closing Networking Reception.

“Attendees are going to get some

unique content directed at multiple shop operators who are intending to continue their growth,” said Ron Pyle, ASA president. “There will be some financial perspective, acquisition perspectives, operational- and insurance relationship-specific content, and content on how to acquire and develop additional locations if you’re an expanding MSO. It won’t be just one static format, but a variety of dynamic presentations facilitated by some of the leaders who are well-known within the industry.”

The MSO Symposium is produced by the Automotive Service Association (ASA), NACE and Symphony Advisors.

“We had quite a bit of input from MSOs in the development of the content. Our current NACE chairman, Ron Nagy, is a multiple-shop operator in Ohio and this is a passion of his to get this information in the symposium,” continued Pyle.

Registration to the all-day event is complimentary to qualified MSOs, but is limited to the first 100 regisSee NACE MSO, Page 39

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Continued from Front Page

Avery Claims Fraud

ceived $3 million in campaign contributions, then overturned a verdict against a contributor. The U.S. Supreme Court decided the judge should have recused himself because of the “serious risk of actual bias.”

But the latest petition argues that State Farm attorney and lobbyist William Shepherd was on the executive committee of Illinois Civil Justice League (ICJL), which recruited Karmeier and donated (through its political action committee) $1.1 million in direct and in-kind contributions to Karmeier’s campaign. Also at the time, an affidavit in the case points out, State Farm CEO Ed Rust was part of the U.S. Chamber’s leadership team that selected which judicial campaigns to target, and Illinois was identified as a “Tier 1” state to target. State Farm donated $1 million to the U.S. Chamber’s judicial election efforts, the U.S. Chamber donated over $2 million to the Illinois Republican Party, and that organization in turn bought $1.94 million in advertising for the Karmeier campaign

In 1999, the landmark class action lawsuit Avery v State Farm rocked the collision industry with not only its staggering $1.8 billion dollar judgment but also its implications for the viability of the aftermarket industry. Louisiana resident Michael Avery and four other named plaintiffs brought the class action in Illinois against State Farm. The original circuit court jury found in favor of the plaintiffs, and awarded the $1.8 billion.

This ruling was affirmed on appeal by the state appelate court, except that the judgment was reduced to $1.05 billion.

It wasn’t until the case got to the Illinois Supreme Court that the judgment against State Farm was overturned. The Supreme Court found that, because of the various types of language used in State Farm’s different insurance policies, it was an error for the circuit court to certify a nationwide class as to the contract claims. The court also held that the plaintiffs had failed to establish any breach of contract on the part of State Farm, or that they had even established any contract damages. To completely twist the knife in the plaintiffs’ case, the Supreme Court further found that only one of the five named plaintiffs had his vehicle assessed and re-

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paired in Illinois, and since he couldn’t prove he suffered damages, the class action judgment was completely reversed.

It seemed a slam dunk for State Farm.

In 2006 the Illinois Supreme Court was petitioned to review the case on the grounds that then-circuit Judge Lloyd Karmeier, declined to recuse himself, and then ruled for one of his biggest campaign contributors, State Farm. Justice Karmeier, who received over $350,000 in direct contributions from State Farms employees, lawyers and others, and over $1 million more from groups of which State Farm was a member or to which it contributed, won both the fundraising battle and the election.

Justice Karmeier then declined to recuse himself from Avery, which had been pending before the Illinois Supreme Court during the campaign. In the appeal, Justice Karmeier cast the decisive vote reversing a lower courts breach of contract verdict of over $450 million against State Farm. The Supreme Court denied the recusal petition and did not hear the case.

This month the Supreme Court was again petitioned by a group of Avery attorneys—including former TV actor, U.S. senator—and briefly candidate for

the GOP nominee for President—Fred Thompson allege State Farm lied and mislead the court, hiding its “extraordinary support of Justice Karmeier’s campaign and to thwart Justice Karmeier’s disqualification.” The petition asks the court to restore at least part of the billion-dollar judgment against State Farm on the grounds that months before siding with State Farm in the questioned August 2005 ruling, Karmeier refused calls that he recuse himself despite concerns that the hundreds of Fred Thompson thousands of dollars he allegedly got directly from State Farm for his campaign could taint his judgment.

State Farm’s lawyers have insisted the company itself gave no money to Karmeier, who this month’s petition asserted was recruited by the company to run for the court as a “pro-business candidate” and actually got $2.5 million to $4 million in contributions through State Farm.

