October 2021 Southeast Edition by Autobody News

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Vol. 12 / Issue 8 / October 2021

Americans Less Confident the Worst of the Pandemic is Over Entering Fall: Poll

The Paradox of ‘Clean’ EVs and the ‘Dirty’ Lithium Mining Business

Results of a newly released Long Island University Steven S. Hornstein Center for Policy, Polling and Analysis national poll reveal Americans’ confidence the worst of the coronavirus pandemic is over has decreased to 23% entering the fall, as compared to entering summer (53%), as the highly contagious Delta variant surges. Respondents were asked if they believe the worst of the pandemic is over. Overall, 23% of respondents said yes, which tracks significantly lower than 53% in June and 25% in February through national polls con-

by Christopher McFadden, Interesting Engineering

ducted by the Long Island University Steven S. Hornstein Center for Policy, Polling and Analysis. Respondents age 18-29 believe the worst is over at a higher rate (27%) than respondents age 60 and older (18%). Males believe the worst is over at a higher rate (30%) than females (17%). Respondents with the highest confidence level the worst of the coronavirus pandemic is over are Republicans (36%), followed by Independents (23%) and Democrats (15%). Americans were asked if they See Less Confident, Page 18

ADAS May Not Curtail as Many Accidents if it Doesn’t ‘Age’ Well by John Yoswick

In another indication the increased prevalence of advanced driver assistance systems (ADAS) are not likely a death knell for the collision repair industry, a recently-published study estimates there will be about 790,000 “risk events” per year on the roads in the EU in 2029 attributable to reduced performance of lane-keeping assistant systems alone. Risk events are failures of the system that reduce performance. The researchers used lane-keeping systems as an example to investigate

the specific impact on the function of ADAS from age-related wear and tear, damage to the system or a lack of calibration of cameras after windshield replacement. “Assistance systems must function reliably for many years,” said Matthias Schubert of TÜV Rheinland, which conducted the study in collaboration with the British Transport Research Laboratory. “With our study, we have gained initial insights into the circumstances under which lane-keeping systems might function to a limited extent only―and into See Doesn’t ‘Age’ Well, Page 8

Electrical vehicles (EVs) are commonly hailed as something of a panacea to combating the issue of climate change. By dispensing with “dirty” and polluting combustion engines, these all-electric modes of transport are, so it is claimed, just the ticket for a greener, more sustainable future. But, is this really true? To answer this, let’s take a long hard look at the validity of EV’s “green credentials.”

What is the environmental impact of EVs? There are some very real environmental benefits to EVs on paper, in reality, there is no such thing as “free lunch”; they may not be that “clean” after all. A paradox, if you will. EVs, like anything manufactured, require raw materials in order to be produced, and some of these materials come bundled with very serious potential environmental costs. One of the most serious being lithium. Forming the cathode of See The Paradox, Page 20

Multiple Shifts Enable Auto Body Shop to Offer Overnight Repairs by John Yoswick

A recent webinar during Automotive News’ Fixed Ops Forum promised “Five Secrets of a Body Shop That Rocks,” though not all five were too much out of the ordinary. Dan Dayfer, manager of the Northtown Collision dealer-owned shop in Amherst, NY, for example, discussed the blueprinting and quality control checklist system his shop uses, procedures fairly widely adopted throughout the industry. But he also discussed the shop’s nearly round-the-clock operation, with one shift working 7:30 a.m. until 9 p.m. Monday through Wednesday, and a second shift working those same hours Thursday through Saturday. Once a month, those two teams switch the days they are working―meaning once a month, one team works six days in a row, while the other team gets a week off. A third team consistently works nights, 8 p.m. to 7 a.m. Monday through Wednesday. That enables one of North-

town Collision’s other “secrets”: overnight repairs. Dayfer said any job considered “fast-lane” can be dropped off up until 9 p.m. and will be done by 7 a.m. the next morning. He said that generally includes jobs with 20 or fewer body labor hours― repair or replacement of a fender or bumper, for example. “Customers might go out to dinner, drop their car off after that, and it’s detailed and ready before they work the next day,” Dayfer said. “I would say eight to 10 customers every week will take advantage of this. Usually they’re just blown away. It works great, especially if someone doesn’t want to get into a rental.” One of the other ideas Dayfer shared was how the shop tracks materials usage. “All of our supplies are billed to each individual tech’s cabinet,” Dayfer said. “So for instance, if a tech turns 100 hours in a week, and he buys $400 worth of materials, that’s a $4 per hour cost in materials. Through the month we track this, See Multiple Shifts, Page 12

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REGIONAL Allstate, AGA Ordered to Schedule Settlement Conference in Windshield Lawsuit ��14 CARSTAR Opens First Location in Charlotte, NC, Driven Brands’ Headquarters ��12 Classic Collision of Merritt Island, GEICO Donate Refurbished Vehicle through NABC Recycled Rides Program ��8 Digital Transformation of Collision Repair Industry to Be Discussed at CIECA CONNEX ��14 First Graduates of GA Dept. of Corrections Automotive Academy Recognized ��6

Use of Lightweight Materials ��50 Axalta Announces Board Changes ��4 Behind-the-Scenes DCR Systems Tour Sponsored by AirPro Diagnostics, AkzoNobel & Car-O-Liner® ��40 Car Insurance Costs for Men vs. Women in 2021 ��55 Consultant Says CA Auto Body Shops Need to Know the Laws that Affect Them ��36 Crash Champions Adds 3 Locations to Growing National Footprint ��59 Despite Continued Inventory Troubles, U.S.

Li-Cycle to Build Next Plant in Alabama ��8

Auto Dealer Sentiment Remains Positive,

LMP to Acquire 85% Interest in Alan Jay

Spurred by Record-High Profits ��47

Automotive Network in Florida ��6 LMP to Acquire Tennessee Chrysler Dodge Jeep Ram Dealership ��10 Report Card’s Infrastructure Grade Highlights South Carolina’s Needs ��10

FCA to Pay $30M Fine for Illegal Payments to UAW Officials ��58 FinishMaster, Inc., Reorganizes Sales Force ��18 Shutdown Amid Recall ��56 Henkle Joins Elite Body Shop Solutions Team ��45

Service Members for Civilian Careers as

Joyson Safety Systems Leadership Transition ��56

BMW Technicians ��16

Lithia & Driveway Enters Atlanta, Expands in California ��16

COLUMNISTS

Lordstown Motors Appoints Ninivaggi CEO ��57

Anderson - From the Desk of Mike Anderson:

Mercedes-Benz Celebrates Launch of First

Paint Shop ��34 Yoswick - Honda Increasing Crash Parts Production, Transitioning Certified Auto Body Shops Over Time ��32

Line of Electric Vehicles ��4 Mercury Insurance Wins J.D. Power Award ��59 Mitchell, Car ADAS Solutions Team Up to

1Collision Names Director of Location Development ��38 2021 SEMA Show Update: SEMA Affirms

Multiple Shifts Enable Auto Body Shop to

Electronics ��38 Newest Black Book Index Barely Misses Another Record ��28 Observations on Collision Works Sale to Gerber ��59

in November ��59

PPG Provides Sales Update, Reports

Drive Their Cars ��52 3M™ Performance Spray Gun is ‘Go-To’ Gun at Santa Margarita Auto Body ��46 ADAS May Not Curtail as Many Accidents if it Doesn’t ‘Age’ Well ��1 All-American from Concept to Collision Repair Shop: Pro Spot a Proud U.S. Manufacturer ��44 Americans Less Confident the Worst of the Pandemic is Over Entering Fall: Poll ��1 Answers to Your SEMA Show Questions ��54 Apple Car Production Gets Potential 2024 Target Amid Talks with Toyota: Report ��52 ASE Awards Busch Memorial Scholarships ��42 Automotive Industry Trend Continues Towards

American Icon Automotive Finishes �� 18

Hyundai Wholesale Parts Dealers �� 54

Anest Iwata �� 13

JEN6 Equipment �� 8

Audi Gwinnett �� 34

Jim Cogdill Chrysler-Dodge-Jeep-Ram �� 12

Audi Wholesale Parts Dealers �� 48

John Heister Automotive �� 44

AutoNation Ford-Lincoln �� 32

KECO Body Repair Products �� 2

Beaman CDJR Wholesale Parts �� 35

Kia Motors Wholesale Parts Dealers �� 49

Benchmark Automotive �� 28

LKQ Corporation �� 5

BMW Wholesale Parts Dealers �� 57

Malco �� 20

CARSTAR �� 23

Markingpendepot.com �� 6

Carworx �� 21

Mazda Wholesale Parts Dealers �� 56

Certified Automotive Parts Association �� 14

Mercedes-Benz of Cutler Bay �� 40

City Kia of Greater Orlando �� 46

Mercedes-Benz Wholesale Parts Dealers �� 50

Classifieds �� 58

Miami Lakes Automall �� 41

Colad/EMM Specialties �� 60

MINI of Charleston �� 46

Dynabrade, Inc �� 19

MINI Wholesale Parts Dealers �� 56

Eagle Abrasives �� 11

MOPAR Wholesale Parts Dealers �� 39

Eckler’s Automotive �� 25

NOROO Paint & Coatings �� 17

Florida Filtration & Spray Booth Services �� 10

Parks Chevrolet �� 38

Ford Wholesale Parts Dealers �� 55

Rick Hendrick Chevrolet Naples �� 47

GM Wholesale Parts Dealers �� 53

Riverside Ford-Lincoln �� 45

Gus Machado Ford �� 36

SATA Dan-Am Company �� 15

Harper Volkswagen �� 33

Sorbothane Soft-Blow Mallet �� 16

Hendrick Automotive Group �� 43

Southside Kia �� 37

Hendrick BMW/MINI �� 7

Steck Manufacturing Company �� 22

Hendrick Honda Pompano Beach �� 47

Subaru Wholesale Parts Dealers �� 51

Hendrick Kia Cary �� 24

Sunmight USA ��26-27

Hendrick Kia Concord �� 24

Tameron Hyundai �� 42

Hendrick Volvo Cars of Charleston �� 46

Volkswagen Wholesale Parts Dealers �� 52

Honda-Acura Wholesale Parts Dealers �29, 30-31

Wrenchers �� 9

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

New Lithium-Metal Battery Could Revolutionize

Commitment to Outstanding Show 2021 Subaru Impreza Owners Shouldn’t

Serving Florida, Georgia, Alabama, Mississippi, Virginia, West Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2021 Adamantine Media LLC.

Provide Enhanced Calibration Support ��53 Offer Overnight Repairs ��1

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Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (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

GM Extends Chevy Bolt EV/EUV Plant

UTI, BMW Partner at Fort Bragg to Prepare

Researching OEM Procedures for the

INDEX OF ADVERTISERS

CONTENTS

Worsening Supply Disruptions and Customer Parts Shortages ��57 Proposed $42M Settlement Includes Removal of Takata Airbag Inflators in 1.35M Volkswagen and Audi Vehicles ��57 Rivian Says R1T Deliveries Will Start in September ��42 Tesla’s Elon Musk Pledges to Expedite Service Center Openings ��45 Tesla’s Musk Shares Brutally Honest Take on Dems’ Revised EV Proposal ��4 The Paradox of ‘Clean’ EVs and the ‘Dirty’ Lithium Mining Business ��1 Third-Generation MSO Steps Up Philanthropy During Pandemic ��48

autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 3

Mercedes-Benz Celebrates Launch of First Line of Electric Vehicles To celebrate the launch of its first line of electric vehicles, Mercedes-Benz USA has developed an activation at the 2021 U.S. Open to educate fans about its electrification efforts. The luxury automotive brand will engage tournament attendees to create and harvest clean energy that will be used to help power an upcoming exclusive event with global partner Alicia Keys. The Mercedes-EQ family of vehicles will combine sophistication, sustainability, high-end technology and style for an unprecedented fully electric luxury experience. The first vehicle from the line, the all-new 2022 EQS Sedan, will launch later this year. As an official sponsor of the U.S. Open, Mercedes-Benz will host fans in its Brand Center at the USTA Billie Jean King National Tennis Center, Aug. 30-Sept. 12. Mercedes-Benz will invite fans to walk over a pathway of kinetic tech floor tiles, created in partnership with Pavegen, that will generate reusable clean energy with each footstep. As guests walk over the

Pavegen floor tiles, the weight from their footsteps will compress an electromagnetic generator, which in turn will transform each individual footstep into a small amount of energy that is converted into clean electricity. For each consumer who walks the pathway, Mercedes-Benz will make a $1 donation per footstep to The National Energy Education Development Project (NEED) to help bring sustainability resources to schools through curriculum and customizable programs. With support from Mercedes-Benz, NEED will expand its upcoming pilot curriculum around electric vehicles and create additional training for students and teachers across the country around electrification and the future of transportation. Additionally, Mercedes-Benz will randomly select one participant each day of the tournament to receive two tickets to attend the exclusive event later this year. “Mercedes-Benz is committed to an electric future, and with the Mercedes-EQ family of vehicles, we’ve set our sights on the intel-

Axalta Announces Board Changes

by Simon Alvarez, Teslarati

Axalta Coating Systems, a leading global supplier of liquid and powder coatings, on Aug. 30 announced Mark Garrett has stepped down as a member and chair of its Board of Directors, effective Aug. 26, due to his increasing professional commitments in Europe. The board has appointed William M. Cook as its new chair, effective upon Garrett’s resignation. Cook joined Axalta’s board in 2019. He previously served as executive chairman of Donaldson Company, Inc. until 2016, and prior to that served as chairman, CEO and president of Donaldson for more than 10 years. During his 35-year career at Donaldson, Cook held various roles of increasing responsibility, including senior vice president, international, CFO and senior vice president, commercial and industrial. Cook also brings to the board strong public company board experience. Source: Axalta

Tesla CEO Elon Musk shared a brutally honest take on U.S. Democrats’ revised EV tax credit proposal, which happens to be heavily pro-union. Musk did not hold back on his criticism, stating the revisions were likely written by lobbyists who do not have American taxpayers’ best interests at heart. In a way, Musk’s critique is valid, considering Tesla’s two best-selling cars are also recognized as two of the most American-made vehicles in the country today. On Sept. 10, Democrats took the wraps off their proposal for a revised EV credit system, part of a proposed $3.5 trillion social spending bill. Unlike the previous proposal—which aims to uncap the $7,500 tax credit, grants an additional $2,500 incentive for cars produced in a union factory and gives another $2,500 for EVs built in the U.S—the revised proposal practically penalizes EV makers that do not employ a unionized

ligent evolution of transportation that will help create a smarter way of living,” said Monique Harrison, head of brand at Mercedes-Benz USA. “We are excited to engage consumers to help us create clean energy and support NEED’s efforts to train and empower the next generation of the STEM workforce, and hope that with this initiative we will spark excitement from kids to take part in the future of electric transportation.” “Partnering with Mercedes-Benz is a game-changing opportunity for NEED to share the excitement about electrification and electric vehicles with students and teachers around the United States,” said Mary Spruill, executive director at NEED. “This engagement at the U.S. Open is harnessing the power of tennis fans to support these teachers and students as they learn about the electric grid and what infrastructure is needed to put more electric vehicles like the EQS on the road, helping to make the future of electric transportation incredibly bright and successful.” As part of the activation, Mercedes-Benz will officially reveal

the EQS, the first all-electric luxury sedan from Mercedes-EQ, to New York consumers with two vehicle displays at the Mercedes-Benz Brand Center. Fusing technology, design, functionality and connectivity, the EQS is the pinnacle of electric luxury, bridging the gap between elegance and sustainability. The first models being introduced to the U.S. market include the EQS 450+ and the EQS 580 4MATIC and will launch later this fall. Fans will also have the chance to play a new visually stunning virtual reality tennis game which will feature an LED wall to display energetic movement as the match is played. Taking place on the iconic blue courts of the U.S. Open, guests can use rackets with sensors to serve and hit a virtual ball back and forth in the Mercedes-Benz Brand Center. Source: Mercedes-Benz USA

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Tesla’s Musk Shares Brutally Honest Take on Dems’ Revised EV Proposal

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workforce. Under the revised proposal, the $7,500 tax credit would still be uncapped for automakers. However, the legislation also proposes a whopping $4,500 incentive for vehicles assembled in a union factory. The proposal aims to award a rather conservative $500 to vehicles equipped with a battery manufactured in the U.S. as well. The revised proposal would apply to sedans priced below $55,000, SUVs priced under $69,000 and trucks that cost $74,000 and below. Under the revised proposal, Tesla’s electric vehicles would miss out on $4,500 worth of incentives simply because Fremont’s workers have opted to not unionize. The stance of Tesla’s workers at Fremont is not that surprising, considering the facility, back when it was being operated as a Toyota-GM join venture called NUMMI, was closed under the watch of the United Autoworkers Union (UAW). The closure of the plant was not received well by NUMMI workers, with some employees publicly clashing with UAW

officials during discussions. It’s not just Musk who has spoken out against the Democrats’ heavily pro-union EV tax credit proposal. Honda and Toyota, both of whom do not employ a unionized workforce in the U.S., sharply criticized the Democrats’ revisions. Honda noted the bill was “unfair” and it “discriminates among EVs made by hard-working American auto workers based simply on whether they belong to a union.” Toyota noted in a statement the plan discriminates “against American autoworkers based on their choice not to unionize.” Tesla currently produces two of the most American-made vehicles in the country being sold today. This was proven by the results of the 2021 American-made Index from Cars.com, which revealed the Tesla Model 3 is the most American car in the country. The Tesla Model Y stands in third place. “Just one major automaker, Tesla, can claim domestic production for all the cars it sells here,” Cars.com noted

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LMP to Acquire 85% Interest in Alan Jay Automotive Network in Florida LMP Automotive Holdings, Inc., an e-commerce and facilities-based automotive retailer in the U.S., on Sept. 13 announced its entry into definitive acquisition agreements to purchase an 85% interest in the Alan Jay Automotive Network, a 12-dealership group in Florida, along with the associated real estate, generating approximately $345 million in annualized revenue and $18.3 million in adjusted EBITDA. The deal is expected to close in the fourth quarter of this year. The aggregate purchase price of approximately $50 million for goodwill is expected to be funded through a combination of cash on LMP’s balance sheet, up to $25 million in common stock and debt financing. The aggregate real estate purchase price is approximately $44.1 million. The purchase is expected to add approximately $18.3 million in adjusted EBITDA or $1.38 per share in 2022. “First, I would like to welcome Alan Jay Wildstein, Michael Witham and James Lizotte to the LMP organization,” said Richard Alda-

han, LMP’s COO. “Upon close, Alan Jay Wildstein will be regional vice president at LMP, partner, as well as dealer operator of the acquired dealership group. Michael Witham will continue to be the group’s COO, along with James Lizotte, who will be vice president of operations, each of whom have over 30 years’ experience in the automotive industry.

