October 2020 Southeast Edition by Autobody News

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AUTOBODYNEWS.COM Vol. 11 / Issue 8 / October 2020

Toby Chess: 40-Plus Years of Service to the Industry He Loves

Toby Chess Says SOPs, Industry Training & Networking are Key to Body Shops’ Future Success

by Ed Attanasio

by Stacey Phillips

If you’ve been in the world of body shops for more than a few years, you likely know the name Toby Chess. He’s the smiling bearded guy who brings gifts to people—and no, he’s not Santa Claus. His story all began in a salvage yard and has turned into a fantastic career of teaching, mentoring and helping the collision repair industry and other people on many levels. Chess, 75, has given his life to others through several channels and

Several weeks ago, a local body shop owner asked Toby Chess to help set up a welder to repair an aluminum deck lid on a Mercedes-Benz. When Chess arrived at the facility, he quickly realized the technician didn’t have an understanding of the process to repair the vehicle. As a result, Chess created a Standard Operating Procedure (SOP) for the shop, laying out the steps to get the job done. Since then, Chess has created more than 30 SOPs for the collision repair industry and has been

See Toby Chess, Page 12

Toby has been involved in First Responders’ auto body extraction for many years.

‣ See Nonprofit Finds, Matches Living Organ Donors , Page 50

Toby’s SCRS presentations are often hands -on and use attendees to push concepts.

sharing them with shops across the country. See Training & Networking, Page 16

• Toby Chess: Best Practice for Air Conditioning Repair, R&I and Replacement, Page 50 • Toby Chess: Best Practice for Pre and Post Scans, Page 50

Expert Predicts Auto Industry Could Take 2 Years to Rebound to Pre-Pandemic Sales Levels

Luxury Vehicle Sales Expected to Rebound from Depression

by Dave Boucher, Detroit Free Press

by Kimberly Hurley, CBT News

It’s going to take at least two years for auto manufacturers to restore the sales and production numbers seen before the start of the coronavirus pandemic, an industry expert told Michigan lawmakers in Lansing on Sept. 2. Despite successful efforts from suppliers and manufacturers to keep their doors open and employees safe, staffing shortages and some overall drop in demand means the industry

The coronavirus pandemic has not been beneficial to most industries, and this definitely includes the auto industry. According to Cox Automotive, the Kelley Blue Book Brand Watch™ reported that for Q2 2020, luxury vehicle sales dropped 35% and hit their lowest level in the past two years. The past couple of years had already seen a decline in luxury sales, with just 34% of consumers considering one, down from 39% in Q3 2018. There are various reasons for this, but for starters, lower-priced non-luxury vehicles are starting to be manufactured with technology previously only featured in luxury vehicles. But the news isn’t grim. Luxury vehicle sales are expected to recover as the circumstances that caused the drop dissipate. One reason luxury brands were highly affected by the pandemic, according to Cox Automotive, is that

The automotive industry did not take as big of a hit as many predicted due to the coronavirus pandemic. But experts and analysts told Michigan lawmakers on Sept. 2 their future is still a bit tenuous. Credit: Eric Seals, Detroit Free Press See Pre-Pandemic Sales, Page 20

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New York City and Los Angeles are the two highest luxury markets in the country. Seeing as those cities have been plagued by coronavirus for months, it is no surprise demand sharply decreased and sales dropped. The good news is as these areas recover in terms of economy and health, sales should too. Dealerships will be open for business, and healthy consumers who are open to shopping again will begin to do so. Inventory levels have also been a struggle for luxury manufacturers due to the massive halt in supply chains that shut down factories for weeks or even months. As you might expect, the best-selling luxury vehicles are currently at the lowest inventory counts. Japanese and German automakers have lagged behind the most, including Mercedes Benz and BMW. This is expected to get a lot better now that factories are back up and running, albeit with a lot more social See Luxury Vehicle Sales, Page 22

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CONTENTS

Call or Email Now for Rates: AUTOBODY

150 New Workers will Meet Demand at VW Chattanooga ...........................................10 Bust Made in Florida Alleged Luxury Auto Theft Scheme........................................10 CK Auto Collision in TN Under New Ownership ....9 Classic Collision Continues Growth in South Florida with Fender Mender Auto Body Acquisition ...................................14 Judge Orders AGA to Turn Over Financial Records ........................................................18 LMP Automotive Holdings, Inc. Announces Acquisition of 9 Southeast Dealerships..........15 Tesla Autopilot Crashes into a Cop Car While Driver Was Watching a Movie ........................14 Under the Hood: Mercedes-Benz Donates Car to CATA in AL ............................................8

Expert Predicts Auto Industry Could Take 2 Years

Anderson - Five Years of Data Shows ‘Who Pays’ Surveys Making a Difference ........................30 Attanasio - Are You Defending Your Good Name Online? ...............................................40 Phillips - Preparing & Training the Agents of Change in Future Technology ....................36 Sisk - AWAF Hosts Training, Awards Scholarships and Continues to Inspire Despite COVID ........34 Yoswick - Committee Demonstrates How Same Part Can Be Described Differently .......44 Yoswick - Latest in Lawsuits Involving Shops, Insurers and an Auto Recycler .......................38

800-699-8251

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

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

American Icon Automotive Finishes ................. 34

Honda-Acura Wholesale Parts Dealers .27, 28-29

Audi Wholesale Parts Dealers .......................... 49

Hyundai Wholesale Parts Dealers .................... 48

AutoNation Collision Parts ............................... 11

IGO Insurance Agency ..................................... 12

AutoNation Ford-Lincoln ................................. 37

Innovative Tools & Technologies ...................... 39

BMW Wholesale Parts Dealers ........................ 52

Jim Cogdill Chrysler-Dodge-Jeep-Ram ............. 8

Brandon Ford .................................................. 31

John Heister Automotive ................................. 38

Car-O-Liner..................................................... 13

Kia Motors Wholesale Parts Dealers ................ 51

Car-Part.com .................................................. 20

Malco ............................................................. 25

Certified Automotive Parts Association ............ 26

Mercedes-Benz Wholesale Parts Dealers ........ 55

Charlotte’s Premier Wholesale Parts Source .... 35

MINI of Charleston .......................................... 32

City Kia of Greater Orlando .............................. 32

MINI Wholesale Parts Dealers.......................... 52

Searles Joins AMi as New President ...................8

Classifieds ...................................................... 54

Mirka USA, Inc ................................................ 14

Speaker Highlights Common Challenges

Coggin Deland Honda ..................................... 30

MOPAR Wholesale Parts Dealers ..................... 33

Dale Earnhardt Jr. Buick GMC Cadillac ............ 23

Network 1 Solutions Collision Equipment ........ 21

Toby Chess Says SOPs, Industry Training

Dale Earnhardt Jr. Chevrolet ............................ 23

Professional Maintenance & Equipment .......... 16

& Networking are Key to Body Shops’

Eagle Abrasives, Inc. ....................................... 19

Radley Chevrolet ............................................. 46

Eckler’s Automotive .......................................... 9

RGI Spray Booth Company .............................. 24

Equalizer Industries, Inc. ................................. 15

Rick Hendrick Chevrolet Naples ...................... 44

Florida Filtration & Spray Booth Services......... 10

Riverside Ford-Lincoln .................................... 45

Ford Wholesale Parts Dealers .......................... 48

SATA Dan-Am Company .............................. 2, 56

GM Wholesale Parts Dealers ........................... 53

Sherwin-Williams Automotive Finishes ...........4-5

Gus Machado Ford .......................................... 42

Southern Polyurethanes, Inc............................ 17

Hendrick Automotive Group............................. 41

Southside Kia.................................................. 43

Positive Life Lessons with Mike Anderson .....22

Hendrick BMW/MINI .......................................... 7

Steck Manufacturing Company ....................... 18

White Named to Women in Automotive Board....15

Hendrick Honda Pompano Beach .................... 40

Subaru Wholesale Parts Dealers...................... 47

Will Burgeoning E-Commerce Hurt the

Hendrick Kia Cary ........................................... 36

Symach .......................................................... 22

Hendrick Kia Concord ..................................... 36

Tameron Hyundai ............................................ 44

Hendrick Volvo Cars of Charleston................... 32

Volkswagen Wholesale Parts Dealers .............. 50

Equipment Industry .......................................43 GM Tells Most Salaried Workers to Stay Home Till Next Summer ..........................................52 Honda Agrees to $84M Multistate Settlement for Defective Airbags.....................................53 Is Your Shop and Insurance Coverage Prepared for A Riot? ......................................46 Liability Exposures on the Rise Globally: AGCS ..24 Luxury Vehicle Sales Expected to Rebound from Depression .............................................1 Mercedes GLB250 Recall Issued for Rear Spoilers That Detach .....................................26 Nonprofit Finds, Matches Living Organ Donors ..50 PPI: August Shows Upswing in Auto Glass

COLUMNISTS

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to Rebound to Pre-Pandemic Sales Levels ......1

INDEX OF ADVERTISERS

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

Material Pricing ..............................................6 Restore Crashworthiness with Corrosion Protection—Keys to a Safe and Proper Collision Repair .............................................47 SafetyNest™ Helps Drivers Stay Insured ..........10

Involved in ADAS Calibration .........................49

Future Success ...............................................1 Toby Chess: 40-Plus Years of Service to the Industry He Loves .....................................1 Toby Chess: Best Practice for Air Conditioning

NATIONAL A Look at Kidney Disease and Ways to Help Toby Chess .............................................6 America’s Best-Selling Electric Cars in 2020 .....26 As Hurricane Season Arrives, CARFAX Provides a Flood of Information .....................55 ASE Survey Finds Adaptions..............................54 CCC AutoClaims Snapshot—August 2020.........54 Daimler AG to Pay $1.5B for Emissions Cheating ..49

Repair, R&I and Replacement ........................50 Toby Chess: Best Practice for Pre and Post Scans....................................................50 Turn Eight Common Shop Owner Mistakes into

Collision Repair Industry?..............................32

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A Look at Kidney Disease and Ways to Help Toby Chess by John Huetter, Repairer Driven News

Collision industry trainer, mentor and Hall of Eagles member Toby Chess is among the many Americans suffering severe kidney disease, undergoing dialysis and in need of an organ from a living or deceased donor. Colleagues have started a GoFundMe fundraiser to help Chess. “Toby Chess is known throughout our industry, not only as an amazing instructor with a plethora of technical knowledge, but for his willingness to give of himself, impart his knowledge to others and to ALWAYS do the right thing,” the GoFundMe campaign states. “Always the first to step forward and help others, our industry has the opportunity to pay it forward to our dear friend Toby, who is valiantly battling kidney failure as COVID-19 cripples his teaching schedule. “He has spent his life in service of others within our industry, and now has the opportunity to feel the reciprocal support from an industry that appreciates what he has done. Currently, Toby is undergoing dialysis three times a week, for four hours per treatment. This fund represents a way for an industry that is grateful, to recognize a wonderful man for his decades of service and volunteerism. For anyone that has ever been inspired by his words, motivated by his articles, informed by his seminars or videos, or simply touched by his generosity in sharing information.” Contributions can be made here. Chess’ high-profile example might leave collision repairers and other colleagues curious about kid-

ney disease and organ donation as well. The Centers for Disease Control estimates about 15% of U.S. adults have some form of chronic kidney disease, with nearly all unaware they have it. Simple blood and urine tests will tip off doctors to the presence of

Toby Chess, right, hugs his wife, Sheila, after winning one of many Society of Collision Repair Specialists honors. Credit: Provided by Aaron Schulenburg/SCRS

the condition. The National Institute of Diabetes and Digestive and Kidney Disease said people with high blood pressure, diabetes, heart disease or a family history of kidney failure are demographics that particularly should get tested. The illness leaves excess waste and water within the body—the damaged kidneys aren’t able to filter out the substances to the degree a healthy kidney would. Heart disease and stroke risks increase, and more specific illnesses like anemia or a weakened immune system can arise if the condition worsens. Some forms of kidney disease are manageable. However, Chess has Stage 5 chronic kidney disease, which is considered complete kidney failure. Ongoing dialysis is necessary to live. The dialysis process serves as

a replacement for failed kidneys by artificially removing waste and water from the body, according to the National Kidney Foundation. Reaching a state of chronic or endstage kidney failure stage leaves a patient on dialysis permanently unless he or she can get a new kidney. According to the American Kidney Fund nonprofit, most patients have to wait three to five years before a kidney is available from someone who has died. Chess’s transplant facility, the University of California, Los Angeles, says the Los Angeles-area wait time is five to 10 years. However, living Americans are permitted to donate a single kidney or a piece of a liver to whomever they choose. “Kidney is much more common,” said Anne Paschke, spokesperson for the United Network for Organ Sharing, the organization that manages the national transplant list. Last year saw “nearly 7,000” kidney transplants related to living donors, she said. Prospective donors should contact the prospective recipient’s transplant center, which will evaluate whether the donor’s blood type and antibodies are an appropriate match. Though it’s possible some of the preliminary testing can be done in the donor’s home area, prospective donors should still start the process by contacting the recipient’s local transplant center, Paschke said. For Chess, donors would visit www.uclakidneydonor.org and provide his name, Toby Chess, and date of birth, Aug. 6, 1945. About one in five donors are

healthy enough to provide a kidney, according to UCLA. Assuming that threshold is met, blood type and antibody compatibility are the two main variables tested to determine a match, according to Paschke. A person with Type O blood can only receive a Type O person’s kidney. Someone with Type A blood needs either a Type A or Type O person’s kidney, and someone with Type B blood must have a Type B or Type O donor. However, Type AB blood means a recipient can use a kidney from any of the four blood types. Rh factor (the + or – associated with a blood type) only matters “in some very rare cases,” Paschke said. It’s still possible for a donor to help their intended recipient even if both parties aren’t a match, Paschke said. A donor who isn’t a match for their intended recipient can be set up with a paired exchange. Here’s how it works. Let’s say Person A wants to donate to Person B and Person C wants to donate to Person D, but neither is a match for their recipient. But if A and D are compatible and B and C are compatible, then A donates to D and C donates to B. The two donors have still given a kidney, and the two intended patients received one, so it all works out. The transplant center would set up such a pair donation. The transplant center can sort all the willing donors and their desired recipients and see if a paired match would work. Paschke said some trades even involve more than two pairs of donors to obtain the required results.

PPI: August Shows Upswing in Auto Glass Material Pricing by Emmariah Holcomb, glassBYTEs.com

Prices for materials used in the auto glass industry showed mostly increases in August, according to recently released Producer Price Index (PPI) data from the Bureau of Labor Statistics (BLS). The monthly PPI, which includes auto glass*, increased by 1.4% on a year-over-year basis. The PPI went down by 0.1% from July. According to the BLS, the

commodity classification “organizes products and services by similarity or material composition, regardless of the industry classification of the producing establishment.” Prices for motor vehicle parts went down by 0.1% from August 2019, and in that index, in the commodity grouping, month-overmonth prices remained the same. The PPI for molded rubber mechanical goods (automotive) remained the same when compared to

its reading last month, and also saw a decrease of 1.4% when compared to last year. Adhesives and sealants saw an increase of 0.2% when compared to last month and saw an increase of 1% from last year. Motor vehicle repair and maintenance, in the services grouping, went up by 0.1% on a month-over-month basis, as well as going up by 2.1% for the year. The cost of private passenger

auto insurance services went down by 0.3% when compared to last month, which resulted in a 0.7% increase on a year-over-year basis. Commercial auto insurance went up by 0.4% on a month-over-month basis and was up 3.5% year over year. *This number is for the specialty glass category in August under the commodity category. We thank glassBYTEs.com for reprint permission.

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Searles Joins AMi as New President The Board of Trustees at the Automotive Management Institute, the industry’s leading provider of management education for automotive service and collision repair professionals, is pleased to announce Chuck Searles has been selected as the organization’s new president, effective immediately. Searles will succeed Jeﬀ Peevy, who left to return to I-CAR as VP of technical products, programs and services in late July. His career began as a dealer service technician in 1992. During nine years as a service technician, Searles was employed by three different dealers in two states, Alaska and Arizona. This diversity helped expand his skillset and knowledge base, which eventually led to a technical service support position with Nissan North America in 2001. Over the last 19 years, he has served in four different Nissan training roles. Source: AMi

Under the Hood: Mercedes-Benz Donates Car to CATA in AL by Tyler Hanes, The Cullman Times

To help career technical students in Cullman County, AL, get a head start in learning the latest trends in automotive technology, Mercedes-Benz U.S. International has donated a new car to the Cullman Area Technology Academy. Cullman County Schools Superintendent Shane Barnette and CATA Principal Billy Troutman announced the donation of the 2019 Mercedes-Benz C300 on Sept. 8 at the school. With the new car, students in the CATA’s Auto Service Technology Program will be able to get first-hand knowledge of the latest in automotive technology, and the donation from Mercedes provides a boost to the school because getting the latest tools and technology for students can be very expensive, Troutman said. “This is just another pathway to expanding their knowledge, expanding their horizons and their base where they can operate,” he said. “So we’re excited about this opportunity.”