Much of that money came through a political action committee (JUSTPAC)

bankrolled by insurance companies and others who lobby for damage award caps, with Karmeier well aware of State Farm’s involvement in his campaign, the plaintiffs’ filing said.

Such contributions “created a constitutionally unacceptable risk of bias such that (Karmeier’s) participation and vote to reverse the $1.05 billion judgment deprived (the) petitioners of their due-process rights,” according to the petition, which asks the state’s Supreme Court to rehear the case without Karmeier. Ironically perhaps, the plaintiffs also petitioned that Justice Karmeier not be allowed to participate in the decision as to whether or not he should be excluded.

“In the final analysis, this evidence not only substantiates, but confirms, once and for all, that State Farm deliberately lied to and misled this court, and concealed information from this court in 2005,” reads the filing. State Farm said in a statement that “this case was resolved by the Illinois Supreme Court years ago, and (the) plaintiffs’attempt to appeal to the U.S. Supreme Court was rejected.”

State Farm responded to the charge of excessive support of Karmeier in

2005 by flatly denying “engineering contributions” to Karmeier’s campaign “for the purpose of impacting the outcome of this case [Avery].”

Background on Avery v State Farm The original complaint was filed in July 1997 in a breach of contract case in which the plaintiffs alleged that State Farm promised “to restore plaintiffs’vehicles to their pre-loss condition using parts of ‘like kind and quality,’” but, it was claimed, State Farm’s uniform practice was to specify the use of nonOEM crash parts to repair its policyholders’ cars in every instance in which such cheaper parts were available.

At the core of the case in the Supreme Court appeal was the meaning of the term “like kind and quality” as used in State Farm’s insurance contracts, and whether, as the plaintiffs argued, the term meant “like kind and quality to OEM parts”—or, as State Farm argued, it meant “sufficient to restore a vehicle to its preloss condition.” However, in the circuit court, the plaintiffs also alleged that the non-OEM parts at issue in this case were ‘categorically inferior’ to their OEM counterparts. In the plaintiffs view, non-OEM parts could never sat-

isfy State Farm’s “like kind and quality” obligation. The plaintiffs argued: “As a practical matter, [State Farm’s] obligation could be met only by requiring the exclusive use in repairs of factory-authorized or OEM parts.”

The Illinois Supreme Court ultimately sided with State Farm as to the meaning of “like kind and quality,” noting that two main State Farm policy forms outlined the option to use nonOEM parts in the repair—or, required the insured to pay the cost of parts that resulted in “better than like kind and quality.” The inference was that better than must refer to OEM and therefore like kind and quality must not refer to OEM. Another key to the class action’s validity was whether or not State Farm’s contractual obligation was the same for all members of the class.

State Farm argued repeatedly that it had many different contracts, and that certification of the class action should not be based on a uniform, singular contract with insureds.

At circuit trial, the court and jury were charged with resolving the classwide question of whether State Farm, by requiring the uniform use of non-OEM

crash parts, and through the course of conduct it designed to conceal the true import of this practice from its policyholders, breached its contractual obligations and committed consumer fraud.

The court gave the jury instructions that State Farm’s contractual obligation was “exactly the same, whether State Farm promised to pay for crash parts of like kind and quality or promised to pay for crash parts which restore a vehicle to its pre-loss condition.” This disputed instruction became a key to the outcome of the Supreme Court’s reversal.

The circuit court trial began on August 16, 1999, and lasted several days, involving hundreds of exhibits and testimony by dozens of witnesses. Each side presented the testimony of experts and body shop witnesses in support of their respective positions.

The class-members were awarded $1.186 billion and State Farm immediately appealed the decision only to have the Appellate Court affirm the decision in 2001, albeit with an award reduced to just over $1 billion. In 2002, State Farm again appealed the case to the Illinois Supreme Court who eventually, in 2005, voted 4–2 to overturn the Appellate Court decision in favor of State Farm.

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Ford Motor Company Issues Response Statement to ABPA Crash Test Videos Ford Motor Company said that the recent report published by the Automotive Body Parts Association (ABPA), claiming Ford service parts are inferior to its production parts, is based on incomplete facts and only highlights the aftermarket parts industry’s lack of understanding about some aspects of the auto manufacturing process. The carmaker has issued a complete explanation. See coverage in Sept. issues of Autobody News, or online at autobodynews.com.