“I look forward to working with each of them in our future partnership.” — Richard Aldahan “I look forward to working with each of them in our future partnership. This acquisition will further expand our management team and Southeast footprint. We intend to continue expanding aggressively in this region as we are seeing a record amount of interest in our dealer partner model.” Aldahan said the operating assets to be acquired include one preowned center and 21 new vehicle franchises: one Buick, one Cadillac, two Chevrolet, one GMC, two Chrys-

First Graduates of GA Dept. of Corrections Automotive Academy Recognized The Georgia Department of Corrections (GDC) hosted a ceremony Sept. 8 recognizing the first graduating class of its Fleet Services Program Automotive Academy. Twelve residents from Macon Transitional Center received certificates for successfully completing automotive industry programs in either I-CAR Paint and Body (I-CAR), or Automotive Service Excellence (ASE) through a partnership with Central Georgia Technical College. “The automotive academy was designed to provide offenders with the skills necessary to become productive upon release while increasing their employability,” said Commissioner Timothy C. Ward. “We are thankful for the partnerships and the staff that have worked together to provide these men an opportunity to be successful.” The Automotive Academy offers specialized training, credentials and educational support, and includes a six-month

ler, two Dodge, two Jeep, two Ram, two Ford, one Lincoln, one KIA, one Nissan, one Toyota, one Maserati and one Alfa Romeo. “This acquisition, combined with our previously announced acquisitions, brings LMP’s total franchise and dealership count to 51 and 35, respectively, with consolidated annualized revenue, adjusted EBIT-

ASE program, which teaches diagnostics, service and vehicle maintenance. The 12-month I-CAR program teaches skills in autobody paint and collision repair. Each of these programs provides offenders with the opportunity to earn industry-recognized certification. In addition to providing offenders with more opportunities for success, the Automotive Academy has become a professional, well-rounded, fully functional automotive paint and body shop, allowing cost avoidance associated with vehicle repairs totaling more than $1 million. Source: GDC

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DA and adjusted EBITDA per share run rate expected to be approximately $1.6 billion, $104 million and $9.32, respectively,” said Sam Tawfik, LMP’s CEO. “I also would like to welcome Alan Jay Wildstein and his team to the LMP organization. We are honored to have Mr. Wildstein as regional vice president of LMP.” LMP plans to continue to promote and recruit the best of breed talent within our organization as well as externally in these record setting times, while maintaining operational

excellence and impressive earnings growth. Wildstein is a seasoned executive in the automotive industry with nearly three decades of experience, currently serving as a director and past chairman of the Florida Automobile Dealers Association. Wildstein has been CEO of Alan Jay Automotive Network from 1992 to present, which has been long regarded as one of the region’s largest community partners, sponsoring and donating to hundreds of organizations, events and individuals every year. Wildstein holds a BBA from Northwood University in Michigan. Awards given to Wildstein and the Alan Jay Automotive Network include Business Leadership Award, Time Magazine Quality Dealer Award, Dealer of the Year Award and Sebring Chamber of Commerce Business of the Year. Wildstein was honored as one of six Ford dealers globally to win the 2017 Salute to Dealers recognition, selected and presented by the Ford family. Source: LMP Automotive Holdings, Inc.

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Continued from Cover

Doesn’t ‘Age’ Well

Classic Collision of Merritt Island, GEICO Donate Refurbished Vehicle through NABC Recycled Rides Program

the consequences this may have for road safety.” As part of the study, TÜV Rheinland drove a vehicle with simulated damages on the windshield or incorrect calibration of the cameras on a test track. Components were artificially aged. In one scenario, there were also changes made to the chassis. Researchers observed the function of the lane-keeping assistance system deteriorated when, for example, there were simulated stone impacts in the windshield. In rare cases, the system switched off without warning. The vehicle also drove over lane markings without warning or reaction from the system. Schubert believes too little is known about how accidents, improper repairs or wear and tear affect the functionality of assistance systems and thus road safety in the long term. The study found failures could lead to as many as 2.3 million risk events each year in Europe alone.

Classic Collision™, in partnership with GEICO® and the National Auto Body Council (NABC) Recycled Rides® program, donated a refurbished vehicle to local resident Kyla Williams, a recent graduate of Satellite High School in Satellite Beach, FL, for her recognition as the Boys & Girls Club of America Southeastern Military Youth of the Year winner. Representatives from Classic Collision of Merritt Island presented a 2020 Hyundai Elantra to Williams’ family at the event at 1555 E. Merritt Island Causeway in Merritt Island. Williams also received gift cards and other donations from local sponsors in the area. Several members from the local fire department also attended the event. “It was an honor to have the opportunity to present a new vehicle to Kyla for her outstanding service as the southeastern Military Youth of the Year winner,” said Rick Miller, Classic Collision’s region director. “We are thankful to our partners at the NABC Re-

Li-Cycle to Build Next Plant in Alabama Li-Cycle Holdings on Sept. 8 announced it will build a fourth commercial lithium-ion battery recycling facility, to be located in Tuscaloosa, AL. When completed, Li-Cycle estimates its Spoke 4 facility will have an initial capacity of up to 5,000 tonnes of battery manufacturing scrap and end-of-life batteries per year, bringing Li-Cycle’s total North American recycling capacity to 25,000 tonnes per year. “Our new facility in Alabama positions us well to meet the growing demand for lithium-ion battery recycling,” said Tim Johnston, co-founder and executive chairman of Li-Cycle. “Originally, we had planned on rolling out three commercial Spoke facilities in North America over the

next five years, with a total recycling capacity of 20,000 tonnes per year. However, demand for lithium-ion battery recycling has continued to outperform our forecasts and we are now forecasting total recycling capacity of 30,000 tonnes per year. “This facility is essential in filling a recycling gap in the southeastern United States. Like our Arizona Spoke, we expect the new facility to have the capability to process entire vehicle battery packs, without dismantling.” In February, Ontario-based Li-Cycle went public with blankcheck acquisition valuing the recycler of lithium-ion batteries at $1.67 billion. Source: Li-Cycle

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cycled Rides program and GEICO for the chance to provide this vehicle to such a deserving recipient, and we are very proud of Kyla as she continues to represent the Space Coast area in her endeavors in college and beyond.”

Williams was nominated for the award by the Patrick Space Force Base Youth Center and received the recognition from the Boys & Girls Club of America. In addition to the refurbished vehicle provided by Classic Collision and partners, Williams received a $20,000 scholarship and a laptop for her title. “This is awesome,” said Williams. “To have all of these people

come together and do this because of something I did is incredible. I’m so appreciative. Now I can get to school in Georgia without my parents having to worry about driving me back and forth.” NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $36 million. Additional partners in the NABC Recycled Rides presentation included 1-800 Charity Cars, PPG, Enterprise Rent-A-Car®, Ultimate Auto Glass and Electronics, Nissan of Melbourne, LKQ® Corporation, Chick-Fil-A®, Lakeland Hyundai, Jaguar Land Rover Treasure Coast and Ben’s Paint Supply. Source: NABC

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Report Card’s Infrastructure Grade Highlights South Carolina’s Needs by John Haughey, The Center Square

South Carolina’s roads and bridges face a projected funding gap of $43 billion by 2040 and more than 50% of the state’s roads are in “poor condition,” according to the South Carolina section of the American Society of Civil Engineers (SC-ASCE).

An interchange of Interstate 26 in South Carolina. Credit: Daniel Wright98/Shutterstock

The civil engineers association released its 2021 report card on South Carolina’s infrastructure Sept. 8 at the Statehouse in Columbia. The report card examined eight infrastructure categories and gave the Palmetto State a D-plus grade, a notch below the C-minus grade the

ASCE issued for the nation’s infrastructure. A grade of B for ports and a C-grade for bridges were the two highest scores calculated by the SCASCE. The other six grades were in aviation (D-plus), dams (D), drinking water (D-plus), roads (D), transit (D-plus) and wastewater (D). “South Carolina has made significant strides in addressing its infrastructure in recent years to better prepare for a booming population,” the report card said, praising lawmakers for raising the state’s gas tax by 12 cents a gallon for six years starting in 2017 to generate more than $625 million in increased road funding. “South Carolina’s agencies and leaders have taken matters into their own hands to ensure our network of infrastructure systems are suitable for a 21st-century economy and expanding demographic,” SC-ASCE President Jonathan Thrasher said. “Now it is time for the federal government to do its part in aiding our communities with the necessary funding to bring all of our systems to a state of good repair.” The report card comes as South

LMP to Acquire Tennessee Chrysler Dodge Jeep Ram Dealership LMP Automotive Holdings, Inc., an e-commerce and facilities-based automotive retailer in the U.S., on Aug. 24 announced its entry into a definitive acquisition agreement for a Chrysler Dodge Jeep Ram dealership in Tennessee, generating approximately $42 million in annualized revenue and $1.4 million in adjusted EBITDA. The deal is expected to close in the fourth quarter of this year. The purchase price of approximately $4.5 million for goodwill is expected to be funded through a combination of cash on LMP’s balance sheet, up to $2.5 million in common stock and debt financing. The acquisition is expected to add approximately $1.4 million in adjusted EBITDA, or $0.12 per share in 2022.

“This acquisition will further expand our management team and Southeast footprint,” said Richard Aldahan, LMP’s COO. “We intend to continue expanding aggressively in this region as we are seeing a record amount of interest in our dealer partner model.” “This acquisition, combined with our previously announced acquisitions, would bring LMP’s total franchise and dealership count to 30 and 23, respectively, with consolidated annualized revenue, adjusted EBITDA and adjusted EBITDA per share run rate expected to be approximately $1.3 billion, $86 million and $7.94, respectively,” said Sam Tawfik, LMP’s CEO. Source: LMP Automotive Holdings, Inc.

Carolina lawmakers prepare for a fall special session to allocate more than $3.1 billion in “one-time” money—$600 million from the Savannah River Site (SRS) plutonium settle-

“South Carolina’s transportation network is improving, but there’s still much work to be done,” — Christy Hall ment and $2.5 billion in pandemic assistance via the American Rescue Plan Act (ARPA). Gov. Henry McMaster recommended $360 million in ARPA money to be allocated to widen Interstate 26 between Charleston and Columbia. South Carolina also could receive $4.6 billion for highways and $274 million for bridges as part of the five-year, $1.2 trillion federal INVEST in America Act, approved by the U.S. Senate and is being debated in the House. Under the INVEST in America Act, South Carolina also could tap into a $12.5 billion Bridge Investment Program, a $16 billion fund for

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10 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

electric vehicle charging networks. “South Carolina’s transportation network is improving, but there’s still much work to be done,” said South Carolina Department of Transportation (SCDOT) Secretary Christy Hall. SCDOT is ahead of schedule in its 10-year plan, “and we continue to improve the worst of our rural roads to make them safer,” Hall said. “In addition, we hope to have a once-in-a-generation opportunity to put a significantly greater federal investment to work widening all of I-26 between Columbia and Charleston and expanding many local roads across the state that are congested.”

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CARSTAR Opens First Location in Charlotte, NC, Driven Brands’ Headquarters

Multiple Shifts and everybody tries to be the lowest. We give out gift certificates or buy lunches for those who are lowest every month.” Similarly, the four-person paint teams on each shift are rewarded with a monthly bonus if their perhour paint and materials costs stay under $14. “So the two painters will share clear, and any extra base that’s accumulated they use as ground coats,” Dayfer said. “They really do a fantastic job.” Rob Gehring, a consultant who suggested Automotive News highlight Dayfer’s shop on the webinar, said Northtown Collision produces more than $1 million in monthly sales from an 18,000-square foot facility. “What I am so impressed with is that his gross profit margin on paint and materials is 70%,” Gehring said. “Frankly, I’ve never heard anyone do a better job than that.”

CARSTAR, North America’s premier network of independently-owned collision repair facilities, officially cut the ribbon on its newest location in Charlotte, NC, the hometown of Driven Brands. CARSTAR Jerry Rhynes Collision Charlotte is the first CARSTAR facility in Charlotte, bringing the nation’s highest-quality collision repairs to area drivers. To honor this milestone and recognize the continued growth of CARSTAR across North America, CARSTAR held a grand opening celebration at the new, state-of-theart CARSTAR location. “We are extremely proud to open our first CARSTAR location in Driven Brands’ backyard, bringing expert collision repair and superior customer service to Charlotte-area drivers,” said Sabrina Thring, COO for collision, Driven Brands. “We have been on an accelerated growth trajectory for the past 24 months with nearly 40 new CARSTAR locations added to the network this year alone. We look forward to continuing this momentum with our strategic growth

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Collision Charlotte, CARSTAR Jerry Rhynes Collision Pineville and CARSTAR Jerry Rhynes Collision Albemarle. Rhyne’s collision repair company has been serving North Carolina since 1975. CARSTAR Jerry Rhynes Collision Charlotte is a Spies Hecker Certified Shop with Axalta Coating Systems. It is also an I-CAR Gold and ASE certified collision center. “CARSTAR has been a great partner for us,” said Rhyne. “They

have helped us connect with amazing companies like Axalta to create our paint program, they provide operational support to help us enhance our repair processes and they provide incredible savings through its scale—something I simply can’t get as an independent owner.” The grand opening celebration hosted industry partners from the Charlotte area to enjoy lunch, tours of the facility as well as an opportunity to win raffle prizes. The No. 24 Axalta Chevrolet Camaro ZL1 was on-site with exclusive CARSTAR branding as well as the local Kiss 95.1 radio station, providing entertainment for the afternoon. “Thank you to all our local partners, especially Axalta, who came out to support us,” continued Rhyne. “We are grateful to be serving the Charlotte community and proud to celebrate this milestone moment with our CARSTAR family.” Visit CARSTAR.com for more information. Source: CARSTAR

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Digital Transformation of Collision Repair Industry to Be Discussed at CIECA CONNEX The theme of this year’s CIECA CONNEX conference is “Racing to the Future: The Digital Transformation of the Collision Industry.” Presentations will focus on current and future trends and technologies that will affect how data standards are created in the future.

The in-person event is being held Sept. 14-16 in Charlotte, NC. In addition to a line-up of top industry speakers, there will be networking opportunities, a gifting ceremony by the National Auto Body Council® as part of its Recycled Rides program and a tour of Hendrick Motorsports. All industry stakeholders, including CIECA members and non-members, are invited to attend the conference and tour. Featured speakers and topics include:

Sean Carey, “Collision Industry Update” Carey, president of SCG Management Consultants, has more than 30 years of experience in the automotive industry. He has consulted with all sectors of the automotive claims industry and has a keen understanding of the needs of insurers, repairers, OEMs, technology providers and a wide range of industry supply chain vendors. Fred E. Karlinsky, “Impact of Regulatory Matters” Karlinsky, co-chair of Greenberg Traurig’s Insurance Regulatory and Transactions Practice Group, has nearly 30 years of experience representing the interests of insurers, reinsurers and other insurance-related entities on their regulatory, transactional, corporate and governmental affairs matters. He is a recognized authority on national insurance regulatory and compliance issues, including automotive. Kyle Weber, “Blockchain Case Study” In his current role, Weber is a prod-

uct owner in the Blockchain Concept Domain for State Farm. He led the Net Settlements for Subrogation Blockchain solution implemented in December 2020 with USAA. The Blockchain solution allows insurers to net payments together and settle them in a single payment on an agreed upon cadence. Rob Bingler, “5G’s Impact on Industry” Bingler currently serves as an executive sales manager at Panasonic, where he is focused on mobility, audiovisual and security solutions within the insurance and financial industries. His in-depth industry insight and product knowledge enable him to excel within this role, and he is continually recognized as a top-performing team member. He has been with the company since 2005. Chad Knaus Knaus, NASCAR champion crew chief and current vice president of competition for Hendrick Motorsports, will touch on topics including advancements made in the

racing industry, not only through engineering, but also through correlations in the production vehicle market. His appearance will be presented by conference sponsor Axalta. Brandon Laur, “Information Privacy” Laur has been with CCi for the last 11 years, holding close to every position within the company throughout its expansion. Most recently, he has been driving the company’s accelerated transformation by focusing on industry sustainability, digital adaptability and profitability improvements within the collision ecosystem by collaborating with CCi’s strategic customers. Prior to the conference, CIECA’s Annual Meeting of Members will be held at 3 p.m. Sept. 14. The annual meeting is a great opportunity to learn about CIECA’s upcoming initiatives, meet other members, talk about standards development and network with all industry segments. Source: CIECA

Allstate, AGA Ordered to Schedule Settlement Conference in Windshield Lawsuit by Rebecca Barnabi, glassBYTEs.com

U.S. Magistrate Judge Daniel C. Irick issued an order in Orlando District Court on Sept. 1 for the scheduling of a settlement conference in Allstate* vs. Auto Glass America and Charles Isaly. Just a couple weeks earlier, both sides argued over inclusion of witness testimony, which a judge ordered admissible. An Aug. 19 order allows testimony by Allstate witness Keith A. Beveridge, MBA, who will provide testimony as an auto glass expert. The order also permits testimony by Allstate witness Dr. James Langenfield and G. Hartley Mellish, who is retained by AGA to respond to testimony by Langenfield. Per the judge’s order, the parties involved had until Sept. 3 to file a joint notice in which three dates are proposed which they find “mutually agreeable” for a settlement conference. Allstate filed suit against

AGA in December 2018 for AGA’s allegedly pressuring “Allstate’s insured customers into hiring AGA for windshield repairs and replacements,” according to court documents. The conflict the case focuses on is about the incidence of windshield repairs vs. replacements, and payments for the replacements. A settlement conference can be called in order to settle a case before it proceeds to a trial or hearing. *Allstate means Allstate Insurance Company, Allstate Fire and Casualty Insurance Company, and Allstate Property and Casualty (Allstate).