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and he made sure to thank Mercedes-Benz’s Steve Colburn, who has worked with the county school system and the CATA to help inform students about the opportunities with the company. The new car was also popular among the CATA’s students. After getting a chance to take a look at the Mercedes, automotive student Taylan Eaves said he is looking forward to getting some hands-on experience with some of the new technology. “It’s definitely exciting to learn about some of the newer cars,” he said. Eaves said he is still deciding what he wants to do when he gets out of school, but being able to work with a new car will help him even if he doesn’t go into an automotive career. “It’s going to be good to get to learn the technology for when we get cars that are technologically advanced, so we can work on our own cars,” he said.

Because the car belongs to the school, students will be able to do whatever they need to do, such as disassembling certain components or parts, to make sure they learn the ins and outs of the vehicle, he said. “It just kind of opens up the door and just provides a huge educational resource as far as that’s concerned,” he said. Being able to work with the car will also put students on a good track to continue their education or go straight into the workforce, Barnette said. “We’re looking forward to our students being able to get in here and take it apart and get very familiar with the parts in a Mercedes vehicle and be able to put it back together, and help them prepare for either being part of the pipeline through Wallace State and their internship or go directly to Mercedes and work there,” he said. Barnette said the car’s donation is an extension of an already-existing partnership between the CATA and Mercedes-Benz,

We thank The Cullman Times for reprint permission.

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CK Auto Collision in TN Under New Ownership by Dawn Hankins, Times-Gazette

This year has been full of surprises, namely three, for Cesar Hernandez and Claudia Solis, new owners of CK Auto Collision Repair, 2111 N. Main St. in Shelbyville, TN. First, they purchased their new collision business right in the middle of the pandemic. Claudia said they were surprised the parking lot filled with a large range of customer vehicles from the get-go. Secondly, the store had to close in April, due to the pandemic. They were certainly surprised by COVID-19, which did hinder them slightly from opening fully in the spring. Since May, business has bounced back, with the parking lot still full of customers ready for collision repair; they currently have four employees at CK Collision. That third major surprise was the announcement they’re going to have their fourth child in a few months. Claudia said now of course she has to be really careful with her health; she cannot enter the paint room—pristine in appearance, but

heavily laden with paint fumes. The two said they’re really enjoying being a part of the Shelbyville business community. Claudia has lived here since 1994 and Cesar moved here in 2004. He has more than 11 years of detailing and auto body collision experience, working in Mexico City and in Murfreesboro, TN, for car dealerships. Two years ago, Cesar went out on his own doing mobile spot painting. “I think it is great that he’s doing the same work like his dad,” Claudia said. CK Auto Collision and Repair is certainly located in an area— Highway 231 North—which sees its share of wrecks in a given week. Still, the couple, through their humble manner, say they’re proud to be right where they are, serving this community. “We pretty much do it all,” said Cesar. “There’s no job too big, or small. I try to give 100%. We’re trying to get the highest quality, at a fast turnaround. The main goal is that the customer is happy.” Judging from their online re-

Along with the front desk team, they were very friendly and helped through out the process. I will definitely go back and give them my business and would recommend them to anybody without a doubt. So whether you’re picky or not in obtaining an auto paint & body service, CK Auto Paint & Body is hands down the place to go.” A Shelbyville-Bedford County Chamber of Commerce ribbon cutting is beCesar Hernandez and Claudia Solis. Credit: T-G ing planned for a later date, Photo by Dawn Hankins Claudia said. COVID-19 One customer said, “Now let put a halt on that as well back in me tell y’all real quick...I’m very the spring. The collision shop is currentvery picky when it comes to obtaining a service of any kind that I ly open Monday through Friday, 8 need done. As soon as I met Cesar, a.m. to 5 p.m., and Saturdays 8 a.m. foreman of the shop, I knew I was to noon. The business is closed on gunna be in good hands. He was Sundays. Walk-ins are welcome and very attentive, gave me updates CK Collision works with all insuron my vehicle, and showed that he ance claims. Call 931-735-6492 for CARED for the job. Seeing all that more information. come out of Cesar made me feel even more secure that the job was We thank the Times-Gazette for regunna get done right and on time! print permission. views, many customers are happy with their company’s work.

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SafetyNest™ Helps Drivers Stay Insured SafetyNest, a 501(c)(3) nonprofit organization created and funded exclusively by Branch Insurance, will be providing financial assistance to drivers who have suffered from reduced income or loss of work due to the pandemic. SafetyNest and Branch Insurance share the belief that by helping more people become insured, insurance can be more affordable for all. It’s with that belief that SafetyNest announces it intends to pay car insurance premiums, now through the end of 2020, up to $250 per approved application, to prevent the possible financial devastation that can result from being uninsured. The program will help those who are facing financial hardship to stay insured and be better protected from life’s uncertainties. Those affected can apply for financial assistance at safetynest. ourbranch.com if they have recently lost a job, are experiencing reduced income, or had their car insurance cancelled Source: SafetyNest

Bust Made in Florida Alleged Luxury Auto Theft Scheme by Steven Symes, Motorious

In these turbulent times of coronavirus lockdowns, riots and increasing vehicle theft the scammers aren’t taking it easy.

Credit: Volusia County Sheriff’s Office

In fact, we’ve seen all kinds of alleged criminal schemes in Florida and elsewhere. This latest one began with police making a bust in Washington state and ended in Volusia County, FL, where three vehicles and a stash of cash were seized. According to the Volusia County Sheriff’s Office, deputies received a tip from police in Washington that Arthur N. Wilcher of

Deltona might be involved in the theft of multiple luxury cars. Two Washington license plates associated with vehicles believed to be stolen were supplied, and both turned up in the Volusia County license plate reader system. From there, deputies conducted surveillance on Wilcher’s home and investigated him for about a month. After gathering enough evidence to move on him, they seized three luxury cars they say were stolen: a 2017 Mercedes-Benz S-Class Coupe, a 2017 BMW 750i with absolutely awful wheels and a 2018 Jaguar F-Pace. Wilcher was leaving his house in the BMW when he was arrested. Authorities claim the BMW and Mercedes were both stolen in Georgia. As for the Jaguar, it was stolen in Miami Gardens. The National Insurance Crime Bureau was on the scene to conduct its investigation, where they say an agent found all three luxury cars had fake VIN stickers placed over the originals on the dashes, doors and engine blocks. From the sound of things, someone ei-

ther had experience covering their tracks with stolen vehicles or knew someone who did. In the trunk of the BMW was a bag containing $46,000 in cash, say deputies. The Jaguar allegedly contained a Louis Vuitton purse with another $4,000 in cash. Now Wilcher is facing several criminal charges, including three counts of grand theft of a motor vehicle and possession of a vehicle with an altered VIN, plus operating a chop shop. Unsurprisingly, he was able to post the $25,000 bail and was released from the Volusia County jail. We thank Motorious for reprint permission.

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150 New Workers will Meet Demand at VW Chattanooga by Daniel DiManna, The News Wheel

Volkswagen is currently preparing for massive changes and exciting updates. As 2020 heads into its final stretch, the automaker is getting ready to unleash new vehicles for 2021. Among these is the highly anticipated ID.4 electric SUV, which will begin production on U.S. soil early next year. Naturally, meeting the demand for new vehicles—and continuing the necessary manufacturing upgrades that will allow for EV production—are both top priorities at the company. To that end, VW has just announced an ambitious plan to expand its work force. 150 new workers will be hired to meet demand at the Chattanooga, TN, production plant. Volkswagen Chattanooga will be ground zero for the company’s U.S. EV production. In order to supply North American drivers with ID.4s by next year, VW must convert the plant for EV production. New equipment, new buildings and a redesigned assembly

line will be necessary for making VW’s ambitious plans a reality. In order to prepare the plant while still keeping up on day-today production, the plant is set to receive 150 new workers before the end of the year. As of now, VW has begun accepting applications. The positions will mostly be for second and third shifts, and will not require applicants to be associated with an employment contractor. “We must grow our team to meet the increasing demand for our vehicles, but also to begin preparations for electric vehicle assembly,” says President and Chief Executive of Volkswagen Chattanooga Tom du Plessis. “Our goal is to extend at least 10 job offers every week for the remainder of the year.” Volkswagen Chattanooga currently employs around 3,800 workers. Their output includes the most recent iterations of the Atlas and the Passat. The ID.4—currently scheduled for an official reveal later this month—will roll off the Chattanooga assembly line in early 2021. We thank The News Wheel for reprint permission.

10 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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Toby Chess has never slowed down. He’s taught thousands of body technicians skills that are used every day to fix cars the right way—Toby’s way. He’s been to almost every state in the union, teaching and imparting more useful information than most in this industry will ever know. Chess is well-known as an I-CAR program instructor, training specialist and renowned industry writer, but also for his work with first responders and advocacy for body shops and consumers as well. Now he has encountered another challenge with his battle against end-stage kidney disease. He has been undergoing dialysis for the past 30 months, but hasn’t slowed down for even a minute, and is still doing everything he can to continue on his path. Toby’s passion for cars started back in the late 1960s, when he began working on old Porsches. His first project was a 1955 Speedster, and over the years, he became a Porsche expert, restoring several. In 1972, Toby and his father opened a salvage yard in Culver City, CA, specializing in Volkswagens. It had a good run until the Chess family stepped away from the business 21 years later. No longer working for his father, Toby took all her had learned about the collision repair industry and was eager to get out there and take on the world. During the next few decades, Toby worked in several capacities for independent shops and MSOs in the Los Angeles/Orange County area. He built a shop for a Honda dealership, was a regional manager for a chain of nine stores, and even worked for three years as a fraud investigator for an insurance company. In 2004, Toby started working toward becoing an instructor for I-CAR. One year later, he made a life-changing decision to take his classes on the road, when he bought a trailer and a truck and started traveling nationwide to conduct I-CAR welding instruction and testing. In his very first I-CAR welding class, Toby had 26 students, and half of them failed. So, he showed them

how to do it correctly, and realized he really enjoyed it. “I thought, I can take this on the road,” Chess said.” I could see that there was a real need for MIG and aluminum welding instruction, so I set up the road show, and it grew from there. “I hit Illinois, Indiana, Washington, Georgia, Colorado and all of California during those first years. I went where I was needed and stayed there until everyone knew how to weld. I stayed at a hotel in New Mexico for almost a month because they really needed me there. It started I-CAR’s mobile programs, which were successful and got great reviews.” During the first 40 days of his road trip, Chess tested more than 100 technicians, a number that blew up to approximately 800 during that first year. To date, Chess estimates there are more than 20,000 collision professionals out there who’ve taken his classes. It’s been a busy schedule to say the least, because during much of the time, he has worked a regular job at Kent Automotive, as well as serving on the Society of Collision Repair Specialists board and acting as a featured speaker at Collision Industry Conference and SCRS events. Other impressive things on Toby’s resume include his roles as co-chairman of the Write it Right Committee and an induction into the Hall of Eagles in 2003. Toby loves being able to teach someone and then watch him or her excel, he said. “It all comes down to how to make a good weld each and every time. I am still doing it today, and I never tire of it. I have a lot of good friends who passed one of my tests 10 years ago.” His teaching style has never changed, he said. “I learned how to simplify things so that people can absorb the information more easily, and I also try to make it fun. Early on, I could see that I was connecting with them because they could see that I really cared. After a while, I figured that I can teach someone how to weld in 20 minutes. I have a knack for this, plus I love it!” After visiting more than 5,000 shops and teaching more than 100,000 students, Toby now has former I-CAR students all over the country. “People come up to me all the

time and tell me that I taught them how to weld. Two weeks ago, a guy walked up to me at a Home Depot and said I trained him to weld many years ago. Yes, it is satisfying.” In addition to his teaching and mentoring, Toby is known for stepping up and helping others when in need. He helped an organization called Camp Make a Dream get a new bus, played a big role in three or four different toy drives at Camp Pendleton, and worked to establish a collision repair tech department at Belmont High School in Los Angeles. Known as a leading industry writer/columnist for more than two decades, Chess began writing for Autobody News in 2008, with his “Hey Toby!” series, and has written close to 100 articles for the publication since. He covers every aspect of the industry, with a focus on things like paint, parts and procedures. He has also written for Body Shop Business, ABRN and Tire Review, to name a few others. “I started writing in the late 1990s and I like it,” Chess said. “I write the way I talk and I try to find topics that

will provide information and tips that can be used in shops.” During every step of the way, Toby’s employers have liked his managerial and organizational skills and his “can do” attitude, and it’s conveyed succinctly in the text accompanying a recently established GoFundMe account. “Always the first to step forward and help others, our industry has the opportunity to pay it forward to our dear friend Toby, who is valiantly battling kidney failure as COVID-19 cripples his teaching schedule,” according to the GoFundMe page established to help him. “Toby is undergoing dialysis three times a week, for four hours per treatment. “This fund represents a way for an industry that is grateful to recognize a wonderful man for his decades of service and volunteerism. For anyone that has ever been inspired by his words, motivated by his articles, informed by his seminars or videos, or simply touched by his generosity in sharing information.” As a lifelong giver, Toby was a See Toby Chess, Page 52

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Classic Collision Continues Growth in South Florida with Fender Mender Auto Body Acquisition Classic Collision, LLC, an Atlanta-based multi-site repair operator, announced its third acquisition since July 10 by acquiring the two Fender Mender Auto Body locations in Fort Lauderdale, FL. These are Classic Collision’s 12th South Florida locations. It now operates 39 centers in Georgia, Florida, Alabama and South Carolina. With this acquisition, Fender Mender Auto Body will be known as Classic Collision Downtown Fort Lauderdale and Classic Collision Executive Airport. Fender Mender Auto Body has served the Fort Lauderdale and surrounding areas since 2003, and has become well known for its reliable, high-quality repairs. “We are excited for this next chapter and to join forces with a company whose vision and values

align so closely with ours,” said Mark Bruno, former owner of Fender Mender Auto Body, who will be staying on with Classic Collision as a regional director. “United by a common business culture, we welcome the Fender Mender team to the Classic Collision family,” said Toan Nguyen, CEO of Classic Collision. “We believe their expertise in the collision repair industry will greatly contribute to our future growth.” During these difficult market situations, Classic Collision is not slowing down plans to expand, and will continue to acquire high-end businesses. A highly effective integration model and operations playbook keep Classic Collision safely performing at a high level. Source: Classic Collision

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Tesla Autopilot Crashes into a Cop Car While Driver Was Watching a Movie by Fabienne Lang, Interesting Engineering

Early Aug. 26, a man watching a movie while his Tesla drove on a North Carolina road on autopilot experienced a big shock when his car rammed into a parked police car, per the Charlotte Observer. The question over just how safe Tesla’s autopilot feature arises yet again, but machines only shouldn’t be the ones to blame. The crash happened on the U.S. 64 highway, near the town of Nashville in North Carolina, 1st Sgt. Jeﬀ Wilson of N.C. State Highway Patrol told McClatchy News. The deputy was responding to another crash when the deputy’s car was slammed into by the Tesla. Both vehicles were totaled and upon impact, the deputy’s car hit a state trooper’s parked car. Luckily, no one was seriously injured. The driver of the Tesla is being accused of violating the move-over law and watching television while driving. The former states that drivers should drive cautiously while passing parked emergency vehicles. Devainder Goli of

Raleigh, NC, was the driver who wasn’t paying enough attention to what his Tesla was doing. This isn’t the first time a Tesla crashed into something while operating on autopilot, though there are some nicer instances when autopilot successfully maneuvered unpredictable moves on a road. However, the recent incident in North Carolina does highlight the fact that more attention needs to be given by the drivers operating Teslas on autopilot. It’s not just a matter of switching on the button and becoming entranced by your smartphone screen, completely unaware of the world around you. Perhaps Tesla needs to rethink some of its marketing strategies around autopilot, to better instruct people on how to use it safely and properly. That said, it’s hard to cater completely to such a wide range of people in the world, there will always be some who don’t adhere to the rules. In this instance, it was a lucky call that no one was hurt. We thank Interesting Engineering for reprint permission.