The ABPA report, published on September 9, cites engineering test results that show significant material differences between one Ford service part and the Ford production part it was designed to replace. Based on the result of that test, the ABPA concluded that Ford Genuine OEM Collision Replacement Parts are different than the original production components. The ABPA published the test results along with accusations that Ford was ‘grossly misrepresenting the truth’ when it claimed in a video that “Genuine Ford collision replacement parts are the same as those used

to manufacture the vehicle.”

Ford, however—acknowledging that the parts tested by NSF were indeed different—said the conclusion drawn by the ABPA is based on incomplete facts and that the 2005-2009 Mustang front bumper isolators tested by ABPA (through NSF) were both used for vehicle manufacturing as well as service replacement.

The carmaker said, “The parts referenced [by the ABPA] were used for both manufacturing and service replacement, and were thoroughly tested and proven to meet Ford’s specifications for the Mustang. The statements in Ford’s YouTube video are true and accurate and Ford stands behind all of them, including Ford’s claim that collision replacement parts are the same as those used to manufacture the vehicle.

“ABPA’s accusations highlight the aftermarket’s lack of understanding and difficulty staying current with the frequent running changes made by automakers in their quest to constantly improve vehicles,” Ford

noted. Here are the facts as presented

by Ford: Many part materials are exhaustively analyzed and tested by Ford during the vehicle development process to meet internal and external requirements for safety, quality, fuel economy, cost-of-ownership and breakthrough technologies. At Job 1 (first production assembly of a new model) for the 2005–2009 Mustang, specifications called for single-density polypropylene front and rear bumper isolators. However, as the vehicle had been tested and certified using a double-density polypropylene front bumper isolator, Ford maintained the use of that material until the vehicle could again be thoroughly tested and certified using the singledensity polypropylene front bumper isolator.

From Job 1 until January 18, 2007, the double-density polypropylene bumper isolator was used for both vehicle manufacturing and service replacement. Upon completing testing and proving the singledensity polypropylene front bumper

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isolator met all requirements and specifications, it went into vehicle production and was used for both vehicle manufacturing and service replacement. As both double-and single-density bumper isolators were proven forward- and backward-compatible, both were available for service replacement until stock of the double-density isolators was exhausted.

Ford said, “This chronology illustrates the lengths that Ford goes through to thoroughly test our Genuine Ford OEM Collision replacement parts as part of an entire system. These facts and Ford’s continuing concerns with the fit, finish, material composition and structural integrity of aftermarket collision parts reinforce Ford’s position that Genuine Ford Replacement Collision Parts are the right choice for consumers.

The carmaker concluded, “As the NSF testing speaks to material differences, it would have been more complete and meaningful if the aftermarket polystyrene isolator had also See Ford ABPA, Page 39

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32 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

Insurance Institute Says Collision Severity is Down for the Fourth Year in a Row

The Insurance Information Institute (III) has published updated figures showing that, as of 2010, average severity for automobile physical damage insurance claims has declined for the fourth year in a row. The Institute reports that while average physical damage claim severity had been rising steadily from 1999 to 2006, the average cost of a collision damage claim has now dropped in each of the past four years declining nearly 13 percent since reaching its peak in 2006. For 2006, III reported that the average collision claim severity was $3,189. That figure for 2010 is now $2,776, a drop of more than $400 average per claim over the past four years.

To put this another way, the average amount paid per claim has dropped approximately $100 per year since 2006.

Collision claims frequency however, has been on the increase over this same time period after having declined for many years. According to the latest figures published by the Institute, physical damage collision claims frequency in 2010 rose to 5.67 claims per 100 earned car years from a low of 4.88 claims per 100 car years in 2006.

A car year is equal to 365 days of insured coverage for a single vehicle.

Physical damage collision claims frequency in 2010 was the highest in more than 10 years. In 2009 frequency was reported to be 5.73 claims per 100 car years. In 2004 and 2006, the frequency for collision claims was as low as 4.88 per 100 car years, 14.8 percent lower than the 1999 reading of 5.73.

Japan Quake Had Little Affect on Parts Supplies

Six months after the devastating earthquake and tsunami struck Japan, fueling concerns about shortages of replacement parts and other issues for U.S. collision repairers, there’s little indication any of those problems materialized. As it did last spring, CCC Information Services recently analyzed its data for the average number of days it took from parts being ordered to being received, and it saw no significant changes for the Japanese makes. “From everything I’ve seen and read, none of the automakers or their dealers experienced any significant (parts) disruptions, even on a small scale fashion,” CCC’s Susanna Gotsch said.