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UTI, BMW Partner at Fort Bragg to Prepare Service Members for Civilian Careers as BMW Technicians Universal Technical Institute (UTI) and BMW of North America, LLC are partnering to add a unique program for service members at the U.S. Army’s Fort Bragg, NC, base. The BMW MSTEP (Military Service Technician Education Program) provides training for new career opportunities for service members transitioning from military service back into civilian life. The program was first launched at Marine Corps Base Camp Pendleton in Southern California in 2018, making BMW the first premium automotive brand to open a workshop and training program for military service members directly on a U.S. military base. The 16-week BMW technical education program features a specialized on-base curriculum and hands-on technical training on diagnostics and technologies unique to the BMW brand. Upon graduation, BMW assists the new technicians with employment at authorized U.S. dealers. There are currently more than 7,000 BMW technicians across the network, and more are needed ev-

ery year, especially those trained by the company itself. “BMW is honored to be working with the U.S. Army, helping to provide service members with great professional opportunities to support their transition back into civilian life,” said Claus Eberhart, vice president, aftersales, BMW of North America. “The skillset these men and women are bringing to our dealerships is invaluable. Aside from their unwavering team spirit and discipline, many are already highly specialized in some of the most sophisticated technologies, giving them all the right foundations for a successful automotive career. We are proud to be able to give back to U.S. service members through our MSTEP program.” “The Army’s Transition Assistance Program offers soldiers who are preparing to enter the civilian workforce the opportunity to learn or enhance their skills and knowledge in a career outside the military,” said Fort Bragg Garrison Commander Col. Scott Pence. “We are thankful for every opportunity provided to our service mem-

Lithia & Driveway Enters Atlanta, Expands in California Lithia & Driveway (LAD) announced Sept. 14 the addition of one of the top Honda stores in the Southeast, Curry Honda located in Chamblee, GA. This is LAD’s first dealership in Georgia and its strategic location in the top-10 Atlanta market. LAD also added to its Southwest network with the purchase of the No. 1 Jeep volume dealer in California, year to date, Orange Coast Chrysler Jeep Dodge Ram Fiat in Costa Mesa. Jon Gray, one of the top Chrysler, Jeep, Dodge leaders in the country, and past national dealer chairman of what is now Stellantis National Dealer Council, will continue to lead the dealership. Together, these locations are expected to generate $320 million in annualized revenue. “As we strive to bring seamless online and offline experiences to consumers throughout North America, we’re ecstatic to welcome these two high-per-

forming dealership teams to the family,” said Bryan DeBoer, LAD president and CEO. “These additions help us expand our omni-channel network and reach our goal of delivering and servicing consumer vehicles within a 100-mile radius anywhere in the country.” The addition of Curry Honda in the Atlanta metro area and Orange Coast Chrysler Dodge Jeep Ram Fiat in Orange County, CA, brings LAD’s total expected annualized revenue acquired in 2021 to $6.2 billion. These acquisitions follow shortly after LAD joined with Pfaff Automotive Partners to expand into Canada. The company is well ahead of pace to exceed its five-year plan, announced in July 2020, to reach $50 billion in revenue and $50 of earnings per share. These acquisitions were financed using existing on-balance sheet capacity. Source: LAD

bers that gives an extra advantage to be competitive in their search for a rewarding profession. There is no doubt that with the assistance of the Military Service Technician Education Program, our transitioning service members will be successful in finding employment in a trade they enjoy.” As vehicles become more technologically advanced and electric vehicles become more prominent, the automotive industry needs highly trained professionals. “We’re honored to be supporting the brave men and women who serve this country, and to partner with a highly regarded manufacturer like BMW,” said Jerome Grant, CEO of UTI. “With the skills they gained in the military, and the hands-on training and the backing of BMW—a true industry innovator—these service members have a promising future. As these service members transition to civilian life, we are gratified that they will be offered jobs at BMW dealers.” BMW MSTEP is an expansion of BMW’s existing efforts to address the technician shortage while

also supporting and providing career opportunities for U.S. service members. With more than 5 million BMW Group vehicles on the road in the U.S. and access to skilled technicians still limited, BMW has invested in several initiatives designed to engage, attract and find technicians for its network, including the original technician education program known as BMW STEP. BMW STEP is the most comprehensive BMW technician development program in North America. It is taught in nine locations across the country, producing graduates preferred by dealers nationwide. The program chooses the finest talent from post-secondary automotive training programs and colleges. More than 6,500 STEP technicians have graduated from the program to date and represent part of the current BMW network technician total. For more information on UTI, visit UTI.edu. Source: UTI

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Less Confident would recommend adolescents ages 12 to 18 get vaccinated with an FDA approved vaccine. 72% of respondents said yes. 90% of Democrats said yes. 66% of Independents/Other said yes. 53% of Republicans said yes. Respondents were asked if they support wearing masks in schools to reduce the spread of the coronavirus. 74% of respondents said yes. 92% of Democrats said yes. 71% of Independents/Other said yes. 50% of Republicans said yes. Respondents were asked if they support wearing masks in public areas to reduce the spread of the coronavirus. 75% of respondents said yes. 92% of Democrats said yes. 72% of Independents/Other said yes. 52% of Republicans said yes. Respondents were asked if they believe wearing face masks reduces the likelihood of contracting the coronavirus. 72% of Americans said yes. 91% of Democrats said yes. 68% of Independents/Other said yes. 51% of Republicans said yes. Americans were asked how concerned they are about someone in their family becoming seriously ill from the coronavirus. 72% of respondents said they are somewhat or seriously concerned as compared to 57% in an earlier June poll. 84%

of Democrats, 70% of Independents/ Other and 56% of Republicans said they are somewhat or seriously concerned. Americans were asked how concerned they are about someone in their family becoming seriously ill from the Delta variant. 73% of respondents said they are somewhat or seriously concerned. 85% of Democrats, 72% of Independents/Other and 56% of Republicans said they are somewhat or seriously concerned. Americans were asked how concerned they are about someone in their family that has been vaccinated becoming seriously ill from a “breakthrough” infection. 62% of respondents said they are somewhat or seriously concerned. 71% of Democrats, 60% of Independents/ Other and 51% of Republicans said they are somewhat or seriously concerned. Respondents were asked if they feel safe dining out in restaurants if they are vaccinated. 57% of Americans said yes, which held roughly steady from a previous poll in April (58%). 56% of Democrats said yes, 54% of Independents/Other said yes and 64% of Republicans said yes. Respondents were asked if they feel safe using air travel if they are vaccinated. 51% of Americans said yes, which held roughly steady from a previous poll in April (50%). 48% of Democrats said yes, 50% of Independents/Other said yes and 59% of

FinishMaster, Inc., Reorganizes Sales Force FinishMaster, Inc., a leading provider of automotive and industrial paint, coatings and related products, announced a reorganization to its sales team, transitioning from regional-based to a customer-focused sales structure. The new structure features three teams to better align the company with the marketplace and improve overall efficiency. Traditional Accounts represents the company’s largest cus-

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Republicans said yes. Respondents were asked if they feel safe attending full-capacity stadium events if they are vaccinated. 32% of Americans said yes, which held roughly steady from a previous poll in April (33%). 26% of Democrats said yes, 30% of Independents/ Other said yes and 46% of Republicans said yes. On Sept. 3, the Centers for Disease Control and Prevention (CDC) announced a new study that indicated a rise in child and adolescent hospitalizations related to the coronavirus and highly contagious Delta variant during the summer. The study showed hospitalization rates of adolescents age 12–17 years were 10 times higher in the unvaccinated compared with those who were fully vaccinated. The CDC recommends everyone age 2 and older wear masks in public spaces, schools and childcare centers. The CDC also recommends everyone age 12 and older to get vaccinated to prevent the spread of coronavirus and the Delta variant, reportedly more than twice as contagious as previous variants.

The CDC acknowledged that while COVID-19 vaccines are effective at preventing most infections, they are not 100% effective and breakthrough infections monitored by a CDC hospitalization rate tracking system. According to CDC data, 62% of Americans age 12 and over are fully vaccinated as of Sept. 4. 64% of Americans age 18 and over are fully vaccinated (up from 55% in June). Americans over age 65 are fully vaccinated at a significantly higher rate (82% in September; up from 77% in June), indicating a promising way forward for the most at-risk population. Each state health department has a tailored plan for vaccination rollout in the U.S. Currently, the three vaccines authorized and recommended to prevent COVID-19 by the CDC are Pfizer-BioNTech COVID-19 vaccine, Moderna COVID-19 vaccine and Johnson & Johnson’s Janssen COVID-19 vaccine. Source: Long Island University Steven S. Hornstein Center for Policy, Polling and Analysis

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The Paradox most lithium-ion batteries, some of the ways that lithium is sourced are far from environmentally friendly. An alkali metal, lithium has seen enormous growth in demand over the last few decades. This is partly a result of the growth in demand for EVs, but also the fact that lithium is used in the batteries of many electronic devices, such as smartphones and laptops. Lithium is also an important raw resource for the production of glass and ceramics. And its use has been accelerating over time. According to some sources, between 2008 and 2018, annual production of lithium rose from 25,400 to 85,000 tons. Li-ion battery production aside (we’ll dedicate a section to that later), other environmental impacts include the kinds of motors used in EVs. Depending on the model, these will either be permanent magnets or induction motors. The former tend to be made of

rare-earth metals which require energy-intensive extraction and refinement processes. The mining of these materials can also lead to the release of toxic byproducts that, in countries with less than ideal environmental practices, can be devastating for the environment. Another environmental impact of EVs is the method in which the electricity used to power them is sourced. For many countries, this still includes large amounts of fossil fuel power stations. Carbon dioxide emissions aside, the combustion of carbon-based fuels releases other noxious fumes, including sulfur and nitrous oxides, as well as particulate matter. This can lead to secondary environmental impacts like acid rain and can cause respiratory problems if the particulate matter reaches a certain threshold. EV vehicles, like combustion-engined vehicles, also release particulate matter from their braking systems. This so-called “non-exhaust particle emissions (PM)” can also contribute to respiratory diseases in built-up areas like cities. And the effects of this can be

significant. According to some statistics, this form of PM may be responsible for thousands of premature deaths in the UK alone. It is important to note that these kinds of statistics rarely distinguish between the source of the PM, and include various sources including EVs and convention combustion-engined vehicles. Interestingly enough, asbestos used to be used as brake pads in many vehicles, but has since been banned in many countries around the world. But we digress. While generally considered a smaller contributing source than internal combustion engine vehicles (ICEs), EVs still require friction braking systems to operate safely. Regenerative braking systems can be used to alleviate the issue of PM generation when braking, but ultimately to stop any vehicle, some form of friction-based braking will likely be necessary. For this reason, a factor termed the “rebound effect” could come into play. As EVs become more popular over time, they are incentivized by authorities, their costs reduce

over time and more people will be encouraged to use them. The result, as the argument goes, is we will see more of them on our roads, although since they release fewer PMs overall, this may be a benefit. The issue with PMs could also be mitigated, for all types of vehicles, with advancements being made in frictionless braking systems (like eddy current brake systems), although these are likely some years away from being commercially viable. What are the benefits of lithium-ion batteries in EVs? Lithium-ion batteries, Li-ion for short, are one of the most ubiquitous sources of portable power in the world today. You can find them in cellphones, laptops, power tools and, of course, electrical vehicles. The reason for this is varied but, in short, the technology is reliable, requires low maintenance, lasts a relatively long time, can be charged quickly and is usually safe and easy to use. All great attributes as a portable source of power. But one of the main standout

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features of this technology is the ability to recharge the batteries as needed. In fact, most Li-ion batteries can be charged, discharged and recharged hundreds of times before expiring. Compared to other common types of batteries, Li-ion batteries also tend to have a higher energy density and voltage capacity and lower self-discharge rate. This makes them a great way to store and transport energy efficiently and easily. Let’s expand on some of the technology’s main benefits: Li-ion batteries require less maintenance: With regards to maintenance, Li-ion batteries, unlike lead-acid batteries, do not need to be “watered,” meaning they require less monitoring and skilled operatives to conduct maintenance on them. They last a long time: Li-ion batteries, as previously stated, last a relatively long time. On average, a Li-ion battery can be expected to remain serviceable for eight or more years (depending on use). Li-ion batteries are rechargeable: Whether used for domestic appliances or industrial machines, the ability to recharge them at will is incredibly useful. Charging is also relatively fast, and getting faster, as we have seen with advances in super-quick charging in EVs. They are generally safe: As Liion batteries do not need the highly toxic chemicals found in more conventional batteries, such as acidic components in lead-acid batteries, they are relatively safer to use and dispose of. Li-ion batteries are relatively environmentally friendly: When compared to lead-acid batteries and to fossil fuel alternatives, Li-ion batteries are much better for the environment. Lithium isn’t a toxic heavy metal like lead, and directly replacing internal combustion-engined vehicles with EVs using li-ion batteries as a power source helps reduce emissions. However, as you are about to find out, the environmental benefits of Li-ion batteries may in some ways be shortsighted. What is the environmental impact of battery production and disposal? Possibly the most important environmental impact of EVs is the

way lithium for their batteries are sourced. These batteries tend to consist of lithium cobalt for the cathode and graphite for the anode. A typical EV lithium-ion battery’s electrolyte is also made of lithium salt. More than half of this lithium comes from the so-called Lithium-Triangle that lies under Argentina, Bolivia and Chile. To extract it, miners drill holes in the salt flats and pump the salty, mineral-rich brine to the surface, leaving it to evaporate in huge artificial lakes or ponds. This process uses a lot of water, more than 500,000 gallons for each ton of lithium produced. Such enormous consumption of water impacts not only the surrounding ecosystems but also has a huge impact on local farmers, for obvious reasons. Not only that, but these large evaporation pools are often far from sealed. This can, and has, led to the leaching of toxic substances into the surrounding water supply. As happened in Tibet a few years ago, the accidental release of substances like hydrochloric acid kills large amounts of aquatic animals such as fish. But EV batteries are not just all about lithium. There are some other key components that are just as potentially harmful to the environment as lithium, if not more―enter cobalt and nickel. The former is found in large deposits across the Democratic Republic of Congo and central Africa. And this is one of the main problems―its geographical location. It is relatively easy to extract cobalt, which has produced a large incentive to dig it out and sell it. However, this is often conducted unsafely and with little concern for the environment in enterprises termed “artisanal mines.” These informal mines often involve the use of child labor who extract the raw materials by hand with little to no protective equipment. Cobalt mining produces a lot of airborne particulate matter, which often contains toxic contaminants like uranium. Inhalation of these substances has been linked to serious health problems, including respiratory disease and birth defects. Cobalt mining sites also often

22 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

contain sulfur-containing materials that can generate sulfuric acid when exposed to air and water. When this acid drains from the mines, it can devastate rivers, streams and other aquatic and terrestrial environments for a very long time. Where the batteries for EVs are made is also an important factor when considering their environmental impact. According to Forbes, batteries produced in China produce somewhere in the region of 60% more carbon dioxide than internal combustion engines. If China could be convinced to adopt Western standards for production, this could be significantly reduced. The report also found these factories could cut their emissions by up to 66% if they adopted manufacturing techniques used in America or Europe manufacturing techniques. If this were to happen, the extraction process and production of batteries would be on a par or slightly higher than the manufacturing process of ICE vehicles. EV batteries also tend to be pretty heavy. This can result in other, often overlooked, environmental

impacts like the need to attempt to reduce the weight in other parts of the car. Lighter materials like carbon fiber-based polymers tend to be more energy-intensive to produce and difficult to recycle. Another issue with EVs is the way in which the electricity used to charge its batteries is generated. While leaps and bounds have been made in adding renewable technologies to many countries’ energy mix, many are still heavily reliant on carbon-based power stations. This is not insignificant either. According to some sources, EVs, on average, emit around 4,450lbs of CO2 each year indirectly. To put that into perspective, conventional gasoline cars emit at least twice as much. However, it is important to note that this varies widely around the world. Battery production is only half the story, however. The way that batteries are disposed of at the end of their life can also potentially damage the environment. At present, there are few countries that regularly attempt to recy-

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cle lithium-ion batteries. This has led and will continue to lead to large amounts of spent batteries ending their days in landfills. This is incredibly wasteful, as many of the main components, like lithium, could be recovered and reused. While recycling can be achieved, most of the current research has focused on improving durability, efficiency and reduced cost of production. Current practices involve simply smelting (high-temperature melting and extraction) of old batteries in a process fairly similar to the mining industry. This is a very energy-intensive process, compounding the hidden CO2 cost of EVs during their construction. Improving the methods of recycling these old batteries could be potentially very lucrative, however. It may also become ever more geostrategically essential as time goes by. Where does lithium come from? Lithium, one of the main components of lithium-ion batteries, comes from two major sources: brine and hard rock deposits. The former

is generally found in salt lakes and is extracted by evaporating off the water to leave lithium-concentrated salts. Brine evaporation is the simplest and most common form of lithium extraction, but tends to yield the lowest grade of the material. At present, more than half of the world’s lithium resources lie under the salt flats in the Andean regions of Argentina, Bolivia and Chile. Extraction is conducted by pumping huge amounts of brine groundwater from drilled wells to be left to evaporate in brine pools or ponds. Also called salterns, salt pans or salars, here the lithium-rich brine water is left to evaporate in the sun. Depending on the makeup of the groundwater, this tends to lead to a concentrated mixture of manganese, potassium, borax and lithium salts. This is then filtered, and placed in another evaporation pool until a commercially viable amount of lithium carbonate salt can be extracted. These pools or ponds can become havens for some types of wildlife, including algae and some

endangered birds. As a general rule of thumb, it takes about 2 million liters of water to produce a ton of lithium. Hard rock deposits, on the other hand, tend to produce the best yields of lithium. So, how is lithium mined? Hard lithium mining requires significantly higher investment costs as well as extensive geological mapping and exploration to find suitable deposits. Once found, drilling equipment is used to extract the lithium ore, which provides better quality lithium at the cost of increased monetary burden. There are various lithium ores including, but not limited to, petalite (LiAl(Si2O5)2, lepidolite K(Li,Al)3(Al,Si,Rb)4O10(F,OH)2, spodumene LiAl(SiO3)2. To date, the largest hard rock sources of lithium include Australia and Chile. Hard rock lithium extraction tends to require about three to four years of capital investment before becoming productive, and mines― depending on the ore reserves―tend to have an average productive life of about 16 years.