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LMP Automotive Holdings, Inc. Announces Acquisition of 9 Southeast Dealerships LMP Automotive Holdings, Inc., an e-commerce and facilities-based platform for consumers who desire to buy, sell, subscribe for or finance pre-owned and new automobiles, announced Sept. 1 the acquisition of nine southeast dealerships, including 10 new vehicle franchises. “We are thankful to both the LMP and our counter party employees and professionals who have worked tirelessly over the last few months on this transaction,” said COO Richard Aldahan. “The talent in both organizations and the resilience of our business model will put us in a position to become a stronger and more diversified company. I am pleased to welcome all our new future colleagues and look forward to working and growing together as we roll out our hybrid e-commerce home delivery, site-to-store and ship-from-store delivery strategies. “The operating assets to be acquired include an 85% interest in five new vehicle franchises and three pre-owned centers, all of which are located in the attractive

West Virginia market, as well as a 100% interest in four new vehicle franchises in the Tennessee market: one Subaru, one Hyundai, one KIA, two Chevrolet, two GMC, one Cadillac and two Buick,” Aldahan continued. “These clustered locations combined with our current operations and previously contracted acquisition provide for reconditioning, service, logistical and fulfillment efficiencies, which are important cost-saving components in e-commerce, sales and distribution. “With these and our previously announced acquisition, including our current operations, we expect to have approximately 2,000 vehicles exposed and available online on our platform to our customers.” “We are excited to expand our fulfillment footprint in this Eastern U.S. region which is in line with our hybrid e-commerce and dealership clustering strategy,” said Sam Tawfik, chairman and CEO. “We are looking forward to enabling our subscription and e-commerce technology over

these dealer platforms in order to further expand our online fulfillment presence and add to their historical success. “As we have mentioned previously, we are seeing a robust acquisitions market and have a pipeline of prespective acquisitions that we are in active negotiations with,” Tawfik added. “We intend to continue to build our pipeline of prospective dealership acquisitions and intend on accelerating our acquisition strategy moving forward. “LMP plans on adding 30 to 40 dealerships in 2021 that could contribute $5 to $7 per share in additional net income, expand our e-commerce fulfillment presence, provide efficiencies as well as increase our inventory exposed in our lmpmotors.com online store.” Source: LMP Automotive Holdings, Inc.

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White Named to Women in Automotive Board Dana W. White, chief communications officer, Hyundai Motor North America, has been named to the Women in Automotive board. In this role, White will be a resource and advocate for the organization’s mission to empower and develop women in the automotive industry as thought-leaders, industry executives and mentors for other women seeking career advancement and growth opportunities. The Women in Automotive organization currently has 20 executive-level board representatives from a variety of automotive technology, supplier, media outlets and dealerships. In her role as CCO at Hyundai, she is responsible for leading all regional communications and public relations strategy for HMNA, HMA, Genesis Motor America and Hyundai Motor Manufacturing Alabama in coordination with other affiliates, including the Hyundai Washington, D.C., office. Source: Women in Automotive, Hyundai.

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Training & Networking “SOPs help walk you through each step of the repair process,” said Chess. “Body shops are going to need more of this in the future.” I recently talked to Chess about his predictions for the industry as a result of COVID-19 and what shops will need to be successful in the future. What changes have you seen at shops since COVID-19 and how do you think this will affect their businesses? Although volume is down in many shops, the good news is that most shop owners I have talked to say their bottom line is better today than it was before. This is because they were forced to make adjustments in the current environment and look at incorporating “lean” practices at their companies. Shops are rethinking how they operated previously and changing their business practices to become more efficient. Afterward, they often say they’ll never go back to doing things the way they did before. The key is to set up a good foundation by creating SOPs throughout your shop, such as picture taking, blueprinting and parts handling. If you don’t have good processes to follow, it doesn’t do your business any good. How can SOPs help shops repair vehicles more effectively and efficiently? When I ask body shops what they do, they usually tell me, “We repair vehicles.” Think about the following: Does a body shop not give a guarantee that the car will behave in the same way as before the repair? Do they not guarantee the car is back to its original length, width and height dimensions? Do they not guarantee the paint for the life of the repairs? Do they not guarantee that it will have the same corrosion protection as the OEM provides? My contention is that’s not repairing a vehicle; it is remanufacturing one. There’s a difference. If you agree that it’s a remanufacturing process, you can look at what OEMs do during that process and put it to use at your shop. OEMs have an SOP for everything; body shops should have them too. When cars come to a facility, technicians ideally fix them the same

way every time. Obviously, each dent on a car is going to be different, yet the process used should be the same. If I were a shop owner, I would have an SOP for every process in the shop to ensure a quality and proper repair. Once those are in place, training becomes key. What will collision repair training look like in the future? It’s going to be a mixture of hands-on and in-person. Like many other training organizations, I-CAR has transitioned the majority of its classes online right now. Typically, shop owners haven’t learned techniques online and many of us aren’t big fans of learning this way, relying on hands-on instruction for most of our careers. We need to recognize that many companies will be offering virtual training in the future and shops will need to adapt. However, when it’s available, I find that hands-on training is extremely beneficial. With the tremendous need for good-quality training, new opportunities are being offered through organizations such as I-CAR, the Automotive Management Institute (AMi), VeriFacts Automotive and VECO Experts. I also think more and more OEM training will be required in the future. Auto manufacturers are starting to take an active role in saying how they want their cars repaired. Just look at the John Eagle case. The insurance company didn’t pay the difference to have the vehicle repaired the proper way and the shop acquiesced and didn’t follow the OEM procedure. Who should the shop have been working for? It’s critical to remember that shops always work for the customer. OEM certification programs continue to grow and are offered by most manufacturers, including Porsche, Audi, Mercedes-Benz and BMW, just to name a few. There is also the University of Toyota, which is called Toyoland. Although certification programs are being offered across the country, I find many shops aren’t taking advantage of these opportunities. If technicians don’t have proper training, they will not be able to repair vehicles based on the OEMs’ specifications. Shops usually find that once they receive training on a procedure, it makes all the difference in the world.

How can shops learn more about the issues affecting the collision repair industry? They have to read! There is so much information offered by industry publications and other information available on the internet but often, people don’t take the time to look at it. Not only do they need to read about the industry, they also need to become part of the industry. I recommend that shop owners and managers get out and network. Industry events, such as the Collision Industry Conference (CIC), offer attendees the opportunity to interact with others and find someone who has a similar way of looking at things. It also allows you to learn new ideas. Many of today’s successful operators have realized the importance of getting out of their environments to see what is going on across the country. I highly encourage shops to join an industry association, such as the Society of Collision Repair Specialists (SCRS.) They offer so many helpful resources and are dedicated to supporting the industry. There is a lot of free information on their website and the membership fee is money well spent.

As a result of your involvement with the March Taylor Foundation and other initiatives to train technicians, what advice can you offer to find qualified workers? In the past, a technician could just open the hood and figure out how to repair the car. That’s no longer the case. As new technology is developed, shops will not only need the proper tools and sophisticated equipment, but they will also need to know how to use it properly to ensure the vehicle is brought back to the car manufacturer’s specifications. One of the biggest challenges shops are starting to have and will continue to have in the future is finding someone who can address the electronics on a car as well as Advanced Driver Assistance Systems (ADAS.) The need for calibration is going to be paramount in the industry and many dealers don’t have the ability to do it. I think mentoring is really important, but we don’t do it enough. Everyone talks about the need to find good talent and train people, but shop owners and managers need to step out of their comfort zone and take the initiative to make a change.

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Judge Orders AGA to Turn Over Financial Records by Tara Taffera, glassBYTEs.com

Judge Leslie Hoﬀman was clearly frustrated with both sides. Hoffman, a magistrate judge for the U.S. District Court in the Middle District of Florida in Orlando, had summoned lead attorneys involved in the Allstate Insurance vs. Auto Glass America and its owner Charles Isaly to a hearing on number of discovery motions. The result was 11 lawyers— four for Allstate* and seven for AGA/Isaly—all at the same hearing Aug. 21 to argue five motions concerning discovery. In the course of the hearing, the judge made it plain she felt neither side had been cooperating with the other. The suit, which was filed just before Christmas 2018, alleges AGA and Isaly directed an “extensive and complex scheme … to pressure Allstate’s insureds into hiring AGA for windshield replacements, obtaining assignments of benefits from insureds, submitting invoices to Allstate for excessive and unreasonable amounts and fil[ing] over 1,400 lawsuits for recovery of excessive and unreasonable amounts.” AGA has since filed a counterclaim as well. The first motion argued Aug. 21 was the insurer’s motion that would order AGA to produce financial records in response to a subpoena for said information. AGA’s attorneys alleged the information Allstate was seeking did not appear to involve specific elements from any specific claims or defenses as framed in the pleadings and was, therefore irrelevant. “Relevancy is what matters when we are talking about private financial matters,” said AGA attorney Mac Phillips of Allstate’s request for a subpoena to AGA’s CPA firm for information going back to 2014. Information sought by the insurer included state and federal income tax returns, detailed financial statements, all accounts payable journals, auditing work papers, info about all bank accounts and financial instruments, all communications between the CPA firm and AGA and all earnings reports. That ruling rendered the defendant’s mo-

tion protecting it from such an order moot. “We need these financial records. We need the income and expenses so that Allstate can calculate the profit margins,” said Allstate attorney Sally Culley. “We need them so that our expert can determine if what AGA is charging is in line with others.” Culley also said Isaly had testified in his deposition there was no specific formula used for setting prices charged to cash customers. “We need to see how AGA pays its techs and salespeople to help determine this,” said Culley. “What AGA charges other insurance companies is also relevant.” The judge ultimately ordered Allstate receive much of the financial information it sought. “The subpoena was overly broad,” said Hoffman, “but I never said it wasn’t relevant. I agree that Allstate is not entitled to get every bit of your financial information,” she added, ruling AGA was to provide all its financial statements, its QuickBooks reports, documents showing what AGA charged all its customers, insured by Allstate or not, and all expenses including payments to employees and 1099 contractors, all going back to 2014. She did not require release of tax returns, nor correspondence between AGA and its CPA. She then gave the defendant 14 days to produce the documents. Next up was Allstate’s motion to compel subpoenas of certain AGA employees and subcontractors and to impose sanctions against AGA’s lawyers for certain alleged conduct around such subpoenas. The insurer’s attorneys alleged AGA’s lawyers have not cooperated with Allstate in scheduling depositions and did not produce employee Brad Isaly for deposition, despite having been served properly. “It looks like you are not responding [not communicating] so you can play this game with Allstate,” the judge told the attorneys for AGA. She ordered them to pay legal fees and costs for a failed deposition Allstate attended, but denied as moot a motion for sanctions regarding Brad Isaly’s deposition

and alleged bad faith conduct. This type of behavior, she said, “is frankly insulting to the court. So let me make this clear: Stop. Stop. I am putting this in the order, because if this continues you will be violating my ruling. My patience has just about run out.” Hoffman was clearly frustrated with the pace of the trial and turned her attention to Allstate. “There is plenty of blame to go around. Ms. Culley, you have had 18 months to depose witnesses. 18 months. How many have you deposed?” “One, your honor,” Culley replied. In addition to the sanctions, the judge ordered Brad Isaly appear for deposition and Charles Isaly be re-deposed. “He has already sat for more than 14 hours of deposition,” said Miller of Charles Isaly. “More is over-reaching. Could he not submit an affidavit or answer written questions?” Hoffman said no, with some conditions. She ordered Charles Isaly sit for one additional hour of deposi-

tion but that questions be limited to ones that were asked and objected to in the original deposition. She ended the hearing repeating her earlier admonishment. “Do not ask for further extensions. They will not be granted,” she said, “except for truly exigent circumstances.” Note: Allstate Insurance Company, Allstate Fire and Casualty Insurance Company, Allstate Indemnity Company and Allstate Property and Casualty Insurance Company (collectively Allstate), as well as Auto Glass America and Charles Isaly (known as AGA) are all represented by outside counsel. We thank glassBYTEs.com for reprint permission.

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18 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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Continued from Cover

Pre-Pandemic Sales needs to keep adapting and working collaboratively, said Carla Bailo, president and CEO of the Ann Arbor-based Center for Automotive Research. “Everyone is predicting this year about 13 million [vehicles sold], pre-COVID we were about 17 million. We expect it’s going to take another two years, but that’s predicated on a good recovery and continued recovery throughout this year,” Bailo said during a legislative hearing. “Should we have another hit in the fall, we’ll have to adjust those figures. So about two years to come back to where we were.” Bailo joined Michigan manufacturers and industry authorities in briefing lawmakers on the pandemic’s impact on the automotive world. Every speaker agreed the auto industry’s ability to produce personal protective equipment helped save lives and jobs, but there are real and practical problems that operating

during a pandemic will present for the foreseeable future. The discussion comes as every industry tries to maintain a tenuous grasp on operating during a pandemic. Gov. Gretchen Whitmer is expected to soon allow movie theaters, gyms and similar businesses to start operating again on a limited basis. But she’s repeatedly warned she may need to institute another shutdown if coronavirus case rates spike again. Automotive manufacturing shut down like most industry in March, even as suppliers and large manufacturers looked for ways to produce vital health and safety equipment to fight COVID-19, the disease caused by the coronavirus. Any new halt in production, even a short one, would be crippling, said Brian O’Connell, General Motors regional director of state government relations. “The shutdown had a huge impact on our industry and our company. And we cannot afford a shutdown. We cannot afford a week shutdown,” O’Connell said. Demand for new and used vehi-

cles is down, but Bailo said the drop was not as much as some expected. Although overall vehicle sales were down 25%, sales of pickups are down only 10%. At the same time, there are 20,000 fewer jobs in the automotive industry compared to the second quarter of last year. Michigan’s jobs in the industry are down 18%. Bailo said that’s the lowest level since 2009, during the Great Recession. “There was a lot of doomsday forecasts early on, but the automotive industry has stayed resilient and most of the plants have been able to stay open,” Bailo said. Now GM, Ford Motor Co. and Fiat Chrysler Automobiles say they continue to follow strict testing and quarantine protocols for employees who may be sick or who came in contact with someone who has COVID-19. The UAW, which represents roughly 150,000 workers from the Detroit Three, repeatedly advocated for strict safety practices and heralded the manufacturer’s recent decision to continue testing employees even if they showed no symptoms of

the virus. Workers must be healthy and feel safe to keep production moving, noted John Walsh, president and CEO of the Michigan Manufacturers Association. Manufacturing in the state has rebounded since the start of the pandemic, but as of July there are roughly 69,000 fewer Michiganders employed in manufacturing than the 628,000 who had a job in the industry in July. While working from home or virtually may not substantially disrupt other industries, it’s essentially not an option for most manufacturers, Walsh said. Bailo and others agreed that finding and keeping an employee who can work on site while handling the daily rigors of life during a pandemic is difficult. “This is going to continue to be an issue. It’s a strain on the manufacturing sustainability and keeping the production line running,” Bailo said. “You don’t have the option to work remotely when you’re on the line. And if you’re a single parent trying to educate children, that’s a

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significant problem.” Although Rep. Vanessa Guerra, D-Saginaw, agreed GM and other companies may have strong safety plans, she questioned whether they’re always followed. Without providing specifics, she said she’s heard from constituents saying some employees are not informed when colleagues are sick and companies are not doing enough to adequately clean sites where infected people may have worked. GM relies on the safety practices every day, requiring masks at all times while on site, O’Connell said. Echoing comments from other speakers, he said the company prioritizes employee health in a way that ensures operations can continue. “We cannot have an outbreak at our plants. It shuts us down. It shuts our suppliers down. The impact is tremendous on us,” O’Connell said. “We have not had a transmission at our plant where people are following safety protocols. Now, have we had employees who had it? Yes, but it was when they were home over the weekend and not working.” Shape Corp. President and

CEO Mark White said his company employees about 3,500 people worldwide, including approximately 1,000 on any given day in Grand Haven. The supplier, which designs and builds components that manage the forces that occur when a vehicle is in a crash, instituted temperature checks and socially distanced work sites for its facilities, White said. The company had 168 poten tial cases of the coronavirus among employees and 16 confirmed cases in Grand Haven, White said. Many were either prevented from entering a facility due to a potential fever or reported symptoms, or left work after reporting symptoms during a shift. White said his company is working with its employees to provide flexibility for those who do have child care and other needs. He also said they provided across the board raises. But he said concerns about child care, catching the coronavirus and “the financial security of the enhanced unemployment benefits” is causing unprecedented absenteeism and turnover. “Our government needs to de-

velop incentives to work, not incentives to stay on unemployment,” White said. “With respect, the incentives created to stay home go beyond physical well-being. They create a false sense of financial well-being, and keep people from coming to work at Shape and other good employers.” Hundreds of thousands of Michigan residents have filed for unemployment since March. Federal legislation provided an additional $600 per week for unemployment benefits in the first months of the pandemic, but those benefits are no longer available. The state recently received federal approval to provide $300 in extra unemployment benefits, but this funding is not expected to last very long. Lawmakers and industry leaders highlighted efforts by many companies to produce personal protective equipment. GM and Ford recently announced they provided the federal government with tens of thousands of ventilators, fulfilling the terms of their contracts to built the live-saving machines that

were in short supply. Ford delivered 50,000 ventilators in conjunction with a $336 million contract. The company also donated 1.5 million masks as part of a free mask initiative led by the governor. GM plans to donate 2 million masks to Michigan public schools. That’s in addition to the 30,000 ventilators it built as part of a $489 million federal contract. Moving forward, companies want to see lawmakers take action to provide some protection from lawsuits. This week, legislators took up bills that would make it harder to sue an employer or producer of protective equipment due to coronavirus concerns. The bills still require several votes before they could make it to the governor. We thank the Detroit Free Press for reprint permission.