SERRA MAZDA

Insurer Plans to Improve NonDRP Services with Uploads

Ameriprise, which sells policies in 44 states (including through Costco) and is the 35th-largest personal auto insurer in the U.S., has launched a new “Shop of Choice” program to allow shops outside its direct repair program to upload estimates and photos to the insurer. “The supplement process is the most broken and we feel this will eliminate that,” Kim Flisakowski, director of claim operations for Ameriprise, said. The company says customers filing a claim will still be encouraged to use a shop in Ameriprise’s “Values in Partnership” DRP. But if they don’t, they will be given a control number and told about the Shop of Choice claims processing website, which is built around a NuGen IT system. A shop that is registered on that system (a process that takes 10-15 minutes) can then upload estimates, photos and supplements to Ameriprise, and check online for status updates. Registering does not require any parts discounts or other concessions, but does require the use of one of the Big Three estimating systems. While payment will still go through the customer, Ameriprise says it may add direct-to-shop payment to the system.

Continued from Page 22

It’s a Perfect Pair

to them, especially since they don’t have to pay a dime to use it.”

AutoWest Honda Roseville is adding more body shops to CollisionLink all the time. “We have something in the area of 30–40 shops that we’ve signed up. Traditionally, the big box body shop chains sign up and use it enthusiastically, while many of the smaller shops have resisted using the tool. We’re able to convert aftermarket or recycled parts to OE parts about 96% of the time,” Shaw said.

How is Shaw able to get body shops to use CollisionLink, especially when they’re reluctant to try it? “Our outside sales person Suzie Troth is constantly visiting body shops to tell them how much CollisionLink can benefit their business. Then it’s just a matter of them perceiving the value.

We also try to educate them over the phone, stressing the ease-of-use and the fact that it takes all of the guesswork out of the process. It quantifies precisely what the parts are and what the prices are—so we can be sure we’re comparing apples and apples.”

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www.serramazda.com www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 33

Parts Profiles

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

What Happens When OEMs Really Support Body Shops I have written about two dealerships opportunities from the dealership.

“Quality parts” is the key phrase about that for actively supporting the ■ Actions See Parts Price Increases (PPIs)Announcements be- which results in a quality repair. collision industry recently, the Lasher Auto Group, and Automaker and with Larry Williams

Acura of Westchester, and their com- tween estimate and MSRP on ColliJeremy Hayhurst mon ground towith success.

They both sionLink orders. have a positive attitude. They take ■ Automatically detects and creates pride in their work, and enjoy taking fax orders for dealers not accepting good care of their customers. They de- online orders. liver their service along with the parts.

If you need more than features to Their customers know that their busi- be convinced that CollisionLink can with Jeremy Hayhurst ness is valued, and become loyal parthelp your bottom line, consider this onners of the dealership. Everyone is line comment from Mike “Smitty” making money and staying happy!

Smith, Shop Supervisor at Fox and Fox This commitment to customer Body Shop and Service in Ft. Wayne Inservice would be impossible, how- diana. Smitty said: “Using Collisionever, without support from the manu- Link we’re definitely fixing cars faster facturer. In this case the manufacturer for several reasons. One, our parts reis Honda/Acura, and the support is turns have gone down, because Colliawesome. Once there was a time sionLink parts orders are more accurate, when manufacturer’s parts reps con- so we have the right parts when we sidered the dealers as their customers; need them. Two, using CollisionLink looking no further for more business. our dealers price-match OE parts But times have changed. Now, against aftermarket, and everyone Honda/Acura has a division, with knows that OE parts fit better and infourteen field representatives, actively stall faster. Three, the parts ordering helping their dealers service their col- process is much faster and streamlined, lision customers. freeing me up to stop potential probAmerican Honda’s Collision Se- lems. I now spend more time in the lect Program is a wholesale support shop with the technicians helping them initiative, available to both Honda and stay on track to repair cars that have with Lee Amaradio Jr.delivery dates. So, in all, I’m Acura dealers, and supported