Brine evaporation extraction methods tend to require five or so years of investment prior to production but will tend to last much longer than hard rock mining, with average lifespans of about 30 years. According to some estimates, at the current rate of consumption and production, there is expected to be a shortfall in lithium by the mid2020s. Can lithium-ion batteries be recycled? As we have previously touched upon, lithium-ion batteries most certainly can be recycled. However, the current practices of Li-ion battery recycling, and projects currently in the works, are still very much in their infancy. For example, in Australia, only about 2% to 3% of spent batteries are currently collected and sent offshore for recycling. European and U.S. rates are not that much better, at around 5%, give or take. “There are many reasons why Li-ion battery recycling is not yet a universally well-established practice,” Linda L. Gaines, of Argonne National Laboratory, said in an in-

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terview with C&EN. The reasons include things like technical constraints, economic barriers, logistic issues and regulatory gaps, to name but a few. At present, most suppliers and their clients are currently focusing on improving the battery’s lifespan and efficiency and lower their costs rather than seriously focusing on recycling them at the end of their lives. The most common method of recycling the batteries is to melt spent batteries at high temperatures to recover the precious metals within them. This takes a lot of energy and is actually more expensive than extracting and refining new materials from raw sources. Research is ongoing, but most efforts are still small-scale projects conducted by independent research groups or startups. However, some government initiatives have also been launched to attempt to stem the growing tide of used batteries. For example, in January 2019, the U.S. Department of Energy (DOE) launched the country’s first Li-ion battery recycling R&D cen-

ter, the ReCell Center. The idea is to help make battery recycling profitable and allow the U.S. to become self-sufficient in battery resources it lacks, like cobalt. The U.S. DOE has also launched a $5.5 million Battery Recycling Prize to help encourage the free market to find innovative solutions for the collection, storage and recycling of spent batteries. Across the pond, in the UK, a group of researchers from various universities has also created a consortium to achieve a similar goal. Called the Reuse and Recycling of Lithium-Ion Batteries project, it brings together 50 scientists and engineers from eight institutions and 14 industry partners. What can be done to make EVs truly “green”? So, given the very real environmental impacts EVs have on the planet, what can be done to make them truly “green”? Here are some examples. 1. Dispense with Li-ion batteries altogether Since EV batteries are hazardous to the environment, from cradle

to grave, the most logical step to take would be to stop using them altogether. However, this is a lot harder than it sounds. There are, after all, good reasons why Li-ion batteries have become so ubiquitous (as we detailed earlier). That being said, there are some potential avenues to explore. One example is the salt-based batteries currently under development through a collaboration between the University of Nottingham and six research institutes across China. By combining the performance of oxide fuel with metal-air batteries, these batteries could prove to be a viable replacement for Liion batteries. The best part? These batteries would be fully recyclable, affordable, safe and, in theory, “green.” Other interesting examples include titanium-nitride batteries or using the “wonder material” graphene. Other exciting initiates include a potential “never-ending” battery, too. Made from recovered and reused nuclear fuel, these batteries could last for more than 28,000 years, or so the developers claim.

Currently in development by a California-based startup, these nano-diamond batteries are nearly indestructible and will be cheaper than existing Li-ion battery packs if they can be fully developed. Other more esoteric examples include eco-friendly, liquid batteries that run on vanillin. Currently in development by researchers at the Graz University of Technology, this interesting line of research would be truly sustainable. Another option could be by using Zinc-air batteries. These have been shown to significantly out-perform Li-ion batteries on all levels, and are also a lot better for the environment. However, it should be noted that zinc, if leaked into the environment, can be devastating for local ecosystems. 2. Make Li-ion batteries longer-lasting Another potential solution is to make the batteries as long-lasting as possible if a viable replacement for Li-ion is not found. This would help alleviate the need to extract new raw materials to replace spent batteries, and would also help reduce the need

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to either dispose of or recycle them at the end of their lives. And, thankfully, some options are currently being investigated to achieve just this. One example is to add molybdenum and sulfur to Liion batteries to produce cheap, very light batteries with almost twice the energy density of existing Li-ion batteries. Currently in development by the University of Texas, molybdenum and sulfur would be used to replace the lithium electrodes while still providing a viable battery unit. Other solutions include the use of sulfide electrodes to help extend the working life of Li-ion batteries too. Currently being investigated at the University of Florida, sulfide-Liion batteries should be able to extend the number of charge-discharge cycles with little to no degradation of the battery. 3. Try to find lithium sources in places that care about the environment Failing either to replace Li-ion batteries or finding ways to extend their functional lives, another alternative could be to find more sustain-

able sources of lithium. Whether this is opening up mining and refining operations in countries with strong environmental regulations, or searching for sources with a high bar to entry for extraction, this would go a long way to reducing the environmental impact of lithium battery production and, by extension, the EV industry in general. Seawater, for example, is a potential source of lithium, although it will require fairly sophisticated extraction methods. Refining the process to make it as cheap as evaporation pools is going to be a very real challenge. Other countries, like Portugal, are also pushing forward with finding ways to produce lithium domestically. But again, these all require the extraction and use of raw materials that have the potential to produce some form of pollution. This is where finding ways to use what we already have, with regards to lithium, might be the best option. After all, the damage to the environment from extraction has already been done. This would mean recycling old

batteries. Many landfills around the world are literally packed with spent electronic devices from laptops to old smartphones. Could these be “mined” instead of removing fresh lithium from the environment? And that is exactly what researchers at the University of Birmingham, UK are proposing. They are hoping to use robotics technology developed for the nuclear industry to safely dismantle potentially explosive Li-ion cells from EVs to extract the precious metals within. But that is really only half the story. Any battery that relies on electrochemistry, like Li-ion batteries, runs the risk of having its electrodes degrade and decay. You won’t necessarily know the condition of these

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So much for an extended reprieve from soaring wholesale prices. Black Book reported Sept. 7 its Used Vehicle Retention Index for August nearly hit a new record for the second time in the past three months. The August reading turned out to be the second-highest Black Book has recorded, as the index increased 3.9 points or 2.4% from July to come in at 165.7 points. Analysts noted the all-time high came in June at 166.0. Still the August index reading is 28.5% above where it was at the same time last year. “After a brief break in July, wholesale prices started to increase at the end of August as the industry came to the realization that the new inventory shortage will worsen in the fall,” Black Book Chief Data Science Officer Alex Yurchenko said in a news release. “Dealers accelerated the

acquisition of used inventory in anticipation of emptier new vehicle lots. “In addition to the chip shortage, Hurricane Ida flooded large portions of the Southeast and Northeast, potentially aggravating inventory problems. We anticipate prices to remain strong at least through October,” continued Yurchenko, who is one of the scores of experts and executives scheduled to appear during Used Car Week, which begins on Nov. 15 at the Red Rock Resort in Las Vegas. The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as percent of original typically equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage and condition. To obtain a copy of the latest Black Book Wholesale Value Index, go to this website.

materials without opening up the battery. This has led some other researchers to look into alternative ways to recycle batteries and recover materials like lithium in a more predictable manner. They propose a biological recycling process that would use bacteria to process the waste metals, coupled with hydrometallurgical techniques which use solutions of chemicals in a similar way to how lithium is extracted in the first place. If successful, this kind of initiative could be a very real gamechanger for lithium and EV industries. So, in conclusion, are EVs really that “green” and sustainable for the planet? We will let you make up your own mind.

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

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Wolfchase Honda Bartlett

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Checkered Flag Honda Norfolk

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 31

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.

Honda Increasing Crash Parts Production, Transitioning Certified Auto Body Shops Over Time

Shop Showcase

Collision repair shops reporting dif- trying to get the common sheet metal ed to collision repairs. The vehicle, ficulties in getting replacement parts items out to shops on a timely basis. for example, has extended range this year may be glad to hear Hon- We are checking our back orders and blind spot information sensors on with Ed Attanasio seeing which [other parts] we can some trim packages. da is ramping up parts production. “The original radar saw, I be “As we all know, back orders are ramp up production on.” really hitting the industry hard, regardless of the manufacturer,” Dane Rounkles, manager of wholesale collision parts for American Honda, said during with a GuildEd 21 webinar Attanasio in late summer. “So we went to senior management, and anything we stamp here in the U.S., we’ve asked for them to increase production to make the parts available. “Now, some of you may still have some back orders on sheet metwith Ed Attanasio al, and that may be something we stamp in another country,” Rounkles Collision repairers need to be aware the replacement procedure for the laser-brazed roof panel on continued. “But we have increased the 2022 Honda Civic requires a combination of welding, adhesive and mechanical fasteners greatly the availability of sheet metal parts, and we will continue to do so. The automaker also used the lieve, 3 or 4 meters,” said Scott Right now, I don’t have Ed the quantities with Attanasio webinar to highlight some informa- Kaboos, collision technical specialthat we want of every part, but we are tion about the new 2022 Civic relat- ist for Honda. “This one can see 75

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meters. So it’s much more intense of a radar.” The system no longer requires a specific aiming inspection procedure, but instead is capable of self-learning while the vehicle is driven more than 18 mph. Those test driving the vehicle should be aware that until the self-learning is complete, the reset system is limited to 9.8 feet of detection. There are also new limits on what repairs can be made to the areas on the rear bumper through which the radar system operates. Honda provides a printable template technicians can tape onto the bumper to determine where the radar wave area is. “If within that area, there is a crack, a dent, a gouge, anything like that, it cannot be repaired,” Kaboos said. “As a matter of fact, they tell us we cannot even use touch-up

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paint in that area or it can mess with the radar. If it has some fine scratches, you can polish, but you need to polish that entire area evenly. The thickness of the paint affects the radar quite a bit.” He said that also means no blending of primer or color can be done in that area. “It is a challenge if you have damage near that area, I’m not going to lie to you,” Kaboos said. “There’s going to be more bumpers replaced than in the past generation of Civic.” Another change to the 2022 Honda Civic collision repairers need to be aware of is the resin composite front bulkhead, replacing mild steel one on the previous Civic model. The automaker says the design improves access to the engine compartment for assembly and service but also that it should be checked for cracks following a collision. “It can look fine, but when you wet it down, all of a sudden a crack can become apparent,” Rounkles said. “So you really need to pay attention to that. While the vehicle may not have gotten hit hard enough to hit into the rails, these [composite

parts] can crack and not be overly visible.” Kaboos concurred. “I know just spraying a little wax and grease remover on it to add a little gloss does make those cracks show up a lot better,” he said. Kaboos said the 2022 Civic is now the third Honda model with a laser-brazed roof panel that requires a combination of welding, adhesive and mechanical fasteners for replacement. Shops need to be aware they must order a number of brackets and bolts in addition to the replacement roof panel. Kaboos and Rounkles said they sought to have the parts bundled as a kit with the roof panel, but think because the parts come from different vendors, creating a kit wasn’t feasible for the automaker. Honda also doesn’t supply much information about the foam dam that must be used in replacing the roof― to ensure the adhesive, a specified 3M product, doesn’t flow out of the joint while it cures―but Kaboos found a Kent product that works. “If you skip that part of the step, there’s a good chance you’re not go-

ing to have enough adhesive left in that joint when you’re done,” Kaboos cautioned. The 2022 Civic also has a hem flange on the rear side outer panel the 2021 model did not. “Honda has a special tool to install these available in our Honda tool rental program,” Kaboos said. “Or you can buy it, but I’ll be absolutely honest: It is ridiculously expensive. It was designed in Japan, and by the time it got through the build process, they had put such tight tolerances on it, that it is extremely expensive. We are working on that. But probably your best solution is to go through the tool rental program and just rent it from us.” Rounkles also provided more information about the automaker’s auto body shop certification program, which will begin transitioning certified shops from ProFirst to the new Honda and Acura Certified Collision program on their next renewal date. He said the company hasn’t ruled out certifying additional shops in some markets. “We are currently technically full in terms of the number [of

shops] we wanted to have in our certification program,” Rounkles said. “But we will add shops as needed based on geographical and units-in-operation conditions. We do not have a specific radius of how close a [certified] shop can be to another one. We’re going to try not to put one right across the street from another, but I can tell you that I have actually seen four certified shops in a two-block area. But that’s because in the metro area, that’s where they put all the body shops. So we will have situations like that.” He said Honda maintains a waiting list for shops interested in joining the program. “As units-in-operation change, or shops decide to no longer be certified, we will reach out to the shops that we have on our list first before we go seeking other shops,” Rounkles said.

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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.

From the Desk of Mike Anderson: Researching OEM Procedures for the Paint Shop One of the things I think our collision repair industry has been making small strides in is researching OEM repair procedures. I don’t think we’re where we need to be on that yet―every repair on every vehicle every time―but we’re making small strides. But one thing I think even fewer people are thinking about and doing is researching OEM repair procedures from a refinish perspective.

mend baking the Volt vehicle for more than 60 minutes at 160 degrees. Damage to the high voltage battery may occur.” “During refinishing operations, the paint booth temperature must be set at or below 140 degrees with a bake time of 45 minutes or less,” Ford states about its 2017 Fusion hybrid. Hyundai’s time limits are even more limited for curing its 2017 IONIQ hybrid: heat treatment “must not exceed 70 degrees Celsius for 30 minutes, or 80 degrees Celsius for 20 minutes.” So it’s important as you repair electric and hybrid vehicles that you understand you need to make sure you research the procedures Audi says the lithium-ion battery in its 2017 Q5 Quattro from a refinish perspective hybrid can be damaged when the temperature goes above to understand the curing 158 degrees limitations. One example: This will hope- Another example: key fobs. If fully not come as news to repairers you read a lot of the owners’ manuin markets with significant numbers als or OEM repair procedures, they of hybrid and electric vehicles, but will say not to leave a key fob in a automakers generally have very de- spray booth because if you have the fined limits on the curing times and heat cranked up too much, it can temperatures for electric vehicles. damage the key fob. As with so many things, these limits Some other refinish-related recan vary not just by automaker, but search you should be doing: even among different models from the same automaker. ▪ Cure time limitation for adhesives. Audi, for example, indicates As with paint curing, there are often the lithium-ion battery in its 2017 Q5 Quattro hybrid is functional only up to 131 degrees, and can be damaged when the temperature goes above 158 degrees. “In order to not exceed 158 degrees, do not leave an Audi high voltGeneral Motors does not recommend baking the Volt age vehicle longer than 60 vehicle for more than 60 minutes at 160 degrees minutes in the paint drying cabin,” the automaker’s documen- strict parameters that need to be foltation states. lowed. Acura states when drying a 2016 RLX AWD hybrid in a heated ▪ Limited-use toners. With OEMs paint booth, “make sure the tempera- introducing more and more unique ture does not exceed 149 degrees.” colors, shops are more likely to have In documentation for the 2017 a need for a limited-use toner, one Chevrolet Volt, it’s clearly stated, they don’t keep in stock because it “General Motors does not recom- is used infrequently. If you don’t do 34 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

the research early in the process to determine if there is a need for such a toner, you’re likely to run into delays in production.

clearcoat blending in any warranty or collision repair.”

▪ Paint precautions around sensors. Honda’s 2022 Civic has areas on both ends of the repair bumper where variations in paint thickness can significantly impact the performance of the blind spot information sensors. Honda provides a printable template technicians can tape onto the bumper to Honda’s 2022 Civic has areas on both ends of the repair bumper where variations in paint thickness can significantdetermine where the radar ly impact the performance of the blind spot information wave area is. That means sensors no blending of primer or ▪ Clearcoat blending. Visit www. color can be done in that area. OEM1Stop.com to download the clearcoat blending statements issued All this makes it pretty clear: We by many automakers. Ford’s state- need to be researching OEM proment, for example, says the auto- cedures from a refinish perspective, maker “does not approve the proce- not just from a body or mechanical dure of clearcoat blending or using perspective.

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 35 6/30/21 1:37 PM

Consultant Says CA Auto Body Shops Need to Know the Laws that Affect Them by Ed Attanasio

It all began with a poorly-painted Camaro, which led to a career as an industry consultant whose services are coveted by auto body shops primarily in California. When things go sideways and a shop owner or manager has more questions than answers, they don’t call the Ghostbusters―they call Juan Martinez. He learned the industry by working for top shops on primarily luxury brands in southern California over two decades. But the way he entered the collision repair industry happened literally by chance when Martinez was 12. “My sister had a 1970 Camaro and she wanted to sell it,” Martinez said. “I told her don’t do it, I’ll figure out some way to pay for it eventually. I painted it in forest green and showed it to my father and he told me it was mine. I didn’t have to pay a dime. “There was a mom-and-pop paint store in our town, and they

helped me through the process. It cost me $500 to paint that car, and I started driving it before I was 16. The cops would spot me and pull me over, but they never gave me a ticket. They would say, keep the vehicle parked right where it is, and then I would walk home. But they always gave it back.” The experience led to a job at an auto body shop in San Diego, CA, as a prepper, and for the next 20 years, he worked as a painter, estimator, shop manager and regional manager. When he realized collision repair was in his blood, Martinez dropped out of college and went all in. He landed a job as an estimator at a prestigious shop in Beverly Hills, learning from great mentors and accumulating knowledge he could call upon throughout his career. Some years ago, Martinez started JM Business Solutions, Inc., in West Covina, CA, which helps body shops with fixed operations, business tactics, insurance relationships and customer service. Martinez trains how to write cleaner sheets,

navigate through DRPs and make more money on parts and repairs, for example. He’s all about first-person, one-on-one training, visiting 20 to 30 shops almost every week.

cerns?

As a body shop industry consultant, what are your top con-

First, I would say safety and then insurance abuse are two issues that immediately come to mind. I encounter them literally every day. Some body shops are doing things right now that are not safe. They just don’t know when to say “I shouldn’t take this car in.” These shops are more concerned about making money. But if you’re not a Porsche-certified shop, don’t try to work on one. Their attitude is that they’ll figure it out, but in the end it’s unsafe for the owner of the vehicle. Not to mention that it’s also a bad business decision for the shop. In many cases, they’re not going to make money on the repair. It’s likely that they will also make mis-

takes, which is a liability issue. I can safely say that 80% of all the shops out there right now have at least one vehicle they should not be repairing. It’s no sin to admit you don’t have the training or equipment to work on a certain vehicle, so find a shop that can do it and give them a referral. I get calls all the time from shops who say we don’t know how to write an estimate on a higher-end vehicle, can you help us? Ninety-nine percent of the time they shouldn’t have taken the car in at all. I tell them to refer it, get your teardown money and a couple days of storage, and then move on. The insurance companies abuse body shops by operating with impunity and violating legislation that was created to protect consumers. Most shops don’t know the law. So, they can’t usually catch things, like paint caps that are illegal. But no one addresses them, so guess who pays for it? If you don’t have well-trained estimators, they won’t catch things and the insurance companies love

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it. They prey on the fact that most shops don’t know the regulations, so it’s to their advantage. I see so many poorly written estimates, it’s crazy. To make money, they must be cutting corners, because otherwise they would be out of business by now.