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Turn Eight Common Shop Owner Mistakes into Positive Life Lessons with Mike Anderson by Chasidy Rae Sisk

Mike Anderson of Collision Advice recently explained how to turn eight common collision shop owner mistakes into life lessons to benefit their businesses. “When you look at mistakes you’ve made, you have to realize that they aren’t mistakes if you’ve learned from them, and when you learn from them, they become life lessons. I’ve got a lot of life lessons I’d like to share today,” Anderson began. While presenting “Life Lessons of Collision Shop Owners” on Sherwin-Williams’ Ecolean University, Anderson was joined by Mike Lanza, manager of business consulting services at Sherwin-Williams Automotive Finishes, as they discussed why shops struggle and how to fix it. Anderson’s first life lesson focused on the importance of cycle time. He explained, “Cycle time should be important for DRP and independent shops alike because the basic goal in business is to get to breakeven as soon as you can every

Continued from Cover

Luxury Vehicle Sales distancing and sanitary measures implemented since they reopened. It’s been quite understandable consumers have been putting off car buying due to other needs during the pandemic. Consumers are facing an unfortunately high unemployment rate, as well as increased financial anxiety and budgetary restrictions, which is impacting car sales all across the board. However, while concerns will remain for quite some time, it doesn’t all look terrible. Congress is working out another stimulus package, and Americans may see some additional cash in their accounts soon that undoubtedly could push some consumers who are on the luxury/non-luxury fence to splurge for a luxury vehicle. The job market is expected to bounce back as the pandemic tapers off, meaning people will get back to having a regular, reliable paycheck and extra cash in their pockets. Consumers may then start reconsidering

month. Fixing cars in a reasonable and timely manner will improve your customer satisfaction rate, and if you ﬁx vehicles faster, that allows you to bring more cars in sooner and make more money.” Consumers aren’t the only ones who care about cycle time. This is a vital factor for insurers, particular-

Mike Anderson

ly those with which the shop has a DRP relationship, because it leads to improved loss adjustment expenses, reduced rental expense and higher CSI scores. OEMs also care about cycle time because it impacts their brand; customers inconvenienced by shop

delays are more likely to have a poor opinion of the vehicle manufacturer. Shops should strive to repair vehicles two to four days faster than their market average. “Cycle time is important to all stakeholders in the repair process, but it should be most important to you as a business owner because it’s the key to your breakeven point, which is how you put more money in your bottom line,” Anderson emphasized. Cycle time can be broken into three micro-cycles: pre-repair, repair and post-repair. Pre-repair cycle time can be positively impacted through scheduling innovations, streamlining the administrative process, 100% disassembling, obtaining the right part the ﬁrst time as fast as possible, dispatching in a timely manner and avoiding the pitfall of having too much work-in-progress onsite. According to Anderson, “Pre-repair is the biggest opportunity for most shops.” Post-repair delays occur when there are issues with paperwork, last minute supplemental ap-

proval delays, notifying the customer the repair is complete too late in the day and struggles with payment verification. “These are self-inflicted,” Anderson stated. “Most of this is caused by doing things incorrectly during pre-repair.” The second mistake shops make, which can be turned into a life lesson, is inappropriate staffing. Build the team’s bench by cross-training technicians to fill each other’s shoes, and improve gross sales per collision tech by alleviating admin work from their shoulders. Anderson urged shop owners to consider the value of a parts person as well: “Shops often tell me they can’t afford a parts person, but I’ve found that the average tech makes a shop between $100 to $135 per hour in gross profit—you can hire a parts person for less than that, allowing techs to focus on fixing the vehicle, so the vehicle moves through the process quicker, making room for more cars and allowing the shop to See Shop Owner Mistakes, Page 26

more expensive vehicles as opposed to basic, cost-eﬀective, non-luxury ones. Cox Automotive made sure to include that BMW continues to take the gold medal as the top luxury brand, continuing the trend since Q3 2018, with Audi and Lexus closely behind. Luxury SUVs are still at the forefront of shoppers’ minds, with 62% of people looking for an SUV as opposed to a sedan. As the market recovers and consumers have more money for spending, the hope is that demand will increase for luxury vehicles of all makes and models, which will make sales bounce back to pre-COVID levels and beyond. We thank CBT News for reprint permission.

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Liability Exposures on the Rise Globally: AGCS by Ryan Smith, Insurance Business Magazine

Liability exposures for companies around the world are increasing, according to a new report from Allianz Global Corporate & Specialty (AGCS.) Rising litigation, collective redress and large court verdicts, frequent recalls in the automotive and food sectors, civil unrest, environmental concerns and other factors will likely impact businesses and insurers, according to the report, which highlighted ﬁve trends for the sector. “Pricing in the liability insurance market may have turned in recent months. However, social inﬂation trends and large court verdicts continue in the United States,” said Ciara Brady, global head of liability at AGCS. “This, combined with expanded exposures for non-U.S. companies doing business in the U.S. and an increase in automotive part recalls, is putting pressure on liability insurers. “Overlay this with the uncertain

economic outlook, political instability and unknown impacts from coronavirus, and this is creating a challenging market for clients, brokers and insurers alike.” Trend 1: Social inflation in the U.S. and the rise of collective redress globally Social inflation is particularly prevalent in the U.S., driven by the emergence of litigation funders, higher jury awards, more liberal workers’ compensation claims and new tort and negligence concepts, AGCS said. The median settlement amount of the top 50 U.S. verdicts from 2014 to 2018 nearly doubled, from $28 million to $54 million. Litigation funding is also on the rise in the UK, Europe and elsewhere, contributing to a growing trend of collective redress as benchmarks for consumers to file class actions are lowered. While AGCS said it was too early to identify a definite trend, court closures due to COVID-19 may slow down social inflation as plaintiffs realize that it may be years

before their case is tried and therefore may be willing to settle out of court. Trend 2: Rising automotive repair and recall costs Recent years have seen a growing number of recalls in the auto industry, both in the U.S. and Europe. In the U.S., there were 966 safety recalls aﬀecting more than 50 million vehicles in 2019. In Europe, 2019 saw 475 recalls—the highest single-year ﬁgure in the 2010s and an 11% year-over-year spike. In many cases, auto components are produced by one of only a few suppliers that serve the entire industry, which can make it prone to accumulation risks. As a result, recalls have become larger and more expensive over time, AGCS said. Industry losses are also driven by the increasing complexity of technology, which can increase time and labor rates for repairs. Trend 3: Food safety risks and recalls Food recalls are increasing globally,

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driven by factors like global manufacturing, fewer suppliers in complex supply chains, enhanced regulatory scrutiny, and improved technology that allows better traceability and pathogen detection, AGCS said. The COVID-19 pandemic could have a signiﬁcant impact on food recalls in the future, AGCS said. While dramatically increased hygiene standards could reduce contamination risks, risk exposures could also rise due to temporarily closed and restarted factories, decreased regulatory visits and erratic supply chains. Trend 4: Riots and civil unrest Recent civil unrest in the U.S., Chile, Hong Kong and elsewhere are high-proﬁle examples of the rise of civil unrest globally, AGCS said. “Political violence increasingly causes property damage, disruption and loss of attraction and revenues to many businesses,” AGCS said. “For example, civil disorder in the wake of the death of George Floyd in many U.S. cities is expected to have caused losses of more than $1 billion.”

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While the COVID-19 outbreak may have temporarily suppressed civil unrest in some countries, AGCS warned that the underlying social issues remain—making it likely that further protests will occur in the near future. Trend 5: Indoor air quality after COVID-19 Two environmental risks are particularly paramount for businesses right now: indoor air quality concerns with legionella and mold growth, and the increasing risk of environmentally driven prosecutions, ﬁnes and remedial actions as public awareness of pollution and natural capital depletion grows, AGCS said. Mold and legionella risks have been exacerbated by the pandemic-related shutdown of commercial buildings and hotels; when certain air quality or water installation systems are dormant for a time, they are more susceptible to bacterial contamination. Undetected mold growth can also result from real estate companies delaying planned maintenance or renovation activities, AGCS said. We thank Insurance Business Magazine for reprint permission.

America’s Best-Selling Electric Cars in 2020 by Danielle Ling, PropertyCasualty360

As innovative brands like Tesla continue to advance in technological developments, accessibility to consumers and sales, the popularity of electric cars continues to grow steadily, as well. There were close to zero electric cars on the road anywhere in the world in 2010. That may seem hard to believe now, as the global stock total topped 7.2 million in 2019— and that’s not even including new car sales so far in 2020. 2019 recorded 2.1 million electric passenger car sales, the International Energy Agency (IEA) reports, culminating in a global stock total of 7.2 million electric and plugin hybrid passenger cars—more than doubling the international stock total in just two years—up from 3.2 million in 2017. With this explosive growth in a new market comes a need—or opportunity—for new insurance products. There are many factors to consider in car shopping, including price, fuel costs, safety and more. In shopping for an electric car, these main con-

siderations are much the same—but what about insurance coverage? Insurance basics for electric cars According to Allstate, auto insurance policies for electric cars aren’t much diﬀerent than traditional coverage for standard fuel-run vehicles. One additional consideration drivers should consider, however, pertains to more than just your new battery-charged ride. According to Allstate, the installation of vehicle charging stations may aﬀect homeowners’ insurance policies. The American Association of Insurance Services reports that laws in at least two states, Oregon and California, require some homeowners and condo owners to have liability coverage that protects the charging equipment. Where electric cars dominate the roadways Insurers should take note of where electric cars are most populated. Breaking down electric car ownership by region, China dominates the market. According to the IEA’s 2019

Global Outlook report, China accounted for more than half of electric car sales globally in 2019, and 3.35 million of the global total todate. Europe takes second place with 560,000 sales, followed by the U.S., with roughly 330,000 electric passenger cars sold in 2019. Despite rapid year-over-year growth, electric cars and plug-in hybrids accounted for just 2.6% of global passenger car sales in 2019, according to the IEA’s 2019 Outlook. Looking at 2020, the IEA expects electric cars to outperform the automobile industry as a whole this year. Sales of electric cars are expected to be in line with 2019’s total, while the global passenger car market is expected to decline by 15%, largely due to the COVID-19 pandemic, experts say. Facing the latter-half of 2020, a new report from Statista sourced data from Clean Technica to determine the estimated sales of electric vehicles from January through June 2020 and rank the best-selling models in the ﬁrst half of 2020. We thank PropertyCasualty360 for reprint permission.

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Continued from Page 22

Shop Owner Mistakes ultimately make more profit.” Undervaluing culture and trust was the next life lesson discussed. Obtaining the trust of the OEMs, insurers and employees is vital for a shop to dominate in the future. “Broken promises lead to a loss of trust. Sometimes, we have to go the extra mile to earn someone’s trust,” Anderson said. Lanza added information about weekly Personal Responsibility in Delivering Excellence (PRIDE) meetings held at Sherwin-Williams, where everyone shares their needs, successes and failures. “Everyone in the business is responsible for providing excellence, plus this allows management to hear everyone. Just being heard is so important,” Lanza said. Regarding the fourth life lesson—having a lack of financial knowledge—Anderson explained the purpose of a profit and loss statement is to determine where you’re making money, losing money and not maxi-

mizing profits. “When a shop is making a lot of sales, we don’t focus on what made us profitable,” he pointed out. “Lots of sales cover lots of sins.” Relying on position statements to get paid is another common mistake amongst collision repairers, according to Anderson. The 14 manufacturers that represent 98% of U.S. vehicles sales have position statements, but when asked what to do about the OEMs that don’t, Anderson insisted, “Quit relying on position statements. We need to dig deeper into OEM repair procedures. Often, repair procedures indicate that a scan is needed to complete a process.” Anderson’s sixth life lesson focused on the importance of hiring an in-house mechanic as it pertains to labor hours per estimate, the growth of mechanical labor operations and the impact this can have on both cycle time and gross profit. The penultimate mistake shop owners make is not mentoring others. “In the old days, people learned by working alongside a master, and everything they did was observed by the master,” Anderson shared. “To-

Mercedes GLB250 Recall Issued for Rear Spoilers That Detach by David A. Wood, CarComplaints.com

A Mercedes-Benz GLB250 recall is necessary because the rear spoilers above the tailgates may not have been welded correctly and could allow parts of the spoilers to ﬂy oﬀ the SUVs.

The 2020 Mercedes GLB250 recall includes 11,450 SUVs— 10,644 in the U.S. and 806 in Canada. The upper surface of the rear spoiler might not have been welded correctly or not welded at all to the base part. In the beginning of March, Mercedes launched investigations

based on a complaint describing how the rear spoiler detached from the SUV. The rear spoiler consists of an upper shell and a base part, with the upper surface welded to the base part. Mercedes found the weld connection between the upper surface and base part of the rear spoiler was missing. The supplier determined a production mistake couldn’t be ruled out that caused welding mistakes or missing welds. A driver may notice noise when opening the tailgate, scratches in the coating of the roof in the area of the tailgate or by seeing a spoiler that doesn’t look like it ﬁts correctly. Mercedes dealerships will inspect and if necessary replace the GLB250 rear spoilers once the recall begins Oct. 13. Model year 2020 GLB250 owners may contact Mercedes at 800-367-6372. We thank CarComplaints.com for reprint permission.

day, things move so fast that managers often aren’t around when their people first use their new knowledge. Many managers also have a ‘let me just do it’ mentality, but great leaders tell, show, watch, correct and repeat; you have to adopt this philosophy for building future leaders. Take a chance, mentor others.” Teaching allows you to learn twice. Make sure you’ve set clear expectations, provided the proper training and equipment, and allowed time to acclimate to the new information. Quoting Bob Goshen, Anderson added, “Leaders… should influence others… in such a way that it builds people up, encourages and edifies them so they can duplicate this attitude in others.” The eighth and final mistake to turn into a life lesson Anderson shared was playing not to lose, instead of playing to win. “Most of us start out playing to win! We move to playing to not lose. If I do this, my employees might quit, I might lose a DRP—we are focused on what we might lose, not what we might gain. Get off the sidelines and into the game! Don’t

focus on what you might lose; focus on what you could gain!” Anderson closed with an anecdote about his 23-year-old self being discouraged by the constant complaints he heard from collision repairers. His father told him he had a decision to make: “Once you’re gone, will folks look back and say the collision repair industry sure changed Mike Anderson? Or will they look back and say Mike really changed that industry? What’s your legacy?” For more information about Collision Advice, visit collisionadvice .com Throughout the presentation, Lanza shared insights into how Sherwin-Williams can assist shops with each life lesson. More training videos are available at www.ecolean university.com. Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today! www.autobodynews.com

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autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 29

with Stacey Phillips

From the Desk of Mike Anderson with Mike Anderson

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

Five Years of Data Shows ‘Who Pays’ Surveys Making a Difference It’s been five years since I launched the first of our quarterly “Who Pays for What?” surveys, and I’ve been excited to see some of the changes in the industry I believe can be traced back to the industry’s participation. In the very first “Who Pays” survey back in 2015, for example, less than half of shops reported being reimbursed on behalf of the consumer on a regular basis by the eight largest insurers for tinting color. That has crept up gradually ever since, with 58% of shops this year saying they are reimbursed on behalf of the consumer from insurers for that procedure all or most of the time. Five years ago, about four out of five shops said they would bill for the labor to denib a vehicle if that procedure was necessary for the job—which it is on half or more of refinished vehicles, according to more than 75% of shops. But also

five years ago, fewer than one-third of shops said they were regularly reimbursed from insurers on behalf of the consumer for the denib operation by the eight largest insurers. In fact,

on behalf of the consumer by the largest insurers for the “not-included” denib procedure, but the situation has certainly improved. In a “Who Pays” survey this year, just 22% of

A “Who Pays for What?” survey earlier this year found more shops were being paid regularly for the “denib” procedure

44% of the shops that billed for it said those insurers “never” reimbursed them for it. Now five years later, shops are still not getting regularly reimbursed

shops said the eight largest insurers never reimburse them on behalf of the consumer when denib was necessary, exactly half of the percentage in 2015.