by OE- short Connection’s CollisionLink product, spending less time on parts managewhich is OEConnection’s online parts ment, our shop is pushing car repairs procurement and management tool. through faster, were building customer CollisionLink is supported by GM, loyalty, and that’s all increasing revenue Ford, Chrysler, Nissan, Toyota, In- for the shop.” That’s CollisionLink. finiti, Lexus, Honda and Acura parts Through the Collision Select proorders. Some of the major benefits of gram, Honda says participating dealCollisionLink are: ers are able to help independent body ■ Online OE parts ordering for every shops improve vehicle repair cycle make and model, for any dealership time, reduce shop returns and adminselling OE crash parts. istrative times, improve parts procure■ Parts are automatically VIN validated ment work flow, and give shops an or highlighted for dealers if wrong opportunity to use more Honda and ■ Up to the minute order tracking, conAcura Genuine parts. firmations and status on one screen.

This division is still young (it ■ Process parts orders using all the launched two years ago), still growmajor business management and esti- ing, but has already made an impact mating systems. on the collision repair industry. It ■ No more wondering if a fax was restarted out by asking what was needed ceived. And less on hold phone wait time. and how they could help. Usually cor■ Faster processing by dealerships porate information retrieval results in means faster turnaround and cycle time. a mountain of reports, and little else.

■ Send and receive photos and But, this time the end result was acschematics. tion! Whole-hearted participation in with Dan Espersen ■ Gives dealers the chance to offer OE the CollisionLink program helps parts at competitive pricing – they see every one of their dealers. These dealnon OE parts on orders. Plus, you see ers can now supply quality parts at when OE parts have possible discount competitive prices to their customers.

Autobody Tech

I-CAR Tech

Amaradio Explains CRA

Consumer Callout

ALL OEM Information

34 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

A quality repair results when the parts and workmanship combine with pride of craftsmanship to create a finished product which is indistinguishable from the original. In this context, I would use the word remanufactured; rather than repaired. As close as possible, the damage is erased; as if it never happened. The vehicle owner receives exactly what they expect, and more.

This theme, customer service, guarantees return business and referrals.

Speaking of referrals, both Honda.com and Acura.com have a body shop referral system on the internet. American Honda Motor Co.’s Body Shop Recognition program has reached 500 participants in 40 states, the company announced this spring.

This site is currently being viewed more than 6000 times a month! Referrals from the manufacturer! How

The collaborative program involves OEConnection, DuPont Performance Coatings, PPG, BASF, Sherwin-Williams and AkzoNobel, which work together to create a supporting initiative for American Honda’s wholesale program, Collision Select.

Both dealer-owned and independent shops are eligible for the recognition program, but a Honda or Acura dealer participating in Collision Select has to sponsor them. Shops also have to participate in their paint company’s performance enhancement program and adopt CollisionLink.

Participating shops receive a plaque and have their contact information placed on a corporate American Honda website in a searchable database accessible by Honda and Acura owners.

See What Happens, Page 39

BASF Names Vitor Margaronis Marketing Director for North America Automotive Refinish, OEM, and Industrial/Commercial Transport Systems Business BASF Automotive Refinish announced August 31 that it has named Vitor Margaronis as Marketing Director for BASF Coatings, North America. In his new role, Vitor is re-

year history that began at BASF in Canada. During his tenure, Vitor has held several management level positions with increasing responsibility in the areas of marketing, finance, logistics operations and project management.

Vitor has a Bachelor of Commerce degree and an MBA in Marketing from McMaster University in Hamilton, Ontario.

“With his deep understanding of BASF businesses, customers and markets, Vitor is an excellent addition to our team.

His varied and diVitor Margaronis, BASF’s new Marketing Director verse experiences across sponsible for directing the marketing BASF position him well for continued activities of the BASF Automotive success,” said Juan Carlos Ordonez, Refinish, OEM, Industrial and Com- Senior Vice President, BASF Coatmercial Transport Systems busi- ings North America. nesses.

To learn about BASF automotive Vitor comes to the BASF North refinish products, visit: America Coatings team after a 10- www.basfrefinish.com.

August Sales: Chrysler Up 31%, GM up 18%, Nissan up 19.2% Chrysler Group LLC’s U.S. sales were up 31 percent last month, the company’s best August since 2007, the Detroit News has reported.

Chrysler’s retail sales surged up 42 percent as the automaker continued to wean itself off the less profitable daily rental fleet business.