What’s your opinion about DRPs? Should shops pursue them or reject them?

There’s a market for DRPs, but the problem is they’re not the same. The DRP game has changed so much in the last 10 to 15 years, and more and more shops are gravitating away from it. Unless you have other sources of revenue, DRPs aren’t profitable enough to keep the doors open. They used to be the main source of revenue for many shops, but now they’re looking for other venues, usually from dealerships or fleet work, for example. If you are a new shop and you don’t have a book of business, a DRP might be good for the short-term, but it won’t likely be sustainable. Every DRP contract I’ve seen

within the last five years is so one-sided, I can’t understand why any shop would sign one. They take advantage of the less experienced shops and thrive on their lack of knowledge. I’ve convinced some of my clients not to take certain DRPs on and they end up thanking me every time. One source of revenue for shops that’s fairly new in California involves working with attorneys, who want to represent their clients in personal injury cases. They find them on Yelp and are building business relationships with shops that are getting good reviews. It has become a viable source of business for shops because these lawyers are representing injury victims and want to make sure that their cars are being repaired properly. In southern California, everyone owns a Porsche, a Lexus, a BMW or an Audi. This means OE certifications are more important here than in many other parts of the country. Shops have to make certain their training is up-to-date and that they have the right equipment to do the job. Because if they can’t or

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won’t, there are 20 other qualified shops out there that can.

What are some of the most common problems your clients have encountered while working with insurers?

The Fair Claims Settlement Act (Section 2695.8) states that insurers need to pay out in a “workmanlike manner,” but they don’t do it. When a shop writes an estimate, there are three things the insurance companies can do. First, they can adjust the claim, which means that they will write their own estimate. That means that the car has to be fixed using nationally distributed data― ALLDATA, Mitchell, for example― or the vehicle’s repair manual. The insurance companies don’t do any of it. In fact, they write the lowest estimate possible. They make it impossible to fix the car correctly. Then, when you request a supplement, they do it again―over and over. There are a small handful of insurance companies that don’t do it,

but the majority of them do. It ends up being a complete waste of time for the shops, not to mention for the consumers. The insurers would save a ton of money on rental cars without wrestling over every penny. They push cycle time through their DRPs, and then they choke them. Then they start calling the shop every day, asking when will the car be ready? In many cases, the vehicle is sitting there because the shop is waiting on the insurance company. It makes no sense. If they followed the legislation, then these problems would not exist. When a shop files a complaint, they will quickly discover that the California Department of Insurance (CA-DOI) employees don’t understand the legislation. Half the time, they will bail and send a letter that the dispute is over pricing and they can’t mediate. Most of the time, we’re not asking them to mediate, but to simply look at the legislation and the evidence provided. But, they don’t. The shop thinks the complaint didn’t go anywhere because the CA-DOI is on

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the insurance company’s side. But that’s not the case―they just don’t know. Steering does exist, but the insurance companies have gotten better at it. They don’t put anything on paper. When you file a DOI complaint, the DOI requests the claim file. In that claim file, the DOI won’t find any trace of steering. All steering communication takes place over the phone, using specific language to get a vehicle pulled out of a specific shop that won’t play by their rules. The solution to that problem would be for the DOI to request phone recordings pertinent to that claim file to hold these insurers accountable. Maybe petitioning or amending legislation to keep up with the electronic data of today would be beneficial. Do your clients often encounter issues over the constant wrestling match between aftermarkets parts vs. OE parts?

non-removable markings. But, most of them don’t―they use stickers. The legislation also says the parts have to be the same in fit, quality, safety and finish along with the non-removeable markings. The majority of these aftermarket parts aren’t the same because if they were they would be counterfeit parts. Aftermarket parts have to be physically different, that’s the fact. That’s why they don’t fit and why you’ll see gaps and other irregularities. When this happens to one of my clients, I direct them to write a new estimate to re-repair the car and submit it with their final bill. It states that the shop used aftermarket parts and they don’t fit. The insurance company will then say hey―why didn’t you tell us? They wanted the cheapest parts they could find, and now they’re shocked. But they know they’re on the hook, so they have no options. Once they see you understand the legislation, they will never try that again.

The legislation states that aftermarket parts must have

You are an active member and have served twice as

president of California Autobody Association’s Foothill chapter. Tell us about the importance of the organization and its role in the industry in California.

The shops that join CAA are always the top shops who see the value in the organization and what they do. The CAA provides its members with a lot of valuable information through people like Jack Molodanof, their lobbyist in Sacramento, and speakers we’ve had such as Michael Anderson, BAR representatives and industry leaders. I think the MSOs would benefit from joining CAA too. We plan on meeting again soon as opposed to Zoom calls, and we have some big plans for 2022, so now is the perfect time to join.

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New Lithium-Metal Battery Could Revolutionize Electronics by Fabienne Lang, Interesting Engineering

You’ve inevitably heard of lithium-ion batteries, which power most of our portable electronics and, of course, electric vehicles. They’ve undoubtedly revolutionized the way we live, but they also have some shortcomings, including short-circuiting and relatively short ranges for EVs. Researchers have been working hard to find better, longer-lasting battery solutions that don’t weigh a ton or cost an arm and a leg. Now, a team of scientists in Germany may have found the holy grail: a lithium-metal battery that reaches an incredibly high energy density of 560-Wh/kg with great stability. The team published its findings in the journal Joule. The new battery uses a combination of cobalt-poor, nickel-rich layered cathode (NCM88) and a commercially available organic LP30 electrolyte, which, when working together, enable storage of high energy per mass and a largely stable capacity over many cycles,

per the researchers. And the results are remarkable. Its energy density is above the 500-Wh/kg typical threshold that’s used to power next-gen EVs, and well above the regular 250-300Wh/kg energy density that lithium-ion batteries provide, as New Atlas pointed out. Moreover, the team explained that its new lithium-metal battery retained 88 percent of its initial storage capacity after 1,000 cycles. And its average Coulombic efficiency—the ratio between its discharge and charge capacity— sits at 99.94%. More research and adaptation need to happen before this battery is viable in the real world, but it’s a fantastic step forward. This news, alongside the recent discovery made by Harvard University researchers who shared the news of their stable, solid-state, lithium-metal battery in May in the journal Nature, only goes to show the leaps and bounds we’re making towards improved battery life, weight and storage.

38 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

1Collision Names Director of Location Development 1Collision proudly announced John Hollingsworth as director of location development. Hollingsworth will be responsible for the continued growth and development of 1Collision expansion of independent single and multiple location collision repair centers throughout the U.S. Prior to joining 1Collision, Hollingsworth spent more than seven years in a collision industry training organization working with teams on their culture and leadership. “I’m excited to be back in a different capacity but one that still allows me to use my gifts,” Hollingsworth said. “Having conducted a national search for the right individual to lead the business development charge, we are delighted John has joined our team,” said 1Collision President and COO Jim Keller. Source: 1Collision

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 39 8/4/21 9:08 AM

Behind-the-Scenes DCR Systems Tour Sponsored by AirPro Diagnostics, AkzoNobel & Car-O-Liner® from multiple organizations, including vendors and representatives Members of the collision indus- from GM as well as other auto body try recently had an opportunity to shops. tour the DCR Systems location in “They were extremely imMentor, OH, prior to the July Col- pressed with the operation and took lision Industry Conference (CIC) in notes,” he said. “It was great workCleveland. ing with the other sponsors to put Founded in 2004 and owned this together.” by CEO Michael Giarrizzo, DCR “As a long-term partner with Systems is known for its progres- Michael Giarrizzo and DCR Syssive thinking and operating in a pro- tems, AkzoNobel thought that while the industry was meeting in cess-centered environment. The company helps dealerships Cleveland for CIC it would be a outsource their auto body shops by rare opportunity to showcase what having DCR team members run dai- Michael and his team have accomly operations while being co-brand- plished,” said Nada Jokic, business ed with the auto dealer. Currently, consulting services manager for the DCR Systems operates nine produc- West Region at AkzoNobel. “The tion cells in seven dealer-based col- feedback was extremely positive as lision repair facilities in four states: many had heard of DCR but few had Ohio, New York, North Carolina and actually seen the systems and faciliMassachusetts. ty in person.” The tour was sponsored by Air- Tim Ronak, senior services Pro Diagnostics, AkzoNobel and consultant for AkzoNobel, said the Car-O-Liner® and included trans- ability to share information about DCR Systems and the processes that support proper repairs aligns with AkzoNobel’s desire to educate the industry. “Process-centered environments are the key to optimizing throughput efficiency while ensuring an OEM repair methodology is central to repair decisions,” Pictured, left to right, are Doug Bortz, Car-O-Liner, North said Ronak. “Michael GiAmerica; Michael Quinn, AirPro Diagnostics; Pam and Miarrizzo has created a rechael Giarrizzo, DCR Systems; and Nada Jokic, AkzoNobel peatable and documentable portation, dinner and a behind-the- process to support OEM procedure scenes look at the Mentor facility. repair methods and is successfully executing with this model daily.” Doug Bortz, sales manager of Sponsors Showcase DCR Systems Car-O-Liner, North America, said Mentor, OH, Facility “One of our core principles at Air- the company welcomed the opporPro Diagnostics is education and in- tunity to sponsor the event, which cludes educating the repair commu- was overwhelmingly attended. nity on safe repairs and processes,” “DCR Systems and Car-O-Linsaid Michael Quinn, president of er have a long-standing relationship AirPro Diagnostics. “Knowing Mi- based on one synonymous philosochael Giarrizzo and his family for phy―to create efficiencies that conover 20 years, I’ve watched DCR tribute to healthier work environSystems evolve into what it is to- ments and better customer service,” day―a process-oriented operation. said Bortz. “There is a continued We couldn’t miss the opportunity desire for industry notables to parto share their highly-disciplined ap- ticipate, learn and share insights to proach with the industry at large in elevate industry processes and ulattendance at CIC.” timately serve all collision repair Quinn said the event was very shops and customers at the highest successful and included leadership level.” by Stacey Phillips

40 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

ogy offers a very predictable and accelerated drying process that helps workflow run more consistently. “We are proud of our team’s vision for this industry, and it was an honor to share what we are doing with so many in the industry,” said Cheryl Boswell, CFO and managing partner of DCR Systems. “We have an amazing team and we are passionate about what we do,” said Giarrizzo. Many of the company’s technicians are homegrown. “It’s really gratifying,” Giarrizzo said. “It warms Pictured, left to right, are Jeff Hendler, J.D. Hendler/ my heart when you take Associates; K. Michael Bradshaw, K&M Collision; Todd Hesford, Mission Viejo Auto Collision; Kye Yeung, European somebody who has no clue Motor Car Works; Amber Alley, Barsotti’s Body & Fender; what they could accomTony Adams, AkzoNobel; Tim Ronak, AkzoNobel; and plish and within a couple of Jordan Hendler, Admin Concepts years, he or she can reach a master level of technician and do implemented into their daily work things and create a lifestyle they environment. Attendees also viewed didn’t think was possible.” the Symach equipment used in the Boswell said Carey Hehr, prefacility. Giarrizzo said Symach technol- op specialist at Classic Accident DCR Systems Team Shares Process Efficiencies After gathering for an Italian dinner, DCR Systems representatives took various groups through the facility highlighting the many process efficiencies they’ve developed and

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pair by eliminating waste, rework and stress, leading to increased profitability,” said Wynn. “It also empowers the team and allows everyone to continuously and creatively improve processes throughout,” added Arynne. Wynn first described the pre-op phase of the process. Here, all the variables related to the repair are thoroughly researched, investigated and discussed, so a one-time parts

Arynne said the production line is able to move continuously because it tells employees where they need to work. “The team recognizes where there may be a potential bottleneck in the production line and our team adjusts where they need to work,” she said. Wynn and Arynne also explained how the process differs from other collision repair facilities. One big difference, according to Wynn, is the strict structure and validations the company has in place during every step in the process. “Despite the random working environment, we have the same process that all cars go through to achieve consistent quality and performance on every single vehicle. This Pictured, left to right, are Roy Schnepper, Butler’s Collision; allows us to not only produce Dan Risley, CCC Intelligent Solutions; Ray Fisher, Automoconsistent quality but also an tive Service Association; and Jim Keller, 1Collision OEM-guided safe repair,” order can be placed before vehicles she said. “How we ultimately benefit are put in the production line. is in what our customers say about us “Pre-op is vital to ensure con- and our passion to fix vehicles.” tinuous flow in our production line,” Arynne described how the prosaid Wynn. cess enables the team to crosstrain.

Repair Center, is one example of an employee who has developed into a skilled writer and production enthusiast. Hehr joined DCR Systems eight years ago as a customer service representative (CSR). “I enjoyed helping customers and making sure they understood their rights when getting their cars fixed,” Hehr said. After assisting the company’s dealer partner and addressing warranty claims and small jobs, she realized she enjoyed writing and wanted to learn more. “With this amazing company they gave me every opportunity to grow and learn,” said Hehr. “I now have been writing for three years and enjoy every day.” During the tour, Mandy Wynn, national training and support manager, and Arynne Giarrizzo, central claims specialist, shared information about DCR Systems’ production process. “The patented production process at DCR Systems is unique in that it streamlines all of the variables associated with collision re-

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“This allows us to use resources where the work is needed,” she said. “We train team members and educate them on OEM manufacturers’ guidelines to ensure their greatest potential.” Andy Warren, store support specialist, explained the virtual huddle to tour attendees. “The virtual huddle is the last step prior to the repair plan being finalized,” said Warren. “It is basically an estimate review but done virtually.” Using FaceTime, virtual huddles are used every day throughout the company. The repair planner goes over the repair plan that shows the damages to the vehicle. Then, it is scrubbed for any items that may have been overlooked and verified all repairs are being done per OEM guidelines. “Performing the virtual huddle on each job is important for us because having that extra set of eyes glance over each repair plan is so crucial in our world,” said Warren. “Repair planners often get pulled away and have plenty of distractions during the day, and if we can catch

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something on the front end, then we can keep our process flowing and not lose valuable days on the back end.” He said it has also helped DCR Systems by having someone verifying all stores are performing OEM procedures. Another highlight was learning about the DCR Claims Portal, developed by Warren and Harley Wegman, repair plan specialist. Dave Martin, operations director, said the DCR Claims Portal is a revolutionary interface that allows for a complete claims settlement package and has myriad benefits for all facets of the repair industry. This includes a shop looking to make sure they have assembled all the documentation needed for a repair and adhering to OE certification programs, an insurance company looking to settle a claim for a policyholder or a subrogation claim, and a customer searching for a better understanding of what will be done to their vehicle. “The application dynamically aligns the work to be done with the corresponding evidence in a single

view,” said Martin. “It is the most simple and intuitive way to present the information for a repair and eliminates the countless hours spent trying to decipher buckets of documents and photos to specific repair operations by aligning all of that for the user.” He said the assembly of the portal is a great self-check on the completeness of the repair plan. “It helps ensure that your team has pulled together all of the necessary information to restore the vehicle per OE specifications once up-front rather than multiple times when requested by insurers throughout the repair process,” he said. “This results in an impressive time savings overall.” The development of the portal was born from the idea of continuous improvement. DCR Systems had a virtual portal prior to this version, but Martin said it did not meet the company’s needs to streamline its process. “The portal is a prime example of the persistence and ingenuity of our team to come up with better ways of doing things, even when

something doesn’t appear ‘broken’ in the first place,” he said. “It demonstrates what team members can accomplish when leadership encourages them to run with some of their ideas.” Most of DCR Systems’ processes have been created by team members. Arynne said working in a team-based environment empowers everyone to make continuous improvements. “We have a team of people who are game changers in our industry and we have a passion in what we do in collision repair,” said Wynn. “It’s a passion that’s contagious, especially when you have leaders such as Michael Giarrizzo and Cheryl Boswell.” Wynn said it’s not just about fixing a vehicle to collect a check at the end of the job. “We want to put safe vehicles back in customers’ hands, vehicles that we would trust to put our family and friends in and know that we have repaired them the way the manufacturer of that vehicle would have wanted it done,” she said.

Rivian was initially supposed to begin deliveries of its R1T electric pickup truck around the end of 2020. Then the date was moved to this summer, specifically in June, but the company couldn’t meet that deadline either. Now the new announced start of deliveries is in September and it looks like Rivian is not going to postpone it any further. CEO RJ Scaringe just announced Rivian will stick to its plan to start delivering the R1T in September. According to Electrek, Scaringe said: “Over the last several months we have been focused on not only ramping our production rate, but also dialing in our quality across each of the five areas of our plant: stamping, body, paint, assembly and propulsion (battery and drive units.) This challenging process involves multiple build phases—many of the vehicles from these non-customer build phases have been seen out testing across a range

of environments during the last year. These validation, tooling tryout and pilot build vehicles are critical for our ongoing mileage accumulation program that has helped us drive refinements to the product. “With all of this, I am excited to report we have started producing vehicles that reflect all of our quality iterations and design refinements. We are currently working with various governing agencies on the final approvals needed for us to make the first deliveries to preorder customers in September. The first R1Ts to be delivered are the well-specced Launch Edition examples, which start at $73,000. Deliveries of other trim levels, such as the $67,500 Explore or the $73,000 Adventure, are expected to be delivered early in 2022. The exact date Rivian is expected to begin deliveries of the R1S SUV has not yet been settled upon.