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And just 12% of the more than 750 shops that participated in the survey said they never bill for the procedure when required, a 40% reduction over five years in the number of shops that had been doing the procedure “for free.” This is a measurable change on a very common repair procedure. I’m not the only one who thinks the surveys are having an impact. Among the shops that took our most recent survey, 88% said participating in the surveys has helped them improve their business. About twothirds said participating in the surveys offer a good reminder about “not-included” procedures they are doing but for which they may not be itemizing and billing. And more than three-quarters said they use the survey to train and remind their staff about such procedures. September is your next oppor-

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tunity to participate in a survey. It can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. We do not share information or individual responses with anyone. Visit this website to start: https:// www.crashnetwork.com/collision advice

Here’s a bit more of what the surveys have shown us this year. About 57% of shops that bill for the time it takes to mask internal areas for refinish or cut-in are reimbursed by the eight largest insurers on behalf of the consumer “always” or “most of the time,” yet nearly one in three shops (32%) never get paid for it. That’s because half of them (16%) acknowledge having never thought to charge for it, and the other half (16%) be-

lieve—presumably based on experience—the insurers never pay for it. The situation also has at least improved over time; in 2015, only 32% of shops reported being paid regularly for this procedure, and more than 40% of shops—twice the percentage as of today—believed the insurers “never” paid for it on behalf of the consumer. The surveys have also shown that some insurers are much more likely than the eight largest to reimburse shops on behalf of the consumers for “not-included” procedures when they need to be done. When asked how often they are paid to spend the extra time it takes to match the OEM paint texture on a repaired area, for example, shops said they are almost twice as likely to be reimbursed for that procedure by insurers like PURE or Chubb than they are by some larger insurers. Of the shops that negotiate to be paid for matching OEM texture, 74% said they are reimbursed on behalf of consumers “always” or “most of the time” by Chubb, compared to just 41% who said that one large insurer did.

Even more mainstream insurers like Erie Insurance (No. 12 in terms of market share) pay shops for these same “not-included” procedures much more frequently than the eight largest insurers. Shops taking the survey reported the payment frequency for five additional insurers (Acuity, Amica, Chubb, Erie and PURE) on four different repair procedures (denib; feather, prime and block; mask for prime; and match OEM texture.) Across all four procedures, Chubb had the highest payment frequency, with, on average, 76% of shops that negotiate for the procedures reporting they are paid “always” or “most of the time” by Chubb on behalf of the consumer. PURE, which like Chubb, targets more aﬄuent customers, had the second-best payment frequency, with 74% of shops, on average, saying they are paid “always” or “most of the time” for the four procedures. The three other insurers—Acuity, Erie and Amica (No. 22 in terms of market share)—were not far behind, with averages of 70%, 72% and 68%, respectively.

These averages are all far above the percentage of shops reporting the eight largest insurers reimburse them for these procedures on behalf of the consumer. For each survey you complete, you receive a free 65-page report with all the findings, and resources and ideas to help you put them to use in your business. You can also use the link for the survey above to download previous survey reports for free. So if you’ve taken the surveys in the past but it’s been a while, make this the month you get back to it. It takes just a few minutes of your time, four times a year. If you’ve not participated, consider this my personal invitation to check it out. I truly believe it can help your business, which helps the industry as a whole. As I like to say, “Don’t delay. Do it today!”

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Will Burgeoning E-Commerce Hurt the Collision Repair Industry? by Gary Ledoux

For many months prior to March, the collision repair industry had been preoccupied with ADAS systems and autonomous cars and trucks and their effect on the collision repair business. The systems are purported to greatly reduce accidents and mitigate the severity of accidents that do occur. Many in the industry were afraid this would have an ill effect on the collision industry—fewer accidents and less severity means less work for body shops. According to Frank Terlep, industry veteran and author of the recently released book, “Auto Industry Disruption,” only about 21% of the U.S. fleet currently has ADAS capability. If past history is any indication, it could be years before ADAS-equipped cars reach a crucial mass where accident prevention and severity mitigation have a profound impact on the number of cars requiring collision repair. For instance, hydraulic brakes for cars were patented in 1917. Ford would be the last auto manufacturer in the U.S. to adopt the hydraulic system in 1939. What might have a more immediate and long-lasting effect is the burgeoning concept of e-commerce, most lately exacerbated by the COVID-19 pandemic. COVID 19 Hits With the onslaught of the COVID-19 pandemic, people started working from home if their occupation allowed it, or many were furloughed if they couldn’t. Travel came almost to a standstill. Highways were empty, airplanes were empty, restaurants and hotels closed and American business was brought to its knees for weeks. With so many people no longer commuting and/or minimizing their trips, even locally, collision shops reported a decrease in business by 40% to 50% or more. Fortunately, American business is not only resilient but also innovative and resourceful. Despite many consumers staying home, American business is continuing to find new and innovative ways to reach and engage them through online

services and products. Granted, online purchasing is nothing new. It has been growing for years. But the past few months has seen some dramatic changes and increases. Online Shopping Goes Wild QuantuMetric, a digital consulting and intelligence company, estimates an increase of 146% in online retail orders from March through June. Neilsen, an independent consulting company in the UK, notes that in March, more than 600,000 people who had never used e-commerce before ordered some product online. Similar consulting companies listed similar results. One of the commodities most affected is weekly groceries and related products. According to Joshua Schall of J. Schall Consulting, an Austin, TX-based consultant for the consumer packaged goods industry, in 2015, only 15% of those consumers surveyed had bought groceries online. In March, that number had climbed to 55%. A survey conducted by Rakutan

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Super Logistics, a national leader in e-commerce order fulfillment and freight brokerage, shows a 250% increase in groceries sale volume for the month of March. Other products seeing a sizeable uptick were baby products, medical and cleaning products. Not surprisingly, there was a rise in online orders of alcoholic beverages. Again, this equates to fewer trips to the supermarket and related stores, fewer miles traveled and fewer traffic accidents. Lifting Stay-At-Home Orders May Do Little To Change Customer Behavior According to Rakutan, once stay-at-home orders are lifted, most consumers are more likely to stick to their newly-developed traits of buying products and services online. Those that stopped mall shopping, due to social distancing concerns, and used online shopping instead may opt to stay away from the malls completely. And speaking of malls, they have been dying for years. According to a

study done by Credit Suisse and reported in Business Insider Magazine in November 2019, between 20% and 25% of America’s 116,000 shopping malls will be closed by 2022. Note this was announced prior to the pandemic. Experts note not the least of the reasons for the mall’s death-spiral is online purchasing exasperated by stores’ slow adaptation to changing consumer demographics and subsequent buying habits. Fewer malls, less reason to drive to them, fewer traffic accidents. Rakutan also notes “some consumers have invested in fitness equipment to use at home and may never return to a gym. Others have learned how to cut their kids’ hair and may never pay for a professional cut, for as long as their kids will allow it. Many organizations will have also noticed how cost-effective allowing employees to work from home can be. It won’t come as a surprise when the remote working population increases from the current 4.7 million See Burgeoning E-Commerce, Page 42

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Historical Snapshot with John Yoswick

Associations Assembling with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@gmail.com.

AWAF Hosts Training, Awards Scholarships and Continues to Inspire Despite COVID

Southeast News

Although in-person meetings are on sona (your brand) and be authentic. hiatus due to the threat of COVID-19, â&#x20AC;&#x153;With a wealth of experience the Automotivewith Womenâ&#x20AC;&#x2122;s Alliance gained working for numerous ForChasidy Rae Sisk Foundation (AWAF) has not al- tune 500 companiesâ&#x20AC;&#x201D;including her lowed the chaos of 2020 to prevent current role as a senior-level global them from inspiring and enlightening executive for a $4 billion corporamembers. tion, Linda shared some of the wisFrom increasing the number of dom sheâ&#x20AC;&#x2122;s gained throughout her own virtual professional development of- career journeyâ&#x20AC;&#x201D;including some very with Chasidyand Rae Sisk ferings to awarding scholarships personal early traumas that helped more, AWAF refuses to let any glob- shape the trajectory of her career,â&#x20AC;? al pandemic stop these motivated la- shared AWAF Professional Developdies from carrying out their mission. ment Committee Co-Chair Sherry Educational content has been Muir Irwin. coordinated with the current situaChristina McKenna, founder tion in mind. with Chasidy Rae Sisk and president of Bluestone Execuâ&#x20AC;&#x153;Faced with an invisible enemy tive Communications, shared advice and a temporarily diminished automo- related to â&#x20AC;&#x153;Power Presenting for the tive marketplace, working remotely or Virtual Presenterâ&#x20AC;? on July 23. being furloughed can play havoc with According to Muir Irwin, â&#x20AC;&#x153;Chrisour daily lives, and eachChasidy programmed tina brought her knowledge, wisdom with Rae Sisk session has been specially selected to and wit to our members, emphasizing address stressors and ease transition that communication is more importto the â&#x20AC;&#x2DC;new normalâ&#x20AC;&#x2122; brought on by ant now than everâ&#x20AC;&#x201D;and with the inCOVID-19,â&#x20AC;? said AWAF Profession- creased emphasis on virtual platforms al Development Committee Co-Chair for communication, we must be intenCorinne Smereka. tional in projecting our professionalwith Chasidy Rae Sisk â&#x20AC;&#x153;Tapping into our talented mem- ism and purpose.â&#x20AC;? bership expertise and experience, McKenna shared â&#x20AC;&#x153;Seven SeAWAF has provided and will contin- crets to a Commanding Virtual Preue to provide a series of free, virtual, sentationâ&#x20AC;?: one-hour sessions via Zoom technology. These sessions designed Rae to Sisk â&#x20AC;˘ Use the video option whenever poswithare Chasidy explore new perspectives, gain new sible. skills and promote networking op- â&#x20AC;˘ Know that while style matters, conportunities during these challenging tent is king (or queen). times,â&#x20AC;? Smereka continued. â&#x20AC;˘ Assume your audience is distracted The first session in AWAFâ&#x20AC;&#x2122;s and adjust. withwas Chasidy series, held in May, â&#x20AC;&#x153;Clarity Rae in Sisk â&#x20AC;˘ Frame the flattering shot. the Midst of a Crisis: How to Find â&#x20AC;˘ Leverage good lighting. Your New Normalâ&#x20AC;? with Dr. Priscil- â&#x20AC;˘ Pay attention to audio. la Archangel, president of Archan- â&#x20AC;˘ If your event is recorded, scrap the gel and Associates, LLC, followed laptop. by â&#x20AC;&#x153;Difficult Conversations: Open with Chasidy Rae Sisk Heart, Open Mind,â&#x20AC;? presented June During â&#x20AC;&#x153;Diversity, Equity & In4 by Diane Morrison and Marian clusion 101â&#x20AC;? on Aug. 13, Cheryl Morlock, co-creators of Expanding Thompson, CEO and founder, and Leadership Capabilities. Margaret Baxter, executive direcOn June 25, Linda Taliaferro, tor, of the Center for Automotive founder and CEO of The TEEâ&#x20AC;&#x201D;The Diversity, Inclusion & Advancement Extra Effort, LLC, discussed â&#x20AC;&#x153;Turn- (CADIA) shared important insights with Ed Attanasio ing Career Trauma into Career Tri- to â&#x20AC;&#x153;help attendees gain an underumph,â&#x20AC;? sharing six tips: find your standing of the diversity, inclusion voice and use it, know your worth, and equity (DEI) fundamentals rerelationships are everything, focus quired to value differences and be on being, establish your unique per- more inclusive in order to enhance

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personal and organizational contribution,â&#x20AC;? Muir Irwin said. AWAF is coordinating additional seminars for the remainder of the year and has scheduled a Virtual Annual Holiday Party for Dec. 2, when the association will be joined by Lisa Drake, Ford COO of North America and vice president of global purchasing, as they celebrate the second annual AWAF Awards. During the pandemic, AWAF also awarded seven scholarships. Danielle Didia, a junior at Kettering University in Flint, MI, received a $2,500 scholarship, provided by Warner Norcross + Judd LLP, while Kettering senior Kathryn Cesiel received $2,500 provided by Magna International. Christian Brothers Automotive provided two $2,500 scholarships, received by Eva Muller of Michigan Technological University and Kathryn Mueller from Wayne State Uni-

versity. AWAF awarded a $2,500 scholarship, in honor of the Automotive Heritage Foundation, to Twanda Dixon, a freshman at Rochester Institute of Technology in New York. The association also sponsored a $2,500 scholarship to Jacqui van Zyl, a freshman at Georgia Institute of Technology in Atlanta, as well as a $2,500 scholarship to Jennifer Mazzola from Vanderbilt University. Additionally, AWAF has gotten creative with ideas to virtually advance and empower young women in STEM by introducing a contest for high school and college students to submit ideas for a STEM Kit to be offered to young women in middle school. For more information about AWAF, visit awafoundation.org.

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with Stacey Phillips

Techs of the Future

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

with Stacey Phillips

Preparing & Training the Agents of Change in Future Technology A few years ago, when people talk- mechanical systems.” ed about connected vehicles and She recalls attending the SEMA self-driving, Elaina Farnsworth said Show in 2016 and listening to John it was perceived as a computer-based Waraniak, vice president of vehicle industry. technology at SEMA. The CEO of The NEXT Educa- “He said that many years ago, tion said every person interested in we would be standing up on this stage intelligent transportation and saying, ‘I have the fastest, coolest and loudest car,’” mobility systems was expectsaid Farnsworth. “In the next ed to have computer science 10 years, we are going to be and engineering skills. Very quickly, organisaying, ‘I have the most conzations realized the need nected car.’” for technicians to repair the Anticipating the changes infrastructure and technolo- Elaina Farnsworth ahead, Farnsworth set out gy in these vehicles after a to create a learning path for collision. the next generation of workers inter “It is no longer your dad’s auto- ested in being part of the automotive mobile,” said Farnsworth. “Cars are industry. evolving where most of all vehicles “We need technicians to underare built with sensor technology and stand the coolness around these vemove data. As a technician, you will hicles and we need the repairers to need to know a little about sensors, understand this is a very interesting technology, electrical systems and field that pays a lot of money,” she

said. “It doesn’t take a four-year degree.” Instead, she said technicians can learn the necessary skills through targeted education. Farnsworth has focused on certification, training and upskilling programs in intelligent transportation, connected and autonomous vehicles and new mobility systems for more than 20 years. In 2018, she established The NEXT Education, offering certification and credentialing programs related to connected transportation systems, autonomous vehicles and cybersecurity. This year, Farnsworth partnered with Regina Hopper, who has a background in transportation, communications, energy public policy, media and law, and serves as the chief strategy officer. “Our mission is simple: we want to create agents of change who will lead critical new mobility systems

development and deployment,” explained Farnsworth. The program is based on what she refers to as “MicroTraX,” a hybrid education model that combines self-paced learning with instructor interaction. The online live training is presented by subject-matter experts who are leaders in their respective fields. Each seven- to 10-minute module is built to be a consumable piece of competency-based education to prepare organizations and individuals for the future. Since COVID-19, The NEXT Education has been focusing on online live instruction, but plans to return to in-person seminars in 2021. The learning is geared to a cross-section of the industry and is targeted to both new technicians entering the industry as well as those seeking professional development.

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learn nolo beca “one tinua info vant ting we h as w ture,

Fixed Operations Director Recognizes Need for Training in Future Technology About a year ago, Jamie Powers, the fixed operations director at Lujack Auto Group, learned about The NEXT Education’s certification program in autonomous vehicles. He explored what the organization offered and whether it would be a good fit for his technicians at 20 stores in Michigan, Indiana and Iowa. With autonomous features becoming more prevalent in cars today, Powers recognizes the need to have all sensors on a vehicle correctly set when a customer leaves the shop. “We are under a new liability,” he said. “That started waking me up to learn the new processes

Farnsworth said students can learn the latest in 5G or satellite technology without being overwhelmed, because the information is presented “one bite at a time.” Content is continually added every quarter, so the information remains current and relevant. “My real passion has been getting the word out about the dire need we have today for technicians as well as what we are going to see in the future,” she said.

that are coming our way.” Four of his body technicians enrolled in two online courses from The NEXT Education, focused on the electronic components included in autonomous vehicles. They have been impressed with the instruction, and the ultimate goal is to earn a certification in this area. Eventually, Powers plans to have all of his technicians participate in the educational learning. “There’s always an evolution in the car industry and I think autonomy is the next evolution,” he said. Powers said OEMs are slowly taking control

Since COVID-19, The NEXT Education has experienced an increase in usage, especially due to the short training sessions offered. The team of 20 has found organizations are reaching out to have technicians learn additional skills during the current downtime in their businesses. “Many have worked in the industry for years and are moving into a new position due to the unforeseen circumstances worldwide as a result of the pandemic,” said Farnsworth.