“In spite of a volatile market, Chrysler managed to significantly outperform the industry again in August with retail sales up 42 percent,” said Reid Bigland, head of U.S. sales for Chrysler Group. “Last month also represented our 17th consecutive month of year-over-year sales growth, and on the back of our 16 all-new or significantly-refreshed products I see that trend easily continuing into the fall.”

All of Chrysler’s brands posted impressive gains during the month, which was Fiat’s best yet. The 2011 Jeep Compass was a particularly strong performer, with sales up 130 percent year-over-year.

Altogether, Chrysler sold 130,119 vehicles last month, compared to 99,611 in August of 2010.

GM saw an 18 percent increase in U.S. auto sales in August, despite a month rocked by a hurricane and turmoil on Wall Street. GM sold 218,479 vehicles last month and consumers

bought vehicles of all types with car sales up 18 percent, crossover sales increased 17 percent and truck sales grew by 18 percent over the same period last year.

“Our balanced portfolio of trucks and fuel-efficient vehicles like the Chevrolet Cruze, Chevrolet Equinox and GMC Terrain are helping GM continue to gain market share, which has now increased in seven of the past eight months,” said Don Johnson, vice president, U.S. Sales Operations.

“We’re carrying good momentum and we’re cautiously optimistic that we’ll see U.S. economic growth improve in the months ahead.”

The Chevrolet Cruze continues its strong streak with sales exceeding 20,000 for the fifth consecutive month.

“The ‘new GM’ is making the stridesOriginal it BMW promised.

About the only Parts negative signs on GM’s spreadsheet of August sales were for models being discontinued or soon to be replaced,” bmwusa.com commented Edmunds.com Senior Analyst Michelle Krebs.

Nissan Motor Co. reported a 19.2 Original BMW Parts percent rise in sales of Nissan and Infiniti vehicles in August, to 91,541.

Compared with most of its Japanese ribmwusa.com vals, Nissan has recovered faster from disruptions caused by the March quake.

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 35

I-CAR Tech

This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.

Three-Dimensional Measuring Equipment–is it Really Necessary?

I-CAR has been emphasizing the importance of three-dimensional measuring since its founding in 1979, but is it really required to repair a vehicle?

After all, three-dimensional measuring systems are considerably more expensive compared to the much more affordable tape measure or tram gauge (see Figure 1).

A Real Life Experience Recently, our friend Sam (not his real name, but his story is), found himself having to get estimates for his collision damaged car. The first collision repair facility was chosen, and the vehicle was brought in for an estimate.

During the estimating process, Sam asked what type of three-dimensional measuring system the facility with Lee Amaradio Jr.The estimator promptly replied used. “none.” Interesting. The car didn’t look structurally damaged, I’m sure the estimator was wondering why Sam even cared.

So, it was on to the next repair facility. While talking to the estimator, Sam inquired again, “What type of threedimensional measuring do you use?”

In a too familiar response, the estiFigure 1 - Tape measures and tram gauges mator replied, “We don’t really have one.” (top) are used for point-to-point measuring The next stop was the last repair while computerized measuring systems (bottom) provide three-dimensional measurefacility scheduled to write an estimate. ments Sam watches the estimate being writ-

Amaradio Explains CRA

Consumer Callout

ten and asks the question, but this time, the answer is different, “We have a computerized measuring system.”

The quest was over. Sam knows who’s going to be repairing his vehicle.

The question is, why is it so important for Sam to have a shop that can perform three-dimensional meas-

Figure 2 - A fixture system, such as this Celette bench, is used to perform three-dimensional measuring

urements? The answer is simple.

Three-dimensional measuring pro-

vides an accurate assessment of damage. This allows collision repair technicians to document vehicle measurements before and after the straightening process, ensuring Sam that his vehicle was fixed properly.

In Sam’s case, it turned out that his vehicle’s front rails were up 20 mm from specification. This wasn’t found until the vehicle was placed on a threedimensional measuring system for repair. If a repair facility was using a tram gauge or tape measure during the repair, would this have been caught?

The vehicle looked within specification, and there were no obvious panel gap misalignments or other visual indicators that provided the estimator with clues to the structural damage.

Making the Investment Even in the best economic times, a three-dimensional measuring system is a substantial investment for one

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Automaker Actions and Announcements 36 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

with Janet Chaney

piece of equipment. Is it worth it? Joe Blanton from Car-O-Liner was essentially asked this question. Is cost an issue to shop owners when deciding to make a purchase? Joe states that the value of time savings and increased productivity eventually offset the initial investment.