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The ASE Education Foundation announced the recipients of the Michael Busch Memorial Scholarships for the 2021-22 school year. The two honorees, Brendan Arthur of Huntington Valley, PA, and Najah Brown of Philadelphia, PA, were each awarded Busch Scholarships in recognition of their outstanding academic achievement. The Michael Busch Memorial Scholarship fund was created in memory of the son of a former collision shop owner and ASE board member, Jim Busch, who operated a shop in Issaquah, WA, until his retirement. His son, Michael, was an automotive technology student who tragically lost his battle with cancer. Each year, two scholarships are awarded in Michael Busch’s name. Qualified applicants should be a graduating high school senior or have graduated from high school or received a GED certificate, and be enrolled or planning to enroll in a two- or four-year-college or an ASE-accredited program. Source: ASE Education Foundation

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All-American from Concept to Collision Repair Shop: Pro Spot a Proud U.S. Manufacturer by Chasidy Rae Sisk

Growing up in Sweden, Ron Olsson believed his future would one day lead him to America. After moving to California, he founded Pro Spot International in 1986, introducing the collision repair industry to resistance spot welding, which OEMs already used while building vehicles. Since its inception, Pro Spot equipment has “always been manufactured in the U.S., under one roof, from start to finish,” Olsson said.

and manufacture all Pro Spot equipment under one roof. “We have to be fast-acting in this industry, and having everything in-house provides us with instant access to engineering and the production line when we need to react,” he said. “With everyone in the same building, feedback reaches the right team quicker, allowing efficient adjustments when needed, without relying on another facility’s response times. That’s priceless in this industry.”

sistent, yet we’ve had three strong quarters which help us feel optimistic that we’ll be able to return to normal soon,” Olsson said. Noting vehicle technology is rapidly changing with the inclusion of electric and autonomous vehicles, Olsson said, “Having the right infrastructure is vital to producing products that will keep pace with new technology coming down the pipeline and the increasing demands accompanying those advancements. At Pro Spot, we’re always thinking five years ahead so we can prepare for the next set of changes in vehicle technology.” With technology changing so rapidly, collision repair professionals know training is more important than ever before, and Olsson agrees. In addition to its Carlsbad headquarters, Pro Spot has training centers in Florida, Tennessee and Colorado, which “allows us to be more proactive in training our local and regional markets, while also offering convenience by saving clients from unnecessary travel expenses,” Ols-

son said. “Customers particularly benefit from training at headquarters where they can see how Pro Spot manufactures the equipment they’re learning to use effectively.” As vehicle design advances, Pro Spot continues to follow suit.

Ryan Swanson uses a pull tester to qualify spot welding strength results

“We’re adjusting our designs and technology as OEMs update vehicle designs and technology,” Olsson said. “Yes, Pro Spot is a welding company, but we’re more of a joining technologies company, and as vehicles change, we’ll adapt as well, ensuring that we provide our customers with the support they’ve come to expect from Pro Spot.”

A small glimpse of the Pro Spot headquarters’ Training Center

“We’re proud to be the only American-made spot-welding manufacturer. Living in this great country means something, and our distributors and customers can take pride in using products made in the USA.” For the past 20 years, Pro Spot’s catalogue of products has come to life in its 60,000-square foot facility in Carlsbad, CA. From design and engineering to prototyping, and then manufacturing and shipping its products, Pro Spot “dreams up everything we do right here. On-site engineers design our equipment on a CAD program, and after testing the prototypes, we manufacture the product,” Olsson explained. Originality and adaptability are key components to Olsson’s business philosophy. He places much emphasis on the ability to engineer

The adaptability Pro Spot enjoys by having the entire process under one roof was paramount while contending with the global pandemic. “We reacted and adapted quicker than other manufacturers because we control everything on-site,” said Olsson. “During the worst of the shutdown, Pro Spot supported our distributors by offering creative financing options to ensure our equipment was available to those affected by COVID and its impact on the economy.” Of course, the pandemic continues to present challenges, including a shortage of raw materials and an increase in freight prices. Despite rising costs, Pro Spot has not raised its product prices. “Our prices have remained con-

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Tesla’s Elon Musk Pledges to Expedite Service Center Openings by Maria Merano, Teslarati

Tesla CEO Elon Musk recently pledged to expedite the company’s ramp of its physical service centers, even as the company expands its mobile service fleet. A Tesla Model 3 Performance owner asked Musk when Tesla would open more service centers in the northeastern U.S. The owner, @JeffTutorials, informed Musk he received a wait time of three or more weeks for just an appointment with a service center. Jeff wanted to replace the front upper control arm of his Model 3 and believed it could not be done via Tesla Mobile Service. “Thank[s] for bringing this up. Tesla will expedite service center openings. Have you tried our mobile service that comes to you,” replied Musk. As Tesla’s fleet grows, it may be time to focus more on delivering quality service and more service options. Currently, Tesla has service centers in 39 countries worldwide. In the U.S., Tesla has service centers in at least 34

different states. Some states only have one Tesla Service Center. There are no listed Tesla Service Centers in three of the nine states in the northeastern U.S.: Maine, New Hampshire or Vermont.

Among the northeastern states that do have a Tesls Service Center, only one each is listed in Rhode Island and Connecticut. New Jersey has four Tesla Service Centers, while Pennsylvania has three. New York has the most Tesla Service Centers in the northeast, with seven. That’s a total of 20 Tesla Service Centers in the northeastern U.S. For perspective, California alone has 39 Tesla Service Centers. During the Q4 2020 earnings call, Automotive Director Jerome

Guillen said Tesla hoped the Mobile Service team would address 50% of customer service needs in 2021. According to Guillen, Tesla planned to open 46 new service centers in North America in the first half of 2021. In retrospect, 46 service centers may not be enough to accommodate Tesla’s growing customer base in the U.S., and even more would be needed to address service needs around the globe. Tesla is working with third-party repair shops to deliver service to customers. However, it would take experience and knowledgeable technicians to service a Tesla properly. Lately, Tesla seems to be considering other service options it can provide to owners as its customer base grows. Recently, Tesla quietly debuted service subscriptions, which included a diagnostic software package that could help owners make minor repairs on their own at home.

Henkle Joins Elite Body Shop Solutions Team An expert more than 30 years in the making, Brent Henkle joined forces with Elite Body Shop Solutions, the most prominent business in auto body shop leadership and management training. Henkle obtained hands-on experience with Price’s Collision Centers, working closely with every department to optimize performance, grow the business and elevate employee engagement. During his 34 years in automotive, he dedicated 13 years to collision centers alone, specializing in process and management optimization. With Elite, Henkle will focus on his role as training manager. He will use the position to help auto body shops harness the power of their management systems, which are often the most underused and yet the most essential tools in the business. Source: Elite Body Shop Solutions

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3M™ Performance Spray Gun is ‘Go-To’ Gun at Santa Margarita Auto Body by Stacey Phillips

Nearly eight months ago, Mitch Barrett was researching spray guns as the head painter at Santa Margarita Auto Body in California. He learned about the 3M™ Performance Spray Gun from Stan Ehresmann, a regional business manager at 3M. “He encouraged me to try it and wanted to know what I thought,” said Barrett. “I’ve used it every day since then.”

Mitch Barrett, the head painter at Santa Margarita Auto Body, used the 3M™ Performance Spray Gun to paint this 1958 Chevrolet Apache

In addition to being cost-effective, Barrett said ease of use and dependability are of the utmost importance when choosing a spray gun, and the 3M gun meets both those requirements. “This gun is great,” said Barrett. “You can feel comfortable while using it and you don’t feel like anything is going to go wrong. It’s my ‘go to’ gun.” Barrett estimates he has probably spent thousands on spray guns over the last decade. Many of them have been complicated to set up and use. With the 3M™ Performance Spray Gun’s simple design, he believes someone with less experience can use the gun and deliver a consistent and professional paint job. Since using the gun, Barrett has found it is extremely versatile. With a change of the replaceable atomization heads, he can spray a full range of coatings, including primer, sealer, basecoats, topcoats and clearcoats. Because the paint doesn’t pass through the body of the spray gun, cleanup is quicker and easier than a traditional spray gun. “I’ve painted everything from a 1990 Honda Civic to a brand new Bentley,” he said. With multiple jobs taking place simultaneously at the collision repair facility, Barrett said it can get

overwhelming at times. “I may have six bumpers for six different cars in six different colors. Having a gun like the 3M™ Performance Spray Gun allows you to pop on every different color really quickly,” he said. “This makes the process go a lot faster, with a shorter amount of time spent in the booth.” Established in 2006, Santa Margarita Auto Body has a total of seven employees. Mitch and his brother, Tyler, work at the shop, owned by their father, Dennis. With its versatile design, the 3M™ Performance Spray Gun can be easily converted to spray from either a gravity cup or pressurized source for bulk spraying applications like RVs and fleet vehicles. The guns are made from an advanced impact-resistant, stainless steel-reinforced composite material to reduce its weight by up to 50% compared to conventional metal spray guns. “That’s important because any time you are working with plastic and air, it can tend to generate some

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static,” said Rob Blue, collision customer specialist, 3M Automotive Aftermarket Division. “The 3M™ Performance Spray Gun is all about precision.” He said the 3M™ Performance Spray Guns are easy to clean, and the

base coat, exceeding the other leading metal spray guns tested.” He said this can equate to potential savings for shops on their coatings. Prior to the guns being released in 2020, a series of field tests were

company is receiving good feedback on transfer efficiency and coverage. “The transfer efficiency of most metal guns is in the range of 65 to 72%,” said Rob. “Third-party testing showed a high 78% transfer efficiency while spraying automotive

held with auto body shops across the country. “A lot of the painters in the industry like the lightweight 13.3-ounce gun because they are painting all day long,” said Brandon Russell, collision customer specialist, 3M Auto-

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motive Aftermarket Division. “They also love how easy the cleanup is.” The spray gun weighs 8.4 oz with gravity nozzles and 13.3 oz with pressure nozzles to enhance comfort without sacrificing performance or durability, according to Russell. “Innovative quick-change replaceable nozzle technology means cleanup can be as simple as a twist and a wipe,” he said. “Every time a painter puts on a fresh nozzle, it’s like getting a brand new spray gun.” With quick-change replaceable 3M™ Performance Gravity HVLP Atomizing Heads, cleanup involves twisting the locking collar, removing the atomizing head and wiping the needle clean. “The 3M™ Performance Spray Gun is so much different than the other guns I’ve used,” said Barrett. “It’s lighter, feels good in your hands and you just know that you are going to come out of the paint booth with a job well done.”

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Despite Continued Inventory Troubles, U.S. Auto Dealer Sentiment Remains Positive, Spurred by Record-High Profits As tight vehicle inventory continues to vex the auto industry, U.S. dealer sentiment in the third quarter softened but remains mostly positive and above levels recorded in Q3 2020 and Q3 2019. The current market index reading of 62 in the most recent Cox Automotive Dealer Sentiment Index (CADSI) indicates more dealers feel the automotive market is strong compared to the number who feel the market is weak. The key drivers of sentiment saw varying shifts in Q3. The three-month market outlook index saw a three-point decrease from the prior quarter, meaning the outlook is waning, although, at 60, more dealers still see the future market as strong than see it as weak. The profits index saw a slight improvement compared to the prior quarter, hitting a record of 60. At the same time, the price pressure index increased modestly from Q2’s record low—slightly more dealers are now feeling pressure to lower prices, although that group is still in the minority.

“Dealer sentiment has moderated from a record high in the spring,” said Cox Automotive Chief Economist Jonathan Smoke. “Dealers are still optimistic about the coming months, but the new-vehicle inventory situation is not improving, and sales are suffering.” Consistent with current market trends, the new-vehicle inventory index was unchanged from last quarter’s record low of 13 and down by a notable 16 points compared to Q3 2020. Not only is inventory tight, but the mix is poor as well and getting worse. The new-vehicle inventory mix index fell to a historically low reading of 18 in Q3. While new-vehicle inventory remains challenged, there are signs used-vehicle inventories are improving. The used-vehicle inventory index saw substantial growth from Q2 to Q3, increasing by 10 points to 31. The used-inventory mix index also improved, although only modestly. Both indices remain below the threshold of 50 and are

seen by dealers as declining, not growing. Tight inventory levels are now negatively impacting sales, according to dealer sentiment. The view of new-vehicle sales was down significantly from Q2 and compared to last year. The new-vehicle sales index fell to 51, the second-lowest reading on record. The used-vehicle sales index fell as well, although it remains historically high at 59, the second-best reading in the index’s history and behind only the record set last quarter. The top five factors holding back the business across all dealers were unchanged in Q3 from Q2, with Limited Inventory in the top spot with 62% of dealers citing it. Market Conditions in the second spot rose to 37% of dealers citing it, while Business Impacts from COVID-19 was in the third spot, down from No. 2 in Q3 2020. The Economy and Expenses rounded out the top five factors holding back dealer business this quarter. Source: Cox Automotive

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Third-Generation MSO Steps Up Philanthropy During Pandemic partnership. “NABC does a great job and Auto body shops all over the coun- the process is absolutely seamless,” try put their charitable efforts on Kendrick said. “They make it easy hold during the pandemic for ob- and that’s why we will keep workvious reasons. But a few shops out ing with them on these car presentathere took the opportunity to step up tions.” and do even more, by reaching out Here is a lengthy list of Kendto their local communities and find- rick Paint & Body’s charitable efing more ways to help. forts: A good example is Kendrick They recently delivered 50 Paint & Body, a third-generation boxed lunches from Fat Man’s to the MSO with eight locations in Geor- University Hospital Emergency Degia. partment in Augusta, with Kendrick there to assist. “We thank all the health care workers giving their all during this continued pandemic,” he said. A local promotional company, Showpony, designed a T-shirt for Kendrick Paint & Body, and donated $2,000 from the proceeds to Ronald McDonald House Charities of Augusta (RMCHA). “Since the COVID-19 Steve Kendrick Jr., center, stepped up his company’s pandemic began, the RMcharitable efforts during the pandemic HCA hasn’t been able to In 2008, owner Steve Kend- operate at full capacity due to occurick Jr. bought the shop from his fa- pancy and social distancing requirether, whose father had founded it in ments, and they have placed some 1950, and decided to scale the fami- families in local hotels,” Kendrick ly’s successful business. As a result, said. “The hotels were an additional, today they have eight locations with non-budgeted item, and that’s why 165 employees and fix approximate- we’re happy to help cover some of ly 1,300 cars monthly. the expense with our donation.” During the pandemic, Kendrick Kendrick Paint and Body decided to continue on the path his teamed up with Manuel’s Bread Cafe grandfather started. and delivered 100 meals to the staff Some shops put one person in at Augusta University. Kendrick, charge to coordinate all of their com- Manuel Carron, Ansley Kendrick pany’s philanthropy, and that’s why and Britton Zier delivered meals at Kendrick’s Operations and Market- lunch. ing Specialist Carson McLaughlin “We were happy to donate and is always busy. give appreciation for our incredible “She has done an amazing medical professionals,” Kendrick job,” Kendrick said. “We find new said. causes and organizations in need The company recently partall the time, especially here in Au- nered with David Goodbread and gusta, where we cover a large area FP Mehan of Insurance Services of in a fast-growing community. I tell Augusta and delivered meals to the people it’s a ‘small big town’ where North Augusta Public Safety, and everyone knows everyone. So be- also delivered 100 lunches to Aiken ing known for helping others, that’s Regional Medical Center. huge and something we’re proud Kendrick Paint & Body and the of.” JLA Group teamed up to help beau The business has been involved tify downtown Augusta by providwith NABC’s Recycled Rides for ing landscaping on the Broad Street several years and has given away medians between 13th and 15th eight vehicles since entering into a streets. by Ed Attanasio

48 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

For the past several years, Enterprise has partnered with Kendrick Paint & Body to present a $2,000 grant to the American Red Cross Augusta Chapter. “The money helps the Red Cross continue operations in our area,” Kendrick said. “The Augusta chapter covers 15 counties with only three paid employees. The remainder are dedicated volunteers. “In 2018 alone, we had six natural disasters. As a result, the Red Cross sheltered more people in 45 days than in the last five years combined. The Augusta chapter sheltered more than 3,000 people during Hurricane Irma. The donations help keep these operations in place to ensure the Red Cross is able to help serve in disasters and tough times.” Every February, the company participates in the Red Cross Boot Scoot Boogie, an annual event that generates more than $100,000 for the Augusta Chapter of the American Red Cross. Each year, Kendrick Paint & Body supports SafeHomes Domes-

tic Violence Center by sponsoring the Fake It to Make It lip sync competition. The event has raised more than $160,000 annually to help fund SafeHomes’ mission. “SafeHomes is committed to ending domestic violence through advocacy, awareness and education,” he said. “They have an array of highly-specialized and comprehensive services to assist victims, regardless of the stage they are at on their journey. All services are completely free and completely confidential.” By constantly looking for more ways to give, Kendrick is proud to be a contributing member of his community, a role he wants to play as long as he can. “There will always be people and organizations out there that will need help, and if we’re in a position to do it, why not?” www.autobodynews.com

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Automotive Industry Trend Continues Towards Use of Lightweight Materials by Stacey Phillips

Since the early 20th century, steel has been the material of choice by auto manufacturers worldwide. Almost every vehicle model has been designed using steel due to its strength, cost-effectiveness, workability and availability.

Ryan Mandell, director, Claims Performance, Auto Physical Damage Solutions for Mitchell International.

“Automakers are now moving away from the use of mild steel, which was a core substrate used for automotive construction for a long time,” said Ryan Mandell, director, Claims Performance, Auto Physical Damage Solutions for Mitchell International. Instead, OEMs are increasingly using lightweight materials such as aluminum, high-strength steel, ultra-high-strength steel and plastic. Mandell has worked in a variety of industry segments over his career. He joined Progressive Insurance as an adjuster after graduating college in 2004 and then worked for a medium-size MSO, Precision Collision Auto Body, based in Washington. Before he was hired by Mitchell in 2017, he was in charge of five wrecking facilities owned by B&R Auto Wrecking in the northwest for four years. Autobody News talked to Mandell about the use of lightweight materials in current and future model vehicles and how this shift will impact collision repairers.

Why are automakers moving away from the use of mild steel and using lightweight materials?