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over what collision shops will be required to do to repair vehicles properly. A decade ago, customers could take their cars anywhere. Now, they need to be certified by a certain manufacturer. Autonomous vehicles are going to be part of that, according to Powers, and technicians will need to be certified. “If technicians aren’t certified on autonomous vehicles, insurance companies will not ok a customer to bring in an autonomous vehicle to any shop,” he said. “If we’re not on the leading edge of being certified on autonomous vehicles, that is going to be a big part of the business we’ll miss out on.”

With the collision repair industry evolving, new businesses have been established over the past few years related to predictive analysis and connectivity. Farnsworth said having highly skilled technicians in this new environment encourages workers to remain in the industry and allows shops to stand out from their competitors. “It would be a huge competitive advantage for a small shop to be able to understand the technology changes

that are coming both in sensor technology and data transmission,” she added. In addition to the core competencies every technician will still need to repair a vehicle, Farnsworth encourages shop owners and managers to determine where the majority of their business is coming from. “Instead of seeing this as so vast that you want to start over, take into consideration the skillsets you have See Preparing & Training, Page 52

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with Erica Schroeder

Industry Insight with John Yoswick

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

Latest in Lawsuits Involving Shops, Insurers and an Auto Recycler

Shop Showcase

There was activity recently in three its third version of the lawsuit, after legal battles involving body shops, the first two were dismissed. insurance companies, an auto recyPresnell granted GEICO’s mowith Ed Attanasio tion, noting Eaves’ firm failed to file cler and consumers. A U.S. District Court judge in an opposition to GEICO’s fee request. Florida this summer agreed that a law- But Presnell reduced the amount owed suit in which two Mississippi shops are suing Progressive Insurance for tortious interference should be returned to a federal courtEd in the shops’ with Attanasio state. The two shops were part of a larger federal antitrust lawsuit, originally brought against multiple insurers in 2014, consolidated to the Florida court with about two dozen similar suits involving shops in othwith Ed Attanasio er states. Mississippi attorney John Eaves Jr. began The Mississippi shops’ suit signing body shops on to antitrust lawsuits against insurers back in 2013 was largely dismissed earlier this year, but because AutoWorks Collision Specialists in Jackson, MI, and to $30,298—GEICO had sought just Walker Collision Center in Pica- over $40,000—and said only the atwith Ed Attanasio yune, MI, each pointed to a specific torneys, who he said pursued the matcustomer they said they lost because ter “unreasonably and vexatiously,” of steering tactics they say Progres- must pay those fees, not the shops. sive used, dismissal of their portion Another insurer, Nationwide, of the lawsuit was overturned on ap- also got a court victory in August. peal. The Pennsylvania Supreme Court Progressivewith arguedStacey the Florida announced it was deadlocked in its Phillips court should continue to oversee the review of a lower court’s decision lawsuit, but Judge Gregory Presnell that overturned a $21 million bad said it should return to the Mississip- faith verdict against Nationwide repi federal court where it was origi- lated to repairs made by one of the nally filed. In remanding the case to insurer’s “Blue Ribbon” direct reMississippi, however, pair shops. with Presnell StaceyindiPhillips cated that court might choose not to Because the six justices—a sevallow it to proceed because the fed- enth justice didn’t participate in the eral antitrust claims in the original case—were “divided in a fashion lawsuit have been dismissed. That which prevents a majority disposileaves Progressive facing only accu- tion,” the lower court’s decision to sations of violating Mississippi state throw out the 2014 verdict against Nawith Stacey Phillips anti-steering laws. tionwide stands. “Since no federal claims remain, The lawsuit arose after Daniel that court may decide that it is pru- and Sharon Berg took their coldent to decline to exercise jurisdic- lision-damaged 1996 Jeep Grand tion over the state law claims,” Pres- Cherokee to a Nationwide Blue Ribnell said. bon shop. An appraiser there recHe also ruled this summer on ommended the vehicle be declared with Stacey Phillips GEICO’s request that the other a total loss, but the Bergs alleged Mississippi shops—and their at- that Nationwide, without informtorneys—involved in the portion of ing them, had the vehicle moved to the lawsuit that was dismissed cover another Blue Ribbon shop where it GEICO’s legal fees fighting the case was repaired. The Bergs sued over since 2015. That’s when Mississippi the condition of the repaired vehicle, attorney John Eaves Jr.’s firm filed claiming Nationwide knowingly re-

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SEMA Show Goes On

turned an unsafe vehicle to them as part of an eﬀort to avoid totaling the vehicle. The couple won an $18 million verdict, plus $3 million in attorney fees, but a three-judge Superior Court panel in 2018 overturned that decision. The Bergs appealed to the state’s Supreme Court. Two of those justices issued an opinion in August saying they were in favor of reversing the lower court’s dismissal and reinstating the verdict, while two others said they believe the dismissal should be upheld; the views of the remaining two Pennsylvania Supreme Court justices is not known, but it would seem they were likely split in their views, giving neither side a majority. The justices arguing to reverse the Superior Court’s decision said such verdicts should be overturned only “in the most egregious of cases

Media and Publicity for Shops

when the trial court has committed reversible error.” The justice’s arguing to uphold the reversal of the verdict said there was some question about the trial judge’s impartiality, pointing to that judge’s “protracted we-the-consumer discourse spanning six pages of the opinion,” in which he appeared to step beyond his “judicial role and align himself personally with the interests of insurance consumers.” In yet another legal matter that could provide a lesson for all employers, an auto recycler is being sued by the U.S. Equal Employment Opportunity Commission (EEOC), which says the company violated federal law by denying an employee’s requests for reasonable accommodations—and then ﬁred her—while she was undergoing chemotherapy for cancer. See Latest in Lawsuits, Page 55

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SEMA Show Goes On with Ed Attanasio

Media and Publicity for Shops with Ed Attanasio

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

Are You Defending Your Good Name Online? Your reputation online is always im- spective websites. portant, but during the pandemic it’s You can have amazing empmore vital than ever. loyees, great DRPs and a lot of rewith Everyone can agreeStacey there willPhillips be peat customers, but in the end all fewer cars on the road moving for- you have is your reputation. Compeward, as more and more people will tition is healthy, but sometimes peocontinue to work virtually. ple’s passions make them do things With more competition fighting they wouldn’t normally even consifor less work, a shop’s reputation on- der. with Stacey Phillips line will carry more weight, and that’s In 2008, I began writing for when some shady operators might re- a growing company that provided sort to doing sketchy things, such as “digital privacy solutions.” Their posting fake reviews to disparage the approach was to create a deluge of shop down the street. positive content about an individual In one case, a disgruntled for- or company so any bad things online mer employee with wreaked havoc Phillips on- about them would be bumped down Stacey line for a shop. A body shop owner the ratings. The goal was to get the negative articles, reviews or blogs off Google’s first page, because 75% of all browsers never look past page one, according to Junto Research. During that same period of time, with Stacey Phillips I was also contacted by a company that wanted to pay me well to write fake negative reviews. They had established a ton of bogus emails and online profiles and were targeting companies identified by its clients. When I asked them if it was illegal, they said no, although they admitted it was at with Victoria Antonelli least immoral, so I opted out. Luke Middendorf at WSI Connect in Concord, Luke Middendorf at WSI ConCA, said the best way for a shop to manage its online reputation is to proactively request nect in Concord, CA, protects his positive reviews from its customers clients’ online reputations, including body shops. fired a tech, who had a couple sons “We’ve been implementing rewho were computer whiz kids, and putation-building campaigns for alwith Ed Attanasio they destroyed the owner’s online most all of our clients,” he said. “The reputation within months. It went best way for a business to manage from being just business to being its online reputation is to proactively personal, and the shop in question request positive reviews from its cuslost a significant amount of business tomers. Google and Facebook allow businesses to proactively solicit as a result. In another scenario, a body shop reviews and there are a lot of autowith Gary Ledoux that was producing subpar work hi- mated tools that make the process red a company to defend its reputa- easier to manage. It is against Yelp’s tion by creating a ton of fake reviews policies for businesses to request and posting positive things about the Yelp reviews of their business so it’s shop to push its bad reviews down much more difficult to work with.” the line. Middendorf said you can’t rely In yet another case that occur- on websites like Yelp to monitor rewith Stacey Phillips red recently, two shops in a small views or check for their authenticity. town started manufacturing false “All of the review sites do a negative reviews against each other, very poor job of combating fake but in the end Google black-hatted reviews. Most of the time they avoboth of them and took down their re- id getting involved in any disputes,”

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he said. “They will remove reviews that violate their policies which include personal attacks and explicit language. However, those need to be reported/flagged by someone so that they can be reviewed and considered for removal.” How can you continually monitor your online presence? It’s actually not that difficult. First, perform a search on your shop name in Google, Bing, Angie’s List, Yahoo and other search engines. Delete what you can, including all of your own social networking pages, where you can easily delete your own posts, photos, comments and videos. Ask people who have posted negative things about you to delete their comments, videos and photos. If they refuse to delete a photo, for example, you can usually untag yourself, so that the photo will not appear in any search including your name.

If there are news articles, blog posts, videos, photos or other mentions about your shop that are unflattering, you can always request the page’s publisher to remove them. Not everyone will cooperate, but try anyway. If that doesn’t work, or if you can’t get a hold of the people who posted it, push them down in search results by creating positive content. In many cases, the personal approach may be the best way to go. Quietly unfriend people who are apt to post negative things about you, as well as those who have their own damaged reputations to deal with. You don’t want to be linked to anyone with a questionable reputation, because one rotten blueberry can ruin the whole bunch. On a regular basis, check for any email jokes or other items people send to you or share with you onSee Defending Your Name, Page 48

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Continued from Page 32

Burgeoning E-Commerce to even double the figure. “The point is, once consumer behaviors change, it’s hard to get back to the old way of doing things. When these changes in behavior become permanent, shoppers will stick to the e-commerce brands they discovered over the brick and mortar spots they once frequented.” PaySafe, a UK-based company similar to PayPal in the U.S., conducted a survey of more than 8,000 consumers in seven countries. When asked how their spending habits would be impacted in the future, 38% of all surveyed consumers said they plan to do more online shopping next year regardless of the end of social distancing. In the U.S., that number was 49%. Two-thirds (65%) of consumers that plan to shop online more following the conclusion of the pandemic are doing so because they find online more convenient, and 42% of consumers who plan to shop online more say it is more enjoyable.

Of those people who said they would not increase or maintain a higher level of online shopping, it was because they already conduct the majority of their shopping online. Again, all this online buying could mean fewer cars on the road, fewer miles traveled, fewer accidents and less collision repair work. Change In Shopper Preferences Eventually COVID-19 will be beaten but, according to Rakutan, but what will remain is a “permanent change in shopper preference.” Many people will become more germ conscious. Many shoppers will prefer no-touch deliveries, while social businesses and outlets like communal buffets may suffer a loss in popularity. Consumers may also be less attracted to using public keypads, something which will force retailers to switch to no-touch technology with more focus on general hygiene. Body shops may need to be “sanitizing” customer cars for some time to come. Fighting Fire With Fire It’s more important now than ever, especially since so many people are

online, for businesses, including body shops, to have a prominent e-commerce presence so customers can find them. Business owners should look at their website and Facebook or other social media presence, or better yet, have a disinterested friend look at it. How does it compare, not necessarily against other shops, but the presence of other businesses? I will expand on this in a subsequent article. Looking To The Future Rakutan suggests “consumer views on shopping in a new ‘socially distant era’ will likely remain beyond the pandemic.” Consumers must now deal with what is becoming a “longterm side effect” of the pandemic and a “new normal.” The pandemic acted as a catalyst for consumers’ swift transition to digital commerce and it will likely remain. Rakutan says the post-pandemic situation is similar to the effect of the 2003 SARS epidemic in China. Like the COVID-19 pandemic in the U.S., SARS caused the closure of shops, schools and factories, but

opened the gates for e-commerce merchants. Alibaba, the Chinese equivalent of Amazon, received a huge boost. According to GlobalData, a UK-based data analytics and consulting company, “COVID-19 will have a long-term positive effect on the e-commerce sector, with even the most skeptical consumers forced to abandon physical stores in response to restrictions on movement.” According to PaySafe, “winning in this new e-commerce environment means an even greater focus on consumer experience. To win and keep these new customers that want to shop online more frequently, merchants must offer a seamless product via both browser and smartphone app.” For body shops, this means they must make it easy for customers to reach them via the e-commerce experience.

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Filterworks USA Becomes Autotality to Reflect Expansion Within Automotive Equipment Industry Filterworks USA, a leading equipment distributor within the automotive repair industry and part of Inc. Magazine’s list of Fastest-Growing Companies in the United States four years in a row, on Oct. 1 announced a rebrand to its title and visual identity. The new company name is Autotality, reflecting recent accelerated growth within the automotive repair equipment space stemming from Filterworks USA’s acquisitions of Carolina Collision, Moore Equipment, Trans-Star and Seifert Equipment Company. The new title demonstrates the company’s full spectrum of automotive equipment services to provide quality support for premier manufacturers across the automotive industry, and captures the company’s 360-degree roster of services for automotive service departments and collision repair centers. The new tagline, “Design. Equipment. Service.” clearly conveys the centralized mission of the brand to provide customers with unparalleled facility design, industry-leading equipment and unrivaled service.

Autotality’s growing fleet of vehicles to serve customers throughout the southeast U.S. will incorporate the new logo and tagline.

departments and collision centers, and our new, modern identity will drive continued advancement and growth within the space.”

“Our new brand, Autotality, brings together five of the leading automotive collision equipment distributors in the country with decades of combined experience,” said Gregg Strandberg, founder and CEO of Filterworks USA and president of Autotality. “Autotality is rooted in a passion for top-tier automotive facilities and a commitment to providing customers with industry-leading equipment. “Our new brand name better reflects our growing scope and capabilities as a world-class provider of equipment for automotive service

Autotality’s current market area includes the entire southeast: Florida, Georgia, Tennessee, South Carolina, Alabama, Virginia and North Carolina. Autotality is a licensed general contractor in Florida, Georgia and North Carolina, with additional states likely to be added soon. Autotality’s concrete and general contractor capabilities, collision expertise, new dealer experience and network of equipment manufacturers and dealer relationships will complement continued growth across the automotive space for years to come.

Acquisition Details Filterworks USA is an authorized distributor for leading equipment manufacturers in the collision and automotive repair industry, inducing Garmat USA, Car-O-Liner, Hunter Engineering, Rotary Lifts and more. Founded by Strandberg in 1988, Filterworks USA offers complete design, permitting, installation, training and services solutions for automotive collision centers and service departments, all in-house. In 2019, Filterworks acquired Trans-Star Automotive, Seifert Equipment and Carolina Collision Equipment. In 2020, Filterworks initiated its partnership with Moore Equipment Sales. Jim Seifert will continue to run and grow the Seifert division of Autotality. Larry and Lori Brolsma, the previous owners of Carolina Collision Equipment, remain in key leadership positions within Filterworks, continuing to run the CCE business. Mickey Moore, the previous owner of Moore Equipment Sales, continues to run the MES business for Filterworks. Source: Autotality

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with Erica Schroeder

Industry Insight

with John Yoswick

Committee Demonstrates How Same Part Can Be Described Differently by John Yoswick

Shop Showcase parts platforms and estimating sys-

list of parts categories varies among

The Collision Industry Conference tems. Ed Attanasio (CIC) Parts andwith Materials Commit- CCC ONE has six parts type cattee is continuing to push for more egories, for example, while Audatex and Mitchell have seven. Audatex has an “OE surplus” category, while CCC has “optional OEM” and Mitchell has “OE discount.” with Ed Attanasio The parts platforms that feed into the estimating solutions have their own categories. APU Solutions, for example, segments out “surplus OEM” from “recovered OEM,” two categories not Ken Weiss said some parts suppliers are even found—by those names—in the genuinely unclear as to how to identify their estimating systems. APU’s Eric Marwith EdorAttanasio parts in electronic parts platforms estimatrello said “surplus OEM” parts are ing systems, while others may be trying to new OEM parts in OEM packaging, “game” the system whereas “recovered OEM” are takeconsistency in how parts are defined off parts, OEM parts that may have and described within the industry. been temporarily installed or painted During the virtual CIC this sumwith Ed Attanasio and then removed. mer, the committee showed how the “We hope longer term that the

industry will move in the direction to break those two part types out,” Marrello said. “Certainly we need to agree upon those definitions. But

segmentation.” The committee showed several flowcharts that demonstrate how all these variations in parts categories

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SEMA Show Goes On

Figure 1. A CIC committee used a flowchart to show how a part the suppliers describes as “OEM surplus” can end up with one of three different labels on estimates.