Another reason to invest in a three-dimensional measuring system is the assurance that the vehicle has been restored to the proper specifications.

Then there’s keeping up with changing vehicle technology. With advancements in vehicle design and increased use of high-strength steel, collision energy is following a different load path. The load path is essentially the route collision energy travels through the vehicle. This new path means that collision energy is traveling into areas not commonly seen before, deeper into the vehicle.

Additionally, these vehicles often have a tighter tolerance, requiring greater emphasis on restoring the original vehicle specifications for proper vehicle performance. Therefore, threedimensional measuring can be a huge benefit in identifying any misalignment.

Some vehicle makers make spe-

cific recommendations regarding the use of three-dimensional measuring equipment for vehicle repairs.

General Motors, for example, states in their part-specific collision repair procedures to “use three-dimensional measuring equipment.”

Chrysler states that when restoring a collision damaged vehicle, that “all structural distortion has been identified and corrected using appropriate

Figure 3 - Point-to-point measurements are often used during damage analysis to identify potential structural damage

structural straightening equipment (“frame rack”) and a three-dimensional measuring system.”

Other advantages of three-dimensional measuring include accuracy, reduced time to make the measurements, and the ability to re-

peat and verify specific measurements so they can be documented both before and after repairs are complete.

Three-dimensional measuring is also ideal for damage analysis. Providing printed out measurements with the damage estimate to the technician helps with ordering parts and calculating repair times, reducing supplements.

According to Richard Perry of Chief Automotive Technologies, when asked what message he would like to communicate to the collision repair industry about three-dimensional measuring, he stated, “Moving forward, measuring the vehicle with structural damage during the estimate should become as common as getting the VIN. This will reduce the need for supplements and reduce the cycle time for the vehicle’s repair.”

Making three-dimensional measurements requires understanding that all measuring points are based on length, width, and height. If using a computerized measuring system, these planes are electronically formulated using the measurements of the center section, and all the other measurements that are taken are relative to

those planes.

Mechanical systems, or fixture systems, perform a similar function, but use the tip of the measuring pin and a vehicle reference hole to determine alignment (see Figure 2). Point-to-point measurements are very good during damage analysis to identify potential structural damage (see Figure 3).

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www.autobodynews.com | OCTOBER 2011 AUTOBODY NEWS 37

Handling People, Including Insurance Adjusters, Means Negotiating Effectively

by Bob Spitz—Management Success

I was talking with a fairly new shop owner the other day about the state of his business and the challenges of getting a new business off the ground.

During the talk the subject of insurance adjusters came up.

This particular owner, like many in the business, has a passion for his art. He is a master painter and does beautiful work. Like many new operators, he has some body techs but he is still the one who does the painting. He has goals. He wants his shop to be the best collision shop in his market and I have no doubt that with his drive he might make it. The reason I say might is due to the fact that he is currently stuck working in the back and trying to run the business which includes writing his own estimates.

He is experiencing his first case of true stress and it is starting to manifest itself in the way he handles people. He looks at adjusters as an enemy who is there to drive him crazy and whittle down his profits to the point where he is not making any money.

I asked him if he provides a space for the adjuster to work while the adjuster is in his shop. His reply was instantaneous and filled with antagonism.

“Why should I do that? He is not here to help me!” I knew immediately that he was looking at the adjuster as an adversary and not a potential ally.

I was not trying to find fault with him. He is a well trained and experienced painter with a lot of knowledge and talent in that area. His problem is that, he is not trained in the fine art of handling people, which as an owner is more important than his skills as a painter. As a result he is trying to handle the wrong problem in his business.

Mishandling adjusters will not improve his bottom line!

I got him to calm down and take a look at what an adjuster does. How the adjuster plays the fine balancing act between the insurance company and the shop which has the customer’s interests as the priority. I got him to also look at that fact that he needs the adjusters’ help in accomplishing his goals and yelling at people and being belligerent is probably not the best

Finish it like a Masterpiece

way to win someone over.

I agreed with him that adjusters are not all sweethearts. Some are a real problem. They can be difficult and unreasonable. Maybe they just got chewed out by the owner of the last shop they were in. It doesn’t matter.

You need this person to help you get what you need. Maybe just offering them a bottle of water and a place to sit down for a moment to talk about anything other than the business at hand would help. Not all of them are out to get you. In fact if he would put down his sword and shield he might find the majority of them are just trying to do a difficult job the best way they know how.