Manufacturers are moving away from the use of mild steel for a couple of reasons. First, they want to improve fuel economy in response to the National High-

way Traffic Safety Administration (NHTSA)’s Corporate Average Fuel Economy (CAFE) standards, which regulate how far vehicles must travel on a gallon of fuel. The current requirement is for automakers to raise the average fuel efficiency of new cars and trucks to 54.5 miles per gallon by 2025. With an increased focus on manufacturing electric and hybrid vehicles, lightweight materials are being used to offset the weight of the batteries. Many people believe electric cars are lightweight because they don’t have an engine, but lithium-ion batteries are really heavy. According to a study conducted by a global transportation company named Kar-Tainer, the company found that if you look at the average weight of an internal combustion vehicle versus an electric one, the electric vehicle on average was a little over 400 pounds heavier. Lithium-ion batteries have a low energy density ratio. In order to produce the kind of range and performance and be competitive in the market, you have to have a large battery. Until we get to the point

in a body shop in 2008, the incidents of aluminum in our facility were minimal. By the time I left in 2012, it was becoming more common. Looking at Mitchell data from our estimating customers, we see a couple of percentage points growth every year in terms of the major component parts constructed of these types of materials. Looking ahead, it is predicted that this trend will continue to evolve. A study conducted by IHS Markit showed that over the next 10 years, we’re going to see highstrength steels have higher percentage content in vehicles than mild steels. Higher tensile strength steels are fired at higher temperatures, which produces more rigidity, so the material is not only lighter, but also stronger.

Q: A:

How is this shift expected to impact collision repairers? As manufacturers continue to use more non-traditional

materials, it will ultimately impact collision repairers. When Ford manufactured the all-aluminum F-150 in 2015, there was much discussion around the use of this material. As a

This Audi structure at the SCRS booth during SEMA consists of stamped and extruded aluminum with carbon fiber reinforcements. Credit: Tim Ronak

result, some collision repairers have already set up their facilities to accommodate aluminum repair with a clean room and dedicated tools, dust evacuation systems, etc. In addition to aluminum and lightweight steel, I think we’ll also see a shift in the use of composite plastics. All these changes are likeFinish It Like a Masterpiece with

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where we’re using solid-state battery technology with a higher energy density, this will be the case for some time. The shift away from steel is also about improving crashworthiness. A university study compared structural aluminum to mild steel, which has been used in structural applications for an extended time. They found that aluminum absorbed twice the crash energy than steel.

Can you tell us about the trend toward lightweight materials and if it’s expected to continue in the future?

The use of lightweight materials has ramped up over the last decade. When I worked

50 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

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ly to affect the repair versus replace decision-making process. Certain materials are simply going to create a different pattern of damage than steel. With some parts of the car comprised of ultra-high-strength steel, for example, a repair is prohibited because it will ruin the vehicle’s structural integrity. Other parts, such as composite plastics and even carbon fiber, can be repairable in certain instances but this is rarer than if the panel was comprised of mild steel. The properties of the metal in the vehicle dictate how it will respond in an accident. Because alu-

A BMW i8 using carbon fiber. Credit: Tim Ronak

minum becomes more brittle when impacted, it’s more likely that it will crack versus deform. When mild steel is impacted, it dents. It deforms the energy and continues to travel through the rest of the car because that energy hasn’t been dispersed quickly enough. When you have something that cracks, that energy disperses much more efficiently. If you have a fender with a dent, it might be repairable; however, it probably can’t be fixed if it has a crack. Take the 2018 Audi A3. There’s an A3 with a gas engine and an Audi e-tron, the plug-in electric vehicle. With the gas engine version, the fenders are made of mild steel. The fenders on the plug-in version are aluminum. The front ends look identical and there is no difference cosmetically. However, when those cars are in an accident and subjected to impact, the fenders are going to respond very differently. There will be different patterns of damage simply due to the materials. That’s at the core of why this is important. The chief engineer of the Ford

Explorer, Bill Gubing, said that weight was a factor in every decision they made on the 2020 Explorer, according to FordAuthority.com. The engineering team looked at ev-

duced. You don’t have as much decision-making capability due to the materials being used. Subsequently, your potential profit margins are reduced and cycle times will likely increase.

How do you recommend collision repairers educate themselves and prepare for these changes?

A: A McLaren using carbon fiber. Credit: Tim Ronak

ery part and how they could achieve weight savings and still achieve the same type of performance or better in a crash test. Ford uses aluminum in the 2020 Explorer, but it also uses steel, magnesium and plastic. This is a great example of how automakers are looking at all the components in the vehicle to determine how it can be made lighter. For repairers, this means the opportunities for fixing the components in a collision repair setting are re-

As we see the use of these mixed materials increase, understanding the materials and the makeup of vehicles is key. In addition to having the proper tooling and equipment, training is critical. Although it can often be challenging to do in a shop environment, over the last 18 months during the pandemic, many shops have had more time to educate technicians. It’s also important to include customer service representatives, estimators and managers. I-CAR is going through a revamping of its content, which will be very valuable for the industry. There are also a variety of webinars and classes available that can be

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helpful. A huge component of education involves referencing the OEM repair procedures, which are changing all the time. That’s why we are working hard at Mitchell to integrate those in the estimating platform so it’s not so cumbersome for shops to do that research. Shops also need to set appropriate expectations with customers. This starts with the estimating process. When writing the initial estimate, it’s important to educate owners of newer model vehicles about the types of materials used. Consumers are unaware of many of these changes and don’t understand the impact of the materials when they are in an accident. Having those types of conversations up-front is an opportunity for collision repair facilities to put themselves in a position where they are

the experts and demonstrate they are looking out for their customers’ best interests. We’ve also seen interest from insurance clients wanting to understand more about how vehicles are constructed and the decisions that need to be made.

Q: A:

What are some of the opportunities available for repairers?

In the future, I think there will be more specialization in the market. By training employees to repair vehicles with these types of materials, shops can create a healthy profit center. It’s not going to be for every shop but depending on the market and the customers you serve, there could be some opportunities, whether you are an independent repair facility or part of a consolidator.

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Apple Car Production Gets Potential 2024 Target Amid Talks with Toyota: Report by Maria Merano, Teslarati

Apple is reportedly looking to Asia as it lays some groundwork for the Apple Car. The tech giant reportedly plans to visit Toyota to discuss the Apple Car’s mass production, expected to start by 2024. Toyota isn’t the first legacy automaker Apple has approached since talk of the Apple Car reemerged in recent months. Earlier this year, reports emerged that Apple was taking preliminary steps in its EV project by talking with South Korean carmaker Hyundai. Apple seems open to partnering with traditional OEMs on its EV project. However, the company also appears to be exploring other manufacturing options for the Apple Car. For instance, Apple reportedly considered partnering with Magna International, a Canada-based company that offers EV manufacturing services. According to DigiTimes, Apple’s current efforts to visit Asian carmakers and suppliers are part

2021 Subaru Impreza Owners Shouldn’t Drive Their Cars by David A. Wood, CarComplaints.com

More than 800 model year 2021 Subaru Impreza cars should be parked until dealerships can make repairs to the front left lower control arms. Subaru says the Imprezas may have lower control arms with faulty welds near the connection joints between the arms and the crossmembers. The front lower control arm can separate from the crossmember and even a partial separation can cause the tire to make contact with the wheel well. Subaru learned about a partially separated lower control arm in June, causing an investigation to be opened with the supplier, Yorozu Automotive Tennessee. Another Impreza control arm separated and Subaru found it was similar to the first report, the LOT number stamped on the arms were the same and the production dates were two days apart. The automaker found equipment on the control arm assembly

line was damaged, resulting in contact between the part ejector rod and the welding torch. This welding torch was unable to trace the proper welding path and resulted in an incomplete weld at the joint. The joint investigation determined 75 left front lower control arms had weld problems, enough to convince Subaru to recall the 2021 Impreza cars. Subaru says no crashes or injuries have occurred, but Subaru dealers will need to inspect the control arms to check the LOT numbers and replace any faulty front lower control arms. Model year 2021 Subaru Impreza owners should not drive their cars until the lower control arms are inspected and possibly replaced. Subaru Impreza recall notices are expected to be mailed Sept. 3. Impreza owners may contact Subaru at 844-373-6614 and refer to recall number WRI-21.

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52 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

of its preparations for the development and eventual production of its all-electric vehicle. One of the main focuses of the visits is rumored to be the battery supply chain for the Apple Car. In August, Apple was rumored to be talking to multiple EV component manufacturers in Korea. The California-based company reportedly talked with Korean battery manufacturers LG Chem and SK Innovation. While in Korea, Apple also talked with Hanwha, a company that offers its expertise in petrochemical technology and advanced materials. Hanwha also promises to provide innovative and sustainable solutions to its customers, hinting at Apple’s direction with its EV’s supply chain. Apple seems hyper-aware of the type of electric vehicle people want, down to its tiniest components. The fact Hanwha was considered an option for the Apple Car’s supply chain means the tech company knows the significance of sustainability to customers today.

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Mitchell, Car ADAS Solutions Team Up to Provide Enhanced Calibration Support Mitchell, a leading provider of technology, connectivity and information solutions to the Property & Casualty (P&C) claims and collision repair industries, and Car ADAS Solutions, an ADAS technology and services company, have joined forces to offer enhanced support for dynamic and static ADAS calibrations. Mitchell’s MD-500 scan tool and MD-TS21 target system combined with Car ADAS Solutions’ onsite evaluation, training, implementation and support services can help North American collision repair facilities reduce cycle time and generate additional revenue by opening their own ADAS calibration centers. With at least one ADAS feature on nearly every new automobile, recalibration of radar, ultrasonic, LIDAR and camera sensors has become essential to proper, safe vehicle repair. Instead of subletting the work, repair facilities can invest in the equipment and operational support required to perform calibrations onsite. This can assist them in managing existing repairs more efficiently while accessing new revenue oppor-

tunities as a retail calibration center for other collision repairers, mechanical repair shops and glass installers.

“With the significant increase in ADAS, calibrations are required on a growing number of repaired vehicles, with many necessitating multiple calibrations,” said Greg Peeters, CEO and founder of Car ADAS Solutions. “Together with Mitchell, we help shops build an ADAS calibration business, thereby creating an entirely new profit center―one designed to service their repaired vehicles, as well as their surrounding market.” Car ADAS Solutions provides onsite evaluation, technician training, proprietary calibration manage-

ment software, ongoing auditing, quality control and technical support. Through its collaboration with Mitchell, the company will work directly with repair facilities using the MD-500 and MD-TS21. Mitchell’s computer-based ADAS target system leverages Bosch’s diagnostics expertise, best-in-class vehicle coverage and patented technology― delivering a complete solution for static and dynamic calibration, pre- and post-scanning and repair blueprinting. Since it works with Mitchell Cloud Estimating and its Integrated Repair Procedures, repair planners can also use the equipment to write estimates, take photos, link directly to OEM repair information from Diagnostic Trouble Codes (DTCs) and automatically upload pre-scan, postscan and calibration reports. “ADAS calibrations are one of the fastest growing and most complex elements of modern collision repair,” said Jack Rozint, senior vice president of repair sales at Mitchell. “Car ADAS Solutions, along with Mitchell’s latest generation of diagnostic equipment and software, offer an end-to-end solution for repairers

seeking comprehensive assistance with setting up and successfully operating their own calibration centers.” “Having access to the right tools and services becomes even more critical now that ADAS calibrations are a key part of the repair process,” said Michael Simon, director of strategic accounts at Bosch Automotive Service Solutions. “Connecting Bosch technology, Mitchell software and Car ADAS Solutions support can assist technicians in the delivery of proper, safe repair for the cars of today and tomorrow.” Additional information can be found at www.mitchell.com/ products-services/collision-repair -shop-solutions/car-diagnostic-system and caradas.com. For collision repair and property casualty updates and perspectives, follow Mitchell on Twitter @Mitchell Repair and @MitchellClaims. Source: Mitchell International

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Answers to Your SEMA Show Questions By Della Domingo, SEMA

SEMA vice president of events Tom Gattuso recently answered questions about the 2021 SEMA Show’s health and safety plans. Read below for more details, or visit www.SEMAShow.com for the most up-to-date information about the SEMA Show.

What is SEMA, AAPEX and Automotive Aftermarket Industry Week?

TG:

off-road, restyling, mobile electronics or another segment, this is the place to discover the new trends and products, and to connect with other businesses in your segment. Both events include seminars, meetings and events for the automotive industry, so businesses can get a lot accomplished while in Las Vegas during the week. It makes for a really busy week, but with the entire industry in attendance and so many activities taking place, it is the best place for businesses to be, and participation delivers the greatest ROI.

The SEMA Show and AAPEX are two different shows that take place during If the two events share regthe first week of November in Las istrations, why are there two Vegas each year. Together, they different health and safety policies make up the automotive industry’s (or strategies) in place? Wouldn’t leading trade gathering—it’s an exit be easier to just have one policy citing weeklong event that we call that applies to both events? Automotive Aftermarket Industry Week, or AAIW for short. The COVID landscape is Both events are B2B, and they complicated, and organihelp companies succeed and grow. zations are making decisions and They are conveniently co-locat- planning in their own ways. SEMA ed within a few miles believes that we will of one another, and a serve our industry best single attendee regisby having the benefit of tration allows access some time, which will into both events; but, give us more current as mentioned earlier, and reliable decisions from state and local authe SEMA Show and thorities for the event AAPEX are two unique taking place in Novemand different events. AAPEX takes place ber. SEMA Vice President of Nov. 2-4 at the Venetian We’ve seen a lot Events Tom Gattuso Expo & Caesars Forum, change in the past few and it features aftermarweeks, and we anticiket replacements parts—the type of pate more changes to come. We’re products that are required to keep working with Nevada authorities your car or truck running. to understand what will be needed The SEMA Show is a four-day for the SEMA Show. We believe we show taking place Nov. 2-5 at the will have a better read in the weeks Las Vegas Convention Center, and ahead and will act accordingly. it features products and services that enhance the performance, stylIs there a chance SEMA will ing, comfort, convenience and safeimplement the same meaty of cars, trucks and SUVs. sures AAPEX and other events are It’s where you’ll find the eye implementing, and require proof of candy and discover the newest vaccination in order to attend? products available to modify and personalize your vehicle into a oneIt’s not possible to know with certainty today what of-a-kind creation—from superchargers and performance brakes the Nevada requirements will be to seat covers and custom paint or in November. Rather than specbedliners. The SEMA Show covers ulate on what may or may not be ever market niche, so whether you required, we are closely monitoring work in racing and performance, the COVID landscape and working

TG:

54 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

with state and local authorities, and we will share details that the industry can rely on as soon as we can.

How long will we have to wait until SEMA makes a decision?

TG:

We don’t have a specific date at this time, but we can tell you that we are 100% committed to having the Show in November and helping the industry and our customers succeed. As soon as we learn the specific measures that will be required in November by state and local governments, we will share those details by posting them on our websites, in our social media channels and emailing registered participants. We will do everything we can to notify our customers as soon as possible.

It sounds like masks are required at all indoor events in Las Vegas. Should I be prepared to have to wear a mask all day long

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while at the SEMA Show?

TG:

Currently (as of this Sept. 1 interview), Nevada does require that masks be worn by everyone while indoors in Las Vegas, but that may change. We will have to assess the situation and the requirements that will be place, and it’s just a bit too early to make that determination. We’ll know more in the coming weeks. Also, there is more than a million square feet of outdoor activation space, including feature vehicles, displays, drifting and ride and drive experiences, where masks are not required.

Doesn’t SEMA have an option to require proof of vaccinations from attendees, and then not require masks to be worn the entire time?

TG:

That is not currently (as of Sept. 1 interview) an option for events such as trade shows in See SEMA Show Questions, Page 56

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Car Insurance Costs for Men vs. Women in 2021 by Aaron Besson, QuoteWizard

On average, QuoteWizard found men pay $720 per year for auto insurance, while women pay $739 per year. The cost difference between teenage men and women drivers is easy to explain. Men pay significantly more for car insurance than women in their teen years, while women pay slightly higher premiums in later years. On average, we found men pay $720 per year for auto insurance, while women pay $739 per year. But these rates depend on age: during their younger years, men pay more for auto insurance than women. This cost difference usually evens out at age 25 for both genders. However, women see a comparatively slight hike in their rates by age 35. Why women wind up paying more for auto insurance over time is not really known, and some states have already started taking steps to eliminate gender as a rate factor. Our research found men pay an average of $720 per year for car

insurance, while women pay $739. Which gender pays more for auto insurance at any given point in time depends on the age of the driver. On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especial-

insurance costs regardless of your age and gender, make sure to compare multiple auto insurance quotes from many companies. Rates and coverage offerings can vary widely. Getting a broad overview of what’s available can save you a lot of money. On average, men pay $720 a

ly when they are younger. When they are older, women start to pay slightly higher rates. Besides age, other factors that can affect the car insurance rates of either gender include driving history, where you live, car make and marital status. In order to defray higher auto

year, or $60 a month, for auto insurance. At age 18, a male driver pays an average of $5,124 a year, or $427 a month. At 18 years old, men pay more than $1,000 more per year on average than an equal-aged female driver. The key reason for this? Teen males show a higher level of crash risk than women of the same age. According to a 2018 CDC study, the rate of fatal car accidents for men between the ages of 16 and 19 was almost twice the death rate for equally-aged women drivers. Auto insurance providers take this into account when factoring risk levels to calculate premiums. Men’s auto insurance rates decrease significantly around age 25. After that, rates stabilize, then stay fairly constant for many years if a clean driving record is maintained. Women pay an average of $739 a year, or $62 a month, for auto insurance throughout their lifetime. Eighteen-year-old female drivers can expect to pay an annual average rate of $4,118, or $343 a month. Women have safer driving records than men overall. At age 35, however, women see slightly higher average rates. Since they show a better reputation for safe driving than men, women tend to pay cheaper rates when they’re younger. At age 25, both genders see fairly equal rates due to maturity and more experience behind the wheel. Then why do women see higher

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rates than men when they’re older? There is currently no clear answer. In 2017, the Consumer Federation of America (CFA) found women between the ages of 40 and 60 paid more for minimum liability coverage than men with similar histories. Looking at the underlying factors used to calculate claim risk level, there doesn’t seem to be a clear and constant risk factor in women drivers’ histories to reveal a reason for the cost difference. Women may also pay significantly more than men depending on where they live. Our analysts found 31 states where women pay more than men, 15 where men pay more than women and four where men and women pay the same amount. We also found when women pay more, they tend to pay substantially more. Women pay more than $100 more than men in four states, while the most men pay more than women is $64. Women, however, tend to see a slightly smaller increase in their insurance premiums after a driving incident. We found on average, men will see a larger increase in their insurance premiums after a speeding ticket, accident or DUI. Given the vagueness of the reasoning underlying the rate differences between men and women, states have started putting laws on their books to prohibit insurers from using gender as a rate factor when calculating premiums. The removal of gender when calculating auto insurance premiums could go a significant way towards equalizing rates, especially car insurance rates for younger drivers. States that currently have laws that prohibit gender from being used as a car insurance rate factor are California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania. The average rates used in this article are based on thousands of quotes for full-coverage car insurance in random ZIP codes across the country for drivers 18 and 35 years old with excellent credit and no accidents. The vehicle used for data is a 2012 Honda Accord LX with 16,000 miles in annual mileage. Source: QuoteWizard

autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 55

Joyson Safety Systems Leadership Transition Joyson Safety Systems (JSS), a leading global supplier of mobility safety components and systems, announced President and CEO Guido Durrer will retire from his current position Dec. 31. The company also announced Tao Liu has joined JSS as deputy CEO, with plans to name him president and CEO on Jan. 1, following a four-month transition of leadership. Following a career that spanned more than three decades of leadership roles in the automotive industry, Durrer joined Joyson Safety Systems shortly after its formation in 2018 as the company’s first president and CEO. Immediately following his retirement, Durrer will assume an advisory role in the chairman’s office, and he will continue to serve as a board member of JSS. Liu will be based in the JSS global headquarters in Auburn Hills, MI. Source: Joyson Safety Systems

Continued from Page 54

SEMA Show Questions Las Vegas. Nevada recently announced an option for fixed-seat event organizers—such as concerts and football games—to require proof of vaccination from attendees in Las Vegas, and not require masks be worn. It seems that many do not realize that this option does not apply to trade shows—the current requirement in Nevada is for masks to be worn by all individuals while indoors in Las Vegas regardless. This is an example of the confusion that recent changes have created. We will have greater clarity about the November requirements for trade shows in the coming weeks, and will announce details at that time.