Media and Publicity for Shops we saw five or seven years ago that You’re Going To

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44 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

Southeast_Issue_1020.indd 44

9/21/2020 6:05:48 PM

In the first (Figure 1), a vendor selling OEM parts outside of the authorized OEM channel enters those parts into a platform that uses the “OEM surplus” category for such parts. That platform feeds into an estimating system that uses the “optional OEM” label for those parts. California regulators, however, prohibit the use of the “opt-OEM” label. “So while that part can go into the estimating platform as ‘opt-OEM,’ the end-user is required to choose what they are going to call it on the estimate,” said Aaron Schulenburg, who co-chairs the CIC committee. “You then have a situation where a shop repair plan, and an insurance company estimate, may each potentially choose different nomenclature for the exact same part. One may identify that as an aftermarket part, and one may identify it as an OEM part, and you have an estimating platform that allows for that choice.” In another example the committee showed (Figure 2), a parts supplier may choose to refer to a part as a “Tier 1 replacement” part because it is manufactured and sold by Tier 1 suppliers, such as Denso and Bosch,

who manufacture parts for automakers. But that’s a parts category none of the parts platforms or estimating systems currently use. So that part might be identified as “OE discount” in one parts platform and estimating system,

Ken Weiss, who co-chairs the CIC committee, said parts suppliers may be genuinely unclear as to how to identify parts they are putting into the parts platforms, or directly into the estimating systems.

Figure 2. If a parts supplier describes its part using a term – like “Tier 1 replacement”—not used by either the electronic parts platforms or estimating systems, how it appears on an estimate may vary

but as “aftermarket” in another parts platform and estimating system, resulting in the same part being labeled differently on estimates. In a third example, the committee showed where an “OEM take-off” part can end up categorized on an estimate as “recycled” or “OE surplus.”

“But there are others who deliberately will elevate their part to the highest possible scenario they can,” Weiss said. “This is where specific terms with specific definitions benefit the industry, rather than leaving things open to supplier interpretation or decision,”

Schulenburg said. “We need to be doing our best to be as transparent as possible. There’s a big difference in someone looking at something called an ‘OE surplus’ part and assuming that’s an OEM part, versus the impression of what a ‘recycled’ part is. I think we need to do everything in our power to make sure we are distinguishing parts appropriately.” The committee, however, has had difficulty reaching a consensus on what definitions and names for the parts types should be. The committee had been so polarized on the issue that Weiss and Schulenburg decided to break it into two “more like-minded” work groups to each form a proposal on how to most clearly describe parts available in the marketplace for those making parts decisions. Weiss said his work group came up with six different categories of new parts, whereas Schulenburg’s work group simply defined four attributes of an OEM part, and said any new part not having all four of those attribute were “non-OEM.” “That’s the struggle we got hung up on last year,” Weiss said at CIC this summer.

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Is Your Shop and Insurance Coverage Prepared for A Riot? by Gary Ledoux

We have all heard about the rioting going on across the country. For months, at least a dozen cities experienced businesses being burned, looted and extensively damaged. Government instituted curfews closed off whole sections of cities and shortened business hours causing businesses to lose income. It’s unnerving for everyone. Fortunately, it would appear collision shops have dodged the bullet, so far. Industry leader Brandon Eckenrode, of the Collision Industry Foundation, indicated no shops have requested financial help from the organization due to riot damage.

Any business owner can’t help but wonder if the mayhem will stop, or if it will expand into their area of the city. This must be especially perplexing for body shop owners who, besides worrying about their own property and equipment, are entrusted with customers’ vehicles, which must not only be repaired, but kept safe in the meantime. To find out how collision shop owners can help protect themselves if faced with civil unrest, we contacted several insurance company representatives to ask their advice. Generally speaking, they were very helpful and we are grateful for their contribution, but they preferred not to have their name or company mentioned publicly. Here are some of their major points: Coverage for Civil Commotion The riot (civil commotion) insurance coverage you may have, or may not have, is predicated on the state in which you operate your business, the

insurance carrier and how your policy is written. Check with your own insurance agent and see exactly what is covered, and, equally important, what is excluded. One representative noted, “In general terms, basic property insurance won’t be enough, but the shop owner can purchase a business operations policy and a garage keepers policy, which would usually extend coverage for damage done by rioting, fire and civil commotion.” Having Enough Coverage When talking with your insurance agent, consider not only what is covered (building, contents, equipment, company vehicles, customer cars) but also the amount of coverage in terms of dollar amount. One insurance representative noted it is not uncommon for small business owners to request the barest minimum of insurance coverage; for example, just enough to meet a standard set by the local municipality so they can get their business license or meet some other prerequisite. Business Interruption Business interruption coverage can be rather complex and beyond the scope of this article. This coverage can include loss of business hours due to official curfews and complete closure of the business due to riot damage. Policies may require a waiting period of 72 hours before claims can be made, and may be limited to a certain number of weeks of closure. Documentation of all facets of the loss are critical. Damage Mitigation Shop owners should take reasonable steps to minimize damages. This may mean boarding up windows or moving customers’ cars to another safer location. The cost of such actions, such as hiring people to board up shop windows or move cars to another location, may be reimbursable under the insurance policy, or not. Shop owners need to check with their agents.

others are as well. Building removal experts may see this as an opportunity to charge premium rates. Make sure you have enough coverage.

Vehicle Accesories If you are working on accessorized vehicles, especially those with expensive items like high-end stereo equipment, custom tires and wheels, or light bars and lift kits, check with the vehicle owner to see if their insurance will cover those items if they are lost due to civil commotion. Chances are, the shop’s insurance will only cover standard accessories that came with the vehicle from the vehicle manufacturer and not something that was added after the fact. The vehicle owner’s insurance may only do the same unless they purchased some sort of rider policy. Building and Rubble Removal If your building becomes a total loss, you may be required under a city ordinance to remove the rubble of your building. It may sound morbid, but, before this becomes necessary, check to see how much it would ordinarily cost to remove and dispose of a building of your size. If your building is wrecked, chances are many

Terrorists and Vandals So far, those committing the many acts of civil commotion have been largely deemed “protesters.” However, insurers may assert they are not protesters, but terrorists, and thereby the damage is not covered. Also, if your building is left unattended for a certain amount of time, your insurer may invoke a vacancy exclusion deeming damage inflicted by vandals rather than rioters, which may not be covered. Again, and this cannot be stressed enough, check with your own agent to see if you have the correct coverage, in large enough amounts.

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Restore Crashworthiness with Corrosion Protection—Keys to a Safe and Proper Collision Repair by Chasidy Rae Sisk

“Today’s vehicles are highly engineered and not forgiving of imprecise repair processes. When it comes to crashworthiness after the repair, millimeters and milliseconds matter!” according to Scott Peirce, strategic account manager at 3M, during ASA’s Aug. 19 “Webinar Wednesday.”

“If you can effectively access the area with a traditional paint spray gun, corrosion protection is best achieved by applying a direct to metal primer, followed by the vehicle’s color and clearcoat to achieve recommended dry film thicknesses, if and as required, per the specific paint company and vehicle manufacturer’s guidelines,” he said.

“The responsibility to restore crashworthiness lies with you, your business and your technicians,” — Scott Peirce “The responsibility to restore crashworthiness lies with you, your business and your technicians,” Peirce said. “Many products and processes combine together to restore the initial condition of the vehicle so it’s capable of handling a subsequent collision.” Peirce explained corrosion protection is vital to restoring a vehicle’s crashworthiness. Corrosion can impact airbag timing, and fatalities are more likely due to rust.

“If you cannot effectively access the area with a traditional spray gun, that is when materials like weldthrough primer and cavity wax may be the most appropriate solution to help restore corrosion protection,” he continued. “A vehicle’s ability to resist corrosion could be significantly compromised if the vehicle manufacturer’s corrosion protection is not restored. This could also lead to future issues with safety and/or resale

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value.” 3M Business Development Manager Mark Algie joined in to look at a case study of a damaged bumper and examine the requirements related to 1500 MPA high strength steel frame rails. “OEM repair procedures need to be reviewed to determine repairability,” Algie said. “It looks like a simple repair, but the OEM procedures tell us the left rail has to be replaced and there are a lot of other major components that could be impacted by this collision. You have to take the rail apart, and it’s going to involve a lot of parts. It becomes a very intrusive repair, but that’s what it takes to correctly restore this vehicle to its pre-accident condition.” Moving on to welding, Peirce said six different weld conditions are required just for the front stiffener, and this part cannot be removed and reinstalled because of the spot welding conditions. “There are a number of manual weld settings that need to be adjusted to properly perform this repair,”

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Peirce said. “You can’t just move forward with replacement using automatic settings on welders. You need to stop, identify the different weld settings and adjust to get the proper welds.” After Peirce finished discussing weld-through primer recommendations, Algie shared information on several OEMs’ requirements related to bonding adhesive selection. “You always need to refer to the OEM repair procedures because they’re constantly being changed and updated,” he stressed. Bare metal seam sealers can help with corrosion protection and are designed for rapid production, but 3M recommends priming before seam sealing. “The market demands it because it’s good for production and speed,” Peirce said. “Bare metal seam sealers can be acceptable, but you have to ensure that all bare metal is covered. Any seam sealer is only effective if it is coated properly, but bare metal sealers are especially vulnerable if the coatings are too thin or

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do not achieve full coverage.” “Refinish technicians must be especially thorough while refinishing and be sure to paint from both directions to ensure full coverage of the ‘shadow side’ of the bead profile,” he added. Identifying the most difficult areas to achieve full paint coverage as the door hem flanges, wheel openings, lower rockers flanges and any flange sealed near a tight corner, Peirce cautioned, “These also happen to be the most corrosion vulnerable areas of the car, so caution should be exercised.” Epoxy seam sealers provides better coverage then aerosol seam sealers, and it’s imperative to research OEM position statements and repair procedures in order to duplicate the original appearance and function of the seams. Next, Algie discussed cavity wax OEM requirements, emphasizing, “Cavity wax must be applied to all interior cavities, weld flanges, hem flanges as well as any area affected by the repair, especially where any type of welding was performed.” According to Peirce, a lack of

corrosion protection inside cavities and on the back side of the welds is the most common problem found by post-repair inspection companies. He also discussed some of the quality control tools that shops should invest in, such as a borescope and a mil gauge, in order to perform their own post-repair inspections. “Post-repair inspections are more common than many of us want to admit due to a more educated public— the educated consumer is much more aware,” Algie said. “We ALL have a responsibility to restore crashworthiness, and that can only be achieved by researching and documented that you’ve followed the OEM repair instructions,” Peirce said in conclusion. “You need documentation to prove that you followed the instructions, and you have to follow those recommendations; don’t choose equivalents because it’s definitely not worth a little bit of savings. Conduct your own post-repair inspection, and protect your shop.” The webinar ended with a Q&A session. For more information on ASA and future educational webinars, visit www.asashop.org/asa-webinars/.

Continued from Page 40

Defending Your Name line. We all have that one buddy or associate who sends silly videos all the time, but think twice before you share them with anyone else. You don’t want to share anything that is sexist, ageist, racist or political because you never know who might see it and be offended. Just delete them if you’re not sure, and avoid sharing inappropriate content. If the situation gets really bad for any reason, it might be time to lock down your pages. Change all of your privacy settings on all your websites so that only certain people can see what you post and respond. Another smart move is to limit what others can post about you. For example, in Facebook’s privacy

settings, you can easily block other people from tagging you in photos without your permission. They can still tag you, but it won’t be public until you approve it. When none of these techniques work, start drowning out the bad content with new positive content. One of the best methods out there is to advertise the fact that you help the community, mentor local auto tech students, give cars to deserving people, etc. You worked hard to earn fivestar Yelp reviews or positive comments on Facebook, so why not take the time to protect them? As more and more people go online to search for a body shop, your reputation is more vital, because just one negative review can affect you in many ways and none of them are good.

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Daimler AG to Pay $1.5B for Emissions Cheating The U.S. Department of Justice, Environmental Protection Agency (EPA) and California Air Resources Board (CARB) announced Sept. 14 a proposed settlement with German automaker Daimler AG and its American subsidiary Mercedes-Benz USA, LLC, resolving alleged violations of the Clean Air Act and California law associated with emissions cheating. Under the proposed settlement, Daimler will recall and repair the emissions systems in Mercedes-Benz diesel vehicles sold in the U.S. between 2009 and 2016 and pay $875 million in civil penalties and roughly $70.3 million in other penalties. The recall program and federal mitigation project are expected to cost the company about $4.36 million. The company will pay another $1.1 million to fund mitigation projects in California. Taken together, the settlement is valued at about $1.5 billion. Source: U.S. Dept. of Justice

Speaker Highlights Common Challenges Involved in ADAS Calibration “If you’re a shop and you have a brand new tire on the right rear, but Speaking at August’s Collision In- the other three are at the 70% or 80% dustry Conference (CIC), Bob Pat- worn level, what’s the decision? Is tengale, technical systems manager the insurance company going to pay for Opus Intelligent Vehicle Support, for all four new tires? Or just the discussed some of the challenges one? That’s something the industry collision repairers face in calibrating needs to answer. Technically you various advanced driver assistance should have a matching set of tires.” Using the Honda procedures systems. to calibrate the blind spot monitoring system on a late-model Accord as another example, Pattengale noted proper calibration requires a full tank of gas. Sandbags could be used to simulate the weight of the gas—about 5 lbs. per gallon—in a vehicle withIf sandbags are used to simulate the weight of a full tank out a full tank, he said, but of gas while calibrating a vehicle’s ADAS, they may need they need to be placed in to placed in particular parts of the vehicle, based on the portion of the vehicle where the tank is located just above the fuel tank. On Pattengale cited as an example the Accord, that means some weight a vehicle that had one or two tires on both the left and right sides of the vehicle, because it has a saddle fuel damaged in an accident. “Typically we’re looking to tank. “We need to try to be as accumake sure the vehicle has the same wear patterns on the tires all the way rate as we possibly can to mirroring around the vehicle,” Pattengale said. a full tank of fuel,” he said. by John Yoswick

Pattengale, who prior to last year spent more than a dozen years with Bosch, said he realized early on in his current position he needed to think differently about calibrations in a body shop versus a mechanical facility. On one of the first vehicles he calibrated in a body shop, he found the Allen screw used to adjust a radar unit was seized up, a common problem depending on vehicle age and geographical area, he said. “The area in that shop being used for calibrations happened to be in the paint prep area,” Pattengale said. “I’m thinking that since this thing is locked up, I’ll spray a little WD-40 on it. I had to take my mechanical hat off and think about that that spray could definitely create an issue with paint.” In some cases, he said, such ADAS units may need to be replaced because they cannot physically be adjusted. “The physical radar itself is not bad, but the bracket that holds it, or the device that adjusts it, is not functioning or in the proper position,” he said. “That can be an unexpected item [during repairs.]”