Interacting effectively with people is not only a skill; it is an art form that has to be mastered by anyone trying to run a business. There are many things to know about business. Understanding personal relationships and knowing how to negotiate is among the top items on the list.

Very few people are born with these skills, they have to be learned.

I asked him “What if you had the

same ability in dealing with adjusters that you have in dealing with the cars?

Where would you be?” He stopped dead in his tracks.

I continued, “You are a talented painter who only knows how to do the job one-way, the right way. You’re being upset with the adjuster is because you feel he is trying to get you to do the job in a lesser way—a way that will not satisfy you or the customer.

You do not have the skill to get the adjuster to see it your way. This leaves you with limited choices of short-cutting, or accepting what is being offered which reduces your profit. Neither one of these is acceptable, nor should they be. You are going to do it the right way regardless.”

“Two things need to happen here and happen quickly or you will burn out and never achieve your goals. The first is you have got to learn how to recruit, hire and train the right people so that you can get back out of the paint booth and run your business. You are killing yourself trying to do both. You can get short fused when you have to stop what you are doing to handle the

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38 OCTOBER 2011 AUTOBODY NEWS | www.autobodynews.com

insurance adjusters. Don’t start the conversation with the adjuster with a negative attitude.

“The second thing is you have to learn is how to deal with people and negotiate in order to get what it is you need to do the job right and put money in your pocket.” His shoulders sagged and he said to me, “Where do we start?”

I am happy to report that this particular shop owner did not blow up his business and is now in a much better condition. He smiles more. He is well on the way to achieving his goals.

Collision shop owners are in the people handling business. If you are not achieving your goals, feeling fed up and frustrated, give Management Success a call—we can help.

Management Success!, is a company that specializes in training and consulting the independent automotive repair shop owner. Bob tours the country as an educational speaker and writes numerous columns. Additional articles on management can be read online at www.managementsuccess.com ©2011 Management Success! All Rights Reserved.

Continued from Page 34

Continued from Page 28

I just read an article in the Los Angeles Times saying that the repair industry has, in some cases, benefited from the recession. No, that doesn’t mean generous insurance settlements for older cars, but rather that people are still fixing their old vehicles rather than replacing them. The average car in the U.S. is approaching ten years old! This has caused some shops to see an increase in their customer pay business. Once again, customer service is key. Shops that keep their customers happy are always the ones that survive and grow, no matter what the economy dictates.

Once again, I congratulate the Lasher Auto Group, Acura of Westchester, and the support group at Honda/Acura Motor Company, for their success in these troubled times.

I invite any others who also have a story of success to contact me, and join the Distinctive Dealerships Group here at Autobody News.

For more information go to the http://oeconnection.com site and check it out. Also honda.com and acura.com.

coupon offers. Ad spots and program opportunities may also be less expensive. Once a shop owner has decided to pursue business from an ethnic community, he or she may find some amazing marketing bargains. But once again, it will usually be essential to hire that key employee who speaks the language and is familiar with the customs, likes and dislikes of people in this community.

One more concern. People in ethnic minority groups are often cautious about whether an offer is genuine. A shop owner has to be prepared to run an ad or make a promotional effort for a longer period of time.

There is also the “rule of three.” If you see an ad or announcement or article in three different places, you are also more likely to respond. Immigrants often view the purchase of a new vehicle as a long-term investment. The ones that buy new have great pride of ownership and will probably tend to get small dents, scrapes and scratches fixed. And that is very good news for a collision shop

What Happens

AUTOBODY MARKETPLACE

ER K C RA C Y L PO

Waterborne Wax and Grease Remover SINCE 1985

The Ethnic Factor

owner who has spent the time and money needed to get a solid foot in the door of a local ethnic community. If it’s done right, it’s certain to pay off.

Continued from Page 32

Ford ABPA

been tested and compared to the Genuine Ford polypropylene isolators.”

The statement refers to the relatively small difference between the single-and double-density polypropylene isolators tested by the ABPA as opposed to the more extreme difference between the OEM high density polypropylene isolators and the substitute aftermarket isolators made from polystyrene—the white “styrofoam” that coffee cups are made from.

Continued from Page 29

NACE MSO

trants (limit of three people per company). Qualified MSOs who wish to register may call (972) 536-6318 or email shausler@hanleywood.com. Attendees are encouraged to register quickly as availability is limited.

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