Lots of people are saying they want proof of vaccination, masks, pre-event testing. Why not set those requirements now?

TG:

The COVID-19 landscape is changing week to week. We need to rely on the health

experts and believe that the safety measures that will make sense to the greatest number of people are the measures that Nevada health authorities will have in place after a few more weeks pass, and we get closer to our November Show dates.

What are the other health and safety measures for the SEMA Show that are in place?

TG:

The basics for a successful 2021 SEMA Show are already in place and we are prepared for the industry to reconnect in November. Inside the LVCC, there is an upgraded GBAC Star Certified Air System. This is a hospital-grade system and represents the highest standard for daily cleaning and sanitization. The new West Hall also provided us with higher ceilings and 25% more space, so we can spread out more and have wider aisles throughout the entire convention center and accommodate attendees to distance more freely. We will also have hand-sanitizing stations throughout the event,

and daily cleaning in high-traffic areas. We also know that, unlike a year ago, trade shows today are taking place successfully throughout the country. A year ago, gatherings were limited to no more than 250 people. At the Las Vegas Convention Center, 17 events are scheduled to take place between now and the SEMA Show. The health and safety of those at the Show is important to us, and we are confident that the 2021 SEMA Show is going to be an amazing event that will provide the industry with the best opportunity to reconnect and do business. There is two years’ worth of pent-up demand from the industry to reconnect in person, and the 2021 SEMA Show will give the industry with the best opportunity to do that. Source: SEMA

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GM Extends Chevy Bolt EV/EUV Plant Shutdown Amid Recall by Steven Loveday, Inside EVs

As was recently reported, General Motors decided to idle its Orion (MI) Assembly plant while it moves forward with the massive Chevy Bolt EV and Bolt EUV recall. GM is recalling every Bolt ever built due to a handful of fires. Now, the automaker has confirmed the factory will remain idle until at least Sept. 24. According to a report by Autoblog, GM is working alongside battery supplier LG Chem to figure out exactly how to progress with the recall. Until some decisions are made, the plant will not continue producing the electric hatchback or crossover. GM has made it clear it has no intention to produce new Bolt EVs or EUVs―nor will it replace current vehicles―prior to having the utmost confidence the newly updated battery packs are safe. Of course, GM is looking to LG Chem to provide the necessary information to allow production

to continue. The battery maker is expected to prove without a doubt the updated packs are defect-free and not prone to fire risk. Thus far, the situation with the Bolt has cost GM nearly $1 billion, and it will likely cost a whole lot more as everything progresses. Autoblog writes due to “GM’s lack of confidence in its supplier, it seems unlikely that the work stoppage will extend only through the end of September.” This all makes perfect sense since GM has been dealing with this for some time, and a previous fix didn’t work. If the automaker goes to great lengths to replace the battery packs in every car, and more fires occur thereafter, it could prove to be a devastating blow. This is a developing story. We’ll update this article or provide another once more information becomes available.

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Lordstown Motors Appoints Ninivaggi CEO

Proposed $42M Settlement Includes Removal of Takata Airbag Inflators in 1.35M Volkswagen and Audi Vehicles

Lordstown Motors Corporation announced Aug. 26 its Board of Directors appointed Daniel A. Ninivaggi as CEO and as a member of the board, effective immediately. Ninivaggi is the former CEO of Icahn Enterprises L.P., a diversified holding company controlled by Carl C. Icahn, and has served in a variety of senior leadership positions in the automotive and transportation industries. He began his automotive career at Lear Corporation, ultimately serving as executive vice president, where he was responsible for, among other functions, corporate development and strategy. He later held the positions of co-chairman and co-CEO of Federal Mogul Holdings Corporation, an $8 billion supplier of powertrain, chassis, sealing, brake and other automotive components, prior to its sale to Tenneco.

Plaintiffs in the Takata Airbag Product Liability Multidistrict Litigation on Sept. 1 filed a class action settlement agreement resolving claims against Volkswagen Group of America, Inc. and Audi of America, LLC, and its affiliates that will accelerate the removal of dangerous airbag inflators from approximately 1.35 million affected vehicles while also compensating consumers for their economic losses. The proposed $42 million settlement will provide numerous benefits to current and former owners and lessees of the affected vehicles, similar to agreements previously announced with Toyota, BMW, Mazda, Subaru, Nissan, Honda and Ford. The agreement was filed in the U.S. District Court for the Southern District of Florida, Miami Division, as part of the multidistrict litigation being overseen by Judge Federico A. Moreno. “We are pleased that after three years of hard-fought litigation we have reached a settlement with Volkswagen that will bring significant monetary and other relief to more than a million class members,” said Peter Prieto, court-appointed plain-

Source: Lordstown Motors

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tiffs’ chair lead counsel, who, along with other members of the plaintiffs’ leadership, negotiated the settlement on behalf of consumers. “This agreement will not only expand awareness of the Takata recalls and improve driver safety by accelerating the removal of defective airbags from our roads, but will provide compensation to affected VW and Audi consumers,” Prieto said. “We will continue to vigorously prosecute our claims against Mercedes Benz, General Motors and FCA to ensure that our clients obtain the relief they deserve.” Among the benefits provided for in the settlement is an outreach program overseen by an independent settlement special administrator that enhances and expands upon VW’s and Audi’s outreach efforts to significantly increase recall remedy completion rates. The program will regularly contact class members through direct mail, phone calls, email, internet ads and social media to educate them about the settlement and incentivize them to receive the recall remedy and exercise their rights under the settlement agreement.

The settlement also provides compensation to class members for their economic losses resulting from the recall in the form of reimbursement for reasonable out-of-pocket expenses, a possible residual distribution payment of up to $500, requirements to provide rental cars to class members while they wait for their recall remedies and the provision of a customer support program for repairs and adjustments on the replacement inflators, including an extended warranty. This settlement is subject to court approval. If preliminary approval is granted, class members will receive more information about the terms of the settlement. The benefits of the Enhanced Rental Car Loaner Program will be provided no later than the date of preliminary approval. When and if the court grants final approval, the claims process will open to eligible class members pending any appeals that are filed. Personal injury claims related to the Takata Airbag Litigation are not covered by this settlement. Source: Schwartz Media Strategies

PPG Provides Sales Update, Reports Worsening Supply Disruptions and Customer Parts Shortages PPG on Sept. 7 announced it expects sales volumes in the third quarter 2021 will be lower by $225 million to $275 million, compared to what the company anticipated at the start of the third quarter. PPG’s sales volumes are being impacted by the increasing disruptions in commodity supplies; further reductions in customer production due to certain parts shortages such as semi-conductor chips; and continuing logistics and transportation challenges in many regions, including the U.S., Europe and China. In addition, raw material inflation for the third quarter is trending higher than previously communicated by about $60 million to $70 million. The coatings commodity supply disruptions have further deteriorated since the company’s earnings announcement July 19, due to several additional force majeure declarations and lower material allocations from certain suppliers. The company also continues to assess the full impact of Hurricane Ida, which could include additional

supply chain effects. The company reported aggregate global economic demand remains robust, and inventories in many of the company’s end-use channels are at very low levels. When supply conditions normalize, the company continues to expect strong sales growth into 2022. In addition, the company reported it continues to make measurable progress implementing selling price increases to help offset the elevated raw material costs, and is seeking further increases. Overall price increases for the third quarter are estimated to be about 5% with similar contributions from both operating segments. Based on the uncertainty created by these continuing and evolving disruptions, the company has elected to withdraw previously communicated financial guidance for the third quarter and full-year 2021. Source: PPG

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 57

FCA to Pay $30M Fine for Illegal Payments to UAW Officials FCA US LLC (FCA) was sentenced Aug. 17 in federal court in Detroit after pleading guilty in March to conspiracy to violate the Labor Management Relations Act, also known as the Taft-Hartley Act, by making more than $3.5 million in illegal payments to officers of the UAW between 2009 and 2016. FCA’s sentence requires payment of a $30 million fine, triple the base amount provided for the offense by sentencing guidelines. In addition, FCA will serve a three-year term of probation and be subject to three years of oversight by Frances McLeod, an independent corporate compliance monitor selected by the U.S. McLeod is a founding partner of Forensic Risk Alliance and head of its U.S. offices, and recently served as the independent compliance monitor for IAV GmbH, a German company recently prosecuted in connection with the Volkswagen emissions conspiracy. FCA is one of the big three American automobile manufacturers and the North American operating subsidiary of Stellantis. The illegal payments to UAW officials took various forms, including extravagant meals,

rounds of golf, lavish parties for the UAW International Executive Board, an Italian-made shotgun, clothing, designer shoes and other personal items paid for with credit cards issued by the joint training center. FCA executives also paid off the $262,000 home mortgage of former UAW Vice President General Holiefield. Holiefield and his widow also received hundreds of thousands of dollars funneled through Holiefield’s purported charitable organization, as well as sham companies under Holiefield’s control that had lucrative contracts with the training center. In many instances, FCA passed the illegal payments through the UAW-Chrysler Skill Development & Training Program d/b/a the UAW-Chrysler National Training Center (NTC). Ostensibly, the NTC was supposed to provide training and health and safety protections for FCA workers. The sentencing was announced by Acting U.S. Attorney Saima S. Mohsin. “The sentencing of FCA marks a significant milestone in this historic case,” said Mohsin. “Congress enacted the Taft-Hartley Act

to ensure that union members could have confidence in their union leaders. FCA violated these principles through corruption. By lavishing millions of dollars in gifts and cash upon UAW leaders, the FCA sought to improve its relationship with UAW leaders, and FCA thereby harmed the hardworking men and women of the UAW. “A compliance monitor and a significant fine are important steps towards ending this type of systemic corruption and deterring future corporate malfeasance.” Thus far, as part of this investigation of illegal payments by FCA to UAW officials, as well as fraud and embezzlement by other UAW officers, 14 individuals have been convicted of federal crimes, including three former FCA executives: Former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison) Former FCA Financial Analyst Jerome Durden (15 months in prison) Former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison) Former UAW presidents Dennis Williams (21 months in prison) and Gary

Jones (28 months in prison) Former UAW vice presidents Norwood Jewell (15 months in prison) and Joseph Ashton (30 months in prison) Former UAW Region 5 Director and UAW board member Vance Pearson (12 months in prison) Former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison) Former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Michael Grimes (28 months in prison) and Monica Morgan, widow of Holiefield (18 months in prison). Holiefield died in 2015. Mohsin commended the outstanding work of the IRS-Criminal Investigations, the U.S. Department of Labor–Office of Labor-Management Standards and Office of Inspector General, and the FBI in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy. Source: U.S. Attorney’s Office Eastern District of Michigan

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2021 SEMA Show Update: SEMA Affirms Commitment to Outstanding Show in November by SEMA Editors

“At a time when COVID is back in the headlines, SEMA wants you to know that the association is 100% committed to holding the 2021 SEMA Show, Nov. 2–5, and showcasing two years of product innovations, vehicle trends and industry-leading education,” said Tom Gattuso, SEMA vice president of events. “The SEMA Show is the only place in the world that brings together the people, products, vehicles and ideas that drive the aftermarket industry.” Concerning safety measures, the COVID landscape and state and local requirements are changing week to week. With this rapid pace of change, SEMA expects to know more in the coming weeks about the specific measures that will be required in November. “Meanwhile, the basics are in place. The Las Vegas Convention Center has been awarded the GBAC STAR certification, which demonstrates the highest standards

for daily cleaning, air filtration and sanitization. It is the gold standard for safe facilities,” said Gattuso.

Select aisles have been widened for enhanced attendee flow. An updated floorplan will also make the Show easier to navigate and allows for optimal locations for new and returning event features. “SEMA is committed to delivering an event that exhibitors and attendees can rely on to network and conduct business,” said Gattuso. “We are working with Nevada authorities amidst an evolving landscape to deliver an outstanding event consistent with local health and safety requirements in November.” To register and learn more about the 2021 SEMA Show, visit www.SEMAShow.com. Source: SEMA

Crash Champions Adds 3 Locations to Growing National Footprint Crash Champions, LLC, one of the nation’s fastest growing independent collision repair companies, announced Sept. 14 it has acquired Robbie’s Auto, located at 238 Route 46 East in Dover, NJ; Total Auto Body, located at 1635 N. Port Washington Road in Grafton, WI; and Racine Auto Body, located at 1100 S. Airline Road in Racine, WI. With the addition of Robbie’s Auto, Crash Champions marks its first entrance into the New Jersey market, a natural complement to the Pennsylvania presence the company gained following its acquisition of Signature Collision Centers earlier this year. The additions of Total Auto Body and Racine Auto Body strategically supplements the company’s recent acquisitions of D&M Auto Body, Quality Auto Body, Silver Spring Collision Center and Gillette’s Collision Center, bringing the company’s number of locations in Wisconsin to eight.

The following is a letter sent Sept. 1 to Focus Advisors’ clients and colleagues by Managing Director David Roberts. Gerber’s recent acquisition of Collision Works (CW) is the largest acquisition of an independent MSO in the last three years. Combined with the acquisition of John Harris Body Shops in South Carolina, we estimate Gerber has added nearly 10% to its overall revenues with these two large acquisitions. These two acquisitions by Gerber reflect the continued strength of large consolidators in growing their businesses. It takes a lot of revenue to move the dial on a big enterprise like Gerber. We estimate Collision Works’ revenues in the $100 million range in Oklahoma and Kansas, three fast-growing Midwestern markets (Oklahoma City, Kansas City and Tulsa), and a host of smaller adjacent markets. John Harris operated 16 shops with an estimated revenue of $40 million with large and small shops across South Carolina

and parts of Georgia. The growth of Collision Works is a template for other rapidly growing MSOs Jake Nossaman and his team built a solid foundation, beginning with large well-located operations in and around the Oklahoma City market. They continued to grow with both greenfield and acquisition strategies. CW entered a second large market, Kansas City, with a greenfield development and proceeded to acquire shops in and around that market. With an eight-shop MSO acquisition (Auto Craft), CW expanded its reach into the Wichita market and continued adding single shops to reach the full complement of 36 shops upon sale to Gerber. To finance some of its initial growth, CW teamed up with a substantial capital partner—Bank of Oklahoma. In 2019, it refinanced its real estate portfolio to acquire $50 million in additional capital and used these resources to pay down debt, continue buying and integrating shops across their markets.

Source: Crash Champions

Mercury Insurance Wins J.D. Power Award

Observations on Collision Works Sale to Gerber By David Roberts, Focus Advisors Automotive

“With these three acquisitions, I am excited for Crash Champions to enter the New Jersey market and strengthen our presence in the Milwaukee market,” said Matt Ebert, founder and CEO of Crash Champions. “What unites these three facilities is that they each possess highly trained technicians that work in state-of-the-art facilities and provide the highest quality repairs. Their dedication to the customer experience and commitment to safety exemplify everything that we stand for at Crash, making each of them a natural addition to our growing national footprint of locations. “I am pleased to welcome them to our championship team, and I look forward to leveraging our resources to further enhance the services provided to customers and partners.” For more information about Crash Champions, visit www. crashchampions.com.

Exit Strategies Along the way, Collision Works also looked at the possibility of joining forces with a very large private equity firm. In the end, because of its scale and infrastructure, Collision Works had multiple exit opportunities—from selling to a consolidator to recapitalizing the company with a large private equity investor to merging with other strong operators. With few remaining regional MSOs left in the U.S. approaching the size of Collision Works, we expect the scarcity value will allow those remaining operators with more than $50 million in sales to continue to find enthusiastic buyers—or private equity investors. For rapidly growing regional and super-regional MSOs, scale, infrastructure, relationships with insurers and access to capital will be the primary elements determining future success. Source: Focus Advisors

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Mercury Insurance is ranked No. 1 among insurers for overall satisfaction in the shopping segment of the J.D. Power 2021 U.S. Digital Experience Study. This marks the first time Mercury has received a J.D. Power award. The study, which evaluates digital consumer experiences among P&C insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities, examines functional aspects of desktop, mobile web and mobile apps based on five factors: ease of navigation, appearance, availability of key information, range of services and clarity of the information. The study was conducted in partnership with Corporate Insight, and is based on 11,548 evaluations fielded in February and March. Mercury Insurance provides auto, homeowners and business insurance in 11 states. Source: Mercury Insurance

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