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Nonprofit Finds, Matches Living Organ Donors MatchingDonors is the nation’s largest living organ donor nonprofit organization finding and registering living organ donors for people needing organ transplants in the U.S. Twenty-two people die every day in the U.S. waiting for a kidney transplant, most waiting seven to nine years. The team at MatchingDonors.com is working hard to make sure that does not happen by finding altruistic living organ donors for people needing kidney transplants. Many patients get their transplant through MatchingDonors.com within only six months, or less. In conjunction with various health organizations, MatchingDonors has created a successful PSA campaign to help people realize they can save lives by being a living organ donor, to encourage them to register as an altruistic living organ donor, and to make them realize they can help save the lives of people needing organ transplants by donating other things. For more information. see MatchingDonors.com. Source: MatchingDonors

Best Practice for Pre and Post Scans • Discuss diagnostics, scanning and ADAS functions and calibrations with vehicle owner if possible • Make sure that an authorization for repairs has been singed • Move Vehicle to scanning stall • Note vehicle VIN, Miles, RO# and MIL illuminations • Inspect vehicle for ADA components and controls such as cameras, radar sensors, lane departure/blind spot indicators and steering wheel/ dash controls • Print out documented OE procedures for vehicle being scanned • Hook up battery charger to maintain voltage • Hook up scan tool and put vehicle in proper state for scanning • Perform all system DTC scan • Review individual system data values with scan tool related to codes retrieved and/or required data revised such as air bag deployment history steering angle, seat weight, camera or radar angle values • Note 3 case scenarios 1. No accident related codes 2. accident codes 3. Accident related and non accident codes • Research codes and data values

to determine repair options (OE procedures OEM pertinent data • Determine ADAS options (See Airpro Data Retrieval) that will require calibrations with or without DTC”s or Data faults • Blue print vehicle and pay particular attention to the ADAS components • Repair Vehicle back to its preloss condition. On reassembly, check OE data to determine if an assembly needs to be removed for calibration. • Document Initialization, Programing and module set up using procedures from OEM documentation • Perform Post Scan after vehicle assembly and determine New as well as Old DTCs • Clear all possible DTC and correct faults codes that shop equipment will handle and document. Even with all codes that have been cleared, it still may be necessary to send the vehicle for calibration as per OEM ADAS service information • Scenario 1—All codes have cleared and no calibration is necessary, all OEM procedures have

followed and documented, vehicle goes to the next step in the repair process. Scenario 2 vehicle codes have cleared, all OEM procedures have followed and documented, vehicle needs certain system calibrated, vehicle goes to in house calibration center, an outside vendor or OEM dealership. It is highly recommended that another post scan be performed and documented. Scenario 3, vehicle accident codes have not be cleared, an outside vendor is requested and/or vehicle is sent to OEM dealership to clear the codes and perform any calibrations that are required by OEM procedures. Also documentation is essential. Scenario 4, all accident codes have cleared, calibrations performed if necessary, but non accident codes have not been cleared. Customer needs to be notified and a release signed before vehicle is released. • Final step is to determine by the OEM procedures if a road test needs to be performed. Test drive procedures will be outline in the OEM data. A final test drive documentation needs to be filled out and added to the repair order jacket

Best Practice for Air Conditioning Repair, R&I and Replacement Before starting the A/C process, make sure all technicians are EPA approved with 609 certification https://www.epa.gov/mvac/ section-609-technician-training -and-certification-programs • Determine if vehicle is R12, R134A or R1234YF (possible sublet) • Get proper equipment ready for evacuation • Check for Refrigerant or Evacuate the system at teardown • Print out OEM data on A/C • Note amount of refrigerant removed* on estimate/repair order • Remove receiver drier and seal • Remove A/C condenser and seal if necessary • Seal off all A/C lines • Assemble A/C system using all new “O” rings with correct lubricant • Replace refrigerant • Any additional refrigerant needs to be added to the estimate/repair order • Add PAG oil to system if necessary and charge as necessary (Check

OE for specific oil and warranty) • Hybrids and EV vehicles may need a different oil (check OE data) • Check for leaks • Note temperature at center vent on dash and note on repair order (best practice would be to take a picture • Check A/C equipment for scheduled filtration service * Note—If there is no refrigerant in the system due to the accident, the descant in the receiver drier is compromised and the part should be replaced. Always refer to OEM procedures when an A/C has been opened. Lines Highlighted in red are non-included items

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GM Tells Most Salaried Workers to Stay Home Till Next Summer by Mark Phelan and Jamie L. LaReau, Detroit Free Press

General Motors salaried workers in the U.S. have been told to plan on continuing to work from home until at least June 30, 2021, according to an internal document provided to the Free Press. “In coming weeks, you will receive instructions from your site leader regarding the process to retrieve personal belongings and any equipment necessary to work remotely,” according to an email signed by GM Global Human Resources Chief Kim Brycz and GM Chief Sustainability Officer Dane Parker. Hundreds of GM salaried employees are already working at factories, tech centers and other facilities, but the vast majority have been working remotely since the gravity of the COVID-19 pandemic became clear in March. “Our current outlook is to continue operating as we are today until June 30, 2021,” the memo said, adding GM is working to create “a more flexible work culture” after the

pandemic. The memo concluded with a reminder for all employees to practice good safety protocols: “Wear a mask, wash your hands frequently, physically distance whenever possible and get a flu shot when they become available this fall.” GM had been considering bringing some employees back later this year. The revised schedule is the latest sign U.S. business leaders think we’re a long way from having the pandemic under control with treatments or a widely available vaccine. “Every company is struggling with when and how to bring employees back into corporate offices, particularly since mass availability of a vaccine remains months away,” Cox Automotive Senior Analyst Michelle Krebs said. “Configuration of workplaces and common areas, like the cafeteria and restrooms, have to be contemplated. Ventilation is a consideration. “Getting people to and from

their offices using elevators is a conundrum. Sure, you can try to limit the number of people in an elevator, but then how do you manage people gathering to wait for the elevator.” Separately, employees at Wards Communications cleared out their offices in Southfield, MI, this week at the company that has covered the auto industry for nearly a century. Ward’s employees will work remotely, using a portion of their previous workspace for supplies, occasional meetings and a video studio. “Employers have discovered that their workforce has been surprisingly productive working from home, albeit not ideal especially for parents with children being schooled at home,” Krebs said. “And no company—like schools and colleges— wants to get people back into the office only to suffer a virus outbreak and send everyone home.” We thank the Detroit Free Press for reprint permission.

ProColor Collision to Enter U.S. Market Mondofix (Fix Network World) has announced plans to launch the ProColor Collision brand in the U.S. “There is tremendous potential for the continued growth of the automotive aftermarket space in the United States, in particular the collision business,” said Steve Leal, president and CEO of Fix Network World. “We look forward to growing the ProColor Collision brand by directly pursuing aggressive new strategies that leverage our global track record and benefit industry partners and customers in the U.S.” Fix Network World acquired ProColor Collision in September 2019 with a vision to expand the valuable brand outside Quebec. The first ProColor Collision location in Ontario, Canada, opened in July of this year, with another 14 locations expected to launch across Canada by December. In the U.S., ProColor Collision will initially focus on building its network in California, Florida, Georgia and the Carolinas. Source: ProColor Collision

Continued from Page 37

Preparing & Training and then look at where you want to specialize,” she said. She encourages those in the industry, especially collision repairers, to realize how great the new world will be with these technologies and try to become part of it. “Talking about all of this technology sounds awesome and it is, but when you boil it down to what really makes it work is the people,” said Farnsworth.

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Honda Agrees to $84M Multistate Settlement for Defective Airbags Kentucky Attorney General Daniel Cameron announced Aug. 25 a more than $84 million multistate settlement with American Honda Motor Co., Inc. and Honda of America Mfg., Inc. (collectively “Honda”), over allegations Honda concealed safety issues related to defects in the frontal airbag systems installed in certain Honda and Acura vehicles sold in the U.S. The systems were designed and manufactured by Takata Corporation, a longtime Honda supplier, and were first installed in Honda vehicles in the 2001 model year. The settlement, reached between the attorneys general of 48 states, territories and the District of Columbia and Honda, concludes a multistate investigation into Honda’s alleged failure to inform regulators and consumers that the frontal airbags posed a significant risk of rupture, which could cause metal fragments to fly into the passenger compartments of many Honda and Acura vehicles. The ruptures have resulted in at least 14 deaths and over 200 injuries in the U.S. alone. “Our Consumer Protection Division represents the interest of Kentuckians and fights on their behalf when there is a widespread product

safety concern, like we’ve seen with the defective airbags in these vehicles,” said Cameron. “This multistate settlement ensures that product safety standards are strengthened going forward.” Anyone who owns a Honda or Acura vehicle is urged to visit the airbag recall website at https://hondaairbaginfo.com to learn more. The states have alleged Honda engineers suspected the airbags’ propellant, ammonium nitrate, could burn aggressively and cause the inflator to burst. Despite these concerns, Honda delayed warning consumers or automobile safety officials, even as it began partial recalls of affected vehicles in 2008 and 2009. Further, Honda continued to represent to consumers that its vehicles, including its airbags, were safe. Since 2008, Honda has recalled approximately 12.9 million Honda and Acura vehicles equipped with the suspect inflators. The states have alleged Honda’s actions, or perhaps more accurately its failures to act, as well as its misrepresentations about the safety of its vehicles, were unfair and deceptive, and that Honda’s conduct violated state consumer protection laws. Under the terms of the consent judgment, which will be filed in Frank-

lin Circuit Court, Honda has agreed to strong injunctive relief, which, among other things, require it: To take steps to ensure that future airbag designs include “fail-safe” features to protect passengers in the event the inflator ruptures. To adopt changes to its procurement process for new frontal airbags, to ensure that its suppliers have the appropriate industry certifications and satisfy key industry performance standards, as well as improve record-keeping and parts tracking. To implement recurrence prevention procedures such as requiring that Honda approve all new frontal airbag designs before the company will consider them for use in new Honda vehicles. To abide by prohibitions on misleading advertisements and point of sale representations regarding the safety of Honda’s vehicles, including the airbags. To make improvements in critical areas such as risk management, quality control, supplier oversight, training and certifications, and implementing mandatory whistleblower protections. Honda also agreed to pay the participating attorneys general a total of $84,151,210.15. Consumers who own a Honda or

Acura vehicle are strongly encouraged to visit Honda’s airbag recall website at https://hondaairbaginfo.com, or call its Customer Service toll-free number at (888) 234-2138, to see if their vehicle is subject to a recall. Consumers may also check for open recalls by going to Safercar.gov. All safety recall repairs are free at authorized Honda dealers. Consumers in Kentucky can also contact the Attorney General’s Consumer Protection Division at (502) 696-5389 with any questions about this settlement. In addition to Kentucky, the multistate group includes Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Guam, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. Source: Kentucky.gov

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CCC AutoClaims Snapshot—August 2020 Overall repairable appraisal counts for the industry were down 14.9% in August 2020 versus August 2019. Severe weather in the Northeast from Hurricane Isaias, significant hail in South Dakota and Minnesota and dangerous derecho event in Iowa and Illinois led to an increase in comprehensive losses in the first half of the month. For example, comprehensive losses in Iowa accounted for 70% of all total loss valuations and 66% of all repairable appraisals. This underscores both the severity of the storms and the fact that non-comprehensive losses overall remain down. Losses from the wildfires in California and Hurricane Laura in Louisiana and Texas also continue to come in. Increases in comprehensive losses overall will help offset the decline in non-comprehensive losses and if September weather is as volatile, could result in claim counts for the year down only about 5%. Excluding comprehensive losses, counts also remained down over 25% year-to-date, although August 2020 non-comprehensive counts were down only 20.5% versus down

24.7% in July 2020. Areas hit hardest by the wave of COVID-19 infections in California and Texas have slowed claim

count recovery in late July and early August, with areas such as San Francisco, Los Angeles, Dallas, Houston and El Paso still seeing non-compre-

hensive appraisals down between 27% and 30%, while volume in other areas such as NYC, Chicago, Atlanta, Denver and others is down between 15% and 20%. Government data from early August reveals interstate miles are still down most among all road types, and this is consistent with data from other sources showing rush hour traffic is still below average in many cities. The primary factor most highly correlated to accident frequency is vehicles per road mile—i.e. how many vehicles on a given road at any given point. This is also typically referred to as “congestion,” which right now in most areas still seems to be below normal. With the number of COVID-19 cases rising again as many return to school, and the approach of normal flu season, many companies plan to keep at least part of their staff remote through the remainder of the year. This will likely mean non-comprehensive may remain down 10% to 15% for full year 2020. Source: CCC

ASE Survey Finds Adaptions ASE conducted a comprehensive survey to understand the impact of the COVID-19 pandemic on the automotive service industry. While 19% of those surveyed have seen an increase in business since the start of the pandemic, 56% reported a decrease. The survey found that 34% of service facilities have reduced business hours, and the effect on technicians has come in the form of reduction of hours (34%), temporary furloughs (14%) and terminations (8%). Results show nearly 70% of those surveyed are using protective equipment, while 63% have implemented social distancing measures and 62% have added supplemental sanitizing measures. More than 65% said they have done some type of selfstudy or enhanced training, while 46% participated in a webinar or online training course.More than 42% of respondents said they have increased their usage of social media somewhat or significantly, with Facebook and YouTube named as the top platforms used. Source: ASE

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As Hurricane Season Arrives, CARFAX Provides a Flood of Information by Auto Remarketing staff

A musty odor in the interior. Damp carpets. Rust around doors. With the arrival of hurricane season and more waterlogged vehicles showing up around the country, CARFAX is releasing information on various aspects of the situation, such as telltale signs of vehicle flooding.

CARFAX is also highlighting statistics such as the fact that 446,836 flood-damaged cars are on the roads in 2020. That is according to annual CARFAX data, and the company says that number could rise in the wake of Hurricane Laura. CARFAX says Laura damaged as many as 5,000 vehicles.

“This nationwide surge can put unsuspecting buyers at risk,” CARFAX wrote in a news release. The company also released a list of the top 10 states with the most vehicles reported as flood damaged by entities such as departments of motor vehicles and insurance companies. Although Texas leads the nation in flood-damaged cars, vehicles with flood damage show up in states where flooding might not be at the top of car-shoppers’ minds, according to CARFAX research. CARFAX general manager of data Faisal Hasan said car shoppers should do their homework, and Hasan reiterated that “flood-damaged cars surface in every corner of the country.” “Con men can quickly clean up these cars up, move them and then resell them,” Hasan said. “Once a car has been waterlogged, it will never be the same. These cars literally rot from the inside out, and the mechanical, electrical or safety systems can fail at any time.”

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CARFAX offers a free Flood Check tool at carfax.com/flood to help protect consumers. The tool includes a national map showing where flood cars have washed up, and a flood damage checklist consumers can perform. The following states have the most flood-damaged vehicles, and all of them have seen an increase since 2019: Texas: 98,400, +13% Florida: 31,300, +8% Kentucky: 26,400, +6% Pennsylvania: 23,400, +18% North Carolina: 19,300, +3% Illinois: 17,800, +14% New Jersey: 14,500, +15% Louisiana: 14,000, +22% California: 12,400, +10% South Carolina: 12,000, +10% The CARFAX information also included a list of the top 10 cities with flooded cars. Houston, New York, Philadelphia and Miami-Fort Lauderdale lead the way. We thank Auto Remarketing for reprint permission.

Uber Plans to Have an All-Electric Fleet by 2030 and a Zero-Emissions One by 2040 by Loukia Papadopoulos, Interesting Engineering

for e!

California motorist Carole Ross can relate. She was driving her vehicle home from the dealership and owned it for less than two hours before it broke down. “We ran a CARFAX Report while we were on the side of the road waiting for a tow truck, and that’s when we saw the car had been in a flood in Louisiana a few years ago.” To help consumers avoid such situations, CARFAX has released its list of the seven telltale signs of flooding. Those include: • A musty odor in the interior, which sellers sometimes try to cover with a strong air-freshener • Upholstery or carpeting that may be loose, new, stained or doesn’t seem to match the rest of the interior • Damp carpets • Rust around doors, under the dashboard, on the pedals or inside the hood and trunk latches • Mud or silt in the glove compartment or under the seats • Brittle wires under the dashboard • Fog or moisture beads in the interior lights, exterior lights or instrument panel

COVID-19 was hard on all of us but it did have some positive sides. As the world slowed down nearly to a stop, pollution also faded. This trend caused some changes in people everywhere who became ever more eco-conscious. This has caused a desire for more and more companies to go green. One such company is Uber. Let’s face it, the pandemic could not have been good for the ride-sharing firm. As people sought to avoid others at all costs, they opted to choose locations they could either walk or bike to or took their own cars. Can you think of any time recently where you used an Uber? This could be why Sept. 8, Uber CEO Dara Khosrowshahi released a blog where he spoke of his company going green during the pandemic recovery. “The pandemic has caused many cities to rethink their infrastructure, transforming parking into parks and creating more space for

walkers and cyclists. We’ve had a glimpse of what life could be like with less traffic and cleaner air—in cities built for people, not for cars,” wrote the executive. Khosrowshahi revealed his firm would not be going back to business as usual. Instead, it will seek to reduce its environmental impact. “It’s our responsibility as the largest mobility platform in the world to more aggressively tackle the challenge of climate change. We want to do our part to build back better and drive a green recovery in our cities,” he added. This will be no easy task as Uber has very ambitious plans. The company is committed to developing a fully zero-emission platform by 2040. Uber plans to have 100% of rides taking place in zero-emission vehicles by 2040 and 100% of rides take place in electric vehicles (EVs) in the U.S., Canada and Europe by 2030. Can this lofty goal be achieved? Only time will tell. We thank Interesting Engineering for reprint permission.

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